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2023-03-31-accounts

YORK MUSEUMS AND GALLERY TRUST

Company Registration No. 04381647 Registered Charity No. 1092466

York Museums and Gallery Trust

(A Company Limited by Guarantee)

Trustees’ Report and Financial Statements

Year ended 31 March 2023

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

Contents

OFFICERS AND PROFESSIONAL ADVISORS ........................................................................................................................... 3 TRUSTEES’ REPORT ............................................................................................................................................................. 4 INDEPENDENT AUDITOR’S REPORT ..................................................................................................................................... 6 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES .................................................................................................... 18 CHARITY STATEMENT OF FINANCIAL ACTIVITIES ............................................................................................................... 19 CONSOLIDATED BALANCE SHEET ...................................................................................................................................... 20 CHARITY BALANCE SHEET ................................................................................................................................................. 21 CONSOLIDATED CASH FLOW STATEMENT ......................................................................................................................... 22 NOTES TO THE FINANCIAL STATEMENTS ........................................................................................................................... 23

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OFFICERS AND PROFESSIONAL ADVISORS

The Trustees who served during the year and subsequently were:

TRUSTEES

J. Grierson (Chair)

P. Ashton

A. Dean

S. Daubeney

S. Furlong

M. Haworth (Resigned 24.11.22)

A. Kirkby (Appointed 01.12.22)

M. Lowe

A. Malik (Resigned 02.05.23)

D. Myers

S. Orr (Appointed 01.12.22)

A. Scott

COMPANY SECRETARY

P. Lambert

PRINCIPAL OFFICERS – KEY MANAGEMENT PERSONNEL

R. King – Chief Executive (Resigned 08.08.22) K. Blacker -Chief Executive (Appointed 02.01.23)

REGISTERED OFFICE

St Marys’ Lodge, Marygate, York, YO30 7DR

INDEPENDENT AUDITORS

Beever and Struthers One Express, 1 George Leigh Street, Manchester, M4 5DL

BANKERS

HSBC Bank plc PO Box 26, 13 Parliament Street, York, YO1 8XS

SOLICITORS

Browne Jacobson LLP Mowbray House, Castle Meadow Road, Nottingham, NG2 1BJ

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TRUSTEES’ REPORT

For the year ended 31 March 2023

Chair’s Foreword

Introduction

It gives me great pleasure as the Chair of Trustees for York Museums Trust to present the 2022-23 annual report and accounts.

This year has been marked by an encouraging and continued recovery from the substantial impact of the pandemic on income, operations and visitor numbers. We have been supported through this significant change by an incredible team of dedicated staff and volunteers who have helped us to be resilient, within a challenging external context, to continue to deliver outstanding activities and a warm welcome to all.

The new Chief Executive, Kathryn Blacker, joined York Museums Trust in January 2023. Kathryn has brought a breadth of experience of positive organisational transformation, gained in different sectors in media, museums and, most recently, as Chapter Steward at York Minster. Kathryn has a reputation for, and commitment to, working collaboratively with other organisations across York and North Yorkshire. The Senior Leadership Team provided a successful bridge of support between the previous Chief Executive, Reyahn King’s, departure in summer 2022 and Kathryn’s arrival, steering the Trust carefully through a period of continued change. The Trust outperformed its audience and income targets for the year. Visitor numbers were more than 429,000 across the three main venues, ahead of the forecast of 365,000 and 93% above the previous financial year. Overall visitor number yield and tight cost control enabled the Trust to perform better than its forecast with an outturn of almost £5.2m and reserves of £943,000. This position is even more remarkable given the impact of rising running costs and broader cost-of-living challenges.

During November Arts Council England renewed the National Portfolio Organisation (NPO) status of York Museums Trust. The package of support will be £3.7m from April 2023 to March 2026 (£1.25m annually). This was excellent news and reflected the confidence that the Arts Council has placed in the collections and valuable activities delivered by York Museums Trust.

The Yorkshire Museum reopened its doors following a period of closure with a fanfare marked by the launch of the Ryedale Hoard exhibition. On display for the very first time the hoard, which was found in North Yorkshire, contains some of the area’s most significant Roman objects, including an 1,800-year-old bust of Roman Emperor Marcus Aurelius. The purchase of the Ryedale Hoard was made possible thanks to the generosity of Richard Beleson, the Art Fund, several individual donors and with the help of David Aaron Ltd.

York Art Gallery has rebuilt a rich programme which attracted audiences of almost 129,000 and diversified our visitor profile to encompass younger people. ‘Body Vessel Clay: Black Women, Ceramics & Contemporary Art’, curated and conceived by Dr Jareh Das in partnership with Two Temple Place, explored work by three generations of black women artists working with clay. Two Aesthetica Art Prize exhibitions provided a celebration of contemporary art. ‘Sin’ organised with the National Gallery, brought together works of art which span the centuries. ‘Marvellous & Mischievous: Literature’s Young Rebels’, a British Library touring exhibition, put the spotlight on famous rebels in children’s literature. New permanent exhibitions included ‘Treasures from the Stores’ with highlights from York Art Gallery’s own collections ranging from pieces by Ethel Walker to Andy Warhol, whilst ‘Wall of Women’ opened in March 2023. The new display in the Centre of Ceramic Art, celebrates the innovation and creativity of women working with clay from the early 20th century to the present day.

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At York Castle Museum the programme included ‘Castles of the Future’ with Bricklive, the introduction of ‘Mechanical Marvels’, ‘Ghosts on Kirkgate’ in collaboration with the York’s Ghost Merchants in late October, and ‘Christmas at York Castle’. ‘The Tiger Who Came to Tea’ exhibition and associated activities, delivered in partnership with Seven Stories, brought young families into the Museum. The overall programme supported the venue in exceeding its visitor targets and income for the year.

The focus on community engagement ranged from Teenage Art School in collaboration with local arts organisation Mediale at York Art Gallery to the completion of a pilot community research project in the Hull Road and Tang Hall area of York, with the support of City of York Council and Make It York. The year also marked the return of a self-led schools’ programme across all three sites and the launch of a review to establish a new approach to formal learning delivery in the future. York Museums Trust is committed to reflecting policies both locally and nationally through Arts Council’s Let’s Create Strategy that help to deepen its role in the local community and encourage both creativity and participation.

York Museum Gardens welcomes over a million visitors a year. The historic and stunning gardens are a vital green lung in the centre of the city which supports the health and wellbeing of both residents and visitors. Reflecting the Trust’s commitment to improving environmental sustainability the gardens’ team has increased biodiversity with new planting schemes, the introduction of polytunnels to grow and nurture plants on site to reduce travel miles and the creation of a new orchard as a joint initiative with York Philosophical Society. Event highlights included the Roman Festival during July, the hosting of ‘Ghosts in the Garden’ with York Bid in October and participation in Make It York’s ‘Ice Trail’ during February.

The achievements throughout the last year have been a testament to the support of trustees, staff, funders, partners, visitors, patrons and donors. We have ended the financial year with much to look forward to over the coming 12 months. The Trust will continue to build on its resilience to deliver social, cultural and economic impact through its inspiring spaces, collections and activities.

I would also like to thank the Board of Trustees for their support throughout the year, and in particular those Trustees who have retired.

James Grierson, Chair Date: 7[th] November 2023

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Strategic Report

The Trustees, who act as directors for the purpose of company law, present the audited consolidated financial statements for the year ended 31 March 2023.

Our purpose and activities

York Museums Trust’s (‘YMT’) was set up in 2002 to cherish the collections, building and gardens entrusted to us, presenting and interpreting them as a stimulus for learning, a provocation to curiosity and a source of inspiration and enjoyment for all.

Our vision is:

Connecting and inspiring people with the stories, histories, cultures and art of York and North Yorkshire.

Our mission is:

Championing curiosity, inspiring creativity and creating opportunities for people to flourish as we collaborate to tell stories about our collections and places.

Our priorities are:

Building and sustaining a flourishing organisation by:

YMT carries out its mission through a broad range of activities, centred around but not limited to our main sites – York Art Gallery (YAG), York Castle Museum (YCM), Yorkshire Museum (YM) and York Museum Gardens (YMG).

Overview of our operating activities

The reporting period of 2022/23 represented the first period where all of our sites have been able to open for the whole year since the global pandemic in March 2020. We were pleased to welcome back visitors in large numbers which boosts admissions income, and secondary spend in retail and cafes. We have not yet achieved the visitor numbers we experienced before 2020 at YCM and YM and we had budgeted for the year accordingly. At YAG visitor numbers are over 70% higher than we expected as we continued with the model of allowing free access to the site and the permanent displays and charging for the temporary exhibitions we ran in the year.

In 2022/23 we put on four such exhibitions: Beyond Bloomsbury: life, love and legacy; Body, Vessel, Clay: Black Women, Ceramics and Contemporary Art; SIN: An exhibition organised by the National Gallery, London with York Museums Trust; Marvellous and Mischievous: Literature’s Young Rebels

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Our reported visitor numbers for the last three years in the context of reduced numbers because of Covid-19 in 2020/21 and to a lesser extent in 2021/22 are:

York Castle Museum
Yorkshire Museum
York Art Gallery
Total		 2022/23
2021/22
2020/21
224,557
108,807
8,328
75,866
26,859
Nil
128,849
85,947
12,478
429,272
221,613
20,806

Fundraising

We had National Portfolio Organisation (NPO) Funding from Arts Council England (ACE) for the five year period April 2018 to March 2023, providing an annual income of £1.25m each year during this period. We successfully bid in 2022 for further NPO funding for the period April 2023 to March 2026 at the same level of income of £1.25m per annum.

Individual donors have continued their support for YMT’s core work, with gifts secured onsite and online. We have in place a Patron giving programme and a regular supporters scheme which was launched in mid 2022. Gift Aid has improved with the new charging models at YCM and YM which give visitors a 12 month admissions pass as part of the entrance fee.

Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. We seek charitable gifts from our visitors and stakeholders to make our ambitious vision for the future possible, in line with the legislative definition of fundraising as “soliciting or otherwise procuring money or other property for charitable purposes.” This does not involve widespread solicitation of the general public to acquire new donors. The generous contributions that we receive are presented in our accounts as “Donations and Legacies” and include gifts from individuals, legacies and grants.

All our fundraising activity is managed internally, by a small department of employed fundraising specialists, without involvement of commercial participators, external fundraisers, or third parties. The day to day management of all income generation is delegated to the executive team, who are accountable to the Trustees. YMT is not bound by any regulatory scheme but does comply voluntarily with the Fundraising Regulators Code of Practice.

