REGISTERED COMPANY NUMBER: 05314773 (England and Wales) REGISTERED CHARITY NUMBER: 1108039
Report of the Trustees and Unaudited Financial Statements for the Year Ended 31 March 2024
for
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Richardson Swift Chartered Accountants 11 Laura Place Bath BA2 4BL
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Contents of the Financial Statements for the year ended 31 March 2024
| Page | |
|---|---|
| Reference and Administrative Details | 1 |
| Report of the Trustees | 2 to 6 |
| Independent Examiner's Report | 7 |
| Consolidated Statement of Financial Activities | 8 |
| Consolidated Balance Sheet | 9 to 10 |
| Charity Balance Sheet | 11 to 12 |
| Consolidated Cash Flow Statement | 13 |
| Notes to the Consolidated Cash Flow Statement | 14 |
| Notes to the Financial Statements | 15 to 25 |
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Reference and Administrative Details for the year ended 31 March 2024
TRUSTEES M S P Berry J R E Coles J D A Gaselee H S J Scott B E Rogers R J Spiller (appointed 10.9.23) B W B White-Spunner (resigned 2.1.24) A E Gilham (resigned 8.9.23) COMPANY SECRETARY R R D Griffin REGISTERED OFFICE Headquarters Household Cavalry Horse Guards Whitehall London SW1A 2AX REGISTERED COMPANY 05314773 (England and Wales) NUMBER REGISTERED CHARITY 1108039 NUMBER INDEPENDENT EXAMINER Richardson Swift Chartered Accountants 11 Laura Place Bath BA2 4BL SOLICITORS Stone King LLP 13 Queen Square Bath BA1 2HJ BANKERS National Westminster Bank plc Windsor and Eton Branch 12 High Street Windsor Berkshire SL4 1LQ Lloyds Bank plc Coxs & Kings branch 1 Legg Street Chelmsford Essex CM1 1JS
Page 1
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Report of the Trustees for the year ended 31 March 2024
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 2024. 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).
Scope
The financial statements consolidate the financial statements of The Household Cavalry Museum Trust Limited with those of its wholly owned subsidiary, The Household Cavalry Museum Enterprises Limited, for the year ended 31 March 2024.
Introduction and background
The Household Cavalry Museum used to be situated at Combermere Barracks in Windsor and housed the Regimental Collection.
In 2000, a prime site became available at the Horse Guards building in Whitehall, central London, for the Household Cavalry to create a purpose built, modern showcase museum that would not only tell the story of the Household Cavalry through its collections but also afford public access for the first time to one of the most important Grade I listed buildings in the Capital. The Museum opened to the public on 9 July 2007 and provides the visitor with a living experience whereby they are able to observe the mounted and dismounted Household Cavalrymen on duty at Horse Guards. The visitor is also able to see the daily changing of the Queen’s Life Guard on Horse Guards parade ground directly adjacent to the Museum’s entrance and gain access to a working stables from where they can see behind the scenes of public duty. The day-to-day operation of the Museum is the responsibility of the charity’s wholly owned subsidiary, The Household Cavalry Museum Enterprises Limited, a company registered in England and Wales (Company Registration No 05844779).
As part of the original development project, refurbishment at the Windsor site was completed in July 2008. Since April 2009, it has become the focus for school visits and formal education. It houses the reserve collection and is the centre for historical and genealogical research.
The Household Cavalry Museum Trust Limited is the charitable company through which the fundraising and preservation, management and restoration of the Regimental Collection are accounted for.
Objectives and activities
The charitable company’s objects are to educate the public and members of the Household Cavalry in the Regiment’s history, heritage, traditions and military accomplishments. These objects are achieved through the preservation, maintenance and management of the regimental collection. Activities are conducted through the operation of a Museum at Horse Guards in London and also through the housing of a reserve collection in an education and research establishment in Combermere Barracks, Windsor.
The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s objectives and aims and in planning future activities.
Page 2
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Report of the Trustees for the year ended 31 March 2024
Review of business
As the business continues to build back after the covid-19 pandemic, the trustees and trading company directors still acknowledge and recognise the ongoing after affects from the pandemic on operations of the trading company, its partners and stakeholders and continue to ensure that both resources and processes are in place to mitigate any further disruptions to operations.
In 2023/24, the Museum opened 7 days a week from April to October, reverting to 5 days a week from November 2023 to March 2024. Following the King's Coronation on 6th May 2023, the museum saw a healthy improvement on its visitor numbers with large numbers of tourists in the Whitehall area.
