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2021-03-31-accounts

REGISTERED COMPANY NUMBER: 07769242 (England and Wales) REGISTERED CHARITY NUMBER: 1145031

TRUSTEES' REPORT AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

FOR

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

Watts Gregory LLP Chartered Accountants Elfed House Oak Tree Court Cardiff Gate Business Park CARDIFF County of Cardiff CF23 8RS

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Page
Trustees' Report 1 to 4
Independent Examiner's Report 5
Statement of Financial Activities 6
Balance Sheet 7 to 8
Cash Flow Statement 9
Notes to the Cash Flow Statement 10
Notes to the Financial Statements 11 to 23
Detailed Statement of Financial Activities 24 to 25

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objects

As a result of a governance review undertaken during 2018, the trustees decided to adopt the following vision and mission statements and accompanying values.

Vision

To deliver an inspiring and entertaining experience to a 21st century audience that increases their understanding of one of the finest Regiments in the British Army.

Mission

To tell the stories of the Royal Welsh and its antecedent Regiments, including that of the 1879 Anglo-Zulu War, in order to inspire and educate, foster corporate memory and help to sustain the connection between the Army and society to support the avoidance of future warfare.

Values

As a Museum we:

Public benefit

The organisation's trustees can confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. Significant activities that were undertaken during the year that demonstrate public benefit are set out on the following pages.

ACHIEVEMENT AND PERFORMANCE

The year was most significantly affected by the COVID-19 pandemic. Whilst the Museum had to shut for large parts of the year (we closed on 18 March 2020 and re-opened on 6 August) there were also short 'firebreak' periods of closure as well as a long closure from December 2020 to 17 May 2021. We worked within Government direction and guidelines to open safely when we could (such as using pre-booked time slots). This inevitably led to reduced footfall and visitor income, and our education programme was badly affected. We were however very fortunate to benefit from six grants.

We used this period wisely:

Page 1

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

ACHIEVEMENT AND PERFORMANCE

FINANCIAL REVIEW

Income for the year was £555,738 (2020: £94,548). Of this £8,420 (2020: £24,619) related to restricted activities. Net income for the year as shown in the SOFA was £435,222 (2020: net expenditure £26,998).

Despite the reduction in income from charitable activities resulting from the closures enforced by COVID-19 and little reduction in the fixed cost base, the year ended with a surplus of £435,222. The £392,000 donation received from the conversion of the balance of the loan from the Royal Welsh Regimental Museum Trust by The Royal Regiment of Wales (24th / 41st) (Expendable) Common Investment Fund in June 2020 and the receipt of COVID support grants of £138,000 contributed to this large surplus.

The conversion of the above loan has removed a major liability from the Museum's future balance sheets.

Reserves policy

At 31 March 2021 total reserves were £885,054 (2020: £449,832), of these none related to restricted reserves. Free reserves at 31 March 2021 equated to £27,239. This is calculated as the total reserves, less restricted and designated reserves, less amounts invested in fixed assets.

Reserves are held for various reasons including adding material to the collection, covering deficits on operating income, substantial repairs, special projects, and also to allow for match funding against grant applications. Restricted income is listed separately in the accounts according to SORP FRS 102.

Financial and risk management objectives and policies

As part of standard management practice, the Museum has identified a number of risks that could adversely impact its operation. These cover financial, governance, operational and collection related matters. Each of these risks has been quantified and appropriate control measures introduced to provide suitable mitigation. The risk register is monitored regularly by the Curatorial team, and any concerns reported to the next meeting of the Museum's trustees.

FUTURE PLANS

As the restrictions caused by the pandemic ease, our priorities for the following year are:

Page 2

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its Memorandum and Articles of Association and constitutes a company limited by guarantee, as defined by the Companies Act 2006.

Recruitment, appointment and Induction of new trustees

During the 2018 governance review, a skills audit was conducted on the Trustees and a number of pertinent gaps identified. The review of skills and experience on the Trustee Board is now a regular item for consideration by the Trustee Board and identifying suitable candidates is an ongoing process, which has resulted in several new appointments to the Trustee Board, to fill experience gaps.

After due diligence enquiries into the suitability of candidates, new trustees are invited to apply to join the board, and if appointed, are co-opted to the Trustee Board by the Directors, their appointment being then subject to confirmation by the Directors and Members in General Meeting.

