THE V&A FOUNDATION REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Charlty Number: 1144508 Company Number: 07788681
THE V&A FOUNDATION REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014 CONTENTS Pa£e Reference and administrative details Trustees, Report IndeFYndent Auditors. Repgrt 7-10 Statement of Financial Activities 11-12 Balance sheet 13 statement of Cashflows 14 Notes to the Financial Statements 15-24
THE V&A FOUNDATION REFERENCE AND ADMINISTRATIVE DETAILS Trustees Heather Acton Ichairl Lady Deborah Buffini (appointed 7 May 20241 Sir Nicho135 Coleridge CBE (to 31 October 2023- resigned) Andrew Hochhauser KC Dr Catherine Hogel lappointed 7 May 20241 Lady Jill Shaw Ruddock Ito 23 October 2023- resigned) Alireza Sarikhani Bernard Selz Ito 25 May 2023 resignedl Caroline Silver Peter Williams Nigel Webb (appointed 9 February 20241 Re8i5tered offl¢è Victoria and Albert Museum Cromwell Road London SW7 2RL Audltor5 Moore Kingston Smith LLP 9 Appold Street London EC2A2AP Bankers National Westminster Bank 18 Cromwell Place South Kensington London SW7 2LB Solicitor5 Farrer & Co 66 Lincoln's Inn Fields London WC2A 3LH Company number 07788681 Charfty num1 1144508
THE V&A FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2024 The Trustees, who are also direttors of the charity for the purposes of the Companies Act 2006, have pleasure in submitting their annual report and the audited financial statements for the year ended 31 March 2024. STRUCTURE, GOVERNANCE AND MANAGEMENT Governance The V&A Foundation was incorporated as a company limited by guarantee on 27 September 2011 and re8lStered as a charity on 2 November 2011. It is governed by its Memorandum and Articles which were updated on 9 January 2023 and aEain on 25 May 2023. The charitable company also acts as corporate trustee for the permanent endowment fund$ Shown in note 10 to the financial statements. Trustees The Trustee5, who are a150 the directors for the purposes of company13w. who served during the period and since theyearend are shown on page 3. None of the Trustees has any beneficial interest in the Foundation. New Trustees are elected to the Board by existing members. The Trustees are responsible for the Foundation's overall management and control. including the implementation of policies. The Board meets re8ularly. They have certain legal. financial and fiduciary duties under charity law. Trustee5 Indurtlon and Trainlng New Trustees receive the latest Annual Report and Accounts and all relevant Informatiot) relating to the Foundation. All Tru5tee5 are kept informed about relevant developments within the charity sector. STRATEGIC REPORT Rlsk Management TheTrustees are responsibleforthe management of the risksfaced bythe Foundation. Risks are identified, assessed and controls established 35 appropriate. As a grant-making body, the major risk to the Foundation's ability to deliver its objectives is a failure to secure sufficient income for distribution. This year investments have returned to growth, following a modest decrease in value in the prior year. The overall financial position of the Foundation remains strong and this. combined with the returns on investments gives the trustees confidence that they can continue to make distributions and deliver on the charity's objectives. The level of unrestricted funds held will also allow the Foundation to carry on its work in the event of a future slowdown in fundraising. Objeds, Objectives and Actlvlti The objects of the Foundation are for the benefit of the public, to further, in so manner as the Trustees of the Foundation see fit, all or any of the objects ftom time to time of the V&A and art, design and performance throughoutthe world in any manner incidental, conduciveto or compatiblewith the charitable objects of the V&A. The Foundation achieves these objects through the award of grants. The Foundation ha5 had iegard to the guidance from the Charity Commission to ensure that its objects and activities are undertaken for the public benefit. Achle¥ement5. Performance and Financlal Review During the year, the Foundation received donated income of £92.68612023.. £20,009,874). All of thi5 was unrestTlCted lin the prioryeai a restricted donation of £20,000,000 was received). Investments overall made an unrealised gain of £4,911,65712023..1oss of £959,490). Trustees made grants of £657,10012023.. £819,079).
