## **BIRMINGHAM MUSEUMS TRUST**
**ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
Birmingham Museums Trust, Chamberlain Square, Birmingham B3 3DH Registered No: 07737797 Charity Number: 1147014
_BIRMINGHAM MUSEUMS TRUST Annual Report and Consolidated Financial Statements for the year ended 31 March 2022_
## **Contents**
|**Contents**||
|---|---|
||**Page**|
|Company Details|1|
|Report of the Trustees and Strategic Report|2 - 9|
|Statement of Trustees’ Responsibilities|10|
|Independent Auditor’s Report to the Members|11-13|
|Consolidated Statement of Financial Activities for the year ended 31 March 2022|14|
|Consolidated Statement of Financial Activities for the year ended 31 March 2021|15|
|Consolidated Balance Sheet as at 31 March 2022|16|
|Company Balance Sheet as at 31 March 2022|17|
|Consolidated Cash Flow Statement for the year ended 31 March 2022|18|
|Notes to the Financial Statements|19-41|
_BIRMINGHAM MUSEUMS TRUST Annual Report and Consolidated Financial Statements for the year ended 31 March 2022_
## **Company Details**
|Charity Name|Birmingham Museums Trust|
|---|---|
|Charity Registration Number|1147014|
|Company Registration Number|07737797|
|Registered Office|Birmingham Museum and Art Gallery|
||Chamberlain Square|
||Birmingham|
||B3 3DH|
|Auditors|Cooper Parry Group Limited|
||Cubo Birmingham|
||Office 401, 4thFloor|
||Two Chamberlain Square|
||Birmingham|
||B3 3AX|
|Bankers|HSBC Bank plc|
||130 New Street|
||Birmingham|
||B2 4JU|
|Solicitors|Higgs & Sons LLP|
||Waterfront Business Park|
||3 Brierley Hill|
||Dudley|
||DY5 1LX|
1
_BIRMINGHAM MUSEUMS TRUST Annual Report and Consolidated Financial Statements for the year ended 31 March 2022_
## **Report of the Trustees and Strategic Report**
The Board is pleased to present their Annual Report and Consolidated Financial Statements for the year ended 31 March 2022. This includes the contents of a Strategic Report as required by the Companies Act 2006.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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 Republic of Ireland (FRS 102) (effective 1 January 2019).
## **Board of Trustees of Birmingham Museums Trust**
The Trustees of Birmingham Museums Trust (who are also directors for the purposes of company law) served during the year and up to the date of this report are:
Mr Niels de Vos (Chair)
Mr Mohammed Ali MBE Councillor Robert Alden Mr Clive Bawden Dr Louise Brooke-Smith OBE Rt Hon Liam Byrne MP Mr Liam Darbon (appointed 9 September 2021) Cllr Phil Davis MBE Mr John Diviney
Ms Sapreena Kumari Mr Luke Southall (resigned 9 September 2021) Mr Jonnie Turpie MBE Mrs Claire Williamson Ms Elly Porter Mr Tony Simpson (appointed 19 January 2022)
Mr Eamon Mooney (resigned 19 January 2022)
In addition, the charity has two subsidiaries. It is the sole shareholder of Birmingham Museums Trading Limited and the sole member of Thinktank Trust.
Directors of these two companies who served during the year and up to the date of this report are:
## Birmingham Museums Trading Limited
Ms Tracey Stephenson (Chair) Mr Liam Darbon Mr Zak Mensah (appointed November 2021)
Ms Sapreena Kumari (appointed 1 November 2021, resigned 22 August 2022) Mr John Diviney (appointed 18 July 2022)
## Thinktank Trust
Mr Niels de Vos
Mr Eamon Mooney (resigned 19 January 2022)
## **Legal status**
Birmingham Museums Trust (“BMT”) is a registered charity (number 1147014) and a private limited company limited by guarantee (number 07737797), incorporated on 11 August 2011, and is governed by its Articles of Association (“Articles”). In the event the charitable company is wound up, members are required to contribute an amount not exceeding £10.
2
_BIRMINGHAM MUSEUMS TRUST Annual Report and Consolidated Financial Statements for the year ended 31 March 2022_
## **Report of the Trustees and Strategic Report** _**(continued)**_
## **Achieving Objects and activities for the public benefit**
In considering the strategies and policies of the charity, the trustees have had due regard for the public benefit guidance published by the Charity Commission, in accordance with the Charities Act 2011.
The charity’s objects as set out in its Articles are:
To advance education by the operation, maintenance, development and promotion of museums, galleries and libraries in Birmingham, together with associated facilities and related programmes of outreach and research, fostering knowledge and understanding, appreciation and enjoyment of the arts, history, science and technology by residents and visitors to the City of Birmingham.
We have reviewed the fundamental purpose of Birmingham Museums Trust (BMT) and our activities critically and systematically, from the management culture to our business and commercial strategies, and our creative and intellectual assets and ambitions. We have begun a process of change engaging our trustees, workforce, stakeholders, community partners and the wider public in our mission to rethink what a museum is. In January 2022 we reviewed our consultation and discussions to date and have formalised our strategic approach. The table below articulates the challenge we face, why we believe BMT is well-positioned to respond, and our purposeful vision or Cause.
|
vision or Cause.|||||
|---|---|---|---|---|
|**PROBLEM**|**BELIEF**|**MISSION**|**PURPOSE**|**VISION**|
|**The challenge we**
**face**|**The conviction**
**that fuels our**
**commitment**|**What we exist to do**|**Value and**
**importance of**
**what we do**|**How the word**
**would be better if**
**we succeed**|
|Structural inequality
is thwarting
Birmingham's
potential.|We
acknowledge
our history, its
injustices and
innovations as
an ethical
foundation for
our work.|We harness all
the people's
collections,
heritage and
creativity to tell
stories that make
meaning.|This embraces
Birmingham's
super-diversity
generating hope,
building social
trust and
increasing
belonging and
solidarity.|We will empower
people and
communities to
imagine and shape
an ambitious,
vibrant, creative,
multicultural city.|
|Birmingham's
huge potential as
a vibrant, creative,
convivial,
multicultural city is
greatly diminished
by structural
inequality,
deprivation and
social injustice.
This hinders
aspiration and
hope, undermines
trust in
institutions,
weakens civic
pride and the
connections
between and
within
communities, and
disempowers its
citizens.|We will exercise
intellectual and
cultural
leadership in
addressing the
issues of an
increasingly
polarised
society, while
also exploring
historic
injustices within
an overall
context of
Birmingham as
a city of
belonging,
capable of
containing
multiple
identities and a
plurality of
views.|Audiences and
communities will
play a leading
role in shaping
Birmingham
Museums
through
consultation,
collaboration and
coproduction.
We will work with
cultural and
community
partners and
individuals, to
reflect the
stories and
characters of the
people and city
today, their
shared
experiences and
untold histories.|Birmingham
Museums will be
an ambitious,
authentic
expression of the
best of the people
of the city and the
region. If
interaction and
understanding
are sought
diversity is a
great strength.
We will explore
how cultural
resources can be
shared and
cultural
participation and
expression can
be enabled within
a complex
cultural
ecosystem.|We will activate
and amplify
Birmingham's rich
cultural
inheritance and
vibrant cultural
life. We will
renew/reinvent
our buildings and
programmes to
redefine the
museum so that it
is a catalyst for
active citizenship,
democratic
renewal and
inclusive pride in
Birmingham.|
|**CAUSE**
**Our Purposeful Vision**|||||
|We harness all the people’s collections, heritage and creativity to tell stories that make meaning. This embraces
Birmingham's super-diversity generating hope, building social trust and increasing belonging and solidarity. We
will empower people and communities to imagine and shape and ambitious, vibrant, creative, multicultural city.|||||
3
_BIRMINGHAM MUSEUMS TRUST Annual Report and Consolidated Financial Statements for the year ended 31 March 2022_
## **Report of the Trustees and Strategic Report** _**(continued)**_
The Trustees have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit when reviewing the charitable company’s aims and objectives in planning future activities. In particular the Trustees have considered how planned activities will contribute to the strategic aims. The objects of the charity are achieved through capital developments and gallery redisplays, public programmes of exhibitions and events across the nine venues, formal and informal learning programmes for schools, families and adults, public access, including digital access, to the collection on display and in store, collections care, loans and commercial activities including retail, catering and event hire.
The charity’s priorities are aligned with those of its major public funders, Birmingham City Council and Arts Council England.
## **Structure, Governance and Management**
The Board of Trustees has responsibility for the on-going strategic direction of BMT overseeing its finances and approving the budget, working with the Co-CEOs and Senior Leadership Team in the development and implementation of policy to meet BMT’s objects and to ensure that it fulfils its statutory duties. The Board meets at least four times a year.
Day to day management is delegated to Co-CEOs Sara Wajid and Zak Mensah. They are assisted by Richard Paterson, Director of Finance (until November 2021); Rachel Cockett, Director of Development; Toby Watley, Director of Collections; Janine Eason, Director of Engagement, and Alex Nicholson-Evans, Commercial Director (until September 2021).
## **Recruitment and Appointment of Trustees/Directors**
The Articles provide that two directors shall be appointed who are members or officers of Birmingham City Council in accordance with the nomination of the City Council. Other directors may not be members or officers of the City Council and may only be appointed after a recommendation of the directors after they have considered the desirability of:
- making such a recommendation after the advertisement of the vacancy and the response to such an advertisement;
- a board of Directors with a range of skills experience and abilities relevant to the objects and activities of the charity; and
- a board of Directors representative of the people of Birmingham.
## **Trustee induction and training**
All Trustees are provided with an induction to the organisation on appointment.
## **Remuneration of management personnel**
Remuneration for management personnel is set by comparison internally with similar posts when possible, benchmarking with similar external organisations and with reference to Croner’s Salary Search.
## **Employment of people with disabilities**
BMT is committed to the employment, support and training of people with disabilities. Employment policy is included in the staff handbook and is available to employees on the intranet.
## **Informing Employees**
Keeping our workforce informed is important to us. Performance information is circulated monthly to all staff by email and by cascade via the management team. ‘’All Staff Briefings’’ are held monthly which also provide opportunity for question and answer sessions **.**
## **Risk Management**
The Trustees actively and regularly review the major risks to which BMT is exposed and have implemented procedures to manage and minimise any potential impact should any of the identified risks materialise. A Risk Framework, supported by a Risk Register, is maintained setting out an assessment of the likelihood and impact of risks, with required actions identified to manage the risk. This is reviewed and updated no less than quarterly. The Trustees are satisfied that there are clear lines of delegation and authority to staff regarding risk management, and that staff are aware of the need to address risks in their areas of activity.
4
_BIRMINGHAM MUSEUMS TRUST Annual Report and Consolidated Financial Statements for the year ended 31 March 2022_
## **Report of the Trustees and Strategic Report** _**(continued)**_
Key risks
- Rising costs (goods, services, energy, living wage) will limit ability to generate income and create uncertainty in budget forecasting.
- Largescale electrical rewiring programme at BCC Council House forcing closure of BMAG and reducing BMT’s operational activity.
- Physical deterioration of Historic Properties and Museum Collections Centre; risk to buildings and collections; realisation could reduce physical access for staff and contractors as well as delivering poor visitor experience.
- Long term grants do not increase with inflation meaning real term reductions in core operating grants over the year.
- High Speed Rail – this could lead to disruption (vibration, noise and dust) for both Museum Collections Centre and Thinktank during the construction period, affecting both the collection and BMT’s ability to generate income.
- Ability to meet obligations as they fall – BMT needs sufficient cash to meet its financial obligations going forward. BMT is working closely with its major partners to ensure cash doesn’t become an issue.
## **Achievements & Performance 2021/22**
2021 saw the reopening of three of our nine sites since they closed in March 2020 due to the COVID-19 pandemic.
