OpenCharities

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

2022-09-30-accounts

CHARITY NUMBER: 1105968

THE SPEAKER’S ART FUND

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022

THE SPEAKER’S ART FUND

_____________

CONTENTS

Page
Reference and administrative details of the charity, its trustees and advisers
Trustees’ report
Independent Examiner’s Report to the Trustees of the Speaker’s Art Fund
Statement of financial activities
Balance sheet		 1
2 - 4
5
6
7
Notes to the financial statements 8 - 14

_____________

THE SPEAKER’S ART FUND

_____________

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 SEPTEMBER 2022

_____________

Trustees Rt Hon Sir Lindsay Hoyle MP, Speaker of the House of Commons Dr John Benger, Clerk of the House of Commons

Vicky Rock, Managing Director of Finance, Portfolio & Performance, House of Commons Helen Wood, Speaker’s Secretary and Chief of Staff

Charity Registered Number 1105968

Principal Office

House of Commons London SW1A 0AA

Secretary

Michelle Budge

Independent Examiner Mark Heaton FCCA FCIE DChA

KM, Chartered Accountants 1st Floor, Block C, The Wharf Manchester Road Burnley BB11 1JG

Bankers

Lloyds TSB Bank plc 25 Gresham Street London EC2V 7HN

Schroders plc 1 London Wall Place London EC2Y 5AU

1

_____________

THE SPEAKER’S ART FUND

_____________

TRUSTEES’ REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2022

_____________

The Trustees submit their annual report and the financial statements of the Speaker’s Art Fund (the charity) for the year ended 30 September 2022. The Trustees confirm that the annual report and financial statements of the charity comply with the current statutory requirements, the requirements of the charity’s governing document and the provisions of Accounting and Reporting by Charities: 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 ((FRS102) effective 1 January 2019).

Structure, Governance and Management

a. Constitution

The charity is an unincorporated charity governed by its trust deed dated 16th December 2002 as amended by Deeds of Amendment dated 25th October 2004, 13th December 2021 and 30th March 2022. It became registered as a charity with the Charity Commission on 22nd September 2004, with charity number 1105968.

b. Method of appointment or election of Trustees

The management of the charity is the responsibility of the Trustees who are appointed under the terms of the Trust deed.

The body of trustees consists of four trustees. Three are ex-officio trustees, being the Speaker of the House of Commons, the Clerk of the House of Commons and the Director of Finance of the House of Commons. Trustees are automatically appointed when holding these posts. The fourth trustee is appointed at the agreement of the exofficio members.

On the appointment of a new Trustee, the Secretary provides relevant background information about the Fund along with the relevant Charity Commission guidance to ensure the Trustee is aware of their responsibilities. The roles and responsibilities of Trustees are set out in the Charity Commission publication CC3 – The Essential Trustee: What you need to know?

c. Organisational Structure and Decision Making

The board of trustees meet no less than two times per year, and are currently:

Day-to-day operations are carried out by the Secretary of the Trust, Michelle Budge and House of Commons administrative staff. The Speaker’s Art Fund has been fortunate to benefit from the pro bono support from the finance team in the House of Commons in the preparation of the Speaker’s Art Fund`s financial statements.

Objects and Activities

a. Objects

The objects of the charity as per the trust deed are:

  1. The advancement of the education of the public in its knowledge and understanding of the constitutional and political history of the United Kingdom, with particular reference to the historical and continuing role of Parliament, through the collection and display of works of art and other related activities; and

  2. The advancement of religion in the area surrounding the Palace of Westminster, in particular but not exclusively by providing for the repair and upkeep of St Margaret's church, and by providing and maintaining furniture and fittings which contribute to the work and witness of the church.

2

_____________

THE SPEAKER’S ART FUND

_____________

The Trust Deed and objective 1 were updated on the 30[th] March 2022 to remove reference to the system of Government.

