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2022-03-31-accounts

Museum of London Archaeology

Report and Financial Statements

Year Ended

31 March 2022

Company Number 07751831 Charity number 1143574

Museum of London Archaeology

Report and financial statements for the year ended 31 March 2022

Contents

Page:

Museum of London Archaeology

Charity information

for the year ended 31 March 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Board of Trustees and Directors

Sharon Ann Ament Rosamund Blomfield-Smith (Chairman, MOLA and MOLA Northampton) Victoria McGuiness Graham Love William McKee Melvyn Ewell Dr Carol Bell Shahina Farid Professor Cyprian Broodbank (appointed on 1 July 2021)

Alison Gowman, Peter Stewart and Paul Rodgers are directors of MOLA Northampton and attend Museum of London Archaeology Board meetings.

Interim Chief Executive

Stephen Parry

Registered Office

Mortimer Wheeler House, 46 Eagle Wharf Road, London N1 7ED

Company number

07751831

Charity number

1143574

Bankers

Lloyds Banking Group, 4[th] Floor, 25 Gresham Street, London EC2V 7HN

Auditors

BDO LLP, 55 Baker Street, London W1U 7EU

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Museum of London Archaeology

Strategic Report for the year ended 31 March 2022

The Trustees present their Strategic Report, Directors' Report and financial statements for the year ended 31 March 2022.

Review of the business

Museum of London Archaeology (“the Charity”) along with its subsidiary charity MOLA Northampton are hereafter referred to as “the Group”. The principal activity of the Charity and the Group continued to be that of providing archaeological services in furtherance of its charitable objects which are to benefit the public through education in archaeology and the historic environment.

The Trustees adopted a new strategic plan in December 2020 to help achieve this overarching purpose. The strategy identifies three game-changing initiatives which have carried on into 2021/22. These are supported by a new digital strategy, development and fundraising plan, Communications plan and Quality and Commercial plan. Performance against the Strategy and Budget is reported and scrutinised by the Board throughout the year using measures of financial performance, market success, process and systems efficiency, and people development.

The year to 31 March 2021, was one where the Group progressively recovered following the Coronavirus pandemic and its results in the second half of that year improved. 2021/22 has a continuation of that trend. As shown in the consolidated statement of financial activities on page 22, the Group recorded a surplus of £943,078 for the year ended 31 March 2022. Whilst performance has improved across the Group, significant Infrastructure projects including the Blackgrounds site of HS2 and further work on the A428 have been influential. This return to profit has enabled the Group to begin to rebuild its retained reserves. The consolidated balance sheet on page 23 of the financial statements shows the group's financial position at the year end. Net assets have increased to £3,803,943 in 2022. However, there was only a small cash inflow over the year of £54,280 due in particular to amounts outstanding at the year-end.

The group continues to work with a set of key performance indicators which include regular review of chargeability, project margins and key business estimates including project forecasts. This helps to ensure reliable financial information and business improvement.

Principal risks and uncertainties

The Group and charity are subject to various risks and uncertainties during the ordinary course of its business, many of which result from factors outside of its control. The group’s risk management framework provides reasonable (but cannot provide absolute) assurance that significant risks are identified and addressed.

An active risk management process identifies, assesses, mitigates, and reports on all aspects of risk. Key risks and the implemented appropriate controls and risk governance techniques are discussed on pages 15 and 16 of this Annual Report and Accounts.

The Directors, who are also Trustees for the purposes of the Charities Act 2011, present their report of the Directors and strategic report together with the audited financial statements for the year ended 31 March 2022.

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Museum of London Archaeology

Directors Report for the year ended 31 March 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Charity, Museum of London Archaeology (MOLA) is constituted as a company limited by guarantee and is governed by its Memorandum and Articles of Association. The Charity was incorporated on 24 August 2011 and registered with the Charity Commission on 30 August 2011. The Charity began operating on 1 November 2011. This was the effective date of transfer of the assets and undertakings relating to a former division of the Museum of London (registered charity number 1139250), into the new Charity; this transfer was governed by the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE).

The Charity has an active, subsidiary company limited by guarantee, MOLA Northampton Limited, in which it is the sole shareholder. MOLA Northampton was incorporated on 10 October 2013 and registered with the Charity Commission on 6 January 2014. This subsidiary, which is also a Charity registered in England and Wales (company number 8727508, charity number 1155198), has identical charitable objects to those of MOLA. It began operating on 20 January 2014 which was the effective date of transfer of the Northamptonshire Archaeology business unit of Northamptonshire County Council, which had operated for some 38 years, into MOLA Northampton. This transfer under TUPE of assets and undertakings, including 50 staff, followed a competitive bid process wherein MOLA was selected by the County Council as the preferred partner to acquire the unit. The Charity MOLA Northampton is an integral part of the Charity’s overall group activities; its Statutory Accounts and Directors’ Report for the period ending 31 March 2022 have been filed separately with Companies House and the Charity Commission.

The Charity also has a subsidiary company MetroMOLA Limited, which transferred to MOLA from the Museum of London as part of the TUPE transfer in 2011. This subsidiary, originally established to represent MOLA’s regional UK activities, has ceased to trade, and the company is maintained as dormant.

The Charity and its subsidiaries are collectively referred to as Group within the Report and Financial Statements.

It is the intention of the Group to transfer the assets, liabilities and business of MOLA Northampton into the Museum of London Archaeology to simplify the Group’s operations. It is anticipated that this will occur before the 31 March 2023 year-end.

Governance

The Charity is governed by a Board of Trustees who are also Directors of the charitable company. A range of business, financial and communications skills is ensured at Board level. The MOLA Articles stipulate that the Board shall comprise not less than three and not more than twelve Trustees. Trustees may be appointed either by Ordinary Resolution or by a decision of the Trustees and hold office for a term of three years. Retiring Trustees may be re-appointed but not for more than three consecutive terms of office. General meetings are required to pass a resolution to remove a Trustee. Ordinary resolutions can be passed by a simple majority and special resolutions, which require filing at Companies House, require at least 75 per cent of those eligible to vote in favour.

Members of the Board are reimbursed for out-of-pocket expenses, such as transport costs to attend Board meetings, but are otherwise not remunerated.

New Trustees (Directors) sign a Declaration of Eligibility statement which includes confirmation that they have read and understood the HMRC Guidance The ‘Fit and Proper Persons test’, a basic guide for charity managers. An induction is arranged for each new Trustee, which includes relevant briefing documentation and familiarisation meetings.

The Trustees and Executive Team maintain and update an Induction and Board Operations Manual (IBOM) which brings together key induction information; the Group’s policy statements and principles of financial and risk management; the current Strategic Plan; procedures relating to the appointment of Trustee; the operation of the Board and its Committees; the Board Code of Conduct; and delegated authorities granted via Powers of Attorney and the Group Authority Matrix. There is an annual evaluation of Board performance and the IBOM is reviewed and updated annually.

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Museum of London Archaeology

Directors Report for the year ended 31 March 2022 (continued)

Governance (continued)

Directors who served the Charity during the period were as follows:

As part of its governance the Charity uses a Board Committee structure which during 2021/22 incorporated five standing sub-committees:

The Board met six times over the period from 1 April 2020 to 31 March 2022 with an overall members’ attendance rate at Board meetings of over 90%.

Membership of the sub-committees varied over the period due to resignations and appointments of Directors. The numbers of meetings, number of Charity members represented and overall (MOLA Group) attendance rates of each subcommittee are summarised below:

Sub-Committee Number of
Meetings		 Number of
Charity
Members		 Overall
Attendance
Remuneration Committee 1 1 100%
Audit & Risk 5 Between 2-4 85%
Developer Services 4 Between 2-3 96%
Research & Engagement 4 Between 3-4 84%

To ensure that any actual or perceived conflict is properly identified and managed as appropriate, a Register of Board Members’ Interests is maintained and are disclosed and reviewed by the Board annually or more frequently as required.

