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2023-03-31-accounts

London Transport Museum Limited

Annual report and financial statements 2022/23

Registered Office 5 Endeavour Square London E20 1JN

Registered in England and Wales Company number: 06495761 Charity number: 1123122

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Contents

tents
Strategic Report 3
Messages from the trustees 3
Our purposes and principles 4
Strategic framework 4
Achievements and performance 6
Successful recovery from the pandemic 7
Highlights of 22/23 8
Future plans 9
Financial review 10
Trustees Report’
Structure, governance and management 12
Reserves policy 12
Disclosure of information to auditors 25
Trustees’ statement 26
Trustees and advisers 27
Independent Auditor’s report 30
Consolidated statement of financial activities 35
for the year ended 31 March 2023
Balance sheets as at 31 March 2023 36
Notes to the financial statements 37
Our supporters 57

London Transport Museum Limited Annual Report and Financial Statements for the year ended 31 March 2023

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Strategic report

Message from the Trustees 22/23

This at last was our first full uninterrupted year since the onset of the pandemic in March 2020. The Museum’s strong recovery across all activities in the portfolio was a revelation, at a rate significantly ahead of other London museums. This was underpinned by visitor numbers recovering from 64 per cent last year to 100 per cent of pre-pandemic visitor numbers at Covent Garden. Amongst strong commercial performance across all lines, Retail had its most successful year ever with sales onsite at Covent Garden 35 per cent ahead of 2019/20 and retail sales, on site and online together reaching £3.9m, £1m better than any previous year.

Our outreach programmes were welcomed back into schools after the digital interlude, the in-person approach being welcomed back for Junior Citizenship and in-school presentations (77,717). Corporate membership and sponsorship exceeded targets, boosted by the strong decarbonisation theme of the Interchange thought leadership programme and by a keen interest in promoting skills and employment to serve the engineering and transport industry with 46,456 taking part in facilitated sessions and bespoke programmes and 102,723 taking part in programming during school holidays. Venue Hire experienced high and short-term demand as well as developing the opportunity of film and location hire at the Acton Depot.

Innovative approaches and digital delivery learned during the lockdowns continued to enrich and increase the reach of much of our public programming. Hidden London tours recovered to pre-pandemic levels of demand, supported by new approaches to staffing and new locations such as Shepherd’s Bush. The Hidden London Hang-Outs crossed the Rubicon of one hundred episodes, and 141 Patreons, while viewings on YouTube rose steadily through the year to regularly exceed 50,000 per episode. New and authentic web content, upgraded museum galleries, and recording the third series of Secrets of the London Underground reflected our belief in the power of authentic and engaging story telling.

The tenacity and creativity of the Museum’s staff group continues to be the energetic driver of recovery by being agile in learning lessons about digital opportunity and the power of experiences while reaping the benefits of a strong position with domestic audiences in the recovery. The support of TfL at every level, the collaborative, open and honest leadership of the executive team and the ready support of the Trustee group have powered business recovery and provided a platform to reset the Museum’s future vision and strategy. Work to regain and regroup our volunteers was reflected in once more achieving the Investors in Volunteers standard.

We ended the year with an operating surplus before depreciation and capital income of £2.3m, due to beating our admissions and commercial budgets. Industry awards for the Venue Hire team, the Legacies exhibition, the Hidden London tours and the Venue Hire teams demonstrated our reputation for innovation and excellence amongst our peers.

We owe a massive debt of gratitude to Arts Council England, the Department for Digital Culture Media and Sport, HM Treasury, Transport for London, LTM Friends, members, donors, volunteers and followers for standing by us and returning to enjoy a full roster of London Transport Museum Limited Annual Report and Financial Statements for the year ended 31 March 2023

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museum visits, thought leadership events, schools outreach, guided tours, open days, vehicle outings, Friday Lates, our TV series and digital offer. A remarkable collection of staff and volunteers have gripped the opportunity to reset the upward course of the Museum across our broad portfolio of activities and lay the groundwork for a sustainable future.

In November 2022, Director & CEO Sam Mullins told the board he would be stepping down after 29 years. In May 2023, after a comprehensive search and selection process, Elizabeth McKay, the current Chief Operating Officer was appointed as his successor. She will take up the role from August this year.

Keith Ludeman, Chair and Sam Mullins OBE, Director and CEO

Our purpose and principles

Our purpose

Igniting curiosity to shape the future.

Our work is guided by four principles:

• For everyone

Everyone feels the Museum, collections and experiences are for them.

Everything we do is creative, dynamic and resourceful.

We are a window on the past, present and future of how transport keeps London working and growing.

• Dedicated and personal

We go the extra mile to deliver.

Strategic framework

Our strategic aims

We had four strategic priorities this year to combat the challenges of our recovery from the pandemic. In setting London Transport Museum’s aims and planning our activities, the Trustees have carefully considered the Charity Commission’s guidance on public benefit.

Content – being the world’s leading museum of urban transport

We conserve and enhance our world class collection, making it accessible for exhibitions, education, online and events. We are a window on the past, present and future of transport in London. Our concept of ‘content’ embraces the collection and associated stories and the duty to hand it on in great shape to future generations.

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LTM believes that our stories, collection and experiences can help everyone to understand more of the world they live in. We think about ‘content’ as all forms of communication on all platforms. We aim to reach ever wider audiences in London, the UK and the world.

Experiences – create experiences that delight and inspire

Our aim is to stimulate creativity from an early age and inspire the next generation to realise their potential. We have exciting learning and public programming that delivers engaging initiatives on and offsite and through digital platforms. We are committed to provoking debate and advocacy about transport’s central role in London’s future.

People make their own meanings and we support this by helping our visitors, audiences and customers make connections through unique experiences. In the overall experience, from planning a visit to the memories they take away, our aim is to delight and inspire people. Meeting or exceeding our customers’ expectations are essential to our financial sustainability; we depend on this income stream for eighty percent of our revenue.

People – nurture a culture that’s united behind our purpose

We develop the individual skills of our people, sharpen the capability of our organisation and build a values-led workplace that promotes employees’ creativity and loyalty. We strive to partner and collaborate with like-minded and forward-looking organisations. We are investing significantly in LTM’s technological capability and content to extend our reach in the future.

Everyone should feel the Museum, its collections and experiences are for them. Our priority is to broaden our reach, build awareness, support and influence for LTM as widely as possible in all our communications and public-facing activities. We will promote the diversity of our staff, visitors and our volunteers to support this aim.

We are committed to creating a culture that supports our purpose and encourages behaviour that is inclusive, collaborative, courageous and active. We continue to pursue an inclusive culture where everyone is treated fairly and to make our workforce reflective of London’s diversity. Our intent is for a culture where everyone can realise their potential. We are also committed to addressing poor performance where found and to improving leadership capability.

We have continued to invest time and energy this year embedding the strategic framework to guide all that we do and believe it has given added structure and supported the strategic priorities leading to a successful recovery.

We consider Reach, Quality, Impact and Value-for-Money for all our activities and regularly report progress of the key performance indicators to the Board within our LTM Dashboard.

Money – generate the funds that make a difference

We operate a successful business-like charity and aim to grow revenue in creative new ways and invest in our future, year on year.

London Transport Museum Limited Annual Report and Financial Statements for the year ended 31 March 2023

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Financial sustainability for LTM requires reserves to fund capital investment, and this depends on the success of key income streams to fund our purpose. Our main income streams are from visitors, fundraising and our Enterprise businesses including retail, venue hire, corporate membership, commercial sponsorship, food and beverage, and Hidden London.

To achieve financial sustainability, it is essential that we charge admission fees to visitors to the Museum at Covent Garden, the Museum Depot at Acton and for participation in our offsite experiences such as Hidden London tours and Heritage vehicle operations. These are reviewed annually and benchmarked to ensure they remain affordable to Londoners and all visitors.

The Museum charges admission fees and takes measures to ensure that charges are not a barrier to participation. These include free entry to the Museum for anyone aged 17 or under, for carers accompanying disabled visitors, and reduced admission charges for senior citizens, students and those in receipt of universal and pension credits. We offer a community discount to encourage visits from those living near to the Acton Depot and to the Museum in Covent Garden. Museum admission tickets are valid for one year to encourage return visits and increase value for money for visitors. Many of the Museum’s outreach programmes are free to participants. The TfL-funded STARS programmes engage tens of thousands of pupils each year and are delivered at no cost to the schools taking part. We also provide free content through our website, YouTube and other channels for people who do not visit LTM in person.

Achievements and performance

We have seen recovery this year in every line of our activities, led by a return to prepandemic levels of visits to the Museum in Covent Garden (399,000) and outstanding Trading sales of £6.8m; two million more than ever achieved before. Our bounce back was significantly enabled by the government and TfL support, which helped us weather the Covid years by allowing us to retain staff whose capacity and creativity then fuelled the recovery.

Our achievements this year have been significant and generally ahead of the pack. Only two attractions in London showed a faster recovery than LTM. With our businesses recovering quickly and many lessons learned from the response to the pandemic years, we are now able to plan with some confidence for the longer term, despite the ongoing uncertainties in the world around us.

We pursued four key strategic priorities, Content, Experiences, People and Money to integrate our work and focus on recovery.

The Dashboard is reported biannually to Trustees. This comprises a selection of the performance indicators considered to give the Executive and Trustees a rounded insight into LTM’s progress. LTM developed a success framework to ensure that all activity considered Reach, Quality, Impact and Value/Income (RQIV). LTM has used the RQIV framework to set targets and monitor performance for projects, teams and individuals and is continuing to develop and integrate the framework into all our work.

