Docusign En¥ÈlopÈ ID." 2D262FE(kD83C4A16-A0264ED3C88DF145 SOMERSE OUSE stsp iibside thlnk Out*ld• Somerset House Trust Reportand financial statementsforthe year ended 31 March 2023 Docusign En¥ÈlopÈ ID." 2D262FE(kD83C4A16-A0264ED3C88DF145 Somerset House Trust Legal and Administration details For the year ended 31 March 2023 Re8lStered Office Somerset House Strand London WC2R ILA Registered Chority number 1063640 Company Number 03388137 incorporated in England and Wales Directors (Trustees): The directors of the company who were in officeduring the year and up to the date of si8nin8 the financial statements were: Guil Rebuck Choir of the Board of Trustees Chair of the Nominations & member of the Remuneration Committee Sophie Turner Lain8 Deputy Chair of the Board of Trustees Memberofthe Nominations & Remuneration Committee Alix Bur8e Mortine D'An8lejan£hatillon Jennrfer Duvalier Memberofthe Audwt& Riskcommirtee ChairofRemunerution CommitteeandmemberoftheNominationsCommittee Appointed 7 December 2022 Brian Eno Carol Fuirweuther ChairoftheAudit& Riskcommittee Judy Gibbons Resigned 24 September 2022 Deputy Chair of the Board of Trustees Member of the Nominations & Remunerotion Committee Paul Goswell Melanie Holl Memberofthe Audit & Riskcommittee Oluwole Kolude Memberofthe Nominations & Remuneration Committee Res18ned15 March 2023 Memberof Nomination5& Remuneration Committee Appointed 7 Decefflber 2022 Duwid KonoteyAhulu Monico Monajem lsfohani Memberofthe Audwt& Riskcommirtee Jonathan Newhouse Julien Sevaux Resigned18 Deeember 2022 MemberofAudit & Risk Committee Appointed 7 December 2022 Resigned 25 June 2023due to new external executive appointment Melanie Smith Docusign En¥ÈlopÈ ID." 2D262FE(kD83C4A16-A0264ED3C88DF145 Somerset House Trust Legal and Administration details For the year ended 31 March 2023 Jessico Tomsedge Peter Williams Appointed 27 September 2023 Member of the Audit and Risk Committee, Appointed 27 September 2023 Executive Team Jonathan Reekie Director Diana Spie8elber8 Sumontha Gilburd Deputy Director Chief Operating Officer und Company Secretary Independent Auditor BDO LLP 55 Boker Street London WIU7EU Banker National Westminster Bunk PLC 38 Strand London WC2N 5JB Solicitors Farrer& Co LLP 66 Lincoln's Inn Fields London WC2A 3LH Charles Russell Speechlys 5 Fleet Place London EC4M 7RD YESS Law Vour Employment Settlement Service Limited) South Win8, Somerset House Strond London WC2R ILA Butes Wells & Braithwuite London LLP 10 Queens Street Place London EC4R IBE Foot Anstey Senate Court Southernhay Gardens Exeter EXI INT Docusign En¥ÈlopÈ ID." 2D262FE(kD83C4A16-A0264ED3C88DF145 Somerset House Trust Report of the Board of Trustees For the year ended 31 March 2023 CHAIR'S FOREWORD Somerset House enjoyed a buoyant year, with the site refilling with our creative community, the public and commerciol activity, quicker thon we WOLJld have dared hope. As a result, we were oble to occelerote our choritoble spend on the building undto rebuild ourculturol programmein itsfirstfull year sinee 2019120. As the homeof cultural innovotors, Somerset House connects creativity ond the arts with wider society ond throughout the year the site was bursting with the energy of ourereotive residentswhieh reflected in many aspects oloureultural activity. We are proud to be custodions of this historic buildingat the heortof London, with its long historyof public seNice and eounter perspective. We use this today> to provide a home to the UK'S lorgest creative community working 8lobally acr05$ art, technology, bu5ine5s and social enterprise. In doing so, Somerset House draws in fresh ideas ond new tolent, enablin8 5urprisin8 alliances, conver8ence5 and ehance encounters, which motivate and inspire. The exchange between ortists, creatives und wider society is the most vital und inspiringelementof Somerset House. This i5felt most 5tron8ly when our pro8romme is driven by our residents. Most notablyi we bravely backed two of our art15ts, Gareth Pugh and Carson Mccoll to present Thi5 Bright Land, a month-lon8 celebration of eommunity and culture, in the Edmond J. Sufra Fountain Court, attracting 200,000 visitors with the highlights undoubtedly being theweekly Vogue Balls ond the daily spectacle of children playin8 in thefountuins ond enjoying free movies. Although the rest of our cultural programme was slightly slimmer, there were some notable successes, such as Eternally Yours, exploring the eulture of repair- The Horror Show. curated in-house with two of our resident artists und O Burcoffhe Boat, a mojor courtyard installation that marked the l(Hh anniversary of another Somerset House resident organisation,the1-54 African artfoir. In the courtyard, we started the yearwith Leeroy New'sfuturi5tic Arks of Girllokudan installation and ended withJitish Kallat'5Whorled which fittingly plaeed Somerset House at the centre of the universe. Over 32,000 people delighted in the return of the Summer Series und we had our most successful Skate seoson ever with more thon170,000 people taking to the ice ogainst the bockdropof our beautrful buildin& As you might expeetfrom a communitypaeked with creative talent, the bounce back wusfast, with many newcreative individuols ond businesses choosingto base themselves at Somerset House ocross our workspace offering. They were joined by new and emer8in8 tolent, most notably through our Inclusive Talent Pro8rammes and the Black Business Incubutor, which welcomed tFs third cohort. The creative industries remain one of the UK'S fastest 8rowin8 sectors and its resilience and fleet footedne55 in a rapidly ehan8in8 world 15 5UPPOrted and exemplrfied by Somerset House. Our Combination of eommunity ond programme harnesses the power ofthe arts to make change across the whole of society. It brin85 much needed fresh thinking to some of our m05t critical 5YStems including education, work, technology and the climote emer8encyi 5timulatingand fuellin8 artists und creatives by world5 beyond themselves. Somerset House invites everyone to'step inside, think outside,. It's a place to eseape the eomfort zone in the safest woy. It creates brave experiments in, ond for, the world und plocesthe power olcreotivityat the heart of our lives. We arevery8roteful tothe Depurtmentof Digital, Culture, Medio and Sportfortheircontinued support. Without this, we would not beabletodo what we do. What happens here hoppens nowhere else. This results from our unique combination of people, place and programme ond is thanks to the unceasin8 dedication and hurd work of the Somerset House team. l am 8ruteful to them, to myfellow trustees and toall Somerset House's supporters und partners. Goil Rebuek DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 Somerset House Trust Report of the Board of Trustees For the year ended 31 March 2023 - - - - - - - 4 Docusign En¥ÈlopÈ ID." 2D262FE(kD83C4A16-A0264ED3C88DF145 Somerset House Trust Report of the Board of Trustees For the year ended 31 March 2023 Our Inclusive Talent Engagement progrommegave free learning ond coreeropportunities to 3,284 young people in person, run8in8 from attendance at events providin8 aceess to praetitioners to year-lon8 London Living Wage paid plaeementswith the Trust and other resident or8anisutions based at Somerset House. DISTINCTIVE CROSS DISCIPLINARY PROGRAMME As the