2023-03-31-accounts

BIRMINGHAM MUSEUMS TRUST

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 2023

Contents

	Page
Company Details	1
Report of the Trustees and Strategic Report	2 - 9
Statement of Trust ponsibilities	10
Independent Auditor s Report to the Members	11-13
Consolidated Statement of Financial Activities for the year ended 31 March 2023	14
Consolidated Statement of Financial Activities for the year ended 31 March 2022	15
Consolidated Balance Sheet as at 31 March 2023	16
Company Balance Sheet as at 31 March 2023	17
Consolidated Cash Flow Statement for the year ended 31 March 2023	18
Notes to the Financial Statements	19-41

BIRMINGHAM MUSEUMS TRUST

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, 4[th] Floor 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

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BIRMINGHAM MUSEUMS TRUST

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 2023. 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 (resigned 29 December 2022)

Councillor Robert Alden Mr Clive Bawden Dr Louise Brooke-Smith OBE

Rt Hon Liam Byrne MP (resigned 28 December 2022) Mr Liam Darbon Cllr Phil Davis MBE Mr John Diviney Ms Sapreena Kumari Mr Jonnie Turpie MBE Mrs Claire Williamson (resigned 29 March 2023) Ms Elly Porter Mr Tony Simpson Ms Tracey Stephenson (appointed 29 March 2023)

Ms Jess Rose Phillips (appointed 26 July 2023)

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 Ms Sapreena Kumari (resigned 22 August 2022)

Mr John Diviney (appointed 18 July 2022)

Thinktank Trust

Mr Niels de Vos

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.

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BIRMINGHAM MUSEUMS TRUST

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.

Th ts 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.

----- Start of picture text -----
PROBLEM BELIEF MISSION PURPOSE VISION
The challenge we The conviction What we exist to do Value and How the word
face that fuels our importance of would be better if
commitment what we do we succeed
Structural inequality We We harness all This embraces We will empower
is thwarting acknowledge the people's Birmingham's people and
Birmingham's our history, its collections, super-diversity communities to
potential. injustices and heritage and generating hope, imagine and shape
innovations as creativity to tell building social an ambitious,
an ethical stories that make trust and vibrant, creative,
foundation for meaning. increasing multicultural city.
our work. belonging and
solidarity.
Birmingham's We will exercise Audiences and Birmingham We will activate
huge potential as intellectual and communities will Museums will be and amplify
a vibrant, creative, cultural play a leading an ambitious, Birmingham's rich
convivial, leadership in role in shaping authentic cultural
multicultural city is addressing the Birmingham expression of the inheritance and
greatly diminished issues of an Museums best of the people vibrant cultural
by structural increasingly through of the city and the life. We will
inequality, polarised consultation, region. If renew/reinvent
deprivation and society, while collaboration and interaction and our buildings and
social injustice. also exploring coproduction. understanding programmes to
This hinders historic We will work with are sought redefine the
aspiration and injustices within cultural and diversity is a museum so that it
hope, undermines an overall community great strength. is a catalyst for
trust in context of partners and We will explore active citizenship,
institutions, Birmingham as individuals, to how cultural democratic
weakens civic a city of reflect the resources can be renewal and
pride and the belonging, stories and shared and inclusive pride in
connections capable of characters of the cultural Birmingham.
between and containing people and city participation and
within multiple today, their expression can
communities, and identities and a shared be enabled within
disempowers its plurality of experiences and a complex
citizens. views. untold histories. cultural
ecosystem.
CAUSE
Our Purposeful Vision
We harness all the peop s, 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.
----- End of picture text -----

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BIRMINGHAM MUSEUMS TRUST

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 Ch neral guidance on public benefit when reviewing the charitable compa 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 charit iorities 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 Toby Watley, Direct of Collections, Rachel Cockett, Director of Development (until March 2023), and Janine Eason, Director of Engagement.

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 alary 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. ll Staff Br 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.

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BIRMINGHAM MUSEUMS TRUST

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 2022/23

2022-23 has been a transitional year for Birmingham Museums Trust as the removal of COVID-19 restrictions saw us increase our public facing activities, while some impactful building-centred projects continued to focus our efforts.

2022 saw the partial re-opening of Birmingham Museum & Art Gallery (BMAG) in April, to coincide with the Birmingham 2022 Festival and Commonwealth Games. To mark this milestone we handed the museum over to a number of creatives, with a coAre Birmingham, a contemporary re-display of the Round Room. In the Industrial Gallery, Birmingham Music Archive C.I.C. curated the In The Que display, partnership with BMT to create Blacklash, and Flatpack worked in partnership with BMT to create Wonderland. Additional displays by BMT teams included Collection Stories and Unprecedented Times. Meanwhile the Gas Hall hosted the Found Cities, Lost Objects: Women in the City touring exhibition, curated by Lubaina Himid CBE in partnership with Arts Council Collection.

