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2021-03-31-accounts

REGISTERED CHARITY NUMBER: 1075877

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

FOR

AGC MUSEUM TRUST

Rothmans LLP Chartered Accountants Avebury House St Peter Street Winchester Hampshire SO23 8BN

AGC MUSEUM TRUST

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Page
Report of the Trustees 1 to 11
Independent Examiner's Report 12
Statement of Financial Activities 13
Balance Sheet 14
Notes to the Financial Statements 15 to 23
Detailed Statement of Financial Activities 24 to 25

AGC MUSEUM TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The trustees present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

STRUCTURE, GOVERNMENT AND MANAGEMENT

  1. The Adjutant General’s Corps (AGC) Museum opened in 2003 to collect, preserve, and display the history of the AGC and its antecedent corps, the Royal Army Pay Corps, Royal Military Police, Military Provost Staff Corps, Royal Army Educational Corps, Army Legal Services and the Woman’s Royal Army Corps and their rich histories. Subsequently:

  2. a. In 1997, the Military Provost Guard Service (MPGS) was formed and some of their history is now displayed as part of the AGC Museum collection.

  3. b. In 2011, the Gurkha Staff and Personnel Support (GSPS) was formed which allowed Gurkha administrators to assimilate with their AGC counterparts without losing their essential link to the Brigade of Gurkhas. Some of their history will also be displayed in the museum.

  4. The Museum is managed by a Board of Trustees in accordance with the Museum Trust Deed dated 21 April 1999. The Board of Trustees comprises of not less than 6 members but no more than 12 members. It has:

  5. a. Three Ex-Officio members who are members because of their vital and influencing appointments with the AGC Corps HQ.

  6. b. Representation from across the Branches of the AGC and its antecedent Corps.

  7. The Board of Trustees meet twice yearly for ordinary meetings but has provision that allows 2 Trustees to call a special meeting at any time giving at least 14 days’ notice of the date and the agenda. Formal records of all Board Meetings are maintained and distributed to all trustees, the Museum Curator and the AGC Finance Manager (as the manager of our bank account(s)). The Board comprises the following key appointments:

  8. a. Ex Officio Members. The Corps Colonel AGC, the Corps Secretary AGC and Corps Sergeant Major AGC are ex-officio members. These 3 appointments have an important role in representing the Museum within the Army, the AGC and the general public but also keeping Trustees informed of changes in policy that affect military museums and encouraging the AGC preservation of its unique heritage.

  9. b. Chair of Trustees. Although the Chair has always been the Corps Colonel AGC, the Trust Deed requires the Trustees at their first meeting each calendar year to elect any one of the Trustees to be the Chair for that year. This provision is there to protect the museum’s interests and prevent any conflicts of interest between the AGC, it’s Regimental Association and the museum. The provision allows Trustees to ensure the Chair of Trustees cannot force through an agenda that may suit the AGC Association but the museum trustees feel is not in the museum’s best interest. The Chair of Trustees has been granted delegated powers from the Board of Trustees which allow the flexibility to deal with issues that would otherwise require referral to the Board of Trustees. These powers are contained in an annual letter of delegation from the Board of Trustees.

  10. c. Trustees. The Museum collection, at the outset comprised of the histories of the antecedent Corps and representatives of those Corps were appointed to be Trustees, from a balanced mixture of those still serving in the AGC and veterans of the antecedent Corps. It is now 29 years since the formation of the AGC and some of the serving Trustees have had their entire service in the AGC. These Trustees encourage their respective Branches to add AGC historical items to the museum collection.

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AGC MUSEUM TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

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Trustee Appointment/Representing Date Appointed
Col S Holmes ADC Chair From 26 May 2020
Col F Castle ADC Chair To 26 May 2020
Col (Retd) AJ Ward Hon Treasurer & RAPC 7 July 2011
Lt Col (Retd) MJR Cotton MBE Museum Director/Secretary 28 April 2012
Col (Retd) AK Brown OBE WRAC 5 December 2014
Col JL Burgon AGC (ETS) To 1 October 2020
Col N Carrell AGC (SPS) To 1 October 2020
Col BA Gray AGC (ALS) 28 February 2019
Col M Ketterer AGC (ETS) From 1 October 2020
Col (Retd) AN King RAEC 28 February 2019
Col S Vardy AGC (SPS) From 1 October 2020
WO1 (Corps SM) C Morrison AGC(SPS) Corps Sgt Maj To 16 September 2020
WO1 (Corps SM) A Heron AGC(RMP) Corps Sgt Maj From 16 September 2020
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AGC MUSEUM TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Also, in attendance at Board of Trustee Meetings are:

Museums Advisor Mr D Smurthwaite Curator Miss B E Taubert

  1. Committees. The Trust Deed allows the Board of Trustees to form committees responsible for specific areas of the museums administration. Such committees act in accordance with direction from the Board of Trustees contained in detailed Terms of Reference. Any committee formed is ultimately accountable to the Board of Trustees but the Chair of Trustees is responsible for oversight of these committees.

  2. Delegated Responsibilities. At more than one Board Meeting, 2 of the more experienced Trustees raised their concerns over the effectiveness of the Board, how the finances of the Museum were administered, financial performance reporting and the policy framework that supported the members of Museum staff by giving them clear direction from the Board of Trustees. This failure to satisfactorily remedy these concerns led to one of the Trustees volunteering to form a Finance Committee that would oversee all financial activities. The Board of Trustees welcomed this initiative and approved not only the formation of the Finance Committee but also the appointment of their first Honorary Treasurer.