home of cultural innovators, our culturol progromme celebrates the unique interploy between OLJr onsite Creative community, our Grade I listed herita8e site and our position at the meeting point of artistic and social innovation. The launch of our new digital platform Somerset House Channel wus un important step forward in offerin8 new creative possibilities and buildingour reach both nationally and internutionully. Our progromming objectives focus on: Impoct Producin8distinctive, eross diseiplinoryand critically successful cultural projects. Plarfom) Work thatforegrounds the bLJilding, ourcreativecommunityor lessfamiliar voices Audience Workthut actively uttrocts, enga8es and diversifies oudience throu8h coneept, planning & delivery This wos ourfirstfull yeor of progromming since Covi4 with an ombitious new heodline event forAugust, This Bright Lond, a summer celebration of eommunity and culture. Key results were.. Meosure Total pro8romme visitors {exhibitions and events) Free days of exhibitions / installations Heodline exhibition visitors Online cultural progrommeaudienee Result 420k Tar8et 400k Comment +20% vs previous year 353 42k 562k 350 40k 675k Belowtur8etduetotempororyteam changes and copaeity durin8 the launch phose of Channel Our overoll I￿persOn programme attendonce (ot ticketed events and exhibitions) of 420,000 was obove OLJr target of 400,000, largely driven by record Skate ottendance. As discussed eorlier, the public could visit ond see on exhibition or instollotion almost every day of the yearforfree. Our horr&8rown programme eontinues to develop. We presented 22 sit+5pecrfic projects throughout the year, covering a ronge of commissions, instollations ond performonces with over 80 residentsleatured in our progromme. Ourfoeus on representation continues with olmost 50 key creative decision-mukers on projects throughout the year from communities typieolly under-represented in thearts. Docusign En¥ÈlopÈ ID." 2D262FE(kD83C4A16-A0264ED3C88DF145 Somerset House Trust Report of the Board of Trustees For the year ended 31 March 2023 Progromme Highlights Critically-ueeluimed The Horror Show. examined how ideas rooted in horror have informed the last 50 years ol creative rebellion in Britain. Co in January 2023. The annual pay review for saloried stuff was once aguin brou8ht forward from April to October, one year after the previous review which was olso occeleroted due totheeconomic climote. Atthis review, staff were oworded the higher of £1,400 or 3%, meaning our lower puid stuff reeeived a higher pereenta8e increase lup to c6%1. The next poy review is scheduled for April 2024. To brid8e this gop, and to support our teams durin8 o challen8in8 time, two nonRent & service charges (leases)
Cultural and public events
Concessions and venue hire
Furlough / lockdown grants
Other unrestricted
Restricted
**Total income**
**SURPLUS (before depreciation)**
**FREE RESERVES (excl designation)**
**CASH BALANCE (excl rent deposits)**|**2022/23**
**£000**
**2021/22**
**£000**
**Change**| |---|---| ||10,073
7,269
39%
4,736
3,458
37%
3,853
2,652
45%
-
290
(100%)
1,835
2,150
(15%)
689
1,135
(39%)| ||**21,187**
**16,954**
**25%**
**1,621**
**2,288**
**(29%)**
**3,476**
**3,280**
**6%**
**14,303**
**13,288**
**8%**| ||| |**Full Time Equivalent Employees**|**108**
**83**
**30%**| 17 Docusign En¥ÈlopÈ ID." 2D262FE(kD83C4A16-A0264ED3C88DF145 Somerset House Trust Report of the Board of Trustees For the year ended 31 March 2023 Totol Income and Expenditure (unrestricted & restricted) Total Income £m - 4 years DJ) Prowrty JnaUon5 sTr)n￿r5￿￿ ￿-￿b ￿eten￿onS(h￿ &¥￿u￿ 2022D3 ll202V22 w 2020121 w2019120 We ure pleased that most of our income hos recovered to pr￿C0vId {2019/201 levels particularly on our cultural progrumme where we ure engaging diverse audience4 although signrficant levels of sponsorshipfor This Bright Land will not recur in 2023124. Void levels on property rental ended the year at 8% against a budget of IO%. A future objective is tofurther grow fundraising and commerciol opportunities. Total Expenditure £m - 4 year5 7n sn 2n Property m8na8ement Cuhural co￿2￿51￿5 &venue hSre Ra1￿￿8 Swnsor5Np MEtEhand&e Educa￿On & CJ)TY¥ns Depreclatl 2(Y22123 w 202JJ22 • 2020121 w 2019120 As aetivities hove increased post-covid, $0 has our cost base. Stuffing Costs increased during the year as we rebuilt and alleviated pressures felt in many teams und tOtal￿d £6.2m in the yeur12021122 - £5ml. We spent £6.7m on property management & conservation ineluding £0.4m on new heatin8 controls to improve efficiency and commenein8eonservation works on New Win8 in¢ludin8fa¢ode eleanin8. We continued to toke o cautious approach to expenditure commitments os much of our income performance is not clear until the second halfof the year. This meantthat£O.2m of expenditure wasdelayed into 202￿24. Expenditure on the cultural prosromme surpus5ed our pre£ovid benehmark reflecting the higher cost of presentin8 This Bright Land. The Trust eontinues to pay a peppereorn rent to DCMS in respeet of the leasehold. 18 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust Report of the Board of Trustees For the year ended 31 March 2023 - - - 19 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust Report of the Board of Trustees For the year ended 31 March 2023 - - - - - - - - 20 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust Report of the Board of Trustees For the year ended 31 March 2023 - - - - - - 21 Docusign En¥ÈlopÈ ID." 2D262FE(kD83C4A16-A0264ED3C88DF145 Somerset House Trust Report of the Board of Trustees For the year ended 31 March 2023 Trustees hove odopted the Charity Governonce Code. Governonce ond boord effectiveness reviewswerecompleted durin8 the yearwith a8reed reeommendutionsto maintain high governance standards. The Trustees are supported bytwocommittees.. Audit ond Risk Committee-this committee regularly reports to and udvisesthe Board of Trustees on matters related to financiul reporting, external uudit, internal controlsi policies ond reviewing, in detail, the Trust's risk re8lSter Iwiee o yeor. The remit of this committee evolved during the year to include oversight of governonce processes. Nominotions and Remuneration Commwtrtree this committee advises the Board of Trustees on Trustee membership, Lioard effectiveness ond on motters of remuneration, with oversight of both executive pay ond overall Trust remuneration policy. The Board is olso supported by workin8 parties made up of Trustees with skills in specrfic oreas as required. Trustees areappointed based on relevant skills ond experience, identrfied throu8h regular reviews of the Boord's skills matrix. Trustees ore initiolly oppointed for o period of three yeors with the potential for a second term. In exceptionol circumstances and when the Board of Trusteesare satisfied that it is in the Trust's best interests to do $0, they may be re-oppointed for o third consecutiveterm of up tothree yeors. An induction pro8ramme is provided for new Trustees to ensure that they ore briefed on the Trust's objectives, strate8YI and activities. New Trustee5 meet with the Executive team und have access to other members of staff us required to guin an understanding of the or8anisation. As permitted by the Articles of Association, the Trustees have the benefit of an indemnity which is a