New Trustees are provided with copies of the Company / Charity governing documents by the Company Secretary and are given the opportunity to raise any queries and are encouraged to ask for any information, advice and clarification they feel would be helpful.

All Trustees are required to complete and sign a Declaration of Interests form each year, and the matter of conflict of interests is a standard agenda item at every Board meeting.

Renewal of trustees

Mr Peter Kinsman was appointed to the board in the role of Treasurer on 29 October 2020.

Three trustees left the museum during the year. We are very grateful to all of them for the time and experience they have brought. As part of our annual process of reviewing and renewing trustees, two of the trustees resigned but were eligible for re-appointment. Rhodri Traherne chose not to be re-elected. Colonel Tim Van-Rees was re-appointed both as trustee and Vice Chair. Dan Clayton-Jones left in July 2020 and The Hon Dame Shân Legge-Bourke left as a trustee in March 2021, but both remain strong supporters of the Museum.

Staff changes

At the end of the year the curator, Richard Davies, moved to another military museum after many years' service to our Museum. The trustees appointed the deputy-curator, Amanda Rosewarne as interim-curator and she has now been appointed permanent curator. Pending the planned work on future operations it has been decided not to appoint a deputy-curator.

Arrangements for setting pay and remuneration

Rates of pay for newly recruited staff are determined through analysis of the labour market for museum staff and affordability. Across the board annual pay increases are not awarded automatically, but according to affordability and included in the forecast budget which is subject to Board approval before the start of the financial year. Individual staff members can be awarded modest increases by the Trustee Board in recognition of outstanding performance or other exceptional circumstances.

Volunteers

Our volunteers are a key part of the team and we have worked hard to stay in touch with all of them and to understand what contribution they could bring during the pandemic. As we expand our opening times again, we will consider whether we need to expand their number to achieve a sustainable and sufficient operating model.

Organisational structure

The Royal Welsh Regimental Museum Trust is governed by a group of up to sixteen trustees and one Regimental representative. The Charity is governed by its Articles of Association, adopted in 2011, which clearly explains how the Charity and trustees should perform their duties. The trustees receive no remuneration for their work.

The trustees delegate the daily operation of the Museum to the Museum Operations Committee, working closely with the Curator, who in turn manages the Museum's staff and volunteers.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number 07769242 (England and Wales)

Page 3

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

Registered Charity number

1145031

Registered office

The Royal Welsh Regimental Museum The Barracks The Watton Brecon Powys LD3 7EB

Trustees

Brig (Rtd) R N Wardle OBE DL - Chair Lt Gen J F P Swift OBE - Chair until retired Retired 11 October 2021 Col (Rtd) T J Van-Rees MBE ED DL - Vice Chair Mr P F Kinsman TD FCCA - Treasurer Appointed 29 October 2020 Mrs D E Cresswell Mr R C May-Hill FCA Col (Rtd) R L Traherne KStJ Resigned 18 December 2020 Mr D M Warren LLB Dame S Legge-Bourke Resigned 19 March 2021 Mr D Clayton-Jones OBE KStJ TD DL Resigned 30 July 2020 Dr M Williams Resigned 25 June 2021 Mr N J Mansfield Appointed 3 September 2021 Mr N R Richardson

Appointed 29 October 2020

Resigned 18 December 2020

Resigned 19 March 2021 Resigned 30 July 2020 Resigned 25 June 2021 Appointed 3 September 2021 Appointed 3 September 2021

Senior management team

Mr R P Davies BA (Hons), Dip Mus.Stud., AMA - Curator Ms A Rosewarne - Deputy Curator (& Interim Curator)

Resigned 17 April 2021 Appointed Curator 1 October 2021

Company Secretary

Mr R P Davies Mr D M Warren

Resigned 17 April 2021 Appointed 17 April 2021

Independent Examiner

Watts Gregory LLP Chartered Accountants Elfed House Oak Tree Court Cardiff Gate Business Park CARDIFF County of Cardiff CF23 8RS

Bankers

The Royal Bank of Scotland plc Holt's Branch Lawrie House Victoria Road Famborough Hampshire GU14 7NR

Investment Advisers

Smith and Williamson 25 Moorgate London EC2R 6AY

Approved by order of the Board of Trustees on 9th November 2021 and signed on its behalf by:

Mr P F Kinsman TD FCCA - Treasurer

Page 4

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

Independent examiner's report to the trustees of The Royal Welsh Regimental Museum Trust ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2021.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ACCA which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or