THE V&A FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2024 Total Return Following the launch of the Foundation's successful endowment fundraisin8 campaign. supported by the Heritage Lottery Fund's Catalyst.. Endowment initiative. the Trustees have exercised their power under Section 104AI21 of the Charities Act 2011 to invest on a total return basi5. The initial values of the trust for investment and unapplied total return were established as at l April 2016. At l April 2016 and subsequently as donations were received under the endowment fundraising campaign, the value of these donations were allocated to the trust for investment. At the end of each year, except where donor agreements stated otherwise, 3n amount of up to 3.25Yo of the trust for investment is allocated to income from the unapplied total return at discretion of the trustees. An amount sufficientto maintain the real value of the trust for investment, based on CPI, is allocated from the unapplied total ieturn to the trust for investment. This year, returns were positive and all permanent endowments bar the Jarneel endowment are no lon8er in a negative unapplied total return position. It is hoped that future investment returns wi11 further increase the value of the endowments to ensure their ability to continue to fund a consistent level of activity over the long term. Reserves Policy The Trustees have agreed that as it has very low running costs, £10,000 of unrestTlCted reserves should be retained to cover administrative and compliance costs. At the balance sheet date, the Foundation's unrestricted reserves were £7.9m12023: £6.7ml,. the excess will be distributed in line with the Foundation's charitable objeds as suitable grant requests are received. Plans for the FUre The Foundation will continue to raise funds in line with existing priorities, while keeping a close eye on the performance of the endowments relative to the level of activity that they are required to fund. Howwe Fundraise Fundraisin8 for the Foundation is supported by the V&A's Development team. The V&A's Development team has an exceptional reputation in the sector for fundraising professionally. responsibly and sensitively. Many of the V&A's fundr31singteam are members of the Institute of Fundraising and the V&A is registered with the Fundraising Regulator. whose Code of Fundraising Practice and Fundraising Promise set a standard for fundraisin8 activity in the UK. The Legacies team are members of the Institute of Legacy Management, and the V&A is also re8lStered with Remember a Charity. a consortium of 200 charities based at the Institute of Fundraising that encourages legacy giving in the UK. The Foundation's approach to fundraising is highly personalised. The Foundation operates almost exclusively on a one-to-one basis with its supporters and partners. ensuringtommunications are not excessive or intrusive and that the individuals contacted do not feel under any undue pressure to donate. When feedback is received from supporters on how the Foundation could improve. it is taken very seriously, and the Foundation is pleased that it has had no complaints related directly to how itfundraises in the last year. When fundraising is carried out on behalf of the Foundation it is with a small group of trusted partners who help it secure sponsorship from organisations, or individu31s who promote the Foundation through their personal and Professional connections. The Foundation works c105ely with these partners to ensure their approach consistently meets the hi8h standards of its own fundraising. Grant.making poliry The Trustees consider applications from the V&A and other bodie5 for grants and make such grants as seem best calculated to advance the charitable objects of the Foundation, ensuring always that the requests and stipulations
THE V&A FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 51 MARCH 2024 of donoTS are 5tTlrtly met. The Trustees monitor 8rant5 through reviewin8 update5 from recipients on how money has being spent and the outcome5 and impact of the projert. TRUSTEES, RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS The Trustees are responsible for preparing the Trustees. Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Charity law requires the TTUStees to prepare financial statements for each financial year which give a true and fair view of the State of affairs of the Foundation and of the incoming resources and applicatiot) of resources of the Foundation forthat period. In preparin8 these financial statements, the Trustees are required to.. Select SLlltable accounting policies and then applythem consistently,. Observe the methods and principles in the charities SORP., Makejudgements and estimates that are reasonable and prudent,. state whetherapplicable UK Accounting standards have been followed. subjectto any material departures disclosed and explained in the financial statements.. Prepare the financial statements on the going concern basis unless it is inappropriate to presume thatthe tharitable company will continue in business The Trustees are responsible for keeping proFr accounting records that disclose with reasonable accuracy at any time of the financial posltion of the Trust and enablè them to ensure that the financial statements comply wtth the Companieg Act 2006. They are also responsible for safeguarding the assets of the Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees confirm that.. lal so far a5 each trustee 15 aware, there is no relevant audit information of which the charitable company's auditor is un3w3re." and Ibl the Trustees have taken all the steps that they ought tts have taken as TIu5tees in order to make themselve5 aware of any relevant audit information and to establish that the charitable company's auditor is aware of that information. The Trustees are responsible for the maintenance and inte8rity of the corporate and financial information included on the ch3Tltable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in otherjurisdictions. Audltors Moore Kingston Smith LIP were appointed as auditors during the year and. having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with section 487121 of the Companies Act 2006 unless the company receives notice under section 48811) of the Companie5 Art 2006. The Trustees, Report. incorporatin8 the Strategic Report. was approved by the Board of Trustee5 on 16 October 2024 and signed on its behalf by.. ea , Trustee
