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2022-03-31-accounts

REGISTERED COMPANY NUMBER: 05114387 (England and Wales) REGISTERED CHARITY NUMBER: 1106238

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

FOR

SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

Fortus Audit LLP Chartered Accountants & Statutory Auditors 5&6 Manor Court Manor Garth Scarborough North Yorkshire YO11 3TU

SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

CONTENTS OF THE FINANCIAL STATEMENTS For The Year Ended 31 March 2022

Page
Report of the Trustees 1 to 9
Report of the Independent Auditors 10 to 13
Statement of Financial Activities 14
Balance Sheet 15
Cash Flow Statement 16
Notes to the Cash Flow Statement 17
Notes to the Financial Statements 18 to 27

SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

REPORT OF THE TRUSTEES For The Year Ended 31 March 2022

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2022. The trustees have adopted the provisions of 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

Objectives and aims

The Trust's charitable objectives are "To advance the education of the public in archaeology, history, natural sciences, decorative and fine arts, antiquities and related disciplines by:

Scarborough Borough Council transferred responsibility for the delivery of the Museums and Gallery Service and the management of the council's collections to the Trust on 1st January 2008 for an initial period of 30 years. During its early years the Trust focused on consolidating the position since the reopening of the Rotunda Museum in 2008 and the transfer of all management responsibilities to the Trust.

The Strategic Plan

The revised strategic plan covers the period 2017-2022.

Mission & Purpose:

Connecting communities with time, in space

"Scarborough Museums Trust cares for, develops and interprets collections, information and assets entrusted to us. We aim to understand more about the Borough's past and present in order to help shape the future, encourage participation and provide the best possible experience to our current constituents and leave an enhanced legacy for future generations"

Vision:

"By 2022 Scarborough Museums Trust will be recognised, supported and acknowledged as the most comprehensive, trusted and accessible resource on the history, heritage and culture of the Borough. Our expertise in, and development of, significant collections and information will, by 2022, secure Scarborough as a centre of excellence in geology and prehistory".

Values:

Excellence. Integrity. Challenge. Creativity

Strategic Themes:

Theme 1. Enhancing and promoting collections/heritage assets Theme 2. Enabling access, facilitating learning and raising awareness Theme 3. Engaged communities Theme 4. Audiences, visitors and stakeholders Theme 5. Positioning Scarborough Theme 6. Governance and leadership

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SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

REPORT OF THE TRUSTEES For The Year Ended 31 March 2022

OBJECTIVES AND ACTIVITIES Significant activities

Introduction from the Chair of Trustees

This year saw the Scarborough Museums Trust continue its recover from the impact of the COVID pandemic. For example, the Rotunda and Art Gallery re-opened on the 18th May 2021. Visitor figures steadily recovered during this period and the activities of the Trust began to return to semblance of normality.

The Trustees were particularly focused on the merger process with the Creative Industries Centre Trust Ltd (CIC Trust) which was brought to a conclusion just after the end of this financial period. The Trust acknowledged the support of Scarborough Borough Council throughout this period and was mindful of the local authority's own transition to become part of a single unitary authority in North Yorkshire in 2023. The merger process comprised the negotiation of a new service level agreement between the Trust and SBC and new leases for the Rotunda Museum, Scarborough Art Gallery and Woodend.

The senior management team continued to embed the recently implemented strategic themes which influence and determine the exhibition, learning and collection related programmes.

A revitalized exhibition programme was introduced at the Art Gallery and work began on conservation work at the Rotunda.

Public benefit

As a charity, and with regard to Charity Commission guidance, the trustees recognise the Trust's duty to carry out its operations for the benefit of the public. In particular the trustees consider that the work of the Trust in the last year has advanced the arts, culture and heritage of the Borough of Scarborough and its region for the benefit of a broad audience.

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SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

REPORT OF THE TRUSTEES For The Year Ended 31 March 2022

ACHIEVEMENT AND PERFORMANCE Charitable activities - Exhibition Programme Scarborough Art Gallery

Scarborough: Our Seaside Town (18th May to 12th September 2021)

An exhibition which told stories of Scarborough and celebrated the town's seaside heritage. The exhibition brought in the voices of people who work at Woodend and SMT who were invited to select objects from the collection that say something about the town and describe, in their own words, why that object was important to them.

