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2021-01-31-accounts

ANNUAL REPORT AND ACCOUNTS YEAR ENDED 31 JANUARY 2021 CHARITY NUMBER 1058497

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REPORT OF THE COUNCIL FOR THE YEAR ENDED

31 JANUARY 2021

CORE PURPOSE AND VISION

Museum of Freemasonry exists to help people learn about freemasonry in all its social and cultural richness. Through openness, dialogue, many voices and multiple perspectives, we illuminate the history and origins of freemasonry, explore its history, values and spirit, and reveal what it has meant for individuals and society through the ages. We thereby help people gain insight into freemasonry and freemasons past and present.

Our vision is to become a world-class museum, library and archive, doubling our audience in 5 years (70,000 visitors by 2022 compared with 35,000 in 2017). In 2018 we created a strategy which is enabling us to achieve this by pursuing five strategic aims:

  1. Public offer: To create an excellent, relevant, accessible visitor attraction and research environment

  2. Communications: To increase awareness, reposition the museum, attract audiences and build long-term relationships

  3. Income generation: To become more entrepreneurial and financially resilient

  4. Collections: To develop, care for and build knowledge of our collections

  5. Our people: To nurture and develop our people, expanding the skills in our team

ABOUT MUSEUM OF FREEMASONRY

The Museum’s origins go back to 1838, when the United Grand Lodge of England, the governing body of English freemasonry, allocated a sum of £100 for collecting books, manuscripts and objects of masonic interest, and for commencing the formation of a library and museum. These were housed in the masonic hall on Great Queen Street in London. After the First World War it was decided to build a new masonic hall on the site. The Masonic Peace Memorial opened in 1933 and included a purpose-built museum, library and reading room. Initially just for members, the museum began opening to the general public from the 1980s onwards. In 1996, the Library and Museum Charitable Trust was established as an independent charity. Today, we are a fully Accredited museum, and we welcome visitors from across the world to begin or further their exploration of freemasonry.

Like most museums only a fraction of our collection is on display. We look after an extraordinary array of artefacts, many almost 300 years old. These include items as diverse as songbooks, ceremonial regalia and snuffboxes handmade by Napoleonic prisoners of war. Together, our Museum, Library and Archives collections have been awarded Designated Outstanding status.

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In total we have about 30,000 objects related to freemasonry and other fraternal societies, and we’re still collecting. The Library contains nearly 60,000 items, including books, pamphlets and manuscripts related to freemasonry and esoteric traditions globally. Our Archives contain over three linear kilometres of documents, drawings, private papers, photographs and audio-visual material, plus digital assets. The collection includes the records of the United Grand Lodge of England, the Supreme Grand Chapter and various freemasonry charities. It also includes archives relating to individual freemasons, lodges and chapters.

Ordinarily, the Museum is open to everyone free of charge, Monday to Saturday. We offer tours of Freemasons’ Hall, which can be booked online. Researchers can view museum collection material in storage by appointment, and anyone is welcome to register as a reader to access material in the Library and Archives collections. During 2020-21 access was restricted due to the coronavirus pandemic.

ACHIEVEMENTS

The year 2020 was dominated by the coronavirus pandemic, in response to which we had to continually adapt our plans for delivering our strategy.

From March 2020 we pivoted our public offer to focus on digital audiences. This was a time of creativity and innovation. Building on our achievements in 2019 – particularly the creation of a new website and brand identity – we experimented with new platforms and content types. Through this work we succeeded in doubling our digital audience in 2020 compared with 2018. Alongside quick wins we used the Digital Culture Compass to develop a comprehensive digital strategy for the Museum, and an action plan which we have begun to implement.

We opened the Museum, including the library, to the public when we were permitted to with social distancing measures in place. This amounted to 22 weeks open during the year. Inevitably, we had fewer in-person visits than in previous years.

Museum and library closing and reopening dates in 2020:

15 March Museum closed in advance of frst National Lockdown
2 September Museum reopened
5 November Museum closed for second National Lockdown
3 December Museum reopened
16 December Museum closed due to London’s Tier 3 status

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STRATEGIC AIM 1: PUBLIC OFFER

To create an excellent, relevant, accessible visitor attraction and research environment

Enhancing our space

In the early part of the year we enhanced our physical space by restoring our library to its former glory. This involved sanding, staining and sealing the parquet floor, and polishing and re-covering the leather-topped desks.

Whilst the Museum was closed to the public, we also fitted out a new visitor entrance in the lobby next to our North Gallery. This work was paid for by UGLE Trading as part of a project to relocate the shop from the ground floor to a large room next to the museum entrance. The new space is smart, welcoming and accessible. It includes clear signage, new visitor seating, contactless donation points, an information display screen and sufficient storage space.

Exhibitions

We launched two new displays and an art installation on 20 February.

Treasures was a special display in the library featuring highlights from the library and archive collections. It was intended to showcase the variety of the collections, and to encourage people to use them for their research. The display included items selected for their curious stories, beautiful illustrations, unusual bindings, or connections to remarkable people. The content was transferred online and shared through social media when the Museum closed in March.

Familiar Faces was display of portrait photographs which celebrated the diversity of freemasons around the world and through the ages. It featured men and women freemasons from different social and ethnic backgrounds who made important contributions across a wide range of fields – from sport, art and entertainment to science, industry and exploration. This content was also transferred online and shared through social media.

A major exhibition, Artworkers – Design that Inspired the Freemasons , scheduled to launch in October 2020, was postponed due to Covid and associated funding constraints.

