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2021-03-31-accounts

PITZHANGER MANOR & GALLERY TRUST ANNUAL REPORT and FINANCIAL STATEMENTS 1 April 2020 to 31 March 2021

Charity Registration Number: 1152434. Company Registration Number: 08278049

Trustees’ Report and Consolidated Financial Statements

Contents

Page
Report of the Trustees 1-12
Independent Auditor’s Report to the Members of Pitzhanger Manor & Gallery Trust 13-15
Consolidated Statement of Financial Activities 16
Group and Charity Balance Sheets 17
Consolidated Statement of Cash Flows 18
Notes to the Financial Statements 19-28

Pitzhanger Manor & Gallery Trust

Report of the Trustees for the year ending 31 March 2021

The Trustees are pleased to present their annual report together with the financial statements of the charity for the year ending 31 March 2021.

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).

Introduction: About Pitzhanger Manor & Gallery Trust

Pitzhanger Manor was designed and built in 1800 by one of Britain’s leading architects, Sir John Soane (whose other buildings include the Bank of England and Dulwich Picture Gallery), as his personal country retreat (in the then rural village of Ealing). Pitzhanger is vitally important in the Soane story as a rare example of a building Soane designed, built and lived in himself; Soane used it as a laboratory for his architectural ideas, including his trademark use of caryatids, the canopy domed ceilings, the application of idiosyncratic classical details and his innovative use of light as an architectural tool. The Grade I listed house represents an extraordinary architectu ral statement bursting with his influence, ideas and flourishes: it is an artistic tour de force.

Pitzhanger Manor & Gallery Trust was established in 2012 to work with Ealing Council, the owners of Pitzhanger, to conserve, repair and enhance Pitzhanger Manor & Gallery as a major cultural landmark for West London and beyond: a destination for art, education, and architecture. The project’s aim was to transform the Manor, its adjacent Gallery and the surrounding gardens and Kitchen Garden, and to offer learning and enjoyment for all with an extensive outreach programme. The Trust built a restaurant – known as Soane’s Kitchen - in the old Kitchen Garden, and is constructing a Volunteer and Community Space in the courtyard of the Lodge. On completion of the three-year capital project in 2018, the Trust took over the running of the site under a 25-year lease and a management agreement. The Trust’s executive team are overseen by an experienced Board of Trustees, and the Trust works closely with Ealing Council, the architects, consultants, and contractors, to deliver the project and manage the site.

Objectives and Activities

Our Vision

Pitzhanger will be a forum for creativity, debate and participation, reanimating Sir John Soane's vision, to inspire and enrich our communities with art, architecture, and design.

Mission

Building on the dual foundation of Soane’s 1800 Manor and parkland and of the contemporary Gallery, Pitzhanger will unite the past and the present and inspire the future.

Our mission is:

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Delivering Public Benefit

The Trustees confirm that they have fulfilled the duty in Section 17 of the Charities Act 2011 to have due regard to the Charity Commission general guidance on public benefit.

The Trust’s overarching aim is, through restoring and revealing this important historic building and by upgrading the art gallery, to promote appreciation of national heritage and of art, and provide both learning opportunities and recreation for our diverse communities. Pitzhanger Manor & Gallery Trust also has the general aim of contributing to the quality of life of the people of the London Borough of Ealing by expanding their horizons in offering exciting, challenging, and accessible education programmes, events, and exhibitions.

Achievements and Performance

“(Pitzhanger is) a pure joy to explore, a magnificent temple to the tastes of the early 19th century.” National Geographic Traveller

2020-21 saw the full impact of the Coronavirus Pandemic on activities at Pitzhanger. In line with government guidelines, the Manor was closed to visitors in March 2020 and all but a skeleton staff were placed on furlough. Following six long months of closure for the first lock down, Pitzhanger re-opened to the public on 10 September. On re-opening we introduced new concentrated opening hours: fewer days but longer hours (Thurs-Sun, 11am7pm) and, with social distancing, visitor capacity was greatly reduced. Pitzhanger was able to remain open for a mere eight weeks in 2020 before we were required to close again for the second lockdown with effect from the start of November. Pitzhanger welcomed visitors into the Manor & Gallery once again during Tier 2 restriction s, from 3 December to 13 December, before being obliged to close yet again for the remainder of the financial year whilst the country remained in lockdown.

Much has been written about this difficult Covid year, but nevertheless there are a significant number of achievements to be mentioned, thanks both to the support of NLHF emergency funding and other general individual donations which allowed us to cover core operating costs for a number of months, and to the amazing way in which the team at Pitzhanger and its incredible group of volunteers and supporters rallied round to make the most of what were exceptionally challenging circumstances.

On reopening in September 2020, we were overjoyed by the return of Hogarth’s A Rake’s Progress to Pitzhanger for the first time in 200 years. Juxtaposed with inspiring and challenging work by contemporary artists, this invited us to reassess Hogarth’s take on contemporary London. The exhibition ran to December 2020, and, despite restrictions on visitor numbers, was enjoyed by almost 3,000 visitors.

