Annual Report and Financial Statements for the year ended 31 March 2024 



The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024 

## **Contents** 

|**ontents**||
|---|---|
||**Page**|
|Directors and Trustees|3|
|Auditors, registered office, bankers|3|
|Structure, governance, and management|4|
|Achievements and performance|5|
|Plans for future periods|6|
|Grants|7|
|Public benefit|7|
|Fundraising|7|
|Auditors|7|
|Disclosure of information to Auditors|8|
|Financial review|8|
|Statement of Trustees’ responsibilities|9|
|Independent Auditor’s report to the Members|10|
|Statement of financial activities|14|
|Balance sheet|15|
|Notes to the accounts|16|





The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024 

## **Directors and Trustees** 

Mr George Osborne CH (Chair) Ms Muriel Gray FRSE (Deputy Chair) (retired 27 November 2023) Baroness (Minouche) Shafik DBE (Deputy Chair until 22 March 2024) Professor Abhijit V Banerjee Professor Dame Mary Beard DBE, FSA, FBA Dame Elizabeth Corley DBE Dame Tracey Emin DBE, RA (appointed 28 November 2023) Ms Clarissa Farr Professor Chris Gosden FBA Mr Philipp Hildebrand Dame Vivian Hunt DBE (Deputy Chair from 22 March 2024) Lord Marland of Odstock Sir Charlie Mayfield (Deputy Chair from 22 March 2024) Mr Mark Pears CBE Sir Grayson Perry CBE, RA (retired 1 April 2023) Sir Paul Ruddock FSA Mr Alejandro Santo Domingo Mr Weijian Shan Ms Priyanka Wadhawan Professor Sir Mark Walport FRCP, FRS, FMedSci, HonFRSE Mr George Weston Professor Dame Sarah Worthington DBE, KC (Hon), FBA 

## **Auditors** 

Moore Kingston Smith LLP 6[th] Floor 9 Appold Street London EC2A 2AP 

## **Registered office** 

The British Museum Friends Great Russell Street London WC1B 3DG 

Telephone +44(0)20 7323 8195 Facsimile +44(0)20 7323 8985 friends@britishmuseum.org 

## **Bankers** 

National Westminster PO Box 158, 214 High Holborn London WC1V 7BX 

Santander UK 298 Deansgate Manchester M3 4HH 

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The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024 

## **Structure, governance, and management** 

## **Organisational structure** 

The British Museum Friends (BMF) is a registered charity (registration number 1086080) and a company limited by guarantee (registration number 4133346). The Board of Trustees of the British Museum, as a body corporate, is the sole company law member of the BMF. The Trustees of the British Museum are, individually, the charity trustees and the company law directors of the BMF. They govern the BMF in accordance with its Memorandum and Articles of Association. 

The Board of Trustees is responsible for determining the overall strategy of the BMF. Trustees are appointed automatically on their appointment to the Board of Trustees of the British Museum, for fixed terms of service coterminous with their trusteeship of the British Museum. They are nonexecutive and unpaid. The Board of Trustees of the British Museum may consist of up to 25 members, of which 15 are appointed by the Prime Minister, one by the Sovereign, four by the Secretary of State on the nominations of the Royal Academy, the British Academy, the Society of Antiquaries of London and the Royal Society, and five by the Museum’s Trustees. The Chair is appointed by the Board from its members. 

Day-to-day management of the BMF is delegated to the Head of Membership who is supported by a team of staff, all of whom are employed by the British Museum. Volunteers are occasionally used to assist with programme delivery; this can involve working at one of the Member events, assisting with membership recruitment or performing one-off office tasks. 

The Board of Trustees is supported by the Advisory Council to the BMF (the “Council”). Elected from amongst the Membership, the Council acts to ensure that the work of the BMF is in line with the interests of the Members as a whole, and advises on approaches likely to be of most interest. It provides advice and support to the Head of Membership on the strategic approach to marketing, fundraising, events and communication activities. The Council holds a skills register to record the expertise of Council Members. Vacancies are advertised through the regular membership mailings. The Council Members are then appointed following a selection and interview process led by the Chair of the Council, through the nominations committee. New Council Members have induction meetings with the Chair, Deputy Chair and Head of Membership. 

## **Risk management** 

Risk is unavoidable and the resources available for managing risk are finite. The aim of risk management within the BMF is therefore to achieve an optimum response to risk, prioritised in accordance with an evaluation of the risks. Risk management is everybody’s responsibility and is embedded within the BMF through established business planning processes, which ensure that risks to achieving planned initiatives are identified as those initiatives are developed. The Board, the Museum’s Internal Controls Committee, and the Audit Risk and Compliance Committee support this through regular review of the risk register. 

