Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINKTANK TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Company Registration Number: 03239119 Charity Number: 1061898
Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINlffANK TRUST Report and Accounts for the Year Ended 31 March 2024 CONTENTS Page Company Details Report of the Trustees Statement of Trustees, Responsibilities Independent Auditor's Report Statement of Financial Activities 9-10 Balance Sheet Notes to the Financial Statements 12-19
Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINFffANK TRUST Report and Accounts for the Year Ended 31 March 2024 Company Details Charity Name Thinktank Trust Charity Registration Number 1061898 Company Registration Number 03239119 Registered Office Bimiingham Museum and Art Gallery Chamberlain Square Birmingham B3 3DH Auditor Cooper Pary Group Limited Cubo Birmingham Office 301 Two Chamberlain Square Birmingham B3 3AX Banker HSBC Bank plc 130 New Street Birmingham B2 4JU Solicitors Higgs & Sons LLP Waterfront Business Park 3 Brierley Hill Dudley DY5 1LX
Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINFffANK TRUST Report and Accounts for the Year Ended 31 March 2024 Report of the Trustees The Board is pleased to present their Annual Report and Financial Statements for the year ended 31 March 2024. The financial statemenis comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association. and Accounting and Reporting by Charilies.. Statement of Recommended Practice applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 2019). Board of Truslees Members of the Board of Trustees, who are Directors for the purpose of company law and Trustees for the purpose of charity law, who setved during the year and up lo the dale of this report are set out below.. Niels de Vos The Tnjstees received no remuneration for their Seices. Legal status Thinktank Trust is a regislered charity (number 1061898) and a private company limited by guarantee (number 03239119), incorporated on 19 Augusl 1996. and is govemed by its Articles of Association {Articlesl. In the evenl the charitable company is wound up members are required to contribule an aTnount not exceeding £1. Objects and activities for the public benefit The charity's objects as set out in its Articles of Ass(xiation are: To advance the education of the public by the operation, maintenance, expansion and development of museums in Birmingham and the increasing of public undelanding of and opportunities for learning about history, science and technology. The mission of BMT to harness all the peoples CollectiS. heritage and Greatiwty to tell stories that make meaning. The strategic aims of Bimiingham Museums Trust (BMT) as a whole are to achieve the charitable group's objectives. Birmingham Museums TNst's strategic aims are: DEMOCRATISE OUR GOVERNANCE - We believe ideas and leadership can and should come from anywhere. We will adapt and augmenl lo create a more sustainable, agile and porous structure. We will create a democratic decision-making process and new groups of influence. NURTURE AND CREATIVE, ENABLING INTERNAL CULTURE _ Deliberale coordinated method to change our cullure collectively. Become an experimental leaming organisalion driven by evidence-based decision making. GROW A RICH WORKFORCE ECO-SYSTEM Design a Workfo with the capabilities to develop the service and deliver our Cause. Grow our own pipeline of talent through our programming and provision of career and skills development opportunities. Inclusive of the wider workforce of creatives. freelancers, contracted staff and partners. DESIGNS A RADICAL, NEW MUSEUM OPERATING MODEL - We will re-think what a museum is and its relationship lo its city- We believe that BMT is more than a collection of buildings and objects. We see our role not only as a guardian bul as an agency of social change. We will explore new and different ways to manage, use and rationalise our estate and our physical and digital assets to identify the options that best support our future viability and resilience and that can best deliver our Cause. REDEFINE THE CULTURAL VALUE OF COLLECTIONS _ We will change how our collections are understood, accessed and used and we will reframe how we measure cultural value of our collections to Birmingham and ils citizens. We will build new partnerships and develop new channels that enable people to play a fuller role in using, researching. borrowing, augmenling and inlerpreling our collections and curating their own. We will explore repatriation and deaccession for long-tem sustsinability.
Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINFffANK TRUST Report and Accounts for the Year Ended 31 March 2024 Report of the Trustees (continued) Objects and activities for the public benefit (continued) PIONEER EXPERIMENTS IN MASS_PARTICIPATION We will make a paradigm shift that moves BMT away from the dominant model of passive visitor-ship. In its pla we will forge a new model of active engagement= experiments that enable non-visitors lo share their heritage and creativity and share their slories and ours. We want to make the people's culture popular culture. We will devise new measures that evidence the impact on individual, community, civic and societal change REPOSITION BMT AS CRITICAL TO THE CITY'S FUTURE _ Reposition Bimingham Museums as a critical key driver of social, cultural and economic creativity and innovation. Identify new audiences, advocates, partners and stakeholders to help us deliver our Cause. BUILD OUR OWN SEGMENTED MASS CHANNELS _ Use direct email to create our own channel to increase user engagement and participation. Underpinned by our website, CRM and ticketing systems and backed up by a social media strategy. CULTIVATE CONNECTIONS - Become an anchor organisation in a vibrant city-wide neiwork of organisations and individuals. DIVERSIFY AND INCREASE OUR INCOME - Respond to the changing markets and circumstances, adapting and evolving our trading opportunities to maximise income. The Trustees have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit when reviewing the charilable company's aims and objectives in planning fvture activities. In particular. the Trustees have considered how planned activities will contribute to the strategic aims. The Charitable group's priorities are aligned with those of ils major public funders. Birmingham City Council and Arts Council England. For a full review of activities in the year, please refer to the parent charitable company Birmingham Museums Trustees report anol financial 3tstements (see note 201. Structure, Governance and Management The Truslees of Thinktank Trust have continued to cary out the charitable aclivities through Ihe parent, Birmingham Museums Trust. Bimiingham Museums Trust combines the WO ofThinktank Trust together with the principle activities of Bimiingham Museums Trust. The Board of Trustees oversees the development of the Trust and the work of the executive team of Bimiingham Museums Trust in relation lo Thinktank Trust's activities. The Trustees are responsible for ensuring and maintaining control over all activities and authorise all major transactions of the charitable company. Day to day management was delegated to Sara Wajid and Zak Mensah, Joint Chief Executive Officers of Birmingham Museums Trust. The remuneration of key personnel and Directors is met wholly by the parent. Bimiingham Museums Trust. which also provides indemnity for the Directors. Recruitment and Appointment of TrusteesA)irectors Truslees are appointed by the Directors of Ihe parent, Birmingham Museums Trust, after they have considered the desirability of: making such a recommendation after the advertisement of the vacancy and the response to such an advertisement- a board of directors with a range of skills experience and abilities relevant to the objects and aclivities of the charity- and board of directors, representstive of the diverse community within the City of Bimiingham. Trustee Induction and Training All Trustees are provided wth an induction to the organisation on appointment.
Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINFffANK TRUST Report and Accounts for the Year Ended 31 March 2024 Report of the Trustees (continued) Funds Slatement at 31 March 2024 The Trustees have considered the level of reserves required to maintain sufficient working capital and to meet unforeseen liabilities Ihat may arise. At 31 March 2024, Thinktank Trust had unreslricled reseNes deficil of £2.003m (2023.. £1.636ml and restricted reserves surplus of £NIL 12023= £NIL). Total reserves al 31 March 2024 were £2.003m deficit (2023.. £1.636deficitl- Thinklank Trust receives grant funding direcuy linked to expenditure. The deficit on unrestricted funds represents unavoidable expenditure incurred over a number of years with insufficient grant funding to support this during those years. Thinktank Trust continues to be supported by its parent company. Binningham Museums Trust. The restricted funds were crealed when assets were purchased for continuing use by Thinktsnk utilising restricted funds. These assets are now fully depreciated. Going Concern The Trustees consider that there is a reasonable expectation that the company has sufficient support from its parenl charitable company to conkn'nue in operalional existence for the foreseeable future, with this support having been confimed in writing and for this reason they have adopted the going concem basis in preparing ihe financial statements. Investment policy The company maintains bank accounls with HSBC plc. In order to maximise the return on available funds, these are invested in low-risk short-lemi deposits with HSBC plc, a bank vihich operates in the United Kingdom and which is subjecl to regulation under the Financial servIs kt 2012. Related parties Birmingham Museums Trust is the sole rnernber of the company. Binningham Museums Trading Limited is also a related paty through being wholly owned by Bimiingham Museums Trust. Any conflicts of interest involving Trustees in these respects are dedared where appropriate. The accounts include an intercompany creditor with Ihe parent company of £2.033m {2023.' £2.305ml. A grant of £1.417m {2023.' £1.417m) was received from Birningham City Council contributing to the rent, service charge and rates. Plans for Future Periods The Truslees of Thinklank Trust plan to continue to cary out the charilable activities through the parent company, Birmingham Museums TSt.
Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINFffANK TRUST Report and Accounts for the Year Ended 31 March 2024 Statement of Trustees, Responsibilities Statement of Trustees, responsibilities in respect of the Trustees. report and the financial statements The Truslees are responsible for preparing the Truslees. Report and the financial stalemenls 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 have elected to prepare the financial statements in accordance with applicable law and Uniled Kingdom Accounting Standards (United Kingdom Generally ACpted Accounting Practice), including Financial Reporting Standard 102, 'The Financial Reporting Slandard applicable in the UK and Republic of Ireland,. Under company law the trustees must nol approve the financial slatements unless they are satisfied that Ihey give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the trustees are required to= select suitable accounting poliues for the charitable company's financial statements and then apply them consistently.. make judgemenis and estimates that are reasonable and prudent.. prepare the financial statements on the going concem bas unless ri is inappropriate to presume that the company wll conlir)ue in business. The trustees are responsible for keeping adequate accounting records thal are sufficient to show and explain the charitable company s Iransaclions and disdose with reasonable accuracy at any time the financial position of Ihe charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for the safeguarding the assets of the company and he for taking reasonable steps for the prevention and detection of fraud and other irregularitie5. Disclosure of information to auditors Each of the persons who are directors at lime when this Trustees. report is approved has confimed that.. so far as the trustee is avRre, there is no rdevant audii infomiation of which the charitable company's auditor is unaware,. and the Irustee has taken all steps that ought to have been taken as a direclor in order to be aware of any relevant audit infoThation and to establish that the charitable companys auditor is aware of that information. Auditor The Auditor, Cooper Pary Group Limited. will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. Small company provisions This report has been prepared in accordance with the provisions applicable to companies subject to the small companies. regime of the companies Act 2006. Approved by the Board of Trustees on 24 July 2024 and signed on their behalf by.. DrKuSigneil by: 814878EFeEE3442 Niels de Vos Trustee
Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINFffANK TRUST Report and Accounts for the Year Ended 31 March 2024 Independent Auditor's Report to the Members and Trustees of Thinktank Trust Opinion We have audited the financial statements of Thinktank Trust {"the Charitable Company'l for the year ended 31 March 2024 which comprise the Stalemenl of Financial Activities, the Balance Sheet, and notes to the financial stalemenls, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 -The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Apted Accounting Practice). In our opinion the financial stalements= give a true and fair view of the state of the charitable company's affairs as at 31 March 2024, and of ils incoming resources and application ol resources, including its income and expenditure. for the year then ended., have been propedy prepared in accordance with United Kingdom Generally Accepted A¢xounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibililies under those slandards are further described in the Auditor's responsibilities for the audit of the financial statements seclion of our report. We are independent of the charitable company in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Slandard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit eviden we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In audiling Ihe financial slatements, we have concluded thal Ihe Irustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied. we have not identified any material uncertainties relating to events or conditions that. individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going conrn for a period of at least 12 months from when the financial statements are authorised for issue. Our reswnsibilities and the responsibilities of the trustees with respeci to going concem are described in the relevant sections of this report. Other inforniation e other infomiation comprises Ihe infonTtation included in the trustees, annual report, other than the financial statements and our auditorfs report thereon. The trustees are responsible for the olher information contained within the annual report. Our opinion on the financial statements does not cover the other infonnation and, except to the extent othemise explicitly staled in our report. we do not express any fomi of assurance condusion thereon. Our responsibility is lo read the other information and, in doing so, consider whether the other infomation is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears lo be malerially misstated. If we identify such material inconsislencies or apparent material misstatements, we are required to determine whether this gives rise to a material misststement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other infomiation, we are required to report that fad. We have nolhing to report in this regard.
Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINFffANK TRUST Report and Accounts for the Year Ended 31 March 2024 Independent Auditor's Report to the Members and Trustees of Thinktank Trust (continued) Opinions on other matters prescribed by the Companies Act 2006 In our opinion. based on the work undertaken in the course ofthe audit-. the infom)ation given in the Trustees, report (incorporating the strategic report) for the financial year for which the financial statements are prepared is consistent with the financial statements., and the Strategic report and the Trustees. report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In Ihe light of our knowledge and understanding of the charitable MpanY and its environment obtained in the course of the audit, we have not identified material misstatements in Ihe strategic report or the tnjstees, rert. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion.. adequate accounting records have not been kept, or retums adequate for our audit have nol been received from branches not visited by us- or the financial statements are not in agreement with the accountsng records and retums", or certain disclosures of TTUStees' remuneration spectfied by law are not made. or we have not received all the infomiation and explanations we require for our audtt.. or the Iruslees were not entitled to prepare the financial staternents in accordance wilh Ihe small companies. regime and take advantage of the small companies. exemptions in preparing the trustees, report and from the requiremenl to prepare a strategic report. Responsibilities of Irustees As explained more fully in the Trustees, responsibilities statement set out on page 5, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial slatements and for being satisfied that they give a true and fair view, and for such intemal control as the tNslees 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 statemenls. the Trustees are responsible for assessing Ihe charitable company s ability to continue as a going concem, disclosing, as applicable. matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operalions, or have no realistic allemative but to do so. Auditorfs responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial stalements as a whole are free from malerial 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 assuran. but is nol a guarantee that an audit conducled in accordance with ISAS {UKI will always detect a material misstatement when it exists. Misstatemenls can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonably be expecled to inffluen the economic decisions of users taken on the basis of these financial statements. IegUlaritIes, including fraud, are InStanS of n0n-cornpl1an with laws and regulations. We design prOdureS in line with our responsibilities, outiined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for Ihis engagement and the exient to which these are capable of detecting irregularities. including fraud are detailed below. Our assessment focussed on key laws and gUlationS the charitable company has to comply with and areas of the financial statements we assessed as being more susceptible to misstatemenl. These key laws and regulations included but were not limited to compliance with the Companies Act 2006. Charities Act 2011, taxation legislation, data protection and anti-bribery legislation
Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINFffANK TRUST Report and Accounts for the Year Ended 31 March 2024 Independent Auditor's Report to the Members and Trustees of Thinktank Trust (continued) We are not responsible for prevenling irregularities, including fraud. Our approach lo detecting irregularities including fraud, included, but was not limited to, the following= oblaining an understanding of the legal and regulatory framework applicable to the charitable company and how the charitable company is complying with that framework, including agreement of financial stalemenl disclosures to underlying documentslion and other evidence- oblaining an understanding of Ihe charitsble company s control environmenl and how Ihe charitable company has applied relevant control procedures. through discussions with management and by perfoming walkthrough testing over key areas- oblaining an understanding of the charilable company's risk assessment process, including Ihe risk of fraud,. and perfomiing audit testing to address the risk of management override of controls, including testing joumal entries and olher adjustments for appropriateness. evalualing the business rationale of significant transactions outside the nomial course of business and VIewIng accounting esb'mates for bias. Whilst considering how our audit work addressed the detection of irregularities, we also considered the likelihood of detection of fraud based on our approach. Irregularities