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2021-03-31-accounts

Company Registration No: 5467415 Registered Charity No: 1112854

THE FREUD MUSEUM LONDON (A CHARITABLE COMPANY LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

JEFFREYS HENRY LLP Chartered Accountants

Finsgate 5-7 Cranwood Street London EC1V 9EE

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

Information

Directors and Trustees

A Newman (Chair)
S Bardgett
D Chambers
B Kahr (resigned 17 November 2020)
D Leader (resigned 9 June 2021)
W Monkhouse
T Moross
A Spiro
S Kon
A Biggs
P Chilton
S Abse (appointed 8 June 2021)
A Worthington (appointed 17
November 2020)
L Hillman (appointed 8 June 2021)
J Rosenfeld (appointed 17 November
2020)
Secretary Monica Law
Registered Charity Number 1112854
Registered Office 20 Maresfield Gardens
London
NW3 5SX
Chief Executive Officer (Director) C Seigel
Bankers NatWest Bank plc
106 Finchley Road
London NW3 5JN
Auditors Jeffreys Henry LLP
Chartered Accountants
Finsgate
5-7 Cranwood Street
London
EC1V 9EE

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

Contents

Page 1 - 15 Trustees’ Report
16 - 18 Independent Auditors’ Report
19 Statement of Financial Activities
20 Balance Sheet
21 Cash Flow Statement
22 – 34 Notes to the Financial Statements

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The Trustees are pleased to present their annual report together with the financial statements of the charity for the year ended 31 March 2021 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

CHAIR’S REPORT

The year under review was inevitably dominated by the Covid-19 pandemic and its impact on all aspects of daily life. It began with the Museum having just closed to the public in the first English lockdown and ended with it closed once again during the second English lockdown. In between, the Museum was able to welcome visitors in person, under varying degrees of restriction, between August and November 2020.

During this difficult time, the Museum’s Director and staff responded to the exceptional challenges of the pandemic with resourcefulness and innovation. Their efforts enabled the Museum rapidly to provide new online activities which not only attracted audiences from around the world but also accelerated the Museum’s preparedness for a digital future. This online programme included a wide range of talks and activities, some of which directly addressed issues relating to the impact of the pandemic. The team also devised a special exhibition for the Museum’s re-opening, covering Freud’s loss of his daughter Sophie during the Spanish flu pandemic, a hundred years earlier.

Despite generating online revenues, the Museum’s total income from visitor-related activities fell by £256,000, (59%) to £176,000 compared to £432,000 in the previous financial year. The net contributions received from our commercial subsidiary, Freud Museum Publications Limited also fell, by £78,000, from 2019/20.

Against this difficult background, the Trustees and the Director focussed on safeguarding the Museum and ensuring its financial viability. Many of the staff were furloughed while the Museum was closed. The Museum applied for and received funding from a range of public and private bodies. Apart from the Job Retention Scheme, from which the Museum received £185,000, the largest grant received was from the Arts Council England Culture Recovery Fund. A number of fund-raising activities were also held, including two memorable events led by Vanessa Redgrave in the short period when the Museum re-opened.

The Board is very grateful for the donations received during the year both from existing Patrons, Members and supporters as well as many new ones. We also appreciate the wide range of funding support provided by the national and local authorities in the UK during the pandemic as well as the specific schemes for museums and cultural institutions such as ours.

The financial support received from these multiple sources, some of which was reserved for specific purposes, together with a reduction in total expenditure enabled the Museum to record an overall surplus and to end the year with reserves slightly higher than the previous year-end.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The Trustees therefore remain confident in the Museum’s ability to sustain itself financially. As cultural and economic life returns towards previous normality, the Museum is now in a position to re-start its development planning process and adapt its long-term plans to reflect the impact of the pandemic. Our experience this year has already shown how the Museum can harness digital technology to deliver services and activities remotely as well as to enhance the visitor experience in the house.

Our two long-standing clinical practitioner Trustees, Professor Brett Kahr and Darian Leader, retired from the Board during the year after reaching the end of their nine-year term of office. Professor Kahr has been appointed as the Museum’s Honorary Director of Research helping to develop our academic research programme. I would like to thank both Brett and Darian for their valuable and very active contributions to the Museum over many years.

Two new trustees with clinical expertise, Anne Worthington and Juliet Rosenfeld, joined the Board during the year and a third, Susanna Abse joined in July 2021. Louise Hillman FCA was also appointed in June 2021 as the finance trustee, responsible for overseeing the Museum’s financial affairs. We welcome all these new trustees who add valuable skills and experience to the Board.

I will be retiring as Chair and from the Board (which I joined in 2010) after the 2021 Annual General Meeting. I am pleased that the Board has appointed Susan Prevezer QC to succeed me from that date. Susan is a distinguished barrister, who has led a major law firm, held many non-executive director roles in commercial and charitable organisations and is a local resident.

I thank all the Trustees for their support and guidance on the Board and their work in helping the Museum and its staff to address the many challenges that arose this year. I would also like to express the Board’s appreciation for the dedication and commitment of the Director and staff which has sustained so many activities in the past year and enabled the Freud Museum London to continue to fulfill its objectives.

Alan Newman Chair, Freud Museum Trustees 23 November 2021

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

PRINCIPAL ACTIVITY AND PUBLIC BENEFIT

The Freud Museum London is a charitable company. In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance on public benefit and fee charging.

The Museum relies on grants and the income it raises from, amongst other activities, admission fees and the public programme. We are therefore a fee charging charity, but feel that the admission prices are low enough that no one is prevented from coming to the Museum on grounds of cost. Concessionary fees are available for low income groups, parties of senior citizens and school parties. Free admission is offered to members of the local neighbourhood association. We also undertake outreach projects which offer free access to Museum services.

As set out in the Memorandum and Articles of Association, the purposes of the Freud Museum London which all serve to promote public benefit are as follows:

The strategies employed to achieve the charity’s aims and objectives are to:

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THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

ACHIEVEMENTS AND PERFORMANCE

This has been an unprecedented year for the Freud Museum London, as for so many other organisations across the world. Just before the start of this financial year, the coronavirus pandemic spread to the UK, and associated government restrictions came into force.

Loss of income from admissions - usually the cornerstone of the Museum’s funds - was a key feature of this year’s performance. However, the Museum responded fast and imaginatively to the loss of income caused by closure, taking full advantage of all emergency support on offer, cutting costs where possible, developing new income streams, and fundraising.

The Museum applied for emergency funding from a range of different organisations. Despite the very competitive climate, grants were received from the Rothschild Foundation Hanadiv Europe (£20,000), and London Museum Development for both a Reopening Grant (£2,000) and a Recovery Grant (£5,000). In October the Museum was awarded £80,000 from Arts Council England’s Cultural Recovery Fund, and a further £40,000 from CRF Phase 2 in March 2021. We are immensely grateful to all these donors.