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Directors Report for the year ended 31 March 2022 (continued)

Museum of London Archaeology

Executive management

The Executive Team of the Charity for 2022 comprise the Interim Chief Executive, Finance Director, Director of Research & Engagement, Director of Developer Services, Director of Infrastructure, Director of Research, Commercial Director, Head of HR and Chief Digital Officer. This team is responsible for setting team and individual targets and performance measures to address and deliver the Strategic Plan goals as well as providing for the strategic and tactical direction of the Group which itself is set out in an annually prepared, Board-approved Budget and Three-Year Business Plan.

The above represent the Key Management Personnel of the Group and the Key Management Personnel of the Charity.

The aggregate remuneration of the Key Management Personnel for 2021/22 was £768.3k, which is disclosed in accordance with the Charity SORP in the notes to the financial statements.

The Charity is a Registered Organisation in the Chartered Institute for Archaeologists’ (CIFA) quality assurance scheme. The Board has affirmed its commitment in this regard in a resolution stating: “The Board of Trustees and Directors resolves that all archaeological work by MOLA and MOLA Northampton shall be carried out in accordance with the Code of Conduct and other By-laws of the Chartered Institute for Archaeologists.”

Remuneration policy

Executive Team remuneration falls outside the general MOLA pay structure and is the responsibility of the Board’s standing Remuneration Committee. The Remuneration Committee Terms of Reference were approved by the Board in 2012, and specialist, independent advice was taken in setting pay policy and principles. The Remuneration Committee has determined that pay for the Executive team shall be: tightly aligned to the delivery of MOLA’s strategic goals and pay decisions for MOLA generally; consistent with internal relativities; affordable, with growth in reward aligned with profitability targets; reflect the mid-term nature of MOLA’s strategic challenges; and transparent, consistent, fair and free from discrimination.

The Remuneration Committee annually considers the individual growth and success of the Executive Team in their roles, pay decisions for MOLA generally and pay in comparator organisations and roles. Pay decisions are referenced against comparator organisations, the total cash and cumulative value of base pay, any ‘pay at risk’ and pension provisions. Reward may include provisions, where appropriate, for professional development in line with MOLA’s organisation development needs. The Remuneration Committee meets at least twice annually, to consider pay proposals for budgeting purposes for the year ahead and again to review organisational and individual performance on completion of accounts to ratify or finalise pay decisions. These meetings take account of the economic climate and the Charity’s short- and medium-term work forecast, and benefit from analysis and market information sourced by an independent advisor to the Remuneration Committee.

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Museum of London Archaeology

Directors Report for the year ended 31 March 2022 (continued)

OBJECTIVES AND ACTIVITIES

Charitable objects and public benefit

The objects of the Charity (which are set out at Article 3 of its Articles of Association) are to benefit the public through education in archaeology and the historic environment.

The Trustees have taken into full account the Charity Commission’s guidance on public benefit in determining the Charity’s short and long-term plans. Accordingly, the Trustees adopted a new strategic plan in December 2020 which set out MOLA’s overarching purpose, to create archaeological knowledge and to benefit people and society through sharing that knowledge. The strategy identifies three game-changing initiatives which have carried on into 2021/22. These are supported by a new digital strategy, development and fundraising plan, Communications plan and Quality and Commercial plan. Performance against the Strategy and Budget is reported and scrutinised by the Board throughout the year using measures of financial performance, market success, process and systems efficiency, and people development.

For the financial year to 31 March 2022, activities to further the Charity’s objects included:

(i) Archaeological investigation and the creation of new knowledge:

The Charity delivers a programme of investigation, discovery and research into below-ground and built heritage. Much of this work relates to opportunities that arise through the planning process and are directly or indirectly commissioned and funded by property developers, construction companies, infrastructure builders and aggregates sector professionals, from both the private and public sectors. This leads to a wide variety of fieldwork and post-excavation research projects, which generate new understandings and new knowledge about the past. These projects also generate organised archives of information which then form an invaluable educational resource for future research enquiry. These activities are directly aligned with Government policy, which affirms the invaluable contribution that heritage activities carried out as part of the planning process contribute to the social, economic and cultural life of the nation.

Our aims for our Developer Services teams for the year included:

(ii) Widening access to research:

The Charity delivers an ambitious publication and research engagement programme which aims to widen the findings of our studies in ways which support a public sense of identity and place. The programme includes two long-standing citizen science initiatives, plus contribution to the popular Zooniverse citizen science platform, academic and non-specialist monograph publication, peer-reviewed journal articles and book chapters, magazine articles, radio and television features, exhibitions, soundscapes, digital and other multi-media outputs, as well as PhD opportunities, and consultancy opportunities for community members.

MOLA adopts a synthesis-based approach to research to make its findings more readily accessible to both academic and wider public audiences. In addition to publishing through its own imprint and peer journals, the Charity disseminates results through public lending libraries, local societies, its own website and a wide range of other digital and social media channels.

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Museum of London Archaeology

Directors Report for the year ended 31 March 2022 (continued)

OBJECTIVES AND ACTIVITES (continued)

Charitable objects and public benefit (continued)

(ii) Widening access to research: (continued)

Specific priorities for the year 2021/22 were identified to extend both the reach and impact of the Charity’s work and the educational and public benefit of its research and findings. These focused on achieving a key set of objectives:

  1. Securing a large share of post-excavation research and public engagement derived from infrastructure programmes.

  2. Securing greater investment in public engagement on standard (non-infrastructure) development-led archaeology programmes.

  3. Securing academic grant funding in accordance with our Research Business Plan, to grow the volume and impact of work and build our relationships with key universities.

  4. Exploring the research potential of our citizen science programmes via securing relevant academic grant funding and Collaborative Doctoral Partnerships.

  5. Extending the audience base of our research and public engagement programmes (development-led and citizen science) via study of the needs of those audiences and targeted design around such needs.

  6. Targeting the focus of our Collaborative Doctoral Partnership Awards to achieve specific outcomes from PhD research projects linked to matters of activism and social justice, including addressing historical biases, exploring ethics and morality, and enabling equal opportunities to participate in society.

  7. Exploring new research and engagement opportunities through the lens of data and its use and reuse (with

  8. a special focus on digital tools and methodologies).

  9. Exploring opportunities for training new graduates and community members in archaeological postexcavation .

(iii) Connecting people and place through archaeology:

The Charity has a strong belief in the power of archaeology to drive critical thinking, to engage with contemporary issues and to give back to communities through the results of our fieldwork and research, as well as through bespoke programmes aimed at improving individual lives, communities and the environment. To that end, the Charity maintains a team of public impact specialists and delivers an innovative range of opportunities for citizens to participate directly in the discovery and investigation of UK heritage, and to receive training and experience in the varied skills used in archaeology.

In 2021/22 engagement activities were delivered across the NLHF Funded Coastal & Intertidal Zone Archaeological Network (CITiZAN), the Thames Discovery Programme (TDP) and a range of commercial and charitable projects. Two overarching target audiences provided focus for these activities, namely:

  1. Citizen Audiences (comprising Key stage 3 & 4 students and teachers, family units, non-English-speaking citizens, individuals local to our offices, and our existing volunteers) .

  2. Sector Audiences (university and field school applicants and current students, international archaeological practitioners, researchers from universities, IROs and national institutions, and charitable & SME partners).

Alongside being responsive to the opportunities that emerged organically through day-to-day charitable business, 2021/22 engagement programmes aimed to:

  1. Investigate opportunities for more immediate, emotive, live-from-site access to the archaeological record and to the Charity’s staff and volunteers.

  2. Build lasting relationships with comparable public engagement providers in the development-led archaeological sector in order to share findings and grow capacity in better serving the UK’s communities and individual citizens.

  3. Invest directly in community members via exploring opportunities to remunerate participants for sharing their expertise in relation to the design and development of the Charity’s public engagement programmes.

  4. Develop a robust methodology for mapping the demographics and needs of local audiences in advance of the pursuit of any archaeological works to ensure programmes are tailored to their users.