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Context- successful recovery from the pandemic

The onset of the coronavirus pandemic in March 2020 threatened the very existence of the Museum. As the year 2022/23 closes, we have put this behind us and recovered across the broad spectrum of all our activities to pre-pandemic levels and in many cases significantly ahead of 2019/20.

In 2022/23, the Museum was open once more for 361 days, that is the whole year, and visitor numbers climbed back to 2019/20 levels, while Retail store sales ended the year 35 per cent higher than the previous best year. This has enabled a return to a comfortable operating surplus, to be reinvested in the Museum’s capital programme and long-term growth.

The culture of LTM remains strong and continues to be an organisation where innovation is encouraged, our charitable aims well embedded, and our people pull together to create high-quality experiences, content and products for our visitors, audiences and customers. Nevertheless, the employment environment remains volatile, the reward and retention of our workforce an area of high strategic risk and the health and wellbeing of colleagues a priority.

Financial response

We remained prudent in budgeting, cautious about sustaining the recovery in visitor numbers, and whether trading activities would recover, in the light of uncertain macroeconomic conditions and restrictions.

We were delighted to achieve a return to 100 per cent of 2019/20 visitor figures and associated outstanding performance in our commercial lines. We did face challenges in delivering the level of capital investment intended, compounded by internal and external challenges around resourcing, securing supplier availability and procurement, and we remain mindful of the increasing inflationary challenges in this area.

With a forward view which remains cautiously optimistic, we have been able to devise a five-year strategy with a healthy reserves base available for investment in people and systems to secure long term growth. We will focus on a greatly expanded programme of capital investment in critical areas to restore the value of our asset base, with a targeted focus on Green and sustainable capital work. We will make key investments in headcount and systems to support our outstanding colleagues to deliver their visions for LTM.

We are deeply grateful to Arts Council England (ACE) for continued support via National Portfolio Funding and to our parent organisation, TfL, for its ongoing financial and soft support. Our corporate members and sponsors have tangibly demonstrated their loyalty and commitment to LTM and we value their input and financial support.

Page 10 sets out the financial review of the year’s performance.

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Highlights of 2022/23

Whilst the past year has seen significant recovery, we continue to be an organisation which learns quickly and is agile in programming and seeing funding opportunities.

People – nurture a culture united behind our purpose

New appointments to both boards have strengthened the purpose and capacity of our governance group. The return to regular in-person meetings has increased our contact with board members and involved them earlier in investment decisions, strategy development and major projects through informal groups and committees.

The weekly LTM Life bulletin remains a key internal and stakeholder communications medium, enabling us to bring together staff, volunteers, contractors, Friends, Patrons and board members in our well-informed, open and agile working culture. Investment in a creative and committed staff group culture has also been fostered through collaborative work on equality, diversity and inclusion and is reflected in a positive improvement in key staff survey scores on job pride, satisfaction, commitment and collaboration across teams.

Our People group really came into its own, feeding back on Viewpoint scores and concerns to each level and department of the Museum. The All Change group created a definition for inclusion at LTM across staff, volunteers, audiences, culture and ways of working: For LTM, inclusion is about actively involving people with different backgrounds and personal characteristics in what the Museum is and does.

We have built on our ability to engage audiences through participatory practice, especially in developing the Acton Access projects based on the Depot.

The major hurdle of retendering and installing a new ticketing system was successfully crossed, reversing the poor service from our interim provider. A similar approach will now procure and install a customer relationship management system to enhance our ability to secure and retain customer loyalty.

Our People Group advised us on the results of the Viewpoint staff survey and helpfully presented an action list department by department to the staff group. The return and review of volunteering was supported by once more achieving the Investing in Volunteers standard.

The offices at 39 Wellington Street were remodelled to better facilitate new ways of working. We began the search to replace our Albany House premises where the lease will end in December 2024.

Experience – creating experiences that delight and inspire

We now think holistically across the experiences we provide through our collections and stories. We appreciate that real experiences remain highly valued, so we think in hybrid terms and for multi-platform delivery. We envisage making efficient and multiple use of our fresh and authentic content across all strands of our activity using what we have learned from Hidden London, with tours, virtual tours, YouTube Hangouts and web content.

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Our Interchange thought leadership programme published its latest report - Decarbonising Public Transport – which was well received by the extended transport community and continued to be a benefit to our partnerships with the industry.

Poster loans have been secured as part of the launch of the new Poster Gallery later in 2023, while an innovative partnership has been created for the new Photography Gallery to include contemporary photographs of shelterers in the Kyiv metro alongside Tube sheltering in London in the Second World War.

Our Legacies exhibition was shortlisted for a national award and continued to be a beacon of participatory practice for our other public programmes. New Hidden London tours were developed at Shepherd's Bush along with taster tours to introduce the nine locations now in our repertoire.

The collecting of 40+ interviews to record the Crossrail legacy has just commenced with funding from the project and the support of former CEO Mark Wild.

Series 3 of Secrets of the London Underground has been recorded and will be broadcast in 2023.

Experience highlights – creating experiences that delight and inspire

LTM supported TfL’s Tube160 campaign, Love the Tube, with press work at the Baker Street launch, heritage vehicle runs and new merchandise.

A return to timed tickets has been needed to manage and reduce queuing at Covent Garden and spread high demand through the museum day as visitors have returned in high numbers especially during holiday periods. Visits during the Easter holidays were high, with 33,000 visitors and the February half term was exceptionally busy with 27,747 in nine days. The March Depot Open Weekend returned to open access with 6,625 visitors, record takings on the Miniature Railway and in the Shop and for Friends memberships.

Hidden London tour sales at 31,690 climbed ahead of 2019/20 numbers and were supported by more sustainable staffing models including more permanently contracted guides.

Our Learning programme extended its reach by innovative means; a livestream ‘Connecting the Capital’ event reached 3,000 primary students across the UK. Meanwhile, we supported TfL’s Project Guardian, which was delivered to 145 schools and 8,868 students. Our ‘progression into work’ programmes were attended by 148 young people.

Future plans

The strategy for the next five years supports the rebuilding of our businesses by investing in key strategic priorities - the people, projects, and systems which provide a sound platform to sustain and develop our business lines into the future.

Following the pandemic, the reshaping of our city centres along greener and more sustainable lines towards zero net carbon by 2030 is an immediate political imperative and a high priority for Londoners, our corporate members and our visitors. LTM has embarked upon its own ‘green journey’ to reach zero net carbon as an organisation by 2030, aiming for a leadership position within the cultural sector.

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Four strategic priorities have been identified for 2023/24 to sustain our recovery: Making Great Memories, Real Green Leadership, Get Stuff Done and Life Skills for Londoners. They align well with the strategic priorities of TfL and ACE.

Key drivers include:

Getting Stuff Done in recruitment, reward and retention, in procurement and in IT support has made removing blockages in these supporting systems a strategic priority. Other key drivers operate across the organisation:

The collaborative approach to developing the Legacies exhibition has led to a rich and innovative way of working that we will extend to all content and programming notably in the Acton Access projects.

Led by the People and All Change staff groups we have been challenged to become an even more open and inclusive organisation to access the benefits of diversity and reflect the city we work in.

Financial review

Following the uncertainty of the previous two years, the Museum delivered a strong and sustainable financial position in 2022-23, without additional funding as in previous years from the Arts Council England Cultural Recovery Fund, TfL, or the Coronavirus Job Retention Scheme.

Underpinning this was the outstanding recovery of visitor income and Enterprise businesses, well ahead of budgeted expectations.

Reconciliation of operating
surplus to SOFA net surplus		 Unrestricted
£000		 Restricted
£000		 Total
£000
Operating surplus 2,285 4 2,289
Depreciation/amortisation (1,541) 0 (1,541)

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Capital income 0 221 221
Net surplus / (deficit) 744 225 969

Overall income rose to £17.2m (2022: £15.4m), driven by a rise in income from trading activities from £4.4m to £6.8m, reflecting outstanding performance in our commercial lines associated with the removal of restrictions and enthusiastic return of audiences, alongside a rise in museum admissions from £2.2m to £3.8m. These rises more than offset a drop in donations and legacies of £1.4m which was primarily due to the temporary Cultural Recovery Fund award of £1.3m received in the prior year.

Total expenditure increased to £16.2m (2022: £14.5m) predominantly due to the increased costs associated with higher volumes of commercial trading and onsite activity.

Capital expenditure totalled just £0.7m (2022: £0.6m) due to challenges in resourcing and procuring projects, causing the capital fund to reduce to £19.3m (2022: £20.1m) as depreciation exceeded investment. The Capital fund forms the majority of the Museum’s reserves and represents the net book value of the Museum’s fixed assets, rather than liquid funds readily available for use.

Restricted funds increased to £1.0m (2022: £0.8m) due to the recognition of restricted income secured close to year end, ahead of the associated programme spend planned in subsequent years. Total unrestricted non-Capital funds increased to £8.5m (2022: £6.9m).

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Trustees’ report

Structure, governance and management

Legal status and governing documents

London Transport Museum Limited (LTM) is a registered charity incorporated on 6 February 2008 as a company limited by shares; one share is issued and is owned by Transport for London (TfL). It is governed by its Memorandum and Articles of Association. Under the Greater London Assembly (GLA) Act 1999, TfL has the power to provide and maintain a museum of transport artefacts, records and other exhibits. While it is common for charities to incorporate as companies limited by guarantee, the Transport for London (Specified Activities) Order 2000 requires TfL to carry out museum activities through a company limited by shares.

Under section 5.1 of the LTM Memorandum of Association, the property and funds of the Museum must be used only for promoting the objects of the Museum, no dividend may be paid to TfL.