  3. The Finance Committee. The Finance Committee was duly established and held its first meeting on 14 January 2021. The Terms of Reference for the Finance Committee were to establish and monitor internal financial controls to assist the Trustees to:

  4. a. Meet their legal duties to safeguard the charities assets.

  5. b. Administer the charities finances and assets in a manner that identifies and manages risks.

  6. c. Ensure the quality and integrity of financial reporting.

  7. Composition of the Finance Committee. The Honorary Treasurer sought support from the Trustees, within the Corps HQ, the staff of the Museum and where necessary and approved by the Board of Trustees external professional advice. The Finance Committee meets quarterly and has 4 members standing members:

Honorary Treasurer and Chair of the Finance Committee Col (Ret’d) A J Ward Vice Chair of the Finance Committee Col (Ret’d) A K Brown OBE Museum Director Lt Col (Ret’d) M J R Cotton MBE Museum Curator Miss B E Taubert

  1. Financial and Administrative Support. The Finance Committee depends heavily on the support of the AGC Corps HQ; from the vital support of the AGC Finance Manager who provides all of the financial information from the SAGE accounting package through to the administrative staff who arrange conference facilities and access to Worthy Down for those without entry passes, file all museum documentation and print off all of the documentation for meetings.

TRUST OBJECTS

  1. The Objects of the Museum are to educate the public and members of the Corps in the history and military accomplishments of the Corps and to promote military efficiency and encourage recruitment by public exhibition of the collection in a museum or museums or other such places as the Trustees may from time to time decide, and to conserve, restore, repair, re-construct and preserve the objects of the collection.

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AGC MUSEUM TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

PURPOSES OF THE CHARITY

  1. The purpose of the AGC Museum is to educate the public and members of the corps in the history and military accomplishments of the corps and its antecedents. The museum will collect, document, preserve, display, undertake research and provide access to material relating to both the corps and its antecedents. The work undertaken will be to the standards required to maintain 'Accredited Museum' status with Arts Council (England).

  2. In addition, material displayed in the museum will be of benefit to the general public, military veterans and serving personnel. The content of the displays will provide a stimulating experience for all, in order to show the role of the Army in the development of this nation; promote the military ethos; assist in recruiting and project a positive image of the British Army. The Trustees have paid due regard to the Charity Commission’s guidance on public benefit in deciding what activities the charity should undertake.

REVIEW OF ACTIVITIES, DEVELOPMENTS AND ACHIEVMENTS

  1. In the 2020-2021 financial year, the museum was adversely affected by the COVID-19 pandemic and the subsequent lockdowns and restrictions on group sizes and the number of visitors allowed in the building. These restrictions seriously impacted the ability to operate as normal. The AGC Museum was closed for a majority of the financial year, only opening from mid-July until mid-October, and for two weeks in early December. This was as a result of national lockdowns, a member of café staff contracting COVID causing a closure of the Museum, and for the normal closure period over the Christmas holidays. In total, the Museum was only open for seventeen weeks between April 2020 and March 2021.

  2. In order to protect staff and follow guidance, the Museum re-opened with shorter opening hours, limits on group visits, and limits on the number of visitors allowed in at any one time. Staffing was reduced, and an hourly cleaning schedule was introduced along with the provision of PPE. Staff also complete weekly lateral flow tests before their scheduled work-days. Governance of the Museum continued, with virtual Trustees and Finance Committee meetings taking place, and in person when restrictions permitted.

  3. The Museum had 3,235 visitors, a major fall on previous year numbers. The reduction was due mainly to lockdown closures and government restrictions; there was also a reluctance of the population to visit indoor attractions in the early spring. The demographic of museum visitors is mainly comprised of families over school holidays and on weekends, and during the week are former serving or those who have an interest in military history.

  4. The Education and Volunteers programmes were suspended in March 2019, due to the inability to host school visits within government guidelines and to safely have volunteers working alongside staff. An online Arts Award programme was offered as part of the Arts Council England funded “Reaching Out!” programme. On-site education visits and the re-launching of the volunteer programme, dependent on government guidance, are set to relaunch in the latter half of the next financial year.

  5. Once reopened, the Museum created a temporary exhibition to celebrate both VE and VJ Day 75th anniversaries. These anniversaries were celebrated jointly to show the global postings of the antecedent corps of the AGC but also because the VE Day 75[th] anniversary occurred during the period of lockdown.

  6. Educational and Training Services officers in Phase 2 training attended the Museum in July 2020, receiving a lecture on the history of Army Education and a chance to see the Museum. The curator completed an online lecture during the lockdown in January, with the intention for all new Phase 2 training programmes to include a lecture and tour of the Museum in future, or an online talk if this was not possible. Several unit visits were arranged, but had to be postponed due to restrictions.

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AGC MUSEUM TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

  1. In January 2021 the Museums website was lost because of contractual issues with the then supplier. It was a devastating loss during a lockdown, however the Museum relied on the Facebook, Twitter, and Instagram pages to continue to reach audiences during lockdown. Facebook reach exceeded 3,000 during the lockdown periods and continues to be the best way to connect to audiences who cannot physically visit the Museum outside of the website. A replacement website was created and operational shortly after the end of the financial year.

