Estorl¢k Collection Eric and Salome Estorick Founaation Annual Report and Financial Statement Charity Registration Number: 1046374 Company Limited by Guarantee Registration Number: 03044221
ERICAND SALOME ESTORICK FOUNDATION YEAR ENDED 30 JUNE 2023 Content Page ccpanY information Directors'rrru5tees' retxJt 2-14 Auditorfs report 15-16 statement cl financial actfvitles 19 Summary income and expendthre account 20 Balan sheet 21 Statement of cash flows 22 Notes to the accounts 23-37
ERIC AND SALOME EsfoRICK FOUNDATION AUDITOR'S REPORT TO THE MEMBERS OF EIUC & SALOME ESTORICK FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023 Dirertors Michael Estorick {chairman} Dawn Ades Jo Cottrell Alexander Estorick Isobel Estorick Kathryn Hunter Jane McNeill Martin Owen Alexander Phillips (appointed 8 November 20221 (appointed 8 November 20221 (appointed 8 November 2022} Company Secretary Valentino Speziall Addre55 39a Canonbury Square London Nl 2AN www.estorickcollection.com Company number 03044221 Charity number 1046374 Auditors WMT- Chartered Accountants 4 Beaconsfield Road, St Albans ALI 3RD
ERIC AND SALOME ESTORICK FOUNDATION AUDrroR'S REPORT TO THE MEMBERS OF ERIC & SALOME ESTORXCK F¢)UNDATION FOR THE YEAR ENDED 30 JUNE 2023 The Directors and Trustees present their anrsual report and accounts for the activities of the Eric and Salome Estorick Foundation I'the Foundation") for the year ending 30 June 2023. The accounts have been prepared in accordance wwth the accounting policies set out on pages 23 to 25 and comply with the Foundation's articles, the Companies Act 2006. applicable law and the requirements of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 Isecond editlonl and the Flnancial Reporting Standard appllcable in the United Kingdom and Republic of Iland IFRS 1021- Objective of the Charity and the Constitution The Foundation is a charity and is constituted as a company limlted by guarantee. It is therefore governed by a memorandum and artlcles of association. The Foundation'5 objective and its principal activity is to create and maintain an environment conducive to the appreciation and understanding of modern art. particularty Italian art, through the promotion and display of its permanent collection of works of art and by running a temporary exhibition and education programme. The Foundation has been funded in the past by the Eric and Salome Estorick Foundation IUSA}, a Delaware registered corporation which was closed in 2018 and the residual assets were transferred to the Foundation as a permanent endowment. There is a150 an expendable endowment for the care of the Collection and for the acquisition of works. The Foundation owns 122 works of art which comprise the museum's pemianent collection. 120 of these works had been collected by Eric and Salome Estorick during their lifetimes and were on loan when the museum opened in 1998. They have subsequently either been donated to or purchased by the Foundation. Of the two other works in the permanent ¢ollectioA, one was donated and the other purchased by the Foundation. The Statement of Financial Activities show5 total funds amounting to £14,493.778. Public Benefit The Trustees of the Foundation have paid regard to the Charity Commission's published guidance on public benefit. They believe that those who have access to the visual arts derive very real benefwt from the experience. The museum seeks to be open and available to all and encourages participation by all. We offer a number of online activities free of charge and work with variou5 charitable organisations in providing courses and activities free of charge or at low cost. Core costs have to be met and therefore with reluctance the museum levies an admi55ion charge. All children up to age 18 and students with valid ID are permitted free entry and there are concessions for People over 60, Registered Disabled, Job Seekers, Museum A$50ciation. Londonculture, A550ciation for Art History, Engage and National Art Pa55 member5.
ERIC AND SALOME EsfoRICK FOUNDATION AUDITOR'S REPORT TO THE MEMBERS OF ERIC & SALOME EsfoRICK FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023 Risk Management Policy The Trustees have identified the main risks to which the Foundation is exFKJ5ed, the current level of risk and its likely impact, the procedures tD be put in place to mitigate the effects of identified risks and the level of residual risk. Any unanticipated risk emerging in the course of the year would be brought to the Board of Trustees for further consideration. The main identified risk is the physical security of the Collection which has been mitigated through a conservation programme. alarms, CCTV cameras, other security measures and insurance. Resekves Pollcy It is the policy of the Foundation to maintain unrestricted fund5, which are the free reserve5 of the Foundation, at a level which equates to approximately nine months of unrestricted expenditure. This provides funds to cover management and administration and support costs and to respond to emergency applications for grant5 which arise. The total reserves of the charity amounted to £14,493.778 of which unrestricted reserves were £612,905. including fixed asset5 of £507,283. Additionally there are endowment funds of E13,568,873 including an expendable endowment fund of £7.9m which can be used for the care of the Collection if required. Restricted funds amount to £312,000 relating to fixed assets. Investrnents During the year the investments provided a dividend income of £189,607 and capital gain of £97,486. The total return was £287,093. During the year the investrnent fflix was changed and there was a net disposal of £131,126. The final investment mix was approximately 42% in the ishares Developed World Index Fund (Equities) and 58% in the ishares Overseas Corporate Bond Index Fund. Govemance The Foundation is directed by a Board of Trustee5 which meets four or fTve time5 a year. The day-tO- day decision making 15 dealt with by the Director who delegates operational matters to the staff team as appropriate. A11 Directors of the company are also Trustees of the Foundation. The Board of Trustees has power to appoint additional trustees as it considers fit. New trustees receive an induction pack which provides full briefing on the founding documents, current policies, previous annual reports and retrnt board meeting minutes.
ERIC AND SALOME ESTORICK FOUNDATION AUDITOR'S REPORT TO THE MEMBERS OF EIUC & SALOME EsfoRXCK FOUNDAllON FOR THE YEAR ENDED 30 JUNE 2023 PRINCIPAL AcfiviTIES Introductlon The Eric and Salome Estorick Foundation is known to the public as the Estorick Collection of Modern Italian Art 1.the Estorick Collection"). It continue5 to ottract attention for its high standard of visitor experience and has established a reputation for its diverse and challenging exhibition programme. The Trustees believe that the Estorick Collection's unique and pioneering role in the presentation of Italian 20th century art continues to be justified. This is borne out by the consistently high level of recognition and interest which the programme receives from public and critics alike. The Trustees also aim to ensure that the programme of temFK)rary exhibitions is varied. with a diverse range of artists, including lesser-known artists, being represented and a balance being maintained between monographic and thematic shDWS. The programme for the past year included an interesting selection of exhibitions and collateral activities that was consistent with the remit of the Foundatlon by dlsplaylng a wide variety of work linked to its collection of Italian 20th century art {see belowl. In October 2022, the Estorick Collection was awarded the Visit England Hidden Gem Accolade. It also continues to retain Accredited Museum status frorrb Arts Council England. The Trustees acknowledge the continuing 5UPPOrt of prtvate and public collections in Italy and other countries through their generous loan of work5 to the museum. The Trustees also acknowledge the tontrlbution of Arts Council England in providing Government Indemnity for those works on loan to the museum.