THE V&A FOUNDATION INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF V&A FOUNDATION Oplnlon We have audited the financial statements of V&A Foundation I'the company'l for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and notes to the financial 5taternents, including significant accounting policies. The financial reporting framework that has en applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 'The Financial Reporting Standard Applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practicel. In our opinion the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 March 2024 and of its incoming resources and application of resources, includin8 Its income and expenditure, for the year then have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI11SAs IUKII and applicable law. Our responsibilities underthose standards are further described in the Auditor's Responsibilities forthe audit of the financial statements section of our Teport. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standarij, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basi5 for our opinion. Concluslons relatlng to golng wniern In auditing the financial statements. we have concluded that the trustees. use of the going concerr basis of accounting in the preparation of the financial statements IS aPPTopriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collertively, may cast significant doubt on the charitable company5 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 Tesponsibilitie5 of the trustees with respect to going concern are described in the relevant sections of this report. Other Informatlon The other information comprises the information included in the annual report, other than the financial statements and our auditor's Teport thereon. The trustees are responsible for the other information contained within the annual Teport. OuropinOn on the financial statements does not coverthe other information and, exiept tothe extent otherwise explicitly stated in our report, we do not expres5 anyform of assurance conclusion thereon. 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 othemise appears to be materially misstated. If we identify such material incon5iStencies or apparent mateiial
THE V&A FOUNDATION misstatements. we are required to determine whetherthere is a material misstatement in thefinancial statements themselves. If, based on the work we have performed, we conclude that there is 3 material misstatement of this other infoymation, we are required to report that fact. We have nothing to report in this regard. Oplnlons on other matters prescrlbed by the Companles Ad 2006 In our opinion. based on the work undertaken in the course of the audit.. the information given in the strategic report and the trustees. annual reportforthe financialyearforwhich the financial statement5 are prepared 15 consistent with the financial statements. and the strategic report and the trustees, annual report have been prepared in accordance with applicable legal requirements. Matters on whlch we are requlred to report by ex<eptlon In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report orthe trustees. annual report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires u5 to report to you if. in our opinion.. adequate accounting records have not been kept, oi returns adequate for our audit have not been received from branches not vlsited by us,. or the financial statements are not in agreement with the accounting records and returns; or certain ijisclosures of trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit. Re5pon51bllltles of trustees As explained more fully in the trustees, responsibilitie5 ststement set out on page 6, the trustees Iwho are also the director5 of the charitable company for the puFposes of company lawl are responsible for the preparation of the flnJncial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fTaud or error. In prepaiingthe financial statements, the trustees are responsible for assessing the charitable company's abilityto continue as a going concern, disc105in& as applicable. matters related to goingconcern and usingthe going concern basis of accounting un5ess the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Audltorfs Responslblllties for the audit of thefinanclal statements Ourobjertives aretoobtain reasonable assurance about whetherthe financial statements as a whole arefree from material misstatement. whether due to fraud or error, and to issue 3n 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 IUKI will always detect a material misstatement when it exists. Misstatement5 can arise from fraud or error and are considered material if. individually or in aggregate, they could reasonably be expected to influence the economic decisions of users tsken on the basis of these financial statements. As part of an audit in accordance with ISAS IUKI we exercise professional judgement and maintain professional sceptiCi5m throughout the audit. We also..
THE V&A FOUNOATION Identbfy and 35se5S the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our tspinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting ftorn error, as fraud may involve collusion, forgery. intentional omissions. misrepresentations. or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedure5 that are appropriate in the circumstance5, but not for the purposes of expresstng an opinion on the effectiveness of the charitable company's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. Conclude on the appropTiateness of the trustees, use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statement5 or, if such disclosures are inadequate. to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the charitable company to cease to continue as a going concern. Evaluate the overall presentation. structure and content of the financial statements, including the disclosures. and whether the financial statements represent the underlying transactions and event5 in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timin8 of the audit and significant audit findings, includin8 any si8nificant deficiencres in inteinal control that we identify during our audit. E¥planatlon as to what extent the audlt ¥As a>nsldered capablè of dètertlnÉ Irre8ularltSes, Includlng fraud IrregulaTltie5, including fiaud, are instances of non-compl(ance with laws and regulations. We design procedure5 in line with our responsibilities. outlined above. to detect material misstatements in respect of irregularities, inclLsding fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detaileij below. The objectives of our audit in fespert of fraud, a.. to identify and assess the risks of material misstatement of the financial statements due to fraud,. to obtatn sufficient appropriate avdit evidence regarding the assessed risks of material misstatement due to fraud. through designing and implementing appropriate respon5estoth05e assessed risk5; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However. the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company. Our approach was as follows= We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered thatthe most significant are the Companies Att 2006. the Charities Act 2011, the Charity SORP. and UK financial reporting standards as issued by the Financial Reporting Council. We obtained an understanding of how the chaTltable company complies with these iequirements by di5cussion5 with management and those charged with governance.
THE V&A FOUNDATION
We assessed the rsk of material misstatement of the financial statements, including the risk of material
misstatement due to fraud and how it might occur, by holding discussions with man38ement and those
har8ed with governance.
