Registered Charity Number 1171068
THE FUSILIER MUSEUM LONDON
REPORT AND ACCOUNTS 31 DECEMBER 2020
THE FUSILIER MUSEUM LONDON
TRUSTEES’ ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
Principal address
City of London Headquarters The Royal Regiment of Fusiliers H M Tower of London London EC3N 4AB
Trustees
The Trustees who served during the year were:Brigadier (Retd) R M Wilde CBE Colonel B M Gorski MBE Colonel (Retd) J W Denny MBE Colonel (Retd) N P Easton QVRM TD Lieutenant Colonel K Kiddie Major (Retd) C P Bowes-Crick Major (Retd) M McCarthy MBE Captain (Retd) D R Clarke Captain (Retd) A C Warren MrJ Rubinstein
Independent Examiner Azets Audit Services Athenia House 10-14 Andover Road Winchester Hampshire S023 7BS
Bankers Lloyds TSB 72 Fenchurch Street London EC3P 3EH
THE FUSILIER MUSEUM LONDON
TRUSTEES’ ANNUAL REPORT (continued)
FOR THE YEAR ENDED 31 DECEMBER 2020
The Trustees present their Report and Financial Statement for the year ended 31 December 2020. These have been prepared in accordance with the 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 Fusilier Museum London preserves and presents a key element of the nation’s military history in the context of its birthplace and home, the historic Royal Palace and Fortress of the Tower of London. It plays a fundamental role in the education of audiences across the capital and the nation, sharing with them the role of the military in City, royal and nationally significant events of the last few centuries.
Structure, Governance and Management
The charity is a Charitable Incorporated Organisation (the CIO) governed according to the constitution dated 10 January 2017. It was established to take forward the work of the Unincorporated Trust registered charity number 261270 (the Trust). The CIO works closely with Historic Royal Palaces (HRP), the Army Heritage staff of the Ministry of Defence (MoD) and the Army Museums Ogilby Trust (AMOT).
All Trustees have an opportunity to attend training sessions on trustee responsibilities provided by British accountancy and legal partnerships. The Trustees are invited to attend the annual AMOT conference to be briefed on Museum best practice and MoD heritage policy. The Trustees meet at least three times a year, if necessary via electronic conference, to receive the reports of the Area Secretary, the Museum Officer and the Independent Examiner, to review financial and development progress and to give necessary direction. The Area Secretary is authorised to conduct the day-to-day operation and development of the Museum, giving guidance and priorities to the Museum Officer. Both work closely with the HRP staff, the regional Museum Development Officers and schools. The Museum Officer directs the work of the volunteers. Covid 19 and its financial consequences has threatened the very survival of the Trust and dramatically overshadowed the previously significant risks of changing Government financial legislation and MoD heritage policies to which the Trust is exposed. A suitable trustee mix of professional, entrepreneurial skills and experience remains a requirement to meet these challenges.
Objectives and Activities for Public Benefit
The Trust was established for charitable purpose to preserve the memory and related heritage of the Royal Fusiliers, and from 1968 the Royal Regiment of Fusiliers, for the benefit of all; and to advance education by encouraging and promoting the study, knowledge, understanding and appreciation of their deeds. In setting their objectives, and planning their activities, the Trustees have given careful consideration to the Charity Commission’s guidance on public benefit. The key aims include:
To ensure all visitors to the Museum and online are provided with a stimulating and rewarding experience.
To encourage young people to learn about the Regiment and its heritage through school visits, community projects and volunteering opportunities.
To enable serving and retired Fusiliers, their families and descendants to remember the courage and sacrifice made by the soldiers of the Regiment and our Armed Forces.
To engage with our local community and widen access to the Museum and to the Regiment’s heritage.
THE FUSILIER MUSEUM LONDON
TRUSTEES’ ANNUAL REPORT (continued)
FOR THE YEAR ENDED 31 DECEMBER 2020
To maintain close links with HRP and our sister regimental Museums, to promote our common interests and ensure sustainable working.
To safeguard the quality of the Regimental Collection for future generations.
