Registered Charity No- 1139250 MUSEUM OF LONDON Governors, Report and Financial Statements for the year ended 31 March 2021 Museum of London Annual Report and Financial Statements Year Ended 31 March 2021 CONTENTS Page Statement by Chair Clive Bannister Foreword by Director Sharon Ament Governors, Annual Report Structure. Governance and Management Financial Review Statement of Governors, Responslblllties 28 Independent Auditor's Report 29 Consolldated Statement of Financial Activities 33 Museum of London Statement of Flnancial Actlvltles 34 Group and Museum Balance Sheets 35 Consolidated Cash Flow Statement and Cash Flow Note 36 Notes to the Financial Statements 37to62 Reference and administrative details 63to65 Museum of London Annual Report and Financial Statements Year Ended 31 March 2021 CHAIR'S STATEMENT The year of 2020121 will forever stand out in our collective memory, deflned by the global crisis and upheaval resulting from the COVID-19 pandemic. For the Museum of London, along with many other5, thi5 meant a year of continuous change and uncertainty as our efforts turned to keeping our audiences, staff, volunteers. collections and buildings safe along with extended periods of closure. In response, we focu55ed on remaining financially viable. adapting how we worked and connected with our audiences. In addition we fulfilled our mission by capturing London life at a time of great challenge. Thi5 15 testament to a museum whose core business is Londoners and their 5tories- never has thi5 been more important. Our plans to create a new Museum of London wlthin a series of historic market buildings in West Smithfield continued apace as the plannlng application wa5 given the green light by the City of London Corporation Planning Committee on 23 June 2020. We conclude this year ready to move into the next phase of the project as construction commences with major structural works in the General Market. Funding support continues to gather momentum with £30.7m pledged by the end of March 2021, moving u5 ever closer to our £70m target. The dellvery of a strong public programme continued and we were delighted to see the openings of Havering Hoard.. A Bronze Age Mystery and Dub London.. Ba551ine of a City alongside a wide range of new digital offering5. Reaching over 50.000 people through our Great Fire Livestreams was a particular hlghllght as we connected with families and Schools at home and in the classroom. Recent events show the vital importance of working with our key partners and we are proud to work with the City of London Corporation, Greater London Authority and Arts Council England to contribute ro London and the UK'S economic, social and cultural recovery. I continue to be grateful for the guidance of my colleagues on the Board of Governors. Particular thanks go to the Chalrs of the New Museum Project Board. Audit & Risk Management Committee, Remuneration Committee. the Trading Board and Academlc Panel., David Camp and David Wormsley. John Scott. Sonita Alleyne, Milyae Park, and Sir Rick Trainor respectively. On behalf of the Board my sincere thanks go to the Museum of London SEaff and volunteers, and to Sharon Ament and her Executive Board who have worked tirelessly throughout this year to ensure the Museum emerges stronger out of adversity. We look fO￿ard to welcoming many more visitors back to our sites and thank them for their continued support through difficult times. Clive Bannister, Chair, Museurn of London Board of Governors Museum of London Annual Report and Flnancial Statements Year Ended 31 March 2021 FOREWORD BY SHARON AMEl*tt, MUSEUM DIREcfoR It has been a year of ongoing, slgniPicant organisational and operational change as well a5 a year of very personal reflection for all of us. l am proud of how we, as a community. have responded to the challenges of such a painful year. Closing the museum sites was unprecedented and our financial model was under straln necessitating expenditure reductions. The most significant consequence was Job losses as we sought ro remaln financially stable and saylng goodbye to colleagues represented the worst of 2020121. So given the very many difficulr issue5 facing the Museum in the year, when I reflect on the range of our achievements l am profoundly pleased and l outllne only a few example5. A major contemporary collecting programme to ensure we recorded Londoners. experiences of the pandemic saw nearly 700 new objects becoming part of the London Collection. We created a whole-organi5ation digital programme, Project Door5 Stay Open, spanning from virtual exhibltions (Disease ￿ to Instagram filters Iwhich London Borough Are You?) based around compelling London content. The wider London museum community were sUPPOrted through our settor leadership role and the Museum Development service for London as organisations Struggled for survival. Designs for our new home at West Smithfield continued to evolve as we concluded the Developed Design stage for our major permanent displays-Pa5t Time- and began work to conserve thousands of objects for display. We moved to a new operating model. reorganising ourselves in the face of le55 than l 0% of normal visitor leve15 and the loss of the majority of our commercial income. And finally, those teams that are not always at the front of our public offer but form the backbone of our operatlons Finance. Icr, HR. Security, Facilitie5, ConseNation. Information Resources transformed how we operate In order to continue to funcrlon. working nearly entirely remotely for the first time and ensuri ng the safety of our operations and physical site5. Alongside the pandemic, we have also lived through a world changed by the death of George Floyd in May 2020. an event which sparked protests around the world. On 9 June 2020, the statue of Robert Milllgan, a Brltlsh Slave trader which had stood uncomfortably outside the Museum of London Dockland5 for a long time, was removed. As one of only three rnu5eums in the UK to address the history of the transatlantic slave trade. we were keen to work wlth stakeholders to not only remove the statue but develop a proposal for the future use of the dock-side plinrh to reflect the diversity and values of the local community. Internally we continue our plans for organisational transformation, recognising the need to work in collaboration and consultation with staff, managers. the Diversity Forum, Leadership Team and Board of Govemors, in shaplng our approach to becoming a more diverse. equal, Incluslve and anti-racist organisation across all that we do. My profound gratitude to everyone- my colleagues, rhe City of London Corporatlon, the Greater London Authority, Arts Councll England. our volunteers, our Board of Governors and Chair. Clive Bannister. for supporting us all through this year and we look ahead to building a new museum for London. Sharon Ament Dlrector. Museum of London Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2021 GOVERNORS, ANNUAL REPORT GOVERNING OBJEcf5 AND PUBLIC BENEFIT Our principal governing document is the Museum of London Act 1965 las subsequently amended). This requires the Board of Governors to- la) Care for. preserye and add to the objetts in their collections,. (bl Ensure that those objects are exhibited to the public and made available to persons seeking to inspett them In connection with study or research.. (c) Generally promote understanding and appreciation of historic and contemporary London and of its society and culture. both by means of their collections and by such other means a5 they consider appropriate., and (d) Take any attion as they thlnk necessary or expedient to fulfil the aims and objectlves of the museum as set out in legislation. The Charities Act 2011 {"the Act,) requires charities to publish details of the public benefit they deliver. The Governors believe that the museum delivers charitable benefits under two of the headings allowed by the Act- firstly and primarily through the advancement of the art5. culture. heritage or sclence and secondly through the advancement of educatlon. As entrance to the Museum of London and Museum of London Docklands is unrestricted and is free. Governors believe that there are no unreasonabSe restrictions on acce5S to the benef its which are therefore available to the public in accordance with the definStlon of the Act. Governor5 believe that the remaining requirements of disclosure placed on charities by the Act are met with the Governors. Report set out below. COVID-19 PANDEMIC During 2020121 Museum of London and Museum of London Dockland5 Sltes were open between 06 August - 04 November 2020, and 03 - 12 December 2020. Our museum 51tes were closed to the public for the remainder of the year in line with Government restrlctlons in response to the pandemic. The Museum continued to provide a compelling public offer and creative content for audiences throughout thls perlod parricularly through digital mean5 as outlined in more detail below. STRATEGIC OBJECTIVES Our Strategic Plan 2018-2023 sets out five overarching objectives for the period that have guided all that we do.. l. Reach more people 2. Become better known 3. Stretch thinking 4. Engage every schoolchild 5. Stand on our own two feet In response to the impatts of the COVID-19 pandemic. we developed a set of objectives that set the frarnework specifically for meeting the challenges of 2020121 . Safely welcome vlsltors back into our museums Stay connected with and raise our profile amongst the pub15c and our communities Museum of London Annual Reporr and Flnancial Statements Year Ended 31 March 2021 Be a more equal, diverse and inclusive museum Secure our immediate and longer term flnances Deliver the new rnuseum programme Develop our forward organisational plans for the new museum In 2020121 we have delivered our objectlve5 through: G2 Safely welcomlng visitors to our museums and offering new ways to engage with our content and programming This year 47,599 visits were made to the Museum of London and 21.848 visits to the Museum of London Docklands during the l 01 days that we were open to the public due to Government restrictions. For comparison, combined, this is just over 7% of 2019120 visitor numbers. So far, over 8,000 visitors have come to Museum of London Docklands to see the largest ever Bronze Age hoard in Havering Hoard.-A BronzeAge MysreryExhibition which continues into 2021122 for more people to share in the mystery of the hoard with over 450 objects on display. In addition to onsite visits the Museum continued to provide a compelling public offer and creative content through the organisation-wide digital Initlative Project Door5 Stay Open finding different ways to connect with our audiences and local communities. Desplte periods of closure. 