We have received no complaints in relation to fundraising activities. Our terms of employment require staff to behave reasonably at all times. By complying with the Fundraising Regulators Code of Conduct and GDPR we have procedures in place to prevent complaints and address them should they arise.

Financial Review

YMT had expected to make a substantial financial loss in 2022/23 because of the uncertainty of visitor numbers returning post pandemic. The financial performance proved better than predicted and we ended the year making a small financial loss. The reasons for a better than forecast financial position were:

YORK MUSEUMS AND GALLERY TRUST

The net deficit for the year on general unrestricted funds (before transfers between funds) was £78,767 (2022: net surplus of £153,749). The Trustees decided to allocate £47,526 (2022: allocate £5,232) from the general unrestricted fund to designated funds. The net movement in funds for the general unrestricted fund for the year was thus £126,293 (2022: £148,517).

Net movement in funds on designated funds was an increase of £1,007,412 (2022: an increase of £1,084,500) and net movement in funds on restricted funds was a decrease of £43,711 (2022: a decrease of £392,431).

The Pension Fund has a gross accounting surplus for the year of £5,575,000 (2022: gain £2,441,000). In line with FRS 102 requirements York Museums and Gallery Trust has recognised as an asset on the balance sheet to the extent that it is able to recover the surplus, either through reduced contributions in the future, or through refunds from the plan. The scheme’s actuary has confirmed that they can demonstrate no economic benefit arising to York Museums and Gallery Trust from an ‘asset ceiling’ calculation comparing the present value of future service costs to the present value of future contributions. The actuary has also confirmed that any refunds from the plan are contingent on future events. Accordingly, the financial statements do not recognise the pension asset position, restricting the surplus to £nil, and reducing actuarial gains to £2,672,000.

During the year the charity received restricted donations, grants and income from charitable activities for specific activity and expenditure which resulted in restricted funds of £202,864 held at the end of the year (2022: £246,575).

The unrestricted general funds of the group, excluding fixed assets not represented by matching designated funds, at 31 March 2023 were a surplus of £893,116 (2022: £903,430).

The Trustees are satisfied that the charity's assets are available and adequate to fulfil its obligations for the foreseeable future as described in the going concern section of the report below.

Plans for future periods

We have produced a business plan for the 2023/24 period and defined the key outcomes and measures and activities we want to achieve in this period. We have also prepared for ACE an Activity Plan and Investment Principles Plan aligned to the #Let’s Create strategy. All of these plans align to our priorities:

Principal Risks and Uncertainties

Funding

Management and the Trustees formally review the risks through the use of a risk register and a risk management process. This includes scrutiny of the risk register by the Audit and Risk Committee and submission of the risk register to the Board each quarter.

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Funding risk is always significant for YMT. We received as a National Portfolio Organisation £1.25m per year for the four year period 2018 to 2023 from Arts Council England. We have secured further funding for the 2023 to 2026 period at the same level but with inflationary pressures this does not allow us to deliver as much. We also continue to receive £0.3m per annum from City of York Council which has been at this level for 6 years with no inflationary increase.

The balance of our funding we have to generate ourselves through our admissions and Enterprises activities. Trustees have given consideration to the appropriate policies, procedures and systems to mitigate the YMT's exposure to the major risks. The key financial risk is the ability to generate sufficient income from visitor numbers, and other external funders, to cover expenditure incurred in fulfilling the obligations and liabilities as well as the vision, mission and priorities of the group. YMT has in its plans for 2023/24 its strategy of investing in public programmes, engagement, visitor experience, income generation, digital and capital developments in order to mitigate the future financial risks.

Cost of Living crisis

Since the start of 2022 a number of global events have occurred which contribute to an economic situation with high inflation, increases in interest rates and large increases in energy costs. We have been able to fix some of our energy costs but at rates significantly higher than pre 2022. These inflationary pressures impact consumer confidence, visitor numbers and spend. The same pressures impact significantly on our employment and supplier costs. Our ability to raise admission prices, our primary source of income, is limited by what prices visitors are prepared to pay.

Going Concern

In determining that YMT and its subsidiary are going concerns the Board gives consideration to the risks and uncertainties facing each entity, with particular reference to liquidity and solvency issues that might impact viability. The Board receives management accounts and 12 month forward cash flow forecasts on a regular basis. The Board reviews forecasts for a period not less than the 12 months following the date the financial statements are to be issued. If solvency and liquidity issues present significant and material risks and uncertainties to YMT then the forecast period under review will be extended.

The Board reviews and scrutinises the budget and budget forecasts in a separate meeting each year. In setting the 2023/24 budget the Board looked at a range of scenarios which stress test the robustness of the budget. Management examine the monthly management accounts each month to ensure YMT is trading to plan and are aware of the measures needed to reduce outgoings if we do not remain on track. In the current financial climate YMT have been unable to set a balanced budget, and have forecast a loss for the year of £0.3m. The Board considers future years look equally challenging and have asked for a review of YMT’s business model to improve its sustainability in the longer term.

On 26 September 2023 YMT confirmed the existence of RAAC in the roof construction in part of the York Castle Museum (YCM). This has resulted in the partial closure of the site. We are continuing to welcome visitors at YCM and our retail and café concession remain fully open. However our revenues will be impacted and there are inspection and potential remedial work costs. We have informed CYC and we confirm we would be able to draw on their letter of credit if the impact on cash and reserves proves to be significant. Trustees have considered the financial impact of RAAC in forming a view on going concern.

In order to ensure that YMT maintains a positive reserves position YMT has in place a Letter of Credit from City of York Council dated 19 September 2023 for £1m which expires on 31 March 2025.

In conclusion the Board considers York Museums Trust to be a going concern, and as such, the financial statements have been prepared on a going concern basis.

YORK MUSEUMS AND GALLERY TRUST

Public Benefit

YMT provides public benefit as a charity by making available its Collections, Buildings and Gardens to all members of the public. Our Trustees have complied with their duty in accordance with the UK Charities Act 2011 to follow the Charity Commission’s guidance on the operation of this public benefit. YMT has free access to our gardens and, where we charge for access at our other sites we have a range of free entry and substantial discounts for those on lower incomes, younger people, and free entry for York’s children.

Structure, Governance and Management

Constitution

The charity was formed as a company limited by guarantee on 26 February 2002. The company registration number is 04381647.

The charity registered with the Charity Commission on 14 June 2002 – registration number 1092466. It is governed by the Memorandum and Articles of Association dated 26 February 2002.

The charity has a trading subsidiary, York Museums and Enterprises Limited, a company limited by shares, registered company number 04466798.

Governance Code

The Charity Governance Code, endorsed by the Charity Commission and other industry bodies, was launched in 2017. The Trustees have ensured we are compliant with the code. The code asks charities to "apply or explain". We have no matters to report. In 2021 under the chair of the Audit and Risk Committee the board set up a “Good Governance Group”. The group consisted of members of the board and there was a work plan that covered the 2022/23 period and regular reports were made back to the board on areas for improvement which the board then adopted. Several task and finish groups worked on the planned activity. The purpose of the group was to ensure that YMT adopts the Governance Code and actively uses its principles.

Organisational Purpose: Trustees reviewed and revised the vision and mission of the organisation in 2019/20. The Board considers and revises the priorities for the organisation in this context as part of the strategic planning conversation each year. The Board met in November 2021 to consider the outcomes to be achieved and these were identified in the 2022/23 Business Plan. Trustees have updated the mission, vision and priorities in 2023 and these are reflected in this report.

Leadership: The Board meets six times each year, four times to examine quarterly performance and twice for workshops / deeper dives into strategic issues. We have an annual strategic Board away day to consider areas of change and to review performance against our objectives and priorities. Communication between board members and the committees, as well as communication across the wider organisation and with key stakeholders has been and remains a priority for the Trustees. In the period under review the Board established a private pre meeting, in person, at each Board to enable matters of strategic importance to be considered.

Integrity: All trustees complete annual declarations of interest and are required to advise of any changes during the course of the year. The Board receives an annual safeguarding report, and the Audit and Risk Committee reviews risks at each meeting. The Audit and Risk Committee also reviews the annual health, safety and wellbeing report.

Decision Making, Risk and Control: The terms of reference for the board and the board sub groups are reviewed and updated each year and the work of each is reported to the quarterly board meetings. The board receives a CEO report each quarter which includes the financial position and monitors performance against KPI’s. One of the Board members has been appointed as the Senior Independent Board Member and the Audit committee reviews key policies such as Whistleblowing and their effectiveness.

Board Effectiveness: In considering nominations and appointments the nominations committee ensures that the board has the right skill sets and experience. Training is highlighted and offered to Board members where

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appropriate. Trustees are appointed for an initial three year term which is renewable for a further period of three years. In September 2022 led by the Good Governance Group the Board agreed to undertake a Board Effectiveness Review programme. In the year under review of the board a questionnaire was completed by each Board member and the findings have been addressed and inform the Board activity for subsequent periods.

Equality, Diversity and Inclusion: The Board has this area as a standing item at each meeting. It receives regular reports on its own diversity and that of the wider organisation. The opportunity to create a more diverse and inclusive board is included in the brief for all board recruitment activity. The Good Governance Group has ensured that the YMT EDI roadmap includes trustees. EDI training offered to all staff and Trustees in 2022/23 and this included active bystander training. Trustees have also developed their own EDI Charter. One of the trustees has joined the YMT EDI change group which consists of a cross section of all staff to show visible Board leadership on this important agenda.

Openness and Accountability: Key stakeholders (City of York Council and Yorkshire Philosophical Society) are part of the board constitution. In addition the board invites representatives from ACE to attend each meeting and the papers are shared with ACE as part of the funding agreement. The Board receives regular reports on how the organisation is engaging with its audiences and the wider community and how the programme of activity is developed.

Method of election of Trustees

The Board of Trustees shall consist of two individuals nominated by the Local Authority, one individual nominated by the Yorkshire Philosophical Society and such other persons elected by the Trustees of the charity. The Trustees have the power to appoint any person to be a Trustee, but so that the total number of Trustees does not exceed the permitted maximum of fifteen at any time.

The Trustees, who are also directors under Company law, who served during the year and subsequently are listed on page 3. None of the Trustees have any financial interest in the company.

All Trustee appointments are advertised externally and the nominations committee oversees this process and ensures the range of skills, experiences and diversity of the board is appropriate to meet the needs of the charity.