Thinktank welcomed visitors back on 29 May with a new entrance, larger and improved shop, and a brand-new _Our Changing Planet_ gallery looking at how humans have transformed the world and how these changes are affecting wildlife and the environment across the globe. Our Changing Planet was co-curated with our Youth Climate Forum of young people.
Aston Hall reopened on 7 July, with displays that re-told some of the stories of the Hall’s four centuries of history and the _Black is Beautiful, Blackness without Apology_ , an exhibition created by young people in collaboration with Don’t Settle and BMT. A new family trail and a new menu at the Stable Yard Café broadened the visitor experience. The BBC Antiques Roadshow team filmed at the Hall as part of the 44th series of the programme.
Blakesley Hall, the Tudor house a few miles from the centre of Birmingham, reopened to visitors on 21 July. This Elizabethan house was built as a family home, and families were delighted to return, enjoying favourite events such as the Great British Apple Day celebration.
Sarehole Mill remained open through the year as a community shop, café and as an outdoor venue as restrictions allowed, continuing its operation since the previous year.
Across our sites we welcomed 232,235 visitors in the year. A further 3,107,350 visitors saw loans from Birmingham’s civic museum collection on public display at venues across the world.
Birmingham Museum and Art Gallery (BMAG) remained closed for essential electrical upgrade work of Birmingham’s Council House Complex. An inventory and decant of the collections, libraries, archives and offices space was implemented to enable the rewiring to take place. The decant included moving all 36,500 collection objects off-site into temporary storage. The electrical upgrade is an extensive and essential programme of work to future-proof the building and make it safe for staff and visitors while safeguarding Birmingham’s collections for generations to come.
Museum of the Jewellery Quarter and Soho House also remained closed with exceptions for some events when restrictions allowed.
School groups returned after our sites reopened to a programme of inspiring educational sessions. 16,651 pupils visited our 4 open sites during the year. Alongside these on-site visits we continued to bring science and history to life in the classroom with our live stream interactive sessions, originally developed to support school learning during lockdown.
The majority of volunteer activity was suspended during the pandemic with most volunteers unable to return to their roles during the year. However, with our sites gradually reopening, volunteers were gradually able to return, including the Castle Keepers who look after the ruins of Weoley Castle. Between them, volunteers gave 423 days of their time to support the work of Birmingham Museums during the year.
Volunteering for Veterans, a new health and wellbeing project for ex-servicemen and women, helped four local veterans get back on the road to recovery by conserving vintage motorbikes from the city’s collection held at the Museum Collection Centre.
5
_BIRMINGHAM MUSEUMS TRUST Annual Report and Consolidated Financial Statements for the year ended 31 March 2022_
## **Report of the Trustees and Strategic Report** _**(continued)**_
The programme supported former members of the local Armed Forces community by providing skills development opportunities alongside social and wellbeing activities. The project was made possible with funding from the Armed Forces Covenant and support from the Royal British Legion.
Life on Lockdown, a participatory project to capture the experiences of Birmingham during the Covid-19 crisis, launched with a display at Thinktank and on Birmingham Museum’s YouTube channel. The project collected hundreds of digital images and recordings of first-hand experiences to reflect the lives of Birmingham people during lockdown as a record of the Covid-19 pandemic.
Freedom 50, a new outdoor exhibition celebrating 50 years of Bangladeshi independence opened in Birmingham’s Centenary Square in May. Organised by Legacy West Midlands in collaboration with Birmingham Museums, the exhibition was on display until the end of August 2021.
The stories of Birmingham’s Windrush generation were celebrated in a programme of events and activities commemorating the year’s national Windrush Day including a vibrant live digital event celebrating the city’s Caribbean community through music, storytelling and poetry. The programme was run in partnership with The Red Earth Collective and made possible with a grant from the Ministry of Housing, Communities and Local Government. Five personal testimonies from the Black Oral History Project Archive were transcribed and made accessible for the first time. Conducted between 1990 and 1992, these spoken history interviews with people in Birmingham who originated from the Caribbean and South Asia talk about memories including first impressions, religious experiences, education, experiences of racism, identity, as well as thoughts on the future. An education resource was developed to support pupils’ learning about this time.
Birmingham Heritage Week 2021 took place from 9-19 September. Events included walks, talks, building tours and open days, dramatic performances and poetry readings, as well as exhibitions, hands-on workshops and online events. 72 local organisations, societies and friends’ groups delivered 126 unique events. 15 new organisations taking part and over 400 volunteers welcomed supported the festival. Nearly 19,000 attended and online events drew nearly 6,000 views.
We launched Birmingham Museums On Demand, a new digital service making stories behind Birmingham’s collections available online to watch anytime, anywhere in the world. This service gave people access to some of the stories behind our collections at a time when BMAG was closed. We launched Birmingham Museums’ new online shop, with a unique range of products created by the very best local independent Birmingham makers alongside gifts inspired by Birmingham’s past.
Funded by HS2, a 9-month programme delivered significant collections relocations and storage improvements within the Museum Collections Centre, while improvements to the building addressed security concerns.
A total of 3,571 objects were loaned on short or long term to venues including the Kunstmuseum Basel, The Frick in Pittsburgh US, Tate Modern, Victoria & Albert Museum, Royal Academy and National Gallery. In addition, BMT supported loans to regional venues as part of Coventry’s City of Culture or in the run up to the Birmingham Festival 2022. BMT’s international touring exhibition Victorian Radicals came to an end after attracting 167,806 visitors at 7 venues across the United States.
Acquisitions into the city’s collection by leading artists included John Akomfrah’s seminal work _Handsworth Songs_ , Hew Locke’s sculpture _Souvenir 9 (Queen Victoria),_ photographic works from Andrew Jackson’s _A Small Island series_ , a body of photographic work by Birmingham and regional artists capturing Black Lives Matter protests in the city, and local people’s experiences of Lockdown. Acquisitions were supported by ACE/V&A Purchase Grant Fund, Art Fund, Tessa Sidey Acquisition Fund, The Friends of Birmingham Museums, and William A Cadbury Charitable Trust.
## **Climate Action**
Our Climate Pledge (Sept 2021) makes a commitment to reducing the environmental impact of our activities and operating as sustainably as we can. Our ambition is to reach net zero by 2040. The Pledge forms part of the _Our Changing Planet_ gallery at Thinktank.
Our Climate Action Plan 2022-26 sets out our BMT intends to lead the way in our approach to environmental responsibility. Since our establishment in 2012 we have taken considerable steps to reduce our waste and energy usage, change to green energy suppliers and reduce the negative impact of our operations on the climate and environment. Progress against our Action Plan is monitored quarterly.
Our Climate Action Plan recognises our role in public engagement on environmental action, as well as responding to public, partner, stakeholder and funder expectations. One of our major funders, Birmingham City Council has undertaken an Environment and Sustainability Assessment of our work to assess its impact on and understand how we are tackling Climate Change. As an Arts Council England National Portfolio Organisation we are required to improve our environmental performance, reduce carbon emissions and manage our collections sustainably, collecting data and submitted evidence annually to ACE’s Sustainability Partner Julie’s Bicycle.
6
_BIRMINGHAM MUSEUMS TRUST Annual Report and Consolidated Financial Statements for the year ended 31 March 2022_
## **Report of the Trustees and Strategic Report** _**(continued)**_
## **Fundraising**
BMT actively pursues funding from grant makers (trusts, foundations and public funders), corporate supporters and individuals to fund our charitable activities. We work with others to increase our fundraising opportunities including academic partners, specialist sector organisations, charities who align with our purposes, community partners, and other museum and cultural organisations. A grant of £590k from Garfield Weston Fund allowed us to invest in our digital offer and technology infrastructure.
We use third-party website Just Giving to collect donations, and Donr to collect donations via SMS. We offer the option to gift-aid admission charges for entry, make a donation online with a ticket or shop purchase, or on-site at one of our museums.
We do not employ the services of professional or commercial fundraisers. We do not undertake street collections or telephone campaigns. Where we collect personal information, this is managed in line with our Data Protection Policy.
BMT is registered with the Fundraising Regulator, the independent regulator of charitable fundraising in England, Wales and Northern Ireland. We have received no complaints regarding our fundraising in 2021/22.
BMT’s Safeguarding Policy makes specific reference to donors. BMT abide by the Fundraising Regulator’s Code of Practice and uses the Institute of Fundraising guidance for Treating Donors Fairly (2021).
## **Key strategic priorities/objectives for BMT over the next 2-3 years**
BMT’s Business Plan 2022-26 states that our Co-CEO’s Sara Wajid and Zak Mensah’s brief is to lead a multi-year transformation towards a socially purposeful museum service rooted in the distinctive cultural heritage of this region. Radical transformation takes time and we are committed. 2022-23 will be the second year of our change programme and we are determined to emerge from the pandemic a more dynamic organisation that better contributes to our society. We will fulfil our cause by taking forward actions that meet our 10 Strategic Aims (below).
## **AIM 1. Democratise our governance**
We believe ideas and leadership can and should come from anywhere. We will adapt and augment to create a more sustainable, agile and porous structure. We will create a democratic decision-making process and new groups of influence.
## **AIM 2. Nurture a creative, enabling internal culture**
Deliberate coordinated method to change our culture collectively. Become an experimental learning organisation driven by evidence-based decision making.
## **AIM 3. Grow a rich workforce eco-system**
Design a workforce with the capabilities to develop the service and deliver our Cause. Grow our own pipeline of talent through our programming and provision of career and skills development opportunities. Inclusive of the wider workforce of creatives, freelancers, contracted staff and partners.
## **AIM 4. Design a radical, sustainable new museum operating model**
We will re-think what a museum is and its relationship to its city and environment. We believe that BMT is more than a collection of buildings and objects. We see our role not only as a guardian but as an agency of social change. We will explore new and different ways to manage, use and rationalise our estate and our physical and digital assets to identify the options that best support our future viability and resilience and that can best deliver our Cause.
## **AIM 5. Redefine the cultural value of collections**
We will change how our collections are understood, accessed and used and we will reframe how we measure cultural value of our collections to Birmingham and its citizens. We will build new partnerships and develop new channels that enable people to play a fuller role in using, researching, borrowing, augmenting and interpreting our collections and curating their own. We will explore repatriation and deaccession for long-term sustainability.
## **AIM 6. Pioneer experiments in mass-participation**
We will make a paradigm shift that moves BMT away from the dominant model of passive visitor- ship. In its place we will forge a new model of active engagement: experiments that enable non-visitors to share their heritage and creativity and share their stories and ours. We want to make the people's culture popular culture. We will devise new measures that evidence the impact on individual, community, civic and societal change.
7
_BIRMINGHAM MUSEUMS TRUST Annual Report and Consolidated Financial Statements for the year ended 31 March 2022_
## **Report of the Trustees and Strategic Report** _**(continued)**_
## **AIM 7. Reposition BMT as critical to the city's future**
Reposition Birmingham Museums as a critical key driver of social, cultural, and economic creativity and innovation. Identify new audiences, advocates, partners, and stakeholders to help us deliver our Cause.
## **AIM 8. Build our own segmented mass channel**
Use direct email to create our own channel to increase user engagement and participation. Underpinned by our website, CRM and ticketing systems and backed up by a social media strategy.
## **AIM 9. Cultivate connections**
Become an anchor organisation in a vibrant city-wide network of organisations and individuals.
## **AIM 10. Diversify and increase our income**
Respond to the changing markets and circumstances, adapting and evolving our trading opportunities to maximise income.
We will:
- Engage our existing relationship partners and seek new voices to reimagine our vision for BMT. The outcome will be a service direction that uses socially engaged practice. At our core will be a work programme that always focuses on the needs of our users.
- We will experiment with reaching new audiences through local, national, and international partnerships.
- Re-imagine who the buildings and collection are for and collaborate with the people and communities who are critical to the future of Birmingham Museums for the next 50 years and beyond.