The Museum actively pursued its own fundraising avenues, through new and old donors, members and patrons. We received a grant of £35,000 from one new donor in July, and an appeal to the psychoanalytic community across the world raised over £15,000. Two special fundraising events with the actress Vanessa Redgrave raised another £15,000 in the autumn.

As soon as the Job Retention Scheme was put in place, the majority of the Museum’s staff were furloughed, with a core team of the Director, live-in Front of House Manager, and Digital Manager remaining in place. Over the course of the year, other staff members were brought back off furlough, or onto flexible furlough, in order to support reopening or new activities to generate income for the museum. This was a carefully managed process, and the Museum was able to avoid making any redundancies. Staff pay was reduced to 80% until December, when with the support of the Cultural Recovery Fund it was restored to 100%.

The Museum took full advantage of available government support schemes, not only the Job Retention scheme, but also the Retail, Hospitality and Leisure grants offered to museums, and business rates relief. The Museum also made a successful application for a Bounce Back Loan of £50,000.

Over this period, the Museum was only allowed to be open for a very limited time. In accordance with government guidelines the Museum reopened on 12 August 2020, closed again for four weeks in November, reopened briefly in December, and then remained closed until May 2021 – after the end of the financial year covered in this report.

In order to enable the Museum to reopen safely, a great deal of thought went into making necessary changes and improvements. These included enhanced cleaning, restricting numbers in the museum, new signage and displays, and asking visitors to wear masks and socially distance. An online booking system was introduced to control and regulate numbers. The audio guide was rerecorded, made available to download on to a smartphone, and included for free in the price of admission. Ticket prices were increased, to cover the extra costs of cleaning and other changes.

Some of the costs of reopening were covered by the London Museum Development Reopening Grant, and some by the Arts Council England’s Cultural Recovery Fund.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Audience response to the changes, as reported to front of house staff and on visitor surveys, was very positive. Visitors appreciated the care taken to keep them safe, and the improved experience of being in a far quieter museum. ‘It was immensely special to be back in Freud’s study, and, due to distancing restrictions, have it virtually to myself’, commented one visitor.

The Museum was open for three days a week (as opposed to five days pre-pandemic, but with longer opening hours) with a maximum of 60 visitors a day. In the few weeks of being open from August to November, daily ticket sales were between 80% and 90% of the reduced capacity. It was gratifying to note that demand was still there for a visit to the Museum, albeit with numbers far lower than before the pandemic.

To attract visitors, the Museum developed a new, highly topical exhibition, Freud and the Pandemic , again partly funded by the Cultural Recovery Fund grant. This explored the similarities between Freud’s experience of the Spanish Flu and the COVID-19 pandemic, its impact on mental health and the response by psychoanalysts. In the end, it was not able to open until May (when the Museum reopened) but could be promoted and explored online before then and was on display from May to September 2021.

However, since admissions had been a mainstay of income, the Museum needed to generate alternative sources of income as a matter of urgency. This need was heightened by the knowledge that overseas visitors, who had previously made up about half of all visitors, were not likely to return for some time to come.

The Museum already had a vibrant, successful public programme, comprising a range of events, including talks, conferences and courses. These had always been held in the physical space of the Museum. One effect of the pandemic was to learn rapidly how to translate this analogue programme into a digital one. With immense agility, the Digital Manager and Events team soon mastered the world of Zoom and online webinars, and began promoting online events, accessible from all over the world.

This was a sharp learning curve but proved very successful. No longer restricted by the space within the Museum, events could be opened to far larger numbers. The online programme reached a wide global audience, with participants logging on from as far afield as New Zealand and China. Online events included conferences on the climate emergency and post-truth, both highly topical and well attended. Over fifty online events were held in this period, generating more income than the events programme in the previous year.

Even keeping ticket prices relatively low and therefore widely accessible, the increased number of ticket sales generated greater income for each event than had been possible when restricted to 80 seats within the museum. For instance, Professor Brett Kahr’s How Freud would have handled the Coronavirus ’ had 340 bookings; Dr. Vamik Volkan’s talk to mark Holocaust Memorial Day, Trauma, Prejudice and Psychoanalysis , had 410.

Courses which had been held as evening classes in the museum are now delivered live, but online. Participants can still attend in real time and question the speaker or watch the recording later in their own time. Keystones of the course programme are Keith Barrett’s introductions to psychoanalysis, the work of Sigmund Freud and other key figures, and Mary Wild’s Projections series on psychoanalysis and cinema.

‘ I want to thank the Freud Museum and Mary Wild for doing an excellent job and bringing psychoanalysis closer to those who are interested even in these difficult times! Please bring more, I am thirsty for more and more knowledge’.

‘I really enjoyed Keith Barrett’s series and felt very inspired. I hope these can remain online – these have been one of the highlights of my lockdown’.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

‘As I live in Iran, it is impossible to attend such events in person, and I hope there will be further opportunities for online participation, even after the pandemic’.

Another success story over this year was the online shop. Unable to make purchases in person, many people from all over the world instead accessed the Freud Museum shop online. The Shop Manager and her team exploited this opportunity with imaginative products, many from independent designers, increased publicity, and the ever-popular Christmas video!

This success was achieved despite constantly increasing extra complexity in sending items abroad caused by a number of factors, including post Brexit regulations for the EU.

During this year there have been a number of staff and trustee changes. Curator Sophie Leighton left for a new post as Director of the Bethlem Gallery, and Planning Manager Emily Ardizzone chose not to return from maternity leave. Deputy Director and Head of Learning Ivan Ward retired (just after the end of this financial year) after more than thirty years at the Museum.

The Director undertook a staff restructure to accommodate these changes, and to make some savings at a difficult time. It was an opportunity to rethink roles and responsibilities, and to give well deserved promotions to several experienced members of staff. New roles were created, such as that of Research Manager, to allow some aspects of the Museum’s work to be strengthened and improved.

Working conditions were also improved, both for working from home and in the museum itself. The Recovery Grant and CRF funds were used to ensure that all staff working from home had access to a good computer, and were able to access safely museum documents, and communicate properly with colleagues. The top office was given a much-needed refurbishment, to ensure safer working conditions as staff returned to work.

Despite the positive response to the pandemic, there is no doubt that this has still been an extraordinarily difficult year for the Museum. We hope that in the coming year we will be able to bring activities back to previous levels, although the environment continues to be uncertain for all heritage organisations like ourselves, not least due to the possibility of further Covid-related restrictions.