When London Transport Museum Limited was established in 2008, a series of written agreements was put in place between TfL and LTM. These set out an umbrella agreement for the continued provision and maintenance of the Museum, covering many aspects of the operation and funding of LTM, and the long-term relationship between the parties. Beneath this there is a funding agreement and an Intellectual Property agreement, while the Museum collection is owned by TfL and subject to a management agreement between the Museum and TfL.

As a wholly owned subsidiary company within the TfL Group, the Museum has access to substantial support and advice from other Group functions in areas such as accounting, taxation, property, marketing, internal audit, information technology, human resources and contracts. The Museum occupies premises which are owned or leased by TfL Group companies and is given access to TfL assets such as disused stations and the Underground network for heritage rail operations. Varying financial arrangements apply to the various Group services, many of which are supplied at no cost to the Museum.

LTM is governed by a Board of up to thirteen Trustees, all of whom are non-executive with the exception of the Managing Director (usually described as the Director and CEO) who is an ex officio Trustee and accountable to the Board of Trustees.

LTM has a wholly owned subsidiary, London Transport Museum (Trading) Limited (LTM(T)L) which operates retail, corporate hire and other non-charitable activities to generate funds to further the Museum’s objects. Under a Deed of Covenant, all the profits of LTM(T)L are distributed to LTM.

LTM(T)L is governed by a Board of Directors drawn from the Museum’s Trustees and staff, along with a majority of independent non-executive directors. Further information about LTM(T)L can be found in the Notes to the Financial Statements.

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Organisation

LTM is governed by a Board of Trustees. Day-to-day management of the Museum is delegated to the Managing Director (CEO), Sam Mullins OBE, and through him to the Chief Operating Officer (COO), Elizabeth McKay, and Senior Leadership Team (SLT), employees and volunteers. The SLT is made up of the Chief Financial Officer (CFO) and four Assistant Director (AD) posts, each with distinct functional responsibilities.

The Managing Director (CEO) and Chief Operating Officer (COO) are considered to represent the ‘key management personnel’ of the charity, those persons having authority and responsibility for planning, directing and controlling the day-to-day activities of the charity.

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Trustees

There are up to thirteen Trustees of LTM at any time, up to three of whom are nominated by TfL and may be members, officers or employees of TfL or the Greater London Assembly. The Board is chaired by Keith Ludeman. The Managing Director of LTM is automatically a Trustee by virtue of his office, and there are up to nine independent Trustees unconnected with TfL.

The Board meets at least four times a year for formal business and once a year for a day of strategic review. Trustees also serve on various Board committees (see below) which meet regularly throughout the year. In addition, Trustees attend Museum events and activities, meet informally, and visit other museums and heritage organisations to widen their knowledge and experience of the cultural sector.

The Board has a Nominations Committee to offer advice and make recommendations regarding the appointment of independent Trustees. We use public advertisement, personal recommendation and external search to recruit Trustees with expertise and experience that will support the strategy and operation of the Museum in areas such as community outreach, education, museum practice, commercial transportation, finance and governance, retail operations and public relations.

Trustees serve a three-year term following which they may be elected for another three years. The Articles of Association make allowance for a second extension of up to three more years in exceptional circumstances. Other than the Managing Director, who is an employee of LTM, the Trustees receive no remuneration, but TfL offers Trustees (and nonexecutive Directors of LTM(T)L) certain travel concessions. If these are not sufficient, Trustees may claim travel expenses for attending meetings.

The LTM Board is clear about the charity’s aims and ensures that these are being delivered effectively and sustainably. The Trustees adopted the revised Charity Code of Governance for Larger Charities in January 2019.

The Directors of the charitable company are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees.

Four Trustee meetings were scheduled during 2022/23 and attendance was 80 per cent.

Trustee May 2022 July 2022 October
2022		 February
2023		 Total
M Arthur 0 1 1 1 3
B Ferris 1 1 1 1 4
C Major 0 1 0 1 2
L Williams 1 0 1 1 3
S Mullins 1 1 1 1 4
M Creagh N/A 1 1 1 3
K Ludeman 1 1 1 1 4
A Smith 1 1 1 1 4
P Hendy 0 0 1 0 1
O Nwofor* 1 1 1 1 4

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G Powell* 1 0 N/A N/A 1
W Hull* 1 1 1 1 4
P Rosser 0 1 1 1 3
Lilli Matson* N/A N/A N/A 0 0
Total 8 10 11 11 40

There have been some changes to the Trustees in 2022/23.

We welcomed Mary Creagh and Lilli Matson to the Board in July 2022 and November 2022 respectively.

Mary is an Independent Trustee and chairs Lexington Responsible Business Practice. Lilli is Chief Safety Health and Environment Officer at TfL as such is one of the TfL nominated Trustees.

Gareth Powell retired from the Board during the year.

At 31 March 2023, there were 13 Trustees. More information and short biographies of the - Trustees can be found on the Museum website: https://www.ltmuseum.co.uk/about us/governance

Trustee induction and training

New Trustees undergo an orientation programme to brief them on their obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent performance of the Museum. During their induction they are invited to spend time with the LTM Managing Director and meet senior staff and are provided with relevant reference material.

Committees

The Board of Trustees has four committees:

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for Trustees, and Trustee recruitment. In particular, the Committee makes recommendations to the Board regarding the appointment of independent Trustees.

Three sub-committees also operate:

Relationship with TfL

When London Transport Museum Limited was established in 2008, a series of written agreements was put in place between TfL and LTM. These set out an umbrella agreement for the continued provision and maintenance of the Museum, covering many aspects of the operation and funding of LTM, and the long-term relationship between the parties. Beneath this there is a funding agreement and an Intellectual Property agreement, while Items in the Museum collection owned by TfL are subject to a management loan agreement between the Museum and the parent company.

As a wholly owned subsidiary company within the TfL Group, the Museum has access to support and advice from other Group functions in areas such as accounting, taxation, property, marketing and contracts. The Museum receives substantial support from parts of the TfL Group such as Finance, Human Resources (HR), Internal Audit and Payroll. The Museum occupies premises which are owned or leased by TfL Group companies and is given access to TfL assets such as disused stations. Varying financial arrangements apply to the various Group services, many of which are supplied at no cost to the Museum. Further details can be found in the Notes to the Financial Statements.

The Museum generally adopts TfL’s HR, Procurement and other policies unless a Museum-specific policy has been agreed by the Board and takes precedence. Examples of Museum policies include safeguarding, reserves, and sponsorship.

Employment policies

At the end of March 2023, the Museum directly employed 132 full-time equivalents, excluding staff employed via agencies.

The Museum is part of the TfL Framework for Consultation and Collective Bargaining. Pay negotiations for the majority of staff are conducted between the TfL Company Council for

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Collective Bargaining and the recognised trades unions which are the National Union of Rail, Maritime and Transport Workers (RMT) and the Transport Salaried Staff Association (TSSA). The Museum retains responsibility for the distribution of base pay budgets and the level and distribution of performance awards. As part of TfL’s review of its Framework, LTM is seeking to devolve greater responsibility for consultation and collective bargaining to Museum management working with local TU representatives.

Pay and remuneration of the Museum’s key management personnel, (including the Managing Director/CEO and COO but excluding the Trustees who are volunteers and receive no remuneration) is subject to the TfL Senior Management Reward Framework which uses base pay to recognise an individual’s overall value to the organisation in relation to internal and external job markets, and performance awards to reward individual contribution within the overall context of organisational performance. The framework is underpinned by TfL’s Performance Management and Competency frameworks, linking performance and behavioural assessment directly with pay and performance awards. Pay and remuneration of the Museum’s key management personnel is overseen by the Remuneration Committee.

As part of the TfL group, Museum staff receive certain staff benefits including free or discounted travel on public transport services operated by TfL. Staff are also entitled to join the TfL Pension scheme.

Charitable objectives and public benefit

When reviewing the Museum’s aims, objectives and achievements, and in planning future activities, the Trustees of LTM have had due regard to the public benefit guidance published by the Charity Commission. We believe that LTM upholds the principles of public benefit against the two key aspects established by the Charity Commission:

1. Benefit aspect: That the Museum has beneficial purposes and that any detriment or harm that results from those purposes does not outweigh the benefit.

LTM’s purposes as a charity are to advance the heritage of transport in London and to educate the public about the history of transport in London through the provision, operation and maintenance of a transport museum for the public benefit. LTM also seeks to educate the public about the wide role of transport in the life and work of London past, present and future, and to help develop the skills and employability of our beneficiaries, particularly with regard to transport and engineering.

The Museum provides clear and identifiable benefits to the public in three categories of activity: access and museum operations, education and engagement, and heritage and collections.

LTM does no harm or detriment through its charitable activities. The health and safety of staff and visitors are taken very seriously, and the Museum operates safety management systems to reduce and manage risks. We seek to manage our impact on the environment, for example, we use photovoltaic solar panels on the Museum roof.

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2. Public aspect: That the Museum delivers benefits to the public in general, and that these benefits are not unduly restricted and do not give rise to more than incidental personal benefit.

LTM delivers benefits to visitors onsite, offsite and online: at the Museum in Covent Garden and the Depot in Acton; to school children and audiences across Greater London who take part in our educational, community and engagement activities at the Museum and elsewhere; to users of our website and audiences who engage with our content on social media channels. Our audience development and community outreach work, our skills development work, and our employability programmes including those funded by Arts Council England engage with people who would not normally visit museums and galleries and help inspire the next generation of engineers and transport professionals.

The Museum at Covent Garden is fully accessible, and we welcome visitors on all but three days of the year. We have resumed our ‘usual’ activity including special early morning events for families with children who have special educational needs, and our schools’ programmes throughout term time.