Trustee induction and training

New Trustees undergo a briefing on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision-making process, the business plan and recent financial performance of the Charity. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

Organisation

The Board of Trustees administers the charity. A Chief Executive is appointed by the Trustees to manage the day to day operations of the charity. The Board meets six times per annum and there are four committees which meet as follows:

Finance and General Purposes Committee

Meets approximately six times per year, or as required, with the Chief Executive and Head of Strategy, Finance and Corporate Services to monitor and guide progress against the business plan.

Audit and Risk Committee

Meets four times per year to consider reports from external auditors, examines risk management and the internal control environment.

Remuneration Committee

Meets at least annually and sets pay of senior executives and approves annual pay increases for all staff.

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Nominations Committee

Meets annually and as required. The Nominations Committee reviews the structure, size and composition of the Board and is responsible for identifying and nominating for approval to the Board, candidates to fill board vacancies.

Pay policy for senior staff, including key management personnel

The Trustees consider that the Board of Trustees, the Chief Executive Officer and the Head of Strategy, Finance and Corporate Services comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Trust on a day-to-day basis. All Trustees give of their time freely and no Trustee received remuneration in the year. Details of Trustees’ expenses and related party transactions are disclosed in note 8 to the Financial Statements.

The pay of the senior staff is reviewed annually by the Remuneration Committee and percentage changes are normally the same as for other members of staff, taking into account general inflation and the Trust’s financial position.

Investment powers and policy

The Memorandum and Articles of Association of the charity permit the Trustees to invest the monies of the Trust not immediately required for its purposes in such investments, securities or property as may be thought fit. The Trust’s investments are presently limited to group companies and UK Banks with a credit rating of A or better.

Reserves policy

The financial impact of the cost of living crisis on the Trust is discussed on page 9. The general reserve at 31 March 2023 of £1,073,322 represents between two to three months of YMT’s operating costs. The trustees accept that at the current time it is still not appropriate to set a reserves target and that the Letter of Guarantee from CYC gives additional assurance to draw the confidence that YMT can continue to trade for the foreseeable future.

The Pension Reserve is shown as £nil as the pension fund at 31 March 2023 is in surplus by £2.9m. The Pension Fund is not managed or controlled by YMT and after consultation with the scheme’s actuary the Trustees have decided that there is insufficient evidence to support the recoverability of the plan’s surplus, and therefore have not recognised the actual pension asset position restricting the surplus to £nil, and reducing actuarial gains by the same amount. When in deficit, the Fund is shown in unrestricted reserves as a long term liability under FRS102.

Restricted funds of £202,864 were held at the year end and are held under trust law so can only be used for particular purposes, as specified or agreed with the donor. The majority of the restricted funds are gifted for use in either acquisitions of objects or to develop and produce our programme and offer.

Auditor

The Board appointed Beever and Struthers to conduct the 2021/22 and the 2022/23 audit in accordance with section 485 of the Companies Act 2006. To ensure compliance with best practice on appointing auditors an audit tender is in process in September 2023 and an appointment for the 2023/24 audit will be made at the AGM in November 2023.

Statement of disclosure to the auditor

In so far as the Trustees are aware:

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Statement of Trustees’ responsibilities

The Trustees (who are also directors of the charity for the purposes of Company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group and charity for that period.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for 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 the financial statements may differ from legislation in other jurisdictions.

The Trustees’ report, was approved by the Board and signed on its behalf by:

Signature:

Name: James Grierson

Date: 7[th] November 2023

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF YORK MUSEUMS AND GALLERY TRUST

Opinion on the financial statements

Opinion

We have audited the financial statements of York Museums and Gallery Trust (“the charitable company”) for the year ended 31 March 2023 which comprise the Consolidated Statement of Financial Activities, the Charity Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Cash Flow Statement and the Notes to the Financial Statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group and the Parent Charitable Company in accordance with the ethical requirements 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 related 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 Group and the Parent 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.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF YORK MUSEUMS AND GALLERY TRUST (continued)

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 (who are also the directors for the purposes of company law) are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Trustee’s report.

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

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF YORK MUSEUMS AND GALLERY TRUST (continued)

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ responsibilities, 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 determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group’s and the Parent 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 Group or the Parent 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 material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and addressing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

16

YORK MUSEUMS AND GALLERY TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF YORK MUSEUMS AND GALLERY TRUST (continued)

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at:

https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 Charitable 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 anyone other than the Charitable Company and the Charitable Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Sue Hutchinson FCCA (Senior Statutory Auditor) For and on behalf of

Beever and Struthers Statutory Auditor One Express 1 George Leigh Street Manchester M4 5DL

Date: 29 November 2023

17

YORK MUSEUMS AND GALLERY TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating income and expenditure account)

For the year ended 31 March 2023

Note
INCOME FROM:
Charitable Activities
Income from charitable activities
2
Funding provided by City of York Council
6
Funding provided by Arts Council England
7
Donations, Legacies and General Grants
Donations and legacies
3
Other grants receivable
5
Other Trading Activities
Income generated by subsidiary
Investments
Interest receivable
4
TOTAL INCOME
EXPENDITURE ON:
Raising Funds
Costs incurred by subsidiary
Charitable expenditure
Charitable expenditure
10
Total charitable expenditure
TOTAL EXPENDITURE
Net gains on Investments
Net (expenditure) before taxation
Taxation charge
12
Net (expenditure) after taxation
Other recognised gains/(losses):
Actuarial gain on defined benefit scheme
25
Transfer between funds
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Fund balance brought forward
Net movement in the year
Fund balance carried forward		 General
Funds
2023
£
3,231,741
306,710
-
326,123
-
1,231,423
1,940
5,097,937
980,052
4,196,652
4,196,652
5,176,704
-
(78,767)
-
(78,767)
-
(47,526)
(126,293)
1,199,615
(126,293)
1,073,322		 Designated
Funds
2023
£
18,051
-
-
-
-
-
-
18,051
-
1,729,670
1,729,670
1,729,670
-
(1,711,619)
-
(1,711,619)
2,672,000
47,031
1,007,412
2,876,922
1,007,412
3,884,334		 Restricted
Funds
2023
£
26,281
-
1,597,851
1,750
370,386
-
-
1,996,268
-
2,040,474
2,040,474
2,040,474
-
(44,206)
-
(44,206)
-
495
(43,711)
246,575
(43,711)
202,864		 Total Funds
2023
£
3,276,073
306,710
1,597,851
327,873
370,386
1,231,423
1,940
7,112,256
980,052
7,966,796
7,966,796
8,946,848
-
(1,834,592)
-
(1,834,592)
2,672,000
-
837,408
4,323,112
837,408
5,160,520		 Total funds
2022
£
1,747,849
308,910
2,021,077
280,170
685,117
599,945
93
5,643,161
430,182
6,813,393
6,813,393
7,243,575
-
(1,600,414)
-
(1,600,414)
2,441,000
-
840,586
3,482,526
840,586
4,323,112

A fully detailed Statement of Financial Activities for the year ended 31 March 2022 is shown in note 29. The notes on pages 23 to 44 form part of the accounts.

18

YORK MUSEUMS AND GALLERY TRUST

CHARITY STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating income and expenditure account)

For the year ended 31 March 2023

Note
INCOME FROM:
Charitable Activities
Income from charitable activities
2
Funding provided by City of York Council
6
Funding provided by Arts Council England
7
Donations, Legacies and General Grants
Donations and legacies
3
Other grants receivable
5
Investments
Interest receivable
4
TOTAL INCOME
EXPENDITURE ON:
Charitable expenditure
Charitable expenditure
10
Total charitable expenditure
TOTAL EXPENDITURE
Net gains on Investments
Net (expenditure) before taxation
Taxation charge
12
Net (expenditure) after taxation
Other recognised gains/(losses):
Actuarial gain on defined benefit scheme
25
Transfer between funds
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Fund balance brought forward
Net movement in the year
Fund balance carried forward		 General
Funds
2023
£
3,483,547
306,710
-
326,123
-
1,506
4,117,887
4,196,652
4,196,652
4,196,652
-
(78,765)
-
(78,765)
-
(47,526)
(126,291)
1,199,587
(126,291)
1,073,296		 Designated
Funds
2023
£
18,051
-
-
-
-
-
18,051
1,729,670
1,729,670
1,729,670
-
(1,711,619)
-
(1,711,619)
2,672,000
47,031
1,007,412
2,876,922
1,007,412
3,884,334		 Restricted
Funds
2023
£
26,281
-
1,597,851
1,750
370,386
-
1,996,268
2,040,474
2,040,474
2,040,474
-
(44,206)
-
(44,206)
-
495
(43,711)
246,575
(43,711)
202,864		 Total Funds
2023
£
3,527,879
306,710
1,597,851
327,873
370,386
1,506
6,132,206
7,966,796
7,966,796
7,966,796
-
(1,834,590)
-
(1,834,590)
2,672,000
-
837,410
4,323,084
837,410
5,160,494		 Total funds
2022
£
1,806,592
308,910
2,021,077
280,170
685,117
89
5,101,955
6,813,393
6,813,393
6,813,393
-
(1,711,437)
-
(1,711,437)
2,441,000
-
729,563
3,593,521
729,563
4,323,084

A fully detailed Statement of Financial Activities for the year ended 31 March 2022 is shown in note 29 The notes on pages 23 to 44 form part of the accounts.

19

YORK MUSEUMS AND GALLERY TRUST

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 March 2023

BALANCE SHEET - Consolidated

Note
FIXED ASSETS
Tangible fixed assets
13
CURRENT ASSETS
Stock
15
Debtors
16
Cash at bank and in hand
17
CREDITORS: falling due <1 year
18
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS: falling due >1 year
19
NET ASSETS EXCLUDING PENSION LIABILITY
Defined benefit pension scheme liability
25
NET ASSETS
FUNDS
Unrestricted Funds
General unrestricted funds
21
Designated Funds
21
Pension Fund
Programme Funds
Strategic Fund
Infrastructure Fund
Property Fund
Total Designated Funds
Restricted Funds
22		 2023
£
3,688,541
3,688,541
96,148
751,620
2,099,292
2,947,060
(1,401,755)
1,545,305
5,233,846
(73,326)
5,160,520
-
5,160,520
1,073,322
-
2,189
24,500
349,311
3,508,334
3,884,334
202,864
5,160,520		 2022
£
4,530,398
4,530,398
76,912
729,664
2,119,012
2,925,588
(1,263,337)
1,662,251
6,192,649
(26,536)
6,166,113
(1,843,000)
4,323,113
1,199,615
(1,843,000)
2,189
26,065
385,095
4,306,573
2,876,922
246,575
4,323,112

The notes on pages 23 to 44 form part of the accounts.