Animal Hauntings (18th May to 12th September 2021)

An exhibition that brought together objects from across the collection to explore the relationship between humans and non-humans (animals, insects etc.) and the ways in which humans have sought to control, exploit and alter the non-human world. It looked at the traces left of animals in the collection and poses the question, 'and say the animal responded?' to shift our thinking to consider the non-human perspective.

Laughton's Legacies (18th May to 12th September 2021)

A selection of works from the three Laughton bequests, including some rarely displayed works on paper by Edward Bawden and Henri Gaudier-Brzeska, that shone a light on Laughton's three wives.

The Ant-ic Museum, Feral Practice (2nd October 2021 - 30th January 2022)

Three new sculptures brought the iconic shape of the wood ant nest into dialogue with ancient and modern human architectural forms. Audio and video works embedded into these sculptures looked intensely at the wood ant sisterhood of Broxa Forest in the North York Moors National Park, and revealed the surprisingly widespread influence of ants on human culture.

Emma Gibson: Quicksand (12th February 2022 - 2nd October 2022)

A triptych of sculptures, made using recycled plaster, cliff chalk, timber and a pioneering resin made from recycled plastic bottles. Miniscule grains of sand transformed into megalithic forms, putting this endangered - but seemingly ubiquitous - material quite literally under the microscope.

John Atkinson Grimshaw (2nd October 2021 to 24th September 2023)

Five cleaned and conserved paintings by John Atkinson Grimshaw (1836-1893) from the Scarborough Collection, a Leeds born artist best known for his nocturnal and urban landscapes.

Yorkshire Fossil Festival

The success of the 2021 Fossil Festival was the online schools programme. In 2019 SMT hosted about 450 primary school children at the Rotunda. In September 2021, the digital activities reached 1,856 people. This enabled children from hard-to-reach communities to engage with the festival, meet scientists and learn more about their dino heritage. SMT also worked with new partners including the Stephen Joseph Theatre, Scarborough 6th Form College and the Literary Trust.

The management of the Festival has evolved, and the appointment of Prof Liam Herringshaw as the Festival Director was perceived as a positive step forward. It has brought new partners, new ideas and substantially eased the pressure on SMT staff.

Collections

The management of the collection continued under Jim Middleton (Collections Manager). To support the collection team, a Collection Advisory Panel was established in October 2021 comprising the following members:

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SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

REPORT OF THE TRUSTEES For The Year Ended 31 March 2022

The Panel will provide expert advice on a variety of sub sections within the collection and areas such as acquisitions, conservation, storage, learning and interpretation.

Acquisitions

In 2021 SMT was gifted a late 16th Century Portrait of a Man by a Scarborough Resident. The painting was declined by the National Portrait Gallery in 1977. The previous owner thought, mistakenly, that the portrait may have been of Henry VII but this was disproven by the NPG. There is much overpainting, and the condition is poor. Nevertheless, the painting is a welcome addition to the collection and in due course more research and conservation work will be undertaken.

Community

Cross Lane Hospital Project

In 2021 SMT in partnership with Crescent Arts and Cross Lane Hospital, (which specialises in treating people with acute mental illness), and Hull-based artist, Luke Beech, to undertake a creative research project with current and former patients to explore how digital technology can be used to support well-being, reduce isolation and de-escalate stress. The project formed part of the warm welcome initiative we want to extend to people with diverse minds and bodies and was the first step to help us learn how we can support people who have lived experience of mental illness when they visit our venues.

The artist, patients, hospital staff, those involved from SMT and Crescent Arts, and evaluators, Leeds based Armstrong Cameron, worked together as 'co-researchers' on this project to break down hierarchies and focus on how we can all learn from each other. This project supports our access and inclusion strand and our wider strategic impacts to ensure everyone feels valued and supporting people to become active social citizens.

A Space to Be

This year also saw the emergence of the A Space to Be at Scarborough Art Gallery. The project comprised dedicating one of the ground floor spaces (Gallery A) as a space that enables our visitors to feel comfortable stepping over the threshold, is open to community use and supports our learning programme to thrive within the gallery. The project, was formally launched in February 2022, and is rooted in the principles of democracy. We worked with creative producers experienced in changing spaces into accessible and purposeful places that will appeal to different audiences, including community groups whose members may want to run a regular social get-together or visitors who simply want to enjoy being in a welcoming and comfortable space. This project is part of our 'warm welcome' and supports our access and inclusion and democratising the collection strategic themes.