The inherent risks faced by the BMF include reaching membership profit targets, member retention, and management of the Members’ room. Each of these is mitigated effectively by a strong system of internal control. Through positive Member engagement and by closely managing costs the Board is optimistic that these risks can be effectively managed over the coming year. 

## **Objectives and activities** 

The overall object of the BMF, as laid down in the Memorandum of Association, is “to support and assist the British Museum in maintaining and expanding its collections and services to scholars and 

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The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024 

to the general public and to assist other charitable museums to any extent that in the opinion of the Friends might help the British Museum in the aforementioned manner”. 

The BMF fulfils this object by granting funds to the British Museum from the surplus generated from membership subscriptions and other activities as part of the membership offer. The BMF also runs fundraising campaigns to generate funds for specific items or projects as requested by the British Museum. 

The overall strategy of the BMF is to increase the level of support to the British Museum, through increasing member numbers and income, whilst providing an excellent quality of service to all Members. 

## **Achievements and performance** 

2023/24 has been an excellent year for the British Museum Friends. Income from membership subscriptions has remained high at £5.4m. We have seen a very high level of recruitment of new Members this year, delivered thanks to a strong exhibition programme, with China’s Hidden Century proving particularly popular with young people and attracting Under 26 Members. 

The Member events programme has been hugely successful this year. We have increased the amount of income generated through the events programme, while also delivering regular free programming to support Member retention, with the huge success of the sleepover programme (supported by the transition of Young Friends to a freemium scheme) particularly notable. Our priority continues to be ensuring that Members have an exceptional experience when engaging with the Museum, wherever they are in the world. 

## **Achievement and performance against objectives** 

- Ensuring the Member events programme is a valued part of the Membership offering, accessible by as many Members as possible 

2023/24 was an outstanding year for the Membership events programme, with an unprecedented number of events for Members. The lecture programme continued to be very successful and, with the option to join on-site or online, more Members than ever had the opportunity to engage with our regular schedule of talks. Alongside two conferences, we also held our first literary season, featuring some of the UK’s top historical fiction writers. We also expanded our free programming offer to Members, introducing new online daytime talks, making our bimonthly welcome tours free and hosting two very busy Members’ evenings. The number and breadth of tours also expanded this year. We offered tours of the archives in the Round Reading Room for the first time and reintroduced Conservation Studio tours after a four-year hiatus, broadening the ways in which Members can explore behind the scenes. 

A highlight this year was the popularity of sleepovers, and all four sleepovers were sell-out events. Feedback was extremely positive and with the expansion of the Young Friends programme (see below), we saw new audiences engage with the Museum through these events. 

- Reviewing the staffing of the Membership team, in order to ensure we are best positioned to look after our Members 

The Museum restructured the Membership Services team in 2023/24, to ensure that there are more mid-level roles within the teams and to allow us to offer more internal progression for those who join the team as Assistants. The mid-level roles also offer greater specialisation, allowing us to focus on key areas of activity and deliver a better level of customer service for Members. 

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The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024 

- Growing participation in the Young Friends freemium scheme 

The Museum launched the Young Friends scheme as a free to join (“freemium”) scheme this year, contacting current Young Friends, Members and Museum email subscribers. The scheme now has over 11,000 participants (the paid-for scheme only had 632). This substantial increase in numbers has in turn meant that the popularity of sleepovers has increased (see above), generating revenue for the Museum despite the scheme itself being free. 

- Maximising the level of grant to the Museum, with a focus on securing donations and Gift Aid declarations 

With high Member retention rates and recruitment, we have achieved net income of £4.4m excluding grants (2022/23: £4.5m). This includes legacies totalling £0.2m (2022/23: £0.2m). 

This successful financial performance has allowed us, during the year, to approve a grant of £4.5m to the British Museum Trust (registered charity: 1140844). The grant is in support of the British Museum’s ambitious long-term plans, currently known by the working title of the masterplan. 

Additionally restricted grants were awarded to the British Museum of £69k mostly in respect of the 23/24 Membership Appeal towards Scientific Research equipment purchase. 

- Continuing the growth of Membership activities in line with our strategy 

2023/24 has seen the Membership community continue to grow. The exceptionally strong performance of China’s Hidden Century contributed to higher than anticipated levels of recruitment, and the exhibition’s popularity with younger audiences saw an increase in the number of Under 26 Members. The success of the events programme has also contributed to good renewal rates which have seen us retain our core Membership audience. 

