OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-03-31-accounts

The British Museum Trust Limited

Annual Report and Financial Statements for the year ended 31 March 2023

Company registration number 7520030 Charity registration number 1140844

The British Museum Trust Limited Company Registration Number 7520030 Charity Registration Number 1140844 Annual Report and Financial Statements for the year ended 31 March 2023

Contents

Contents
Page
Reference and administrative details of the charity, its Trustees and advisers 3
Report of the Trustees for the year ended 31 March 2023 4-8
Statement of Trustees’ responsibilities 9
Independent Auditor’s Report to the Members of the British Museum Trust Limited 10-13
Statement of Financial Activities for the year ended 31 March 2023 14
Balance Sheet as at 31 March 2023 15
Cash Flow Statement for the year ended 31 March 2023 16
Notes to the accounts for the year ended 31 March 2023 17-22

2

The British Museum Trust Limited Company Registration Number 7520030 Charity Registration Number 1140844 Annual Report and Financial Statements for the year ended 31 March 2023

Reference and administrative details of the charity, its Trustees and advisers

Board Members and Trustees

Lord Powell of Bayswater (Chair) Professor Clive Gamble Mrs Edmée Leventis OBE Sir David Norgrove Mr Jack Ryan MBE

Investment Committee

Lord Powell of Bayswater (Chair) Professor Clive Gamble Sir David Norgrove Mr Jack Ryan MBE

Auditor

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

Bankers

National Westminster Bank plc 135 Bishopsgate London EC2M 3UR

Investment Managers

Newton Investment Management Limited BNY Mellon Centre 160 Queen Victoria Street London EC4V 4LA

Registered Office

The British Museum Trust Limited Great Russell Street London WC1B 3DG

Company registration number 7520030 Charity registration number 1140844

3

The British Museum Trust Limited Company Registration Number 7520030 Charity Registration Number 1140844 Annual Report and Financial Statements for the year ended 31 March 2023

Report of the Trustees for the year ended 31 March 2023 (incorporating the Strategic Report and Directors’ Report)

The Trustees present their annual report on the activities of The British Museum Trust Limited (BMT), together with the financial statements and auditor’s report, for the year ended 31 March 2023.

Strategic Report

Objectives and activities

The overall object of BMT, as laid down in the Memorandum and Articles of Association, is “to advance, in a manner in which the Trustees of the charity see fit, the charitable objects of the Trustees of the British Museum (as may be amended from time to time); and to advance culture, heritage, science, education and the arts for public benefit throughout the world in any manner incidental, conducive to or compatible with the charitable objects of the Trustees of the British Museum.”

BMT aims to achieve this object through the award of grants.

Achievements and performance

The Trustees monitor the performance of the charitable company’s activities against the established objectives for the year. In 2022/23 these were to:

• Award grants

BMT was pleased to be able to make a number of grants in 2022/23:

British Museum Capital Programme

A grant of £100,000 to The British Museum to support the Capital Programme;

Bury Art Museum

A grant of £9,171 to Bury Art Museum to support a back of house refurbishment project;

Shropshire Museums Collection Centre

A grant of £10,000 to Shropshire Museums Collection Centre to support a cataloguing and exhibition project; and

Hartlepool Art Gallery

A grant of £10,000 to Hartlepool Art Gallery to fund gallery improvements.

4

The British Museum Trust Limited Company Registration Number 7520030 Charity Registration Number 1140844 Annual Report and Financial Statements for the year ended 31 March 2023

• Monitor the impact of grants

Under the terms of each grant, the Trustees request that a report, including details of project expenditure, is submitted by beneficiary institutions to allow the Trustees to measure the outcomes and impact of the project and ensure that funds are applied in the agreed manner in relation to BMT’s charitable object.

The following table summarises the impact of the grants made by the British Museum Trust for which reports were received since 1 April 2022.

