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2024-03-31-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 2024

www.penmuseum.org.uk

Birmingham Pen Trade Heritage Association

Contents

Reference & Administrative Information 2
Trustees’ 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 2024

Administrative Information

Alternative name: The Pen Museum
Trustees: Oliver Buckley
Craig Edmondson
Nigel Evans
Carmel Girling
Steven Hearn
Andrew Munro
David Prince
Co-opted Trustees: Helen Shute
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 2024

Trustees’ Review of the Year

The year was something of a double-edged sword. Firstly, Museum Managers Priya Chauhan and Katie Rickett both moved on. Long serving trustee Tony Berry also resigned through ill health, we wish them all well for the future all having made some excellent contributions to the work of the Museum. On the plus side, we have recruited a new museum manager Olivia Stuck from April 2024 onwards.

Visitor numbers have held up and improved which, with the help of a vibrant museum shop has cut our normal annual operating deficit before depreciation from £11,234 to £3,795 for the year ended 31 March 2024. Just as encouragingly our feedback forms show a satisfaction rating of over 80 per cent of our visitors marking us as a five-star experience.

Just after the end of the year, we were successful in securing £7,000 of funding from Garfield Weston Foundation and we thank them for their kind support. It will be a massive boost to our finances over the next year. In terms of other fund raising, we have had a number of group visits ranging from History Groups and Schools, Colleges and Universities to Home Educated Students and Charity Groups.

To add to this income raising, our retail display presence at the Library of Birmingham has contributed to revenue as has outreach talks given to various organisations.

I would like to thank our landlords, Midlands Industrial Association for their continuing support. This thanks also extends to all our trustees, particularly Andy Munro who has recently vacated the role of Chair for personal reasons, Nigel Evans (Secretary) and Carmel Girling (Marketing) and also thanks to newly elected Trustees Oliver Buckley and David Prince.

Thanks also to Jackie Hancox who retired from the board of trustees in September 2023, Jackie was a member of the original board of trustees in 2001 and also served as Minutes Secretary for many years, Isabel Churcher also resigned from the board in 2023 to pursue other interests we thank Jackie and Isabel for their support and input.

Finally, our trusted duty managers, Amy Guo, Val Bache, Larry Hanks, and Rob Stanyard without whom we could not function.

Birmingham Pen Trade Heritage Association Trustees.

3

Birmingham Pen Trade Heritage Association

Trustees’ Report for the Year Ended 31 March 2024

The Trustees present their report and financial statements for the year ended 31 March 2024.

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:

Anthony Berry (resigned 31 January 2024) Oliver Buckley (appointed 30 September 2023) Isabel Churcher (resigned 13 November 2023) Craig Edmondson Nigel Evans Carmel Girling Jacqueline Hancox (resigned 30 September 2023) Steve Hearn Andrew Munro David Prince (appointed 30 September 2023)

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 2024

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, that for the majority of the year we have been able to continue to open the Museum to visitors four days a week, Thursday to Sundays, which enabled us to welcome 5,389 visitors to the Museum across the year. Furthermore, we welcomed 127 students through school, college and university group visits. We also held 15 Calligraphy Classes and workshops across the year.

Financial Review

Income for the year amounted to £66,785, of which £65,910 was unrestricted, whilst expenditure totalled £87,019, of which £84,597 was unrestricted. This means that the Museum had a net decrease in unrestricted funds of £18,687 and a net decrease in restricted funds of £1,547, resulting in a balance of total funds of £106,576 at 31 March 2024.

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 2024 the general funds balance was £25,899.

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 2024

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.