Admissions income and the shop have performed well with retail income improving with new products added to the range. Events income grew in 2023/24 to pre covid levels with one large event saw the museum taken over by a creative design events team for their high-profile client. The private tours continued to grow following a new partnership with the museum and well-known experiences provider. These experiences created a new income stream for the museum in addition to the tours the museum already offered.
The trading company continues to give great priority to maximising revenue potential and managing costs. Part time temporary staff were recruited to take advantage of the traditionally strong summer period during which time the museum was open 7 days a week. In addition, bookings from the private tour travel trade and event industry picked up very much in line with the predictions of the heritage and tourism industry.
Our Education and Archive Centre at Windsor continues to expand its income streams through now hosting private tours in addition to hosting retired groups, local schools and scout groups. The curator has been working closely with the London Museum to provide a rolling programme of changes to the display cabinets on offer to visitors. In addition, the curator has hosted numerous visits for research requests and continues fielding on-line research requests for information from the extensive archive.
Having reviewed the available evidence, the directors and trustees have concluded that it is appropriate for the company and group to continue to prepare their accounts on the going concern basis.
Financial review
Results for the year
A summary of the group’s results for the year is given in the consolidated statement of financial activities on page 8 of this annual report and financial statements.
Income for the year totalled £397,578 (2023: £290,643). Donations and similar income amounting to £41,674 (2023: £37,126) were received during the year and included £23,663 (2023: £22,751) received from the Ministry of Defence towards staff costs. Income from trading activities was £355,904 (2023: £253,517) for the year. There were no grants received from the Arts Council Cultural Recovery Fund in 2024.
Expenditure totalled £409,998 (2023: £383,033) and included fundraising trading costs of £271,014 (2023: £236,333), costs of raising donations of £2,100 (2023: £2,100), and costs in relation to the preservation and maintenance of the regimental collection (including depreciation) of £136,884 (2023:£144,600) and governance costs of £8,445 (2023: £9,155). The net reduction in funds for the year was £12,420 (2023: £92,390).
Financial position
At 31 March 2024, the group had total funds of £2,609,721 (2023: £2,622,141). These funds comprised tangible fixed assets of £2,352,036, a retained deficit in the trading subsidiary of £18,777 and general funds of £276,462.
Page 3
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Report of the Trustees for the year ended 31 March 2024
Reserves policy
It is the trustees’ intention to build sufficient reserves through fundraising initiatives in order to meet existing liabilities as they fall due and to enable the continued development of the charity’s educational activities. The trustees have agreed that free reserves should approximate to £200,000.
At 31 March 2024, the group’s free reserves were £257,685, which is in line with the reserves policy.
Governance, structure and management
Governance
The Household Cavalry Museum Trust Limited was incorporated as a company limited by guarantee (Company Registration Number 05314773 (England and Wales)) on 16 December 2004. The company is governed by its memorandum and articles of association. It registered as a charity with the Charity Commission for England and Wales on 10 February 2005 (Charity Registration Number 1108039).
The charitable company remained dormant until 28 March 2006 when The Household Cavalry Regimental Collection Trust (formerly Charity Registration Number 274185) transferred its net assets (excluding the regimental collection) and its activities (including preservation, management and restoration of the regimental collection and the appeal for funds for the Horse Guards development) to the charitable company. This transfer was in accordance with a legal transfer of undertakings. On 18 April 2006, The Household Cavalry Regimental Collection Trust became a subsidiary of the charitable company. With effect from that date, the Charity Registration Number of The Household Cavalry Regimental Collection Trust was amended to 1108039-1. This charity is the charitable trust in which the regimental collection is held. The trustees of both The Household Cavalry Museum Regimental Collection Trust and The Household Cavalry Museum Trust Limited are identical.
Trustees
The names of the trustees of the charitable company who were in office during the year or at the time these financial statements were approved are set out below:
| Trustees | Appointed/Resigned |
|---|---|
| J R E Coles | |
| A E Gilham | Resigned 14 September 2023 |
| JDA Gaselee | |
| R J Spiller | Appointed 10 September 2023 |
| B E Rogers | |
| M S P Berry | |
| B W B White-Spunner | Resigned 2 January 2024 |
| HSJ Scott |
Induction and training of trustees
All trustees receive induction on joining the Board so that they are equipped to carry out their role. In order to keep Board members informed about the charity’s on-going work, the Board receives reports from senior staff members as required.