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Museum of London Archaeology

Directors Report for the year ended 31 March 2022 (continued)

ACHIEVEMENTS AND PERFORMANCE

Achievements and performance are summarised as follows:

(i) Archaeological investigation and the creation of new knowledge:

2021/22 was a very successful year for MOLA’s investigation of archaeological landscapes both rural and urban, with major programmes of fieldwork taking place from all our offices, providing data with significant potential for further analysis and study.

On infrastructure, the HS2 Central Section excavations at Blackgrounds and Field Farm near Banbury revealed an Iron Age settlement and later Roman small town, the latter with multiple phases of masonry buildings alongside a 10m wide road. This site has been identified by HS2 as one of the most significant on the project, with a wealth of information for future research. The project enabled development of MOLA’s digital ‘APEX’ recording system and our CIFA approved training programmes for ‘new to sector’ and graduate trainees, bringing over 40 previously unemployed people into archaeological careers. Other notable infrastructure-led projects in the year included early works on the A428 Black Cat to Caxton Gibbet Improvements, trenching evaluations along the line of new Anglian Water pipelines in East Anglia and continuing investigations for Thames Tideway in London.

From Northampton the team undertook excavations of several large sites around the perimeter of the town providing more evidence for the evolution of prehistoric, Roman and later settlement activity within this large landscape. Overstone Park to the northeast of the town produced evidence of Roman industry and settlement along an active spring line. Buckton Fields to the north of Northampton and Collingtree and Norwood Farm have added further data and some spectacular finds. Within Northampton work started on the medieval and post-medieval urban site at St Mary’s Court close to the site of the Castle.

The Basingstoke team were occupied in the year with projects in Oxford and a very large trenching evaluation at Manydown to the northwest of Basingstoke.

There were three large projects in London during the year. Liberty at Southwark, close to Borough has been subject to small scale investigations since the 1980s. The site, until recently a carpark, required an excavation to recover the remaining information on the complex of Roman buildings found during earlier phases of work, prior to development. The archaeological investigations revealed a large area of geometrical mosaics; the largest found in London for 50 years. David Neal, the UK’s foremost mosaic expert worked with the field team on the recording and assessment of the mosaics. A press release on the discovery resulted in worldwide coverage. We also started work at 4 Frederick’s Place in the heart of the City of London, which belongs to the Mercer’s Company, and revealed evidence for the development of Roman and medieval properties just off the main east-west road through the city. The other large London project was the excavation of the 19[th] century ‘new’ burial grounds and part of the ‘old’ burial ground associated with St Lawrence Church in Brentford, West London.

The Developer Services team at MOLA includes our geophysicists, geoarchaeologists, geomatics specialists, historic buildings experts and heritage consultants; all of whom have contributed to multiple projects throughout the year. One of note has been the rewriting of the CIRIA (Construction Industry Research & Information Association) Guidance document on Archaeology & Construction, together with CIFA and Taryn Nixon Heritage Works. This high-profile publication changes the language around archaeology from one of purely risk management to opportunity and social value.

(ii) Widening access to research:

After the challenges wrought by COVID-19 and the associated lockdowns, 2021/22 marked a year of important achievements for the Charity, including the output of a variety of published materials in pursuit of our goal to share archaeological knowledge with broad research and non-specialist communities.

The Charity published two books during the year:

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Museum of London Archaeology

Directors Report for the year ended 31 March 2022 (continued)

ACHIEVEMENTS AND PERFORMANCE (continued)

(ii) Widening access to research (continued)

In addition, the Charity published 16 articles, chapters and other formal written outputs :

With regards to research-related awards, the Charity’s monograph Living opposite to the Hospital of St John: Excavations in medieval Northampton 2014 was nominated for Rescue Project of the Year at the Current Archaeology Awards, as was CITiZAN’s NERC-funded Changing Coasts Changing Minds project.

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Museum of London Archaeology

Directors Report for the year ended 31 March 2022 (continued)

ACHIEVEMENTS AND PERFORMANCE (continued)

(ii) Widening access to research (continued)

Of special note in relation to coverage of research and findings at a major scale:

(iii) Connecting people and place through archaeology:

Through 2021/22 the Research and Engagement division continued to meet the needs of citizen and sector beneficiaries of archaeological research. Achievements and performance are extensive, with the Charity directly reaching hundreds of thousands of individuals through in-person and online forms of collaboration and engagement. Long-term programmes including CITiZAN and the Thames Discovery Programme carried on delivering to local audiences, with support from a variety of funders, as well as to national and in some cases international audiences, whilst developer-led projects diversified, as did grant-funded research programmes. A variety of multi-year projects with key public engagement aims progressed or, in some cases, concluded over the

year, including Witch Bottles Concealed and Revealed, Archaeology and Public Benefit Future Leaders Fellowship, City Bridge Trust funding to support over 65+ Londoner groups with Parkinson’s or dementia and Londoners with mental health conditions, Walking Publics/Walking Arts: Walking, wellbeing and community during Covid-19, Changing Minds Changing Coasts, A14 Digital Engagement Programme, Land of the Fanns, Brentford Waterside, and HS2’s Osteolive.

CITiZAN was honoured externally for its achievements including two nominations for Council of British Archaeology Archaeological Achievement Awards . CITiZAN’s Changing Minds, Changing Coasts project was nominated for the Archaeological Innovation Award, and the team was also nominated for the Digital Response to the Pandemic for the Engagement and Participation Award. The former was ultimately Highly Commended.

A handful of critical pieces of work spanning our grant-funded and developer-funded programmes, and tied to the specific objectives of the Charity for 21/22, are described below.

Academic collaborations around world-changing research and engagement

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Museum of London Archaeology

Directors Report for the year ended 31 March 2022 (continued)

ACHIEVEMENTS AND PERFORMANCE (continued)

Academic collaborations around world-changing research and engagement (continued)

Data use and reuse

Networking with public engagement providers

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Museum of London Archaeology

Directors Report

for the year ended 31 March 2022 (continued)

ACHIEVEMENTS AND PERFORMANCE (continued)

Community investment

consultants and community organisations to host accessible and inclusive workshops with local people living around MOLA’s London office to understand their relationship with and interests (if any) in archaeology.

Early Careers programmes

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Museum of London Archaeology

Directors Report for the year ended 31 March 2022 (continued)

ACHIEVEMENTS AND PERFORMANCE (continued)

Audience mapping and tailored public programme design

Citizen science research potential

Live-from-site archaeology

Donations

Throughout the year MOLA activities related to research and engagement projects continued to receive additional support from donors.

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Museum of London Archaeology

Directors Report for the year ended 31 March 2022 (continued)

FINANCIAL AND OPERATIONAL REVIEW

Transactions and financial position

In the year to 31 March 2022 revenues from archaeological services of £24.6m were generated compared to £16.3m for the previous year. Turnover in the year to 31 March 2022 had fully recovered from the impact of the COVID-19 pandemic and was boosted by some significant Infrastructure work, specifically further phases on HS2 and the A428 during the year. As in previous years, MOLA continued to experience a shift in the central London market, with a reduction in the number of larger schemes that have traditionally been MOLA’s prime client sector. Our focus has therefore been shifting in London.

The balance of our market has been changing, however our national and regional presence has allowed us to capitalise and the surplus for the year of £943k (2021 deficit £340k) demonstrates this. Since the year-end MOLA has looked to widen its reach still further through the acquisition of the business of L-P: Heritage LLP on 20 June 2022 with offices in Bristol, Stansted and Chester and a focus in London beyond the large schemes MOLA has specialised in.

During the 2021/22 year we maintained the £1.25m Coronavirus Business Interruption Loan which has given MOLA greater working capital headroom at a time of expansion. Rather than fully repaying the loan MOLA has maintained the working capital benefit and has been making regular monthly repayments since March 2022.

Group Reserves increased from £2.9m to £3.8m. Unrestricted funds increased to £4.0m of which £1m has been designated towards future potential relocation however this designation will be reviewed if MOLA renews its licence of Mortimer Wheeler House. Restricted funds show a deficit of £255k at year end due to projects which are funded in areas especially the CITiZAN project.