“A rare chance to see England’s most famous set of satirical paintings in close and rubbernecking detail.” Daily Telegraph

With the catastrophic impact of closure on our revenue streams, we were forced to look to other sources of income and to adapt our usual operations. In August 2020 we launched Artists for Pitzhanger, our first ever fundraising sale of limited edition works of art, and raffle of an Anish Kapoor print, raising between them over £45,000 to support us through the crisis. We also shifted to online events, from the inimitable Ian Hislop discussing Hogarth’s enduring influence on satire today, to a Christmas wreath-workshop broadcast from the Manor, and the first of our virtual tours for primary school children.

In September 2020, we ran two weekends of an extremely popular pop-up restaurant in collaboration with The Dodo Micropub at Soane’s Kitchen and in December 2020 we were delighted to reopen Soane’s Kitchen in collaboration with the Pepper Collective. Pepper were up and running to great reviews for a mere two weeks before they were forced to close down again in line with government guidelines, but have since been able to reopen, in April 2021. Also, in September 2020 we appointed Parklife Trading Ltd as operators of Pitzhanger Pantry, who have been sustaining spirits with fabulous coffee in Walpole Park, in and out of lockdown, ever since.

We necessarily had to delay some of our private hire events planned for 2020-21, particularly weddings, although, when restrictions allowed, Pitzhanger provided a stunning location for several intimate ceremonies, some of which made use of our beautiful outdoor colonnade and gardens. A resounding success of the lock-down period was

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the increased number of location hires. We hosted a number of photoshoots for well-known fashion brands and in Spring 2021 held a number of days of filming.

Our retail team launched our Online Shop, which sold close to £10,000 worth of honey and other favourite Pitzhanger products in the run-up to Christmas.

Throughout the year, we were supported by the extraordinary efforts of our wonderful volunteers who tended our gardens, supported our visitors back to the Manor, sewed facemasks and harvested our Pitzhanger honey.

Further details of specific aspects of the Trust’s activities are outlined below.

Fundraising Report

Fundraising is undertaken by a small in-house development team. The Trust is registered with the Fundraising Regulator whose Code of Fundraising Practice and Fundraising Promise set a standard for fundraising activity in the UK.

Fundraising strategy focuses on securing support via statutory funders, charitable trusts and foundations and individuals, selecting the most appropriate source of funding for each project for which support is being sought. In the year to 31 March 2021 the main fundraising focus was securing emergency funding to support the losses incurred by temporary closure and completing the fundraising for the project to build a new Volunteer and Community space on Pitzhanger's grounds.

Pitzhanger takes a considered approach to fundraising ensuring that we comply with regulations and guidance related to data protection and the protection of vulnerable people, that communications are not excessive or intrusive and that the individuals we contact do not feel under any undue pressure to donate.

When fundraising is carried out on behalf of Pitzhanger it is with a small group of trusted supporters who promote Pitzhanger through their personal and professional connections. Pitzhanger works closely with these partners to ensure their approach consistently meets the high standards of the museum's own fundraising.

The Trust has received no complaints about its fundraising activities (2020: nil).

Key successes and developments in this period were:

We launched a new individual scheme, the Soane Circle, in March 2020 and in 2020-21 the scheme secured eight donors, with donations and pledges for future periods totalling over £40,000.

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donations from The Michael Bishop Foundation and Jeremy and Rachel Darroch. The building is on track to open in December 2021.

Curation

Hogarth: London Voices, London Lives

From A Rake’s Progress to the City Today

10 September - 31 December 2020 (Postponed from March 2020 due to the coronavirus)

William Hogarth’s series of paintings A Rake’s Progress , 1734, was bought at Christie’s by Sir John and Lady Soane in 1802 to hang in the Small Drawing Room at Pitzhanger Manor. The paintings highlight the social conditions of London in the 1730s through the decline and fall of Tom Rakewell, a young man who inherits a fortune and embarks on a decadent lifestyle before succumbing to financial ruin. Hogarth’s paintings were often created in series, and he constructed them like plays or satirical cartoons, each scene telling a story with a moral message. 286 years later, seven contemporary artists reflected on the city’s communal spaces and the people that gather there. The artists view London, not from the experience of a single character, as in Hogarth’s paintings, but from being in the crowd, providing a snapshot of the people and places that give life to the capital today.

The exhibition included two new commissions: a poster project by Ruth Ewan, and a three-screen video projection by the playwright and film director debbie tucker green - her first work for a gallery setting.

When Soane sold Pitzhanger in 1810 he transported all his collection, including A Rake’s Progress, to his central London home in Lincoln’s Inn Fields, now Sir John Soane’s Museum. A Rake’s Progress is a significant loan and collaboration with The Sir John Soane Museum who generously allowed A Rake’s Progress to return to Pitzhanger for the first time in over 200 years. Through the contemporary work, ideas and presentation, the exhibition aimed to engage with new, diverse audiences and particularly young people.

Artists: William Hogarth with Faisal Abdu’Allah, Ruth Ewan, James Fritz, Long Live Southbank, Oliver Payne & Nick Relph, John Riddy, debbie tucker green.