ACTIVITIES 2020-21 TO PROMOTE PUBLIC BENEFIT

Despite the need to focus on keeping afloat financially, the Museum tried hard to always keep in mind its purpose to promote public benefit during the pandemic. Many of its activities were designed to reach a wider community, to promote good mental health, and to recognise some of the difficulties that everyone was living through.

Before the pandemic, the education team, with the support of Arts Council England, had been developing a dedicated offer for the following community groups – adults living with learning disabilities and difficulties; adult mental health service users; brain injury survivors; carers; ethnic minority groups; inter-generational groups; older people; people living with dementia and refugees.

Although in-person workshops were no longer possible, where feasible assistance was provided online. The Education and Outreach Manager created a special online session Freudian Wisdom for Difficult Times . While suitable for a general audience, it was designed specifically to support mental health and wellbeing in the community. The session has been available free of charge to key workers, carers and

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

healthcare professionals. We hope to expand this online provision in the coming year, and return to in person work in the community where possible.

To keep our schools provision accessible, a new online offer was launched in autumn 2020, which proved very popular with teachers and students. Education sessions have been delivered to schools across the country, who may not have previously visited in person. Students everywhere can now delve into the world of Sigmund and Anna Freud from their homes or classrooms.

Learning sessions are delivered by a team of subject specialists who enjoy engaging students in their first encounters with Freud and psychoanalysis. Covid secure onsite learning visits are also available for schools.

The Museum responded to the Black Lives Matter protests in summer 2020 by looking at its own structure, provision and programming. A staff group has been established to keep equality and diversity under review, and recommend changes. Ivan Ward, Head of Learning, delivered a very personal talk online The Psychological Effects of Racism , which reached a wide audience and is still available to watch on demand. One viewer wrote: ‘ I cannot recommend Ivan Ward’s deeply moving, and incisive talk enough. No matter what your ethnic background is, you will most certainly learn something from it.’

Throughout the year we have kept accessibility of all types in mind in our programmes. Captioning of online events is available for the hard of hearing. We also ensured that provision was not inaccessible to anyone for financial reasons. Many of our talks were offered on a ‘pay what you can’ basis. Where possible we offered subsidised prices or free places to students, concessions, mental health service users and those on low income. Some online provision, such as the popular new Freud in Focus podcast series, is completely free to all users.

PLANS FOR FUTURE PERIODS

The Freud Museum is a small independent museum with a high reputation in the London arts and heritage field, and an international audience interested in Freud and psychoanalysis. It is uniquely situated as a place to discover the richness of Sigmund and Anna Freud’s legacies, and to explore the links of psychoanalysis to art, culture, history and health.

This year has shown the Museum’s resilience and ability to adapt to unprecedented challenges. It has been pleasing to have seen the enthusiastic response from around the world to the activities that we developed, and we are very grateful for all the support we have received.

Nonetheless, the financial position is far more challenging than in previous years, and our plans for future periods have to take this into account.

The Museum’s key strategic aims will continue to be to:

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

However, the changing circumstances mean that Museum now needs to undertake detailed planning in response to the effects of the pandemic, the Museum’s prolonged closure and loss of income. We are looking closely at how the Museum’s development plans should be updated in a post pandemic environment, with so much uncertainty still ahead.

In the coming year therefore, the Museum will be proceeding cautiously, trying to achieve financial stability, and re-thinking its priorities and strategy in the light of a radically changed world.

FINANCIAL REVIEW

The Museum’s accounts reflect the impact of the pandemic and in particular the closure of the building to visitors in two periods, covering almost two-thirds of the financial year. The Museum’s income from its normal activities (including visitor admission charges, public programmes and premises hire) fell by 59% from £432,000 to £176,000. The lengthy closure and fall in visitor numbers also impacted the Museum’s trading arm, Freud Museum Publications Ltd. its turnover fell by 68% to £76,000 from £240,000 in the prior year (despite an increase in online sales) and its gross profit fell by £78,000. This fed through to the same reduction in the management fees and donations payable by FMP to the Museum.

The Museum’s income loss was partly offset by an increase of £257,000 in donations and legacies to £463,000. This total includes £185,000 from the Job Retention Scheme and £122,000 from other public support schemes. As a result, the reduction in the Museum’s total incoming resources was restricted to £48,000, with a total generated of £651,000 compared to £698,000 in the prior year.

Due to the reduction in activities in the Museum, caused by the Covid-restrictions, the Museum’s total expenditure of £542,000 was £127,000 (19%) lower than the previous year. Management and administration costs were £85,000 lower at £492,000, with staff costs reducing by £55,000 and other costs by £30,000. Although the JRS enabled the Museum to retain staff, some vacancies that arose during the year were not filled. Expenditure on generating funds fell by £42,000 to £50,000, reflecting the reduction in exhibitions and physical events. The combination of grant and donations income and lower expenditure contributed to the Museum reporting net income of £109,000 for the year compared to £29,000 in the prior year. Of this, the unrestricted net income was £66,000 and the restricted element was £43,000. The Museum’s year-end cash balances increased by £218,000 to £478,000 reflecting the net income and an increase of £61,000 in creditors, mainly in deferred grants.

INVESTMENT POWERS AND POLICY

The trustees, having regard to the liquidity requirements of operating the museum, have kept available funds in an interest-bearing deposit account and seek to achieve a rate on deposit which matches or exceeds inflation as measured by the retail prices index. Due to the wider economic circumstances, deposit rates have been depressed and so this aim was not achieved in the year.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The invested funds held on deposit achieved an average of 0.05% against the retail price index of 2.9% for the year.

RESERVES POLICY AND GOING CONCERN

Reserves are needed to bridge the gap between the spending and receiving of income and to cover unplanned emergency repairs and other expenditure.

The effects of the Covid-19 pandemic especially since the year-end have led to significant global disruption and uncertainty about the future. The Trustees have continued to take a prudent approach to managing the Museum’s finances and to seek to ensure the Museum’s future viability. The financial support received from the Government and public bodies and private donors together with actions taken by the Museum have enabled it to retain adequate reserves for the immediate future. Although the outlook remains highly uncertain, the Trustees have considered a range of plausible scenarios for the 12 months following the date of these financial statements. As a result, the Trustees consider that the Museum will have sufficient funds to meet its obligations during the next 12 months and is a going concern.

DIRECTORS AND TRUSTEES

The Freud Museum is governed by a Board of Directors, known as the Trustees. During the financial year ending 31 March 2021 the following Trustees have held office.