quulrfying third- porty indemnity provision as defined by Section 234 of the Componies Act 2006. The indemnity was in ploce throughout 2022123 und continues to apply. FUNDFiAISING We are 8rateful to oll the individuals, trusts, foundations, and eorporate partner5 who have supported our aetivity over the105t year, enabling us to continue to deliver our ambitious pro8ramme in 5UPPOrt of ourchoritable obje¢t& We are particularly grateful to our major partner Morgan Stanleyi whieh generously supported the Black Business Ineubutor, a series of free Lates events in the courtyard and a site-specific commission by ortist Ambu Sayol- Bennett. Morgan Stanley's 5UPPOrt will continue into 2023/24. This Bright Land was only made possible on the seale it was thunks to sponsorship from Estée Lauder Companies. We were able to 8ive targeted supportto Studios artists throu8h the On+t(pOne seheme, u new 8enerous mult year8ift und, thanks to a new Jerwood Arts residency pro8ramme, early-5ta8evisual artists were supported to join Somerset House Studios. We ore also groteful to mony others, includingthe Worburg Pincus FoLJndotion for their support of our creative careers pro8rumme, to the Rothschild Foundation for their support of our Di8ltal Creators programmeand to Fidelity UK Foundutionfor supporting crucial systemsimprovements, all of which relutedirectly to our strategic priorities. Somerset House works within the guidelines outlined within the Fundroising Regulator's Code of Fundraising Proctice and is a member of thechartered Institute of Fundraising. We are committed to treating our donors with the hi8hest level of care and respeet. This ineludes- 22 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust Report of the Board of Trustees For the year ended 31 March 2023 - - - - - - - - 23 Docusign En¥ÈlopÈ ID." 2D262FE(kD83C4A16-A0264ED3C88DF145 Somerset House Trust Report of the Board of Trustees For the year ended 31 March 2023 RISK MANAGEMENT Somerset House Trustees regularly exomine the major strategic and operotional risks the Charity foces, ineluding mitl8atin8 actions to reduce euch risk to o level the Board considers aeeeptable. The risk register is maintained by the Executive and senior managementteum and reviewed in detail bythe Audit ond Risk Committeetwice a yeurand at leost annually wider Boord of Trustee& In addition, risk is always eonsidered by the board when setting annual budgets and lon8er term plans. The principal risks currently facin8 the or8anisation are the overall inflationary environment and the potential for a prolonged recession combined with changes to office demond and supply. The Trust's operoting model is Se￿-fInanCIns. Income from resident4 commercial hires ond the cultural progromme funds the runnin8 Costs of the Trust, Continued renovation and upgradin8 of the site ond investment in the eulturul progrumme.Apartfrom restricted and desi8natedfunds, income und surpluses are not ringfenced and may be opplied to meet any of the Trust'5 expenditure requirement5. Mindful of inflationory pressures und recession risks in a competitive morket, the Trust'sfinaneial focus has been on protecting ond growing income while mointoining oppropriate levels ol reserves ond cosh ond holding contingencies within budgets. M05t income lines have built buck fuster than expected, exeeedin8 pr+pundemic in munycases. However, many cost lines also exeeed pr&Covid levels, particularly in our estates function which is impaeted by inflation in ener8y, insurance, building materials and the London Livin8 Wu8e. Ener8Y Cost inflation is managed by hedbMn8 energy requirements as port of o consortium. ThIsenab￿sQ degree of certointy on which to plon by deferringond smoothingthe impoct of price chonges. The Trust is in financial position to manage these overall risks in the short to medium term due to ovoiluble reserves ond cosh, and the obility to schedule ond deprioritise some elements of expenditure combined with the cushioning impact of leose notice periods, deposits und advance payment5 of office rental. Designation of reserves enable the Trust to plan expenditure, with regular reviews to ensure plans remoin appropriate. Longer term plans are regulody updoted, together with scenorio planning and stress-testing, to inform decision moking on expenditure eommitments, wtth majoreommitmentsonly made onee the source of fundin8 is reasonably certain. The other key risks und mitigations are listed below.. Staffing copocity, resilience and wellbeing. People risks hove eosed slightly during the yearwith the fillin8 of vacuncies and an inereuse in headcount to address resourcingchallen8es, improved staff payand cost of living support. In addition, the 8rodual refillin8 of the pro8romme pipeline und the recruitment of a permanent People Director is eQ￿n8 pressures 5UPPOrtin8 improved planning und the buildin8 of more experienced team5. However, we remoin mindful thot people's expectations of work and their employer continue to change. Priorities for the yeor include supportin8 development und oddressin8 those chon8in8 needs. Knowledge management.. Recent staff ehurn has hi8hli8hted our chollenges in knowledge management. Resouree is in plaee to support with u pro8romme of system und process improvements outlined for the nextr 2-3 years. Cyber security.. During the year we again achieved Cyber Essentials eertrfication and used penetration testing and multiple security reviews to identify oreasfor improvement on on ongoing bosis. Stoff troiningforms the cornerstone of our cyber security strategy With regular testing and updates to ensure oworeness of threats remains high. Mojordisoster or infmstructure domose.. As o lorge, orchitecturally signrficont Grade I listed estote, right in the heort of London, major disoster cau5in8 518nrfieant infrastructure damage and loss of bu￿ne$S is another key risk faced by the Trust. The Trust insures against material damage to the building, and resultin81oss of business, and 24 Docusign En¥ÈlopÈ ID." 2D262FE(kD83C4A16-A0264ED3C88DF145 Somerset House Trust Report of the Board of Trustees For the year ended 31 March 2023 ogoinst major plont foilure. Long term work is required tofully ossess the impoct of climote chonge on the site, but Current preventative octions are helpin8 to reduce the risk of rainfall flooding. Security, Heolth and Safety..The security, health and safety ol the millions of people who visit us everyyear, ond those who work onsite, is a key priority and risk focus for the Trust. We employ a professionol security firm who occupy the site 2417, monitoring CCTV, fire alarms, intruder alarms, access eontrol systems ond are a Central point of eontact for onyone working at or visiting Somerset House. os well os thefirst response for ony site emergencies. Terrorism remains on elevated threat in the UK and we must be vigilant und prepared at oll times. We mointain regular contactwith key local and notional bodies und huvea dedicated CounterTerrorism Se¢urityAdvisorto ensure we ore owore of and responding to risks os they orise. During 2022123 we completed instollotion of o new CCTV system to support us in keeping the site safe and secure. We are working with our partners to ensure readiness for the implementation ofthe new Proteet Duty Imartyn's Lowl. All events ore risk-ussessed, and we work