Learning

Overview

The Learning Programme developed significantly during 2021/22. We worked with a wide range of education providers across Scarborough Borough Council and further afield. During the financial year 2021-22 we worked with 3,405 pupils and 34 schools in person and 38 schools remotely. (This figure excludes early years settings, e.g. nurseries and further/higher education).

Learning Team comprises:

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SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

REPORT OF THE TRUSTEES For The Year Ended 31 March 2022

SMG Learning also depends on volunteers to deliver its programme. In particular it is dependent on specialist support from the Rotunda Geology Group whose volunteers provide popular fossil handling sessions during the holidays.

Much was learnt during lockdown, particularly the introduction of online resources, which means a more comprehensive learning service is now available to both formal and informal audiences.

'Formal learning' is learning delivered by trained teachers in a school, academy, college or university with learning objectives and outcomes. This includes nursery provision, primary (including Early Years for children aged 3-5) and secondary schools (including sixth forms) and higher and further education providers. Formal education also includes provision for SEND learners (Special Educational Needs and Disabilities). Any 'formal museum' offer needs to respond to the curriculum needs of education providers otherwise it will not be relevant and useful.

SMG's principal funding source for formal learning is via the Arts Council Museums & Schools programme, funded by the Department for Education. SMG's current focus of work is Primary Schools due to a number of key factors, including primarily the relevance of the curriculum to our collection and a timetabling which facilitates school visits. The funding is restricted as it should not be used for early years education outside of school settings (0-5) and post-secondary, including universities, and so does not reflect the diversity of formal learning providers both currently and potentially engaging with SMG.

'Informal learning ' is learning which takes place outside of formal education providers/institutions for all ages, from 0 upwards. There are many debates about the nature of informal learning, but it can often happen during leisure time, as individuals, in family or friendships groups or in groups organised by community organisations. Such groups may include Scouts or Guides or a support group for those with a medical condition, e.g. Dementia.

SMG learning uses the core budget to support informal learning, primarily focusing on a well-established need for family visitors, including local families and tourists.

In 2021/22 Museums and School funding from the Arts Council was extended for a further year. A new Learning Officer was appointed. This is a funded position.

Arts Awards

An online version of the Arts Award scheme, Arts Award Discover was launched at Easter. Arts Award is an accredited qualification by Trinity College, London which encourages children and young people to have a go at making, finding out and sharing different types of art. The new resource consists of 10 video tutorials by artist Kaitlin Ferguson to inspire children to take part. There is also an SMT Arts Award Logbook and an SMT Certificate.

Schools Training

Funding was received at the end of 20/21 from Historic England to deliver training to schools in response to the new Ofsted Curriculum and to create a new digital resource about World War II. The resource was written by Andrew Wrenn, Educational Consultant and Former LA Advisor and SMT and integrate with new research relating to our collections and locality. The resource will focus on who and how we commemorate, including a section on the Caribbean RAF Service Personnel based in Filey during WW II.

Yorkshire Fossil Festival

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SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

REPORT OF THE TRUSTEES For The Year Ended 31 March 2022

The success of the 2021 Fossil Festival was the online schools programme. In 2019 we hosted about 450 primary school children at the Rotunda. In September 2021, the digital activities reached 1,856 people. This enabled children from hard-to-reach communities engage with the festival, meet scientists and learn more about their dino heritage. We also worked with new partners including the SJT, Scarborough 6th Form College and the Literary Trust.

The management of the festival evolved, and the appointment of Prof Liam Herringshaw as the Festival Director was perceived as a positive step forward. It has brought new partners, new ideas and substantially eased the pressure on SMT staff.

Fossil Festival Numbers:

Friday 10th September (Schools Day): 1,957
Saturday 11th September: 936
Sunday/Monday 12th & 13th September: 1,214
Total 4,107
Total for 2019 2,361

Rotunda Conservation

At the very end of the year (March 2022) the future of the Rotunda was considerably enhanced with the award of £256,000 from the Arts Council's MEND fund. Monies are available specifically for the conservation of the central rotunda. Work will concentrate on replacing damaged masonry. The architects, Purcell, will project manage the work, Scarborough Borough Council will provide support in areas such as procurement. Work will commence in the Spring of 2023 and it is anticipated that the venue will remain open.