Artist collaboration

Phases was a collaboration with the artist collective, Lumen, whose work is inspired by the physical sciences. The artists Louise Beer, Melanie King and Rebecca Huxley created a new work inspired by objects in our collections. Their projection depicting phases of the moon was installed in the South Gallery above a co-curated display of objects from our collection. The artists worked with the Museum’s Curator to choose objects with links to astronomy, time, geometry and the elements. The launch event on 19 February was successful in attracting a new, art-loving audience alongside freemasons and regular visitors.

Events

We adapted our events programme to deliver talks online. We delivered eight public webinars, which were attended by 596 people. This represented a significant increase in audience size compared with the previous year (2019: 9 onsite events attended by 197 people).

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Public video talk programme

15 & 22 June Susan Snell, ‘Who was Loveless Overton?’
26 June Martin Cherry, ‘Benjamin Franklin and the Other
Constitution’
13 July Susan Snell, ‘Minnie’s War: Caringon the Home Front’
27 July Martin Cherry, ‘Yorkshire Treasures from the Museum’
10 August Mark Dennis, ‘Art from the Trenches’
24 August Louise Pichel, ‘We’re GoingBack to School’
7 September Mark Dennis, ‘The Lost Portraits’

We collaborated with UGLE to run Open House on the weekend of 19-20 September. Over 1200 people came over the weekend and Freemasons’ Hall was the second most visited destination in London. We also collaborated with UGLE to produce a video tour of Freemasons’ Hall for those who couldn’t visit in person.

STRATEGIC AIM 2: COMMUNICATIONS

To increase awareness, reposition the museum, attract audiences and build long-term relationships

As a result of Covid we refocused our efforts on attracting visitors to our website as the place to learn about freemasonry. This involved creating a large volume of new online content and then promoting it via digital channels.

Blog

We expanded our blog, creating new series aimed at different audience segments.

Our new Learn about Freemasonry series is primarily aimed at those with very little prior knowledge of freemasonry. It answers the most commonly-askedquestions, based on insights from our front of house team plus an analysis of popular Google search terms. The series includes articles on the freemasons’ handshake, why freemasons wear aprons, the square and compass symbol, and an introductory reading list.

For those with a more specialist interest, we launched our Get to know… series. This introduces our online research resources and explains their relevance for researchers. Resources featured include Masonic Periodicals Online, Lanes Masonic Records, Ancestry and Art UK. Further blog posts have shared stories about our collections and Freemasons’ Hall.

Moments

The ‘Moments’ section of our website includes picture-led stories about key events or people in freemasonry’s history. We created new Moments about: Prince Hall and African American freemasonry in the USA; the Royal

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Masonic Hospital; and the Hall Stone jewel, which was awarded to those who made substantial contributions to fund the construction of the present Freemasons’ Hall.

Activities

We created a Curious Colouring Book, which proved popular as a lockdown activity – over 3000 people downloaded it. UGLE printed copies for Open House as part of the family offer.

Video content

We created a new YouTube channel, initially to share recordings of our video talks. All of these were fully subtitled to ensure accessibility. We built on this by creating a series of ‘Collection favourites’ videos. As the name suggests, these feature individual staff members talking about their favourite objects, books or archives – often curious, quirky items with intriguing stories to tell. By December 2020 our YouTube Channel had 563 subscribers and had been viewed 8,200 times.

Social media

We continued to grow our social media audience. To make the most of the available marketing resource, campaigns focused on driving traffic to our website. Twitter followers increased by 29%, Facebook by 50% and Instagram by 82%. Facebook was the main traffic referral source to the website. We specifically targeted younger audiences – through our choice of content and our promotional activity. Amongst new website users, the largest demographic segment was men aged 25 to 34.

STRATEGIC AIM 3: INCOME

To become more entrepreneurial and financially resilient

Retail

Retail is now under the ownership and control of UGLE. During 2020 the shop was relocated to the old drawing room, adjacent to the Museum entrance, and was rebranded ‘the Shop at Freemasons’ Hall’, dropping the old ‘Letchworth’s’ name. The Museum team collaborated with the shop team to create new merchandise with Museum of Freemasonry branding, plus a range based on items in the collection.

Donations and payments

As part of the refit of the Museum entrance we installed a new donation box and set up mechanisms for contactless donations and contactless payments. These will be available for use when the Museum reopens to the public in 2021.

Income from UGLE

During 2020, income from UGLE was reduced due to Covid-19. In autumn 2020 the LMCT learned that, as a result of the ongoing impact of Covid-19 on UGLE’s finances, income from UGLE would also be significantly reduced in 2021 compared with what had been expected prior to the pandemic.

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Spending cuts

In response to the anticipated drop in income from UGLE, the LMCT Council and management team revised the Museum’s forward plan for 2021. This included cancelling, postponing or scaling back most planned public engagement activity on site, including exhibitions, a proposed education programme and a plans to start a project to redevelop the permanent galleries.

Staff restructure

To reduce payroll costs and ensure the long-term financial sustainability of the Museum, the team was restructured. Four front of house positions were made redundant in autumn 2020. Two further positions were made redundant in May 2021.

Furlough

The LMCT made use of the furlough scheme throughout 2020 and into 2021 to protect jobs where possible.

STRATEGIC AIM 4: COLLECTIONS & RESEARCH

To develop, care for and build knowledge of our collections

Access to the collections was restricted for much of the year due to Covid. As a result, we put our library weeding and museum collections rationalisation projects on hold. Nevertheless we were able to continue supporting researchers throughout the pandemic, and made significant developments in the realms of digital and contemporary collecting.