Our visitors come from across London and the world. Our usual practice to take our heritage vehicles out onto the roads and rails, make historic disused stations publicly accessible, visit schools and work with local communities across the Capital has all resumed. We loan objects to other institutions to extend our reach and increase access to our collections. Our comprehensive, free online resources are available 24 hours a day and include access to information about exhibits in our gallery as well as thousands of objects not normally on public display.

Where the Museum delivers private benefits to individuals or companies, these are subject to appropriate commercial arrangements undertaken through a subsidiary company to generate funds for the Museum. No LTM or TfL staff receive private benefit other than in an incidental way and, with the exception of Sam Mullins OBE who receives a salary in respect of his position as the Museum’s Managing Director, the Board members receive no payments for their role as Trustees of the Museum.

Safeguarding

London Transport Museum aims to promote opportunities for children and young people to engage with the richness of our collection, enjoy education and employment opportunities through the Museum and our wider transport community, and to participate in the debate about the future of London.

At London Transport Museum, we are committed to excellence in the safeguarding of children, young people and vulnerable adults who engage with all our activities including our collections, programmes, education and employment initiatives. We believe that the welfare of children and vulnerable adults is paramount, and that all children and vulnerable adults, whatever their age, culture, disability, gender, racial origin, religious beliefs or sexual identity have the right to protection.

We will ensure that all concerns and allegations of abuse will be taken seriously and responded to swiftly and appropriately and that our staff, volunteers, associates and Trustees will be trained and know how to respond to concerns raised.

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London Transport Museum will promote a positive ethos of collaboration with children and/or vulnerable adults. We will take every reasonable step to ensure that all children and vulnerable adults engaged with our services are safe and protected.

We keep our Safeguarding Policy and procedures under regular review to ensure that we exemplify best practice. We undertake a substantial ongoing programme of training and communication.

Fundraising

London Transport Museum actively pursues funding from the corporate sector, trusts, foundations, statutory and industry funders and from individuals to fund our charitable activity and extend our community and audience reach. We seek to establish relationships with those who have good reason to support the Museum, particularly, those who are willing and able to work collaboratively with the Museum in the long-term. This includes, but is not exclusive to, the transport industry and companies who do business with Transport for London.

Before entering into a partnership or relationship, the Museum will assess any potential harm a partnership could have on London Transport Museum, Transport for London, Museum audiences and stakeholders.

The decision on whether to develop a partnership or relationship will be based on the following criteria:

Financial stability – are we confident that the sponsor/donor will honour the terms of the relationship, contractual and otherwise?

The above assessments are made by Museum staff. We do not employ the services of professional fundraisers or commercial participators.

Other than via admission charges for entry to the Museum, only a relatively small amount of our fundraising activity is aimed at the general public. We do not undertake street collections, telephone campaigns or employ any fundraising techniques that would constitute an unreasonable intrusion on a person’s privacy or are unreasonably persistent

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or place undue pressure on a person to give money or other property. We maintain a database of subscribers to our email newsletter, and where we collect personal information this is managed in line with current data protection legislation. If an individual has agreed to receive our newsletter, we will send regular updates that will include information about the Museum’s work, as well as our events, special offers and fundraising activities. Further information about how LTM uses personal information can be found in our privacy statement: https://www.ltmuseum.co.uk/privacy

The Museum has voluntarily subscribed to the scheme for fundraising regulation in England, Wales and Northern Ireland by the Fundraising Regulator. We also pay for membership of the Institute of Fundraising for key members of the Museum’s fundraising team.

We have received no complaints regarding our fundraising in 2022/23. The Trustees are content that all donations are in line with the Museum’s policies.

Information transparency

Data relating to London Transport Museum, including details of reports, expenditure and Freedom of Information requests can be found by visiting the TfL Transparency pages on the TfL website:

https://tfl.gov.uk/corporate/transparency

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Reserves policy

The total held in reserves at 31 March 2023 is £28.7m (2022: £27.8m) of which £27.7m (2022: £27.0m) is unrestricted, including £19.3m (2022: £20.1m) which comprises the noncash Capital fund.

The charity has three types of reserves:

  1. General reserves are unrestricted funds which provide working capital and help deal with unplanned and unexpected expenditure or loss of funding.

  2. Designated reserves are unrestricted funds set aside by the Trustees for a specific purpose.

  3. Restricted reserves are reserves which have been created when donors or funders restrict the use of funds for a particular purpose.

The Museum has no endowment funds.

General reserves

General reserves (‘free reserves’ or ‘general unrestricted funds’) are funds not designated or restricted to a particular purpose, nor represented by fixed assets. In assessing the suitability of the adequacy of the level of free reserves, the Trustees have had regard to the Museum’s diverse income streams, cashflow requirements, the level of other designated funds, the organisation’s operational risks and the importance of TfL funding and support in the context of the Museum as a subsidiary company of TfL. An assessment has been made of the risk associated with each of the Museum’s income streams in the short to medium term, considering the certainty of the income, the targets for growth and the likely level of fluctuation that could occur. Expenditure has also been examined to identify the risk of potential increases.

The target range for general reserves is between £1.1m to £2.3m. The year-end level of general reserves is £2.3m (2022: £1.2m). A transfer of £0.4m has been made to the Museum Asset Development Fund to support the Museum’s planned investment in capital works as part of its upcoming five-year strategy.

Designated reserves

The Museum holds three designated reserves funds.

1. Museum Asset Development Fund

To contribute towards the cost of asset renewals and other future capital expenditure associated with the Museum’s premises, facilities and fixed assets.

The Museum’s capital expenditure needs are variable and although external capital grants are usually sought, they can be difficult to secure and are unlikely to meet project costs in full. The level of the Museum Asset Development Fund at year end is £4.7m (2021: £1.1m). A transfer of £3.1m was made from the Museum Strategic Development Fund and a transfer of £0.4m was made from the general fund to the Museum Asset Development Fund to cover the planned investment in capital works over the Museum’s five-year strategy from 2023-24.

2. Strategic Development Fund

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To enable the Museum to fund important projects such as gallery and exhibition improvement and educational programmes. This enables the Museum to plan ahead for long lead-time exhibitions and educational programmes by providing some level of cover for the costs of such activities as the Museum cannot always wait until it raises all the funds for a project before committing to that project. Although there is no target level for this fund, Trustees have agreed a comprehensive LTM Capital Masterplan which sets out a five-year outline of major projects and costs. The level of the Strategic Development Fund at year end is £1.5m (2022: £3.5m). A transfer of £1.1m was made from the Education Outreach Fund (now closed) to the Museum Strategic Development Fund. A transfer of £3.1m was made from the Museum Strategic Development Fund to the Museum Asset Development Fund.

3. Capital Fund

To represent the net book value of the Museum’s tangible and intangible fixed assets.

The majority of these assets were transferred to LTM from TfL on 1 April 2008, and have been subsequently depreciated, added to with capital purchases and reduced by asset disposals. Reserves equivalent to the net balance sheet value of the assets are set aside in a designated fund as they do not represent funds readily available for other purposes. From this, the value of the fund equals the net book value of the tangible fixed assets. The level of the Capital Fund at year end is £19.3m (2022: £20.1m).

Restricted reserves

The largest restricted fund is the Collections Development fund (CDF) which was established in 2012 following the auction of 400 surplus posters. The Museums Accreditation scheme requires that the disposal of any collection object creates an obligation to spend the income in a way which benefits the remaining collection. Accordingly, the Collections Development fund can only be used for acquisitions and conservation. The Museum holds £0.5m in this fund (2022: £0.6m).

The Heritage Lottery Fund, Arts Council England, Friends of London Transport Museum, DCMS/Wolfson and the Luke Rees-Pulley Charitable Trust, amid others, are all important supporters of LTM projects and programmes. Where the restricted funds supplied by these organisations only meet a proportion of project expenditure, transfers are made from unrestricted funds to meet the remaining cost. Further details concerning restricted funds can be found in the notes to the financial statements. The Museum has £1.0m (2022: £0.8m) net reserves in funds subject to restrictions.

Risk management

The Museum continues to categorise risks into Level 1 (strategic) risks and Level 2 (operational, asset, programme, and project) risks. This approach follows the risk categorisation adopted in TfL and is clear and easy to use and well understood by LTM staff and Trustees.

An exercise to identify strategic risks was included in the annual Board awayday in November 2022. This approach ensured that multiple views on risk are solicited,

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considered and refined as part of strategic planning. It was agreed that the five by five matrix continues to be an effective reporting tool and is unchanged. Following the workshop, two of the risks had descriptions revised: Safety and Staff. The other risks remained unchanged. The Board approved the new risk map at the February 2023 meeting and it is included in the two-year plan and budget.

The major risks to which the Museum is exposed are regularly reviewed and the Trustees’ risk management strategy includes the following actions:

The Museum’s strategic risks are identified as those with a potential impact that is rated ‘High’ or ‘Very High’, and which have a ‘High’ or ‘Very High’ likelihood of occurring. Two risks currently fall into the critical category:

• Staff

The museum is unable to attract and retain sufficient staff which significantly impacts services. Pressures from workload, fatigue and uncertainty has an impact on health and morale

• Infrastructure: location and condition

The age and condition of museum accommodation and infrastructure impacts services. Extreme weather damages buildings and impedes access due to transport links. Long term uncertainty with the future of leases at Covent Garden and the Depot at Acton limit future prospects.

To mitigate these risks, the Trustees and/or Leadership Team have undertaken the following actions:

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to review SLT and Heads of Department roles, facilitated by the TfL lifting the pay freeze and restarting performance pay

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Disclosure of information to auditors

The Trustees who held office at the date of approval of this Trustees’ Report confirm that, so far as they are each aware, there is no relevant audit information of which the Museum’s auditors are unaware; and each Trustee has taken all the steps that they ought to have taken as a Trustee to make themselves aware of any relevant information and to establish that the Museum’s auditors are aware of that information.