arising from fraud are inherenlly fflore difficult to detect than those arising from error. Because of the inherent limitations of an audit. there is a risk that we will not detect all irregularities. including those leading to a material misstalement in the ffinancial staternenls or non-compliance with regulalion. This risk increases the more that compliance with a law or regulation is removed from Ihe events and transactions reflected in the financial stalemenls. as we will be less likely to become aware of instances of non-complian. The risk is also greater regarding irregularities occurring due to fraud rather than error. as fraLJd involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council's I'FRC'S'I website at.. https://www.frc.or -uklauditOTsres nsibiliiies. This description fomis part of our auditor's report. Use of our report This report is made solely to the charitable company's member5, as a body, in accordan with Chapler 3 of Part 16 of the Companies Acl 2006 and to the charity's Trustees. as a body, in accordance with Chapter 3 of Part 8 of the Charilies Act 2011 and regulations made under section 154 of Ihal Act. Our audil work has been undertaken so that we might state lo the charitable company's members and the charity's trustees those matters we are required to state to them in an auditorfs report and for no other purwse. To the fullest extent permitted by law, we do nol apt or assume responsibility to anyone other than the charitable company, the charilable company's members as a body, and its Trustees as a body. for our audit work. for this report. or for the opinions we have formed. CoopÈr Parry Group Limited Statutory Auditors Cubo Bimingham Office 301 Two Chamberlain Square Birmingham B3 3AX Dale- 13 Novemeber 2024
Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINFffANK TRUST Report and Accounts for the Year Ended 31 March 2024 Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the year ended 31 March 2024 Note Unrestricted funds Restricted funds Totsl 2024 Total 2023 Income and endowments from: Charitable activities 1,417,000 1.417,000 1,417,000 Total 1,417,000 1,417,000 1,417,000 Expenditure on: Charitable Aclivilies (366.598) (1.417,000) (1,783.598) {1,983,929) Total (366,598) (1,417,000) {1,783.598) {1.983.9291 Net movement in funds 1366.598) (366.5981 1566.929) Fund balances brought forward 14 {1.636A99) (1,636.499) (1.069.570) Fund balances carried forward 14 {2.003.097) (2.003.097) (1.636.499) The incoming resources, resoLJrces expended and resuming net movement in funds arise from continuing operalions and include all gains and losses recognised In the year. The notes on pages 12 to 19 form an integral part of these financial statements.
Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINFffANK TRUST Report and Accounts for the Year Ended 31 March 2024 Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the year ended 31 March 2023 Note Unrestricted funds Restricted funds Total 2023 Income and endowments from: Charitable activities 1.417.000 1.417.000 Tolal 1.417.000 1.417.000 Charitable Activities (294.737) (1.689,1921 {1,983,929) Total (294,737) (1.689.192) (1.983,929) Nel movement in funds 14 (294,737) 1272,192) 1566,929) Fund balances brought forward 14 11,341.762) 272,192 (1,069,570) Fund balances after transfers carried forward 14 (1,636,499) (1.636.499) The incoming resources, resources expended and resuming net movemer)t ir) funds arise from continuing oper8tions and include all gains and losses recognised in the year. The notes on pages 12 to 19 form an integral part of these financial statements. io
Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINFffANK TRUST Report and Accounts for the Year Ended 31 March 2024 Balance Sheet as at 31 March 2023 Note 2024 2023 Fixed Assels Tangible assets Current Assets Debtors Cash at bank and in hand 10 11 489,485 178,868 29.895 29,895 668,353 Creditors.. amounts falling due in one year 12 (2,032,992) 12,304.8521 Net Current Assets (2,003.097 {1.636.499) Net Assets (2,003,097) {1,636,499) Funds Restricted funds Unreslricled funds 14 14 {2,003,097) {1,636.4991 Total funds 14 12,003,097) {1,636,499) The financial 5tstements have been prepared in accordan with the special provisions applicable to companies subject to the small companies regime These financial statements were approved and authorised for issue by the Board of Truslees on 24 July 2024 and were signed on ils behalf by= SwJn•d by.. 814878EFCEE3442... Niels de Vos Trustee The notes on pages 12 to 19 fomi an integral part of these financial statements. Company Registration Number: 03239119 Charity Number- 1061898
Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINFffANK TRUST Report and Accounts for the Year Ended 31 March 2024 Notes to the Financial Statements 1. General infomiation Thinktank Trust is a charitable company limited by guaranlee, incorporated and domiciled in England and Wales (Company number 03239119, Charity number 10618981. The Trust has no share capital. In the evenl of the charitable company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charitable company. The registered office is Birmingham Museum & Art Gallery, Chambedain Square, Bimingham, B3 3DH. 2. Statement of principal accounting policies Basis of Accounting The financial statements have been prepared under the Charities Act 2011 on a going concem basis and under the historical cost 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 wilh the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021, Charities SORP IFRS 1021. the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 102) and the Companies Acl 2006. Thinklank Trust meets Ihe definition of a public benefft enlty under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value, unless otherwise stated in the relevant acmunt policy notes. The ffinancial statements are prepared in sterling which is the functional currency of the charitable company and rounded to the nearest £1. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exeruse judgement in arplying the Trust's accounting policies (see note 31. The following principal accounling policies have been applied: Incoming Resources Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature are recognised once Thinktank Trust has an entitlement to the resources and it is probable that the resources can be measured with SLrficient reliability. Such income is only deferred when: the donor specifies that the grant or donation must only be used in future accounting periods- or the donor has imposed ConditnS which must be met before the chartty has unconditional entitlement. Grants receivable Grants are recognised in the Statement of Financial Aclivities wthen the conditions for receipl have been complied with. Going concern The Trustees believe the charitable company (in conjunction with the Group) is well plad lo trade through Ihe uncertain ts'mes caused by the Section 114 notice issued by Bimiingham City Council on the 5 September 2023, due lo the quality of its offer and the loyalty of its customers. More so. the charitable company's parent, Birmingham Museums Trust, is not requiring payment of the inter-company debtors for the foreseeable future and confirming support for the company for the foreseeable fijture. On this basis, the Trustees are confident that the charitable company has adequate resources to continue in operalion and have adopted the going cOnM basis in preparing these financial statements. 12
Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINFffANK TRUST Report and Accounts for the Year Ended 31 March 2024 Notes to the Financial Statements (continued) Statement of principal accounting policies (continued) Fund accounting The charilable company mainlains two types of funds as follows: Restricfed funds Restricted funds represent grants and donations received which are allocated by the donor for specific purposes. Unrestricted funds Unrestricted funds represent funds that are expendable at the discretion of the Trustees in the fijrtherance of the objects of the charitable company. Such funds may be held in order to finance trM)th working capital and capilal investment. Resources Expended Liabilities are recognised as resources expended as sn as there is a legal or constructive obligation committing Thinktank Trust lo the expenditure. Al expenditure is accounted for on an accruals basis and has been classrfied under headings that aggregate 811 costs related to the category. Costs of generating voluntary income These costs are incurred in relation to staff members and consultants who are engaged diredy in fijndraising and also include the costs of campaigns for raising donations. Charitable activities Charitable expenditure includes expenditure ass(xiated the operation of Thinktank. Basis of allocation of costs All expendilure is accounled for on an accruals basis and has been dassified under headings thal aggregate all costs related to the category. Where costs cannot be diredly attributed to particular headings, they have been allocaled on a basis consislenl with the use of reSoUrs. Costs relating lo the management of Thinktank Trust and support departments have been allocated to other functh'ons based on the time they consume in pursuing the objectives of Thinktank Trust. Operating leases Rentals under operating leases are charged to the statement of financial activtties on a straight-line basis over the lerm of the lease. Taxation Thinktank Trust is exempt from taxation on its income and gains where they are applied for charitable purposes. 13
Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINFffANK TRUST Report and Accounts for the Year Ended 31 March 2024 Notes to the Financial Statements (continued) 2. Statement of principal accounting policies (continued) Tangible Fixed Assets Operating assets Operating assets are stated al cost less depreciation. Deprecialion is provided on a slraight-line basis using rates calculated to write down the cosl of each asset to its estimated residual value over its anticipated usefijl life as follows= Leasehold improvements Plant and equipment Fixtures and fittings Computer equipmenl over 10 years 3to 10years 3to 10years 3 to 5 years. Assets in the course of construction are not depreciated until completion where upon they are transferred to the appropriate fixed asset calegory and depreciated as above. Recognition of liabilities Liabililies are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events. Financial instruments The Trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and SLJbsequently measured at their settlement value. 3. Judgements in applying accounting policies and key sources of estimation uncertainty In preparing the financial stalemenls. management is required to make estimates and assumptions which affect reported income, expenses, assets liabilities and disclosure of contingent assels and liabilities. Use of available infomiation and application of judgement are inherent in the fomiation of estimates, together wilh expeclations of future events that are believed to be reasonable under the circumstances. Actual results in the fijture could differ from such estimates. Operating lease commitments The Trust has entered into commercial propety leases as a lessee on its property portfolio and as a lessee it obtains use of property. plant and equipment. The classification of such leases as an operating or finance lease requires the Trust to determine. based on an evaluation of the tems and conditions ofthe arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the balan sheet. The trustees consider Ihere is no value to be recognised in the commercial leases held by Thinktank Trust. Leasehold improvements are recognised as assets when it is appropriale to do so. The following are the Trust's key sources of estimation UnrtaInty'. Impaimient of non-financial assets Where there are indicators of impairment of individual assels. the Trust performs impaimient tests based on fair value less costs to sell, or a value in use calculation. The fair value less costs to sell calculation is based on available data from binding sales transactions in an arm's length transaction on similar assets or observable markel prices. 14
Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINFffANK TRUST Report and Accounts for the Year Ended 31 March 2024 Notes to the Financial Statements (continued) 4. Analysis of Income from Charitable Activities 2024 2023 Restricted funds Grant lo cover rent and seNice charges 1,417,000 1,417,000 Total incoming resources 1.417.000 1.417.000 5. Analysis of Expenditure from Charitable Activities Museum Costs Costs dI¢11Y allocated to activities Fundraising Governance 2024 2023 Other operating expenditure Deprecialion Direct costs total 1.783.598 1,783,598 1.711,736 272,193 1,983,929 1,783,598 1.783.598 Support costs allocated to activities Total costs 1.783,598 1,783,598 1,983,929 6. Trustees, expenses No expenses were paid either directly to Trustees or on their behalf in the current or preceding financial years. 7. Staff Costs No staff were employed by the c(ynpany in the current or preceding financial years. The fomer Thinktank Trust staff transferred to the employment of Binningham Museums Trust from 1 April 2012. No remuneration was paid to Trustees in the current or prdIng financial year. Key managemenl personnel are remunerated through the parent company, Bimiingham Museums Trust. 8. Net movement in funds Net movement in funds is staled after charging the following: 2024 2023 Depreciation Auditor's remuneration 272,192 The auditor's remuneration was paid by the parent entity, Bimiingham Museums Trust. 15
Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINFffANK TRUST Report and Accounts for the Year Ended 31 March 2024 Notes to the Financial Statements (continued) Fixed Assets Leasehold Improvements Plant and Equipment Fixtures and Fittings Computer Equipment Total Cost At 1 April 2023 Additions 5,208,866 64,889 5,234,272 139,112 10,647,139 At 31 March 2024 5.208.866 64.889 5.234.272 139.112 10.647.139 Depreciation At 1 April 2023 Charge for the year 5.208,866 64,889 5.234.272 139,112 10.647,139 At 31 March 2024 5.208.866 64.889 5.234.272 139,112 10.647,139 Net Book Value At 31 March 2024 At 31 March 2023 All fixed assets are held for charitable purposes. Capital expenditure contracted for, but not provided in the financial statements, was £nil12023= £nill. 10. Debtors 2023 2023 VAT receivable Prepayment Amount receivable frorn group company 72,691 416,794 489,485 11. Cash and Cash Equivalent 2024 2023 Cash at bank and in hand 29,895 178,868 12. Creditors 2024 2023 Amounts falling due within one year: Amounts owed to parent company VAT Payable 2,032,992 2,304,852 2.032.992 2,304,852 16
Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINFffANK TRUST Report and Accounts for the Year Ended 31 March 2024 Notes to the Financial Statements (continued) 13. Financial Instruments 2024 2023 Financial assets Financial assets measured at fair value through statement of financial activities Financial assets that are debt instruments measured at amorbsed cost 29.895 178,868 489,485 668,353 29,895 Financial liabilities Financial liabililies measured at amortised cost 2,032,992 2,304,852 Financial assets are measured at fair value through statement of financial aclivities comprises cash held at bank and in hand. Financi818ssets that are debt instruments measured at amortised cost comprises trade and other debtors, other taxation and social security and arnounts owed by group undertakings. Financial liabilities measured at amortised cost comprises Trade and other creditors, amounts owed to group undertakings and accruals. 14. Funds Analysis Balance as 1 April 2023 Balance at 31 March 2024 Incorning Resources Outgoing Resources Restricted Funds Building rent 1.417,000 (1.417.000) Total Restricted Funds 1.417.000 (1.417.00) Unrestricted Funds 1.636.499 366.598 2.003.097 TOTAL (1.636.499) 1.417.000 (1.783.598) {2,003.097) Restricled funds Building Rent - Grant support from Bimingham City Council. 17
Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINFffANK TRUST Report and Accounts for the Year Ended 31 March 2024 Notes to the Financial Statements (continued) 14. Funds Analysis (continued) Balance at 31 March 2023 Balance at Incoming 1 April 2022 Resources Outgoing Resources Restricted Funds Science for all Seasons Made in Bimingham Building rent 134.512 137,680 (134.5121 (137,S301 (1.417.C()01 1.417.000 Total Restricted Funds 272.192 1.417.000 (1.689.192) Unrestricted Funds 1,341,762 1636.499 TOTAL (1,069,570) 1,417,000 (1,983,929) (1,636,499) 15. Analysis of net assets between funds Restricted Unrestricted Total Fixed Assets Net Current Assets 12,003,097) {2,003,0971 Total as at March 2024 (2,003,097} {2,003.097) Fixed Assets Net Current Assets 11,636,499) {1,636,4991 Total as at March 2023 (1,636,499} {1,636,499) 16. Lease commitments At 31 March 2024 the trust had future minimum lease payments under nOn-canlIable operating leases as follows.. 2024 2023 Within one year Between two to five years More Ihan 5 Years 680,109 2.894.768 577.111 4.151.988 663,521 2.824,164 1.327,824 4.815.509 18
Docusign Envelope ID.. 5CB01779-FF554F3C-A36A43105EB7494A THINFffANK TRUST Report and Accounts for the Year Ended 31 March 2024 Notes to the Financial Statements (continued) 17. Taxation The charitable company's income is exempt from taxation under section 505 of the Income and Corporation Taxes Act 1988 and its chargeable gains are exempt under section 256 of the Taxation of Capital Gains Act 1992. 18. Financial Commitments Debentures and charges The Thinktank Trust has granted a first mortgage charge over certain of its assets to the Millennium Commission to secure all monies owing to the Commission by the Trust under the tem)s of a granl agreement dated 10 December 2004. The Thinktank Trusl has granted a mortgage charge over certain of its assets to the National Heritage Memorial Fund underthe temis of an agreement date 20 April 2011. Value Added Tax As a result of group registration arrangements for Value Added Tax (VAT), the charitable company is jointly and severally liable with other members of the group for any VAT due by the representative member of the group. At 31 March 2024 the group payable in respect of VAT was £18k (2023.. payable £291 kl. 19. Related party transactions Birmingham City Council (BCC) Thinktank Trust received a grant from BCC of £1.417m dumg the ye& (2023= £1.417m) to assist in the provision of lease payments on Thinktank to Millennium Point Propety Limited. 20. Member and ultimate controlling party The charity is incorporated as a company limited by guarantee having no share capital and, in accordan with the Memorandum of Association, every member is liale to contribute a sum of £1 in the event of the charitable company being wound up. At 31 March 2023 Bimiingharn Museums Trust was the sole member of Thinklank Trust. Birmingham Museums Trust, a charitable company (company number 07737797, charity number 11470141 incorporated in England and Wales and limiled by guarantee. is controlled by Bimiingham City Council who is the sole member of Bimiingham Museums Trust. Consolidated financial statements are available from Birrningham Museums Trust, Birmingham Museum & Art Gallery, Chambedain Square, Bimiingham, B3 3DH. 19