To ensure the sustainability of the Museum by managing its finances and practising good governance.
Financial Review and Review of Activities
The Fusilier Museum (London) CIO Constitution maintains the power of the previous instruments of purpose to allocate, when resources permit, to the Charity known as the Fusiliers London Fund, The Royal Regiment of Fusiliers, in further pursuit of the objects of the Museum CIO. The full Financial Results are set out on pages 7 to 12 of these financial statements. In the year total expenditure was £99,763 (2019 £132,518) and total income was £40,459 (2019 £100,020) resulting in a loss of £59,304 for the year.
As the full impact of Covid 19 hit, the Tower of London shut its doors and suspended all stipend support. Calendar bookings for events in the Museum and Association Room suffered wholescale cancellation. Apart from building security and safety, the Museum was closed down and the Museum Officer and her assistant operated from home, completing supervision of minor volunteer projects such as a website virtual tour and dealing with curatorial enquiries. During the first interim Covid 19 phase, some completion of planned maintenance was permitted, including the Childrens’ Trail. During the autumn a very limited opening was permitted for some days. Our MoD employee was subject to furlough and our Collections Assistant Museum Officer worked until completion of her contract in August 2020. With income totally stalled the Trustees monitored unavoidable expenditure via electronic conference, giving guidance on husbandry and review of telephone and IT contracts. The Museum’s reserves, built up over the previous 60 years were gradually eroded. Submission of a claim application to our insurer under our business interruption cover proved nugatory; although sufficient grounds existed to justify taking legal opinion, however the prospect of successful outcome were not judged risk-worthy. Despite Government disbursement of funds in support of local organisations to Local Authorities, our application for financial support met with rejection and the opinion that “‘we were part of the Tower”. In order to respond to the launch of the second Arts Council Cultural Recovery Fund (CRF 2) Colonel Gorski put considerable effort into development of a detailed grant application. This again met with disappointment and in post-decision analysis a similar explanation that we were considered part of the Tower Family followed. Towards the end of the year, as the Trustees were considering the timing and financial implications of making the Museum Officer redundant she submitted her resignation to pursue a new career avenue. The year closed with the Trustees attempting to calculate how long the Museum’s dwindling reserves could be predicted to last.
The Royal Fusilier History Society has now been formally launched to provide a focus for historical research and publication. In addition to guiding the completion of the History of the Royal Fusiliers 1946-68, it will serve as an additional volunteer recruiting ground for the Museum and fulfil our MoD remit to foster a ‘friends organisation’. Its Chairman, Colonel Dudding, has been invited to become a Trustee.
The planned international inter-museum loan to Dublin Castle of the 1910 Royal Proclamation painting by Henry Harris Brown commenced on the 11" March 2020, the painting having been insured, packed and moved with appropriate care. Unfortunately, it was hardly on display at Dublin Castle before Covid 19 forced the exhibition to close. The painting was returned to London in March 2021. In similar vein the Trustees have agreed to the loan of the Martinique Napoleonic Eagle to the Fusilier Museum (Bury) for its 2021-22 Napoleon Exhibition.
THE FUSILIER MUSEUM LONDON
TRUSTEES’ ANNUAL REPORT (continued)
FOR THE YEAR ENDED 31 DECEMBER 2020
The AMOT LIBOR-funded digitisation project has suffered delays and changed its proposals. Access to digitised WWI archives is now to operate on a centralised basis accessed via AMOT. Unfortunately, this was judged incompatible with the Museum website and catalogue. We face an unresolved dispute with AMOT over access to our digitised archive images. Project intentions appear to have stalled pending the cultural sector’s post-Covid 19 recovery.
Revision of the 10 year-old partnership MOU with Tower authorities must await post-Covid 19 recovery. Discussions are focussed upon the consequences of heavy foot-fall, marketing, conservation, wear-&-tear repair and recommendations flowing from the HRP Access Review.
