OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2022-03-31-accounts

Charity registration number 1095077

Company registration number 04480767 (England and Wales)

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

LEGAL AND ADMINISTRATIVE INFORMATION

Executive Board C H Ryland Esq Capt (retd) R R Mullings Maj (retd) G E C Woodcock Lt Col (retd) R H Stephenson TD Lt Col (retd) P R H Clifford TD Cllr A S Hansdot Lt Col A H Ayres Col (retd) J F Penley OBE TD S Stilwell Esq Dr T J Brain OBE Brig J D Daniel MBE C N W Malet Esq Mrs A M Malsbury P T J Brooke BFP FCA E King (Appointed 15 July 2021) S Fenn (Appointed 15 July 2021) Secretary M. Holden Charity number 1095077 Company number 04480767 Principal address The Custom House Gloucester Docks Gloucester GL1 2HE Registered office The Custom House Gloucester Docks Gloucester GL1 2HE Independent examiner Pitt Godden & Taylor LLP Unit 3 Ambrose House Meteor Court Barnett Way Barnwood Gloucester GL4 3GG

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

CONTENTS

Page
Executive Board's report 1 - 6
Independent examiner's report 7
Statement of financial activities 8
Balance sheet 9 - 10
Notes to the accounts 11 - 23

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

EXECUTIVE BOARD'S REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

The Executive Board present their report and accounts for the year ended 31 March 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements (pages 11 to 13) and comply with the Charity 's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) " (effective 1 January 2019 ).

Objectives and activities

In summary form, the objects of the Charity as set out in the Memorandum of Association are:

Specifically, the Charity carries out these objects by:

Public Benefit Statement

In planning and supervising the Charity's activities for the current year and in planning its activities for future years, the Executive Board has kept in mind the Charity Commission's guidance on public benefit.

This year, with the abatement of the COVID-19 pandemic, the Charity has been able to return to its main activity of providing the museum which reopened to the general public on 21 May 2021. It was also able to resume the further development and delivery of educational programmes to schools and others. A major focus of the year has also been leading the organisation of and participating in various events to mark the 70 th anniversary of the Battle of the Imjin River in the Korean War.

In addition to its own fund-raising activities which results in donations direct to the Charity, in previous years we have been supported by the separate Friends of the Soldiers of Gloucestershire Museum Trust which has historically provided financial support to the Charity in carrying its activities. This year as during the previous year due to the pandemic, the Friends activities have also sadly had to be curtailed. On the positive side the Charity has benefited significantly from HM Government's various schemes to provide financial support to businesses, particularly those in the hospitality sector and through grants from the National Heritage Lottery Fund, from Gloucester City Council and also from other donors.

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

EXECUTIVE BOARD'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

To achieve the Charity's objectives now and into the future, the Executive Board had previously identified six main strategic priorities, including a Financial Sustainability Programme. The progress this year against these priorities is as set out below:

1. Caring for the Collections

The Charity does not own any historic artefacts but instead manages the collections of the Gloucestershire Regiment Museum Trust and the Royal Gloucestershire Hussars Trust. These collections have been deposited with the Charity under the terms of long-term loan agreements. The management and care of the collections is conducted under a formal Collections Management Policy and the Museum is accredited by the Arts Council. This accreditation will be due for renewal in November 2022.

Under the managerial oversight of the Museum, new items are being added to the collections each year and the Executive Board are very grateful to donors, who are often the families of soldiers who served with the regiments.

2. Displaying the Collections

The Museum displays were last refreshed in 2013/14 as a result of a significant grant from the Heritage Lottery Fund. In addition, the City of Paju in the Republic of Korea (South Korea) made a grant to the Charity of approximately £92,000 which helped to make possible the establishment of a permanent gallery in the Museum devoted to the Korean War and the Battle of the Imjin River. As a result, the Executive Board considers the Museum displays remain fit for the purpose they were originally designed for.

Looking into the future, the Executive Board are currently undertaking an ongoing review to see what changes should be made to the ways in which the Museum display the Collections. In particular this review is seeking to understand how the military involvements of the various regiments, having been deployed throughout the world over the past 300 years, can be portrayed in positive ways that nonetheless represent a full 360-degree view of history and thereby seek to engage all sectors of the British public, including those communities who historically have not engaged with heritage.