These financial statements of York Museums and Gallery Trust, company registered number 04381647, were approved and authorised for issue by the Board of Trustees on 7[th] November 2023 and were signed on its behalf by:

Signed:

Name:_James Grierson

Date: 7[th] November 2023

20

YORK MUSEUMS AND GALLERY TRUST

CHARITY STATEMENT OF FINANCIAL POSITION

As at 31 March 2023

BALANCE SHEET - CHARITY

Note
FIXED ASSETS
Tangible fixed assets
13
Investments
14
CURRENT ASSETS
Stock
15
Debtors
16
Cash at bank and in hand
17
CREDITORS: falling due <1 year
18
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS: falling due >1 year
19
NET ASSETS EXCLUDING PENSION LIABILITY
Defined benefit pension scheme liability
25
NET ASSETS
FUNDS
Unrestricted Funds
General unrestricted funds
21
Designated Funds
21
Pension Fund
Programme Funds
Strategic Reserve
Infrastructure Fund
Property Fund
Total Designated Funds
Restricted Funds
22		 2023
£
3,668,777
1
3,668,778
-
1,433,949
1,306,739
2,740,688
(1,248,973)
1,491,715
5,160,494
-
5,160,494
-
5,160,494
1,073,296
-
2,189
24,500
349,311
3,508,334
3,884,334
202,864
5,160,494		 2022
£
4,530,398
1
4,530,399
-
1,684,116
1,355,418
3,039,534
(1,403,849)
1,635,685
6,166,084
-
6,166,084
(1,843,000)
4,323,084
1,199,587
(1,843,000)
2,189
26,065
385,095
4,306,573
2,876,922
246,575
4,323,084

The notes on pages 23 to 44 form part of the accounts.

21

YORK MUSEUMS AND GALLERY TRUST

CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 March 2023

Net (expenditure) after taxation
Interest Receivable
Depreciation
Pension service costs
(Increase) in stocks
(Increase) in Debtors
Increase in Creditors
Net Cash Inflow from Operating Activities		 2023
£
(1,834,592)
(1,940)
877,878
829,000
(19,236)
(21,956)
185,208
14,362		 2022
£
(1,600,414)
(93)
885,062
893,000
(6,644)
(100,149)
73,231
143,992
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Receivable
Purchase of tangible fixed assets
(Decrease)/ increase in cash and cash
equivalents
Cash and cash equivalents at the start of
the year
Cash and cash equivalents at the end of
the year
27		 2023
£
1,940
(36,020)
(34,080)
(19,720)
2,119,012
2,099,292		 2022
£
93
(35,915)
(35,822)
108,170
2,010,842
2,119,012

22

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2023

NOTE 1 ACCOUNTING POLICIES

York Museums and Gallery Trust, a public benefit entity, is incorporated in England and Wales as a company limited by guarantee not having share capital. There are currently 13 Trustees who are also members of the company. Each member has undertaken to pay a contribution to the assets in the event of winding up a sum not exceeding £1. York Museums and Gallery Trust is a registered charity. The registered office is shown on page 3.

Basis of accounting

The Financial Statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) (Charities SORP (FRS102)), the Financial Reporting Standard application in the UK and Ireland (FRS102) and the Companies Act 2006. The particular accounting policies adopted are described below.

The Financial Statements are prepared under the historical cost convention.

On the grounds that the Subsidiary’s reserves are consolidated into the Charitable Company’s group accounts the Charitable Company has taken advantage of certain exemptions covered by Section 1.11 of FRS 102 as follows:

Preparation of accounts – going concern basis

The principal financial risk facing the charity and its trading subsidiary (together “the group”) is the ability to generate sufficient income from visitor numbers and external funding to cover expenditure incurred in fulfilling the objectives of the group. The Trustees have reviewed the cash position of the group and cash forecasts at the date of signing the financial statements for at least one year and are satisfied that the group will be able to meet all of its financial commitments.

In setting a budget for 2023/24 management and trustees have run through different options and visitor scenarios. This has resulted in a prudent assessment of the likely income and therefore of the financial needs for the year which predict a small but affordable loss in 2023/24.

We continue to operate tight financial controls over each item of expenditure in the Trust as well as a pay and recruitment freeze. We have put together cash flows and budgets to cover the subsequent financial years 2024/25 and 2025/26. The financial guarantee given by CYC that extends to March 2025 provides the trust with a large amount of financial headroom and security. This has enabled management and Trustees to conclude that the going concern basis is appropriate.

As a consequence, the Trustees believe that the group is well placed to manage its financial risks successfully despite the current uncertain economic outlook. After making enquiries, the Trustees have a reasonable expectation that the group has adequate reserves to continue in operational existence for the foreseeable future. Accordingly, the Trustees continue to adopt the going concern basis in preparing the financial statements.

Basis of consolidation

These financial statements consolidate the results of the charity and its wholly-owned subsidiary undertaking, York Museums and Enterprises Limited, drawn up to 31 March each year and consolidated on a line by line basis. The results of the subsidiary undertaking are disclosed in note 14.

23

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

Income

Income is recognised in the statement of financial activities when there is evidence of entitlement, receipt is probable and its amount can be measured reliably.

Income from admission fees, commercial activities and interest receivable is included in the period in which the group is entitled to receipt.

Income from donations, legacies and grants, including capital grants, is included in income when these are receivable, except as follows:

When donors specify that donations and grants, including capital grants, are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in income of restricted funds when received.

Gift Aid from Subsidiary

Gift aid income received from York Museums and Enterprises Limited is recorded on an accrual basis, under the agreed deed of covenant in place between the two entities.

Expenditure

Expenditure is included in the statement of financial activities on an accruals basis, inclusive of any VAT which cannot be recovered.

Charitable expenditure and support cost comprise direct expenditure including direct staff costs attributable to the activity. When support costs cannot be directly attributable they have been allocated to activities on a basis consistent with use of the resource. Fundraising costs are those incurred in seeking voluntary contributions for the Trust. Management and administration costs (support costs) are those incurred in connection with the management of the Trust’s assets, organisational administration and governance costs regarding compliance with constitutional and statutory requirements.

The method used in the analysis of support costs is allocation by head count.

Collections

York Museums and Gallery Trust are the Managing Trustees of the collections. However, City of York Council are the Custodian Trustees and so none of the collections are included in fixed assets.

Tangible fixed assets

When purchased, tangible fixed assets are initially included at the cost of acquisition, including costs that are directly attributable to bringing the asset into working condition for their intended use. Individual fixed assets costing £5,000 or more are capitalised.

Donated, functional fixed assets are included at a valuation made by the Trustees. When the use of these assets is unrestricted they are included in a designated fund reflecting their book value. The relevant fund is reduced over the useful economic life of the asset in line with its depreciation.

No value is shown in the accounts for assets occupied and used by the Trust under license from the City of York Council.

Long term exhibition equipment is capitalised as a fixed asset. Temporary exhibition costs are written off as expenditure in the year it is incurred.

24

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

Tangible fixed assets are depreciated on a straight-line basis over their estimated useful lives and depreciation is charged monthly. A full month’s depreciation is charged in the month of acquisition, none in the month of disposal. Depreciation is charged at the following rates:

Freehold Property : 4% per annum Leasehold Property Improvements : 4% - 24% per annum Displays : 12% - 36% per annum Vehicles and other equipment : 10% - 24% per annum Including: IT equipment : 36% per annum Fixtures and Fittings : 20% per annum

Depreciation is not provided on assets in the course of construction until the asset is available for use in the business and has been transferred to the appropriate asset category.

Stock

Stock is valued at the lower of cost and net realisable value. Net realisable value is based on estimated selling price. Provision is made for obsolete, slow moving or defective items where appropriate.

Financial Instruments

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

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid net of any trade discounts due. Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity held for working capital. Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Staff Costs Accounting Policy

Employee benefits – staff costs

The costs of short term employee benefits are recognised as a liability and an expense where settlement of obligations does not fall within the same period.

– Employee benefits pension costs

The charity contributes to the North Yorkshire Pension Fund, a multi-employer defined benefit scheme. For defined benefit schemes the amounts charged to operating surplus are the current service costs and gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the statement of financial activities account if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period until vesting occurs. The interest cost and the expected return on assets are shown as a net amount of other finance costs or credits adjacent to interest. Actuarial gains and losses are recognised immediately within other recognised gains and losses.

Defined benefit schemes are funded, with the assets of the scheme held separately from those of the group, in separate Trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on high quality corporate bond of currency and term to the scheme liabilities. The actuarial valuations are obtained at least triennially and are updated at each statement of financial position date. The resulting defined asset or liability, net of the related deferred tax, is presented separately after other net assets on the face of the statement of financial position.

25

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

Funds accounting

Funds held by the charity are either:

Operating leases

Rentals applicable to operating leases when substantially all the benefits and risks of ownership remain with the lessor are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Taxation

The company is a registered charity and has no liability to corporation tax on its charitable activities.

The trading subsidiary is liable to corporation tax on its taxable profits. Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Critical Accounting Estimates and Judgments

In the application of the group’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Defined benefit pension scheme

The charity is a member of a multi-employer defined benefit scheme. The Trustees use the scheme actuary to determine both the present value of the obligation under the scheme, and also the fair value of assets owned, to determine the overall deficit in the scheme attributable to the charity. The actuary uses certain critical assumptions, such as discount rate, mortality and expected rates of return when setting the deficit recovery plan for the scheme at each triennial review. Full disclosure of the assumptions used by the independent third party is provided in note 25.

FRS 102 requires that defined benefit plan surpluses are recognised only to the extent that they are recoverable either through reduced contributions in the future or through refunds from the plan. The accounting valuation of the North Yorkshire Pension Fund at 31 March 2023 identified an accounting surplus of £2.9m.

The scheme’s actuary has confirmed that they can demonstrate no economic benefit arising to York Museums and Gallery Trust from an ‘asset ceiling’ calculation comparing the present value of future service costs to the present value of future contributions. The actuary has also confirmed that any refunds from the plan are contingent on future events. Accordingly, York Museums and Gallery Trust judges that there is insufficient evidence to support the recoverability of the plan’s surplus and therefore has not recognised the pension asset position, restricting the surplus to £nil, and reducing actuarial gains by the same amount.

