COMPANY REGISTrATION NUMBER: 07568957 CHARTfY REGisfRATION NUMBER: 1143235 TULLIE HOUSE MUSEUM AND ART GALLERY TRusr COMPANY LIMrrED BY GUARANTEE ANNUAL REPORT AND FINANCXAL STATEMEMrs FOR THE YEAR ENDED 31 MARCH 2023 TULLIE IwIIINllniii •ACDKAGIN• Ce41012023 ¢￿1PANIEs HOUSE N27 #24 David Allen Chartered Accountants & Statutory Auditor Dalmar H¢)u5e Barras Lane Estate Dalston Carlisle CA5 7NY TULUE HOUSE MUSEUM AND ART GALLERY TRUST COMPANY UMITED BY GUARANTEE CONTENTS RefererKe and administratNe detsils Ito2 Statement of 0￿1r of Trustee5 arKI Museum Director 3to5 Trustees, reFQrt {incorFM)rnting the 5trategK directors. rq¥yt) 6t027 Independent audÉtorfs rep)rt 28to32 c￿￿o11dated statement of financial activits￿ (irthlirKJ the income and expenditure account) 33 to 34 Consolidated balance sheet 35to36 Balance sheet 37to38 ConsolKlated ststement of cash lkn 39 Notes to the finawl statements 40to70 TULLIE HOUSE MUSEUM AND ART GALLERY TRusr COMPANY UMITED BY GUARAfiTEE REFERENCE AND ADMINisfRATIVE DETAILS Trustees Mr A J Smith CVO. Chair Ms C A M Thoms￿ DL, Deputy Chair Profe550r P Strike (resig￿ 27 January 2023) Mr A R Mackay, Museum Director Professor J Mennell (re￿9fted 28 October 2022) MsRFoy Ms M E Reid Fctheringham DL Mr CJ Harrwi mrcwGb￿r Cwilhy K Meller (resigned 31 Marth 2023) c￿￿lIk)r E LyTth (app)inted 30 May 2023) Mr P G Cauaghan {apwinted 29 JU￿ 2022) Ms V Young (apwinted 27 January 2023) c￿nCilI0r A Quilter (appointed 30 May 2023) Ms S J Parry {appoint&J 27 January 2023) Secretary MrDAGiby Charity Registration Number 1143235 Company Registration Number 07568957 The tharity is 1r￿r￿jrated In England and Wale5. TULLIE HOUSE MUSEUM AND ART GALLERY TRUST COMPANY LIMrrED BY GUARAPItEE REFERENCE AND ADMINISTRATIVE DETAILS (CONTINUED} Registered and PrI￿1PaI l)ffi Tull* Hcrt￿e Q5Ue Street Qdisle Auditor David Ajlen Charter8J Acc￿n￿ts & Ststutory Audit( Dalmar H(xJse Barras Lane Estste DaLston C45 7KY Bankers CumberlarKI Buikliry Swety CumberLand House Ccrf)per Way Parkhwse C43 OJF TULLIE HOUSE MUSEUM AND ART GALLERY TRUST COMPANY UMTfED BY GUARArirEE STATEMENT OF CtrIAZR OF TRusfEES AND MUSEUM DIREcfoR FOR THE YEAR ENDED 31 MARCH 2023 2022123 was hugdy significant fcy the Trust for three main reasons - the cessation of Carlisle Qty Council; the development of Project Tullie, the Trusfs major capital developmert prcgramme,. and the adoption of new branding. On 31 March 2023, after almost 50 years, CatI￿e fjty CcxmK￿ was subsum&J into Cumbedand Counol, one of tsyo new unitsry aLrtlb)n"ties for Cumbria. These altthorities - Westmodand and Furness to the east and south, and Cumberland to the r*)rth and west - now comwise the fomier Cumbria c￿jnty Counal and the other fNe distritt counals. A change of SLth significa￿e triggered much urKertawity and present8J OflKers and Members with many administrative, legal, arKI consth"tUti￿al challenges. It is early days, tmrt we hope tha¢ after a period of adjustmenL the new autlN)n"ty will be tetter pla￿d to collat￿rnte with partners to deliver cohesive strategic vision for residents tourists that will stimulate Cumberland's economic growth. A collective, joined-up and wnbitiOU5 ￿5￿)n is much needed. We have re¢efft1 assuran￿ that ￿ Tru￿5 Pwtnership and FurKling AgreeM￿t with the Qty Council will novate to Cumberfand, and it gNes us comfort to know that Some of the Members, senior stsff and manw from Carlisle have successfully transferred to ￿ new auth￿lty. We believe that the Members afKI Offiws of CwnlkrlarKI be as gJpwtive with Project Tullie as th*"r predecessors. The projert. whith has lJ)th been delayed seen signtficant acceleratton over the past 12 months. centres around inve5tiry in the Cwncil's assets so that the local community and the visitor economy can wosper and thrive. Tr projert also aims to hdp make the Trust more financ411ty 5U5tsinable and therefore less reliant on public fwKling. In their first ev& Han. CumI￿rIand Countil stste th￿r aim to'...improve the health and wellt*ing of our residents. It is at the heart of eve￿Ir￿a that we iJo. We want them to be happy, healthy and safe through￿￿ their INes.' This 'peoF4ety of our collections, that are rdevant and b￿￿￿la1 to ktal comm¢￿itieS and v$sit￿$ alike., Its Mission is: Yo deliver an out#anding. indu5ive and resilient museum that is a major tU￿ra1 deth"nation for the north, and which uses its colkntions to prr#JLrce a world CL￿ public wc4Jramme tsfgeted at visitor5 and the people of Girli4e arKi ergages a broad S￿r￿M of audience5.' Public benefit The trustees cC￿fim) that they have corn￿1ed with the requirements of section 17 of the Charities Art 2011 to have due regar(i to the public benefit guidance putlished by the Charity Commisson for England and Wales. TULUE HOUSE MUSEUM AND ART GALLERY TRiisr COMPANY UMJTED BY GUAIiANTEe TRusfEES' REPORT (INCORPORATING THE slliATEGIC AND DIREcfoRS' REPORT) (CONTINUED) Our Manifesto Tullie is the heartbeat of Carlisle'5 cultural life. Tullie uses ¢ollertions. programmes and resources to tell stories and inspire leamin& for life Tullie is • cat•lyst to connect Carli51e and Cumbria to the world. We will provide a welcome. inclusive, safe space for everyone. We warrt t• meao more to more people. We will think freely. examine and challenge a55UmPtions. embrace new idèas. respond to global issues and stand at the for*front of museum prartice The collection5 belong to the Pe￿Ie of CaAisle- we will researth. explore, reveal, and share them together in relevant and meaningful way5. We belleve culture fundamentally enrl¢hes people's lives. We will be immersive. ompellin8 and rooted in co- creation. We recogni5e the many fonns that thi5 Can takÈ from quiet contemplation to active participation: everyone learns and engages dlffertntly. We will nurturè and develop ffective crèative partnershlps with key organisations and individu41s that can help us deliver this manifesto. We will inspire creativity enEaEe the senses and unlock Imagination. We will listen to the community. and tO8ether. we wlll use our skllls, knowled8e and experience to help make Cadi51e and Cumbria a thrfvln£ pla¢e for everyone. We WHI work wlth Ouf ¢ommunlty to collect for tomorrow as well as today. We will m3ke ¢onn•rtk•ns acr05s our collectlons and the natural and human woAd around us. TULUE HOUSE MUSEUM AND ART GALLERY TRusr COMPANY LIMITED BY GUARAKfEE TRUSTEES. REPORT (INCORPORATING THE STRATEGIC AND DIRECTORS, REPORT) (CONTINVED) srRucfuRE. GOVERNANCE AND MANAGEMENT The Organisatl(bn Tullie House Museum and Art Gallery Trust (kne Trusr) operates and manages Tullie Hcrfjse Museum and Art Gallery {'Tullie" or ￿ museum") rn Castle Street, Carfisle. whKh is our main Pla￿ of Iwsiness, and the Guildhall. a 14th century Grade I I￿ted buikjing in Greenmarket Street. The Trust leaw a third property, a colkrtiors storage tsalty k(ated in Longtown, approximately nine miles from the city centre. In 2014 the TnJ5t was access to Herbert Atkirtson House in Abbey Street and this is now used for the Cumbria &c#Yiversity Dats Centre arml addrtional museum Offi￿ space. All these premises a￿ ￿cUpied urKier leases or li￿nce by the Tntst from Carlisle City Counal. Cadisle Oty Council ceased to exist after 31 Marth 2023. The autlK)rty was subgjmed, along with Allerdale nd CoOand distrirt counols and part of Cumbria County c￿￿11. into the new unitsry Cumberland Council from l April 2023. The Trust manages the LNJiklings and c(Alections on behalf of the City Council. In December 2022 the Museum Trust acquired the freehold of &24 Castle Street from Carlisle City C(XAncil and is (kvelopiThJ these buildings as part of the museum es&ite. Tullie was opened by Carlisle Oty Counal as a museum in 1893. In the 1990s there were significant developments to the premises inv(1￿ng new gallery spaces, a restaurant, a SFW, education facilities and storage. In 2001, a further gallery. the Millennium Gall￿, and a robjnda that overloc*s Girl1￿e Gisye and the site of a historic Roman settiemenL were oFen&J. In 2011 the Millennium Gallery was reopened as our new Roman Frontier Gallery, whith tells the story of the ctCupat￿ of Carfl￿e and the bcffder country under the Roman Empire a￿1 Fla￿$ this in a contemFxyary context. In 2011 Cartlsle Cty CourKil transferred the man¥Jement of T¥Jll* to a new charitsble trusL at whKh time the employment contracts of TU11￿ House stsff were trnnsfured fr(￿ the Cty Council to the Trust. The City cour￿11 continues to provide a management fee to the Tnjst, which is agreed on the basis of a rollirrfj three-year trMJsiness tAan wepare(I by the Tru#. A series of 30-year Wl agreements ommencing in 2011 unduwn key 35p￿ts of the operational aThl contracttjal relationship between the Twst and the Oty Counol. The Trust is an Arts Cwncl England National Portfolio Organisabon in its capw as l&id of the Cumbria Museums Consortium. The Consortium applies for NPO furxling on a 3 or 4 yearly basis and this grant income is crucial for the to be able to deliver ts key WO￿ with communities, children and young people, temporary exhibitiors and audience and organisational d￿￿0pment projects. The Trust also generates income thr(wh entry charge5 to the muswm. through its retsil (Krtlet, its catering and ty￿rate hospitslity activities. via grants for educabon projects. cc41ettions, conseNation and exhilx'tions, and through d)argeaUe events. The Trust was incorpxated C￿ 17 Marth 2011. It became a regi&ered charity 3 August 2011 ltharity registration number 1143235). The chartvs object is: kn adVar￿ the education of the public. including an Understa￿51￿j and appreciation of the arts, saences and history.. Tr charity has a sub￿dIary trading company* Tullie Museum arKI Art Gallw Trust (Trading) Limited, a private limited company that was fKOTtA)rated on 19 July 2011 (company registraticffl number 07710513). trustees delegate day-ttrday management of ￿ tharity to the ml￿eum Director, supkv)rted by the other members of the Sen￿ ￿adership team. Trv5tees utilise their own th"Ils, knowledge and experien￿ in order to act in the best interests of the tharity. arKJ are a(fvised and guided by the expertise and views of key stakeholder5, subject matter exp&ts and the needs of the coffmunity. TULUE HOUSE MUSEUM AND ART GALLERY TRusr COMPANY UMITED BY GUARANTEE TRusfEES' REPORT {ZNCORPORATING THE STrATEGIC AND DIREcfoRS' REPORT) (cop￿[NuED) The Board of Trustees