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Trustees’ statement

Statement of responsibilities of the Trustees of London Transport Museum Limited in respect of the Trustees’ Annual Report and the Financial Statements

The Trustees are responsible for preparing the Strategic Report, the Trustees’ Annual Report and the Financial Statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law they are required to prepare the group and parent company financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland.

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 group and charitable company and of the group’s excess of expenditure over income for that period. In preparing each of the group and charitable company financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that its financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the asets of the group and to prevent and detect fraud and other irregularities.

This report was approved by the Board of Trustees on 20 July 2023 and signed on its behalf by:

Keith Ludeman Chair of Trustees London Transport Museum Limited

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Trustees and advisers

Trustees and Directors

Board of Trustees

Keith Ludeman (Chair) Sam Mullins OBE (Managing Director) Marcus Arthur Lilli Matson* (from 21 November 2022)

Bill Ferris CBE Peter, Lord Hendy of Richmond Hill Mary Creagh (from 14 July 2022)

Winsome Hull BEM Christine Major Obi Nwofor Gareth Powell* (resigned 15 September 2022)

Pam Rosser Andrew Smith CVO Liz Williams MBE

Audit and Risk Committee

Finance Committee

Andrew Smith CVO (Chair) Keith Ludeman Sam Mullins OBE Obi Nwofor Pam Rosser

Keith Ludeman (Chair) Marcus Arthur Bill Ferris Winsome Hull BEM Sam Mullins OBE Andrew Smith CVO

Nominations Committee

Keith Ludeman (Chair) Lilli Matson (from 21 November 2022) Sam Mullins OBE Gareth Powell (resigned 15 September 2022) Liz Williams MBE

Obi Nwofor (temporary member for meeting on 12 October 2022)

Remuneration Committee

Liz Williams MBE (Chair)

Lilli Matson (from 21 November 2022) Keith Ludeman Sam Mullins OBE

Gareth Powell (resigned 15 September 2022)

Obi Nwofor (temporary member for meetings on 12 October 2022 and 25 January 2023)

Directors of London Transport Museum (Trading) Limited

Marcus Arthur (Chair)

Andy McWilliams (resigned 1 November 2022)

Sam Mullins OBE (Managing Director) Vincent Nolan

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Sophie Bancroft Phil Swallow Rebecca Crook (resigned 1 November 2022) Pam Rosser Bill Ferris CBE Rikesh Shah

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Advisers

Auditors

Moore Kingston Smith LLP 6th Floor 9 Appold Street London EC2A 2AP

Legal advisers

TfL In-House Legal Department Endeavour Square London E20 1JN

Bankers

HSBC 2nd Floor 62-76 Park Street London SE1 9DZ

Company secretary

Howard Carter

Museum Senior Leadership Team

To whom day-to-day management is delegated:

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Independent Auditor’s report

To the shareholder of London Transport Museum Limited

Opinion

We have audited the financial statements of London Transport Museum Limited (the ‘Parent Charitable Company’) and its subsidiaries (the ’Group’) for the year ended 31 March 2022 which comprise the Group Statement of Financial Activities, the Group Summary Income and Expenditure Account, the Group and Parent Charitable Company Balance Sheets and notes to the financial statements, including 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 Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the Charitable Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

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Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained in the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 Group and Parent Charitable Company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the Trustees’ Annual Report.

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

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement set out on page 26, the Trustees (who are also the Directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees

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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 group and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or Parent Charitable Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s 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 auditor’s 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

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and performance of the group audit. We remain solely responsible for our audit report.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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Use of our report

This report is made solely to the Charitable Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company's members those matters which we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and Charitable Company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Date: 14 August 2023

Neil Finlayson Senior Statutory Auditor for and on behalf of Moore Kingston Smith LLP

6th Floor 9 Appold Street London EC2A 2AP

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Consolidated statement of financial activities for the year ended 31 March 2023

Note
INCOME FROM:
Donations and legacies
Core grants
Other grants and donations
4
Charitable activities
Education and engagement
Access and museum operations
Heritage and collections
5
Other trading activities
6
Other income
Investments
Total income
EXPENDITURE ON:
Raising funds
Trading operations
7
Other fundraising activities
8
Charitable activities
Education and engagement
Access and museum operations
Heritage and collections
8
Net loss on disposal of fixed assets
Total expenditure
8
Net (expenditure)/income
Transfers between funds
16
Net movement of funds in year
Reconciliation of funds
Total funds brought forward
Total funds carried forward
16		 Unrestricted
Funds
Restricted
Funds
Total
Funds
Unrestricted
Funds
Restricted
Funds
Total
Funds
2023
2023
2023
2022
2022
2022
£000
£000
£000
£000
£000
£000
3,360
-
3,360
3,360
-
3,360
1,207
660
1,867
2,579
655
3,234
4,567
660
5,227
5,939
655
6,594
1,283
-
1,283
2,204
-
2,204
3,811
-
3,811
2,191
-
2,191
-
-
-
-
-
-
5,094
-
5,094
4,395
-
4,395
6,754
-
6,754
4,412
-
4,412
-
-
-
2
-
2
95
-
95
2
-
2
16,510
660
17,170
14,750
655
15,405
4,802
-
4,802
3,751
-
3,751
927
-
927
849
-
849
5,729
-
5,729
4,600
-
4,600
4,085
300
4,385
4,002
292
4,294
4,213
36
4,249
3,544
6
3,550
1,739
99
1,838
1,889
183
2,072
10,037
435
10,472
9,435
481
9,916
-
-
-
-
-
-
15,766
435
16,201
14,035
481
14,516
744
225
969
715
174
889
-
-
-
154
(154)
-
744
225
969
869
20
889
26,982
772
27,754
26,113
752
26,865
27,726
997
28,723
26,982
772
27,754

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

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Balance sheets as at 31 March 2023

Note
Fixed assets
Intangible fixed assets
11
Tangible fixed assets
12
Investments
Current assets
Stock
Debtors
13
Cash at bank and in hand
14
Current liabilities
Creditors falling due within one year
15
Net current assets
Total assets less current liabilities
Non-current liabilities
Creditors falling due after one year
15
Net assets
Funds
Share capital
19
Restricted funds
16
Unrestricted funds
16
Total funds		 Group
Group
Museum
Museum
2023
2022
2023
2022
£000
£000
£000
£000
475
329
475
329
18,798
19,749
18,798
19,749
-
-
-
-
19,273
20,078
19,273
20,078
792
560
-
-
1,528
1,612
3,488
1,832
9,760
8,905
7,926
7,955
12,080
11,077
11,414
9,787
(2,578)
(3,399)
(1,964)
(2,111)
9,502
7,678
9,450
7,676
28,775
27,756
28,723
27,754
(52)
(2)
-
-
28,723
27,754
28,723
27,754
-
-
-
-
997
772
997
772
27,726
26,982
27,726
26,982
28,723
27,754
28,723
27,754

The notes on pages 37 to 56 form part of these accounts.

These financial statements were approved by the Trustees on 20 July 2023 and signed on their behalf by:

Keith Ludeman Chair of Trustees London Transport Museum Limited

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Notes to the financial statements

1. Basis of preparation

a) Statement of compliance

The financial statements have been prepared in accordance with:

London Transport Museum Limited is a ‘public benefit entity’ under FRS102.

b) Basis of measurement

The accounts are made up to 31 March 2023 and have been prepared under the accruals concept and in accordance with the historical cost accounting convention.

The financial statements have been prepared on a going concern basis which assumes the charitable company will continue in operational existence for a period of at least twelve months from the date of approval of these financial statements. The Trustees continue to review all available information on the Museum’s financial position, cash reserves and projections, committed and essential costs, available support packages and the performance of the Museum. The Museum has obtained a commitment from TfL to support the Museum as a going concern. In light of the available liquid and unrestricted reserves, existing income streams, and the support receivable from TfL, the Trustees have continued to adopt the going concern basis in preparing the annual report and accounts. The Trustees consider the Museum to be a going concern at the date of signature for the foreseeable future and to continue to be able to meet its liabilities as they fall due for payment.

The financial statements have been prepared to give a ‘true and fair’ view and comply with the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (effective 1 January 2019).

The principal accounting policies adopted in the preparation of the financial statements are set out below.

c) Group financial statements

These financial statements consolidate the results of the Museum charity and its wholly owned subsidiary London Transport Museum (Trading) Limited on a line-by-line basis. Neither a separate statement of financial activities nor an income and expenditure account are presented for the Museum charity itself following the exemptions afforded by section 408 of the Companies Act 2006.

The functional currency of the Museum is the Pound Sterling and amounts in these accounts have been presented as rounded to £’000. Amounts denominated in foreign currencies have been converted to Sterling at rates of exchange ruling on the transaction

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dates. Amounts held in foreign currencies as at the balance sheet date have been translated into Sterling at rates of exchange ruling at the balance sheet date.

2. Uses of estimates and judgements

The preparation of Financial Statements in compliance with UK accounting standards requires the use of certain critical accounting estimates. It also requires Trustees and management to exercise judgement in applying the Museum’s accounting policies.

Items in the Financial Statements where these judgements and estimates have been made include amounts for goods, facilities and services donated for the Museum’s use. Where the benefit is quantifiable, and the goods and services would otherwise have had to be purchased, such items are recognised in the financial statements as both income and expenditure at a reasonable estimate of their value to the charity in the period in which they are donated.

As per SORP 2019 section 1.38, measurement issues, including attributing an economic value to the contribution of general volunteers, prevent the value of services provided by volunteers being incorporated into these financial statements. Further details of the contribution made by volunteers can be found in the body of the Trustees’ Annual Report.