Also in 2021 the Rotunda West Wing was re-opened after a two year closure due to water damage, resulting in the evacuation of the Gristhorpe Man. Although, issues persisted with the roof and water ingress, it was felt that the Gallery could be made good for the display of non-organic objects from the collection, e.g. dinosaur footprints and the plesiosaur. The conditions were still not suitable for the re-instatement of the Gristhorpe Man although the mid to long term objective is to make this possible at the earliest opportunity.

Visitor Figures (1st April 2021 to 31st March 2022)

Visitor numbers were severely reduced as result of the Covid pandemic. The venues were forced to close. In 2021/22 we saw the start of the post Covid recovery and although the 2019/20 figures were not exceeded they began to move on the right direction.

Rontunda
Annual tickets (paid) 8,281
Event ticket (paid) 40
Repeat (free) 1,448
Other (free) 198
Under 18 (free) 3,367
Fossill Festival 1,269
Total 14,603
Art Gallery
Annual tickets (paid) 3,699
Repeat (free) 2,193
Other (free) 363

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SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

REPORT OF THE TRUSTEES For The Year Ended 31 March 2022

Under 18 (free) 903
7,158
Grand Total 21,761
Previous two years:
2021/22 6,480
(seen as the Covid year, the Fossil Festival was a virtual event)
2020/21 28,681
(As a comparator, Scarborough Borough Council see 19/20 as the
first pre Covid year)

FINANCIAL REVIEW

Financial position

The Funding Agreement between Scarborough Borough Council and the Trust sets out the Contract Price paid by the Council to the Trust to manage the Museums and Gallery service. This is linked to inflation through one of the government's economic indices. Discussions with the Council over the contract price continue to progress and the the Trustees remain confident that the funding arrangements remain in place to meet the ongoing costs of managing the Museums and Gallery service.

The Finance Committee has reviewed budgets, income and expenditure and reported back to the main Board. The Chief Executive and members of the Finance Committee meet quarterly to review performance.

Financial performance in the year was satisfactory, resulting in a deficit of £45,507 and total reserves at the year end standing at £434,069.

Reserves policy

The trustees have examined the requirements for reserves in light of the main risks to the charity. Sufficient working capital is in place to ensure that the museum and gallery are able to trade. It is the policy of Scarborough Museums Trust to hold reserves equivalent to 3-6 months operating costs. Reserves are also held for the purpose of refurbishing displays and exhibitions, and for exceptional expenditure. The Trustees wish to invest surpluses, subject to compliance with the Trust's reserves policy, in order to enhance further the provision of its charitable objects.

FUTURE PLANS

The HLF Resilience project, the resulting development of the Board, associated training and team building activities and an evolving and constructive relationship with SBC have become the stimulous for moving the organisation forward. The strategic plan continues to adapt and together enable SMT to deliver services to its beneficiaries.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Scarborough Museums Trust is a charitable company limited by guarantee and which was incorporated on 28th April 2004. It is governed by its Memorandum and Articles of Association, as amended by special resolutions dated 14 January 2005, 4 March 2009, 19 May 2010, 29 July 2011 and 26 October 2012 and is registered with the Charity Commission. In the event of the company being wound up, members are required to contribute an amount not exceeding £1 each.

As set out in the Articles of Association, the number of trustees shall be not less than three but no more than fifteen.

One trustee is nominated by Scarborough Borough Council: all other trustees are appointed by the existing trustees or members of the company. Members are re-elected on retirement in accordance with the rotation system outlined in Articles 28 and 33 of the Articles of Association.

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SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

REPORT OF THE TRUSTEES For The Year Ended 31 March 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Recruitment and appointment of new trustees

The board of trustees are aware of the diverse range of skills, experience and knowledge needed and will seek to ensure that they are appropriately reflected on the trustee board.