7.000 pupils took part in live online sessions and we reached a further 1,900 schoolchildren through outreach activity in schools. Over 50,000 people watched our livestreams on the Great Fire of London streamed 5tralght into homes and classrooms. Exclusive audio tours and content for The Clash.. London Calling and Dub London.. Sassline of a Citywere made available online through our partnership with Smartify, with this material accessed over 15,000 times even when our displays could not be vlsited In person. Working to support our neighbouring communities, we partnered with Culture Mile to distribute nearly 12.000 learning packs to vulnerable families via local foodbank5. ((0 Connecting with many more people beyond our walls through digital and medla activity Over 2.2rn people visited our webslze and our social media audiences grew to.. 127,808 (+7.078) 180.104 1+17.135) 84,911 (+18,842) Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2021 Our organisarion-wide initiative Project Doors Stay Open saw a huge drive of museum content during the national lockdowns which resulted in just under I I million engagement5 through our social media channels, an increase of 105% from the previous year. We also saw increases in visits to our Collections Online and Discover blog webpages (21)% and 53% respectively). Highlight5 of this digital workstream include going viral on TikTok In a 'museum off with the Black Country Museum. a popular London Borough Instagram filter, and a live poetry event Still l Rise.- Liberation in the Mldst of Resistance as part of our Women's History programme. Museum of London stories featured in 4,500 pieces of media coverage, Includlng coverage of our contemporary collecting project, Collecting COVID, acquisition of the Trump blimp, the opening of exhibitions Havering Hoard.. A Bronze Age Mystery and Dub London.. Bassline of a Cityas well as extensive coverage of the removal of the Robert Milligan Statue outside of the Museum of London Docklands. Adapting our organisation and operations to ensure we are well placed to respond to challenges Delivering a safe and enjoyable experience was an essential priority and we signed up to VlsitBrltain's 'We're Good to Go, scheme. an accreditation standard for the sector to reassure visitors that our 51tes were operating safely. Implementation of a revised operating model open Wednesday through to Sunday (with dedicated days for school visits on Mondays and Tuesdays) formed a key part of our response to the major financial challenges we faced due to the impacts Df the pandemic. As we traded through 'untradeable' times. there has been a signif icant reduction in commercial income due to COVID restriction5 and extended periods of closure however we refocused our efforts on areas such as donations and online retail sales looking to create new opportunities and learn from operating in new ways. We have embarked on a longer-term programrne of organisational transformation, recognising the need to tackle racism through structural and cultural change, working in collaboration and consultation with our staff, Diversity Forum. Leadership Team and Board of Governors in shaping our approach. A comprehensive, museum-wlde dlverslty and inclusion strategy is in development encompassing all that we do. Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2021 Continuing to create compelling programmlng wlth distinctive content about London and Its people Throughout 2020121 and during extended perlods of lockdown. the Museum of London contlnued to evalve our public offer and the stories we tell desplte our doors being closed. Our public programme responded to the challenges posed by the pandemlc through providing rich and varied onslte exhibitions and displays as well a5 developing new online programmes and events. Hlghlight5 of 2020121 are captured below. txNietfioN HAVERIF￿Ho￿l0. BAONiEA6EAIYrnY fWBIIIC*I #ll*L¥)￿lI% BAWMSOLIA¢I ove￿1￿ L•Adthlotrtdtht thtsr4WtxWtl0￿A￿thlof4sj L*ott trstoDt4inJafft*ante80aQ4￿I￿￿II￿s dWrnYrrt*s¢**sl￿l￿5¥3￿r5Jr4 EXH181TI TN1¢LASH*L￿lDO1IcALlINS InkTUAL¢XHipiric IXA5EX3 LONDOWSHEXTEPIDEMIC? AW1knE. sièjOpth,￿sh￿1*d1hea[ts1*S.èbj&t WRTLFAL EXHIBIIIOM VOTE5 FOR Y40MEN VIRTVAL FÉS7WAL IUNAftNEIV YEAR Ctfvbrntkns¥JVtvki￿fhfiYe4r￿m1[￿ tVETrEs.wurkshllp>4nJfilrni lor41) thp rAmIlY￿1¥dIdpuppeLPerknrrnar￿5. IkraMV4W￿%b￿rtdqll1ID? F•rlhpfu5t ONLIIIE EVEN15 fjII*AT*IMllVmEh DEOSERIES QI1EIR￿Fol￿U)1Ie Aiwri rlLGBTQ+FllsknyAknth it￿￿5•da￿lI¥￿SV￿5CAtdQU 5Te Lo￿011 FTtsmv4srpknrd.i*rfftDiul h￿I￿r￿S to•riicles*plorinBwexten* on￿lf￿1￿119￿I london, Lwibn's L05t tl• hii¢prydih¢Afiltan.Caribbpin Ihe requirement5 when setting assumptions. As explained previously the Accounting Valuation does not reflect the real liabillty. Our liability is the employer contributions we pay and budget for each year. These contributions are certified at triennial funding valuatlons and were set at the last triennial valuation (as at 31 March 2019) at 16.1 0% and will remain at 16.1% until 31 March 2023. New rates based on the triennlal funding valuation as at 31 March 2022 will commence on l April 2023. The Actuary's funding model aims to keep employer contributions as Stable as possible by looking at a more sensible long term c05t assessment rather than the artlficial and very short term assessment required under the accounting standard. A report was commissioned from rhe Actuary in June 2021 to compare an estimated funding valuation with the accounting valuation at 31 March 2021 . This compared the accounting valuation of a pension deficit of £63.3m deficit with an estimated funding valuation of a deficit of £3.1 m. The deficit reduction plan is already In place and alms to eliminate the funding deficit over the next 14 years li.e. 20 years set In 2013, less 6 years of contributions made as at 20191. Investment pollcy and performance The capital funds of the Trust Funds are invested In Blackrock Charities UK Equity Fund. Targets are not set but the Trustees of the funds periodically review the performance of the investments to ensure the returns are satisfactory. During the year to 31 March 2021 there was an increase in carrying values. Total income recelved over the year was in line with receipts In previous years. 20 Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2021 Available cash balances held by the Museum of London and Its subsidiary undertakings are placed within rhe city of London Corporation's account and with Lloyds Bank. Golng concern Governor5 believe that the museum has put in place a robust strutture that, in conjunction with the prudent reserves policy, wlll allow it to manage the foreseeable risks to the organisatlon. The accounts are therefore prepared on the golng concern basis as financial projections show the museum is able io meet its liabilities as they fall due for the foreseeable future. The principal uncertainty currently facing the organisation is the longer term impacts of the ongoing global COVID-19 outbreak and the prolonged uncertainty of visitor numbers and future fundlng. The Governors and Executive Board contlnue to closely monitor the impacts. While the evolving nature of the situation has meant it is not possible to accurately quantify the financial impact. the organlsation is in a financial position to help manage this risk. Steps are being taken, on an ongoing ba51S, to minlmise the impact on rhe charity's activities and the effect this may have on the organisation's supporters and beneficiaries. Our key priority is to ensure, as far as possible. that our charitable objects continue to be met. Infrastructure is in place to allow Staff to continue working remotely. with a move planned toward5 blended (onsite and offslte) working in the Autumn. The COVID-19 epidemic has reduced income from both UK based and international visitors and cornmercial activities. The longer-term effert on these income streams is not yet determined. The capacity for government to fund the cultural sector may also be affetted and potential economic uncertalnty resulting from Brexit may compound the Issue further. Impacts would be that income from vlsltors and commercial activlty rnay continue to be reduced in the longer-term, and grants paid by government to the museum may be reduced. The new museum project is a £337m investment. with the London Wall museum estimated to close for a minimum of two years in advance of the opening to allow for the transition of artefacts., this is expected to be from late 2022. The projett is funded by drawdowns in advance from the City of London Corporation. The cash oufflows over the coming two years from AprS12021 are expected to be circa £87m (although these are dependent on the programme and may change). matched against a combination of grant income from the City of London Corporation and the Greater London Authority, and the museum's fundraising campaign. Given the current economlc environment facing potential donors, uncertainty exists over these amounts. We are also reliant on the project being closely managed during this perlod to prevent delays and increases to the cost base for the project. Controls are In place to mitigate these risks. In addition to the above funding model, where we att as lead charity within the terms of a Design Services Agreement with the City of London Corporation, income 15 received from the City of London Corporation in the month that the consultant5 are paid. As lead charity we have procured and contracted wlrh suppliers to provide deslgn and other services relating to the New Museum Project which are then recharged to the Clty of London Corporation as set out In note 5 to the flnancial statements. 21 Museum of London Annual Report and Financial Statements Year Ended 31 March 2021 The key factors In our going concern assessment are= The museum has confirmed funding from our statutory grant funders until March 2022. although the position after that is less clear. The funders have a statutory obligation to fund the Museum beyond March 2022 and grants have not been reduced in the past. even during the helght of the pandemic. The museum is forecasting 2022123 funding equlvalent to 2021122 grant5, however the quantum of the grants post 31 March 2022 is yet to be confirmed. The museum wlll operate on reduced hours. 