The exhibition was supported by Arts Council England.

Education and Outreach

In 2020-21, the education programme intended to focus on key audiences (Schools, Families, Early Years Foundation Stage, Children, Young People, SEND (Access and Communities), Adults and Volunteers). COVID disrupted the education programme for this and sadly many scheduled workshops and activities had to be cancelled following closure, amounting to a loss of 1,143 first-hand experiences. Cancelled events included a trial of an Imagination Café for dementia sufferers, Architecture in Schools programmes, school groups, life drawing, Welcome Create studios, April holiday workshops, children’s camp, and Little Builders Early Years sessions.

Working within the limitations of national restrictions and staff furlough and with a focus on adapting the programme, through the development of online content and virtual workshops, we were able to deliver over 1650 engagements.

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Specifically:

Financial Review

In the year to 31 March 2021, the Trust had a net surplus of £113,895 (2020: deficit of £144,516). This relates to a surplus on unrestricted activities of £386,053 and a deficit on restricted activities (primarily in respect of the capital project) of £272,158. The movement from the comparative year, an increase of £258,411 mainly reflects expenditure savings during the periods of lock-down when all expenditure except core operating costs was cancelled or deferred.

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Main Funding Sources

The Trust’s operating costs have been supported by a management fee from Ealing Council (£427,000), commercial income from visitor admissions (£15,000) and other trading income (£166,000) and donations from Trusts and Foundations and individuals (£444,000). The Trust also received restricted donations of £212,000 from a range of Trusts and Foundations and individuals mainly in respect of the Volunteer and Community space project. At the end of the year, the Trust held reserves of £1.88 million, of which £862,000 were restricted, £530,000 were unrestricted and £488,000 were unrestricted but designated. The restricted reserves largely relate to the Trust’s pledged contribution to the Restoration Project.

Investment Policy

As most of the charity’s funds are to be spent in the short term, there are no funds for long -term investment. Our funds are therefore held in a current account and a short-term deposit account.

Reserves Policy

Restricted reserves are set-aside in the short-term deposit account. Otherwise, the Trust’s reserves are unrestricted and the use of the funds representing them is at the discretion of the Trustees acting within the terms of the charity’s governing document. The Trustees may designate all or part of the unrestricted reserves for specific purposes. The Trustees review the level of reserves as part of the regular planning process.

Prior to the pandemic the Trust adopted a policy of holding three months’ core operating costs in reserve which was equivalent to £250,000. During the recent pandemic the Trustees took a cautious approach to the maintenance of reserves until the length or severity of the pandemic and its implications for the business and closure of the site could be assessed with a reasonable level of expectation that a more normal situation was returning with some reliability. Accordingly, for the duration of lockdown, a higher level of reserves was retained. However, the expectation is that we will spend down the reserves in the new year and return closer to the reserves situation prior to COVID. The reserves policy is reviewed as part of the budget process annually and will be reviewed by the Board in March 2022.

Going Concern

The Charitable Group and Trust’s working capital is provided by a combination of its charitable, fund raising and trading activities. The outbreak of Covid -19 has caused significant disruption to the Charitable Group and Trust’s activities, resulting in a significant loss of commercial income. In mitigation, the Trust has received emergency funding from a number of sources and taken steps to reduce its cost base whilst its activities are curtailed.

The Board has assessed the prospects of the Charitable Group and Trust over the 12 months from the date of approval of the Annual Report and Financial Statements taking into account its expectations for future oper ating activities, fund raising and the risks that the Trust faces (including Covid -19). In addition, the Trust has performed a sensitivity analysis on its forecasts to evaluate a severe but plausible downside scenario on the business of the impact of Covid-19 and other risks.

Having completed these assessments, the Board has a reasonable expectation that the Charitable Group and Trust has adequate resources to continue in operational existence for the foreseeable future, being a minimum of 12 months from the date of approval of the financial statements, and thus continues to adopt the going concern basis of accounting in preparing the financial statements.

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Pitzhanger Manor & Gallery Trust

Structure, Governance and Management

Trustee Roles

The Trustees provide wide ranging specialist support in respect of the operational activities of the Manor & Gallery, as well as well as helping with fundraising. The Trustees are responsible for the overall management and control of the Trust including the implementation of policies and meeting their legal, financial and fiduciary duties under charity law.

Governing Document

The organisation is a charitable company limited by guarantee, incorporated on 1 November 2012, and registered as a charity on 14 June 2013. The company was established under a Memorandum of Association that established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members, who are the Trustees, are required to contribute an amount not exceeding £1.

Recruitment and Appointment of the Trustees

The directors of the company are also charity Trustees for the purposes of charity law and under the company’s articles are known as the Trustees. Under the requirements of the Memorandum and Articles of Association, the Trustees are elected to serve for a period of three years after which they must be re-elected at the next Annual General Meeting.

All Trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in Note 9 to the financial statements.