Grant
Recipient		 Grant Purpose Value Impact
The Stirling
Smith Art
Gallery and
Museum		 Workshop
refurbishment
project		 £9,059 •
Refurbished workshop for collections care
work.
•
Restored flooring in disabled access
corridor.
Watt Institution Specialist storage
project		 £10,000 •
Restore integrity of the collection.
•
Begin the process of digitising the
collection.

5

The British Museum Trust Limited Company Registration Number 7520030 Charity Registration Number 1140844 Annual Report and Financial Statements for the year ended 31 March 2023

Financial review

Total income of £7,509k (2021/22: £158) was recognised during the year. Income in recent years has consisted predominantly of grants from the British Museum and its subsidiaries, of which there was a grant totalling £7,500k in the year (2021/22: nil).

Total grant expenditure of £129k (2021/22: £4,028k) was incurred during the year. Grants made in the year met the object of BMT. Excluding grants, expenditure of £951k was incurred during the year (2021/22: £1,020k). This primarily relates to investment management fees and the costs associated with administration, audit fees and sundry governance costs.

Total funds as at 31 March 2023 were £174m (2021/22: £174m).

Principal risks and uncertainties

The aim of risk management within BMT is to achieve an optimum response to risk, prioritised in accordance with an evaluation of the risks. The Trustees are of the opinion that a thorough risk management process is in place that involves the formal review of key risks and systems and procedures to manage these risks. The risks and controls will continue to be reviewed by the Trustees at scheduled meetings.

The key risks are:

• Investment loss

Risk of loss through markets or advisers is mitigated by the oversight of an investment committee that ensures investments are managed in line with the Investment Policy.

• Income not being spent appropriately

Donations and grants received are recorded and restricted funds separately tracked to ensure grants made are in accordance with the donors’ wishes and BMT’s object.

Plans for future years

• Awarding grants

BMT aims to deliver its charitable object through the award of grants. Thanks to its success in securing grant income, the Trust is able to consider high-quality grant applications that support its object. BMT seeks to keep administrative overheads at a minimum in order to maximise the charitable benefit of funds raised.

In 2023/24 and future years, BMT anticipate providing support to the British Museum with its plan to catalogue and make accessible the entire collection following the post year end announcement of the recent thefts from the collection.

• Measuring and monitoring the impact of grants

BMT will continue to monitor the effectiveness of grants made by requesting from recipients an update on how money is being spent and the outcomes and impact of the project, usually to be received within two months of the agreed project end date. This information will inform the annual review of BMT’s grants policy and decisions made about future grants.

6

The British Museum Trust Limited Company Registration Number 7520030 Charity Registration Number 1140844 Annual Report and Financial Statements for the year ended 31 March 2023

Directors’ Report

Organisational structure

The British Museum Trust Limited (BMT) is a registered charity (registration number 1140844) and a company limited by guarantee (registration number 7520030). BMT is governed by a board of Trustees (directors for the purposes of the Companies Act) who abide by its Memorandum and Articles of Association.

The Trustees are responsible for determining the overall strategy of BMT and meet at least twice a year. They are responsible for reviewing and making decisions on the nature and value of grants to be paid with reference to BMT’s charitable object.

The administration of BMT is carried out by the British Museum under terms governed by a Service Level Agreement.

Recruitment and training of Trustees

The power to appoint new Trustees is exercisable by those currently in office. New Trustees are fully briefed on the objectives of BMT and their role as Trustees. This is reinforced by training as required, to equip them effectively to discharge their duties.

Public benefit

In setting BMT’s objectives and planning its activities, the Trustees have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. The Trustees consider that the object of BMT, the activities outlined in this report, and plans for future years demonstrate public benefit.

Reserves policy

The reserves policy takes into account the nature of the funds received and held by BMT, its forecast income and expenditure, future needs, opportunities, contingencies and risks. It is anticipated that a substantial proportion of grants that BMT is likely to make will be in support of the acquisition of objects or in support of major capital work. Such expenditure is often very high in value and can arise at any time.