Evaluation showed that in 2022 BMAG attracted a younger more ethnically diverse audience. With BMAG seeing 409,784 visitors during its limited reopening.

BMAG closed again in Nov 2022 for the completion of the phase 2 electrical works and to also undertake essential roof repairs, heating improvements and lift replacements having been awarded just under £5m (BCC as grant recipient) of Arts Council England MEND funding to address long-standing and critical building issues.

In order to focus on the major work at Birmingham Museum & Art Gallery, we introduced a formal loans moratorium from May 2022, which meant that we lent to fewer venues in 2022-23, with a total of 65 objects lent to short term exhibitions, although 873 objects or groups of objects remained on long-term loan. However, a number , including The Rest on the Flight to Egypt at the National Gallery, and more locally, Erminia and the Shepherd, The Last of England, and Christ as the Man of Sorrows at The Barber Institute, continuing to support the contributing to almost 10 million visitors seeing loans from the collection at venues worldwide.

in February 2023, with five new room displays. An Aston link also fed through at Thinktank, where exhibition sponsors National Grid supported the display of a new acquisition, part of the very large and well-known Windsor Street Gasholders. At Soho House, Blood and Fire, an evocative display of images by photographer Vanley Burke was staged in the Visitor Centre involving guest curators as a co-commissioned Birmingham Festival 2022 project.

Soho House itself remained closed to visitors during 2022-23, as did the Museum of the Jewellery Quarter, although both were featured as part of The Museum of Us, which also saw us loan items

Sarehole Mill remained open with the bakehouse continuing, while Blakesley Hall, the Tudor house a few miles from the centre of Birmingham, opened for the Summer season. Public access also returned at the Museum Collection Centre from March 2022. Along with Thinktank, this took our total visitors to 707,193 during the year.

An international co-consultancy project, Solidarity in Action Network, was established, where 10 BMT staff members, 10 local Birmingham partners, and 20 international partners from Greece, South Africa, Denmark,

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BIRMINGHAM MUSEUMS TRUST

Report of the Trustees and Strategic Report (continued)

Germany and Poland came together to understand over 5 sessions how we can work better with non-museum partners to tackle global issues through solidarity.

We were supported by 341 volunteers in FY 2022-2023. We launched, with Culture Central, the West Midlands Volunteer Futures project in collaboration with Creative Black Country, Stoke Creates and Open Theatre. Our Volunteering for Veterans project, a health and wellbeing project for ex-serviceman and women, who participated in the conservation of vintage motorcycles at the Museum Collection Centre, was brought to a close. The close of 2022-23 also saw the successful appointment of a new volunteer manager, who will ensure that volunteers will be re-engaged, and volunteering revitalised in 2023-24.

There were several key acquisitions during the year, including items from the Eagle & Tun pub me that was demolished by HS2 as part of their Curzon St works. We also worked with significant speed and flexibility to ensure that BMTcould acquire a range of items from the Commonwealth Games, including medals, participant outfits, and items from the opening and closing ceremonies. Purchases during the year included a number of works by artist Arpita Shah through Birmingham-based GRAIN Projects.

Balancing our acquisitions into the collection, as part of a sound and ethical approach to the management of the our approach to deaccessioning as a positive aspect of how we care for the collection, with 18 objects in irreparable poor condition deaccessioned this year. We also developed a pragmatic approach to disposing of items that are not formally part of the collection. Sharing our work on this within the sector, our Collections team has worked with the Museums Association in their review of museum disposals, with updated guidance due in 2023.

At the Museum Collection Centre, the Collections Care teams continued to undertake storage improvements, with an urgency dictated by the need to accommodate collections moved across from Birmingham Museum & Art Gallery. Investment into the improved storage of Natural Sciences material collated material, improved storage conditions, and created significant space. As part of this work, we also for the first time centralised all paper based collections documentation in a drive to make it more accessible to both staff and researchers, which was enabled by the move of the material from the basement of BMAG to the Museum Collection Centre.

The site also saw a denser period of HS2 related activity with the conclusion of enabling works by Severn Trent Water, diverting the drainage pipe that runs through the courtyard. We were particularly pleased that these works concluded largel for their own works to commence.

This year also saw us develop a transformational programme of collections work, entitled Dynamic Collections, which we took to several funders. The programme is intended to democratise our use and management of the collection, creating opportunities for public participation, while ultimately moving us to a position where we can share publicly our collections information and images. Three strands of work, with funding from Arts Council England through our NPO Application, Esmée Fairbairn, and Fidelity, will allow three strands of work that contribute to this programme in 2023-24.

We continue to support BCC in the management of its Public Art portfolio and were particularly delighted this year to have been able to reassemble and relocate the Gas Workers War Memorial, now incorporated into a new Cadent facility (the successor company to the Gas Board). We also supported BCC in the return to the Public Realm of Iron:Man of River and Youth (the sculptural elements of the Victoria Square Fountain), and of Boulton, Mudock and Watt .

