Registered Charity No.. T 139250 MUSEUM OF LONDON Governors, Report and Financial Statements for the year ended 31 March 2022 Museum of London Annual Report and Financlal Statements Year Ended 31 March 2022 CONTENTS Page Chair's Statement Clive Bannister Foreword by Director Sharon Arnent Governors, Annual Report Structure, Governance and Management 14 Financial Review 19 Statement of Governors, Responsibilities 27 Independent Auditor's Report 28 Consolidated Statement of Financial Activities 32 Museum of London Statement of Flnancial Activities 33 Group and Museum Balance Sheets 34 Consolidated Cash Flow Statement and Cash Flow Note 35 Notes to the Flnancial Statements 36to64 Reference and administratlve details 65to67 Museum of London Annual Report and ￿nancIal Statements Year Ended 31 March 2022 CHAIR'S STATEMENT whilst the long tail of the Covid-19 pandemic remained an issue. this year has been marked by the Museum's ongoing resilience and the start of recovery. A stronger and better future wa5 demonstrated by increasing foorfall in the final months of the year. A good public programme greeted our returning visitors. The capital's global connections were explored through London.- Port City, in partnership with the Port of London Authority. whilst the craft talent of contemporary and historlc makers was showcased in London Making Now. In December we were honoured to announce that HRH The Prince of Wales, now HRH The King. had become our Patron. This followed a visit to the West Smithfield site earlier in the year where our plans to create a New Museum are being reallsed through a prograrnme of major construction- starting with complex structural works in the General Market. It Is thrllllng to see the building being carefully returned to its original splendour for its next chapter as home to our Museum. Funding support has brought Us closer to reaching our £40m campalgn target for the first stage of the projett. focused on the General Market. with £35.5m pledged by the end of March 2022 including a landmark donation of £5m from the Garfield Weston Foundation. Collaboration with our key partners has never been stronger, as we work with the City of London Corporatlon. Greater London Authority and Arts Council England on shared agendas around education. tourism. the climate crisis and iulture. I would like to thank all my fellow Governors for their invaluable contrlbutlons and commltment to the work of the Board. Particular thanks go to those who have undertaken the role of Chair for the New Museurn Project Board. Audit & Risk Management Committee, Remuneration Committee. the Trading Board and Academic Panel,. David Camp. John Scott, Sonita Alleyne, Milyae Park. and Professor Sir Rick Trainor respectively. On behalf of all the Board of Governor5. 1 congratulate the Director Sharon Arnent and her team for their dedication to ensure that rhe Museum continues to make an enduring contributlon to the clty and the lives of Londoners. We look ahead to one of the most significant years in the history of the museum as we rebrand to become Yhe London Museum" and advance our New Museum plans, focussed on our opening in October 202 5. 1 look forward to sharing in this exciting time ahead with our audiences, stakeholder5 and whole Museum team. Clive Bannister, Chair. Museum of London Board of Governors Museum of London Annual Report and Financial Statements Year Ended 31 March 2022 FOREWORD BY SHARON AMENT. MUSEUM DIRECTOR Re-inhabiting our buildi ngs in a safe way. re-building ourselves as a vi51tor attraction and gettlng on with the business of being a museum wa5 immensely rewarding after such a period of difficult disruption. We still had our work cut out, along with our colleagues across the cultural sertor. as our vi51tor numbers averaged a third of pre-pandemic levels across the year, the Covid-19 Omicron variant further slowed progress and internatlonal tourlsts were not yet back in force. However the outlook at the end of the year gave us reason to be optimistic about the future. It was a delight to hear the sound5 of throngs of children again enjoying a school trip to the museum and reminded me of the fundamental truth that museums are about people. Delivering our vision for a new museum for London at West Smirhfield remained our absolute priorlty. The focus this year was on the General Market building where the pace and scale of the work underway onsite was truly immense - whether it was l O.OOOm2 of brickwork being industrially cleaned or the painstaking replacement of 200 historic timber windows and so much more. Our talented team continued to collaborate with world class architects, engineers. exhibition designers and crearives, along wirh input from Londoners themselves, to create something that will be amazing and fresh for the 21 st century. In February we made the major announcement that we would be closing the galleries to visitors at our London Wall slte at The end of 2022. and that from this point we will become The London Museum and The London Museum Docklands. a change that heralds our journey to become a new museum for London. As ever there was a huge array of work underway that was le5S V15ible to the public. From initiating new academlc research into flsh bones to give inslght into medieval diets through to the replacement of two business-critical systems, in Finance and HR. the breadth of activity and expertise at work to continually develop the Museurn 15 rarely seen in its entirety. Internally our plan5 for organisational transformation continued including a change to our senior management structure and the appolntment of a new Managing Director of Docklands, Douglas Gilmore. who will lead the Museum as it becomes our prl mary public offer from late 2022. A heartfelt thank you to everyone that continues to share in our collective endeavour- my colleagues. the City of London Corporation. the Greater London Authority. Arts Council England and all our supporters. our Volunteers. our Board of Governors and Chair. Cllve Bannister. for your steadfast support and inspiration. Together we are well placed to proceed with one of the most significant years in the history of the Museum. Bring it on! Sharon Ament Dlrertor, Museum of London Museum of London Annual Report and Flnancial Statement5 Year Ended 31 March 2022 GOVERNORS, ANNUAL REPORT GOVERNING OBJEcfs AND PUBLIC BENEFIT Our principal governing document is the Museum of London Act 1965 las subsequently amended). This require5 the Board of Governors to.. {a) care for, preserve and add to the objects in their collections- Ib) ensure that those objects are exhlblted to the publlc and made available to persons seeking to inspett them in connection wlth study or research: (c) generally promote understanding and appreciation of historic and contemporary London and of its society and culture, both by mean5 of their collections and by such other means as they consider appropriate. and (d) take any action a5 they think necessary or expedient to fulfil the aims and objective5 of the museum as set out in legislation. The Charities Act 2011 ('the Art.) requires charities to publish details of the public benefit thev 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 arts. culture. heritage or science and secondly through the advancernent of education. As entrance to the Museum of London and Museum of London Docklands is unrestricted and 15 free, The Governors believe that there are no unreasonable restrictions on access io the benefit5 which are therefore available to the publlc In accordance wlth the definition of the Act. The Governors believe that the remaining requirements of disclosure placed on charities by the Act are met within the Governors, Report set out below. COVID-19 PANDEMIC During 2021122 Museum of London and Museum of London Docklands sites were closed to the public between l April - 18 May 2021 in line with Government restrictions in response to the pandemic. Both Sites were open from 19 May 2021 for the remainder of the financial year. operating in line with Government guidance. At all points the Museum contlnued to provlde a compelling public offer and creative content for audiences including through digital means when closed. STrATEGIC OBJEcfivES Our Strategic Plan 2018-2023 5et5 Out five overarching objectives for the perlod that have guided all that we do= Reach more people 2. Become better known 3. Stretch thinking 4. Engage every schoolchild 5. Stand on our own Thyo feet In response to the Impacrs of the Covld-19 pandemic. we have developed a set of objectives that set the framework specifically for meetlng the challenges of this period and which continued to guide our activity in 202 1122= Safely welcome visitor5 back into our museums Stay connected with and raise our profile amongst the publlc and our communities Museum of London Annual Report and Financlal Statements Year Ended 31 March 2022 Be a more equal. diverse and inclusive museum Secure our immediate and longer term finances Deliver the new museum programme Develop our forward organisational plans for the new rnuseum In 2021122 we have delivered our objectlves through: Safely welcomlng vlsitors to our museums and offering compelling content and programming This year 206,270 visits were made to the Museum of London and 103,891 visits to the Museum of London Docklands for the period 19 May 2021 31 March 2022. For comparison, combined, this is just over 3 1 % of pre-pandemic (2019120) visitor numbers. Our programme included extended runs for the popular exhibitions Havering Hoard.. A Bronze Age Mysteryand Dub London." Bassline ola Clty. The latter, focused on the role of dub reggae in London's communities, went on to win two industry awards awarded by the Association for Heritage Interpretatlon.. winner of the Untold Stories category and overall winner for Excellence in Interpretation. London Making No+Yfeatured objetts created by 15 contemporary craft makers based in London, ranglng from furniture to porcelain figures alongside historic objects from the museum's collections that have inspired the creation of the contemporary pleces such as jewellery from the Cheapside hoard. So far. over 17.000 visitors have come to Museum of London Dockland5 to find out about more than 200 years of extraordinary experiences on the river and in the port in our London.. Port City exhibition developed In partnershlp wlth the Port of London Authority IPW. A particular highlight has been the community-led Feeding Slack exhibition. developed as part of our London. Sugar andslaverygallery. This explored the role food plays in Black enterprise and identity in South East London worklng wlth Black-owned businesses, as part of a year-long pan-London collecting project on the topic of food. Our youngest visitors have been enjoying time in our dedicated children's gallery, Mudlarks, which reopened to include a new multl-5en50ry, docks-therned baby soft-play area, with over 41.000 visits this year. (,0)) Connecting with many more people beyond our walls through digital and media activity Over 2.8m people visited our website and our social media audiences for the year ended 31 March 2022 were.. Museum of London Annual Report and Flnancial Statements Year Ended 31 March 2022 132.425 178.165 98,138 We saw an Increase In vlsits to our website (up 29% on 2020121) and a return to pre-pandemic levels lup 2% on 2019120) as visitors consulted the website to plan their trips to the Museum. as well as engaging with our wide-ranging online content. The Importance of grassroots football in London was championed in our film commission Eleven. created In partnership with the Greater London Authority {GLA) to celebrate UEFA EURO 2020. The film had over 2,000 views on YouTube and 2.000 engagements acr05S Social rnedla. On social media we tested different types of interacLive content Such as #askaconseNator wlth members of the publlc qulzzlng our expert Conservation Team about what they do via Twitter and Legacies in Language which used Instagram storie5 where audiences chose which definition. taken from London.. Port Citycontent. they most wanted revealed. Our Dlscover blog gained over 660.000 page views with online audiences diving deeply Into Museum of London content wlth popular posts including topics such as Six things you should know about the Suffragette hunger strikes. Museum of London stories featured in 1.854 pieces of media coverage. Notable storles included the re-opening of the museum. our announcement of HRH The Prince of Wales, now HRH The King, becomlng the Museum's patron. the discovery of music belonging to Emma Harnilton. the acquisition of the Robert Milligan statue and our plans to close the galleries to visitors at our London Wall site as we prepare for our relocation to West Smithfield. Adapting our organisation and operatlons and belng ready to respond to challenge5 and opportunities Rebuilding our commerclal activities began in earnest as we opened our doors from mid-may. The arrival of the Omicron variant slowed this progress in the winter months but overall our shops, cafes. restaurants and venue hire business, generated income of £l.Om. A further £0.2m of revenue was generated through vi51tor-related activities such as encouraglng onsite donations and providing guided walks and tours. Whilst there remains a way to go io reach pre- pandemlc levels of self-generated income this year represented a shift in the right direttion. The first stages of our multi-year digital transformation are now underway. To set strong foundations for the future a new Head of Digital Innovation was recruited and two strateglc consultancy projects began. One to understand our digital audiences and the other to develop a roadmap for future development and investment. A longer-term programme of organisational transformation. recognising the need to tackle racism through structural and cultural change. remains our priority. A key initiative was a collaborative research projeci, Advanclng Equity. completed in partnership with Leicester University that enabled us to begin to systematlcally tackle embedded whiteness in our organisation. The learnings will inform our new museum-wide equality, diversity and inclusion strategy. Museum of London Annual Report and Flnancial Statements Year Ended 31 March 2022 Channelling our ambition to become a shared place In the middle of it all, we want to put Londoners at the heart of our new brand and becoming The London Museum. For our next phase of brand development we have initiated a project that will see us work with visitors to the museum. schoolchildren and diverse representatives from each of London's 32 boroughs and the city of London wlth thelr inslghis Informing the creation of our new visual ideniily Idue in 20221. Creatlng compelllng programming with distinctive content about London and its people A rich and varied programme was on offer as we welcomed audiences back through our doors with imaginative exhibitions and events designed to appeal to the interests of different visitors. Every year is different and highlights from 2021122 are captured below. EXHIBITION HAVERINfj HOARO: A BRONZEAGEMYSTERY EXHIBITION VB LONDON: BASSUNEOFACITY Thisdl¥1ayt￿￿*￿er￿slntathehtartQY Du& ItsrootsinlaffAlran re88aE4nd howlt hB5 laigestv*FEf<)nzeAgeho¥dt¢ è< d￿c0￿er2dl￿L0ndOn formdtipfval point ofthis*xhikition.The453 bran￿ObjectiVeS Intn&Jin84uestknft&Mthepeoplew butiEdtTrem andthP￿￿IÈhe ￿d. ImpactontheidEntltydLothn it5pwpI The P￿iE(tr0r￿eo￿rtofthec￿nIeMp0mY IlrftlngfuratinELwdonprogrimme. M￿S￿j￿01L0nd•Th EXHIBITID FÉ£DING BLACL. COMMUTr41rY.poweRANPPLACE EXAIAITION LONDQN MAKING NOW Th¢wk&fT5cDntempDraryLollthnfflaker WAS¥1￿SE￿t￿wtyt￿1sdlspl0y.$ettmgtheIT contrtbutiDn&lThthecartEXtafthecaptil' n8h1gloryofcr￿t1¥II yaMcTa*t.ÈJchafth J¥layExpbreSthe¢thtral r0lef0cdrl￿ 1n81￿k¢￿erprI5VThndid4lltItyln Swib ￿$t London. ItSPOtlig*tsf4ulAfrKan Jft¢Carltyb4n buSincSJESand thti¢o￿￿%ftJt￿￿n20r￿l beeDacquiredwith5UPPQrt ￿￿rn thEArtfund. MuB•umdLDndon Dotklvnds EXHIBITION LONDONZ PORTaTY YBRID EVENT REFVGEEWEEKioiiATTHE MUSEUMOFLONDQN ThisrnaJolexhl￿tl0￿JE￿lQpedI￿PartlIcTthIp knwith Port olLtsndon #Arthoiiry,ta0kaf￿Sh k3ttlewrttUthya￿ Itshi5tDyfeatuYlrt8 alouhdl￿0bi*¢t54￿d re*ollnqtherkhn￿ 0ft￿￿￿eV￿ts￿l h15toryEdknun pirtof lefuyèwieEk*M hEho#edabook launch*d ￿￿eld￿C￿￿￿￿arOU￿dthern1e MuStumshav¢ènds￿l Fday￿thIn￿￿8Èg1n8 refts8eecDfflm￿￿ltit￿.hryhIlshtlll3￿eL￿TrtFlbutrD￿ od¢by &LBE¢5thFou8houl LoryJ)n'ihi*ory. vIU￿2(￿lI Museum￿LD￿￿TrD¢*lknts EVEfhtr OPEN HQUSI- NEWMU5EUAaOFIONDON HYBRID EVENT EA4•AA'SSONGÉOOKS: REDISCOVERED MVSICFQRNELSQN visitor5v￿O(lered¥￿lmpsein1Q￿he heirt af theNebvM￿￿mCO￿tr￿￿Ofis1ttt￿oUth ¥kn￿n8 polntlnthetsene￿l to htar m(Y¢ab￿￿tthl$tsn￿in-*S￿htrat￿ffl- PF4ecta5 Faltofthetsgen HoL¢¢Fesi￿￿. WEQKuEJ￿d1E￿¢csanèXl￿O1dI￿ry nL¢htof U51cipdhi5toty.*tkfft8Witp thÈGulth Scho¢lof MuslcandOram&afterthtdlscD¥ry ¢fuftknak¥r sDngsdadiiatedtll Lord foundkn Ile￿n8b00kjo[L•jYEmrnd H¥rriltsn. Museum of London Annual Report and Flnancial Statements Year Ended 31 March 2022 FAMIIY FESTIVAL LUNARN£WYEAR HYBRID FAMILY EVENf TAILSOFSAILORTOWM Thi$ever•¢p￿•ry￿t￿n&Fe*1va1￿aS￿Q￿￿ FOrFe￿￿ryk￿fIe￿tIm',ll*sWw¢lNElo Th¢fietkMilyactMtiesi￿IUd￿ puppel perf¢nTrèn¢e£andTrAskm4kir&5e*5i¢TrsI&>78 ithonlnew0thshopsandcontofttthatc￿￿d beefflpyedathaffle. 