  2. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

  3. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Julia Mortimer FCCA Watts Gregory LLP Chartered Accountants Elfed House Oak Tree Court Cardiff Gate Business Park CARDIFF County of Cardiff CF23 8RS

Date: 11 November 2021

Page 5

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
536,493
Charitable activities
6
Education of the public in history and military
accomplishments
2,630
Other trading activities
4
1,779
Investment income
5
6,266
Other income
150
Total
547,318
EXPENDITURE ON
Raising funds
7
1,798
Charitable activities
8
Education of the public in history and military
accomplishments
94,981
Total
96,779
Net gains/(losses) on investments
(2,021)
NET INCOME/(EXPENDITURE)
448,518
Transfers between funds
24
1,704
Net movement in funds
450,222
RECONCILIATION OF FUNDS
Total funds brought forward
434,832
TOTAL FUNDS CARRIED FORWARD
885,054
Restricted
funds
£
-
8,420
-
-
-
8,420
-
21,716
21,716
-
(13,296)
(1,704)
(15,000)
15,000
-
2021
Total
funds
£
536,493
11,050
1,779
6,266
150
555,738
1,798
116,697
118,495
(2,021)
435,222
-
435,222
449,832
885,054
2020
Total
funds
£
16,661
60,143
7,237
10,147
360
94,548
4,132
116,688
120,820
(726)
(26,998)
-
(26,998)
476,830
449,832

The notes form part of these financial statements

Page 6

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

BALANCE SHEET 31 MARCH 2021

Unrestricted
funds
Notes
£
FIXED ASSETS
Intangible assets
15
2,611
Tangible assets
16
8,191
Heritage assets
17
15,853
Investments
18
28,346
55,001
CURRENT ASSETS
Stocks
19
7,630
Debtors
20
274,679
Cash at bank and in hand
562,284
844,593
CREDITORS
Amounts falling due within one year
21
(14,540)
NET CURRENT ASSETS
830,053
TOTAL ASSETS LESS CURRENT LIABILITIES
885,054
CREDITORS
Amounts falling due after more than one year
22
-
NET ASSETS
885,054
FUNDS
24
Unrestricted funds
Restricted funds
TOTAL FUNDS
Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2021
Total
funds
£
2,611
8,191
15,853
28,346
55,001
7,630
274,679
562,284
844,593
(14,540)
830,053
885,054
-
885,054
885,054
-
885,054
2020
Total
funds
£
3,323
10,881
12,885
30,494
57,583
9,005
282,489
496,415
787,909
(3,660)
784,249
841,832
(392,000)
449,832
434,832
15,000
449,832

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The notes form part of these financial statements

Page 7

continued...

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

BALANCE SHEET - continued 31 MARCH 2021

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 9th November 2021 and were signed on its behalf by:

Mr P F Kinsman TD FCCA - Treasurer

The notes form part of these financial statements

Page 8

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Purchase of intangible fixed assets
Purchase of tangible fixed assets
Purchase of heritage assets
Purchase of fixed asset investments
Sale of fixed asset investments
Interest received
Net cash provided by/(used in) investing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period
2021
£
63,757
63,757
-
(648)
(2,968)
-
126
5,602
2,112
65,869
49
6,415
562,284
2020
£
(27,958)
(27,958)
(3,560)
(1,323)
(7,200)
(25,372)
641
9,261
(27,553)
(55,511)
551,926
496,415

The notes form part of these financial statements

Page 9

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES


ACTIVITIES
Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Losses on investments
Interest received
Decrease in stocks
Decrease in debtors
(Decrease)/increase in creditors
Net cash provided by/(used in) operations
2.
ANALYSIS OF CHANGES IN NET FUNDS
2021
£
435,222
4,050
2,021
(5,602)
1,375
7,810
(381,119)
63,757
2020
£
(26,998)
3,508
726
(9,261)
1,372
750
1,945
(27,958)
ANALYSIS OF CHANGES IN NET FUNDS
At 1/4/20 Cash flow At 31/3/21
£ £ £
Net cash
Cash at bank and in hand 496,415 65,869 562,284
496,415 65,869 562,284
Debt
Debts falling due after 1 year (392,000) 392,000 -
(392,000) 392,000 -
Total 104,415 457,869 562,284

The notes form part of these financial statements

Page 10

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. STATUTORY INFORMATION

The Royal Welsh Regimental Museum Trust is a company limited by guarantee incorporated in Wales within the United Kingdom. The registered office is The Watton, Brecon, Powys, LD3 7EB.