with external experts where required to ensure all necessary health and safety precautions are taken. We carry out re8ular inspections and maintenance of key building elements, plant, ond focilitiesto ensure stO￿t0rycoMpliance ond thotwe ore providing o safe environment. Accidentond Incident reports, tO8ether with any recommended or resulting actions, ore reviewed by the Board of Trustees at least once a yeor. Impact of octivism."An increosed risk of activism, with the potential to affect the Trust's reputation, is mitigated by sponsorand donordili8eneeand regular environmentol sustainobility reviewsand actions to reduce our impact. PAY POLICY FOR KEY MANAGEMENT PERSONNEL The Trust's polieies forexecutive pay ore aligned with those for oll staff. The pay for all stuff, including key management personnel, is reviewed annually considering infiation, the Trust's financial performance and benchmarking information to ensure that pucko8es and benefit5 remoin competitive and affordoble. The Nominations and Remuneration Committee reviews the pay arrangements for the individuals in the executive team Icurrently the Director, Deputy Director and Chief Operating Officer) and mokes recommendations on executive poy to the Board. In October 2022, all salaried stuff were awarded the higher of £1,400 and a 3% inereose. 25 Docusign En¥ÈlopÈ ID." 2D262FE(kD83C4A16-A0264ED3C88DF145 Somerset House Trust Report of the Board of Trustees For the year ended 31 March 2023 LOOKING AHEAD Our upproaeh of preparing for the worst and hoping for the best over neorly three years has placed us in a strong position. We have built back towards pr+Covid levels quicklyi ond our ambitious und inelusive programming and visitor experiences increasingly refleet the depth of talent we have onsite. We are working at pace to refill our pro8ramme pipeline und our community, to grow our income ond strenwhen our teams. We ore mindful thot the current economic climote could impact the ochievement of these objectives. Working elosely with Trustees und all senior muna8ement, our strategic objectives for the comin8 years remain unchanged and we will updote on progress in future reports. We are continuin8 our efforts to improve the sustainability of our site, with our immediate focus bein8 physieal improvements to address enersy efficiency. As the home of eulturol innovators, we feel eonfident obout the future and inspired by the creativity and innovation whieh is embedded aeross Somerset House's resident community of artists, makers and ereative enterprise* Artistie ond sociol innovation is ot the heort of mony of their proctices ond is centrol to our public programme, offering solutions and fresh perspective5 on some of the bi88e5t issues of our time. Reolisin8 the full potential of our creative community and delivering the most impactful public programme based on our underlyin8"step inside, think outside" ethos requir& odditional resource, so fundroising and additional commercial income, alongside planned efficiency improvementsare key to realisin8 this. We ore hugely grateful to our staff who, once osoin, hove disployed tenacity, creativity, ond an ability to go obove and beyond throughout the year. We have u stron8 base to build from and we remain positive about the potentiul and relevonce of the Somerset House model combining an inspirational building, inelusive Creative talent, an exciting Community, and an ambitious public pro8ramme. Asthe home of cultural innovators, we are confidentthut, together, we can eontinue to build this excitins new model. What happens here, happens nowhere else. 26 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust Report of the Board of Trustees For the year ended 31 March 2023 - - - - - (a) (b) 27 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust Independent Auditor’s report to the Trustees of Somerset House Trust For the year ended 31 March 2023 - - - 28 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust Independent Auditor’s report to the Trustees of Somerset House Trust For the year ended 31 March 2023 - - - - 29 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust Independent Auditor’s report to the Trustees of Somerset House Trust For the year ended 31 March 2023 - - - - - 30 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust Independent Auditor’s report to the Trustees of Somerset House Trust For the year ended 31 March 2023 - - - - - - - - - 31 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust Independent Auditor’s report to the Trustees of Somerset House Trust For the year ended 31 March 2023 29 September 2023 32 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust ## For the year ended 31 March 2023 |Notes
**Income from:**|**Total**
Total
**General**
**Designated**
**2022/23**
2021/22
£'000
£'000
£'000
**£'000**
£'000
**Unrestricted funds**
**Restricted**
**funds**| |---|---| |Donations, grants and legacies
2
Charitable activities
_Property management and conservation_
_Cultural and public events_
_Public education and communication_
_Rental income_
Other trading activities
_Concessions and venue hire_
_Merchandise income_
_Sponsorship and corporate membership_
Investments
Other Income|75
-
465
540
1,045
2,235
-
203
2,438
2,258
4,736
-
6
4,742
3,459
-
-
-
-
38
7,838
-
-
7,838
6,277
3,853
-
-
3,853
2,653
149
-
-
149
241
1,562
-
15
1,577
792
50
-
-
50
1
-
-
-
-
190| |**Total income**
**Expenditure on:**|**20,498**
**-**
**689**
**21,187**
16,954| |**Raising funds**
3
**Charitable activities**
_Property management and conservation_
_Cultural and public events_
_Public education and communication_
_Rental costs_
**Other trading activities**
_Concessions and venue hire_
_Merchandise costs_
_Sponsorship and corporate membership_|180
-
-
180
132
6,769
2,542
321
9,632
8,191
6,740
-
390
7,130
4,477
2,167
-
148
2,315
1,952
705
556
-
1,261
1,062
1,786
-
-
1,786
1,568
197
-
-
197
273
39
-
15
54
46| |**Total expenditure**
3,4,5,6 **18,583**
**3,098**
**874**
**22,555**
17,701
**Tax charge**
7
-
-
-
-
-
**Net income/ (expenditure)**
8
**1,915**
**(3,098)**
**(185)**
**(1,368)**
(747)|| |Transfers between funds
16|(1,719)
1,719
-
-
-| |**Net movement in funds**
Fund balances brought forward at 1st April 2022
16
**Fund balances carried forward at 31st March 2023**
16
**_Prior period reconciliation of funds_**
_Fund balances brought forward at 1st April 2021_
_Net movement in funds_
_Fund balances carried forward at 31st March 2022_|**196**
**(1,379)**
**(185)**
**(1,368)**
(747)
3,280
77,233
392
80,905
81,652
**3,476**
**75,854**
**207**
**79,537**
80,905
_3,037_
_77,676_
_939_
_81,652_
_243_
_(443)_
_(547)_
_(747)_
_3,280_
_77,233_
_392_
_80,905_| All of the above results are derived from continuing activities and there are no other gains or losses other than those stated above. The notes on pages 37-54 form part of these financial statements. 33 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust ## For the year ended 31 March 2023 **----- Start of picture text -----**
Group Group Charity Charity
2022/23 2021/22 2022/23 2021/22
Notes £'000 £'000 £'000 £'000
Fixed assets
Tangible fixed assets 11 73,284 75,233 73,284 75,233
Current assets
Stocks 49 75 49 50
Debtors 13 3,298 2,968 6,810 4,594
Cash at bank and in hand 16,404 15,509 11,482 12,824
Total current assets 19,751 18,552 18,341 17,468