The Board of Trustees ￿ comprised of 6 and 15 members (oJrrently 12), indudirvj lJ¥o appointed by Cadisle Oty Council (r￿ Cumberland Counal). The tTUStees agree the Trust's business stratsgy, business plans and key museokngical and admini5tratwe They also agree finanoal and risk management wliaes and rewe•V There are three Board Ccffnmittees: the Audit and Risk Committee compri￿￿ four Tntstees vthich oversees financial risk and controls; a Development C￿mIttee compriyng four Tntstees which is examinirvj new meth)ds of raising income and donations," and a Remunerati￿ a￿1 Nominations Committee comprising of thr* Trustees whith reviews the Twst Director and senior leadwthip team's pay and perfornian￿ and considers trustee succession planning and mminations for new tntstees. There ts also a Project TU11￿ Board whith comprises of trustees and members of the senior leadership tsam and indudes the addfcion of key partner representstives from Carlisle ljty Council and Cumbria County c￿￿11. RecNltment and appolntment of tntstees Candidate5 for future trustees are congdered by the Nominations Committee vrfhich adopts various search processes dependiThJ on the nature of partiojlar skills and experience required for vacant roles. The committee also has regard to the abilty of candidates to contribute the required time commitments reliabty and to the need for a gjitably dr¥erse aThJ indu5ive Board that is representstive of the regi￿ and I￿al communities. Trustees are subjert to retirement by rotation at each AGM, except that Carfisle City (rthv cUm￿and) CTrJn(il has the rKJht to app)int (and remove accordirv4 to its own prathce and prc(ulvre) elected Cour￿lI10rS as trustees who are not subject to the same retirement by rotation prc(ess as other irKJeFentht tnjstees. Indu¢tion and trainiThJ (rf trustees Newty appointed trustees are proV￿ed with a Ind￿tiOn pad( arKI as5(Kiated training. Pay policy for senlor staff The salary of the Museum Director is set by the Rernuneration Qjmmittee of the Board, tsking account of varh]￿ performarKe indicators. The remuneration of other 5enKf members of stsff is determined by the Museum Dirertor in dose consU￿b0n with the trust￿ and the guidan￿ from national pay scales. Their i￿liVKIUal k*rf0ma￿e ￿ reviewed on a continuing bas15, ACHIEVEMEf4TS AND PERFORMANCE Project Tullie Project Tullie is a phased capitsl deve￿)￿nt programme that is tran4omiTrJ the organisatw Into the creative and cultural heart of the t¥ydedands f¢x the 21st century. Among a myriad of outcomes, the project is based on a masterplan for Tullie and proposes a comw*nsNe redevelopment of the main museum site. TULUE HOUSE MUSEUM AND ART GALLERY TRusr COMPANY uMrrED BY GUAIiAi¥fEE TRUSTEES. REPORT (JNCORPORATZNG THE sfRATEGIC AND DIRECTORS. REPORT) (CONTINUED) The Strategic Obiertives of Prniect Tullie are threefold: People- Creating a sense of indusl￿ty aThJ communty, Ixng a cataty5t for ueative engagement Place Reimaging the original wrrK)se of T￿lIe as Carlisle's centre of arts, leaming and knowledge Herftage - Revealing ￿ restorirwj the existirwj buildings shariw h￿S￿en cotleLtions Delivery of the* objectives 15 fouThJed on a number of key wncitAes: GrowiThJ and diversifying kKal. regional and natK)nal •Jd1￿$ Inueasing finanoal sustsinalmbty Partnership working Enhanc1￿ ￿ ¢ity and regi￿ s wofile and impart e to the scale of ambition and InVestn￿ Proiert T￿lIe has Lwi broken thwn into phases. Phase l - the r*w cosbjme galleries. completed in Juty 2021 Phase 2 is a É4.2m development whith aims to detNer the folk)wing wtputs.. Remc*lel￿d arrival arhy Aflcome area with collectsns at the he&t Improved NientatM)n, navigation and visitor ￿￿rneY New orientstion gallery, with a swrkiThJ title of Carfi51e In4¥res Remodelled retail sp New communty space in Casue Street Greater presence and visibilty on the high street Phase 3 - currently referred to as The Art Sthwl and costing in exce55 of £6m, ddiver5 a wide range of improvements with a tommunty and leamirvJ f(Ku5, I￿lUdI￿J.. Restoration of the fomv ￿ rvjw 'hidd￿. Art sc￿%)1 on the ground and first fl(Ksrs New, fit for wrFx)se accesslk bl￿ed learning, wmmunty and galSay spaces on gr￿jn￿ and first fh Renovation of historic Stst4e Blc(k to create actswty Spa￿ and Ir￿￿ased rKces5 to the Serrt Gard￿ to further unlcKk the es&ite cOnstr￿tion on Phase 2 is due to conv1*n￿ in Autsjmn 2023. Our application to the Naticnal Lotw Hertsge FurKI (NLHF) for £4.5m Phase 3 has received a Stsge One pass which provides US with funding to Commen￿ Developwent Phase. which we will be undertaking through(xrt 2023. io- TULUE HOUSE MUSEUM AND ART GALLERY Trusr COMPANY UMITED BY GUAiIAp¥fEE TRvsfEES' REPORT (INCORPORATING THE STRATEGIC AND DIRECTORS, REPORn (CONTINUED) LEARNING AND COMMUNtrY ENGAGEMErir The museums community errfjagement work continues to exceed exFertatior6 with more people partiapatin9 in our indusive and imaginabve programmes than ever before. Schools Tullie's schcd pr(>Jramme continues to ￿ tKist-pandemK. showng resilience in the fa￿ of the Cosi-of-living crts￿, whTrch has seen schcd budgets cut and rising travel costs. A totsl of 10.146 pupils partiopated in the programme this year, with incTeases in both mediated museum wortshops (up 115% on last year) and self-guided vigts (up 228% on year). The museum's ￿pular pr09rdm￿￿ of currKulum frywssed work4w ccfitinues, wlth 213 delivered this year. The tsam has developed a new progromme ftx Early Years children worklng with a specialist Early Year5 teacher. with provision focussed on Tullie gaI￿ries* spaces and collections. The new sessions cover arL nature. SCKial history and stwtelling arKJ are d￿gno￿ to give pupils a fun. sens(Ky and hands on ex[erien￿ whilst vistirwj the museum. Bwkings were particularly Str￿ in the autumn temi, helFed by additional ¢xJtreach workshops on Remembrance and the Romans. A fijlty tooked Egypts"an Week and F(*try sessions connected to our Ki￿j Arthur Ex￿￿'b1￿"0n rn￿nded off the year. Virtual assemblies remain very Fx)pular with 89 delivered this year to 2,582 pupils on ten drfferent topcs from Prehisttiy to C￿￿rian Gec4ogy. spar￿ The Carli$le Local Cultsrnl Edutatitin Partnership part of Tullie's orwng commitment to leaderthip colLiboratk)n y￿th partrws across the city, the museum's learning team has kd ￿ development of an L￿p (Local Culbjral Education Partnetship) ftr Cadisle, supwted by fundirwJ from Arts Ctxjncil Englar￿ Vkl Curious Minds and the Cumbria County Counal. L￿P$ aim to deliver high quality, Joined-up acbvty for chIld￿n and young Fewle that supwrts creativty and enhances weilbeirvj. The partnership is made up of arts and Cu￿Ure organisations ar)d fomlal education provKkn, aksngsKJe stsff from Carfi* Cty and Cumbria County CcMJncils. The partnership delivered its first event in Marth with a family day at Inglewcrf)d Infants kny)l. Over 120 t￿k part in free Families Tullie's family pr(•Jramme continues to grow with 8,523 partiapatiTrJ n the museum's programme of events during the year (an incTease of 125% on last yearfs numbers). HighlBJhts have induded summer programme themed ar￿n￿ the or￿ up￿ A Hanet exhibition which drew on museum's natural Saen￿ collection for inspiration. Leaming and commercial teams detivered two p)pular thristmas fun weekends, whith saw over 400 people in attendance. The year el￿d with 1,400 people attending February hatf term events. Funding from Cumbria c￿nty Cwnal alk)wed LL5 to run Wdiday ktivity and Fty)d' rryramme5 during the Easier arKJ SumThv scknl h)lidays. This pfovKled free activity arKI fr¥)d for children in receipt of pupil premium. li- TULUE HOUSE MUSEUM AND ART GALLERY TrUST COMPANY LIMITED BY GUARANTEE TRUSTEES, REPORT (INCORPORATING ThE sfRATEGIC AND DIREcfoRS' REPORT) (CONTINUED) China Engagement Programme Tullie's Partnership with the Lancaster University CL￿f￿lUS InstitLrte continues. Ajongside ts¥o weekly adult larguage classe5 arKI virtual language programmes ts 5dK￿)ls. our kingua9e tutor delivered Chir￿se New Year assemlAie5 to 987 wpils in January. In the same week over 350 visitors helped welcorrE in the Year of the Rabbit durir#J Lunar New Y&ir celebra￿n5. Young People This year Tullie worked with the Museum of Youth Culture, ￿Nc and Free Radicals ￿ a contemFL)rary collecting prOJ￿t, gathering k)cal photographs a￿1 objects that reyesent teing young in Cumbria, with a particular f¢XUS on the LGBTQ+ communty. Supportoj by t￿ museum's Young Prc¥Jucers, this ojett has resulted in signtficant engagement with rew audien￿ of young people. Several new ideas have grown from the inrtial colkth.ng projert indudiTrJ a Fts)ds to the PortstAe A￿tiquItieS Scheme. wthith Cumbria invdves Tullie, as we jcqntty h05t a Finds Lbaison off￿r with our museum colleagues in Lancashire. We are very grateful to the British Museum and the Heritsge Fu￿1 ts SUFf￿1ng this important reghj￿1 programme. Our arthaedogical reath also extends to being artNe participants in the Hadrian'5 Wall Partnership Board, wtwch oversees the vital Management Pkn for the UNESCO Worfd Heritage Site. Together with partners. we have t*en devew'ng a 10 year inveStr￿t plan, which will hoKEfully irKlude the opportunty for TU11￿ to benefit from &)rderlands Growth Funding. 