Alan Newman (Chair from 27 February 2018) Susanna Abse (Appointed 8 June 2021) Suzanne Bardgett Anne Biggs Dan Chambers Paul Chilton Louise Hillman (Appointed 8 June 2021) Brett Kahr (Resigned 17 November 2020) Stephen Kon Darian Leader (Resigned 9 June 2021) Wendy Monkhouse Trevor Moross Juliet Rosenfeld (Appointed 17 November 2020) Anthony Spiro Anne Worthington (Appointed 17 November 2020)

Key management personnel: Carol Seigel Duncan Lynch Monica Law Iveta Rozlapa Bryony Davies Francisco da Silva

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

A brief biography of all current Trustees is given below:

Susanna Abse

Susanna Abse is a psychotherapist who has worked in private practice with couples, parents and individuals since 1991. She was Chair of The British Psychoanalytic Council from 2018 – 2021 and was CEO of Tavistock Relationships from 2006 -16. Alongside her psychotherapy practice, Susanna works as an organisational consultant and coaching senior leaders in the corporate section, the NHS, in charities and higher education. Susanna is also a Senior Fellow of The Tavistock Institute of Medical Psychology; a Fellow of the Centre for Social Policy at Dartington, and Series Co-Editor of “The Library of Couple and Family Psychoanalysis” for Routledge Books. Her publications include writings for the New Statesman, New Associations and for the Open Society European Policy Institute. In 2019, she made a series of Films for Channel 4 news which looked at the psychological aspects of Brexit. Her book, Tell Me Truth About Love, for Ebury Press will be published in July 2022.

Suzanne Bardgett

Suzanne Bardgett is Head of Research and Academic Partnerships at Imperial War Museums, where she is responsible for initiating research projects across the IWM’s remit. Past achievements include leading the team that created the Holocaust Exhibition which ran at IWM London from 2000 to 2021. In her current role, Suzanne has led or co-led a number of Arts and Humanities Research Councilfunded projects, mainly on aspects of IWM’s collections. Suzanne is also Series Editor with Ben Barkow of the Palgrave Macmillan’s The Holocausand its Contexts. Her book, Wartime London in Paintings, about the IWM’s officially commissioned paintings of London during the Second World War, was published in 2020.

Anne Biggs

As Head of Trusts and Foundations at the Philharmonia, Anne Biggs is responsible for managing the organisation’s Arts Council NPO funding and other statutory funding, as well as funding from trusts, foundations, embassies and livery companies. Anne has worked at Historic Royal Palaces, English National Ballet, and a number of disability organisations. Outside of her day job, Anne is on the board of Teatro Vivo, a small theatre company. Previously, she mentored through Mentoring Pathways, was an Enterprise Advisor within the Mayor of London’s Enterprise Network, and was a Management Committee member of Angelshed, an inclusive theatre company. Anne is undertaking a part-time history PhD, building on her MA research, focusing on ideas of selfhood and identity, something which relates closely to Freud’s work.

Dan Chambers

Dan Chambers is the Creative Director and co-founder of Blink Films, one of the UK’s leading factual production companies. Dan specialises in ambitious factual shows for the British public service terrestrial broadcasters, and American broadcasters. He has created various long-running history strands, including Secrets of the Dead for Channel 4, Revealed for Channel 5, True Stories for BBCWW, and Ancient Mysteries at Blink Films. He’s been responsible for various award-winning shows including Dambusters Revealed (RTS Best Factual) and Meet The Sloths (Panda Wildlife). He has created a host of successful cookery shows, including Tom Kerridge’s American Feast, John Torode’s Asia, and Chinese Food In Minutes with He Ching. He’s created various animal and wildlife series including the recent BBC’s Dog Tales and Cat Tales, and Love Nature’s Life and Death in the Amazon. Dan has previously been the Director of Programmes at Channel 5 responsible for overseeing all the channel’s output from 2003 to 2006, and The Head of Science at Channel 4, responsible for a range of programmes from Scrapheap Challenge to the first ever series of Big Brother on British TV.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Paul Chilton

Fellow of the Royal Institution of Chartered Surveyors and a Partner at Cluttons LLP, leading-edge property consultancy. Paul has over 35 years of property experience acting on behalf of a number of UK Charities as well as managing a top 20 firm of Chartered Surveyors.

Louise Hillman

Louise Hillman qualified as a chartered accountant with Deloitte & Touche. Louise worked for Credit Suisse before moving to the social sector, working for an international NGO and a charity which helped others scale their social impact, before taking on her current role as Head of Finance for the Medical Research Foundation.

Professor Brett Kahr

Professor Brett Kahr has worked in the mental health profession for over forty years. He is Senior Fellow at the Tavistock Institute of Medical Psychology in London, and Visiting Professor of Psychoanalysis and Mental Health at Regent’s University London. He is also Senior Clinical Research Fellow in Psychotherapy and Mental Health at the Centre for Child Mental Health. Additionally, he serves as Chair of the Scholars Committee of the British Psychoanalytic Council. Kahr has written or edited sixteen books and has served as series editor for over seventy-five further titles on a range of topics in psychotherapy and psychoanalysis, including several volumes on the history of psychoanalysis. He is Consultant Psychotherapist at The Balint Consultancy and works with individuals and couples in independent practice in Central London.

Stephen Kon

Stephen Kon is a practising solicitor of 40 years standing, specialising in EU and competition law. He was previously an academic in the School of European studies at Sussex University and Senior Partner of a City law firm. He chaired for five years the London Jewish Cultural Centre and is currently a Trustee of the Association of Jewish Refugees.

Darian Leader

Darian Leader is a psychoanalyst working in London and a founder member of the Centre for Freudian Analysis and Research. He is Visiting Professor at the School of Human and Life Sciences, Roehampton University. He is the author of several books including Introducing Lacan; Why do women write more letters than they post? Freud’s Footnotes; Stealing the Mona Lisa: What Art Stops us from Seeing; Why Do People Get Ill? (with David Corfield) and The New Black: Mourning, Melancholia and Depression, What is Madness and Strictly Bipolar. His most recent book Hands was published by Hamish Hamilton in 2016.

Wendy Monkhouse

Wendy Monkhouse has wide ranging curatorial experience and currently works as Senior Curator (South) for English Heritage. She has worked extensively for the National Trust, historic house museums and as an independent curatorial consultant. She has a PhD in Egyptian Archaeology from University College London, and teaches Egyptian and Near Eastern Archaeology at MA and BA level.

Trevor Moross

Trevor Moross is a Fellow of the Royal Institution of Chartered Surveyors. He is a non-executive director of Dorrington, a privately owned residential and commercial property company. Being particularly concerned with housing he serves on the Board of London and Quadrant Housing Trust, one of largest housing associations in the United Kingdom. He is a member of the International Advisory Board of The Academy of St Martin in the Fields, the renowned orchestra.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Alan Newman (Chair)

Alan Newman is Chief Financial and Operating Officer of Ebiquity plc, a media and marketing consultancy and Chair of the Audit Committee of Future plc. Alan has wide experience in the media, technology and business service sectors. He was previously Chief Financial Officer of YouGov plc and a Partner in the consulting practices of EY and KPMG. He is a Chartered Accountant and has an MA in Modern Languages (French and Spanish) from Cambridge University.