ERIC AND SALOME EoRICK FOUNDATION AUDThOR'S REPORT TO THE MEMBERS OF ERIC & SALOME EsfoRXCK FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023 Total attendance in 2022123 was 34,624. an unprecedented figure partly due to the success of the 25, anniversary exhibition dedicated to Giorgio Morandi. Press and Marketing Ali50n Wright PR continued to be responsible for press relations,. the media coverage 15 now extremely well established in Britain and Italy a5 well as appearing in other international publications. The Giorgio Morandi exhibition received a particularly large number of pieces of coverage which included print and online reviews such as The Guardian. FT. The Sunday Times, The Daily Telegroph, The Spectator and a number of Italian and international publications. The museum's social media channels continued to grow throughout the year. promoting the temporary exhibitions as well as the artists, artworks and themes of the pemanent collection. Social media were used to increase awarene55 of the museum and its activities, engaging and reaching both existing and new potential visitors. The number of follower5 on our Instagram account continued to grow throughout the year, reconfirniin8 the positive trend of recent years. A small but steady growth wa5 recorded on Facebook and X Ifomierly Twitterl. Followers: Facebook xnwitter Instagram July 2022 4861 5299 8901 July 2023 5329 5469 11738 Visitor impressions, collected through surveys, highlighted general satlsfactlon with regard to temporary exhibitions and the museum. Cross marketing with other museums, festlvals and organisations helped in promoting the exhibitions programme as well as the museum. Printed and digital advertising. as well as leaflet distribution. was used to promote the exhibitions held at the museum during the year. Outdoor advertising campaigns were carried out for the exhlbltions Archipenko ond the Italion Avant Garde, Luigi Pericle.. A Rediscovery and Giorgio Morondi.. Mosterpiecesfrom the Mognani-Rocca Foundution. Saturday Gallery Talk5 were held during Archipenko and the Italian Avant Garde, and during Luigi Pericle.. A Rediscovery. Due to the popularity of the Glo10 Morandi exhibition a series of out-of- hour5 public tours were Drganised on Saturday mornings which proved to be very popular. On 28 January 2023. on the occasion of the 25th anniversary of the opening of the Estorick Collection, a serie5 of special events were held at the museum featuring family activities. guided tours and Q&A with the curators. Two online talks were held during the year Ion the Avant Garde ond NotionolArt.' Alexander Archipenko in Diologue with his Brother and Giorgio Morundi in the Magnani-Rocco Collectionl. A series of five late opening nights were organised during the summer and autumn. From January 2023 onwards the museum opened until 20.(J) every Thursday. A special tour for London Art Fair VIPS took place In January.
ERIC AND SALOME ESTORICK FOUNDATION AUDrroR'S REPORT TO THE MEMBERS OF ERIC & SALOME EsfoRICK FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023 During the Morandi exhibition two special evening talks took place, Giorgio Morondi.. The Uncertaln Object and You Icoking ut Morandi, Morondi looking bock ot you- A Night with Glorgio Morondi and Humphrey Ocet7n RA. As part of our programme of events, the museum also held two wine tasting nights which proved to be very successful. In June 2023, the museum hosted a UK exclusive screening of Formidable Boccioni, a 54-minute documentary on the life and art of Umberto Boccioni. Membership Scheme The total membership at the end of June 2023 was 995, an increase of 244 from lune 2022. Total membership comprises the following.. 29 Life members, 123 Contributing members. 138 Joint memberships, 184 Joint Concession membership5, 222 Indrvidual members and 299 Individual Concession members. 344 New memberships were taken out during the year. Retentlon rate for returning members was 79% with a number of previously lapsed members also renewing. In 2022123, the membership scheme saw the largest growth for a number of years, particularly b005ted by the popular Morandi exhibition. The totsl membership reaching just S short of iooo can be considered a particular success given the post-pandemic low of 573 reported just two years ago. LeaminglEdu¢ation The education programme continued to offer workshops for schools. universities, and community groups to explore themes in the temporary exhibition5 and permanent collection in both English and Italian. Free twenty-minute guided tour5 and paid forty-minute tours were provided ta a range of charity and community groups. schools, colleges and universities. Family Art Days and Under 5 sessions were programmed in the School holidays for each exhibition and a Series of Adult Art Classes in the evenings. Our long-term partnership continued with Stuart Low Trust giving the participant the opportunities to socialise and support their well-being. During the Giorgio Morandi exhibition the number of event ralsed slgnificantly, 10 special out of hours guided tours were offered with a total of 275 participants, 14 adult guided tours, 9 evening art classes and 14 school workshops and tours.
ERIC AND SALOME EsfoRICK FOUNDATION AUDrroR'S REPORT TO THE MEMBERS OF ERIC & SALOME EsfoRICK FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023 Exhibitions Archipenko and the Itallan Avant Garde 4 May 2022- 4 September 2022 This ambitiOU5 exhibition proposed an alternative history of modernism by retracing the relationship between Alexander Archipenko and the masters of the Italian avant garde. Born in Kyiv, Archipenko11887-1964} was one of the twentieth centurys most influential 5culptor5. He spent time in Moscow before settling in Paris in 1909, where he developed an emphatically modern interpretation of sculpture under the influence of Cubist imagery. Between 1911 and 1912 he created a number of truly original works in which human figures were broken down into sections that seemed to move in circles and spirals upon themselves. These works immediately caught the eye of Futurist5 such as Umberto Boccioni. who would refer to Archlpenko repeatedly in his writings on sculptu. Equally influential was the artist's investigation of negative space In sculptural form and his construction of 'sculpto-paintings' incorporating brightly painted elements in hlgh relief. After the First World War, Archipenko's work became a formal reference point for the new generation of Futurists working in Italy. Among these were Mino Rosso and Thayaht IErnesto Michahelle51 who adopted Archipenko's fluid, streamlined forms in their own 'aerostulptures' of the 19305. Pioneering the 'biomorphic' approach adopted by many figures belonging to Marinetti's movement at this time, ArchipenkD'S example suggested to young Italian artists how they might keep the avant-garde flame alight in the face of the prevailing 'Return to Orderf. which emphasised more traditional artistic value5. Archipenko's work also informed the iconography of Metaphysical