Reserves policy

The Trustees recognise that the Charity’s market fluctuates significantly, with substantial impact on revenues and costs but with little opportunity to control those fluctuations. The Charity’s policy is to develop a Reserve to ensure adequate working capital cover, a platform for ensuring staff are adequately remunerated and supported by a benefits package that aids recruitment and retention and sufficient investment cover for immediate business development opportunities and purchasing of capital items. This policy has been justified with the impact of largescale infrastructure work and the strain it can put on cash-flow.

The Group’s free reserves are held for the following reasons:

At its current size and given market fluctuations, the Trustees calculate that the Group requires free reserves in the range £5m to £5.5m to meet these objectives. The Group aims to build up its Reserves through unrestricted donations and trading surpluses and expects to build its reserves further back up towards this target in 2022/23.

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Directors Report for the year ended 31 March 2022 (continued)

FINANCIAL AND OPERATIONAL REVIEW (continued)

Principal risks and uncertainties

Business Risk: Most of the Charity’s revenue is derived from the construction and development sectors, and the volume of work undertaken is affected by economic and market influences. The state of the UK economy has continued to be uncertain. Whilst the pandemic risks have subsided, the UK is now in a period of significant uncertainty due to inflation and the cost of living. Whilst the sector remains buoyant and activity levels and the pipeline look strong there is a risk that in the medium term there will be a downturn in the sector. MOLA maintains a full risk register related to all business, HR and health and safety matters. The risk register is reviewed monthly by the executive team and by the Audit and Risk Committee at all meetings.

Contract Risk: Most of our projects involve uncertainty especially regarding conditions and amount, complexity and importance of archaeology. Many of our larger contracts involve complex contractual terms and conditions and therefore a key risk we face is managing change within our projects and negotiating and understanding commercial and contract terms and risk. The group employs a “gateway” process to evaluate significant new leads and contracts. We also employ a Commercial Director and utilise external legal and commercial advice.

Delivery risk on projects: Project quotations and proposals are evaluated by Senior Project Managers and members of the Executive Management Team. All projects are reviewed at monthly work-in-progress meetings and profitability, delivery, completion and billing schedules assessed. A regular debtor review process addresses our success in collecting cash, and this is also scrutinised by the Board through its Audit & Risk Committee. Failure of clients to pay within a reasonable timeframe or without a justifiable reason for non-payment results in appropriate action which may include initiating legal proceedings and stopping work until payments are up to date.

Staffing Risk: Attracting and retaining suitably qualified staff at all levels within the archaeology sector represents a serious business risk. The Charity’s ability to continue to attract and retain high calibre, skilled and motivated staff, despite an industry wide shortage, will be key to future success and we are addressing this through new recruitment initiatives, expanding our recruitment demographic through the introduction of new trainee roles and a year-on-year strategy of growing archaeological pay and market values for our work.

Business Interruption: The loss of data, records, access to locations or systems would prevent staff from undertaking their normal business activities. The business could suffer interruption due to terrorism attack, fire, flooding, catastrophic event, systems or network failure. Any localised disruption preventing access to a large significant site or contractors’ site could also have an impact on the business.

Safeguarding of Data: Recent years have seen a growth in the use of the Charities’ cloud based archaeological database on large infrastructure projects. This Common Data Environment is now being used by staff working for different organisations plus loan specialists. The introduction of digital techniques and larger projects has resulted in large increases in data.

Our infrastructure is now largely virtualised at all our sites to provide failover and site Disaster Recovery (DR) and to provide scalable and robust IT systems. We have upgraded our internet leased lines at all our sites to provide fast and reliable access to all our cloud applications (emails, Azure backups, Microsoft applications, etc). We have implemented Mimecast reinforcing our email protection and enhancing security against cyber-attacks as well as an email continuity service in case of any downtime with our email provider. We have rolled out safeguards to encrypt our onsite laptops in compliance with GDPR and have regular online training for staff.

Accommodation: The Charity occupies its headquarters at Mortimer Wheeler House in London under a licence. A new licence has been negotiated with the Museum of London and was signed in October 2021. The new licence runs until October 2026. Either party can give 12 months’ notice to terminate the licence. A Property Group sub-committee was established in December 2015 as an ad hoc committee of the MOLA Board, with the purpose of expertly discharging the Board’s ambitions and duties in relation to MOLA’s current and future headquarters and main bases in London and a designated fund established. The need for any continuing designated funds will be reviewed once the merger with the Museum of London Archaeology’s subsidiary MOLA Northampton is completed by the end of 2022.

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Museum of London Archaeology

Directors Report for the year ended 31 March 2022 (continued)

FINANCIAL AND OPERATIONAL REVIEW (continued)

Principal risks and uncertainties (continued)

Financial controls, cash management and reporting of business performance: The business risk from inadequate controls to manage performance and cash generation might lead to losses, fraud, legal action or regulatory intervention. Failure to manage cash flow and achieve profitability targets could result in a loss of reputation and business integrity damaging our credit profile, access to funds and/or ability to fund raise.

Regular monitoring of performance is achieved through monthly management accounts reporting to the Board and committees, especially the Audit & Risk Committee which provides additional oversight. Budgets are prepared annually, and reforecasts undertaken within the year.

In addition, MOLA has implemented controls and processes for all areas of the business including; expenses, purchase ordering, delegated authorities, capital expenditure reviews and scrutiny of overdue debtors.

Health, Safety and Wellbeing : MOLA site staff work in hazardous locations often below ground level, where trenching and shoring equipment is required, and above ground where access equipment is required. Further, the risks from other contractors’ activities (which often involve heavy machinery) are prevalent. Employing staff across a number of sites and a range of occupations, in office-based, site-based and mobile activities often working with machinery, the Charity is highly aware that the risks to health, safety and wellbeing are significant and we manage these through extensive training, robust procedures and third-party verification of our performance and controls.

The Charity continues to employ a dedicated, trained H&S Compliance Manager to support the management team in setting and managing a rigorous H&S regime and is further supported by a Health and Safety team. Maintenance plans for equipment are developed with full regard to legislative requirements and good practice from the Health & Safety Executive. Appropriate insurances are in place and a proactive risk assessment, monitoring and inspection process is implemented for offices and for sites where the Charity is working. A corporate health scheme is in place, and there are regular reviews of sickness statistics, accident statistics and RIDDOR reporting. Further employee wellbeing initiatives include a cycle to work scheme and discounted leisure and health promotions.

Environmental and sustainability policy

The Charity embraces its duty to act as a responsible employer and contractor regarding the environment reviewing environmental and sustainability aims and practice across the organisation on a quarterly basis. The Environmental and Sustainability Policy reflects the aims to design archaeological solutions with minimised environmental impact; conserve energy, paper, water and other resources; maximise the use of renewable energy; require all new building and refurbishment work to improve environmental performance through design, construction and operation; ensure materials used and goods purchased derive where possible from natural, sustainable sources; reduce waste through minimising consumption, re-using and recycling, and by using refurbished, recycled or recyclable products; reduce the use of volatile organic compounds and other harmful substances and eliminate all ozone depleting substances; reduce vehicle emissions and promote the use of public transport; use organic and fair-trade food and drink and ensure that products bought are animal cruelty free where applicable; develop and maintain effective management, target setting and reporting on environmental issues and encourage all staff to work in an environmentally responsible manner and to contribute to improving performance.

Governance

Good corporate governance procedures and processes have been established and implemented as described above, in compliance with all legislation, companies act and charity requirements. These include Board and Board Committee meetings, defined remits for each committee, executive and management procedures and controls, open and transparent Trustee recruitment, segregation of duties and proper reporting as part of risk mitigation processes.

16

Museum of London Archaeology

Directors Report for the year ended 31 March 2022 (continued)

FINANCIAL AND OPERATIONAL REVIEW (continued)

Risk management

A detailed risk register is maintained by the Executive team and scrutinised by the Board through its Audit & Risk Committee.