The Executive Board is also mindful that, with the current strategic pivot to the Asia / Pacific region, there is a growing focus on the Anglo / South Korean relationship and yet our Korean gallery remains the only significant museum display in the UK that addresses the events of the Korean War. In consequence, the Trustees believe that the Korean War is a subject that merits greater space in the future. As the Museum is currently constrained by available space within its galleries, any significant changes to the way the displays are configured as outlined above will result in a need to expand the building's capabilities.

3. Conducting Educational Programmes

It had not been possible to continue to deliver our Educational Programmes to schools during the pandemic. The museum reopened in May 2021 and we then started to reengage schools. However, as school timetables are organised on an academic year basis, this effectively ruled out such visits until September 2021 after which numbers started to pick up. To stimulate this trend in the forthcoming academic year (from September 2022) we have now formed partnerships with Gloucester Cathedral (within a short walk) and the National Waterways Museum (also located in Gloucester Docks) to offer joint visits and to give schools an enriched programme.

4. Developing the relationship with the Republic of Korea and its people

Due to the conspicuous role played by 1 st Battalion the Gloucestershire Regiment as part of the UN Forces during the Korean War in defending South Korea, we are in a unique position to foster this international relationship. As 2021 marked the 70 th anniversary of the Battle of Imjin River, we organised a series of events under the auspices of the Imjin 70 Committee, whose membership was drawn from our trustees and also from the wider community to represent the county at large. In late August and as part of

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

EXECUTIVE BOARD'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

the festival ‘Gloucester goes Retro’, the museum hosted a Korean village with food, stalls and cultural events, including dancing in traditional Korean costume, all organised in conjunction with the Korean Embassy and their expatriate community in the UK which is largely based in south London.

At the Gloucester History Festival in mid-September, there was a lecture by Dan Snow on the battle and the Korean War more generally and the following day there was the World Premiere of a film ‘Imjin – 70 years on’ made specially for the museum and sponsored by Babcock International with further financing from the fundraising efforts of Maurice Brisland whose great uncle had fought with the ‘Glosters’ at the Imjin River. To both Babcock International and Maurice Brisland, we offer our most grateful thanks. Discussions are ongoing as to how best to use this film.

On Saturday 25 September 2021 there was also a formal dinner at ARRC with a memorial service at Gloucester Cathedral organised by The Rifles the following day. Both these events were attended by our Royal Patron, the Duke of Gloucester and a full delegation from the Korean Government led by their Minister of Veterans Affairs who had flown to the UK specially to attend. It is also noteworthy that the service was attended by many of the expatriate Koreans and was watched over the internet by many more from South Korea itself, despite the eight-hour time difference.

Finally we should record here that the Remembrance Day commemorations at the Cenotaph in London on Sunday 14 November 2021 included a march-past by an Imjin Guard of ninety eight Gloucestershire Regiment veterans including a very small number of veterans of the Battle of the Imjin River itself.

5. Achieving Financial Sustainability

Historically the Ministry of Defence (MOD) provided support to the Charity in the form of free services and the payment of certain running costs totalling approximately £60,000 per annum. Following cuts to the UK Defence budget, support to the museum, and also to other regional military museums, was withdrawn during 2017. In its place the trustees of the Royal Gloucestershire, Berkshire and Wiltshire Regimental Trust agreed to provide the Charity with a grant of £60,000 per annum for five years.

In response to the longer-term financial challenge this posed, a new five-year Business Plan was developed and came into force on 1 November 2018. The key objective of this Plan was to achieve financial sustainability on the basis of the Charity's operations excluding grants and donations by the end of the fiveyear period. The Plan involves developing existing activity streams; visitor admissions, the shop, the café and adding new ones; educational programmes and talks, licenced bar and members' nights, room hire and two new memberships schemes, one for individuals and one for corporates. During the year and despite the pandemic, strides continued to be made towards achieving the financial objectives of the Plan which perforce has now become a seven-year one and the Charity has been able to strengthen its reserves this year, largely through the results of the Imjin 70 activities, cost savings measures and as a result of UK Government support.