During the year two Trustees resigned and six new Trustees were appointed. When Trustees are recruited the Board identify the key skills that are required following which the Trust advertises publicly for new Trustees. Applications are reviewed by the Nominations Committee before inviting the potential candidates for interview. The selected candidates are then put forward to the Board for approval.

Trustee Induction and Training

New Trustees receive an information pack that includes the current business plan, minutes of recent Trustee Board meetings and details of organisational structure. In addition, new Trustees undertake an induction programme comprising meetings with the Senior Management Team and Sub-Committee members if appropriate.

Organisational Structure

The charity has a Trustee body that meets regularly throughout the year and is responsible for the strategic direction and policy of the charity. The Trust Board and its various sub-committees met regularly during this period, with occasional ad hoc meetings as and when required. Sub-committee members comprise a mixture of Trustees, members of the Executive and industry professionals.

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Senior Employees

The Trustees delegate day-to-day management of the charity to its executive Director, Clare Gough.

Remuneration Policy

Pay and remuneration of the charities’ employees is bench-marked against industry norms and approved by the Remuneration Committee, which comprises the Chair, Deputy Chair, Secretary and Director.

Volunteers

In addition to the volunteer Trustees, the Trust makes extensive use of volunteers in its operational activities such as invigilating and guiding in the manor and gallery, assisting in educational activities, beekeeping and honey production and grounds maintenance. In the year to March 2021 volunteer sessions, including Trustees, exceeded 3,900.

Trading Subsidiary

Pitzhanger Trading Limited, a wholly owned subsidiary of PMGT, was set up in November 2018 as a vehicle for the various planned commercial activities such as venue hire and catering which forms a crucial part of the venture’s financial sustainability.

Principal Risks and Uncertainties

The principal risks specific to Pitzhanger Manor & Gallery and its subsidiary are:

The Trustees, led by the Chair, examine the major strategic, business, and operational risks that the Trust faces, and the Trustees ensure that appropriate systems are in place or are planned to mitigate these risks. Specifically:

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Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such confirmation.

Approved by the Trustees on and signed on their behalf by: 15 Dec 2021

Sherard Cowper-Coles

Sir Sherard Cowper-Coles, Chair

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Reference and Administrative Details

Charity Name

Pitzhanger Manor & Gallery Trust

Charity Registration Number

1152434

Company Registration Number

08278049

Registered office and operational address

Pitzhanger Manor & Gallery Trust Mattock Lane London W5 5EQ

Auditor

HW Fisher LLP, 11-15 Acre House, William Road, London NW1 3ER

Bankers

HSBC, 46 The Broadway, London W5 5JR

Legal advisors

Trowers and Hamlins, 3 Bunhill Row, London EC1Y 8YZ

Trustees during the year and up to the date of signature of the financial statements

Sir Sherard Cowper-Coles Georgina Nayler John Newbegin Julian Bell (resigned 20 July 2021) Harbinder Birdi Vivienne Cane-Honeysett Rosita Caspersz (appointed 1 Jan 2021) Sonja Garsvo (resigned 1 Dec 2020) Lorraine Heggessey (appointed 1 Jan 2021) Kristian Kaminski Al’Adin Maherali (resigned 21 July 2020) Rachel Mackay (appointed 1 Jan 2021) David Millican Gareth Shaw (appointed 20 July 2021) David Snell (appointed 15 Sep 2020) Caroline Worthington (appointed 1 Jan 2021) Rosemary Yallop (appointed 1 Jan 2021)

Chair Deputy Chair Secretary

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Pitzhanger Manor & Gallery Trust

Trust Supporters

The Trustees would like to thank the following supporters for their generosity to the Pitzhanger Manor & Gallery Trust in 2020-21.

National Lottery Heritage Fund

London Borough of Ealing

Arts Council England

Historic England

Art Fund Bernard Sunley Foundation The Deborah Loeb Brice Donor Advised Fund at CAF The John and Ruth Howard Charitable Trust The Foyle Foundation Garfield Weston Foundation The McGrath Charitable Trust The Michael Bishop Foundation The Pilgrim Trust

Individual supporters

Jeremy and Rachel Darroch Jane and Bruce Duckworth Lorraine Heggessey and Ron de Jong Nick and Tracy Grace Iain and Andrea Mackay Tim and Juliet Medforth Tony and Sarah Pidgley Basil and Maria Postan Rosemary Yallop

In kind and loan supporters

Michael Phillipson Peter Verity

The Trust also received very generous support from a wide number of individuals during the period, whose names are not reported here, but to whom the Trust is most grateful.

