**Company Number 04766258**
# **Charity Number 1100096**
## **THE HERMITAGE FOUNDATION UK**
**(A COMPANY LIMITED BY GUARANTEE)**
## **REPORT AND ACCOUNTS**
**FOR THE YEAR ENDED**
**31 OCTOBER 2023**
**THE HERMITAGE FOUNDATION UK**
**TABLE OF CONTENTS**
Pages
- 3 Reference and administrative information 4 - 7 Trustees Annual Report
- 8 Independent Examiner’s Report
- 9 Statement of Financial Activities 10 Balance Sheet
- 11 - 14 Notes to the Accounts
2
**THE HERMITAGE FOUNDATION UK REFERENCE AND ADMINISTRATIVE INFORMATION**
DIRECTORS Prof. Brian Allen The Marquess of Cholmondeley, KCVO Caroline De Guitaut, LVO Adrian Sassoon Guy Vesey Christopher Jones Jonathan Yarker COMPANY SECRETARY Janice Sacher REGISTERED OFFICE 5A Bloomsbury Square London WC1A 2TA EXAMINER Accountability Europe Ltd Omnibus Workspace 39-41 North Road London N7 9DP BANKERS Barclays Bank plc Leicester LE87 2BB CAF Bank 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Virgin Money Charity Deposit UK.virginmoney.com On-line savings account CCLA Senator House 85 Queen Victoria Street, London, EC4V 4ET REGISTERED NUMBER 04766258 (Incorporated in England and Wales) CHARITY NUMBER 1100096
3
**THE HERMITAGE FOUNDATION UK**
**04766258**
**TRUSTEES ANNUAL REPORT (incorporating Director’s report)**
The Directors, who are also the Trustees for the purpose of charity law, (and throughout this report are collectively referred to as directors) present their report and accounts for the year ended 31 October 2023.
The directors and members of the foundation were deeply shocked by events in the Ukraine and suspended all activities with effect from March 2022. The situation was reviewed at the regular Trustee meetings, but the Trustees did not undertake any new activities in the year ended 31 October 2023
Some progress was made in the UK on the English translation of catalogues.
The accounts comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice 'Accounting and Reporting by Charities'.
## **Constitution**
The Hermitage Foundation UK is a private company limited by guarantee and a registered charity governed by its Memorandum and Articles of Association. Its charity number is 1100096 and its company number is 4766258.
The company was incorporated on 15 May 2003 and commenced its charitable activities on that date.
## **Objects of the charitable company**
The purpose of The Hermitage Foundation UK ('The Foundation') is to support the State Hermitage Museum in St Petersburg and promote Russian culture through fundraising and any other practical activities which are considered advantageous to the Museum.
The Trustees deemed inaction was the appropriate course for the year ending 31st October 2023.
## **Organisation and operational control**
The day to day operation of the charity is under the control of the Director, Guy Vesey and the Chief Executive, Janice Sacher.
Accounts are maintained, with four Banks, Barclays Bank, CAF Bank, CCLA and a charity savings account with Virgin Money.
The Directors meet regularly to oversee the Charity’s operations.
## **Financial Review**
The total income generated and net surplus for the year are shown on page 9 of the accounts. The accumulated funds as shown in note 9 to the accounts are held to enable the charity to continue to carry out its objects and are considered adequate for that purpose.
4
**THE HERMITAGE FOUNDATION UK**
**04766258**
**TRUSTEES REPORT (CONTINUED)**
## **Risk Management**
The Board of Directors is responsible for safeguarding the assets of the Foundation and for taking reasonable steps for the detection of fraud and other irregularities and for ensuring the Foundation’s efficient operation. The Foundation applies a risk management cycle to identify, analyse, control and monitor the strategic and operational risks it faces. A risk management policy sets out how this is done.
The key areas of risk are:
Governance and Management Operational Financial Environmental and External Compliance with Law and Regulation
The Directors are satisfied that the systems in place are sufficient to mitigate these risks.
## **Fundraising**
Funds are raised by appeals to charitable foundations and corporations. No professional fundraisers are involved.
## **Volunteers**
The Directors recognise the significance of volunteers to the Charitable activities.
