Charity Number: 1176495 ## **MUSEUM OF TIMEKEEPING** ## **Unaudited** **Trustees' Report and Financial Statements** **For the Year Ended 31 December 2021** ## **MUSEUM OF TIMEKEEPING** ## CONTENTS ||Page| |---|---| |Reference and administrative details of the charity, its trustees and advisors|3| |Trustees report|4| |Independent examiner's report|5| |Statement of financial activities|6| |Balance sheet|7| |Notes to the financial statements|8-15| 2 ## **MUSEUM OF TIMEKEEPING** ## **Reference and administrative details of the charity, its trustees and advisors for the year ended 31 December 2021** ## **TRUSTEES** J J Koullapis - Chairman (appointed 27th January 2022) Viscount A Midleton - (Chairman until 27th January 2022) A M Gayler - Vice Chairman N R Williams - Treasurer J Arnfield K Lawrey R B Loomes C H Barnes A J Wright R Struthers D Peach (appointed 27th January 2022) ## **MANAGER** A C Bond ## **Charity Registered Number** 1176495 ## **Principal office** Upton Hall, Main Street, Upton, Newark, Notts, NG23 5TE ## **Independent Examiner** Michelle Allen FCA Access Accounts Services Ltd, Chartered Accountants, Office 11, Navigation Business Centre, Mill Gate, Newark, NG24 4TS ## **Bankers** Natwest Bank Plc, Leicester Customer Service Centre, Bede House, 11 Western Boulevard Leicester, LE2 7EJ 3 ## **MUSEUM OF TIMEKEEPING Trustees' Report** The Trustees present their annual report and financial statements of the charity for the year ended 31st December 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s trust deed, the Charities Act 2011 and the Charities SORP (FRS 102). ## **Objectives and Activities** The Museum of Timekeeping holds for public benefit a collection to inspire and promote public understanding and appreciation of horology and the history, science, art and craft of timekeeping. It achieves this by collecting, documenting, preserving, exhibiting and interpreting a collection, and library, and promoting it for public enjoyment and understanding of horology and timekeeping, through exhibitions and public and educational programmes. ## **Achievements and performance** The Museum was able to re-open in May 2020 and visitors were welcomed back but Covid19 and furlough restrictions continued to impact. Two major projects were started. Firstly to digitise the historic and extensive library, and secondly the Museum’s speaking clocks were successfully moved to better display this unique collection to the public. A shop facility has also been started. ## **Financial Review** Income was bolstered by furlough grants and charitable grants assisting with the two major projects mentioned above while expenditure increased through opening to the public. Trustees continue to look at ways to support the future of the Museum. ## **Designated Reserves** Designated reserves were set up for three years in 2019 to see through projects encouraging public attendance but the plans were stalled by the Covid19 epidemic and the designated reserves have now been released. ## **Structure, Governance and Management** The Board met twice during the year virtually and the Finance and General purposes committee four times to discuss activities and advise the Board with matters of governance. ## **Reference and Administrative Details** A policy for expenditure authorisation is in place and adhered to. Communications between Trustees are held on a web-based communications system. Museum records are hosted on the British Horological Institute Limited IT server and regularly backed-up. ## **Exemptions from disclosure** There are no items exempt from disclosure. Funds held as custodian trustee on behalf of others. There were none. Signed on behalf of the board of Trustees: J J Koullapis Chairman Date: 4 ## **MUSEUM OF TIMEKEEPING Independent Examiner's Report for the year ended 31 December 2021** ## INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MUSEUM OF TIMEKEEPING (the ’Charity') I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 December 2021. This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 or for this report. ## RESPONSIBILITIES AND BASIS OF REPORT As the Trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act'). I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **INDEPENDENT EXAMINER’S STATEMENT** Your attention is drawn to the fact that the Charity has prepared the accounts in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn. I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. I have completed my examination. I can confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: - 1 accounting records were not kept in respect of the Charity as required by section 130 of the 2011 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 drawn in this report in order to enable a proper understanding of the accounts to be reached. Signed: Dated: Name: MICHELLE ALLEN FCA 5 ## **MUSEUM OF TIMEKEEPING STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021** |Unrestricted
funds
2021
Note
£
**INCOME FROM:**
Charitable activities
2
28,841
Investments
3
1,999
**TOTAL INCOME**
30,840
**EXPENDITURE ON:**
Charitable activities
4, 5 & 6
87,709
**Total Expenditure**
87,709
**NET INCOME/ (EXPENDITURE) BEFORE**
(56,869)