3theniuie.The￿l puppet.k6f•rnl1ye￿ll*tOd Pla￿(￿lInE￿ndato0[k￿Rd5Stt7ntke￿s￿￿rn andu5Tnglnterxtth¥kle Mus•UmolLonthDath￿￿*0nMn* Developing our relationship with Londoners and shaping the new museum 283 volunteers contributed their time and skills with us in many different ways over the year, including 35 volunteers working remotely through onllne projects. A highlight was Sadiq Khan. the Mayor of London. launching the world'5 first Dementia Friendly Venues Charter at the Museum of London. The charter was developed by the GLA in partnershlp with the Museum and the Alzheirner's Society. Our visitors living with dementia have also been able to take part in our Memories of London programme wlth activities such as our inter- generational 'Memories & Music. sessions bringing all ages of families together. The creation of a new Engagement Team from early 2021 was a major step in embeddlng our Engagement Framework. created in partnership with the Research Centre for Museum5 and Galleries at Leicester University. The team have overseen a wlde-ranging programme involving Londoners and we are proud to have produced our first Engagement Charter. which sets out our commltment to working with community groups and organisations. The Charter was developed after consulting I S partners and 400 Londoners and will guide all our work in thls area. An extensive process of consultation and crltlcal engagement centred on the London Sugar & Slavery ILSS) gallery and the legacy of slavery. Thi5 has included our University of Repair programme exploring issues of reparation and repair in addition to consultation with schools and families on programming and the gallery content. This year saw the culmination of Listening to London, our comrnunity-led research project funded by the E5mée Fairbairn Collections Fund that brought together volunteering. public programmlng and work on our collections information into a single project centred on our oral history collettion. Most recently volunteer researchers. all with personal connectlons to the docks, worked alongside curators In selectlng oral hlstories for inclusion in the London= Port City exhibition. Museum of London Annual Report and Flnanclal Staternent5 Year Ended 31 March 2022 Connecting young Londoners to their city and each other through our creative offer for schools and families Over 50,000 schoolchlldren took part in our creative and cross-curricular schools programme and over 16,000 people took part in our family aaivities as we welcomed back these important audiences post-pandemic. We have contlnued to adapt and develop our programmes responding to the needs of these audiences. Particular successes have included our increasingly popular livestreaming programmes for schools, reaching over 15.000 puplls, the launch of dedlcated Quiet Days for SEND schools (for children with special educational needs and disabilltie5) and our bespoke Tail Trail of hidden fluffy rats in period costumes enjoyed by over 9,000 families throughout the holiday periods. Our ever-popular Lunar New Year family festival drew over 3,000 people to the Museum of London Docklands and engaged over 2,000 people through online content, a highlight being a film following families in Taiwan and London as they prepared for Lunar New Year. The festival was developed by our Learning and Engagement teams in close collaboration wlth community partners. We continued to lead Culture Mile Learning. worki ng with the City of London Corporation and bringing together 26 diverse organisations to develop prograrnmes for Schools and young people to support their skills development through cultural experiences. Outputs this year included the projett #mood. This onllne artwork was created by artist Siuart Batchelor and over 1.000 pupils from the City of London Family of Schools and was made to capture students, feelings during the pandemic. The Culture Mile Learning team also led a project working with a team of partner organisations, to deliver creative activities for newly arrived Afghan refugee families living in two City hotels, including 80 under 5s and l 00 primary school aged children, creating a space for creative play at the hote15 and supporting visits to partner cultural venues. Buildlng the London Collection and telling London's stories This year 255 new acquisitions. representing a total of 924 indivldual objectlves, were added to the London Collection including.. Museum of London Annual Report and Financial Statement5 Year Ended 31 March 2022 A homemade 'Dua'along wlth a recordedinterwew The 2020 lockdown coincided with Ramadan. and the Museum worked with Muslim families to document this experience. The homemade Dua jar contains handwritten prayer5 and supplications, and is accompanied by an inierview with Amanah and Wasim in conversation with their mother Rima Begum. Part of the Collecting cO￿d project initiated in 2020 DVhTpa A group of hospiralscrubs made by volunteers In the early part of the pandemic. hospitals quickly ran out of clean scrubs. This was addressed by a small army of volunteers across the country. These seven garments were sewn by the South London Scrubbers. and were collected along with their paper patterns and 10 films recording their experiences. Part ol the Collecting Covid project initiated in 2020 Ensemble from 'The Wlndrush Collecrlon. and a sult made for Lazare Sylvestre A clorhes ensemble from the young London fashion designer Tihara Smirh's Windrush Collettion. which used the image5 and memories of the Winilru5h Generation of Caribbean immigranis as Insplratlon for a fashlon collection exploring Black British identity. The acquisition had an unexpected consequence. as through Tihara. the curators got to know her grandfather, Lazare Sylvestre. As a young man, he Immigrated to London from Saint Lucia. A boxer in the 1960s, and snappy dresser, he became friendly with the Caribbean tailor Winston Giscombe. Giscornbe began to make all of Lazare's suits. The museum was able to acquire a suit selected by Lazare. reflecting both the fa5hion-consciousness and the tailoring skills of Windrush-generation migrants in London. io Museum of London Annual Report and Financlal Staternents Year Ended 31 March 2022 A Squander Bug, model, dating to the Second World War The character of 'Squander Bug. was developed during the Second World War to promote the virtues of thriftine55 in the War effort. He was strictly a two dlmenslonal. graphlc character. but thls model was made by a London baker out of bags of flour and used in a window display. As a child. Brian Oliver wa5 captivated by the character, and when the display was taken down, Brian's mother obtained Squander Bug for Brian as a toy. We utlllse the London Collection and our content in many different ways. During the year we answered over 2, 53 5 public enquiries about our collections. Through our higher education programrnes we also reached 774 unlverslty students. Our major contemporary collecring project this year. London Eats. has centred on Londoners, relationship with food and drink. A wide public consultation helped to Inform the storles and objects that we have captured from food diaries of primary school children through to a digital art commission based on 05teological data showing the pattern over time of dental decay linked to consumption of sugar. A new research partnership with the University of York began centred on work on excavated fish bones from the medieval period. Analysis of fish bones has proved an effective way in reconstructing the economy, diet and ecology of the medieval period and may shed light on changes to the diet of Londoners and across ihe UK more widely. Progressing our plan5 to create a new museum for London It has been excltlng to see ihe siart of our first major construction contract - Structural Works - focusing on the General Market basement areas. These cavernous spaces are being transformed through excavation and underpinning along with cleaning of brickwork as just some of the acrivities underway to prepare them for use as home to our permanent galleries. The first phase of our Early Works project was also completed focusing on the exterior of the building. restoring facades. roofs and the installation of 200 new windows in keeping with the historic building. Environrnental sustainability is of critical importance to our vision for the project. As we progressed the de51gn process (RIBA Stage 4 Technical Design completed) and moved into the construction phase we have remained on track to rneet (and hopefully exceed) our target of 'Excellent' BREEAM accreditation. We have begun to implement circular Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2022 economy principles onsite, relocating salvage material for future reintegration and reuse of materials such as timber into the repairs and restoration works. Technical Design for Past Time, our permanent displays, is well underway. A major milestone this year was the completion of showcase layouts testing the presentation of over 4,000 objects delivered from our specially-created Linbury Transit Store which Se￿e5 as the 'hub' for all our collertions preparations. Our content teams have moved into the text wriiing phase to produce the 70.000 words that wlll tell the story of London and Its people. Concept Design work for contemporary displays. Our Time. has commenced. The collaborative process will bring together our exhibition designers, Asif Khan Limited. and Creative Partners Duckie. Diverse City, gal-dem, Isllngton Play Association and Nutkhut - to bring new perspectives to the development of this essential space at the heart of the new museum. Development of Our Time and Past Time 15 being informed by an extensive programme of participation and engagement with Londoners. The Campaign total stands at £35.9m, Includlng a £5m landmark donation from a foundation. and we have achieved 90% of the £40m target for the first stage of project focused on the General Market. 2021122 KEY PERFORMANCE INDICATOR5 Area of attivity 2020121 Actual 2021122 Tar et 379.539 172.746 7,186 27.000 2021122 Attual 206.270 103891 9,660 17,319 Visits made to Museum of London Visits made to Museum of London Docklands Visits to the Haverin Hoardexhibitionlll Vi5it5 to the London.- Port Cit exhibitionPI Schoolchildren visiting the museum or taking art in our schools ro ramme People taking part in family events and activities 51445131 Visits to the museum website 2.2m Media articles enerated 4.000 Tradin income enerated £0.3m £0.9m £l.Im 111 Havenng Hoard exhibition ran I I September2020 ro 22 August 2031 ￿"th a iargei of 16.000 (revlsed due ro closures during the pandemicj. IZI London." Port Cily exhibition open until 8 May 2022. (ai Famlllesartivltyin 3020/21 was comprisedofdigAtallivestream5 andevents ratherthan onsite programming. 21,848 8.179 9,267 49.250 50.476 13,750 2.lm 16,302 2.9m Museum of London Annual Report and Flnancial Statements Year Ended 31 March 2022 FUTURE PLANS 2022123 is set to be one of the m05t significant years in the life of the Museum of London as we close the galleries to visitors at our London Wall site. in order to focus on our preparations for relocation to West Smithfield. Stepping clear of the challenges of Covid-19 remains our focus returning to 7 day-a- week operations and delivering a full public programme of exhibitions and events. Our fO￿ard programme includes Harry Kane.. I want to play faotball, Grime." from the corner to the mainstream and a major 'last chance to see, programme that will build momentum through to December 2022. The Museum of London Docklands will move centro stage as our primary public site. under the new leadership of a Managing Director. A new strategy will include a step change in our public programme starting with Executions. a ticketed and income- generating major exhibition. We wlll move into a period of delivery at scale for the New Museum at West Smithfield. Concluding procurement to progre55 Wlth the main construction phase. appointing a Construction Management Company, securing plannlng permission and completlng extensive enabling works in the General Market are the priorities. Gallery content development work and collections preparation remains the focus of our curatorial and collections teams. A wide-ranging programme of organisational transformatlon continues to create the organisation required to inhabit West Smithfield including the critical areas of equality, diversity and inclusion (EDII, digital development5, our response to the climate crisis and a fresh look at our wider social and economic model. We will collaborate with our strategic partners at the City of London Corporation. Greater London Authority and Arts Council England on shared agendas for culture. education, the climate crlsis, long-term recovery from the impacts of Covid-19 and a new museum for London. Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2022 STRucfuRE. GOVERNANCE AND MANAGEMENT Incorporation and status The Museum of London was established by the Museum of London Act 1965 and was opened in 1976. It is governed bythe Museum of London Act 1965 (as subsequently amended) and the Greater London Authority (GLA) Act 2007. Slnce December 2010 it has been a registered charity. number 1139250. As at 31 March 2022 the museum had 4 sub5idiaries= Museum of London (Trading) Limited. and the London Museum. Joicey and Mackenzle Bell Trust Funds and therefore presents consolidated financial statements. The reference and administrative detalls on pages 65 to 67 form part of this report. Governor recruitment, appointment and induction Governor5 (who are also the Trustees under charity lawl are appointed in equal number by Ehe GLA and the City of London Corporatlon In accordance with the requirements of the Museum of London Act 1965 (as subsequently amended) and guidance issued by the Commissioner for Public Appointment5. The Governors seNe for up to four years and are eligible for re-appointment by thelr sponsoring body. The Chair is recruited in line with best practlce Charlty Commission guidelines and is appointed by the Board. When Board vacancies arise, the Chair of the Board is responsible for advising the GL4 and the City of London Corporation of the needs of the museum with a view to ensuring a proper balance of expertise. including professional and flnanclal expertlse. and that the balance of GLA and City of London Corporation appointments is maintained. Governor induction is managed by the office of the Director of the Museum of London. The standard induction procedures are that Governors receive a copy of the Museum's Code of Practice for Governors which describes the committee and management strutture and the duties and responsibilities of Governors. To underline the importance of Governors. responsibilities the procedures require Governors to sign to confirm that the Code of Practice has been received and is understood. Induction procedure5 require that Governors also receive the Museum of London Act5 together with the museum's Financial Governance Manual. Strategic and Business Plans, Annual Report and Financial Statements. the Museums Association'5 Code of Ethics and Charity Commission guidance documents on trusteeship, good governance. conflicts of Interest, and the "hallmarks of an effective chariv. The Nolan principles form the foundation of the Governors, induction. The Dirertor of the Museum also meets with new Governors to explain current iS5ue5 and future plans, introduce them to members of the Executive Team and to offera tour of the museum. Further ongoing rraining Is arranged for Governors individually or the Board as a whole as needed. Museum of London Annual Report and Financlal Statements Year Ended 31 March 2022 Organlsational structure Museum of London is responsible for the management of Museum of London at London Wall. and Museum of London Docklands at West India Quay. The Board of Governors sets broad Strategic direction, long-term objective5 and priorities for the museum. The Board, which meets four times a year, Is also responsible for ensuring that the museurn'5 management team fulfi15 its responsibilities for the effective, efficient and economica5 management of the organlsatlon. There are four Board committees on which Governors serve. all of which have met durlng the year: Audit and Risk Management Committee Finance and General Purposes Committee Trusts and Acquisition5 Management Committee Remuneration Committee In addition. there are three boards on which Governors serve and meet as required= New Museum Project Board Museum of London Academic Panel Museum of London Trading Board Key management personnel All Governors give of their time freely and no Governor received remuneration in the year. Details of Governor5, expenses and related party transactions are disc105ed in Note l O to the account5. The pay of the key management personnel is revlewed and benchmarked annually by the Remuneration Committee. Key management personnel are set objectives based on the museum's strategic plan. Annual performance is assessed against these objettives and is reviewed by the Remuneration Committee and used to set pay levels and any performance related bonuses. The Chairperson of the Board of Governors undertakes the performance assessment for the Director. The Governors are key management personnel as defined by FRS 102. The Governor5 also consider the Executive Team members to be the key management personnel of the charlty In charge of directing and controlling. runnlng and operatlng the museum on a day to day basis. The management team is led by the Director of the Museum, who is appointed by the Board. The primary functions of the museum relate to care and management of collection5, lifelong learning, exhibitions and other public programmes. All are designed to inform and engage visitor interest in the history, heritage and cultures of London. To achieve its aims the museum Is structured into busines5 areas, each overseen and supported by a member of the Executive Team. The ExecutSve Team, Including the Director of the Museum, meets monthly. Following a restructure during the financial year 2021122 the Executive Team now comprises the following mernbers.. Dlrector of Content: Responsibility for curatorial activity (acro55 the Archaeology Collections and Hlstory Collections teams>. learning. inforrnation resources. conservation and collecrions care. exhibitions and design. the Museum Development regional programme and our relationship with Arts Council England. Museum of London Annual Report and Financial Statements Year Ended 31 March 2022 Director of New Museurn Project and E5tate- Responsibility for planning and delivery of the New Museum project. The project is overseen by a separate governance structure which includes the