BMT will demonstrate a commitment to increase educational/outreach work through:
- Without Walls, a programme to engage audiences online and offsite. Includes taking artworks and items from the collection into schools and communities, inviting Birmingham citizens to co-produce new displays for when BMAG reopens, sharing content through our digital platforms, and delivering outdoor exhibitions.
- New online services and activity taking the outcomes of our new Digital Strategy forward
- New public participation in shaping the direction of the organisation under the leadership of our Co-CEOs
- The change in approach envisions a shift with decreasing education and participation numbers onsite and increasing offsite and online attendance and participation.
BMT will continue to work closely with Birmingham City Council and will ensure we take all reasonable steps to protect the properties and collections we are responsible for. We have worked together to develop a set of condition surveys to aid prioritising essential maintenance, mechanical and electrical work across our properties. This work will support future applications to improve building infrastructure.
In addition to financial stabilisation and continuing to respond to the ever-changing landscape, there are a number of projects that will continue including
- The rewiring of BMAG, which will see the building partially open to the public in 2022 with phased reopening of the rest of the galleries expected from 2024.
- Taking forward the feasibility study for a new Museum for Science and Industry, The City of Ideas Project.
- The next phase of the Museum Collection Store project.
8
_BIRMINGHAM MUSEUMS TRUST Annual Report and Consolidated Financial Statements for the year ended 31 March 2022_
## **Report of the Trustees and Strategic Report** _**(continued)**_
## **Financial Review / Key Financial Performance Indicators**
The financial performance of the Museum for the year under review and the financial position at the Balance Sheet date are set out in this report. In particular the Statement of Financial Activities (SOFA), which includes both unrestricted and restricted funds, shows the performance of the group during the year.
Like the vast majority of charities, BMT was severely impacted by COVID-19 and national restrictions. The main financial impacts have been:
- Nationally museums saw between 25% to 50% less visitors nationally than pre-pandemic
- Facing significant loss of revenue, BMT prioritised expenditure that was critical to the delivery of its charitable objectives and looked at new ways of cost effective working
- Forecasting has been difficult sent against national restrictions and changing public sentiment
- Birmingham Museum & Art Gallery remained closed for the reporting period as part of electrical rewiring works across the building complex which traditionally attracted the majority of visitors and secondary spend
The cost of governance activities was £0.036m (2021: £0.022m). Direct governance costs have been included in accordance with the Charity SORP 2019 and include audit fees, legal fees and Trustee expenses.
## **Going Concern**
The financial statements have been prepared on a going concern basis. The Trustees consider that there is a reasonable expectation that the charitable company and group have sufficient resources, to continue in operational existence for the foreseeable future and for this reason they have adopted the going concern basis in preparing the financial statements.
## **Reserves Statement**
The Trustees have considered the level of reserves required to maintain sufficient working capital to operate the museums in the most effective manner and to meet unforeseen liabilities that may arise. The Trustees have therefore established a reserves policy that aims to protect the charity’s activities from risk of disruption at short notice due to lack of funds.
They take the view that the nature of the BMT’s consolidated cash flows is such that they can set as a mediumterm objective to maintain unrestricted reserves, excluding defined benefit pension liabilities, at a level of one month’s income, or around £1m.
At 31 March 2022 Restricted Funds stand at £3.092m (2021: £3.467m), Unrestricted Funds at £2.762m (2021: £2.033m) and a Pension Reserve deficit of £0.838m (2021: £4.114m). Free reserves as at the 31 March 2022 were £2.300m (2021: £1.279m).
The unrestricted reserves are in line with the charity’s reserves policy.
## **Investment Policy**
The Trustees have the power to invest funds not immediately required from operational purposes in such investments, securities or property as they see fit.
The underlying investment strategy is to accept only a low level of risk and therefore available funds are invested in low risk short-term deposits with HSBC plc, a bank which operates in the United Kingdom and which is subject to regulation under the Financial Services Act 2012.
## **Related Party**
Birmingham City Council, the sole member of the charitable company, has paid fees for services and has provided loan finance to Birmingham Museums Trust’s subsidiary Thinktank Trust. Any conflicts of interest involving Trustees in this respect are declared where appropriate.
## **Auditor**
The Auditor, Cooper Parry Group Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
9
_BIRMINGHAM MUSEUMS TRUST Annual Report and Consolidated Financial Statements for the year ended 31 March 2022_
## **Statement of Trustees’ responsibilities in respect of the Trustees’ report and the financial statements**
The Trustees (some of whom are also the directors of Thinktank Trust and Birmingham Museums Trading Limited for the purposes of company law) 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)
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.
In preparing these financial statements, generally accepted accounting practice entails, the Trustees:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Trustees are responsible for keeping proper and adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Trustees are aware:
- there is no relevant audit information of which the charitable company’s auditors are unaware; and
- the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.
Approved by the Board of Trustees on 22 December 2022 and signed on their behalf by:
## **Mr Niels de Vos Chair**
10
_BIRMINGHAM MUSEUMS TRUST Annual Report and Consolidated Financial Statements for the year ended 31 March 2022_
## **Independent Auditor’s Report to the Members and Trustees of Birmingham Museums Trust**
## **Opinion**
We have audited the financial statements of Birmingham Museums Trust (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and parent charitable company’s affairs as at 31 March 2022, and of the group’s 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 Companies Act 2006 and 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 group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. 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 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Report of the Trustees and Strategic Report, other than the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 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 or a material misstatement of the other information. 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.
11
_BIRMINGHAM MUSEUMS TRUST Annual Report and Consolidated Financial Statements for the year ended 31 March 2022_
## **Independent Auditor’s Report to the Members and Trustees of Birmingham Museums Trust** _**(continued)**_
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ report (incorporating the strategic report and the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ 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 10, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees 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 group’s and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below:
Our assessment focussed on key laws and regulations the charitable company has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Companies Act 2006, Charities Act 2011, taxation legislation, data protection and anti-bribery and employment legislation.
We are not responsible for preventing irregularities, including fraud. Our approach to detecting irregularities included, but was not limited to, the following:
12
_BIRMINGHAM MUSEUMS TRUST Annual Report and Consolidated Financial Statements for the year ended 31 March 2022_
## **Independent Auditor’s Report to the Members and Trustees of Birmingham Museums Trust** _**(continued)**_
- obtaining an understanding of the legal and regulatory framework applicable to the charitable company and how the charitable company is complying with that framework, including agreement of financial statement disclosures to underlying documentation and other evidence;
- obtaining an understanding of the charitable company’s control environment and how the charitable company has applied relevant control procedures, through discussions with management and by performing walkthrough testing over key areas;
- obtaining an understanding of the charitable company’s risk assessment process, including the risk of fraud;
- reviewing meeting minutes of those charged with governance throughout the year; and
- performing audit testing to address the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
Whilst considering how our audit work addressed the detection of irregularities, we also considered the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members and its 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 anyone other than the charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **Simon Atkins FCA Senior Statutory Auditor**
For and on behalf of Cooper Parry Group Limited
Cubo Birmingham Floor 401, 4[th] Floor Two Chamberlain Square Birmingham B3 3AX
Date: 22 December 2022
13
## _BIRMINGHAM MUSEUMS TRUST_
## **Consolidated Statement of Financial Activities For the year ended 31 March 2022**
|**Note**
**Income and endowments**
**from:**
Donations and legacies
Investments
Rental income
Interest receivable
Charitable activities
Visitor admissions and
outreach income
Grants receivable and other
income
Other trading activities
Income from trading activities
of Subsidiary
**Total Income**
4
**Expenditure on:**
Raising funds
Expenses from trading
activities of Subsidiary
Fundraising costs
Charitable activities
Museum costs
**Total Expenditure**
5
**Net (expenditure)/income**
**Transfers between Funds**
14
**Other recognised gains**
Return on Pension Fund
Assets
Change in financial
assumptions
Net movement on pension fund
22
**Net movement in funds**
**Reconciliation of funds**
Fund balances brought forward
**Fund balance carried forward**|**Unrestricted**
**Funds**
**£**
**Restricted &**
**Endowment**
**Funds**
**£**
**Pension**
**Funds**
**£**
**Total**
**2022**
**£**
**Total**
**2021**
**£**
23,541
14,207
-
37,748
115,408
14,082
-
-
14,082
3,015
729
-
729
-
1,572,553
-
-
1,572,553
56,187
5,636,166
4,232,818
-
9,868,984
9,871,257
797,234
-
-
797,234
414,764|
|---|---|
||8,044,305
4,247,025
-
12,291,330
10,460,631
(742,110)
-
-
(742,110)
(683,399)
(8,847)
-
-
(8,847)
(62,854)
(7,030,383)
(4,156,524)
262,000
(11,448,907)
(10,452,546)|
||(7,781,340)
(4,156,524)
262,000
(12,199,864)
(11,198,799)|
||**(262,965)**
**(90,501)**
**262,000**
**91,466**
**(738,169)**
**465,549**
**(465,549)**
**-**
**-**
**-**
-
-
1,232,000
1,232,000
(6,001,000)
-
-
2,306,000
2,306,000
3,527,000|
||**-**
**-**
3,538,000
3,538,000
(2,474,000)|
||**728,514**
**(375,048)**
**3,276,000**
**3,629,466**
**(3,212,169)**|
||2,033,032
3,467,089
(4,114,000)
1,386,121
4,598,289|
|||
||**2,761,546**
**3,092,041**
**(838,000)**
**5,015,587**
**1,386,120**|
Restricted funds comprise both income and capital funds.
The incoming resources, resources expended and resulting net movement in funds, arise from continuing operations and includes all gains and losses recognised in the year.
14
## _BIRMINGHAM MUSEUMS TRUST_
## **Consolidated Statement of Financial Activities For the year ended 31 March 2021**
|**For the year ended 31 March 2021**||
|---|---|
|**Notes**
**Income and endowments from:**
Donations and legacies
Investments
Rental income
Interest receivable
Charitable activities
Visitor admissions and outreach
income
Grants receivable and other
income
Other trading activities
Income from trading activities of
subsidiary
**Total Income**
4
**Expenditure on:**
Raising funds
Expenses from trading activities of
subsidiary
Fundraising costs
Charitable activities
Museum costs
**Total Expenditure**
5
**Net (expenditure)**
**Transfers between Funds**
**Other recognised gains/(losses)**
Return on Pension Fund Assets
Change in financial assumptions
Net movement on pension fund
**Net movement in funds**
**Reconciliation of funds**
Fund balances brought forward
**Fund balance carried forward**|**Unrestricted**
**Funds**
**£**
**Restricted &**
**Endowment**
**Funds**
**£**
**Pension**
**Fund**
**£**
**Total**
**2021**
**£**
115,408
-
-
115,408
3,015
-
-
3,015
-
-
-
-
56,187
-
-
56,187
8,114,774
1,756,483
-
9,871,257
414,764
-
-
414,764|
||8,704,148
1,756,483
-
10,460,631
(683,399)
-
-
(683,399)
(62,854)
-
-
(62,854)
(7,148,526)
(2,707,020)
(597,000)
(10,452,546)|
||(7,894,779)
(2,707,020)
(597,000)
(11,198,799)|
||**809,369**
**(950,537)**
**(597,000)**
**(738,168)**
**(69,045)**
**69,045**
**-**
**-**
-
-
(6,001,000)
(6,001,000)
-
-
3,527,000
3,527,000|
||-
-
(2,474,000)
(2,474,000)|
||**740,324**
**(881,492)**
**(3,071,000)**
**(3,212,168)**|
||1,292,708
4,348,581
(1,043,000)
4,598,289|
|||
||**2,033,032**
**3,467,089**
**(4,114,000)**
**1,386,121**|
Restricted funds comprise both income and capital funds.
The incoming resources, resources expended and resulting net movement in funds, arise from continuing operations and includes all gains and losses recognised in the year.