The Trustees review the level of funds, together with known and likely future requests for support from those funds, at each board meeting and at least annually. It is the Trust’s policy to continue to build up reserves until they can be expended in furtherance of the charitable object; however the Trustees will seek to hold, as a minimum, unrestricted free reserves equivalent to between one and three months’ non-grant expenditure.

At the year-end BMT held unrestricted funds of £374k (2021/22: £413k) and restricted funds of £173m (2021/22: £173m). Unrestricted funds at year-end were equivalent to around 5 months (2021/22: 5 months) non-grant expenditure. The Trustees consider this level of reserves to be sufficient to meet future funding obligations and to continue to make grants in furtherance of the Trust’s charitable objects.

7

The British Museum Trust Limited Company Registration Number 7520030 Charity Registration Number 1140844 Annual Report and Financial Statements for the year ended 31 March 2023

Investment policy

Overall objective

The overall objective of the policy is to invest, within the constraints of the risks the Trustees are permitted to take, in order to ensure that there are always sufficient funds to enable BMT to meet grant commitments and discharge its charitable object.

Risk tolerance

Limited short-term capital volatility is acceptable on funds, although any reduction in the value of the funds will affect the ability of BMT to meet grant applications.

Asset classes and diversification

There is no restriction on which asset classes may be considered, subject to the requirements set out elsewhere in this policy and the general power of investment.

Accumulation versus distribution

Total investment return includes income and capital returns. The Investment Manager will generally be required to retain and reinvest dividends, interest, capital gains and other income, except where required to distribute.

Operational cash

If cash that is not specifically invested by the Investment Committee or appointed fund managers ever exceeds £1m, funds should be spread across three counterparties in broadly equal proportions.

Fundraising

The charity undertakes no active fundraising. No complaints in respect of fundraising have been received in the year.

Grant-making policy

The Directors consider applications from the British Museum and other bodies for grants and make such grants as seem best calculated to advance the charitable objects of the Trustees of the British Museum or to advance culture, heritage, science, education and the arts for public benefit throughout the world in any manner incidental to, conducive to or compatible with the charitable objects of the Trustees of the British Museum, ensuring always that the requests and stipulations of donors are strictly met.

The Directors monitor grants by requesting from recipients an update on how money is being spent and the outcomes and impact of the project, usually to be received within two months of the agreed project end date.

8

Th8 Brlll&h Mus8um TrusfLlmlled CoryWanyR8￿lrèiIon Ntsmb6r 762IY)30 chorityRe￿51j?uon Number 1140844 Annu81 Report8rJdFlnanclalSlaf8m&nfs foriiioyeartrnded 31 Maich 202J statement of Trustees, responsibllities Th& TrL¢slees (who are also dlreclors of The Britlsh Museum Trust Llmited for the purposes of the Companl8s Acl} are responslble for preparing the Truslges, Annual Rewrt and the financlal slalemenls In accordance with Unlled Klngdom Accounting Standards and applicable laws IFRS 102. the Financial Repotiing Standard appllcable In the UK and Republi¢ of Ireland, and the Companios Acl 20061. Company law requires the Trustees to prepare financial slalemenls for each financial year. Under company law Ihe Trustees must not approve the financial statements unless they are satisfied that they glve a true and lalr vlèw of th8 Stale of 8ffalrs of the charllablg Company and ol the Incoming resources and appllcalion of resources, Includlng the Income and expendllure for that year. In preparing these financial ststements, the Trustees are required lo.. select sullable accounting PDlicies and then apply them conslslenlly. observe th8 melhods and prlnclple5 the Charllles SORP., make judgments and estimate8 that ar8 reasonable and prudont., slate wh8lh8r applicabla UK Accounting Standards including FRS102 have been followed, 8ubject lo any mat&rial departures disclosed and explained in the finanoal slalemenls,. slate whether a Slalemenl of Recommended Practlce applles and has been followed, sublecl to any material departures which are explained in the financ181 statements., aNI piepare the financial sialements on the 90ing concem basis unless it is inappropriate to presume that the charitab16 company will continuè in business. Th8 Trustees are responsible for keeping ad8quate accourb15ng records that disc1080 with reasonable accuracy al any lime the financial position of the charitable company and enable them lo ensure that the financlal statements comply wllh the Companie8 Act 2006. They are also responsible for safeguarding the assets of th8 charltable company and henco for taking reasonable steps for Ihe prevention and delecliors of fraud and other irregLJlarilies. In so far as the Trustees ar8 aware.. th&re is no relevant audit information of whlch the charitable companVs aLidllor Is unaware., and the Trtjslees have taken all steps that they ought lo have taken to make themselves aware of any relevant audit information and lo establish that the auditor rs aware of that infomiatlon. Thls conflrmallon is given and should be inlgrpr¢led in accordance with Ihg provisions of s418 of tho Companles Act 2006. The Dlreclors, Report is approved by the Trustees of the charity, The Stralegic ReFX)rt, which forrns part of the Annual Report, 15 approved by th8 Truslees In Iheir capacity as Dlreclors in company law of the Charity. Approvad by the Trustees and signed on their behalf by.. Lord Powell of Bayswater Dale