5 days per week (apart from School holidays). It is anticipated that the previous pattern of 7 days per week opening wlll be restored In April 2022. ACE funding was extended by a year to 2022123 £1.I m per annum for National Portfolio Organi5ation fundin9 and £0.2 sm per annum for Sector Support Organisation funding. The museum has invested in its management capability and has a Board of Governors that brings expert expertise. The museum has robust flnanclal modelling procedures that allow it to deal with changing assumptions. For example, we are experiencing lower than budgeted visitors in the current year, but flexed to introduce seven-day opening during the busier Summer period. when we saw stronger visitor number5 particularly from family groups. We reverred to a five-day week in line with other London museums, which are also being affected by low levels of international tourism. A further drop in visitor numbers would not have a materlal irnpact on going concern. The museum's strategic plan contalns a key objective to rnove to a new site at West Smithfield where the opportunities for growth in visitor5 and self-generated income will be greater after opening a larger site across two market buildings. The City of London Corporation and GLA have confirmed their commitment to the New Museum project through budgets approved by the Court of Common Council and Policy and Resources Committee. and funding is drawn down in advance against these approved budgets. Other factors of note are= The forecast project spend from Aprll 2021 to 31 March 2023 is £87m Idependent on the pro9ramme> and will be funded by drawdowns from the City of London Corporation. The going concern assessment period largely covers RIBA Stage 5 of the project and break clauses are in place for the construction contracts. None of the philanthropic funders have withdrawn pledge5 and National Lottery Heritage Fund has confirmed approval at Stage 2 of £5m. We have not drawn down or will draw down fundlng that is philanthropically raised until the latter stages of the project, thus we will never be in the posltion of having to pay back donors, money should the project fail. During the height of the pandemic we raised a further £3m towards the campaign, such is the confidence in the Museum. On the basis of the above and the assumption that grant in aid from our statutory funders (the City of London Corporation and the GW will be at least In Ilne with 2021122. Governors believe that the museum's robust structure. in conjunction with the prudent reserves policy explained below, wlll allow it to manage the foreseeable risks to the organi5ation. There is a risk that the Museum could require further funding due to a further decline in visitor numbers and uncertainty over grant in aid. 22 Museum of London Annual Report and Flnancial Statements Year Ended 31 March 2021 However. the Board has reviewed the Museum's cash flow forecasts and believes it has sufficlent cash flows forthe next twelve months. As such. the Governors contlnue to adopt the going concern basis of accounting in preparing the annual financlal statements. Further detail is included in Note T a to the accounts. ReseNes pollcy The Reserves Policy underplns the Museum's Strateglc Plan and establishes the financial parameter5 within which the long-term delivery of our mission and objealves can be achieved. The Board has adopted a Re5erve5 Policy which Is based on the evaluation of major rlsks facing the museum and which is reviewed by ihe Board I Incomlng resources before transfers 13,543) 329 (3.2141 13,3741 Transfers beTrveen funds 18{Al 269 12691 Net lexpendlturel I Income before other recognised galns and losses 13,274) 60 13,214) 13.3741 Other recognlsed gains and1055es Actuarial Ilossl I gain on deflned benefit pension schemes Net movement In funds 22 119,3111 119,311) 3.315 122,5851 60 {22.525) 1591 Recondliatlon of fiJnd5 In 2021 Funds brought forward at l April Net movement in funds Funds carrled foTh¥ard 19,4391 122,5851 132,0241 7.945 60 11 ,494) 122,525 124,0191 2,169 13.6041 (1.435) 8,005 Reconciliatlon of funds in prlor year Funds brought fornard Net movement In funds Funds carrled forward (8, 1401 11.2991 6,705 1,240 7,945 (1.435) 59 There are no other gains or losses other than those recognised above and therefore no separate statement of total gain5 and losses has been prepared. All activities derive from continuing operation5. The notes on page5 37 to 62 form part of these financial statements. 34 Museum of London Annual Report and Financial Ststements Year Ended 31 March 2021 MUSEUM OF LONDON GROUP AND MUSEUM BALANCE SHEErs Expressed In £'OOO Flxed assets Heritage assets Inran9lble assets Other tangible asseis Notes Group 2021 5,027 380 27,372 32,779 3,690 Museum 2021 5,027 380 27,372 32,779 2020 5.423 492 29.574 35,489 2,964 38.453 2020 5,423 492 29,574 35.489 12 & 13 Investrnent5 Total fixed assets Currenr as5et5 Stock Long term loan recelvable Debtors Cash at bank and In hand Total current assets Current Ilablllrles Creditors - amount5 falllng due wlthln one year Net current assets Total assets less current Iiabilitles Credltors- amounts falllng due after one year Clty of London Cgrporatlon Net assets excludln9 pension liablllty Defined beneflt penslon Ilabllity Net a55ets Includlng penslon liabillty 14 179 222 108 2,024 15.605 17.959 108 4,180 12.873 3,167 16,775 20,121 5.025 14,317 19.342 17.0121 13,109 49.578 16 6721 11.287 49,740 16.2761 10,885 46,374 12.684 4S.463 21 B 16,193 43,385 163,2891 16.6971 43.043 16,1931 39,270 163.2891 124,0191 16,697) 39.677 22 1.872 11.494 The funds of the charlty Endowment funds Restrlcted Income fund5 Deslgnated funds Deflned benefit p¢n51on reserve General reserves Total funds and reserves 18&19 1,909 10,193 23,071 (63,2891 8,212 119.9041 I,S33 9.706 24.799 8.OOS 23,059 163,2891 8,206 124,019 7,945 24,787 141.17TI 6,945 11,494} 1,872 The notes on pages 37 to 62 form part of these financial statements. The financlal statements were approved by the Board of Governors on 13 October 2021. Slgned on its behalf by: Cllve Bannlster Chair of the Board of Governors of the Museum of London John Scottjp cc Governor of the Museum of London 35 Museum of London Annual Report and Financlal Statements Year Ended 31 March 2021 CONSOLIDATED CASH FLOW STATEMENT Note5 2021 2020 ressed In £'OOO Net cash inflow from operating attlvltles Returns on Investment and 5ervlclng of finance Inrerest and dividends received Inrerest paid Capltal expendlture and finandal Investments Payments to acquire tangible fixed assets Increase in cash and cash equlvalent5 before financing Financing - Repayments of long-term borrowing Increase I Idecrea5e) In cash and tash equlvalents in the year 2,479 4.982 130 1112) 241 1108) {843 1.654 14841 701 4,414 865 3,549 A) Analysis of changes in net debt (Group) Balance IA r2020 Balance 31 Mar2021 Expressed In £'OOO Cash and cash equlvalent5 Cash at bank Cash on dep051t Cashflows 8.605 7.000 15,605 8,170 (7,0001 1,170 16.775 16.775 Borrowlngs Debt due within one year Debt due after one year (484) 1201 504 (504) 16.1931 16,6971 (7,181> 484 Total 1,654 10.078 B) Reconclllation of net expenditure to net cash Inflow from Operatlng activities EXPRESSED IN £'OOO Net expenditure before other recognlsed galns and losses Interest and dividends recelvable Interest payable (Gains) I losses on Investment5 Penslon costs - see Note 22 Fixed assets disposed I written off Depreciation Net Operatlng Income 2021 2020 12,465) 13.8801 11301 112 {726) 2,807 12411 108 528 2,764 92 3.511 2,882 3,543 3,151 Decrease In stock {Increase) I decrease in debtors and long term contra(ts Increase Sn creditors lexcluding loansloverdrafts) Net cash Inflow from operatlng artlvlties 43 (1.0351 320 946 2.479 4,982 36 Museum of London Annual Report and Financlal Statements Year Ended 31 March 2021 NOTES TO THE FINANCIAL STATEMENTS I ) ACCOUNTING POLICIES ASIS OF PREPARATION OF THE FINANCIAL STATEMENTS The financlal statements have been prepared. on a golng concern basis as detailed on pages 21 to 23 and below. under the historical c05t accounting convention. with the exception of investments which have been included at market value, and cornply with the Charltles Act 2011, the Statement of Recommended Practice Accounting and Reporting by Charities SORP (FRS 102, the Financial Reportlng Standard applicable In the United Kingdom and the Republic of Ireland) and applicable accounting standards In the United Kingdom. The Museum of London is a public benefit entity under FRS 102. Going Concern The accounts are prepared on the going concern basis as financial projections show the museum is able to meet its liabilities as they fall due for the foreseeable future. In reaching the conclusion on the ability of the museum to remain a going concern, the Governors have carefully considered the longer term impact of the COVID-19 pandemic and reviewed the forward financial projections to 31 March 2023. Governors believe that the museum has put in place a robust structure that, in conjunction with the prudent reserves policy. will allow it to manage the foreseeable risk5 to the organisatlon. The accounts are therefore prepared on the going concern basis a5 financial projettions show the museum is able to meet its liabilltles as they fall due for the foreseeable future. The principal uncertainty currently faclng the organisation is the longer term impacts of the ongoing global COVID-19 outbreak and the prolonged uncertainty of visltor numbers and future f unding. The Governors and Executive Board continue to closely monitor the impacts. While the evolving nature of the situation has meant it is not posslble to accurately quantify the financial impact. the organisation is In a financial position to help manage this risk. Steps are being taken, on an ongoing basis. ro minimi5e the impact on the charity's activitles and the effect this may have on the organisatlon's supporters and beneficiaries. Our key prlority is to ensure, as far as possible, that our charitable objects contlnue to be met. Infrastructure is in place to allow staff to continue working remotely, with a move planned toward5 blended (onsite and offsite) working in the Autumn. The COVID-19 epidemic has reduced income from both UK based and international visitors and commercial activities. The longer-term effert on these income streams Is not yet determined. The capacity for government to fund the cultural sector may also be affetted and potential economic uncertalniy resulting from Brexit may compound the issue further. Impacts would be that income from visitors and commercial activity may continue to be reduced in the longer-term, and grants pald by government to the museum may be reduced. The new museum project is a £337m investment, wlth the London Wall museum estimated to close for a minimum of two years in advance of the opening to allow for the transition of artefacts,- this Is expected to be from late 2022. The project is funded by drawdowns in advance from the Clty of London Corporation. The cash OLEthows over the coming two years from April 2021 are expetted to be circa £87m {although these are dependent on the programme and may changel, matched agalnst a combination of grant Income from the City of London Corporation and the Greater London Authority, and the museum'5 fundraising campaign. Given the current economic environment facing potentlal donors. uncertainty exlsts over these amounts. We are also reliant on the project being closely managed during this period to prevent delays and increases to the cost base for the project. Controls are in place to mitigate these risks. In addition to the above funding model. where we provlde design Services to the City of London Corporation, income is received from the City of London Corporatlon In the month that the consultants are paid. Therefore. the cashflow for the project is projected and planned to be always posltlve. 