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Statement of Trustees’ Responsibilities for the year ended 31 March 2021

The Trustees, who are also the directors of Pitzhanger Manor & Gallery Trust for the purpose of company law, are responsible for preparing the Trustees' Report and the financial stat ements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

A combination of Company and Charity 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 charity and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial s tatements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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Independent Auditor’s Report to the Members of Pitzhanger Manor & Gallery Trust

Opinion

We have audited the financial statements of Pitzhanger Manor & Gallery Trust (the ‘parent charity’) and its subsidiary (the 'group') for the year ended 31 March 2021 which comprise the consolidated statement of financial activities, the group and charity balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charity and their environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the Trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or parent charity or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

As part of our planning process;

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Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the trustees.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Carol Rudge (Senior Statutory Auditor) for and on behalf of HW Fisher LLP

Chartered Accountants Statutory Auditor Acre House 11-15 William Road London NW1 3ER United Kingdom

Signed Carol Rudge on 15 Dec 2021

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Pitzhanger Manor & Gallery Trust

Consolidated Statement of Financial Activities (including income and expenditure account) for year ended 31 March 2021

Notes
Income:
Donations and grants
2
Charitable activities
3
Other trading
activities
4
Investments
Total income
Expenditure:
Raising funds
5
Charitable activities
6
Total expenditure
Net income/(expenditure)
Transfer to Operating
Reserve
16
Net movement in funds
Reconciliation of funds
Balances brought forward
- as previously stated
Prior year adjustment
17
Balances brought
forward - restated
Balances carried
forward at 31 March
2021
16
Unrestricted
Funds
Restricted
Funds
Total Funds
Unrestricted
Funds
as
restated
Restricted
Funds
as
restated
Total Funds
as restated
2021
2020
£
£
£
£
£
£
524,575
211,750
736,325
184,782
324,700
509,482
445,829
16,398
462,227
638,826
45,353
684,179
166,178
-
166,178
308,320
-
308,320
370
-
370
1,985
-
1,985
1,136,952
228,148
1,365,100
1,133,913
370,053
1,503,966
231,065
1,197
232,262
191,408
46,164
237,572
519,834
499,109
1,018,943
869,379
541,531
1,410,910
750,899
500,306
1,251,205
1,060,787
587,695
1,648,482
386,053
(272,158)
113,895
73,126
(217,642)
(144,516)
12,359
(12,359)
-
-
-
-
398,412
(284,517)
113,895
73,126
(217,642)
(144,516)
556,984
1,208,808
1,765,792
483,858 1,426,450
1,910,308
62,500
(62,500)
-
62,500
(62,500)
-
619,484
1,146,308
1,765,792
546,358
1,363,950
1,910,308
1,017,896
861,791
1,879,687
619,484
1,146,308
1,765,792

All income and expenditure relate to continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

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Group and Charity Balance Sheets as at 31 March 2021

Company Registration Number: 08278049

Notes
Fixed assets
Tangible fixed assets
11
Investments
12
Current assets
Stocks
13
Debtors
14
Cash at bank
Creditors: amounts falling due within
one year
15
Net current assets
Net assets
Funds
Unrestricted funds
Restricted funds
16
Total funds
Group
2021
2020
as restated
£
£
18,452
-
-
-
18,452
-
25,713
23,237
317,689
240,836
1,665,046
1,673,635
2,008,448
1,937,708
(147,213)
(171,916)
1,861,235
1,765,792
1,879,687
1,765,792
1,017,896
619,484
861,791
1,146,308
1,879,687
1,765,792
Charity
2021
2020
as restated
£
£
18,452
-
1
1
18,453
1
-
-
404,085
309,768
1,481,705
1,435,806
1,885,790
1,745,574
(112,301)
(158,285)
1,773,489
1,587,289
1,791,942
1,587,290
943,345
440,982
848,597
1,146,308
1,791,942
1,587,290

The charitable company’s net surplus for the year was £204,652 (2020: deficit £312,381).

Approved by the Trustees on and signed on their behalf by 15 Dec 2021

David Snell, Trustee

[17]

Pitzhanger Manor & Gallery Trust

Consolidated statement of Cash Flows for the year ended 31 March 2021

nsolidated statement of Cash Flows
r the year ended 31 March 2021
Notes
Cash generated/(absorbed) by operating
activities
18
Cash flows from investing activities
Interest income
Purchase of fixed assets
Cash (used up in)/provided by investing activities
Decrease in cash and cash equivalents in year
Cash and cash equivalents at beginning of year
Total cash and cash equivalents at end of year
Group
Group
2021
2020
£
£
10,067
(85,546)

370
1,985
(19,026)
-
(18,656)
1,985
(8,589)
(83,561)
1,673,635
1,757,196
1,665,046
1,673,635

[18]

Pitzhanger Manor & Gallery Trust

Notes to the Financial Statements for the year ended 31 March 2021

Accounting Policies

The main accounting policies are summarised below. The accounting policies have been applied consistently throughout the period.

(a) Company information

Pitzhanger Manor & Gallery Trust is a charitable company limited by guarantee incorporated in England and Wales. The registered office is Mattock Lane, Ealing, London W5 5EQ.

(b) Accounting convention

The financial statements have been prepared in accordance with the Companies Act 2006, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The group financial statements reflect the results and combined financial position of Pitzhanger Manor & Gallery Trust and Pitzhanger Trading Limited. As permitted by s408 of the Companies Act 2006, the parent charitable company has not presented its own income and expenditure account and related notes.

The Group and Charity has restated its opening reserves in respect of the allocation between restricted and unrestricted funds and to adjust for the netting off of cost of sales in the trading company within the group accounts; details of the prior year adjustment are set out in note 17.