The British Museum Trust Limited Company Registration Number 7520030 Charity Registration Number 1140844 Annual Report and Financial Statements for the year ended 31 March 2023

Independent Auditor’s Report to the Members of The British Museum Trust Limited

Opinion

We have audited the financial statements of The British Museum Trust Limited (‘the charitable company’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions Relating to Going Concern

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

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

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

Other Information

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

10

The British Museum Trust Limited Company Registration Number 7520030 Charity Registration Number 1140844 Annual Report and Financial Statements for the year ended 31 March 2023

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on Other Matters Prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on Which We Are Required to Report by Exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

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

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 9, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

11

The British Museum Trust Limited Company Registration Number 7520030 Charity Registration Number 1140844 Annual Report and Financial Statements for the year ended 31 March 2023

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

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

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

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

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

12

The British Museum Trust Limited Company Registration Number 7520030 Charity Registration Number 1140844 Annual Report and Financial Statements for the year ended 31 March 2023

Our approach was as follows:

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

Use of our Report

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

James Cross (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

9 November 2023

6th Floor 9 Appold Street London EC2A 2AP

13

The British Museum Trust Limited Company Registration Number 7520030 Charity Registration Number 1140844 Annual Report and Financial Statements for the year ended 31 March 2023

Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 March 2023

Note
Income from:
Donations and legacies
2
Investments
3
Total
Expenditure on:
Charitable activities
4
Raising funds
5
Total
Net (loss)/gain on investments
9
Net (expenditure)/income
Net movement in funds
Total funds brought forward
12
Total funds carried forward
12		 Unrestricted
Funds
£
8,709
1
8,710
(29,235)
(2,196)
(31,431)
(15,674)
(38,395)
(38,395)
412,678
374,283		 Restricted
Funds
£
7,500,000
532
7,500,532
(126,675)
(922,171)
(1,048,846)
(6,582,798)
(131,112)
(131,112)
173,313,522
173,182,410		 Total Funds
2023
£
7,508,709
533
7,509,242
(155,910)
(924,367)
(1,080,277)
(6,598,472)
(169,507)
(169,507)
173,726,200
173,556,693		 Unrestricted
Funds
£
130
-
130
(28,226)
(2,466)
(30,692)
8,373
(22,189)
(22,189)
434,867
412,678		 Restricted
Funds
£
-
28
28
(4,025,761)
(992,041)
(5,017,802)
3,368,872
(1,648,902)
(1,648,902)
174,962,424
173,313,522		 Total Funds
2022
£
130
28
158
(4,053,987)
(994,507)
(5,048,494)
3,377,245
(1,671,091)
(1,671,091)
175,397,291
173,726,200

All activities are derived from continuing operations.

The Statement of Financial Activities contains all gains and losses in the year. The notes on pages 17 to 22 form part of these accounts.