**OTHER RECOGNISED GAINS & LOSSES**
UNREALISED GAINS ON INVESTMENT
5,873
**NET MOVEMENT IN FUNDS**
(50,996)
**RECONCILIATION OF FUNDS:**
Total funds brought forward
256,574
Restricted grant transferred
to capital expenditure
-
**TOTAL FUNDS CARRIED FORWARD**
**205,578**|Restricted
funds
2021
£
13,557
-
13,557
6,678
6,678
6,879
-
6,879
107,551
(4,026)
**110,404**|Total
funds
2021
£
42,398
1,999
44,397
94,387
94,387
(49,990)
5,873
(44,117)
364,125
(4,026)
**315,982**|Total
funds
2020
£
16,178
3,316
19,494
87,644
87,644
(68,150)
538
(67,612)
431,737
-
**364,125**| |---|---|---|---| The notes on pages 8 to 15 form part of these financial statements 6 ## **MUSEUM OF TIMEKEEPING BALANCE SHEET AS AT 31 DECEMBER 2021** |2021
Note
£
£
**FIXED ASSETS**
Tangible assets
9
2,523
Investments
10
117,581
120,104
**CURRENT ASSETS**
Stock
1,882
Debtors
11
17,706
Cash at bank and in hand
219,170
238,758
**CREDITORS**: Amounts falling due
12
(42,880)
within one year
**NET CURRENT ASSETS**
195,878
**NET ASSETS**
315,982
**CHARITY FUNDS**
Restricted funds
13
110,404
Unrestricted funds
13
205,578
**TOTAL FUNDS**
315,982|2020
£
£
4,892
111,114
116,006
-
46,517
255,466
301,983
(53,864)
248,119
364,125
107,551
256,574
364,125| |---|---| The financial statements were approved by the Trustees on , and signed on their behalf by: J J Koullapis, Chairman N R Williams, Treasurer 7 ## **MUSEUM OF TIMEKEEPING NOTES TO THE FINIANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **ACCOUNTING POLICIES** 1.1 Basis of preparation of financial statements The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair’ view. This departure has involved following the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014 and Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and Charities Act 2011. Museum of Timekeeping constitutes a public benefit entity as defined by FRS 102. ## 1.2 Income 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 receivable can be measured reliably. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. ## 1.3 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Support costs are those costs incurred directly in support of expenditure on the objects of the Charity and include project management carried out at Headquarters. Charitable activities and Governance costs are costs incurred on the Charity's educational operations, including support costs and costs relating to the governance of the Charity apportioned to charitable activities. 8 ## **MUSEUM OF TIMEKEEPING NOTES TO THE FINIANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **ACCOUNTING POLICIES CONTINUED…** 1.4 Tangible fixed assets and depreciation All assets costing more than £250 are capitalised. A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities. Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases: Fixtures and fittings 25% straight line Office equipment 25% straight line ## 1.5 Investments Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses are shown in the heading ’Gains/(losses) on investments' in the Statement of financial activities. Listed investments are measured at fair value with changes in fair value being recognised in the Statement of financial activities. ## 1.6 Interest receivable 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. 1.7 Stocks Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and if appropriate, a proportion of fixed and variable overheads. ## 1.8 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. ## 1.9 Cash at Bank and in hand Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 9 ## **MUSEUM OF TIMEKEEPING NOTES TO THE FINIANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **ACCOUNTING POLICIES CONTINUED…** ## 1.10 Liabilities and provisions Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges. ## 1.11 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. ## 1.12 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income, gains and losses are allocated to the appropriate fund. ## 1.13 Critical accounting estimates and areas of judgment Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. No critical judgements were required in order to apply the Charity's accounting policies, and there are no key sources of estimation uncertainty. ## 1.14 Heritage assets It is the policy of the Trust not to capitalise heritage assets belonging to the Museum. These are in effect inalienable, held in perpetuity, and are mostly irreplaceable. Any financially based valuation would be misleading to the value and significance of the material culture involved. The trust has a clear duty of care for these assets and to make them available for the enjoyment and education of the public as far as is possible, commensurate with their long term care and preservation. The highest possible standards of collection management are applied, and the catalogues are made available as widely as possible to facilitate all enquiries and requests for information, subject to appropriate security and data protection guidelines. 10 ## **MUSEUM OF TIMEKEEPING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## 2. INCOME FROM CHARITABLE ACTIVITIES |Unrestricted funds
Restricted funds
Total funds
3.