museum's Executive Tearn. Responsibiliry for facilities and estates. Managlng Dlrettorof Museum of London Docklands- Appointed in April 2022 with responsibility for retail. licensing. hospitality. commercial events, front of house, security and visitor services across museum sites - and is the lead for the strategic development of the Docklands site. Chief Communlcatlons and Dlgital Officer: Responslblllty for press and marketing campaigns. communications for the museum's public programme includlng exhibltlons. events and projects. audience development and public affairs. Responsibility for digital innovation across the museum. Chief Financlal Offlcer: Responsibility for museum-wlde corporate services. including finance. IT. procurement, insurance and legal. Chief Offlcer, People and Culture: Responsibility for human resources including learning and development, equality. diversity and inclusion (EDII and organlsatlonal development. Head of Corporate and Business Plannlng: Responsibility for strategic and corporate planning. reporting and performance. In addition. the Dirtrtor of the Museum currently oversees the Development team, with responsibility for capital and revenue fundraising, major campaigns and donor and supponer ne￿OrkS. including the Society of Londoners. Relationships with related parties Governance is primarily exercised through the Board of Governors appointed by the museum's two principal funders. Meetings are also held with officers of the Clty of London Corporation and the GLA to consult on the business plan and review progress. The Ciry of London Corporation is the museum's landlord at its premises at London Wall and Eagle Wharf Road, and supplies various services to the museum. In addition, two of its officers are appainted as the Secretary and Treasurer to the museum, as required by the Museurn of London Act 1965. Note 21 to these financial statements includes details of the museum's tran5action5 With the GL4 and the Clty of London Corporatlon and other related party transactions. Fundraising Practices The Museum of London's Development function is Strategic and is represented at the most senlor management level at the Executive Team- it has a close working relationship with the Board of Governors and the Chairperson. The team conduct a range of fundraising activities which sUPPOrt the organisational plans and needs. No professional agents are used for fundraising, and staff fundraisers are tralned to art In accordance with agreed standards and guidelines. The Board of Governors receive regular reports on all fundraising activity as part of their staiutory responsibilities. No fundraising complaints were received by the museum In the flnancial year 2021122. Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2022 The museum pays the levy for, and is registered with the Fundraising Regulator. and our fundraising standards and guidelines are aligned with the Regulator's Code of Fundraising Practice. This includes treating people fairly and with respect, explaining our cause in a way which doe5 not rnislead people. and being sensitive to people who may be in vulnerable circumstances. Human Resources As at 31 March 2022. we employed approximately 266 staff across our three sites. We commenced the year with the museum remaining closed due to Covid-19, with staff either on furlough or working from home where thelr roles enabled this. Once the museum was able to open staff gradually started to return to site. commencing with our front of house teams in May 2021. We kept in place health and safety measure5 through the year to support both staff and visitors. only removing many of these towards the end of the year when the government introduced their 'Living with Covid, plans In February 2022. Throughout the year we continued work on transforming ourselves to become more people-centred (in the sense of vlsitors and the other people we serve), open, diverse, creative. impactful and sustainable. Part of this saw the introduction of a Blended Working Policy. which contained within it a framework. setting out the mu5eurn's new approach to worklng. Subject to role. we moved to staff being able to split their working time between working onsite in the rnuseum and working remotely from home or elsewhere, as appropriato. The framework has at its heart flexibility. built on trust. with an overarching focus on our behaviour of putring on a great show, ensuring staff retain a close connection to our audiences. the museum experience and our colleagues remain at the core of how we work. Despite Covid-19 and all the changes going on the museum over the last year, we stlll managed to make progre55 against areas of our People Strategy, continuing to work against five strategic objectives linked to our overall organisational objectives. Here are some of our achievements over the last year.. Transforrnlng ourselves: We recognise the need to transform ourselves - our workforce make- UP, skills, structures. and ways of working. Equity, diversity and inclusion continued as a key focus with us building on our strategic objective to be a more equal, dlverse and inclusive museum. As part of rhis we commenced a collaboratlve research project wlth the Research Centre for Museums and Galleries at Leicester University looking at embedded whiteness. We also finalised phase one of our organisational restructure and started planning for the closure of London Wall as a visitor attraction. with the associated further phase of restrucrurlng required. This restructuring has enabled us to not only change the make up of our workforce at all levels, including our senior leadership team. It has also continued to POSltively impact our gender pay gap.. https.'IIv4ww.museumoflondon.org.uklabout-uslcorporate-informationlgender-pay- gap-data. Resourclng and retentlon: We recognise that our exceptional staff and volunteers are key in bringing experience and expertise to the task of implementing our strateglc plan. Thls year we worked hard to find ways to keep our volunteers engaged and looked at ways to reintroduce them back once Covid-19 restriaions eased. We introduced lived experience volunteering to our Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2022 London Port City exhibition. which was a new initiatSve whlch worked brllllantly. Thoughout the year we have continued to bring new talent into the museum whilst at the same time diversifying our workforce across the board. Development and talent management: We want to value our people by ensurlng they experlence excellent line management and have access to a variety of high quality and cost-effective learning opportunities. Following the organisational learning needs analysis we carried out at the end of last year, we moved forward with the introduction of key interventions related to SUPPOrting our staff in key areas of activity related to people management. equality diversity and Inclusion (EDI). as well as personal development. We introduced the following new courses: Managing Remote Teams. Building Resilience, Work Smarter and Maximise your Day. Race Matters= people and stories. objects and places. and our anti-racism tralnlng course No more black and white. We also introduced our Diversity Hub, a focused space for Diverslty and Inclusion Resources. It is an opportunity to encourage staff to build their knowledge and understanding of EDI topics and issues. as well as identifying and addressing any personal knowledge gaps Wellbelng and employee relatlons: We recognise thaiwe will perfortn betterwhen our people are healthy. motivated and focused. We've taken the opportunity to build on the work carrled out last year, a major step being to take part in the MIND Workplace Wellbeing Index. Alongside thls we renewed our membership of the Calm for Business app. In relation to our work around mental health, we have also set up Mental Health Champions. and took part in the My whole Self and rime to Talk campaigns. All of this work is looking to enable our staff to feel supported at work, allowing them to be themselves and to reduce the stigma of mental health within the workplace. HR systems and processes: We continued work on ensuring we have systems and processes in place that are fit for a 2151 century museum to provide a secure and efficient infrastructure in which to support our people. We procured our new HR Information system. giving this a name MyPlace. Launching Self-se￿[Ce as part of this brought about significant changes, transforming paper based processes on line. We are currently on phase 2 of this project implementing further changes to our processes to move them online. Enabling people to access these from wherever they, whenever they need to. Policy development work also continued throughout the year. with new and updated policies being introduced e.g. Blended Working Policy, Sickness Absence Policy. Flexible Working Policy. IR35 Guidance. Museum of London Annual Report and Financial Statements Year Ended 31 March 2022 FINANCIAL REVIEW The results for the year are ser out on the Statement of Financial Activities (SOFA) on page 32. Due to the signlficant impact on the results of non cash items of penslon accountlng and depreclation, it is important to review the Consolidated Cash Flow Statement on page 35 alongside the SOFA and the Balance Sheet on page 34. The table below strips out these transactions to provide an alternative view of the financial results of the Group. showing that in the year Income was £1 0.4m hlgher than expenditure. MUSEUM OF LONDON GROUP Expre55ed lrt £'OOO Unrestrlcted Restrlcted Funds Funds Total 2022 Total 2021 Variance to prior ear Per Group SOFA Total Income and Endowments Less.. Total Expendlture before galn5 1 1105sesl on Investments 16,101 33,252 49.353 36.250 13,103 22,226 24,625 46,851 39,441 17,4101 16.1251 8,627 2,502 {3,1911 5.693 Add back: Pension se￿Ice cost and interest Depreciation and disposals AdJusted operating Results 111 4,750 4,7SO 2.807 1,943 1170} 7,466 10.379 2,913 111 Excluding Cains l Oossesl on investments, Transftrs between funds and Actuarlal galn I110ss1 on defined benefit pension schemes. Total Group Incoming Re50urce5 were £49m during the year 12021-. £36m). The increase frorn the prior year is mainly due to an increase in New Museum project grant fundlng and donations as the projett scales up. It also includes an increase of £ l .1 m in activities for generating funds, but this was largely offset by a decrease of £l.Om in voluntary income. The museum's main sources of funding were the Greater London Authorlty and rhe city of London Corporation, which together contributed 86% of the group's donations, grants and legacies revenue fLsnding 12021 .' 83%). Other granrs and donations included £ l.4m from Arts Council England 12021 = £1.4m). Group expenditure on raising funds and charitable actlvitie5 was £2.8rn higher than the prior year across various areas and includes £4.8m on pension service costs (2021: £2.8ml and £3.] m on depreciation 12021 '. £3.3ml. The pension service cost is essentially the estimated cost to the employer of the benefits accruing over the accounting period, based on actuarial assumptions. Trading activities. comprislng venue hire and catering, events and two retail outlets. was significantly higher than ihe prior year as the museum re-opened and events started to recover as Covid-19 restrictions were relaxed. Revenue was £1 .6m (2021 .. £0. 5m). All commercial trading is carried out through the museum's tradlng subsidlary, The Museum of London (frading) Limited. The Museum of London recorded an operating surplus (excluding depreciation and pension costs, and before tran5fer51 on its unrestricted free reserves (general fund) of £1 .3m (Note 18A "General Reserves - Museum of London'l 12021.. £1 .8m). Museum of London Annual Report and Financlal Statements Year Ended 31 March 2022 The Governors reviewed the museum's financial plans in March 2022 as part of their normal annual review and budget setting process, as well a5 our principal financial risks. At that time. the Governors were satisfied that the museum had sufficient resources to continue operating for the foreseeable future and accounts have been prepared in the knowledge that the museum is a financially viable organisation. Since then. a Four Year plan was prepared and approved in May 2022 in support of our ACE application and the financial plan was reviewed after quarter I was completed with a formal reforecast approved by the Executive Team in August. The Governors wlll continue to review plans with the museum's Executlve Team at least quarterly. Financlal reserves After transfers from restricted and designated funds and other gains and losses. the Museum of London's total general reserves were £8.5m ai 31 March 202212021 .' £8.2m). The group's restricted funds were £18.9m at 31 March 202 2 (2021 = £10.2m) and the group's designated funds, excluding the Defined Benefit Pension Reserve, were £21.5m at 31 March 2022 (2021: £23.Im). The designated funds are largely comprised of the Flxed Assets Fund. which is being used to fund future depreciation of those assets acquired from unrestricted funds. The group's cash balances and cash flow forecast remain adequate for its needs. However. the Governors are aware that the current economic climate and future uncertainty in relation to all income streams require this assessment to remain under review. Total group funds, carried forward at 31 March 2022 were negative £3.5m (2021 '. negative £19.9m). The result5 have been impacted significantly by the accounting valuation of the Pension Fund that has seen a reduction in the Pension DePicit of £8.9m 12021.. increase of £22.1 m). Thi5 is further explained below and in Note 22. An alternative balance sheet view is included below that removes the Pension Fund deficit as this is not indicative of any pension liability that is expected to crystallise in the short term as it represents the accounting valuation of the scheme under FRS 102 rather than the level of future contributions to be paid. The Governors are satisfied that the pension deficit is an accountlng deficlt and does not represent the actual fund value. and that the fund deficit is scheduled to be extingulshed wlthin 14 years. Expressed In £'OOO MUSEUM OF LONDON GROUP MUSEUM OF LONDON 2022 2021 2022 2021 Total Funds per the Balance Sheet Les5.' Penslon Deflclt (3,454) 54.375 (19.9041 63.289 17,925) 54,375 46.450 {24.019) 63.289 Totsl Funds excluding the pension deficlt 50,921 43.385 39.270 The Museum of London's pension scheme is part of the City of London Corporatlon's scheme and the Museum of London's deficit is largely proportional with its share of total assets in the fund (approximately 7%). The museum's pension contribution rates are reviewed every three years. after an actuarial valuation in which the surpluses and deficit5 may be measured differently to the FRS 102 valuation, in accordance with the museum's accounting policy as described in Note l U). The triennial fundlng valuatlon is used to set the required level of contributions to be paid and reflects a longer term view of the level of employer contributions required to ensure the assets are sufficient 20 Museum of London Annual Report and Flnancial Statements Year Ended 31 March 2022 to meet the liabilities. At October 2019. the total fund had contributions set at a level to meet the deficit in 14 years. The funding valuation in 2022 has set the contributions rates from April 2023. The Museum accounts for the pension fund under the Flnanclal Reportlng Standard 102 (FRSI 02) accounting standard. whlch requires Ilabllltles to be valued uslng a dlscount rate assumption Set with reference to yields on "high quality" corporate bonds. As a result. accounting deficits are usually larger than funding defiCIts and are more volatile as they have to Use a prescri bed discount rate, which does not reflect future expected returns from the attual investment strategy. As the actual contribution rates required by employers for each Fund are calculated using assumptlons set by the Fund Actuary, the contribution rates paid by employers are not affected by the accounting results. Accountlng Y￿￿all0￿$ per knuarlal FRSI 02 Report5 for the Museum of London Expressed In £'QOO 31 March 2022 31 March 2021 Assets 92.161 86.577 {146 536) 1149,8661 154.375) Vartance 5.584 Net Pension Deficit As can be seen in the table above. the redurtion in the accounting deficir comprised a decrease in the value of the liabilities and an Increase in the value of assets. As explained previously the Accounting Valuation does not reflect the real liabiliry. Our liability is the employer contributions we pay and budger for each year. These contributions are certified at triennial funding valuations and were set at the last triennial valuatlon las at 31 March 2019) at 16.1 % of salaries and will remain at 16.1 % until 31 March 2023. New rates based on the triennial funding valuation as at 31 March 2022 wlll commence on l April 2023 and are provisionally certified to continue at 16.1 %. The Actuary's funding model aims to keep employer contrlbutions as stable as possible by looking at a more sensible long term cost assessment rarher than ihe artificial and very short term assessment required under the accounting standard. A report wa5 commissioned from the Actuary In June 2021 to compare an estlmated funding valuation with the accounting valuation at 31 March 2021 . This compared the accounting valuation of a pension deficir of £63.3m lat 31 March 2021 > with an estimated funding valuation of a deficit of £3.I m (at 31 March 2021). The deficit reduction plan remaSns in place and aim5 to ellmlnate the funding deficit over the next 14 years (i.e. 20 years set In 2013, less 6 years of contributlons made as at 20191. Investment policy and performance The capital funds of the Trust Funds are invested In Blackrock Charltles UK Equlty Fund. Targets are not set bur rhe Trustees of the funds periodically review the performance of the investments to ensure