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2023-03-31-accounts

Charity Registration No. 1176955 Companies House Registration No. CE013114 (England & Wales)

Birmingham Pen Trade Heritage Association (also known as The Pen Museum)

Annual Report & Financial Statements

for the year ended 31 March 2023

www.penmuseum.org.uk

Birmingham Pen Trade Heritage Association

Contents

Reference & Administrative Information 2
Chair’s Review of the Year 3
Trustees’ Report 4 - 6
Independent Examiner’ Report 7
Statement of Financial Activities (SOFA) 8
Balance Sheet 9
Notes to the Financial Statements 10

1

Birmingham Pen Trade Heritage Association

Trustees’ Report for the Year Ended 31 March 2023

Administrative Information Alternative name: The Pen Museum Trustees: Andrew Munro (Chair) Anthony Berry Isabel Churcher Craig Edmondson Nigel Evans Carmel Girling Jacqueline Hancox Steven Hearn Charity Registration Number: 1176955 Companies House Registration Number: CE013114 Principal Address & Registered Office: Pen Museum, Unit 3 The Argent Centre 60 Frederick Street Birmingham, B1 3HS Accountants: Holder Blackthorn Blackthorn House St Pauls Square Birmingham B3 1RL Bankers: Lloyds Bank, University of Birmingham 142 Edgbaston Park Road Edgbaston Birmingham, B15 2TY Telephone: 0121 236 9834 Email: enquiries@penmuseum.org.uk Website: www.penmuseum.org.uk

2

Birmingham Pen Trade Heritage Association

Trustees’ Report for the Year Ended 31 March 2023

Chair’s Review of the Year

It's been another challenging year for the Museum with the vital front of house responsibilities falling on both our part time Museum Manager and our long serving duty managers. Availability of volunteers has had an impact on some of our opening days and industrial action by travel operators has compounded staffing difficulties.

On the brighter side we have recruited some excellent new volunteers with a variety of talents who have helped in setting up a satellite shop presence at the Library of Birmingham.

It would also be remiss of me not to mention the positive effect on visitor numbers of the Commonwealth Games with links to Carmel Girling, one of our Trustees helping raise our profile. In this regard, Carmel has set up a Marketing Group to develop and deliver in this area.

Visitor numbers for the days that we were open were encouraging and we also opened on an extra day (Wednesday) sometimes for specific groups and these days have proved popular although, as ever, staffing cover can be an issue.

I have also given several talks to spread the Pen Museum word whilst reaping a modest fee to help the Museum.

Our ratings on sites including Google and Trip Advisor continue to be encouragingly high and give cause for both pride and optimism.

Undoubtedly if we are going to aim to break even or get near that aim, another staffing resource to help our part time manager will be needed so bidding for another member of staff/ core funding has to be a vital part of our Strategy.

In looking back on the year, I want to thank both our Museum Manager and all our volunteers but particularly our duty managers, Val Bache, Larry Hanks, and Rob Stanyard who have been real stalwarts.

I also want to thank all our Trustees and officers for their fantastic support but particularly want to thank our long serving Secretary Nigel Evans who remains at the heart of the engine room.

In helping us steer a stable ship in sometimes difficult waters I must also thank our landlord's Midland Industrial Association for their understanding.

Support from Birmingham Common Good Trust and Charles Broughton Trust was again very welcome for our restricted reserves.

During the year Charlie Stockbridge Managing Director of Manuscript Pen Company and a long serving member of our board stood down due to time constraints and with agreement of our Trustees was made a life member of the Association as a thank you for his support. Our important historical relationship with Manuscript as suppliers of retail stock for our shop continues without change.

Andy Munro Chair of Trustees

3

Birmingham Pen Trade Heritage Association

Trustees’ Report for the Year Ended 31 March 2023

The Trustees present their report and financial statements for the year ended 31 March 2023.

Governing Document

The Birmingham Pen Trade Heritage Association, also known as The Pen Museum, is constituted as a charitable incorporated organisation (reg. no. 11176955).