## **Investments**
A low risk portfolio of investments is managed by Evelyn Partners (Formerly Smith Williamson). Income from investments was £53,469 (2022 - £54,517).
5
**THE HERMITAGE FOUNDATION UK**
**04766258**
## **TRUSTEES REPORT (CONTINUED)**
## **Trustees & Directors**
The Directors who served during the year were:
Prof. Brian Allen The Marquess of Cholmondeley Mrs Caroline de Guitaut Mr Adrian Sassoon Mr Guy Vesey Christopher Jones Jonathan Yarker
## **Recruitment and Appointment of Trustees**
The recruitment of Trustees is in accordance with the Articles of Association. Trustees have the power to appoint any person but the skills mix and diversity of the Board are also considered.
## **The Public Benefit of our Work**
The Hermitage Foundation UK makes a clear and valuable contribution to the following public benefit purposes as defined in the Charities Act 2011:
- Advancing the arts, heritage or science
- Advancement of education
6
**THE HERMITAGE FOUNDATION UK**
**04766258**
**TRUSTEES REPORT (CONTINUED)**
## **Directors’ Responsibilities**
The directors are responsible for preparing the Annual Report and accounts in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.
Company law requires that the directors prepare accounts for each financial year which give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that year. In preparing those accounts, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the accounts 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 directors confirm that so far as they are aware, there is no relevant audit information of which the company’s auditor is unaware. They have taken all the steps they ought to have taken as directors in order to make themselves aware of any relevant information and to establish that the company’s auditor is aware of that information.
## **Small Company**
The charitable company is incorporated under the Companies Act 2006 as a company limited by guarantee and not having a share capital.
This Report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
This Report was approved by the Board on **12[th] June 2024**
Mrs Janice M Sacher Company Secretary
7
## **THE HERMITAGE FOUNDATION UK**
## **Independent Examiner's Report to the Members of The Hermitage Foundation UK**
I report to the charity trustees on my examination of the accounts of the Charitable Company for the year ended 31 October 2023.
## **Responsibilities and basis of report**
As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
## **Independent examiner’s statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
………………………….
Aamer Shehzad FCA Accountability Europe Ltd Omnibus Workspace 39-41 North Road London N7 9DP
Date: **24/06/2024**
8
**THE HERMITAGE FOUNDATION UK**
**Company no. 04766258**
## **STATEMENT OF FINANCIAL ACTIVITIES**
(Incorporating income and expenditure account) **FOR THE YEAR ENDED 31 OCTOBER 2023**
|**Notes**
**Funds**
**£**
Sponsorship & donations
-
Membership fees
150
Investments:
Interest receivable
1,094
Investments income
8,020
Charitable activities
**2**
(942)
**8,322**
Raising funds
-
Charitable activities:
Cost of activities in furtherance of
the charity's objects
**3**
20,000
Activity implementation costs
**4**
254
Support costs
**5**
93,721
113,975
**Net income/(expenditure) before**
**investment and other gains**
(105,653)
Net gains/ (losses) on investments
-
Other gains / (losses)
-
**(105,653)**
-
527,162
**421,509**
**Total funds carried forward**
**Unrestricted**
**Expenditure on:**
**Total expenditure**
**Net Income for the year**
**Transfers between funds**
**Total funds brought forward**
**Income from:**
**Total income**|**Restricted**
**Funds**
**£**
-
-
1,342
45,449