June 2022 saw the completion of the Feasibility Study for a possible new science museum (and delivery model) in Birmingham since Thinktank lease comes to an end in 2029. Working with project partners BCC, the Science Museum Group, and support from Greater Birmingham & Solihull LEP, the Study included a site options appraisal, masterplan and business case for a potential new flagship museum of science and industry alongside a dispersed and ongoing participation programme of STEM and cultural engagement across neighbourhoods co-created with Birmingham people.

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.

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BIRMINGHAM MUSEUMS TRUST

Report of the Trustees and Strategic Report (continued)

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 AC Jul .

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 2022/23.

BMT s Safeguarding Policy makes specific reference to donors. BMT abide by the Fundraising Re 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

Business Plan 2022-26 states that our CoSara Wajid and Zak Mensah 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.

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BIRMINGHAM MUSEUMS TRUST

Report of the Trustees and Strategic Report (continued)

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.

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 and essential building repairs at BMAG continues. There was a partial reopening of BMAG in summer 2022 before it reclosed due to capital works. The museum will have a phased re-opening from 2025.

• Taking forward the feasibility study for the Birmingham: City of Ideas project which includes the development of a new flagship museum for science and industry to replace Thinktank. The next development phase of the Museum Collection Store, to ensure longer term sustainability of and access to the building and the collections

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BIRMINGHAM MUSEUMS TRUST

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 continued to be 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 fully or partially closed for the majority of 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 £0.034m (2022: £0.036m). 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 announcement on 5 September 2023 of a Section 114 by Birmingham City Council may have implications for Birmingham Museums Trust going forward. current funding agreement with BCC remains in force until 31 March 2026 and the official statements from BCC outline that existing contracts will continue to be honoured. However, as BCC continues to look at areas of cost saving in its budget setting process for the 2024/25 year onwards, the extent of the financial impact on the group is unknown at this stage.

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 charit ivities from risk of disruption at short notice due to lack of funds.

They take the view that the nature of the 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 2023 Restricted Funds stand at £2.285m (2022: £3.092m), Unrestricted Funds at £2.255m (2022: £2.762m) and a Pension Reserve of £NIL (2022: £0.838m deficit). Free reserves as at the 31 March 2023 were £1.654m (2022: £2.300m).

The unrestricted reserves are in line with the

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. 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.

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BIRMINGHAM MUSEUMS TRUST

Statement of Trustees responsibilities in respect of the Tru the financial statements

and

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 Trustee 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 c

ditors 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 compa 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 15 December 2023 and signed on their behalf by:

Mr Niels de Vos Chair

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BIRMINGHAM MUSEUMS TRUST

Independent port to the Members and Trustees of Birmingham Museums Trust

Opinion

We have audited the financial statements of Birmingham Museums ent charitable com subsidiaries ( e year ended 31 March 2023 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 charitabl s affairs as at 31 March 2023, and of th 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 nsibilities 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 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 trust accounting in the preparation of the financial statements is appropriate.

going concern basis of

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 com 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 eport 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

Independent Auditor eport 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 truste report (incorporating the strategic report and the directo ort) 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 di eport.

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

• certain disclosures of directors muneration 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 trustee ibilities 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 as and parent charitable c 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 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 eport 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 including fraud, but was not limited to, the following:

12

BIRMINGHAM MUSEUMS TRUST

Independent port 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 c 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 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 of fraud 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 Co bsite at: https://www.frc.org.uk/auditorsresponsibilities . This description forms part o s report.

Use of our report

This report is made solely to the charitable com embers, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charitable co s 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 members and its trustees those matters we are required to state to them in an audit eport 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 co members as a body and the charitable 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: 19 December 2023

13

BIRMINGHAM MUSEUMS TRUST

Consolidated Statement of Financial Activities For the year ended 31 March 2023

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 Actuarial (loss)/gain on scheme assets Actuarial (loss)/gain on scheme liabilities 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 2023 £ Total 2022 £ 22,260 - - 22,260 37,748 10,000 - - 10,000 14,082 13,305 - 13,305 729 1,816,520 - - 1,816,520 1,572,553 4,996,446 2,849,363 - 7,845,809 9,868,984 1,607,196 - - 1,607,196 797,234
	8,465,727 2,849,363 - 11,315,090 12,291,330 (1,479,797) - - (1,479,797) (742,110) - - - - (8,847) (7,505,572) (3,643,737) (188,000) (11,337,309) (11,448,907)
	(8,985,369) (3,643,737) (188,000) (12,817,106) (12,199,864)
	(519,642) (794,374) (188,000) (1,502,016) 91,466 12,735 (12,735) - - - - - (7,262,000) (7,262,000) 1,232,000 - - 8,288,000 8,288,000 2,306,000
	- - 1,026,000 1,026,000 3,538,000
	(506,907) (807,109) 838,000 (476,016) 3,629,466
	2,761,546 3,092,041 (838,000) 5,015,587 1,386,121
	2,254,639 2,284,932 - 4,539,571 5,015,587

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.