14

rhe 8ritish Mus8um Tnjsl Limited CompanyR69131r&lion Numlw 7520030 ChaAly Reglslrallon Numbor 1140844 Ar￿u&l Rgport FlnanGl41 S18Èem8nlslcilhe y6èr$nd6d31 Al8reh 2D23 Balance Sheet as at 31 March 2023 2023 2022 Flxed a5￿t$ In￿stmentS 170.752,888 177,960,638 ¢urr&n¢ a$88ts Debtors Cash al bank and In hand 10 3.OOS,949 185,520 3.191,4fj9 1,112 62,OBO Currant Ilab1111195 Credltors.. amounts lalllng due wlthln one year 1387,6fj41 14,296,518) Net assets 173,556,693 173 726,200 R@ptssented by,, R$*rf¢ted funds Unreetrlctsd funds 12 12 1Y3.182,410 374,283 173,556 693 173,313,522 412 678 173,726,200 The financial slalemenls of The British Museum Trust Limlled, r8gisl8red company number 7520030 and registered charily number 1140844, were approved by the Board ol Trustees and aulhorised for issue on 7 November 2023 and s ned on thelr behalf by.. Lord Powell of Bayswalèr Dal8 15

The British Museum Trust Limited Company Registration Number 7520030 Charity Registration Number 1140844 Annual Report and Financial Statements for the year ended 31 March 2023

Cash Flow Statement for the year ended 31 March 2023

Note 2023 2022
£ £
Cash flows from operating activities
Net (expenditure)/income (169,507) (1,671,091)
Net loss/(gain) on investments 9 6,598,472 (3,377,245)
Interest and dividends received 3 (533) (28)
(Increase)/decrease in debtors 10 (3,004,837) 11,554
(Decrease)/increase in creditors 11 (3,908,854) (2,607,145)
Net cash (used in) operating activities (485,259) (7,643,955)
Cash flows from investing activies
Interest and dividends received 3 533 28
Sale of fixed asset investments 9 4,979,278 7,600,314
Purchase of fixed asset investments 9 (4,370,000) -
Net cash provided by investing activities 609,811 7,600,342
Increase/(decrease) in cash and cash equivalents 124,552 (43,613)
Cash and cash equivalents at the start of the period 60,968 104,581
Cash and cash equivalents at the end of the period 185,520 60,968
Analysis of cash and cash equivalents
Cash at bank and in hand 185,520 60,968
Cash and cash equivalents at the end of the period 185,520 60,968

16

The British Museum Trust Limited Company Registration Number 7520030 Charity Registration Number 1140844 Annual Report and Financial Statements for the year ended 31 March 2023

Notes to the accounts for the year ended 31 March 2023

1. Accounting policies

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements.

Basis of preparation

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 (FRS 102), the Statement of Recommended Practice for Charities 2019 (SORP 2019), the Companies Act 2006, and the Charities Act 2011. The financial statements are presented in sterling, which is the functional currency of the charitable company. Monetary amounts are rounded to the nearest pound.

Going concern

The British Museum Trust Limited’s activities and future plans are set out in the Report of the Trustees. The Trustees have a reasonable expectation, based on forecasts and projections and taking into account reasonably foreseeable changes in income and expenditure, that the charitable company has adequate resources to continue to operate for the foreseeable future. While recent global events continue to pose significant risks to the British Museum Trust’s income streams (including both grant income and investment gains) the Trustees consider the level of reserves adequate to absorb foreseeable changes in income. Accordingly, they continue to adopt the going concern basis in preparing the Report of the Trustees and financial statements.

Donation and legacies

Donations and legacies are recognised when there is evidence of entitlement (for example when the conditions for their receipt have been met), receipt is probable, and their amount can be reliably measured.

Income from investments

Interest income is recognised in the period in which it is earned and is allocated across restricted and unrestricted funds in proportion with the value of funds held at the start of each quarter.

Taxation

The British Museum Trust is a charitable company and entitled to certain exemptions from income and corporation taxes on income and gains.