Current liabilities
Creditors: amounts falling due within one year 14 (10,832) (8,893) (9,486) (7,840)
Net current assets 8,919 9,659 8,855 9,628
Total assets less current liabilities 82,203 84,892 82,139 84,861
Creditors: amounts falling due after more than one
15 (2,666) (3,987) (2,666) (3,987)
year
Net assets 79,537 80,905 79,473 80,874
Funds
General funds 16 3,476 3,280 3,412 3,249
Designated fixed asset reserve 16 73,284 75,233 73,284 75,233
Designated site works reserve 16 2,570 2,000 2,570 2,000
Restricted reserves 16 207 392 207 392
Total funds 79,537 80,905 79,473 80,874
**----- End of picture text -----**
34 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust ## For the year ended 31 March 2023 |Notes
**Net cash provided by operating activities**
**A**
**Cash flows from investing activities:**|**2022/23**
2021/22
**£'000**
£'000
**3,418**
3,150| |---|---| |Interest received
Purchase of tangible fixed assets
11|50
1
(1,040)
(592)| |**Net cash used in investing activities**
**Cash flows from financing activities:**
Interest paid|(990)
(591)
(212)
(83)| |Increase in loan facility|-
-
(1,000)
(334)
(320)
(365)
(1,532)
(782)
896
1,777
15,509
13,732
**16,405**
15,509
**2022/23**
2021/22
**£'000**
£'000
**(1,368)**
(747)
2,989
3,035| |Loan repayments
Finance lease capital repayments
**Net cash used in financing 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**
**B**
**A**
**Adjustments for:**
**Reconciliation of net expenditure to net cash flow from operating activities**
**Net expenditure for the reporting period (as per the statement of financial**
**activities)**|| |Depreciation charges|| |Interest received
Interest paid
Decrease in stock
(Increase) in debtors
Increase in creditors
**Net cash inflow from operating activities**
**B**
**Analysis of cash and cash equivalents**
Cash in hand (including rent deposits - see Note 14)|(50)
(1)
212
83
26
2
(330)
(812)
1,939
1,590
**3,418**
**3,150**
**2022/23**
2021/22
£'000
£'000
**16,404**
15,509| 35 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust ## For the year ended 31 March 2023 ## **Net cash / (debt) reconciliation** |**Net cash / (debt) reconciliation**|||| |---|---|---|---| ||||**As at 31st**| ||**As at 1st**|**Cash**|**March**| ||**April 2022**|**Flows**|**2023**| |Cash at bank and in hand|15,509|895|16,404| |Obligations under finance lease (note 20)|(631)|311|(320)| |Obligations under bank loans (note 21)|(4,666)|1,000|(3,666)| ||10,212|2,206|12,418| 36 Docusign En¥ÈlopÈ ID." 2D262FE(kD83C4A16-A0264ED3C88DF145 Somerset House Trust Notes to the financial statements For the year ended 31 March 2023 Accountin8 policies a) Generol informotion Somerset House Trust is a re8lStered charity {Re8istered Charity No. 10636401 ond is incorporated in England and Wales as a privute company limited by guorantee (Company No. 03388137). The address of its re8lStered office is Somerset House, Strand, London WC2R ILA. The company operates GBP as its reporting and funetionol currency. b) Summory of signrficont occounting policies The principal occounting policies hove been applied consistently in deoling with items which ore considered material in relation to Somerset House's Financial Statements und are asfollows. c) Bosis of preporotion The con501idated financial statements have been prepared in accordance with UK Generally Accepted Accountin8 Principles compri5in8 the Statement of Recommended Practice.. Aeeounting and Reporting by Charities 2019, preparins the accounts in uccordunee with the Financial Reportin8 Standard upplicable in the UK and Republie of Ireland IFRS1021, the Charities Act 2011 and the Companies Aet 2006. Somerset House constitutes a public benefit entity us defined by FRS102. On tronsition to FRS102 in the year ended 31 March 2016 theTrusttook advanta8e of tronsition exemptions to permit the use of deemed cost for assets, und not to revise the accountin8 for lease ineentive5 for leases entered into before 31 March 2014. The Trust assumes that o peppercorn rent will be payable to DCMS in respect ol the leosehold. The consolidated financial statements consolidate Somerset House Trust und its wholly owned subsidiary undertakin8, Somerset House Enterprises Limited on a line-by-line basis. A separate statement of finoncial activities has not been presented for the charity alone in aeeordonce with s408 of the Companies Act 2006. Uniform accounting policies ore used across the group, and intru£roup transactions are eliminated on consolidotion. Profits generated by the subsidiary ore poid to the Trust by means of o gift aid tronsfer, under a Deed of Covenant with theTrust. Going Concern As indicated above, due to income recovering faster than planned coupled and some slippage on estates projeets over year-end, the Trust ended the financiol year to 31 March 2023 with above-turget reserves and stron8 cash balances. This will enable the Trust to endure deficits in 2023124 and 2024125 as we move forward as an organisation. Externolly, we arefocing continuing high inflotion and the threat of recession. Incomefor 2023124 isforecust to be in line with 2022123 ot £21.2m with keyuneertainties beingthe potential impoct of recession on most income streoms: Pace of fillin8 rental voids18% at end of March 2023) 37 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust Notes to the financial statements For the year ended 31 March 2023 - - - - - - - 38 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 Somerset House Trust Notes to the financial statements For the year ended 31 March 2023 - - - - - 39 Docusign En¥ÈlopÈ ID." 2D262FE(kD83C4A16-A0264ED3C88DF145 Somerset House Trust Notes to the financial statements For the year ended 31 March 2023 Restricted reserve5 consist of amounts subject to speerfie restrictions imposed by the donor or arising from contraetuol obligations. j) Stock Stocks ore stoted at the lower of cost ond fair value. Cost is detem)ined on o weighted average bosis. A provision is mude for slow moving, obsolete or defective stockto the extent thatthe cost price is estimated to exeeed thefuirvalue. There is no material dtfference between the value of stock us stated and the replueement eost of this stock. k) Financial instruments Finuneial assets and financial liabilities are recognised when the Trust becomes a party to the contraetuul provisions of the instrument. All financial assets und liabilities are initially meosured at tmn5a¢tion price lineludin8 tran5Cletion costs). The Trust only hosfinancial assets und financial liobilitie5 of a kind that quolify as basic financial instruments. Bosic financial instruments are initially re¢o8nised ot transaction value and subsequently measured at amortised cost. Trade and otherdebtors are reco8nised atthe settlement amount due. Creditors ore recognised wherethere is a present obli8ation resulting from a past event that will probobly result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors ond provisions ore normolly recognised at their settbment omount after allowing for ony trode discounts due. l) Leases il Where the Trust enters into o lease which entails tokin8 substantially all the risks ond rewards of ownership of an asset, the lease is treated os u finance leuse. Any usset purchased with a leuse is recorded in the Bulunee Sheet as u ton8ible fixed asset and depreeiated