Juliet Rosenfeld

Juliet Rosenfeld is a psychoanalytic psychotherapist and writer who works in London. She has a special clinical interest in both grief and love (as the two are often so profoundly entwined) and working with those who have suffered bereavement, recently or in the past. Juliet read languages at Oxford before a ten year career in advertising and marketing, ending up in the Civil Service. Juliet qualified in 2012 as an integrative psychotherapist but is passionate about psychoanalysis and specifically how it’s ideas can be useful and applied to bigger audiences. Juliet is also an elected Board Member of the UKCP ( United Kingdom Council Of Psychotherapy) which represents 12000 psychotherapists, and takes a keen interest in how any talking therapy can become more usual, and available to anyone who might benefit from it. She is currently working on her second book and has written for a number of national publications on relationships, grief and psychotherapy.

Anthony Spiro OBE JP

Anthony is a Chartered Engineer who worked for a FTSE 100 company principally in financial communications. He is a Justice of the Peace and Member of the Independent Monitoring Board at Wandsworth Prison. Anthony is a Trustee of the Association of Jewish Refugees and Chair of MiD Mediation and Counselling. He was Chair of the Wiener Holocaust Library from 2004 to 2018 and received an OBE in the 2021 New Year’s Honours List for Voluntary service to Holocaust remembrance.

Anne Worthington

Anne is a psychoanalyst and member of the Centre for Freudian Analysis & Research, the College of Psychoanalysts – UK and the Guild of Psychotherapists.

The Trustees hold board meetings five times a year. At these meetings, which are also attended by the Museum's Director and other staff as necessary, the Trustees review performance, set goals and receive reports from the staff. Future programmes and events are proposed by the Director and confirmed by the Board. Management accounts are prepared each month and monitored and reviewed against the budget set at the beginning of each financial year.

Day-to-day management of the Museum is delegated by the board to the Director. Decisions relating to the Museum's overall strategic direction, to long term financial commitments or to re-structuring of resources are made by the Board following detailed briefing and consultation with the Director and relevant staff.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Freud Museum opened to the public in 1986. During the first two decades of its existence, the Museum was constituted as a Charitable Trust, under a Deed of Declaration dated 30 September 1980. In 2004, in accordance with current best practice in the museum world the Trustees of the 1980 Charitable Trust decided to reorganise the Museum and to reconstitute it as a Charitable Company limited by guarantee.

12

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The Freud Museum London was registered on 31 January 2006 as a Charity with the Registration Number 1112854, and on 01 April 2006 received all the assets and liabilities of the 1980 Charitable Trust, including 20 Maresfield Gardens and its contents. This new charitable company is governed by its Memorandum and Articles of Association. These are available from the Commission or from the Company Secretary at 20 Maresfield Gardens.

Appointment of trustees

When trustees reach the end of their term of office, the Nominations Committee, a working subcommittee of the Board, is responsible for recruiting new trustees with appropriate skills. The Nominations Committee makes its recommendations to the full Board for approval.

Trustee Induction and training

New trustees undergo orientation to brief them on: their obligations under charity law and Charity Commission guidance on public benefit; the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the charity. During the Induction day they meet key employees and other trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

Organisation

The board of trustees, which can have up to 13 members, administers the charity. The board normally meets five times a year and there are sub- committees covering a range of issues. A Chief Executive is appointed by the trustees to manage the day to day operations of the charity. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by trustees, for operational matters including finance, employment and artistic performance related activity.

Related parties and co-operation with other organisations

None of our trustees receive remuneration or other benefit from their work with the charity. Any connection between a trustee and senior manager of another museum must be disclosed to the full board of trustees in the same way as any other contractual relationship with a related party. In the year under review, no such related party transactions were reported.

Pay policy for senior staff

The board considers that its members, who are the Trust’s trustees, and the senior management team comprise the key management personnel in charge of directing and controlling, running and operating the charitable trust on a day to day basis. All directors give of their time freely and no director received remuneration in the year. Details of any directors’ expenses and related party transactions are disclosed in note 13.2 to the accounts.

The pay of the staff is reviewed annually and normally increased in accordance with inflation. In view of the nature of the charity, the directors benchmark against pay levels in other museums of similar size

The trustees have a risk management strategy which comprises:

13

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

This work has identified that financial sustainability is the major financial risk for the charity. A key element in the management of financial risk is a regular review of available liquid funds to settle debts as they fall due, regular liaison with the bank and active management of trade debtors and creditors balances to ensure sufficient working capital by the Museum.

Attention has also been focused on non-financial risks arising from fire, health and safety of patrons, management of artefacts. These risks are managed by ensuring accreditation is up to date, having robust policies and procedures in place, and regular awareness training for staff working in these operational areas.

Trustees’ responsibilities in relation to the financial statements

The charity trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including income generation or cost savings. In preparing the financial statements, the trustees are required to:

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

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.

Statement as to disclosure to our auditors

14

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

By order of the board of trustees

Alan Newman Chair, Freud Museum Trustees 23 November 2021

15

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE FREUD MUSEUM LONDON FOR THE YEAR ENDED 31 MARCH 2021

Opinion

We have audited the financial statements of The Freud Museum London (the ‘Charity’) for the year ended 31 March 2021 which comprise the Statement of Incoming Resources and Application of Resources, Balance Sheet, Statement of Cashflows 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, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements:

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 Auditorʼs responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRCʼs 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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 auditorʼs report 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.

16

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE FREUD MUSEUM LONDON FOR THE YEAR ENDED 31 MARCH 2021

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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:

Matters on which we are required to report by exception

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

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

Responsibilities of the trustees

As explained more fully in the trusteesʼ responsibilities statement set out on page 15, the trustees 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 they 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 Charityʼs 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 Charity or to cease operations, or have no realistic alternative but to do so.

17

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE FREUD MUSEUM LONDON FOR THE YEAR ENDED 31 MARCH 2021

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 an auditorʼs report 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Councilʼs website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditorʼs report.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

18

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE FREUD MUSEUM LONDON FOR THE YEAR ENDED 31 MARCH 2021

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matter

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued during October 2019 which is referred to in the extant regulations.

This has been done in order for the financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2019.

Use of our report

This report is made solely to the Charityʼs 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 Charityʼs members those matters we are required to state to them in an auditorʼs 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 Charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed.