The Trustees confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity. The Trustees also confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when making those purchases, contributions and commissions set out in the review of activities and also on reviewing the Trust’s aims and objectives and in planning future activities and setting the grant making policy for the year.

b. Activities for Achieving Objects

The charity makes donations or awards grants to the House of Commons and other bodies in order that it may commission and/or fund the purchase of various works of art that relate to government, the constitution or political history of the United Kingdom or for the repair or enhancement of St. Margaret’s Church. The charity also occasionally receives donations. The charity also contributes to exhibitions which can demonstrate that they meet the objects of the charity.

Achievements and Performance

a. Review of Activities

The charity has not received new requests for funding. The Speaker’s Art Fund, therefore, did not fund any further activities during this reporting period.

The charity does not fundraise with members of the public. Income is primarily generated by donations from the House of Commons retail services, including a set annual contribution and Christmas card sale revenue, and the House of Commons banqueting and tours services, including State room hire revenue and Speaker apartment tours.

Financial Review

a. Reserves Policy

The Fund retains a general reserve to provide sufficient resources to enable the charity to continue to fund its activities. The surplus or deficit on the Fund’s activities are credited to the general reserve each year and the Trustees continue to keep the level under review. The current unrestricted fund balance of £346,086 is considered necessary to provide adequate resources for future schemes and funding the purchase art acquisitions as and when they come onto the market.

b. Financial Position

Net income before investment gains/losses for the year ended 30 September 2022 was £49,546.

Future Developments

In the coming year trustees will continue to review the purpose and focus of the Speaker’s Art Fund and the future direction of its work alongside clarification of the objectives of the fund.

The charity will continue to make donations towards the acquisition and commissioning of artwork as and when important pieces become available. There is a particular focus on identifying works of art that widen the diversity of Parliament’s current collection and ensure that these can be taken full advantage of to meet the charitable objectives.

The charity will also pilot a small grants scheme to fund activities that meet the charity’s objectives.

3

_____________

THE SPEAKER’S ART FUND

_____________

c. Investments

The Fund’s investments are managed within Schroders Personal Wealth investment account.

Trustees’ Responsibilities

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charity (Accounts and Reports) Regulations and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report was approved by the Trustees and signed on its behalf, by:

Vicky Rock - Trustee

Date: 31/03/2023

4

_____________

THE SPEAKER’S ART FUND

_____________

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE SPEAKER’S ART FUND

I report to the charity trustees on my examination of the accounts of the charity for the year ended 30 September 2022 which are set out on pages 6 to 14.

Responsibilities and basis of report

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

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

Independent examiner's statement

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

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

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

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

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

Mark Heaton FCCA DChA FCIE KM, Chartered Accountants 1st Floor, Block C, The Wharf, Manchester Road, Burnley Lancashire BB11 1JG

31[st] March 2023

5

_____________

THE SPEAKER’S ART FUND

_____________

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2022

Note
INCOME FROM:
Trading activities
2
Investments
3
TOTAL
EXPENDITURE ON:
4
Raising funds
Charitable activities
4
TOTAL
NET INCOME/(EXPENDITURE) BEFORE GAINS ON
INVESTMENTS
Net (loss)/gains on investments
5
NET INCOME/NET MOVEMENT IN FUNDS
Reconciliation of funds
Funds at 1 October
TOTAL FUNDS AT 30 September		 Restricted
Funds
2022
Unrestricted
Funds
2022
Total
Funds
2022
£
£
£
-
48,134
48,134
44
4,068
4,112
44
52,202
52,245
-
2,699
2,699
-
-
-
-
2,699
2,699
44
49,503
49,546
-
(33,300)
(33,300)
44
16,203
16,246
59,896
329,883
389,779
59,940
346,086
406,025		 Total
Funds
2021
£
26,576
3,981
30,557
2,435
-
2,435
28,122
15,776
43,898
345,881
389,779

The notes on pages 8 to 14 form part of these financial statements.