Related parties

Related party transactions are disclosed in the notes to the financial statements.

Plans for future periods

The Charity has been successful in diversifying beyond its traditional London source of business by expanding its geographical reach via its regional offices, and also into different development sectors, principally major UK infrastructure schemes. This evolution will continue following the acquisition of the business of L-P Archaeology on 20 June 2022. With offices in Chester, Bristol, Stansted and a focus more towards Greater London beyond MOLA’s existing central London specialism, the Group will continue to achieve the benefits of growth and diversification.

The latest phase of HS2 fieldwork drew to a close in July 2022 however there remains significant post-excavation work and the opportunity to tender for wider archaeological reporting on HS2. From August 2022, work under the latest contract on the A428 commenced and there is further work supporting infrastructure development in the UK by the government remains strong in an attempt to kickstart the UK in the pipeline. MOLA will continue to adapt and evolve partnership models to enhance our capacity for delivery where appropriate.

Competition remains strong, for both work and staff resources, and we will continue to invest in our staff and technology in order to remain both competitive and an employer of choice, recognising that our archaeological investigations for developers will remain the principal source of funds available to deliver and expand our research and education programmes. Equally, we will continue to build relationships with our non-commercial funders and with academic and charitable institutions in order to further expand the intellectual and social benefits of MOLA’s work.

With the security of a licence to October 2026, the Executive team and the Board continue to view the central London location as a vital hub for MOLA and the Group’s work.

As reported in last year’s Directors’ Report, we will continue to pursue the three-year Audience Engagement Plan approved by the Board in May 2018 which sets out three high level objectives:

We will also continue to advance the three ‘game-changer’ initiatives identified within our Strategic Plan.

17

Museum of London Archaeology

Directors Report for the year ended 31 March 2022 (continued)

DIRECTORS’ RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report and the financial statements in accordance with the Companies Act 2006 and for being satisfied that the financial statements give a true and fair view. The Directors are also responsible for preparing the financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the group and of the incoming resources and application of resources of the group for that period. In preparing these financial statements, the Directors are required to:

The Directors are responsible for keeping adequate accounting records that show and explain that the Charity’s transactions disclose with reasonable accuracy at any time the financial position of the Charity, and to enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps to prevent and detect fraud and other irregularities.

Financial statements are published on the Charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the group's website is the responsibility of the Directors. The Directors’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

On behalf of the Directors

Rosamund Blomfield-Smith Chairman

Date 9th December 2022

18

Museum of London Archaeology

Independent auditor's report to the members of Museum of London Archaeology

Opinion on the financial statements

In our opinion, the financial statements:

We have audited the financial statements of Museum of London Archaeology (“the Charitable Company”) and its subsidiaries (“the Group”) for the year ended 31 March 2022 which comprise the Consolidated statement of financial activities, Consolidated balance sheet, Charity balance sheet, Consolidated statement of cash flows 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Group and Parent 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.

Conclusions related to going concern

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

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

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

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Report and Financial Statements, other than the financial statements and our auditor’s report thereon. The other information comprises: the information included in the report and financial statement, other than the financial statements and our auditor’s report thereon. 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.

19

Museum of London Archaeology

Independent auditor's report to the members of Museum of London Archaeology (continued)

Other information (continued)

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 this gives rise to 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.

Other Companies Act 2006 reporting

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

In the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic report or the Trustee’s report.

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

Responsibilities of Directors

As explained more fully in the Directors’ responsibilities statement, the Directors (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 determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

20

Independent auditor's report to the members of Museum of London Archaeology (continued)

Museum of London Archaeology

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

Extent to which the audit was capable of detecting irregularities, including fraud

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

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations

21

Independent auditor's report to the members of Museum of London Archaeology (continued)

Museum of London Archaeology

Auditor’s responsibilities for the audit of the financial statements (continued)

or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company’s members those matters 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 anyone other than the Charitable Company and the Charitable Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Heather Wheelhouse (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor 55 Baker Street London W1U 7EU Date 16 December 2022

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

22

Museum of London Archaeology Consolidated statement of financial activities (including income and expenditure statement) for the year ended 31 March 2022

**Unrestricted ** Restricted Total Total
funds funds funds funds
Note 2022 2022 2022 2021
£ £ £ £
Income
Donations 5,003 - 5,003 3,043
Income from charitable activities:
Archaeological services 2 23,680,434 851,324 24,531,758 16,297,399
Government Grant income 3 71,208 - 71,208 1,392,659
Investment Income 4 - - - 1,423
___ ___ ___ ___
Total income 23,756,645 851,324 24,607,969 17,694,524
___ ___ ___ ___
Expenditure
Cost of raising funds:
Fundraising and publicity 5 17,797 - 17,797 15,743
Expenditure on charitable activities
- Archaeological services and investigations 5 22,602,450 1,044,644 23,647,094 18,016,331
Re-organisation costs 5 - - - -
Interest payable - - - 636
_____ ___ ___ ___
Total expenditure 22,620,247 1,044,644 23,664,891 18,032,710
Net income/(deficit) and net movement in
funds for the year		 1,136,398 (193,320) 943,078 (338,186)
Balances brought forward 2,922,179 (61,313) 2,860,866 3,199,052
Transfers - - - -
___ ___ ___ ___
Balances carried forward 4,058,577 (254,633) 3,803,944 2,860,866
___ ___ ___ ___

All of the activities of the group and charity are classed as continuing. The parent company generated a surplus of £63,034 in the year to 31 March 2022 (2021 £810,864 deficit).

The prior year Statement of Financial Activities is provided in Note 20.

The notes on pages 27 to 42 form part of these financial statements.

23

Museum of London Archaeology

Consolidated balance sheet at 31 March 2022

Company number: 07751831 Note 2022 2022 2021 2021
Charity number: 1143574
£ £ £ £
Fixed assets
Tangible assets 8 296,549 199,306
___ ___
296,549 199,306
Current assets
Debtors 10 7,785,375 8,555,306
Cash in hand 3,471,619 3,417,337
___ ___
11,256,994 11,972,643
Creditors: amounts falling due within one year 11 (6,499,599) (8,061,083)
___ ___
Net current assets 4,757,395 3,911,560
Creditors: amounts falling due after more
than one year		 12 (1,250,000) (1,250,000)
___ ___
Net assets 3,803,944 2,860,866
___ ___
Funds
Restricted funds 13 (254,633) (61,313)
Unrestricted funds 13 4,058,577 2,922,179
___ ___
3,803,944 2,860,866

The financial statements were approved by the Board of Directors and authorised for issue on and signed on their behalf by:

9th December 2022

Rosamund Blomfield-Smith Trustee

The notes on pages 27 to 42 form part of these financial statements.

24

Museum of London Archaeology

Charity balance sheet at 31 March 2022

Company number: 07751831 Note 2022 2022 2021 2021
Charity number: 1143574 £ £ £ £
Fixed assets
Tangible assets 8 117,297 72,739
Current assets
Debtors 10 4,019,020 5,487,162
Cash in hand 1,369,318 1,832,991
___ ___
5,388,338 7,320,153
Creditors: amounts falling due within
one year		 11 (4,336,434) (6,285,342)
___ ___
Net current assets 1,051,904 1,034,811
Creditors: amounts falling due after
more than one year		 12 (1,250,000) (1,250,000)
___ ___
Net liabilities (80,799) (142,450)
___ ___
Funds
Restricted Funds 13 (254,633) (70,057)
Unrestricted funds 173,834 (72,393)
___ ___
(80,799) (142,450)
___ ___

The financial statements were approved by the Board of Directors and authorised for issue on and signed on their behalf by:

9th December 2022

Rosamund Blomfield-Smith Trustee

The notes on pages 27 to 42 form part of these financial statements.