15- TULUE HOUSE MUSEUM AND ART GALLERY Trusr COMPANY UMITED BY GUARAfiTEE TRusfEES' REPORT (INCORPORATING THE STRATEGIC AND DIREcfoRS' REPORT) (CONTINUÉD) Jr partnership with Sa￿enza Univergty in Rome understaftdab￿ relaxed over the Covid-years but IS On￿ again looking to regenerate in 2023. Our stsff have been invrted to speak at the University's Annual Cortferen￿ and we are optimisbc that. desptte the changes being planned Project Tullie, students will be able to Vigt us in the summer. other significant partnerships. ￿ as Lancaster Unr¥er￿ty Confvcius Irtitute are covered elsewhere in this report. Coilectively all our partnerships. rn matter small. SUPFQrt our desire to extend our re*1 and make Tullie, the region s Home of Culture. FUNDED COLLEcfIoNS PRQJEcrs Once Upon A Planet In 2018 Tullie s natu￿ SCI￿ collectffi was Designated by Atts C(xMKil EThJlarnl, kading to t development of a Nat￿1 Lottery Herbtage Fund-fvnded proje¢ Wlkile Ta￿5. which used collectior to explore issues arcmjnd ￿stiC wllubon in c(eans. This inskmred the devdopment of on￿ Upon A Planet, a major twwear projeLt funded by the Esmee Fairbaim Cc41ecbons Fund, administered. by the museUr￿ AssoCiatic￿, that takes a)gagement with natural science collections to a deeper levd. ￿￿￿Sing on Generation Z's writ of protest and F#)Srtive change. on￿ UtK)n A Hanet uses Tullie's collections to wovoke conversation, reflecti￿ and act￿￿ on dimate thange - seen as c￿e of the nY)st critical issues of our time. In year one the Cth￿ U￿n A Planet exh￿)kn￿ twk visitors on a iourw through the b)c￿￿er5e habitats of Cumbria, exploring how dimate change has impacted and, cruoally, how we can all help. The exhibitiorb wa5 CQ-curated with a specialty re(TUited group of Young AdVI￿r5, l¢xal communty group, HeathlaTrJs Trust (a tharity suky)rting alults dsatmlities and neurodiversity), arKI Fyojert partners &Jstainable Carfisle a￿1 Natural England. team used the eXhibi￿n as a catslyst for change. devekl￿ng new ways of thinkn'ng at(•ut climate harvje. sustsinability and CtrCurati￿, ènd embedding Tulbe's Environmentsl Action Plan acr055 all reas of OFeration. This learning will be integral to Proiert Tulli The team developing the exhibibon also worked y￿th formal kaming - two dasses from 3 Iccal secondary school had direct input into Microworlds. a digital interartive dvNdoFed by Lumen Arts and Genetic Mco. Genetic Moo led sewons with young peO￿e which taught basK ccding skills and led to the creation of a microWc￿Id called The Great Migfabon for the exhibition. Tullie's Young ProdLKers with Once Up)n A Hanet by hosbng tskeover youth events during the summer - s￿On5 for young pwple. plan￿￿ arKI delivered by young people. These induded art workshops. sound recordirvj sessi￿￿ and film nights that all link&J with O[￿e up￿7 A Planeys themes of dimate crisi5 SL￿Ina]y1ty. Museum staff undert￿k training from Oimate Museum UK trj C(m5ider how to emw climate char¥Je narratsves across colleC￿n5, and ways that the Museum coukl take direct artKJn. This inspired us to knk at how we communicate the dimate cms, habitat and speoes loss, and sustsinability throughout the exhibition and prcJtreach visits have ensured contstt and relati￿shIpS with schoo15 have stsyed strong. Sentor leaders from a(yoss the consortium have prowded support for the museum and wid& culture sertor in Cumbria and beyond, Wing aThl contributing to a wtde iarwje of nthot*s and specialist group& These ir￿ude Cumbria LEV5 Creative and Cultural Sector Panel,. Carlisle cu￿Ure,. Cumbria Arts and Culture Network and Kendal Futures. The DireLtor of Wordsworth Trust has continued to Co-manage Museum DevelopM￿t North and d￿1r the Cumbria Mwm Dirlxtors Gro￿. Progress has been made towards development of a Net Zero Strategy for CMC. with Building Energy Audits undertaken at each museum. These will form the basis of the strategy. which will be developed during 2023-24. Work has tegun to respond to the fecommendations within these reports. Next steps will indude a detsiled dats coltection exercise to quantify each museum's carb)n footprint. Thi5 year has seen CMC Successful￿ reapply for Arts Council NFfl ststus, meaning that partnership will continue to recave reguLar funding of £1,187,313 per annum until 2026. The process saw a team of senK)r stsff W￿knng dosely together to shape an activty pr(¥Jramme fc* the next three years, with tsrgets, success measures arKI a ckar shared misyon: Creating Cu￿ra1 change, together. STrATEGIC REPORT The following sections for achieveffÉfts and pwf(ThrKe and financial review form the strateg report of the tharity. FINANCIAL PERFORMANCE The oFerational outcome for the year is a net dekn before rrf)n-recvrTing income of £449.000 (2022: net deficit of £246,000). These deficits in the kist two years were materially offset by items of income arising from events that are unlikety to recur. DuriTrJ the year this non-recurriThJ income ar05e from rebate of bjslt￿S rates relatin9 to pric￿ years of £302.IKM) aThJ from an addIt￿nal management fee of £800,000 from the Oty Ccmjnol along&de its transfer to the rwseum of the empty and somewhat dilapidated freehold prOFert￿ in Castle StreeL In 2022 the non.recurriThJ incc¥rE comprised coronavirus support grants of £204,000. c￿eTaIl this meant that there was a net surplus of unrestricted funds of £653.000 (2022: r￿t defftit of £42,(N)O). The Inueased deficit in operational outcorrE tefore these n￿-r￿rr1n9 items arose primarily from a further redurtw of £150,0￿ in the Carfisle Ctty Cwnol fee for managing the collections and in(￿Sed energy costs of £180,Crf)O, offset by Improv￿ eamed incorre and reductions in other operating costs. While the Tntst had budgeted for the redu￿ marwent fee. the 125Wo increase in erergy costs managed through a group scheme by Cumbna County COU￿1[ was unexpected and has significan￿Y impacted the future finanaal txojections in the Trusys bU￿neSS plan. As vigtor numbers continue to improve follo￿.￿j the pandemic, all areas of earned income have increased in the year. Signiftcanty, the trjmover of the TrèdiTrJ Compan￿5 commercial activittes increased by £94,000. or 64% and resulted in an intreas￿ profit donated to the Trust of £48,CKJO (2022 £42.000). Ajthough museum admis5M)n numbers are still onty 58% of pr&pandemic levels. due to a new admission priarvJ strategy adopted in mid-2019120. income fr(Kn admission tickets saw a 9% increose on the income generated in that year. 23- TULLIE HOUSE MUSEUM AND ART GALLERY TRUST COMPANY LIMITED BY GUARANTEE TRusfEES' REPORT (INCORPORATING THE STRATEGIC AND DIRECTORS, REPORT) (CONTINVED) Overall, induding restricte(J fvnds. the resuts show a net surplu5 of £1.204,000 {2022.' net deficrfc of £147,000). Net re5tncted incorr* t￿5 expendrture of £551.(KW) (2022: net expeThliture of £105,000} represents timing differen￿5 between re￿Vir￿j and spending restricted funds principalty those relating to upfront fijndIr￿ for Project Tulle. The trend of operating and overall results for the last five years, showing the impatt of the non-recurring items is set out in the tsble befow: 2018119 E'ooo 19120 £'o 20￿121 £'o 2021122 £'o 2022123 £'ooo Operating surplusl(deficit) before nortrrecurrtng Income- ￿restTl(ted funds (i) 313 {246) {449) Coronawrus felatEd svpport grants 755 204 Ontroff management fee for work on buil(fings transferred to Tullie .Business rates rebatp for wior years Op£ra¥ng surplus/{defivt) after no reojrrlng Income- unre51rittEd furtd5 302 (i) 320 {42) 653 Restrlcted Income le55 expelld￿re lerall net surplus1(defi¢it) 35 97 170 {105) {147) 551 417 949 1,204 The Trust s total reserves at the year*nd were £3.121,IKK) (2022: £1,917.CW). totsl reserves are made up of unrestricted reserves of £539.CM)0 {2022: £615,000}. desKJnatsd reseryes of £1,403.000 (2022.. £674,&￿) and restritt￿ funds of £1,179.(MX) (2022: £628,000). Details of the breakdown of these fijnds can be found in Note 26. RESERVES POLICY &ith year the trustees consider the amount of unrestricted reserves to des*Jnate to cover the costs of particular projelts induded in the bU￿neSS ￿an. In addition. the trustees considu leve15 of risk a550ciated with major categoiies of income and exFwdItU￿ c￿priS￿j the bu(*Jet for the year ahead and the latest bu&ness Flan and (Jerive from that assessrrtht a target range of free resetves. This tsrget range is ￿rrentlY set at £250,fKIO to £350,000. The reduct￿ of £150,rKK) in the annual management fee from Carlisle ljty Council folowed cuts of £50,000 in 21122 and £IOO.¢))O in 20121. gI￿ng a totsl reduct￿ of £300,000 over the last thr years. These reductio￿ coincth with the pandemic and subsequent recovery ￿lod when the ability to eam income to ￿Place this redu￿ fee wa5 sever& limited. The strategy adopted by the trustees to wnter these reducti￿5 in the management fee secure financial sustainability in the medium t￿ffl, is to prc#Jress Projert Tullie. Amcwnts have teen set aside as designated reserves to fvrml the initial costs of the project. The balance of reseNes deggnated ft)r this pu￿ stands at £419.000. and these fvnds are exFetted to be defrayed over the two years. TULUE HOUSE MUSEUM AND ART GALLERY TRiisr COMPANY UMITEO BY GUARANTEE TRusfEES' REPORT {INCORPORATING THE STRATEGIC AND DIRECTORS, REPORT) {CONTINUED} The trustees also dwnate reserves hekl behaff of the Cumbria Bitidiversity Data Centre of £154,000. There are some ggnificant risks to fu￿re ￿￿ling that CBDC receive5 following the Local GOvern￿t restructuring in Cumbria and the trustees constder these reserve5 to be appropriate to cover these Fctsntial futwe redLKtions in funthThJ. After setting aside designated reseNes, the T￿naIni￿ unrestricted reseives amount to £539,000 of which £190.CKIO is the value of fLxed assets which are not available to use, leaving avaikble free cash reserves that am¢yJnt to £349,LK)O. This is within the target range for free reserves. However, the trustees expert that the levd of free reserves ￿11 frdll below the target range dunng the next years as attention is focused on Phase 2 of Proiect Tullie. Accordingty. ttrK)rough cash flow forecasts have been prepared to ensure that the Trust maintairs 5ufficiert Iiquklity to tover its owakn'onal Project Tullie related costs. Investment Policy The trust holds an investment Kcount whth is revie￿￿1 regularfy by the trustees. RISK MANAGEMErir I significant acbvitres undertsken by the Tn￿ are subject to a pmr risk review before implementation. Major risks identified are Tanked in tern￿ of their potential impart and likelihc*>J. The follNtiw framework is central to a)suring ad&]uate rsk management: Regular monitoring of maix risks ￿ adopti￿ of mitigating measures induding disaster recovery Flans. Embedding rith identsfication and assesgnert within operating prrxedures. A dear stnjcture of ddegated thrity and contrd. Maintsining reserves in line with set ￿1cle& The risk register is regularly review￿1 by tx)th the A￿[t and Ri* Committee and the Trust Board. Appended to the main Tullie strdtegic and operatb)nal risk register are ¥eafic registers for both Cumbria Museum Consorbum activty arKI Project Tullie. The oJrTent top risks identified are.. Failure to meet fundraisi￿ tsrgets - the lower number of visitors returning to the museum Jst.lockdown results in redLKed income for the Tr￿ The Project Tulk"e (*velowents are also at risk if fundiThJ for each phase is rx)t wred. Increased cost of supplie5 afKI services. ThI￿JIr￿j hNJh leve￿ of infiation - costs are increasing in all areas whi15t earned iruKrt has reduced, resu￿Ing