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

Trustee

Dated: 08 July 2024

6

Independent Examiners’ Report to the Members of Birmingham Pen Trade Heritage Association for the Year Ended 31 March 2024

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[9 July 2024]

7

Birmingham Pen Trade Heritage Association

Statement of Financial Activities including Income and Expenditure Account for the Year Ended 31 March 2024

Notes
Income
Voluntary income:
Charitable donations & subscriptions
2
Grants
2
Charitable Activities:
Admission to the Museum
3
COVID-19 support funding & claims
4
Activities for generating funds:
Ancillary trading activities
5
Investment income
Interest
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 2023
Total Funds carried forward at 31 March 2024		 Unrestricted
Funds
£
2,971
-
35,643
-
26,464
832		 Restricted
Funds
Total
2024
£
£
175
3,146
700
700
-
35,643
-
-
-
26,464
-
832		 Total
2023
£
4,057
-
30,100
981
19,612
-
65,910 875
66,785		 54,750
-
11,552
2,422
75,467
11,552 10,045
73,045 72,367
84,597 2,422
87,019		 82,412
(18,687) (1,547)
(20,234)		 (27,662)
- -
-		 -
(18,687) (1,547)
(20,234)		 (27,662)
55,638 50,938
106,576		 134,238
36,951 49,391
86,342		 106,576

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 2024

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		 £
-
11,498
69,196		 2024
£
5,969
5,083		 £
-
10,327
71,825		 2023
£
22,408
5,083
11,052
75,290		 27,491
79,085
80,694
(5,404)		 82,152
(3,067)
11,052
25,899		 27,491
28,147
86,342 106,576
49,391
36,951		 50,938
55,638
86,342 106,576

The Annual Report & Financial Statements were approved and authorised for issue by the Board of Trustees of the Museum on 08 July 2024 and signed on behalf of the Board of Trustees:

Trustee

Dated: 08 July 2024

9

Birmingham Pen Trade Heritage Association

Notes to the Financial Statements for the year ended 31 March 2024

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 2024

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 3 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 2024

2 Summary of Voluntary Income

Donations
Memberships
Grants		 Unrestricted
Funds 2024
Restricted
Funds 2024
Unrestricted
Funds 2023
Restricted
Funds 2023
£
£
£
£
2,078
175
3,137
175
893
-
745
-
2,971
175
3,882
175
-
700
-
-
2,971
875
3,882
175

3 Visitor Admission to the Museum

Admission
COVID-19 Support Funding and Claims
Insurance claim
Ancillary Trading Activities
Retail sales
Classes
Room Hire		 2024
2023
£
£
35,643
30,100
35,643
30,100
2024
2023
£
£
-
981
-
981
2024
2023
£
£
20,868
14,227
5,031
4,633
565
702
26,464
19,612

12

Birmingham Pen Trade Heritage Association

Notes to the Financial Statements for the year ended 31 March 2024

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
2024
£
£
£
£
1,427
9,831
294
11,552
1,427
9,831
294
11,552
12,841
59,976
2,650
75,467
12,841
59,976
2,650
75,467
14,268
69,807
2,944
87,019

Support costs are allocated on the basis of direct expenditure.

7 Analysis of Support Costs

Governance
Administration		 Staff Costs
Other Costs
Total
2024
Total
2023
£
£
£
£
-
930
930
930
-
2,014
2,014
2,682
-
2,944
2,944
3,612

8 Analysis of Governance Costs

Independent examination fees 2024
2023
£
£
930
930
930
930

9 Net Income/Expenditure for the Year

2024 2023
£ £
This is stated after charging:
Operating leases 24,026 20,656
Depreciation 16,439 16,428
Examiner’s remuneration:
Independent examination fee 930 930
Payroll, accountancy, and tax services - -

13

Birmingham Pen Trade Heritage Association

Notes to the Financial Statements for the year ended 31 March 2024

10 Trustees Remuneration

None of the Trustees received any remuneration or benefits during the year. Two Trustees were reimbursed out-of-pocket expenses totalling £136. (2023: two totalling £160).

11 Employees

The average monthly headcount of contracted employees during the year was 1 (2023: 1) and no employee earned £60,000 or more.