The notes on pages 19 to 41 form part of these accounts.

14

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.

The notes on pages 19 to 41 form part of these accounts.

15

BIRMINGHAM MUSEUMS TRUST

Consolidated Balance Sheet as at 31 March 2023

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	2023 2022 £ £ 1,540,153 1,907,217 - 47,279
	1,540,153 1,954,496
	150,889 164,809 1,308,536 1,925,340 329,632 414,768 2,639,861 3,970,896
	4,428,918 6,475,813 (1,099,868) (1,636,954)
	3,329,050 4,838,859
	4,869,203 6,793,355 (329,632) (414,768) - (525,000) - (838,000)
	4,539,571 5,015,587
	2,254,639 2,761,546 1,400,531 2,204,660 884,401 887,381 - (838,000)
	4,539,571 5,015,587

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 15 December 2023 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 2023

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	2023 2022 £ £ 1,537,183 1,627,357 - 47,279
	1,537,183 1,674,636
	4,262,530 4,173,508 348,584 509,530 1,496,062 3,233,927
	6,107,176 7,916,965 (1,072,490) (1,535,109)
	5,034,686 6,381,856
	6,571,869 8,056,492 (329,632) (414,768) (525,000) (838,000)
	6,242,237 6,278,724
	3,957,305 4,296,876 1,400,531 1,932,467 884,401 887,381 - (838,000)
	6,242,237 6,278,724

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 15 December 2023 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 2023

Consolidated Cash Flow Statement For the year ended 31 March 2023
	Note			2023	2022
				£	£
Cash used in operating activities	a	(1,031,154)			768,096
Cash flows from investing activities	b	(299,884)			(56,665)
Decrease / Increase in cash during the year		(1,331,038)			711,431
(a) Cash used in operating activities
				2023	2022
				£	£
Net incoming / (outgoing) resources		(1,502,016)			91,466
Adjustments for non-cash items:
Depreciation and amortisation				714,227	993,655
Pension fund provision				188,000	262,000
(Increase)/decrease in stocks				13,920	(14,444)
(Increase)/decrease in debtors				616,801	(523,634)
(Decrease)/Increase in creditors			(537,086)		(565,947)
(Decrease)/increase in provision			(525,000)		525,000
Net cash inflow from operating activities		(1,031,154)			768,096
(b) Cash flows from investing activities
				2023	2022
				£	£
Purchase of tangible fixed assets		(299,884)			(56,665)
Purchase of intangible fixed assets				-	-
Net cash outflow from investing activities		(299,884)			(56,665)
(c) Analysis of movements in cash and cash equivalents
				2023	2022
				£	£
Decrease / Increase in cash and cash equivalents in the year		(1,331,038)			711,431
Cash and cash equivalents at the beginning of the year		3,970,898			3,259,466
Total cash and cash equivalents at the end of the year		2,639,860			3,970,898
(d) Analysis by cash and net debt
	As At	Cash		Other non-	As at
	April	flows		cash flows	March
	2022				2023
	£		£	£	£
Cash at Bank and in hand	3,970,898	(1,331,038)		-	2,639,860
Debt due after one year	414,768		-	(85,136)	329,632
Debt due within one year	91,508		-	(6,372)	85,136
	4,477,174	(1,331,038)		(91,508)	3,054,629

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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 T 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 charit accounting policies (see note 3).

The announcement on 5 September 2023 of a Section 114 by Birmingham City Council may have implications for Birmingham Museums Trust going forward. However, as BCC continues to look at areas of cost saving in its budget setting process for the 2024/25 year onwards, the extent of the financial impact on the group is unknown at this stage.

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.

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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 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.

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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.

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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 10 years
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.

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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 action 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 BMOSI Commonwealth Games HS2 SA Strategy Millennium Point Trust Minibrum Portable Antiquities Scheme 330 Rent and Service Charge Grant Rewiring Project Reset and Innovation WCF - 97011 Vanley Burke Exhibition Other Endowment Fund Total Restricted Funds Designated Funds (Unrestricted) Arts Council England (National Portfolio Organisation)	2023 2022 £ £ - 3,500 - 150,000 22,950 28,950 - 379,256 160,000 98,750 33,363 77,292 120,224 97,239 1,417,000 1,417,000 945,999 1,276,523 46,490 - - 590,000 29,120 - 74,217 128,515
	2,849,363 4,247,025 - -
	2,849,363 4,247,025
	1,026,107 1,026,107

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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	2023 £ 2022 £ 701,644 434,754 - 72,193 - 820,841 22,260 23,541 3,282,000 3,283,000 1,816,520 1,572,553 10,000 14,082 1,607,196 797,234
	7,439,620 7,018,198
	8,465,727 8,044,305
	11,315,090 12,291,330

Total furlough income received in 22-23 was £NIL (21-22 £0.098m).