Investments and reserves
There is no permanent endowment. Annual income and expenditure were broadly in line pre-covid 19 but it may take many months before we can rebuild to this fortunate position, A general appeal for support may be necessary. Day-to-day cash needs are met from a non-interest bearing current account with Lloyds Bank. The reserve is held in the Charities Deposit Fund (CCLA), which is structured to provide a high level of capital security at a competitive rate of interest. The Trustees seek to restore a reserve of not less than six month’s income and aspire to a target of £100,000 as suitable to cover routine expenditure and planned commitments. This has been fully justified in the face of Covid 19. Cash balances are discussed at all meetings and a case for longer term investment considered against known budgets and outcomes. COIF offers a suitable range of global funds for such investment, to help maintain the real value of the reserves and generate a higher level of income to support the long-term activities of the trust and the management of the collection. Major expenditure arising from new initiatives or changes in strategy will require targeted fund-raising and held as Restricted Funds.
Statement of Risk Management Policy
Through a regular review procedure, the Trustees assess the major risks to which the charity is exposed; in particular those related to its operations and finances. The Trustees are satisfied that sufficient systems are in place to identify and mitigate exposure to major risk. The loss of a degree of support by RHQ staff following the MoD re-structuring of regimental headquarters placed pressure on the Museum’s management, leading to the adoption of the Xero Accounting System and revision of its associated controls and payment authorities. The operation of the three Trustee Sub-Committees covering Education and Outreach, Commerce and Finance and History and Website has enabled Trustees to exercise greater visibility and involvement in some project areas and make efficient use of limited time. The Museum Officer (when recruited) will be a member and secretary of the London Military Museums Network, which enables skill sharing, the identification of curatorial risk, partnership working and joint funding applications between military museums.
Future Plans
Loss of Tower visitors and corporate hospitality demand post-Covid 19 is the main threat to the Museum’s survivability. Maintenance of the Museum’s relationship with HRP and making better commercial use of the Museum and Regimental Association room are critical for the Museum’s survival.
In pursuit of the Museum’s 2018-2021 Forward Plan, in 2021 we expect to:
Ensure the Museum’s post-Covid 19 survival by judicious use of reserves and Regimental assistance until HRP foot-fall, corporate hospitality recover and HRP stipend credit is met.
In partnership with HRP, further exploit the commercial potential of Museum space.
~
THE FUSILIER MUSEUM LONDON
TRUSTEES’ ANNUAL REPORT (continued)
FOR THE YEAR ENDED 31 DECEMBER 2020
Continue to deliver for the Regiment “Outreach and Education” to cadets, schools, youth organisations and Greater London society.
Complete the new catalogue and data cleansing, hopefully incorporating the digitised product of the AMOT LIBOR project.
Complete the suspended revision of the partnership MOU with Tower authorities.
Continue to work with HRP and the Royal Armouries in refinement of the Regimental collection and place in the Tower “core story” as part of the Tower visitor experience.
Identify significant gaps in the uniforms and badge collections.
Continue to support the development of the Royal Fusilier History Society and production of a Royal Fusilier history covering the period 1945 to 1968.
The report and accounts were approved by the trustees by conference call on o October 2021 and signed on their behalf by
Brigadier R M Wilde Chairman
THE FUSILIER MUSEUM LONDON
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE FUSILIER MUSEUM FUND
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2020 which are set out on pages 7 to 12.
This report is made solely to the charity’s trustees, as a body, in accordance with section 145 of the Charities Act 2011 and regulations made under section 154 of that Act. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my work, for this report, or for the opinions I have formed.