(c) Going Concern

As set out in the Financial Review, the Board has assessed the prospects of the Charitable Group and Trust over the 12 months from the date of approval of the Annual Report and Financial Statements taking into account its expectations for future operating activities, fund raising and the risks that the Trust faces (including Covid -19). In addition, the Trust has performed a sensitivity analysis on its forecasts to evaluate a severe but plausible downside scenario on the business of the impact of Covid-19 and other risks.

Having completed these assessments, the Board has a reasonable expectation that the Charitable Group and Trust has adequate resources to continue in operational existence for the foreseeable future, being a minimum of 12 months from the date of approval of the Financial Statemen ts and thus continues to adopt the going concern basis of accounting in preparing the financial statements.

[19]

Pitzhanger Manor & Gallery Trust

(d) Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity. The Trustees may designate all or part of the unrestricted reserves for specific purposes.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.

(e) Income recognition

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

Income from grants and donations is recognised when there is evidence of entitlement, receipt is probable and the amount can be measured reliably. Contractual and trading income is recognised as incoming resources to the extent that the associated goods or services have been provided. Where income is received in advance and the charity does not have entitlement to these resources until the goods or services have been provided, the income is deferred. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity. This is normally upon notification of the interest paid or payable by the bank.

(f) Resources expended

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.

Raising funds comprise costs of market research, communication and raising funds. Charitable expenditure comprises the direct costs incurred by the charity in the delivery of its activities such as outreach, along with support and governance costs. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the costs of the independent auditor and costs linked to the management of the charity.

(g) Donations of volunteer time

In accordance with the Charities SORP volunteer time is not recognised.

(h) Donations of goods for resale

The Trust is in receipt of regular donations of small items for resale in the retail shop. In accordance with the Charities SORP these are recognised as income when sold. The proceeds of sale are categorised as Retail Sales in Income from other trading activities.

(i) Tangible fixed assets and depreciation

Tangible fixed assets costing more than £500 are capitalised and depreciated over their estimated useful lives.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are:

[20]

Pitzhanger Manor & Gallery Trust

(j) Leasehold improvements and amortization

Leasehold Improvements costing more than £500 are capitalised and amortized over their estimated useful life.

Amortization commences from the date the Leasehold Improvements are brought into use to the end of the lease on 15 March 2044.

(k) Financial Instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

(l) Bank

Cash at bank includes balances in the current account and short -term deposit account that can be accessed immediately.

(m) Taxation

As a charity, Pitzhanger Manor & Gallery Trust is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or S.256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

(n) Investments in Subsidiaries

Investment in Pitzhanger Trading Limited, a wholly owned trading subsidiary of Pitzhanger Man or & Gallery Trust, is at cost.

(m) Stocks

Stock relates to items held in the shop at year end and are recorded at the lower of cost and net realisable value.

(n) Critical accounting estimates and judgements

The Trustees are satisfied that there are no material estimates or judgements in the financial statements.

[21]

Pitzhanger Manor & Gallery Trust

2 Income from donations and grants

Trusts and foundations
Individual and corporate
donations
Government Furlough Grant
Total
Unrestricted
Restricted
2021
Total
Unrestricted
Restricted
2020
Total
£
£
£
£
£
£
254,930
67,500
322,430
-
319,700
319,700
189,338
144,250
333,588
184,782
5,000
189,782
80,307
-
80,307
-
-
-
524,575
211,750
736,325
184,782
324,700
509,482

3 Charitable activities

Charitable activities
Ealing Council - Management
fee
Ealing Council - HLF
Outreach
House admissions
Other
2021
2020
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
£
£
£
£
£
£
427,000
-
427,000
427,000
-
427,000
-
16,398
16,398
-
45,353
45,353
14,950
-
14,950
205,299
-
205,299
3,879
-
3,879
6,527
-
6,527
445,829
16,398
462,227
638,826
45,353
684,179

The Trust has only one charitable activity: the Operation of Pitzhanger Manor House and Gallery.

4 Other trading activities

Other trading activities
Catering commissions
Retail sales
Venue hire
Fundraising events
2021
Total
2020
Total
as restated
Unrestricted
Restricted
Unrestricted
as restated
Restricted
as restated
£
£
£
£
£
£
21,648
-
21,648
114,248
-
114,248
74,439
-
74,439
85,625
-
85,625
61,091
-
61,091
104,277
-
104,277
9,000
-
9,000
4,170
-
4,170
166,178
-
166,178
308,320
-
308,320

[22]

Pitzhanger Manor & Gallery Trust

5 Raising funds

Raising funds
Staff costs
Development and fundraising
Marketing
Trading expenditure
2021
2020
Unrestricted
Restricted
Total
Unrestricted
as restated
Restricted
as restated
Total
as restated
£
£
£
£
£
£
108,377
-
108,377
69,700
38,064
107,764
3,513
-
3,513
23,300
3,100
26,400
5,284
1,197
6,481
32,717
5,000
37,717
113,891
-
113,891
65,691
-
65,691
231,065
1,197
232,262
191,408
46,164
237,572