the returns are Satisfactory. During the year to 31 March 2022 there was an increase in carrying values. Total income received over the year was In Ilne wlth recelpts In prevlous years. Available cash balances held by the Museum of London and Its subsidiary undertaking5 are placed within the City of London Corporation's account and with Lloyd5 Bank. 21 Museum of London Annual Report and Financial Statements Year Ended 31 March 2022 Golng concern Governors believe that the museum has put in place a robust structure that. in conjunction with the prudent reserve5 policy, will allow It to manage the foreseeable risks to the organisation. The accounts are therefore 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. The principal uncertainties currently facing the organisation are the prolonged uncertainty of visitor numbers post Covid-19 pandemic, security of future funding and, particularly in recent months. inflationary pressures on operational costs. The Governors and Executive Tearn continue to closely monitor the impatts. and believe that the organisation 15 in a financial position to help manage these risks. The New Museum project is a significant investment of £337m, and a key milestone is the London Wall museum closing in December 2022 to allow for the transition of artefacts. The project is funded by drawdowns in advance from the City of London Corporation. The cash outflows over the coming two years from April 2022 are expected to be clrca £130m (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 economic environment facing potential donors. uncertainty exists over these amounts. We are a150 reliant on the project being closely managed durlng 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 acr as lead charlty wlthin the terms of a Design Services Agreementwith the Cityof London Corporation. income Is recelved from the City of London Corporation in the month that the consultants are paid. A5 lead charity we have procured and contracted with suppliers to provide design and other Services relating to the New Museum project which are then recharged to the City of London Corporation as set out In note 5 to the financial statements. The key factors in our going concern assessment are: The museum has confirmed funding from our statutory grant funders untll March 2024. although the position after that is less clear. The funders have a statutory obligation to fund the Museum beyond March 2023 and grants have not been reduied in the past. even during the height of the pandemic. The Tllu5eum is forecasting 2023124 funding of at least equivalent to 2022123 grants, however the quantum of the grants Post 31 March 2023 is yet to be fully conflrmed. The Docklands museum will be open to the public 7 days per week, from l Oam to 5pm. ACE funding of £l.I m per annum for National Portfolio Organisation funding has been confirmed for the three year5 from 2023 to 2026. ACE Sector Support Organisation funding has been extended for another year to 2022123. The Museum ha5 invested in it5 management capability and has a Board of Governors that brings expert expertise. The museum has robust financlal modelling procedures that allow it to deal with changing assumption5. 22 Museum of London Annual Report and Financial Statements Year Ended 31 March 2022 The museum's strategic plan contains a key objective to move to the West Smithfield site where the opportunities for grt)wth in visitors and self-generated income will be greater after opening a larger site acros5 two market buildings. The City of London Corporation and GLA have confirmed thelr commltment 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 2022 to 3 1 March 2024 is circa £130m (dependent on the programmel and will be funded by drawdowns from the City of London Corporation. The going concern assessment period largely covers RIBA Stage 5 of the projett and break clauses are in place for the construction contracrs. None of the philanthropit funders have wlthdrawn pledges and National Lottery Heritage Fund has confirmed approval at Stage 2 of £ 5m. We have not drawn down or will not draw down fu nding that is philanthropically raised until the latter stages of the projert, thus we will never be in the position of having to pay back donors. money should the project fail. Iv. On the basis of the above and the assumption that grant in aid from our Statutory funders (the City of London Corporation and the GLA) will be at least in line with 202212 3. Governors believe that the museum'5 robust Structure, in conjunction with the prudent reserves policy explained below. wlll allow it to manage the foreseeable risks to the organisation. There is a risk that the Museum could require further funding due to an unplanned decline in visitor numbers to Museum of London Docklands and uncertalnty over grant in aid. However. the Board has revlewed the Museum's cash flow forecasts and believes it has sufficient cash flovts for the next twelve months. As such, the Governor5 continue to adopr the going concern basis of accounting in preparing the annual financial statements. Further detail is included in Note l a to the accounts. Reserves pollcy The Reserves Pollcy underpins the Museum's Strategic Plan and establishes the financial paramerers within which the long-term delivery of our mission and objectives can be achieved. The Board has adopted a Reserves Policy which is based on the evaluation of major rlsks facing rhe museum and which is reviewed by the Board annually. The objective is to provide a level of unrestrirted reserve5 that will minimise the impact to museum services, should any of the risks materialise, but that does not fully cover all of the main risks as the Board belleves that this would provide an unreasonable level of excess reserves. The Board has identified the following as its main risks. The museum.. Fails to generate satisfactory revenue5 from its activities ro cover increases in operational costs. Fails to secure sufficient grant income as a resulr of continued cuts in government spending. Suffers a sudden failure of building structure or major plant requiring immediate attention in order to continue operations. Requires further restrutturing of operations should grant in aid be substantially reduced. Suffers loss of assets as a result of fraud, theft or ¢Jbercrime. 23 Museum of London Annual Report and Flnanclal Stacements Year Ended 31 March 2022 Fails to respond appropriately to an act of terrorism or major emergency at alllany of the Group site5, causing a fall in income andlor loss of reputation. Accordingly* the Board hold5 re5erve5 to mitigate the effect of the above risks in the following way.. Approximately £7m to cover normal operating expenditure for between 4 and 6 months Ithis excludes discretionary spend such as projects), Approximately £1 rn to cover emergency building repairs. restructuring costs and short term cash flow fluctuations which may arlse durlng the year. As at 31 March 2022 the balance on rhe Museum of London's general funds (as shown in Note 18- Total General Funds) stood at £8.5m (excluding designated fixed a55et and pension reserves) (2021 '. £8.2m). While the net asset position (excluding the accounting valuation of the Pension Deficit) 15 strong, this is predominantly in fixed assets. restricted funds. restricted endowment funds or designated funds. Therefore. the Reserves Pollcy and the level of general funds held is viral to protect the museum from the risks and issues noted above and enables the museum to continue to deliver our mission and objectives. The current risks concerning increased uncertainty over visitor income and grant funding, are examples of why we hold such levels of general reserves and these will be used accordingly to ensure that the museum remains a going concern. The Museum has a designated Fixed Asset Reserve equating to the net book amount of tangible fixed assets that have not been funded by loans. to reflect the fact that some unrestrlcted funds are utllised to finance fixed assets and are thus unavailable for working capital. 24 Museurn of London Annual Report and Financial Statements Year Ended 31 March 2022 Risk management and internal control Purpose of the system of internal control The system of internal control is designed to manage risk to a reasonable level rather than elirninate the risk of failure to achieve policies. aims and objettives. The system can therefore only provlde reasonable and not absolute assurance of effectlveness. The system of internal control 15 based on an ongoing proce55 designed to Identlfy and prioriti5e the principal risk5 to the achievement of museum's policies, aims and objectives, to evaluate the Ilkelihood of those rlsks belng reallsed and the impact should they be realised and to rnanage them efficiently, effectively and economically. The system of Internal control has been in place in the Museum of London and its subsidiary undertaklngs during the year ended 31 March 2022 and up to the date of approval of the annua5 report and financial statements. Capacity to handle risk The Museum of London has a struttured rlsk management process as detalled in the Rlsk Management Policy and Srrategy. The Dlrector has the ultimate responsibility for promoting and embedding this policy and strategy. Each Executive Team member has responslbllity for the Identlflcatlon and assessment of risks within their area and for ensuring that these are managed appropriately. The Chief Financial Officer provides advice and support to the museum on the risk management strategy, policy, framework and processes. The museum uses the internal audit unit of the City of London Corporation, which operates in accordance with local government internal audit standards a5 laid down in the CIPFA code of practice. The work of the internal audit unit is informed by an analysls of the risk to which the museum is exposed. and annual internal audit plans are based on thls analysis. The analysis of risk and the internal audit plans are endorsed by the museum's Audit and Risk Management Committee. At least annually. the Head of Internal Audit provides the Audit and Risk Management Committee with a report on internal audit aaivity in the museum. The repon includes the Head of Internal Audit's independent opinion on the adequary and effettiveness of the museum's systems of risk matiagement, internal control and corporate governance. Risk and Control Framework The museum's Risk Management Policy and Strategy explains the organisation's approach to risk management., provide5 risk definit10115-, raises awareness of the principles and benefits involved in the risk management process; identifies the main reporting procedures and promotes good risk management. Embedding of risk management 15 generally sound bLft continues to progress. Further work is alway5 required, when personnel and priorities change. to ensure that this continues to be part of all the operations of the organisation. The Risk Management Poliry andstrategy sets out the risk assessment process whereby risks are Identified and included within the risk register according to the category of risk and the likelihood and impact of the risk event occurring. 25 Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2022 These identified risks are controlled through the system of internal control which is based on a framework of regular management inforrnation, administrative procedures including the segregation of dufies, and a system of delegation and accountability- In particular. it includes: an organisational structure with clear accountability and levels of authority. from the Governor5 overall responsibility down to the Individual staff member- comprehensive budgeting 5yStern5 Wlth an annual budget and five year rolling financial plan that are reviewed and agreed by the Board of Governor5- regular reviews by the Board of Governors of periodic and annual financial reports which indicate financial and operational performance against plans and forecasts: setting targets to measure financial and other performance. clearly defined review procedure5 for proposed capital investments- as appropriate. formal project management dlsclpllnes., codes of conduct for Governors and staff.. and annual signoffs by senior management that they have complied with their responsibilities. The risk reporting prograrnme agreed with the Audit and Rlsk Management Committee is as follows= Strategic and major operational risks are reported to and reviewed by the Board of Governors at least once per year and quarterly by the Audit and Risk Management Committee and Directorate. Departmental operational risks are regularly reviewed by the Dlrectorate (at least twice per year) and heads of departTnent. project managers and other senior managers as appropriate. COVID-19 Pandemic Since 19 May 2021 both Museums were open to the public on a reduced 5 days per week basis, extending to 7 days per week during school holidays. The Museums were impacted by the Omicron variant over Christmas with a sharp drop in visitors and delays and cancellations of hospitality events. The Museum is still experiencing lower visitor numbers than pre-pandemlc but we have seen a steady growth. and it is likely to be several years before inbound tourism returns to pre-pandemic levels. Pre Covid-19 pandemic circa 25% of the museum's income is normally self-generated through donations. membership. exhibition ticket sales, retall, caterlng and venue hire. The combination of lower visitor numbers and the longer term implicatlons of the pandemic on both our grant funders and the wider econorny continues to be closely monitored by Governors and Execuf ive Team to mitigate the impacts where possible. Review of effectiveness The effectiveness of the system of internal conirol is reviewed by the Audit and Risk Management Committee who meet at least twice a year and report their findings to the full Board. Their work is informed by the work of the internal auditors. the executive managers within the museum who have responsibility for the development and maintenance of the control framework, and comments made by the external auditors in their management letter and other reports. 26 Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2022 STATEMENT OF GOVERNORS, RESPONSIBILITIES The Governors are responsible for preparing the Governors. Annual Report and the financial Statemen15 in accordance with applicable law and regulations. Charity law requires the Governor5 to prepare Pinancial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and appllcable lawl. Under charity law the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affalrs of the group and charity and of the incoming resources and application of resources, including the Income and expenditure, of the group and charity for that period. In preparing these financial statements, the Governors are required to.. select suitable accounting policies and then apply them consistently., make judgements and accounting estimates that are reasonable and prudent.. state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial 5tatement5'. and prepare the flnancial statements on the going concern basis unless it is inappropriate to presume that the group will continue In buslness. The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charity'5 transactions and disclose with reasonable accuracy at any time the financial posltion of the charlty and enable them to ensure that the financial statements comply with the Charitie5 Att 2011 . They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Governor5 are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from leglslation In other jurisdictions. Disclosure of Information to Auditor The Governors confirm that as far as they are aware there is no relevant audit information that has not been brought to the attention of rhe group's auditor. and that they have taken all steps that they ought to have taken to make themselves aware of any relevant audlt information and to e5tabllsh that the auditor is aware of that informatlon. Adoption of report and financial statements Adopted and signed for and on b If of the Board of Governors. Clive Bannlster Chair of the Board of Governors of the Museum of London Date: 30 January 2023 Ali50n Gowman Governor of the Museum of London 27 Museum of London Annual Report and Flnancial Statements Year Ended 31 March 2022 INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS OF MUSEUM OF LONDON OPINION In our opinion. the financial statements- give a true and fair view of the state of the Group's and of the Parent Charlty's affalrs as at 31 March 2022 and of the Group'5 incoming resource5 and application of resources for the year then ended-, have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice-. and have been prepared in accordance with the requirements of the Charities Act 2011 . We have audited the financial statements of Museum of London fthe Parent Charityl and its subsidiaries I'the Group") for the year ended 31 March 2022 which comprise the consolldated statement of flnanclal activities, the Museum of London statement of financial activitie5, the group and museum balance sheets. the consolidated cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reportlng framework that has been applied in their preparation is applicable law and United Kingdom Accountlng Standards. Includlng Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). BASIS FOR OPINION We condutted our audit in accordance with International Standards on Auditing (UK) IISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the flnancial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. INDEPENDENCE We remain independent of the Group and the Parent Charity in accordance with the ethical requirements 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. CONCLUSIONS RELATED TO GOING CONCERN In auditing the financial staEements, we have concluded that the Governors, use of the going concern basis of accounting in the preparation of the financlal statements Is approprlate. 