## **Plans for future periods** 

2023/24 was an exceptionally successful year for the British Museum Friends, and we expect this success to continue in 2024/25. There is a strong exhibition programme which should deliver high levels of new Member recruitment. We are proposing a similar set of goals to last year, but also aware that as the Museum embarks on its campaign to support the Masterplan, we will need to determine how this affects Members and how they can support the campaign. 

Key priorities for the forthcoming financial year are: 

- Ensuring the Member events programme is a valued part of the Membership offering, accessible by as many Members as possible; 

- Reviewing the staffing of the Membership team, in order to ensure we are best positioned to look after our Members; 

- Growing participation in the Young Friends scheme; 

- Maximising the level of grant in support of the Museum, with a focus on securing donations and Gift Aid declarations; and 

- Continuing the growth of Membership activities in line with our strategy. 

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The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024 

## **Grants** 

In 2023/24 a restricted grant of £4.5m was awarded to the British Museum Trust, with a further £69k restricted grant awarded to the British Museum. This compares to a total of £7.5m restricted grants awarded to the British Museum Trust in 2022/23, and £28k restricted grant awarded to the British Museum in 2022/23. 

Restricted grants made during the year included: 

The British Museum Trust 

- Contribution towards the Museum’s masterplan (£4.5m) 

The British Museum 

- Appeal towards Scientific Research equipment (£62k) 

- Contribution towards the Museum’s research of the collection (£2k) 

- Contribution towards the Museum’s Greece and Rome department (£5k) 

Restricted grants awarded to the British Museum during the prior financial year included £24k to support the Greece and Rome department in memory of Ian Jenkins, £2k towards the Museum’s research of the collection, and £2k towards preserving the collection. 

## **Public benefit** 

In setting the BMF’s objectives and planning its activities, the Trustees believe that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. 

The Trustees demonstrate this through making grants in support of the British Museum for new acquisitions for the collection, research, building work, and other projects, which will benefit not just Members but also the general public in deepening our understanding of the cultures of the world. The Trustees also deliver public benefit by providing the opportunity for all visitors to the British Museum to become a Member at cost-effective rates; and by providing a set of valued benefits to Members of the BMF (particularly engagement with, and increased accessibility to, the Museum and its collection). 

## **Fundraising** 

The BMF is registered with the Fundraising Regulator and works according to the Fundraising Promise. No agents are used for fundraising and the staff involved in fundraising are subject to the British Museum Code of Conduct. The BMF has a number of feedback channels and responds to questions from its supporters. 

## **Auditors** 

Moore Kingston Smith LLP have expressed their willingness to continue in office and will be deemed reappointed for the next financial year in accordance with section 487(2) of the Companies Act 2006 unless the company receives notice under section 488(1) of the Companies Act 2006. 

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The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024 

## **Disclosure of information to Auditors** 

So far as the Trustees are aware, there is no relevant audit information of which BMF’s auditors are unaware. The Trustees believe that they have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that BMF’s auditors are aware of that information. 

## **Financial review** 

## **Income and expenditure (excluding grants)** 

Total incoming resources of £6.2m million were generated this year in line with 2022/23 (£6.1m). Income from charitable activities was in line with last year at £5.8 million. Donations and legacies were similarly comparable to 2022/23 at £0.3m. 

The BMF incurred expenditure (excluding grants) of £1.8 million in the year, an increase of 12% compared to 2022/23. 

## **Balance sheet** 

Total funds at 31 March 2024 were £1.8 million, all of which is unrestricted. The cash position remains satisfactory. 

## **Reserves policy** 

The reserves policy is to retain three to six months’ expenditure (excluding grants and exceptional items), to provide financial stability and to act as a safeguard against unforeseen expenditure and lower than expected income. This represents £0.4m - £0.9m. As at 31 March 2024, the BMF held unrestricted reserves of £1.8 million, all of which are general reserves. This is in excess of the amount required by the policy. It is currently expected that reserves will be brought in line with the reserves policy over the next couple of years. 

## **Small companies exemption** 

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. 

George Osborne CH Chair The British Museum Friends 4 July 2024 

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The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024 

## **Statement of Trustees’ responsibilities** 

The Trustees (who are also directors of The British Museum Friends for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with United Kingdom Accounting Standards and applicable laws (FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006). 

