Registered Charity No. 1146784 (England & Wales) 

Imperial War Museum Development Trust Annual Report 

And Accounts 

for the year ended 31 March 2022 



**Imperial War Museum Development Trust Report of the trustees** For the year ended 31 March 2022 

The trustees present their annual report and financial statements of the charity for the year end 31[st] March 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s trust deed, the Charities Act 2011 and 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 the Republic of Ireland (FRS 102) (effective 1 January 2015). 

## **Our purpose and activities** 

The trustees have referred to the Charity Commission’s guidance on public benefit when setting the aims and objectives of, and in the planning of future activities of, the Trust. In particular, the trustees have considered how planned activities will contribute towards the aims and objectives they have set. 

The main activities and aims of the Trust are set out below. All the Trust’s charitable activities are undertaken to further its charitable purposes for the public benefit. 

The Trust was founded in order to acquire artefacts relating to the history and development of warfare and its impact on society; render assistance to the Imperial War Museum ("the Museum") on the preservation, maintenance and repair of objects in the Museum's custody for the purpose of exhibition to the public or for use in study or research; promote the study of the history of warfare and its impact on society, and to improve amenities and facilities for visitors and students at the Museum. 

## **Achievements and performance** 

## **Financial review** 

During the year £32,237 was received from the American Air Museum in Britain for investment purposes. In addition, £10,000 was received from the Laurence Misner Trust towards the General Fund. 

In May 2019, the trustees of the Trust purchased the freehold, at auction, of 22 acres of farmland at Ickleton, on which 18 units, which previously housed the Imperial War Museum’s nitrate film collection, sit. The tenancy agreement with Imperial War Museum was rolled over to the Trust on its existing terms, and the museum is now paying rent to the Trust. In line with actions agreed at the September Board meeting, Mills and Reeve were appointed to act on behalf of the Trust to review the lease between the Trust and IWM in respect of the Ickleton site. The conclusion reached by the Trustees was that the priority was to maximise the value of the land and achieve greatest flexibility in terms of future tenancies. 

At the August 2021 Board meeting, Trustees approved a grant of £20,000 to the Imperial War Museum Foundation to support its work, and a grant of £30,000 to Imperial War Museum to support the IWM War and Conflict Specialist Network project. 

## **Reserves policy** 

The Trustees’ policy is to maintain a level of reserves which will provide a stable basis for its continuing activities while at the same time ensuring excessive funds are not accumulated. 

1 



## **Imperial War Museum Development Trust Report of the trustees** 

For the year ended 31 March 2022 

The Balance Sheet shows a total fund balance of £4,787,403 of which £1,758,180 is restricted for the American Air Museum in Britain. The unrestricted balance of £3,029,223 equates to the free reserves of the Trust as at 31st March 2022. The Trustees consider this to be an adequate level for the current needs of the Trust. 

The reserves policy of the trust is reviewed by the Trustees at its Board meetings. 

## **Fundraising Policy** 

The Trust does not actively fundraise, receiving income during the year, mainly from the American Air Museum in Britain, for investment, and from time to time, from other sources, including the Imperial War Museum and the Laurence Misner Trust. 

The Imperial War Museums’ Development Team are available to inform and support any fundraising activities of the Trust, as part of the operating agreement held with Imperial War Museum. The team is committed to work to a best practice framework and are members of the Institute of Fundraising. The team do everything possible to meet the needs of potential supporters and protect vulnerable people. In particular, they comply with the Code of Fundraising Practice and all relevant data protection laws. No instances of non-compliance have been identified during the year. 

The Charity aims to respond to all complaints individually and in a timely manner. All complaints inform and influence the Trust’s approach to fundraising. During the year, the Development Trust was not notified by the Charity Commission of any complaints. 

## **Investment Review and Policy** 

Trustees review cash investments for both the American Air Museum restricted funds, and for the unrestricted funds at each Board meeting. 

## **Plans for future periods** 

At the August Board meeting, Trustees approved Tom Wright’s reappointment to the Chair for three years with effect from 1 November 2021. 

Membership of the Trust was discussed at both the August and December Board meetings, and succession planning was considered. 