-
**46,791**
-
-
-
7,236
7,236
39,555
3,241
(19,170)
**23,626**
-
3,197,539
**3,221,165**|**2023** Unrestricted
**Total**
Funds
**£**
£
-
755
150
4,246
2,436
1,273
53,469
7,293
(942)
195
**55,113**
13,762
-
-
20,000
4,671
254
4,115
100,957
89,648
121,211
98,434
(66,098)
(84,672)
3,241
-
(19,170)
-
**(82,027)**
(84,672)
**-**
4,350
3,724,701
607,484
**3,642,674**
527,162|Restricted
Funds
£
-
-
11
47,224
-
47,235
-
-
-
18,816
18,816
28,419
(305,987)
43,523
(234,045)
(4,350)
3,435,934
3,197,539|2022
Total
£
755
4,246
1,284
54,517
195|
|---|---|---|---|---|
|||||60,997|
|||||-
4,671
4,115
108,464|
|||||117,250|
|||||(56,253)
(305,987)
43,523|
|||||(318,717)
-
4,043,418|
|||||3,724,701|
9
**Company no. 04766258**
## **THE HERMITAGE FOUNDATION UK**
**BALANCE SHEET AS AT 31 OCTOBER 2023**
|||**2023**|**2023**|2022|2022|
|---|---|---|---|---|---|
||**Note**|**£**|**£**|£|£|
|**Fixed Assets**||||||
|Investments|**6**||**2,742,721**||2,739,480|
||||**2,742,721**||2,739,480|
|**Current Assets**||||||
|Debtors|**7**|**640**||1,500||
|Cash at bank and in hand||**901,608**||986,817||
|||**902,248**||988,317||
|**Current Liabilities**||||||
|Creditors: amounts falling due|Creditors: amounts falling due|||||
|within one year|**8**|**(2,295)**||(3,096)||
|**Net Current Assets**|||**899,953**||985,221|
|**Net Assets**|||**3,642,674**||3,724,701|
|**Represented by the funds of the charity:**|**Represented by the funds of the charity:**|||||
|Restricted funds|**9**||**3,221,165**||3,197,539|
|Unrestricted funds:|**9**|||||
|General fund||**85,297**||268,180||
|Designated funds||**336,212**||258,982||
||||**421,509**||527,162|
||||**3,642,674**||3,724,701|
For the year ended 31 October 2023 the charitable company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.
No members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and preparation of accounts.
The financial statements have been prepared in accordance with the special provisions applicable to companies subject to the small companies regime.
Approved by the trustees on **12th June 2024** and signed on their behalf by:
……………………………..
**Mr C. Jones Director**
The attached notes form part of these financial statements.
10
**Company no. 04766258**
## **THE HERMITAGE FOUNDATION UK**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 OCTOBER 2023**
## **1 Accounting Policies**
The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charity is a public benefit entity for the purposes of FRS 102 and therefore has also prepared its financial statements in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP) and Charities Act 2011.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound.
A summary of the principal accounting policies adopted, judgements and key sources of estimation uncertainty, is set out below.
## **Going concern**
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
## **Investments**
Investments are stated at market value.
## **Income**
Income represents amounts received from membership fees, sponsorship and donations, activities in furtherance of the charity's objects and income from fund raising events in the year.
## **Expenditure**
Expenditure is allocated to particular activities where the cost relates directly to those activities. All costs relating to the managing and administering of the charity are treated as resources expended for charitable application.
## **Fund accounting**
Funds held by the charitable company are either:
Unrestricted funds — these are funds that can be used in accordance with the charitable objects at the discretion of the directors.
Designated funds — these are funds set aside by the directors out of general funds for specific purposes or projects.