We inquired of management and those charged with governance as to any known instances of non-
compliance of suspected non
THE V&A FOUNDATION STATEMENT OF FINANCIALAcrivrriES FOR THE YEAR ENDED YI MARCH 2024 Unrestrlrted 2024 Reslrkted 2024 Endowment 2024 Total 2024 Total 2023 Notes INCOMING RESOURCES Inwrne and endowme#tsfmm: Donation5 and legacies Investment income 92.686 92,686 20,009,874 193.267 Total 5ncome 92.686 92,686 20.203.141 Expendlture on.. Charftable adi¥ities Grants payable Governance costs Investment Managementcosts 83,100 24,608 32,129 574,0 657.100 24,608 144.966 819.079 17,164 175.565 48,269 64,568 Trtal $Our(e$*xPended 139.838 612.269 64,568 826.674 I,011,U08 NET INCOME I IEXPENDITURE) BEFORE GAINS AND LOSSES ON INVESTMENTS 147.1521 16222691 164,5681 (733.988} 19,191,333 Cains/lLossesl on Investments 1,218.261 1,509,875 2.183,522 4,911,657 1959,4901 NET INCOME 1.171.109 887.606 2,118.954 4,177,669 14231.043 Transfers between funds io 31,188 623,747 1654,9351 Net movement in fund5 1.201.297 1,511,353 1,464,019 4,177,670 18,23L843 Fund5 broughtft+hw•rd as at l Aprll 6,722,227 22,939,015 21,616,059 51.277.301 33,045.458 FUNDS ASAT 31 MARCH io 7.924.524 24,450.368 2Y,080,078 55,4S4.971 51.277,301 All activities ale continuing. There are noother Bèins or10sses otherthan those shown above. li
THE V&A FOUNDATION PRIOR YEAR STATEMENT OF FINANCIAL AcfivlTIES Unrestri¢ted 2023 Restrkted 2023 Endowment 2023 Total 2023 Note5 INCOMING RESOURCES Incorne and endowrnent5 from: Donations and le8acies Investment Income 9.874 18,267 20.000.000 175,000 20,009.874 193.267 Total Incorne Z8.141 20,175.000 20.103,141 Expendrlurt On: Charitable actlvities GNant5 payable Governance costs 195.000 17,164 30.011 624.079 819.079 17,164 175,565 Investment Management costs 39,381 106,173 Total re50urtts expended Z4Z,175 66J,460 106,171 011.808 NET INCOhlE/IEXPENDITUREJ BEFORE GAINS & LOSSESON INVESTMEpirs 1214,0341 19,511,$40 1106,1731 19,191,33J Gains/lL0s5e51 on Inve5trnents 1222.1521 321.165 11,058,501) 1959.4901 NEf114COVIE 1436,1861 19,832,705 11,164.6761 18,151,843 Transfers betvrfeen funds 53,978 2,853,716 12,887,694) Net movement In funds 1402,2081 22.686,411 14,052.3701 1&231.843 Funds broughtfowwird as at l Aprll 7.124,435 252,594 25,668,429 33,045,458 FUNDS ASAT 31 MARCH 6,722,217 22,939,015 21,611059 51.277.301 All activtties are continuing. The¥e are no other gains oi losses other than those shown above. 12
THE V&A FOUNDATION ompany number: 07788681 ALANCE SHEEr AS AT JI MARCH 2024 2024 2023 Notes NON-CURRENT ASSETS Investments 53,289.056 49.096.367 aJRRENT ASSEtS Debtors Cash at bank 90,395 2,142,739 706 2,189,279 2.133.134 2.189.985 CREDITORS: amountsfallin8 duewithin one year 167,2191 19,0511 NET CURRENT ASSETS 2,165,915 2,180,934 TOTALASSEfs LESS CURRENT UABIUTtE5 55.454,971 51,277.301 NEfASSErs Repiesented by.. Unrestricted funds Restrirted funds Endowmentfund5 7,924,524 24,450,368 23,080,078 6.722,227 22,939,015 21.616,059 55,454,971 51.277.301 Theaccounts We approved and authof15ed ftsr issue bythe Board of Trustees on 16 Octtsber 2024 and signed on its behalf by.. Chalrof the B03yd The ntstts p•ge$ 15 to 25ft+rm partof these fin•n¢i¥l st•temeDts. 13
THE V&A FOUNDATION STATEMENTOF CASH FLOWS AS AT 31 MARCH 2024 2024 2023 Notes Net cash lused by) / provided by operating activitie5 1620,5431 19,123,753 Cash flow5 from investlnK adivrllts.. Purchase of investment5 Sale of investment5 Interestfrom investments 121,181,193) 574.000 193,267 Net fash (used inll provided by Investing adlvttles 574.000 120,987.9261 Change in cash and cash equivalents in the reportin8 period 146,5431 11,864.1731 Cash and <4sh equlvolents atthe beglnnlng of theyear 2,189,279 4,053.452 Cash and cash equivalents atthe end of theyear 2,142,736 2,189,179 A: Reconcili*ion of net movement In funds to net rash fiowfrom oper)tifjg artltIeS 2024 2021 Net Income Loss/lGainl on investments Interest from investments Investmentfees (deducted from kh)rtfolS01 Ilncreasel l Decrease in debtors IntrÈase / IDecre3sel in treditors Net ¢ash provlded by operatlfii artlvbtles 4,177,669 14911,6571 18,231,843 959,490 1193.2671 175,565 733 150.6111 19,IZ3,753 144,966 189.6871 58,167 1620.5431 14