Under Charity Commission rules, Trustees have a duty to maximise their investment in the land purchased at Ickleton. At the November 2021 Board meeting, Trustees discussed future options for the site, with an update provided on the use of the site by Imperial War Museums’ Executive Director of Operations and Commercial Services, John Brown. Trustees noted developments and agreed that Mr Brown should continue to pursue a range of options for the future use site. 

In August Trustees visited the Ickleton site. At the Board meeting after this visit, Mr Brown set out the context to the current state and use of the site. Work undertaken to conduct an appraisal of the site was paused due to the impact of the pandemic however Mr Brown’s team considered this to be an appropriate juncture to consider its options with regards to future use of the site. Trustees agreed that an appraisal should be undertaken and supported the commissioning of Savills to undertake a short study to understand what options were available, with a view to Savills’ work forming the basis of a decision on how next to proceed with the site. 

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**Imperial War Museum Development Trust Report of the trustees** For the year ended 31 March 2022 

## **Assessment of Going Concern** 

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. Having reviewed the financial position, and the forecast for 2022/23 the trustees consider that there are no material uncertainties about the charity’s ability as a going concern for 12 months from the date of the signing of these financial statements. Due consideration for the effects of the Covid-19 outbreak, which occurred before these financial statements were prepared and signed, has been taken. Trustees have a reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt a going concern basis in preparing the financial statements. 

## **Reference and administrative details** 

**Charity Registration number** 1146784 **Registered address** Imperial War Museum Lambeth Road London SE1 6HZ 

## _**Our advisors**_ 

**Independent auditors** Moore Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD **Bankers** Barclays Bank 1 Churchill Place London E14 5HP **Investment Managers** Sarasin Investment Funds Limited Juxton House 100 St Paul’s Churchyard London EC4M 8BU 

## _**Trustees**_ 

The trustees and officers serving during the year and since the year end up until the date of signing were as follows: 

Sir Thomas Harris CMG (to 12 October 2021) Mr Tom Wright CBE (Chair) Ms Diane Lees CBE FMA FRSA (Director-General) ex officio Dame Judith Mayhew Jonas DBE 

## _**Officers**_ 

Mr Jon Card ACA (Treasurer) 

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## **Imperial War Museum Development Trust Report of the trustees** 

For the year ended 31 March 2022 

Ms Gill Smith (Secretary to April 2022) Ms Katie Allwood (Secretary from May 2022) 

## **Structure, Governance and Management** 

## _**Governing Instrument**_ 

The Imperial War Museum Development Trust (the Trust) is a registered charity, number 1146784, and was originally constituted as an exempt charity, by a Declaration of Trust dated 8 September 1969, and updated on 2 June 2004.  Under sections 4, 12, 13, 14 and 15 of the Trust Deed, the trustees of the charity are empowered to receive, hold and administer funds or other assets entrusted to them by grant, gift or bequest for purposes appropriate to the functions of the Trust. 

At the 7[th] March 2012, existing trustees agreed a further amendment of the Trust Deed, enabling the reconstitution of the Trust in order to give it independence from the Imperial War Museum. The Charity was registered with the Charity Commission with effect from that date. 

## _**Appointment of trustees**_ 

The trustees of the Trust are the Director-General of IWM and at least two other persons appointed as trustees by the trustees. No person may be appointed as a trustee if as a result of their appointment the number of museum trustees would equal or exceed the number of independent trustees. The trustees using their powers to appoint trustees shall use their best endeavours to ensure that at any time the number of independent trustees exceeds the number of museum trustees. 

Each trustee appointed shall hold office for three years from the date of his appointment but may be appointed any number of times. The revised Deed of Trust includes a requirement that ensures that replacements for the independent trustees are made prior to their retirement, ensuring compliance with the stipulation that the Trust has a majority of independent Trustees. 

All new trustees will be trained through an induction with Imperial War Museum. 

## _**Organisation**_ 

The trustees are ultimately responsible for the policies, activities and assets of the Trust. The Trustees normally meet twice a year to review the developments with regard to the Trust, and make any important decisions. When necessary, the trustees seek advice and support from the Trust’s professional advisers including its bankers and auditors. The day to day management of the Trust’s activities is performed by the staff of the Imperial War Museum under an operating agreement. 