ERIC AND SALOME ESTORICK FOUNDATION AUDITOR'S REPORT TO THE MEMBERS OF ERIC & SALOME EoRIcK FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023 painting, his mannequin-like figures having caught the attention of artist5 such as Giorgio de Chirico and Carlo Carra. This exhibition, juxtaposing works by Archipenko with imagery by a range of painters and sculptors, was curated by Dr Maria Elena Versari, Visiting Professor of Art History and Theory at Carnegie Mellon University, and with the cooperation of The Alexander Archipenko Foundation. Attendance= 6,155 Luigi Perlcle: A Redlscovery 14 September 2022 - 18 December 2022 Luigi Pericle11916-20011 was a fascinating and singular artist. A Swiss pairiter of Italian origin, he was also an illustrotor, writer and a Scholar of esoteric phi1050phies such as astrology, theosophy and alchemy. During the early 1960s hls Intense, enigmatic and multilayered imagery was the subject of numerous exhibitions in Britain, where it wa5 greatly admired by important figures such as Herbert Read and Ben Nicholson. Pericle's works- characterised by sweeping, calligraphic brushstrokes- e5tabli5hed him as a kev protagonist of post-war abstraction, yet in 1965. at the peak of his succes5, he suddenly withdrew from the art world. For the remainder of his career Pericle dedicated himself to his philosophical Studies and to the creation of luminous, complex artworks in which cosmic forces and trdnscendental psychic states were explored through a highly personal repertoire of geometric forms and mystical, totemic symbols. Having fallen into oblivion for several decades, his work was dramatically rediscovered in 2016 wtth the purchase of the artist's former residence, which proved to be an immense treasure trove of paintings and graphic wor. The process of restoring, cataloguing and researching this vast oeuvre
ERIC AND SALOME EsfoRICK FOUNDATION AUDITOR'S REPORT TO THE MEMBERS OF ERIC & SALOME ESTORICK FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023 is ongoing, and is overseen by Ascona's Archivio Luigi Pericle, with which this career-spannin8 retrospective has been organised. Attendance.. 4,187 Giorglo Morandl: Masterpieces from the Magnani-Rocca Foundation 6 January 2023- 28 May 2023 To mark its 25th anniversary, the Estorick Collection presented a major exhibition of works by Giorgio Morandi. For the first time, the entire colleciion of 50 paintings and works on paper by the artist belonging to Italy's Magnani-Rocca Foundation was on show in the U Best known for his enigmatlc Still lifes. Morandi is today widely recogni5ed as one of the most Significant figures of modem Italian art- and certainly one of the most beloved. Often considered to have been something of a recluse, he was in fact at the centre of contemporary 3rt15tic debate and actively engaged with many of the most important national trends and movements of his day, from Futurism to Metaphysical Art. His distinctive mature style is renowned for its masterful treatment of light, exquisite tonal Subtleties and exploration of the boundary between abstract and figurative imagery. Luigi Magnani11906-19841 was one of Morandi's most prominent patrons and a close personal friend. Having first seen his WO in 1939. he wa5 introduced to the artist the following year by the critic Cesare Brandi. The first pieces acquired by Magnani were three etching5 given to him by the artist Shortly after their first meeting. Over the following 20 years he went on to acquire works 5pannin8 Morandi's entire career. This unique and highly personal collection featured a number of extremely rare work5, including o self portrait, a Metaphysical ¢omposition and the only painting Morandi was ever commissioned to
EIUC AND SALOME EORICK FOUNDATION AUDrroR'S REPORT TO THE MEMBERS OF ERIC & SALOME ESTORICK FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023 create. Several drawings and watercolour5- masterpieces of concision- were also on display. in addition to a large number of the artist's etching5. Attendance: 25,044 Osvaldo Llclnl: Rebellious Angel 14 June 2023 - 10 September 2023 Osvaldo Licini11894-19581 produced some of the most distinctive and idiosyncratic imagery in the history of twentieth.century Italian art. His early years were spent in Bologna, where he met Giorgio Morandi and experienced a fleeting interest in Futurism. Between 1917 and 1926 he divided his time between Italy and Paris, moving in the avant-garde circles of artists such as Modigliani and Pica5SO. On returning to Italy in the mid-19205 he established himself as a figurative painter of portraits and landscapes. However. early the following decade he abruptly changed direction and adopted a geometric-abstract vocabulary, developing a style infused with a sense of playfulness and poetry recalling that of Paul Klee. Together with artists such as Lucio Fontana and Fausto Melotti, Licini showed work at Milan's important11 Milione gallery, and was associated with the international Abstraction Création group. Having always been ill-disposed toward Mu5501ini's regime, during the Second World War Licini withdrew into the isolation of his hometown of Monte Vidon Corrado, in the rolling landscape of Italy's Marche region. There, his style once again underwent a dramatic shift, and he embarked on a Series of highly imaginative works populated by fantastical characters such as 'rebellious angels., 'flying Dutchmen, and an enigmatic, moon-like presence he named 'Ama13S5unta'. Licini died in 1958, the year of a major exhibition of his work at the Venice Biennale. where he was recognised as a modern master. io
ERIC AND SALOME ESTOIUCK FOUNDATION AUDOR,5 REPORT TO THE MEMBERS OF ERIC & SALOME EolucK FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023 The first show to be dedicated to Licini by a BritSh museum, curated by Mattia Patti, Osvoldo Licini.. Rebellious Angel explored every phase of the artist's endlessly creative career, presenting around fifty of his most 5ignifi¢ant and characteristically exuberant painting5. Attendance.. 5,011 Speclal Dlsplay- Gallery 6 Andrew Green: Rural Italian Towns and Villages + the Spaces in Between 13 July 2022- 4 september 2022 On the top floor ofthe museum, photographer Andrew Green presented his evocative images focusing on small towns in Umbria and Lazio. These quiet, anonymous, often deserted places might appear unexceptional. yet they have a poetry of their own to which some of the artists in the Estorick Collection- Giorgio Morandi, Ottone Rosai and Giorgio de Chirico- have also responded. Caffè Estorick In July 2022 the Caffè was relaunched a5 part of the collection. The space was redesigned making it feel more welcoming and more in keeping with the aesthetic of the museum. The food on offer has been updated and includes a choice of Italian dishes, focaccia, cakes and a selection of quality wines and cocktails as well as Italian coffee and teas. Estorick li
ERIC AND SALOME ESTORICK FOUNDATION AUDrroR'S REPORT TO THE MEMBERS OF ERIC & SALOME EsfoRICK FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023 Gallery Hire Twefve private events were held at the museum during the year, r3i5ing £9,122.50 in hire fees and £8.484.W in catering income. Five of the events were private parties, three were networking events, two meetings, and two were social events including a tour. Venue hire interest has returned to a more normal level after two very quiet years. The ability to offer in-house catering that the Collection has control over and raises income from ha5 made the programme both more on-brand and more lucrative than in the past. Staffing Roberta Cremoncini. continued in her role as Dlrector and to be responslble for the running of the Collection. Chris Adams continued as A551Stant Curator, on a part-time basis (three days per weekl. Luke Alder continued as full-time Museum Administrator and Claudia Zanardi a5 full-time Marketing Coordinator. Marco Timillero is the Shop and Volunteers Manager and Amanda Williams continued as Office Assistant. The museum also use5 the setrvices of a freelance book-keeper. Jenny Pengilly left her position in October 2022 and Carlo Corsato replaced her as part-time Education Coordinator 14 days per weekl. A rotating pool of volunteers are present in the galleries and in the shop during opening hours. A series of volunteers and interns have joined for short periods of time to help in the office and remotely on various specific tasks. Volunteer briefings led by gallery staff are held at the start of each exhibition. The Trustees are most grateful for the dedication and contribution made by staff and volunteers. 12