THEV&A FOUNDATK)N NOTES TO THE FINANCIALSTATEMENTS FOR TrIE PERIOD ENDED 31 MARCH 1024 ACCOUNTING POUCIES Bas15 of preparatlon The finan<ial statements have been prepared in accordance wtth Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparin8 their accounts in accordance with the Financial Reporting Standard applicable In the LJK and Republic of Ireland IFRS 1021 leffective ljanuary 20151- (Charities SORP IFRS 10211, the Financial Reporting Standard applicable in the UK and Republlc of Ireland IFRS 1021 and the Companies Act 2006. The V&A Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilitie5 are initially recogni5ed at hislorical cost ortransactw)n value. The financial statements are prepared in sterling, which is thefunrtional curTency of the company. Monetary amounts in these financial statement5 are rounded to the nearest pound. Goln8 COnM The trustees considerthatthereare no material uncertainties aboutthe Foundation's abilityto continue as a going concern for 12 months from the date of si8nin8 these financial statements. Accordingty, the going concern basis continues to be adopted in preparing thefinanci31 statements. Don¥tiQn5p grant5 and le8acie5 Voluntary income is accounted for 3s and when entitleTnent arises, the arnountcan be reliablyquantified and the economic benefit to the Foundation is considered probable. Pecunkiry legacies are reco8nised once probate has been granted and notif1£3tion of entitlement h35 been received. Residuary legacie5 are Tecognised when PTobate 15 8ranted ènd theie 5 sUl(lent information to ¥ralue them and any conditions attsched to the legacy are either within the control of the charity have been met. An allowance is made againstthe amounts receivable to reflectthe uniertèinty inherent in estate administration. Investment income is accounted for on an accruals basis. Expendbture Expenditure is charged to the Ststement of Financial Artlvkties on an accru31s basis and is charged as ftsllows.. Grants payable are charged in the year which the offer is conveyed to the recipient except where the grant is conditional. su£h grant5 being reco8nised as expenditure when the Conditions attached are fulfilled. Grants offered which are sublert toconditions that have not been metatthe year-end are noted ascommltments. Governancecosts arethose costs relatlng tothe Strategic direction of the charity and of re8ulatory compliance. Financial Instruments 8asicfinancial instruments are initially re£ognised at tr3n53Ction value3nd subsequently meastsred atamortised c05twith the exception of inve5tment5 which are held at fair value. Financial a55ets held at amort15ed cost cornprise cash at bank and in hand, tO8ether with trade and otherdebtors. Financial liabilities held atamortised costcompriseall creditors except social security and othef taxes and provisions. In¥estments Inve5tment5arestated atrnarketvalue atthebalance sheetdate. Net8ainsand1055e5ari5ingon revaluation5anddisposals are chafged 01 credited to the Ststement of Financial Activities. 15
THE V&A FOUNDATION NOTE5 70 THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2024 L ACCOUNTING POUCIES {cohtinu¢dl Debttrr5 Trade and otherdebtors are recogni5ed atthe settlementamountdue. Prepayments are valued atthe amount prepaid net of anytrade discounts due. Cash at b*nk •hd In h•nd Cash at bank and cash in hand include5cash and shortterm hi8hly liquid investmentswith a short maturityofthree months or le55 from the date of acquisition or openiTr8 of the deposit or sirnilar account. Cfeditors and provision5 Creditors and provisions are recognised where the charity has ? present obllgation resulting from a past event that wlll probably result in the transfer of fvnds to a third party and the amount due to