## _**Related parties**_ 

None of our trustees or key management personnel received remuneration or other benefit from their work with the charity. 

## _**Connected charities**_ 

4 



## **Imperial War Museum Development Trust Report of the trustees** 

For the year ended 31 March 2022 

Diane Lees is a trustee of Imperial War Museum Development Trust, Director General of Imperial War Museum, and a Vice President of the American Air Museum in Britain. In 2021/22, a grant of £30,000 was given to Imperial War Museum towards the salary of the Specialist Network Post, (2020/21 - £2,000,000 towards the Transforming Imperial War Museum London project), and £45,557 (2020/21 – 50,197) was given to the American Air Museum. 

## _**Risk Management**_ 

The trustees have assessed the current risks to which the Trust is exposed, in particular those relating to the specific operational areas of the charity and its finances, and have established an ongoing system of review. The trustees believe that by monitoring reserve levels, by ensuring controls exist over financial systems, and by examining the operational and business risks faced by the Trust, they have established effective systems to mitigate those risks. 

A risk register for the Development Trust has been set up and is regularly presented to Trustees for review. The ratings relating to risk of breaches in law and regulation (in respect of cybercrime and the implementation of GDPR) and the adverse economic climate were endorsed. 

## **Principal risks and uncertainties** 

The impact of Covid-19 has been considered on the charity’s future plans and budgeting processes and the effect of the outbreak will not have a significant impact into the March 2023 year end as the Trust does not actively fundraise, and only receives income from a limited number of sources. Trustees will continue to monitor the finances on a regular basis at their board meetings. The impact on the investment portfolio held at Sarasin’s has been noted in this year’s financial statements in note 11 – post balance sheet events of the financial statements. 

## **Trustees’ responsibilities in relation to the financial statements** 

The charity trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each  year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these accounts, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Statement of Recommended Practice (Accounting and Reporting by Charities) (the Charities’ SORP); 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and 

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## **Imperial War Museum Development Trust Report of the trustees** 

For the year ended 31 March 2022 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

This report was approved by the trustees on and signed on their behalf by 


J M Card ACA Date 18/07/22 

Treasurer 

6 



## **Independent Auditor’s Report to the Trustees of The Imperial War Museum Development Trust** 

## **Opinion** 

We have audited the financial statements of the Imperial War Museum Development Trust for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice). 

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 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **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 are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

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

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

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

## **Other information** 

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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. 

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

We have nothing to report in this regard. 

## **Opinions on other matters prescribed by the Charities Act 2011** 

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

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## **Independent Auditor’s Report to the Trustees of The Imperial War Museum Development Trust** 

- the information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the trustees’ annual report have been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion: 

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the charity’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 charity or to cease operations, or have no realistic alternative but to do so. 

## **Auditor’s Responsibilities for the audit of the financial statements** 

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. 

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

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

- Identify and assess 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 opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from 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 procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charity’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 appropriateness 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 

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## **Independent Auditor’s Report to the Trustees of The Imperial War Museum Development Trust** 

   - significant doubt on the charity’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 statements 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 events in a manner that achieves fair presentation. 

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

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

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

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

Our approach was as follows: 

- We obtained an understanding of the legal and regulatory requirements applicable to the charity and considered that the most significant are 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 charitable company complies with these requirements by discussions with management and those charged with governance. 

- We assessed the risk 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 management and those charged with governance. 

- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. 

- Based on this understanding, we designed specific appropriate audit procedures to identify instances of noncompliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. 

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

9 



## **Independent Auditor’s Report to the Trustees of The Imperial War Museum Development Trust** 

## **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 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charity and charity's members as a body, for our audit work, for this report, or for the opinions we have formed. 