Subsidiary company
The Household Cavalry Museum Trust Limited fully owns The Household Cavalry Museum Enterprises Limited (Company Registration Number 05844779 (England and Wales), which has an issued share capital of £1. The company was formed to carry out the day-to-day operation of the Household Cavalry Museum. It commenced trading on 1 July 2007.
Page 4
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Report of the Trustees for the year ended 31 March 2024
Statement of trustees' responsibilities
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 group and of the income and expenditure of the group for that period. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and group and of the income and expenditure of the group for that period.
In preparing these financial statements, the trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles of 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 United Kingdom and Republic of Ireland (FRS 102);
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Each of the trustees confirms that:
-
so far as the trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and
-
the trustee has taken all the steps that he/she ought to have taken as a trustee in order to make himself/herself aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006,
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Key management personnel
The trustees consider that they comprise the key management personnel of the charity. None of the trustees receives any remuneration from the charity or group.
The key management personnel of the charity’s trading subsidiary, The Household Cavalry Museum Enterprises Limited, in charge of directing and controlling, running and operating it on a day to day basis comprise the Museum Director and the Deputy Visitor Services Manager. The annual pay of the Museum Director is set by the board of directors and reviewed annually. The directors receive no remuneration.
Page 5
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Report of the Trustees for the year ended 31 March 2024
Structure and management reporting
The ultimate responsibility for the charitable company and its subsidiary company lies with the trustees. The day to day responsibility for the subsidiary company lie with its board of directors.
The brief of the Museum Director is to increase day visitor numbers by establishing links with trade partners, tour operators and agencies, to enhance discretionary retail spending and to build the corporate hospitality business potential.
The full time manager of the Museum Education and Archive Centre at Windsor has been tasked with recovering the complete reserve collection from storage and to reinstating it in the refurbished Museum at Combermere Barracks. In addition, a team of volunteers has been cataloguing every item whilst dealing with a significant number of research enquiries and group tours.
All of these individuals report to the trustees or directors (as appropriate) on a regular basis, both informally and formally at trustees’ and directors’ meetings.
Fundraising
The charity aims to achieve best practice in the way in which it communicates with donors and other supporters. It takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. It applies best practice to protect supporters’ data and never sells data, it never swaps data, and ensures that supporters’ and donors’ communication preferences can be changed at any time. The charity manages its own fundraising activities and does not employ the services of professional fundraisers. The charity undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During 2023, the charity received no complaints about its fundraising activities.
Risk management
The trustees have assessed the major risks to which the charitable company and its subsidiary are exposed, in particular those relating to their specific operational areas and finances. The trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charitable company and its subsidiary, they have established effective systems to mitigate those risks.
The after effects of Covid-19 continue to be a risk to the group and the ongoing impact of closures due to government restrictions and reduced visitor numbers have and continue lead to a reduction in income. The trustees have detailed the effects of Covid-19 above within the review of business section earlier in the trustee report. The trustees will continue to assess the impact this has on operations and take steps to mitigate losses.
An important risk to the operations of the group is that of its dependence on foreign tourism which fluctuates for reasons which cannot be controlled. The trustees are seeking to mitigate this exposure by careful financial budgeting. In order to attract UK residents in greater numbers, the charity is also concentrating efforts in marketing to diversify and increase the number of visitors to the museum.
The recent changes in the UK Economy, increased inflation and interest rates and the effects to visitors numbers and spend and are being carefully monitored.
Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the
19/11/2024
company directors, on ............................................. and signed on the board's behalf by:
.............................................................................. J D A Gaselee - Trustee
Page 6
Independent Examiner's Report to the Trustees of The Household Cavalry Museum Trust Limited
Independent examiner's report to the trustees of The Household Cavalry Museum Trust Limited ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2024.
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
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
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:
-
accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
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
-
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.
CL Edwards
Catherine Edwards BSc ACA
Richardson Swift Chartered Accountants 11 Laura Place Bath BA2 4BL 20/11/2024
Date: .............................................