  2. The audit of the collections was paused during certain lockdown periods due to staff inability to visit the site because of site specific restrictions. However, work on the backlog, medals collection, and archive were continued by staff at home during the lockdown periods. No staff were furloughed as a result. Staff visited the Museum regularly to access the medals collection, archival material, and to check on the fabric of the building. In the latter part of the financial year the audit of the collections was restarted.

  3. The Museum suspended accepting donations during periods of closure, however several objects were acquired in the interim. These include a manual calculator used at Worthy Down in the 1970s and photographs and orders regarding the Guard of Honour for H.M. the Queen’s visit to Reading in 1957. The Museum purchased a photograph of the Garrison School, South Africa during the Anglo-Boer War. Items were offered during this time and will be accepted into the collection once the Museum has reopened.

  4. The AGC Museum continues to work with other organisations, even during periods of closure, including Winchester’s Military Museums and the National Army Museum.

  5. Winchester’s Military Museums continued to hold regular online meetings during lockdowns to keep everyone on site aware of the ongoing work. Efforts were made to co-ordinate re-opening dates and decisions were made to suspend on-site education and marketing due to COVID restrictions. Online work was continued on the “Reaching Out!” programme, and planning was completed for when on-site education could continue.

  6. The Museum continues to work with the RMP Museum, with which it shares storage. Research has been carried out regarding members of the ATS Provost during the Second World War, and information has been shared between Museums.

  7. The curator attended an online Careers Day at Winchester University to discuss working in the heritage sector. This is the second such attendance, with the request for the curator to return again next year.

  8. The National Army Museum continues to provide free online training even during periods of closure. There was also an online Corps and Regimental Museum Day which included lectures and discussions on the sector and the impact and work done by military museums.

  9. An online temporary exhibition on the census was completed by Hampshire Record Office, with support from the Museum. The exhibition featured the IBM 705 computer once housed at Worthy Down, now on loan from the Museum to the IBM Museum in Hursley. This computer was the first ever to perform the census in 1961.

  10. During lockdown the curator was able to complete all plans and policies related to Accreditation, which have been approved by the Trustees. As the lockdown has impacted Accreditation programme, the Museum is waiting for confirmation of the return due date.

  11. This past financial year has been a busy one for research enquiries. Across the 2020-2021 financial year, the museum received 47 research enquiries. Many of these took longer to be completed than usual, due to the museum’s closure and limited access to archival material, following the national restrictions. However, of these 47 enquiries, 42 have successfully been completed and information has been passed on to the initiators. The remaining five outstanding enquiries are awaiting confirmation from the enquirer regarding their consent to paying fees for additional research to be carried out.

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AGC MUSEUM TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

  1. The research across this financial year has covered a range of topics from the Intake List of National Servicemen in the RAPC through to the rank of an SPS Officer receiving a commendation. The museum has received an increasing interest in the careers of RAPC officers and other ranks from the Second World War which can be difficult to complete due to the limited number of records accessible to the public for this period. Other requests include information surrounding the history of Army Education from several members of the ETS; the dress regulations and meeting minutes for the MPSC; the 1942 evacuation of the Singapore Pay Office; the service history of several members of the ATS.

  2. In addition to these requests, the museum has also been contacted by and supported several academic and popular history researchers. In an exchange for copies of their completed research, the museum has supported projects focusing on the quantitative rate of army pay from the Hundred Years’ War (c.1340s) through the First World War; a history of the Queen’s Army Schoolmistresses; the members of the RAPC who served in the Korean War; British Forces in Germany; and information regarding the Queen’s driving licence to be included in Soldier Magazine.

FINANCIAL REVIEW

  1. At their second meeting in 2020, the Trustees took the decision to appoint one of their members to be the Honorary Treasurer and to have a committee responsible for the finances of the museum. This was a major step change for the museum trustees and clearly demonstrated their commitment to ensuring the museum finances are properly administered.

  2. Compendium Of Financial Policies. The Finance Committee have, with the approval of the Board of Trustees, set out a schedule of work to create a compendium of 14 financial policies that govern the activities of everyone involved in the financial administration of the Museum. COVID restrictions and lockdown allowed the Finance Committee time to make an excellent start to this work from home and almost half the policies are in draft. Consultation with the staff has been challenging under COVID restrictions but is a vital constituent of the development of the policies. Once approved by the Board of Trustees the policies will be implemented. At that stage, ownership of the policies passes from the Finance Committee to the Board of Trustees, specifically the Museum Director. The Compendium of approved policies will be reviewed and updated as an Agenda item at the first Board meeting in each calendar year.

  3. Governing Document. The Trust Deed dated 21 April 1999 has been reviewed by solicitors and they have identified a number of areas that need to be updated. The original Deed was written using the Army Museums Ogilby Trust (AMOT) template that was used by most Army museums; it has stood the test of time and any amendments should be discussed with AMOT to see if they have an updated template or are content for the museum to develop its own governing document with the assistance of professional legal advice. There will be no change to the Objects of the museum and all other changes are administrative but, for completeness, the new Deed will be forwarded to the Charity Commission for information and inclusion on the website.