Date: ……………….. 27 July 2022 

………………………………… **Moore Kingston Smith LLP, Statutory Auditor** 

Devonshire House 60 Goswell Road London EC1M 7AD 

**Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006** 

10 



## **The Imperial War Museum Development Trust Statement of Financial Activities for the year to 31st March 2022** 

|**The Imperial War Museum Development Trust**<br>**Statement of Financial Activities**<br>**for the year to 31st March 2022**||
|---|---|
|**Note**<br>**2**<br>Rental income<br>**3**<br>Other income<br>**Total Income**<br>**Expenditure**<br>**4**<br>_Expenditure on charitable activities_<br>Grants to Imperial War Museum<br>Other Grants<br>_Other_<br>**Total expenditure**<br>**5**<br>**Net movement in funds**<br>**Reconciliation of funds**<br>**8**<br>Total funds carried forward<br>**Income**<br>Donations & gifts<br>Investments<br>**Net income / (expenditure) and net movement**<br>Unrealised (losses) / gains in investments<br>Total funds brought forward|**Unrestricted Funds  Restricted Funds**<br>**Total Funds the year to**<br>**31st March 2022**<br>**Unrestricted**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**Total funds the**<br>**year to 31st March**<br>**2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**10,264**<br>**32,237**<br>**42,501**<br>25,000<br>-<br>25,000<br>**37,696**<br>**-**<br>**37,696**<br>37,696<br>-<br>37,696<br>**53,679**<br>**45,930**<br>**99,609**<br>59,073<br>50,455<br>109,528|
||**101,639**<br>**78,167**<br>**179,806**<br>121,769<br>50,455<br>172,224|
||**30,000**<br>**-**<br>**30,000**<br>2,000,000<br>-<br>2,000,000<br>**20,000**<br>**45,557**<br>**65,557**<br>-<br>50,196<br>50,196<br>**-**<br>**-**<br>-<br>-<br>-<br>**12,923**<br>**-**<br>**12,923**<br>10,826<br>-<br>10,826|
||**62,923**<br>**45,557**<br>**108,480**<br>2,010,826<br>50,196<br>2,061,022|
||**38,716**<br>**32,610**<br>**71,326**<br>(1,889,057)<br>258<br>(1,888,799)<br>**42,485**<br>**36,169**<br>**78,654**<br>345,593<br>293,228<br>638,821|
||**81,201**<br>**68,779**<br>**149,980**<br>(1,543,464)<br>293,486<br>(1,249,978)|
||**2,948,022**<br>**1,689,401**<br>**4,637,423**<br>4,491,486<br>1,395,915<br>5,887,401<br>**3,029,223**<br>**1,758,180**<br>**4,787,403**<br>2,948,022<br>1,689,401<br>4,637,423|



All recognised gains and losses are included in the statement of financial activities. The results for the year related to continuing operations. 

11 



## **The Imperial War Museum Development Trust Balance Sheet as at 31st March 2022** 

|**Note**<br>**Fixed Assets:**<br>Land<br>Investments<br>**5**<br>**Current Assets:**<br>Cash at bank and in hand<br>Debtors<br>**6**<br>**Liabilities**<br>**7**<br>**Net current assets**<br>**Net assets**<br>**The funds of the charity**<br>**Total charity funds**<br>**8**<br>Creditors falling due within one year|**Unrestricted Funds  Restricted Funds**<br>**Total Funds the year to**<br>**31st March 2022**<br>**Unrestricted**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**Total for the year**<br>**to 31st March 2021**<br>**631,032**<br>**-**<br>**631,032**<br>631,032<br>-<br>631,032<br>**2,025,648**<br>**1,713,876**<br>**3,739,524**<br>1,983,062<br>1,677,334<br>3,660,396|
|---|---|
||**2,656,680**<br>**1,713,876**<br>**4,370,556**<br>2,614,094<br>1,677,334<br>4,291,428|
||**356,406**<br>**78,050**<br>**434,456**<br>315,056<br>49,749<br>364,805<br>**25,402**<br>**11,811**<br>**37,213**<br>26,017<br>12,515<br>38,532|
||**381,808**<br>**89,861**<br>**471,669**<br>341,073<br>62,264<br>403,337<br>**(9,266)**<br>**(45,557)**<br>**(54,823)**<br>(7,145)<br>(50,197)<br>(57,343)|
||**372,542**<br>**44,304**<br>**416,846**<br>333,928<br>12,067<br>345,995|
||**3,029,223**<br>**1,758,180**<br>**4,787,403**<br>2,948,022<br>1,689,401<br>4,637,423|
||**3,029,223**<br>**1,758,180**<br>**4,787,403**<br>2,948,022<br>1,689,401<br>4,637,423|