The financial statements are presented in Sterling (£), the company's functional currency, and rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at fair value.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received, and the amount can be measured reliably.

This includes capital grants

Donations and legacies income

Donations and legacies income includes donations, gifts and grants that provide core funding or are of a general nature are recognised where there is entitlement, probability of receipt and the amount can be measured with sufficient reliability. Such income is only deferred when the donor specifies it must be used in future accounting periods or the donor has imposed conditions which must be met before the charity has unconditional entitlement.

Income from charitable activities

Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions. This income is recognised as the related services are provided and there is entitlement, probability of receipt and the amount can be measured with sufficient reliability. Income is deferred when the amounts received are in advance of the performance of the service or event to which they relate.

Other trading activities income

Income from other trading activities includes income received under contract. This income is recognised as the related services are provided and there is entitlement, probability of receipt and the amount can be measured with sufficient reliability. Income is deferred when the amounts received are in advance of the performance of the service or event to which they relate.

Investment income

Investment income is recognised on a receivable basis.

Donated goods

Income received from donated goods is recognised on the sale of the goods.

It is not the policy of the charity to show income net of expenditure.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

Page 11

continued...

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

2. ACCOUNTING POLICIES - continued

Expenditure

Expenditure on raising funds include costs of fundraising, events and shop expenditure.

Expenditure on charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs are those costs that, whilst necessary to deliver an activity, do not themselves produce or constitute the output of the charitable activity. This includes governance costs which are those costs associated with meeting the constitutional and statutory requirements of the charity and include the accountancy fees and costs linked to the strategic management of the charity.

Intangible assets

Intangible assets are capitalised at cost.

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Website development costs - Over 5 years

Tangible fixed assets

Fixed assets are capitalised at cost.

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Fixtures and fittings - Over 10 years Computer Equipment - Over 10 years

Heritage assets

Heritage assets are recognised on the balance sheet and initially measured at cost when purchased or if donated, their valuation if known. Assets are subsequently stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Fair values for donated assets are estimated by reference to market prices.

Those heritage assets currently recognised on the balance sheet have indefinite lives and are therefore not depreciated but reviewed at each reporting date for impairment.

Where information on the cost or valuation of heritage assets is not available or the cost of providing such information significantly outweighs any benefit to the users of the accounts then heritage assets are not recognised on the balance sheet.

The Museum maintains a register for its collections of heritage assets which records the nature, provenance and current location of each asset.

Investments

Investments are included at market value at the balance sheet date. Realised and unrealised gains or losses on investments are shown separately on the face of the statement of financial activities.

Investment income is recognised on a receivable basis.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Page 12

continued...

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

2. ACCOUNTING POLICIES - continued

Fund accounting

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company makes contributions to personal pension schemes on behalf of its employees. Contributions are charged to the Statement of Financial Activities in the period to which they relate.

Termination payments

The charitable company recognises termination benefits as a liability and an expense only when the entity is demonstrably committed either to terminate the employment of an employee or group of employees before the normal retirement date or to provide termination benefits as a result of an offer made in order to encourage voluntary redundancy.

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.

Concessionary loans are recognised and measured initially at the transaction value, with the carrying amount adjusted in subsequent years to reflect repayments and accrued interest.

Debtors

Trade debtors and other debtors are recognised at the settlement amount due after any trade discounts offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

3. DONATIONS AND LEGACIES

Donations
Bequests
Grants
2021
£
398,133
360
138,000
536,493
2020
£
16,651
10
-
16,661

Included within donations above is an amount of £392,000 being a loan from The Royal Regiment of Wales (24th/41st) (Expendable) Common Investment Fund that was waived in June 2020.

Grants received, included in the above, are as follows:

2021
£
Powys County Council - Covid-19 Business Support grant
45,000
Welsh Government - Wales Cultural Recovery Fund
83,000
Welsh Government - Resilience grant (see note below)
10,000
138,000
2020
£
-
-
-
-

The Welsh Government Resilience grant was funded by Welsh Government through the Museums, Archives and Libraries Division, and the Federation of Museums and Art Galleries of Wales.

Page 13

continued...