Company law requires trustees to prepare financial statements for each financial year, which give a true and fair view of the state of the affairs of the charitable company and of its income and expenditure for the financial year. In preparing these financial statements, the Trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards including FRS102 have been followed, subject to any material departures disclosed and explained in the financial statements; 

- state whether a Statement of Recommended Practice applies and has been followed, subject to any material departures which are explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. 

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

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The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024 

## **Independent Auditor’s report to the Members of the British Museum Friends** 

## **Opinion** 

We have audited the financial statements of The British Museum Friends (‘the company’) for the year ended 31 March 2024, which comprise the Statement of Financial Activities, the Balance Sheet, and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the charitable company’s affairs as at 31 March 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **Basis for opinion** 

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

## **Conclusions relating to going concern** 

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

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

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

## **Other information** 

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 

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The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024 

course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## **Opinions on other matters prescribed by the Companies Act 2006** 

In our opinion, based on the work undertaken in the course of the audit: 

- the information given in the Trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the Trustees’ annual report has been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ annual report. 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: 

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of Trustees’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit; or 

- the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the Trustees’ annual report and from preparing a strategic report. 

## **Responsibilities of Trustees** 

As explained more fully in the Trustees’ responsibilities statement set out on page 9, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

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

## **Auditor’s responsibilities for the audit of the financial statements** 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered 

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The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024 

material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also: 

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charitable company’s internal control. 

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees. 

- Conclude on the appropriateness of the Trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern. 

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 

## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud** 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. 

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company. 

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The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024 

Our approach was as follows: 

- We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council] 

- We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance. 

- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance. 

- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. 

- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. 

## **Use of our report** 

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. 

James Cross (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor 

6[th] Floor 9 Appold Street London EC2A 2AP 

9 July 2024 

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_The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024_ 

## **Statement of financial activities (including income and expenditure account) for the year ended 31 March 2024** 

|Note<br>**Income from:**<br>Donations and legacies<br>2<br>Charitable activities<br>3<br>Investments<br>4<br>**Total**<br>**Expenditure on:**<br>Raising funds<br>5<br>Charitable activities:<br>Members' activities<br>6<br>Grant making<br>8<br>**Total expenditure**<br>**Net income / (expenditure)**<br>**Transfers between funds**<br>13<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>13<br>**Total funds carried forward**<br>13|Unrestricted<br>Funds<br>2024<br>£’000<br>187<br>5,777<br>134<br>**6,098**<br>(5)<br>(1,780)<br>(4,500)<br>**(6,285)**<br>**(187)**<br>-<br>**(187)**<br>1,984<br>**1,797**|Restricted<br>Funds<br>2024<br>£’000<br>69<br>-<br>-<br>**69**<br>-<br>-<br>(69)<br>**(69)**<br>**-**<br>-<br>**-**<br>-<br>**-**|**TOTAL**<br>**2024**<br>**£’000**<br>**256**<br>**5,777**<br>**134**<br>**6,167**<br>**(5)**<br>**(1,780)**<br>**(4,569)**<br>**(6,354)**<br>**(187)**<br>**-**<br>**(187)**<br>**1,984**<br>**1,797**|Unrestricted<br>Funds<br>2023<br>£’000<br>223<br>5,815<br>52<br>6,090<br>(1)<br>(1,586)<br>(7,500)<br>(9,087)<br>(2,997)<br>-<br>(2,997)<br>4,981<br>1,984|Restricted<br>Funds<br>2023<br>£’000<br>28<br>-<br>-<br>28<br>-<br>-<br>(28)<br>(28)<br>-<br>-<br>-<br>-<br>-|TOTAL<br>2023<br>£’000<br>251<br>5,815<br>52|
|---|---|---|---|---|---|---|
|||||||6,118|
|||||||(1)<br>(1,586)<br>(7,528)|
|||||||(9,115)|
|||||||(2,997)<br>-|
|||||||(2,997)|
|||||||4,981|
|||||||1,984|



All activities are derived from continuing operations. The Statement of Financial Activities contains all gains and losses in the year. The notes on pages 16 to 25 form part of these accounts. 