6

_____________

THE SPEAKER’S ART FUND

_____________

BALANCE SHEET AS AT 30 SEPTEMBER 2022

_____________

Note
FIXED ASSETS
Investments
5
CURRENT ASSETS
Debtors
6
Cash at bank
Creditors - amounts falling due within one year
7
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CHARITY FUNDS
Restricted funds
8
Unrestricted funds
9
TOTAL FUNDS		 2022
£
25,248
188,859
214,107
(1,200)		 £
193,119
212,907
406,025
59,940
346,086
406,025		 2021
£
6,588
175,641
182,229
(17,856)		 £
225,406
164,373
389,779
59,896
329,883
389,779

The financial statements were approved by the Trustees and signed on its behalf, by:

Vicky Rock – Trustee

Date: 31/03/2023

The notes on pages 8 to 14 form part of these financial statements.

7

_____________

THE SPEAKER’S ART FUND

_____________

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022

_____________

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of financial statements are as follows:

a. Basis of Accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – (Charities SORP (FRS 102)) and the Charities Act 2011.

The Speaker’s Art Fund meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes(s).

b. Preparation of the accounts on a going concern basis

Having considered future budgets and cash flows, the Trustees confirm that they have no material uncertainties about the entity’s ability to continue as a going concern for the foreseeable future.

c. Investments

Investments are stated at fair value

d. Funds

The different funds are defined as follows:

Restricted funds are those funds which are to be used in accordance with specific instructions imposed by the donor.

Unrestricted funds are those funds available to the charity for its general purposes.

It is the policy of the Trustees to retain unrestricted finds, amounts in which in their judgement, can help to mitigate the short-term effect of income volatility and retain funds to generate sufficient income to meet current and future operational activities of the charity.

e. Income recognition

This comprises amounts receivable from the various activities and investment income. All income is recognised once the charity has entitlement to the income; it is probable that the income will be received, and the amount of income can be measured reliably.

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

8

_____________

THE SPEAKER’S ART FUND

_____________

Investment income is credited to income when it is receivable, and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

f. Expenditure

Liabilities are recognised as expenditure as soon as there is legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required, and the amount of obligation can be measured reliably.

Expenditure is recognised on an accruals basis as a liability is incurred, inclusive of VAT, which cannot be recovered.

Charitable activities comprise mainly of the purchase of artwork and support of the development of exhibitions and projects in line with the charity’s objectives.

Governance activities comprise organisational administration and compliance with constitutional and statutory requirements. Costs include direct costs of independent examination, legal fees and other professional advice.

g. Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

h. Cash at bank and in hand

Cash at bank and in hand includes bank accounts, cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

i. Creditors and provisions

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.

j. Estimation uncertainty

In the view of the Trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.

k. Financial instruments

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

9

_____________

THE SPEAKER’S ART FUND

_____________

l. Critical accounting estimates and judgements

In the application of the charity’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.

2. TRADING ACTIVITIES

House of Commons Retail Services
Commission from Christmas card sales
House of Commons State Apartment Room Hire
Tour of Speaker’s Apartment
Other sales
Total		 2022
£
24,685
4,415
2,200
16,794
40
48,134		 2021
£
23,538
2,963
-
-
75
26,576

3.

INVESTMENT INCOME

Income from listed investments
Bank Interest
Total		 2022
£
3,978
134
4,112		 2021
£
3,859
122
3,981

4.

ANALYSIS OF EXPENDITURE

Raising funds:
Investment management costs
Governance costs (note 6)
Total		 2022
£
1,379
1,320
2,699		 2021
£
1,175
1,260
2,435

During the year the charity awarded no grants or made any purchases (2021 – nil). Governance costs comprise the independent examiner’s fees.

During the year, no Trustees received any remuneration (2021 – nil).

During the year, no Trustees received any reimbursement of expenses (2021 – nil).

10

_____________

THE SPEAKER’S ART FUND

_____________ 5. FIXED ASSET INVESTMENTS

6.