37 Museum of London Annual Report and Financial Statements Year Ended 31 March 2021 The key fattor5 in our going concern assessment are-. The museum has confirmed funding from our statutory grant funders until March 2022, although the position after that is les5 clear. The funders have a statutory obligation to fund the Museum beyond March 2022 and grants have not been reduced in the past, even during the height of the pandemic. The museum is forecasting 2022123 funding equivalent to 2021122 grants, however the quantum of the grants post 31 March 2022 is yet to be confirmed. The museum will operate on reduced hours, 5 days per week (apart from school holiday5). It is anticipated that the previou5 pattern of 7 days per week opening will be restored in April 2022. ACE fundlng was extended by a year to 2022123 - £1 . I m per annum for National Portfolio Organisation funding and £0.25m per annum for Settor Support Organisation funding. The museum has invested In Its management capability and ha5 a Board of Governors that brings expert expertise. The museum has robust financial modelling procedures that allow it to deal with changing assumptions. For example, we are experiencing lower than budgeted visitors in the current year. but flexed to introduce seven-day opening during the busier Summer period. when we saw stronger visitor numbers particularly from family groups. We reverted to a five-day week In line with other London museums, which are also being affected by low levels of international tourism. A further drop In visitor numbers would not have a material impact on going concern. The museum's strategic plan contains a key objertive to move to a new site at West Smithfield where the opportunities for growth In vlsitors and 5elf-generated income will be greater after opening a larger site across two market buildings. The City of London Corporation and GLA have confirmed their commitment to the New Museum project through budgets approved by the Court of Common Council and Policy and Resources Committee. and funding is drawn down in advance against these approved budgets. Other factors of note are.. The forecast project spend from April 2021 to 31 March 2023 is £87m (dependent on the programmel and will be funded by drawdowns from the City of London Corporation. The golng concern assessment period largely covers RIBA Stage 5 of the project and break clauses are in place for the construction contracts. None of the philanthropic funders have withdrawn pledges and National Lottery Heritage Fund has confirmed approval at Sta9e 2 of £5m. We have nor drawn down or will draw down funding that is philanthropically raised until the latter stages of the project. thus we wlll never be in the position of having to pay back donors, money should the project fail. During the height of the pandemic we raised a further £3m towards the campaign. such is the confidence in the Museum. iv. On the basi5 of the above and the assumption that grant in aid from our statutory funders (the City of London Corporation and the GLAI will be at least in line with 2021122. Governors believe that the museum's robust structure. in conjunction with the prudent reserves policy explained below, will allow it to manage the foreseeable risks ro the organisation. There is a risk that the Museum could require further funding due to a further decline in visitor numbers and uncertainty over grant in aid. However, the Board has reviewed the Museum's cash flow forecasts and believes it has sufficient cash 38 Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2021 flows for the next twelve months. As such, the Governors continue to adopt the going concern basls of accounting In preparing the annual financial statements. Basls of consolldatlon Consolidated financial statements have been prepared for the museum, whlch consolidate the financial statements of the Museum of London. Museum of London rrrading> Limited, the London Museum Fund, the Joicey Fund and the Mackenzie Bell Fund on a line by line ba515. The con501idated financial Statements present the results of the Museum of London and its subsidlaries (°the Group.) a5 if they formed a single entity. Intercompany transactions and balances be￿een group companie5 are therefore eliminated in full. Uniforrn accounting policles have been applied across the group and have been applied consistently year on year. The functional currency is GBP Sterling. In preparing the separate financial statements of the parent company. advantage has been taken of the following disclosure exemptions available to qualifying entitie5- No cash flow statement or net debt reconciliatlon has been presented for the parent company. INCOME B) Income is recognised when the museum has entitlement to the funds. any performance conditions attached to the income have been rnet, it is probable that the Income will be received and the amount can be measured reliably. Grant income is recognised as income when the conditions for it5 receipt have been met. Retail income is recognised when the sale take5 place. Event and commerclal hlre income is recognised when the event takes place. Donations are accounted for when the museum has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Glft Aid receivable is included in income when there is a valid declaration from the donor. Funding for the New Museum Project Funds relating to the New Museurn Project are accounted for when the Museum has entitlement to funds upon submission of a drawdown request to the City of London Corporation. Funds relating to rhe recharge of expenses las described in note 5 to the financial statements) are accounted for when the Museum has entitlement to funds upon subrni55ion of recharge involce5 to the City of London Corporation EXPENDITURE Expenditure is classlfled under the principal categorie5 of the cost of raising funds {c05t5 of activities Ihat are not in themselves charitable but which are incurred to generate income to support charltable activities). charitable activities {costs incurred in furtherance of the charlty's objectives. including governance costs). and other costs. Withln the costs of raising funds are the costs of generatlng voluntary income and fundralslng trading.. costs of goods sold and other costs. The costs of generating voluntary income are the costs of fundraising and the costs of administering the museum's Friends, scheme. Fundraising trading costs relate to the museum shops, event hlre and catering. Expenditure incurred on charitable activitie5 is subdivided into communlcarions, programmes and learning (adult, family and schools education programmes). galleries and exhibitlons, collections (conservation and curatlonl and governance (cost5 in connection with the constitutional and statutory requirements of the museum). Categories of expenditure include direct and indirect costs. Where costs cannot be directly attributed, they have been allocated to activities on a basis conslstent with their use of the resource5. Pension financing c05t5, arising from changes in the net of the interest costs and the expected return on assets, have been apportioned across the expenditure categories on the basis of the number of pensionable employees. 39 Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2021 Financing costs relating to interest payable on loans are included in the bulldlng malntenance category for purposes of apportionment as the loans are for building improvements. A5 detailed in Note g, support costs comprise finance. administration. human resources. Informatlon technology, Directorate and some prernises costs. Support costs are apportioned across the resources expended categories on a bas15 consistent with their use of the resources, principally by reference to staff head count. Resources expended are accounted for on an accruals basis. DI IRRECOVERABLE VAT Irrecoverable VAT is charged a5 an expense apportioned across expenditure categories pro-rata. FUND ACCOUNTING The museum's financial statements comprise a number of individual funds that divide into dlstlnct categories. These are defined below. General funds are unrestricted funds and comprise revenue balances that have arisen and are avallable for use at the discretion of the Board of Governors in furtherance of the general objectives of the museum. The London Museum Trust (income element) is also a general fund, which. although the responsiblllty of a separate Trust, is available for the general objectives of the museurn. Designated funds are also unrestricted and comprise funds that have been set aside at the discretion of the Board of Governors for specific purposes. Funds representing the net book value of the tangible fixed assets of the museum not funded by loans are transferred to a designated fund to the extent that sufficient general funds are available. Restricted funds are subject to speciflc restrlctions imposed by the donor and include grants and donations for Museum of London major projects. Mackenzie Bell Trust and the Jolcey Trust (income element). Endowment funds - JoScey Trust and London Museum Trust are trust funds In which the donor has provided that the capital cannot be converted to income (London Museum except by the approval of the Board of Governors). FIXED ASSETS Herltage Assets The Museum of London is one of the world's largest urban history museums and cares for over two million objects in its collertion. The Governors consider that the vast rnajority of items in the collection would be difficult. if not impossible. to value. The collection includes social history and archaeological items with no obviou5 market value as well as many unique items with no comparable sale records to use as the basls for valuation. Even if valuations could be obtained, the costs would be onerous compared with the benefit derived by the museum and the users of the financial sratements. As a result. no value is reported for these assets in the museum's balance sheet. The exception 15 far heritage assets purchased since l April 2001 , which are capitalised if the cost Is greater than £3,000. Items in the collection that are capitalised are stated at cost but, with the exception of the Docklands property. are not depreciated as the arnount of depreciation 15 regarded as immaterial due to their anticipated high residual value. The Museum of London Docklands building is largely depreciated over 20 years. 