25

Museum of London Archaeology

Consolidated statement of cash flows for the year ended 31 March 2022

Note
2022
£
Cash generated by
operating activities
16
Cash flows from investing activities
Interest received
4
-
Purchase of tangible fixed assets
8
(217,906)
___
Cash used in investing activities
Cash flows from financing activities
Loan interest paid
-
Loan finance received
-
Repayment of loan
-
___
Cash generated from financing activities
Increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Reconciliation of net cash flow to movement in
net funds
Increase in cash and cash equivalents
Loan financing
Change in net funds
Net funds at 1 April
Net funds at 31 March		 Note
2022
£
Cash generated by
operating activities
16
Cash flows from investing activities
Interest received
4
-
Purchase of tangible fixed assets
8
(217,906)
___
Cash used in investing activities
Cash flows from financing activities
Loan interest paid
-
Loan finance received
-
Repayment of loan
-
___
Cash generated from financing activities
Increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Reconciliation of net cash flow to movement in
net funds
Increase in cash and cash equivalents
Loan financing
Change in net funds
Net funds at 1 April
Net funds at 31 March		 2022
2021
£
£
272,185
1,423
(64,849)
_
(217,906)
(636)
1,250,000
(107,988)
_
-
___
54,279
3,417,337
___
3,471,617
___
54,279
-
54,279
2,167,299
2,221,578		 2021
£
304,877
(63,426)
1,141,376
_
1,382,827
2,034,510
_
3,417,337
 2021
£
304,877
(63,426)
1,141,376
_
1,382,827
2,034,510
_
3,417,337
___
1,382,827
(1,142,012)
240,776
1,926,523
2,167,299

The notes on pages 27 to 42 form part of these financial statements.

26

Museum of London Archaeology Notes forming part of the financial statements for the year ended 31 March 2022

1 Accounting policies

The Museum of London Archaeology is an incorporated charity registered in England & Wales with the Charity Commission. The address of the registered office is given on the charity information page and the nature of its operations is set out in the Strategic report. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice 2[nd] edition issued in October 2019 and applicable to charities preparing their accounting in accordance with the Financial Reporting Standard applicable in the UK (FRS102 - effective 1 January 2015) the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Charity's accounting policies.

Basis of consolidation

The consolidated accounts include the financial statements of the Museum of London Archaeology and of its subsidiary undertakings MetroMOLA Limited and MOLA Northampton Limited.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

In accordance with the provisions of the Companies Act 2006 the parent charity is exempt from the requirement to present its own profit and loss account. The total income from the parent charitable company for the period was £12,892,889 (2021 - £10,403,332) and the surplus for the parent charitable company for the year was £63,034 (2021 – deficit £810,864).

Going concern

2021/22 has been a strong financial year with the business returning to profitability. Whilst cash generation over the year was only an inflow of £54,280 this was largely due to timing with significant cash receipts shortly after the year-end.

With the expectation of continued high activity levels into 2022/23 the decision was taken to begin scheduled repayments of the CIBL loan facility rather than repaying in full to give the business more working capital capacity. The Group recorded a surplus of £0.5m in the first six months of 2022/23 and with cash levels up to £3.2m in October 2022 and with significant activity expected in the second half of the year and our plans beyond 2022/23, we consider our operations to be sustainable and that there is an optimistic outlook.

The Directors continue to assess the Charity's future programme of works and commitments against the working capital in place. The Directors view the level of net current assets as sufficient to ensure future operations and that the prospect for the business will continue to improve.

27

Museum of London Archaeology Notes forming part of the financial statements for the year ended 31 March 2022 (continued)

1 Accounting policies (continued) Income

All income is recognised once the Charity has entitlement to the resources, it is probable that the resources will be received, and the monetary value of income can be measured with sufficient reliability. Income related to the provision of archaeological services represents the value of work executed for clients during the year excluding value added tax and includes amounts in respect of long-term work in progress as described in the long-term contracts policy below. Donations are accounted for when receivable.

Long-term contracts and revenue recognition

Income is recognised in line with the completion of projects with percentage completion determined using the cost approach. Costs incurred to date are compared to total project cost to completion, with revenue recognised accordingly. Profit is only recognised to the extent that the total project is assessed to be profitable. Provision is made for any future losses as soon as they are foreseen. For contracts where revenue exceeds fees invoiced, the excess is included as amounts recoverable on contracts within debtors. For contracts where fees invoiced exceed revenue, the excess is included in payments in advance within creditors.

Government Grants

Grants are accounted for under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised on the face of the Statement of Financial Activities in the same period as the related expenditure. This includes the Government Coronavirus Job Retention Scheme (‘Furlough’). The group has not directly benefited from any other forms of government assistance.

Expenditure

Expenditure, which is charged on an accruals basis, is allocated between the following expenditure headings incurred direct in the fulfilment of the Charity’s objectives:

Apportionment of expenditure

Direct charitable expenditure includes the direct costs of the activities and depreciation on related assets. Where such costs relate to more than one functional category, they have been split on an estimate of time or floor space as appropriate.

Funds - unrestricted funds

These represent funds which can be expended as the Directors see fit, in accordance with the charitable objects of the Charity. They include funds that were designated towards the anticipated cost of relocating from Mortimer Wheeler House which, under our licence, was to be no longer available after 31 October 2021 however a new licence is in the final stages of being agreed and this designation of funds will be reviewed by the Board.

Funds - restricted income funds

These represent income received which can only be expended for the purpose specified by the donor.

Fixed assets and depreciation

Tangible Fixed Assets are stated at net book value. All tangible assets with a cost greater than £3,000 are capitalised and depreciated on a straight-line basis to write off their cost over their expected useful lives. Furniture, computer equipment, other equipment plant and vehicles are all depreciated over 4 years (25%) or the asset's expected useful life if shorter.

28

Museum of London Archaeology Notes forming part of the financial statements for the year ended 31 March 2022 (continued)

1 Accounting policies (continued)

Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Goodwill and amortisation

Goodwill, positive and negative, represents the difference between the cost of a business combination and the fair value of the group's share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill on acquisitions of subsidiaries is included in ‘intangible assets'. Goodwill is carried at cost less accumulated amortisation and accumulated impairment losses. Goodwill amortisation is calculated by applying the straight-line method to its estimated useful life. If a reliable estimate cannot be made, the useful life of goodwill is presumed to be 5 years.

Estimates of the useful economic life of goodwill are based on a variety of factors such as the expected use of the acquired business, the expected useful life of the cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses.

Pensions

Employees are enrolled to join the group money purchase defined contribution pension scheme operated by Legal & General plc. Employees are automatically enrolled into the money purchase scheme unless they have exercised their right to opt out of scheme membership.

Employees joining the money purchase pension scheme contract directly with the insurance company. MOLA makes a matching contribution of between 4% and 6% of salary to this pension scheme and acts as agent in collecting and paying over employee pension contributions. The contributions made for the accounting period are treated as an expense and were £509,063.

2 Trading income

2022 2021
£ £
Archaeology services - UK 24,531,758
__		 16,297,399
__

Of the total income for archaeology services in the year to 31 March 2022, £23,680,434 related to unrestricted funds (2021 £15,267,367) and £851,324 related to restricted funds (2021 £1,030,032).

3 Government Grants

Government grants 2022
£
71,208

___		 2021
£
1,392,659
___

The group received a total of £67,376 under the government’s Job Retention Scheme. Of the total, the Charity received £67,376 (2021: £1,135,491).

29

Museum of London Archaeology Notes forming part of the financial statements for the year ended 31 March 2022 (continued)

4 Investment Income

Interest receivable 2022
£
-
___		 2021
£
1,423
___

Interest receivable in the year to 31 March 2022, was £nil. There was an accrual reversal of £900 related to unrestricted funds, Interest income of £1,423 in 2021 related to unrestricted funds.