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 and the Parent Charity'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 Govemors with respect to going concern are described in the relevant sections of this report. 28 Museum of London Annual Report and Financlal Statements Year Ended 31 March 2022 OTHER INFORMATION The Governors are responsible for the other information. The other information comprises the information included in the Governors, Report, orher than the financial Statements and our auditor's report thereon. Our opinion on the financial statement5 does not cover the other information and. except to the exrent Otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially incon5iStent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materlally mlsstated. If we identlfy such material inconslstencies or apparent material misstatement5. we are required to determine whether rhere is a material misstatement in the financial statement5 them5elve5. If, based on the work we have performed. we conclude that there is a material misstatement of this other informatlon. we are requlred to report that fact. We have nothing to report in this regard. MAThERS ON WHICH WE ARE REQUIRED TO REIJORT BY EXcE￿￿ON We have nothing to report in respett of the following matters in relation to which the Charities (Accounts and Reports) Regulation5 2008 requires u5 to report to you if, in our oplnlon: the informatlon given In the Governors. Report for the financial year for which the financial siaiements are prepared is inconsistent in any material respect with the financial statements., or adequate accounting records have not been kept by the Parent Charity., or the Parent Charity financial statements are not in agreement with the accounting records and reiurns., or we have not received all the information and explanations we require for our audit. RESPONSIBIUTIES OF GOVERNORS As explained more fully in the Statement of Governors, Responsibilities. the Governors are responsible for the preparation of the financial statements and for being satlsfied that they give a true and fair vlew, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from materlal misstatemenr. whether due to fraud or error. In preparing the financial statements, the Governors are responsible for assessing the Group's and the Parent Charity'5 ability to continue as a going concern. disclosing, as applicable. matters related ro going concern and using the going concern basis of accounting unless the Governors elther Intend to liquidate the Group or the parent Charity or to cease operations. or have no realistic alternative but to do so. AUDITOR'S RESPONSIBILrriES FOR THE AUDIT OF THE FINANCIAL sTATEmEP￿s We have been appointed as auditor under section 151 of the Charities Att 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectlves are to obtaln 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'5 report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee 29 Mu5eurn of London Annual Report and Financial Statements Year Ended 31 March 2022 that an audit conducted in accordance with ISAS {UK) wlll always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. E￿ENT TO WHICH THE AUDIT WAS CAPABLE OF D￿Ec￿NG IRREGULARITIES, INCLUDING FRAUD Irregularities. including fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilitie5. Outlined above. to detect material mlsstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detettlng Irregularities. including fraud is detailed below= enquiry with Those Charged with Governance and management regardlng known or suspected instances of non-compliance with laws and regulation and fraud, Includlng actual or potential litigation and claims- reviewing minutes of meetings of Those Charged with Governance. Internal audit reports and correspondence with regulators- assessing the design and operating effectivene55 of controls and procedures relevant to the preparation of the financial statements and the detettion and prevention of irregularities and fraud, including changes to supplier bank details,- reviewing financial statement disclosures and testing to 5UPPOrting documentatlon to assess complSance with applicable laws and regulations- challenging the assumptions and judgements rnade by management for key estimates. in particular the assumptions used to value the defined benefit pension scheme. Identifying and testing the appropriateness of journal entries and other adjustments, wlth parricular focus on unusual account combinations and postings by unexpected users or senior management., and incorporating unpredictability into our testing approach through amending the nature and extent of audit procedure5. Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recogni5ing that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detectlng one resultlng from error. as fraud may involve deliberate concealment by. for example. forgery, misrepresentations or through collusion. There are inherent limitatior15 in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transaction5 reflected in the financial statements. the less likely we are to become aware of it. A further description of our re5pon5ibilitie5 for the audit of the financial statements is located at the Financial Reporting Council's ('FRC's"I website at: htt www.frc.or auditorsre This descriprion forms part of our auditor's report. USE OF OUR REPORT Thi5 report is made solely to the Charity's Governors. as a body, in accordance wlth the Charlties Act 2011. Our audit work has been undertaken so that we might state to the Charlty's Governors those matters we are required to state to them in an auditor's report and far no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than 30 Museum of London Annual Reporr and ￿nanCIal Statements Year Ended 31 March 2022 the Charity and the Charlty's Governors as a body. for our audit work. for this report, or for the opinions we have formed. DocuSlgn•dby'. 73D8B18FE9AC4C9 BDO LLP, Statutory Auditor London, UK 31 January 2023 BDO LLP is eligible for appointment a5 auditor of the charity by vlrtue of its eliglbility for appointment as auditor of a company under 5ettion 1212 of the Companies Act 2006. BDO LLP is a limited liability partnership registered in England and Wale5 (with registered number OC305127). 31 Museum of London Annual Report and Flnancial StaternentS Year Ended 31 March 2022 MUSEUM OF LONDON GROUP CONSOLIDATED STATEMENT OF FINANCIAL AcfiviTIES Expressed In £'OOO Notes 2022 2021 Unrestrfcted Funds Restricted Endowmeni Fund5 Fund Total Funds Total Fund5 INCOME AND ENtX)WMEKW5 Donatlons. grants and legacie5 Other trading actMtie5 New Musevm project Invesrrnent Income 14,666 1,315 1.369 308 16.035 1,623 31.468 119 17.001 506 31.468 18,391 130 28 Incorne from charitable activities 92 108 222 Total Income and End¢yNrnents 16,101 33.252 49,353 36,250 EXPENDrtURE ON Raislng funds Charftable actlvltles 2,779 19,447 2.779 21.282 22,790 2.366 18.937 18,138 1.835 22.790 New Museum project Total Expenditure before galns on Investments 22,226 24.625 46,851 39.441 G&ns on investments 137 147 726 Net lourgolngl I Incomin9 resour(es before transfers 16.125) 8.764 147 2.786 12,465} Transfers between funds 18(A) 90 1901 Net lexpenditurel I Incorne before other reco9nised gatns and105ses 16.035) 8.674 147 2.786 12.4651 Oiher recognlsed garn5 and losses Actuarial galn l 00551 on defined beneftt pension schemes Net movement In funds 22 13.664 13.664 7.629 8,674 147 16.450 121.776) Reconclliatton of fund5 In 2022 Funds brought forward at l April Net movement In fund5 132.0051 7,629 124,3761 10,192 8,674 18,866 1,909 147 119.9041 16.450 13.454) 1.872 121.7761 119.904) Funds carrled forward 18IA) 2,056 Reconclllatton of funds In prlor year F￿ndS broughr fotward Ntt movÈment in fund5 19.367) 122.6381 132.0051 9.706 1,533 376 1.872 (21.7761 119,9041 Funds carrled fornward 181 10.192 T,909 There are no other gains or losses other than those recognised above and therefore no separate Statement of total gain5 and losse5 has been prepared. All activities derive from continuing operations. The notes on pages 36 to 64 form part of these financial statements. 32 Museum of London Annual Report and Financial Statements Year Ended 31 March 2022 MUSEUM OF LONDON STATEMENT OF FINANCIAL AcfiviTIES Expressed In £'OOO Notes 2022 Unrestrlcted Restyltted Funds Fund5 2021 Total Funds Totsl Funds INCOME AND ENDOWMETrrrs Donations, grants and legacies Other trading activities New Museum project Investmenr Income Income from charltable activities Total Income and Endowments 15.260 631 1,369 16.629 631 31,443 17,174 202 18.366 31.443 92 15.983 108 222 32.828 48.811 35,976 EXPENDITIJRE ON Raisbng funds Charitable activities New Museum prDjett Total Expenditure 2.315 19,479 2,315 21.276 22.790 2,120 18,932 1,797 22,790 24.587 21.794 39.190 Net {outgoingl l incomlng resources before transfers (5,8111 8,241 2,430 13,2141 Transfers betsveen funds 18 (Al 65 {65 Net (expenditure) l income before other recognlsed gains and losses <5.7461 8.176 2.430 13.2141 Other recogrtised gains and losses Actuarial gain I Ilossl on deflned benefli pension schemes Net movement In funds 22 13,664 13.664 119,3111 7,918 8,176 16.094 122,5251 Reconclllatlon of fund5 In 2022 Funds brought forward at l April Net movement in fund5 Funds carrled forward (32.0241 7.918 (24,106) 8,005 8,176 124,0191 11,4941 17.9251 {24.0191 Reconclllatlon of ftjnds in prior year Funds brought foTh¥ard Net movemenr in fund5 Funds carrled foNiard 19,4391 122.5851 132.024) 7.945 60 (1.4941 8,005 124.0191 There are no other gains or losses other than rhose recognised above and therefore no separate statement of total gains and losses has been prepared. All activilies derive from continuing operation5. The notes on pages 36 to 64 form part of these financial statements. 33 Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2022 MUSEUM OF LONDON GROUP AND MUSEUM BALANCE SHEErs Expr*ssed In £'OOO Fixed assers HÈritage assets Intangible a55e15 Other tangible assets Notes Group 2022 4,886 508 25,000 3Q.394 3,974 Museum 2021 5,027 380 27,372 3Z.779 3.690 2022 4.886 508 25.000 30.394 2021 12A&13 12C 5.027 380 27.372 32.779 12 Inve5tment5 Total flxed assets Current assets Stock Debtots Cash at bank and In hand Total (urrent as5et5 Current Ilabllltles Creditors amounts falling due wlthln (the year Net current assets Total assets less ¢urrenr Ilabllltle5 CredI￿r5 - amounts falllng due after i)ne year City of London Corporaiion Net assets excluding pension liability Defined benefit penslon liability Net asser5 Includln9 pensicffl liabllity 30.394 32.779 133 7,086 22,537 29.7S6 179 3.167 16.775 20.121 9.047 19,874 28.921 5,025 14,317 19.342 6.6581 12,684 45.463 22.253 56.621 13.109 49.578 21.756 52.150 21 B 15,700) 50,921 IS4.37S 13.4S4) 16,193} 43.385 163,289} 119.904) 15,7001 46,450 154,3751 17.9251 16.1931 39,270 163.2891 124.0191 22 The fund5 of the charlty Restricted Endowment funds Restricted income funds Designaied funds Defined benefit pension reserve Generat reserves Total fund5 and reseNes 18&19 2.056 18.866 21.466 154.3751 8,533 13,4S4} 1,909 10,193 23,071 163,2891 8.212 119.9041 16,181 21.454 {54.375) 8.815 (7,9251 8.005 23.059 163,289 8.206 24.019 The notes on pages 36 to 64 form part of these flnanclal statements. The financial statements were approved by the Board of Governors on 14 December 2022. Signed on its behalf by: Clive Bann15ter Chair of the Board of Governors of the Museurn of London Alison G¢>wman Governor of the Museum of London 34 Museum of London Annual Report and Financial Statements Year Ended 31 March 2022 CONSOLIDATED CASH FLOW STATEMENT Notes 2022 2021 ressed In £'OOO Cash flows froTn aperatlng artlvttles.. Net cash flow provided by operating artivltles Cash flows from Investlng actlvltles.. Interest and dlvidends received Payment5 to acquire tangible fixed asseis Net cash flow Iu5ed inl investing acrlvitles Cash flows from financlng actlvltle5: Interest paid Flnanclng - Repayments of long-term borro￿ng Net cash flow (used inl financing activities 130 843) 1713) 990 1871) 1951 5051 (6001 1484 (5961 Increase In cash and cash equlvalents In the year 5.762 1,170 A) Analysis of changes in net debt (Group) Balance l A r2021 Balance 31 Mar 2022 Expressed In £'OOO Ca5hflows Cash and cash equtvalents Cash at bank Cash on deposit 16,775 5.762 22,537 16,775 5.762 22,537 Borrowings Debt due within one year Debt due after one year {504) 6.193) 16.697) (4921 493 505 16,192y Total 6,267 16.345 B) Reconclliatlon of net expendSture to net cash inflow from operating actlvltles EXPRESSED IN £'OOO Net expenditurel Igainsl before other recognised galns and losses Interest and divi(lends r￿e1Vable Interest payablÈ Icalnsl on invesrments Pension costs - see Nore 22 Fixed assets disposed I written off Depreciation Net Operating Income 2022 2021 2,786 12,4651 1119) 95 12841 4,750 11301 112 17261 2,807 3,374 10.603 3,543 3,151 Decrease In stock Ilncreasel in debtor5 and long term contrac15 Increase in creditors (excluding loansloverdraftsl Net cash flow pro¥lded by operating acrlvltles 46 (3.9191 503 43 11.035) 320 7.233 2.479 35 Museum of London Annual Report and F5nanclal Statements Year Ended 31 March 2022 NOTES TO THE FINANCIAL STATEMENTS I ) ACCOUNTING POUCIES BA515 OF PREPA114TION OF THE FINANCJAL STATEMENTS The financial statements have been prepared, on a going concern basis a5 detailed on pages 22 to 23 and below, under the historical cost accountlng convention, with the exception of investments which have been included at market value. and comply with the Charities Act 2011, the Statement of Recommended Prartice Accounting and Reporting by Charities SORP IFRS 102. the Financial Reporting Standard applicable in the United Kingdom and the Republic of Irelandl and applicable accounting standards in the United Kingdom. The Museum of London is a public benefit entity under FRS 102. Golng Concern The accounts are prepared on the going concern basis as financial projections show the museum is able to meet it5 liabilities a5 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 revlewed the forward financial projections to 31 March 2024. Governors believe that the museum has put in place a robust structure that. in conjunttion wlth the prudent reserves policyi will allow it to manage the foreseeable risks to the organisation. The accounts are therefore 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. The principal uncertainties currently facing the organisation are the prolonged uncertainty of vlsltor numbers post Covid-I g pandemic, securfty of future funding and. particularly in recent months. inflationary pressures on operational costs. The Governors and Executive Team continue to closely monitor the impacts. and believe that the organisation is in a financial position to help manage these risk5. The New Museurn project is a significant investment of £337m. and a key rnilestone is the London Wall museum closing in December 2022 to allow for the transition of artefacts. The project is funded by drawdowns in advance from the City of London Corporation. The cash outflows over the coming two years from April 2022 are expected to be circa £130m (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. Glven the current economic environment facing potential donors. uncertainty exists 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 act as lead charity withln the terms of a Design Services Agreement with the City of London Corporation. income is received from the City of London Corporation in the month thai the consulianrs are paid. As lead charity we have procured and contracted with suppliers to provide design and other services relating to the New Museurn project which are then recharged to the City of London Corporation as set out in note 5 to the financial statements. The key factors in our going concern assessment are= The museum ha5 confirrned funding from our statutory grant funder5 until March 2024, although the position after that is le55 clear. The funders have a statutory obligation to fund the Museum beyond March 2023 and grants have not been reduced in the past, even during the helght of the pandemic. The museum is forecasting 2023124 funding of at least equivalent to 2022123 grants, however the quantum of the grants post 31 March 2023 is yet to be fully confirrned. 36 Museum of London Annual Report and Financial Statements Year Ended 31 March 2022 The Docklands museum will be open to the public 7 days per week, from l Oam to 5prn. ACE funding of £l.I m per annum for National Portfolio Organi5ation funding has been confirmed for the three years from 2023 to 2026. ACE Sector Support Organisation funding has bene extended for another year to 2022123. The museum has invested in its management capability and ha5 a Board of Governors that brings expert expertise. The museum has robust financial modelllng procedures that allow it to deal with changing assumptions. The museum's strategic plan contain5 a key objective to move to the West Smithfield site where the opportunities for growth in visitors and self-generated income will be greater after openlng a larger s5te across two market buildings. The City of London Corporation and CL4 have confirmed their commitment to the New Museum project through budgets approved by the Court of Common Council and Pollcy 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 2022 to 31 March 2024 is circa £130m Idependent on the programme> and will be funded by drawdown5 from the City of London Corporation. The going concern as5essrnent period largely covers RIBA Stage 5 of the project and break clause5 are in place for the construction contracts. None of the philanthropic funders have withdrawn pledges and National Lottery Heritage Fund has confirmed approval at Srage 2 of £ 5m. We have not drawn down or will not draw down funding that 15 philanthropically raised until the latter stages of the project, thus we will never be in the positlon of having to pay back donors. money Should the projecr fail. On the basis 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 202212 3. Governors believe that the museum'5 robust structure, in conjuncrion with the prudent reserves policy explained below, will allow it to manage the foreseeable risks to the organisation. There is a risk that the Museum could require further fundlng due to an unplanned decline in visitor numbers to Museum of London Docklands and uncertainty over grant in aid. However, the Board has reviewed the Museum's cash flow forecasts and believes It has sufficient cash flows for the next twelve months. As such. the Governors continue to adopt the going concern basis of accounting in preparing the annual financial statements. Basis of consolidatlon Consolidated financial statements have been prepared for the museum, which consolidate the financial statements of the Museum of London, Museum of London rfrading) Limited. the London Museum Fund, the Joicey Fund and the Mackenzie Bell Fund on a line by line basis. The consolidated financial staternents present the results of the Museum of London and its subsidiarie5 1.the Group-> as if they formed a single entity. Intercompany transattions and balances between group companies are therefore eliminated in full. Uniform accounting policies have been applied across the group and have been applied consistently year on year. The functional currency is GBP Sterling. In preparlng the separate financial statements of the parent charlty. advantage has been taken of the following disclosure exemptions avallable to quallfying entities: No cash flow statement or net debt reconciliation has been presented for the parent charity. 