26

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

NOTE 2

INCOME FROM CHARITABLE ACTIVITIES

Group
Unrestricted
Funds
£
Admission Income
2,878,560
YMT Card Income
-
Miscellaneous
353,181
Consolidated
3,231,741
Gift Aided Donation
from Subsidiary
251,806
Charity
3,483,547
NOTE 3
DONATIONS AND LEGACIES
GROUP AND
CHARITY
Unrestricted
Funds
£
Gift Aid Donations
282,695
Donations and
Legacies
43,428
326,123
NOTE 4
GROUP
INTEREST
RECEIVABLE
Group
Unrestricted
Funds
£
Bank interest
1,940
1,940
CHARITY
INTEREST
RECEIVABLE
Charity
Unrestricted
Funds
£
Bank interest
1,506
1,506
NOTE 5
GRANTS RECEIVABLE
GROUP AND CHARITY
Unrestricted
Funds
£
Ruffer Art Fund
-
Art Fund
-
Arts Council England
-
Craft Potters Charitable
Trust
-
City of York Council
-
British Museum (PAS)
-
The American Art Fund
-
HMRC CJRS
-
Yorkshire Philosophical
Society
-
Headley Trust
-
University of Leeds
-
FOYAG
-
Decorative Arts Society
-
Museums Association
-
Omicron Hospital &
Leisure
-		 Group
Designated
Funds
£
-
-
18,051
18,051
-
18,051
Designated
Funds
£
-
-
-
Group
Designated
Funds
£
-
-
Charity
Designated
Funds
£
-
-
Designated
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Group
Restricted
Funds
£
-
-
26,281
26,281
-
26,281
Restricted
Funds
£
-
1,750
1,750
Group
Restricted
Funds
£
-
-
Charity
Restricted
Funds
£
-
-
Restricted
Funds
£
(495)
299,448
-
1,000
1,500
38,892
9,222
-
750
9,619
750
-
-
2,000
-		 2023
£
2,878,560
-
397,513
3,276,073
251,806
3,527,879
2023
£
282,695
45,178
327,873
2023
£
1,940
1,940
2023
£
1,506
1,506
2023
£
(495)
299,448
-
1,000
1,500
38,892
9,222
-
750
9,619
750
-
-
2,000
-		 Group
Unrestricted
Funds
£
1,493,138
-
195,047
1,688,185
58,743
1,746,928
Unrestricted
Funds
£
137,184
138,839
276,023
Group
Unrestricted
Funds
£
93
93
Charity
Unrestricted
Funds
£
89
89
Unrestricted
Funds
£
-
-
660
-
-
-
-
-
-
-
-
-
-
12,000		 Group
Designated
Funds
£
-
-
38,913
38,913
-
38,913
Designated
Funds
£
-
-
-
Group
Designated
Funds
£
-
-
Charity
Designated
Funds
£
-
-
Designated
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Group
Restricted
Funds
£
-
-
20,751
20,751
-
20,751
Restricted
Funds
£
3,969
178
4,147
Group
Restricted
Funds
£
-
-
Charity
Restricted
Funds
£
-
-
Restricted
Funds
£
(495)
219,826
-
-
-
22,617
252,052
25,256
10,000
27,500
6,200
4,000
-
-		 2022
£
1,493,138
-
254,711
1,747,849
58,743
1,806,592
2022
£
141,153
139,017
280,170
2022
£
93
93
2022
£
89
89
27
2022
£
(495)
219,826
660
-
-
22,617
252,052
25,256
10,000
27,500
6,200
4,000
-
12,000

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

Covid Emergency Grant
School for Social
Entrepreneurs
Victoria & Albert Museum		 -
-
-
-
-
-
-		 -
4,500
3,200
370,386		 -
100,000
-
-
100,000
4,500
-
-
5,500
5,500
3,200
-
-
-
-
370,386
112,660
-
572,457
685,117

NOTE 6

FUNDING PROVIDED BY CITY OF YORK COUNCIL GROUP AND CHARITY

Core funding
Cultural
Wellbeing		 Unrestricted
Funds
£
306,710
-
306,710		 Designated
Funds
£
-
-
-		 Restricted
Funds
£
-
-
-		 2023
£
306,710
-
306,710		 Unrestricted
Funds
£
306,710
-
306,710		 Designated
Funds
£
-
-
-		 Restricted
Funds
£
-
2,200
2,200		 2022
£
306,710
2,200
308,910

NOTE 7

FUNDING PROVIDED BY ARTS COUNCIL GROUP AND CHARITY

NPO Funding
Museum
Development
Cultural Recovery
Fund		 Group
Unrestricted
Funds
£
-
-
-
-		 Group
Designated
Funds
£
-
-
-
-		 Group
Restricted
Funds
£
1,252,632
345,219
-
1,597,851		 2023
£
1,252,632
345,219
-
1,597,851		 Group
Unrestricted
Funds
£
-
-
423,226
423,226		 Group
Designated
Funds
£
-
-
-
-		 Group
Restricted
Funds
£
1,252,632
345,219
-
1,597,851		 2022
£
1,252,632
345,219
423,226
2,021,077

NOTE 8

INFORMATION REGARDING TRUSTEES AND EMPLOYEES

Average number of
persons employed
2023
No.
Curatorial
25
Education
3
Gardens
5
Marketing
6
Facilities
3
Visitor Services
53
Directors and
Administrative Staff
23
Trading Subsidiary
11
129
Staff Costs During the Year
2023
£
Wages and Salaries
2,758,594
Social Security Costs
216,713
Pensions Costs
1,151,482
Staff Costs before
pension items
4,126,789
Included in the above wages & salary costs are the
2023
£
18,282		 2022
No.
23
3
6
5
3
37
24
9
110
2022
£
2,276,549
186,560
1,187,407
3,650,516
following redunda
2022
£
3,942

Included in the above wages & salary costs are the following redundancy/Ex Gratia payments:

The Redundancy & Ex Gratia payment made in 2022-23 was in relation to 1 employee (2021-22:2).

28

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

The number of employees whose emoluments as defined for taxation purposes amounted to over £60,000 (2022: £60,000) in the year was as follows:

£60,000 - £70,000
£70,001 - £80,000
£90,001 - £100,000		 2023
No.
1
-
-
1		 2022
No.
-
1
1
2

The key management personnel of the parent charity and the group comprise of the Chief Executive and the Head of Strategy, Finance and Corporate Services. The total employee benefits (including pension contributions but excluding social security costs) of the key management personnel of the charity and the group were £118,463 (2022: £167,941). The total social security costs of the key management personnel of the charity and group totalled £13,748 (2022: £18,150).

No Trustee received remuneration or benefits during either year. 2 Trustees claimed expenses of £582 (2022: 2 Trustees claimed £207) in the year.

NOTE 9

NET INCOME FOR THE YEAR

Net income for the year is stated after charging:

2023 2022
£ £
Depreciation of
Owned Assets 877,878 885,062
Rentals Under
Operating Leases -
Land & Buildings 85,903 93,597
Costs of Stock
recognised as
Expenses 221,789 81,643
Auditors
Remuneration:
Fees payable for the
audit of the Charity's
Annual Accounts 15,140 13,750
Fees payable for the
audit of the Charity's
Subsidiary 5,120 4,650
Fees payable to the
Charity's auditor for
other services 2,925 2,800

NOTE 10

ANALYSIS OF TOTAL EXPENDITURE GROUP AND CHARITY

Activity
Curatorial
Education
Exhibitions and
Events
Gardens
Marketing
Premises
Visitor Services
Admissions
Museum
Development		 Activities
Undertaken
Directly 2023
£
899,000
147,716
409,717
271,755
461,678
1,700,150
1,271,276
418
400,142
5,561,852		 Support
Costs 2023
£
435,532
49,017
1,017
169,389
302,699
263,441
1,183,458
391
-
2,404,944		 Total 2023
£
1,334,532
196,733
410,734
441,144
764,377
1,963,591
2,454,734
809
400,142
7,966,796		 Activities
Undertaken
Directly
2022
£
1,021,714
90,867
380,741
243,765
394,287
1,287,636
727,409
1,060
354,453
4,501,933		 Support
Costs 2022
£
548,942
56,482
-
191,668
310,843
312,111
890,116
1,298
-
2,311,460		 Total 2022
£
1,570,656
147,349
380,741
435,433
705,130
1,599,747
1,617,525
2,358
354,453
6,813,393

29

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

NOTE 11
ANALYSIS OF SUPPORT COSTS
GROUP AND CHARITY
For the year ended 31 March 2023
Finance and Professional Fees
IT Costs
Staffing and HR
Senior Management
Admin Costs
Cleaning and Hygiene
Other Costs
Governance Costs
For the year ended 31 March 2022
Finance and Professional Fees
IT Costs
Staffing and HR
Senior Management
Admin Costs
Cleaning and Hygiene
Other Costs
Governance Costs		 Curatorial
Education
Exhibitions
and Events
Gardens
Marketing
Facilities
Visitor
Services
Admissions
Total
98,150
11,046
229
38,173
68,215
59,368
266,699
88
541,968
63,251
7,119
148
24,600
43,960
38,259
171,870
57
349,263
185,380
20,864
433
72,099
128,841
112,131
503,727
166
1,023,640
54,799
6,167
128
21,313
38,086
33,146
148,905
49
302,594
22,140
2,492
52
8,611
15,388
13,392
60,160
20
122,254
1,433
161
3
557
996
867
3,893
1
7,912
5,341
601
12
2,077
3,712
3,231
14,514
5
29,494
5,038
567
12
1,959
3,501
3,047
13,690
5
27,819
435,532
49,017
1,017
169,389
302,699
263,441
1,183,458
391
2,404,944
Curatorial
Education
Exhibitions
and Events
Gardens
Marketing
Facilities
Visitor
Services
Admissions
Total
97,911
10,074
-
34,187
55,443
55,669
158,764
231
412,278
79,578
8,188
-
27,785
45,062
45,245
129,037
188
335,083
247,612
25,478
-
86,456
140,212
140,784
401,506
585
1,042,632
81,608
8,397
-
28,494
46,211
46,400
132,328
193
343,630
25,053
2,578
-
8,748
14,187
14,245
40,624
59
105,494
1,762
181
-
615
998
1,002
2,857
4
7,419
8,680
893
-
3,031
4,915
4,935
14,075
22
36,552
6,738
693
-
2,352
3,815
3,831
10,925
16
28,371
548,942
56,482
-
191,668
310,843
312,111
890,116
1,298
2,311,460

The basis of allocation for all expenditure is as a percentage of salary expenditure.

30

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

NOTE 12
TAXATION
In respect of York Museums and Enterprises only:
United Kingdom corporation tax at 19% (2021: 19%) on the
profits of the trading subsidiary		 2023
£
-		 2022
£
-

The standard rate of tax for the year, based on the UK standard rate of corporation tax is 20% (2022: 20%). The actual tax charge for the current year differs from the standard rate for the following reasons.