  4. Letters of Delegation. The Finance Committee have, with the approval of the Board of Trustees, drafted detailed letters of delegation, for the next financial year, to all those with authority to approve payments. These have been intentionally prescriptive and will be monitored by the Honorary Treasurer. Only the Board of Trustees will have the authority to amend them.

  5. Budget Screening. The Finance Committee have established processes to monitor the in-year performance against the approved budget and to screen future budget submissions. The committee is also developing a 5-year financial plan which, for the very first time, includes a full equipment replacement budget. The Chair of Trustees has agreed that, in future years, the 5-year financial plan will be briefed to the AGC Association Trustees at their Autumn meeting in order to get their agreement on the following years budget much earlier than previously and to give them an indication of the future costs of conserving and displaying the AGC heritage.

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AGC MUSEUM TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

  1. Internal Audit. The Honorary Treasurer has commenced a program of internal audit and will report any findings to the Chair of Trustees and, where appropriate, to the Board of Trustees. The Honorary Treasurer has identified a number of areas for review in the next financial year and these have been agreed by the Board of Trustees.

  2. Risk Register. The Finance Committee have introduced a finance specific Risk Register which will continue to be developed over the next financial year. The Vice Chair of the Finance Committee has concurrently developed a high-level Risk Register for the Board of Trustees to review as an agenda item at each meeting of the Board of Trustees.

  3. Cash Flow. The Honorary Treasurer will, in the next financial year, meet with the bankers to see if better arrangements can be made to manage the cash flow in order to achieve a better financial outcome for the museum’s limited funds. Although interest rates are currently depressed, it is not an acceptable reason for not investing any funds not immediately required.

INCOME AND EXPENDITURE

  1. Income. The total income as at 31 March 2021 was £85.14K. The majority of this came from 2 sources of income – a quarterly grant in aide from the MOD toward staff costs of £64.68K and a grant from the AGC Regimental Association toward operating costs of £18K. It also has a number of smaller income streams from interest on investments, donations, research fees, shop sales and the recovery of VAT.

  2. The Museum has a policy for fundraising activities, including hiring space in the museum for meetings, but has not fundraised in this year due in main to COVID restrictions. The museum has not received any legacies from former members of the AGC or their families in this financial year.

  3. Expenditure. The total expenditure as at 31 March 2021 was £74.17K. The bulk of this expenditure from the museum was for staff costs of £63.92K, pension payments of £2.02K, insurance of the museum and collection of £1.66K, IT support of £1.55K and accountancy & legal costs of £1.1K. All of the other expenditure did not exceed £1K and has therefore not been detailed here. It can be seen in the Statement of Financial Activities at the rear of this submission.

  4. Excess of Income. The Museum ended the year with an excess of income before gains of £10.96K.

  5. Historical Review of Financial Performance. The Museum finances since 2016 are shown in table 1:

----- Start of picture text -----
Income /
Expenditure 31 Mar 16 31 Mar 17 31 Mar 18 31 Mar 19 31 Mar 20
Total
£47.22k £50K £75.29K £63.63K £84.77K
Income
Total
£71.19K £54K £68.74K £75.44K £79.71
Expenditure
Excess of
Income over N/A N/A £6.55K N/A £5.06K
Expenditure
Excess of
Expenditure £23.97K £4K N/A £11.81K N/A
over Income
----- End of picture text -----

Table 1 – Income and Expenditure since 2016

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AGC MUSEUM TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

  1. Excess of Expenditure. Analysis of this table and the 31 March 2021 results show the Trustees plans have allowed the museum to, over the last 6 years, expend considerably more than the income generated. The Board of Trustees have acknowledged this and have commissioned a review of their long-term financial strategy in the next financial year. The Honorary Treasurer will scrutinise all expenditure to identify areas to reduce costs, to ensure the annual expenditure stays within the approved budget and to report any financial irregularities.

INVESTMENT POLICY AND PERFORMANCE

  1. Investment Management. As at 31 March 2021, the museum has in total £75,379.64 invested, as part of the AGC portfolio of investments, in the Blackrock Armed Forces Common Investment Fund there is £69,639.25 and in the COIF Charity Funds £5,740.39.

  2. Investment Objectives. In 2011 the Trustees wanted to establish a reserve that provided quarterly income to the museum. This year there have been complications with the supporting paperwork provided by the AGC Corps HQ to Blackrock and whilst that is being sorted out, Blackrock have withheld the interest. The interest withheld as at 31 March 2021 is £1775.13. The Trustees discussed this at their Autumn meeting and were given assurances, by the Chair of Trustees and Museum Director, that this issue would be swiftly remedied.

  3. Future Investment Strategy. At the same meeting the Trustees took the view that it would remain with the previous investment policy for now as it was unclear as to how much the museum would need to contribute to the redevelopment project or how much they would need to hold in reserve to meet their legal requirements to the staff and the museum collection should one of the major funding streams be reduced or stopped or for an employment issue such as leave of absence of a member of staff. The Trustees plan to hold a series of sessions to develop a clearer understanding of their future financial strategy, reserves and investment policy during 2021 and 2022.

  4. Investment Returns. This year’s investment return was a gain of £12,441. The Trustees sought the opinion of the AGC’s independent financial advisor on the overall performance and his report concluded by stating “the holding remains sound and the Museum trustees should be very pleased with its performance of increased distributions along with excellent fund price performance during a most testing period for charity investments”. This positive endorsement was welcomed by the Trustees and supported their decision to remain with Blackrock for now.