The most significant judgment and estimate in the accounts is the value placed on the net assets transferred from TfL under the Transfer Scheme at 1 April 2008 when the charity was formed. These assets were valued at £28.74m, this being the written down value of the assets in the accounts of TfL as at 31 March 2008.

As at 31 March 2023, no estimates or assumptions made are considered to have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

3. Accounting policies

a) Income

Income is included in the Statement of Financial Activities when all the following criteria are met:

Income from donations, grants and fundraising includes items that provide core funding or are of a general nature. These are recognised upon receipt. Such income would only be deferred when:

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Income from corporate supporter memberships, commercial trading, sponsorships and other similar activities where benefits are delivered by the Museum or its subsidiary trading company, is recognised as the related goods and services are provided.

Investment income is recognised on a receivable basis.

It is the current Investment Policy of the Museum to invest surplus funds in short-term cash deposits within the UK.

Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions which is recognised as the related goods or services are provided.

b) Expenditure

All expenditure (except capital expenditure) is included in the Statement of Financial Activities inclusive of any irrecoverable VAT. Expenditure is recognised when a liability is incurred and is classified under the following principal categories:

Where costs relate directly to an activity they have been allocated against that activity. Support costs (including governance costs) that relate to more than one activity have been allocated to activity cost categories on the basis of direct costs in each area of activity (see Note 7).

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c) Tangible and intangible fixed assets

Individual fixed assets over £10,000 are capitalised at cost.

Tangible and intangible fixed assets are depreciated or amortised on a straight-line basis over their estimated useful lives as follows:

Plant, software and equipment 3 – 10 years Buildings and refurbishments 10 – 35 years

Structural improvements to the fabric of the Museum at Covent Garden are depreciated over the remaining life of the lease for the building. Other building work is capitalised if it is considered that future economic benefits in excess of the originally assessed standard of performance will flow as a result of that work.

d) Heritage assets

Heritage assets are those assets of historical, artistic or scientific importance that are held to advance the preservation, conservation and educational objects of the Museum. The Museum collections consist of over 500,000 items which are on loan from TfL. Assets on loan are not capitalised within these financial statements although expenditure relating to their use and maintenance is included in the Statement of Financial Activities.

e) Operating leases

Costs relating to operating leases are charged to the Statement of Financial Activities on a straight-line basis over the life of the lease.

f) Stock

Stock is valued at the lower of cost or net realisable value. Cost includes only the purchase price of the items. Provision is made for obsolete and slow-moving items where appropriate. All stocks relate to the Museum’s retail activities.

g) Funds structure

Restricted funds are funds to be used for particular purposes laid down by the donors or which have been raised for a specific purpose.

Unrestricted funds are funds available for use at the discretion of the Trustees in furtherance of the Museum’s charitable objectives.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The purposes and uses of the funds held in each of these categories are given in Note 16.

h) Pensions

The Museum participates in a pension scheme operated by TfL providing benefits based on final pensionable pay. The assets of the scheme are held separately from those of the Museum. The charity is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore, as permitted by the multi-employer exemption in FRS 17 ‘Retirement Benefits’, it is accounted for as if it were a defined contribution scheme. As a result, the amount charged to the Statement of Financial Activities represents the contributions payable to the scheme in respect of the accounting period. The disclosures required under FRS 102 are given in Note 20.

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Except in so far as disclosed in Note 20, the Museum has taken advantage of the exemption set out in section 33 of FRS 102 not to disclose any transactions with other TfL Group undertakings.

j) Taxation

The Museum is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

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k) Cash flow

The Museum has taken advantage of the exemption, under FRS 102 paragraph 1.12(b), from preparing a statement of cash flows, on the basis that it is a wholly owned subsidiary undertaking of Transport Trading Limited and its cash flows are included within the consolidated financial statements of that company which are publicly available.

l) Financial instruments

Financial assets held by the Museum are classified as “loans and debtors” within the scope of sections 11 and 12 of FRS 102.

Financial liabilities within the scope of sections 11 and 12 of FRS 102 are classified as financial liabilities measured at amortised cost.

The Museum determines the classification of its financial instruments at initial recognition and re-evaluates this designation at each financial year end. When financial instruments are recognised initially, they are measured at fair value, being the transaction price plus any directly attributable transactional costs. The subsequent measurement of financial instruments depends on their classification as follows:

• Trade and other debtors

Trade and other debtors are recognised initially at fair value and subsequently at amortised cost. For trade debtors this is after an allowance for estimated impairment. The allowance is based on objective evidence that the Museum will not be able to recover all amounts due, through a review of all accounts and prior experience of collecting outstanding balances. Changes in the carrying amount of the allowance are recognised in the Statement of Financial Activities.

The fair value of trade and other debtors is estimated as the present value of future cash flows, discounted at the market rate of interest at the reporting date. This fair value is determined for disclosure purposes

• Cash and cash equivalents

Cash at bank and in hand comprises cash balances and bank deposits with original maturities of less than or equal to three months.

Trade creditors and other payables are recognised initially at fair value and subsequently at amortised cost using the effective interest method.

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4. Donations and legacies

Legacies
Grants from TfL
Other grants
Cultural Recovery Fund
Arts Council funding
Donated services
Seconded staff
Central services from TfL
Other
Benefit dinners
Other donations
Total		 2023
2023
2023
2022
Unrestricted
Restricted
Total
Total
£000
£000
£000
£000
-
-
-
50
3,360
-
3,360
3,360
-
-
-
1,325
-
372
372
333
14
-
14
-
317
-
317
300
95
-
95
105
555
-
555
489
226
288
514
632
4,567
660
5,227
6,594

5. Charitable activities

a) Analysis by source of income

Museum admissions
STARS income
Other charitable income
Total		 2023
2023
2023
2021
Unrestricted
Restricted
Total
Total
£000
£000
£000
£000
3,811
-
3,811
2,191
1,260
-
1,260
2,154
23
-
23
50
5,094
-
5,094
4,395

b) Analysis by type of charitable activity

Museum admissions
STARS income
Heritage vehicle events and station
tours
Other charitable income
Total		 2023
2023
2023
2023
2022
Education
and
engagement
Access and
museum
operations
Heritage
and
collections
Total
Total
£000
£000
£000
£000
£000
-
3,811
-
3,811
2,191
1,260
-
-
1,260
2,154
-
-
-
-
-
23
-
-
23
50
1,283
3,811
-
5,094
4,395

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6. Other trading activities

6. Other trading activities
2023
2022
£000
£000
Retail turnover 3,936
2,752
Other turnover
Venue hire 468
231
Hidden London 1,238
538
Commercial sponsorship 483
395
Corporate membership 608
480
Other revenue 21
16
Total turnover 6,754
4,412

7. Expenditure

a) Direct and apportioned costs

Cost of goods sold
Other trading subsidiary costs
Other fundraising activities
Costs of raising funds
Education and engagement
Access and museum operations
Heritage and collections
Charitable activities
Total		 2023
2023
2023
Direct
costs
Support
costs
Total
£000
£000
£000
1,631
-
1,631
2,903
268
3,171
408
519
927
4,942
787
5,729
1,932
2,454
4,386
1,873
2,376
4,249
810
1,027
1,837
4,615
5,857
10,472
9,557
6,644
16,201
Cost of goods sold
Other trading subsidiary costs
Other fundraising activities
Costs of raising funds
Education and engagement
Access and museum operations
Heritage and collections
Charitable activities
Total		 2022
2022
2022
Direct costs
Support
costs
Total
£000
£000
£000
1,182
-
1,182
2,337
232
2,569
352
497
849
3,871
729
4,600
1,776
2,518
4,294
1,469
2,081
3,550
857
1,215
2,072
4,102
5,814
9,916
7,973
6,543
14,516

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b) Support costs allocation

Premises and facilities
Finance and management
Marketing
Systems
Design and presentation
Governance
Total 2023		 2023
2023
2023
2023
2023
Education
and
engagement
Access and
museum
operations
Heritage
and
collections
Raising
funds
Total
£000
£000
£000
£000
£000
1,581
1,532
662
591
4,366
548
531
230
116
1,425
183
177
77
39
476
73
70
30
15
188
66
63
27
14
170
3
3
1
12
19
2,454
2,376
1,027
787
6,644
Premises and facilities
Finance and management
Marketing
Systems
Design and presentation
Governance
Total 2022		 2022
2022
2022
2022
2022
Education
and
engagement
Access and
museum
operations
Heritage
and
collections
Raising
funds
Total
£000
£000
£000
£000
£000
1,663
1,374
802
551
4,390
568
469
274
112
1,423
147
122
71
29
369
82
68
40
16
206
38
31
18
7
94
20
17
10
14
61
2,518
2,081
1,215
729
6,543

8. Net expenditure

This is stated after charging:

This is stated after charging:
2023 2022
£000
£000
Depreciation 1,510
1,515
Amortisation 45
36
Auditor’s remuneration
Audit – Museum 43
32
Audit – Trading company 10
10
Other non-audit services -
-
Operating lease costs 802
816

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9. Trading subsidiary

The Museum has a single subsidiary company, London Transport Museum (Trading) Limited (LTM(T)L), company number 06527755, having an issued share capital of £1, wholly owned by London Transport Museum Limited.

LTM(T)L undertakes retail operations, venue hire, commercial sponsorships, the Museum corporate membership scheme and Hidden London activities.