Profit on ordinary activities after charitable donation
Tax on profit on ordinary activities at the standard rate
Expenses not deductible for tax purposes
capital allowances in excess of depreciation
Movement in short-term timing differences
Total current tax charge for the year		 2023
£
-
-
-
-
-
-		 2022
£
-
-
-
-
-
-

The charitable activities of York Museums and Gallery Trust are exempt from taxation under Chapter 3 of Part II of the Corporation Tax Act 2010. The profit from the taxable trading activities of the subsidiary are gifted to the parent under a deed of covenant.

NOTE 13 TANGIBLE FIXED ASSETS

Displays
Group & Charity
£
Cost
At 1st April 2022
1,159,291
Additions
-
Disposals
(147,177)
Transfers
-
At 31st March 2023
1,012,113
Accumulated depreciation
At 1st April 2022
1,090,599
Charge for year
68,692
Disposals
(147,177)
At 31st March 2023
1,012,113
Net book value
As at 31st March
2023
-
As at 1st April 2022
68,692		 Displays
£
1,159,291
-
(147,177)
-		 Property
£
10,672,268
-
-
-		 Vehicles
and Other
Equipment
£
893,123
36,021
(389,381)
-		 Total
£
12,724,682
36,021
(536,558)
-
1,012,113 10,672,268 539,763 12,224,145
6,277,145
779,818
-
7,056,963
3,615,305
4,395,123		 826,540
29,368
(389,381)
466,527
73,236
66,583		 8,194,284
877,878
(536,558)
8,535,604
3,688,541
4,530,398

31

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

TANGIBLE FIXED ASSETS

Displays
Charity
£
Cost
At 1st April 2022
1,159,291
Additions
-
Disposals
(147,177)
At 31st March 2023
1,012,113
Accumulated depreciation
At 1st April 2022
1,090,599
Charge for year
68,692
Disposals
(147,177)
At 31st March 2023
1,012,113
Net book value
At 31st March 2023
-
At 1st April 2022
68,692		 Displays
Charity
£
Cost
At 1st April 2022
1,159,291
Additions
-
Disposals
(147,177)
At 31st March 2023
1,012,113
Accumulated depreciation
At 1st April 2022
1,090,599
Charge for year
68,692
Disposals
(147,177)
At 31st March 2023
1,012,113
Net book value
At 31st March 2023
-
At 1st April 2022
68,692		 Property
£
10,672,268
-
-
10,672,268
6,277,145
779,818
-		 Vehicles
and Other
Equipment
£
771,531
15,705
(358,922)
428,314
704,948
28,815
(358,922)
374,842
53,473
66,583		 Total
£
12,603,090
15,705
(506,099)
12,618,795
8,072,692
877,326
(506,099)
1,012,113 7,056,963 8,443,919
-
68,692		 3,615,305
4,395,123		 3,668,777
4,530,398

All tangible assets owned by the Charity were used for charitable purposes.

During 2022-23 a review of the assets took place and resulted in some fully depreciated and unused/ disposed of assets with a value of £536,558 being removed from the register and shown above as disposals.

The split of freehold property and leasehold property improvements net book value as at 31 March 2023 is:

Freehold property £380,675 (2022: £402,845); leasehold property improvements £3,234,630 (2022: £4,060,971). The City of York Council has granted the charity a 25 year lease, at a peppercorn rental, over the land and buildings comprising the York Museums and Art Gallery activities.

Leasehold property improvements to the Art Gallery have been funded by grants from Arts Council England and the agreement carries various covenants, the key one being that the Art Gallery property may only be used for the purposes of an Art Gallery. The charity has granted Arts Council England first legal charge in respect of the leasehold property known as the City Art Gallery and Archive, in the event that the covenants are not complied with.

32

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

NOTE 14

INVESTMENTS HELD AS FIXED ASSETS

The charity owns 100% of the ordinary share capital of York Museums and Enterprises Limited (Company registration no. 04466798), a company registered in England and Wales. The investment in the subsidiary is £1 (2022: £1)

The registered address of York Museums and Enterprises Limited is: St Mary’s Lodge, Marygate, York, YO30 7DR

The income and expenditure of York Museums and Enterprises Limited for the year ended 31 March 2023 is summarised below:

Turnover
Cost of Sales
Gross Profit
Other Operating
Income
Administrative Expenses
Operating Profit
Interest Receivable
and Similar Income
Profit on ordinary
activities before tax
Taxation
Profit after tax
Gift aid distribution
Profit Retained for the
Financial Year
The aggregate of the
assets, liabilities and
funds was:
Assets
Liabilities
Represented by:
Called Up Share
Capital
Profit & Loss account		 2023
£
1,213,423
(461,904)
751,519
18,000
(518,148)
251,371
434
251,805
-
251,805
(251,805)
-
2023
1,061,180
1,061,146
2,122,326
1
33
34		 2022
£
451,945
(253,278)
198,667
148,000
(176,904)
169,763
4
169,767
-
169,767
(58,743)
111,024
2022
1,312,163
1,312,129
2,624,292
1
33
34

33

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

NOTE 15 STOCK

2023
Group
£
Goods for resale
96,148
96,148
NOTE 16
DEBTORS
2023
Group
£
Trade debtors
51,366
Amounts owed by subsidiary
-
Accrued income and
other debtors
542,722
Prepayments
107,823
VAT recoverable
11,213
Other Debtors
38,496
751,620
NOTE 17
CASH AND CASH EQUIVALENTS
2023
Group
£
Cash at bank and in hand
2,099,292
NOTE 18
CREDITORS: DUE <1 YR
2023
Group
£
Trade creditors
800,973
Other creditors
10,505
Amounts owed to subsidiary
-
Accruals and deferred
income
590,277
1,401,755
NOTE 19
CREDITORS: DUE >1 YR
2023
Group
£
Deferred Income
73,326
73,326
NOTE 20
Deferred Income
Opening Balance
Deferred Income Additions during the year
Deferred Income Release during the year
Closing Balance		 2023
Charity
£
-
-
2023
Charity
£
17,723
777,695
530,750
58,072
11,213
38,496
1,433,949
2023
Charity
£
1,306,739
2023
Charity
£
776,388
841
57,351
414,393
1,248,973
2023
Charity
£
-
-
2023
Group
£
202,475
243,364
(198,560)
247,279		 2022
Group
£
76,912
76,912
2022
Group
£
41,071
-
527,246
110,306
12,125
38,915
729,663
2022
Group
£
2,119,012
2022
Group
£
805,531
20,076
-
437,730
1,263,337
2022
Group
£
26,536
26,536
2023
Charity
£
9,187
21,122
(7,520)
22,789		 2022
Charity
£
-
-
2022
Charity
£
11,279
1,039,137
526,142
56,518
12,125
38,915
1,684,116
2022
Charity
£
1,355,418
2022
Charity
£
772,949
455
386,968
243,477
1,403,849
2022
Charity
£
-
-
2022
Group
£
94,263
200,227
(92,015)
202,475		 2022
Charity
£
-
9,187
-
9,187

34

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

NOTE 21

MOVEMENT IN UNRESTRICTED FUNDS

GROUP
General Unrestricted
funds
Total General Funds
Designated Pension
Fund
Designated
Programme Funds
Designated Strategic
Fund
Designated
Infrastructure Fund
Designated Property
Fund
Total Designated
Funds
Total Unrestricted
Funds		 1st April 2022
£
1,199,615
1,199,615
(1,843,000)
2,189
26,065
385,095
4,306,573
2,876,922
4,076,537		 Income
£
5,097,937
5,097,937
-
-
18,051
-
-		 Expenditure
£
(5,176,704)
(5,176,704)
(829,000)
-
(7,500)
(30,515)
(862,655)		 Other
Gains and
(Losses)
£
-
-
2,672,000
-
-
-
-
2,672,000
2,672,000		 Transfers
£
(47,526)
(47,526)
-
-
(12,116)
(5,270)
64,417
47,031
(495)		 31st March
2023
£
1,073,322
1,073,322
-
2,189
24,500
349,311
3,508,334
18,051
5,115,988		 (1,729,670)
(6,906,374)		 3,884,334
4,957,656

MOVEMENT IN UNRESTRICTED FUNDS

CHARITY
General Unrestricted
funds
Total General Funds
Designated Pension Fund
Designated
Programme Funds
Designated Strategic
Fund
Designated
Infrastructure Fund
Designated Property Fund
Total Designated
Funds
Total Unrestricted
Funds		 1st April 2022
£
1,199,587
1,199,587
(1,843,000)
2,189
26,065
385,095
4,306,573
2,876,922
4,076,509		 Income
£
4,117,887
4,117,887
-
-
18,051
-
-
18,051
4,135,938		 Expenditure
£
(4,196,652)
(4,196,652)
(829,000)
-
(7,500)
(30,515)
(862,655)
(1,729,670)
(5,926,322)		 Other
Gains and
(Losses)
£
-
-
2,672,000
-
-
-
-
2,672,000
2,672,000		 Transfers
£
(47,526)
(47,526)
-
-
(12,116)
(5,270)
64,417
47,031
(495)		 31st March
2023
£
1,073,296
1,073,296
-
2,189
24,500
349,311
3,508,334
3,884,334
4,957,630

The £47,526 transfer from the General Fund includes £50,000 which the Trustees have decided to allocate to the designated Infrastructure fund to go towards future capital expenditure.

35

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

Prior Year Comparison

MOVEMENT IN UNRESTRICTED FUNDS

GROUP
General Unrestricted
funds
Total General Funds
Designated Pension Fund
Designated
Programme Funds
Designated Strategic
Fund
Designated
Infrastructure Fund
Designated Property Fund
Total Designated
Funds
Total Unrestricted
Funds		 1st April 2021
£
1,051,098
1,051,098
(3,391,000)
2,189
501
46,734
5,133,998
1,792,422
2,843,520		 Income
£
3,335,570
3,335,570
-
-
35,564
3,349
-
38,913
3,374,483		 Expenditure
£
(3,181,821)
(3,181,821)
(893,000)
-
-
(28,985)
(863,341)
(1,785,326)
(4,967,147)		 Other
Gains and
(Losses)
£
-
-
2,441,000
-
-
-
2,441,000
2,441,000		 Transfers
£
(5,232)
(5,232)
-
-
(10,000)
363,997
35,916
389,913
384,681		 31st March
2022
£
1,199,615
1,199,615
(1,843,000)
2,189
26,065
385,095
4,306,573
2,876,922
4,076,537

MOVEMENT IN UNRESTRICTED FUNDS

CHARITY
General Unrestricted
funds
Total General Funds
Designated Pension Fund
Designated
Programme Funds
Designated
Restructure Fund
Designated
Infrastructure Fund
Designated Property Fund
Total Designated
Funds
Total Unrestricted
Funds		 1st April 2021
£
1,162,093
1,162,093
(3,391,000)
2,189
501
46,734
5,133,998		 Income
£
2,794,365
2,794,365
-
-
35,564
3,349
-		 Expenditure
£
(2,751,639)
(2,751,639)
(893,000)
-
-
(28,985)
(863,341)		 Other
Gains and
(Losses)
£
-
-
2,441,000
-
-
-
-		 Transfers
£
(5,232)
(5,232)
-
-
(10,000)
363,997
35,916
389,913
384,681		 31st March
2022
£
1,199,587
1,199,587
(1,843,000)
2,189
26,065
385,095
4,306,573
1,792,422
2,954,515		 38,913
2,833,278		 (1,785,326)
(4,536,965)		 2,441,000
2,441,000		 2,876,922
4,076,509

In 2018-19 the Charity was given a restricted fund for the Castle Transformation project from CYC. To help match costs this was enhanced by a transfer from the general fund. On completion of the project the CYC funding had been fully spent and the remainder has been transferred back to the designated infrastructure fund in 2021-22.