in a 4ueeze on budgets. This risk applies equally to the capital costs invofved in next two phases of Projert Tullie. Changes In national or ￿al govemment px)li(y leading to a loss of fvnding and support for museums - Cumbria has undergone a kKal govemment review resulting in Carfisle Counal being subsumed into Cumttrfand CourKil. Trustees and the Director have worked hard to estsblish effective communication with the new membets aTrJ offi￿S to ensure that all key personnel are aware of c4Jr impart and the need ￿ continued supwrL TULLIE HOUSE MUSEUM AND ART GALLERY TRusr COMPANY UMITED BY GUARArirEE TRusfEES' REPORT (INCORPORATING THE sfRATEGIC AND DIRECTORS. REPORT) (CONTJNUED) FINANcfAL INSTRUMENTS Objectives and policies The Trust's activities exFrf)se it to a nunthr rf finarKial r￿kS t￿ludIng (redit risk aThl cash flow risk. The use of financial derivatNes Is by the d￿rI￿5 polioes approved by the Board of trustees. Cash tlow risk The TrusY5 activities exrK>se it primarity to ￿ financial risks of interest rates. Interest ￿rIng assels aThJ liabilities are hekl at fixed rates to ensure certsinty of cash flow. Credit ri The Twst's wincipal finanoal assets are bank balan￿ and cath. trade and other receivables ond investments. The trustees have consKler&J the risks that affert the day-to-day operations and have implemented prLKedures that are aFVCQTiate to tr* SI￿ of the tharity. TULLIE HOUSE MUSEUM AND ART GALLERY TRUST COMPANY LIMrrED BY GUARANTEE TRvsfEES' REPORT (INCORPORATING THE sfRATEGIC AND DIREcfoRS' REPORT) {CONTINUED) srATEMENT OF TRusfEES' RESPONSIBIUTJES The trustees (who are also the dirrftor5 of Tull* House Museum and Art Galw Trust for the purposes of company law) are responsible for preparityj the tntstees, report and the finanaal ststements in accordance with applKable law arKI United Accounting Stsndards (United ngdom Generally Accepted Accounting Pracb￿), i￿ILKI1r￿J FRS 102 Tr finanaal Reporting Stsndard applicable in t￿ UK arKJ Rewblic of Ireland". Company law requires the trustees to prepare finanoal statements for each financial year. Under company law the trustees must not approve the finanoal ststements unless ty are satisfied that they give a true and fair wew of the state of affairs of the Charitab￿ company and of the incoming resources and application of r£sources, induding its incC￿e and eX￿dthre, of the charitsbfe company for that wifyj. In preparing these financial ststeMa￿, the trustees are requlred to: • 5elert 5ufftable accounting tdioes aTrJ apply them CO￿51endY. observe the methods and principles in the Charitre5 SORP; make Judgements and e￿iMate$ that are reasonable and prudent: state whether aPF4icable accounting stsndards, (￿pris1￿j FRS 102 have teen followed. subjert to any material departures disdosed and explaine(l in the finaroal staterrtnts: and prepare the financial ststeM￿ts on the going cOn￿M basis ￿lesS it is inapwoprsate to presume that the charitabFe company will continue in bugnes& The trust￿ are responsible for keeping yoper accounting r&ords that can dtsdose with reasonable accuracy at any time the financial [M)s￿on of the tharitable company and enable them to ensure that the financial statements compty ￿th the Companies Ad 2006. They are also respL)n5ible fc* safeguarding the assets of the charitable ccffipany and hence for tsking reasonable steps for the Prev￿tiOn and detection of fra￿1 and cther irregularitES. DISCLOSURE OF INFORMATION TO AUDrroR &ich trustee has taken steps that tlw ought to have taken as a tru￿ in order to make themselves aware of any relevant audit informkn.ffi and to establish that the tharity's auditor is aware of that information. The trustees confim that there rel￿ant informatiw that they know of and of which they know the auditor is iKioware. REAPPOINTMENT OF AUDITOR In accordance with section 485 of the Companies Act 2006, a resolution for the re-appolntment of DavKI Ajlen as auditors of the charity is to ￿ proFosed at the forthc(Jning Annual General Meeting. Theo beha nual repxt was approved by the trustees of the tharty on 28 Juty 2023 and signed on its by: Mr J Smith CVO Trustee AMThom Trustee DL 27- TULLIE HOUSE MUSEUM AND ART GALLERY TRUST COMPANY LIMITED BY GUARAPITEE INDEPENDErir AUDITOR'S REPORT TO ThE MEMBERS OF TULUE HOUSE MUSEUM AND ART GALLERY TRusr OPINION We have audited the finarKial Stat&)￿ts of Tullie House Muwjm aNI Art Gallery Trust (the 'charitable parent companv) and its subsidiary (together the 'gr¢JJP') for the year ended 31 March 2023. which ci>mprise the con￿lIdated statement of financial actiMties {induding the inmme and expenditure account), Consolidated balance shrt Bala￿e sheet, Consolidated statement of cash flows and Notes to the financial statements, induding a summary of significant a(￿JntiThj policies. financial reporting framew(Kk that has been appl￿d in their preparation is United Kingdom ounting Stsndards, comprisng Charitses SORP - FRS 102 7he Financial Reporting Stsndard applicable in the UK and Repubk of Irefartsj, and applKabk law (United kn'ngdom Generally Accepted Accounting Practice). In our opinion the financial ststements: give a true and fair view of the stste of the group's and parent tharity's affairs a5 at 31 March 2023 and of its incorning resources aPp￿.Cation of resources. ind￿d￿9 its income aTrJ expenditure. for the year then ended. have been tffoperly wepared in accLYdarKe with Un"rted ￿ngdoM Generally Accepted Accounting Practice; and have bw prepared in xcordance with the requirtyn￿ts of Companles Act 2006. BASIS FOR OPINION We conducted our audit in accordan￿ with Internatio￿ StsThJards on Audtbrnj (UK) (ISAS (UK)) aThJ applicable law. Our re¥￿sit￿lItieS under tkne standards are further desuibed in the Auditor's resrx)nsibilth'e5 for the audrt of the financial statements sectvjn of ￿r reporL We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK i￿luding the FRC'S Ethical Stsrthrd, and we have fulfilled our other ethical resFy)nsitilities in accc*dance these requirements. We believe that the audit evidence we have obtsined is suffi(ient and approwiate to prowde a bass c￿r opinion. CONCLUSIONS RELAfING TO GOING CONCERN In auditing the financial 5tstements. we have conduded that the trustees use of the goiNJ concem basts of accountirvJ in the preparntion of the finanoal statements 15 appropnate. Based on the work we have tErformed, we have Th)t Klentified any material uncertaintss relating to events or conditions that. indmduolly or colleth"vety, may (ast Si9nificant doubt on the group and parent ccmpan*s ability to continue as a g(yng concem for a period of at least twefve rTh)nths from Ythen the original financial thtements We￿ authorised tssue. Our reSpOn￿bIll￿eS and the re¥￿ibl1rOeS of the tru5tee$ 7Mth res￿ to going cLMcem are dwibed in the relevant sectiors of this reiMNt. OTHER INFORMATION The trustees are resronsible for the other information. The other informatN)n comprises the information inclLthI in the annual repor¢ ¢)ts than the financial *atements and our audit￿5 report thereon. Our opinion on the financial statements cover the other information and. except to the extent Othe￿1* expltotly ststed in ow rem we do Tr)t express any form of a55urance C￿dUSic￿ thereon. TULUE HOUSE MiISEUM AND ART GALLERY TRUST COMPANY UMITED BY GUARANTEE INDEPENDENT AUDrroR'S REPORT TO THE MEMBERS OF TULUE HOUSE MUSEUM AND ART GALLERY TRusf (CONTINUED) In ConneCt￿n with our audit of the financial statenEnts, our res￿nSibIlity is to read the other inf0m￿tIOn and, in doing so, consider whether tr£ other infomiation 15 materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materialty misstated. If we identify such material inconsistencies or appa￿nt materK81 misstatements, we are required to detemine whether there 15 a material misststement in the financial ststements or a material misstatement of the other inf0M￿tiOn. If, based on the work we have perfomied, we conclude that there is a material Misstst￿r￿nt of this other InfO￿at￿n, we are requir&J to ￿pOrt that fart. We have nothing to ￿￿Ort in this regard. OPINION ON OTHER MATfER PRESCRIBED BY THE COMPANIES ACT 2006 In our opinb)n, based on the work undertaken in the course of the audit: infomwtion gNen in the Statement of the Chair of Twstees and Museum Dwector and Trustees, report (incorpKsrating the strategic and dirertors, ￿[￿rt) for the financhil year for whlch the financial statements are prepared is consthnt with the financial statements; and the Statement of the Chair of Trustees and Museum Oirector and Trustees. rewrt (irKorpJrating the strategic and dIr￿tOrs, ￿port) have b*n prepared in ￿thrdan￿ with applicable legal requirements. MATfERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the light of our knowledge and understsnding of the group arKI the parent charitabk company and its environment obtaired in the course of the audi¢ we have not Klentified material msststements in the Statement of the Chair of Trust￿5 and Museum DireLtor and Trustees. reFQrt (incorporating the strategic and dirthr5' rewJrt). We have nothing to ￿port in resrect of folowing matter5 Whe￿ the Companies Act 2006 ￿qUireS us to report to you if, in our opinKJn: adequate accounting records have not been kept by the parent tharitsble company* or ￿turnS adequate for our aL*dit have not been received branches not VStbJ by us; or the parent charitable company financial ststeThMts are not in agreement with the accounting ords afK1 retums: or certain disclosures of tru5tee5 remuneration s[￿Ofied ty law are not m￿je. or we have not rereiv& all the information and expknations we require for our a￿￿rt. RESPONSIBILrriES OF TRusfEES As explained more fulty in ￿ Ststement of Trustees. Responsibilities [set out on pa9e 27], the trustees a￿ reswnsible for the preparation of the finanoal stat￿￿￿ts and for beirrfj satisfied that they give a true and fair view, and for such internal control as trustees detemiine is necessary to enable the p￿paratIOn of financial ststements that are free from material misststement, whether due to fraud or error. TULLIE HOUSE MiISEUM AND ART GALLERY TRusr COMPANY LIMrrED BY GUARApifEE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TULLIE HOUSE MUSEUM AND ART GALLERY TRusf (CONTINUED) In Fyeparing the financial statenents, the trustees are reS￿ns￿le for assessing the group's and the parent charitsble companvs abllity to continue a5 