37 Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2022 INCOME Income is recognised when the museum has entitlement to the funds, any performance conditions attached to the income have been met, 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 its receipt have been met. Retail incorne is recognised when the sale takes place. Event and commercial hire income 15 recognised when the event takes place. Donation5 are accounted for when the museum has entitlement to the funds. it is probable that the income wlll be recelved and the amount can be measured reliably. Gift Aid receivable is included in income when there is a valid declaration from the donor. Fundlng for the New Museum Project Funds relating to the New Museum projert are accounted for when the Museum has entltlement to funds upon submission of a drawdown request to the City of London Corporation. Funds relating to the recharge of expenses las descrlbed In note 5 to the flnancial statement5) are accounted for when the Museum has entitlement to funds upon submission of recharge Invoices to the City of London Corporation. C) EXPENDITURE Expenditure is classified under the principal caregories of the cost of raising funds (costs of activities that are not in themselves charitable but which are incurred to generate income to support charitable activities), charitable activitie5 (costs incurred in furtherance of the charity's objective5. including governance costs). and other costs. Within the costs of raising funds are the costs of generating voluntary income and fundraising trading- osts of goods sold and other costs. The costs of generating voluntary incorne are the cost5 of fundraising and the costs of administering the museum's Friend5, scheme. Fundraising trading costs relare to the museum shops. event hlre and catering. Expenditure incurred on charitable activities is subdivided into communications. programmes and learning (adult. family and schools education programme5). galleries and exhibitions. collections (conservation and curation) and governance (costs in connection wilh the constitutional and statutory requlrements of the museum). Categories of expenditure include direct and indirect costs. Where costs cannot be dlrectly attributed. they have been allocated to artivities on a basis consistent with their use of the resources. Pension financing costs, arising from changes in the net of the interest costs and the expected return on assets, have been apportioned acr055 the expenditure categories on the basis of the number of pensionable employees. Financing costs relating to interest payable on loan5 are included in the building maintenance category for purposes of apportionment as the loans are for building improvements. As detalled in Note 9. support costs comprise finance. administration. hurnan resources, information technology, Directorate and some premises costs. Support costs are apportioned across the resources expended categories on a ba515 consistent with their use of the resources. principally by reference to staff head count. Resources expended are accounted for on an accruals basis. D) IRRECOVERABLE VAT Irrecoverable VAT is charged as an expense apportioned across expenditure categories pro-rata. 38 Museum of London Annual Report and Flnancial Statements Year Ended 31 March 2022 FUND ACCOUNTING The museum's financial statements comprise a number of Indlvidual funds that divide into distinct categories. These are defined below. General funds are unrestrirted funds and cornprise revenue balances that have arisen and are available for use at the discretion of the Board of Governors in furtherance of the general objectives of the museum. The London Museum Trust (income elemenv is also a general fund, whlch, although the responsibility of a separate Trust. Is available for the general objecEives of the museum. Designated fund5 are also unrestrirted and comprlse funds that have been set aside at the discretion of the Board of Governors for speclfic purpose5. Fund5 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 f unds are available. Restricted funds are subject to specific restrictions Imposed by the donor and Include grants and donations for Museum of London major projects, Mackenzie Bell Trust and the Joicey Trust (income element). Restrltted Endowment funds - Jolcey Trust and London Museum Trust are trust funds in whlch the donor has provided that the capital cannot be converted to income (London Museum Trust - except by the approval of the Board of Governor5). FIXED ASSET5 Heritage Assets The Museum of London is one of the world's largest urban history museums and cares for over two million objects in its collecilon. The Governors consider that the vast majority of items in the collection would be difficult. if not impossible. to value. The collection includes social history and archaeological items With no obvious market value as well as many unlque items with no comparable sale records to use as the basis 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 statements. As a result, no value is reported for these assets in the museum's balance sheet. The exception is for heritage assets purchased since l April 2001 , whlch are capitallsed 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 amount of depreciation is regarded as immaterial due to their anticipated high residual value. The Museum of London Docklands building Is largely depreciated over 20 years. Tangible Assets Tangible fixed assets are stated at historical cost less accumulated depreciation 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. All tangible assets with a cost greater than £ 3,000 are capitalised and depreclated on a straight-line basis to write off the cost over their expected useful lives. Assets under constructlon are depreciated from the year of completion. Frorn l April 2001 historic artefacts and inalienable asset5 purchased, with a value of over £3.000 have been capitalised. No depreciation is charged on these item5. Leasehold property including bulldings, Over 5-99 years., the shorter of the expected irnprovements. renovations and extensions useful life and the length of the lease. 39 Museum of London Annual Report and Financial Statements Year Ended 31 March 2022 Historic artefacts and museum exhibits No depreciation is charged on acquired historic artefacts. Museum exhibits are depreciated over the expected life of the exhibit, typically 10 years. No depreciation is charged until completion. Assets under construction Other a55ets including furniture. equipment. Over 4 year5 (25%) or the asset's expected vehicles and plant useful life if shorter. Impairment reviews of tangible fixed asset5 are carried out in accordance with operational needs. Intangible Assets Intangible fixed assets are stated at cost. All intangible assets with a cost greater than £3.000 are capitalised and depreciated on a straight-line ba5iS to write off the cosi over thelr expected useful live5, typlcally l O years. G) INvESTME￿s Investments in listed company shares. which have been classifled 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 subsidiarie5 are recognised at cost in the financial statements of Museum of London. The unrealised profit or loss on investments is 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 reallsable value using the welghted average cost method. I) RECOGNITION OF LIABIUTIES Liabilitles are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events. J) PENSION COSTS The Museum's employees are eligible to contribute to the Museum of London Staff Pension Fund (the Fund). which is part of a multi-employer defined benefii 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 expenditure account based on the recommendations of the Fund's artuary. They are applied be￿een the Fund's triennial valuations so as to include the expected Cost of providing pensions 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 beneflt scheme Is charged to employee costs over the anticipated period of employment. Net pension Pinance income or costs are included immediately in employee costs and allocated via support Costs. Actuarial gains and losses are recognised immediately on the face of the Con501idated Statement of Financial Activities. A provision for the scheme deficit is shown on the face of the balance sheet. The amoLtnts charged to the Consolidated Statement of Financial Activities for defined contribution schemes represent the contributions payable in the period. The actuary estimates the employer's share of the assets of the Fund at approximately 6.62%. 40 Museum of London Annual Report and Financlal Statements Year Ended 31 March 2022 K) HOUDAY PAY In accordance with the requirements of the Charlty SORP IFRS 1021 holiday entitlement accrued bui untaken as at the balance Sheet date 15 accrued in full. L) DONATED GOODS, FACIUTIES AND SERVICES Donated goods, facilitles and services are recognised as income when the charity has control over the item, any conditions assoclated wlth the donated item have been met. the receipt of economic beneflt 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 recognised. Refer to the Governors, Annual Report for more information about their coniribution. On receipt, donated goods. 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 economic benefit on the open market,. a corresponding amount Is recagnised in expenditure in the period of receipt. Donated fixed assets for on-going use by the museum are recognised as tangible fixed assets when their fair value exceeds the museum's threshold for capitalisation set by the museum'5 accounting policy. The corresponding gain 15 recognised a5 income. In common with any other tangible assets. donated goods held as tangible fixed asset5 are depreciated over their useful economlc 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 maturity of three months or less from the date of acquisition or openlng of the deposit or slmilar account. N) CRITIGAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTf In the application of the Group's accountlng pollcles, described above, the Governors are required to make judgements, estimates and assumptions about the carrying amou nts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions 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 assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised In the year in which the estimate is revised if the revision affects only that year, or in the year of the revision and future periods if the revision affects both current and future period5. Crltlcal Judgements In preparing these financial statements, the key Judgements have been made in respect of the following.. Depreciation is based on the management's judgement of the useful economic life of each asset or asset group. which determines the rate at whlch the asset or asset group Is wrltten down. Key sources of estimation 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 fattors that are determined on an actuarial basis using a variety of assumptions. Any changes in these assumptions. which are disclosed in Note 22. will 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 used by the actuary in valulng the pensions liability at 31 March 2022. Any differences bet￿een the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability. 41 Museum of London Annual Report and Flnancial Statements Year Ended 31 March 2022 O) FINANCIAL INSTRUMENTS Museum of London has adopted Section I I FRS 102 in respect of financial instrurnents. O) Baslc financial assets, including trade and other receivables and cash and bank balances are initially measured at transaction prlce (including transaction costs) and subsequently held at amortised cost. less any impairment. 01) Baslc flnanclal Ilabllities. including trade and other payables, are initially recognised at transaction price (after deducting transaction costs) and subsequently held at amort15ed cost. Museum of London has no financlal Instruments that fall within the scope of 5ecrion 12 of FRS 102. 42 Museum of London Annual Report and Financlal Statement5 Year Ended 31 March 2022 2) 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 therefore treated as subsidiary charities in accordance with Charities SORP IFRS 1021. The Museum of London holds the entlre share capital (£2) of the Museum of London (frading) Lirnited. The results of the subsidiary entities for the year ended 31 March 2022 were a5 follows= Expressed in £'OOO Jolcey Trust Mackenzie Bell Tn45t London Museum Trust Museum of London rradin9) Total Total 2022 202 1 Incoming resources Resources expended Net incoming resource5 Unrealised galn on investmenrs Net movement In funds 33 58 28 ,562 562 1.681 573 1 6101 (551} 71 22 284 726 127) 49 137 16 68 79 85 186 84 355 748 Museum of London ffradlng) resources expended includes gift aid due to the parent of £5 55k1202 1 '. £86kl. The assets, liabilities and funds of the subsidiary undertaklngs as at 31 March 2022 were as follows.. Expressed in £'OOO Jolcey Trust Mackenzle Bell Trust London Museum Trust Museum of London (Tradin Total 2022 Total 2021 Net Assets Investwnents Current assets Current Ilabllities 1,108 1,912 282 954 3,974 3.149 12.657) 3,691 2.913 12,4931 97 2.657 12.6571 Total net assets 1,221 2.194 1,051 4.466 4.111 Funds employed Permanent Endowment Expendable Endowment Restricted funds Unrestricted funds 1,108 1.108 948 2.307 103 1,029 880 2.115 87 948 113 2.194 103 Total funds 1,221 2.194 1.051 4.466 4,111 43 Museum of London Annual Report and Financial Staternents Year Ended 31 March 2022 3) DONATIONS. GRANTS AND LEGACIES Expressed In £'OOO Unrestricted Funds Re5tr1cted Funds Total 2022 Total 2021 G￿ater London Authority Revenue grants Grearer London Authority Capital grants City of London Corporation Revenue gran15 Arts Council England and related programme5 Coronavtrus Job Retention Scheme grants Other grants Other donations Total 7.600 7.610 500 5,666 ,387 7,639 535 5.859 1.401 901 391 275 17.001 500 374 5.292 1.387 56 232 14.666 414 69 470 301 16,035 1,369 Expressed In £'OOO MUSEUM OF LONDON GROUP Unrestrlcted Restritted Totsl Funds Funds 2021 7.604 Total 2020 GreaiÈr London Authority Revenue grants Greater London Authority Capital grant5 Clty of London Corporation Revenue grants Arts Council England and related programmes Coronavtrus Job Retention Scheme grants Other grants Other donation5 Total 35 532 567 7.639 535 5.859 1.401 901 391 275 17.001 7,674 301 6.052 ,373 5,292 1.401 894 391 544 156 15.350 435 16,379 Included in Donations, Grants and Legacies Group income in the prior year 2021 is £1.651 k of restricted fund5. Gifts in kind and pro bono Se￿i(e$ received in the year were valued and recorded by the museum in accordance with the Accounting Policy Note l (L). Other donations include £1 k for gifts and services in kind received during the year (2021 '. £nil). Expressed In £'OOO MUSEUIA OF LONDON Restrftted Total Funds 2022 Unrestricted Funds 7.600 Total 2021 Greater London Authority Revenue grant5 Greater London Authority Capital grants City of London CorpDraiion Revenue grants Arts Council England and related programme5 Coronavirus Job Retentlon Scheme grants Other grants Other donations Total 7.610 500 5.666 1.385 7.639 535 5,859 1,399 901 481 360 17.174 500 374 5.292 1.385 99 97 787 15,260 414 69 856 1.369 16.629 44 Museum of London Annual Report and Financial Statements Year Ended 31 March 2022 Expressed In £'OOO MUSEUM OF LONDON Kestrfcted Total Funds 2021 Unrestrfcted Funds Total 2020 Greater London Authority Revenue grants Greater London Authority Capital grants City of London Corporation Revenue grants Arts Council England and related pmgrammes Coronavlrus Job Retention kheme grants Other grant5 Other donatlons Total 7.604 35 532 567 7.639 535 5.859 1.399 901 481 360 17.174 7,674 301 6,052 1,358 5.292 1.399 894 90 241 391 119 544 982 15.523 1,651 16,911 41 OTHER TRADING AcnviTIES Expressed In £'OthJ MUSEUM OF LONDON GROUP 2022 2021 Shop5 Private events and functlons Photographic library and Ilcenslng Other 383 685 35 520 1.623 126 64 41 275 506 Total Other Trading Activitie5 income is split between Museum of London ffradingl Limited £1,535k 12021 .. £428kl and Museum of London £87k (2021 .' £78k>, of which £nil is restricted (2021.. £nill. Other Trading Activlties In the Museum of London also includes £544k of recharges from the Museum of London rrrading) Limited (2021 '. £124kl. which are eliminated on consolidation. 