Restricted funds — these are funds that can only be used for particular restricted purposes within the objects of the charitable company. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
11
**THE HERMITAGE FOUNDATION UK**
**Company no. 04766258**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 OCTOBER 2023**
|**2**
**Income from charitable activities**
21/22 Programme
Other Activities
**3**
**Charitable activities**
Other Activities
**4**
**Activity implementation costs**
Travel & Entertaining
**5**
**Support and governance costs**
Office costs
Consultancy costs
Audit & Accountancy
Director's salary
**6**
**Investments**
Market value brought forward
Net gain/(loss) on revaluation
Market value carried forward
Analysis of investments:
UK investments
Overseas investments
Alternative investments
Cash held
**7**
**Debtors**
Sundry debtors & prepayments
**8**
**Creditors: Amounts falling due within one year**
Sundry creditors & accruals
Tax & social security|**2023**
**£**
-
(942)
(942)
**2023**
**£**
20,000
20,000
**2023**
**£**
254
254
**2023**
**£**
21,287
13,000
4,725
54,709
93,721
**2023**
**£**
2,739,480
3,241
2,742,721
1,251,240
1,005,091
394,378
92,012
2,742,721
**2023**
**£**
640
640
**2023**
2,295
-
2,295|2022
£
195
-|
|---|---|---|
|||195|
|||2022
£
4,671|
|||4,671|
|||2022
£
4,115|
|||4,115|
|||2022
£
19,503
12,000
3,260
54,885|
|||89,648|
|||2022
£
3,045,467
(305,987)|
|||2,739,480|
|||1,239,035
1,192,713
173,063
134,669|
|||2,739,480|
|||2022
£
1,500|
|||1,500|
|||2022
3,096
-|
|||3,096|
12
**Company no. 04766258**
## **THE HERMITAGE FOUNDATION UK**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 OCTOBER 2023**
|**9**
**Movements in funds (current year)**
**At the start**
**of the year**
**£**
**Restricted funds:**
Hermitage International
Endowment funds
3,018,328
Hermitage Museum's funds
179,211
**Total restricted funds**
**3,197,539**
**Unrestricted funds:**
Designated funds
258,982
General funds
268,180
**Total unrestricted funds**
527,162
**Total funds**
**3,724,701**
**Movements in funds (prior year)**
At the start
of the year
£
Restricted funds:
Hermitage International
Endowment funds
3,280,888
Hermitage Museum's funds
155,046
Total restricted funds
3,435,934
Unrestricted funds:
Designated funds
365,943
General funds
241,541
Total unrestricted funds
607,484
Total funds
4,043,418|**Income/**
**Gains**
**£**
-
46,791
**46,791**
75
8,247
8,322
**55,113**
Income/
Gains
£
-
47,235
47,235
2,416
11,346
13,762
60,997|**Expenditure**
**/ Losses**
**£**
(16,026)
(7,140)
**(23,166)**
(20,000)
(93,975)
(113,975)
**(137,141)**
Expenditure
/ Losses
£
(262,560)
(18,720)
(281,280)
(900)
(97,534)
(98,434)
(379,714)|**Transfers**
**£**
-
-
**-**
97,155
(97,155)
-
**-**
Transfers
£
-
(4,350)
(4,350)
(108,477)
112,827
4,350
-|**At the**
**end of**
**the year**
**£**
3,002,303
218,862|
|---|---|---|---|---|
|||||**3,221,165**
336,212
85,297|
|||||421,509|
|||||**3,642,674**|
|||||At the
end of
the year
£
3,018,328
179,211|
|||||3,197,539
258,982
268,180|
|||||527,162|
|||||3,724,701|
The Hermitage International Endowment Fund ("HIEF") was established in July 2015. Its object is to provide support to The State Hermitage Museum of St Petersburg.
13
**THE HERMITAGE FOUNDATION UK**
**Company no. 04766258**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 OCTOBER 2023**
## **10 Analysis of Net Assets between Funds**
|**Current year**
Investments
Cash at bank
Debtors
Creditors
**Total net assets**
**Prior year**
Investments
Cash at bank
Debtors
Creditors
Total net assets|**Unrestricted**
**Funds**
**£**
-
423,164
640
(2,295)
**421,509**
Unrestricted
Funds
£
-
528,758
1,500
(3,096)
527,162|**Restricted**
**Funds**
**£**
2,742,721
478,444
-
-
**3,221,165**
Restricted
Funds
£
2,739,480
458,059
-
-
3,197,539|**2023**
**Total**
**£**
2,742,721
901,608
640
(2,295)|
|---|---|---|---|
||||**3,642,674**|
||||2022
Total
£
2,739,480
986,817
1,500
(3,096)|
||||3,724,701|
## **11 Transactions with Directors**
One (2022: 4) of the directors received reimbursement of travel and other expenses incurred in the performance of their duties as trustees. One director receives pay-rolled remuneration for his time in fulfilling his role in the charity, being Mr. Guy Vesey.
|**_Analysis of staff costs_**
Directors' salary
Employers National Insurance
Employers Pension costs
Total|**2023**
**£**
50,517
3,148
1,044
54,708|2022
£
48,695
5,052
1,138|
|---|---|---|
|||54,885|
14