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_The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024_ 

## **Balance sheet as at 31 March 2024** 

||**Note**|**2024**|2023|
|---|---|---|---|
|||**£’000**|£’000|
|**Current assets**||||
|Debtors|9|823|882|
|Investments|10|2,579|3,026|
|Cash at bank and in hand||1,479|1,551|
|||**4,881**|5,459|
|**Liabilities**||||
|Creditors: amounts falling due within one year|11|(3,084)|(3,475)|
|**Net current assets**||**1,797**|1,984|
|**Total assets less current liabilities**||**1,797**|1,984|
|**Total net assets**||**1,797**|1,984|
|**Represented by:**||||
|Designated unrestricted funds|13-14|-|-|
|General unrestricted funds|13-14|1,797|1,984|
|**Total charity funds**||**1,797**|1,984|



The notes on pages 16 to 25 form part of these accounts. 

These financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies, the Statement of Recommended Practice, Accounting & Reporting by Charities (SORP FRS 102), and applicable accounting standards. 

The financial statements were approved at a Board meeting on 4 July 2024 and signed on its behalf by: 

George Osborne CH Chair The British Museum Friends 

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The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024 

## **Notes to the accounts for the year ended 31 March 2024** 

## **1. Accounting policies** 

## **Basis of accounting** 

The financial statements comply with FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland; the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (Charities SORP (FRS 102)); and the Companies Act 2006. The financial statements are prepared under the historical cost convention. 

The financial statements have been prepared on a going concern basis. The Trustees have considered possible events or conditions that might cast significant doubt on the ability of the British Museum Friends to continue as a going concern. The Trustees have a reasonable expectation that the organisation has adequate resources to continue in operational existence for the foreseeable future. 

The principal accounting policies adopted in the preparation of the financial statements are as follows: 

## **a) Income** 

In general, income is accounted for when a transaction or other event results in an increase in the BMF’s assets or a reduction in its liabilities. 

Subscriptions are recognised on a receipts basis as the charity is entitled to the subscription income once a member has paid. Membership extensions are only granted in exceptional circumstances. We ceased selling lifetime memberships in 2006. 

Publication and paid events income is recognised as income to the extent that the BMF has provided the associated goods or services. Where income is received in advance and the BMF does not have entitlement to these resources until the goods or services have been provided, the income is deferred. 

Income from donations is recognised in the SOFA when there is evidence of entitlement (for example, when the conditions for their receipt have been met), receipt is probable and its amount can be reliably measured. 

Catering income is recognised based on the net profit generated during the year by the catering provider. Any catering losses are recognised as costs incurred during the year. 

Legacies are recognised as income when there has been grant of probate, there are sufficient assets in the estate, evidence of entitlement has been received from the executor and the amount receivable can be measured with sufficient accuracy. 

## **b) Expenditure** 

Expenditure is recognised in the financial statements when a present legal or constructive obligation exists, it is more likely than not that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured or estimated reliably. Resources expended are classified in the SOFA under the principal categories of expenditure on raising funds and on charitable activities. 

Costs of raising funds are those incurred in seeking voluntary contributions for the BMF. Costs of charitable activities are those incurred in supporting the membership and include the governance costs incurred to ensure compliance with constitutional and statutory requirements. Support costs are assigned to the SOFA headings in the same proportion as directly attributable staff costs. 

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The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024 

## **c) Fixed assets and depreciation** 

Tangible assets with an economic life of more than one year and value greater than £5,000 are capitalised. Depreciation is provided on these tangible assets, at rates calculated to write off the value of each asset evenly over its expected useful economic life (see below) with no residual value assumed. 

- Furniture, fit out and equipment – 2 to 20 years 

Depreciation is charged evenly over the life of the asset, to the nearest month. Impairment reviews are carried out at the end of each reporting period to ensure that the carrying values of the assets do not exceed their recoverable amounts. 

No assets of a depreciating nature are currently held. 

## **d) Investments** 

All investments are stated at fair value at year end. Valuations for investments with an active market are based on published quoted prices at or close to the balance sheet date. Valuations for investments where there is no active market have been estimated with reference to recent valuation reports. The SOFA includes any realised and unrealised investment gains and losses arising on revaluation and disposals throughout the year. 

Investments that are intended to produce a return, but which are placed in deposits of less than six months’ duration, are treated as current assets. All other investments, which are intended to produce a long-term return and not intended to be spent within the next year, are treated as fixed assets. 

## **e) Irrecoverable VAT** 

Irrecoverable VAT is treated as a support cost and is apportioned over the activities of the BMF as described in Note 6. 

## **f) Grants** 

Grants payable are recognised when the criteria for a constructive obligation are met, payment is probable, values can be measured reliably, and there are no conditions attached to payment that limit recognition. 