LTM(T)L profit and loss account for the year ended 31 March 2023

2023
2022
£000
£000
Turnover 6,754
4,412
Cost ofgoods sold (1,601)
(1,182)
Gross profit 5,154
3,230
Operatingexpenses (3,210)
(2,569)
Profit from ordinary activities before taxation 1,943
661
Tax on ordinaryactivities -
-
Total comprehensive income for the year 1,943
661

LTM(T)L balance sheet as at 31 March 2023

2023
2022
£000
£000
Current assets
Stock 792
560
Debtors 237
471
Cash and cash equivalents 1,835
951
Total current assets 2,864
1,982
Creditors fallingdue within oneyear (2,812)
(1,980)
Net current assets 52
2
Total assets less current liabilities
Creditors fallingdue after more than oneyear (52)
(2)
Net assets -
-
Capital and reserves
Profit and loss account -
-
Share capital -
-
Equity shareholder’s funds -
-

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10. Staff costs and staff numbers

a) Total remuneration

2023
2022
£000
£000
Wages and salaries 4,519
4,087
Social security costs 491
434
Pension costs 914
1,054
Total 5,924
5,575

During the year there were no redundancies (2022: nil) and no severance payments (2022: nil).

The number of employees whose employee benefits (excluding employer’s pension contributions) amounted to over £60,000 in the year is given below.

2023 2022
£60,000 - £70,000 - 2
£70,001 - £80,000 3 2
£80,001 - £90,000 1 -
£90,001 - £100,000 1 2

b) Key management personnel

The key management personnel of the Museum comprise the Trustees, Director and CEO, and COO (see Trustees and advisers pages 27 to 29). The total employee benefits including employer’s pension and national insurance contributions of the key management personnel were £233,131.55 (2022: £247,359.69).

The Managing Director is the only Director employed by the Museum and received emoluments, including salary, fees, benefits in kind and other emoluments, totalling £110,432 (2022: £112,547). The Museum made nil contributions to the TfL Pension Fund, a defined benefit scheme, on behalf of the Managing Director for the year (2022: nil). The Managing Director did not receive any emoluments in his role as a Trustee (2022: nil).

Other than the Managing Director, no other trustees received employee benefits from the Museum (2022: £246) for participation on an Advisory Board for the Legacies exhibition.

TfL-nominated Trustees are also employees of TfL, a related party.

TfL Trustee and role Salary (including
fees &
allowances)		 Employer’s
pension
contributions		 Benefits in
kind		 Total excl.
Pension
contributions
Lilli Matson, Chief Safety, Health
and Environment Officer		 £200,000 £46,921 £1,740 £201,740
Winsome Hull BEM, Senior
Business StrategyManager		 £79,040 £19,235 £784 £79,824
Obi Nwofor, Senior Operating
Officer		 £93.964 £23,192 £1,740 £95,704
Former employee:
Gareth Powell, Chief Customer &
StrategyOfficer		 *£188,074 - £1,120 £189,194

Reimbursements of £439.41 for two trustees in the year for travel costs to board meetings (2022: nil).

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c) The average number of full-time equivalent employees was:

Education and engagement
Access and museum operations
Heritage and collections
Activities to generate funds
Support functions
Total		 2023
2022
24.5
20.3
30.8
29.1
10.8
10.2
28.9
24.2
27.0
24.4
122.0
108.2

11. Intangible fixed assets

Group and Museum
Cost
At 1 April 2022
Additions
Transfers
Disposals
Reclassifications
At 31 March 2023
Amortisation
At 1 April 2022
Charge for the year
Amortisation on disposal
Reclassifications
At 31 March 2023
Net book value
At 1 April 2022
At 31 March 2023		 Software
Assets under
construction
Total
£000
£000
£000
291
97
388
4
187
191
80
(80)
-
-
-
-
-
-
-
375
204
579
(59)
-
(59)
(45)
-
(45)
-
-
-
-
-
-
(104)
-
(104)
232
97
329
271
204
475

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12. Tangible fixed assets

Group and Museum
Cost
At 1 April 2022
Additions
Transfers
Disposals
Reclassifications
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
Depreciation on disposal
Reclassifications
At 31 March 2023
Net book value
At 1 April 2022
At 31 March 2023		 Property
and
buildings
Plant and
equipment
Assets under
construction
Total
£000
£000
£000
£000
36,886
2,209
340
39,435
330
-
215
545
236
7
(243)
-
-
-
-
-
-
-
-
-
37,452
2,216
312
39,980
(17,962)
(1,724)
-
(19,686)
(1,320)
(176)
-
(1,496)
-
-
-
-
-
-
-
-
(19,282)
(1,900)
-
(21,182)
18,924
485
340
19,749
18,170
316
312
18,798

13. Debtors

Trade debtors
Amounts due from TfL group
Other debtors
Prepayments and accrued income		 Group
Group
Museum
Museum
2023
2022
2023
2022
£000
£000
£000
£000
225
463
64
75
207
449
2,485
835
101
53
19
53
995
647
920
869
1,528
1,612
3,488
1,832

14. Cash at bank and in hand

Current accounts and in hand
Short-term deposit accounts		 Group
Group
Museum
Museum
2023
2022
2023
2022
£000
£000
£000
£000
4,740
3,865
2,926
2,955
5,020
5,040
5,000
5,000
9,760
8,905
7,926
7,955

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15. Creditors

a) Amounts falling due within one year

Group Group Museum Museum
2023 2022 2023 2022
£000 £000 £000 £000
Trade creditors 344 524 283 401
Amounts due to TfL group - - 21 55
Taxation and social security 59 64 59 -
Other creditors and accruals 1,729 1,831 1,601 1,643
Deferred income 446 980 - 12
2,578 3,399 1,964 2,111
) Amounts falling due after one year
Group Group Museum Museum
2023 2022 2023 2022
£000 £000 £000 £000
Deferred income 52 2 - -
52 2 - -
) Deferred income
Group Group Museum Museum
2023 2022 2023 2022
£000 £000 £000 £000
Brought forward 982 1,757 12 1,294
Utilised in year (980) (1,749) (12) (1,294)
Deferred in year 496 974 - 12
Carried forward 498 982 - 12
Amounts falling due within one year 446 980 - 12
Amounts falling due after one year 52 2 - -

b) Amounts falling due after one year

c) Deferred income

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16. Statement of group funds

a) Total funds

Restricted
ACE- Making a Poster
ACE MEND
ACE NPO
Collections Development fund
LTM Friends
Luke Rees-Pulley Charitable Trust
Elizabeth Line Legacy
Q Stock
DCMS/Wolfson
Kusuma Trust
Art Fund
Poster Gallery
Unrestricted funds
Designated funds
Capital fund
Museum strategic development fund
Future exhibitions and education fund
Museum asset development fund
Education outreach fund
General funds
Total funds		 1 April
2022
Income
Expenditure
Transfers
31 March
2023
£000
£000
£000
£000
£000
19
(19)
-
-
-
-
137
-
-
137
-
254
(254)
-
-
557
-
(17)
-
540
17
44
(51)
-
10
94
65
(59)
-
100
-
95
(10)
-
85
24
2
-
-
26
-
72
-
-
72
31
-
(26)
-
5
30
-
(18)
-
12
-
10
-
-
10
772
660
(435)
-
997
20,078
-
-
(805)
19,273
3,485
-
-
(1,985)
1,500
-
-
-
-
-
1,120
-
-
3,533
4,653
1,106
-
-
(1,106)
-
1,193
16,510
(15,766)
363
2,300
26,982
16,510
(15,766)
-
27,726
27,754
17,170
(16,201)
-
28,723

Restricted funds

Arts Council England support is comprised of the National Portfolio Organisations (NPO) grant and funding via the Museum Estate and Development Fund (MEND) grant programme. NPO funding provides support for a diverse range of Museum programmes and activities. MEND funding is for essential work to lifts and chillers at the Covent Garden site.

The Collections Development fund (CDF) was established in 2012/13 following the auction of 400 surplus posters. This fund can only be used for collections acquisitions and conservation.

LTM Friends supports a range of Museum programmes and activities including vehicle restoration and Acton community projects.

The Luke Rees-Pulley Charitable Trust (LRPCT) funds the Impact and Evaluation Manager role and a Learning Officer role.

The Q stock fund will be used for future conservation work on this heritage asset.

Kusuma Trust UK supports the pilot Inspire Engineering Careers project.

The Art Fund Reimagine grant supports the Progressing Participatory Practice programme.

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The Elizabeth Line legacy funding supports the capture of oral history relating to the project. The DCMS/Wolfson grant supports the forthcoming Photography Gallery at Covent Garden.

£10k towards the Poster Gallery has been received from The Finnis Scott Foundation.

Designated funds

The Capital fund represents the net book value of the Museum’s tangible fixed assets. It is written down by the value of depreciation and increased by any additions to the Museum’s fixed assets.

Other designated funds carried forward totalled £25.4m (2022: £25.8m).

b) Analysis of group net assets between funds

Fund balances at 31 March 2023:
Fixed assets
Current assets
Current liabilities
Long term liabilities
Total net assets at 31 March 2023
Total net assets at 31 March 2022		 Unrestricted
funds
Restricted
funds
Total
funds
£000
£000
£000
19,273
-
19,273
11,083
997
12,080
(2,578)
-
(2,578)
(52)
-
(52)
27,726
997
28,723
26,982
772
27,754

17. Operating leases

Within one year
Between two and five years
Over five years
Total		 2023
2022
£000
£000
802
802
3,204
3,208
11,849
12,651
15,855
16,661

On 17 September 2018 the London Transport Museum entered into a new building contract at Albany House. The new contract is a licence fee arrangement, between TfL and London Transport Museum, which expires on 18 December 2024.

While the Albany House licence fee is in substance an operating lease, as the terms are cancellable, there is no requirement to disclose this as an operating lease. Under this contract there is a rent-free period of 15 months and this is accounted for on a straight-line basis, over the term of the licence. The annual rental is £316k.