Digital preservation

In April the Museum procured use of Preservica digital preservation software. This was accessed through membership of a consortium of London-based archives, led by the Royal Society, which enabled us to acquire the software and storage space at reduced cost. The service will enable us to preserve digital assets safely and securely for the very long term. It also has a public interface, which we can potentially develop to facilitate public access to selected material. The Archives team have developed policies and procedures for managing digital acquisitions.

Collecting Covid

Throughout the pandemic we collected physical objects and digital assets which represent freemasons’ responses to Covid-19. As the onset of the pandemic coincided with our acquiring Preservica, this project served as a pilot for digital collecting and preservation.

Documentation

We created 904 catalogue records in 2020. We further improved access to our collections by making key archival catalogue records available on the National Archives’ Discovery platform.

We updated catalogue records and condition reports for over 400 museum objects in the South Gallery in preparation for moving part of the collection to offsite storage, to enable the South Gallery to be used as a special exhibition

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space. The move has been postponed due to the exhibition programme being put on hold.

Research service

We reopened the library from Wednesday to Saturday whenever we were able to, with pre-booking, social distancing and quarantining measures in places. We welcomed 128 researchers to the library over the course of the year and answered 944 research enquiries.

Specialist talks

In addition to our public talks, we delivered six private talks to individual lodges, the Order of Women Freemasons’ and a club for young and new masons. We also gave a live Zoom tour of Freemasons’ Hall to a lodge meeting in Australia. Staff gave presentations at four sector events, which included sharing our newlyacquired digital strategy expertise. Our Archivist gave a lecture to students at Florida State University.

STRATEGIC AIM 5: OUR PEOPLE

To nurture and develop our people, expanding the skills in our team

Throughout the pandemic our staff demonstrated incredible flexibility and resilience by continually adapting to meet new challenges. They demonstrated their outstanding expertise and collections knowledge by developing exhibitions, talks and online content with very limited access to the collections.

In response to the pandemic, staff have learned and enhanced many digital skills – from remote working to webinar hosting, from video editing to digital marketing. Staff also participated in UGLE-led online training about cybersecurity. As part of our digital strategy work we conducted a digital skills audit towards the end of the year, and this is informing our training plan for 2021 and beyond.

PLANS FOR FUTURE PERIODS

We will continue to work towards achieving our five strategic aims. Key projects for the 2021-22 are highlighted below. The timing of some of these activities is still uncertain due to the ongoing coronavirus pandemic.

STRATEGIC AIM 1: PUBLIC OFFER

At the time of writing we are planning to reopen the Museum to the public on 17 May 2021, in line with the Government’s ‘roadmap’ for ending lockdown.

We will open with a new exhibition in the library. Generous Dentist explores the life of Bartholomew Ruspini, an eighteenth-century dentist and freemason, who founded the masonic school for girls.

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We are collaborating with UGLE to produce a new digital guide to Freemasons’ Hall, which will enhance the experience of visitors to the building and the Museum. We are looking forward to the opening of UGLE’s new café.

We will continue our programme of improving the appearance of our physical space by restoring the floor in the South Gallery and refreshing the displays.

We will further enhance our online offer by establishing a presence on Google Arts & Culture, where we will host digital exhibitions.

We will continue to deliver our events programme online, potentially moving to on-site events later in the year.

We will work in collaboration with UGLE to research and develop an exhibition about Freemasonry in the 18th century, to celebrate the tercentenary of Anderson’s Constitutions of the Free-Masons , published in 1723. The exhibition is scheduled for January 2023.

STRATEGIC AIM 2: COMMUNICATIONS

Our focus will be on the creation and promotion of new digital content, on our website and third-party platforms.

We will refocus our marketing efforts on digital channels, as these are more affordable than print and outdoor advertising.

We will continue to engage freemasons through content in masonic publications and e-newsletters.

We will continue to raise our profile with academic and sector colleagues through presentations at conferences and seminars and collaboration on exhibitions and projects.

STRATEGIC AIM 3: INCOME

We will pilot paid-for guided tours to increase our earned income.

We will apply for external funding to enable us to deliver public facing and collections-based projects.

We also explore the development of new charitable income streams, including legacy giving and membership.

STRATEGIC AIM 4: COLLECTIONS AND RESEARCH

We will begin the process of procuring a fit-for-purpose collections management system which can accommodate museum, library and archive material.

We will continue the implementation of digital preservation using Preservica.

We will re-start our library weeding and loans rationalisation projects and commence a significance review of the permanent museum collections.

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STRATEGIC AIM 5: OUR PEOPLE

Priorities for skills development include emergency planning and digital skills, as identified by the recent skills audit.

The LMCT Council plans to review aspects of governance, including succession planning for the Council.

FINANCIAL REVIEW

The consolidated accounts are set out on pages 19 to 30.

As at 31 January 2021 the consolidated net assets of the Library and Museum Charitable Trust were £1,542,046 ( 2020: £1,809,661 ).

Principal funding sources

The United Grand Lodge of England (“UGLE”) provides the greater part of the financial resources required by the Library and Museum. The Friends of the Library and Museum established in 2001 enables individuals (whether freemasons or not) to support the Library and Museum by way of an annual subscription. Friends receive electronic newsletters and can attend special events.

Museum of Freemasonry has not engaged any professional fundraisers or commercial participators to raise funds. Any direct approach to members of the public for funding has been limited to museum visitors. Museum of Freemasonry is not registered with the Fundraising Regulator and is not bound to any voluntary scheme for regulating fundraising, as fundraising is not a significant part of its activities. No complaints were received in relation to our fundraising activities.