over its estimated useful lrfe. Future instalments undersuch leases, netof finuneeeharges, ure included in ereditors. Rentals payable ore opportioned behveen the finonce element representing o constont proportion 04 the capitol bulunee outstanding, which is ehar8ed to the SOFA, and the eopital element which reduce5 the outstonding obligotion for future instolments. All other leases ore accounted for os operoting leases and the rentals ore charged to the SOFA on o straight-line basis over the life of the leose. ii) Where income is reeeivable under lease agreements, the basie element is recognised on u strai8ht-line bu5is over the period of the lease, ond any element bused on u per¢enta8e of turnover of the lessee is re¢o8ni5ed in the period to which thotturnover relate5. For leases entered into prior to 31 March 2014, leose incentives are spread over the period to the next break clause. Lease incentives granted on leases entered into from l April 2014 are spread over the lease term. The exception to this is COVID-19 related rent concessions, where the coneessions are recognised in the period they ore intending to compensate. 40 Docusign En¥ÈlopÈ ID." 2D262FE(kD83C4A16-A0264ED3C88DF145 Somerset House Trust Notes to the financial statements For the year ended 31 March 2023 m) Cash and cosh equivolents Cush and eash equivalents includes eash in hond, deposits held at eall with banks, other short term hi8hly liquid investments with original moturities ol three months or less und bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liobilities. In 2020121, the Trust opplied for ond received o loon of £5m, through National Westminster Bonk, under the Coronovirus Business Interruption Loan Scheme ICBILSI. The loan was intended to be repaid by lute 2026, however after the end of the finuneial year, the CBILS loan balance of £3.7m was repaid in full, given adequate foreeast futureeash balances and rising interest rates. n) Critical accounting judgements and key source of estimation uncertainty The preparaFion of the financial statements requires mana8ement to make judgements, estimates ond assumptions that uffect the application of the accounting policies und the reported amounts of assets ond liabilities, revenue and expenses. Actual results moy dwffer from these estimates. Estimates ond underlying ossumptions are continually evoluated ond are based on historicol experience and otherfoctors, ineludingexpectutions of future events thotare reasonable underthe circumstances. Revisions to oeeountin8 estimates ore reco8nised in the period in which the estimates are revised und in any future periods affected. Critieal judgements in applying the entity's aeeountin8 policies: lil Exemptions on transition to FRS102 On tronsition to FRS102 in 2015n6, the Trust has elected to use the previous UK GAAP voluation at 31 March 2009for the DCMS property lease, less umortisation tothe transition date, us the deemed eost. {iil Impairment of debtors The company makes an estimate of the recoveral￿e value of trade and other debtors. When assessing impoirment of trode ond other debtors, manosement considers factors including the current credit rating of the debtor, the a8ein8 profile of debtors and historical experienee. 41 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust ## Notes to the financial statements For the year ended 31 March 2023 ## **2 Donations, grants and legacies** **----- Start of picture text -----**
|||||||| |---|---|---|---|---|---|---| |Unrestricted|Restricted|Total|Unrestricted|Restricted|Total| |funds|funds|2022/23|funds|funds|2021/22| |£'000|£'000|£'000|£'000|£'000|£'000| |Donations|75|293|368|110|-|110| |Grants receivable| |Capital grants receivable|-|-|-|-|204|204| |Revenue grants receivable|-|172|172|-|731|731| |Total donation, grant and legacy income|75|465|540|110|935|1,045| **----- End of picture text -----**
## **3 Expenditure** **----- Start of picture text -----**
|||||||| |---|---|---|---|---|---|---| |Direct|Support|Total|Direct|Support|Total| |costs|costs|2022/23|costs|costs|2021/22| |£'000|£'000|£'000|£'000|£'000|£'000| |Expenditure on raising funds| |Fundraising costs of grants and donations|160|20|180|110|22|132| |160|20|180|110|22|132| |Expenditure on charitable activities| |Property management and conservation|9,240|392|9,632|7,982|209|8,191| |Cultural and public events|6,810|320|7,130|4,177|300|4,477| |Public education and communication|1,579|736|2,315|1,471|481|1,952| |Rental costs|981|280|1,261|913|149|1,062| |18,610|1,728|20,338|14,543|1,139|15,682| |Other trading expenditure| |Concessions and venue hire|1,466|320|1,786|1,341|227|1,568| |Merchandise costs|197|-|197|253|20|273| |Sponsorship and corporate membership costs|54|-|54|46|-|46| |1,717|320|2,037|1,640|247|1,887| |Total expenditure|20,487|2,068|22,555|16,293|1,408|17,701| **----- End of picture text -----**
42 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust ## Notes to the financial statements ## For the year ended 31 March 2023 ## **4 Allocation of support costs** The Trust allocates its support costs as shown below: **----- Start of picture text -----**
Expenditure on Expenditure Other Support costs
raising funds on charitable expenditure
activities
2022/23 2021/22
£'000 £'000 £'000 £'000 £'000
Administration 18 1,340 290 1,648 1,187
Governance (note 5) 2 140 29 171 98
Interest paid (note 6) - 212 - 212 83
Marketing & Communications - 37 - 37 40
20 1,729 319 2,068 1,408
**----- End of picture text -----**
Comparative allocation of support costs: **----- Start of picture text -----**
Expenditure on Expenditure Other Support
raising funds on charitable expenditure costs
activities 2021/22
£'000 £'000 £'000 £'000
Administration 20 939 228 1,187
Governance (note 5) 2 77 19 98
Interest paid (note 6) - 83 - 83
Marketing & Communications - 40 - 40
22 1,139 247 1,408
**----- End of picture text -----**
## **5 Governance costs** **----- Start of picture text -----**
Expenditur Expenditure on Other Support costs
e on raising charitable expenditure
funds activities
2022/23 2021/22
£'000 £'000 £'000 £'000 £'000
Salary 1 48 10 59 31
Audit fees (note 8) 1 101 21 123 47
Legal and other professional fees - 2 - 2 2
General office - 13 3 16 18
2 164 34 200 98
**----- End of picture text -----**
43 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust Notes to the financial statements For the year ended 31 March 2023 ## **6 Interest payable and similar charges** **----- Start of picture text -----**
2022/23 2021/22
£'000 £'000
Interest payable and similar charges 7 6
Finance lease interest 16 29
Bank loan interest 189 48
212 83
7 Tax charge
2022/23 2021/22
£'000 £'000
- -
UK Corporation Tax - current tax charge
- -
Adjustment in respect of previous periods
- -
Tax on loss on ordinary activities
**----- End of picture text -----**
**8 Net expenditure** Net expenditure is stated after charging the following: |**_Auditors Remuneration_**
**This Year**|**2022/23**
2021/22
**£'000**
£'000| |---|---| ||| |- for audit of Somerset House Trust
- for audit of Somerset House Enterprises Limited
**Previous Year - Audit Overrun**
- for audit of Somerset House Trust -
- for audit of Somerset House Enterprises Limited|48
40
20
7
18
-
7
-| ||**93**
47| |**_Depreciation and amortisation:_**
- property lease valuation
- leasehold improvements