45 Museum of London Annual Report and Flnancial Statements Year Ended 31 March 2022 5) NEW MUSEUM PROJE Expressed In £'OOO MUSEUM OF LONDON AND MUSEUM OF LONDON GROUP 2022 2021 INCOME City of London CDrporatlon grants Coronavirus Job Retention Scheme grant5 Other income Total 23.183 20 8.265 31.468 11.689 55 6.647 18.391 Restrlcted funds of £31,468k (2021.. £18.39] k) were received during the year to fund specific attivities for the New Museum project including RIBA Stages 4 and 5 project costs. Of this £23.2rn was grants received from the City of London Corporation and £5.9m 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 charlty the Museum has procured and contracted with suppliers to provide design and other services relating to the New Museum project which are then recharged to the City of London Corporation. 6) INVESTMENT INCOME Expressed In £'OOO MUSEUM OF LONDON GROUP 2022 2021 InierÈst on cash balances Dividends received Total 177 112 119 130 Investmenr Income relates to the subsidiaries £119k. Included in Investment Income is £91 k (2021 '. £89kl of restricted funds. £459k (2021.- £390k) 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 ihat averaged 0.50% in 2022 12021- 0.75%>. INCOME FROM CHARITABLE Acf]VlTEES Expressed In £'OOO MUSEUM OF LONDON AND MUSEUM OF LONDON GROUP 2022 2021 Exhibitions and events Othei Total 103 222 108 222 Included in Income from Charitable Activities is £16k12021 .' £36k) of restricted funds. 46 Museum of London Annual Report and Financial Statements Year Ended 31 March 2022 8) EXPENDITURE Dirett Staff Costs Other Dlrect Costs Support Costs Tot 2022 Total 2021 MUSEUM OF LONDON GROUP Expressed In £'OOO Expendlture on Ralslng fund5 Cost of generating voluntary income Fundraising trading 35 fj52 30 859 256 937 321 2.458 2.779 342 697 889 1.193 2.366 Expendiiure on CharStable actlvltles Communication5 Programmes and learnlng Galleries and exhibitions Collections Governance 495 2,207 1,639 2,564 535 .218 1,597 4.145 80 468 1,498 5,426 5,110 9,094 154 986 4.657 4,793 8,362 139 2.001 1,874 2.385 43 6.936 7,575 6.771 21.282 18,937 New Museum project Total Expenditure 22,790 31.254 22.790 46.851 18.138 7.633 7.964 Dlrott Staff Costs Other Dlrect Cos MUSEUM OF LONDON GROUP Expressed In £'OOO Support Cost5 Total 2021 Total 2020 Expenditure on PAtslng fund5 C05t of generating voluntary income Fundraising trading 75 732 22 527 245 765 342 2.024 2.366 497 807 549 1,010 3,618 Expendlture on CharStable actlvltles Communications Programme5 and learning Galleries and exhlbltions Collection5 Governance 475 205 306 1,468 1.652 1,682 986 4,657 4.793 8.362 139 1,592 6,276 7,588 6,347 122 2,095 .853 2,531 1.094 1.288 4.149 77 6,985 6.813 5,139 18.937 21,925 New Museum proJect Totai Expendlture 18.138 39.441 15,760 41,303 7.792 25.500 6.149 Governance costs comprise audit fees, an apportionment of direttors, remuneration and other costs and an apportionment of support costs. Expenditure 15 split Museum of London £46.381 k12021 '. £39,190k) and subsidlarles £470k (2021 . £251k). Expenditure includes £24,62 5k12021 '. £19,81 Okl of restrirted funds. 47 Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2022 9) ALLOCATION OF SUPPORT COSTS MUSEUM OF LONtK)N GROUP Expre55ed In £'OOO C05t of Charitable GDvernamce Raising A(tlYltles Costs Fund5 Total 2022 Total 2021 FSnance and admlnlstration 219 .234 533 948 1.462 630 1.505 678 Management Costs Human resource5 and IT 94 168 ,122 4.750 7.964 1.159 2,807 6,149 Pension liability- finance cost5. etc. Group total support Costs 712 4.013 25 1,193 6.728 43 Support costs are defined and allocated as dlsclosed In Note l. Accounting Policies. 48 Museum of London Annual Report and Flnancial Statements Year Ended 31 March 2022 I O) EMPLOYEES STAFF COSTS MUSEUM OF LONDON GROUP Expre55ed In £'OOO 2022 2021 Salarle5 and wages Social security cost5 Pension costs 9,112 896 1.352 625 9,467 933 1.400 494 Employment ageniies Tl.985 The Governors neither received nor walved any emoluments during the year (2021= £nil>. Reimbursement of travel and meeting expenses to Governors of the Museum of London were in iotal £452, paid to one Governor12021 .. £258, paid to one Governor). Staff costs in 2021122 include £39k redundancy costs (2021: £122k). Redundancy and termination payments are recognised when there is a demonstrable commitment on an individual or group ba51S that cannot be realistically withdrawn. The number of employees with remuneration above £60,000 was within the ranges listed below.. MUSEUM OF LONDON GROUP 2022 2021 £60,000 to £70.000 £70.00i ro £80,000 £80,001 to £90.000 £90,001 to £1 00,000 £IOO,001 to £1 10,000 £120,001 to £130.000 £140,001 to £150,000 £170.001 to £180,000 Under the museum's defined benefit pension scheme. retirement benefits are accruing to 17 staff disclosed above. The compensation {including employer's national insurance contributions) of the key management personnel was £950k (2021 .. £838kl. The roles included in the key management personnel are listed In the Governors. Report on pages 15 and 16. The remuneration of the Director. who was also the highest paid employee, was a5 follows- 2022 2021 Salary 176,557 149,205 Contribution to pension scheme 28,426 24,021 49 Mu5eurn of London Annual Report and Flnanclal Statements Year Ended 31 March 2022 BENEFITS IN KIND No employee received any benefit In kind during the year. AVEIi4GE NUMBER OF EMPLOYEES The average number of employees, analysed by the categories of resources expended, and after the apportionment of 46.7 12021: 47.2) support staff. was-. MUSEUM OF LONDON GROUP 2022 2021 C05t of Ra151ng Fund5 Costs of generatlng voluntary Income Fundraising trading 28 31 36 43 CharJtable Actlvltles Communication5 Programmes and learnlng Gallerie5 and exhibitlons Collections 61 61 59 71 74 72 208 217 Tot 244 260 The average headcount during the year excluding casual or agency staff was 307 (2021 .' 296). The decrease in staff numbers is due in part to the decision to freeze recruFtment where p055ible 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 I I full time sraff 12021= 12). I I ) NET OUTGOING RESOURCES Net outgolng resources Is stated after charging: Expressed In £'OOO MUSEUM OF LONDON GROUP 2022 2021 Depreciatio Audlwrfs remuneratlon: Audit fees - statutory audit Taxation compliance fee5 3.374 3.543 69 50 Museum of London Annual Report and Financial Statements Year Ended 31 March 2022 12) FIXED ASSEts At 31 March 2022 no fixed assets were held by any subsidiary company and both the opening and the closing positions for fixed assets were identical in the charity and the group. TOTAL FIXED ASSErs MUSEUM OF LONDON GROUP AND CHA￿Ty Expressed In £'OOO Herttage A55ets Intanglble Assets Other Tangible A55ets Total Cost At l April 2021 Additions Disposals Transfers At 31 March 2022 15,729 612 796 75,890 278 1248) 11391 75.781 92,415 990 12481 100 139 1,035 Accumulated Depreclatlon At l Aprll 2021 Charge Disposa15 At 31 March 2022 10,702 753 416 48,518 2.510 24 59,636 3,374 12471 11,455 527 Net book vatue At l April 2021 At 31 March 2022 5,027 4,886 380 508 27.372 25.000 32.779 30.394 AI HERITAGE ASSETS The hlstoric 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 l (Fl only historic artefacts and exhibits purchased since l April 2001 have been included in the balance sheet due to the impracticality of economically valuing assets acquired before that date. The Museum of London buildings at London Wall and Eagle Wharf Road are not heritage assets as their preservation is not an objective of the museum. This contrasts with the Museum of London Docklands building, a former spice warehouse, which is historic. and the restoration 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 accumulated depreciation 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 inrended by management. 51 Museum of London Annual Report and Financial Statefflents Year Ended 31 March 2022 A) HERITAGE ASS￿5 Icontlnued) MUSEUM OF LONt)ON GROUP AND CHARITY Expressed In £'OOO Cost Docklands Historic artefacts Tornl At l April 2021 Additlons At 31 March 2022 13,270 567 2.459 45 2.504 15,729 612 Accumulated Depreclarlon At l April 2021 Charge At 31 March 2022 10,702 753 10,702 753 11.455 11,455 Net book value At l April 2021 At 31 March 2022 2,568 2,382 2,459 2.504 5,027 4.886 The transactions relating to heritage assets for the current year and preceding four years are shown below. There have been no impairments. Expressed In £'OOO 2022 2027 2020 2019 2018 Cosr of acqulsitlons Disposals 612 404 125 308 523 509 BI OTHER TANGIBLE ASSErs MUSEUM OF LONDON GROUP AND CHARITY Expressed in £'OOO Leasehold Museum Exhibits Flxtures and Fittings A55ets under construrtlon Other a55ets Total propeny C05t At l April 2021 Addition5 Disposals Transfers At 31 March 2022 55.809 32 3.650 14.986 192 1481 139 1,306 54 11361 75.890 278 1248) 1139) (64) 11391 55.841 3.586 Accumulated Depreclatlon At l April 2021 Charge Disposals At 31 March 2022 31.627 1.969 3,401 66 1641 3.403 12.289 430 1481 1.201 45 1135) 48.518 2.510 12471 50.781 33.596 Net book value At l April 2021 At 31 March 2022 24.182 22.245 249 183 2.697 2.459 139 105 113 27.372 25.000 52 Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2022 C) INTANGIBLE ASS￿5 MUSEUM OF LONDON GROUP AND CHARtTY Expre55ed in £'OOO Total Cost At l April 2021 Additions Transfer5 At 31 March 2022 796 100 139 035 Accumulated Depreclatlon At l April 2021 Charge At 31 March 2022 416 527 Net book value At l April 2021 Ar 31 March 2022 380 508 13) HERITAGE ASSEfs NOT DISCLOSED IN THE BALANCE SHEET Nature and scale of Heritage A55et5 held The Museum of London cares for over two million objects in its collertion. a proportion of which it inherited from the Guildhall and the London Museums when it opened in 1976. The museum collects objects that illustrate and document the past and present cultures and people of London. It operates under the terms of the Museum of London Act 1965 las subsequently amended) which defines London a5 all of Greater London and the surrounding region. Generally this is considered to be the 32 London Boroughs and the City of London. The museum collection5 cover all periods of time, from the earliest homlnld occupatlon in prehistory to the present day. They include field archaeology, ceramlcs, jewellery. numismatics, metalwork and human remains, paintings, prints and drawings. photography. ephemera. Social and working history items, decorative arts and costume a5 well as tape recordings, film. video and orher elettronic media. Policies for acquisition, preservation management and dlsp05al of Heritage Assets The museum has a Collections Managernent Policy and an AcquSsitlons and Dlsposal Pollcy. It uses the collections management system MIMSY XG for the day-to-day management of it5 collertions. The museum continues to add artively to its collection via a number of means including purchase, gift. bequest and excavation. and occasionally divests itself of objects through transfer to other museurns or organisations. sale and recyclingldestruction. Reasons for disposal include objetts being outside the museum's current collecting policy. unprovenanced objects, dupllcation In collections, underuse (no known future potential for research or display). damage beyond any possible use and health and safety reasons. Acce5S to collections 15 provided through our permanent displays, temporary exhibitions, web slte. public access to stored collections, public programmes such as loans out and learning activities. Further details can be obtained from our website at= http.. J lwww.mu5eumoflondon.org.uklcollections-ResearchlAbout-the-collectionsl 53 Museum of London Annual Report and Financial Statements Year Ended 31 March 2022 14) INVESTMENTS MUSEUM OF LONDON GROUP Expressed in £'OOO 2022 2021 L15ted Invesrments Market ¥￿ue at l Aprll Unreajlsed galns on Invesrments Market value at 31 March 3.690 284 2.964 726 3.974 1.159 3.690 1.159 2,531 Less Cost at 31 March Cumularlve unreallsed galn at 31 March 2,815 The above is represented by holdings in CharityAuthorised Investment Fund managed by BlackRock, namely BlackRock Charitie5 Funds. which aims to provide medium to long-term capital and income appreciation by investing mainly In UK Ilsted companies. The Trustees believe that the carrying value of the investments IS SUPPOrted by their underlying assets. Holdings In excess of 5% of the market value of the portfolio at 31 March 2021 are as follows and are all invested in the Blackrock Charities UK Equity Fund.. MUSEUM OF LONDON GROUP Expressed In £'OOO Joicey Mackenzie Bell London Museum Total 2022 Total 2021 1.107 1.913 954 1.028 1,777 885 3.690 Market value at 31 March 3.974 15) DEBTORS DUE WITHIN ONE YEAR Expressed in £'OOO MUSEUM OF LONDON GROUP MUSEUM OF LONt)ON 2022 2021 2022 2021 Trade debtors 388 232 112 21 Amounts owed by group undertaklngs Other debtors 2.312 366 2.130 646 369 644 Prepayment5 and accrued income 6.329 2,291 6.257 2.228 7,086 3.167 9.047 5,025 Included within Trade debtors is a provision for bad and doubtful debts of £nil (202T.' £1.5kl. Amounts classified above as trade debtors and other debtors above fall within the definition of basic flnancial Instruments. 54 Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2022 16) CREDITORS - AMOUNTS FALUNG DUE WITHIN ONE YE4R Expressed In £'OOQ MUSEUM OF LONDON GROUP 2022 2021 MUSEUM OF LONDON 2022 2021 Trade creditor5 Accruals Debt repayable Other creditors Payments In advance 1,082 4,281 492 1,366 282 7.503 2.161 2,690 504 1.313 344 1.071 4,281 492 1.318 2.145 2.690 504 1.275 44 Note 21 B 7,012 6.658 Amount5 classified above as trade creditors and other creditors above fall wlthin the definition of basic financial instruments. Deferred Income Included In Other Creditors and Payments in advance represent income received in 2021122 for ticketed events and venue hire occurring in the following financial year and rental income received in advance to June 2022. Movements from the prlor year are shown below- Expressed In £'OOO MUSEUM OF LONDON GROUP 2022 2021 MUSEUM OF LONDON 2022 2021 Balance at l Aprll Released during the year Newly a55igned Balance at 31 March 344 13181 256 280 44 144) 12801 344 112) 44 282 344 44 17) COMMITMEf+irs lil The Museum entered into an operating lease for the use of printing equipment in 2017118. The total of f uture mini mum lease payments due under this non-cancellable contract within each of the following periods are: Expressed In £'OOO MUSEUM OF LONDON AND MUSEUM OF LONDON GROUP 2022 2021 Payments due: Within one year Within Thyo to five years Total 20 During the year, payments of £13k12021 . £13kl were made under operating leases. lil) The Museum has construttion and professional fees commitments for the New Museum project that are not included in the balance sheet and are due as follows.. Expressed In £'OOO 2022 Payments due.. Within one year Within to five years Total 2021 14,975 35 15.010 7.862 1.336 9,198 There are no capltal commitments that are budgeted but not contracted. 55 Museum of London Annual Report and Financial Statements Year Ended 31 March 2022 18) TOTAL FUNDS A) FUND5 ANALYSIS- MUSEUM OF LONDON GROUP Expre55ed In £'OOO Balance at I Aprll 2021 Income Expendl -ture Transfer between funds Other galns & losses Balance at 31 March 2022 REsfRicfED ENDOWMENT FUNDS London Museum Trust Joicey Trust Total Endowment funds RESTRicfEI) FUNDS Museum of London Fixed Assets Fund Major Projects Fund New Museum Project Fund ACE Programmes Fund Museum In Dockland5 Capiral fund Trust fund5 Joicey Trust Income Fund Mackenzie 8ell Trust 880 68 948 1.029 79 1,909 147 2.056 1.296 641 1,296 692 .237 (1,0961 190) 3.959 31.468 (22.7901 12,637 2.180 455 17031 1,932 107 33 1271 113 2.008 58 191 137 2.194 Total restricted funds 10.193 33.251 124.625> (90) 137 18.866 DESIGNATED FUNDS Flxed Assets Fund Arts Council England 22,609 12.6731 1,040 20,976 462 1,388 11.3591 Deslgnated fijnds 23,071 1.388 14.0321 1.039 21.466 Designated defined beneflt penslon reserve 163,2891 14.750) 13.664 (54,375) GENERAL RESERVES Museum of London London Museum 8.125 14.686 {13,432) (949) 8.430 Trust TO1￿ General Reserves 87 28 (12) 103 8.212 14,714 113,444) (949) 8.533 TOTAL FUNDS 119.904) 49.353 {46.851) 13.948 {3.454} 56 Museum of London Annual Report and Financial Statements Year Ended 31 March 2022 B) Restritted Endowment Funds EXPL4NATION OF FUNDS The London Museum Tr and oice Trust Fund are both endowment funds. e5tabli5hed by benefactors to provide fund5 to the museum in pursuit of its objectives. The Joicey Trust Fund is a permanent endowment fund which means that the income can be spent but not capital. The London Museum Trust Fund 15 an expendable endowment which means that both income and capltal can be spent but the latter only with the approval of the Board of Governors of the museum. Income arising in the year Is treated as unrestritted in the London Museum Trust, restricted in the Jolcey Trust. Restritted Funds Where a donor or sponsor has specified a particular purpose for a donation, grant or sponsorship income, that income is shown as restrlcted income in the year in which receipt is due. Museum of London Fixed Assets Fu 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. do nd arises from a variety of external funding, ranging from major capital works at the museum to specialised work on the collectlons. This Included a Foundation for Future London grant of £40k. seum do um Pro ett Fund wa5 set up in 2015 to represent the restricted funds received for the New Museum project. Mus in Do kl it l Fund dates from the inception of the Museum in Docklands. it arose from the restritted funding obtained to restore the old warehouse building that is now that rnuseum (included in 'Heritage Assets" in the financial statements). It funds future depreciation of those assets. Th Mack nzi Bell Trust Fund 15 similar to the Joicey and London Museum Trust Funds except that both capital and income can be spent in support of the museum's objectives. Designated Fund5 Where the museum decides to commit to a speclfic project or set aslde a sum for a specific need. an allocation Is made to a designated fund. The Fixed Assets Fund has been designated by Governors to ensure the museurn maintains sufficient 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 ourstanding amount of related long-term loans, it funds future depreciation of those a55ets. E Fund arises from funding from the Arts Councll England 2018-22 National Porrfolio Organisation INPOI grants and 2018-22 Sector support Organisation (SSOI grants, a four year grant covering primarily a spertrum of learning, community and regional programme5. It fund5 the museum's commitment to delivering on the programme agreed with ACE. As part of Art Council England's response to Covid-19, the NPO and SSO grants were extended for one year to 31 March 2023. A new three year NPO grant for 2023-2026 has now been awarded to the Museum and a further one year extension for 550 grant5 to 31 March 2024. The ACE Fund a150 comprises funding brought fO￿ard arising from the historic Arts Council England Renaissance Major Grants prograrnme. a three year granr covering primarily a spectrum of learning. community and regional programme5. It funded the museum's commitment to deliverlng on the programme agreed with ACE. The Defined Benefit Pension Scheme. Ne represents the current shortfall on the Defined Benefit Pension 57 Museum of London Annual Reporr and Financlal Statements Year Ended 31 March 2022 General Reserrfos General Reserves are othetwise referred to as 'Free reserves. as Governors can use them in any way connected with the running of the museum. Both arlse from unrestricted income. TRANSFERS BEfwEEN RESERVES Ma or Pro etts Fund the transfer out of £90k is primarily to reflect the substantial completlon of certain capital works f unded partly or fully by external sources. Once the works have been completed the condition5 attaching to the grants have been met and that amount can be transferred to general resetves. Desi nated Fixed Assets Fund - the balance on this fund 15 maintained at a level representing the net book value of 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 fund5. The transfer from general reserves for 2021122 was £l.040k. Desi nated Art the transfer out of £1 k represented the use of historic unrestrlcted grant and programme income that was used to fund related activity in the year. General Reserves the transfer of £949k is the net balance of the transfers referred to above. 