36

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

NOTE 22 MOVEMENT IN RESTRICTED FUNDS

Restricted funds comprise grants and donations given towards expenditure on the Trust's charitable aims

Group and charity
Friends Art Gallery
Ceramics SSN
Body Vessel Clay
Archaeology Archives
Portable Antiquities
Arts Council NPO Funding
MDY Projects
COCA - Restricted
Richard III
Ryedale Hoard
Gardens Restricted
Curatorial Restricted
Children's Play
Cultural Wellbeing
Art Fund
Headley Art Fund
MD Network Grant
TA Redevelopment
Wild Escape MDY
Capital works fund
Other Small Grants
Other Restricted Funds		 1st April 2022
Income
Expenditure
Transfers
31st Mar 2023
£
£
£
£
£
7,401
-
-
-
7,401
2,203
-
250
-
2,453
-
3,200
(3,200)
-
-
38,477
3,850
(4,493)
-
37,835
-
38,892
(38,247)
-
645
-
1,252,632
(1,252,632)
-
-
51,349
354,282
(400,142)
14,000
19,488
13,951
1,000
(156)
-
14,795
1,762
-
-
-
1,762
-
9,221
(6,286)
-
2,935
14,639
5,500
(3,885)
-
16,254
11,003
12,750
(11,682)
-
12,071
-
1,500
(256)
-
1,244
569
-
(513)
-
56
21,532
-
(13,497)
-
8,035
21,442
-
(16,014)
-
5,428
2,242
200,000
(185,026)
(14,000)
3,216
4,531
500
(3,514)
-
1,517
-
96,819
(80,537)
-
16,282
1
-
-
(1)
-
38,496
-
-
-
38,496
16,977
16,122
(20,645)
496
12,951
246,575
1,996,268
(2,040,475)
495
202,864

Purpose of Restricted Funds

Friends Art Gallery are funds given by the Friends of York Art Gallery for acquisitions and conservation at the Art Gallery Ceramics SSN fund is used to host a Symposium for the Subject Specialist Network funding from ACE

Body Vessel Clay were restricted funds received towards an acquisition for the Body Vessel Clay Exhibition Archaeology Archives fund is to receive archaeological finds

Portable Antiquities is funding the salary of the British Museum’s PAS representative

Arts Council. Year 1 funding of a 3 year grant as part of the National Portfolio Organisation (NPO) programme

MDY Projects fund is for the Museum Development Yorkshire funding from Art Council England which is administered by York Museums Trust COCA comprises donations towards the interpretation and delivery of the Centre of Ceramic Arts projects

Richard III fund is to produce a Richard III exhibition

Ryedale Hoard. Income received towards the interpretation/ running costs of the Ryedale Hoard Exhibition Gardens Restricted comprises of recharges specifically for the repairs and maintenance of the Museum Gardens

Curatorial Restricted comprises various grants and donations for collections development

Children’s Play. A Grant allocated from the Guildhall Ward Committee to provide city-centre outdoor play tools for families and children to use in Museum Gardens

Cultural Wellbeing is a grant received from CYC for cultural wellbeing activities Art Fund provided support for the Curator of Archaeology in the “Collecting Award Project” Headley Art Fund is a grant received from the Art Fund to support the Unwrapping York’s Stories project at the Castle Museum MD Network Grant fund is for supporting museums and galleries via Museum Development Network

TA Redevelopment are funds received from the Yorkshire Philosophical Society for repairs and improvements to the Tempest Anderson Hall Wild Escape. Funding from the Art Fund distributed by Museum Development Yorkshire to enable museums and arts organisations in the north of England to provide activity for schools and families, celebrating the diversity of British wildlife through heritage and art

The Capital Works Fund is for repair, maintenance and improvement works

Other small grants and restricted funds are from various sources and have been restricted for specific purposes as requested by the funder/donor

37

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

Prior Year Comparison

Restricted funds comprise grants and donations given towards expenditure on the Trust's charitable aims

Group and charity
Friends Art Gallery
Ceramics SSN
Bouts (Restricted)
Gainsborough
Archaeology Archives
Portable Antiquities
Arts Council NPO Funding
MDY Projects
COCA - Restricted
Richard III
Gardens Restricted
Curatorial Restricted
Cultural Wellbeing
Art Fund
Headley Art Fund
Capital Works Fund
MD Network Grant
TA Redevelopment
HMRC CJRS
Castle 2022
Other Small Grants
Other Restricted Funds		 1st April 2021
Income
Expenditure
Transfers
31st Mar 2022
£
£
£
£
£
8,301
9,850
(10,750)
-
7,401
15,235
-
(13,032)
-
2,203
-
(12,749)
-
12,749
-
-
45,000
(46,042)
1,042
20,921
27,350
(9,793)
-
38,477
-
22,617
(22,617)
-
-
-
1,252,632
(1,252,632)
-
-
46,083
347,719
(354,453)
12,000
51,349
25,442
4,575
(16,066)
-
13,951
8,244
1,762
(8,244)
-
1,762
6,952
9,763
(2,076)
-
14,639
11,764
-
(761)
-
11,003
-
2,200
(1,631)
-
569
-
43,064
(25,258)
3,726
21,532
-
27,500
(6,058)
-
21,442
412,108
-
-
(412,107)
1
26,339
175,000
(187,097)
(12,000)
2,242
-
13,700
(9,169)
-
4,531
-
25,257
(25,257)
-
-
-
-
(10,875)
10,875
-
42,500
-
(4,004)
-
38,496
15,118
273,439
(270,614)
(967)
16,977
639,006
2,268,678
(2,276,428)
(384,681)
246,575

NOTE 23

ANALYSIS OF ASSETS & LIABILITIES BETWEEN FUNDS

Group
Tangible Fixed Assets
Current Assets
Current Liabilities
Long Term Liabilities
Pension asset/Liability
As 31st March 2023
As 31st March 2022
Charity
Tangible Fixed Assets
Current Assets
Current Liabilities
Long Term Liabilities
Pension Liability
As 31st March 2023
As 31st March 2022		 General Funds
£
180,206
2,520,090
(1,553,648)
(73,326)
-
1,073,322
1,199,615
General Funds
£
160,443
2,313,717
(1,400,864)
-
-
1,073,296
1,199,587		 Designated
Funds
£
3,508,335
375,999
-
-
3,884,334
2,876,922
Designated
Funds
£
3,508,335
375,999
-
-
3,884,334
2,876,922		 Restricted
Funds
£
-
50,971
151,893
-
-
202,864
246,575
Restricted
Funds
£
-
50,971
151,893
-
-
202,864
246,575		 Total Funds
£
3,688,541
2,947,060
(1,401,755)
(73,326)
-
5,160,520
4,323,112
Total Funds
£
3,668,778
2,740,688
(1,248,973)
-
-
5,160,494
4,323,084

38

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

Prior Year Comparison

ANALYSIS OF ASSETS & LIABILITIES BETWEEN FUNDS

Group
Tangible Fixed Assets
Current Assets
Current Liabilities
Long Term Liabilities
Pension Liability
As 31st March 2022
As 31st March 2021
Charity
Tangible Fixed Assets
Current Assets
Current Liabilities
Long Term Liabilities
Pension Liability
As 31st March 2022
As 31st March 2021		 General Funds
£
296,185
2,309,407
(1,379,441)
(26,536)
-
1,199,615
1,051,098
General Funds
£
296,186
2,423,354
(1,519,953)
-
-
1,199,587
1,162,093		 Designated
Funds
£
4,234,213
478,504
7,205
-
(1,843,000)
2,876,922
1,792,422
Designated
Funds
£
4,234,213
478,504
7,205
-
(1,843,000)
2,876,922
1,792,422		 Restricted
Funds
£
-
137,676
108,899
-
-
246,575
639,006
Restricted
Funds
£
-
137,676
108,899
-
-
246,575
639,006		 Total Funds
£
4,530,398
2,925,588
(1,263,337)
(26,536)
(1,843,000)
4,323,112
3,482,526
Total Funds
£
4,530,399
3,039,534
(1,403,849)
-
(1,843,000)
4,323,084
3,593,521

The designated property fund relates to the net book value of assets purchased using restricted funds.

NOTE 24 COMMITMENTS

The group and charity had future minimum lease payments under non-cancellable operating leases as follows:

Group and charity Operating Lease Commitments

Leases which expire
Within one year
Two and five years
Six and ten years		 2023
Land &
Buildings
£
56,163
28,783
-
84,946
Other
£
1,585
6,340
1,978
9,903		 2022
Land &
Buildings
Other
£
£
89,750
792
288,496
198
47,500
425,746
990

NOTE 25 PENSION SCHEME

The Group contributes to the North Yorkshire Pension Fund. The scheme is a defined benefit scheme for the benefit of the employees. The assets of the scheme are fully administered by North Yorkshire County Council in a fund independent from that of the Group. The last full actuarial valuation of this scheme was carried out by a qualified independent actuary as at 31 March 2022 and updated on an approximate basis to 31 March 2023.

The plan has a gross accounting surplus at the reporting date of £2.9m. In line with FRS 102 requirements York Museums and Gallery Trust has recognised as an asset on the balance sheet to the extent that it is able to recover the surplus, either through reduced contributions in the future, or through refunds from the plan. The scheme’s actuary has confirmed that they can demonstrate no economic benefit arising to York Museums and Gallery Trust from an ‘asset ceiling’ calculation comparing the present value of future service costs to the present value of future contributions. The actuary has also confirmed that any refunds from the plan are contingent on future events. Accordingly, York Museums and Gallery Trust has not recognised the pension asset position, restricting the surplus to £nil, and reducing actuarial gains by the same amount.