Page 7
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Consolidated Statement of Financial Activities for the year ended 31 March 2024
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies 2 Other trading activities 3 Investment income Total EXPENDITURE ON Raising funds Raising donations and legacies 4 Other trading activities 5 Charitable activities 6 Preservation and maintenance of the regimental collection Total NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted funds £ 18,011 355,904 - 373,915 2,100 271,014 273,114 113,221 386,335 (12,420) 2,622,141 2,609,721 |
Restricted funds £ 23,663 - - 23,663 - - - 23,663 23,663 - - - |
2024 Total funds £ 41,674 355,904 - 397,578 2,100 271,014 273,114 136,884 409,998 (12,420) 2,622,141 2,609,721 |
2023 Total funds £ 37,126 253,517 - 290,643 2,100 236,333 238,433 144,600 383,033 (92,390) 2,714,531 2,622,141 |
|---|---|---|---|---|
The notes form part of these financial statements
Page 8
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Consolidated Balance Sheet 31 March 2024
| Notes FIXED ASSETS Tangible assets 11 Investments CURRENT ASSETS Stocks 12 Debtors 13 Cash at bank CREDITORS Amounts falling due within one year 14 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 15 Unrestricted funds: General fund Non-charitable trading funds Tangible fixed assets fund TOTAL FUNDS |
Unrestricted Restricted funds funds £ £ 2,352,036 - - - 2,352,036 - 15,757 - 6,812 - 278,205 - 300,774 - (43,089) - 257,685 - 2,609,721 - 2,609,721 - |
2024 Total funds £ 2,352,036 - 2,352,036 15,757 6,812 278,205 300,774 (43,089) 257,685 2,609,721 2,609,721 276,462 (18,777) 2,352,036 2,609,721 2,609,721 |
2023 Total funds £ 2,438,094 - 2,438,094 15,575 9,972 199,336 224,883 (40,836) 184,047 2,622,141 2,622,141 274,673 (90,626) 2,438,094 2,622,141 2,622,141 |
|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2024.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2024 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
Page 9
continued...
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Consolidated Balance Sheet - continued 31 March 2024
The financial statements were approved by the Board of Trustees and authorised for issue on
19/11/2024 ............................................. and were signed on its behalf by:
Gamer Garelee
............................................. J D A Gaselee – Trustee
The notes form part of these financial statements
Page 10
The notes form part of these financial statements
Page 11
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Charity Balance Sheet 31 March 2024
| Notes FIXED ASSETS Tangible assets 11 Investments 10 CURRENT ASSETS Debtors 13 Cash at bank CREDITORS Amounts falling due within one year 14 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 15 Unrestricted funds: General fund Tangible fixed asset fund TOTAL FUNDS |
2024 Unrestricted funds £ 2,352,036 1 2,352,037 210,726 78,391 289,117 (12,656) 276,461 2,628,498 2,628,498 |
2023 Total funds £ 2,438,090 1 2,438,091 232,687 52,331 285,018 (8,295) 276,723 2,714,814 2,714,814 276,724 2,438,090 2,714,814 2,714,814 |
|---|---|---|
| 276,462 2,352,036 2,628,498 2,628,498 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2024.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2024 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
Page 11
THE HOUSEHOLD CAVALRY MUSEUM TRUST
LIMITED
Balance Sheet - continued 31 March 2024
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
19/11/2024 ............................................. and were signed on its behalf by:
Gamer Garelee
............................................. J D A Gaselee - Trustee
The notes form part of these financial statements
Page 12
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Consolidated Cash Flow Statement for the year ended 31 March 2024
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by operating 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 |
2024 £ 78,869 78,869 78,869 199,336 278,205 |
2023 £ 8,377 8,377 8,377 190,959 199,336 |
|---|---|---|
The notes form part of these financial statements
Page 13
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Notes to the Consolidate Cash Flow Statement for the year ended 31 March 2024
1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES
| ACTIVITIES | |||
|---|---|---|---|
| 2024 | 2023 | ||
| £ | £ | ||
| Net expenditure for the reporting period (as per | the Statement | ||
| of Financial Activities) | (12,420) | (92,390) | |
| Adjustments for: | |||
| Depreciation charges | 86,058 | 89,655 | |
| (Increase)/decrease in stocks | (182) | 11,004 | |
| Decrease/(increase) in debtors | 3,160 | (554) | |
| Increase in creditors | 2,253 | 662 | |
| Net cash provided by operations | 78,869 | 8,377 | |
| ANALYSIS OF CHANGES IN NET FUNDS | |||
| At 1.4.23 | Cash flow | At 31.3.24 | |
| £ | £ | £ | |
| Net cash | |||
| Cash at bank | 199,336 | 78,869 | 278,205 |
| 199,336 | 78,869 | 278,205 | |
| Total | 199,336 | 78,869 | 278,205 |
2. ANALYSIS OF CHANGES IN NET FUNDS
The notes form part of these financial statements
Page 14
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Notes to the Financial Statements for the year ended 31 March 2024
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
These financial statements have been prepared for the year to 31 March 2024 with comparative information provided in respect to the year to 31 March 2023.