The role of our Museum Director is an absolutely key one for many reasons including our achieving our goal of financial sustainability. At this point we need to record that our Museum Director of over four years, Ms. Vicki Hopson was forced to step down in November 2021 due to a major change in her family circumstances. Despite this she agreed to remain in a caretaker capacity until the appointment of her successor. Following a national trawl, the trustees appointed Mr. Matthew Holden and he started in mid-March 2022. Matthew comes to the Charity very highly recommended by his previous employers in Weston-super-Mare, where he ran the town’s museum, having previously held more junior posts in various museums including at the Imperial War Museum and the D Day Experience in Portsmouth. To Vicki Hopson we offer our most sincere thanks for the huge impact she has made as Museum Director and to note with satisfaction that she is able to continue on a strictly part time basis dealing with the planning of events. To Matthew Holden we extend our most warm welcome and note how quickly he has taken up the reins and is already proving to be a worthy successor.

Finally and despite the positive financial results for the year, we need to caution that the outlook remain uncertain. In common with other smaller museums, some momentum has inevitably been lost due to the pandemic and we also anticipate significant cost increases in the pipeline especially for utility services.

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

EXECUTIVE BOARD'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

The five-year Plan also made no assumptions about changes to the Custom House which houses the Museum. In 2018/19, the Charity was successful in obtaining a grant from the Heritage Lottery Fund under its Resilient Heritage Programme of £38,000. This grant including an architectural review of the building to;

This architectural review was completed last year and resulted in the creation of draft plans to replace the current 'glass-house' fronting to the Docks with a significantly larger structure. This would expand the current shop and café area and also add the multi-use space. In addition, use would be made of the attic floor with the archives and admin offices moving into that space, thereby freeing space on the lower floors to increase the space available to the Museum. On balance the Executive Board still believes that if such changes are made possible in future years by further grants and a fund-raising programme, the role of the Museum would be greatly enhanced.

However, with the onset of the pandemic, such plans were put on hold until its impact had dissipated, and it became clearer what the future for organisations such as ours might look like. As a result, our priorities are still focussed on regaining momentum into our normal charitable activities following the reopening and now in bedding our new Operations Director. Whilst keeping the situation under review, we are still maintaining a hold on our expansion plans.

6. Making improvements to the Corporate Structure and Governance of the Charity

Last year the Executive Board recognised this as a new strategic priority with a number of related activities. The first such activity was the creation of a wholly owned trading subsidiary The Soldiers of Gloucestershire Museum Trading Limited which started trading on 1 September 2020.

Secondly during this year and following a review of the Charity’s Articles of Association which had become outdated, an amended set of Articles were voted upon and approved by members at an Extraordinary General Meeting held on 9 September 2021.

Finally and although not a new priority, the Executive Board has formally recognised the need to have a membership that has an appropriate range of skills and where possible is also relatively diverse in terms of gender, ethnicity and age. All these factors will now be taken into account when recruiting new trustees.

Principal Risks and Uncertainties

The Executive Board has identified the major risks to which the Charity is exposed. These can be summarised as follows:

  1. As has already been noted, the coronavirus pandemic and the consequent lockdown has introduced unforeseen difficulties in achieving our five-year Business Plan. In response to the pandemic, the museum was closed to the general public between March 2020 and May 2021. In the short term the various grants received, and other cost savings measures implemented by the Executive Board, including some staff restructuring, have ensured that the Charity has continued to strengthen its financial reserves. However it remains to be seen how quickly visitor numbers will return once the museum reopens and Government assistance falls away. The medium-term outlook must therefore be seen as being uncertain.

  2. The building in which the Museum is located (the Custom House) was purchased by the Charity from the MOD in 2019. Thus the original risk of lease termination has been removed to be replaced by risks arising from the ownership of a 180 year old Grade Il listed building. To mitigate this risk and prior to the acquisition, the Charity commissioned a Condition Survey of the building from a local Chartered Surveyor to understand what plannable expenditure would be necessary in the future. As a result a sum from the reserves has also been earmarked as a building maintenance fund. This issue of building maintenance was put into further spotlight by the highly localised torrential rainstorm which occurred in

  3. 4 -

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

EXECUTIVE BOARD'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

August 2020 and the resulting water ingress. This caused the roof of one of the galleries to fall in. In the event the costs of repair were met by the Charity's insurers. The Charity therefore needs to be mindful of maintaining a suitable reserve in case of other unexpected contingencies.

  1. The five-year Business Plan being followed aims to allow the Charity to achieve Financial Sustainability by the end of the period it covers. Were this not to be achieved the Charity would continue to be dependent on grants and donations to continue to operate.