Investment powers and policy

The Council’s powers of investment are governed by the Trust Deed and regulations applicable to registered charities. There is an Investment Policy reviewed by the Council each year. This does not include any specific social, environmental or ethical guidelines. Investments are professionally managed and are monitored by an Investment Sub-Committee established by the Council in February 2005 against a target for capital growth and income generation against pre-determined benchmarks.

In the twelve month period ending 31st January 2021, the portfolio returned +2.86% compared to the composite benchmark’s -0.86%. The Investment Committee reviews this performance regularly and was satisfied with the performance of the investment managers in 2020-21. Funds held in anticipation of planned expenditure during the year are maintained as cash deposits with major banks.

Going concern

The Covid-19 situation materially affected the operations of the Museum during the year, and has continued to do so since. The Museum has been closed for a substantial period of time during the lockdowns, and is planning to reopen when Government restrictions permit. Planned exhibitions have been postponed, and many of the Museum staff placed on furlough, though the Museum’s digital offerings and online talks have continued.

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The Council has modelled the impact of Covid-19 on the income and the costs of the Museum, including a range of scenarios covering the timing and extent of reopening. Based on this, the Council believes that the existing reserves and anticipated income are sufficient to ensure the Museum remains a going concern for the foreseeable future. It therefore remains appropriate to prepare these accounts on a going concern basis.

Reserves policy

The Council has a policy of maintaining reserves at half of annual expenditure.

At 31 January 2021, the charity had total reserves of £1,542,046, of which free reserves totaled £762,626 ( 2020: £881,402 ). This is in line with the reserves policy.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Library and Museum Charitable Trust is a registered charity constituted by a Trust Deed dated 31 July 1996.

Charitable objects

The charitable objects of the Museum, as expressed in its Trust Deed, are to collect, preserve, conserve, display and make available to enquirers the archives, records, printed material, regalia, jewels and artefacts of Freemasonry and the continued running of a library and museum for the benefit of the general public and making the items available for research and education and the preservation of the items as collections.

Public benefit

The Council keeps under review the Museum’s areas of activities, achievements and performance with regard to the Charity Commission’s published guidance and is satisfied that its activities are carried out for public benefit.

Appointment of the Council

The Chairman is appointed by the Board of General Purposes of UGLE. As set out in the Trust Deed (including amendments), four members of the Council are ex-officio appointments of UGLE: the Pro Grand Master, the Second Grand Principal of the Supreme Grand Chapter of England and the President and Deputy President of the Board of General Purposes.

The Board of General Purposes also appoints up to three other members who are to be freemasons and can appoint up to six other members.

When considering appointments to the Council, the Board of General Purposes has regard to the requirement for any specialist skills needed.

Organisation

The Council administers the charity. It meets at least three times a year. Since May 2020 Council meetings have been held by video conference. There is an Investment Committee which ordinarily meets at least twice a year. During 2020-21 no formal Investment Committee meetings were held due to Covid-19

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restrictions. However investment matters were discussed by correspondence and in full Council meetings.

The Council has appointed a Director to manage the day to day operations of the Museum. To facilitate effective operations, the Director has delegated authority, within terms of delegation approved by the Council, for operational matters including finance, employment and acquisitions. The Director reports to the Chair of the Council as her line manager.

Members of the Council

The members of the Council are the trustees of the Museum. One new trustee, Tim Myatt, was appointed during 2020 on account of his digital expertise and experience of working in a museum context. Members serving during the year and since the year end were as follows:

R Vaughan (Chair)

J Long (Deputy President of the Board of General Purposes)

P G Lowndes (Pro Grand Master)

R J Race (Second Grand Principal, Supreme Grand Chapter of England)

G G Dearing (President of the Board of General Purposes)

Dr R A Berman

G C Bond OBE DL FSA

S R N Fenton (Treasurer)

G P Francis

P Glanville OBE, FSA

J M J Havard

K R Smith

T Myatt

Director of the Museum of Freemasonry and Secretary to the Council

Dr V Carroll

Related parties

UGLE has placed its extensive collections on loan to the Museum and there is a Loan Agreement dated 18 November 1997 which sets out the terms and conditions of the Loan.

Certain operating and administrative expenses are charged to the Museum by UGLE on a basis which reflects the amount of space occupied by the Museum within Freemasons’ Hall, which is owned by UGLE.

Risk management

The Council believes that it has identified major risks to which the Museum is exposed.

The collections are subject to potential physical deterioration due to handling and environmental factors. Handling of objects, fragile books and archives is undertaken only under supervision of staff and in accordance with recommended practice in the sector. Measures are in hand to improve the conditions of storage

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of objects, regalia and jewels. Environmental conditions are regularly monitored and preventative measures taken where possible.

The collections held by the Museum are insured against loss arising from fire, theft or damage. Preventative measures including security arrangements are reviewed regularly.

Computer systems maintained by the Museum are supported by appropriate back up arrangements.

The coronavirus pandemic has led to the Museum being temporarily closed. The has resulted in a loss of income from donations and services. Charitable funding from UGLE has been substantially reduced. To mitigate against this risk, the Museum has taken measures to reduce operating expenses.

The Council is satisfied that adequate systems and procedures are in place to manage the identified risks.

Key management personnel details

The Council judges that the key management personnel are the Director and the managers of the museum, library, archives, marketing, interpretation and visitor services functions. The remuneration of these key management personnel is set by the Council taking into account performance during the year and current advertised rates for similar roles.

ADMINISTRATIVE DETAILS

Name

The Library and Museum Charitable Trust of the United Grand Lodge of England is known as the Museum of Freemasonry.