RISK MANAGEMENT

  1. The Trustees now have risk as a standing item on all Trustee meetings. The Museum now have a strategic risk register (which is reviewed by the Board of Trustees) and the financial risk register (which is reviewed at Finance Committee Meetings).

  2. Each risk is assigned to an owner who is responsible for the maintenance of that risk, the mitigation and assessing the probability and potential impact. The Trustees consider each of the strategic risks and give their views on the effectiveness of the mitigation, the probability of the risk occurring and the potential impact. Any changes to the Risk Register will be done by the Museum Director, as Secretary of The Board of Trustees, and circulated to all Trustees.

RESERVES STRATEGY

  1. Reserves Policy. A reserves policy was established by the Trustees in 2011 because the museum was embarking on a significant change – the museum staff would no longer be replaced by MOD civil servants but instead the MOD would provide a quarterly grant in aide to assist the museum in financing the employment of their own staff. The Trustees discussed the possible impact of this and decided to place £50K in reserve to cover any unforeseen cost of being an employer.

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AGC MUSEUM TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

  1. Review of Reserves. The Trustees discussed this at their second meeting in financial year 2020/2021 and decided that whilst they were committed to the future of the museum, they believed that until the Museum redevelopment project had been completed, the existing reserves policy must not be compromised by overcommitment of funds. As at 31 March 2021 the charity held reserves of £205,330.

PLANS FOR THE FUTURE

  1. There are a number of developments planned over the next 5 years but none greater than the museum redevelopment project. This ambitious plan to update the museum and redesign the collection display has been estimated to cost no more than £250K. The AGC Regimental Association has generously agreed, in principle, to investing in their museum by funding up to that amount. The Trustees are rightly cautious over this estimate and until such time as they have a contract for the work in place, they feel it prudent to hold back on any other major investments or changes to their reserves policy.

  2. The second big issue is securing a lease for the building and café from the Defence Infrastructure Organisation (DIO); this issue has been on the agenda since the museum was established but there are early signs that another museum within the Peninsular Barracks is making progress with negotiations with lawyers representing DIO. The Curator will continue to monitor the situation and the Chair of Trustees will continue to apply pressure to DIO and Army Heritage Branch.

  3. The third big issue is the rewrite of the Museum Trust deed in conjunction with AMOT and, if necessary, employing professional advisors in the relevant parts of the Charities, Trustees and Employment legislation. There is no reason, or intent, to change the charitable objects and therefore the rewrite can be defined as administrative changes to the document. Given this the Trustees will invite the Charity Commission to note, rather than approve, the changes.

  4. The establishment of an Honorary Treasurer and Finance Committee will redefine how the finances of the museum are managed. These changes are long overdue and necessary; the Board of Trustees have given their full support to this initiative and open dialogue with staff and trustees will continue. However, once the financial policies are issued ownership of them is transferred from the Finance Committee to the Board of Trustees specifically the Museum Director. The Honorary Treasurer will then switch to monitoring not only compliance with the policies but also their effectiveness.

  5. It is hoped that the implementation of financial policies and appointment of a Finance Committee will create the opportunity for a shift in the role of Trustees within the AGC Museum Trust. Whilst the Finance Committee will deal with a lot of the routine financial information, the Trustees may also decide to delegate other roles amongst other Trustees such as the Project Management of the Redevelopment Project, the Development of the vision for the future of the Museum and any specific projects relating to the heritage of that Trustees Branch of the AGC. The aim will be to get the Trustees to engage far more strategically directing the activities of the museum in the short and longer term and far less about being briefed on what the museum has done in the last 6 months. Opportunities for Trustee training will be promoted as necessary rather than nice to have and the Chair is to review the Trustee Induction Pack and re-issue it to all existing Trustees as well as any new authorised Trustees.

  6. The Board of Trustees have endorsed the need for change and have accepted changes such as the introduction of new conflict of interest reporting and annual declarations of suitability to be a Trustee. The aim must be for them to fully understand not only the rationale behind each policy but also the detail contained in it. This will establish a positive tone from the top; everyone involved in the Museum will know that the Trustees are firmly behind the policies but also not closed to further dialogue and potentially consideration of alternative approaches.

  7. Finally, the Trustees hope to have set the conditions that make the museum a rewarding place to work. Staff achievements will be recognised and rewarded and there should be a supportive infrastructure that staff fully understand is there for them should they have any concerns. Those acting on behalf of the Museum are expected to raise issues without fear of reprisals. The Chair of Trustees will appoint 2 Trustees (other than one of the 3 Ex-Officio Trustees) to be the independent points of contact for whistle blowing of significant issues or of concern to a member of staff. This will allow staff an alternative point of contact if the issue relates to the actions of the other nominated Trustee.