40 Museum of London Annual Report and Financlal Statements Year Ended 31 March 2027 Tangible Assets Tangible fixed assets are stated at hlstorical cost less accumulated depreciation and any accumulated impairment losse5. Historical cost includes expenditure that is dlrectly attributable to brlnglng the asset to the location and condltlon necessary for it to be capable of operating in the manner intended by management. All tangible assets with a cost greater than £3,000 are capitallsed and depreciated on a straight-line basis to write off the c05t over their expected Lrseful lives. Assers under construction are depreciated from the year of completion. From l April 2001 historic artefatts and inalienable assets purchased. with a value of over £3,000 have been capitalised. No depreciation is charged on these items. Leasehold property includlng bulldlngs, Over 5-99 years- the shorter of the expected lrnprovements. renovations and exte.nsions useful life and the length of the lease. Historic arrefacts and museum exhiblts No depreciation is charged on acquired historlc artefacts. Museum exhibits are depreciated over the expected life of the exhibit, typically 10 years. No depreciation is charged untll completion. Other assets including furniture, equipment. Over 4 years (25%) or the asset's expected vehlcles and plant useful life if shorter. Assets under construttion Impairment reviews of tangible fixed assets are carried out In accordance with operational needs. Intanglble Assets Intangible fixed assets are stated at C05t. All intanglble as5et5 Wlth a cost greater than £3.000 are capitalised and depreciated on a straight-line basis to write off the cost over their expetted useful lives, typically l O years. G) INVESTMENTS Investments in listed company shares, which have been classified as non-current asset investments. are re-measured to market value at each balance sheet date. Gains and losses on re-measurement are recognised in profit or loss for the period. Investments in subsidiaries are recognised at cost in the financial statements of Museum of London. The unrealised profit or loss on investments 15 shown on the Consolidated Statement of Financial Activities. H) STOCK Stock consists of purchased goods for resale and Is valued at the lower of cost and net realisable value using the weighted average cost method. I) RECOGNMON OF UABILITIES Liablllties are recogni5ed when an obligation arises to transfer economlc benefits as a result af past transactions or events. J) PENSION CO The Museum's employees are eligible to contribute to the Museum of London Staff Pension Fund (the Fund), whlch is part of a multi-employer defined benefit scheme called the City of London Corporation Pension Fund, administered under the regulations of the Local Government Scheme. Charges are made to the income and expendlture account based on the recommendations of the Fund's actuary. They are applied be￿een the Fund's triennial valuations so as to include the expected 41 Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2021 cost of providing pension5 on a systematic and rational basis over the period during which the museum derives benefit from the employees. services. The current service cost of the defined benefit scheme is charged to employee cost5 over the anticipated period of employment. Nei pension finance income or costs are included i mmediately in employee costs and allocated via support costs. Actuarial gains and losses are recognised immediately on the face of the Consolidated Statement of Financial Activities. A provision for the scheme deficit is Shown on the face of the balance sheet. The amounts charged to the ConsDlidated Statement of Financial Activities for defined contribution schemes represent the contribution5 payable in the period. KI HOLIDAY PAY In accordance with the requlrements of ihe Charity SORP (FRS 102) holiday entitlement accrued but untaken as at the balance sheet date is accrued in full. L) DONATED GOODS. FAcIL￿lEs AND SERVICES Donated goods, facilities and servlces are recognised as income when the charity has control over the item. any conditions associated with the donated item have been met. the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP IFRS 102). the general volunteer time of the museum is not recogni5ed. Refer to the Governors. Annual Report for more information about their conrribution. On receipt, donated good5. facilities and services are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economlc benefit on the open market: a corresponding amount 15 recognised in expenditure in the period of receipt. Donated fixed assets for on-going use by the museum are recognised as tangible fixed a55ets when their fair value exceeds the museum's threshold for capitalisation Set by the museum's accounting policy. The corresponding gain is recognised as incorne. In common with any other tangible assets. donated good5 held as tangible fixed assets are depreciated over their useful economic Ilfe. M) CASH AT BANK AND IN HAND Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturlty of three months or less from the date of acqui51tion or opening of the deposit or similar account. NI CRrricAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the Group's accounting policies, described above, the Governors are required to make judgements, estimates and assumptlons about the carwng amounts of assets and liabilities that are not readi5y apparent from other source5. The estimates and a550ciated assumptlons are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumption5 are reviewed on an ongoing basis. Revisions to accounting estimates are recognised In the year in which the estimate is revised if the revision affetts only that year, or in the year of the revision and future periods if the revision affects both current and future periods. Crltlcal judgements In preparing these financial statements, the key judgements have been made in respett of the following= Depreciation is based on the management'5 judgement of the useful economic life of each asset or asset groupp which determines the rate at which the asset or asset group Is wrltten down. 42 Museum of London Annual Report and Financlal Statements Year Ended 31 March 2021 Key sources of estimatlon uncertalnty The present value of the museum's share of the City of London Corporation Pension Fund Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basls using a variety of assumptions. Any changes in these assumptions, vvhich are disclosed In Note 22, wlll Impact the carrying amount of the pension liability. A roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2019 has been LEsed by the artuary in valuing the penslon5 liability at 31 March 2021. Any differences beNeen the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability. O) FINANCIAL INSTRUMENTS Museum of London has adopted Section I I FRS 102 In respert of financial instruments. (i) Basic flnanclal assets, including trade and other receivables and cash and bank balances are initially measured at transaction price (including transaction costs) and subsequently held at amorrised cost. less any impairment. Loan receivable from MOLA carries interest at Bank of England Base Rate plus 2.5% (see Note 151 and is therefore recogni5ed initially at transaction price and subsequently measured at amortised cost using the effective interest method. (li) Baslc flnanclal liabilitie5. including trade and other payables. are inltially recognlsed at transaction price (after deducting transaction costs) and subsequently held at amortised cost. Museum of London has no financial instrument5 that fall within the scope of Section 12 of FRS 102. 43 Museum of London Annual Report and Financlal Statement5 Year Ended 31 March 2021 21 CONSOUDATION OF SUBSIDIARY UNDERTAKINGS The Joicey Trust, Mackenzie Bell Trust and London Museum Trust all have objects which are exclusively to provide funds for the Museum of London and Trustees who are appointed by the Museum of London. They are rherefore treated a5 Subsidiary charities in accordance with Charitie5 SORP (FRS 102). The Museum of London holds the entire share capital (£2) of rhe Museum of London ITrading) Limited. The results of the 5ub5idiary entities for the year ended 31 March 2021 were as follows: Expressed In £'OOO Jolcey Trust Mackenzle Bell Trust London Museum Museum of Total London 2021 (rradlngl Total 2020 Trust Incoming resources Resources expended Met Incomlng I louigolng) resources Unreali5ed Iloss) Igain on Investment5 32 1181 57 (661 (9) 28 456 14561 573 3,125 551) 13,1071 22 202 350 174 726 1528 Net movement In funds 216 341 748 Isioi Museum of London (frading) resources expended includes gift aid of £86k12020'. £461 k). The assets, liabllltles and funds of the Subsidiary undertaking5 as at 31 March 2021 were as follows.. Expressed In £'OOO Jolcey Trust Mackenzle Bell Trust London Museum Trust Museum of London (rradln Total 2021 Total 2020 Net Assets Investment5 Current assets Curreni liabilities 1.028 108 1.778 230 885 82 3.691 2.913 2.964 3,498 2.493 12,493 Total net a55ets 1,136 2.008 967 3.361 Funds employed Permanent endowment Restricted funds Unrestricted fund5 1.029 107 880 1.909 2.115 87 1,531 1.760 70 2,008 87 Total funds 1.136 2.008 967 4,111 3.361 44 Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2021 3) DONATIONS. GRANTS AND LEGACIES Expressed in £'OOO MUSEUM OF LONDON GROUP UnrestrEcted Restrltted Total Funds Fund5 2021 Total 2020 Greater London Authority Revenue grants Greater London Authority Capital grants City of London Corporation Revenue grants Arts Council England and related programmes Coronavlrus Job Retention Scheme grants Other grants Other donations Total 7,604 35 532 567 7.639 535 5,859 1,401 901 391 275 7.674 301 6,052 1.373 5,292 1.401 894 391 119 1,651 544 435 156 15.350 Included in Donations, Grants and Legacies Group income in the prior year is £1 .739k of restricted funds. Gifts in kind and pro bono services received in the year were valued and recorded by the museum in accordance with the Accounting Policy Note I IL). Other donations include £nil for gifts and services in kind received during the year12020: £13k). Expressed in £'QQQ MUSEUM OF LONDON Re5trlcted Total Fund5 2021 35 532 567 Unrestrlcted Fund5 Total 2020 Greater London Authority Revenue grants Greater London Authority Capital grants Clty of London Corporation Revenue grants Arts Council England and related programmes Coronaviru5 Job Retention Scheme grants Other grants Other donations Total 7.604 7.639 535 5,859 1,399 901 7,674 301 6,052 1.358 5.292 1,399 894 90 241 391 119 1.657 481 360 17.174 544 982 15.523 16,911 Included in Donations, Grants and Legacies Museum of London income in the prior year is £1 ,686k of restricted funds. 4) OTHER TRADING AcfiviTIES Expressed In £'OOO MUSEUM OF LIYJDON GROUP 2021 2020 Shops Prlvate events and functlons Photographlc Ilbrary and Ilcensing Other Total 126 64 1,052 1.578 52 462 41 275 506 3,144 Other Tradlng Activities income is split between TrAuseum of London ITrading) Limited £428k (2020.. £2,964kl and Museum of London £78k12020: £180k). of which none is restricted 12020.. £nil). Other Trading Activities In the Museum of London also Includes £124k of recharges from the Museum of London (Trading) Limited12020: £1 ,397k), which are eliminated on consolidation. 