Charity number

1058497

In June 2007 The Museums, Libraries and Archives Council awarded Designated status to the collections held by the Museum as collections of international significance. Having been a Registered Museum since October 2001, in September 2014 the Museum’s Accredited status was renewed.

Principal Office

Freemasons’ Hall

60 Great Queen Street

London WC2B 5AZ

Auditors

Crowe U.K. LLP St Bride’s House 10 Salisbury Square London EC4A 3LN

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Bankers

Barclays Bank PLC 1 Churchill Place London E14 5HP

Investment Advisers

Rathbone Investment Management 8 Finsbury Circus London EC2M 7AZ

Legal Advisers

Wedlake Bell 52 Bedford Row Covent Garden London WC1R 4LR

Approved by the Council and signed on its behalf by:

Chair

3 June 2021

Date

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THE RESPONSIBILITIES OF THE COUNCIL OF THE LIBRARY AND MUSEUM CHARITABLE TRUST

The Council is responsible for preparing accounts for each year, in accordance with applicable United Kingdom law and accounting standards and which give a true and fair view of the state of affairs of the Library and Museum Charitable Trust and of the incoming resources and application of resources for the year.

In preparing these accounts the Council is responsible for:

The Council is responsible for keeping accounting records which disclose the financial position of the charity with reasonable accuracy at any time and which enable the Council to ensure that the financial statements comply with applicable law. The Council is also responsible for safeguarding the assets of the Library and Museum Charitable Trust and for their proper application and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE LIBRARY AND MUSEUM CHARITABLE TRUST OF THE UNITED GRAND LODGE

Opinion

We have audited the financial statements of The Library and Museum Charitable Trust of The United Grand Lodge (‘the charity’) and its subsidiaries (‘the group’) for the year ended 31 January 2021 which comprise the the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s or the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 15, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group and the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

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Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011, and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charity and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context was the Charities Act 2011 and taxation legislation, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity and the group for fraud. The laws and regulations we considered in this context were employment legislation, health & safety legislation and General Data Protection Regulation (GDPR).

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Auditing standards limit the required audit procedures to identify noncompliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and Trustees about their own identification and assessment of the risks of irregularities, analytical procedures and sample testing of income, sample testing on the posting of journals, reviewing accounting estimates and judgements for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in t he fi nancial st atements, th e less likely th e inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Statutory Auditor

London, UK

Date: 23 June 2021

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

20

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JANUARY 2021

Unrestricted
Funds
2021
Note
£
ref.
INCOME FROM
Donations
2
997,611
Charitable activities
7,371
Trading activities -
Letchworth’s sales
3
-
Income from investments
4
29,865
Other
2,641
Total
1,037,488
EXPENDITURE ON
Raising Funds
5
35,385
(including cost of goods sold)
Charitable
activities
6-9 & 14
1,262,549
Other
8,531
Total
1,306,465
Proft of sale of business
-
Net gains/(losses) on investments
1,362
Net income/(expenditure)
(267,615)
Transfer between funds
-
Net movement in funds
(267,615)
Reconciliation of funds
Total funds brought
forward at 1 February
16, 17
1,809,661
Total funds carried
forward at 31 January
1,542,046		 Restricted
Funds Total FundsTotal Funds
2021
2021
2020
£
£
£
1,000
998,611
1,006,356
-
7,371
11,366
-
-
782,267
-
29,865
43,809
-
2,641
3,663
1,000
1,038,488
1,847,461
-
35,385
727,633
1,000
1,263,549_1,748,208_
-
8,531
31,837
1,000
1,307,465
2,507,678
-
-
219,305
-
1,362
84,187
-
-
(267,615)
(356,726)
-
-
-0011
-
-
(267,615)
(356,726)
-
1,809,661_2,166,387_
-
1,542,046
1,809,661		 Restricted
Funds Total FundsTotal Funds
2021
2021
2020
£
£
£
1,000
998,611
1,006,356
-
7,371
11,366
-
-
782,267
-
29,865
43,809
-
2,641
3,663
1,000
1,038,488
1,847,461
-
35,385
727,633
1,000
1,263,549_1,748,208_
-
8,531
31,837
1,000
1,307,465
2,507,678
-
-
219,305
-
1,362
84,187
-
-
(267,615)
(356,726)
-
-
-0011
-
-
(267,615)
(356,726)
-
1,809,661_2,166,387_
-
1,542,046
1,809,661		 Restricted
Funds Total FundsTotal Funds
2021
2021
2020
£
£
£
1,000
998,611
1,006,356
-
7,371
11,366
-
-
782,267
-
29,865
43,809
-
2,641
3,663
1,000
1,038,488
1,847,461
-
35,385
727,633
1,000
1,263,549_1,748,208_
-
8,531
31,837
1,000
1,307,465
2,507,678
-
-
219,305
-
1,362
84,187
-
-
(267,615)
(356,726)
-
-
-0011
-
-
(267,615)
(356,726)
-
1,809,661_2,166,387_
-
1,542,046
1,809,661
1,847,461
727,633
1,748,208
31,837
2,507,678
219,305
84,187
(267,615)
 (356,726)
- -0011
(267,615)
 (356,726)
1,809,661
1,542,046		 2,166,387
1,809,661