settle the obligation can be measured or estim?ted relI3bly. Creditoisand provisionsare normalty recognlsed atthelr settlementamountafterallowSngforanytrade discount5 due. Funds Unrestrided funds these represent the initial investment in the Foundation available for distribution at the Tru5tees' discretion. A transfer 15 rnade to unrestricted funds each year representin8 3.25% of the General Endowment fund <apit31 allocated from the unapplied tot31 return of the General Endowrnent. Restricted funds- these represent the different proje(ts that the Foundation supports, following the receipt of incorne specifically restricted to these projects detailed in note 10. Transfrrs are made each year representing 3.25% of the Restrlcted endowmentftjnd capitsl aDd all(Kated to Iniome from the unapplled total retuin of the Endowment Fund5. Endowment funds- these are funds that the donor has stated are to be held as capit310i expended over the long term. The charitable company acts a5 corporate trustee of the permanent endowment funds and accordin8lythe5e3re iefiected in the financial statements. 16
THE V&A FOUNDATION NOTES TO THE FINANCIALSTATEMENTS FOR THE PERIOD ENDEO 31 MARCH 2024 VOLUNTARY ITrKOME UnYertYicted Restrirted Endowme ZQ24 Total 2024 2024 2024 Legacies Donations 89,628 3,058 89,628 3,058 92.686 92,686 Unrestrlrted Restrirted Endowrnent Total 2023 2023 202J 2023 Legacies Donations 4,667 5,207 4.667 20,005,207 20,009.874 20.000.000 20.¢MJO,000 9,874 INVESTMENT INCOME Unvestrlcted 2024 Restrlcted 2024 Endowment 2024 Total 2024 Interest Received Unrestvlrted Z023 Restrlcted 2023 Endowment 2013 Total 2023 Interest Received 18,267 175.000 193,267 18,267 175.000 193.267 EXPENDifuRE Charltable acll¥ltles Unrestylded 2014 R¢strkted 2024 Endowment 3024 Total 2014 Gmntsp#yqble'. Curatorial and Exhibitions General Activities 574.000 574,000 83.IC 83,100 Govern3ncecosts Insuranie Bank chaT8e5 countin8 and administrative service5 Inve5trnent managementfee5 16,398 961 50 7,200 32,129 16.398 961 50 7,200 144,966 48,269 64.568 139,838 622.269 64.568 826,675 17
THEV&A FOUNDATION NOTÉS TO THE FINANCV4LSTATEMENTS FOR THE PERKID ÉNOED 31 MARCH 2024 4. ÈXPENDITIJRE Icontlnyedl Ch•ril•ble •rtlvities un5111(ted 2025 Restrirted 2023 Endowment 2023 Total 2023 Grnntspayable.. Capital Projects Curatorial and Exhibltions General Activitie5 115,000 115,000 624,079 80,000 624,079 80,000 Governance tosts Insurance 9,041 889 34 9,041 889 34 Bank charges Accounting and administrative services Investment mana8ernent fees 7,200 30,012 7,200 175,565 39,381 106,172 242,176 663.460 106.172 I,011,B08 TRUSTEES None of the Trustees lor any per50n5 connected with them) received any rernuneration or benefits from the Foundation during theyear12022-23.' nil). INVESTMENTS 2024 2023 Market value of Investments at l April AdditlOn5 at£OSt Disp05315 at market value Gains/lLossesl on inve5trnents (net of fees) 49,096.367 29,050,229 21,181,193 1574,¢)001 766,687 11.135,0551 Market value of inve5trnerrts at 31 March 53,289.054 49.096,367 DEBTORS 2024 2023 Accrued income Prepayments 89,628 767 706 90,395 706 18
THE V&A FOUNDATION NOTE5 TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED JI MARCH 2024 CREDITOR5: •mounts f•lling due within one ye•r 2024 2013 Accruals 67,219 9,051 67,219 9,051 NET ASSETS BMVEEN FUNDS Llnrestrlcted 2024 Restrirted 2024 Endowment 2024 Trt*l 2024 Fund balance5 at 31 March are represented by.. Non-current assets Current assets 7,394,365 597,378 167,2181 22,814.611 1,635,757 23.080,078 53,289,054 2,233,135 167.2181 Net assets 7.924.525 24,450.368 23.080.078 55.454.971 Unrestrlcted 2021 Restrirted 2013 Endowment 2023 Total 2023 Fund balance5 at 31 March are represented by.. Non-current a$5et5 Current assets 6.227.954 503,324 19.0511 21,252,354 1.686.661 21.616.059 49,096,367 2.189,985 19,0511 Net assets 6,722,127 22,939,015 21,61&059 51,277,301 19