The notes on pages 12 to 14 form part of these financial statements 

Dame Diane Lees DBE Trustee Approved by the trustees on 18/07/22 

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## **The Imperial War Museum Development Trust Statement of cash flows 31st March 2022** 

|**Cash flows from operating activities**<br>Net (expenditure) / income for the year<br>Interest Received<br>Decrease / (increase) in debtors<br>(Decrease) / increase in creditors<br>**Net cash (used in) generated by Operating activities**<br>**Cash flows from investing activities**<br>Fund management fees<br>Cash withdrawn from investments<br>Dividends and interest received<br>**Change in cash and cash equivalents**<br>Cash & cash equivalents in the year<br>Cash & cash equivalents at end of year|**2022**<br>**£**<br>71,326<br>(99,609)<br>1,319<br>(2,520)<br>**(29,484)**<br>(474)<br>-<br>99,609<br>**99,135**<br>69,651<br>364,805<br>**434,456**|**2021**<br>**£**<br>(1,888,799)<br>(109,528)<br>14,880<br>(2,477)|
|---|---|---|
|||**(1,985,924)**<br>1,201<br>1,000,000<br>109,528|
|||**1,110,729**<br>(875,195)<br>1,240,000|
|||**364,805**|



13 



## **The Imperial War Museum Development Trust** 

## **Notes to the Accounts** 

**for the year to 31st March 2022** 

## **1 Accounting Policies** 

## _**Basis of preparation**_ 

The financial statements have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 

Imperial War Museum Development Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes(s). 

Having reviewed the financial position, and the budgets for 2022/23 and 2023/24, the trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern for the 12 months from the date of signing these financial statements. Due consideration for the effects of the Covid-19 outbreak, which occurred before these financial statements were prepared and signed, has been taken. Trustees have also revised operational plans and expenditures and have a reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt a going concern concern basis in preparing these financial statements. 

## _**Income**_ 

Income consists of donations, investments and rent. 

Donations are recognised when the charity becomes legally entitled to the funds, any restrictions attached to the item(s) of income have been met. It is probable that the income will be received and the amount can be reasonably measured. 

Rent is received quarterly from a lease held with Imperial War Museum for the land held at Ickleton and included in the quarter in which it is due. 

## _**Interest Receivable**_ 

Interest on funds held on deposit and at the bank is included when receivable and the amount can be measured reliably by the charity and it is probable that the income will be received. 

## _**Expenditure and irrecoverable vat**_ 

Expenditure is recognised on an accruals basis in the period in which they are incurred. It includes related VAT which cannot be reversed. All expenses are allocated to the applicable expenditure headings. 

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, 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 classified under the following headings: a. Grants payable to the museum are included in the statement of financial activities when approved. Grants approved but not paid for at the end of the financial year are accrued for when the recipient has been notified. b. Other grants payable are included in the statement of financial activities when approved. Grants approved but not paid for at the end of the financial year are accrued for when the recipient has been notified. c. Other sundry costs. 

## _**VAT**_ 

The Trust registered for VAT from 1st April 2019 and since then VAT has been accounted for separately. 

## _**Debtors**_ 

Debtors are recognised at their settlement amount less any provisions for non-recoverability. They have been discounted to the present value of the future cash receipt where such discounting is material. 

## _**Cash at bank and in hand**_ 

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. 

## _**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 reliably. Creditors are recognised at the amount the charity anticipates it will pay to settle the debt. 

## _**Fund accounting**_ 

Unrestricted general funds are funds which can be used in accordance with the charitable objects at the discretion of the Trustees. 

Designated funds are designated at the discretion of the trustees in furtherance of the general objectives of the Trust. 

Restricted funds are funds subject to  specific restrictive conditions imposed by donors or by the purpose of the appeal. 

14 



## **The Imperial War Museum Development Trust Notes to the Accounts for the year to 31st March 2022** 

## _**Land**_ 

Land purchased at Ickleton during the year  is shown at purchase price. 