19

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE FREUD MUSEUM LONDON FOR THE YEAR ENDED 31 MARCH 2021

Sanjay Parmar (Senior Statutory Auditor) For and on behalf of Jeffreys Henry LLP Chartered Accountants Statutory Auditors Finsgate 5-7 Cranwood Street London EC1V 9EE

Dated: 23 November 2021

20

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

STATEMENT OF FINANCIAL ACTIVITES SUMMARY OF INCOMING RESOURCES AND APPLICATION OF RESOURCES FOR THE YEAR ENDED 31 MARCH 2021

Notes
Income:
Donations and legacies
4.1
Activities for generating funds
4.1
Investment income
4.1
Incoming resources from
Charitable activities
4.2
Other incoming resources
4.3
Total incoming resources
Expenditure:
Costs of generating funds
Fundraising expenditure
5.1
Management and administration
5.2
Total expenditure
Net income for the year
Reconciliation of funds
Total funds brought forward
Total Funds carried forward
10, 11		 Restricted
Funds
£
130,645
-
-
-
-
130,645
(18,503)
(69,471)
(87,974)
42,671
3,837,267
3,879,938		 Unrestricted
Funds
£
331,714
5,939
96
169,999
12,300
520,048
(31,552)
(422,045)
(453,597)
66,451
215,927
282,378		 Year Ended
31-Mar
31-Mar
2021
2020
£
£
462,359
205,625
5,939
64,240
96
131
169,999
368,061
12,300
60,100
650,693
698,157
(50,055)
(92,475)
(491,516)
(576,484)
(541,571)
(668,959)
109,122
29,198
4,053,194
4,023,996
4,162,316
4,053,194		 Year Ended
31-Mar
31-Mar
2021
2020
£
£
462,359
205,625
5,939
64,240
96
131
169,999
368,061
12,300
60,100
650,693
698,157
(50,055)
(92,475)
(491,516)
(576,484)
(541,571)
(668,959)
109,122
29,198
4,053,194
4,023,996
4,162,316
4,053,194
698,157
(92,475)
(576,484)
(668,959)
29,198
4,023,996
4,053,194

The statement of financial activities has been prepared on the basis that all operations are continuing operations. There are no recognised gains or losses other than those passing through the statement of financial activities.

21

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

BALANCE SHEET AS AT 31 MARCH 2021
Notes
Fixed Assets
Tangible assets
6a
Investments
6b
Current Assets
Stocks
7
Debtors: amounts falling due
within one year
8
Cash at bank and in hand
Creditors: amounts falling
due within one year
9
Net Current Assets
Creditors: amounts falling
due after one year
Net Assets
The Funds of the charity
Members’ funds
12
Restricted funds
10
Unrestricted funds
11		 £
5,280
103,124

478,181
586,585
(154,333)		 2021
£
3,771,634
100
3,771,734
432,252
(41,667)
4,162,319
3
3,879,938
282,378
4,162,319		 £
5,730
97,563
259,649
362,942
(93,280)		 2020
£
3,783,435
100
3,783,535
269,662
-
4,053,197
3
3,837,267
215,927
4,053,197

The trustees have prepared accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the Company.

The notes at pages 22 to 34 form part of these accounts.

The financial statements were approved and authorised for issue by the Board of Trustees on 17 November 2021.

Alan Newman, Chair of trustees on behalf of the trustees

22

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

Company Registration No. 5467415

STATEMENT OF CASHFLOWS FOR YEAR ENDED 31 MARCH 2021

Note
Cash used in operating activities
15
Cash flows from investing activities
Purchase of tangible assets
Cash (used in) investing activities
Cash flows from financing activities
Cash used in financing activities
Increase in cash and cash equivalents
in the year
Cash and cash equivalents at the beginning of
the year
Total cash and cash equivalents at the end of the year
Net debt statement
Cash and cash
equivalents
At 1 Apr 2020
Cash flows
£
£
Cash
259,649
218,532
259,649
218,532		 Note
Cash used in operating activities
15
Cash flows from investing activities
Purchase of tangible assets
Cash (used in) investing activities
Cash flows from financing activities
Cash used in financing activities
Increase in cash and cash equivalents
in the year
Cash and cash equivalents at the beginning of
the year
Total cash and cash equivalents at the end of the year
Net debt statement
Cash and cash
equivalents
At 1 Apr 2020
Cash flows
£
£
Cash
259,649
218,532
259,649
218,532		 2021
£
169,766
(1,234)
(1,234)
50,000
-

218,532
259,649

478,181

Other non-cash
changes
£
-		 2020
£
20,624
(3,538)
(3,538)
-
-
17,086
242,563
259,649
At 31 Mar 2021
£
478,181
259,649
218,532		 - **478,181 **

23

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. Accounting Policies

a. Basis of preparation

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 UK and Republic of Ireland (FRS 102) (effective 1 January 2019) (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102),and the Companies Act 2006.

The Freud Museum London meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

b. Reconciliation with previous Generally Accepted Accounting Practice

In preparing the accounts, the trustees have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 the restatement of comparative items was required.

At the date of transition in applying the requirement to recognise liabilities arising from employee benefits, no liability was recognised for the short-term compensated absence arising from employee entitlement to paid annual leave. No other restatements were required. In accordance with the requirements of FRS 102 a reconciliation of opening balances is provided.

c. Preparation of accounts on a going concern basis

The Charity reported a cash inflow of £218,532 for the year. The trustees have considered the Charity’s forecasts and projections taking particular account of reduced visitor numbers on self-generated revenue as a result of government restrictions implemented in response to the COVID-19 pandemic. The trustees are of the view that reserves held and income from its activities will enable the Charity to continue for the next 12 months.

The financial statements present information about the company as an individual undertaking and not about its group. The company and its subsidiary undertaking comprise a small-sized group. The Company has therefore taken advantage of the exemptions provided by section 405 of the Companies Act 2006 not to prepare group accounts.

1.2 Income

Income is recognised in the period in which the charity is entitled to receipt and the amount can be measured with reasonable certainty. Income is deferred only when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

24

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

For legacies, 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 (s) to the Museum 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 to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

1.3 Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time is not recognised and refer to the trustees’ annual report for more information about their contribution.

On receipt, donated professional services and donated 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 services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

1.4 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

1.5 Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which trustees’ have decided at their discretion to set aside to use for a specific purpose.

Funds are designated as temporarily restricted when income is limited by donor-imposed stipulations that either expire by the passage of time or can be fulfilled and removed by actions the company pursuant to those stipulations. When such stipulations end or are fulfilled, such temporarily restricted net assets are reported in the statement of activities as net assets released from restrictions. However, if a restriction is fulfilled in the same period in which the contribution was received the company reports the funds as unrestricted.