THE V&A FOUNDATION NOTE5 TO THE FINANCIALsfATEMÉNTS FOR THE PERIOD ENDED 31 MARCH 1024 IQ. FUNDS At l Aprll 2023 In¢omlng re50urcès Re50iir¢e$ expended Tiansfers Investment 83ln5111055esl At31 March 2024 FUNDS RestrScted funds Cur3tori31 and Exhibitions Jameel Gallery Refurbishmenl Fund 306,789 2,175,442 I574,0} 623,747 356,536 2.175.442 Safeguardlng the Colle(tlon 20,456,784 148.2691 1,509,875 21.918,390 Expendableendowmtnt funds Jewelleiy curaloT P05t Illustration award Catsly5t- Artjarneel Catalyst- Fashion Catslyst- Iranian Treasures Catalyst- Porter Cataly5t- General fund Elizabeth Gage Curator of Jewellery 1,402,094 225,872 2.260,564 67,072 720,725 14,187) 16751 16,7521 12001 12,1531 169,0001 16.0001 1437,0001 12,2091 76,228 141.631 22,816 228,348 6,775 72,803 1,470,538 242.013 2,045,160 71,438 867,603 189,319 102,987 894.425 15661 130n 12,6721 16,2331 13.4201 162,0001 19,124 10,403 90,349 201,644 109,663 920.102 Pennanent endowrnent fund5 Artjameel Fashion Iranian Treasures Porter General fund 11.270.470 337,242 2,351,601 937,045 856.644 133.6651 11,0071 17,0241 12,7991 12,5591 1.138,474 34,066 237,544 94,655 86,533 12,375,279 359,369 2.505,894 998,527 912,850 110,9321 176,2271 130,3741 127,7681 Unrtstrl¢tsd fvnds 6,722.227 92.686 1139.8381 31,188 1.218261 7.924,524 51,277,301 92,686 1826,6731 4.911,657 55.454,972 20
THE V&A FOUNDAThON NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED JI MARCH 2024 10. FUNDS Icontirtuedl At l AprH 2022 In¢¢mlng re50ur(es Resources expended Transfers Investment Ealns1{105ses} At31 Mir<h 2023 FUNDS Restwi(ted futhds Curatorial and Exhlbltions Jameel Gallery Refurbishment Fund 252,594 1624,0791 678.274 2,175,H2 306,789 2,175,442 Safe8uardin8 the Collection 20,175.000 139,3811 321,165 20,456,784 Expendable endowmentfunds Jewellery CLtrator post Illustration award Catslyst- Art Jameel Catalyst- Fashion Catslyst- Iranian Tre35ures Catslyst- Porter Catalyst- General fvnd Jameel Endowment Refurbishment Fund Elizabeth Ga8e Curator of Jewellery 1,560,454 246,071 2,882.548 85,632 758,319 241,154 144.106 2,175,442 17.0521 11,1121 113.0271 13871 13.4271 11.0901 16501 181,0(M)I 18.o¢x)I 1479,0801 114,3151 170,3081 111,0871 1129,8771 13,8581 134.1671 110.8651 16,4931 1,402,094 225,872 2,260,564 67,072 720,725 189,319 102,987 139,8801 133,9781 12.175.442) 1,000,000 14,5191 156,0001 145,0561 894,425 Permanetyt endowment funds Artjameel Fashion 11,858,355 354,833 2,474,264 985,923 901,327 153.5931 11.6041 111,1821 14.4561 14,0731 1534,2921 115,9871 1111.4811 144,4221 140.6101 11,270,470 337,242 2,351,601 937,045 856,644 Iranian Treasures Porter General fund Unfe5trided funds 7,124,435 28,141 1242.1751 33.978 1222,1521 6,722,227 33,Q45.458 20,203.141 11.011,8081 1959,4901 51,277,301 Curatorial and Exhibrlions These represent funds to be applied towards specific curatoiial and exhibitions activities. Gfants are madefollowing successful applicatlOn5 totheTru5tees. Jameel Glry Relurblshment Furtd rs set aslde for the fefurbishment of this gallery space. Safe%uawding the Collertlon this donation was m3de to enable the ongoing safekeeping 3nd accessibility of the V&A Museum's collertion Endowment Funds The endowment funds have been provided to support specifii p05t5 Wlthin theV&K as well a5 the 8eneral activities of the Charity. The charitable company is the CorporateTrustee of the permanent endowment fund5 and the transactions and balances relating to these funds are reflected in the finan£ial 5tatement5 accordingly. Transfers A portion of investment returns on Endowmentfunds are allocated to the relevant Restricted funds and are availableto spend. 21