Donations and services in kind

The Executive Board recognises that donations and services in kind, including professional services, have made a vital contributor to the overall financial wellbeing of the Charity during the year. With the reopening of the Museum in May 2021, a new team of volunteers has been successfully recruited. We would like to record formally our thanks here to all individual volunteers both past and present for their support without which the museum would not be able to function.

Achievements and performance

A summary of the Charity’s main activities and achievements during the year follows:

In view of the exceptional nature of the Year, the Executive Board has concluded that providing key performance comparisons with the previous Year would be misleading. There is one exception to this which is the movement in reserves.

The main sources of income to enable the Charity to meet its objectives in the year were:

Voluntary income
Museum admission fees, archive enquiries, Imjin dinner and membership.
Other
Main areas of expenditure made by the Charity in the year were:
Shop and cafe
Staff Costs
Depreciation
Other		 £
112,877
24,481
55,771
193,129
2,431
60,840
24,810
85,583
173,664

Financial review

The Executive Board is committed to establishing revenue reserves sufficient to cover twelve months of operating costs. As at 31 March 2022, readily realisable reserves stood at £164,298 (2021 £110,983) or approximately 12 months operating costs.

The Executive Board would draw to your attention the following notes to the financial statements: note 12, Tangible fixed assets and the review of depreciation and amortisation of fixed.

Structure, governance and management

The Charity, The Soldiers of Gloucestershire Museum Ltd. (Charity number 1095077, Company number 4480767), is a company limited by guarantee. It is governed by its Memorandum and Articles of Association. The Executive Board members are both trustees of the Charity and also directors of the company for the purpose of company law. Those who served during the year and up to the date of signature of the financial statements were as follows:

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

EXECUTIVE BOARD'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

C H Ryland Esq Capt (retd) R R Mullings Maj (retd) G E C Woodcock Lt Col (retd) D R Dixon OBE (Resigned 17 December 2021) Lt Col (retd) R H Stephenson TD Lt Col (retd) P R H Clifford TD Cllr A S Hansdot Lt Col A H Ayres Col (retd) J F Penley OBE TD S Stilwell Esq Dr T J Brain OBE Brig J D Daniel MBE C N W Malet Esq Mrs A M Malsbury P T J Brooke BFP FCA E King (Appointed 15 July 2021) S Fenn (Appointed 15 July 2021)

The Executive Board of trustees of the Charity comprises: one ex officio member, four nominated members and twelve ordinary members. For the time being the ex officio member is The Rifles County Colonel for Gloucestershire. The nominated members are appointed by the trustees of The Royal Gloucestershire Hussars Trust, for a period of 4 years or, if the appointment is being made to fill a casual vacancy, the unexpired term of the appointee's predecessor. Ordinary members are appointed by the Executive Board for a period of 4 years.

Finally, the Executive Board would draw your attention to note 20 to the financial statements, giving details of

transactions with related parties.

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

.............................. C H Ryland Esq Board Member Dated: .........................

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

INDEPENDENT EXAMINER'S REPORT

TO THE EXECUTIVE BOARD OF THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

I report on the financial statements of the company for the year ended 31 March 2022, which are set out on pages 8 to 23.

Respective responsibilities of Executive Board and examiner

The Executive Board who are also the directors of The Soldiers Of Gloucestershire Museum for the purposes of company law, are responsible for the preparation of the accounts. The Executive Board consider that an audit is not required for this year under section 144(2) of the Charities Act 2011, the 2011 Act, and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

Basis of independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

Nicholas J. Bishop F.C.C.A. A.C.A Pitt Godden & Taylor LLP

Chartered Accountants Unit 3 Ambrose House Meteor Court Barnett Way Barnwood Gloucester GL4 3GG

Dated: .........................

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£
Income and endowments from:
Voluntary income
2
94,254
18,623
Incoming resources from charitable activities:
3
24,481
-
Trading activities in futherance of the charity's
objects
4
-
-
Insurance monies received
5
25,000
-
Other income
6
30,771
-
Total income
174,506
18,623
Expenditure on:
Trading activities
7
2,431
-
Charitable activities
8
149,973
14,868
Other
11
6,392
-
Total resources expended
158,796
14,868
Net gains/(losses) on investments
12
3,298
-
Net movement in funds
19,008
3,755
Fund balances at 1 April 2021
584,983
60,884
Fund balances at 31 March 2022
603,991
64,639		 Total
2022
As
£
112,877
24,481
-
25,000
30,771
193,129
2,431
164,841
6,392
173,664
3,298
22,763
645,867
668,630		 Total
2021
restated
£
157,019
1,771
36,342
-
8,235
203,367
24,682
184,922
-
209,604
8,319
2,082
643,785
645,867