Trustees

The Trustees of the Museum for the purposes of charity law and throughout this report are collectively referred to as ‘the Trustees’. The Trustees are appointed by the Members of the charity. Those Trustees who served during the period of this review were:

Andrew Munro Anthony Berry Isabel Churcher Craig Edmondson (appointed 18 June 2022) Nigel Evans Carmel Girling Jacqueline Hancox Steve Hearn (appointed 18 June 2022) Charles Stockbridge (resigned 18 July 2022)

Recruitment & Appointment of Trustees

Trustee selection usually follows an advertised recruitment process. Candidates if selected are interviewed by Trustees. Successful candidates are co-opted onto the board of Trustees until the appropriate AGM. Vacancies arising may be filled by the decision of the Members at the AGM. The Members, acting at an AGM, shall also elect from amongst themselves a Chair, Secretary and Treasurer for the time being. A Trustee shall serve for a term of three years from the conclusion of the AGM at which they were appointed. At the conclusion of their term of office, a Charity Trustee who is willing to continue to serve may be nominated for re-appointment by the Members, subject to serving a maximum of four consecutive terms of three years. Nominations for election as a Charity Trustee must be made by Members of the CIO in writing and must be received by the Secretary at least 14 days before the AGM. Trustees receive role profile/description and code of conduct. Relevant Accounts and Charity Commission Guides for Trustees and CIO Constitution.

Achievement of Public Benefit

As a charity, the Trustees recognise their legal duty to report on the Museum’s public benefit in their Annual Report, as part of a requirement to clearly demonstrate that the Objects of the Charity are for the public benefit. In setting out, in this Annual Report, how the Charity currently meets this requirement and is reflected in its future, the Trustees assert that the Charity is compliant with the requirements of the Charities Act 2011; having due regard for the public benefit guidance published by the Charity Commission.

4

Birmingham Pen Trade Heritage Association

Trustees’ Report for the Year Ended 31 March 2023

Charitable Objects and Aims

As a registered charity, the objectives of the Museum are to:

Promote and preserve the history and legacy of the steel Pen Trade in Birmingham, for the advancement of the education and benefit of the public; and

Maintain a museum that showcases the skill and craftsmanship of the Pen Makers and their employees and houses historic artefacts and ephemera related to the art of writing.

The charity’s aim is to ensure that the importance of the city of Birmingham's role in the nineteenth century pen trade is explored, understood, and appreciated. It seeks to achieve this predominantly through operating the Pen Museum in Birmingham, which is dedicated to displaying information and artefacts about the Birmingham pen trade of the nineteenth century and the lives of manufacturers and workers in that trade. The museum provides a range of activities for visitors and has an extensive collection of historical items on display including nibs, inkwells, and period retail packaging. The charity encourages research into the Pen Trade by making its collections accessible to researchers. In addition, it highlights the importance of and encourage the use of nib and fountain pen to develop writing and graphic skills.

Performance and Achievements during the Year

We were delighted, during the year, to be able to increase the number of days that the Museum is open to visitors to four, Thursday to Sundays, which helped to enable us to welcome 3,820 visitors to the Museum across the year. Furthermore, we were able to restart calligraphy classes held at the Museum.

Financial Review

Income for the year amounted to £54,750, of which £54,575 was unrestricted, whilst expenditure totalled £82,412, of which £81,953 was unrestricted. This means that the Museum had a net decrease in unrestricted funds of £27,378 and a net decrease in restricted funds of £284, resulting in a balance of total funds of £106,576 at 31 March 2023.

Reserves Policy

The Trustees regularly review the Charity’s need for reserves and has constructed a reserves policy, in line with the guidance issued by the Charity Commission, which is to hold general funds of at least the equivalent of three months working capital. As at 31 March 2023 the general funds balance was £28,147.

Risk Management

The Trustees identify and review risks at every Board meeting using a formal risk register - to ensure that key risks facing the organisation are identified and appropriate actions are put in place to mitigate those risks. As part of the Museums risk management process, the Trustees acknowledge their responsibility for the Museum’s system of internal control and reviewing its effectiveness.

5

Birmingham Pen Trade Heritage Association

Trustees’ Report for the Year Ended 31 March 2023

Future Plans

For the coming year we will continue to seek to increase the number of volunteer supporting the Museum to ensure that we can continue maximise the amount the Museum is open to visitors. To further support this, we will also be seeking to make applications to appropriate charitable trusts and foundations for funds to support our work. We also aim to launch the online shop to sell the same products that are for sale in our small retail area within the Museum.

Going Concern

As reported in the financial statements, the Museum made a deficit for the year, arising as a result of the income generated through the number of visitors not meeting the expenditure associated with running the Museum. The Trustees are fully aware of the Museum’s financial position and plan to actively make applications to appropriate charitable trusts and foundations to seek funds to support its work and cover any operating deficits whilst it continues to work to increase its visitor numbers. The Trustees have considered the finance forecasts for the next twelve months and based on the current level of visitors, even without additional funding support, they are satisfied with the Museum’s ability to continue as a going concern and Financial Statements are drawn up on the going concern basis.