15
## _BIRMINGHAM MUSEUMS TRUST_
## **Consolidated Balance Sheet as at 31 March 2022**
|**Note**
**Fixed Assets**
Tangible assets
9a
Intangible assets
9b
**Current Assets**
Stock
10
Debtors: amounts falling due in one year
11
Debtors: amounts falling due after more than one year
11
Cash at bank and in hand
**Creditors:**amounts falling due within one year
12
**Net Current Assets**
**Total Assets less Current Liabilities**
Creditors: amounts falling due after more than one year
12
Provisions for liabilities and charges
25
Defined benefit scheme pension liability
22
**NET ASSETS**
**Funds**
Unrestricted
14
Restricted
14
Endowment
14
Pension
14
**TOTAL FUNDS**|**2022**
**2021**
**£**
**£**
1,907,217
2,794,703
47,279
96,782|
|---|---|
||1,954,496
2,891,485|
||164,809
150,365
1,925,340
1,401,706
414,768
506,276
3,970,896
3,259,467|
||6,475,813
5,317,814
(1,636,954)
(2,202,902)|
||4,838,859
3,114,912|
||**6,793,355**
**6,006,397**
(414,768)
(506,276)
(525,000)
-
(838,000)
(4,114,000)|
||**5,015,587**
**1,386,121**|
||2,761,546
2,033,032
2,204,660
2,576,209
887,381
890,880
(838,000)
(4,114,000)|
||**5,015,587**
**1,386,121**|
The notes on pages 19 to 41 form part of these accounts.
These financial statements were approved and authorised for issue by the Board of Trustees on 22 December 2022 and were signed on its behalf by:
## **Mr Niels de Vos Chair**
**Registered No: 07737797**
16
## _BIRMINGHAM MUSEUMS TRUST_
## **Company Balance Sheet as at 31 March 2022**
|**Note**
**Fixed Assets**
Tangible assets
9a
Intangible Assets
9b
**Current Assets**
Debtors: amounts falling due in one year
11
Debtors: amounts falling due after more than one year
11
Cash at bank and in hand
**Creditors:**amounts falling due within one year
12
**Net Current Assets**
**Total Assets less Current Liabilities**
Creditors: amounts falling due after more than one
year
12
Provisions for liabilities and charges
25
Defined benefit scheme pension liability
22
**NET ASSETS**
**Funds**
Unrestricted
15
Restricted
15
Endowment
15
Pension
15
**TOTAL FUNDS**|**2022**
**2021**
**£**
**£**
1,627,357
2,099,463
47,279
96,782|
|---|---|
||1,674,636
2,196,245|
||4,173,508
3,090,898
509,530
676,848
3,233,927
3,058,247|
||7,916,965
6,825,993
(1,535,109)
(2,180,836)|
||6,381,856
4,645,157|
||**8,056,492**
**6,841,402**
(414,768)
(506,276)
(525,000)
-
(838,000)
(4,114,000)|
||**6,278,724**
**2,221,126**|
||4,296,876
3,550,910
1,932,467
1,893,335
887,381
890,881
(838,000)
(4,114,000)|
||**6,278,724**
**2,221,126**|
The notes on pages 19 to 41 form part of these accounts.
These financial statements were approved and authorised for issue by the Board of Trustees on 22 December 2022 and were signed on its behalf by:
## **Mr Niels de Vos Chair**
**Registered No: 07737797**
17
## _BIRMINGHAM MUSEUMS TRUST_
## **Consolidated Cash Flow Statement For the year ended 31 March 2022**
|**Consolidated Cash Flow Statement**
**For the year ended 31 March 2022**|||||
|---|---|---|---|---|
|Cash used in operating activities
Cash flows from investing activities
**Increase in cash during the year**
**(a) Cash used in operating activities**
**Net incoming / (outgoing) resources**
**Adjustments for non-cash items:**
Depreciation and amortisation
Pension fund provision
(Increase)/decrease in stocks
(Increase)/decrease in debtors
(Decrease)/Increase in creditors
(Decrease)/increase in provision
**Net cash inflow from operating activities**
**(b) Cash flows from investing activities**
Purchase of tangible fixed assets
Purchase of intangible fixed assets
**Net cash outflow from investing activities**
**(c) Analysis of movements in cash and cash equivalents**
**Increase in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Total cash and cash equivalents at the end of the year**
**(d) Analysis by cash and debt**
Cash at Bank and in hand
Debt due after one year
Debt due within one year|**Note**
a
b
**As At April**
**2021**
**£**
3,259,467
506,276
97,034|||**2022**
**2021**
**£**
**£**
768,096
1,637,601
(56,665)
(261,222)
**711,431**
**1,376,379**
**2022**
**2021**
**£**
**£**
91,466
(738,168)
993,655
988,325
262,000
597,000
(14,444)
44,369
(523,634)
(35,965)
(565,947)
782,040
525,000
-
**768,096**
**1,637,601**|
||||||
||||||
|||||**2022**
**2021**
**£**
**£**
(56,665)
(261,222)
-
-
**(56,665)**
**(261,222)**
**2022**
**2021**
**£**
**£**
711,431
1,376,379
3,259,46
1,883,088
**3,970,898**
**3,259,466**
**Cashflows**
**As at March**
**2022**
**£**
**£**
711,431
3,970,898
(91,508)
414,768
-
97,034|
||||||
||||||
||||||
||**3,862,777**|||**619,923**
**4,482,700**|
18
_BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements**
## **1. General information**
Birmingham Museum trust is a charitable company limited by guarantee, incorporated and domiciled in England and Wales (Company number 07737797, Charity number 1147014). The Trust has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.
The registered office is Birmingham Museums & Art Gallery, Chamberlain Square, Birmingham, B3 3DH.
## **2. Statement of principal accounting policies**
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Trust’s financial statements.
## **Basis of accounting**
The financial statements have been prepared under the Companies Act 2006 on a going concern basis and under the historical cost convention. 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 2019) – (charities SORP (FRS 102)), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006.
Birmingham Museum 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 account policy notes.
The financial statements are prepared in sterling, to the nearest £1, which is the functional currency of the group and the charity.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the charity’s accounting policies (see note 3).
The financial statements have been prepared on a going concern basis. The Directors consider that there is a reasonable expectation that the company has sufficient resources to continue in operational existence for the foreseeable future and, for this reason they have adopted the going concern basis in preparing the financial statements.
The following principal accounting policies have been applied:
## **Basis of consolidation**
The consolidated financial statements of Birmingham Museums Trust include the financial statements of the charitable company, its subsidiary trading company Birmingham Museums Trading Limited, and its subsidiary charity Thinktank Trust. The results of the subsidiaries, as disclosed in note 17 are consolidated on a line by line basis within the consolidated statement of financial activities.
A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because the Trust has taken advantage of the exemption afforded by section 408 of the Companies Act 2006. The results of the standalone charity are summarised in note 17.
## **Statement of financial activities**
The incoming resources and resources expended by the Birmingham Museums Trust are detailed below, together with respective accounting treatments.
## **Incoming resources**
Voluntary income including donations, gifts and legacies and grants that provide core funding or are of general nature are recognised where there is entitlement, receipt is probable, and the amount can be measured with sufficient reliability. Such income is only deferred when:
- the donor specifies that the grant or donation must only be used in future accounting periods; or
- • the donor has imposed conditions which must be met before the charity has unconditional entitlement.
19
_BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **2. Statement of principal accounting policies** _**(continued)**_
## _**Donations and gifts**_
Cash donations are included when received.
## _**Legacies**_
Income is recognised on an accruals basis to the extent that Birmingham Museums Trust has been notified that it is a beneficiary, receipt is probable and there is a clear indication of the amounts involved.
## _**Grants receivable including government grants**_
Grants are recognised in the consolidated statement of financial activities when the conditions for receipt have been complied with.
## _**Trading income**_
Turnover from the staging of events, retail shops and catering outlets operated by Birmingham Museums Trading Limited represents the value of goods sold net of VAT.
## _**Income from investments**_
Investment income is accounted for on an accruals basis.
## _**Sponsorship in kind**_
Sponsorship in kind includes provision of commercial services. Such incoming resources are included in the Consolidated Statement of Financial Activities where the benefit to the charity is reasonably quantifiable and measurable. The value placed on these resources is the estimated value to the charity of the service received, being the price, the charity estimates it would pay in the open market for an equivalent service.
## **Fund accounting**
The charitable company maintains three types of funds as follows:
## _**Restricted funds**_
Restricted funds represent grants and donations receivable which are allocated by the donor for specific purposes. Within restricted funds, endowment funds represent donations receivable which on the instruction of the donor are to be set aside and along with the income applied for a specific purpose. The aim and use of such funds are set out in the notes to the financial statements.
## _**Unrestricted funds**_
Unrestricted funds represent funds that are expendable at the discretion of the Trustees in the furtherance of the objects of the charity. Such funds may be held in order to finance both working capital and capital investment. Within unrestricted funds, designated funds represent unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of such funds are set out in the notes to the financial statements.
## _**Pension funds**_
Pension funds represent funds relating to the West Midlands Defined Benefit Pension Scheme. The aim and use of such funds are set out in the notes to the financial statements.
## **Resources expended**
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing Birmingham Museums Trust to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
## _**Raising funds**_
These costs are incurred in relation to staff members and consultants who are engaged directly in fundraising and also include the costs of campaigns for raising donations.
## _**Charitable activities**_
Charitable expenditure includes expenditure associated with the operation of the Birmingham Museums and Art Gallery.
## _**Governance Costs**_
Governance costs comprise direct costs involving Birmingham Museum’s Trust’s strategic management and its compliance with legal, constitutional and statutory requirements. These costs include costs related to statutory audit and legal fees.
## _**Redundancy Costs**_
All redundancy costs and termination payments are recognised in the year.
20
_BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **2. Statement of principal accounting policies** _**(continued)**_
## _**Basis of allocation of costs**_
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources. Costs relating to the management of Birmingham Museums Trust and support departments have been allocated to other functions based on the time they consume in pursuing the objectives of Birmingham Museums Trust.
## _**Operating leases**_
Rentals under operating leases are charged to the statement of financial activities on a straight-line basis over the term of the lease.
## _**Foreign currency translation**_
Transactions in foreign currencies are translated into Sterling at the rates of exchange current at the dates of the transactions. Foreign currency liabilities in the balance sheet are translated into Sterling at the rates of exchange ruling at the year-end except where hedged. Resulting exchange gains and losses are taken to the Consolidated Statement of Financial Activities in the year in which they arise.
## _**Pension costs**_
The charitable company operates a stakeholder compliant Group Personal Pension Scheme open to all employees.
Certain former staff of Birmingham City Council are members of the West Midlands Pension Scheme which is a defined benefit scheme based on final pensionable salary.
For defined benefit retirement plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at each balance sheet date.
Actuarial gains and losses arising are recognised immediately in the Consolidated Statement of Financial Activities.
Past service costs are recognised as an expense on a straight-line basis over the average period until the benefits become vested. To the extent that the benefits have already vested, the cost is recognised immediately in profit or loss.
The amount recognised in the balance sheet represents the present value of the defined benefit obligation, adjusted for unrecognised past service costs and reduced by the fair value of plan assets. Any asset resulting from this calculation is limited to the lower of the asset and any unrecognised past service cost plus the present value of available refunds or reductions in future contributions to the plan.
The rate used to discount the benefit obligations is based on market yields for high quality corporate bonds with terms and currencies consistent with those of the benefit obligations.
Gains and losses on curtailments/settlements are recognised when the curtailment/settlement occurs.
A pension scheme asset is recognised on the balance sheet only to the extent that the surplus may be recovered by reduced future contributions or to the extent that the trustees have agreed a refund from the scheme at the balance sheet date. A pension scheme liability is recognised to the extent that BMT has a legal or constructive obligation to settle the liability.
The assets of the scheme are held separately from those of the Trust in an independently administered fund.
## _**Taxation**_
Birmingham Museums Trust is exempt from taxation on its income and gains where they are applied for charitable purposes.