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AGC MUSEUM TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

REFERENCE AND ADMINISTRATIVE DETAILS

Name

Adjutant General’s Corps Museum Trust

Charity Number 1075877

Principal Address

Corps Headquarters AGC Ground Floor Building 204 Worthy Down Winchester Hampshire SO21 2RG

Bankers

Royal Bank of Scotland Lawrie House Victoria House Farnborough Hampshire GU17 7NR

Independent Examiner

Rothmans LLP Chartered Accountants Avebury House St Peter Street Winchester Hampshire SO23 8BN

Solicitors

Mr Richard Robson Warner & Richardson 29 Jewry Street Winchester Hampshire SO23 8RR

Investment Manager details

Blackrock UK Charities and Endowments Drapers Gardens 12 Throgmorton Ave London EC2N 2DL

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AGC MUSEUIA TRUST REPORT OF ThE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021 STATEMEMT OF TRUSTEE RESPONSIBIUTIES The charity Trustees are ￿SPOnSIble for preparing the Trustees, Re￿ and finanual ststements in accordance wth applubk law and the United knngdon AccountirvJ Standards {United lQngdom Generally Accepted Accounb"ng Practicel. The law applicable to ¢harilies in England and Wales requires the Trustees to prepare financial statements for each f nancial year that give a true and fair view of the state of affairs of the charity and of the incoming resources and application of the resources of the cfjarrty for that period. In preparing these financial statements, the Trustees are required lo: Select suitable accounting policies and then apply them consisterfy.. Observe the methods and prinoples in the Charities SORP". Make judgements and estimales that are reasonable an(1 pnjdent.. Stste whether applicable accounting stsndards have been folkh¥ed, subject to any matsrial departures dis¢lose(l and exptained in the financial ststements.. Prepafe the finanual statemen15 on the going con¢em ba￿S Un￿$$ it is inappropriate to presume that the charty will continue in business. The Truytees are rèsponsible for keeping suffiaent accounting records that disdose wtth reasonable accuracy at any time the financial posibon ofthe charity and enable them to ensure that the.financial ststements comply with the Charitie5 Act 2011. the Charity (accounts an<J Rep)rtsl Regulations 2008 and the prowsions of the Trust Deed. They a￿ responsibk for safeguarding the assets of the chanty and hence for tsking reasonable steps fLY the preventton and detection of fraud and other irregulartti"es. The Trustees are responsible for the maintenance and integrity ofthe charity and finanrjal information indLKled in the charity's website in accordance wth legI￿allOn in the Unrted Kingdom goveming the preparation and disseminaliort of financial statemerts. proved by the Trustees on.. Signed on behalf of the Board Oate ?o?I Lt Col IRet'dl MJR Cott¢)n MBE Trustee & Museum Director Page11

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF AGC MUSEUM TRUST

Independent examiner's report to the trustees of AGC Museum Trust

I report to the charity trustees on my examination of the accounts of AGC Museum Trust (the Trust) for the year ended 31 March 2021.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

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

Independent examiner's statement

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

  1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.

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

Susan Sullivan FCA ICAEW Rothmans LLP Chartered Accountants Avebury House St Peter Street Winchester Hampshire SO23 8BN

22 December 202123 December 2021 Date: .............................................

Page 12

AGC MUSEUM TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

2021 2020
Unrestricted Unrestricted
& total funds & total funds
Notes £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 2 82,748 81,894
Charitable activities 4
Museum Activities - 509
Investment income 3 2,391 2,368
Total 85,139 84,771
EXPENDITURE ON
Charitable activities 5
Museum Activities 74,176 79,705
Net gains/(losses) on investments 12,441 (5,310)
NET INCOME/(EXPENDITURE) 23,404 (244)
RECONCILIATION OF FUNDS
Total funds brought forward 181,926 182,170
TOTAL FUNDS CARRIED FORWARD 205,330 181,926

The notes form part of these financial statements

Page 13

AGC MUSEUM TRUST BALANCE SHEET 31 MARCH 2021 2021 2020 Unrestricted UnreslTiCted & total funds & total funds Notes FIXED ASSETS Tangible assets Heritsge assets Investments 4,192 80.244 69.639 5,069 80,244 57,198 10 154,075 142,511 CURRENT ASSETS Stocks Debl¢r$ Cash at bank and in hand 12 13 14 1.094 2.835 49.829 1,381 1,238 53,558 42,719 CREDITORS Amounts falling due within on? year {2,3031 13,3041 NET CURRENT ASSETS 51,255 39,415 TOTAL ASSETS LESS CURRENT LIABILITIES 205,330 181.926 NET ASSETS 205,330 181.928 FUNDS Unrestricted funds.. General fund 205,330 181,926 TOTAL FUNDS 205,330 181,926 The financSal 8tat•m*nl$ wer? approved by the Board of Tru•le•s and 8Uthorf8•d for 1•8u• on ?Di i . and were signed on its behalf by.. Ll Col IRel'dl MJR Cotton M8E - Trustee The notes fom part of these financial statements Page 14

AGC MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

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

The financial statements are prepared in sterling which is the functional and presentational currency of the Charity. The financial statements are rounded to the nearest pound.

The Trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

The most significant estimates affecting these accounts are the estimations of the useful lives of the fixed assets and heritage assets. There are no significant judgements which affect the amounts recognised in the financial statements.

With respect to the next reporting period, the most significant areas of uncertainty that affect the carrying value of assets held by the Charity are the level of investment return and the performance of investments.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Grants from other agencies, donations and other income from activities are in furtherance of the charity's objects and are part of the general funds of the charity. A restricted fund is recognised where this is an agreed and explicit condition of the grant or donor.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Governance costs

Governance costs are the costs of professional advice, holding trustee meetings or committee meetings associated with decision making, any fee for audit or independent examination and any fee incurred in the preparation, statutory filing, printing or copying of the annual report and accounts.