Responsibilities and basis of report
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination | have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- accounting records were not kept in respect of the charity as required by section 130 of the Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Name:ied Institute of Chartered Accountants in England & Wales Azets Audit Services, Athenia House, 10-14 Andover Road, Winchester, Hampshire, SO23 7BS Date: 20 Ob. be200 |
THE FUSILIER MUSEUM LONDON
STATEMENT OF FINANCIAL ACTIVITES
FOR THE YEAR ENDED 31 DECEMBER 2020
| Total | Total | |||
|---|---|---|---|---|
| Unrestricted | Restricted | 2020 | 2019 | |
| £ | £ | es | £ | |
| INCOME | ||||
| Incoming resources from raised funds: | ||||
| Voluntary income | - | 1,208 | 1,208 | 857 |
| Grant from London Fund | 8,000 | - | 8,000 | - |
| Activities for generating funds: | ||||
| Functions income | 11,378 | - | 11,375 | 69,614 |
| Project Income | - | 6,742 | 6,742 | - |
| Investment income | 216 | - | 216 | 525 |
| Incoming resources from charitable activities: | ||||
| Net Penny Press Takings | 3,920 | - | 3,920 | 17,936 |
| Income from Historic Royal Palaces | 1,848 | - | 1,848 | 11,088 |
| Job Retention Scheme income | 7,150 | - | 7,150 | - |
| TOTAL INCOME | 32,509 | 7,950 | 40,459 | 100,020 |
| EXPENDITURE | ||||
| Cost ofraising funds: | ||||
| Cost ofsales: Functions | 7,934 | ~ | 7,934 | 26,194 |
| Charitable activities: | ||||
| Project Expense | - | 7,037 | 7,637 | 4,993 |
| Provision against Historic Royal Palaces income | - | - | - | 8,777 |
| Staffwages | 53,828 | - | 53,828 | 58,845 |
| Website Costs | 6,000 | - | 6,000 | 6,600 |
| Telephone and maintenance | 3,163 | - | 3,163 | 4,283 |
| Support costs | 10,960 | - | 10,960 | 12,771 |
| Depreciation and amortisation | 5,038 | 163 | 5,201 | 5,201 |
| Independent examiner’s fee | 5,040 | - | 5,040 | 4,854 |
| TOTAL EXPENDITURE | 91,963 | 7,800 | 99,763 | 132,518 |
| NET EXPENDITURE | (59,454) | 150 | (59,304) | (32,498) |
| Gross transfers between funds | (1,541) | 1,541 | - | - |
| NETMOVEMENT IN FUNDS | (60,995) | 1,691 | (59,304) | (32,498) |
| FUNDS AT 1 JANUARY | 113,025 | 11,073 | 124,098 | 156,596 |
| FUNDSAT31DECEMBER | 52,030 | 12,764 | 64,794 | 124,098 |
THE FUSILIER MUSEUM LONDON
BALANCE SHEET AS AT 31 DECEMBER 2020
----- Start of picture text -----
||||||||
|---|---|---|---|---|---|---|
|Notes|
|2020|2019|
|z,|£|£|£|
|FIXED ASSETS|
|Tangible|fixed|assets|3|6,304|11,505|
|6,304|11,505|
|CURRENT|ASSETS|
|Stock|A|3,456|6,993|
|Debtors|5|12,559|19,818|
|COIF|Charities|Deposit Fund|32,972|92,756|
|Cash|at bank|and|in|hand|21,110|11,303|
|70,097|130,870|
|76,401|142,375|
|CREDITORS|
|Amounts|falling|due|within|one|
|year|6|(11,607)|(18,277)|
|TOTAL ASSETS|LESS|
|CURRENT LIABILITIES|64,794|124,098|
|FUNDS|
|Unrestricted|funds|7|52,030|113,025|
|Restricted|funds|7|12,764|11,073|
|TOTAL CHARITY FUNDS|64,794|124,098|
----- End of picture text -----
The accounts were approved and authorised for issue by the Board on 20 /lo /2021 and signed on behalf of the Board of Trustees:.
Brigadier R M Wilde
THE FUSILIER MUSEUM LONDON
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020
-
ACCOUNTING POLICIES
-
a) The accounts have been prepared under the historical cost convention except for investments which have been included at market value, and in accordance with applicable accounting standards and follow the recommendations in “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 (FRS102) (effective 1 January 2019).
-
b) Voluntary income is received by way of donations and gifts and is included in full in the Statement of Financial Activities when received.
Income received for the use of the rooms and bar is recognised in the year in which the function took place.
Takings and shop income is recognised when received.
Grants towards the restoration and refurbishment of the Museum have been recognised in the year in which they are receivable.