a going concem, discS)sing. as appI￿able, matters related to going concern and using the going concern basis of accounting unkss the trustees either interKI to liquidate the group or the parent charitable company or to wse operations, or have no realistic altemative but to do so. AUDITOR RESPONSIBILITIES FOR THE AUDrr OF THE FINANCIAL STATEMENTS Our objectsves are to obtsin reasonable assuran￿ atout whether the financial statenEnts as a whole are free from material misststement, whether due to fraLKI or error. ar￿ to issue an aud¢tor's report that indudes our opinion. ReasOna￿e assuran￿ i5 a high kvel of assuran￿, but is r#)t a guarantee that an audit condurted in accordano with IS45 (UK) will always de￿ a material mi55tatement when it exists. Misststements can arise from fra￿1 or error are cons*Jered material rf, irK1ividually or in the aggregats, they coukj reasonably te ex￿ to Influen￿ the Éronomic decisions of users taken on the basis of these financkil ststements. Irregularities, including fratkl. a￿ instances of non<0mplian￿ with lavds and regulations. We desi9n prcKedures in line wrth our responsibilrties, oudined above, to detect material mi5Staiements In respect of irregukirities, induding fraud. The extent to which our procedures are capable of detectlng irregularities, includirvj fra￿1 is detailed below. Our audrfc procedures were des￿￿ed to respofKt to those identified risks. including non-complian with laws and regulations (irregulartb"e5) and fraud that are material to financK41 statements. Our audit procedures incI￿jed but were not limited to: • Discussing with the Trustees and Managemert their ￿lICieS and proc8Jures regarding complian with laws and regUla￿n5. Communicating identified laws arKI regulatiffis throughoLrt tyjr erwment team and remaining alert to any indications of non<0mplian￿ throughout our audtt: and Considering the risk of acts by the group which We￿ contrary to the appI[cab￿ laws and regulations, Ind￿Jing fraud. Our audit prowlures in relatwjn to fra￿1 but T•vere r#)t linited to: • Making enquiries of the Trustees and manageff￿nt on whethw had knowledge of ary ￿tual, 5U5F*rted or allegej fraud; . Gaining an understanding of the internal controls established to mtyate risks relat8J to fraud,. . Discussing amongst the engagement team the risks of fraud,. and • Add￿sing the nsks of fra￿1 through mawement override of contro15 by performirwJ ioumal entry testing. We are not responsible for detecting fraLxI and preventlng non-complian￿ and cannot te expected to det￿t all fraud arKi non-complian￿ with all laws and regulations. The primary resporssibility for the prevention and detectK*n of irregukrttres indudir¥J fraud rests with both the Trustee5 and Management. As wrth any audit, there remained a risk of non-detection of Ir￿Ularities, as these may Invofve collusion, forgery, intent￿nal omissions, Mlsrepresentst￿jns or the override of internal controls. TULUE HOUSE MUSEUM AND ART GALLERY TRUST COMPANY LIMITED BY GUARAIITEE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TULUE HOUSE MUSEUM AND ART GALLERY TRU￿ (CONTINUED) A fijrther description of our resp￿￿￿[￿e5 is available on the ￿nancIal Reporting Counal's website at: www.frc.(xg.uVaudthrsresprm>bilitie5. This descriptKM) f(￿5 part of our auditorfs report. A5 part of an audit in accordan￿ with ISAS (UK). we exer05e profe5sw)nal ]￿rnent and maintain profe55ional sopticism throughout the audrt. We olso: Identify and assess the risks of material misststement cl the financial stat￿nents. whether due to ftaud or error. design and ￿rforrn audit Pr￿edureS resr*)nsNe to those risks. anLI obtsin audit eviden￿ that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material msstatement resulting from fraud is higher than for one resulting frC￿ error, as fraud may inv(Ive collusion, forgery, intentronal Omi￿ons, misrepresentstions, or the overrlde of intwnal control. Obtain an understsThJin9 of Intemal c(xthl rderfant to the audlt in order to destgn audit procedures that are appropriate in the Urcumstsn￿. but rb)t for the purpose of exp￿SsIng an opinion on the effertiveness of the gr￿p,S internal control. Evaluate the aptKopriatene55 of accounting ￿laeS used and the reasOnabler￿ of ￿Unting estimates and ￿lated disdosures made by the trustees. Condude on the appropriateness of the trustees use of the goirvj concem basis of Kcounting and, based on the audit eviden￿ obtained. whether a material uncertainty exists related to events or condits(x)s that may cast significant (knbt on the gr￿p.S or the parent ttkiritable company's ability to continue as a goirvj (c￿. If we that a material uncertainty exists. we are required to draw attention in our auditorfs report to the related disdosures in the financial ststements or, if 5u(h disck)sure5 are inadequate, to modify LNJr opinion. Our conclusions are based on the audit evthnce obtained up to the date of our auditorfs report. However, future events or conditions may cause the group or the parent tharitsble company to cease to conts.nue as a goiro con￿rn. Evaluate the overall presentstion, structure arKI ccmtent of the financial statements, inc1L￿lTrg the disd05ures, and w￿her the finarKial statements represa)t the underlyirvj transKtions and events in a manrw that achieves fair Eyesentation. Obtsin svffwit appropriate audit e￿den￿ regarding the finanoal infomiation of the entitie5 or business activitie5 within the grcMJp to express an opinion on the financial 5tstements. We are responsible for the directi￿. sUtErvision and perf￿arKe of the gThp audL We remain solety responsible for our audit o&wnion. We communi&ite wth tP•)se charged with governan￿ regardiThJ, among other matters. the planned scope arKI ts.ming of the aLKlit and significant audit findir4Js, IrKI￿￿n9 any sKJnificant deficiencies in intemal control that we identify during our audiL -31- TULUE HOUSE MUSEUM AND ART GALLERY TRUST COMPANY LIMThED BY GUARArirEE INDEPENDENT AUDrroR'S REPORT TO THE MEMBERS OF TULLIE HOUSE MUSEUM AND ART GALLERY TRUST (CONTINUED) USE OF OUR REPORT This report is made solely to the charitable went comp￿V,$ tsw%tees, as a body, in accordan￿ with Chapter 3 of Part 16 of the Companies Art 2006. Our aLKIit work has been undertaken so that we might stste to the group's trustee5 those matters we are required to state to them in an auditorfs rem and for no other purr￿e. To the fullest exknt permrited by law. we do not accept or assume responsibilty to anyone other than the tharitatle parent company and ts trustees as a body. for our audit work, for this rep(wt, or for the o￿nionS we have forThEd. ALISON WELTON {sen￿r Statutory Auditor) For and on behaw of David Mlen Chartered Accwntants & Statutory A￿l￿or Dalmar House Barra5 Lane Estate Dalston Carfi4e CA5 7NY -32- TULLIE HOUSE MUSEUM AND ART GALLERY TRUST COMPANY UMrrED BY GUARANTEE CONSOLIDATED sfATEMEKf OF FINANCIAL ACTivrrIES FOR THE YEAR ENDED 31 MARCH 2023 (INCLUDING CONSOUDATED INCOME AND EXPENDMIRE Accoupif AND sfATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES) Total 2023 Total 2022 funds funds Note Income and Endowments from: tjonations. legacies and grants re￿1Vable Charitsble artiwties other trading artivities Investment income Other income 48,026 1,998.080 240,411 16,916 1,554,052 I,EQ2,078 1.998,080 240.411 16,916 855,182 1,215,143 146,443 5,826 Totsl income Expendi￿re on: Raising funds Charitable actiwtses Rates appeal rebate Totsl eXpendi￿re Net incomel(expendrture) Tran￿eT$ betr￿ fijnds Other recognised gain5 and losses Exhibition tsx refief 2 303 433 1554 052 3 857 485 2 272 863 {267.806) (267,806) (177.065) (1.736.875) (1.1)05,339) (2,742.214) {2.278.045) 302 235 io 1005 339 2 707 785 2 455 110 fal,987 (2,505) 548,713 2,505 1,149,7 (182,247) 15 Net movement in Reconclllatlon of funds 653,027 551,218 1,204,245 (146,660) Totsl funds brought foTh¥ard 1289 077 628 115 1917 192 2 063 852 Total funds carri￿1 fcKward 26 1 179 333 3 121437 1917 192 -33- niLLIE HOUSE MiISEUM AND ART GALLERY TRusr COMPANY UMTTED BY GUARAfifEE CONSOLfDATED sfATEMEKf OF FINANCJAL ACTivTfiES FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED) (INCLUDING CONSOLIDATED INCOME AND EXPENDMIRE ACCOUNT AND STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES) Total 2022 Income and Endowments from: Donations, legacies and grants recevable Charitable activities Other trading actmties Investment income Other income 193,306 1,215,143 146,H3 5.826 661,876 855,182 1,215,143 146,443 5,826 Totsl incoTh Expenditure on: Raising funds Charitsble activities 1610 987 {177,065} 1510275 {177.065) 2 278 045 Totsl expenditure 2455 110 Net expenditu Transfers betr4een fijnds Other recognlsed galns and losses Exhibitions Tax Relief (76.353) (994) (105.894) 994 (182.247) 15 Net moverrtnt in fvnds Reconciliation of fvnds {41,760) (104,900) (146,660) Total furKIs brought foTh¥ard Ti)tsl furKls carried forward 1.330.837 733.015 2 063 852 1289 077 628 115 1917 192 All of the grwp's acbvibes derive from o)rtinuiro owations durir*J the above IMI ￿r￿￿ts. The funds breakdown for 2023 and 2022 ts SI￿ in rwjte 25. TULLIE HOUSE MUSEUM AND ART GALLERY TRusr COMPANY UMfTED BY GUARANTEE CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2023 2023 2022 Fixed assets Tangible assets Investments 18 19 759,959 621,088 1.063,247 924,376 Current assets Stocks Debtors Cath at bank and in ha￿1 20 21 12,271 728.818 11,791 417,388 935 564 2,541,719 1,364,743 Creditors: Amounts falling due within one 22 483.529 371.927 Net current assets 3 121437 1917 192 Funds of the 9r(Aip: Restricted irKX)me funds 1,179,333 628,115 Unrestrirted Income nds Unrestricted fur￿ 1289 077 Total funds 26 3 121437 1917 192 TULLIE HOUSE MUSEUM AND ART GALLERY TRusr COMPANY LIMTTED BY GUARArirEE CONSOUDATED BALANCE SHE￿ AS AT 3114ARCH 2023 (COlmNUED) The financpl statements on pages 33 to 70 were apwoved by the trustees, and au￿rised for issue on2 Juty 2023 and signed on their behay by: Mr A J Smith CVO Trust AMThom Trustee Registration number: 07568957 -36- TULUE HOUSE MUSEUM AND ART GALLERY TRUST COMPANY LIMrrED BY GUARANTEE BALANCE SHEET AS AT 31 MARCH 2023 2023 2022 rixed assets Tangible assets Investments 18 19 759,959 621,088 303 289 1.063.248 924,377 Current assets Debtors Cash at bank and in hand 21 769.626 1 761 159 456,673 2.530.785 1,355.'167 Credltors: Amounts falllng due within one 22 362 352 992 815 3 121437 1917 192 Funds of the tharlty: Restricted income funds Restrthd funds 1.179.333 628.115 Unrestrlcted Income funds UnrestriLtsI funts Total funds 26 3 121437 1917 192 The charitstAe company generated a net n￿veMert in fimmls for the finanaal year of £1,204,245 (2022: {£146,660)). -37- TULUE HOUSE MUSEUM AND ART GALLERY TRUST COMPANY LIMTfED BY GUARANTEE BALANCE SHEEf AS AT 31 MARCH 2023 (coririNUED) The finanoal StateM￿ts on pages 33 to 70 were approved ty the trustees, and authorised ftr Issue JU￿ 2023 and signed on thwr behlf by: J Smith CVO Trustee Ms C A M Thomson Trustee RegistratK)n number.. 