Page 15

continued...

AGC MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES - continued

Allocation and apportionment of costs

Support costs include administrative and governance costs and are allocated to the activities the Charity undertakes in proportion to the level of resources utilised by each activity. During the current and previous years all expenditure incurred by the Charity has related to the single activity of the governance of the AGC Museum.

Tangible fixed assets

All assets having a purchase value of more than £500 are capitalised. The cost of tangible fixed assets are written off by equal annual instalments over their expected useful lives using the following methods of depreciation:

Furniture, fixtures and equipment - Straight Line over a period of 2 - 10 years

Assets with a life of more than one year but with a purchase value of below £500 are included within the inventory but the cost is written off in the year it is incurred and is not depreciated over the useful life of the asset.

Heritage assets

In the course of the unit's history, the charity has acquired gifts, memorabilia, regalia, silverware, antiques and other historical artefacts in the course of distinguished military service in service of the Crown. The value of these pieces is in large part derived from their close association with Regimental history which precludes the use of conventional valuation techniques being applied. Whilst the objects of the charity do not specifically include preservation and conservation, the pieces represent an essential element of celebrating the unit's history and foster esprit-de-corps. Consequently the managing Trustee considers the charity to hold heritage assets as an element of national history on behalf of the nation.

Heritage assets are initially measured at cost. Assets which are donated to the charity are measured at valuation wherever this can be reliably estimated. The initial valuation of donated assets is subsequently treated as the deemed cost of the asset therefore these accounts present all assets at cost less depreciation. Assets are depreciated over their useful economic lives, however in the Trustees' opinion, all of the assets currently held by the Trust have infinite lives and are therefore not depreciated.

The Trust's heritage assets are managed by the Trustees of the AGC Museum Trust and are displayed for public viewing at the AGC Museum in Winchester. The Museum Curator maintains a register of all assets which have been acquired by the Trust, including the source of each asset, the date of acquisition, a brief description of the asset and its acquisition cost or value.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Funds held by the Charity are deemed to be:

General Purpose / Unrestricted funds. These are the funds that can be used in accordance with the charitable objectives at the discretion of the Managing Trustee.

The Charity does not currently have any Restricted or Endowment funds.

Page 16

continued...

AGC MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Donated goods, services and facilities

Donated goods, services and facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

On receipt, donated goods are recognised at their fair value. Goods donated for on-going use by the charity are recognised as tangible fixed assets, with the corresponding gain recognised as income from donations.

Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet. The charity's investments are held in unit trusts and the fair value for these investments is equivalent to the market value, using the bid price.

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

2. DONATIONS AND LEGACIES

Donations
Grants		 2021
£
67
82,681
82,748		 2020
£
569
81,325
81,894

The Charity is provided with Museum facilities within the Peninsular Barracks and administrative support from Army personnel within the Worthy Down Army Camp at no cost. No income is included in these financial statements for these donated facilities as it is not possible to reliably measure the value of these gifts.

Grants received, included in the above, are as follows:

Army Museums Ogilby Trust
AGC Regimental Association		 2021
£
64,681
18,000
82,681		 2020
£
61,825
19,500
81,325

Page 17

continued...

AGC MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

3. INVESTMENT INCOME

Dividends Received
Deposit account interest
4.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Shop income
Museum Activities
5.
CHARITABLE ACTIVITIES COSTS
Museum Activities
6.
SUPPORT COSTS
Museum Activities		 2021
£
2,367
24
2,391
2021
£
-
Support
Direct
costs (see
Costs
note 6)
£
£
67,219
6,957		 2020
£
2,336
32
2,368
2020
£
509
Totals
£
74,176
Totals
£
6,957
Governance
Other
costs
£
£
5,247
1,710

Accountancy and legal fees relate solely to the fees due to the Independent Examiner, Rothmans LLP, for the preparation and examination of these accounts.

Support costs, included in the above, are as follows:

Support costs, included in the above, are as follows:
2021 2020
Museum Museum
Activities Activities
£ £
Office & admin costs 13 517
Insurance 1,664 2,041
Repairs and renewals 528 1,213
Telephone & internet 1,567 819
Postage and stationery 206 145
Sundries 270 420
Security 87 383
Travel & Subsistence 35 563
Depreciation of tangible fixed assets 877 1,505
Bookkeeping 585 555
Accountancy and legal fees 1,125 1,125
6,957 9,286

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continued...

AGC MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

7. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.

8. STAFF COSTS

Wages and salaries
Other pension costs
The average monthly number of employees during the year was as follows:
Museum Staff		 2021
£
63,921
2,020
65,941

2021
4		 2020
£
63,946
2,013
65,959
2020
4

No employees received emoluments in excess of £60,000.

The charity considers the Board of Trustees to be its key management personnel. No Trustee received any remuneration for services to the Charity in the current or previous year.

9. TANGIBLE FIXED ASSETS

COST
At 1 April 2020 and 31 March 2021
DEPRECIATION
At 1 April 2020
Charge for year
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020		 Fixtures
and
fittings
£
195,330
190,261
877
191,138
4,192
5,069

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continued...