## **g) Funds structure** 

The BMF has the following categories of funds: 

- Unrestricted funds: these are available for use at the discretion of the Trustees in furtherance of the general objectives of the BMF. These include designated funds, which are set aside at the discretion of the Trustees for specific purposes; 

- Restricted funds: these funds are subject to specific restrictions imposed by donors. 

The major funds comprising each category, the summary results for the year and a description of the movements between the funds are set out in Note 13. 

## **h) Financial Instruments** 

The BMF only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. 

## **i) Cash at bank and in hand** 

Cash at bank and in hand is held to meet short-term cash commitments as they fall due rather than for investment purposes. 

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The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024 

## **Significant judgements and estimates** 

All judgements applied in preparing the financial statements are disclosed in the accounting policies above. No material estimates have been applied. 

## **Disclosure exemptions** 

As a qualifying subsidiary of the British Museum, the BMF has taken advantage of some of the disclosure exemptions available under FRS 102. These are: 

- A statement of cash flows; 

- Detailed disclosures relating to financial instruments (equivalent disclosures are included in the Museum’s consolidated accounts); and 

- Disclosure of total remuneration of key management personnel (reference is made in note 6e to the equivalent disclosures included in the consolidated accounts) 

The British Museum’s consolidated financial statements are available to view at: 

http://www.britishmuseum.org/about_us/management/annual_reports_and_accounts.aspx. 

## **2. Donations and legacies** 

|**Unrestricted**<br>Legacies<br>Donations<br>Total unrestricted<br>**Restricted**<br>Legacies<br>In memory of Ian Jenkins (Greece & Rome)<br>Preserving the collection<br>Scientific Research<br>Townley<br>Total restricted<br>Total unrestricted and restricted|**2024**<br>**£’000**<br>**160**<br>**27**<br>**187**<br>**5**<br>**-**<br>**-**<br>**62**<br>**2**<br>**69**<br>**256**|2023<br>£’000<br>207<br>16|
|---|---|---|
|||223|
|||-<br>24<br>2<br>-<br>2|
|||28|
|||251|



## **3. Charitable activities** 

|Membership subscriptions<br>Paid events and catering<br>Publications|**2024**<br>**£’000**<br>**5,387**<br>**307**<br>**83**<br>**5,777**|2023<br>£’000<br>5,502<br>247<br>66<br>5,815|
|---|---|---|



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The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024 

## **4. Income from investments** 

|Interest income receivable<br>**Cost of raising funds**<br>Fundraising costs|**2024**<br>**£’000**<br>**134**<br>**2024**<br>**£’000**<br>**5**|2023<br>£’000|
|---|---|---|
|||52|
|||2023<br>£’000|
|||1|



## **5. Cost of raising funds** 

## **6. Members’ activities** 

|Directly attributable costs<br>Staff<br>Others<br>£’000<br>£’000<br>Member promotion<br>217<br>12<br>Membership services<br>438<br>420<br>Paid events and catering<br>171<br>133<br>Publications<br>30<br>125<br>856<br>690<br>**(a) Support costs**<br>External audit fee<br>Current year<br>Under provision in previous year<br>Council expenses<br>Directors', Officers' and Trustees' liability insurance<br>Total governance costs<br>Staff costs<br>Other non-staff costs|Support<br>Costs<br>**Note 6 (a)**<br>£’000<br>59<br>120<br>47<br>8<br>234|Support<br>Costs<br>**Note 6 (a)**<br>£’000<br>59<br>120<br>47<br>8<br>234|**Total**<br>**2024**<br>**£’000**<br>**288**<br>**978**<br>**351**<br>**163**||Total<br>2023<br>£’000<br>303<br>800<br>304<br>179|
|---|---|---|---|---|---|
||||**1,780**||1,586|
||||**2024**<br>**£’000**<br>**10**<br>**1**<br>**1**<br>**1**<br>**13**<br>**86**<br>**135**<br>**234**||2023<br>£’000<br>10<br>-<br>-<br>1|
||||||11<br>65<br>134|
||||||210|



## **6. (a) Support costs** 

Support costs have been allocated to charitable activities in the same proportion as directly attributable staff costs. 

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The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024 

## **6. (b) Staff costs** 

|Wages and salaries<br>Social security costs<br>Pension costs<br>Agency staff costs|**2024**<br>**£’000**<br>**579**<br>**64**<br>**124**<br>**175**<br>**942**|2023<br>£’000<br>411<br>44<br>96<br>189|
|---|---|---|
|||740|



Permanent staff are employed by the British Museum, who recharge these costs to the BMF. Agency staff are contracted directly by the BMF. 