58 Museum of London Annual Report and Financlal Statement5 Year Ended 31 March 2022 19) ANALYSIS OF ASSEfs BETWEEN FUNDS- MUSEUM OF LONDON GROUP Expressed In £'OOO Tanglble Fixed Assets Invest- Current A55ets Current Llabllltle5 Long term Uabllltle5 Penslon Liabill￿eS Total Net Assets ments Pmwsions REsfRicfED ENtK)WMETr FUNDS London Museum Trust Joicey Trust 948 1,108 948 1,108 Endowment funds total 2.OS6 2.056 REThcfED FUNDS Museum of London Fixed Assets Fund Major Projects Fund New Museum Project Fund ACE Programmes Fund Museum In Dockland5 Capital fund Trust Funds Jolcey Trusr Income Fund Mackenzle Bell 1,296 1.296 692 12,637 692 12,637 1,932 1.932 113 282 2.194 Restrlcted funds tDtal 3,228 1,912 13,726 18,866 DESIGNATED FUND5 Fixed Assets Fund Arts Council England 27.166 14901 15.7001 20.976 490 490 De51gnated funds total 27.166 (4901 (5,700) 21.466 Designated deflned benefit pension reserve IS4,3751 154.3751 GENERAL RESERVES useum of London London Museum Trust 15,443 97 17.0131 8.430 103 General Reserves total 1 5.540 (7,013) 8,533 TOTAL FUNDS 29.756 17.5031 54 375) (3,454) 59 Museum of London Annual Report and Flnancial Statements Year Ended 31 March 2022 20) TAX STATUS The attiviiies of the museum are undertaken for charltable purposes. Under Part I l of CTA 2010 no Ilability to corporation tax has arisen for the year to 31 March 2022 12021 '. £nil). 21) RELATED PARTIES The following disclosures are made in recognition of the principles underlying Financial Reportlng Standard 102 concerning related party transactions. GREATER LONDON AUTHORrrY (GLA> The GLA is considered a related party slnce It has the rlght 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 Corporatlon (see below). The museum received grants from the GLA totalling £8.1 m12021- £8.2m) during the financial year ended 31 March 2022. Included in the 2022 figure above is £O.Sm of capital funding 12021 .. £0.5m). which was for capital works carried out in 2021122. ciri OF LONDON CORPORATION (COLC) The City of London Corporation is considered a related party since it has the right to appoint half of the Governing Body of the museum and 15 one of the I￿0 main sponsors of the museum along wlth the GLA Isee above). The museum recelved grants from the City of London Corporation during the year of £28.9m (2021.. £17.6m). Included in the 2022 figure is £23.2m for the New Museum project (2021: £11.7m). The City of London Corporation in accordance with the Museum of London Att 1965 is required from amongst the officers of the City of London Corporation to appoint persons who. whilst remalnlng officers of the City of London Corporation. act a5 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 audit services. The provision of all these services by the COLC is the subject of a charge in accordance with the 1965 Act. During the financial year ended 31 March 2022 the charges for these services were £0. I m 12021 .' £0.I ml. Outstanding loans from COLC to the Museum of London totalled £6.2rn at 31 March 2022 12021.. £6.7m). This total includes a balance of £62k oll a loan originally made to the Museum of London Docklands 12021- £82k>. Of these loans, £492k is due within one year 12021: £504k) and £5.700k is due after more than one year (2021 .. £6.193 kl. The museum incurred interest charges related to these loans of £95k (2021.. £112k). C) MOiA MOLA Is consldered a related party due to the close association betmeen It and the museum, a5 reflected in the Memorandum of Understanding that governs relations be￿een the two organisations and the on-going link between the organisations through Boards of Management with close and regular contact. The museum doe5 not exercise control over MOLA which 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 Trusiee at MOLA. representing the Museum of London on the MOLA Board. A charge of £278k was made by the museum to MOLA for a licence to occupy space in Morrimer Wheeler House (2021: £265k). In addition. a charge of £50k was made by rhe museum to MOLA for use of the museum's rrade mark, under a varlation to the Trade Mark Licence agreed during the year (2021- £SOk). D) GOVERNORS AND STAFF None of the Governors, key managerial Staff or thelr related partles has undertaken any transactions with the museum or its subsidiary undertakings during the year. other than the donations from 60 Museum of London Annual Report and Flnanclal Staternents Year Ended 31 March 2022 Governors listed below. The Museum ha5 received £15.Sk 12021: £15kl donations in total from a number of the Governors. in the normal course of charltable glvlng. 22> R￿REmE￿ BENEFITS The Museum of London participates In the Clty of London Corporation Pension Fund. a defined benefit pension scheme. The Museum's share of the a55ets of the Fund for the year ended 31 March 2022 is approximately 6.62% (2021.. 6.65%). The amounts below relate to the Museum of London's share of the fund. The valuation used for the disclosures in this note has been based on the results of the last full attuarial valuation carried out at 31 March 2019, as updated to 31 March 2022 using financial assumptions that comply with FRS 102. The contrlbutlons made by the employer over the financial year amounted to £1,431 k 12021.. £1 ,449k). The contribution rate set for the year wa5 16.1 % (2021 .. 16.1 %>. Following the triennial valuation, the 2022123 employer contrlbutlon rate has been set to remain at 16.1 %. ASSUMFlloNS The financial assumptions used to calculaie scheme liabilitie5 under FRS 102 are.. Valuatlon Method 2022 2021 2020 RPI Increases CPI Increases Salary Increases Pension Increase5 ICPII Discount Rate 3.55% 3.2( 4.2(PA 3.20% 2.60% 3.20% 2.85% 2.65% 1.85% 3.85% 2.85% 2.00% 2.85% 1.85% 2.35% The assumed Ilfe expectatlons from age 65 are.. Life expectatlons (years) Retiring today Retiring in 20 years Males 21.6 23.0 Females 24.3 25.8 61 Museum of London Annual Report and Financial Statements Year Ended 31 March 2022 ASSEfs OF THE SCHEME The Museum of London'5 share of the net assets in the scheme was as follows- Expressed In £'OOO Assets at 31 March 2022 Assets at 31 March 2021 Assets at 31 March 2020 Equilies Cash Property and Infrastructure Multi-as5et fund Closlng falr value of Fund assets (A) 54,461 1.295 11,426 24.979 52.087 443 10.060 40.941 1.154 8.604 18.255 68,954 Presenr value of the defined benefit obligation Present value of unfunded obligation Closlng deflned beneflt obllgatlon (Bl (146,006) (530) 146 536 1149.2931 573 1109.565) 1560) 1110.125) 1149.8661 Net Penslon ILlabllSry) (A) - IB) {54.375) 163 2891 {41.171) ANALYSIS OF PENSION SCHEME Ol￿GOING RESOURCES MUSEUM OF LONDON GROUP 2022 2021 2020 Expre55ed In £'l)00 Analy51s of the amount charged to resource5 expended Current seryice c05t Employer contributions Unfunded penslon payments Net Interest on the defined liability Administration expenses Net Resources Expended excluding Past serdce costs. Includ5ng curtailments Past seNice costs, Including curtailments Net Resource5 Expended 4.901 3,284 3.274 (1,431) 11.449) (1,5171 (42) 143) 1421 1.252 956 983 70 59 66 4,750 2,807 2,764 115 363 4.865 3.170 2,764 Pension fund operational costs are apportloned 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 Expressed In £'OOO MUSEUM OF LONDON GROUP 2022 2021 2020 Remea5uremenr of the net assets / (deflned Ilablllty) Return on fund assets ill excess of inteie5t Other actuarial gains on assets Change5 in financial assumptions Changes in demographic assumptions Experlence Ilossllgain on defined benefit obligation ActuarfaE galnllloss) recognlsed In Consolidated Statement of Tornl Recognlsed Galns and Losses 4.364 16.752 (4.2301 48 9.629 138.7311 1.200 1.468 11.669 700 (329> 14.8721 13.664 (19.3111 3,315 62 Museum of London Annual Report and Flnanclal Statements Year Ended 31 March 2022 MOVEMENT IN DEFICIT DURING THEYEAR MUSEUM OF LONDON GROUP 2022 2021 2020 Expressed In £'OOO Deficit at beginning of the year Current and past setvSce cosrs. Includlng curtailments Employer contributions Unfunded pension payments Net Interest on the defined liability Administration expenses Acruarlal galnlllossl Deftcit ai end of rhe year 163.2891 14.9011 1.431 42 (1,2521 1701 141.1711 13,2841 1,449 43 19561 159) 19,311) 163,289) 141.7221 13.2741 1.517 42 19831 1661 3.315 141,171 {54,375) RECONCILIATION OF OPENING AND CLOSING BALANCES OF THE PRESETr￿ VALUE OF THE DEFINED BENEFIT OBUCAMON Expressed In £'OOO MUSEUM OF LONDON GROUP 2022 2021 Opening defined benefit obligation Current service cost Interest cost Change Sn financlal assumptlons Change in demographic a55UmPtions Experien¢e gainlllossl on (Jefined beneflt obligation Estimated benefit5 paid net of transfers In Past servlce costs, Sncludlng curtallments Contributions by Scheme participants Unfunded penslon payment5 aoslng defined benefit obligation 149,866 4.786 2,979 19.6291 110.125 2,921 2.568 38,731 11,2001 11,468 12,7491 363 618 1431 149.866 329 12.4671 115 599 {421 146.536 RECONCIUATION OF OPENING AND CLOSING BAiANCES OF THE FAIR VALUE OF FUND ASSErs Expressed in £'OOO MUSEUM OF LONDON GROUP 2022 2021 Opening fair value of Fund a5setS Interest on assets 86,577 1.727 4.364 1701 .473 599 12,5091 92,161 68,954 1.612 16,752 1591 1.492 618 Return on assets le55 interest Administration expenses Contributions by employer including unfLJnded benefits Contributions by Scheme participants Estlmated beneflts pald and unfunded net tran5fer5 Fair value of Fund a55ets at end of pertod 12.7921 86,577 63 Museum of London Annual Report and Flnancial Staternents Year Ended 31 March 2022 SENSITf¢iTY ANALYSIS The following table sets out the impact of a change In the discount rates on the Total Obligation and Projected Service Cost alon9 Wlth a +l- l year age rating adjustment to the mortality assumption. 2022 2021 2020 Adjustment to discount rate Present value of total obllgarion £'OOO PKojetted Service cost £'OOO 40.1% 143.469 4.055 +0.1% +0.1% 146,711 107.815 4.738 3.046 Adjustment to mortality age rating a55umption Present value of iotal obligatlon £'OOO Projected seNice cost £'OOO +1 year 52,547 4,392 +1 year +1 year 156.261 114.220 5.135 3.218 PROJECTED PENSION EXPENSE FOR THE YEAR TO 31 MARCH 2022 £'ooo SeNce c05t Net Interest on the defined liabillty A(Sministration expenses Total loss 4.223 1.395 69 Employer contrlbutEons 1.360 64 Museum of London Annual Report and Financial Statements Year Ended 31 March 2022 REFERENCE AND ADMINISTRATIVE DEfAILS Name Museum of London Address 150 London Wall, London EC2Y 5HN Reglstered Charity number l 139250 Board of Governors A Board of Governors. consisting of 18 rnember5 of whom the Greater London Authority (GLA) (prior to Apr512008.' the Prime Minister) and the City of London Corporatlon (COL). each appoints 9 members. is responsible for the strategic direction and oversight of the museum. The following Governors setved throughout the financial year, except where indicated. Appointed by the City of London Sonita Alleyne OBE (ceased to be a Governor T O October 2021) Rt Hon the Lord Boateng DL (ceased to be a Governor 31 March 20221 Tijs Broeke CC Councillor Kaya Comer-schwartz (appointed 16 September 2021) Alderman Alison Gowman Vivienne Littlechild JP MBE CC Iceased to be a Governor l December 2021) Paul Martlnelli CC Judith Pleasance CC John ScottJp cc (ceased to be a Governor 24 March 2022) Mark Bostock (appointed 13 January 2022) Alderman Gregory Jones QC (appointed 19 May 20221 Professor Sir David Cannadine (appointed 24 June 2022) Charlotte Twyning {appointed l October 20221 Appolnted by the GL4 Cllve Bannister Davld Camp (ceased to be a Governor 31 July 20211 Evan Davis Icea5ed to be a Governor 30 September 2022) Douglas Gilmore Iceased to be a Governor 15 Ortober 2021) Lindsay Herbert Milyae Park Gail Talley David Wormsley ljeoma Ekwueme-okoli (appointed l October 2022) Simon Morris (appDinted l October 2022) Paul Fuller (appointed l October 20221 Alice Black (appointed l Ocrober 20221 Admlnlstratlon Under the Museum of London Acts 1965 and 1986, the Board 15 required to appoint a Director of the museum to be responslble 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 administration of any Se￿iCe5 provided by the Board in the exercise of their functlons. 65 Museum of London Annual Report and Financial Staternents Year Ended 31 March 2022 The Treasurer and Secretary to the Board are required to be officers of the City of London Corporation. Director Sharon Ament Treasurer Kate Limna. Guildhall, London EC2P 2FJ Secretary John Barradell, Gulldhall. London, EC2P 2EJ Bankers Lloyds Bank. 25 Gresham Street. London EC2V 7HN Charnberlain of London. Guildhall. London. EC2P 2EJ Legal Advisers City of London Corporatlon, Gulldhall. London, EC2P 2EI Farrer & Co. 66 Lincoln's Inn Fields. London WC2A 3LH Independent Auditor BDO LLP Chartered Accountants and Statutory Auditor 5 5 Baker Street London WIU 7EU Investment Advlser BlackRock Investment Management 12 Throgmorton Avenue London. EC2N 2DL SUBSIDIARY UNDERTAKINGS The financial statement5 consolidate the accounts of the Museum of London together with its subsidiary undertakings which are listed below. Museum of London (rradlng) Lfmited The Museurn of London (frading) Limited is a company limited by shares. Its principal aaivities are the provision of corporate hire and catering seThices and the retail function at the museum shops. The registered company number is 05423292. The Trust Funds The Trust Funds were acquired frorn the London Museum In accordance wlth the provlsions of Section 2 of the Museum of London Act 1965 and are separate legal entities. 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 trusts are= London Museum Fund - Registered Charity Number 312174 Joicey Fund - Registered Charity Number 314194 Mackenzie Bell Fund - Registered Charity Number 314195 The appropriate clauses defining the control of their expenditure are.. London Museum Fund "The Trustees shall hereof apply the Income of the Charity for such charitable purposes as the Trustees shall from time to time consider best In the interests of the Museum including in particular= the acquisition for the Museum of artefacts. pictures, photographs. books. manuscript5. films and other objects of any 66 Museum of London Annual Report and Financial Statements Year Ended 31 March 2022 description whatsoever relating to any aspects of the history of the rendering of a5SlStance to the Museum In preservation, maintenance and repair of objects of all kinds owned by or in the custody of the Museum for the purposes of exhlbition to the public or for use for the purposes of study or research., the promotion of the study of history of London by the publication of books and other printed matter, the provislon of exhibitions. lectures. seminars, recitals. recorded music and prizes and the commissioning of literary or artistic works, photographs or films., or the provision of improvement of amenities and facilities at the Museum". Jolcey Fund The Trust was established from the estate of John George Joicey. The relevant extract from his will states.. 'The remainder of the said estate shall be made over to the Trustees of the London Museum to form a fund, the income frorn which shall be applied a5 the Trustees of the Museum think f it in the purchase of articles. specimens, curios, etc.. for the Museum" Mackenzle Bell Fund 'The said assets and property and any income thereof shall be used a5 the Trustees of the London Museum shall from time to time think fit for the purpose of malntalnlng and adding to the collection in the said Museum". 67