On behalf of the Trustees

Chair Andrew Munro Dated: 10 July 2023

6

Independent Examiners’ Report to the Members of Birmingham Pen Trade Heritage Association for the Year Ended 31 March 2023

Birmingham Pen Trade Heritage Association

Respective Responsibilities of Trustees and Examiner

The Trustees are responsible for the preparation of the accounts. The charity’s Trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.

It is our responsibility to:

Basis of independent examiner’s statement

Our examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view, and the report is limited to those matters set out in the statement below.

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:

  1. 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 order to enable a proper understanding of the accounts to be reached.

Tracey James FCA Institute of Chartered Accountants in England and Wales Holder Blackthorn LLP Blackthorn House St Pauls Square Birmingham B3 1RL

Dated 11 July 2023

7

Birmingham Pen Trade Heritage Association

Statement of Financial Activities including Income and Expenditure Account for the Year Ended 31 March 2023

Notes
Income
Voluntary income:
Charitable donations & subscriptions
2
Grants
Charitable Activities:
2
Admission to the Museum
3
COVID-19 support funding & claims
4
Activities for generating funds:
Ancillary trading activities
5
Total Income
Expenditure
Raising Funds:
Other trading activities
Charitable Activities:
Opening and operating the Museum
Total Expenditure
6
Net Income/(Expenditure) before taxation
Tax receivable
Net Movement in Funds
Reconciliation of Funds:
Total Funds brought forward 1 April 2022
Total Funds carried forward at 31 March 2023		 Unrestricted
Funds
Restricted
Funds
Total
2023
Total
2022
£
£
£
£
3,882
175
4,057
2,795
-
-
-
3,375
30,100
-
30,100
5,498
981
-
981
120,639
19,612
-
19,612
2,967
54,575
175
54,750
135,274
10,045
-
10,045
493
71,908
459
72,367
76,188
81,953
459
82,412
76,681
(27,378)
(284)
(27,662)
58,593
-
-
-
-
(27,378)
(284)
(27,662)
58,593
83,016
51,222
134,238
75,645
55,638
50,938
106,576
134,238

The Statement of Financial Activities (SOFA) also complies with the requirements for an income and expenditure account under the Companies Act 2006. All income and expenditure derive from continuing activities.

8

Birmingham Pen Trade Heritage Association

Balance Sheet as at 31 March 2023

Notes
Fixed Assets:
Tangible assets
12
Heritage assets
13
Current Assets:
Stock
14
Debtors
15
Cash at bank and in hand
Total Current Assets
Creditors: amount falling due within 1 year
16
Net Current Assets
Total Net Assets
The Funds of the Charity:
Restricted funds
17
Unrestricted funds:
Designated funds
18
General funds		 £
-
10,327
71,825		 2022
£
22,408
5,083		 £
-
17,814
76,122		 2021
(restated)
£
38,836
5,083
27,491
79,085		 43,919
90,319
82,152
(3,067)		 93,936
(3,617)
27,491
28,147		 43,919
39,097
106,576 134,238
50,938
55,638		 51,222
83,016
106,576 134,238

The Annual Report & Financial Statements were approved and authorised for issue by the Board of Trustees of the Museum on and signed on behalf of the Board of Trustees:

Chair Andrew Munro Dated: 10 July 2023

9

Birmingham Pen Trade Heritage Association

Notes to the Financial Statements for the year ended 31 March 2023

1 Accounting Policies

1.1 Basis of Preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Charities SORP (FRS 102) 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

1.2 Going Concern

As reported in the financial statements, the Museum made a deficit for the year, arising as a result of the income generated through the number of visitors not meeting the expenditure associated with running the Museum. The Trustees are fully aware of the Museum’s financial position and plan to actively make applications to appropriate charitable trusts and foundations to seek funds to support its work and cover any operating deficits whilst it continues to work to increase its visitor numbers. The Trustees have considered the finance forecasts for the next twelve months and based on the current level of visitors, even without additional funding support, they are satisfied with the Museum’s ability to continue as a going concern and Financial Statements are drawn up on the going concern basis.

1.3 Income

Income from admission to the Museum is recognised on the date the ticket is purchased, except for special events when the income is recognised on the date the event takes place.

Income from charitable donations and grants, both of a capital and revenue nature, are recognised when the Charity has entitlement to the funds, and it is probable that the income will be received. They are accounted for gross when receivable, including gifts in kind at estimated valuation. Donations and grants with conditions attached to them are credited to restricted funds and any unspent amounts are shown on the balance sheet as restricted funds. Where the restricted income is to fund capital expenditure the restricted fund is released and transferred to unrestricted funds on the purchase of the capital item.