Ec AND SALOME EsfoRICK FOUNDATION AUDrroR'S REPORT TO THE MEMBERS OF ERIC & SALOME ESTORICK FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023 Staff salaries are reviewed by the Board on an annual ba515, a perfomance related bonus scheme is not in operation. shop The shop continues to offer a 5electlon of catalogues and art book5, together with a range of gifts, postcard5 and poster5. Library The Library remain5 a valuable research tool for students and people interested in modern Italian art. Acquisitions were limited but a number of relevant books were received as gifts or in reciprocal exchange with other institutions. This is helping to keep the library up to date with new publications in relevant areas and the current holdings are 3,458 books and catalogues. Future Programme Following the Osvaldo Licini exhibition, at the end of summer 2023, the Estorick Collection presents an exhibition of photographs by Lisetta Carmi until the end of the year. Dirertors and Trustees All Directors of the company are also Trustee5 of the Foundation. The Board of Directors has power to appoint additional Trustees as it considers fit to do so. All Trustees named below served durlng the year: Dawn Ades Jo Cottrell Alexander Estorlck Isobel Estorick Michael Estorick Ichairman} Kathryn Hunter Jane McNeill Martin Owen Alexander Phillip5 13
ERIC AND SALOME EsfoRICK FOUNDATION AUDITOR'S REPORT TO THE MEMBERS OF ERIC & SALOME EsfoRICK FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023 Statement of Trustee< responslblllties The Trustees (who are also the directors for the purpose of company lawl are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees must prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable lawl. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the State of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements. the trustees are required to.. al select suitable accounting policies and then apply them consistentty- bl observe the methods and principles in the Charities SORP; cl make judgments and accounting estimates that are reasonable and prudent: dl state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and el prepare the financial statements on the going concern basis unless it 15 inappropriate to presume that the charitable company will continue to operate. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial posltion of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are a150 responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularitie5. Statement as to disclosure of informatlon to audltors The Trustees confirm that so far as they are aware, there is no relevant audit information (as defined by section 41813} of the Companies Act 2(XJ61 of which the charitable company's auditors are unaware. They have taken all the steps that they ought to have taken as Trustees in or¢Jer to make themselves aware of any relevant audit information and to establish that the charitable company's auditors are aware of that infomiation. 14
ERIC AND SALOME EsfoRICK FOUNDATION AUDITOR'S REPORT TO THE MEMBERS OF ERIC & SALOME EsfoRICK FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023 Auditor5 WMT- Chartered Accountant5 were appointed auditors to the Foundation and a resolution proposing their reappointment will be put to the Annual General Meeting. This report ha5 been prepared in accordance with the special provisions of Part 15 of the Companles Act 2006 relating to small companies. Co-chalr Date: 2 7 15
ERIC AND SALOME ESTORICK FOUNDATION AUDITOR'S REPORT TO THE MEMBERS OF ERIC & SALOME EsfoRICK FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023 Opinlon We have audited the financial statements of The Erlc and Salome Estorick Foundation Ithe'charitable companVI for the year ended 30 June 2023 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Finonciul Reporting StondGrd (ypplicable in the UK ond Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the state of the charitsble company's affairs as at 30 lune 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companie5 Act 2(K)6. Basis for oplnlon We conducted our audit in accordance with International Standard5 on Auditing IUKI IISAs IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorf5 responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are levant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirement5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to event5 or conditions that, individually or collectively, may cast Significant doubt on the entity's ability to continue a5 a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilitiesof the trustees with respertto going Concern are descrlbed in the relevant sections of this report. other information The other inforrnation comprises the information included in the annual report other than the financial statements and our auditorfs report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our reFMIrt, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears 16
ERIC AND SALOME EsfoRfcK FOUNDATION AUDITOR'S REPORT TO THE MEMBERS OF ERIC & SALOME EsfoiucK FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023 to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statementsthemselves. If. based on the work we have performed, we conclude that there is a material mi5Statement of this other information, we are required to report that fact. We have nothing to port in this regard. Oplnions on other matters prescribed by the Companies Act 2006 In our opinion. based on the work undertaken in the course of the audit.. the information given in the trustees, report, which includes the directors. report prepared for company law purposes, for the financial year for which the flnancial statements are prepared is consistent with the financial statement5; and the directors, report included within the trustees, report has been prepared in accordance with applicable legal requirement5. Matters on whichwe are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit. we have not identified material rnisstatements in the trustees. report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been recelved from branches not vlslted by us,. or the financial statements are not in agreement with the accounting record5 and returns; or certain disclosures of trustees, remuneration specified by law are not made,. or we have not received all the information and explanations we require for our audit- Dr the trustees, were not entitled to take advantage of the small companies, exemptions in preparing the trustees, report and from the requirement to prepare a strategic report. Responsibilities of trustees As explained more fully In the trustees, responsibilltles statement the trustees (who are also the directors of the charitable company for the purposes of company lawl are responslble for the preparation of the financlal statements and for belng 5at15fied that they give a true and falr view, and for such internal control as the trustee5 determine 15 nEcessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue a5 a going concern. disclosing. as applicable, matters related to going concern and Using the going concern ba515 of accounting unle5$ the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do 50. 17