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

BALANCE SHEET

AS AT 31 MARCH 2022

2022
Notes
£
£
Fixed assets
Tangible assets
13
664,442
Investments
14
58,639
723,081
Current assets
Stocks
15
8,709
Debtors
16
14,903
Cash at bank and in hand
100,522
124,134
Creditors: amounts falling due within
one year
18
(9,666)
Net current assets
114,468
Total assets less current liabilities
837,549
Creditors: amounts falling due after
more than one year
19
(168,919)
Net assets
668,630
Income funds
Restricted funds
20
64,639
Unrestricted funds
General unrestricted funds
339,642
Revaluation reserve
264,349
603,991
(General unrestricted funds include an unrealised investment
revaluation reserve (£34,540 (2021 £31,242))
668,630		 2021
as restated
£
£
684,962
55,341
740,303
12,286
1,231
125,253
138,770
(70,742)
68,028
808,331
(162,464)
645,867
60,884
320,634
264,349
584,983
645,867

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2022

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2022.

The Executive Board acknowledge their responsibilities for ensuring that the Charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements , so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Executive Board on .........................

..............................

C H Ryland Esq

Trustee

Company Registration No. 04480767

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

Company information

The Soldiers Of Gloucestershire Museum is a private charitable company limited by guarantee incorporated in England and Wales. The registered office is The Custom House, Gloucester Docks, Gloucester, GL1 2HE.

1.1 Accounting convention

The financial statements have been prepared in accordance with applicable Accounting Standards, in particular the requirements of FRS 102 (The Financial Reporting Standard applicable in the UK and Republic of Ireland), the Statement of Recommended Practice 'Accounting and Reporting by Charities' (2019), the Companies Act 2006 and the Charities Act 2011.

The financial statements are prepared in sterling , which is the functional currency of the company . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, as modified to include the revaluation of investments.

1.2 Going concern

At the time of approving the financial statements, the Executive Board have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the Executive Board continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Executive Board in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Donations, legacies, gifts and grants, museum admission fees , shop and coffee shop sales are accounted for in the period when the conditions for entitlement, certainty and measurement are met.

Investment income is accounted for when received.

Income is measured at the fair value of the consideration received or receivabl e , net of discounts, VAT and other sales related taxes.

1.5 Resources expended

Liabilities recognised as resources expended are included in the period when there is a legal or constructive obligation, committing the company to the expenditure. Their allocation is as follows:

Costs of running the shop and coffee shop are included under trading activities.

Costs of running the museum and archives and the costs of the museum redevelopment (depreciation) are included under charitable activities.

Costs of examining the accounts are included under charitable activities.

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Property Over 40 years straight line Website over 3 years straight line Fixtures and fittings Varying rates between 6 and 30 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.

The investment in the subsidiary is measured at cost.

1.8 Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/ expenditure for the year , unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9 Stocks

Stocks are stated at the lower of cost and estimated selling price.

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

1.11 Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company 's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at transaction price less impairment, unless the arrangement constitutes a financing transaction , where the transaction is measured at the present value of the future receipts discounted a m arket rate of interest.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at transaction price price less impairment, where due in one year or less, otherwise at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company ’s contractual obligations expire or are discharged or cancelled.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

2 Voluntary income

Unrestricted
Restricted
Income
Income
funds
funds
£
£
Donations and gifts
80,623
18,623
Grants receivable
13,631
-
94,254
18,623
For the year ended 31 March 2021
151,954
5,065
Grants receivable
Omicrom grant
3,232
-
Heritage Lottery Fund
-
-
National Lockdown grant
9,696
-
Fundraising grant
-
-
The Polish Association
-
-
NLHF Emergency Fund
-
-
Corona Virus Job Retention Scheme
703
-
Business Grant
-
-
Gloucetser City Council Rates Refund
-
-
13,631
-		 Total
2022
£
99,246
13,631
112,877
3,232
-
9,696
-
-
-
703
-
-
13,631		 Total
2021
£
69,253
87,766
157,019
157,019
-
3,820
-
300
945
24,400
17,487
25,000
15,814
87,766