Induction and training of new trustees

All new trustees are provided with sufficient information on the charity's activities and trustee responsibilities when being appointed to the board. Such information includes:

Key management remuneration

The trustees consider that the board along with the chief executive comprise the key management personnel of the charity and are in charge of directing and controlling, running and operating the Trust on a day to day basis. All the trustees give their time freely and none are remunerated. Details of expenses reimbursed during the year are shown in the notes to the accounts.

The pay of senior staff is reviewed annually and normally increased in accordance with average earnings. In view of the nature of the charity, the trustees benchmark against pay levels in other similar organisations in the North of England to ensure that the remuneration is fair and not out of line with that generally paid for similar roles.

Risk management

A risk register covering all aspects of the Trust's operation and context is reviewed quarterly by a Risk Management Committee. Key risks and mitigation strategies are then reported by the Board.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

05114387 (England and Wales)

Registered Charity number

1106238

Registered office

Woodend The Crescent Scarborough North Yorkshire YO11 2PW

Trustees

Mr D L Searby (resigned 10.11.22) Mr J G H L Armistead Mr J C Harris Mr A D Riley (resigned 10.11.22) Ms L E Frostick Mr B J Davidson (resigned 10.11.22) Mr J M Wallis Mr E Asquith Miss M E Woods (appointed 23.9.21) Professor J Fletcher (appointed 10.11.22)

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SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

REPORT OF THE TRUSTEES For The Year Ended 31 March 2022

REFERENCE AND ADMINISTRATIVE DETAILS Company Secretary

Mr A W Clay

Auditors

Fortus Audit LLP Chartered Accountants & Statutory Auditors 5&6 Manor Court Manor Garth Scarborough North Yorkshire YO11 3TU

Chief executive officer

Mr A W Clay

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Scarborough Museums, Culture and Creative Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

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

In so far as the trustees are aware:

AUDITORS

The auditors, Fortus Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

.................................................................... Mr A W Clay - Secretary

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

Opinion

We have audited the financial statements of Scarborough Museums, Culture and Creative Trust (the 'charitable company') for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

Matters on which we are required to report by exception

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

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

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 determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

Our 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 a Report of the Independent Auditors 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.

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

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK.

We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance. We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets.

Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above.

We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditors responsibilities. This description forms part of our Report of the Independent Auditors.

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

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 auditors' 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.

Richard Buckby FCA (Senior Statutory Auditor) for and on behalf of Fortus Audit LLP Chartered Accountants & Statutory Auditors 5&6 Manor Court Manor Garth Scarborough North Yorkshire YO11 3TU Date: .............................................

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SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) For The Year Ended 31 March 2022

Unrestricted
Restricted
funds
funds
Notes
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
115,066
75,239
Charitable activities
Rotunda museum and art gallery
88,204
-
Investment income
3
-
-
SBC - Service level agreement
5
516,660
-
Total
719,930
75,239
EXPENDITURE ON
Raising funds
6
13,531
-
Charitable activities
7
Rotunda museum and art gallery
768,191
73,882
Total
781,722
73,882
Net gains on investments
14,928
-
NET INCOME/(EXPENDITURE)
(46,864)
1,357
Transfers between funds
20
1,357
(1,357)
Net movement in funds
(45,507)
-
RECONCILIATION OF FUNDS
Total funds brought forward
479,576
-
TOTAL FUNDS CARRIED FORWARD
434,069
-		 2022
Total
funds
£
190,305
88,204
-
516,660
795,169
13,531
842,073
855,604
14,928
(45,507)
-
(45,507)
479,576
434,069		 2021
Total
funds
£
81,867
131,556
1,132
516,660
731,215
4,435
749,492
753,927
27,133
4,421
-
4,421
475,155
479,576

The notes form part of these financial statements

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SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

BALANCE SHEET 31 March 2022

Notes
FIXED ASSETS
Tangible assets
14
Investments
15
CURRENT ASSETS
Stocks
16
Debtors
17
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
18
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
20
Unrestricted funds
TOTAL FUNDS		 2022
£
47,180
133,278
180,458
4,769
141,945
336,397
483,111
(229,500)
253,611
434,069
434,069
434,069
434,069		 2021
£
48,449
118,349
166,798
5,206
40,496
369,474
415,176
(102,398)
312,778
479,576
479,576
479,576
479,576

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

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

............................................. Professor J Fletcher - Trustee

The notes form part of these financial statements

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SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