45 Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2021 5) NEW MUSEUM PROJE Expressed In £'OOO MUSEUM OF LONDON AND MUSEUM OF LONDON GROUP 2021 2020 INCOME City of London Corporation grants Coronavirus Job Retention Scheme grants Other income 11,689 55 6.647 18.391 Tl,643 Total 17.418 Restricted funds of £18.391 k (2020= £17.418kl were received during the year to fund specific activities for the New Museum project including RIBA Stage5 3 and 4 project costs. Of rhis £11.7m was grants received from the City of London Corporation and £1 .9m was external fundraising. Other income relates to invoiced income received from the City of London Corporation where the museum has acted as lead charity to provide design and other services. As lead charity the Museum has procured and contracted with suppliers to provide design and other services relating to the New Museum Project whlch are then recharged to the City of London Corporation. 6) INVESTMENT INCOME Expressed In £'OOO MUSEUM OF LONDON GROUP I021 2020 Interest on cash balances Dividends received Property Income Total 106 107 28 112 130 241 Investment Income is split Museum of London £12 k and subsidiaries £118k. Included in Investment Income is £89k12020: £84k) of restricted funds. £390k 12020= £374k) of the cash balances for the Museum of London and the Trust Funds are invested by the Chamberlain of the City of London Corporation at competitive rates that averaged 0.75% in 2021 (2020.. 0.63%). 7) INCOME FROM CHARITABLE AcllviTIES Expressed In £'OOQ MUSEUM OF LONDON AND MUSEUM OF LONDON CROUP 2021 2020 Exhibltlons and events Other Total 222 735 34 222 769 Included in Income from Charitable Activities 15 £36k (2020-. £30k) of restrlcted funds. 46 Museum of London Annual Report and Flnancial Statements Year Ended 31 March 2021 8) EXPENDITURE MUSEUM OF LONDON GROUP Expressed In £'OOO Dlrect Staff Costs Other Dlrect Costs Support Costs Total 2021 Total 2020 Expendlture on Ralslng funds C05t of generating voluntary income Fundralslng trading 75 732 807 22 527 245 765 1.010 342 2,024 2,366 497 549 3,618 Expendlture on Charltable art5vltles Communications Programmes and learning Gallerles and exhlbltions Collettions Governance 475 2,095 1.853 2.531 31 205 1,094 1.288 4,149 77 306 1.468 1,652 1,682 31 5.139 986 4.657 4,783 8.362 139 1,592 6,276 7.588 6,327 122 6,965 6,813 18.937 21,925 New Museum proje Total Expendlture 18,138 25,500 18.138 39.441 7.792 6.149 Governance costs comprise audit fees. an apportionment of directors. remuneration and other cost5 and an apportionment of support costs. Expenditure is split Museum of London £39,190k 12020.. £40,143k) and subsidiaries £2 51 k12020: £1.160k). Expenditure includes £19.81 Ok12020: £17.934kl of restricted funds. 9) ALLOCATION OF SUPPORT COSTS MUSEUM OF LONDON GROUP Expressed in £'OOO Cost of Charitable Governance Ralslng ActI￿tIeS Costs Funds 248 Total 2021 Total 2020 Finance and adminlstratlon Management costs Human resources and IT Penslon liability - finance cost5, etc. Group total support Costs 1,249 564 1.505 678 1,258 905 190 963 1.159 2.807 6,149 1,078 461 2.332 1,010 5.108 6,005 Support costs are defined and allocated as disclosed In Note l . Accounting Policie5. 47 Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2021 I O) EMPLOYEES STAFF Cosrs MUSEUM OF LONDON GROUP 2020 Expressed in £'OOO 2021 Salaries and wages Social security costs Pension costs 9,467 933 1 ,400 494 9.849 983 1.495 813 Employment agencie5 12.294 13,140 The Governor5 neither received nor walved any emoluments during the year (2020-. £nil). Reimbursements of expenses to Governors of the Museum of London were In total £258, paid to one Governor (2020= £1 .316. paid to one Governor). Staff costs in 2020121 include £122k redundancy costs 12020.. £nll). The number of employees with remuneration above £60.000 was within the ranges listed below.. MUSEUM OF LONDON GROUP 2020 2021 £60,000 to £70.000 £70,001 to £80,000 £80,001 to £90.000 £90,001 to £1 00.000 £IOO,001 to £1 10,000 £1 10,001 to £120.000 £120.00] tts £130.000 £140.001 to £150,000 Of the 17 employee5 disclosed above. retirement beneflts are accrulng to 16 staff under the museum'5 defined benefit pension scheme. The compensation (including employer's national insurance contributions) of the key management personnel was £838k. 12020 key management personnel cornpensation: £912k). The remuneration of the Dirertor, who was also the highest paid employee, was as follows: 2021 2020 Salary 149,205 149,205 Contribution to pension scheme 19.378 27.454 48 Museum of London Annual Report and Financlal Staternents Year Ended 31 March 2021 BENEFITS IN KIND No employee received any benefit in kind during the year. AVERAGE NUMBER OF EMPLOYEES The average number of employees, analysed by the categorles of resources expended, and after the apportionment of 47.2 (2020- 57.9} support staff, was= MUSEUM OF LONDON GROUP 2021 2020 Cost of Ralsing Fund5 Costs of generatlng voluntary income Fundraislng trading 31 35 43 48 Charltable Act]￿tIeS Communication5 Programme5 and learning Galleries and exhibirions CollectiDn5 61 63 71 77 72 77 217 231 Total 260 279 The average headcount during the year excluding casual or agency staff was 29612020- 330). The decrease in stsff numbers is due in part to the decislon to freeze recruitment where possible during closure and In part due to the lower staff numbers following the restructuring that took place in 2020121. Staff costs above include casual staff equivalent to approximately 12 full time staff 12020- 12). As part of our response to the COVID-19 pandemic and the multlple perSods of closure and following extensive union consultatlon. two phases of restructuring took place in 2020121. The first in November 2020 included front of house departments and this reorganisation enabled our new operating model of reduced opening hours. The second phase in February and March 2021 resulted in a new structure for Learning that enables us to offer a more flexlble learning programme for schools and famllles. I I ) NEf OUTGOING RESOURCES Net outgolng resources is stated after charging.. Expressed In £.{￿￿1 MUSEUM OF LONDON GROUP 2021 2020 Depreciation Audltor'5 remuneratlon: Audit fees - statutory audlt Taxation compliance fees 3,543 3.511 57 49 Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2021 12) FIXED ASSErs The historic artefacts and museum exhibits at the Museum of London are regarded as heritage assets. This is due to their historical importance and their being held for the purposes of preservation and public education. As explained in Note I IF) only historic artefacts and exhibits purchased since l April 2001 have been included in the balance sheet due to the i mpracticality of economically valuing assets acquired before that date. The Museum of London buildings at London Wall and Eagle Wharf Road are not herirage assets as their preservation is not an objettive of the museum. Th is contrasts with the Museu m of London Dockland5 building, a former spice warehouse, which is historic, and the restoratlon and continued preservation of which is part of the museum's objective. As stated in Note I IF) fixed assets are stated at historical cost less accumu lated depreclation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. MUSEUM OF LONDON GROUP AND CHARrrY Expressed In £'OOO Leasehold property Hlstoric Assets artefacts under museum con5tructlon exhlblts Other assets Total Cost At l April 2020 Additions Disposals Adjustments At 31 March 2021 55,725 90 17) 17.580 404 11251 33 125 18,490 224 91,828 843 1256) 11241 1191 139 55.809 17,864 18.603 Accumulated Depreciatlon At l April 2020 Charge Disp05als Adjustments At 31 March 2021 29.586 2.046 151 11,918 833 <1261 14,835 664 56.339 3.543 12461 31.627 12,625 15.384 Net book value At l April 2020 At 31 March 2021 26,139 5,662 5.239 33 139 3,655 3.219 35.489 32,779 At 31 March 2021 no fixed assets were held by any subsidiary company and both the opening and the closing positions for fixed assets were identical in the charlty and the group. HERITAGE ASSETS The transactions relating to heritage assets for the current year and preceding four years are shown below. There have been no impairments. Expre55ed In £'OOO 2021 2020 2019 2018 2017 C05t of acquisitions Dlsposals 404 308 523 509 301 125 50 Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2021 Fixed assets divide into heritage. tangible and Intangible assets. MUSWM OF LONDON GROUP Expre55ed In £'OOO Heritage asset5 Tanglble assets Intanglble a55ers Total 2021 Total 2020 Leasehold property (Museum of London) Leasehold property {MoL Docklandsl Orher historic artefacts & museum exhlbits Assets under ¢onstructlon Other asser5 24.182 24.182 2,568 2,671 139 26.139 3.032 2.630 33 2,568 2.459 212 139 2,839 380 3.219 32.779 3,655 5,207 27.372 380 35,489 The net book value of leasehold property were made under operating leases. 20 33 {ii> The Museum has construttion and professlonal fees commitments for the New Museum project that are not included in the balance Sheet and are due as follows.. Expressed In £'OOO 2021 Payments due: Wlthin one year Withln two to five years Toral 2020 7.862 1,336 9,198 8,612 11.964 Excluded from the commitments above is a construction contract slgned after year end for the General Market Structural Works. The contract for £17.4m was signed on 30 April 2021 . 