Employment Costs:

Employment Costs:
Wages and salaries
National Insurance costs
Pension costs		 2024
2023
£
£
13,382
17,858
781
-
105
353
14,268
18,211

12 Tangible and Intangible Fixed Assets

Cost
At 1 April 2023
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the period
Depreciation on disposals
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023		 Fixtures
and
fittings
£
1,587
-		 Office
equipment
£
48,261
-		 Total
£
49,848
-
1,587 48,261 49,848
1,235
352
-		 26,205
16,087
-		 27,440
16,439
-
1,587 42,292 43,879
- 5,969 5,969
352 22,056 22,408

14

Birmingham Pen Trade Heritage Association

Notes to the Financial Statements for the year ended 31 March 2024

13
Heritage Assets
Cost
At 1 April 2023
Additions
At 31 March 2024
Depreciation
At 1 April 2023
Additions
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023
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		 2024
£
-		 £
5,083
-
5,083
-
-
-
5,083
5,083
2023
£
-
2024
£
110
8,453
2,935		 2023
£
160
8,453
1,714
11,498 10,327
2024
£
1,312
4,092		 2023
£
-
3,067
5,404 3,067

15

Birmingham Pen Trade Heritage Association

Notes to the Financial Statements for the year ended 31 March 2024

17 Restricted Funds

HB Allen Fund
Birmingham Common Good
Education projects
Collections
Website costs
Marketing banners
Books		 Balance at 1
April 2023
Incoming
Funds
Resources
Expended
Transfers
Balance at
31 March
2024
£
£
£
£
£
43,039
-
535
-
42,504
2,500
700
753
-
2,447
1,634
175
-
-
1,809
2,035
-
-
-
2,035
1,585
-
258
(876)
451
-
-
876
876
-
145
-
-
-
145
50,938
875
2,422
-
49,391

The HB Allen fund is for the development of an education/activity room and the Birmingham Common Good fund is for capital items.

18 Designated Funds

Fixed assets reserve Balance at 1
April 2023
New
Designations
Utilised
funds
Transfers
Balance at
31 March
2024
£
£
£
£
£
27,491
-
16,439
-
11,052
27,491
-
16,439
-
11,052

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

Fund balances at 31 March 2024 are represented by:
Tangible fixed assets
Net current assets		 Unrestricted
funds
Restricted
funds
Total
£
£
£
11,052
-
11,052
25,899
49,391
75,290
36,951
49,391
86,342

20 Related Party Disclosures

Mr A C Munro, a trustee 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 £24,026 (2023: £20,656) 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 2024

21 Comparative Statement of Financial Activity and Funds Notes

Statement of Financial Activity

Statement of Financial Activity Statement of Financial Activity
Income
Voluntary income:
Charitable donations & subscriptions
Grants
Charitable Activities:
Admission to the Museum
COVID-19 support funding & claims
Activities for generating funds:
Total Income
Expenditure
Raising Funds:
Other trading activities
Charitable Activities:
Opening and operating the Museum
Total Expenditure
Net Income/(Expenditure) before taxation
Restricted Funds
Balance at 1
April 2022
Incoming
Funds
£
£
HB Allen Fund (educational)
43,039
-
Birmingham Common Good
2,500
-
Education projects
1,459
175
Collections
2,200
-
Website development
1,874
-
Books
150
-
Storage for Collections
51,222
175
Designated Funds
Balance at 1
April 2022
New
Designations
£
£
Fixed assets reserve
43,919
-
43,919
-		 Unrestricted
Funds
2023
Restricted
Funds
2023
Total
2023
£
£
£
3,882
175
4,057
-
-
-
30,100
-
30,100
981
-
981
19,612
-
19,612
54,575
175
54,750
10,045
-
10,045
71,908
459
72,367
81,953
459
82,412
(27,378)
(284)
(27,662)
Resources
Expended
Transfers
Balance at
31 March
2023
£
£
£
-
-
43,039
-
-
2,500
-
-
1,634
(165)
-
2,035
(289)
-
1,585
(5)
-
145
51,222
175		 (459)
-
50,938
Balance at 1
April 2022
New
Designations
£
£
43,919
-		 Utilised
funds
Transfers
Balance at
31 March
2023
£
£
£
16,428
-
27,491
43,919
-		 16,428
-
27,491

17

Birmingham Pen Trade Heritage Association

Notes to the Financial Statements for the year ended 31 March 2024

21 Comparative Statement of Financial Activity and Funds Notes (cont.)

Analysis of Net Assets between Funds

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

18