21

CONSOLIDATED BALANCE SHEETS AS AT 31 JANUARY 2021

Operating
and Other
Assets
2021
Note
£
ref.
FIXED ASSETS
Tangible fxed assets
10
31,273
Investments
11
1,054,775
Total fxed assets
1,086,048
CURRENT ASSETS
Stocks
-
Debtors
12
42,351
Cash at bank and in hand
107,957
Total current assets
150,308
LIABILITIES
Creditors: Amounts falling
due within one year
13
(145,182)
Total net current assets
5,126
Defned beneft pension
scheme liability
15
(297,275)
Total net assets
793,899
FUNDS OF THE GROUP
General Reserves
793,899
Heritage and Exhibition Reserves
-
Total Group Funds
16,17
793,899		 Heritage
and
Exhibition
Assets
2021
£
748,147
-
748,147
-
-
-
-
-
-
-
748,147
-
748,147
748,147		 Total
2021
£
779,420
1,054,775
1,834,195
-
42,351
107,957
150,308
(145,182)
5,126
(297,275)
1,542,046
793,899
748,147
1,542,046
 Total
2020
£
868,259
920,452
1,788,711
-
42,036
541,965
584,001
(110,676)
473,325
(452,375)
1,809,661
962,619
847,042
1,809,661

The accounts were approved and authorised for issue by the Council on 3 June 2021 and signed on its behalf by:

R VAUGHAN

S R N FENTON

22

THE LIBRARY AND MUSEUM BALANCE SHEETS AS AT 31 JANUARY 2021

Operating
and Other
Assets
2021
Note
£
ref.
FIXED ASSETS
Tangible fxed assets
10
31,273
Investment in subsidiary 11
-
Investments
11
1,054,775
Total fxed assets
1,086,048
CURRENT ASSETS
Debtors
12
42,351
Cash at bank and in hand
107,957
Total current assets
150,308
LIABILITIES
Creditors: Amounts falling
due within one year
13
(145,182)
Total net current assets
5,126
Defned beneft pension
scheme liability
15
(297,275)
Total net assets
793,899
THE FUNDS OF THE CHARITY
General Reserves
793,899
Heritage and
Exhibition Reserves
-
Total charity funds
16, 17
793,899		 Heritage
and
Exhibition
Assets
2021
£
748,147
-
-
748,147
-
-
-
-
-
-
748,147
-
748,147
748,147

23

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JANUARY 2021

Cash fows from operating activities:
Net cash provided by
(used in) operating activities
Cash fows from investing activities:
Proceeds from sale of business
Disposal of tangible fxed assets
Purchase of tangible fxed assets
Net cash from/used in investing activities
Cash fows from fnancing activities:
Dividends and interest from investments
Proceeds from sale of investments
Purchase of investments
Net cash from/used in fnancing activities
Change in cash and cash
equivalents in the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
Net income/(expenditure) for the reporting period
(as per statement of fnancial activities)
Adjustments for:
Depreciation charges
Losses/(gains) on investments
Proft of sale of business
Dividends and interest from investments
Decrease in stocks
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Net cash provided by
(used in) operating activities		 Total
funds
2021
£
(311,962)
-
-
(18,950)
(18,950)
29,865
433,823
(566,784)
(103,096)
(434,008)
541,965
107,957
(267,615)
107,789
(1,362)
-
(29,865)
-
(315)
(120,594)
(311,962)		 Total
funds
2020
£
(233,496)
219,305
8,101
(4,249)
223,157
43,809
763,416
(555,624)
251,601
241,262
300,703
541,965
(356,726)
106,772
(84,187)
(219,305)
(43,809)
253,895
14,357
95,507
(233,496)

24

NOTES TO THE CONSOLIDATED ACCOUNTS

1. ACCOUNTING POLICIES

(a) Accounting convention

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – Charities SORP (FRS 102). The Library and Museum of Freemasonry meets the definition of a public benefit entity under FRS 102.

After making enquiries, the members of the Council have a reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Responsibilities of the Council on page 15.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Consolidated financial statements have been prepared in respect of the charity and its wholly owned subsidiary, Letchworth’s (Freemasons’ Hall, London) Limited, company no. 2527480, based on individual accounts drawn up to 31 January 2021.

Voluntary income and donations are credited to incoming resources when the amounts have been confirmed and there is certainty of receipt. Grants are credited to incoming resources on the earlier date of when they are receivable under the terms of the grant or when they are received. Earned income is accounted for when it is receivable.

Resources expended are included in the statement of financial activities on an accruals basis, inclusive of any irrecoverable VAT. Costs not directly allocated to categories of activity are apportioned as support costs in accordance with time spent by staff on each activity. Governance costs represent the statutory costs of administering the charity.

Heritage and exhibition assets held by the charity are capitalised unless reliable information about cost is unavailable or where there would be significant costs involved in obtaining a valuation. Items purchased during the year are shown in Note 10 on page 28 and the Museum maintains a register of all purchases. It is the view of the Council, however, that the cost of obtaining a valuation of items already held or donated during any year is likely to be significant and would outweigh the benefits of undertaking such an exercise and these items are therefore capitalised at cost.

25

NOTES TO THE CONSOLIDATED ACCOUNTS (Continued)

(f) Tangible Fixed Assets

Depreciation is provided at rates calculated to write off the value of each asset on a straight line basis over its expected useful life, as follows:

Exhibition space over 9 years Computer equipment over 5 years Office equipment, furniture and fittings over 5 years

(g) Government Grants

Government grants are recognised on the accrual model, when the company has complied with any conditions attaching to the grant and the grant will be received. Included in income is an amount of £128,122 in respect of the Coronavirus Job Retention Scheme. This grant has been recognised in the period to which the underlying furloughed staff costs relate.

(h) Financial instruments

Library and Museum Charitable Trust has financial assets and financial liabilities of

a kind that qualify as basic financial instruments.

(i) Listed investments, including fixed interest securities and cash held for investment, are measured at fair value through income and expenditure accounts and are reported at their market values at the balance sheet date.