In the subsidiary financial statements, the policy is to distribute all taxable profits to Birmingham Museums Trust via gift aid.
## _**Stocks**_
Stocks are valued at the lower of cost and net realisable value.
21
_BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **2. Statement of principal accounting policies** _**(continued)**_
## **Tangible and intangible fixed assets**
## _**Operating assets**_
Operating assets are stated at cost less depreciation/amortisation.
Depreciation is provided on a straight-line basis using rates calculated to write down the cost of each asset to its estimated residual value over its anticipated useful life as follows:
|Leasehold improvements|Over the period of the lease|
|---|---|
|Plant and equipment|3 to 10 years|
|Fixtures and fittings|3 to 10 years|
|Hardware|3 to 5 years|
|Software|3 to 5 years|
Depreciation commences in April following the year of purchase.
Assets in the course of construction are not depreciated until completion where upon they are transferred to the appropriate fixed asset category and depreciated as above.
## _**Fixed asset investments**_
Investments are held at cost less any permanent diminution in value.
## **Recognition of liabilities**
Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events.
## **Financial instruments**
The trust 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 with the exception of loans which are subsequently measured at amortised cost using the effective interest method.
## **Related party transactions**
Birmingham Museums Trust is the parent undertaking within a group that prepares consolidated financial statements. Related party transactions are disclosed at note 20.
## **3. Judgements and key sources of estimation uncertainty**
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:
## **Operating lease commitments**
The group has entered into commercial property leases as a lessee on its property portfolio and as a lessee it obtains use of property, plant and equipment. The classification of such leases as an operating or finance lease requires the group to determine, based on an evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the balance sheet. We consider there is no value to be recognised in the peppercorn leases held by Birmingham Museum Trust or the commercial lease held by Thinktank Trust. Leasehold improvements are recognised as assets when it is appropriate to do so.
22
_BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **3. Judgements and key sources of estimation uncertainty** _**(continued)**_
The following are the group’s key sources of estimation uncertainty:
## **Pension and other post-employment benefits**
The costs of defined benefit pension plans are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long-term nature of these plans, such estimates are subject to significant uncertainty. Future salary increases and pension increases are based on expected future inflation rates. Further details are given in note 22.
## **Impairment of non-financial assets**
Where there are indicators of impairment of individual assets, the group performs impairment tests based on fair value less costs to sell, or a value in use calculation. The fair value less costs to sell calculation is based on available data from binding sales transactions in an arm’s length transaction on similar assets or observable market prices.
## **Impairment of debtors**
The company makes an estimate of the recoverable value of trade debtors. When assessing impairment of trade debtors, management consider them individually reviewing the ageing profit of the balance and the historical experience.
## **Obsolete stock provision**
At each balance sheet date, stocks are reviewed for impairment. If stock is impaired the carrying value is reduced. The provision is based upon a percentage reduction linked to the age of the stock item and its sales history.
## **4. Analysis of incoming resources**
|**General Restricted Funds**
Aston Hall Refurbishment
Bangladesh 50
BMOSI
Commonwealth Games
Esmée Fairbairn Collections Fund
HS2 SA Strategy
Millennium Point Trust
Minibrum
Museums for Birmingham
Portable Antiquities Scheme
330
Rent and Service Charge Grant
Rewiring Project
Sarehole Bakehouse
The Big Store
Wildlife Photographer of the Year
WCF - 97011
Other
**Endowment Fund**
**Total Restricted Funds**
**Designated Funds (Unrestricted)**
Arts Council England (National Portfolio Organisation)|**2022**
**2021**
**£**
**£**
3,500
-
-
19,090
150,000
-
28,950
-
-
30,000
379,256
-
98,750
200,000
77,292
122,345
-
(133,094)
97,239
88,710
1,417,000
1,417,000
1,276,523
-
-
10,750
-
(54,374)
-
18,031
590,000
-
128,515
38,025|
|---|---|
||**4,247,025**
**1,756,483**
**-**
**-**|
||**4,247,025**
**1,756,483**|
||**1,026,107**
**1,026,107**|
23
_BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **4. Analysis of incoming resources** _**(continued)**_
|**General Unrestricted Funds**
Other Grants Receivable and Other Income
Furlough Income
CRF Grant
Donations
Birmingham City Council Fees
Visitor Admissions and Outreach Income
Rental Income
Trading Activities
**Total Unrestricted Funds**
**Total Incoming Resources**|**2022**
**£**
**2021**
**£**
434,754
874,134
72,193
1,108,783
820,841
1,872,750
23,541
115,408
3,283,000
3,233,000
1,572,553
56,187
14,082
3,015
797,234
414,764|
|---|---|
||**7,018,198**
**7,678,041**|
||**8,044,305**
**8,704,148**|
|||
||**12,291,330**
**10,460,631**|
Total furlough income received in 21-22 was £0.098m (20-21 £1.357m) of which £0.026m related to the Birmingham Museums Trading Limited and is shown above in Trading Activities.
## **5. Analysis of total resources expended**
|**Costs directly allocated to activities**
Staff costs
Marketing
Maintenance
Finance and Administration
Other operating expenditure
Depreciation / Amortisation
**Direct Costs Total**
**Support costs allocated to activities**
Staff costs
Finance and Administration
Professional fees
Pension Fund charges
**Support Costs Total**
**Total Costs**|**Fundraising**
**Museum**
**Costs**
**Governance**
**2022**
**2021**
**£**
**£**
**£**
**£**
**£**
8,847
3,101,838
-
3,110,685
3,321,436
-
159,402
-
159,402
143,207
-
442,169
-
442,169
389,449
-
10,790
36,437
47,227
32,332
-
5,845,640
-
5,845,640
4,339,465
-
993,655
-
993,655
988,326|
|---|---|
||**8,847**
**10,538,494**
**36,437**
**10,583,778**
**9,214,215**|
||-
1,143,367
-
1,143,367
1,207,344
-
190,230
-
190,230
133,459
-
20,489
-
20,489
46,782
-
262,000
-
262,000
597,000|
||**-**
**1,616,086**
**-**
**1,616,086**
**1,984,585**|
|||
||**8,847**
**12,154,580**
**36,437**
**12,199,864**
**11,198,799**|
24
_BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **6. Analysis of total resources expended** _**(continued)**_
## **Total resources expended include:**
|Depreciation
Amortisation
Provision for liabilities and charges (note 25)
Auditor’s remuneration – audit of these financial statements
Auditor’s remuneration – audit of financial statements of subsidiaries
Auditor’s remuneration – non-audit services
Operating lease charges: land and buildings
Operating lease charges: other than land and buildings|**2022**
**2021**
**£**
**£**
944,151
927,540
49,503
60,785
525,000
-
31,450
21,625
-
-
10,550
-
635,496
619,451
12,870
8,104|
|---|---|
## **7. Key management remuneration and Trustees’ expenses**
The key management personnel of the parent company, the Trust, comprise the Trustees and the senior management team as defined in the Trustees’ Report. The total employee benefits of the key management personnel of the Trust were £460k (2021: £469k).
The key management personnel of the group comprise those of the Trust and its wholly owned subsidiaries Thinktank Trust and Birmingham Museums Trading Limited. The key management personnel are responsible for the group as a whole and it is not possible to split their employee benefits between each individual entity.
An amount of £9,520 (2021: £1,680) was paid in respect of Trustees and Officers Liability Insurance. The Trustees received no remuneration in the year other than reimbursement of expenses. A total of £Nil (2021: Nil) was reimbursed (2021: Nil) to trustees in respect of expenses mainly related to travel.
## **8. Employee numbers and costs**
|**a.****_Average number of persons employed_**
Fundraising
Museum
Support and administration
**b.****_Full Time Equivalent employed_**
Fundraising
Museum
Support and administration|**Number**
**2022**
**Number**
**2021**
1
2
120
147
26
31|
|---|---|
||**147**
**180**|
||**FTE**
**2022**
**FTE**
**2021**
0
2
100
121
20
26|
||**120**
**149**|
25
## _BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **8. Employee numbers and costs** _**(continued)**_
|**c.****_Employee costs_**
Wages and Salaries
Social Security costs
Pension costs|**2022**
**£**
**2021**
**£**
3,772,708
3,977,353
278,466
301,169
202,878
250,258|
|---|---|
||**4,254,052**
**4,528,780**|
Included within wages and salaries figure is an amount of £384k (2021: £111k) in respect of temporary staff costs, £108k (2020: £154k) in respect of casual staff and £36k in respect of redundancy and settlement costs, of which £19k of redundancy costs was funded by the Cultural Recovery Fund.
## _**d. Higher paid employees**_
The number of employees whose emoluments, including pension contributions, fell within the following bands are:
|£100,000 to £109,999
£90,000 to £99,999
£80,000 to £89,999
£70,000 to £79,999
£60,000 to £69,999|**2022**
**2021**
**Number**
**Number**
-
-
-
-
1
1
-
-
3
3|
|---|---|
## _**e. Birmingham Museums Trading Limited**_
Included in the above staff costs, the subsidiary Birmingham Museums Trading Limited was recharged for 22 staff members (2020: 58 staff) whose costs are wholly or partly included within the results of the subsidiary given at note 17.
The employment costs incurred by Birmingham Museums Trading Limited were:
|Wages and Salaries
Social Security costs
Pension costs|**2022**
**£**
**2021**
**£**
393,225
449,087
22,946
28,446
5,798
9,254|
|---|---|
||**421,969**
**486,787**|
Included within wages and salaries above is an amount of £45k (2021: £4k) in respect of temporary staff.
None of the Directors of Birmingham Museums Trading Limited received any remuneration in their capacity as Directors.
## _**f. General volunteers**_
Over 346 (2020: 1,119) volunteers supported BMT, giving us over 3,530 hours (2020: 24,221 hours) of their time across all venues. Volunteers welcomed and engaged visitors to our venues, conservation cleaned objects and our sites, supported family activities, worked with our curators, gardened and assisted with our documentation.
26
## _BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **9. Fixed Assets**
|**a)**
**Tangible Fixed Assets**
**Group**
**Cost**
At 1 April 2021
Additions
Disposals
**At 31 March 2022**
**Depreciation**
At 1 April 2021
Charge for the year
**At 31 March 2022**
**Net Book Value**
**At 31 March 2022**
Net book Value
At 31 March 2021|**Leasehold**
**Plant and**
**Improvements**
**Equipment**
**Fittings**
**Equipment**
**Total**
**£**
**£**
**£**
**£**
**£**
5,843,831
800,142
8,241,575
864,139
15,749,687
56,665
-
-
-
56,665
-
-
-
-
-|
|---|---|
||**5,900,496**
**800,142**
**8,241,575**
**864,139**
**15,806,352**|
||5,374,409
596,061
6,254,386
730,127
12,954,983
54,443
83,973
746,641
59,095
944,152|
||**5,428,852**
**680,034**
**7,001,027**
**789,222**
**13,899,135**|
|||
||**471,644**
**120,108**
**1,240,548**
**74,917**
**1,907,217**|
|||
||**469,419**
**204,081**
**1,987,189**
**134,013**
**2,794,704**|
All fixed assets are held for charitable purposes. Capital expenditure contracted for, but not provided in the financial statements, was £Nil (2021: £Nil.).
|**Company**
**Cost**
At 1 April 2021
Additions
Disposals
**At 31 March 2022**
**Depreciation**
At 1 April 2021
Charge for the year
**At 31 March 2022**
**Net Book Value**
**At 31 March 2022**
Net Book Value
At 31st March 2021|**Leasehold**
**Plant and**
**Computer**
**Improvements**
**Equipment**
**Fittings**
**Equipment**
**Total**
**£**
**£**
**£**
**£**
**£**
634,965
625,483
3,007,303
725,027
4,992,778
56,665
-
-
-
56,665
-
-
-
-
-|
|---|---|
||**691,630**
**625,483**
**3,007,303**
**725,027**
**5,049,443**|
||165,543
433,768
1,702,987
591,015
2,893,313
54,443
79,275
335,960
59,095
528,773|
||**219,986**
**513,043**
**2,038,947**
**650,110**
**3,422,086**|
|||
||**471,644**
**112,440**
**968,356**
**74,917**
**1,627,357**|
|||
||469,422
191,715
1,304,316
134,012
2,099,465|
All fixed assets are held for charitable purposes. Capital expenditure contracted for, but not provided in the financial statements, was £Nil (2020: £Nil).