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 2023 2022 £ £ £ £ £ - 3,649,539 - 3,649,539 3,110,685 - 205,717 - 205,717 159,402 - 366,279 - 366,279 442,169 - 9,155 34,113 43,268 47,227 - 6,348,199 - 6,348,199 5,845,640 - 714,226 - 714,226 993,655
	- 11,293,115 34,113 11,327,228 10,583,778
	- 1,051,678 - 1,051,678 1,143,367 - 232,858 - 232,858 190,230 - 17,342 - 17,342 20,489 - 188,000 - 188,000 262,000
	- 1,489,878 - 1,489,878 1,616,086
	- 12,782,993 34,113 12,817,106 12,199,864

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) Au s remuneration audit of these financial statements Auditor s remuneration audit of financial statements of subsidiaries Audi s remuneration non-audit services Operating lease charges: land and buildings Operating lease charges: other than land and buildings	2023 2022 £ £ 666,948 944,151 47,279 49,503 - 525,000 35,000 31,450 - - 59,099 10,550 651,384 635,496 12,170 12,870

7. Key management remuneration and Trustee expenses

The key management personnel of the parent company, the Trust, comprise the Trustees and the senior management team as defined in the Tru Report. The total employee benefits of the key management personnel of the Trust were £391k (2022: £460k).

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 (2022: £9,520) 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 (2022: £Nil) was reimbursed (2022: 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 2023 Number 2022 - 1 106 120 25 26
	131 147
	FTE 2023 FTE 2022 - - 92 100 22 20
	114 120

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	2023 £ 2022 £ 4,097,084 3,772,708 332,595 278,466 269,385 202,878
	4,699,064 4,254,052

Included within wages and salaries figure is an amount of £284k (2022: £384k) in respect of temporary staff costs, £198k (2022: £108k) in respect of casual staff and Nil (2022: £36k) in respect of redundancy and settlement costs.

d. Higher paid employees

The number of employees whose emoluments, including pension contributions, fell within the following bands are:

£80,000 to £89,999 £70,000 to £79,999 £60,000 to £69,999	2023 2022 Number Number - 1 3 - 2 3

e. Birmingham Museums Trading Limited

Included in the above staff costs, the subsidiary Birmingham Museums Trading Limited was recharged for 22 staff members (2022: 22 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	2023 £ 2022 £ 684,403 393,225 32,026 22,946 14,878 5,798
	731,307 421,969

Included within wages and salaries above is an amount of £200k (2022: £45k) 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

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 2022 Additions Disposals At 31 March 2023 Depreciation At 1 April 2022 Charge for the year At 31 March 2023 Net Book Value At 31 March 2023 Net book Value At 31 March 2022	Leasehold Plant and Improvements Equipment Fittings Equipment Total £ £ £ £ £ 5,900,495 800,142 8,241,575 864,139 15,806,352 55,190 - 209,702 34,992 299,884 - - - - -
	5,955,685 800,142 8,451,277 899,131 16,106,236
	5,428,852 680,034 7,001,027 789,222 13,899,135 61,526 43,990 516,921 44,511 666,948
	5,490,378 724,024 7,517,948 833,733 14,566,082
	465,308 76,118 933,330 65,398 1,540,153
	471,644 120,108 1,240,548 74,917 1,907,217

All fixed assets are held for charitable purposes. Capital expenditure contracted for, but not provided in the financial statements, was £Nil (2022: £Nil.).

Company Cost At 1 April 2022 Additions Disposals At 31 March 2023 Depreciation At 1 April 2022 Charge for the year At 31 March 2023 Net Book Value At 31 March 2023 Net Book Value At 31st March 2022	Leasehold Plant and Computer Improvements Equipment Fittings Equipment Total £ £ £ £ £ 691,630 625,483 3,007,303 725,027 5,049,443 55,191 - 209,702 34,992 299,885 - - - - -
	746,821 625,483 3,217,005 760,019 5,349,328
	219,986 513,043 2,038,947 650,110 3,422,086 61,526 39,292 244,730 44,511 390,057
	281,512 552,335 2,283,677 694,621 3,812,144
	465,309 73,148 933,328 65,398 1,537,183
	471,641 112,440 968,356 74,917 1,627,357

All fixed assets are held for charitable purposes. Capital expenditure contracted for, but not provided in the financial statements, was £Nil (2022: £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 2022 Additions At 31 March 2023 Depreciation At 1 April 2022 Charge for the year At 31 March 2023 Net Book Value At 31 March 2023 Net Book Value At 31 March 2022	Software £ 232,627 -
	232,627
	185,348 47,279
	232,627
	-
	47,279

10. Stocks

Goods for resale	Group Company Group Company 2023 2023 2022 2022 £ £ £ £ 150,889 - 164,809 -

Stock recognised as expense during the year was £629k (2022: £267k)