25

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1.6 Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Resources expended comprise of the following:

All resources expended are classified under activity headings that aggregate all costs related to the category. Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

1.7 Allocation of support costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity, it is necessary to provide support in the form of financial procedures, provision of office services and equipment and a suitable working environment.

Management and administration costs include expenditure to ensure compliance with constitutional and statutory requirements.

1.8 Tangible fixed assets and depreciation

The bulk of the Museum’s fixed assets are historic and inalienable. They consist of the freehold property occupied by the Museum at 20 Maresfield Gardens, and the Collection held by the Museum. The building was the home of Sigmund Freud in 1938 and 1939 and the place of his death, and subsequently the home of his daughter Anna Freud. It was purchased from Miss Freud at a cost of £70,000 on September 30 1980, and formed the principal asset of the Charitable Trust established by a Deed of Declaration of Trust by Sigmund Freud Archives Inc. The contents include the library, personal effects, and collection of antiquities formerly owned by Sigmund Freud and bequeathed to the Trust on the death of Miss Freud in 1982.

In the spring of 2005, the Charity commissioned an external valuation of 20 Maresfield Gardens from Stiles Harold Williams, a firm of chartered surveyors. Made in accordance with the Practice Statements in the Appraisal and Valuation Manual of the Royal Institution of Chartered Surveyors, their report dated 7 April 2005 appraises the market value of the freehold interest at £3.75m. In view of the high standard of physical maintenance of 20 Maresfield Gardens and the prime quality of the house as a residential property in a sought-after part of London, the Trustees consider that it is unlikely that the value of the asset has declined since 2005. In the light of the high cost of valuation fees, the Trustees have decided that to conduct a new valuation would bring no commensurate benefit of a kind which would promote the objects of the charity.

This valuation was valid at 1[st] April 2016 and is considered the deemed cost under FRS 102 transitional requirements of the property going forward.

26

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

No value is attributed in the balance sheet to the Collection. Under FRS 102 and the SORP transitional rules, non-capitalisation is permitted if the value to the charity cannot be estimated, or where the cost of obtaining a valuation is burdensome. The Collection consists of a very large number of items, which would be costly to value individually, with no commensurate benefit to the Objects of the Charity.

The Museum has maintained since 1985 an Acquisitions and Disposals Policy in accordance with its stated objects. This was superseded in March 2005 by a new such policy, modelled on the standard wording recommended by the Museums, Libraries and Archives Council. Detailed guidelines and procedures regulate disposals. These include a provision that no material shall be de-accessioned purely for financial gain, and a requirement that acquisitions or disposals should first be subject to discussion with a number of other specified museums and archives with objects and collections similar to the Freud Museum’s. A copy of the policy may be obtained on written request from the Trustees.

The freehold property has a useful life in excess of 50 years and is subject to an annual impairment review. Hence no depreciation is provided.

Depreciation is provided on other tangible assets at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

Fixtures, fittings and equipment - 20% Straight Line

1.9 Stock

Stock is valued at the lower of cost and net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would be willing to pay for the items on the open market.

1.10 Debtors

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

1.11 Cash at bank and in hand

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

1.12 Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.13 Financial instruments

The Museum only has financial assets and financial liabilities of a kind that qualify as basic instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using effective interest method.

27

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the full extent that these are applied to its charitable objects.

3. Legal status of the Museum

The Museum is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

4
Income
4.1 Voluntary income
Restricted funds
Grants
Arts Council England/Culture Recovery Fund
Kreitman Foundation
New-Land Foundation
Tangent Trust
Museum of London
Ho Foundation
Botstiber Foundation
Arts Council England/ Outreach
Arts Council England/Uncanny
Museum Development Project
City of London
Wunderblock
Freud & Egypt (UCL)
Anna Freud Foundation/Oral History
Unrestricted funds
Coronavirus Job Retention Scheme
Camden Council Coronavirus Relief Grants
Other grants relating to pandemic relief
Other grants and bequests
Donations and membership subscriptions		 2021
£
80,000
21,989
10,697
10,000
5,000
1,670
640
595
54
-
-
-
-

-
130,645
185,334
40,572
2,639
14,409
88,760
331,714		 2020
£
-
6,507
-
-
-
-
3,331
1,646
12,395
89,699
3,392
1,564
1,437
131
120,102
-
-
-
21,067
64,447
85,523

28

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Activities for generating funds
Sale of prints
Premises hire
Object hire
Sundry income

Investment income
Unrestricted funds
Bank interest receivable
4.2 Income from charitable activities
Admission charges
Public programmes
4.3 Other income
Management fees receivable		 2021
£
450
300
-
5,189
5,939

96
96
23,507
146,492
169,999
12,300
12,300		 2020
£
690
46,328
630
16,592
64,240
131
131
263,543
104,518
368,061
60,100
60,100

The Museum benefits greatly from the involvement and enthusiastic support of its many volunteers, details of which are given in our annual report. In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the accounts.

All of the Museum’s investment income of £96 (2020: £131) arises from money held in interest bearing deposit accounts.

29

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

5.
Analysis of expenditure on charitable activities
£
Restricted
5.1
Expenditure on generating funds
Cost of Prints
-
Marketing Costs
-
Archives and Conservation
2,017
Programmes
12,799
Fund raising
3,687
18,503
5.2
Management and administration costs
Administrative wages and salaries
55,781
Specific project wages and salaries
-
Employer’s N.I. contributions
-
Rates
-
Insurance and security
-
Light and heat
-
Repairs, maintenance and cleaning
6,818
Travelling & entertainment
-
Telephone
-
Computer running costs
-
Printing postage and stationery
-
Hire of equipment
-
Professional and consultancy fees
6,872
Auditors’ remuneration
-
General expenses
-
Subscriptions
-
Bank & other charges
-
Irrecoverable VAT
-
Bad debt provision
-
Depreciation
-
69,471		 £
Unrestricted
450
2,154
3,585
23,574
1,789
31,552
295,443
-
14,980
3,673
15,090
5,822
27,309
177
5,173
12,081
5,216
1,147
10,585
7,296
764
268
1,204
-
2,782
13,035
422,045		 2021
£
450
2,154
5,602
36,373
5,476
50,055
351,224
-
14,980
3,673
15,090
5,822
34,127
177
5,173
12,081
5,216
1,147
17,457
7,296
764
268
1,204
-
2,782
13,035
491,516		 2020
£
690
10,611
9,264
71,581
329
92,475
406,685
-
30,026
6,365
19,788
8,259
20,821
813
7,245
15,535
7,422
1,562
22,628
6,480
5,701
858
1,964
-
1,350
12,982
576,484
5.3
Net expenditure for the year
Depreciation
Auditor remuneration:
Audit fees
Accountancy services		 2021
£
13,035
7,296
4,818
25,149		 2020
£
12,982
6,480
680
20,142