ERIC AND SALOME EsfoRICK FOUNDATION AUDITOR'S REPORT TO THE MEMBERS OF ERIC & SALOME QlucK FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023 Audltorfs responsibilities for the audit of ihe financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit Conducted in accordance wtth ISAS IUKI will always detect a material misstatemerbt when it exists. Misstatements can arise from fraud or error and are considered material if. individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularlties, including fraud. The extent to which our procedures a capable of detecting irregularities, including fraud is detailed below-. Discussions Wlth and enquirie5 of management and those charged with governano were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefin8, the outcomes of these discussions and enquirie5 were shared with the team, as well as consideration as to where and how fraud may occur in the entity. The following law5 and regulations were identified as being of significance to the entity.. Those laws and regulations considered to have a direct effe(t on the financial statements include UK financial reporting standards, Company Law, Charity Law and Tax and Pensions legislation. Those laws and regulations for which non-compliance may be fundamental to the operating aspect5 of the charity and therefore may have a fflaterial effecl on the financial statements include compliance with the charitable objeciives, public benefit, data protection. health and safety legislation and employment law. Audit procedures undertaken in response to the polential risk5 relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations- enquiries with the same concerning any actual or potential litigation or claims,. inspection of relevant legal correspondence. review of Trustee meetin8 minutes- testing the appropriateness of journal entries. and the performance of analytical review to identify unexpected rnovements in account balances which may be indicative of fraud. No instances of material non-compliance were identifie(l. However, the likelihood of detecting Irregularities, Including fraud, Is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entitvs controls, and the nature, tlming and extent of the audit procedures performed. Irregularitles that result from fraud mlght be inherently more dlfficult to detect than Irregularities that result from error. As explalned above, there Is an unavoldable rlsk that materlal misstatements may not be detetted, even though the audit has been planned and performed in accordance with ISAS IUK)- 18
ERIC AND SALOME ESTORICK FOUNDATION AUDITOR'S REPORT TO THE MEMBERS OF ERIC & SALOME EsfoRICK FOUNDATION FOR THE YEAR ENDED 30 JUNE 2023 As part of an audit in accordance with ISAS IUKI, we exercise professional judgment and Maintain professional scepticism throughout the audit. We also= Identify and assess the risks of material mi55t3tement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that IS Sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery. intentional omissions. misrepresentation5, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expresslng an opinion on the effectiveness of the charitable compan¢s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. Conclude on the appropriateness of the trustees. use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditlons that may cast significant doubt on the charitable companvs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorfs report to the related disclosures in the financial statements or, if such disclosure5 are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorfs report. However, future event5 or conditlons may cause the charitable company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance re8ardin& among other matters, the planned scope and timing of the audit and significant audit findings. including any Significant deficiencies in internal control that we identify during our audit. Use of our repDrt This report Is made solely to the charitable tompanvs members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might State to the charitable company's members those matters we are required to slate to them in an auditorfs report and for no other purpose. Ta the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable companWs members a5 a body. for our audit work, for this report, or for the opinlons we have formed. Elizateth Wick5 (Senior Ststutory Auditor) for and on behalf of WMT Chartered Accountsnts and Statutory Audltors 4 Beaconsfield Road, St Albans ALI 3RD Date: 27 March 2024 19
ERIC AND SALOME ESTORICK FOUNDATION SrATEME1 OF FINANCIAL AcrIvtTIES FOR THE YEAR ENDED 30 JUNE 2023 Note Unrestri¢ted Restricted Endowment Funds Funds Funds Total Funds restated 2023 Total Funds 2022 INCOME & ENDoWMEIs FROM: Donation5 & legaue5 Charitable attwities Investments Other 6,211 441,033 13,200 19,411 441,033 189,607 38,377 22,024 152,944 161,573 10,030 189,607 38,377 Totsl 485,621 13,200 189,607 688,428 346,571 EXPENDrruRE ON: RalsirKJ fuTrJs Chariiable activities 76,637 614,290 76,637 640,490 35,180 467,930 26,200 Total 69D,927 26,21hJ 717,127 503,110 Net gains on investsnents 13 97,486 97,486 (573,047) Net Income I (expendlture) (205,306) (13,000) 287,093 68,787 (729,586) Transfer5 bth&n fund5 17 319,607 (319,607) Net movement In funds 114,301 (13,1)JO) (32,514) 68,787 (729,586) Reconclllatlon of funds Total funds brought foNard as restst 498,604 325,000 13,601,387 14,424,991 15,154,577 Total funds carrd forward 612,905 312,000 13,568,873 14,493,778 14,424,991 20
ERIC AND SALOME EsfoRICK FOUNDAThON SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 JUNE 2023 Revlsed 2022 2023 INCOME Donations & legacEs Charitable activities 19,411 1,033 22,024 152,944 Gross income 460,444 174,968 EXPENDrruRE Raising funds Charitsble actwities 76,637 640,490 35, 180 467,930 717,127 503,110 Total expendlture Net incomel(expenditure) before taxatlon for the financial year (256,683) (328,142) Tax recoverable 38,377 10,030 Net Income l (expendlture) for the flnancial year (218,306) {318,112) The prlor year figures have bttn restated due to a transwsitson and therefore a castlng error has occurred. This is for disclosure purFWS only. It has no effect on the net funds. Notes to the summary income and expenditure account The summary income and extenditure account is required to meet the accounting requirements of the Companies Act 2006 and presents in a dlfferent format amounts inCludj in the Statement of Financial Activfties, but excluding the endowment fund. 21
ERIC AND SALOME EsfoRICK FOUNDATION BALANCE SHEET AS AT 30 JUNE 2023 2023 2022 FIXED ASSErs Tangible assets Heritage assets Invesknents li 12 13 819,283 5,696,200 7 821 171 14,336,654 856,656 5,696,2(K¢ 7 853 685 14,406,541 CURRErif ASSErs Stocks Debtors Cash at bank and In hand 14 15 17,989 82,103 153 835 253,927 15,462 52,460 82,633 Creditors: amounts falling due within one year 16 NET CURRENT ASSETSI{LIABILrnES) 157,124 TOTAL ASSEYS LESS CURRENT LIABlLrrIES 14 493 778 14 424 991 FUNDS OF THE CHARrrY Unrestricted funds Restrirted funds Endowment funds 17 17 17 612,905 312,000 13 568 873 49B,604 325,000 13 601 387 TOTAL CHARITY FUNDS 14 493 778 14 424 991 In accordan with s454 of the Companies Act 2006 the Llirectors may amend these finanaal ststements ff they subsequently prove to be defectlve. The financial statements have prepared in accordan with the stEcial pmvisions applicable to companies subject to the small companies. regime and in accordan with FR5102 SORP. These financial statements were approved by the Board of Dlrectors and Jane McNelll was authorlsed by the Board to sign on their behalf: Co-chair Date: Company registration no. 03044221 Charity registratlon no. 1046374 22