07568957 TULLIE HOUSE MUSEUM AND ART GALLERY TRUST COMPANY UMTfED BY GUARAiffEE CONSOLIDATED STATEMEtrr OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023 2023 2022 C•$h flows from operdtlng artivities Net cash irKomel(expe￿l[tUre) 1,204,245 (146.660) Adjustments to cash flows from nonJnised until ther those conditions are fvlty met, or the fv1fi1￿It of th)se conditi.ons is wholly within the wntrd of the tharity ar¥J it IS [￿0b￿)[e that condition5 wll be fulfilled in the reporting pertrxl. -41- TULLIE HOLISE MUSEUM AND ART GALLERY TRusr COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL StATEMEfits FOR THE YEAR ENDED 31 MARCH 2023 {CONllNUED) 2 ACCOUNTING POUCIES (continued) Grants are rwnised when the tharity has an ￿titlernent to the fvnts and any c￿litionS linked to the grants have been met. Where [Erfc￿￿rKe ccKNJitiors a￿ attached to ￿ grant aThJ are yet to be m¢ the inceffle is recognised as a lia￿lty and induded on the batsr￿ sheet as Ikferred income to be released. Whwe entstlement to a grant rxcurs tdore Incon￿ is received. the income is accrued. Grants which have u*J to purthase assets ￿ for cawal expendthre purpM are recctyjnised when ￿1Ved. Depr￿at￿)n is then ext*nsed against thi5 over the u5efiJl economic life of the assets. The remaining balance shown under the relevant grant ￿￿ling heading in re5trKted funds, will rep￿sent the Net Bcok Value (NBV) of ￿ asset expens•J. GiftaAI Incoming restyJrces from tsx redatms are inclLKled in the a￿t￿nent of financial at the san time as the gift to whith tty rdate. Interest on fur#ts held on (*posit is includ￿1 when rewvatde WKI the amount can be measur&J reliably by the charitsble company; this is normaty ut(ffi notifi￿tion of the interest paid or payab by the bank. Where income is received in thnce of entitleM￿t ￿ receipt its reccgkn is deferred aThJ inchjded in Credito￿ as deferred income. Income from charitable acbvitEs corrwse of museum admission charges and other fees and charges arisiw frLwn the delivery of act￿lt￿ arml seThice5 ts it5 beneftiaries. Expertditure All expenditijre is recconised tse is a legal or constructive ob1wJa￿n to that expenditure, it is probable setvement is required and the amount can be measured reliably. All costs a￿ allocated to the applicable expenditure ￿dIng that aggregate similar costs to that category. Where costs cannot be direcuy attributed to particular he￿ing5 they have been alknated on a basis consistent wrf(h the Use of resources. with central staff costs allocated on the basts of time spenL and depreciation charges allocatoj ￿ the p)rtion of asseys use. Expenditure on raising funds indudes the costs of al tradirwj xbvitjes. -42- TULLIE HOUSE MUSEUM AND ART GALLERY TRiisr COMPANY UMrrED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED) 2 ACCOUNTING POUCIES (continued) CIMr•table artlvltles Charitsble expenditure comprises those ccsts wb)Jrr8J by the (hm in the delivery of its artiwties and servi￿5 for its beneficiaries. It indudes tM)th costs that can be alIc(3￿1 direttly to artivities and those costs of an iThlirect nature neces&7ry to supp)rt them. Support costs Support costs indude central functions which have be￿ allLKated cffl a ba515 consistent with the use of resources. example staff cost by time spent arKI other costs by their LW. Governance costs are costs inojrred on the chariws educational cyeratWS. I￿l￿d1Th9 9JPPOrt Costs and costs relating to the govemance of the (haiity aprortKJned to charitabie attivities. Consortium income and expenditure Tullie acts as the lead daimant in a consc*tium daim for Cumbrian Museums to the Arts Council England. The dairns receiv￿ on behalf of a￿1 paid to cther con9JtMJm members th rnt form rt of these accoun Taxation The thanty is con$dered to pass the tests set ojt in Paragraph I schedu￿ 6 of Finance Act 2010 and therefc*e it meets the definit￿ of a charrtable company for UK c￿•ra￿.0n tsx Pu￿K￿$. Accordingly. the tharity is potentially exempt from taxation in reSF*tt of Ir￿Me or capital gain5 received within categories covered by Chapter 3 Part 11 of the CoryNxation Tax Act 2010 or Secbon 256 of the Taxatyon of Chargeable Gairs kt 1992, to the extent that income or gains are applied exclu5ivdy to Charitab￿ purrmj Tangibk fixed assets Tangible fixed assets costs.rwj £5￿ or more are initially meagjred at cost arthj are suwuently measured at COSt or valuation, net of deprttotion and any Impainy￿tlo5s. A review for ImpairM￿t of a fixed asset Is carried tyjt rf events thanges In urcumstances indicate that the carrying Val￿ of any fixed asset may not be recovetable. Shortfalls betbveen the carryirHJ value of fixed assets arKI their recoverable amounts are reco3n1￿ as impairment& Impalm￿lt losses are recognised in the statement of finar£k?l athwties. Depreciation 15 provid&J on tangible fixed assets so as to 7Arite off the c05t or valuation, le55 any estimated re￿dUal vath, over their useful econ(￿￿ life as frA10￿5. Fixtures and fittir¥Js Leasehobj property improvements Equipment 10 years straight line 10 years straight lir 5 Yea￿ stratght line -43- TULLIE HOUSE MUSEUM AND ART GALLERY TRusr COMPANY LIMITED BY GUARANTEE NOTES TO THE FJfwiciAL sfATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED) 2 ACCOUNTING POUCIES (continued) Freehold wopty was purchased in year for £1. Thi5 FS not depretiated. These assets a￿ rec¢gnwl at C05L Cepreciats'on on the assets is not tharged until they are browht into use and redasyfied to freehotd or leasehold propety improvem￿ts. Investments Fix8J asset inVestm￿ts are a f(XTn of financial instrument and are initialty recognised at their transaction cost and subsequendy measured at fair value at the balan￿ sheet date, unless fair value canrKJt be measured reliab]y in whith case it is measured at cost less impairment. Subsidiary wthrtsknng5 are valu￿1 at cost less wovis#)n for impairmenL Operating leases Rentals under ￿ratiry ka5es are d￿ryed to the stat￿n￿t of financial athitses on a straiglt line basis over the ￿ase terni. StOLk is valued at the lower of cost an(1 estimatsj selling prKe less casts to comFIth and sdl, after due regard for obsdete ar￿ ￿0W ff￿Ing #ocLs. Trade debtors Trade debtors and other debt¢ys are recognised at the settle￿t amount after any trade discount offe￿. Prepayments we valued at the prepaid net of any trade discounts due. Cash and cash equi¥alents Cash and cash equivalents comprise cash ffi hand and call deposits. and other short-term highty liquid investments that are readty convertible to a known amount of cash and we subjert to an insignificant risk of change in value. Trade uedito Trade creditors are obligations to pay for gcKMJs c* services that have been acquired in the ordinary course of bugness from suppliers. Accounts payable are dasstfied as ojrrent liabilities if the (harity dces not have an ur￿C￿di￿rk￿l righL at ￿ end of the re￿￿"n9 per￿, to defer setdement of the creditor for at least fr￿1ve monttrLS after the ￿portir0 date. If there is an uncond¢tirmal right to defer settlement for at least twdve months after the rer(rtirKJ date, they are wesented as nonn charye ￿presents the amounts payable by the company to the fund in respect of the year. In addition the ccmnpany operates a defin&J ber￿rt scheme for emthees. The assets of the scheme are charged to the statement of financial 2Ltiwties ￿ as to spread the cost rf penSIc￿ over the savice live5 of em￿oYees. Varihtiorfj from the regular msts are spread ovw the average experted remaining working lives of current memLws of the sdieme. Financial instruments The charity has fir￿￿lar assets and liabilities of a kind that qualfy as basic finarKial instwments. Basic finanaal instruments are in￿alty recognised at transactM)n value and subsequentW measured at their settleM￿t value with the exceptiw of bank knns whith are subsequently measured at amorbsed c05t usry the effecbve interest rnte method. Employee benefits Termination b￿erits are recognised as an expense in the statement of financial actsmty immediately. Termination benefits are recojnised as a liakn'lity and ewse when the charity & demonstrably committed either to temiinate the employThent of an em￿oyee or grc4Jp of employees before the nomial retirement date or to provhje teminalion beneffts as a result of an offer made in order to encourage voluntsry redundancy. Termination ￿neffits are measured at the best estimate of ￿ expenditure that W￿ld be required to settle the obligation at the rewjrtiry date. In the co5e of an offer made to erKour3ge voluntary redundancy, measurement is based on the number rf empknyees expthd to 0￿pt the offer. When temiination benefts are due r￿re than 12 months ats the end of the rwting Fwic*J, tw shall be measured at their diswjntal present value. TULUE HOUSE MUSEUM AND ART GALLERY TRUST COMPANY LIMrrED BY GUARANTEE NOTES TO THE FINANcfAL STATEMEIITS FOR THE YEAR ÉNDED 31 MARCH 2023 (CONTINUED) 3 INCOME FROM DONATIONS, LEGACIES AND GRANTS RECEIVA8LE Totsl 2023 Totsl 2022 Genernl Donation$ Donations - unrestrirt ACE grant Natural Sciences Project Bi(KJiversity Curator WallCAP Bubble aThJ Me CWAAS Community Grart on￿ Utmm a Hanet Bath House Uncoverbng Roman Cadisle Thriving Communities Purthase of tkxldJ Herbatlum Whale tales ckrtart aitiThJ ts Trairs Again, by Charfe5 Oakley, 1984 Apprenti￿ Funding The Leat￿rSeIlerS Company Charitsble Fund HO￿ Street Volunteerirvj futtwe5 Pilgrim Trust Cadisle LCEP Wild ExaFe Steps to Sustsinabilty John Ellerman Foundation Project Tullie Culture Recovery FurKI Apprenti￿ fu￿ling Cumbria County C(KJrKil c￿ra1 grant 36,026 36,026 406.521 38,345 15.000 29,514 406,524 3,583 15,¢J)O 15,472 500 6,667 61,235 406,521 38,345 15,orxJ 6,667 28,115 6,667 28,115 9.308 46,144 22,$46 52,500 2.506 32,881 10,885 46,144 3,256 (2.500) (2.500) 3,5C￿l 8.3(K) 8.300 5,988 245.000 14.203 6,000 2.700 200 44.850 675.955 23,077 245.OQ) 14,203 2.7¢XI 2(KJ 44,850 675.955 153.792 2,000 1554 052 1602 078 855 182 TULLIE HOUSE MUSEUM AND ART GALLERY TRusr COMPANY LIMTfED BY GUARAKfEE NOTES TO THE FINANCIAL STATEMEfits FOR THE YEAR ENDED 31 MARCH 2023 (coimNUED) 3 INCOME FROM DONATIONS, LEGACIES AND GRANTS RECEIVABLE (continued) Waiting for Trains Again. by Chartes Oaw, 1984 is thown In the at#Ne breakdown as (E2,5Crt)) due to recognition of an expected grant in the 202112022 accounts, however upyt receipt of the grant we have onty r&eived 50%. Project Tulle f￿ling totsl of £675.955 I￿ludeS the following amounts - Future High Streets Fund £200,000, Town Deal Fund £265.246. Arts Ccwncil (A￿) £136.289, matth fv￿1￿￿ of £250 and National Lottery Heritage Fu￿1 £74,170. 