(ii) Other financial instruments, which comprise bank and cash, debtors, other creditors and accruals are initially recognised at transaction value and are subsequently measured at amortised cost using the effective interest method.

Assets, other than those measured at their fair value, are assessed for indicators of impairment at each balance sheet date.

(i) Taxation

No taxation is payable by the Library and Museum Charitable Trust as it is able to make use of the tax exemptions on income and capital gains available to charities. (j) Significant areas of estimated uncertainty Pension Liabilities - LMCT recognises its liabilities to a defined benefit pension scheme which involves a number of estimations as disclosed in note 15.

(k) Pension contributions

Multi-employer defined benefit scheme current service contributions are charged in the year in which the service is provided by the relevant employees. Contributions to fund the past service scheme deficits as identified by the actuarial valuation are provided for at the net present value of any agreed future payments.

2. DONATIONS AND LEGACIES

Donations:
United Grand Lodge of England
Other donations and income including
The Friends of the Museum
Government Grants - furloughed staf costs		 2021
£
865,045
5,444
128,122
998,611		 2020
£
999,452
6,904
-
1,006,356

26

NOTES TO THE CONSOLIDATED ACCOUNTS (Continued)

3. LETCHWORTH’S (FREEMASONS’ HALL, LONDON) LIMITED

(Summary of the accounts of the subsidiary company no.2527480. Registered Office: Freemasons’ Hall, 60 Great Queen Street, London, UK.)

Turnover
Gross proft
Operating proft
Proft from sale of business
Gif Aid donation to parent charity
Gif Aid donation to others
Proft afer taxation
Total assets
Total liabilities
Net assets
4. INCOME FROM INVESTMENTS
Bond and bank deposit interest
Dividends
5. RAISING FUNDS
Direct Apportioned
costs
support
costs
£
£
Trading costs -
Letchworth’s cost of
goods sold & other costs
-
-
Investment management costs
7,147
-
Fundraising
-
28,238
Total
7,147
28,238

6. CHARITABLE ACTIVITIES
Exhibitions and tours
31,654
699,656
Cataloguing and conservation
16,066
121,068
Library and museum acquisitions
1,637
49,898
Provision of research resources -
214,114
Awareness raising
38,598
84,531
Governance costs
6,327
-
Total
94,282

1,169,267

The charity incurred audit fees of £6,080 (2020: £6,920).

27

NOTES TO THE CONSOLIDATED ACCOUNTS (Continued)

7. From time to time, the Library and Museum uses volunteers as stewards for open days or for short term projects organising archive material. All volunteers sign a Volunteer Policy. They are entitled to claim their travel expenses.

8. STAFF COSTS

(Library and Museum Charitable Trust)
Salaries and miscellaneous payments
Employer’s national insurance contributions
Contributions to the defned beneft pension scheme:
Total contributions in the year
Actuarial adjustment recognised in
change in Funds for the year
Contributions to the defned
contribution pension scheme
Life assurance contributions
Reimbursements from other companies
Total staf costs		 2021
£
614,834

54,128
183,305
(155,100)

41,089
4,650
(3,000)
739,906		 2020
£
654,472
60,253
182,799
(132,943)
43,622
7,979
(23,471)
792,712

“The average monthly number of staff was 21 ( 2020:24 ).”

The Council judges that the key management personnel are the Director, and the managers of the museum, library, archive, marketing, visitor services and shop functions . The remuneration of these key management personnel is set by the Council taking into account performance during the year and current advertised rates for similar roles. One member of staff received emoluments exceeding £60,000. Those emoluments fell within the £90,000-£100,000 band.

Key management personnel cost 2021
£
379,778
 2020
£
379,398

9. TRUSTEES EXPENSES

The members of the Council are the trustees of the Library and Museum. During the year no member of the Council received any remuneration ( 2020: NIL ) nor benefits in kind ( 2020: NIL ). Three members of the Council received reimbursement of expenses incurred relating to travel amounting to £247 ( 2020: 4 members £691 ).

28

NOTES TO THE CONSOLIDATED ACCOUNTS (Continued)

10. TANGIBLE FIXED ASSETS

Library and
Museum
heritage
and

Exhibition
exhibition

space costs
assets
£
£
Cost
At 1 February 2020
894,000
251,042
Disposal
-
-
Additions in year
-
438
At 31 January 2021
894,000
251,480
Depreciation
At 1 February 2020
298,000
-
Disposal
-
-
Charge for year
99,333
-
At 31 January 2021
397,333
-
Net book value
At 31 January 2021
496,667
251,480
At 31 January 2020
596,000
251,042
Summary of transactions in Museum heritage
Year ended
31.1.21
31.1.20
£
£
Acquisitions in
the year
438
768		 Library and
Museum Letchworth’s
computers,
computers,
furniture &
furniture &
ftings
ftings
£
£
359,469
-
-
-
18,512
-
377,981
-
338,252
-
-
-
8,456
-
346,708
-
31,273
-
21,217
-
and exhibition assets
31.1.19
31.1.18
£
£
865
7,747		 Total
£
1,504,511
-
18,950
1,523,461
636,252
-
107,789
744,041
779,420
868,259
31.1.17
£
17,855

Museum heritage and exhibition assets consist of heritage collection assets such as books, objects, paintings and Masonic jewels covering the period from 1717 to date that are held for the duration of their physical lives because of their unique cultural and historical attributes. They assist the Museum meet its objectives in regard to exhibitions, education, research and preservation, all of which are directed at providing a cultural service to the general public. All objects, books and papers which are added to the collections, whether by purchase, donation or loan are recorded in registers of accessions in accordance with museum practice. Heritage assets are not depreciated since their long economic life and high residual value, supported by these conservation measures, mean that any depreciation would not be material. With current UK museums policy, these “assets” are unlikely to be realised.