53 Museum of London Annual Report and Financial Statements Year Ended 31 March 2021 18) TOTAL FUNDS A) FUNDS ANALY51S- MUSEUM OF LONDON GROUP Expressed In £'OOO Balance at I Aprfl 2020 Income Expendl -ture Transfer between funds Other galns & losses Balance at 31 March 2021 ENDOWMENT FUNDS London Museum Trus¢ Joicey Trust Total Endowment fund5 RESTRicfED FUNDS Museum of London Flxed Assets Fun Major Projects Fund New Museum Project Fund ACE Programme5 Fund Museum In Docklands Capital fund Thist funds Jolcey Trust Income Fund Mackenzie Bell Trust 706 174 880 827 202 1,029 376 1.533 1.909 1,296 410 1.296 641 1.439 19141 12941 3.671 18,391 118,1031 3,959 2,567 322 (7091 2,180 93 32 (181 107 1.667 57 1661 350 2.008 Tot￿ restricted funds 9.706 20.241 (19,8101 <294) 350 10.193 DESIGNATED FUNDS Fixed Assets Fund Arts Council England 24.445 {2,845) 1.009 22.609 354 462 1,424 11,199) (117) Deslgnated funds 24.799 1,424 14.044> 892 23,071 Designated deflned benefit penslon reserve 141,171) 12.8071 (19.311) (63,289) GENERAL RESERVES Museum of London London Museum Trust 6.935 14.557 (12,7691 1598) 8,125 70 28 Total General Reserves 7.005 14.585 (12.780) 8.212 TOTAL FUNDS 1,872 36.250 (39,441 118,585) 119.904 54 Museum of London Annual Report and Financlal Statements Year Ended 31 March 2021 EXPLANATION OF FUNDS Endowment Funds he London Mus um st and oice Trust Funds are both endowment funds, established by benefactors to provide funds to the museum in pursuit of its objectives. The Joicey Trust Fund 15 a permanent endowment fund which means that the income can be spent but not capital. The London Museum Trust Fund is an expendable endowment which mean5 that both income and capital can be spent but the latter onlywith the approval of the Board of Governors of the museum. Income arising in the year Is treated as unrestrirted in the London Museum Trust, restricted in the Joicey Trust. Restrltted Funds Where a donor or sponsor has speclfied a particular purpose for a donation, grant or sponsorship income, that Income is shown as restricted income in the year In which receipt is due. Museum of London Flxed A F d represents the net book value of tangible fixed assets located at the Museum of London financed out of restricted income. It funds future depreciation of those assets. Museum f London Ma'or Pro s Fund arises from a variety of external funding, ranging from rnajor capital works at the museum to specialised work on the collections. eum of London New Mu was Set up in 2015 to represent the restricted fund5 received for the New Museum project. n Docklands Ca dates from the inception of the Museum in Docklands. it ar05e from the restritted funding obtained to restore the old warehouse building that is now that museum (included in "Heritage Assets" in the financial statements). It funds future depreciation of those assets. Th M kenzie Bell Trust Fund is similar ro the Joicey and London Museum Trust Funds except that both capital and income can be spent in support of the museu m's objectives. Designated Funds Where the museum decides to commit to a specific project or set aside a sum for a specific need. an allocation 15 made to a designated fund. The Flxed Ass has been designated by Governors ro ensure the museum maintains sufflclent reserves to replace fixed assets that were acquired without any kind of external funding. Defined as the net book value of tangible fixed assets less the outstanding amount of related long-term loans, it funds future depreciation of those assets. ACE Fund arises from funding from the Arts Council England 2018-22 National Portfolio Organisatlon INPO) grants and 2018-22 Settor Support Organisation ISSO) grants, a four year grant covering primarily a spectrum of learning, communlty and regional programmes. It fund5 the museum's commitment to delivering on the programme agreed with ACE. As part of Art Council England's response io COVID-19, the NPO and SSO grants were extended for one year to 31 March 2023. The ACE Fund also comprises funding brought forward arising from the historic Arts Council England Renaissance Major Grants programme. a three year grant covering primarily a spectrum of learning, community and regional programmes. It funded the museum's commitment to dellvering on the programme agreed with ACE. Th Defined Benefit Pension R Scheme. reP￿sentS the current shortfall on the Defined Benefit Pension 55 Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2021 General Reserves General Reserves are othemise referred to as "Free reserves" as Governors can use them In any way connected with the running of the museum. Both arise from unrestricted income. TIiANSFERS B￿EEN RESERVES Ma or Pro ects Fund the transfer out of £294k is primarily to reflect the substantial completion of certain capital works funded partly or fully by external Sources. Once the works have been completed the conditions attaching to the grants have been met and that amount can be transferred to general reserves. Desi nated Fixed Assets Fund - the balance on this fund is maintained at a level representing the net book value Df total fixed assets less the outstanding amount of related long-term loans. As the cover required each year is affected by a collection of factors. such as depreciation, loan repayments, fixed asset disposals and acquisitions, each year a specific calculation is made to determine the transfer required from general to designated funds. The transfer from general reserves for 2020121 was £1,009k. na Arts Council En land Fund - the transfer out of £1 17k represented the use of historic unrestrlcted grant and programme income that wa5 used to fund related activity in the year. General Reserv s the transfer of £598k is the net balance of the transfers referred to above. 56 Museum of London Annual Report and Financlal Statements Year Ended 31 March 2021 19) ANALYSIS OF NEf AS5Efs BETWEEN FUNDS - MUSEUM OF LONDON GROUP Expressed In £'OOO Tanglble Flxed Assets Invest- ments Current Assets Current Liabilltles Long temi Llabllltle5 Penslon Uabllltles Total Net A55ets Prov151on5 ENDOWMENT FUNDS London Museum Trust Joicey Trust 880 1,028 880 Endowment fund5 total 1.908 1.909 REST￿CTED FUNDS Museum of London Flxed A55ets Fund Major Projects Fund New Museum Project Fund ACE Programmes Fund Museum In Docklands Capital fund Trust Funds Joicey Trust Incom& Fund Mackenzie Bell 1.296 1,296 641 3,959 641 3,959 2,180 2.180 107 230 107 1.778 Re5trlrted funds tota] 3,476 1.778 4.939 10.193 DESIGNATED FUNDS Fixed Assets Fund Ans Councll England 29.303 (5011 16,1931 22.609 462 462 Deslgnated funds total 29.303 462 (501 > 16.193) 23.071 Deslgnated defined benefit penslon reserve 163.2891 (63.289) GENEK4L RESERVES Museum of London London Museum Trust 14,637 82 16.5111 8.125 87 General Reserves total 14,719 16.5TII 8.212 TOTAL FUND5 32.779 3.690 20.121 <6.193 (19 904) 57 Museum of London Annual Report and Financial Statements Year Ended 31 March 2021 20) TAX STATUS The acrlvities of the museum are undertaken for charitable purposes. Under Part I l of ￿A 2010 no liability to corporation tax has arisen for Ihe year to 31 March 2021 12020= £nil). 21) RELATED PARTIES The following disc105ures are made in recognition of the principles underlying Financial Reporting Standard 102 concerning related party transactions. GREATER LONDON AUTHORrrY (GIA) The GLA is considered a related party since it has the right to appoint half of the Governing Body of the museum and is one of the two main sponsors of the museum along with the City of London Corporation (see below). The museum received grants from the GLA totalling £8.2rn 12020.. £8.Om) during the fillancial year ended 31 March 2021. Included in the 2021 figure above is £0.5m of capital funding (2020= £0.3 ml, which wa5 for capital works carried out in 202012 1 . BI CITY OF LONDON CORPORATION (COLC) The City of London Corporation is considered a related party since it has the right to appoini half of the Governing Body of the museum and 15 one of the two main sponsors of the museum along with the GLA15ee above). The museum received grants from the City of London Corporation during the year of £17.6m12020.' £17.7m). Included in the 2021 figure is £1 l.7m for the New Museum project (2020.. £11.6m}. The City of London Corporation in accordance with the Museum of London Art 1965 15 required from amongst the officers of the City of London Corporation to appoint persons who. whilst remaining officers of the City of London Corporation, act as Secretary and as Treasurer to the Board. Additionally, the Board has appointed other officers of the City of London Corporation to provide various services including legal. payroll and internal audlt services. The provision of all these services by the COLC is the subject of a charge in accordance with the 1965 Act. During the flnancial year ended 31 March 2021 the charges for these services were £0. I m12020: £0. I m). Outstanding loans from COLC to the Museum of London totalled £6.7m at 31 March 2021 (2020: £7.2m). This total includes a balance of £82k on a loan originally made to the Museum of London Dockland5 (2020.. £103kl. Of these loans, £504k is due within one year12020-. £484k) and £6,193k is due after more than one year 12020.. £6,697k). The museum incurred interest charges related to these loans of £112k (2020.. £108k). MOLA MOLA Is considered a related party due to the close association between it and the museum, as reflected in the loan advanced to MOLA by the museum. the Memorandum of Understanding that governs relations between the two organisations and the on-golng Ilnk between the organisations through Boards of Management with close and regular contact. The museum does not exercise control over MOLA whlch is an independently constituted charitable company separately managed by its own Board of Trustees. One of the Museum of London's Governors, Alderman Alison Gowman. is a Board Director and Trustee at MOLA, representing the Museum of London on the MOLA Board. Outstanding loans from the museum to MOLA were £O.I m at 31 March 2020, but was fully repaid during the year. The balance owed was £nil at 31 March 2021 . The loan was repayable in 115 equal monthly instalments which commenced on 3 April 2012 and ended in October 2020. It was secured by a floating charge over the assets of MOLA and carried a commercial rate of interest. These flnancial statements include interest of £1 k received from MOLA during the year (2020.. £6k). A charge of £265k was made by the museum to MOLA for a licence to occupy space in Mortimer Wheeler House12020: £265k). In addition. a charge of £50k was made by the museum to MOLA for use of the museum's trade mark. under a variation to the Trade Mark Licence agreed during the year (2020.. £150kl. 58 Museum of London Annual Report and Financlal Statements Year Ended 31 March 2021 DI GOVERNORS AND STAFF None of the Governor5. key managerial staff or thelr related parties has undertaken any material transactions Wlth the museum or its subsidiary undertakings during the year. The Museum has received £15k12020'. £16k) donations In total from a number of the Governors. in the normal course of charitable giving. 