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.
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 in the United Kingdom and Republic of Ireland (Charities SORP FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The charity constitutes a public benefit entity as defined by FRS 102.
The financial statements are presented in sterling and are rounded to the nearest pound.
Going concern
In the 'review of business' section in the Trustees report above, it was noted that as the business continues to build back after the Covid-19 pandemic, the trustees and trading company directors still acknowledge and recognise the ongoing after affects from the pandemic on operations of the trading company, its partners and stakeholders and continue to ensure that both resources and processes are in place to mitigate any further disruptions to operations.
The trading company directors meet monthly to assess and discuss the performance and rolling forecasts of the Museum. The Trust Trustees are updated on a regular basis and these monthly meetings will continue until trading has returned to normal levels. The forecasts are updated monthly, considering current and forecasted visitors' levels to tourism and heritage industry, economic challenges that may affect the operations and industry, along with any other external factors.
Visitor numbers are still to return to normal levels but for the year 2023/24 grew 35% from 25,350 to 34,410. Current projections see this gradually rise to 80% through 2024/25 and industry expectations are that this will increase to 100% by 2025/26. The trading company have used these predictions to forecast for the next two financial years. Performance against these will be closely monitored, and remedial action taken if required.
Our Education and Archive Centre at Windsor continues to expand its income streams through now hosting private tours in addition to hosting retired groups, local schools and scout groups. The curator has been working closely with the London Museum to provide a rolling programme of changes to the display cabinets on offer to visitors. In addition, the curator has hosted numerous visits for research requests and continues fielding on-line research requests for information from the extensive archive.
Having reviewed the available evidence, the directors and trustees have concluded that although there is some uncertainty related to current projections, it is appropriate for the company and group to continue to prepare their accounts on the going concern basis.
Preparation of consolidated financial statements
The statement of financial activities, balance sheet and the statement of cash flows consolidates the assets, liabilities, income and expenditure of the charity and its wholly-owned subsidiary undertaking, The Household Cavalry Museum Enterprises Limited, for the year ended 31 March 2024. The results of the subsidiary undertaking are consolidated on a line by line basis.
Page 15
continued...
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Notes to the Financial Statements - continued for the year ended 31 March 2024
1. ACCOUNTING POLICIES - continued
Critical accounting judgements and key sources of estimation uncertainty
Preparation of the financial statements requires the trustees and management to make significant judgements and estimates.
The items in the financial statements where these judgements and estimates have been made include:
-
Estimating the useful economic life of tangible fixed assets for the purpose of determining the annual depreciation charge;
-
Estimating the provision needed, if only, for slow moving or obsolete stock; and
-
Estimating future income and expenditure flows for the purpose of assessing going concern.
Income
Income is recognised in the period in which the group and charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.
Income comprises donations and income from trading activities.
Donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. 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 either 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.
Donated services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain facilities or services of equivalent economic benefit on the open market.
In accordance with the Charities SORP FRS 102, volunteer time is not recognised.
Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity.
Entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title of the asset having being transferred to the charity.
Page 16
continued...
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Notes to the Financial Statements - continued for the year ended 31 March 2024
1. ACCOUNTING POLICIES - continued
Income
Turnover generated by The Household Cavalry Museum Enterprises Limited comprises of income from ticket sales, shop sales, events and room hire. It is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Other operating income of the company comprises Coronavirus Job Retention Scheme funding and grants from the Cultural Recovery Fund. Funding from the Coronavirus Job Retention Scheme is credited to income when the company is entitled to the receipt of such monies and when the amount receivable can be quantified. Grants from bodies including the Cultural Recovery Fund are credited to income when the company is entitled to receipt, the amount receivable can be quantified and receipt is probable.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the group and charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. All expenses are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:
-
Expenditure on raising funds includes all expenditure associated with raising funds for the group and charity. This includes costs associated with fundraising and the costs of trading activities including the operating costs of The Household Cavalry Museum Enterprises Limited including the operating costs of the Household Cavalry Museum Enterprises Limited.
-
Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity through the provision of its charitable activities. Such costs include:
-
Preservation and maintenance of the Regimental Collection including improvement of its accessibility to members of the public, other individuals and organisations;
-
Donations made to other charities specifically to enable them to assist family members of Household Cavalry soldiers killed or wounded in recent conflicts. Charitable donations comprise single year payments rather than multi-year grants. Donations are included in the statement of financial activities when approved for payment by the trustees. Provision is made for donations approved but unpaid at the period end.