6 Charitable activities

Charitable activities
Donation to the capital
project
Estate management
Exhibitions and curatorial costs
Education
Support costs
7
Governance
8
2021
2020
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
£
£
£
£
£
£
-
441,898
441,898
-
470,457
470,457
129,016
14,741
143,757
106,390
-
106,390
10,577
24,163
34,740
334,349
22,500
356,849
32,861
17,398
50,259
29,779
48,574
78,353
329,788
909
330,697
388,016
-
388,016
17,592
-
17,592
10,845
-
10,845
519,834
499,109
1,018,943
869,379
541,531 1,410,910

The Trust has only one charitable activity: the Operation of Pitzhanger Manor House and Gallery.

The donation to the capital project represents funds raised by PMGT in respect of the restoration project and paid for by the London Borough of Ealing.

7 Support costs

Support costs
Staff costs
Office costs
Governance costs
Audit
Insurance, legal and
professional fees
2021
2020
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
£
£
£
£
£
£
291,987
909
292,896
318,824
-
318,824
37,801
-
37,801
69,192
-
69,192
329,788
909
330,697
388,016
-
388,016
2021
2020
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
£
£
£
£
£
£
10,085
-
10,085
8,953
-
8,953
7,507
-
7,507
1,892
-
1,892
17,592
-
17,592
10,845
-
10,845

8 Governance costs

[23]

Pitzhanger Manor & Gallery Trust

9 Trustee Remuneration and Related Party Transactions

No Trustee (or any person connected with them) received any remuneration during the year. Reimbursed Trustee expenses totalled £340 (2020: £Nil). £652 (2020: £277) was expended in respect of professional indemnity insurance for the Trustees. The Trustees (and people connected with them) contributed £2,700 (2020: £4,752) during the year by way of individual and corporate donations.

10 Staff costs and remuneration of key management personnel

The average number of full-time employees during the year was 12 (2020 - 13) with all employees contributing to the governance of the charity or working towards achievement of charitable activities or other trading activities. The Trustees delegate key management responsibilities to the executive director supported by the Senior Management Team. The total employee benefits, including employer pension contributions, of the Senior Management Team was £224,652 (2020: £238,230)

Employment costs
Wages and salaries
Social security costs
Pension costs
2021
2020
£
£
382,826
401,379
29,322
35,685
17,566
17,405
429,714
454,469

Most employment costs are allocated to unrestricted funds, though some costs were funded from restricted funds. These include a proportion of the costs of the Education and Outreach team funded by the National Lottery Heritage Fund, a proportion of the Development team funded from the capital project and some costs relating to exhibitions funded by Historic England and the Arts Council.

The number of employees whose annual remuneration was £60,000 or more was:

2021 2020
£60,000 - £69,999 1 1

Pension contributions in respect of higher paid employees were £3,178 (2020: £3,266)

[24]

Pitzhanger Manor & Gallery Trust

11 Tangible Fixed Assets

Cost
As at 1 April 2020
Additions
As at 31 March 2021
Depreciation/Amortization
As at 1 April 2020
Charge for the year
As at 31 March 2021
Net book value
As at 31 March 2021
As at 1 April 2020
Group and Charity
Leasehold
Improvements
Fixtures &
Fittings
Total
£
£
£
-
-
-
12,359
6,667
19,026
12,359
6,667
19,026
-
-
-
-
574
574
-
574
574
12,359
6,093
18,452
-
-
-

All of the above assets are used for charitable purposes.

12 Fixed asset investments

Group Charity
2021 2020 2021 2020
£ £ £ £
Investments in subsidiaries - - 1 1
Details of the charity’s subsidiary at 31 March 2021 are as follows:
Name of undertaking and country of Nature of Business Class of % Held
incorporation or residency Shareholding direct
Pitzhanger Trading Limited, England and Catering, retail, and Ordinary 100%
Wales (Company no:11699729) venue hire

Pitzhanger Trading Limited, England and Wales (Company no:11699729) Registered office: Walpole Park, Mattock Lane, London W5 5EQ

The net assets of Pitzhanger Trading Company (PTL) at the end of this period are £87,745 (2020: 178,503). In the year to 31 March 2021 PTL had income of £157,178 (2020: £304,012), expenditure of £67,937 (2020: 125,508) and net profit of £89,241 (2020 £178,502).

13 Stocks

Goods for resale

Group Charity
2021 2020 2021 2020
£ £ £ £
25,713 23,237 - -

[25]

Pitzhanger Manor & Gallery Trust

14 Debtors

Amounts falling due within one year:
Trade debtors
Amount due from group undertaking
Other debtors
Prepayments and accrued income
Amounts falling due after one year:
Loan to group undertaking
Total Debtors
15
Creditors: amounts falling due within one
year
Trade creditors
Other creditors
Accruals and deferred income
Group
2021
2020
£
£
12,380
51,747
-
-
232,792
178,732
72,517
10,357
317,689
240,836
-
-
317,689
240,836
Group
2021
2020
£
£
72,027
44,600
-
780
75,186
126,536
147,213
171,916
Charity
2021
2020
£
£
423
22,004
65,941
65,503
232,032
178,732
72,517
10,357
370,913
276,596
33,172
33,172
404,085
309,768
Charity
2021
2020
£
£
65,129
44,541
-
-
47,172
113,744
112,301
158,285

Total deferred income at the year-end amounted to £12,326 (2020 £6,364). This amount represents income relating to advance membership sales and commercial events that will take place in the next financial year.