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

4.
OTHER TRADING ACTIVITIES
Shop sales
Recharge of postage, photocopying and medal ribbon etc.
5.
INVESTMENT INCOME
Investment income
Deposit account interest
Interest receivable - loan
6.
INCOME FROM CHARITABLE ACTIVITIES
Museum operation - admission receipts
Grants
Grants received, included in the above, are as follows:
Army Museums Ogilby Trust
AIM
The Friends of The Royal Welsh Regimental Museum
Art Fund
V&A Museum
Federation of Museums and Art Galleries of Wales
The National Manuscripts Conservation Trust
Waterloo 200 Ltd - The Maker Revolution Project
2021
£
1,699
80
1,779
2021
£
664
1,002
4,600
6,266
2021
£

2,630
8,420
11,050
2021
£
-
135
1,704
-
-
700
4,681
1,200
8,420
2020
£
7,143
94
7,237
2020
£
886
4,606
4,655
10,147
2020
£
35,524
24,619
60,143
2020
£
5,028
165
6,699
8,798
3,272
657
-
-
24,619

Page 14

continued...

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

7. RAISING FUNDS

Raising donations and legacies
Shop expenditure
Museum event expenses
Investment management costs
Investment management fees
Aggregate amounts
8.
CHARITABLE ACTIVITIES COSTS
Direct
Costs (see
note 9)
£
Education of the public in history and
military accomplishments
86,605
9.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Staff costs
Staff costs – Deputy Curator
Motor and travel expenses
Recruitment and training
Insurance
Education
Collection management
Postage and stationery
Advertising
Sundries
Website and internet
Repairs and renewals
Subscriptions
Bank and credit card charges
Computer expenses
Display improvements
Telephone
Fixed asset depreciation / Amortisation charges
Subscriptions
2021
£
1,613
59
1,672
2021
£
126
1,798
Support
costs (see
note 10)
£
30,092
2021
£
63,063
-
-
3,509
486
10,946
188
-
722
1,205
15
-
1,191
795
-
70
4,050
365
86,605
2020
£
3,292
598
3,890
2020
£
242
4,132
Totals
£
116,697
2020
£
56,568
15,930
1,405
288
6,871
406
4,925
839
1,318
3,333
1,752
626
52
879
493
2,305
-
3,508
394
101,892

Page 15

continued...

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

10. SUPPORT COSTS

SUPPORT COSTS
Governance
costs
£
Education of the public in history and military
accomplishments 30,092

11. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Net income/(expenditure) is stated after charging/(crediting):
2021 2020
£ £
Depreciation - owned assets 3,338 3,271
Website development costs amortisation 712 237
Independent examiners fees 2,300 2,500

12. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2021 or for the year ended 31 March 2020.

Trustees' expenses

During the year ended 31 March 2021 no trustees were reimbursed for expenses (2020: £195 to 1 trustee in respect of travel costs).

13. STAFF COSTS

Salaries
Social security
Pension contributions
Number of employees
Equivalent full-time employees
2021
£
61,966
499
598
63,063
5
3
2020
£
70,856
1,812
205
72,873
6
4

No employee received emoluments in excess of £60,000.

The total key management personnel remuneration benefits paid during the year was £55,124 (2020: £46,599).

There were no termination payments in the year ended 31 March 2021 (2020: £375).

Page 16

continued...

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

14. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES – YEAR ENDED 31 MARCH 2020

Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
16,661
Charitable activities
Education of the public in history and military
accomplishments
35,524
Other trading activities
7,237
Investment income
10,147
Other income
360
Total
69,929
EXPENDITURE ON
Raising funds
4,132
Charitable activities
Education of the public in history and military
accomplishments
98,941
Total
103,073
Net gains/(losses) on investments
(726)
NET INCOME/(EXPENDITURE)
(33,870)
Transfers between funds
6,872
Net movement in funds
(26,998)
RECONCILIATION OF FUNDS
Total funds brought forward
As previously reported
446,530
Prior year adjustment
15,300
As restated
461,830
TOTAL FUNDS CARRIED FORWARD
434,832
Restricted
funds
£
-
24,619
-
-
-
24,619
-
17,747
17,747
-
6,872
(6,872)
-
15,000
-
15,000
15,000
Total
funds
£
16,661
60,143
7,237
10,147
360
94,548
4,132
116,688
120,820
(726)
(26,998)
-
(26,998)
461,530
15,300
476,830
449,832

Page 17

continued...