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18. Capital commitments

Capital commitments at the end of the year not otherwise included in the accounts are as follows:

2023 2022
£000 £000
Cubic foyer - 32
Cycle hire vehicle interpretation point - 9
Online library - 7
Elizabeth Line display - 6
Ticketing System 26 -
Total capital commitments 26 54

19. Share capital

19. Share capital
2023 2022
£ £
Authorised
1 ordinary share of £1 1 1
Allotted, issued and fully paid up
1 ordinary share of £1 1 1

As permitted by FRS 102 and SORP 2019, because no new equity shares have been issued, the Museum has not produced a separate statement of changes in equity for the reporting period.

20. Pensions

Background

The Museum offers retirement plans to its employees. The majority of the Museum’s staff are members of the Public Sector Section of the TfL Pension Fund, which is a final salary scheme established under trust. Benefits are based on an employee’s length of service and final pensionable pay. The Fund’s Trustee is the TfL Trustee Company Limited, a wholly owned subsidiary of TfL. Under the rules of the Fund, its 18 Trustee Directors are nominated in equal numbers by TfL and on behalf of the Fund’s membership.

Every three years, the TfL Pension Fund actuary makes valuations and recommends the level of contributions to be made by the participating employers to ensure the long-term solvency of the Fund. The latest available valuation of the Fund was carried out as at 31 March 2021 by the Actuary, a partner of consulting actuaries Willis Towers Watson, using the projected unit method. A revised Schedule of Contributions was agreed between the Trustee and the employers following the formal funding valuation of the Public Sector Section.

Under the valuation report, the Fund held a surplus of £179m as at 31 March 2021. Assets totalled £13,085m and the defined benefit obligation totalled £12,906m. A revised Schedule of Contributions was agreed between the Trustee and the employers following the formal funding valuation. This set out a future service contribution rate of 27.3 per cent for the employers and five per cent for members.

The underlying assets and defined benefit obligation of the TfL Pension Fund cover a number of Group entities and cannot be readily split between each undertaking. No contractual agreement is in place to allocate the total net surplus between the member entities. Thus, in accordance with IAS 19, the TfL Corporation, as the Scheme sponsor, has recognised the total net defined benefit surplus in its own accounts.

As at the Balance Sheet date, no allocation of the surplus of the Fund has been made between the various TfL Group companies, including London Transport Museum. Should this position change in future, an

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allocation may be made, and the Museum may, at that point, become liable for its share of the deficit or surplus. There are no present plans for such an allocation to be made.

Further information regarding the TfL Pension Fund can be found in the TfL Annual Report and Statement of Accounts.

Accounting

The Museum’s ultimate parent, Transport for London, and the Museum’s fellow subsidiaries participate in the Public Sector Section of the TfL Pension Fund. Because the Museum is unable to identify its share of the underlying assets and liabilities on a consistent and reasonable basis, as permitted by FRS 102, the Museum treats contributions to the Public Sector Section as if they were contributions to a defined contribution plan. The Museum’s contributions to the Fund of £1,016,325 (2021: £981,987) have been charged to the Consolidated Statement of Financial Activities.

Other pension schemes

Pension contributions of £7,236 (2022: £19,262) have been made to the London Pension Fund Authority Pension Fund, a funded multi-employer defined benefit scheme, administered by the London Pension Fund Authority. The underlying assets and defined benefit obligation of the London Pension Fund Authority Pension Fund cover a number of TfL Group entities and cannot be readily split between each undertaking. The TfL Corporation has recognised the TfL Group’s share of the net defined benefit obligation in its own accounts.

LTM also made employer contributions to two defined contribution schemes totalling £6,212 (2022: £18,854).

21. Related party transactions

London Transport Museum Limited is a wholly owned charitable subsidiary company of Transport Trading Limited (TTL), which in turn is a wholly owned subsidiary company of Transport for London (TfL). TfL provides financial assistance to the Museum in the form of grants for Museum operations and, in addition, certain divisions of TfL provide financial support to the Safety and Citizenship (STARS) Programme and other Museum activities as agreed on a project-by-project basis.

In line with paragraph 33.1A of FRS 102, the Museum, as a wholly owned subsidiary of TTL, is not required to disclose transactions with other wholly owned members of the group headed by TfL.

Museum staff are provided with passes that allow free or discounted travel on TfL services for themselves and a nominee. TfL also offers Museum Trustees and non-executive Directors of London Transport Museum (Trading) Limited (LTM(T)L) restricted travel privileges.

TfL Group companies receive discounts on the hire of Museum facilities, and all TfL staff receive free entry to the Museum and discounts in the Museum shop.

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The Museum also entered into transactions with other related parties during the year as set out below.

Party Nature of
relationship		 Transaction 2023
Income
£000		 2023
Expenditure
£000		 2023
Debtor
£000		 2023
Creditor
£000
LTM Friends Sam Mullins is
a Trustee of
LTM Friends		 Grant awarded
during the year
and
reimbursement of
volunteer
expenses		 105 6 105 6

During 2021/22 the Museum entered into transactions with other related parties as set out below.

Party Nature of
relationship		 Transaction 2022
Income		 2022
Expenditure		 2022
Debtor		 2022
Creditor
£000 £000 £000 £000
LTM Friends Sam Mullins
is a Trustee
of LTM
Friends		 Grant awarded
during the year
and
reimbursement
of volunteer
expenses		 105 6 105 6
International
Association of
Transport and
Communications
Museums
(IATM)		 Sam Mullins
is the
President of
the IATM		 IATM
contribution
towards
communications,
webinar and
office support
from LTM		 2 - 2 -
SS Great Britain
Trust		 Sam Mullins
is Vice Chair
of SS Great
Britain		 Payment of
expenses for
attendance at
annual board
awayday		 - 1 - -
UKTV Media
Limited		 Marcus
Arthur is
Chief
Executive
Officer of
UKTV		 Income for
additional venue
hire event costs		 3 - - -

In addition to the financial transactions summarised above, the Museum also provides London Transport Museum Friends with office and IT facilities, and support for marketing and other activities.

Sir Peter Hendy and Phil Swallow are also Patrons of the Museum.

A number of Museum Trustees, Directors of LTM(T)L and key management personnel of TfL, also received leaving and thank you gifts of LTM(T)L retail merchandise during the year.

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Andy McWilliams and Rebecca Crook, Enterprise board members received a Moquette Cube each (retail price -£200) as a leaving gift. Sadiq Khan, Mayor of London received a Christmas jumper (retail price- £38).

A number of key management personnel of TfL which is a related entity also received gifts. Andy Byford, Commissioner, Andy Lord Chief Operating Officer and Mark Wild all received an Elizabeth line T-shirt (retail price-£30). Andy Lord also received a Christmas jumper (retail price- £38).

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Our supporters

Corporate members

Leader Abellio ABM Alexander Dennis Arriva London Arup Balfour Beatty Capita CDER Group (JBW Group) CGI Clear Channel ComfortDelGro Cubic Transportation Systems EPC GB Railfreight Jacobs Marston Holdings Motorola Solutions MTR Elizabeth Line Palantir QBE Siemens Sopra Steria Stadler Rail Stagecoach Telent Technology Services Thales UK* Worldline Zenobe

Driver

Computacenter Go-Ahead Group Keolis UK Mastercard Mott MacDonald Uber boats by Thames Clipper Wabtec

Member 2CV Addleshaw Goddard BAI Communications BDB Pitmans BYD CPCS Transcom (formerly First Class Partnerships) ESP Utilise Group Flowbird

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Gowling WLG Morgan Sindall Infrastructure RATPDev Sacker & Partners Scheidt & Bachmann Trapeze Group* Trueform Yunex Traffic Virgin Media 02

Supporters and sponsors

Major supporters

Transport for London Arts Council England The National Lottery Heritage Fund The Wolfson Foundation DCMS/Wolfson Museums and Galleries Improvement Fund London Transport Museum Friends Luke Rees-Pulley Charitable Trust

Museum supporters

Global - Global Gallery Cubic Transportation Systems - Cubic Theatre and Foyer Siemens Mobility - Inspire Engineering

Interchange thought leadership

Gowling WLG Thales Ground Transportation Systems

Content partners

Mott MacDonald – Decarbonising Transport

Climate Crossroads

ABM Cubic Transportation Systems Mott MacDonald Mastercard Sopra Steria

Enjoyment to Employment

Siemens Mobility ABM Mastercard Telent Technology Services Thales Ground Transportation Systems Transport for London

Education supporters

Kusuma Trust

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Luke Rees-Pulley Charitable Trust Royal Commission for the Exhibition of 1851

Heritage and interpretation supporters

Art Fund

Department for Levelling Up, Housing and Communities – Windrush Day Grant The Finnis Scott Foundation London Transport Museum Friends

Future Engineers supporters and content partners

Alstom DCMS/Wolfson Museums and Galleries Improvement Fund Luke Rees-Pulley Charitable Trust Cubic Transportation Systems Jacobs Mastercard Microsoft

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Patrons Mark Allatt Ian Arthurton Sir David Bell David Brown Mike Brown MVO FRICS FCILT Paul Butler Roger Cooke Leon Daniels OBE Anna Delvecchio Steve Edge Martin Elms Jane Fogg Phil Fortey Garcia J Hanson Graham Hayden Peter, Lord Hendy of Richmond Hill Bill Hiron Adrian Hollands David Humphrey Tony Hocking Ken and Daphne Lousvet Rupert Lyons John Marshall Richard Meads MBE Peter and Susan Oakden Ian Ross Paul Ross Paul Sainthouse John A. Self OBE Mike and Pat Sutcliffe Phil and Caroline Swallow Tony Vroon Richard West Nicholas Woolf OBE and Fiona Woolf DBE Mark Yexley

We also have a number of Patrons who wish to remain anonymous.

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