[26]

Pitzhanger Manor & Gallery Trust

16 Restricted Income Funds

16Restricted Income Funds
Restricted funds (Restated)
The Restoration project
Lodge renovation project
London Borough of Ealing (Outreach)
Arts Council England
Historic England
Western Loan Foundation
General education fund
Alan Baxter Fund
Lawrence Geller Fund
Walpole Friends
Total restricted funds
At 1 April
2020
as restated
Incoming
Resources
Outgoing
Resources
Transfers
At 31
March
2021
£
£
£
£
£
1,054,365
-
(456,639)
-
597,726
50,000
143,750
-
(12,359)
181,391
-
16,398
(16,398)
-
-
-
20,000
(20,000)
-
-
-
42,500
(1,269)
-
41,231
-
5,000
(5,000)
-
-
-
500
-
-
500
2,629
-
-
-
2,629
4,000
-
(1,000)
-
3,000
35,314
-
-
-
35,314
-
1,146,308
228,148
(500,306)
(12,359)
861,791

The Restoration Project relates to funds raised in respect of the restoration and redevelopment of Pitzhanger Manor and Gallery and will be paid over to the London Borough of Ealing on full completion of the project. The Lodge Renovation fund relates to a discrete capital project to construct a new Volunteer and Community Space next to the Trust’s office in the Lodge building. Historic England relates to our Soane Restored exhibition and related education and outreach activities. The Alan Baxter Fund supports our Architecture in Schools programme. The Lawrence Geller Fund supports our Dementia Café programme.

During the year £12,359 of expenditure was incurred on the Lodge Extension Project and in accordance with accounting policy (j) this has been capitalised to be amortized over the remaining life of the operating lease. A corresponding transfer has been made from the Lodge Renovation restricted reserves to the operating reserve.

Restricted Funds (comparative year) (as restated)

Restricted Funds (comparative year) (as restated)
Restricted funds
The Restoration project
Lodge renovation project
London Borough of Ealing (Outreach)
Heritage Lottery Fund
Arts Council England
Trusthouse Charitable Foundation
Alan Baxter Fund
Lawrence Geller Fund
Walpole Friends
Total restricted funds
At 1 April
2019
as restated
Incoming
Resources
Outgoing
Resources
At 31
March
2020
as restated
£
£
£
£
1,263,786
302,200
(511,621)
1,054,365
50,000
-
-
50,000
-
45,353
(45,353)
-
5,000
-
(5,000)
-
-
20,000
(20,000)
-
-
2,500
(2,500)
-
4,850
-
(2,221)
2,629
5,000
-
(1,000)
4,000
35,314
-
-
35,314
1,363,950
370,053
(587,695)
1,146,308

[27]

Pitzhanger Manor & Gallery Trust

17 Prior Year Adjustments

In the year to 31 March 2019 a donation was received from an individual donor that was not subject to donor restrictions. This was designated by trustees as being for a specific purpose and at the time accounted for in restricted reserves. As the amount received was not subject to restrictions on expenditure imposed by the donor the amount has been reclassified into unrestricted reserves. The sum reclassified is £62,500.

In addition, income from other trading activities and expenditure on raising funds have been adjusted by £58,897 in respect of cost of sales in the trading subsidiary which was previously netted off income in the consolidated accounts.

The adjustments have had no impact on total funds.

18 Reconciliation of net movement in funds to net cash flow from operating activities

Net movement in funds
Add: Depreciation
Deduct: interest income shown in investing activities
(Increase) / decrease in stock
(Increase)/decrease in debtors
(Decrease) in creditors
Net cash generated/(absorbed) by operating
activities
Group
Group
2021
2020
£
£
113,895
(144,516)
574
-
(370)
(1,985)
(2,476)
6,814
(76,853)
183,653
(24,703)
(129,512)
10,067
(85,546)

19 Analysis of net assets between funds

Fund balances at 31 March
2021 are represented by:
Fixed assets
Net current assets
2021
Unrestricted
Restricted
Total
£
£
£
18,452
-
18,452
999,444
861,791
1,861,235
1,017,896
861,791
1,879,687
2020
Unrestricted
as restated
Restricted
as restated
Total
£
£
£
-
-
-
619,484
1,146,308
1,765,792
619,484
1,146,308
1,765,792

20 Analysis of changes in net funds / (debt)

The group had no debt in the year.

21 Operating Lease

The Trust operates Pitzhanger Manor House and Gallery under a 25 year lease expiring on 25 March 2044. Lease payments due under the lease are a peppercorn.

[28]