## _**Investments**_ 

Investments are shown at market value in the balance sheet. Changes in the market value are included in the Statement of Financial Activities as realised and unrealised investment gains or losses in the year in which they arise. 

|**2**<br>Includes the following amounts<br>Grants from American Air Museum in Britain<br>Trusts & Foundations<br>**Donations & Gifts**|**Unrestricted**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**Total 2021/22**<br>Unrestricted<br>Funds<br>Restricted<br>Funds<br>Total 2020/21<br>**£**<br>**£**<br>**£**<br>£<br>£<br>£<br>**-**<br>**32,237**<br>**32,237**<br>-<br>-<br>-<br>**10,264**<br>**-**<br>**10,264**<br>25,000<br>-<br>25,000|
|---|---|
||**10,264**<br>**32,237**<br>**42,501**<br>25,000<br>-<br>25,000|



- **3 Investment income** 

|**Investment income**||
|---|---|
|Dividends / distributions<br>Bank interest<br>Sarasin Fees<br>Interest receivable|**Unrestricted**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**Total 2021/22**<br>Unrestricted<br>Funds<br>Restricted<br>Funds<br>Total 2020/21<br>**£**<br>**£**<br>**£**<br>£<br>£<br>£<br>**53,538**<br>**45,557**<br>**99,095**<br>58,824<br>50,197<br>109,021<br>**12**<br>**-**<br>**12**<br>249<br>-<br>249<br>**129**<br>**373**<br>**502**<br>-<br>258<br>-|
||**53,679**<br>**45,930**<br>**99,609**<br>59,074<br>50,455<br>109,270|



|**4**<br>**Expenditure**<br>_Expenditure on charitable activities_<br>Grants to the Museum<br>Grants to the American Air Museum<br>_Other costs_<br>Bank and charges<br>Investment Management Fee<br>Audit<br>IWM service fee<br>Other<br>Director's Insurance<br>Legal fees<br>Grants to the Imperial War Museum<br>Foundation|**Unrestricted**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**Total 2021/22**<br>Unrestricted<br>Funds<br>Restricted<br>Funds Total 2020/21<br>**£**<br>**£**<br>**£**<br>£<br>**30,000**<br>**-**<br>**30,000**<br>2,000,000<br>-<br>2,000,000<br>**20,000**<br>**-**<br>**20,000**<br>-<br>-<br>-<br>**-**<br>**45,557**<br>**45,557**<br>-<br>50,197<br>50,197<br>**2,000**<br>**-**<br>**2,000**<br>2,000<br>-<br>2,000<br>**3**<br>**-**<br>**3**<br>20<br>-<br>20<br>**-**<br>**-**<br>**-**<br>1,216<br>-<br>1,216<br>**7,624**<br>**-**<br>**7,624**<br>5,428<br>-<br>5,428<br>**(34)**<br>**-**<br>**(34)**<br>-<br>-<br>-<br>**2,250**<br>**-**<br>**2,250**<br>818<br>-<br>818<br>**1,080**<br>**-**<br>**1,080**<br>1,344<br>-<br>1,344|
|---|---|
||**62,923**<br>**45,557**<br>**108,480**<br>2,010,826<br>50,197<br>2,061,023|



The charity has no employees and is run on a voluntary basis by the Trustees and by way of an operating agreement with Imperial War Museum. 

The trustees received no remuneration for their services during the year (2020/21 - nil). No trustees received reimbursements for expenses during the year (2020/21 - nil). 

The key management of the charity comprise the trustees. The total remuneration paid to key management personnel was £nil (2020/21 - £nil). 

## **5 Land** 

Land held at Ickleton 


**----- Start of picture text -----**<br>
2021/22 2020/21<br>£ £<br>631,032 631,032<br>**----- End of picture text -----**<br>


In May 2019, the Trust purchased the freehold of 22 acres of farmland at Ickleton, at auction. The site consists of 18 units which used to house the Imperial War Museum's nitrate film collection. 