THE V&A FOUNDATION NOTES TOTHE FINANCIAL STATEMENTS K>R THE PERIOD ENDED 31 MARCH 2024 ii. PERMANENT ENDOWMENT FUNDS- SUMMARY OFTOTAL RETURN MOVEMENTS Art lameel Fashlon Iran Porter General rotal At l Aprll 2023 Trust for investment Gift component of the permanent endowment Inflationary uplift Unapplied total rettjrn 10,300,0¢)0 268,892 L875,000 750,000 683,823 13,8n,715 2,689,818 11,719,348) 77.662 19,3121 541,533 164,9321 212,919 125.8741 196,473 3.718,405 123,6521 11.843.118) Totol 11.270,470 337,242 2,351,601 937.045 856.644 15.753,001 Movements In the reportln¢ perlod Glft of endowment funds Investment return.. realised and unrealised gains Less.. investment management Costs 1,138,474 34,066 237,544 94,655 86,533 591.272 133,6651 11,0071 17,0241 12.7991 12.5591 147,0541 Total 104.809 33,059 230,520 91,856 83,974 544.218 Ineome paid out to restrirted fund5 in the reporting period Transfer to expendable endowment 110,9331 110,9331 176,2271 130.3741 127.7681 lia43691 Net movement In the reptsrtin¢ perlod.. 1.104,809 22,126 154293 61,481 56,206 398.916 At 31 March 2024 Trust for investment Gift component of the permanent endowment Inflationary uplift Unapplied total retum 10,300.000 268.892 1.875,000 750,000 683,821 13.877,715 3,118,096 11.042,8171 90.477 630,894 248,527 229,026 1,>17.020 11.042.817) Totol 12,375,179 359.369 1505,894 998,527 912.849 17,151,918 22
THE V&A FOUNDATION NOTES TOTHE FINANCIALSTATEMENTS FOR THE PERIOD ENDED 31 MARCH ZO24 PERMANENf ENIX)WMENT FUNDS-5UMMARY OF TOTAL RÉTURN MOVEMENTS Icontinuedl Artjameel Fashknn Iran Porter Geft•r•l Totsl At l Aprll 2022 Trust for investment Gift component of the permanent endowment Inflationary uplift Unapplied totsl return 10,300,000 26&892 L875,000 750.000 683,823 13,877.715 1.634,424 176,0701 46.081 39,859 321,323 277,941 125.172 110,751 116,255 101,248 2.24J.256 453.730 Total 11,854354 35485Y 2.474.264 985.923 901,317 16,574.701 Movtmènts in th¢ reportlnB pevlod Gift of endowment funds Investrnent return.. rea1¢5ed and unalised gains Less.. investment management costs 1534,2921 115,9871 1111,4811 144,4221 140,6101 46,7931 153.5931 11,6041 111,1821 14,4561 14,0731 {74,$) Tot•1 1587.8851 {17,5) lll2.6631 148,8781 144,6841 1811,7011 Incorne paid outto restricted funds in the reporting period Trallsferto expendable endowment Netmovement In the reportlrtgperlod.. 1587.8851 {17,591) 1122,663) 148,87BI 144,6841 1821,701) At JI Mah 2023 Trust for investment Gift component of the permanent endowrnent Inflationary uplift Unapplied totsl return 10,300,000 268,892 1,875,000 750.000 6B3,823 13.877,715 2.689,818 11,719.3481 77,662 19,3121 541,533 164,9321 212,919 125,8741 196,473 123,6521 3.718,405 11,043,118) Totol 11,270.470 337,242 2,351,601 937,045 856.644 15,753,002 23
THÉ V&A FOUNDATION NOTESTO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2024 ii. PERMANENT ENI)OWMENT FUNDS- SUMMARY OFTOTALRETURN MOVEMENTS Icontinuodl The Charity Tru5tee5 have exerclsed their poweTS to adopt a total return approach under sertion 104A of the Charities Act 2011 as amended bytheTrust (Capital and Income) Act 2013. The terms of thejameel Endowment require an inflationaiy uplift based on CPI to be added tothe value of the Trust for investment and this 15 not availablefor distribution. The inflationary upliftfor theyearwas £428,72812023.. £1,055,394). In accordance with the term50f theJameelTrustdeed, anysurplu5total return overand above the inflation3fy upliftand the 3.25% of the openingcapital value spendin8 rule is transferred to thejarneel refurbishrnent fund whi£h is treated as restiicted income fund and shown in Note lotothefinancial 5taternent5. The terms of the otherendowment5 do not require an inflationary uplift,. however.thetrustees have adopted a policyof maintaining the real value of the trusts for investment and therefore a similar treath)ent has been applied. RELATED PARTY TRAN5ACTK)NS The Foundation has one Trustee in common with the VictorI3 and Albert Museum. While the museum provides accountin8 and administrative services, these are charged for on an arm'5 length basis and the Foundation is run independently from, and is not tontrolled by, the museum. During the year grants of £574,000 were payable by the Foundation tothe Museum12023.. £739,079). Atyear end no8r3nt iemained to be paid over to the museum.12023.. £nill 13. POST BALANCE SHEET EVENr There were no p05t balance sheet events. 24