Trading income represents income from retail activities and classes at the Museum and is recognised as earned.

1.4 Expenditure

All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of resources. Costs relating to a particular activity comprise both costs that can be allocated directly to such activities and support costs; being those costs of an indirect nature necessary to support them.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Direct charitable expenditure includes the direct costs and depreciation related to activities undertaken by the Museum. Support costs are shared across more than one activity undertaken by the Museum and include governance costs, payroll, administration, and information technology.

10

Birmingham Pen Trade Heritage Association

Notes to the Financial Statements for the year ended 31 March 2023

1.5 Fixed Assets

(a) Operational Assets

Tangible fixed assets are stated at cost less depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, using the straight-line method, as follows:

Fixtures, fittings, plant, and equipment over 4 to 10 years

(b) Heritage Assets

Heritage assets (in other words, with a few exceptions, its accessioned collections) are mostly donated items, irreplaceable and to be held in perpetuity. In the few cases where collection items were purchased by the Museum and so a cost is known, they are stated at cost. Heritage assets are not depreciated.

Establishing valuations for the entirety of the Museum’s collection is considered unrealistic, prohibitively expensive.

1.6 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.7 Creditors

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.8 Funds and Reserves Accounting

The Museum maintains three types of funds and reserves as follows.

11

Birmingham Pen Trade Heritage Association

Notes to the Financial Statements for the year ended 31 March 2023

2 Summary of Voluntary Income

Unrestricted
Funds 2023
Restricted
Funds 2023
£
£
Donations
3,137
175
Memberships
745
-
3,882
175
Grants
-
-
3,882
175
3
Visitor Admission to the Museum
Admission
4
COVID-19 Support Funding and Claims
Culture Recovery Fund
Insurance claim
5
Ancillary Trading Activities
Retail sales
Classes		 Unrestricted
Funds 2023
Restricted
Funds 2023
£
£
3,137
175
745
-
Unrestricted
Funds 2022
Restricted
Funds 2022
£
£
1,551
-
1,244
-
3,882
175
-
-		 2,795
-
-
3,375
3,882
175		 2,795
3,375
2023
2022
£
£
30,100
5,498
30,100
5,498
2023
2022
£
£
-
120,639
981
-
981
120,939
2022
2021
£
£
14,227
2,967
5,335
-
19,612
2,967

12

Birmingham Pen Trade Heritage Association

Notes to the Financial Statements for the year ended 31 March 2023

6
Analysis of Expenditure
Raising Funds
Ancillary trading activities
Total Cost
Charitable Activities
Opening and operating the Museum
Total Cost
Total All Costs		 Staff Costs
Other Costs
Support
Costs
Total
2023
£
£
£
£
1,821
7,863
361
10,045
1,821
7,863
361
10,045
16,390
52,726
3,251
72,367
16,390
52,726
3,251
72,367
18,211
60,589
3,612
82,412

Support costs are allocated on the basis of direct expenditure.

Governance
Administration
8
Analysis of Governance Costs
Independent examination fees
9
Net Income/Expenditure for the Year
This is stated after charging:
Operating leases
Depreciation
Examiner’s remuneration:
Independent examination fee
Payroll, accountancy, and tax services		 Staff Costs
Other Costs
£
£
-
930
-
2,682		 Total
2023
Total
2022
£
£
930
930
2,682
7,137
-
3,612		 3,612
8,067
2023
2022
£
£
930
930
930
930
2023
2022
£
£
20,656
20,070
16,428
10,459
930
930
-
240

13

Birmingham Pen Trade Heritage Association

Notes to the Financial Statements for the year ended 31 March 2023

10 Trustees Remuneration

None of the Trustees received any remuneration or benefits during the year. Two Trustees were reimbursed out-of-pocket expenses totalling £160. (2022: two totalling £137).

11 Employees

The average monthly headcount of contracted employees during the year was 1 (2021: 1) and no employee earned £60,000 or more.