ERIC AND SALOME EsfoRICK FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 2023 2022 Cash flows from operating activities Net income for the year Adjustments for: Deprlation on tangible fixed assets (Gain) on investments Income from investments Disposal proceeds from the Sale of investments (Incwse)Idecrease in stock (Increase)Idecrease in debtors IncreaseJ(decrea5e) in creditors 68,787 (729,586) 39,148 (98,613) (189,607) 1,681,126 (2,527) (29,643) 32,621 37,543 573,047 (161,573) 30,000 410 (16,840) 7,623 Net cash (used In) operatlng activities (1,501,292) (259,376) Cash flows from Investing activities Income from Investments Purchase of tsngible fixed assets Purchase of investments 189,607 (1,775) (1,550,000) 161,573 (29,992) Net cash provlded by Investlng activltles (1,36l168) 131,581 Net increase l (decrease) in cash and cash equivalents 139,124 (127,795) Cash and cash equivalents at the teginning of the year 14,711 142,506 Cash and cash equlvalents at the end of the 153,835 14,711 Cash and cash equlvalents Is made up of the followlng: Cash at bank and In hand 153,835 14,711 Total 153,835 14,711 Analysls of changes In net debt At l July 2022 Cash flow At30 £ June 2023 Cash at bank 139 124 15UL5 23
ERIC AND SALOME EsfoRICK FOUNDATION NOTES TO THE FINANCIAL sfATEMEiirs FOR THE YEAR ENDED 30 JUNE 2023 ACCOUNTING POUCIES 1.1 Accounting Convention The Foundatton meets the deffnltian of a public benefit entity under FR5 102. The financial statements have been prepared under the historical cost convention, modified by the revaluation of invesbnents, in accordan with Accountlng and Repong by Charities.. statement of Recommended Practice applicable to ChareS preparing their accounts in cOrdan with the Financial Repong standard applicable in the UK and Republic of Ireland (FRS102) (Second ition), the Financial Rewrting Sfzndard applicable in the United Kingdom and Republic of Iland (FRS 102) and the Companies Att 2006. The preparatKJn of financial statements in Complian wh SORP 2015 requlres the use of rtain critical accounting estimates. It also requires management to exercise judgment in applying the accounting policie5 (see note 1.15) These finanaal Statements are presented in Sterling a5 that is the CUrry of the primary economic environment in which the Charity operates. 1.2 Incoming resources All incoming resour5 are included in the Ststement of Financial Actmbes when the charity is entitled to the income, it is probable that it will be red and the amount can quantlfied with reasonable accuracy. All income is gross wfthout deduction for related expenditure. The following specific policies are applied to particular categorie5 of income: Volurrtary income is reiVed by way of donation5 and gifts and is included in full In the statement of Financial Activities when retript is probable. Investsment income is included when receivable. Incoming resour from charitable trading actpiities are accounted for when eamed. Income is Stated net of VAT where applicable. 1.3 Grants receivable Grants, irKluding government grants. are recognised on a receivable basis and are deferred onty when the donor has imposed pre<ondytlons on the use of the grant. 1.4 Funds The Foundation's funds consist of unrestricted, restricted and endowrrEnt funds. The Foundation may use unrestricted amounts at its discretion In fijrtherance of the charity's objectives. Restrlcted and endowment funds represent funds which are to te Used in accordan with the donor's wishes. 24
ERIC AND SALOME EORICK FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 1.5 Tangible fixed assets and depreciation Tanglble frxed a55ets, other than heritage assets, are ststed at historfcal cost less deplatIOn. Depreciation is charged to the SOFA to write off the cost less estimated residual value of each sset over its expected useful life at the following rates: Freehold Property {er 50 years Property Improvements Over 50 years other assets Over 4 years 1.6 Donated heritage assets Works of art that are donated specifically for the furtherance of the objectives of the Foundation are recognised in the financial statements at their deemed cost being their fair value at the tJ)int of acquisltion. Where Informatlon on the original 'cosV of assets transferred to the Foundation is unavailable those assets are not recognis&J in the financial statements however infomiation on Such a55ets 15 included in the notes to the financial strdtements. No depreaalion 15 charged on herftage assets as they are consSdered to have an Indeflnite IKe however they are reviewed annually for Impalmient. 1.7 Stock k is stated at the lower of cost and selling pri less costs to sell. All items which are greater than 3 year5 old are written off at the end of each financial year. 1.8 Resources expended Expendlture Is recognlsed on an accruals basls as IlabllStSes are Incurred. Fxpendlture Is recognised net of VAT where applicable. Charttable expenditu comprised those costs incurred by the charity in the deltvery of its activities and serv1$ for its beneficlarles, It indudes both costs that can be allocated directly to such activities and those costs of an Indir nature neSary to support them. Governan costs include those costs associated with meeting the constitutional and statutory requlrements of the charSty and include the audit fees and costs linked to the strateglc management of the d)arity. 1.9 Forelgn currencle5 Monetary assets and Ilabllities denominated in forelgn currencies translated into sterling at the rates of exchange prevailing at the accounting date. Transactions in foreign currenaes are recorded at the date of the transattion. All differentr5 are tsken to the stateMet of flnancial activeS. 1.10 Flnanclal Instruments The Charity onty enters irto basic financial instruments transacbons that rÈ8ult in the recognition of financial assets and liabilities such as debtors and creditors. Financial instruments are initially measured at transadion value. They are assessed at the erKJ of each reportlng perlod for objective evidence of Impairment, If objective eden of impairment is found, an impairment1055 15 recoJnised in the SOFA. 25
ERIC AND SALOME EsfoiucK FOUNDATION NOTES TO THE FINANCIAL STATEMENT5 FOR THE YEAR ENDED 30 JUNE 2023 1.11 Debtors Short term debtors are measured at transaction pr[ less any impalrment losses. 1.12 Credltors Creditors and provlsion5 are recognised where the Foundation ha5 a present obligation resulting fNJm a past event that will probably resu in the transfer of ftjnds to a third party and the a1Unt due to settle the obligation can be measured or estimated reliably. 1.13 Investsnents Inve51rnents are carried at market values ruling at the balae Sheet date with unrealised galns and losses being Induded In the statement of financial activities. Realised gains and losses are calculated on proceeds less opening market value. 1.14 Going concern The trustees have assessed whether the use of going {nrn is appropriate arKI have considered Possible events or condition5 that might cast significant doubt on the ability of the charitable company to continue as a going concern. The trustees have made this a$5essment for a tRrii)d of at least one year from the date of the approval of these financlal statements. In partlcular, the trustees have considered the charitable compan5 forecasts and projections and have taken account of pressu on income. After making enquiries, the trustees have concluded that there is a reasonable expectation that the Charable company has adequate resources to continue in operational existentr for the foreseeable future. The charitable company therefore continues to adopt the golThJ cOnM basis in preparfng Its financial statements. 1.15 Judgments in applying accounting poliues and key sources of estimatlon un¢ertalnty The prepatIOn of the financial ststements requires management to make judgments, estimates aml as5umptlon5 that affect the amounts reported for assets and liabiliknes as at the balance sheet date and the amounts rep)rted for revenue5 and expEnses during the year. The natu of estlmation means the actual outcomes could differ from those estimates. There were no materlal estimations necessary other than the decision on depreciation rates. 26