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

15. INTANGIBLE FIXED ASSETS

COST
At 1 April 2020 and 31 March 2021
AMORTISATION
At 1 April 2020
Charge for year
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020
16.
TANGIBLE FIXED ASSETS
COST
At 1 April 2020
Additions
At 31 March 2021
DEPRECIATION
At 1 April 2020
Charge for year
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020
17.
HERITAGE ASSETS
MARKET VALUE
At 1 April 2020
Additions
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020
Website
development
costs
£
3,560
237
712
949
2,611
3,323
Fixtures
and
Computer
fittings
equipment
Totals
£
£
£
31,889
1,323
33,212
-
648
648
31,889
1,971
33,860
22,249
82
22,331
3,189
149
3,338
25,438
231
25,669
6,451
1,740
8,191
9,640
1,241
10,881
Total
£
12,885
2,968
15,853
15,853
12,885
Website
development
costs
£
3,560
237
712
949
2,611
3,323
Fixtures
and
Computer
fittings
equipment
Totals
£
£
£
31,889
1,323
33,212
-
648
648
31,889
1,971
33,860
22,249
82
22,331
3,189
149
3,338
25,438
231
25,669
6,451
1,740
8,191
9,640
1,241
10,881
Total
£
12,885
2,968
15,853
15,853
12,885

The Museum has a collection of military artefacts covering the last 300 years which are held in support of the Museum’s primary objective of increasing knowledge, understanding and appreciation of the regiment.

Page 18

continued...

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

17. HERITAGE ASSETS - continued

The trustees do not consider that reliable cost or valuation information can be obtained for the vast majority of items held in the collection of artefacts. This is because of the diverse nature of the assets held, the number of assets held and the lack of comparable market values. The Museum does not therefore recognise these assets on its Balance Sheet, other than recent acquisitions which are reported at cost, where the object is purchased, or at the Museum curator’s best estimate of current value where the object is donated.

Expenditure which, in the trustees’ view, is required to preserve or clearly prevent further deterioration of individual collection items is recognised in the SOFA when it is incurred.

The main heritage assets recognised in the Balance Sheet include:

The Museum maintains a register for its collections of heritage assets which records the nature, provenance and current location of each asset.

18. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
Listed
investments
£
MARKET VALUE
At 1 April 2020 30,494
Disposals (126)
Revaluations (2,022)
At 31 March 2021 28,346
NET BOOK VALUE
At 31 March 2021 28,346
At 31 March 2020 30,494

There were no investment assets outside the UK.

Analysis of investments between funds:

Listed investments
UK cash held as part of portfolio
2021
£
28,346
-
28,346
2020
£
30,527
(33)
30,494

Page 19

continued...

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

19.
STOCKS
Stocks
20.
DEBTORS
Amounts falling due within one year:
Trade debtors
Other debtors
Other loans
Prepayments and accrued income
Amounts falling due after more than one year:
Other loans
Aggregate amounts
21.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Other creditors
Accruals and deferred income
22.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Other loans (see note 23)
23.
LOANS
An analysis of the maturity of loans is given below:
Amounts falling due between two and five years:
Other loans - 2-5 years
2021
£
7,630
2021
£
3,985
520
3,565
4,014
12,084
262,595
274,679
2021
£
11,752
-
2,788
14,540
2021
£
-
2021
£
-
2020
£
9,005
2020
£
4,562
535
3,400
1,332
9,829
272,660
282,489
2020
£
1,054
106
2,500
3,660
2020
£
392,000
2020
£
392,000

The loan of £392,000 from The Royal Regiment of Wales (24th/41st) (Expendable) Common Investment Fund was waived by The Royal Regiment of Wales (24th/41st) (Expendable) Common Investment Fund in June 2020. See note 3 Donation income.

Page 20

continued...