Governance costs comprising the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice are allocated to the cost of preserving and maintaining the Regimental Collection.
All expenditure is stated inclusive of irrecoverable VAT.
Tangible fixed assets
All assets costing over £1,000 and with an expected useful life exceeding one year are capitalised.
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of each asset over its expected useful life as follows:
Building improvements - 2% straight line
Museum fixtures and fittings - Over 4, 5 or 15 years straight line according to asset’s useful life Equipment - 25% straight line
Page 17
continued...
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Notes to the Financial Statements - continued for the year ended 31 March 2024
1. ACCOUNTING POLICIES - continued
Heritage assets
The Regimental Collection comprises an extensive library and unique artefacts including produced textiles such as standards and banners, silverware, weaponry, paintings, musical instruments, horse furniture and ceremonial and operational uniforms, all of which form part of the heritage of the Household Cavalry and the nation generally.
One of the principal objectives of the charity is to preserve such assets for the enjoyment of future generations. As such, the assets meet the definition of heritage assets in the Charities SORP FRS 102 and are not valued for the purposes of these financial statements. It is not possible to place any meaningful valuation on the collection for the purposes of these financial statements and details of specific items are not given for security reasons.
Stocks
Stock of items for resale in the museum shop is stated at the lower of cost and net realisable value with provision made against any obsolete or slow moving items.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds represent monies which are freely available for application towards achieving any charitable purpose that falls within the charity’s charitable objects.
Non-charitable trading funds represent the accumulated surplus or deficit of the subsidiary trading company, The Household Cavalry Museum Enterprises Limited.
The tangible fixed asset fund represents the net book value of the improvements to land and buildings occupied by the group and other tangible fixed assets. Such assets are vital to the group being able to carry out its work and the value invested in the assets cannot, therefore, be realised in order to meet future expenditure or liabilities. To emphasise this point, the net book value of the assets is represented by a specific tangible fixed asset fund on the balance sheet.
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.
Investments
Investment in the subsidiary company is valued at cost.
Debtors
Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.
Cash at bank and in hand
Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.
Page 18
continued...
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Notes to the Financial Statements - continued for the year ended 31 March 2024
1. ACCOUNTING POLICIES - continued
Creditors and provisions
Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.
2. DONATIONS AND LEGACIES
| DONATIONS AND LEGACIES | ||
|---|---|---|
| Donations Gift aid Grant funding - Victoria Cross Plaque Research & Visitor Fees Ministry of Defence (MoD) funding for staff posts |
2024 £ 14,425 674 - 2,912 23,663 41,674 |
2023 £ 5,785 739 6,000 1,851 22,751 |
| 37,126 |
£23,663 (2023 - £28,751) of the income above was attributable to unrestricted funds and £18,011 (2023 - £8,375) attributable to restricted funds.
Throughout the year, volunteers give their time to assist the operations of the Museum. The charity is grateful to these individuals for their enthusiasm and support. In accordance with the Charities SORP FRS 102, the economic contribution of these volunteers is not recognised.
3. OTHER TRADING ACTIVITIES
| Ticket Income Shop Sales Events Income Other Income 4. RAISING DONATIONS AND LEGACIES Consultancy fees and reimbursed expenses |
2024 £ 210,336 105,000 40,468 100 355,904 2024 £ 2,100 |
2023 £ 160,016 63,820 28,454 1,227 |
2023 £ 160,016 63,820 28,454 1,227 |
|---|---|---|---|
| 253,517 | |||
| 2023 £ 2,100 |
Page 19
continued...
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Notes to the Financial Statements - continued for the year ended 31 March 2024
5. OTHER TRADING ACTIVITIES
| Cost of shop sales Administrative expenses |
£ 49,281 221,733 271,014 |
£ 31,810 204,523 236,333 |
|---|---|---|
6. PRESERVATION AND MAINTENANCE OF THE REGIMENTAL COLLECTION
| Salaries and related costs Other preservation and maintenance costs Depreciation on tangible fixed assets Governance cost |
2024 £ 25,875 16,510 86,054 8,445 136,884 |
2023 £ 20,539 25,903 89,003 9,155 144,600 |
|---|---|---|
£23,663 (2023 - £28,751) of the expenditure above was attributable to unrestricted funds and £113,221 (2023 - £115,849) attributable to restricted funds.
7. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| Depreciation - owned assets Staff costs Auditor's remuneration (audit) Auditor's remuneration (other) |
2024 £ 86,058 200,327 - - |
2023 £ 89,655 182,134 9,500 1,250 |
|---|---|---|
8. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 March 2024 nor for the year ended 31 March 2023.
Page 20
continued...
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Notes to the Financial Statements - continued for the year ended 31 March 2024
9. STAFF COSTS
| STAFF COSTS | ||
|---|---|---|
| Wages and salaries Social security costs Other pension costs |
2024 £ 184,027 11,320 4,980 200,327 |
2023 £ 166,274 11,480 4,379 |
| 182,133 |
The average monthly number of employees during the year was as follows:
| Employees Employees (funded by MoD) |
2024 5 1 6 |
2023 5 1 |
|---|---|---|
| 6 |
No employees had emoluments during the year in excess of £60,000 (2023: Nil).
The trustees consider that they comprise the key management personnel of the charity in charge of controlling, running and operating it on a day to day basis. None of the trustees received any remuneration from the charity or the group.
The directors consider that they together with the Museum Director and Deputy Visitor Services Manager comprise the key management personnel of the company in charge of directing and controlling, running and operating the company on a day to day basis. The total remuneration paid to key management personnel during the year was £98,139 (2023: £108,649).
10. FIXED ASSET INVESTMENTS
| CHARITY COST OR VALUATION At 1 April 2023 At 31 March 2024 |
Inv. in subsidiary £ 1 1 |
|---|---|
The charity owns the entire issued ordinary share capital of £1 in The Household Cavalry Museum Enterprises Limited a company registered in England and Wales (Company Registration Number 05844779). The subsidiary carries out commercial activities, namely the day-to-day operation of the Household Cavalry Museum. All activities have been consolidated on a line-by-line basis in the statement of financial activities.
Page 21
continued...
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Notes to the Financial Statements - continued for the year ended 31 March 2024
11. TANGIBLE FIXED ASSETS
| Group COST At 1 April 2023 and 31 March 2024 DEPRECIATION At 1 April 2023 Charge for year At 31 March 2024 NET BOOK VALUE At 31 March 2024 At 31 March 2023 Charity COST At 1 April 2023 and 31 March 2024 DEPRECIATION At 1 April 2023 Charge for year At 31 March 2024 NET BOOK VALUE At 31 March 2024 At 31 March 2023 |
Combermere Barracks £ 385,220 115,066 7,704 122,770 262,450 270,154 Combermere Barracks £ 385,220 115,066 7,704 122,770 262,450 270,154 |
Horse Guards £ 3,134,268 1,002,648 62,686 1,065,334 2,068,934 2,131,620 Horse Guard £ 3,134,268 1,002,649 62,685 1,065,334 2,068,934 2,131,619 |
Equipment £ 124,236 102,539 12,673 115,212 9,024 21,697 Equipment £ 50,681 28,987 12,670 41,657 9,024 21,694 |
Museum Fixtures & Fittings £ 703,720 689,097 2,995 692,092 11,628 14,623 Museum fixtures & fittings £ 703,720 689,097 2,995 692,092 11,628 14,623 |
Totals £ 4,347,444 1,909,350 86,058 1,995,408 2,352,036 2,438,094 Totals £ 4,273,889 1,835,799 86,054 1,921,853 2,352,036 2,438,090 |
|---|---|---|---|---|---|
Heritage assets
As explained under principal accounting policies, heritage assets comprise the regimental collection. This collection includes an extensive library and unique artefacts including produced textiles such as standards and banners, silverware, weaponry, paintings, musical instruments, horse furniture and ceremonial and operational uniforms. It is not possible to place any meaningful valuation on the collection for the purposes of these financial statements. Details of specific items are not given for security reasons.
12. STOCKS
| Finished goods and goods for resale | Group 2024 £ 15,757 15,757 |
Group 2023 £ 15,575 15,575 |
Charity 2024 £ - - |
Charity 2023 £ - - |
|---|---|---|---|---|
Page 22
continued...
Page 22 continued...