- fixtures, fittings and equipment (owned)
- fixtures, fittings and equipment (leased)|**2022/23**
2021/22
**£'000**
£'000| |---|---| ||556
556
2,104
2,110
312
366
17
3| ||**2,989**
3,035| 44 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust ## Notes to the financial statements For the year ended 31 March 2023 ## **9 Employee details (Charity & Group)** Staff costs **----- Start of picture text -----**
|||| |---|---|---| |2022/23|2021/22| |£'000|£'000| |Wages and salaries|4,636|3,526| |Social security costs|515|369| |Other pension costs|417|315| |Temporary staff salaries (including social security and other pension costs)|681|825| |6,249|5,035| **----- End of picture text -----**
## Emoluments over £60,000 **----- Start of picture text -----**
|||| |---|---|---| |2022/23|2021/22| |Number|Number| |£60,001 - £70,000|4|2| |£70,001 - £80,000|3|2| |-|-| |£80,001 - £90,000| |£90,001 - £100,000|-|1| |£100,000 - £110,000|1|-| |-|-| |£110,001 - £120,000| |-|-| |£120,001 - £130,000| |£130,001 - £140,000|-|1| |£140,000- £150,000|1| |£150,001 - £160,000|-|1| |-|-| |£160,001 - £170,000| |£170,001 - £180,000|1|-| **----- End of picture text -----**
## Staff functions The monthly average full time equivalent employees during the year, analysed by function, were: **----- Start of picture text -----**
|||| |---|---|---| |2022/23|2021/22| |Number|Number| |Concessions and venue hire|16|13| |Fundraising|1|1| |Rental|14|9| |Property management and conservation|9|7| |Cultural and public events|16|16| |Public education, communication and visitor services|35|24| |Merchandise|1|1| |Governance and support services|16|12| |108|83| **----- End of picture text -----**
45 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust Notes to the financial statements For the year ended 31 March 2023 ## **11 Tangible fixed assets (Charity & Group)** **----- Start of picture text -----**
Property Leasehold Assets in the Fixtures, Total
lease improvements course of fittings &
valuation construction equipment
£'000 £'000 £'000 £'000 £'000
Cost or deemed cost
At 1 April 2022 64,541 51,799 78 3,794 120,212
Additions - 33 53 954 1,040
- - -
Disposals (33) (33)
Transfers - - (78) 78 -
At 31 March 2023 64,541 51,832 53 4,793 121,219
Accumulated depreciation
-
At 1 April 2022 7,232 34,934 2,813 44,979
Charge for the year 556 2,104 - 329 2,989
Disposals - - - (33) (33)
At 31 March 2023 7,788 37,038 - 3,109 47,935
Net book value
At 31 March 2023 56,753 14,794 53 1,684 73,284
At 31 March 2022 57,309 16,865 78 981 75,233
**----- End of picture text -----**
46 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust ## Notes to the financial statements ## For the year ended 31 March 2023 ## **12 Investments** ## **Trust** |**12 Investments**
**Trust**|| |---|---| |At 1 April and at 31 March|**Charity**
Charity
**2022/23**
2021/22
**£**
£| ||**1**
1| ||| ## **Somerset House Enterprises Limited** **----- Start of picture text -----**
2022/23 2021/22
£'000 £'000
Turnover 5,085 3,370
Costs of sales (1,561) (1,486)
Gross profit 3,524 1,884
Administrative expenses (29) (7)
Profit on ordinary activities before taxation and Deed of Covenant 3,495 1,877
Tax on profit on ordinary activities - -
Profit for the financial year 3,495 1,877
Retained earnings at the beginning of the fnancial year 31 31
-
Qualifying charitable donation to the Trust (3,495) (1,877)
Retained earnings at the end of the financial year 31 31
The aggregate of the assets, liabilities and funds was:
2022/23 2021/22
£'000 £'000
Assets 5,340 2,982
Liabilities (5,309) (2,951)
Funds 31 31
**----- End of picture text -----**
47 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust ## Notes to the financial statements ## For the year ended 31 March 2023 ## **13 Debtors: due within one year** |**Debtors: due within one year**|| |---|---| |Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income
Taxation|**Group**
Group
**Charity**
Charity
**2022/23**
2021/22
**2022/23**
2021/22
**£'000**
£'000
**£'000**
£'000| ||**1,682**
**1,452**
**1,429**
1,225
**-**
**-**
**3,923**
1,899
**289**
**130**
**297**
130
**1,327**
**1,365**
**1,161**
1,340
**-**
**20**
**-**
-| ||**3,298**
2,968
**6,810**
4,594| ## **14 Creditors: amounts falling due within one year** |**14**
**Creditors: amounts falling due within one year**|| |---|---| |Finance leases (note 20)
Bank loans and overdrafts (note 21)
Trade creditors
Amounts owed to group undertakings
Taxation and social security
Tenant Deposits
Other creditors
Accruals
Deferred income|**Group**
Group
**Charity**
Charity
**2022/23**
2021/22
**2022/23**
2021/22
**£'000**
£'000
**£'000**
£'000| ||**320**
310
**320**
310
**1,000**
1,000
**1,000**
1,000
**1,391**
750
**1,217**
674
**-**
-
**-**
**-**
**679**
500
**554**
376
**2,405**
2,219
**2,405**
2,219
**155**
160
**135**
142
**1,008**
937
**880**
719
**3,874**
3,018
**2,975**
2,400
**10,832**
8,893
**9,486**
7,840| ||| |Deferred income brought forward at 1 April
Deferred income now recognised
Income deferred in year
**Deferred income carried forwards at 31 March**|**Group**
Group
**Charity**
Charity
**2022/23**
2021/22
**2022/23**
2021/22
**£'000**
£'000
**£'000**
£'000| ||3,018
2,092
2,400
1,699
(3,018)
(2,092)
(2,400)
(1,699)
3,874
3,018
2,975
2,400| ||**3,874**
3,018
**2,975**
2,400| ||| 48 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust ## Notes to the financial statements For the year ended 31 March 2023 ## **15 Creditors: amounts falling due after more than one year** **----- Start of picture text -----**
|||| |---|---|---| |Charity & Group| |2022/23|2021/22| |£'000|£'000| |Bank loans due after more than one year (note 21)|2,666|3,666| |Finance leases (note 20)|-|321| |2,666|3,987| **----- End of picture text -----**
## **16 Statement of funds** ## **Group Funds Movements** **----- Start of picture text -----**
At 1st Income Expenditure Transfers At 31st March
April 2022 2023
£'000 £'000 £'000 £'000 £'000
Unrestricted funds
General funds 3,280 20,498 (18,583) (1,719) 3,476
Designated fixed asset reserve
Original cost/ valuation 28,735 - (2,538) 1,040 27,237
Revaluation reserve 46,498 - (451) - 46,047
Designated site works reserve 2,000 - (109) 679 2,570
Total unrestricted funds 80,513 20,498 (21,681) - 79,330
Restricted funds
Maintenance and service charge fund 52 202 (218) - 36
Projects fund 307 487 (623) - 171
Capital grants fund 33 - (33) - -
Total restricted funds 392 689 (874) - 207
Total funds 80,905 21,187 (22,555) - 79,537
**----- End of picture text -----**
49 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust ## Notes to the financial statements ## For the year ended 31 March 2023 ## Comparative Group Funds Movements **----- Start of picture text -----**
At 1st Income Expenditure Transfers At 31st March
April 2021 2022
£'000 £'000 £'000 £'000 £'000
Unrestricted funds
General funds 3,037 15,819 (13,349) (2,227) 3,280
Designated fixed asset reserve
Original cost/ valuation 30,727 - (2,584) 592 28,735
Revaluation reserve 46,949 - (451) - 46,498
- - -
Designated site works reserve 2,000 2,000
Total unrestricted funds 80,713 15,819 (16,384) 365 80,513
Restricted funds
Maintenance and service charge fund 99 199 (246) - 52
Projects fund 646 732 (1,071) - 307
Capital grants fund 194 204 - (365) 33
Total restricted funds 939 1,135 (1,317) (365) 392
Total funds 81,652 16,954 (17,701) - 80,905