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 Birmingham City Council	Group Company Group Company 2023 2023 2022 2022 £ £ £ £ 426,500 215,058 361,316 263,338 - 3,514,748 - 2,615,828 - - - 44,599 10,587 2,258 158,356 99,143 786,314 369,520 1,314,160 926,423 - 75,810 - 132,669 85,136 85,136 91,508 91,508
	1,308,537 4,262,530 1,925,340 4,173,508

28

BIRMINGHAM MUSEUMS TRUST

Notes to the Financial Statements (continued)

11. Debtors (continued)

Amounts due after more than one year:

Birmingham City Council Amount owed by group companies 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 2023 2023 2022 2022 £ £ £ £ 329,632 329,632 414,768 414,768 - 18,952 - 94,762 329,632 348,584 414,768 509,530 Group Company Group Company 2023 2023 2022 2022 £ £ £ £ 555,141 518,821 1,325,719 1,321,441 361,069 405,318 140,182 70,246 85,136 85,136 91,508 91,508 32,820 32,820 7,768 7,768 65,702 30,395 71,777 44,146
	1,099,868 1,072,490 1,636,954 1,535,109
	Group Company Group Company 2023 2023 2022 2022 £ £ £ £ 329,632 329,632 414,768 414,768

Deferred income (group and company)

Deferred income comprises grants received in advance of expenditure.

Balance as at 1 April 2022 Amount released to income from Charitable Activities Amount deferred in year Balance as at 31 March 2023	Group Company £ £ 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 2023 2023 2022 2022 £ £ £ £ 2,639,861 1,496,062 3,970,898 3,233,927 835,693 4,137,506 976,187 3,567,493
	3,475,544 5,633,568 5,108,944 6,801,421
	1,238,909 1,167,281 1,972,688 2,004,596

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 2023 2023 2022 2022 £ £ £ £ 85,136 85,136 91,508 91,508 77,846 77,846 85,136 85,136 179,387 179,387 207,591 207,591 72,399 72,399 122,041 122,041
	414,768 414,768 506,276 506,276

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 BMOSI Commonwealth Games Made in Birmingham Millennium Point Trust Minibrum Portable Antiquities Scheme Rent and Service Charge Grant Reset and Innovation 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) General Unrestricted Funds General Fund Trading Reserve Total Unrestricted Funds Pension Deficit Total Funds	Balance at 1 April 2022 £ Incoming Resources £ Outgoing Resources £ Funds Transfer £ Other Gain (Loss) £ Balance at 31 March 2023 £ 9,668 - (9,933) 265 - - 10,719 - (48,686) - - (37,967) 11,700 52,070 (39,394) - - 24,376 137,680 - (137,680) - - - 25,225 160,000 (59,934) - - 125,291 1,117,346 33,363 (203,932) - - 946,777 45,726 120,224 (100,780) - - 65,170 - 1,417,000 (1,417,000) - - - - 46,490 (19,598) - - 26,892 15,221 945,999 (932,655) - - 28,565 134,512 - (134,512) - - - 9,774 - (9,774) - - - 53,313 - (53,313) - - - 85,921 - - - - 85,921 1,227 - (409) - - 818 448,150 - (389,260) - - 58,890 98,478 74,217 (83,897) (13,000) - 75,798
	2,204,660 2,849,363 (3,640,757) (12,735) - 1,400,531 887,381 - (2,980) - - 884,401
	3,092,041 2,849,363 (3,643,737) (12,735) - 2,284,932
	928 1,026,107 (246,255) (778,986) - 1,794
	928 1,026,107 (246,255) (778,986) - 1,794 2,954,185 5,832,424 (7,259,317) 791,721 - 2,319,013 (193,567) 1,607,196 (1,479,797) - (66,168)
	2,760,618 7,439,620 (8,739,114) 791,721 - 2,252,845
	2,761,546 8,465,727 (8,985,369) 12,735 - 2,254,639
	(838,000) - (188,000) 1,026,000 - -
	5,015,587 11,315,090 (12,817,106) 1,026,000 - 4,539,571

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 re representative and enables BMT to increase footfall to the site.

• b. 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.

• c. Made in Birmingham - Gallery at Thinktank; this fund is being released as the asset depreciates.

• d. Millennium Point Trust - Grant to support programmes and projects at Thinktank, Birmingham Science Museum.

• e. 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.

• f. Portable Antiquities Scheme - Recording archaeological objects found by members of the public in England and Wales; DCMS grant support, administered by the British Museum.

• g. Rent and Service Charge Grant - Grant support from Birmingham City Council at Thinktank.

• h. 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

• i. 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.

• j. Spitfire Gallery - Opened at Thinktank in March 2015; grants (various funders) and public donations. This fund will be released as the asset is depreciated.

• k. 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.

• l. Tessa Sidey Bequest A bequest in the will of Tessa Sidey (1955-2011) a curator at BMAG (1983-2011) to ajor print acquisi

• m. 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.