INVESTMENT INCOME
Investment income
Bank interest receivable
Other interest receivable
4.
DIRECT COSTS
Museum costs
Open day costs
5.
SUPPORT COSTS
BHI Support costs (rent)
Subscriptions
Contract Staff
Professional fees
Consultancy fees
Office costs
Governance costs
Wages and salaries
Training
Depreciation|Unrestricted
funds
2021
£
594
237
1,168
1,999|Restricted
funds
2021
£
-
-
-
-
Charitable
Activities
£
25,306
727
26,033
Charitable
Activities
£
15,000
198
237
1,500
-
1,859
2,043
43,933
500
3,084
68,354|Total
funds
2021
£
28,841
13,557
42,398
Total
funds
2021
£
594
237
1,168
1,999
Total
2021
£
25,306
727
26,033
Total
2021
£
15,000
198
237
1,500
-
1,859
2,043
43,933
500
3,084
68,354|Total
funds
2020
£
16,178
-
16,178
Total
funds
2020
£
924
498
1,894
3,316
Total
2020
£
24,217
2,452
26,669
Total
2020
£
15,000
-
1,097
2,500
3,000
1,804
1,447
33,159
-
2,968
60,975| |---|---|---|---|---| During the year ended 31 December 2021, the Charity incurred the following Governance costs: £720 (2020 - £720) included within the table above in respect of independent examinations. 11 ## **MUSEUM OF TIMEKEEPING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## 6. ANALYSIS OF EXPENDITURE BY TYPE |Staff costs
2021
£
Charitable activities
43,933
Total 2020
33,159
7.
NET INCOME/(EXPENDITURE)
This is stated after charging:
Depreciation of tangible fixed assets:
Owned by the Charity
Independent examination cost|Depreciation
2021
£
3,084
2,968|Other costs
2021
£
47,370
51,517
2021
£
3,084
720
3,804|Total
2021
£
94,387
87,644
2020
£
2,968
720
3,688| |---|---|---|---| During the year no Trustee received any remuneration (2020 - £nil) or benefit in kind (2020 - £nil). During the year no Trustee received reimbursement of expenses in the current year (2020 - 3 Trustees - £261). ## 8. STAFF COSTS |Staff costs were as follows :
2021
£
Wages and salaries
43,933
The average number of persons employed by the Charity during the year was as follows:
2021
No.
Management
1
Administrative staff
2
3|2020
£
33,159
2020
No.
1
-
1| |---|---| No employee received renumeration amounting to more than £60,000 in either year. No remuneration or benefit was received by key management personnel. 12 ## **MUSEUM OF TIMEKEEPING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** |9.