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Notes to the Financial Statements - continued for the year ended 31 March 2024
13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Group | Group | Charity | Charity | |
|---|---|---|---|---|
| Amounts receivable within one year | 2024 | 2023 |
2024 |
2023 |
| £ | £ | £ | £ | |
| Trade debtors | 2,826 | 5,732 |
- |
- |
| Social security and taxation | 837 | - |
837 |
308 |
| Prepayments and accrued income | 3,149 | 4,241 |
1,009 |
249 |
| Amount due from subsidiary undertaking | - | - |
48,880 |
52,130 |
| 6,812 | 9,973 |
50,726 |
52,687 | |
| During the previous year, a substantial proportion of the amount | due from | The Household Caval | ||
| Museum Enterprises Limited (the subsidiary) was converted into a loan (see below). | ||||
| Group | Group | Charity | Charity | |
| Amounts receivable after more than one year | 2024 | 2023 |
2024 |
2023 |
| £ | £ | £ | £ | |
| Amount due from subsidiary undertaking | - | - |
160,000 |
180,000 |
| - | - |
160,000 |
180,000 |
During the previous year, a substantial proportion of the amount due from The Household Cavalry Museum Enterprises Limited (the subsidiary) was converted into a loan (see below).
The charity agreed entered into a loan agreement with its subsidiary company on 11 March 2021 that provides the subsidiary with a loan for a maximum amount of £200,000. The loan is to be applied solely for the purposes of trading to generate income for the charity and for assisting the charity to advance its charitable purposes. The loan is repayable by ten equal annual instalments and attracts interest at 2% per annum above the Bank Rate of the Bank of England.
14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Trade creditors Accruals and deferred income Social security and taxation |
Group 2024 £ 7,101 21,267 14,721 43,089 |
Group 2023 £ 13,058 17,904 9,874 40,836 |
Charity 2024 £ 2,868 9,788 - 12,656 |
Charity 2023 £ 945 7,350 - 8,295 |
|---|---|---|---|---|
Page 23
continued...
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Notes to the Financial Statements - continued for the year ended 31 March 2024
15. MOVEMENT IN FUNDS
| At 1.4.23 £ Unrestricted funds General fund 274,673 Non-charitable trading funds (90,626) Tangible fixed assets fund 2,438,094 2,622,141 TOTAL FUNDS 2,622,141 Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 31,055 Non-charitable trading funds 342,860 Tangible fixed assets fund - 373,915 Restricted funds Ministry of Defence (MoD) 23,663 TOTAL FUNDS 397,578 Comparatives for movement in funds At 1.4.22 £ Unrestricted funds General fund 280,707 Non-charitable trading funds (93,925) Tangible fixed assets fund 2,527,749 2,714,531 TOTAL FUNDS 2,714,531 |
Net movement in funds £ 1,789 71,849 (86,058) (12,420) (12,420) Resources expended £ (29,266) (271,011) (86,058) (386,335) (23,663) (409,998) Net movement in funds £ (6,034) 3,299 (89,655) (92,390) (92,390) |
At 31.3.24 £ 276,462 (18,777) 2,352,036 2,609,721 2,609,721 Movement in funds £ 1,789 71,849 (86,058) (12,420) - (12,420) At 31.3.23 £ 274,673 (90,626) 2,438,094 2,622,141 2,622,141 |
|
|---|---|---|---|
Page 24
continued...
THE HOUSEHOLD CAVALRY MUSEUM TRUST LIMITED
Notes to the Financial Statements - continued for the year ended 31 March 2024
15. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Non-charitable trading funds Tangible fixed assets fund Restricted funds Ministry of Defence (MoD) Victoria Cross Plaques TOTAL FUNDS |
Incoming resources £ 8,375 253,517 - 261,892 22,751 6,000 28,751 290,643 |
Resources Movement expended in funds £ £ (14,409) (6,034) (250,218) 3,299 (89,655) (89,655) (354,282) (92,390) (22,751) - (6,000) - (28,751) - (383,033) (92,390) |
|---|---|---|
The tangible fixed assets fund represents the book value of the tangible fixed assets held by the group and charity respectively. A decision was made to separate this fund from the general funds of the group and charity in recognition of the fact that the assets are essential to the day to day work of the group and charity and as such their value should not be regarded as funds that would be available with ease in order to meet future contingencies.
16. TRANSACTIONS WITH CONNECTED CHARITIES AND OTHER RELATED PARTIES
The group is connected to The Household Cavalry Foundation, a registered charity, Charity Registration Number 08236363, by virtue of the fact that the Household Cavalry Museum Trust Limited and its subsidiary both have directors in common with The Household Cavalry Foundation.
There were no other related party transactions other than those with the charity’s wholly-owned subsidiary undertaking, The Household Cavalry Museum Enterprises Limited (2023: Nil).
Page 25