22) REnREMENT BENEFITS The Museum of London partlcipate5 In the City of London Corporatlon Penslon Fund, a defined benefit pension scheme. The amounts below relate to the Museum of London's share of the fund. The valuarlon used for the disclosures in thi5 note has been based on the results of the last full actuarial valuation carried out at 31 March 2019, as updated to 31 March 2021 using financial assLJmptions that comply with FRS 102. The contributions made by the employer over the flnancial year amounted to £l.449k 12020- £1 ,5 T 7k). The contribution rate set for the year was 16.1 % 12020- 16.1 W. Following the triennial valuation, the 2021122 and 2022123 employer contrlbutlon rate has been set to remain at 16.1 ASSUMPTIONS The financial assumptlons used to calculate scheme liabilities under FRS 102 are.. Valuation Method 2021 2020 2019 RPI Increases CPI Increases Salary Increases Pension Increases Discount Rate 3.20% 2.85% 3.85% 2.85% 2.00% 2.65% 1.85% 2.85% 1.85% 2.35% 3.40% 2.40% 3.90% 2.40% 2.40% The assumed life expectations from age 65 are: Llfe expettatlons (years) Retiring today Retiring in 20 years Males 21.6 22.9 Female5 24.3 25.7 59 Museum of London Annual Report and Financial Statements Year Ended 31 March 2021 NEf ASSEfs OF THE SCHEME The Museum of London's share of the net assets in the scheme was as follows.. Expre55ed In £'OOO A55ets at 31 March 2021 Assets at 31 March 2020 A5set5 at 31 March 2019 Equities Cash Infrastructure Multi-asset fund Total Assets (A} 52,087 443 10.060 23.987 86.577 40.941 47,902 820 3,980 8.604 68,954 Present Value of Scheme Liablllties Present Value of Unfunded Liabilities Total Value of Liabilities IBI 1149,2931 573 1109,565) 1560) 1110.125 1112,9331 459 1113,392 {149.8661 Net Pension (Liability) IA) - IBI (63.289) 141.171 141,722) ANALYSIS OF PENSION SCHEME oiJfGOING RESOURCES MUSEUM OF LONDON GROUP 2021 2020 2019 Expressed in £'OOO Analy515 of the amount charyed to resources expended Service Cost Emp5oyer Contributlons Unfunded Penslon Payments Net interest on the defined liablllty Administration expenses Past service costs, includlng curtailment5 Net Resources Expended 3.284 <1,449) 143) 956 59 363 3,170 3.274 11.517} (42) 983 66 2,750 {1,4101 (411 986 77 662 2,764 Pension fund operational costs are apportioned to the expenditure heading on the Consolidated Statement of Financial Activities according to staff costs in each category. ANALYSIS OF AMOUNT RECOGNISED IN OTHER RECOGNISED GAINS AND LOSSES MUSEUM OF LONDON GROUP 2021 2020 2019 Expre55ed In £'OOO Return on fund assets In excess of interest Other actuarial galns on assets Change5 in financial assumptions Changes in demographic assumptlon5 Experience gainllloss) on defined benefit obligatlon Actuarlal O05511galn recognised in Consolldated Statement of Total Recognlsed Gains and Losse5 16,752 {4,2301 48 11,669 700 4.872 3.365 (38,731) 1,200 1.468 15,529) 2,841 119.311> 3.315 677 60 Museum of London Annual Report and Financlal Statements Year Ended 31 March 2021 MOVEMENT IN DEFICIT DURING THE YEAR MUSEUM OF LONDON GROUP Expressed In £'OOO 2021 2020 2019 DeficSt at beglnning of the year SeThice Cost Employer Contributions Unfunded Pension Payment5 Net interest on rhe defined Ilablllty Administration expenses Actuarial Ilossllgain Deflclt at end of the year (41.171) (3.284) 1.449 43 1956) (591 {19,3111 63 2891 141 ,722) 13,274) 1.517 42 1983) (66) 3.315 141 1711 139.375) {3,412) 1,410 41 {9861 (771 677 141,7221 RECONCIUATION OF OPENING AND CLOSING BALANCES OF THE PRESENT VALUE OF THE DEFINED BENEFIT OBLIGATION Expressed In £'OOO MUSEUM OF LONDON GROUP 2021 2020 Opening defined beneflt obligation Current service cost Interest cost Change In financial a55umptions 121 Change In demographic assumptions Experience Ilossllgain on defined beneflt obllgatlon E5tlmated benefit5 pald net of transfers in Past setvice costs. including curtallment5 Contributlons by Scheme partlclpants Unfunded pension payments CID51ng defined beneflt obllgarion 110,125 2,921 2,568 38,731 (1,200) 11.468) (2.749) 363 618 43) 149,866 113,392 3,274 2.701 111,669} 17001 4.872 12,3711 668 1421 110 125 121 Arising from change5 In a5sumptlons underlying Ihe preseni value of the Fund liabllities. The change in 2021 Includes the Impact of rhe change in derlvatlon of future assumed RPI and CPI inflation. These changes have resulted in a 10$5 of £6,434k on the deflned benefit obligatlon., comprising a galn of £7,628k from the change In assumed RPI and a10$5 Qf £14.062k from the change In the assumed gap beNeen RPI and CPI Inflation. RECONCIUAnON OF OPENING AND CLOSING BALANCES OF THE FAIR VALUE OF FUND ASSE[5 Expressed In £'OOO MUSEUM OF LONDON GROUP 2021 2020 Openlng fair value of Fund assets Interest on assets Return on assets less Interest Other attuarlal galns Administration expenses Contributions by employer Includlng unfunded benefits Contrlbutlons by Scheme participancs Estimated benefit5 paid and unfunded net transfers Flr value of Fund assets at end of perlod 68.954 1.612 16.752 71 ,670 1,718 14.230} 48 {661 1,559 668 12,2291 68,954 (59) 1.492 618 12,792) 86,577 61 Museum of London Annual Report and Financial Statements Year Ended 31 March 2021 SENSITivifY ANALYSIS The following table sets out the impact of a change In the dlscount rates on the Total Obligation and Projected SeNice Cost along wlth a +l- l year age rating adjustment to the mortality assumption. 2021 2020 2019 Adjustment to discount rate Present value of total obligation I'OOO Projected service cost £'OOO +0.1% 146.711 4,738 +0.1% +0.1% 107.815 110.565 3,046 2,813 Adjustment to mortality age rating a55UrnPtion Present value OF total obligation £'OOO Projected servlce cost £'OOO +1 year 156,261 5,135 +1 year +1 year 114.220 116,841 3,218 2,978 PROJEcfED PENSION EXPENSE FOR THE YEAR TO 31 MARCH 2021 £'ooo Servlce cost Net Interest on the defined liability Administration expenses Totalloss 4.933 1.252 75 Employer contrlbutlons 1.402 231 POST BALANCE SHEET EVENTS Since the year end the Mu5eum5 have reopened 10 the public, welcoming visitors since 19 May 2021 . The sector continues to experience a downturn in visitors resulting from the COVID-19 pandemic and on90ing restriction5 on international travel. The Museum of London has considered the effect on the charity as a going concern. its resilience through this period and the effect on the assets and funds of the museum. The Governors have reviewed the two year financial plans and agreed a series of attivities that should ensure flnanclal stabillty in these difficult time5. On review of the financial plans to the end of March 2023 the Governors have concluded that this will not affect the ability of the charity to continue as a going concern. We remain resilient through cost reduction, avoiding undue risk, and sound financial planning and management. 62 Museum of London Annual Report and Financial Statements Year Ended 31 March 2021 REFERENCE AND ADMINISTRATIVE DEfAILS Name Museum of London Address 150 London Wall, London EC2Y 5HN Reglstered Charity number 1139250 Board of Governors A Board of Governors. consisting of 18 members of whom the Greater London Authority IGLA) Iprior to April 2008.. the Prime Minister) and the City of London Corporation ICOL), each appoints 9 members, is responsible for the strategic direction and oversighr of the museum. The followlng Governors served throughout the flnanclal year. except where indicated. Appointed by the Clty of London Sonita Alleyne OBE Rt Hon the Lord Boateng DL Tijs Broeke CC Councillor Kaya Comer-schwartz (appolnted 16 September 2021) Alderman Alison Gowman Vivienne Littlechild JP MBE CC Paul Martinelli CC Judith Pleasance CC John Scott JP CC Councillor Richard Watts (ceased to be a Governor 31 March 2021) Appointed by the GLA Clive Bannlster David Camp (ceased to be a Governor 31 July 2021) Evan Davis Douglas Gilmore Lindsay Herbert Milyae Park Gail Tolley Professor Sir Rlchard Trainor KBE (ceased to be a Governor 31 March 2021) David Wormsley Admlnlstratlon Under the Museum of London Acts 1965 and 1986. the Board is required to appoint a Director of the museum to be responsible to the Board for: The care of all property in possession of the Board- The general administration of the collections vested In the Board and any place where those collections are kept., and The adrninistration of any services provided by the Board in the exercise of their functions. The Treasurer and Secretary to the Board are required to be offlcers of the City of London Corporation. Director Sharon Ament Treasurer Kate Llmna, Gulldhall. London EC2P 2Ei Secretary John Barradell. Guildhall. London, EC2P 2FJ 63 Museum of London Annual Report and Financial Statements Year Ended 31 March 2021 Bankers Lloyds Bank, 25 Gresham Street. London EC2V 7HN Chamberlai n of London, Guildhall. London, EC2P 2EI Legal Advlsers City Df London Corporation. Guildhall. London. EC2P 2EI Farrer & Co. 66 Lincoln's Inn Fields. London WC2A 3BR Independent Audltor BDO LLP Chartered Accountants and Statutory Auditor 5 5 Baker Street London WIU7EU Investment Adviser BlackRock Investment Management 12 Throgmorton Avenue London, EC2N 2DL SUBSIDIARY UNDERTAKINGS The flnancial statements consolidate the accounts of the Museum of London together with its subsidiary undertakings which are Ilsted below. Museum of London (rrading) Limited The Museum of London (Trading) Llmlted Is a company limited by shares. Its principal activities are the provision of corporate hire and catering service5 and the retail function at the museum shops. The registered company number is 05423292. The Trust Funds The Trust Funds were acquired from the London Museum in accordance with the provisions of Section 2 of the Museu m of London Act 1965 and are separate legal eniiiies. The Board of Governor5 appoints their Trustees. Individual financial statements are produced for each trust and they are also consolidated into the financial statements of the Museum of London. The trust5 are.. London Museum Fund - Registered Charlty Number 312174 Joicey Fund - Registered Charity Number 314194 Mackenzie Bell Fund - Registered Charity Number 314195 The appropriate clauses defining the control of thelr expenditure are.. London Museum Fund 'The Trustees shall hereof apply the income of the Charity for such charltable purposes as the Trustees shall frorn time to tirne consider best in the interests of the Museum including in particular: The acquisition for the Museum of artefacts, pictures, photographs. books, manuscripts, films and other objects of any description whatsoever relating to any aspects of the history of London", The rendering of assistance to the Museum in prese￿atiOn. maintenance and repair of objects of all kinds owned by or in the custody of the Museum for the purposes of exhibition to the public or for use for the purpose5 of study or research.. 64 Museum of London Annual Report and Flnancial Statements Year Ended 31 March 2021 The promotion of the study of history of London by the publication of books and other printed matter. the provision of exhibitions, lectures, seminars. recitals. recorded music and prizes and the comrnissioning of literary or artistic works. photographs or films., or The provlslon of improvement of amenities and facilities at the Museum.. Joicey Fund The Trust was established from the estate of John George Joicey. The relevant extract from his will states: he remainder of the said estate shall be made over to the Trustees of the London Museum to form a fund, the income from which shall be applied as the Trustees of the Museum think flt In the purchase of artlcles. specimens. curios, etc., for the Museum.. Mackenzle Bell Fund he said assets and property and any income thereof shall be used as the Trustees of the London Museum shall from time to time think fit for the purpose of maintaining and adding to the collectlon in the sald Museum". 65