Expenditure

Expenditure is recognised in the financial statements when a present legal or constructive obligation exists, it is more likely than not that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured or estimated reliably. Expenditure is classified in the SOFA under the principal categories of expenditure on raising funds and on charitable activities.

Expenditure on charitable activities includes grants to institutions, support costs incurred in the general running and administration of BMT, and governance costs incurred to ensure compliance with constitutional and statutory requirements.

Support and governance costs have been allocated across restricted and unrestricted funds in proportion with the value of funds held at the start of each quarter.

Liabilities

Liabilities are recognised where legal or constructive obligations mean that it is more likely than not that a transfer of economic benefits will be made.

17

The British Museum Trust Limited Company Registration Number 7520030 Charity Registration Number 1140844 Annual Report and Financial Statements for the year ended 31 March 2023

Grants payable

Grants payable are recognised when formally approved by the Trustees, communicated to the recipient and when any conditions of the grant have been met.

Foreign Currencies

Transactions denominated in foreign currencies are translated at the exchange rate at the date of the transaction. Foreign exchange differences arising on translation are reflected in the Statement of Financial Activities.

Financial Instruments

Other than investments, all basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Investments are measured at fair value with any gains or losses reflected in the SOFA in the period in which they arise. BMT does not have any non-basic financial instruments.

Cash and cash equivalents, as referred to in the statement of cash flows, include only cash at bank and in hand. Cash at bank and in hand is held to meet short-term cash commitments as they fall due rather than for investment purposes.

Funds

Restricted funds including those of a capital nature are those which are to be used in accordance with specific restrictions imposed by the donors. Unrestricted funds are those available for use at the discretion of the Trustees in furtherance of the objectives of BMT.

Significant Judgements and Estimates

All significant judgements applied in preparing the financial statements are disclosed in the accounting policies above. No material estimates have been applied.

18

The British Museum Trust Limited Company Registration Number 7520030 Charity Registration Number 1140844 Annual Report and Financial Statements for the year ended 31 March 2023

2. Income from Donations and legacies

Donations and legacies
Total voluntary income		 2023
2022
£
£
7,508,709
130
7,508,709
130

3. Income from Investments

Interest
Total income from investments		 2023
2022
£
£
533
28
533
28

4. Expenditure on Charitable activities

Grants to institutions
Support costs		 Total
Total
Unrestricted
Restricted
Total 2023
Unrestricted
Restricted
Total 2022
£
£
£
£
£
£
29,171
100,000
129,171
28,162
4,000,000
4,028,162
64
26,675
26,739
64

25,761
25,825
29,235
126,675
155,910
28,226
4,025,761
4,053,987

Grants were awarded to support projects as detailed in the Report of the Trustees.

5. Expenditure on Raising funds

Investment management fees

----- Start of picture text -----
2023 2022
£ £
924,367 994,507
----- End of picture text -----

19

The British Museum Trust Limited Company Registration Number 7520030 Charity Registration Number 1140844 Annual Report and Financial Statements for the year ended 31 March 2023

6. Support costs

Total Total
Unrestricted Restricted 2023 Unrestricted Restricted 2022
£ £ £ £ £ £
Audit fees 18 7,542
 7,560
 16 6,560 6,576
Corporation Tax filing - -
 -
 1
 419 420
Trustees' expenses - -
 -
 -
 51 51
Directors and officers
indemnity insurance		 5 2,086 2,091 4
 1,701
 1,705
Total governance costs 23 9,628 9,651 21
 8,731 8,752
Other support costs 41 17,047 17,088 43
 17,030
 17,073
Total support costs 64
 26,675 26,739 64 25,761 25,825

Support costs have been allocated between funds on the basis of the ratio between unrestricted and restricted fund balances at the start of each quarter.

7. Staff costs

BMT has no employees. The British Museum provides accounting and administration services for which BMT is charged on an arm’s length basis.

8. Trustees’ remuneration

No Trustees received any remuneration for services in the year (2021/22: no trustees). No Trustees were reimbursed during the year. In 2021/22 one Trustee was reimbursed £51 travel expenses.