27
_BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **9. Fixed Assets** _**(continued)**_
- **b) Intangible Fixed Assets**
## **Group and Company**
|**Group and Company**
**Cost**
At 1 April 2021
Additions
**At 31 March 2022**
**Depreciation**
At 1 April 2021
Charge for the year
**At 31 March 2022**
**Net Book Value At 31 March 2022**
Net Book Value At 31 March 2021|**Software**
**£**
232,627
-
**232,627**
135,845
49,503
**185,348**
**47,279**
96,782|
|---|---|
## **10. Stocks**
|Goods for resale|**Group**
**Company**
**Group**
**Company**
**2022**
**2022**
**2021**
**2021**
**£**
**£**
**£**
**£**
**164,809**
**-**
**150,365**
**-**|
|---|---|
Stock recognised as expense during the year was £241k (2021: £102k)
## **11. Debtors**
|**11.**
**Debtors**||
|---|---|
|**Amounts due in one year**
Trade debtors
Amounts owed by group companies
Tax and social security
Other debtors
Prepayments and accrued income
Amounts owed by group companies - Loan
Loan from BCC|**Group**
**Company**
**Group**
**Company**
**2022**
**2022**
**2021**
**2021**
**£**
**£**
**£**
**£**
361,316
263,338
802,007
689,068
-
2,615,828
-
1,922,530
-
44,599
393,598
229,066
158,356
99,143
16,496
4,769
1,314,160
926,423
92,572
92,572
-
132,669
-
56,859
91,508
91,508
97,034
97,034|
||**1,925,340**
**4,173,508**
**1,401,707**
**3,090,898**|
28
## _BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **11. Debtors** _**(continued)**_
## **Amounts due after more than one year:**
|Birmingham City Council
Inter Company Loan
**12.**
**Creditors**
**Amounts due within one year:**
Trade creditors
Tax and social security
Loan from Birmingham City Council
Other creditors
Accruals and deferred income
**Amounts due after more than one year:**
Loan from Birmingham City Council|**Group**
**Company**
**Group**
**Company**
**2022**
**2022**
**2021**
**2021**
**£**
**£**
**£**
**£**
414,768
414,768
506,276
506,276
-
94,762
-
170,572
**414,768**
**509,530**
**506,276**
**676,848**
**Group**
**Company**
**Group**
**Company**
**2022**
**2022**
**2021**
**2021**
**£**
**£**
**£**
**£**
1,325,719
1,321,441
826,063
825,034
140,182
70,246
60,497
60,497
91,508
91,508
97,034
97,034
7,768
7,768
47,527
43,427
71,777
44,146
1,171,782
1,154,844|
|---|---|
||**1,636,954**
**1,535,109**
**2,202,902**
**2,180,836**|
||**Group**
**Company**
**Group**
**Company**
**2022**
**2022**
**2021**
**2021**
**£**
**£**
**£**
**£**
**414,768**
**414,768**
**506,276**
**506,276**|
## **Deferred income (group and company)**
Deferred income comprises grants received in advance of expenditure.
|Balance as at 1 April 2021
Amount released to income from Charitable Activities
Amount deferred in year
**Balance as at 31 March 2022**|**Group**
**Company**
**£**
**£**
939,333
939,333
(939,333)
(939,333)
10,668
10,668|
|---|---|
||**10,668**
**10,668**|
29
## _BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **13. Financial instruments**
|**Financial assets**
Financial assets measured at fair value through
statement of financial activities
Financial assets that are debt instruments
measured at amortised cost
**Financial liabilities**
Financial liabilities measured at amortised cost|**Group**
**Company**
**Group**
**Company**
**2022**
**2022**
**2021**
**2021**
**£**
**£**
**£**
**£**
3,970,898
3,233,927
3,259,467
3,058,247
1,138,046
3,491,683
1,718,376
3,407,568|
|---|---|
||**5,108,944**
**6,725,610**
**4,977,843**
**6,465,815**|
||**1,971,119**
**1,939,208**
**1,570,333**
**1,548,267**|
Financial assets are measured at fair value through statement of financial activities comprises cash held at bank and in hand.
Financial assets that are debt instruments measured at amortised cost comprises trade and other debtors, other taxation and social security and amounts owed by group undertakings.
Financial liabilities measured at amortised cost comprises Trade and other creditors, other taxation and social security, amounts owed to group undertakings, accruals and a loan from Birmingham City Council as explained below.
## **Birmingham City Council Loan**
The loan falls due for repayment as follows:
|Within one year
In 1-2 years
In 2-5 years
Over 5 years|**Group**
**Company**
**Group**
**Company**
**2022**
**2022**
**2021**
**2021**
**£**
**£**
**£**
**£**
91,508
91,508
97,034
97,034
85,136
85,136
91,507
91,507
207,591
207,591
232,540
232,540
122,041
122,041
182,229
182,229|
|---|---|
||**506,276**
**506,276**
**603,310**
**603,310**|
The above unsecured loan is held by Birmingham Museums Trust. The loan was approved by Birmingham City Council in March 2012 with interest charged at 4.5% per annum and is repayable commencing 1 April 2012 and terminating on 1 January 2031. The loan was made to Thinktank Trust then transferred to Birmingham Museums Trust in April 2012.
In addition, Birmingham City Council has identified a source of funding and will not less than 5 business days in advance of each interest payment date grant aid to BMT a sum equivalent to the amount of interest and capital required to be paid by BMT to Birmingham City Council, to be held on trust by BMT and hypothecated to the payments of the loan as they fall due.
30
_BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **14. Funds Analysis - consolidated**
Restricted funds in the consolidated and charity accounts comprise the following unexpended balances of donations and grants held on trust to be applied for specific purposes.
|**General Restricted Funds**
Aston Hall Refurbishment
Bangladesh 50
BMOSI
Commonwealth Games
Esmée Fairbairn Collections Fund
HS2
Islamic Art & Material Culture
Made in Birmingham
Millennium Point Trust
Minibrum
Portable Antiquities Scheme
Rent and Service Charge Grant
Rewiring Project
Science for all Seasons
Spitfire Gallery
Staffordshire Hoard Gallery
Tessa Sidey Bequest
Welcome All
WCF-97011
Other
**Endowment Fund**
**Total Restricted Funds**
**Designated Funds**
Arts Council England –
(National Portfolio Organisation)
CRM / Ticketing
**General Unrestricted Funds**
General Fund
Trading Reserve
**Total Unrestricted Funds**
**Pension Deficit**
**Total Funds**|**Balance at**
**1 April**
**2021**
**£**
**Incoming**
**Resources**
**£**
**Outgoing**
**Resources**
**£**
**Funds**
**Transfer**
**£**
**Other**
**Gain**
**(Loss)**
**£**
**Balance at**
**31 March**
**2022**
**£**
28,281
3,500
(22,113)
-
-
9,668
11,440
-
(8,735)
(2,705)
-
-
-
150,000
139,281
-
-
10,719
-
28,950
(17,250)
-
-
11,700
25,701
-
-
(25,701)
-
-
(2,461)
379,256
(360,318)
(16,477)
-
-
7,229
-
(7,624)
395
-
-
307,994
-
(170,313)
-
-
137,681
96,167
98,750
(169,692)
-
-
25,225
1,379,323
77,292
(339,270)
-
-
1,117,345
35,807
97,239
(87,321)
-
-
45,725
-
1,417,000
(1,417,000)
-
-
-
(10,135)
1,276,523
(831,167)
(420,000)
-
15,221
374,879
-
(240,368)
-
-
134,511
22,193
-
(12,419)
-
-
9,774
159,831
-
(106,519)
-
-
53,312
88,375
-
2,454
-
-
85,921
1,636
-
(409)
-
-
1,227
-
590,000
(141,850)
-
-
448,150
49,948
128,515
(78,921)
(1,061)
-
98,481|
|---|---|
||**2,576,208**
**4,247,025**
**(4,153,024)**
**(465,549)**
**-**
**2,204,660**
890,881
-
(3,500)
-
-
887,381|
||**3,467,089**
**4,247,025**
**(4,156,524)**
**(465,549)**
**-**
**3,092,041**|
||394,064
1,026,107
(543,619)
(875,624)
-
928
-
-
-
-
-
-|
||**394,064**
**1,026,107**
**(543,619)**
**(875,624)**
**-**
**928**
1,887,658
6,220,964
(6,495,611)
1,341,173
-
2,954,184
(248,690)
797,234
742,110
-
(193,566)|
||**1,638,968**
**7,018,198**
**(7,237,721)**
**1,342,173**
**-**
**2,760,618**|
||**2,033,032**
**8,044,305**
**(7,781,340)**
**465,549**
**-**
**2,761,546**|
|||
||**(4,114,000)**
**-**
**(262,000)**
**3,538,000**
**(838,000)**|
|||
||**1,386,121**
**12,291,330**
**(12,199,864)**
**-**
**3,538,000**
**5,015,587**|
The carry forward balance reflects the net book value of assets in the relevant fund balance.
31
## _BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **14. Funds analysis - consolidated** _**(continued)**_
Restricted capital funds represent monies received for the purchase of specific assets. The funds will be expended over the life of the related asset.
## **Restricted funds**
The restricted funds held at the year-end are to be applied for the purposes of the specific projects (as shown under the headings above) to develop:
- a. Aston Hall Refurbishment - the project will, over a number of years, improve the storytelling and interpretation at Aston Hall so it’s more representative and enables BMT to increase footfall to the site.
- b. British Council - Digital Collaboration Fund, partnership with the Bengal Foundation to create an artistic programme marking the 50th anniversary of Bangladeshi independence.
- c. Commonwealth Games - Birmingham 2022 Cultural Festival, We Are Birmingham (BMAG) Black British History: A Journey through the Life of Vanley Burke (Soho House). Exhibitions supported by Birmingham Organising Committee for the 2022 Commonwealth Games Limited.
- d. Esmée Fairbairn Collections Fund (MuseumStream) - a new programme combining digital resources, live streaming and museum objects to create an engagement experience for schools and communities.
- e. HS2 – Implementation of the sensitive artefact strategy to safeguard the collections held at the Museums’ Collection Centre during the HS2 construction works
- f. Islamic Art and Material Culture - A subject specialist network; grant from Arts Council England.
- g. Made in Birmingham - Gallery at Thinktank; this fund is being released as the asset depreciates.
- h. Millennium Point Trust - Grant to support programmes and projects at Thinktank, Birmingham Science Museum.
- i. Minibrum – New gallery and education programme, grants from Inspiring Science Fund co-funded by the Department for Business, Energy & Industrial Strategy (BEIS), UK Research and Innovation (UKRI) and Wellcome, Garfield Weston Foundation, Stavros Niarchos Foundation, The Wolfson Foundation, The 29th May 1961 Charity, Grimmitt Trust, Rowlands Trust and other donors.
- j. Portable Antiquities Scheme - Recording archaeological objects found by members of the public in England and Wales; DCMS grant support, administered by the British Museum.
- k. Rent and Service Charge Grant - Grant support from Birmingham City Council at Thinktank.
- l. Rewiring Project – BCC funding for the collections and non-collections packing, decant, and temporary storage as well as re-installation due to rewiring of the Council House complex including BMAG
- m. Science for All Seasons - The Science Garden at Thinktank was completed prior to 2012 and this fund will be released as the asset is depreciated.