**6. (c)** The average number of full-time equivalent employees excluding agency staff during 2023/24 was 15.9 (2022/23: 12.4). Including agency staff, 21.4 full time equivalent were employed in 2023/24 (2022/23: 18.6 FTE). The average head count during the year excluding agency staff was 20 (2022/23: 17). 

**6. (d)** No employees received employee benefits (excluding employer pension costs) of more than £60,000 (2022/23: 0). 

**6. (e)** The British Museum employs senior management that oversees the BMF. Remuneration of the British Museum's key management personnel is disclosed in their financial statements, available to view at: http://www.britishmuseum.org/about_us/management/annual_reports_and_accounts.aspx 

## **7. Trustees** 

The Trustees neither received nor waived any emoluments or other benefits from the BMF in the year (2022/23: £0). 

All Trustees are entitled to reimbursement for reasonable travel and subsistence expenses incurred in the performance of their duties. In 2023/24, no travel and subsistence expenses were paid to Trustees or directly to third parties on their behalf (2022/23: £0). 

During the year, the BMF purchased charity Trustees' liability insurance at a premium of £645 (2022/23: £645). 

## **8. Grant making** 

|Donations from unrestricted donations<br>Donations from restricted funds<br>Total grants|**2024**<br>**£’000**<br>**4,500**<br>**69**<br>**4,569**|2023<br>£’000<br>7,500<br>28|
|---|---|---|
|||7,528|



A £4.5m grant was made to the British Museum Trust, restricted for the British Museum’s masterplan. £69k of grants were made to the British Museum. Details of grants can be found on page 7. 

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The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024 

## **9. Debtors** 

|**Debtors**|||
|---|---|---|
|Trade debtors<br>Less: Provision for bad debts<br>Other debtors:<br>The British Museum<br>The British Museum Company<br>HM Revenue & Customs<br>Prepayments and accrued income<br>**.  Current asset investments**<br>Current asset investments|**2024**<br>**£’000**<br>**32**<br>**(4)**<br>**28**<br>**4**<br>**-**<br>**713**<br>**78**<br>**823**<br>**2024**<br>**£’000**<br>**2,579**|2023<br>£’000<br>29<br>(5)|
|||24<br>138<br>-<br>695<br>25|
|||882|
|||2023<br>£’000|
|||3,026|



## **10.  Current asset investments** 

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The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024 

## **11.  Creditors: amounts falling due within one year** 

|Trade creditors<br>The British Museum<br>Accruals, deferred income and others<br>**12. (a) Deferred income**|**2024**<br>**£’000**<br>**39**<br>**405**<br>**2,640**<br>**3,084**|2023<br>£’000<br>48<br>311<br>3,116|
|---|---|---|
|||3,475|
||||



|Falling due within one year|**Total**<br>**2024**<br>**£’000**<br>**51**<br>**51**|Total<br>2023<br>£’000<br>17|
|---|---|---|
|||17|



The movement on the deferred income account is as follows: 

|Deferred income brought forward<br>Released in year<br>Deferred in year<br>Deferred income carried forward|**Total**<br>**2024**<br>**£’000**<br>**17**<br>**(17)**<br>**51**<br>**51**|Total<br>2023<br>£’000<br>20<br>(20)<br>17|
|---|---|---|
|||17|



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_The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024_ 

## **13. Funds** 

|Unrestricted Funds<br>Designated funds<br>_1_<br>General funds<br>Restricted Funds:<br>Legacies<br>_2_<br>In memory of Ian Jenkins<br>_3_<br>Preserving the collection<br>_4_<br>Scientific Research<br>_5_<br>Townley<br>_6_|At 1<br>April<br>2022<br>Incoming<br>resources<br>2022/23<br>Resources<br>expended<br>2022/23<br>Transfer<br>between<br>funds<br>**At 31**<br>**March**<br>**2023**<br>Incoming<br>resources<br>2023/24<br>Resources<br>expended<br>2023/24<br>Transfer<br>between<br>funds<br>**At 31**<br>**March**<br>**2024**<br>£’000<br>£’000<br>£’000<br>£’000<br>**£’000**<br>£’000<br>£’000<br>£’000<br>**£’000**<br>4,000<br>-<br>-<br>(4,000)<br>**-**<br>-<br>-<br>-<br>**-**<br>981<br>6,090<br>(9,087)<br>4,000<br>**1,984**<br>6,098<br>(6,285)<br>-<br>**1,797**<br>-<br>-<br>-<br>-<br>**-**<br>5<br>(5)<br>-<br>**-**<br>-<br>24<br>(24)<br>-<br>**-**<br>-<br>-<br>-<br>**-**<br>-<br>2<br>(2)<br>-<br>**-**<br>-<br>-<br>-<br>**-**<br>62<br>(62)<br>-<br>**-**<br>-<br>2<br>(2)<br>-<br>**-**<br>2<br>(2)<br>-<br>**-**|
|---|---|
||-<br>28<br>(28)<br>-<br>**-**<br>69<br>(69)<br>-<br>**-**<br>4,981<br>6,118<br>(9,115)<br>-<br>**1,984**<br>6,167<br>(6,354)<br>-<br>**1,797**|