Employment Costs:

Employment Costs:
Wages and salaries
National Insurance costs
Pension costs		 2023
2022
£
£
17,858
14,386
-
-
353
712
18,211
15,098

12 Tangible and Intangible Fixed Assets

Cost
At 1 April 2022
Disposals
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the period
Depreciation on disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Fixtures
and
fittings
Office
equipment
Total
£
£
£
7,553
48,261
55,814
(5,966)
-
(5,966)
1,587
48,261
49,848
6,860
10,118
16,978
341
16,087
16,428
(5,966)
-
(5,966)
1,235
26,205
27,440
352
22,056
22,408
693
38,143
38,836

14

Birmingham Pen Trade Heritage Association

Notes to the Financial Statements for the year ended 31 March 2023

13
Heritage Assets
Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Additions
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
14
Stock
Stock
15
Debtors
Trade debtors
Other debtors
Prepayments and accrued income
16
Creditors: Amounts Falling Due Within One Year
Trade creditors
Accruals and deferred income		 2023
£
-		 £
5,083
-
5,083
-
-
-
5,083
5,083
2022
£
-
2023
£
160
8,453
1,714		 2022
£
-
8,453
9,361
10,327 17,814
2023
£
-
3,067		 2022
£
1,141
2,476
3,067 3,617

15

Birmingham Pen Trade Heritage Association

Notes to the Financial Statements for the year ended 31 March 2023

17 Restricted Funds

HB Allen Fund
Birmingham Common Good
Education projects
Collections
Website development
Books		 Balance at 1
April 2022
Incoming
Funds
Resources
Expended
Transfers
Balance at
31 March
2023
£
£
£
£
£
43,039
-
-
-
43,039
2,500
-
-
-
2,500
1,459
175
-
-
1,634
2,200
-
(165)
-
2,035
1,874
-
(289)
-
1,585
150
-
(5)
-
145
51,222
175
(459)
-
50,938

The HB Allen fund is for educational purposes.

18 Designated Funds

Fixed assets reserve Balance at 1
April 2022
New
Designations
Utilised
funds
Transfers
Balance at
31 March
2023
£
£
£
£
£
43,919
-
16,428
-
27,491
43,919
-
16,428
-
27,491

Designated funds are unrestricted funds, but nevertheless designated by the Trustees for the particular purposes of a fixed capital reserve.

19 Analysis of Net Assets between Funds

Unrestricted
funds		 Restricted
funds		 Total
£ £ £
Fund balances at 31 March 2023 are represented by:
Tangible fixed assets 27,491 - 27,491
Net current assets 28,147 50,938 79,085
55,638 50,938 106,576

20 Related Party Disclosures

Mr A C Munro, chair of the Museum, is the director of Midlands Industrial Association Limited. During the year, The Birmingham Pen Trade Heritage Association paid Midlands Industrial Association Limited £20,656 (2022: £20,341) relating to rent and service charges for three units and electricity charges for one unit.

16

Birmingham Pen Trade Heritage Association

Notes to the Financial Statements for the year ended 31 March 2023

21 Comparative Funds Notes

Restricted Funds

Restricted Funds
Balance at 1
April 2021
Incoming
Funds
Resources
Expended
Transfers
Balance at
31 March
2022
£
£
£
£
£
HB Allen Fund (educational)
43,489
-
(450)
-
43,039
Birmingham Common Good
1,000
1,500
-
-
2,500
Education projects
1,309
150
-
-
1,459
Collections
2,200
-
-
-
2,200
Website development
2,600
-
(726)
-
1,874
Books
150
-
-
-
150
Storage for Collections
(1,725)
1,725
-
-
-
49,023
3,375
(1,176)
-
51,222
Designated Funds
Balance at 1
April 2021
New
Designations
Utilised
funds
Transfers
Balance at
31 March
2022
£
£
£
£
£
Fixed assets reserve
6,117
48,261
10,459
-
43,919
6,117
48,261
10,459
-
43,919
Analysis of Net Assets between Funds		 Balance at 1
April 2021
Incoming
Funds
Resources
Expended
Transfers
Balance at
31 March
2022
£
£
£
£
£
43,489
-
(450)
-
43,039
1,000
1,500
-
-
2,500
1,309
150
-
-
1,459
2,200
-
-
-
2,200
2,600
-
(726)
-
1,874
150
-
-
-
150
(1,725)
1,725
-
-
-
49,023
3,375
(1,176)
-
51,222
Balance at 1
April 2021
New
Designations
Utilised
funds
Transfers
Balance at
31 March
2022
£
£
£
£
£
6,117
48,261
10,459
-
43,919
6,117
48,261
10,459
-
43,919
Fund balances at 31 March 2022 are represented by:
Tangible fixed assets
Net current assets		 Unrestricted
funds
Restricted
funds
Total
£
£
£
43,919
-
43,919
39,097
51,222
90,319
83,016
51,222
134,238
Analysis of Net Assets between Funds
Unrestricted
funds		 Restricted
funds		 Total
£ £ £
Fund balances at 31 March 2022 are represented by:
Tangible fixed assets 43,919 - 43,919
Net current assets 39,097 51,222 90,319
83,016 51,222 134,238

17