4 INCOME FROM CHARITABLE ACTivmES funds Total 2023 other fees armj charges Museum admission charges Cadisle Cty Council Manageff￿nt fee Qirlisle Qty Council prot*ity devdcyment fiJKI 236,095 155.404 806,581 236,095 155,404 806,581 1998 080 Unrnstrirted funts Totsl 2022 other fees and charges Museum admis*on charges Carlisle Oty CourKil manawiert fee 208.514 133,809 872 820 208,514 133,809 872,820 1215 143 1215 143 5 INCOME FROM OTHER TRADING AcfJvITIES fund5 General Totsl 2023 Total 2022 Trading income; Trading income generated by Tullie H(A￿e Museum and Art Gallery Trust (Trnding) Limrta -47- TULLIE HOUSE MUSEUM AND ART GALLERY TRUST COMPANY LIMITED BY GUARApifEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED) 6 1NVEsfMErir INCOME Totsl 2023 Totsl 2022 General Bank interest receivable 7 OTHER INCOME Total 2023 Total 202Z Coronmrus Job Retention sd￿le Coronawrus Bu&r*ss grants 15,602 8 ANALYSIS OF EXPENDrnIRE BY EXPENorruRE TYPE Other Totsl 2023 Total 2022 Fundraising expenses Museum operatior 128.767 139.039 878 311 267.806 2 439 979 177,065 2 278 045 1017 350 2 707 785 2455 110 9 EXPENDmiRE ON CHARrrABLE ACTivmES Artivlty undertaken direcuv supptyt 2023 2022 Museum operations Fundraising exp￿ 1.930.405 509.574 2,439,979 2,278,1)45 177 065 2 198 211 2 707 785 2455 110 TULLIE HOUSE MUSEUM AND ART GALLERY TRIIST COMPANY LIMITED BY GUARAKfEE NOTES TO THE FfNAfKIAL sfATEMErirs FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED) 9 EXPENDrnIRE ON CHARrrA8LE ACTIVrnES (continued) Induded in the expenditure anatysed aLM)ve is governan￿ costs of £13.050 (2022 - £13,60)) whKh relate dirertly to tharitsble activities. See ￿te 11 for fUrt￿r detsits. IOOTHER EXPENDITURE funds General Total funds Rates apFeal rebate 302 235 Total for 2023 302 235 302 235 During the year the charity r￿ed a rates appeal rebate of £302.235 bthich covered the rates years of 2012 to 2022. IIANALYSIS OF GOVERNANCE AND SUPPORT cosrs Support Total 2023 Totsl 2022 Surv)rt staff costs Depreaa￿n other costs 246.850 108,2LKI 246.850 108,200 174,538 120,689 384 090 TULUE HOUSE MUSEUM AND ART GALLERY TRUST COMPANY UMrrED BY GUARApifEE NOTES TO THE FINANCIAL sfATEMEKf5 FOR ThE YEAR EIIDED 31 MARCH 20Z3 {coriTINUED) IIANALYSIS OF GOVERNANCE AND SUPPORT cosrs {contlnued) Governance costs funds General Total 2023 Audit fees Audit of the financial Stat￿r￿ts fund5 General Total 2022 Audit fee5 Audrt of the finanaal ststements Other fees paid to auditors 12.(M)O 12,000 12 NET INCOMTNGioITfGOING RESOURCES Net incomiwloutying) res￿r￿ ts the year I￿ude. 2023 2022 Audit fees Depreciation of fixed assets Auditor's remvrtrabon - Grarrt aLKlit Penson costs 13,050 ICK8,200 12,000 120,689 1,600 TULLIE HOUSE MUSEUM AND ART GALLERY TRiisr COMPANY LIMrrED BY GUARANTEE NOTES TO THE FINANCIAL sfATEMEpifs FOR THE YEAR ENDED 3114ARCH 2023 (coritlNUED) 13TRIISTEES REMUNERATION AND EXPENSES Under Artide 6 of the Artid¢s of Assc(iation ts the ￿arty. Mr A Mthy received remuneration of £90,844 {2022: £80.885) his role as Museum D1rert{￿. This king gross salary and emFdoyerfs Fension contributirm. The Museum Director re￿iVeS no remuneration in his role as bijstee. t￿rIng the yew £607 of expenses were reimbjrsed to Or￿ trustee ￿ travd aNJ subsistence 12022: £151 of expenses were reimbljrsed to one trustee fc* travel and su￿Sten￿). 14sfAFF COSTS The aggregate payrcAI costs were as folow5: 2023 2022 staff costs during the year were: Wages and salaries Social security costs Other pe￿On ci>sts 1.381.305 112,679 1,059,877 78,835 1582 235 1 204 426 The monthty average number of persons {induding senior managemert team) employed by the group during the year was as fc4lows: 2023 No 2022 Museum staff 85 63 t)urirvJ year the charty inojrred tem)ination b￿lts payable for loss of employment of £604. Details of the treatment of the tem)ination benefit can be f(rtJnd in the accounting policies. The temination benefits in the year were funded from the charit￿5 UnreStr￿ted gwal fvmds. In addit¥)n duriro the year the (t￿rity Ir￿￿r￿S ex4Jratia payments for ccfftpensat￿ for 1055 of employment of £2,340. -51- TULLIE Hou￿ MUSEUM AND ART GALLERY TRUST COMPANY UMrrED BY GUARApifEE NOTES TO THE FINANCIAL sfATEMEKfs FOR THE YEAR ENDED 31 MARCH 2023 {CONfiNUED) 14STAFF COSTS (continued) The number of emFAoyees whose total ￿l￿)IUM￿lS fell within followirKJ bands was: 2023 2022 No £60,￿1 - £70.OC £70,￿1 - £80,000 The totsl employee beneffts of the key management F*rsonnel of the group £292,147 {2022: £250,216). The totsl number of key managernent ￿sOnnel of the group was 5 (2022.. 4). 15MUSEVM AND GALLERY EXHIBfTIONS TAXATION RELIEF The tompa)y has tskth advantsge of the Musewn and Gallery Exhikntsons Tax Relief whith has resulted in a tsx credi( of £54,￿5 (2022: £35,587) bang recc4Jnised in the finanoal statements. This is in respect of qualrfying expenditure incurred during the finan(ial year. 16AUDrroR'S REMUNERATION 2023 2022 Audit of the financial ststements other fees to auditors Audit-related assurance sermces 17TAXATION The group is a registered charity ar*J is therefore exempt from taxation. 52- niLUE HIJUSE MUSEW AIIDARTfJALLERYIRi 18TAWGIOLE FJXED ASSETS Group and oar T+x•I i 2022 274,717 434 291218 41 15 I,L59,013 At 31 2023 333 186 888 1406085 At I IpDI 2022 15L,t40 If4434 217￿31 ¥J>.925 At 31 Marth 2023 191 243 Ilet book value At 31 Narth 20Z3 759 959 At 31 Narth 2022 74 TULLIE HOUSE MUSEUM AND ART GALLERY TRusr COMPANY LIMITED BY GUARAtirEE NOTES TO THE FINANCIAL STATEMEPITS FOR ThE YEAR ENDED 31 MARCH 2023 {CONTINUED) 18TANGIBLE FIXED ASSEfs (continued) Assets in the course of Construct￿ indudes tr* work completed to date on Phase 2 of Projert Tullie. 19 FIXED ASSET INVEsfMENTS Group 2023 2022 Other investments 303 288 Other Investments Group and Charity investments Total Cost or Valuation At l April 2022 At 31 March 2023 Net book value At 31 March 2023 303 288 At 31 Marth 2022 303 288 Charity 2023 2022 UK Group undertaknngs other investments 303 288 303 288 303 289 The Tnjst IKAds a lorKJ terni dekX)&t of £303,288 at a UK LKFildirvJ SW. TULUE HOUSE MUSEUM AND ART GALLERY TRIIST COMPANY UMrrED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTJNUED} 19 FIXED ASSEf INVESTMEpifs (continued) Details of undertakings t)etrils of the investments in whKh the charity holds 20% ￿ mcffe ￿ the n￿inal value of any da55 of share capitsl are as fdlows: Cwntry of incorpordtion Proportion of vrting Principal rights and shares held activlty 2023 2022 Undertaklng Holding Subsldlary undertaklng Tullie House Museum and Art Gallery Trust England (Trading) Limited Trading activities at Tullte H(NJse Museum i>th'nNy l(XPh IrxJ% The profft for the finarKial ttyiod of Tu11ie Ho￿e Museum and Art Galkry Trust (Trading) Limited was £nil {2022 - £nil} arKI the aggregate arTr)unt of capital and reserves at the e￿1 of the period was £1 (2022 £1). Subsidiaries The profil for the financial ofTullie House Museum and Art Gal* Tnjst (Trading) Limited was £nil aggregate amount of catxtsl and reserves at the en(i of the Feriod was £1. A summary of the trading results are kn bdow: 2023 2022 Tumover and interest Cost of sales. admirbistration costs and irttsest costs Current assets Current liablities 240,411 (240,411) 72.106 146,443 (146.443) 62,314 62 13 Aggregate share capital arKI reserve5 20STOCK Group Charity 2023 2022 2023 2022 -55- TULUE House MUSEUM AND ART GALLERY Trusr COMPANY LIMrrED BY GUARApifEE NOTES TO THE FINANCIAL sfATEMEiif5 FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED) 21 DEBTOKS Gro Charity 2023 2022 2023 2022 Trade debtcxs Due from group undertaknf Tax recoveraL PrepayD￿ts VAT recoverable 58,055 147,448 41,160 54.208 155.929 5thJ,485 137,067 48,731 186,541 79,584 155.929 503,953 186.541 82.657 742 728 818 769 626 456 673 The tsx recoverable amourt indudes £48.374 Exhibition Tax Relief due from 2022123. an additional £6,171 due from 2021122 (reccgnised as an urKler provision in the Statement of finarKial activity in 2022123) due to a thange in tax relief rates. £35.587 due from 2021122 and £65.794 due from 2019120. The 2021122 tax relief has been rrfeNed after the year end. 22CREDrroRS: amounts falling due within one year Group Charity 2023 2022 2023 2022 Trade creditors Taxation and 9xial security Other creditors Accruals 118.205 45,975 3,390 315 959 82.977 20,954 3,847 116.977 45,975 3.391 79,978 20,954 3,847 257 573 371927 362 352 TULUE HOUSE MUSEUM AND ART GALLERY TRusr COMPANY LIMTfED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAROI 2023 (CONTINUED) 22CREDrroRS: falling due withln one year (continued) Defernd income- gn)up 2023 2022 Deferred income at l Apil 2022 Resources defer￿ in the period AM￿jnts rdeased from wevw)us periods 194,053 226.015 216.398 194.053 216 398 Deferred income at ye¥ e￿1 226 015 194 053 Oeferred income relate5 to Carlisle City Counol management fee whith is paid three month5 in advan￿ and therefore retstes to ￿.1 - June 2023. Also induded is a new Patron, Curotorial Income. wedding and event ncome received relating to the 2023124 year. Deferred income. dbarity 2023 2022 Deferred income at l April 2022 Resources deferred in the FerKKI 192.620 224,824 192 620 214,940 192,620 Deferred inco￿￿ at year 224 824 192 620 Oeferred income relates to carf￿1e Oty cc1x￿"1 marwnent fee which is paid three months in advance and therefore relates to April - June 2023. Pjso inthded is a ne•V Patron and Curatorial income received rdating to the 2023124 year. 23CUMBRIA MUSEUMS CONSORTIUM Gr(•up and charity 2023 2022 Ba￿rt￿ forward Arts C(yJrKil England grant received ￿ tthalf of ttE C¢￿￿%1]￿￿ members