- _1_ To give BMF financial sustainability in the face of the current uncertainties, the Trustees had designated a resilience fund of £4m. During 2022/23, in light of easing financial uncertainties, the Trustees released this designated amount. 

- _2_ This is a restricted legacy towards the Greece & Rome department. _3_ The 2021/22 appeal was set up in memory of Ian Jenkins to support Greece & Rome projects at the Museum. _4_ The 2019/20 Preserving the collection appeal was set up to fund vital conservation projects at the Museum. 

- _5_ The 2023/24 Scientific Research appeal was set up to support the Museum’s purchase of an Arago photogrammetry rig. _6_ The Townley Research Fund was set up to support research in the Museum. 

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_The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024_ 

## **14. Analysis of net assets between funds** 

||Unrestricted|Restricted||Unrestricted|Restricted||
|---|---|---|---|---|---|---|
||funds|funds|**Total**|funds|funds|Total|
||2024|2024|**2024**|2023|2023|2023|
||£’000|£’000|**£’000**|£’000|£’000|£’000|
|Current and fixed assets|<br>4,812|69|**4,881**|5,431|28|5,459|
|Creditors|(3,015)|(69)|**(3,084)**|(3,447)|(28)|(3,475)|
||1,797|-|**1,797**|1,984|-|1,984|



## **15. Member’s liability** 

The charity is a company limited by guarantee and has no share capital. The liability of the Member in the event of winding-up is limited to £1. 

## **16. Contingent asset** 

One restricted and one unrestricted legacy were bequeathed to BMF. The restricted legacy was newly bequeathed in 2023/24 and the unrestricted legacy was notified in 2022/23 with a final distribution to be received. The amount and timing of these payments are uncertain as the BMF’s interest in these legacies are residuary and cannot be measured reliably. It is therefore not practicable to quantify the estimated amounts receivable and accordingly they have not been recognised in the financial statements. 

## **17. Events occurring after the end of the reporting period** 

No significant events took place after the end of the reporting period. 

## **18. Related party transactions** 

The financial statements of the BMF are consolidated into the British Museum’s group financial statements (available to view at: https://www.britishmuseum.org/about-us/governance). 

In line with paragraph 33.1A of FRS 102, the BMF, wholly owned by the Trustees of the British Museum, is not required to disclose transactions with other wholly owned members of the group headed by the Trustees of the British Museum. However, details of material transactions and balances with the British Museum and other subsidiary entities of the British Museum are shown in the relevant notes to the financial statements. 

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The British Museum Friends Limited Company Registration Number 4133346 Annual Report and Accounts Year Ended 31 March 2024 

During 2023/24 the charity entered into material transactions with related parties outside the group headed by the British Museum as set out below: 

|**Party**|**Nature of relationship**|**Transaction**|**Income for**<br>**the year**<br>**ended 31**<br>**March 2024**<br>**(£’000s)**|**Expenditure**<br>**for the year**<br>**ended 31**<br>**March 2024**<br>**(£’000s)**|**Creditor**<br>**balance at**<br>**31 March**<br>**2024**<br>**(£’000s)**|**Debtor**<br>**balance at**<br>**31 March**<br>**2024**<br>**(£’000s)**|
|---|---|---|---|---|---|---|
|Ashmolean<br>Museum|Professor Chris Gosden<br>FBA†is a Member of the<br>Ashmolean Museum<br>Board of Visitors|Trade income|2|-|-|-|



† Trustee of the British Museum during the year ended 31 March 2024. 

A number of employees of the British Museum, Trustees and co-opted members of Board Committees and their family members, and members of the BMF Advisory Council, are members of the BMF. 

Trustees and employees of the BMF and the British Museum are entitled to discounts on purchases from the Museum’s shops and cafes. 

25