CASH FLOW STATEMENT For The Year Ended 31 March 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Purchase of fixed asset investments
Interest received
Net cash used in investing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2022
£
(24,219)
(24,219)
(8,857)
(1)
-
(8,858)
(33,077)
369,474
336,397		 2021
£
14,564
14,564
(10,293)
-
1,132
(9,161)
5,403
364,071
369,474

The notes form part of these financial statements

Page 16

SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

NOTES TO THE CASH FLOW STATEMENT For The Year Ended 31 March 2022

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2022 2021
£ £
Net (expenditure)/income for the reporting period (as per the
Statement of Financial Activities) (45,507) 4,421
Adjustments for:
Depreciation charges 10,126 14,115
Gain on investments (14,928) (27,133)
Interest received - (1,132)
Decrease in stocks 437 3,544
Increase in debtors (101,449) (154)
Increase in creditors 127,102 20,903
Net cash (used in)/provided by operations (24,219) 14,564

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.21 Cash flow At 31.3.22
£ £ £
Net cash
Cash at bank and in hand 369,474 (33,077) 336,397
369,474 (33,077) 336,397
Total 369,474 (33,077) 336,397

The notes form part of these financial statements

Page 17

SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

NOTES TO THE FINANCIAL STATEMENTS For The Year Ended 31 March 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

For donations and grants to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation or grant and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures, fittings and equipment - Straight line over 10 years Computer equipment & website - Straight line over 5 years

Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost includes all costs of purchase and is calculated using the first-in, first-out basis. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are grants and donations which the donor has specified are to be solely used for particular areas of the Trust's work or for specific projects being undertaken by the Trust.

continued...

Page 18

SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 March 2022

1. ACCOUNTING POLICIES - continued

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

The trustees have considered the impact of COVID-19 in relation to their assessment of going concern and in their opinion have taken all reasonable steps to mitigate these factors. As at the point of authorising the accounts, and for the foreseeable future, the directors consider the going concern assumption to still be appropriate. The trustees acknowledge that given the currently rapidly changing business and social environment, there are likely to be significant unknown factors which may present themselves. Such factors are considered by the trustees to represent a general inherent level of risk in relation to the going concern assumption albeit not quantifiable at this time.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model.

2. DONATIONS AND LEGACIES

Donations
Grants
Grants received, included in the above, are as follows:
Arts Council
The Palaeontological Association
Herritage Lottery Fund
The Geological Society
Museum Development Yorkshire
Historic England
Coventry University
North Yorkshire Council Council
Forestry Commission
Yorkshire Coast BID Ltd
Yorkshire in Business		 2022
£
1,270
189,035
190,305
2022
£
139,718
3,000
17,160
1,500
710
-
3,800
500
5,000
12,000
5,647
189,035		 2021
£
17,307
64,560
81,867
2021
£
61,560
-
-
-
-
3,000
-
-
-
-
-
64,560

continued...

Page 19

SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 March 2022

2. DONATIONS AND LEGACIES - continued

Grants received from The Arts Council include £75,240 (2021 - £61,650) related to restricted funds.

3. INVESTMENT INCOME

Deposit account interest
INCOME FROM CHARITABLE ACTIVITIES
Activity
Admissions
Rotunda museum and art gallery
Retail and refreshment
sales
Rotunda museum and art gallery
Rent recharges
Rotunda museum and art gallery
Government grants
Rotunda museum and art gallery
Miscellaneous income
Rotunda museum and art gallery		 2022
£
-
2022
£
35,858
16,087
-
4,550
31,709
88,204		 2021
£
1,132
2021
£
5,854
2,809
73,196
38,002
11,695
131,556

4. INCOME FROM CHARITABLE ACTIVITIES

5. SBC - SERVICE LEVEL AGREEMENT

The charity receives income from the local council under the terms of a service level agreement for the operation of the museum and art gallery and this is shown separately on the face of the Statement of Financial Activities.

6. RAISING FUNDS

Other trading activities

Other trading activities
2022 2021
£ £
Purchases 13,531 4,435
CHARITABLE ACTIVITIES COSTS
Direct Support
Costs (see costs (see
note 8) note 9) Totals
£ £ £
Rotunda museum and art gallery 809,579 32,494 842,073

7. CHARITABLE ACTIVITIES COSTS

continued...