- n. Spitfire Gallery - Opened at Thinktank in March 2015; grants (various funders) and public donations. This fund will be released as the asset is depreciated.
- o. Staffordshire Hoard Gallery - Opened at the Museum & Art Gallery in October 2014; grant support (various funders and public donations) for the gallery refurbishment, and Hoard replicas and conservation. This fund will be released as the asset is depreciated.
- p. Tessa Sidey Bequest – A bequest in the will of Tessa Sidey (1955-2011) a curator at BMAG (1983-2011) to “buy major print acquisitions”.
- q. Welcome All - project to improve access at the Museum & Art Gallery; grant support from DCMS/Wolfson Museum & Art Galleries Improvement Fund 2011-16, Friends of Birmingham Museums Trust and City of Birmingham Museums & Galleries Development Trust, and Arts Council England Major Partner Museum funding 2015-18. This fund will be released as the asset is depreciated.
- r. WCF-97011 – Garfield Weston fund to invest in our digital offer and technology infrastructure.
## **Endowment fund**
This represents the Ivan Witton legacy income.
## **Designated funds**
National Portfolio Organisation - Grant funding from Arts Council England to deliver an agreed programme in support of ACE’s goals. This grant represents the third year of a four year agreement for 2018-22.
32
## _BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **14. Funds analysis - consolidated** _**(continued)**_
Restricted funds in the consolidated and charity accounts comprise the following unexpended balances of donations and grants held on trust to be applied for specific purposes.
## _**Prior Year**_
|**General Restricted Funds**
Aston Hall Refurbishment
Collecting Birmingham
Bangladesh 50
Esmée Fairbairn Collections Fund
HS2
Islamic Art & Material Culture
Made in Birmingham
Millennium Point Trust
Minibrum
Museums for Birmingham
NAWM Graduate Showcase
Portable Antiquities Scheme
Rent and Service Charge Grant
Rewiring Project
Sarehole Mill Conservation
Science for all Seasons
Spitfire Gallery
Staffordshire Hoard Gallery
Tessa Sidey Bequest
The Big Store
Wildlife Photographer
Welcome All
Other
**Endowment Fund**
**Total Restricted Funds**
**Designated Funds**
Arts Council England –
(National Portfolio Organisation)
CRM / Ticketing
**General Unrestricted Funds**
General Fund
Trading Reserve
**Total Unrestricted Funds**
**Pension Deficit**
**Total Funds**|**Balance at**
**1 April**
**2020**
**£**
**Incoming**
**Resources**
**£**
**Outgoing**
**Resources**
**£**
**Funds**
**Transfer**
**£**
**Other**
**Gain**
**(Loss)**
**£**
**Balance at**
**31 March**
**2021**
**£**
37,116
-
(8,835)
-
-
28,281
359
(359)
-
-
-
19,090
(7,650)
-
-
11,440
-
30,000
(4,299)
-
-
25,701
-
-
(2,461)
-
-
(2,461)
27,443
-
(20,214)
-
-
7,229
479,524
-
(171,531)
-
-
307,993
120,527
200,000
(224,360)
-
-
96,167
1,543,880
122,345
(286,902)
-
-
1,379,323
79,594
(133,094)
-
53,500
-
-
25,160
-
-
(25,160)
-
-
29,347
88,710
(82,250)
-
-
35,807
-
1,417,000
(1,417,000)
-
-
-
-
-
(10,135)
-
-
(10,135)
-
10,750
(20,804)
10,054
-
-
622,197
-
(247,318)
-
-
374,879
34,864
-
(12,671)
-
-
22,193
268,291
-
(108,460)
-
-
159,831
88,375
-
-
-
-
88,375
54,374
(54,374)
-
-
-
-
(18,260)
18,031
(17,737)
17,966
-
31,913
-
(30,277)
-
-
1,636
25,996
38,025
(26,757)
12,685
-
49,949|
|---|---|
||**3,450,700**
**1,756,483**
**(2,700,020)**
**69,045**
**-**
**2,576,208**
897,881
-
(7,000)
-
-
980,881|
||**4,348,581**
**1,756,483**
**(2,707,020)**
**69,045**
**-**
**3,467,089**|
||55,215
1,026,107
(687,258)
-
-
394,064
-
-
-
-
-
-|
||**55,215**
**1,026,107**
**(687,258)**
**-**
**-**
**394,064**
1,217,548
7,263,277
(6,524,122)
(69,045)
-
1,887,658
19,945
414,764
683,399
-
(248,690)|
||**1,237,493**
**7,678,041**
**(7,207,521)**
**(69,045)**
**-**
**1,638,968**|
||**1,292,708**
**8,704,148**
**(7,894,779)**
**(69,045)**
**-**
**2,033,032**|
|||
||**(1,043,000)**
**-**
**(597,000)**
**(2,474,000)**
**(4,114,000)**|
|||
||**4,598,289**
**10,460,631**
**(11,198,799)**
**-**
**(2,474,000)**
**1,386,121**|
A detailed review of fund balances was undertaken and adjustments made, shown as funds transfers. The carry forward balance reflects the net book value of assets in the relevant fund balance.
33
## _BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **15. Funds analysis - Company**
The charity holds restricted funds comprising the following unexpended balances of donations and grants held on trust to be applied for specific purposes.
|||||||**Balance**|
|---|---|---|---|---|---|---|
||**Balance at**||||**Other**|**at 31**|
||**1 April**|**Incoming**|**Outgoing**|**Funds**|**Gain**|**March**|
||**2021**|**Resources**|**Resources**|**Transfer**|**(Loss)**|**2022**|
|**Restricted Funds**|**£**|**£**|**£**|**£**||**£**|
|Aston Hall Refurbishment|28,281|3,500|(22,113)|-|-|9,667|
|Bangladesh 50|11,440|-|(8,735)|(2,705)|-|-|
|BMOSI|-|150,000|139,281|-|-|10,719|
|Commonwealth Games|-|28,950|(17,250)|-|-|11,700|
|Esmée Fairbairn Collections Fund|25,701|-|-|(25,701)|-|-|
|Islamic Art & Material Culture 2015-18|7,229|-|(7,624)|(395)|-|-|
|HS2|(2,461)|379,256|(360,318)|(16,477)|-|-|
|Millennium Point Trust|96,167|98,750|(169,692)|-|-|25,225|
|MiniBrum|1,379,323|77,292|(339,270)|-|-|1,117,346|
|Portable Antiquities Scheme|35,807|97,239|(87,321)|-|-|45,726|
|Rewiring Project|(10,135)|1,276,523|(831,168)|(420,000)|-|15,220|
|Spitfire Gallery|22,193|-|(12,419)|-|-|9,773|
|Staffordshire Hoard Gallery|159,831|-|(106,518)|-|-|53,312|
|Tessa Sidey Bequest|88,375|-|2,454|-|-|85,921|
|Welcome All|1,636|-|(409)|-|-|1,227|
|WCF-97011|-|590,000|(141,850)|-|-|448,150|
|Other|49,949|128,515|(78,921)|(1,061)|-|98,479|
||**1,893,335**|**2,830,024**|**(2,325,344)**|**(465,549)**|**-**|**1,932,467**|
|**Endowment Funds**|||||||
|Ivan Witton Legacy (including interest
receivable)|**890,881**||**(3,500)**|**-**|**-**|**887,381**|
|**Total Restricted Funds**|**2,784,216**|**2,830,024**|**(2,328,844)**|**-**|**-**|**2,819,848**|
|**Designated Funds**|||||||
|Arts Council England
(Major Partner Museums 2015-18)|394,064|1,026,107|(543,618)|(875,624)|-|928|
|**Unrestricted Funds**|3,156,846|6,220,965|(6,423,038)|1,341,173|-|4,295,948|
|**Total Unrestricted Funds**|**3,550,910**|**7,247,072**|**(6,996,656)**|465,549|**-**|**4,296,875**|
||||||||
|**Pension Deficit**|**(4,114,000)**|**-**|**(262,000)**|**-**|**3,538,000**|**(838,000)**|
||||||||
|**Total**|**2,221,126**|**10,077,097**|**(9,557,500)**|**-**|**3,538,000**|**6,278,724**|
34
_BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **15. Funds analysis - company** _**(continued)**_
## _**Prior Year**_
|**Restricted Funds**
Arts Council Collection National Partners
Fund
Aston Hall Refurbishment
Collecting Birmingham
Bangladesh 50
Esmée Fairbairn Collections Fund
Islamic Art & Material Culture 2015-18
HS2
Millennium Point Trust
MiniBrum
Museums for Birmingham
NAWM Graduate Showcase
Portable Antiquities Scheme
Rewiring Project
Sarehole Mill Conservation
Spitfire Gallery
Staffordshire Hoard Gallery
Tessa Sidey Bequest
The Big Store
Wildlife Photographer
Welcome All
Other
**Endowment Funds**
Ivan Witton Legacy (including interest
receivable)
**Total Restricted Funds**
**Designated Funds**
Arts Council England -
(Major Partner Museums 2015-18)
**Unrestricted Funds**
**Total Unrestricted Funds**
**Pension Deficit**
**Total**|**Balance**
**at 1 April**
**2020**
**Incoming**
**Resources**
**Outgoing**
**Resources**
**Funds**
**Transfer**
**Other Gain**
**(Loss)**
**Balance at**
**31 March**
**2021**
**£**
**£**
**£**
**£**
**£**
-
-
-
-
-
-
37,116
-
(8,835)
-
-
28,281
358
-
(358)
-
-
-
-
19,090
(7,650)
-
-
11,440
-
30,000
(4,299)
-
-
25,701
27,443
(20,214)
-
-
7,229
0
-
(2,461)
-
-
(2,461)
120,527
200,000
(224,360)
-
-
96,167
1,543,881
122,345
(286,902)
-
-
1,379,324
79,594
(133,094)
-
53,500
-
-
25,160
-
-
(25,160)
-
-
29,348
88,710
(82,250)
-
-
35,809
-
-
(10,135)
-
-
(10,135)
-
10,750
(20,804)
10,054
-
-
34,864
-
(12,671)
-
-
22,193
268,291
-
(108,460)
-
-
159,831
88,375
-
-
-
-
88,375
54,374
(54,374)
-
-
-
-
(18,260)
18,031
(17,737)
17,966
-
-
31,913
-
(30,277)
-
-
1,636
25,995
38,025
(26,757)
12,685
-
49,948|
|---|---|
||**2,348,979**
**339,483**
**(864,171)**
**69,045**
**-**
**1,893,335**
**897,881**
**(7,000)**
**-**
**-**
**890,881**|
||**3,246,860**
**339,483**
**(871,171)**
**69,045**
**-**
**2,784,216**|
||55,215
1,026,107
(687,258)
-
-
394,063
2,194,996
7,263,278
(6,232,382)
(69,045)
-
3,156,846|
||**2,250,211**
**8,289,384**
**(6,919,640)**
**(69,045)**
**-**
**3,550,910**|
|||
||**(1,043,000)**
**-**
**(597,000)**
**-**
**(2,474,000)**
**(4,114,000)**|
|||
||**4,454,070**
**8,628,867**
**(8,387,811)**
**-**
**(2,474,000)**
**2,221,126**|
The carry forward balance reflects the net book value of assets in the relevant fund balance.