3 Incoming resources from charitable activities:

Charitable Charitable
activities activities
2022 2021
£ £
Museum admission fees 14,332 1,771
Memberships 6,023 -
Archive enquiries 2,229 -
Other 1,897 -
24,481 1,771

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

4 Trading activities in futherance of the charity's objects

Total Unrestricted
funds
2022 2021
£ £
Shop and cafe - 36,342

5 Insurance monies received

During the year £25,000 was received in relation to the Covid business interruption claim

6 Other income

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Service charge received 22,178 8,235
Imjin dinner income 8,593 -
30,771 8,235
Trading activities
Unrestricted Total
funds
2022 2021
£ £
Shop, café and education (including costs subject to a service charge) 2,431 24,682

7 Trading activities

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

8 Charitable activities

Staff costs
Depreciation and impairment
IT running costs
Insurance
Repairs and renewals
Advertising and postage
Subscriptions
Film Commission
Travel and volunteer expenses
Heat and light
Sundry expenditure
Displays
HLF Fees/Consultants
Independent examiners fees (examination only)
Loan interest
Professional fees
Analysis by fund
Unrestricted funds
Restricted funds		 2022
£
60,840
24,810
4,241
5,082
20,865
1,674
914
4,000
1,874
13,233
10,927
3,000
-
900
6,456
6,025
164,841
149,973
14,868
164,841		 2021
£
81,371
44,045
4,732
3,748
7,411
4,648
2,869
-
(51)
7,915
9,830
-
6,792
670
7,518
3,424
184,922
150,845
34,077
184,922

The independent examiner received £3,000 (2021 £725) in respect of non examination services.

9 Executive Board

No Executive Board member received any remuneration or reimbursed expenses, during the year.

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

10 Employees

Number of employees

The average monthly number of employees during the year was:

Number of employees
The average monthly number of employees during the year was:
2022 2021
Number Number
Director 1 1
Shop staff 2 6
Cleaner 1 -
4 7
Employment costs 2022 2021
£ £
Wages and salaries 60,148 80,924
Other pension costs 692 447
60,840 81,371
There were no employees whose annual remuneration was £60,000 or more.

11 Other

Unrestricted
funds
2022
Imjin dinner costs
6,392
12
Net gains/(losses) on investments
2022
£
Revaluation of investments
3,298		 Total
£
2021
-
2021
£
8,319

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

13 Tangible fixed assets

Cost
At 1 April 2021
Additions
At 31 March 2022
Depreciation and impairment
At 1 April 2021
Depreciation charged in the year
At 31 March 2022
Carrying amount
At 31 March 2022
At 31 March 2021		 Property
Fixtures and
fittings
£
£
787,753
606,514
-
4,290
787,753
610,804
174,834
534,471
17,733
7,077
192,567
541,548
595,186
69,256
612,919
72,043		 Total
£
1,394,267
4,290
1,398,557
709,305
24,810
734,115
664,442
684,962

The property in which the museum is based was owned by the Ministry of Defence (MoD) and was partly leased to the museum.

This property was since purchased by the museum thus removing the threat that the MoD could terminate the lease. This purchase was funded by a short-term loan from Ryland Ltd with C H Ryland as the settlor of the trusts from which the loan is ultimately derived.

In the light of these changes the Executive Board continue to review the depreciation and amortisation of fixed assets, in particular, their useful economic lives. With the above in mind certain assets such as display cases which are expected to last up to 20 and 30 years are now being depreciated equally over their updated expected remaining lives.

There is a profit share agreement with the MoD whereby if Customs House is let or disposed of for an amount more than £392,250 (as adjusted for inflation) the excess would be split as to 40% to the the MoD and 60% to the museum.