ERIC AND SALOME ESTORICK FOUNDATION NOTES TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 INCOME FROM DONATIONS AND LEGACIES Unrestrfcted Restrlcted Endowment Fund5 Funds Funds 2023 Total Voluntary Income Donations 6,211 13,200 19,411 6,211 13,200 19,411 Total 2022 Total Donatlons 12,095 9,929 22,024 12,095 9,929 22,024 INCOME FROM CHARABLE AcrIvrtIES Unrestrfcted Restrlcted Endowment Funds Funds Funds 2023 Totsl 2022 Total Shop Sales Café contrlbutions Education Other income Fee5 re1Vable- admissions and membership Rent receivable- gallery hire 110,272 119,331 15,275 2,767 184,839 110,272 119,331 15,275 2,767 184,839 47,112 2,411 7,120 6,764 83,9a7 8,549 8,549 5,630 441,033 441,033 152,944 Total INCOME FROM INVESTMENTS All investment income arises from the investments in the BlackRock Dynamic Diversified Growth Fund, ishares Overseas CorFM)rate Bond Index Fund and ishares Develo Wodd Index FUNI and relatss to endowment funds. 27
ERIC AND SALOME EsfoRICK FOUNDATION NOTES TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 OTHER INCOME Other income relates to Museums and Galleries Exhibthon Tax Relief which is an amount wewable under an HMRC scheme whereby qualifying entitie5 may claim a 20-250/0 subsidy on the costs of producing rn1anent, temporary and touring exhibitions up to a specified limit per exhibition. It also includes EXPENDrnIRE ON RAISING FUNDS Unrestricted Restricted Endowment Funds Funds Funds 2023 Total 2022 Total Unrestrlcted Advertising and trade subscriptions Opening stock Shop purchases Closing stock Cultivation events and cafr expenses Catalogue expenses 4,095 4,095 4,685 15,462 39,386 (17,989) 15,462 15,872 39,386 23,537 (17,989) (15,462) 35,683 35,683 4,748 1,800 Total 76,637 76,637 35,180 EXPENDITURE ON CHARrrABLE AcnvmES Unrestricted Restricted Endowment Funds Funds Funds 2023 Total 2022 Total Gross salaries and employer NIC Temporary exhibitlons Printing, postage and stationery utilities Collection insurance Rates Education materials Telephone and fax Travel and subsisten Cleaning Library collections Building maintenance Securlty Depreciation Internet and website Irrecoverable VAT Foreign exchange G)vernance Inote 8) 268,157 268,157 207,113 185,572 3,626 13,200 198,772 3,626 111,166 2,309 13,345 33,031 5,773 2,517 2,396 1,322 4,775 13,345 33,031 5,773 2,517 2,396 1,322 4,775 66 12,456 2,011 39,148 1,291 7,564 3,110 41,130 8,080 28,789 5,175 1,259 1,818 678 4,116 39 10,752 1,309 37,543 2,773 15,051 1,290 28,670 12,456 2,011 26,148 1,291 7,564 3,110 41,130 13,000 Total 614,290 26,200 640,490 467,930 In 2023, tetnFK)rary exhibition costs of £13,200 (2022: £9,929) and depreclatton costs of £13,000 (2022.. £13,000) were restricted costs. All other costs were unrestrlcted. 28
ERIC AND SALOME EsfoRICK FOUNDATION NOTES TO THE FINANCIAL STATEMEritS FOR THE YEAR ENDED 30JUNE 2023 GOVERNANCE COSTS Unrestricted Restrirted Endowment Funds Funds Funds 2023 Total 2022 Total UnTestri¢ted Accountancy Legal and profe%ional 10,947 7,744 10,947 7,744 8,848 8,824 Audit fte Bank Charg 13,050 9,389 13,050 9,389 8,186 2,812 Total 41,130 41,130 28,670 NEf INCOMING RESOURCES BEFORE TRANSFERS 2023 Total 2022 Total Net incoming resour before transfers are Sta after charging: Depreciation Audthrs, remuneration Fees for irther services 39,148 13,050 10,947 37,543 8,186 8,824 10. EMPLOYEES 2023 Total 2022 Total Salary and wages National Insuran contrlbutlons Pensi 248,921 14,752 4,484 190,910 12,944 3,959 Total 268,157 207,813 Average number of employees li There wa5 one employee during the year with emoltjments Ektween £60,000 and £70,D (2022: one). There is one member of key management (2022.. one). Her gross salary, employer pension contrlbutions and employerfs national Insuran amounted to £75,288 {2022: £70,336). 29
ERIC AND SALOME EsfoRICK FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 11. TANGIBLE FIXED ASSErs Freehold Property Website Property Improvements Redeslgn Other Total At l July 2022 Additions Disposats 538,578 971,209 59,845 50,970 1,620,602 1,775 1,775 At 30 June 2023 538,578 971,209 59,845 52,745 1,622,377 At l July 2022 Charge for the year Disposals 282,756 10,772 396,180 19,424 40,050 44,960 2,158 763,946 39,148 At 30 June 2023 293,527 415,605 46,844 47,118 803,094 At 30 June 2023 245,051 555,604 13,001 5,627 819,283 At 30 June 2022 255,822 575,029 19,795 6,010 856,656 30
ERIC AND SALOME EsfoRICK FOUNDATION NOTE S TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 12. HERrrAGE ASSErs 2023 2022 Cost at l July 2022 5,696,200 5,696,200 Cost at 30 June 2023 5,696,200 5,696,200 DurirvJ the year to 30 June 2017, a collection of 68 works of Italian art with a deemed cc6t of £4,366,200 were donated to the Foundation by the Eric and Salome Estorick ndation (USA). Durlng the year to 30 June 2018, a further work of Italian art with a deemed cost of £400,000 was donated to the Foundation by the Eric and Salome Estorick Foundatlon (USA). These have been recogni5ed in the Balance Sheet. There has bn no change to the cost of heritsge assets held since 30 June 2018. In addltion, a further 53 works of art are owned by the Foundation. Of these 53 works the 10 that were donated in 1999 are not included in the Balance Sht because it was not a requlrement at that time. The remaSniNJ 38 works have been included at the valuatlons applicable at the time of transfer, being £930,000. The whole collection has an insuraKe value of approximate £45m. The collectlon brings together some of the finest and most important works created by ltslian artlsts during the flrst half of the twentieth century and Includes paintings, drawings and sculptures. The F¢ndation does not presendy actively seek to acqulre works for the collection, and sks to avoid disposal of works In the collection in all but exceptional circumstances, as detsiled in the Collection Development Policy. The Foundation aspire5 to the highest stsndard of Ca in preserving the collection, in line with the Care and Con5eNation Policyi relying on a combination of preventative and remedial conservation work As well as the collection owned by the FoundaUon there are also a number of works on long term loan to the collection. The collection is open to the public ar educational tour5 are encouraged. 13. INVEsfMENTS 2023 2022 Brought fornard at l July 2022 Investment addltlons Investment diswsals Investrnent realised gains/(losses) Investment change in waluation 7,853,685 1,550,000 (1,681,126) 250,110 (151,497) 8,456,731 (30,000) 6,072 (579,118) Marf(et value carrled fonyard at 30 June 2023 7,821,171 7,853,685 31