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

24. MOVEMENT IN FUNDS

At 1/4/20
£
Unrestricted funds
General fund
434,832
Designated fund – Future Museum move or
-
renovation
Designated fund – fixed asset fund
-
Designated fund – loan to sister Museum
-
Designated fund – Policy operating reserve
-
Designated fund – COVID Support
-
Restricted funds
Museum development fund
15,000
Collection acquisitions
-
15,000
TOTAL FUNDS
449,832
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
547,318
Restricted funds
Museum development fund
-
Museum operations
135
Collection acquisitions
1,704
The Conservation of the 41st Regiment's
early archive
4,681
Maker Revolution Project
1,200
Welsh Museum’s Festival - Victorian life
and soldiers
70
0
8,420
TOTAL FUNDS
~~555,738~~
Comparatives for movement in funds
Prior
year
At 1/4/19
adjustment
£
£
Unrestricted funds
General fund
430,678
15,300
Artefacts Fund -
Regimental Museum of the
Royal Welsh
15,852
-
446,530
15,300
Restricted funds
Museum development
fund
15,000
-
Collections
-
-
15,000
-
TOTAL FUNDS
461,530
15,300
Net
movement
in funds
£
448,518
-
-
-
-
-
(15,000)
1,704
(13,296)
435,222
Resources
expended
£
(96,779)
(15,000)
(135)
-
(4,681)
(1,200)
(700)
(21,716)
~~(118,495~~)
Net
movement
in funds
£
(33,870)
-
(33,870)
-
6,872
6,872
(26,998)
Transfers
between
At
funds
31/3/21
£
£
(856,111)
27,239
500,000
500,000
26,655
26,655
266,160
266,160
40,000
40,000
25,000
25,000
-
-
(1,704)
-
(1,704)
-
-
885,054
Gains and
Movement
losses
in funds
£
£
(2,021)
448,518
-
(15,000)
-
-
-
1,704
-
-
-
-
-
-
-
(13,296)
~~(2,021~~)
~~435,222~~
Transfers
between
At
funds
31/3/20
£
£
22,724
434,832
(15,852)
-
6,872
434,832
-
15,000
(6,872)
-
(6,872)
15,000
~~-~~
~~449,832~~

Pago 21 Continuod...

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

24. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Incoming
resources
£
Unrestricted funds
General fund
69,929
Restricted funds
Museum operations
8,586
Monmouthshire Regiment exhibition
3,963
Collections
6,872
Exhibition
5,198
24,619
TOTAL FUNDS
94,548
Resources
Gains and
Movement
expended
losses
in funds
£
£
£
(103,073)
(726)
(33,870)
(8,586)
-
-
(3,963)
-
-
-
-
6,872
(5,198)
-
-
(17,747)
-
6,872
(120,820)
(726)
(26,998)

Designated fund – Future Museum move or renovation

Funds of £500,000 have been set aside by the Board towards a future Museum move or renovation.

Designated fund – Fixed asset fund

Funds of £26,655 have been set aside to match the net book value of intangible assets, tangible fixed assets and Heritage assets.

Designated fund – loan to sister Museum

Funds of £266,160 have been set aside to match a loan balance due to the charity from a sister Museum, Firing Line Limited.

Designated fund – Policy operating reserve

Funds have been specifically set aside to cover two years of operating costs of the Museum as a policy reserve.

Designated fund – COVID support

During the year the charity was successful in receipt of COVID support grants as outlined within Note 3. Funds of £25,000 unspent at the year end have been set aside for best use by the Board.

Museum development fund

Related to a bequest from the late Major B Waters specifically for the redevelopment of the Brecon Museum This funding was spent in full during the financial year.

Collection acquisitions

During the year grant funding of £1,704 was received from The Friends of The Royal Welsh Regimental Museum as a contribution to the acquired portrait of a young officer.

The Conservation of the 41st Regiment's early archive

Funded by The National Manuscripts Conversation Trust towards the project 'The conservation of the 41st Regiments early archive. The project was completed in December 2020.

Maker Revolution Project

Funded by Waterloo 200 Ltd, this is an educational legacy project. The museum has invited by the project to take part and was the only Welsh museum to be involved. Working alongside Christ College.

Welsh Museum’s festival

Funding of £700 was received from the Federation of Museums and Art Galleries of Wales - Welsh Museum festival. The project title was 'Victorian life and soldiers' and funding was for supplies to run a Victorian workshop as part of the Welsh Museum festival.

Museum operations

Funding of £135 was received from AIM towards for a member of the team to attend a firearms course with the National Army Museum.

Page 22

continued...

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

24. MOVEMENT IN FUNDS - continued

Prior year funds

Funding was received from the Army Museums Ogibly Trust to run an exhibition on the Monmouthshire Regiment.

Grant funding was received from the Art Fund and the V&A Museum to purchase a portrait of an officer of the 24th Regiment of Foot by Sir George Chalmers, 1754.