29

NOTES TO THE CONSOLIDATED ACCOUNTS (Continued)

11. INVESTMENTS

( Library and Museum Charitable Trust )

Cost
2021
£
Investment in subsidiary
-
UK listed investments
547,343
Non-UK listed investments
189,045
Cash
180,401
Investments
916,789

Total investments
916,789
Market value as at 1 February
Net monies invested/(disinvested)
Net gains/(losses) on investments
Market value as at 31 January		 Market
value
2021
£
-
651,522
222,852
180,401
1,054,775
1,054,775
2021
£
920,452
132,961
1,362
1,054,775		 Cost
2020
£
50,000
557,530
216,472
9,867
783,869

833,869
 Market
value
2020
£
50,000
669,398
241,188
9,867
920,453
970,453
2020
£
1,044,057
(207,792)
84,187
920,452

From time to time investments are sold and the proceeds reinvested as part of managing the portfolio.

12. DEBTORS

Prepayments
Donations
Sundry debtors		 Consolidated
2021
2020
£
£
12,846
-
6,761
-
22,744
42,036
42,351

42,036		 Library and Museum
2021
2020
£
£
12,846
-
6,761
338,693
22,744
27,486
42,351
366,179		 Library and Museum
2021
2020
£
£
12,846
-
6,761
338,693
22,744
27,486
42,351
366,179
366,179

30

NOTES TO THE CONSOLIDATED ACCOUNTS (Continued)

13. CREDITORS

Trade creditors
Sundry creditors
Accruals
HM Revenue & Customs-PAYE
HM Revenue & Customs-NI		 Consolidated
2021
2020
£
£
29,633
7,753
88,538
81,456
10,807
6,162
7,207
6,914
8,997
8,391
145,182

110,676		 Library and
2021
£
29,633
88,538
10,807
7,207
8,997
145,182
 Museum
2020
£
7,753
81,239
6,162
6,914
8,391
110,459

14. TRANSACTIONS WITH THE UNITED GRAND LODGE OF ENGLAND

Certain operating and administrative expenses of £327,648 ( 2020: £334,616 ) are charged by the United Grand Lodge of England on a basis which reflects the amount of space occupied by the Museum within Freemasons’ Hall. The amount due to the United Grand Lodge of England at 31 January 2021 was £80,702 ( 2020: £81,239 ). United Grand Lodge made donations to the Library and Museum Charitable Trust of £865,045 ( 2020: £999,452 ).

15. PENSIONS

The Museum is a Participating Employer in the Staff Pension and Life Assurance Scheme of the Grand Lodge, a multi-employer scheme (the “Scheme”). The Scheme, which currently has 16 active members of whom 4 are employees of the Museum, is accounted for as a defined contribution plan on the basis that sufficient information is not available to use defined benefit accounting.

The split of deficit funding contributions was agreed between the Participating Employers with effect from February 2019 with the Museum contributing a fixed monthly amount of £12,925 for 35 months, a total of £452,375.

A provision for the balance of the relevant deficit funding liability was included in the balance sheets at 31 January 2021. The provision amounts recorded on balance sheet do not reflect any present value discounting adjustments on the basis that the impact of any discounting is not material.

The Museum trustees do not consider that the charity has any liability for the Scheme deficit funding other than as explained above. The total pension costs recognised as an expense in the year in relation to this scheme was £205,462 ( 2020 - £204,956 ).

Opening balance
Remeasurement
Payments in the year
Balance at 31 January		 2021
£
452,375
-
(155,100)
297,275		 2020
£
232,650
352,668
(132,943)
452,375

The Museum also participates in the United Grand Lodge Group Personal Pension Plan (GPPP). Employer contributions to the GPPP in the year totalled £41,089 ( 2020: £43,622 ). All staff who are not members of the Scheme are automatically enrolled in the GPPP.

31

NOTES TO THE CONSOLIDATED ACCOUNTS (Continued)

16. CHARITY FUNDS

The Museum hold funds represented by its net assets which can be allocated into two categories

a) In providing its public benefit the Museum holds heritage and exhibition assets and exhibition space in the Prince Regent Room at Freemasons’ Hall in which some of these are exhibited. Although the Museum has necessarily incurred costs in acquiring these assets, they are not held with any expectation that they will be realised by way of sale or other disposal. Accordingly these assets (“Heritage and Exhibition Assets”) do not form part of the general reserves of the Museum.

b) The Museum also holds investments and other current assets and liabilities which provide the charity with the funding necessary for its operations as set out in its reserves policy (“General Reserves”).

The Council of the Library and Museum Charitable Trust consider that, taking account of the differing nature of Heritage and Exhibition Reserves and General Reserves, the balance sheet presentation should reflect the liquidity of the Museum. Accordingly the balance sheet has been presented as two columns to separate and record the above allocation of the Museum funds and assets.

To comply with the requirements of the Charity SORP(FRS 102) a total balance sheet column is also presented.

17. CHARITY INFORMATION

A prior year adjustment has been made in respect of the additional pension deficit contributions to be made by the Museum as a result of the actuarial valuation of the scheme carried out in 2019 which had not been recognised as a liability in the financial statements for the year ended 31 January 2020. This has the impact of increasing liabilities and expenditure as at 31 January 2020 by £352,668 and reducing opening reserves as at 1 February 2020 by the same amount