5 Total Expenditure

2022 2021
£ £
Fundraising and publicity:
Marketing and Advertising 17,797 15,743
___ ___
Archaeological services:
Project costs 10,026,857 6,561,081
Payroll and staff costs 11,375,712 9,497,039
Office and other costs 2,073,687 1,775,454
Depreciation 120,662 140,657
___ ___
23,596,918 17,974,231
___ ___
Administrative costs:
Auditors' remuneration 42,544 41,550
Costs of preparing for Directors' meetings
and support for Directors 7,632 1,186

Of total expenditure, £1,044,644 was in relation to Archaeological services and investigations related to restricted expenditure (2021 £1,288,271).

30

Museum of London Archaeology Notes forming part of the financial statements for the year ended 31 March 2022 (continued)

5 Total expenditure (continued)

The payroll costs included:
The average number of staff employed by the group and the Charity during the year was:
2022
£
Re-organisation costs
-
___
_
2022
£
Salaries
9,939,014
Social security costs
927,635
Other pension costs
509,063
__
11,375,712
__		 The payroll costs included:
The average number of staff employed by the group and the Charity during the year was:
2022
£
Re-organisation costs
-
___
_
2022
£
Salaries
9,939,014
Social security costs
927,635
Other pension costs
509,063
__
11,375,712
__		 The payroll costs included:
The average number of staff employed by the group and the Charity during the year was:
2022
£
Re-organisation costs
-
___
_
2022
£
Salaries
9,939,014
Social security costs
927,635
Other pension costs
509,063
__
11,375,712
__		 The payroll costs included:
The average number of staff employed by the group and the Charity during the year was:
2022
£
Re-organisation costs
-
___
_
2022
£
Salaries
9,939,014
Social security costs
927,635
Other pension costs
509,063
__
11,375,712
__		 2021
£
-
__
2021
£
8,305,733
750,202
430,600
_
9,486,535
_

Management
Administrative
Archaeological - in the field		 2022
Group
Number
14
35
296
__
345
___		 2021
Group
Number
13
31
246

__
290

___
2022
Charity
Number
12
24
140
___
176
___		 2021
Charity
Number
10
22
140
___
172

___
Other (volunteers) 494 106

Other (volunteers)

In the year the Charity employed the following numbers of higher paid employees:

2022 2021
£60,000 - £69,000 3 4
£70,000 - £79,999 3 1
£90,000 - £99,999 2 -
£110,000 - £119,999 - 1
The pension cost in aggregate for the higher paid employees £44,083 £31,283

The key management personnel of the Charity for 2022 comprise the Interim Chief Executive, Finance Director, Director of Research & Engagement, Director of Developer Services, Director of Infrastructure, Director of Research, Commercial Director, Head of HR and Chief Digital Officer. There have been staff changes in 2021 and 2022 causing fluctuations in total employee benefits. The total employee benefits of the key management personnel during the year was £768,294 (2021 - £983,448).

31

Museum of London Archaeology Notes forming part of the financial statements for the year ended 31 March 2022 (continued)

5 Total expenditure (continued)

Remuneration of Trustees

The Trustees who served at any point during the financial year did not receive any remuneration. The Trustees received reimbursement of expenses totalling £2,044 (2021 - £1,186) in respect of travel and meeting arrangements.

Transactions with Trustees and connected persons

There were no additional transactions with the Trustees or connected persons during the year.

6 Net income

Net income is stated after charging:
Depreciation of owned fixed assets
Auditors remuneration
– Audit
– Other services		 2022
£
120,662
42,544
-
___		 2021
£
140,657
41,550
2,050
___

7 Taxation

The company is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the Corporate Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

No tax charge arose in the year.

MOLA Northampton makes qualifying donations of all taxable profit to Museum of London Archaeology. No corporate tax liability on the subsidiary arises in the accounts.

32

Museum of London Archaeology Notes forming part of the financial statements for the year ended 31 March 2022 (continued)

8 Tangible fixed assets

Leasehold
Group
improvements
£
Cost or valuation
At 1 April 2021
50,733
Additions
-
Disposals
-
_
At 31 March 2022
50,733
_
Accumulated depreciation
At 1 April 2021
13,887
Charge for the year
5,073
Disposals
-
_
At 31 March 2022
18,960
_
Net book value
At 31 March 2022
31,773
_
At 31 March 2021
36,846
_		 Motor
Plant and
Fixture and
Computer
vehicles
equipment
fittings
equipment
£
£
£
£
90,522
170,489
76,583
690,462
-
89,568
9,506
118,832
-
-
-
-
_
_
_
_
90,522
260,057
86,089
809,294
_
_
_
_
90,522
152,301
67,450
555,323
-
27,925
5,229
82,436
-
-
-
-
_
_
_
_
90,522
180,226
72,679
637,759
_
_
_
_
-
79,831
13,410
171,535
_
_
_
_
-
18,188
9,133
135,139
_
_
_
_		 Total
£
1,078,789
217,906
-
_
1,296,695
_
879,483
120,663
-
_
1,000,146
_
296,549
_
199,306
_

2

Museum of London Archaeology Notes forming part of the financial statements for the year ended 31 March 2022 (continued)

8 Tangible fixed assets (continued)

Motor
Charity
Cost or valuation
At 1 April 2021
Additions
Disposals
At 31 March 2022
Accumulated depreciation
At 1 April 2021
Charge for the year
Disposals
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 vehicles
Plant and
equipment
Fixture and
fittings
Computer
equipment
£
£
£
£
90,522
95,539
58,355
460,367
-
22,744
-
81,736
-
-
-
-
_
_
_
_
90,522
118,283
58,355
542,103
_
_
_
_
90,522
80,680
56,241
404,601
-
13,074
2,114
44,734
-
-
-
-
_
_
_
_
90,522
93,754
58,355
449,335
_
_
_
_
-
24,529
-
92,768
_
_
_
_
-
14,859
2,114
55,766
_
_
_
_		 Total
£
704,783
104,480
-
_
809,263
_
632,044
59,922
-
_
691,966
_
117,297
_
72,739
_

34

Museum of London Archaeology Notes forming part of the financial statements for the year ended 31 March 2022 (continued)

9 Fixed asset investments

Subsidiaries

Museum of London Archaeology owns the whole of the issued capital amounting to £2 (2 ordinary shares of £1 each) of MetroMOLA Limited.

MetroMOLA Limited was established to provide archaeological services however it is currently dormant and all inter-company balances are fully written off.

Summary of the unaudited financial statements for MetroMOLA Limited for the year ended 31 March 2022:

Statement of comprehensive income
Turnover
Cost of sales
Gross profit
Administration/other costs
Trading profit
Retained profit for the year
Retained profit brought forward
Retained profit carried forward
Balance sheet
Current assets
Creditors – amount falling due within one year
Creditors - amount falling due after more than one year
Net assets		 2022
£
-
-
___
-
-
___
-
___
-
-
___
-
___
2
-
-
___
2
___		 2021
£
-
-
_
-
-
_
-
_
-
-
_
-
_
2
-
-
_
2
___

2

Museum of London Archaeology Notes forming part of the financial statements for the year ended 31 March 2022 (continued)

9 Fixed asset investments (continued)

Subsidiaries

MOLA Northampton was incorporated in October 2013 to acquire the archaeological unit of Northamptonshire County Council on 20 January 2014.