AGC MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

10. HERITAGE ASSETS

MARKET VALUE
At 1 April 2020 and 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020		 Total
£
80,244
80,244
80,244

The charity accounts for all Heritage Assets at cost less depreciation. Assets with indefinite useful lives are not depreciated and are subject to periodic impairment reviews.

Summary analysis of heritage asset transactions

Purchases
Donations
Total additions
Charge for Impairment
Disposals
Proceeds from
Disposals		 2021
£
-
-
-		 2020
£
-
-
-		 2019
£
-
-
-		 2018
£
-

 2017
£
-
80
80
-
-
-
- - - -
-
-		 -
-		 -
-		 -
-

Heritage assets not recognised on the balance sheet

The museum reserve collection consists of 56,000 items comprising photographs, documents, objects and uniforms all of which relate to the history of the antecedents and current Corps. These items are unique to the history of the Corps but the majority of the items do not have commercial value.

The accounts include only those items which have been acquired at a known cost. The remainder of the collection has not been recognised in these accounts as information on their cost or valuation is not available and such information cannot be obtained at a cost commensurate with the benefit to the users of the accounts and to the charity

Page 20

continued...

AGC MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

11. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
Listed
investments
£
MARKET VALUE
At 1 April 2020 57,198
Revaluations 12,441
At 31 March 2021 69,639
NET BOOK VALUE
At 31 March 2021 69,639
At 31 March 2020 57,198

There were no investment assets outside the UK.

Investments consist solely of investments held in unit trusts or other collective investment schemes.

12. STOCKS

Shop Stock
13.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other debtors
VAT
Prepayments and accrued income		 2021
£
1,094		 2020
£
1,381
2020
£
136
-
1,102
1,238
2021
£
-
18
2,817
2,835

There are no amounts falling due after more than one year.

14. CASH AT BANK AND IN HAND

Cash in hand
Bank current account
Bank deposit account
Total		 2021
Total
funds
£
40
43,849
5,740
49,629		 2020
Total
funds
£
23
34,347
5,730
40,100

Cash at bank and hand is a financial asset measured at amortised cost.

Page 21

continued...

AGC MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

VAT
Accrued expenses		 2021
£
-
2,303
2,303		 2020
£
11
3,293
3,304

There are no amounts falling due after one year.

16. MOVEMENT IN FUNDS

At 1.4.20
£
Unrestricted funds
General fund
181,926
TOTAL FUNDS
181,926
Net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
Unrestricted funds
General fund
85,139
(74,176)
TOTAL FUNDS
85,139
(74,176)
Comparatives for movement in funds
At 1.4.19
£
Unrestricted funds
General fund
182,170
TOTAL FUNDS
182,170		 Net
movement
At
in funds
31.3.21
£
£
23,404
205,330
23,404
205,330
Gains and
Movement
losses
in funds
£
£
12,441
23,404
12,441
23,404
Net
movement
At
in funds
31.3.20
£
£
(244)
181,926
(244)
181,926

Page 22

continued...

AGC MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

16. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Incoming Resources Gains and Movement
resources expended losses in funds
£ £ £ £
Unrestricted funds
General fund 84,771 (79,705) (5,310) (244)
TOTAL FUNDS 84,771 (79,705) (5,310) (244)

17. RELATED PARTY DISCLOSURES

Whilst the charity has a close working relationship with the Army, there are no transactions with the Army which require disclosure under SORP FRS102. The only transactions made in favour of the Trust are wholly attributable to the charitable activities of furthering military efficiency. The Chairman, who acts as Managing Trustee, is a serving officer and fulfils the role as Trustee in accordance with the applicable laws and regulations.

During the year ended 31 March 2021 the charity received grants totalling £18,000 (2020: £19,500) from The Adjutant General's Corps Association (charity no 1185298). The AGC Museum Trust and the AGC Regimental Association have several trustees in common and both charities have the object of promoting the efficiency of the Adjutant General's Corps.

Page 23

continued...

AGC MUSEUM TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

2021 2020
£ £
INCOME AND ENDOWMENTS
Donations and legacies
Donations 67 569
Grants 82,681 81,325
82,748 81,894
Investment income
Dividends Received 2,367 2,336
Deposit account interest 24 32
2,391 2,368
Charitable activities
Shop income - 509
Total incoming resources 85,139 84,771
EXPENDITURE
Charitable activities
Wages 63,921 63,946
Pensions 2,020 2,013
Advertising - 485
Shop purchases 156 27
Conservation costs - 2,258
Membership fees 799 1,055
Exhibition costs 238 635
Projects 85 -
67,219 70,419
Support costs
Other
Office & admin costs 13 517
Insurance 1,664 2,041
Repairs and renewals 528 1,213
Telephone & internet 1,567 819
Postage and stationery 206 145
Sundries 270 420
Security 87 383
Travel & Subsistence 35 563
Fixtures and fittings 877 1,505
5,247 7,606

This page does not form part of the statutory financial statements

Page 24

AGC MUSEUM TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

2021 2020
£ £
Other
Governance costs
Bookkeeping 585 555
Accountancy and legal fees 1,125 1,125
1,710 1,680
Total resources expended 74,176 79,705
Net income before gains and losses 10,963 5,066
Realised recognised gains and losses
Realised gains/(losses) on fixed asset
investments 12,441 (5,310)
Net income/(expenditure) 23,404 (244)

This page does not form part of the statutory financial statements

Page 25