The contributions made by the employer over the financial year have been £323,000 (2022 - £306,000).

39

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

Assumptions

The assets of the Scheme have been taken at market value and the liabilities have been calculated using the following principal actuarial assumptions:

2023 2022
Financial:
Rate of increase in salaries 3.95% 4.15%
Pension in payment increases 2.70% 2.90%
Discount rate 4.70% 2.70%
Inflation assumption 2.70% 2.90%
2023 2022
Years Years
Life expectancy:
Male future pensioner aged 65 in 20 years' time 23.5 23.5
Female future pensioner aged 65 in 20 years' time 26.0 25.7
Male current pensioner aged 65 22.6 21.8
Female current pensioner aged 65 25.0 23.8
The amounts recognised in the statement of financial position are as follows:
2023 2022
£'000 £'000
Present value of scheme liabilities (16,647) (23,608)
Fair value of scheme assets 19,550 21,765
Surplus not recognised (2,903) -
Surplus/ (Deficit) in the scheme - (1,843)

The assets in the scheme and the expected rate or return were:

Equities
Government Bonds
Other bonds
Property
Multi Asset Credit
Cash Asset Credit
Other
Total fair value of assets
Actuarial value of liability
Surplus not recognised
Net pension surplus/ (deficit)		 Fair value
2023
£'000
10,186
2,150
1,408
1,251
1,036
274
3,245
19,550
(16,647)
(2,903)		 Fair value
2022
£'000
12,123
3,657
1,676
1,611
-
239
2,459
21,765
(23,608)
-
- (1,843)

Movement in the deficit during the year were as follows:

Deficit in scheme at 1 April
Movement in the year:
Current service costs
Past service cost
Settlement cost
Net (loss) on assets
Contributions
Actuarial gain/(loss)
Surplus not recognised
Surplus/ (Deficit) in the scheme at 31 March		 2023
£'000
(1,843)
-
(1,106)
-
-
(46)
323
5,575
(2,903)
-		 2022
£'000
(3,391)
-
(1,121)
(10)
-
(68)
306
2,441
-
(1,843)

40

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

Analysis of the amount charged to net finance charge for the year under FRS102 in relation to the scheme:

2023
£'000
Expected return on pension scheme assets
-
Interest on pension scheme liabilities
46
Net finance loss
46
The amount recognised in the income and expenditure account are:
2023
£'000
Current service costs
1,106
Past service costs
-
Interest cost
46
Expected return on scheme assets
-
Total charge to income and expenditure account
1,152		 2022
£'000
-
68
68
2022
£'000
1,121
10
68
-
1,199

The amount recognised in the statement of financial activities are as follows:

Amount recognised during the period
Gain adjusted as fund surplus not recognised
Cumulative amount recognised		 2023
2022
£'000
£'000
5,575
2,441
(2,903)
-
2,672
2,441

Asset and liability reconciliation

Reconciliation of assets 2023 2022
£'000 £'000
Assets at the start of the year 21,765 21,467
Expected return on plan assets 589 452
Actuarial (loss)/gain on assets (2,895) (226)
Employer contributions 323 306
Member contributions 160 144
Benefits Paid (392) (378)
Settlements - -
Assets at the end of the year 19,550 21,765
Actual return on plan assets (2,306) 226
Reconciliation of liabilities 2023 2022
£'000 £'000
Liabilities at the start of the year 23,608 24,858
Current service costs 1,106 1,121
Past service costs - 10
Interest on pension liabilities 635 520
Employee contributions 160 144
Actuarial (gains)/losses due to changes in financial assumptions (10,306) -
Actuarial (gains)/losses due to changes in demographic
assumptions 180 -
Actuarial (gains)/losses due to liability experience 1,656 -
Actuarial loss/(gain) on liabilities - (2,667)
Benefits paid (392) (378)
Settlements - -
Liabilities at the end of the year 16,647 23,608

41

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

The history of experience adjustments is as follows:

Scheme liabilities
Scheme assets
Experience adjustments on scheme liabilities
Percentage of scheme liabilities
Experience adjustments on scheme assets
Percentage of scheme assets		 2023
£'000
(16,647)
19,550
2,903
(8,470)
50.9%
(2,895)
-14.8%		 2022
£'000
(23,608)
21,765
(1,843)
(2,667)
11.3%
(226)
-1.0%		 2021
£'000
(24,858)
21,467
(3,391)
5,121
7.0%
4,511
-2.7%		 2020
£'000
(18,653)
16,513
(2,140)
(1,298)
-0.2%
(453)
5.5%		 2019
£'000
(18,516)
16,153
(2,363)
42
-0.2%
892
4.8%		 2018
£'000
(17,026)
14,516
(2,510)
85
-0.5%
695
4.8%

NOTE 26 FINANCIAL INSTRUMENTS

2023
Group
£
Financial Assets
Financial asset that
are debt instruments
measured at
amortised costs
2,731,879
Financial liabilities
Financial liabilities
measured at
amortised costs
1,218,138
NOTE 27
NET DEBT RECONCILLIATION
1st April 2022
£
Cash at bank and in hand
2,119,012
Net Debt
2,119,012		 2022
Group
£
2,754,106
1,067,776
Cash Flows
£
(19,720)
(19,720)		 31st Mar
2023
£
2,099,292
2,099,292

NOTE 28 RELATED PARTY TRANSACTIONS

During the year, the Trust conducted the following transactions with its subsidiary, York Museums and Enterprises Limited.

The Trust levied a management charge on York Museums and Enterprises Limited amounting to £10,500 (2022: £10,500).

The subsidiary, York Museums and Enterprises Limited, made a gift aid donation under a deed of covenant to the Trust of £251,805 in the year ended 31 March 2023 (2022: £58,743)

At 31 March 2023, York Museums and Enterprises Limited owed £720,344 to the Trust (2022: £652,170)

The amounts owed by the subsidiary comprise of Trust income received in to the subsidiary bank account, and salary and other costs that have been paid from York Museums Trust bank account and have been recharged to the subsidiary. Both were not yet transferred from the York Museums and Enterprises Ltd account as at 31 March 2023

Note 29

POST BALANCE SHEET EVENT

On 26 September 2023 YMT confirmed the existence of RAAC in the roof construction in part of the York Castle Museum (YCM). This has resulted in the partial closure of the site. We are continuing to welcome visitors at YCM and our retail and café concession remain fully open. However our revenues will be impacted and there are inspection and potential remedial work costs. We have informed CYC and we confirm we would be able to draw on their letter of credit if the impact on cash and reserves proves to be significant.

42

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

NOTE 30

2021-22 Consolidated Statement of Financial Activities

INCOME FROM:
Charitable Activities
Income from charitable activities
Funding provided by City of York Council
Funding provided by Arts Council England
Donations, Legacies and General Grants
Donations and legacies
Other grants receivable
Other Trading Activities
Income generated from subsidiary
Investments
Interest receivable
TOTAL INCOME
EXPENDITURE ON:
Raising Funds
Costs incurred by subsidiary
Charitable expenditure
Charitable expenditure
Total charitable expenditure
TOTAL EXPENDITURE
Net gains on Investments
Net income/(expenditure) before taxation
Taxation charge
Net income/(expenditure) after taxation
Other recognised gains/(losses):
Actuarial (loss)/gain on defined benefit scheme
Transfer between funds
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Fund balance brought forward
Net movement in the year
Fund balance carried forward		 General
Funds
2022
£
1,688,185
306,710
423,226
204,751
112,660
599,945
93
3,335,570
430,182
2,751,639
2,751,639
3,181,821
-
153,749
-
153,749
-
(5,232)
148,516
1,051,098
148,517
1,199,615		 Designated
Funds
2022
£
38,913
-
-
-
-
-
-
38,913
-
1,785,326
1,785,326
1,785,326
(1,746,413)
-
(1,746,413)
2,441,000
389,913
1,084,499
1,792,422
1,084,500
2,876,922		 Restricted
Funds
2022
£
20,751
2,200
1,597,851
75,419
572,457
-
-
2,268,678
-
2,276,428
2,276,428
2,276,428
(7,750)
-
(7,750)
-
(384,681)
(392,431)
639,006
(392,431)
246,575		 Total
Funds
2022
£
1,747,849
308,910
2,021,077
280,170
685,117
599,945
93
5,643,161
430,182
6,813,393
6,813,393
7,243,575
-
(1,600,414)
-
(1,600,414)
2,441,000
(0)
840,586
3,482,526
840,586
4,323,112

43

YORK MUSEUMS AND GALLERY TRUST

NOTES TO THE FINANCIAL STATEMENTS (Continued)

2021-22 Charity Statement of Financial Activities

INCOME FROM:
Charitable Activities
Income from charitable activities
Funding provided by City of York Council
Funding provided by Arts Council England
Donations, Legacies and General Grants
Donations and legacies
Other grants receivable
Investments
Interest receivable
TOTAL INCOME
EXPENDITURE ON:
Charitable expenditure
Charitable expenditure
Total charitable expenditure
TOTAL EXPENDITURE
Net gains on Investments
Net income/(expenditure) before taxation
Taxation charge
Net income/(expenditure) after taxation
Other recognised gains/(losses):
Actuarial (loss)/gain on defined benefit scheme
Transfer between funds
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Fund balance brought forward
Net movement in the year
Fund balance carried forward		 General
Funds
2022
£
1,746,928
306,710
423,226
204,751
112,660
89
2,794,365
2,751,639
2,751,639
2,751,639
-
42,727
-
42,727
-
(5,232)
37,495
1,162,093
37,494
1,199,587		 Designated
Funds
2022
£
38,913
-
-
-
-
-
38,913
1,785,326
1,785,326
1,785,326
-
(1,746,413)
-
(1,746,413)
2,441,000
389,913
1,084,499
1,792,422
1,084,500
2,876,922		 Restricted
Funds
2022
£
20,751
2,200
1,597,851
75,419
572,457
-
2,268,678
2,276,428
2,276,428
2,276,428
-
(7,750)
-
(7,750)
-
(384,681)
(392,431)
639,006
(392,431)
246,575		 Total
Funds
2022
£
1,806,592
308,910
2,021,077
280,170
685,117
89
5,101,956
6,813,393
6,813,393
6,813,393
-
(1,711,437)
-
(1,711,437)
2,441,000
(0)
729,563
3,593,521
729,563
4,323,084

44