Subsidiary undertaking

Principal activities

MOLA Northampton Limited

Archaeological services

Summary of audited financial statements for MOLA Northampton Limited for the year ended 31 March 2022:

Statement of financial activities

Statement of financial activities
Income
Income from Charitable activities:
Archaeological services
Government Grants
Interest Receivable
Total Income
Expenditure
Cost of raising Funds:
Fundraising and Publicity
Expenditure on charitable activities
Archaeological services and investigations
Total Expenditure
Net income and net movement in funds for the year
Balance sheet
Fixed and other Assets
Current Assets
Creditors - amount falling due within one year
Creditors - amount falling due after more than one year		 2022
£
12,833,274
3,832
-
____
12,837,106
-
-
11,957,063
____
11,957,063
__
880,043
__
179,252
6,804,137
(3,098,648)
-		 2021
£
7,958,160
257,168
375
_
8,215,703
-
-
7,736,910
_
7,736,910
_
478,793
_
126,567
4,770,446
(1,892,314)
-
____ ____
Net Assets 3,884,741 3,004,699
____ ____

36

Museum of London Archaeology Notes forming part of the financial statements for the year ended 31 March 2022 (continued)

10 Debtors

Amount Recoverable on contracts
Trade debtors - External
Other Debtors
Intercompany
Prepayments		 2022
Group
£
3,938,239
3,376,691
199,773
-
270,672
___
7,785,375
___		 2021
Group
£
3,198,719
4,892,246
260,388
-
203,953
_
8,555,306
_		 2022
Charity
£
2,280,630
1,365,741
199,773
-
172,876
___
4,019,020
___		 2021
Charity
£
1,927,014
3,055,072
251,623
117,957
135,496
_
5,487,162
_

11 Creditors: amounts falling due within one year

Trade Creditors
Intercompany
Taxation and social security
Payments in Advance
Other creditors
Accruals		 2022
Group
£
1,509,927
-
752,795
3,443,838
85,118
707,921
___
6,499,599
___		 2021
Group
£
1,521,289
-
1,843,772
3,618,916
67,239
1,009,867
___
8,061,083
___		 2022
Charity
£
331,293
935,483
444,825
2,327,482
85,118
212,233
___
4,336,434
___		 2021
Charity
£
1,129,634
-
1,775,986
2,406,256
67,239
906,227
___
6,285,342
___

37

Museum of London Archaeology Notes forming part of the financial statements for the year ended 31 March 2022 (continued)

12 Creditors: amounts falling due after more than one year

Coronavirus Business Interruption Loan
Maturity of debt:
Coronavirus Business Interruption Loan
In More than one year but not more than
two years
In More than one year but not more than
five years
After Five years		 2022
Group
£
1,250,000
_
2022
Group
£
250,000
1,000,000
-
___
1,250,000
_		 2021
Group
£
1,250,000
_
2021
Group
£
250,000
1,000,000
-
_
1,250,000
___		 2022
Charity
£
1,250,000
_
2022
Charity
£
250,000
1,000,000
-
___
1,250,000
_		 2021
Charity
£
1,250,000
_
2021
Charity
£
250,000
1,000,000
-
_
1,250,000
___

The Coronavirus Business Interruption Loan is secured by a fixed and floating charge over the assets of the group.

Interest charges commence from the first anniversary of taking out the loan and are at 2.5% above base rate.

38

Museum of London Archaeology Notes forming part of the financial statements for the year ended 31 March 2022 (continued)

13 Funds

RESTRICTED FUNDS
ClTiZAN
Time Truck
TDP
Bottles Concealed and Revealed
UKRI Future Leader Fellow
Other
Restricted Funds - Total
Unrestricted Funds - Designated
Unrestricted Funds - General		 At
01-Apr
2021
£
(182,578)
2,375
14,200
6,506
(53,136)
151,320
_
(61,313)
_
1,000,000
_
1,922,179
_
2,860,866
___		 Income
Expenditure
£
£
419,226
572,776
-
2,375
80,183
112,862
57,524
51,086
139,388
77,540
155,003
228,005
_
_
851,324
1,044,644
_
_
-
-
_
_
23,756,645
22,620,247
_
_
24,607,969
23,664,891
_
_		 Transfers
£
-
-
-
-
-
-
_
-
_
-
_
-
_
-
___		 At
31-Mar
2022
£
(336,128)
-
(18,479)
12,944
8,712
78,318
_
(254,633)
_
1,000,000
_
3,058,577
_
3,803,944
___

The restricted funds (described in detail in the Directors’ report) relate to:

The designated unrestricted funds are for future relocation costs however this designation will be reviewed if a new licence to occupy Mortimer Wheeler House is agreed with Museum of London.

14 Related party transactions

During the year of activity, Museum of London Archaeology provided archaeological services to Museum of London in respect of projects initiated prior to the transfer of trade and assets. Museum of London Archaeology was previously an archaeological unit within Museum of London.

39

Museum of London Archaeology Notes forming part of the financial statements for the year ended 31 March 2022 (continued)

14 Related party transactions (continued)

During the year the Museum of London Archaeology supplied services to MOLA Northampton to the value of £1,330k and received services to the value of £640k. The net balance due Museum of London Archaeology at 31 March 2022 was £104,281 (2021: £117,957).

15 Company limited by guarantee

The company is a company limited by guarantee, not having share capital.

16 Reconciliation of net movement in funds to net cash flow from operating activities

2022 2021
Group Group
£ £
Net movement in funds 943,077 (340,235)
Depreciation of tangible fixed assets 120,662 140,657
(Increase) in amounts recoverable on contracts (739,521) (657,739)
Decrease/(Increase) in debtors 1,509,452 (2,261,890)
(Decrease)/increase in creditors (1,561,484) 3,424,871
Interest received -
(1,423)
Interest Paid - 636
___ ___
Cash generated from operating activities 272,185
___		 304,877
___

40

Museum of London Archaeology Notes forming part of the financial statements for the year ended 31 March 2022 (continued)

17 Commitments under operating leases

As at 31 March 2022, the group has annual commitments to lease payments under non-cancellable operating leases as set out below:

Within one year
Between one and two years
Between two and five years
Over five years
Total		 Land and
buildings
2022
£
446,250
446,250
1,058,125
-
___
1,950,625
___		 Other
2022
£
22,852
14,406
22,644
-
___
59,902
___		 Land and
buildings
2021
£
266,833
48,250
72,375
-
_
387,458
_		 Other
2021
£
37,825
20,989
28,012
-
_
86,826
_

The licence under the Transfer Agreement from the Museum of London to occupy Mortimer Wheeler House expired on 31 October 2021. A new licence was entered into on 1 November 2021. The lease on Kent House, the location for MOLA Northampton expires November 2031 with break options in November 2021 and November 2026.

18 Contingent Liability

The directors were aware of a potential claim by a client which may result in clawback of amounts received in respect of work undertaken under contract. The directors, however, do not believe that a liability exists and if a claim were to be made it would be vigorously challenged.

Subsequent to the year-end, the matter was resolved. The directors are not aware of any other contingent

liabilities.

19 Post Balance Sheet Events

On 20 June 2022 Museum of London Archaeology acquired the business and assets of L- P: Heritage LLP (known as L-P Archaeology) for a total potential consideration of £400,000. £150,000 was paid to the owners of L-P: Heritage LLP on 20 June 2022 with two further payments of £125,000 payable in 2023 and 2024 subject to certain indemnities and warranties being met.

41

Museum of London Archaeology Notes forming part of the financial statements for the year ended 31 March 2022 (continued)

20 Prior Year Consolidated Statement of Financial Activities

Consolidated statement of financial activities (including income and expenditure statement) for the year ended 31 March 2021

Unrestricted
funds
Note
2021
Income
£		 Unrestricted
funds
Note
2021
Income
£		 Restricted
funds
2021
£		 Total
funds
2021
£
Donations
Income from charitable activities:
Archaeological services
2
Government Grant Income
3
Investment Income
4
Total income
Expenditure
Cost of raising funds:
Fundraising and publicity
5
Expenditure on charitable activities
- Archaeological services and investigations
5
Re-organisation costs
5
Interest payable
Total expenditure
Net (deficit)/income and net movement in funds for
the year
Balances brought forward
Transfers
Balances carried forward		 253
15,267,367
1,392,659
1,423
_
16,661,702
_
15,743
17,068,685
-
636
_
17,085,064
_
(423,362)
3,384,953
(39,412)
_
2,922,179
_		 2,790
1,030,032
-
-
_
1,032,822
_
-
949,695
-
-
_
949,695
_
83,127
(183,852)
39,412
_
(61,313)
_		 3,043
16,297,399
1,392,659
1,423
___
17,694,524
___
15,743
18,018,380
-
636
___
18,034,759
___
(340,235)
3,201,101
-
___
2,860,866
___

42