15 



## **The Imperial War Museum Development Trust Notes to the Accounts** 

|**6**<br>**7**<br>**8**<br>**9**|**Investments**<br>**Listed investments are valued at middle mark**<br>Market Value at beginning of year<br>Investment in year<br>Distributions in year<br>Cash withdrawn<br>Fund management fees<br>Net Change in market value<br>**Invested as follows**<br>Sarasin Endowments Funds Class A INC<br>Cash<br>Invested as follows;<br>**Funds**<br>Unrestricted<br>Restricted<br>**Total Funds**|**et quotations ruling at the year-end**<br>**Total 2021/22**<br>**£**<br>**3,660,396**<br>**-**<br>**99,095**<br>**(99,095)**<br>**474**<br>**78,654**<br>**3,739,524**<br>**3,725,916**<br>**13,608**<br>**3,739,524**<br>**2,025,648**<br>**1,713,876**<br>**3,739,524**|**et quotations ruling at the year-end**<br>**Total 2021/22**<br>**£**<br>**3,660,396**<br>**-**<br>**99,095**<br>**(99,095)**<br>**474**<br>**78,654**<br>**3,739,524**<br>**3,725,916**<br>**13,608**<br>**3,739,524**<br>**2,025,648**<br>**1,713,876**<br>**3,739,524**|Total 2020/21<br>£<br>4,022,776<br>-<br>109,021<br>(1,109,021)<br>(1,201)<br>638,821|
|---|---|---|---|---|
|||||3,660,396|
|||||3,647,555<br>12,841|
|||||3,660,396|
|||||1,983,062<br>1,677,334|
|||||3,660,396|
||||||
||**Debtors**<br>**Due within one year**<br>Accrued Income|**Unrestricted**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**£**<br>**£**<br>**25,402**<br>**11,811**|13,608<br>-<br> <br> <br>**Total 2021/22**<br>Unrestricted<br>Funds<br>Restricted<br>Funds<br>**£**<br>£<br>£<br>**37,213**<br>26,017<br>12,515|<br> <br>Total 2020/21<br>£<br>38,532|
||||||
||**Creditors**<br>Accruals<br>Amount owing to AAM|**Unrestricted**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**£**<br>**£**<br>**-**<br>**45,557**<br>**9,266**<br>**-**|<br> <br>**Total 2021/22**<br>Unrestricted<br>Funds<br>Restricted<br>Funds<br>**£**<br>£<br>£<br>**45,557**<br>-<br>50,197<br>**9,266**<br>7,145<br>-|<br> <br>Total 2020/21<br>£<br>50,197<br>7,145|
|||**9,266**<br>**45,557**|**54,823**<br>7,145<br>50,197|57,342|
||||||
||**Statement of Funds**<br>**Unrestricted funds**<br>General Fund<br>**Total Unrestricted funds**<br>**Restricted Funds**<br>American Air Museum<br>**Total restricted funds**<br>**Total Funds**|**At 1 April 2021**<br>**Income**<br>**£**<br>**£**<br>2,948,022<br>101,639|**Expenditure**<br>**Unrealised**<br>**gains in**<br>**investments**<br>**Transfer**<br>**between**<br>**funds**<br>**£**<br>**£**<br>**£**<br>(62,923)<br>42,485<br>-|<br> <br> **At 31 March 2022**<br>**£**<br>3,029,223|
|||2,948,022<br>101,639<br>1,689,401<br>78,167|(62,923)<br>42,485<br>-<br>(45,557)<br>36,169<br>-|3,029,223<br>1,758,180|
|||1,689,401<br>78,167|(45,557)<br>36,169<br>-|1,758,180|
|||4,637,423<br>179,806|(108,480)<br>78,654<br>-|4,787,403|



## **Restricted funds** 

Funds are held on behalf of the  American Air Museum in Britain for investment purposes. 

16 



**The Imperial War Museum Development Trust Notes to the Accounts for the year to 31st March 2022** 

## **10 Connected charities** 

## _**Imperial War Museum**_ 

During the year, £30,000 was approved to be transferred to Imperial War Museum during the year (2020/21 - £2million). Diane Lees is a Trustee of the Imperial War Museum Development Trust and Director of Imperial War Museum. 

## _**American Air Museum in Britain**_ 

A grant of £45,557 (2020/21 - £50,197) was approved to be transferred to the American Air Museum. Diane Lees is a trustee of the Imperial War Museum Development Trust and a Vice President of the American Air Museum. 

## **11 Post Balance Sheet Events** 

The Trust has given due consideration for the effects of the Covid-19 outbreak, which occurred before these financial statements were signed. The Trust is largely sheltered from the expected effects of these due to the small amount of donations the charity receives each year. All other investments are held in cash and there have been no significant movements in value. 

17