Intangible income is valued and included in income to the extent that it represents goods or services which would otherwise be purchased. Where it is not possible to value the goods or services, such as volunteer time, the accounts do not include them.
- c) Expenditure is recognised on an accruals basis as a liability is incurred and includes attributable VAT which cannot be recovered. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Grants payable are charged in the year in which the offer is conveyed.
Costs of generating funds comprise the costs associated with operating the Bar.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the independent examination fees and costs linked to the strategic management of the charity.
All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly.
- d) Unrestricted funds are donations and other income received or generated for the objects of the charity without further specified purpose and are available as general funds.
Restricted funds can only be used for a specified purpose. Restrictions are imposed by the donor or when funds are raised for specified restricted purposes. The notes to the accounts provide further details.
-
e) Investments are stated at market value. Unrealised gains and losses on investments are taken directly to the Statement of Financial Activities.
-
f) Stock is valued at the lower of cost and net realisable value ona first in first out basis.
THE FUSILIER MUSEUM LONDON
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020
g) Heritage assets held by the CIO but acquired in past accounting periods have not been capitalised in these accounts as sufficient reliable cost information is not available.
STAFF COSTS
| STAFF COSTS | ||
|---|---|---|
| 2020 | 2019 | |
| ¥ | de | |
| Wages | 52,634 | 57,262 |
| Social Security cost | 1,194 | 1,383 |
| 53,828 | 58,845 | |
| The averagenumber ofemployees during theyear was as follows:- | ||
| 2020 | 2019 | |
| Administration | 3 | 3 |
None of the trustees received any remuneration or reimbursement of expenses from the fund during the year.
Se
TANGIBLE FIXED ASSETS
| 2020 | |
|---|---|
| i | |
| Cost | |
| 1 January 2020 | 22,510 |
| Additions | : |
| 31 December 2020 | 22,310 |
| Depreciation | |
| 1 January 2020 | 10,805 |
| Charge foryear | S201 |
| 31 December 2020 | 16,006 |
| Net book value | |
| 31 December 2020 | 6,304 |
| — | |
| Net book value | |
| 31December2019 | 11,505 |
THE FUSILIER MUSEUM LONDON
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020
| 4. | STOCKS | ||
|---|---|---|---|
| 2020 | 2019 | ||
| £ | £ | ||
| Bar | 3,456 | 6,993 | |
| 3,456 | 6,993 | ||
| 5. | DEBTORS | ||
| 2020 | 2019 | ||
| £ | £ | ||
| Sundry debtors and prepayments | 12,533 | 19,792 | |
| Amounts due from Association | 26 | 26 | |
| 12,559 | 19,818 | ||
| 6. | CREDITORS - AMOUNTS FALLING DUE WITHIN ONEYEAR | ||
| 2020 | 2019 | ||
| £ | £ | ||
| Other Creditors | 1,461 | 831 | |
| Accruals | 8,994 | 8,394 | |
| PAYE& NIC | L | S2 | |
| Amounts owed to London Fund | - | 7,432 | |
| 11,607 | 18,277 |
12,
THE FUSILIER MUSEUM LONDON
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2020
- ANALYSIS OF FUNDS
||| January|Incoming|Resources||BI| |---|---|---|---|---|---| ||2020|Resources|Expended|Transfers|December| ||||||2020| |Unrestricted funds|113,025|32,509|(91,963)|(1,541)|52,030| |Restricted funds:|||||| |Collection move|11,073|2,950|(1,259)||12,764| |Children’s Trail|-|5,000|(6,541)|1,541|-| ||124,098|40,459|(99,763)|-|64,794|
The restricted fund relates to the grants and donations received in relation to specific projects being the Collection move and the Children’s Trail. The Children’s Trail funds were fully spent in the year.
- ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Fixed Assets | Current Assets | Current Liabilities | Total | |
|---|---|---|---|---|
| £ | £ | a | i | |
| Unrestricted funds | 5,979 | 57,658 | (11,607) | 52,030 |
| Restricted funds | 325 | 12,439 | - | 12,764 |
| 6,304 | 70,097 | (11,607) | 64,794 |