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

14 Fixed asset investments

Listed
investments
Other
investments
£
Cost or valuation
At 1 April 2021
55,241
100
Valuation changes
3,298
-
At 31 March 2022
58,539
100
Carrying amount
At 31 March 2022
58,539
100
At 31 March 2021
55,241
100
2022
Other investments comprise:
Notes
£
Investments in subsidiaries
24
100
15
Stocks
2022
£
Finished goods and goods for resale
8,709
16
Debtors
2022
Amounts falling due within one year:
£
Other debtors
6,660
Prepayments and accrued income
8,243
14,903
17
Loans and overdrafts
2022
£
Other loans
168,919
Payable after one year
168,919		 Total
£
55,341
3,298
58,639
58,639
55,341
2021
£
100
2021
£
12,286
2021
£
1,231
-
1,231
2021
£
162,464
162,464

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

17 Loans and overdrafts

(Continued)

In the year ending 31 March 2020 £150,000 was loaned from Ryland Limited. The principal amount of the loan will carry interest at the rate of 3.25% above the official base rate. This equates to interest of £5,164 (2021: £5,025) in the period. The agreement also states that the museum will be responsible for paying any taxes that arise on the loan, £1,291 (2021: £2,493) has been provided for in respect of this.

18 Creditors: amounts falling due within one year

Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
Creditors: amounts falling due after more than one year
Borrowings		 2022
£
1,277
4,815
2,684
890
9,666
2022
£
168,919		 2021
£
-
5,375
2,684
62,683
70,742
2021
£
162,464

19 Creditors: amounts falling due after more than one year

Although the terms of the loan of £150,000 for the purchase of the Custom House are that it is repayable in less than one year, the Charity has received a Letter of Comfort from the Lender, which has led the Executive Board to judge that this can be regarded as of longer term.

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

20 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes . Unexpended in this regard means held either as a revenue balance or as the un-depreciated portion of a fixed asset and therefore not yet charged against income.

Movement in funds Movement in funds
Balance at Incoming Resources Balance at
1 April 2021 resources expended 31 March 2022
As restated
£ £ £ £
Museum redevelopment 51,951 - (4,299) 47,652
Modern Army Display 958 - - 958
Fund Raising grant 1,856 - - 1,856
Korean Museum donation 1,594 - - 1,594
Friends re security and display case 3,025 - (344) 2,681
Polish Display 1,500 - - 1,500
Newbould Legacy - Running costs - 10,000 (10,000) -
Building Expansion Project - 7,123 - 7,123
Tills - 1,500 (225) 1,275
60,884 18,623 (14,868) 64,639
Analysis of net assets between funds
Unrestricted Restricted Total Total
income funds
funds
2022 2022 2022 2021
As restated
£ £ £ £
Fund balances at 31 March 2022 are
represented by:
Tangible assets 607,190 57,252 664,442 684,962
Investments 58,639 - 58,639 55,341
Current assets/(liabilities) 107,081 7,387 114,468 68,028
Long term liabilities (168,919) - (168,919)
(162,464)
603,991 64,639 668,630 645,867

21 Analysis of net assets between funds

22 Related party transactions

During the year ending 31 March 2020 Ryland Limited, a company ultimately owned equally by C R (No 1) Grandchildren's Settlement and C R (No 2) Grandchildren's Settlements of which Executive Board member C H Ryland is the settlor, loaned the charity £150,000. This attracted further interest and tax of £6,455 during the year leading to an amount remaining outstanding at the year end of £168,919.

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

23 Control

The trustees consider that no individual controls the charity.

24 Subsidiaries

These financial statements are separate financial statements and therefore present information about the charity as an individual undertaking and not as a group.

On 26 February 2020, a UK incorporated limited company, The Soldiers of Gloucestershire Museum Trading Limited, was incorporated with company registration number 12486073 and registered address The Customs House, Gloucester Docks, Gloucester, GL1 2HE . The company was incorporated with £100 authorised and issued ordinary share capital and is wholly owned by The Soldiers of Gloucestershire Museum. The company was formed with the intention that it undertake certain of the trading activities conducted by the museum and was dormant until 1 September 2020.

THE SOLDIERS OF GLOUCESTERSHIRE MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

25 Prior period adjustment

Changes to the balance sheet

At 31 March 2021
As previously
reported
Adjustment
As
£
£
Fixed assets
Tangible assets
671,332
13,630
Capital funds
Income funds
Restricted funds
48,570
12,314
Unrestricted funds
583,667
1,316
Total equity
632,237
13,630		 restated
£
684,962
60,884
584,983
645,867

Changes to the profit and loss account

Changes to the profit and loss account
Period ended 31 March 2021
As previously Adjustment As restated
reported
£ £ £
Charitable activities 198,552 (13,630) 184,922
Net movement in funds (11,548) 13,630 2,082

In the previous period fixed assets were over depreciated by £13,630. £12,314 of this had been allocated as restriced funds and £1,316 as unrestricted.