9. Fixed asset investments

Investments at 1 April
Additions
Disposals
(Loss)/gain in value
Investments at 31 March		 2023
2022
£
£
177,960,638
182,183,707
4,370,000
-
(4,979,278)
(7,600,314)
(6,598,472)
3,377,245
170,752,888
177,960,638

During 2022/23 all (2021/22: all) investments were in the BNY Mellon Real Return Fund.

20

The British Museum Trust Limited Company Registration Number 7520030 Charity Registration Number 1140844 Annual Report and Financial Statements for the year ended 31 March 2023

10. Debtors

Other donations
Prepayments		 2023
£
3,004,669
1,280
3,005,949		 2022
£
-
1,112
1,112

11. Creditors: amounts falling due within one year

Grants payable
Accruals		 2023
2022
£
£
129,171
4,028,162
258,493
268,356
387,664
4,296,518

12. Funds

2023
Restricted capital funds
Restricted masterplan funds
Other restricted funds
Total restricted funds
Unrestricted funds
2022
Restricted capital funds
Other restricted funds
Total restricted funds
Unrestricted funds		 Balances
brought
forward
£
2,198,286
-
171,115,236
173,313,522
412,678
173,726,200
Balances
brought
forward
£
6,116,100
168,846,324
174,962,424
434,867
175,397,291		 Income
£
7
7,500,000
525
7,500,532
8,710
7,509,242
Income
£
1
27
28
130
158		 Expenditure
£
(112,035)
-
(936,811)
(1,048,846)
(31,431)
(1,080,277)
Expenditure
£
(4,035,579)
(982,223)
(5,017,802)
(30,692)
(5,048,494)		 Balances
Movement on
carried
investments
forward
£
£
(83,495)
2,002,763
-
7,500,000
(6,499,303)
163,679,647
(6,582,798)
173,182,410
(15,674)
374,283
(6,598,472)
173,556,693
Balances
Movement on
carried
investments
forward
£
£
117,764
2,198,286
3,251,108
171,115,236
3,368,872
173,313,522
8,373
412,678
3,377,245
173,726,200

Restricted funds have arisen as a result of donations made by donors to BMT. “Restricted capital funds” are restricted for the furtherance of the British Museum’s charitable objects through expenditure for capital purposes. “Restricted masterplan funds” are restricted for the furtherance of the British Museum’s ambitious long-term plans, currently known by the working title of the masterplan. “Other restricted funds” are restricted for the furtherance of the British Museum’s charitable objects.

21

The British Museum Trust Limited Company Registration Number 7520030 Charity Registration Number 1140844 Annual Report and Financial Statements for the year ended 31 March 2023

13. Analysis of net assets between funds

Fixed asset investments
Current assets
Creditors
Fixed asset investments
Current assets
Creditors		 Restricted
capital funds
£
2,103,537
2,209

(102,983)
2,002,763

Restricted
capital funds
£
6,200,896
786
(4,003,396)
2,198,286		 Restricted
Masterplan
funds
£
4,502,898
3,008,274
(11,172)
7,500,000
Restricted
Masterplan
funds
£
-

-
-
-		 Other
restricted
funds
£
163,742,856
180,573
(243,782)
163,679,647
Other
restricted
funds
£
171,318,412
61,147
(264,323)
171,115,236		 Unrestricted
funds
£
403,597
413
(29,727)
374,283
Unrestricted
funds
£
441,330
147
(28,799)
412,678		 Total
2023
£
170,752,888
3,191,469
(387,664)
173,556,693
Total
2022
£
177,960,638
62,080
(4,296,518)
173,726,200

14. Contingent liabilities

In 2018/9 the BMT entered into an agreement to provide project underwriting of up to £41m. The agreement remains in place but the timing and amount of any payment under this agreement is uncertain.

15. Members’ liability

The charity is a company limited by guarantee and has no share capital. The liability of each Member in the event of winding-up is limited to £10.

16. Related party transactions

During the year BMT entered into no material transactions with related parties.

22