35
## _BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **16. Analysis of net assets between funds - consolidated**
|Fixed Assets
Net Current Assets
Creditors (amounts falling due after more than
one year)
Provision for liabilities and charges
**Total as At March 2022**
Fixed Assets
Net Current Assets
Creditors (amounts falling due after more than
one year)
**Total as At March 2021**|**Restricted**
**Pension**
**Unrestricted**
**Total**
**£**
**£**
**£**
**£**
1,468,742
-
485,754
1,954,496
1,623,300
-
3,215,559
4,838,859
-
(838,000)
(414,768)
(1,25,768)
525,000
525,000|
|---|---|
||**3,092,042**
**(838,000)**
**3,761,545**
**5,015,587**|
||2,222,499
-
668,986
2,891,485
1,244,588
-
1,870,325
3,114,912
-
(4,114,000)
(506,276)
(4,620,276)|
||**3,467,087**
**(4,114,000)**
**2,033,034**
**1,386,121**|
## **17. Financial performance of undertakings**
## **Company Statement of Financial Activities**
The consolidated statement of financial activities includes the results of the company’s subsidiaries, Birmingham Museums Trading Limited and Thinktank Trust. The summary financial performance of the company alone is:
|Income
Gift Aid from subsidiary company
Total Income
Expenditure on Charitable Activities
**Net Income**
Other recognised gains/(losses)
**Net Movements in funds**
Total funds brought forward
**Total Funds carried forward**
**Represented by:**
Unrestricted income funds
Restricted funds
Pension
**Net Funds**|**2022**
**£**
**2021**
**£**
10,077,097
8,628,867
-
-|
|---|---|
||10,077,097
8,628,867
(9,557,500)
(8,387,811)|
||**519,596**
**241,056**
3,538,000
(2,474,000)|
||**4,057,596**
**(2,232,944)**|
||2,221,126
4,454,070|
||**6,278,724**
**4,221,126**|
||4,296,875
3,550,910
2,819,849
2,784,217
(838,000)
(4,114,000)|
||**6,278,724**
**2,221,126**|
36
## _BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **17. Financial performance of undertakings** _**(continued)**_
The summary financial performance of the wholly owned subsidiaries are as follows:
## **Birmingham Museums Trading Limited**
**Registered Company Number:** 04221635
|**Registered Address:**
Chamberlain Square
Birmingham
B3 3DH
**Profit & Loss Account**
Turnover
Cost of Sales
**Gross Profit**
Administrative expenses
**Profit on ordinary activities before Gift Aid**
Gift Aid to parent undertaking
**Retained Profit / (Loss) for the year**
**The aggregated assets and liabilities of the**
**subsidiary were**
Assets
Liabilities
**Net Funds**
**Thinktank Trust**
**Registered Company Number:**
03239119
**Registered Address:**
Chamberlain Square
Birmingham
B3 3DH|**2022**
**£**
**2021**
**£**
797,234
414,764
(267,754)
(148,270)|
|---|---|
||**529,480**
**266,494**
(474,356)
(535,129)|
||**55,124**
**(268,635)**
-
-|
||**55,124**
**(268,635)**|
||897,087
493,621
(1,090,653)
(742,311)|
||**(193,566)**
**(248,690)**|
|||
|Total incoming resources
Total resources expended
**Net incoming / (outgoing) resources**
Transfer between funds
**Net movement in funds**
**Fund balances brought forward**
**Fund balances carried forward**|**Unrestricted**
**funds**
**£**
**Restricted**
**funds**
**£**
**Total**
**funds**
**£**
-
1,417,000
1,417,000
(72,573)
(1,827,681)
(1,900,254)|
|---|---|
||**(72,573)**
**(1,827,681)**
**(483,254)**
-
-
-|
||**(72,573)**
**(410,681)**
**(483,254)**|
|||
||**(1,269,189)**
**682,873**
**(586,316)**|
|||
||**(1,341,762)**
**272,192**
**(1,069,570)**|
37
_BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **18. Taxation**
The charitable company’s income is exempt from taxation under section 505 of the Income and Corporation Taxes Act 1988 and its chargeable gains are exempt under section 256 of the Taxation of Capital Gains Act 1992.
## **19. Financial Commitments**
## _**Debentures and charges**_
Thinktank Trust has granted a first mortgage charge over certain of its assets to the Millennium Commission to secure all monies owing to the Commission by the Trust under the terms of a grant agreement dated 10 December 2004.
The Thinktank Trust has granted a mortgage charge over certain of its assets to the National Heritage Memorial Fund under the terms of an agreement date 20 April 2011.
## _**Value Added Tax**_
As a result of group registration arrangements for Value Added Tax (VAT), the charitable company is jointly and severally liable with other members of the group for any VAT due by the representative member of the group **.** At 31 March 2022 the group’s net receivable in respect of VAT was £70k (2021: receivable £394k).
## **20. Related Party Transactions**
During the year, the Company conducted the following transactions with its two subsidiaries, ThinkTank Trust and Birmingham Museums Trading Limited, and had the following debt positions with these subsidiaries at 31 March 2022.
## **Birmingham Museums Trading Limited**
The Company levied a management charge on Birmingham Museums Trading Limited for the year ended 31 March 2022 amounting to £422k (2021: £486k). The management charge for both years includes the recharge of staff by the Company to Birmingham Museum Trading as disclosed in Note 8e to the consolidated financial statements.
Birmingham Museums Trading Limited made a gift aid donation to the Company of £nil for the year ended 31 March 2022 (2021: Nil) as disclosed in Note 17 to the consolidated financial statements.
At 31 March 2022, the Company was due an amount of £1,018k from Birmingham Museums Trading Limited (2021: £695k).
## **Thinktank Trust**
The Company levied a management charge on Thinktank Trust for the year ended 31 March 2022 amounting to Nil.
At 31 March 2022, the Company was due an amount of £1,820k (2021: £1,452k) from Thinktank Trust.
At 31 March 2022, Birmingham Museums Trading Limited was due an amount of £15k from Thinktank Trust (2021: Nil)
## **Birmingham City Council (BCC)**
In addition to the above listed related party transactions, the following transactions took place with BCC, the sole member of the Company, during the year.
BCC received services from the Company and contractual payments received in the year by the Company for services undertaken amounted to a fixed fee of £3.283m (2021: £3.233m) and variable performance payments amounting to £1.573m (2021: £0.056m).
The Company has an outstanding loan with BCC as disclosed in Notes 11 and 12.
BCC funded £831k for the rewiring project and provided compensation of £420k for loss of earnings.
In addition, Thinktank Trust received a grant from BCC of £1.417m during the year (2021: £1.417m) to assist in the provision of lease payments on Thinktank to Millennium Point Property Ltd.
38
_BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **21. Members**
The charity is incorporated as a company limited by guarantee having no share capital and, in accordance with the Memorandum of Association, every member is liable to contribute a sum of £10 in the event of the company being wound up. At 31 March 2022 Birmingham City Council was the sole member of Birmingham Museums Trust.
## **22. Pension Schemes**
The company operates Defined Benefit and Defined Contribution Schemes.
## _**Defined Benefit Scheme**_
The defined benefit pension scheme is accounted for in accordance with applicable accounting standards within the United Kingdom. As a consequence, a liability of £838k (2021: £4,114k) is shown in BMT’s consolidated balance sheet. However, in accordance with the terms and conditions of the Local Government Pension Scheme, any liability is reversed over time through an increase in the contribution from current members to the scheme, on a mutualised basis across the whole of Local Government Pension Scheme, and BMT is not required to specifically fund the deficit that relates to its current and deferred members.
|The major assumptions used by the actuary were (in nominal terms):
Rate of increase in salaries
Rate of increase to pensions
Discount rate
Inflation assumption – CPI
Assumed life expectations on retirement at age 65 are:
Retiring today
Males
Females
Retiring in 20 years’ time
Males
Females|**At**
**31 March**
**2022**
**At**
**31 March**
**2021**
4.15%
3.85%
3.15%
2.85%
2.75%
2.00%
2.95%
2.85%|
|---|---|
||**At**
**31 March**
**2022**
**At**
**31 March**
**2021**
21.2
21.6
23.6
23.9
22.9
23.4
25.4
25.8|
The assumptions used in determining the overall expected return of the scheme have been set with reference to yields available on government bonds and appropriate risk margins.
The assets in the scheme and the expected rates of return were:
|Equities
Gilts
Bonds
Property
Cash
Other
**Fair value of plan assets**
Th l h|**Fair value at**
**31 March**
**2022**
**Fair value at**
**31 March**
**2021**
**£000**
**£000**
14,812
12,073
-
2,041
4,864
787
1,547
1,481
884
1,225
-
2,887|
|---|---|
||**22,107**
**20,494**|
||**1,684**
**10**|
The actual return on assets over the year was
39
_BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **22. Pension Schemes** _**(continued)**_
## _**Defined Benefit Scheme (continued)**_
|The amounts recognised in the balance sheet are as follows
Present value of scheme liabilities
Fair value of scheme assets
**Net pension liability**
Analysis of the amount charged to Statement of Financial Activities:
Current service cost
Administration cost
Interest on the defined liability/(asset)
**Total**
Analysis of the amount recognised in other recognised gains and
losses:
Actuarial (loss)/gain on scheme assets
Actuarial (loss)/gain on scheme liabilities
**Actuarial (loss)/gain recognised**
**Changes to the present value of the defined benefit obligation:**
Opening defined benefit obligations
Current service cost
Interest cost
Contributions by scheme participants
Actuarial loss/(gain)
Benefits paid
Past service cost
Changes in demographic assumptions
Experience loss/(gain) on defined benefit obligation
**Closing defined benefit obligations**
**Changes in the fair value of plan assets**
Opening plan assets
Interest on assets
Return on assets less interest
Other actuarial gains/(losses)
Administration expenses
Contributions by employers
Contributions by scheme participants
Benefits paid
**Closing plan assets**|**2022**
**£000**
**2021**
**£000**
(22,945)
(24,608)
22,107
20,494|
|---|---|
||**(838)**
**(4,114)**|
||364
340
-
12
22
22|
||**386**
**374**|
||1,232
(6,000)
2,306
3,527|
||**3,538**
**(2,474)**|
||24,608
18,153
364
340
493
425
48
89
(2,184)
6,233
(352)
(202)
47
-
(122)
(232)
43
(198)|
||**22,945**
**24,608**|
||20,494
17,110
409
403
1,275
2,904
-
-
-
(12)
233
202
48
89
(352)
(202)|
||**22,107**
**20,494**|
The pension cost charge represents contributions payable by the trust and amounted to £250k (2021: £266k) for the defined benefit scheme.
40
_BIRMINGHAM MUSEUMS TRUST_
## **Notes to the Financial Statements** _**(continued)**_
## **22. Pension Schemes** _**(continued)**_
## _**Defined Contribution Scheme**_
The charitable company operates a stakeholder compliant Group Personal Pension Scheme run by Standard Life PLC open to all employees. The Trust makes matching contributions to this scheme for employees making contributions, subject to a minimum contribution of 3% per month per employee.
## **23. Lease Commitments**
## _**Land and Building Leases**_
At 31 March 2022 the group had future minimum lease payments, in relation to land and building leases for Thinktank Trust at Millennium Point, under non-cancellable operating leases as follows:
|Within one year
Between two to five years
More than five years
**Total**|**2022**
**2021**
**£**
**£**
647,338
630,994
2,755,282
2,685,718
2,060,277
2,772,329|
|---|---|
||**5,462,847**
**6,089,042**|
The company had no leases in respect of land and buildings.
## _**Other Operating Leases**_
At 31 March 2022 the group and company had future minimum lease payments, in relation to other operating leases, under non-cancellable operating leases as follows:
||**Group**|**Company**|**Group**|**Company**|
|---|---|---|---|---|
||**2022**|**2022**|**2021**|**2021**|
||**£**|**£**|**£**|**£**|
|Within one year|12,870|12,870|8,400|8,400|
|Between two to five years|12,904|12,904|10,500|10,500|
|More than five years|-|-|-|-|
|**Total**|**25,775**|**25,775**|**18,900**|**18,900**|
## **24. Post Balance Sheet Events**
There have been no post balance sheet events
## **25. Provisions for liabilities and charges**
A provision has been made in respect of an ongoing HMRC VAT enquiry in relation to the calculation of the charitable group’s partial exemption recovery rate.
The provision provides for underpaid VAT of £525k for the period October 2018 to March 2022. This estimate is based on a methodology that has, in principle, been agreed with HMRC. The timing of payments will become known once the enquiry formally concludes.
41