• n. 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 supp oals. 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.

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.

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.

Restricted Funds Aston Hall Refurbishment BMOSI Commonwealth Games Millennium Point Trust MiniBrum Portable Antiquities Scheme Reset and Innovation Rewiring Project Spitfire Gallery Staffordshire Hoard Gallery Tessa Sidey Bequest Welcome All WCF-97011 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 2022 Incoming Resources Outgoing Resources Funds Transfer Other Gain (Loss) Balance at 31 March 2023 £ £ £ £ £ 9,668 - (9,933) 265 - - 10,719 - (48,686) - - (37,967) 11,700 52,070 (39,394) - - 24,376 25,225 160,000 (59,934) - - 125,291 1,117,346 33,363 (203,932) - - 946,777 45,726 120,224 (100,780) - - 65,170 - 46,490 (19,598) - - 26,892 15,221 945,999 (932,655) - - 28,565 9,774 - (9,774) - - - 53,313 - (53,313) - - - 85,921 - - - - 85,921 1,227 - (409) - - 818 448,150 - (389,260) - - 58,890 98,478 74,217 (83,897) (13,000) - 75,798
	1,932,468 1,432,363 (1,951,565) (12,735) - 1,400,531 887,381 (2,980) - - 884,401
	2,819,849 1,432,363 (1,954,545) (12,735) - 2,284,932
	928 1,026,107 (246,255) (778,986) - 1,795 4,295,946 5,832,424 (6,964,581) 791,721 - 3,955,510
	4,296,875 6,858,531 (7,210,836) 12,735 - 3,957,305
	(838,000) - (188,000) - 1,026,000 -
	6,278,724 8,290,894 (9,353,381) - 1,026,000 6,242,237

34

BIRMINGHAM MUSEUMS TRUST

Notes to the Financial Statements (continued)

15. Funds analysis Company (continued)

The charity holds restricted funds comprising the following unexpended balances of donations and grants held on trust to be applied for specific purposes.

Restricted Funds Aston Hall Refurbishment Bangladesh 50 BMOSI Commonwealth Games Esmée Fairbairn Collections Fund Islamic Art & Material Culture 2015-18 HS2 Millennium Point Trust MiniBrum Portable Antiquities Scheme Rewiring Project Spitfire Gallery Staffordshire Hoard Gallery Tessa Sidey Bequest Welcome All WCF-97011 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 2021 Incoming Resources Outgoing Resources Funds Transfer Other Gain (Loss) Balance at 31 March 2022 £ £ £ £ £ 28,281 3,500 (22,113) - - 9,667 11,440 - (8,735) (2,705) - - - 150,000 (139,281) - - 10,719 - 28,950 (17,250) - - 11,700 25,701 - - (25,701) - - 7,229 - (7,624) 395 - - (2,461) 379,256 (360,318) (16,477) - - 96,167 98,750 (169,692) - - 25,225 1,379,323 77,292 (339,270) - - 1,117,346 35,807 97,239 (87,321) - - 45,726 (10,135) 1,276,523 (831,168) (420,000) - 15,220 22,193 - (12,419) - - 9,773 159,831 - (106,518) - - 53,312 88,375 - (2,454) - - 85,921 1,636 - (409) - - 1,227 - 590,000 (141,850) - - 448,150 49,949 128,515 (78,921) (1,061) - 98,479
	1,893,335 2,830,024 (2,325,344) (465,549) - 1,932,467 890,881 (3,500) - - 887,381
	2,784,216 2,830,024 (2,328,844) - - 2,819,848
	394,064 1,026,107 (543,618) (875,624) - 928 3,156,846 6,220,965 (6,423,038) 1,341,173 - 4,295,948
	3,550,910 7,247,072 (6,996,656) 465,549 - 4,296,875
	(4,114,000) - (262,000) - 3,538,000 (838,000)
	2,221,126 10,077,097 (9,557,500) - 3,538,000 6,278,724

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 2023 Fixed Assets Net Current Assets Creditors (amounts falling due after more than one year) Provision for liabilities and charges Total as At March 2022	Restricted Pension Unrestricted Total £ £ £ £ 939,504 - 600,649 1,540,153 1,345,428 - 1,983,622 3,329,050 - - (329,632) (329,632) - -
	2,284,932 - 2,254,639 4,539,571
	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) 2,761,545 5,015,587

17. Financial performance of undertakings

Company Statement of Financial Activities

The consolidated statement of financial activities includes the results of the company 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	2023 £ 202 £ 8,290,894 10,077,097 - -
	8,290,894 10,077,097 (9,353,381) (9,557,500)
	(1,062,487) 519,596 1,026,000 3,538,000
	36,487 4,057,596
	6,278,724 2,221,126
	6,242,237 6,278,724
	3,957,305 4,296,875 2,284,932 2,819,849 - (838,000)
	6,242,237 6,278,724