ERIC AND SALOME EsfoRICK FOUNDATION NOTES TO THE FINANCIAL sfATEMENrs FOR THE YEAR ENDED 30 JUNE 2023 13. INVEsfMENTS (contlnued) Details of material investments held at the year£nd are as follow5: Market Value 2023 2022 Dynamlc Diversified Growth Fund iShare5 Overseas Corporate Bond Index Fund iShare5 DeveloFed Worfd Index Fund 1,636,090 3,960,888 2,256,707 4,507,965 3,313,206 7,821,171 7,853,685 Cost 2023 2022 Dynamic Dlversified Growth Fund ISha Overseas Cortx)rate Bond Index Fund iShares Developed World Index Fund 1,430,827 4,100,000 1,695,432 4,875,000 3,245,432 8,120,432 7,226,259 14. STOCK 2023 2022 Book stcck 17,989 15,462 15. DEBTORS 2023 2022 Prepayments and accrued income Trade debtors 37,379 6,108 38,376 38,404 2,767 10,030 1,019 240 Tax relief VAT debtor Other debtors 240 82,103 52,460 32
ERIC AND SALOME EsfoRICK FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 16. CREDrroRS: AmOUs FALLING DUE wrrHIN ONE YEAR As restated 2022 2023 Trade creditors Taxatlon and Sockil security Loan other cred5bJrs and accruals 40,651 3,427 30,000 22,725 17,386 6,094 30,000 10,703 96,803 64,183 The accounts have been restated to incorporate the reclassificatton of funds recelved from a foreign tnjst as a loan. The change ha5 resulted in an increase of credltors (amounts falling due within one year) by £30.000 for the year ended 30 June 2022 and a commensurate reductlon in total charlty funds for the same period. 33
ERIC AND SALOME EsfoRICK FOUNDATION NOTES TO THE FINANCIAL ATEmENTs FOR THE YEAR ENDED 30 JUNE 2023 17. MOVEMENT OF FUNDS Income Expendlture Gainsl (losses) Transfers BalarKe 30.6.2023 restated Balance 1.7.2022 UNREsfRICTED 498,604 485,621 (690,927) 319,607 612,905 REsfRICfED Heritage Lottery Archwio LUKJI Perfcle 325,000 (13,OCK)) (13,2CNJ) 312,000 13,200 325,0 13,200 (26,200) 312,000 ENDOWMENr Heritsge asset Eric and Salome Estorick Foundation (USA) - B 13,549,885 51,502 189,607 97,486 (319,607) 13,517,371 51,502 13,601,387 189,607 97,486 (319,607) 13,568,873 TOTAL 14,424,991 688,428 (717,127) 97,486 14,493,778 Balance 1.7.2021 Income Expenditure Gainsl Transfers (losses) Prlor year As restated adjustment Balance 30.6.2022 UNREsfiucTED 642,143 175,069 (480,181) 191,573 (30,000) 498,604 REsfRICTED Heritage Lottery Italian Cultural Instltute Lakonishok Foundation 338,000 (13,0(K)) (1,8) 325,orx) iTroo 8,129 (8,129) 351,OC(J 9,929 (22,929) (30,000) 325,000 ENDOWMErir Herknge asset Eric and Salome Estorick Foundation (USA) 14,152,932 51,502 161,573 (573,047) (191,573) 13,549,885 51,502 14,204,434 161,573 (573,0471 (191,573) 13,601,387 TOTAL 15,184,577 346,571 (503,110) (573,047) (30,000) 14,424,991 34
ERIC AND SALOME EsfoRICK FOUNDATION NOTES TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 17. MOVEMENT OF FUNDS (continued) UNRESfRicfED FUNDS: Unrestricted funds are the free reseNes of the Foundatlon. RERICTED FUNDS: Herltage Lottery Fund: represents £650,000 awarded to the Foundation in 1997 for the purpose of restoring Northampton Lodge. The funds were spent in 1997 and 1998. £13,000 yearty depreciation is charged to the fund over 50 years as per accounting lCy. The fijnd will be exhausted in year 2047. Arts Council: represents funds received to contribute towards the Make Futurism Great Again exhlbltlon, ENDOWMENT FUNDS: Heritage asset endowment fund. The heritage asset endowment funds initially arose as the result of the disposal of one of the Foundation's heritage assets. Although the p)licy of the Foundation is to retain heritage assets for the benefit of the Collectlon, it was decided thaL given the exceptional circumstances, one of the paintings held as a donatsd heritage asset (though not prevlously capitalised) should be sold in order to generate Ixsh funds for the Collection and for funding future acquisitions. These funds were invested and the market valuation of the investment funds as at 30 June 2023 is £7,821,171 (2022- £7,853,685). Upward movement of the market value of the endowment funds is £98,613 (2022.. downward movement of £573,047). In 2007. 2017 and 2018 a number of artWoS were transferredl donated to the Foundation (see note 12) and were added to this endowment fund. Eric and Salome EstOTlck Foundation (USA) - D.. represents funds recewed from Eric and Salome Estorlck Foundation (USA) for investmenL The endowment funds are all expendable endowments other than Fund D above which Is a pemianent endowment fund. Under the temis of the consent for Fund D granted by Eric and Salome Estorick Foundation (USA) the principal amount Invested must remain intsct, and only Investment income, not eX(dIng 5010 of the principal may be transferred to unrestricted Income each year. During the year £319,607 (2022.. £191,573) was transfenBY frnm the endowment fund to unre5thcted funds. OF this £189,607 (2022: £161,573) was investment income and £130,tKJO (2022: £30,(YJO) was drawn down from the investment fund. 35
ERIC AND SALOME EsfoRICK FOUNDATION NOTES TO THE FINANCIAL STATEMEKrs FOR THE YEAR ENDED 30 JUNE 2023 18. ANALYSIS OF NEf ASSEfs BEfwEEN FUNDS AND RESERVES Fund balances are represented by: Unrestrlcted Funds Restrlcted Endowment Trtal Funds Funds Funds 2023 Fixed Assets CurTent Assets Current Liabilities 507,283 202,425 (96,803) 312,OCM) 13,51,371 51,502 14,336,654 253,927 (96,803) 612,905 312,0 13,568,873 14,493,778 At 30 June 2023 As restated Restricted Endowment As restated Unrestricted Funds Funds Total Funds Funds 2022 Fed Assets Current Assets Current Liabilities 531,656 31,113 (3,183) 325,000 13,549,885 51,502 14,406,541 82,663 (64,183) 528,604 325,000 13,601,387 14,424,991 At 30 June 2022 20. FINANCIAL INSTRUMENTS As noted In the accounting policFes on page 23, the Foundation only enters into basic firkincial instrument tran5action5 that result in the recognition of financi61 a55ets and liabilitES such as debtors and cr&Jitors. The inveslments of the Foundation are financlal assets measured at fair value through the ststement of Financial Activities (see note 13) 21. DIREcfoRSITRusfEES' REMUNERATION AND EXPENSES The aggregate amount of reimbursed expenses paKd to the DirettorstrNstees was £nil (2022: £nil), No Dlrert0rrUSt r1Ved any remuneratton In the year. 22. RELATED PARTY TRANSAcfIoNS There were no related paty transactions during the year. 36
ERIC AND SALOME EsfoRICK FOUNDATION NOTES TO THE FINANCIAL sfATEMEK FOR THE YEAR ENDED 30 JUNE 2023 23. cAprrAL sfRucfuRE The FOUndat7n fThe Company,? is limited by guarant and does not have share capitsl. Each memberf5 liability shall n(rt excd £10 in the event of a winding up. 24. CONTROLLING PARTY No single paty has ultimate control over the Foundation. 25. PIUOR YEAR ADJUSTMENT In 2003 a loan of £30,0 was made to the Foundation. This was Incorrertly treated as a donatlon and has been corrected in the 2023 financlal s&ements. The impact on the prior year balan sheet was an Increase in liabilities of £30,000 and a decrease in unrestricted reseNes of £30,000. There was no impact on the income or expenditure in the year to 30 June 2022. 37
ERIC AND SALOME EsfoRfCK FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 COMPARATIVE sfATEMEpif OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2022 Note Unrestrfcted Restrlcted Endowment Funds Funds Funds Total Funds 2022 INCOME & ENDOWMEKfs FROM: Donations & legacies Charitable 1vitieS Investments other 12,095 152,944 9,929 22,024 152,944 161,573 10,030 161,573 10,030 Totsl 175,069 9,929 161,573 346,571 EXPENDITURE ON: Ralslng funds Charltsble attivitles 35,180 445,001 35,180 467,930 22,929 Total 480,181 22,929 503,110 Net gains on inVestmts 13 [573,047) {573,047) Net income I (expenditure) (305,112) (13,IX)O) (411,474) (729,586) Transfers be fund5 17 191,573 (191,573) Net movement in funds (113,539) (13,000) (603,047) (729,586) Reconclllatlon of funds Totsl funds brought forward 642,143 338,000 14,204,434 15,184,577 38