Consortium income Consortium expenditure Amounts patd to other Consortium member5 10,168 19,371 780,792 77,577 (87,115) 780.789 77.582 (86,785) 780 789 630 57- TULLIE HOUSE MLISEUM AND ART GALLERY TRUST COMPANY LIMITED BY GUARAPUEE NOTES TO THE FINANCIAL STATEMEPIYS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED) 23CUMBRIA MUSEUMS CONSORTIUM {continued) This balan￿ arise5 from a grant from the Arts CO￿11 EnglarKI to the Cumbria ML￿m5 Con50rtnJm ITullie House as lead, The Wordsworth Trust and Lakeland Arts) under the National Portfolio organisa￿n {NPO) to deliver a prcMJramme of acttrvities in the area Such as AudErKe DeveloprnenL ildren and Youn9 People a￿1 Resllie￿e. The ftyures noted atove relate to the running costs incurred by the museums in the Consth"um. 240BUGATIONS UNDER LEASES AND HIRE PURCHASE CONTrACTS Operating rA>mmitments Total flrture minimum lease payments umler non Provided by Carlisle aty Cwntil fty the increased costs in operatlThJ from the addiknonal properties. Restricted Funds National Portfol￿ (>wisatson5 . BalwKe cl annual furKliThJ frcrfn Art5 Counol England. Curatorial and Collections DeVeloP￿￿t - towards the development and display of the Museum's collecttons. Thts fvnd providej the matth funding fvr ￿ Costume Gallery Fwjert. Whale Tales - Grant from National Lottery Heritsge Fund toward5 the Whale Ta￿$ Project. This is an engagement projec¢ worknThJ with schools to creats a film exhibiti￿ about Driggsby the Finn %thale from the Tullie collertion. Hope Street - Partrwshi) fvnding frcrfn Curbxts Minds to te a lead Part￿ for the Hope Streets engagement project. Th￿ is on cffganisaticffial development prcgramme which aims to test. refine and embed rbew models of youth arKI leadership arhl thaThJe the way pather museums engage th young people. Costume Gallery - Grant funding from (KNS Wotf50D. Cumbria L￿al Entsprise Parknership {CLEP) and GarfEld Weston the development and instsllatM)n of ￿ rew C0￿Me gallery. ￿ remaining batsno represents the Net Boc* Value of the C051ume Gallery assets. Bubble and Me - Grant to fijrther the opportsjnities fvr yourrfj FeOtAe to explore ithtity. bejonging and their 5erfje of communty through a suies of (reative wojec Community G￿t- Grant received for the Tullie Health, Wellbaw and Communty Programme. BIc4Jlverslty Curator- Grant re￿¥01 towards the costs of a tifyJi¥ersity tyrator. WallC4P . Sutrthitrartty Ne￿astle unib*￿ to delNer new £crt￿t to its pemanent Roman Gallery. TULUE HOUSE MUSEUM AND ART GALLERY TRusr COMPANY UMITED BY GUAIiAPITEE NOTES TO THE FINANCIAL sfATEMEPUS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED) 26 FUNDS {continued) Natural scien￿ Project - a new initiatyve that will uncover stoties from Cumbria's anoent history thrc4uh an exceptw)nal geok)gy and palaeontdtyy collection held at the Museum. The project will focu5 on enhanong documentation and digibsation of the 9eoW colkrtion as well as developing research projects. digitsl engagemerrt and YLhooi session Once upon a Planet- Grant r￿FIed from the Esmee Fairbaim c01krth)￿ FurKI. The grant is for two years for the Once upon a Planet proiert to rase awareness and understanding of the dimate crlsis. Bath House Unc0￿1n9 Roman Carlisle - Grant recov&J from Carfth Qty Counal for ￿ 18 month project uncoverirKJ the ranains of a rcrfnan bath hwse. Thrlvirrfj CommUn￿eS - for recruibnent of the Comrwnty Development Worker. Purchase of Dcth.J Herbarium . Grant receNed from curn￿a we5tmorla￿l Ants'quarian and Archaedogical Sooety ICWAiS), Levens L
    Jramme run by the Sc(ial Enterprise Academy. The aim of the prcrtjramme is to help get a new incomfrgervatiThJ initkitive off the ground. Cadisle LCEP - Grants from Curit￿ts Pffjnds WKJ Ojnbria Cwnty C(￿r￿lI to supp)rt the work of the Cadisle LCEP {Local Cultmral EdLKatM)n Partrkwthip). The puryJ)se of the LCEP is to bring together schools ant1 fcrnal leaming prO￿d￿5 With arts aThJ cuknre organisats.ons to better join up provtsion for children and young people in the oty. Funding will be used to deliver activity, promote the partnership and provide paid support vjith Coordinatic￿ arKI admin. TULLIE HOUSE MUSEUM AND ART GALLERY TRusr COMPANY UMITED BY GUARAPUEE NOTES TO THE FINANCIAL sfATEMEI4TS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED) 26 FUNDS (fA)ntinued) Volunteering Futures . Brir4Js toget￿ 10 strategic pathers to ddivu a largtr92le, ambitiOUS programme of volunteering in the cultural sector across the county. It is a two year project that will improve community wellbeiThJ. grow capaoty and y￿k￿Or￿ diversity auoss the Cumbrian culture sector and breakdown barriers to Volunts￿r￿￿ that exist across a large, ccrfnplex, Nral county. £4,967 of the funds have been spent to purthase assets in year. Wrthin the year end balan￿ is £4,222 reflecting the Net &xd( Value of this asse The Leathersellers Compw a)aritsble Fund - Grant for CCI￿[￿on on the archaeol¢>JKal leather collection carried out by conservators at the Leattrw ConservatiM Centre WI￿ out an assessmen¢ trainirvJ and gradThJ sLheme for the cotlertion. Project Tullie Fubjre High Streets Fund - Grant r￿￿ed over two years to support the CaPTtal devdownent plans for the sts. £57,936 of the funts have been 5rent to kxjrchase assets in the year which are w)cluded in assets in the course of construction. Project Tullie . Town ￿1 Fund - Grant received over three years to SUPF(Wt the Ca￿ts1 development plans for the site. £37.552 of the funds have been spent to purthase assets in the year wh￿h are incIL￿￿￿ in assets in the course of c(X￿1￿￿. Proiett Tullie . Match fundirKJ . Grant to suppryt the capital devdcynent plan for the site. Project Tullie - Arts Councli Eryland - Grant recaved to SUFWrt the capital development plans for the Site. £74,638 of the fvnd5 have 5F*nt to purchase assets in the year whith are irKluded in assets in the course of conthction. Pro)￿ Tullie - National Lottwy Heritage Fund - G￿t to 5UPP(wt the Ca￿ts1 developrrffit plan for the site. Unrertricted Fund$ CCC Cultural Grant- Grant Cumtyia County C(#J￿11 to sutp*( the operath)n of Tullie Hcmjse. Cu￿￿re Recovery FurHJ . Tr fu￿ling wa5 deggned to ojtural institutN)ns can recyen after prolonged periods of dosure, to ensure the fu￿re weseThat￿ and sustsinabilty of the oryanisation and to ensu￿ value for ffl0￿ in the (ryanisatK)n's future 9Jsiainability. TULLIE HOUSE MUSEUM AND ART GALLERY TRusr COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 3114ARCH 2023 (CONTINUED) 26 FUNDS (continued) Transfers £2,505 (2022: £994) was transferred from unrestritted fvrhjs to restricted to xcount for the OversW￿ on certain restrirted pro￿ts. 27ANALYSIS OF NEf ASSETS BEfwEEN FUNDS Group Total funds Restricted at 31 Marth General De51gnated funds 2023 Tangib￿ r￿ed assets Fixed asset invesiments Current assets Current liabilitE5 189.113 303,288 529.952 19.532 551,314 759,959 303,288 2,541,719 1.383,748 628.019 Totsl net assets 1403 280 1 179 333 3 121437 Total funds Restrirted at 31 March 2022 Unrestricted funds Tangible fixed assets Fixed asset investmts Current assets Current liabil￿5 188.796 303.288 494,670 371927 1038 430.254 621,088 303,288 1364,743 672,212 197,861 Totsl net assets 614 827 628 115 1917 192 -67- TULLIE HOUSE MUSEUM AND ART GALLERY TrUST COMPANY LIMrrED BY GUARA14TEE NOTES TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (coFtriNUED) 27ANALYSIS OF NEf ASSETS BETWEEN FUNDS (continued) Total funds Restricted at 31 March funds 2023 General Designated Tangible fixed assets Fixed asset investm￿ts Current assets Current liabilities 189,113 303,289 519,018 19,532 551,314 759,959 303,289 2,530,785 1,383,748 628.019 Totsl net assets 1 179 333 3 121437 Totsl funds Restrirted at 31 March funds 2022 Unrestricted funds General Designated Tangible fixed a55ets Fixed asset investments Current assets Current liablities 188,796 303.289 485,094 362.352 2,038 430,254 621,088 303,289 1,355,167 362,352 672,212 197,861 Total net assets 614 827 628 115 1917 192 TULLIE HOUSE MUSEUM AND ART GALLERY TRLIST COMPANY UMrrED BY GUARAi¥fEE NOTES TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (COPmNUED) 28ANALYSIS OF NET FUNDS Group At i Aprfl 2022 rinanclng 4sh fk)ws At 31 March 2023 sh at bank and in hand Net debt At l April 2021 rinancing cash flows At 31 March 2022 Cash at bank arKI in harKI Net debt Charity At i Aprfl 2022 Flnandng cash flows At 31 March 2023 Cash at bank arxl in hand 1761159 Net debt 862 665 1761 159 At 31 March 2022 At l April 2021 Financing cash flows Gish at bank and in hand 898 494 Net debt 110 665 898 494 TULUE HOUSE MUSEUM AND ART GALLERY TRusr COMPANY UMITED BY GUARANTEE NOTES TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED) 29 RELATED PARTY TRANSACtIONS Group t￿ring the year the group made the fdk)wing related party transactions: Museum Director In his role as the Museum Threttor. the th.rth receiv&J ￿munerat￿)n and benefits in the year arywnting to £90.844 (2022: £80.885). Mr C J Harrison (TNstee) [￿rIng the year there were a number of tran5aCtiws ¥￿th Harraby Green Asscoates Limited. company in s%thich Mr C J Harrison is a dirertor. totalling exFeThJiture of £3.438 tr archttthral and quantity sutveyor work This was paid during the year. Two patron payments of £l,&)O wwe received in the year frcm chr￿topher Harrison Gn)up Limited, company in which Mr C J Harris￿ is a director. Charity During the year the charity made the following related party transartiCffl5: Tullle House Museum and Art Gallery Trust (Trading) Umited At the balance sheet date the am¢Junt due frcm Tull* H(yJse Museum and Art Gallery Twst (Trading) Limited was É54,208 (2022: £48,731). Museum Dirertor In his role a5 Museum Dirertcr, the f*r&tor rttaved remuneration and benefits in the year amounting to £90,844 (2022: £￿.885). Mr C J Harrison (Trustee) During the year there were a number of tsansxti￿s with Ha￿abY Green AssLKits Limited. a company in which Mr C J Harrison is a director. totrlling •re of £3.438 for ard)itthral and quantity sur¥eyor work This was paid (kning the year. Two patron payments of £i.orxs wwe received in the year fr(Th Chri5tofv Harrison Group Limtsd. a company in which Mr C J Harriscfft is a directrx. 30SECURrrY The grant received from the Arts C(xJnol Engla￿1 for Project Tullie is S￿￿red by a ￿ed charge dated 14 De￿rnber 2022 over the leasehoid and freehold properties Wd by the Trust. -70-