Page 20

SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 March 2022

8. DIRECT COSTS OF CHARITABLE ACTIVITIES

Staff costs
Other staff costs
Premises
Supplies and services
Professional services
Bad debts
Grant project expenditure
Depreciation		 2022
£
380,986
10,302
69,961
186,655
4,297
-
147,252
10,126
809,579		 2021
£
340,553
5,835
74,331
138,723
8,262
73,196
64,587
14,115
719,602

Included in the above costs are £68,268 relating to restricted funds.

Staff costs include salaries and related costs incurred in relation to one-off projects and funding.

9. SUPPORT COSTS

SUPPORT COSTS
Governance
costs
£
Rotunda museum and art gallery 32,494
Support costs, included in the above, are as follows:
2022 2021
Rotunda
museum
and art Total
gallery activities
£ £
Auditors' remuneration 4,400 4,275
Auditors' remuneration for non audit
work 2,490 1,500
Legal and professional fees 25,604 24,115
32,494 29,890

10. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2022 2021
£ £
Auditors' remuneration 4,400 4,275
Auditors' remuneration for non audit work 2,490 1,500
Depreciation - owned assets 10,126 14,115

continued...

Page 21

SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 March 2022

11. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021.

12. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2022
£
347,624
18,608
14,754
380,986		 2021
£
309,963
16,840
13,750
340,553

The average monthly number of employees during the year was as follows:

2022 2021
Charitable activities 18 16

No employees received emoluments in excess of £60,000.

13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - PRIOR YEAR ONLY

Unrestricted
Restricted
funds
funds
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
20,307
61,560
Charitable activities
Rotunda museum and art gallery
131,556
-
Investment income
1,132
-
SBC - Service level agreement
516,660
-
Total
669,655
61,560
EXPENDITURE ON
Raising funds
4,435
-
Charitable activities
Rotunda museum and art gallery
681,224
68,268
Total
685,659
68,268
Net gains on investments
27,133
-
NET INCOME/(EXPENDITURE)
11,129
(6,708)		 Total
funds
£
81,867
131,556
1,132
516,660
731,215
4,435
749,492
753,927
27,133
4,421

continued...

Page 22

SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 March 2022

13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - PRIOR YEAR COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - PRIOR YEAR ONLY - continued ONLY - continued
Unrestricted Restricted Total
funds funds funds
£ £ £
RECONCILIATION OF FUNDS
Total funds brought forward 468,447 6,708 475,155
TOTAL FUNDS CARRIED FORWARD 479,576 - 479,576
14. TANGIBLE FIXED ASSETS
Fixtures,
fittings Computer
and equipment
equipment & website Totals
£ £ £
COST
At 1 April 2021 114,491 92,233 206,724
Additions 2,137 6,720 8,857
At 31 March 2022 116,628 98,953 215,581
DEPRECIATION
At 1 April 2021 69,434 88,841 158,275
Charge for year 7,453 2,673 10,126
At 31 March 2022 76,887 91,514 168,401
NET BOOK VALUE
At 31 March 2022 39,741 7,439 47,180
At 31 March 2021 45,057 3,392 48,449
15. FIXED ASSET INVESTMENTS
Shares in
group Unlisted
undertakings investments Totals
£ £ £
MARKET VALUE
At 1 April 2021 10 118,339 118,349
Additions - 1 1
Impairments - 14,928 14,928
At 31 March 2022 10 133,268 133,278
NET BOOK VALUE
At 31 March 2022 10 133,268 133,278
At 31 March 2021 10 118,339 118,349

There were no investment assets outside the UK.

The company's investments at the balance sheet date in the share capital of companies include the following:

continued...