**----- End of picture text -----**
## **Analysis of Net Assets Between Funds** ||| |---|---| |Fixed assets
Current assets
Current liabilities
Liabilities due after one year
**Group net assets**|Unrestricted
funds
Restricted
funds
**Total**
Unrestricted
funds
Restricted
funds
Total
**2022/23**
2021/22
£'000
£'000
**£'000**
£'000
£'000
£'000| ||73,284
-
**73,284**
75,233
-
75,233
19,440
312
**19,752**
18,160
392
18,552
(10,832)
-
**(10,832)**
(8,893)
-
(8,893)
(2,667)
-
**(2,667)**
(3,987)
-
(3,987)| ||**79,225**
**312**
**79,537**
**80,513**
**392**
80,905| 50 Docusign En¥ÈlopÈ ID." 2D262FE(kD83C4A16-A0264ED3C88DF145 Somerset House Trust Notes to the financial statements For the year ended 31 March 2023 Designated site works reserve We established a new designated 51te works reserve in 2021122 with a £2m transferfrom general fund& This reserve fund5 projects for heritage, sustuinubility und visltor experience improvements. During 2022123, we spent £O.Im on faFade cleaning works to enhance our New Wing conservotion work and £0.4m of capital spend for the installation of new heating controls. Trustees designated a further £l.Im durin8 the year, from generolfunds. The bolanceonthis reseNe ot 31 March 2023 was £2.6m. Restrictedlunds i) A maintenance und service churgelund representin8 funds received from King's Colle8e which can be spent in accordunce with the terms of the lease between the Trust and that tenant. The credit balance on thisfund relates to service char8e income that has not been fully utilised by expenditure ineurred on the estate in connection with the tenancy of King's College, where the Trust isfulfilling its obligations under the leose. The lon8-term objective is for this restrieted fund to eorry a nil balance ond future service chorges will be odjusted occordingly. a Project fund representin8 the unspent bolance of Grants & Donations received for speetfic purposes ot year end. 17 Trustee remuneration and related party tronsactions No remuneration directly or indireetly out of thefunds of the eharity was poid to any Trustee or related porty. There were no expenses incurred by the eharityfor anyTrustees during the yeur12021122- niD. Directors und Offieers Liability insurance was purchased by the charity durin8 the year at a eost of £16.9k12021122- £15.8k). The Trust's tradin8 subsidiary, Somerset House Enterprises Limited, was recharged staff costs of £589l 12021122- £637kl. This being the cost of st(rff incurred by the Trustfor activitie5 undertaken by the company. At 31st Moreh 2023, amounts due to the Trust from the company included an amount of £3.5rn12021122.. £1.9ml u5 0 donation of it5 profits under gift old for the year ended 31 Moreh 2023, under the deed of eovenunt with the Trust signed on15 Moreh 2017. All amount5 owed between the Trust and the eompany are reflected in notes13 und14 of the finaneiul statements. Seven trustees mode contributions to the Trust duringthe yeor, totalling £54k12021122: £54k from nine Trustees . The following related party expenditure transactions are stated inclusive of VAT: Paul Goswell {Directorl is o Member of Council of Kin8's College which rents space at Somerset House. Kin8's College paid Somerset House Trust £1.7m in rent and service charges und £33k relating to a partnership with Somer5et House Studios12021122.. £33K). Somerset Houst Trust paid King's College £19k for utility char8es.12021122.. Kin8's College poid £l.7m for rent und serviee eharge. £llk was paid for utility char8esl. 51 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust ## Notes to the financial statements ## For the year ended 31 March 2023 ## **19 Capital commitments** Capital commitments not provided for as at the year end are as follows: **----- Start of picture text -----**
Charity & Group
2022/23 2021/22
£'000 £'000
Contracted and authorised at 1 April 261 419
Contracted and authorised commitments entered into during the course of the
61 261
year and outstanding at the year end
Utilised during the year (261) (411)
Commitment no longer required - (8)
Contracted and authorised at 31 March 61 261
**----- End of picture text -----**
## **20 Finance leases** Future minimum payments under finance leases are as follows: **----- Start of picture text -----**
2022/23 2021/22
£'000 £'000
Within one year 327 327
In more than one year, but not more than five years - 327
Total gross payments 327 654
Future financing charges (7) (23)
Finance lease liability 320 631
**----- End of picture text -----**
## **21 Bank Loan** Future minimum bank loan payments are as follows: |_Within one year_
_In more than one year, but not more than five years_
_After five years_
Total gross payments
Future financing charges
**Bank loan liability**|**2022/23**
2021/22
**£'000**
£'000| |---|---| ||1,227
1,128
2,944
3,876
-
-| ||4,171
5,004
(504)
(338)| ||**3,667**
4,666| 52 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust ## Notes to the financial statements ## For the year ended 31 March 2023 ## **22 Operating lessor** The Trust has future minimum lease receivables under non-cancellable operating leases and operating leases with break clauses less than or equal to one year, as a lessor, as follows: **----- Start of picture text -----**
2022/23 2021/22
£'000 £'000
Receipts due 22,969 21,541
Within one year 7,631 5,810
In more than one year, but not more than five years 5,931 5,818
After five years 9,407 9,913
**----- End of picture text -----**
53 DocuSign Envelope ID: 2D262FE0-D83C-4A16-A026-8ED3CB8DF145 ## Somerset House Trust Consolidated Statement of Financial Activity (incorporating and income and expenditure account) Notes to the financial statements ## For the year ended 31 March 2022 |||||||||| |---|---|---|---|---|---|---|---|---| |**General**
**Designated**
Notes
**£'000**
**£'000**
**Income and endowments from:**
Donations, grants and legacies
2
110
-
Charitable activities
_Property management and conservation_
2,058
-
_Cultural and public events_
3,459
-
_Public education and communication_
38
-
_Rental income_
6,277
-
Other trading activities
_Concessions and venue hire_
2,653
-
_Merchandise income_
241
-
_Sponsorship and corporate membership_
792
-
Investments
1
-
Other Income
190
-
**Total income**
**15,819**
**-**
**Expenditure on:**
Raising funds
3
132
-
Charitable activities
_Property management and conservation_
5,428
2,415
_Cultural and public events_
3,784
64
_Public education and communication_
1,694
-
_Rental costs_
495
556
Other trading activities
_Concessions and venue hire_
1,497
-
_Merchandise costs_
273
-
_Sponsorship and corporate membership_
46
-
**Total expenditure**
3,4,5,6
**13,349**
**3,035**
**Tax credit on deficit**
7
-
**Net income/ (expenditure)**
8
**2,470**
**(3,035)**
Transfers between funds
16
(2,227)
2,592
**Net movement in funds**
**243**
**(443)**
Fund balances brought forward at 1st April 2021
16
3,037
77,676
**Fund balances carried forward at 31st March 2022**
16
**3,280**
**77,233**
**Unrestricted funds**||||||**Restricted**
**funds**
**Total**
**2021/22**
**£'000**
**£'000**
935
1,045
200
2,258
-
3,459
-
38
-
6,277
-
2,653
-
241
-
792
-
1
-
190
**1,135**
**16,954**
-
132
348
8,191
629
4,477
258
1,952
11
1,062
71
1,568
-
273
-
46
**1,317**
**17,701**
-
-
**(182)**
**(747)**
(365)
-
**(547)**
**(747)**
939
81,652
**392**
**80,905**||| ****** END OF REPORT***** 54