30

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

5.5 Staff numbers

The average monthly head count was 18 staff (2020: 18 staff) and the average monthly number of full-time equivalent employees (including casual and part time staff) during the year were as follows:

Trading
Governance		 2021
17
1
18		 2020
17
1
18

6a. Tangible fixed assets

Cost
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net Book Values
At 31 March 2021
At 31 March 2020		 Freehold
Property
£
3,750,000
-
3,750,000
-
-
-
3,750,000
3,750,000		 Fixtures
Fittings
Equipment
£
180,212
1,234
181,446
147,477
13,035
160,512
20,934
32,735		 Collection
acquisitions
£
700
-
700
-
-
-
700
700		 Total
£
3,930,912
1,234
3,932,146
147,477
13,035
160,512
3,771,634
3,783,435

The Museum has confirmed that they will use the cost value as at 1 April 2016 under FRS 102. This is now considered the deemed cost of the property.

31

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6b. Fixed asset investments

Cost
At 1 April 2020
Additions
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Shares in group
undertaking and
participating
interests
£
100
-
100
100
100

Holdings of more than 20%

The company holds more than 20% of the share capital of the following company:

Country of Shares held
Company registration or
incorporation		 Class %
Subsidiary undertakings
Freud Museum Publications Limited United
Kingdom		 Ordinary 100

The aggregate amount of capital and reserves and the results of this undertaking for the last relevant financial year was as follows:

Capital &
Reserves as at		 Loss for the
31 March year
2021 2021
£ £
Freud Museum Publications Limited 129 (272)

The trading subsidiary operates the shop within the Freud Museum selling books and souvenirs relating to the life and works of Sigmund Freud.

32

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

7.
Stocks
Finished goods and goods for resale
8.
Debtors
Trade debtors
Other debtors
Prepayments
9.1
Creditors: amounts falling due within one year
Trade creditors
Other taxes and social security costs
Other creditors
Bounce Back Loan current portion
Accruals
Deferred grants		 2021
£
5,280
5,280
2021
£
34,162
50,130
18,832
103,124
2021
£
27,767
9,100
11,537
8,333
12,967
84,629
154,333		 2020
£
5,730
5,730
2020
£
21,982
68,707
6,874
97,563
2020
£
10,280
21,249
7,661
-
12,967
41,123
93,280

Deferred grants of £84,629 (2020 - £41,123) relate to donations that have not yet fully met the criteria of the donors and cannot be recognised as income in the current period. Grants deferred as at 31 March 2021 relate to Ace Oral History (£6,945), Ace Outreach (£6,939), Ace Uncanny (£394), Rothschild Foundation (£7,625), Ho Foundation (£59,160) and the Botstibers Foundation (£3,466).

33

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

9.2 Creditors: amounts falling due after one year

2021 2020 £ £ Bounce Back Loan 41,667 -

The Bounce Back loan of £50,000 was taken out in June 2020. The loan is repayable after 6 years and incurs interest at a rate of 2.5% per annum. No repayment was required, and no interest accrued, for the first 12 months of the loan up to June 2021, monthly repayments of capital and interest are made to the bank thereafter.

10. Movement on restricted funds

01 April
2020
Income
and
Transfers Expenditure
31 March
2021
Restricted Income Funds
£
£
£
£
Freehold Property Revaluation Reserve
3,680,000
-
-
3,680,000
Other Grants and Donations
78,326
87,959
(87,974)
78,311
Development Fund Reserve
78,941
42,686
-
121,627
Total Restricted Funds
3,837,267
130,645
(87,974)
3,879,938
11.
Movement on unrestricted (General) fund
2021
2020
£
£
Retained surplus at 1 April
215,927
265,670
Surplus/Deficit for the financial period
66,451
(49,743)
Retained surplus at 31 March
282,378
215,927		 01 April
2020
Income
and
Transfers Expenditure
31 March
2021
£
£
£
£
3,680,000
-
-
3,680,000
78,326
87,959
(87,974)
78,311
78,941
42,686
-
121,627		 01 April
2020
Income
and
Transfers Expenditure
31 March
2021
£
£
£
£
3,680,000
-
-
3,680,000
78,326
87,959
(87,974)
78,311
78,941
42,686
-
121,627		 01 April
2020
Income
and
Transfers Expenditure
31 March
2021
£
£
£
£
3,680,000
-
-
3,680,000
78,326
87,959
(87,974)
78,311
78,941
42,686
-
121,627
3,837,267
130,645		 (87,974)
3,879,938
2021
£
215,927
66,451
282,378		 2020
£
265,670
(49,743)
215,927

34

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

12. Reconciliation of movement in members’ fund

Surplus for the financial period
Contribution for members
Opening members' funds
Closing members' funds
13.
Staff and Trustees
13.1 Staff costs
Wages and salaries
Social security costs		 2021
£
-
-
3
3
2021
£
351,224
14,980
366,204		 2020
£
-
-
3
3
2020
£
406,685
30,026
436,711

The average number of staff employed during the year was 18 (2020: 18)

There were no employees whose total remuneration exceeded £60,000.

The key management personnel of the Museum, comprise the trustees, the Director and Curator. The total employee benefits of the key management personnel of the Museum were £44,369 (2020: £44,369).

The charity contributed £6,811 (2020: £8,521) in employer pension contributions. This benefit started in January 2017. This is an auto-enrolment scheme run by a third party.

14. Related party transactions

At the year end, the charity was owed £27,572 (2020: £67,186) by the subsidiary company, Freud Museum Publications Limited, shown in other debtors and £34,032 (2020: £16,740) shown within Trade debtors. Capital repayments of £nil (2020: £nil) and interest of £nil (2020: £nil) were received during the year.

35

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

During the year the charity received management fees of £12,300 (2020: £60,100) from Freud Museum Publications Limited and received a donation of £10,000 (2020: £40,000).

15. Reconciliation of net movement in funds to net cash flow from operating activities

Net movement in funds
Add back: Depreciation
Decrease in stock
(Increase) / decrease in debtors
Increase / (decrease) in creditors		 2021
£
66,435
13,035
450
(5,560)
95,406
169,766		 2020
£
29,198
12,981
690
(183)
(22,062)
20,624

36

THE FREUD MUSEUM LONDON (CHARITABLE COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Post balance sheet events

Following the closure of the Museum on 18 March 2020 the Trustees have continued to assess the impact of the coronavirus pandemic on the financial position of the Trust and budgets for future years adjusted accordingly. No adjustments have been made to the financial results for 2020-21. There were no other events that occurred post year end that require disclosure.

37