Page 23

SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 March 2022

15. FIXED ASSET INVESTMENTS - continued

Scarborough Museums and Gallery Enterprises Limited
Registered office:
Nature of business: Dormant
%
Class of share:
holding
Ordinary
100
Aggregate capital and reserves
16.
STOCKS
Stocks
17.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Prepayments and accrued income
18.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Payments on account
Trade creditors
Social security and other taxes
Other creditors
Accrued expenses
19.
ANALYSIS OF NET ASSETS BETWEEN FUNDS
Unrestricted
Restricted
funds
funds
£
£
Fixed assets
47,180
-
Investments
133,278
-
Current assets
483,111
-
Current liabilities
(229,500)
-
434,069
-		 2022
£
10
2022
£
4,769
2022
£
130,736
11,209
141,945
2022
£
127,998
69,083
18,865
1,885
11,669
229,500
2022
Total
funds
£
47,180
133,278
483,111
(229,500)
434,069		 2021
£
10
2021
£
5,206
2021
£
27,000
13,496
40,496
2021
£
-
43,071
45,739
792
12,796
102,398
2021
Total
funds
£
48,449
118,349
415,176
(102,398)
479,576

continued...

Page 24

SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 March 2022

20. MOVEMENT IN FUNDS

MOVEMENT IN FUNDS
Net Transfers
movement between At
At 1.4.21 in funds funds 31.3.22
£ £ £ £
Unrestricted funds
Unrestricted funds 479,576 (44,224) (1,283) 434,069
Fossil Festival - (2,640) 2,640 -
479,576 (46,864) 1,357 434,069
Restricted funds
Arts Council - School and Museum
Partnership - 1,357 (1,357) -
TOTAL FUNDS 479,576 (45,507) - 434,069
Net movement in funds, included in the above are as follows:
Incoming Resources Gains and Movement
resources expended losses in funds
£ £ £ £
Unrestricted funds
Unrestricted funds 703,430 (762,582) 14,928 (44,224)
Fossil Festival 16,500 (19,140) - (2,640)
719,930 (781,722) 14,928 (46,864)
Restricted funds
Arts Council - School and Museum
Partnership 75,239 (73,882) - 1,357
TOTAL FUNDS 795,169 (855,604) 14,928 (45,507)
Comparatives for movement in funds
Net
movement At
At 1.4.20 in funds 31.3.21
£ £ £
Unrestricted funds
Unrestricted funds 468,447 11,129 479,576
Restricted funds
Arts Council - Museum Resilience 2,408 (2,408) -
Arts Council - School and Museum
Partnership 4,300 (4,300) -
6,708 (6,708) -
TOTAL FUNDS 475,155 4,421 479,576

continued...

Page 25

SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 March 2022

20. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
Unrestricted funds
Restricted funds
Arts Council - Museum Resilience
Arts Council - School and Museum
Partnership
TOTAL FUNDS		 Incoming
Resources
Gains and
Movement
resources
expended
losses
in funds
£
£
£
£
669,655
(685,659)
27,133
11,129
-
(2,408)
-
(2,408)
61,560
(65,860)
-
(4,300)
61,560
(68,268)
-
(6,708)
731,215
(753,927)
27,133
4,421

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
Unrestricted funds
Fossil Festival
Restricted funds
Arts Council - Museum Resilience
Arts Council - School and Museum
Partnership
TOTAL FUNDS		 Net
movement
At 1.4.20
in funds
£
£
468,447
(33,095)
-
(2,640)
468,447
(35,735)
2,408
(2,408)
4,300
(2,943)
6,708
(5,351)
475,155
(41,086)		 Transfers
between
funds
£
(1,283)
2,640
1,357
-
(1,357)
(1,357)
-		 At
31.3.22
£
434,069
-
434,069
-
-
-
434,069

continued...

Page 26

SCARBOROUGH MUSEUMS, CULTURE AND CREATIVE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued For The Year Ended 31 March 2022

20. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming Resources Gains and Movement
resources expended losses in funds
£ £ £ £
Unrestricted funds
Unrestricted funds 1,373,085 (1,448,241) 42,061 (33,095)
Fossil Festival 16,500 (19,140) - (2,640)
1,389,585 (1,467,381) 42,061 (35,735)
Restricted funds
Arts Council - Museum Resilience - (2,408) - (2,408)
Arts Council - School and Museum
Partnership 136,799 (139,742) - (2,943)
136,799 (142,150) - (5,351)
TOTAL FUNDS 1,526,384 (1,609,531) 42,061 (41,086)

21. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2022.

22. COMPANY LIMITED BY GUARANTEE

The company is limited by guarantee and has no issued share capital. Every member of the company undertakes to contribute to the assets of the company in the event of the same being wound up while he/she is a member, such amount as may be required not exceeding £1 each.

Page 27