Fair value
As at 1 October 2021
Additions
Disposals
Net (loss)/gain
At 30 September 2022
Asset Classes and Values at 30 September 2022
IPS Growth Portfolio Q
IPS Income Portfolio Q
DEBTORS
Sundry debtors - HoC Retail Services
Sundry debtors – HoC Banqueting and Tours
Schroders		 2022
£
6,526
16,794
1,928
25,248		 Total
£
225,406
2,662
(1,649)
(33,300)
193,119
25,298
167,821
193,119
2021
£
6,588
-
-
6,588

DEBTORS

11

_____________

THE SPEAKER’S ART FUND

_____________

7. CREDITORS: Amounts falling due within one year

Accruals 2022
£
1,200
1,200		 2021
£
17,856
17,856

8. RESTRICTED FUNDS

The charity has one restricted fund received from the Heritage and Works of Art Trust. This fund is restricted to ‘ advancing the education of the public in its knowledge and understanding of the system of Government....through the collection and displays of works of art’ .

The movement in fund is as follows:

Balance at 1 October
Movement in fund
Balance at 30 September
Restricted funds are held in cash.		 2022
£
59,896
44
59,940		 2021
£
59,848
48
59,896

9. STATEMENT OF FUNDS - 2022

Restricted funds
Unrestricted funds
Total funds
TATEMENT OF FUNDS - 2021
Restricted funds
Unrestricted funds
Total funds		 Brought
Forward
£
59,896
329,883
389,779
Brought
Forward
£
59,848
286,033
345,881		 Income
£
44
52,202
52,245
Income
£
48
30,509
30,557		 Expenditure
£
-
(2,699)
(2,699)
Expenditure
£
-
(2,435)
(2,435)		 Gains/
(Losses)
£
-
(33,300)
(33,300)
Gains/
(Losses)
£
-
15,776
15,776		 Carried
Forward
£
59,940
346,086
406,025
Carried
Forward
£
59,896
329,883
389,779

STATEMENT OF FUNDS - 2021

12

_____________

_____________

THE SPEAKER’S ART FUND

10. CHARITABLE COMMITMENTS

The charity has no outstanding charitable commitments.

11. ANALYSIS OF NET ASSETS BETWEEN FUNDS - 2022

Fund balances at 30 September 2022
are represented by:
Investments
Bank balances
Creditors
Debtors		 Unrestricted
Restricted
Funds
Funds
Total
£
£
£
193,119
-
193,119
128,919
59,940
188,859
(1,200)
-
(1,200)
25,248
-
25,248
346,086
59,940
406,025

ANALYSIS OF NET ASSETS BETWEEN FUNDS – 2021

Fund balances at 30 September 2021
are represented by:
Investments
Bank balances
Creditors
Debtors
INANCIAL INSTRUMENTS
Financial assets measured at fair value
Financial assets measured at amortised cost
Financial assets measured at fair value include investments.		 Unrestricted
Restricted
Funds
Funds
Total
£
£
£
225,406
-
225,406
115,793
59,848
175,641
(5,856)
(12,000)
(17,856)
6,588
6,588		 Unrestricted
Restricted
Funds
Funds
Total
£
£
£
225,406
-
225,406
115,793
59,848
175,641
(5,856)
(12,000)
(17,856)
6,588
6,588
341,931
47,848
389,779
2022
2021
£
£
193,119
225,406
-
-

12. FINANCIAL INSTRUMENTS

Financial assets measured at amortised cost include sundry debtors.

13

_____________

THE SPEAKER’S ART FUND

_____________

13. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

INCOME FROM:
Other trading activities
Investments
TOTAL
EXPENDITURE ON:
Raising funds
Charitable activities
TOTAL
NET INCOME/ (EXPENDITURE) BEFORE GAINS
ON INVESTMENTS
Net gains on investments
NET INCOME/NET MOVEMENT IN FUNDS
Reconciliation of funds:
Funds at 1 October 2020
TOTAL FUNDS AT 30 September 2021		 Restricted
Funds
2021
Unrestricted
Funds
2021
Total
Funds
2021
£
£
£
-
26,576
26,576
48
3,933
3,981
48
30,509
30,557
-
2,435
2,435
-
-
-
-
2,435
2,435
48
28,074
28,122
-
15,776
15,776
48
43,850
43,898
59,848
286,033
345,881
59,896
329,883
389,779

14