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	2023 £ 2022 £ 1,607,196 797,234 (629,243) (267,754)
	977,953 529,480 (850,554) (474,356)
	127,399 55,124 - -
	127,399 55,124
	1,334,844 897,087 (1,401,012) (1,090,653)
	(66,168) (193,566)

Thinktank Trust

Registered Company Number: 03239119 Registered Address: Chamberlain Square Birmingham B3 3DH

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 (294,737) (1,689,192) (1,983,929)
	(294,737) (272,192) (566,929) - - -
	(294,736) (272,192) (566,929)
	(1,341,762) 272,192 (1,069,570)
	(1,636,499) - (1,636,499)

37

BIRMINGHAM MUSEUMS TRUST

Notes to the Financial Statements (continued)

18. Taxation

The charitable compan 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 grou et payable in respect of VAT was £291k (2022: £70k).

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 2023.

Birmingham Museums Trading Limited

The Company levied a management charge on Birmingham Museums Trading Limited for the year ended 31 March 2023 amounting to £731k (2022: £422k). 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 2023 (2022: £Nil) as disclosed in Note 17 to the consolidated financial statements.

At 31 March 2023, the Company was due an amount of £1,301k from Birmingham Museums Trading Limited (2022: £1,018k).

Thinktank Trust

The Company levied a management charge on Thinktank Trust for the year ended 31 March 2023 amounting to Nil.

At 31 March 2023, the Company was due an amount of £2,305k (2022: £1,820k) from Thinktank Trust.

At 31 March 2023, Birmingham Museums Trading Limited was due an amount of £Nil from Thinktank Trust (2022: £15k)

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 £3.282m (2022: £3.283m) and variable performance payments amounting to £1.924m (2022: £1.573m).

The Company has an outstanding loan with BCC as disclosed in Notes 11 and 12.

BCC funded £946k (2022: £831k) for the rewiring project and provided compensation of £420k (2022: £420k) for loss of earnings.

In addition, Thinktank Trust received a grant from BCC of £1.417m during the year (2022: £1.417m) to assist in the provision of lease payments on Thinktank to Millennium Point Property Ltd.

One of the Trustees is an employed by TATE. During the year there were 8 sales totalling £3,780 with TATE. One of the Trustees is also a Trustee of Greater Birmingham and Solihull LEP. During the year we received a grant of £25,000. All transactions were arm s length.

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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 2023 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 NIL (2022: £838k) is shown in BMT onsolidated 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 year time Males Females	At 31 March 2023 At 31 March 2022 3.95% 4.15% 2.95% 3.15% 4.75% 2.75% 2.95% 2.95%
	At 31 March 2023 At 31 March 2022 20.2 21.2 23.9 23.6 21.5 22.9 25.6 25.4

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 2023 Fair value at 31 March 2022 £000 £000 14,810 14,812 - - 4,791 4,864 1,525 1,547 653 884 - -
	21,779 22,107
	(111) 1,684

The actual return on assets over the year was

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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 Pension asset restriction Administration expenses Contributions by employers Contributions by scheme participants Benefits paid Closing plan assets	2023 £000 2022 £000 (21,779) (22,945) 21,779 22,107
	- (838)
	311 364 - - 25 22
	336 386
	(7,262) 1,232 8,288 2,306
	1,026 3,538
	22,945 24,608 311 364 630 493 48 48 (8,373) (2,184) (396) (352) - 47 (697) (122) 782 43
	15,250 22,945
	22,107 20,494 605 409 (733) 1,275 (6,529) - - - 148 233 48 48 (396) (352)
	15,250 22,107

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 2023 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	2023 2022 £ £ 663,521 647,338 2,824,164 2,755,282 1,327,824 2,060,277
	4,815,509 5,462,847

The company had no leases in respect of land and buildings.

Other Operating Leases

At 31 March 2023 the group and company had future minimum lease payments, in relation to other operating leases, under non-cancellable operating leases as follows:

Within one year Between two to five years More than five years Total	Group Company Group Company 2023 2023 2022 2022 £ £ £ £ 6,570 6,570 12,870 12,870 6,333 6,333 12,904 12,904 - - - -
	12,903 12,903 25,774 25,774

24. Post Balance Sheet Events

The announcement on 5 September 2023 of a Section 114 by Birmingham City Council may have implications for Birmingham Museums Trust going forward. The BCC investment represents approximately 45% of annual revenue funding for the group. The group s current funding agreement with BCC remains in force until 31 March 2026 and the official statements from BCC outline existing contracts will continue to be honoured. However, as BCC continues to look at areas of cost saving in its budget setting process for the 2024/25 year onwards, the extent of the financial impact on the group is unknown at this stage.

25. Provisions for liabilities and charges

There was a provision in the accounts at the end of March 2022 of £525k, whilst HMRC undertook a review of partial exemption methodology for calculating VAT liability. This review has now been concluded and at the end of March 2023 the amount still payable to HMRC for previous years was £308k, having already paid £147k.

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