Funding was received from Art Fund to finance an exhibition at the Museum.

Transfers between funds

A transfer of £1,704 has been made from the Collections fund to the general fund to reflect amounts spent on Heritage asset additions during the financial year.

Transfers totalling £857,815 have been made from the general fund to a number of new designated funds as approved by the Board.

25. EMPLOYEE BENEFIT OBLIGATIONS

The charity operates a defined contribution scheme. The pension costs charge for the year represents contributions payable by the charity to the scheme and amounted to £598 (2020 - £205). At the year end there were no outstanding contributions (2020 - £106).

26. RELATED PARTY DISCLOSURES

During the year the charity entered into transactions with the following related parties:

Name of related party
Relationship
Firing Line Limited
Trustees in common
The Friends of the Royal Welsh Regimental Museum
Trustees in common
Name of related party
Transaction
2021
Firing Line Limited
Bookkeeping and payroll
costs
£
3,200
Loan interest receivable
4,600
The Friends of the Royal Welsh Regimental
Grants received
1,704
Museum
Name of related party
Nature of balance
2021
£
Firing Line Limited
Loan debtor
266,160
2020
£
4,800
4,655
6,699
2020
£
276,060

During the year unconditional donations of £40 were received from trustees (2020: £Nil).

At the 31 March 2021 an amount of £1,000 was owed to a Trustee, Col (retd) T J Van-Rees MBE ED DL in respect of insurance costs paid on behalf of the charity.

27.

FINANCIAL INSTRUMENTS

Financial assets
Financial assets measured at fair value
2021
£
28,346
2020
£
30,494

Financial assets measured at fair value comprise of fixed asset investments.

28. CONTINGENT ASSETS

The Regimental Museum was bequeathed a property in 2002. However, the property is the subject of a life tenancy agreement held by a third party and as such will not be recognised in the financial statements until the conditions for recognition have been met.

The trustees estimate the open market value of this property to be approximately £420,000.

Page 23

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Bequests
Grants
Other trading activities
Shop sales
Recharge of postage, photocopying and medal
ribbon etc.
Investment income
Investment income
Deposit account interest
Interest receivable - loan
Charitable activities
Museum operation - admission receipts
Grants
Other income
Sundry income
Total incoming resources
EXPENDITURE
Raising donations and legacies
Shop expenditure
Museum event expenses
Investment management costs
Investment management fees
Charitable activities
Wages
Social security
Pensions
Motor and travel expenses
Recruitment and training
Insurance
Education
Collection management
Carried forward
2021
£
398,133
360
138,000
536,493
1,699
8
0
1,779
664
1,002
4,600
6,266
2,630
8,420
11,050
150
555,738
1,613
59
1,672
126
61,966
499
598
-
-
3,509
486
10,946
78,004
2020
£
16,651
10
-
16,661
7,143
94
7,237
886
4,606
4,655
10,147
35,524
24,619
60,143
360
94,548
2020
£
16,651
10
-
16,661
7,143
94
7,237
886
4,606
4,655
10,147
35,524
24,619
60,143
360
94,548
24,619
60,143
360
94,548
3,292
598
3,890
242
55,785
578
205
1,405
288
6,871
406
4,925
70,463

This page does not form part of the statutory financial statements

Pagè 24

THE ROYAL WELSH REGIMENTAL MUSEUM TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Charitable activities
Brought forward
Postage and stationery
Advertising
Sundries
Website and internet
Repairs and renewals
Subscriptions
Bank and credit card charges
Computer expenses
Display improvements
Telephone
Deputy Curator
Website development costs amortisation
Fixtures and fittings
Computer equipment
Subscriptions
Support costs
Governance costs
Independent examiners remuneration
Legal and professional fees
Total resources expended
Net income/(expenditure) before gains and
losses
Net gain/(losses) on investments
Net income/(expenditure)
2021
£
78,004
188
-
722
1,205
15
-
1,191
795
-
70
-
712
3,189
149
365
86,605
2,400
27,692
30,092
118,495
437,243
(2,021)
435,222
2020
£
70,463
839
1,318
3,333
1,752
626
52
879
493
2,305
-
15,930
237
3,189
82
394
101,892
2,500
12,296
14,796
120,820
(26,272)
(726
)
(26,998)

This page does not form part of the statutory financial statements

Pagè 25