TANGIBLE FIXED ASSETS
Fixtures and
fittings
Cost
£
At 1 January 2021
2,078
Additions
3,583
Capital grant
(2,868)
At 31 December 2021
2,793
Depreciation
At 1 January 2021
1,494
Charge for the year
699
At 31 December 2021
2,193
Net book value
At 31 December 2021
600
At 31 December 2020
584
10. FIXED ASSET INVESMENTS
Listed securities
At 1 January 2021
Unrealised gain
Income reinvested
At 31 December 2021
Investments at market value, held in the UK, comprise:
abrdn (Aberdeen Standard) unit trust
Investments
11. DEBTORS
Due within one year
Other debtors|Office
equipment
£
12,779
-
-
12,779
8,471
2,385
10,856
1,923
4,308
2021
£
111,114
5,873
594
117,581
2021
£
117,581
117,581
2021
£
17,706
17,706|Total
£
14,857
3,583
(2,868)
15,572
9,965
3,084
13,049
2,523
4,892
2020
£
109,652
538
924
111,114
2020
£
111,114
111,114
2020
£
46,517
46,517| |---|---|---| Included in Other debtors are amounts owed by the British Horological Institute Limited, a related company. See Note 15 for details of these transactions. |12. CREDITORS: Amounts falling due within one year
Trade creditors
Other taxation and social security
Accruals
Other creditors
13|2021
£
36,224
1,896
4,720
40
42,880|2020
£
21,010
1,094
31,720
40
53,864| |---|---|---| ## **MUSEUM OF TIMEKEEPING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## 13. STATEMENT OF FUNDS |STATEMENT OF FUNDS - CURRENT YEAR
Balance at
1 January 2021
£
Unrestricted funds:
General funds
256,574
Restricted funds
107,551
Total of funds
364,125
STATEMENT OF FUNDS - PRIOR YEAR
Balance at
1 January 2020
£
Unrestricted Funds
General funds
324,186
Restricted funds
107,551
431,737
SUMMARY OF FUNDS - CURRENT YEAR
Balance at
1 January 2021
£
Designated funds
198,000
General funds
58,574
256,574
Restricted funds
107,551
364,125
SUMMARY OF FUNDS - PRIOR YEAR
Balance at
1 January 2020
£
Designated funds
198,000
General funds
126,186
324,186
Restricted funds
107,551
431,737|Income
£
36,713
13,557
50,270
Income
£
20,032
-
20,032
Income
£
-
36,713
36,713
13,557
50,270
Income
£
-
20,032
20,032
-
20,032|Expenditure
£
(87,709)
(6,678)
(94,387)
Expenditure
£
(87,644)
-
(87,644)
Expenditure
£
-
(87,709)
(87,709)
(6,678)
(94,387)
Expenditure
£
-
(87,644)
(87,644)
-
(87,644)|Other
In/Out
£
-
(4,026)
(4,026)
Transfers
In/Out
£
-
-
-
Transfers
In/Out
£
(198,000)
198,000
-
(4,026)
(4,026)
Transfers
In/Out
£
-
-
-
-
-|Balance at 31
December 2021
£
205,578
110,404
315,982
Balance at 31
December 2020
£
256,574
107,551
364,125
Balance at 31
December 2021
£
-
205,578
205,578
110,404
315,982
Balance at 31
December 2020
£
198,000
58,574
256,574
107,551
364,125| |---|---|---|---|---| 14 ## **MUSEUM OF TIMEKEEPING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## 14. ANALYSIS OF NET ASSETS BETWEEN FUNDS |CURRENT YEAR
Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
PRIOR YEAR
Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year|Unrestricted
funds 2021
£
2,523
117,581
128,354
(42,880)
205,578
Unrestricted
funds 2020
£
4,892
111,114
194,432
(53,864)
256,574|Restricted
funds 2021
£
-
-
110,404
-
110,404
Restricted
funds 2020
£
-
-
107,551
-
107,551|Total
funds 2021
£
2,523
117,581
238,758
(42,880)
315,982
Total
funds 2020
£
4,892
111,114
301,983
(53,864)
364,125| |---|---|---|---| ## 15. RELATED PARTY TRANSACTIONS The Horological Institute Limited by guarantee (BHI Limited) is a company related to the charity. During the year the Charity incurred support costs (which includes use of BHI Limited's property to house the collection, and other recharges) to BHI Limited totalling £34,461 (2020 - £34,691). The charity received £15,000 (2020 - £12,000) from the BHI Limited for access to the museum for it's members and students. The Charity has previously formally loaned BHI Limited £107,000 which is being repaid in monthly instalments over a period of 60 months at an interest rate of 2% per annum. Capital repayments totalling £18,190 (2020 - £21,828) were made during the year, and interest of £357 (2020 - £428) was charged. The amount owing to the Charity at the year end was £1,683 (2020 - £19,517) and is included in Other debtors.