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2022-03-31-accounts

London Transport Museum Friends

Financial Statements

For the period 1 January 2021 to

31 March 2022

Registered Charity Number 1185277

LONDON TRANSPORT MUSEUM FRIENDS

FOR THE PERIOD 1 JANUARY 2021 TO 31 MARCH 2022

CONTENTS PAGE
Information 2
Charity Trustees’ Report (including ‘The Team’) 3-8
Independent Examiner’s Report 9
Statement of Financial Activities 10
Balance Sheet 11
Cash Flow Statement 12
Notes to the Financial Statements 13-16
Income and Expenditure Account 17

Front cover: Engine overhaul to “RM1”, the prototype Routemaster bus:

Restoration work on “Q Stock” car number 4417

Back cover: Friends Heritage bus team at the London Bus Museum at Brooklands

Original ticket office from Charing Cross (Jubilee line) station, now preserved by the London Transport Museum

1

LONDON TRANSPORT MUSEUM FRIENDS

INFORMATION AS AT 31 MARCH 2022

CHAIRMAN OF TRUSTEES Michael Southgate
SECRETARY Susan Gilbert
TREASURER David Martin, FCA
REGISTERED OFFICE Albany House
98 Petty France
London
SW1H 9EA
Independent Examiners Amy Beecroft, FCA
Chartered Accountant
19, Newton Road,
Lindfield
Haywards Heath,
West Sussex
RH16 2NB
BANKERS HSBC Bank Plc
129 New Bond Street
London W1S 1EA
CAF Bank Ltd
25 Kings Hill Avenue
Kings Hill
West Malling
Kent ME19 4JQ

2

LONDON TRANSPORT MUSEUM FRIENDS

TRUSTEES’ REPORT FOR THE PERIOD 1 JANUARY 2021 TO 31 MARCH 2022

The Trustees present their second Report and Financial Statements of the London Transport Museum Friends (“Friends”) for the period from 1[st] January 2021 to 31[st] March 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Friends’ constitution, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102). On 8[th] October 2021, the trustees changed the Charity’s financial year-end to 31[st] March, in order to bring the Charity’s reporting in-line with that of the London Transport Museum (“the Museum”).

OBJECTIVES & PRINCIPAL ACTIVITIES FOR THE PUBLIC BENEFIT

The principal activity of the Charity is the advancement of public education in the history of transport, in particular by assisting and encouraging the work and activities of the London Transport Museum located in Covent Garden, London, including work and activity carried out jointly or in co-operation with any other museum, art gallery, preservation society or similar organisation.

REVIEW OF THE BUSINESS

The London Transport Museum Friends was registered as a Charitable Incorporated Organisation (‘CIO’) (Charity Registered number: 1185277) on 12 September 2019. The CIO’s work is entirely reliant on income raised by the Friends to support the Museum primarily from the following sources:

  1. Individual Friends’ membership fees

  2. Income from legacies

  3. Donations, including those from the sale of donated memorabilia, such sales being held at open weekends at the Museum’s Acton Depot, and elsewhere, talks to external groups, and special fundraising projects.

Income from legacies

The opportunity to suggest leaving a legacy in favour of this CIO is taken wherever possible, including appropriate reference on the Friends’ website and in the Friends’ News magazine.

Heritage Trains Fund

The Friends have accumulated substantial funds for the Heritage Trains fund, which is currently focused on the restoration of three “Q Stock” underground train cars from the 1920s and 1930s. In addition, the Friends decided in 2007 to transfer £250,000 from their general fund to the Project. During 2016 a Project Manager appointment was and is continuing to be funded from the Friends’ Heritage Trains fund. As project plans develop, a view will need to be taken on whether this fund alone will be sufficient to cover project costs in total, or whether a further allocation of funds (possibly from the legacies and/or further specific appeals) will be necessary. The latest budgeted expenditure to complete the project, subject to any new operational requirements, is in the region of £490,000.

3

LONDON TRANSPORT MUSEUM FRIENDS

THE TEAM

___________

Colin Hamling Michael Southgate Chairman ( retired 17 June 2021 appointed 16 June 2021)

Oliver Green Trustee Without Portfolio

Barry LeJeune Trustee Chief Executive Officer

Graham Miller Trustee Grant Management & Project Oversight

John Kateley Trustee Friends’ Events

Philip Thrower Trustee Governance and Risk Management

David Martin Trustee Hon Treasurer (Appointed 1 January 2021)

Dr Olivia Carlton Trustee Membership & Recruitment

Sam Mullins Trustee as Director of the London Transport Museum

Susan Gilbert Trustee and General Secretary

Colin Hamling Chairman (retired 17 June 2021)

4

LONDON TRANSPORT MUSEUM FRIENDS

STRUCTURE, GOVERNANCE AND MANAGEMENT

______________

The Charity is registered, number 1158277, and is governed by its constitution as a Charitable Incorporated Organisation (“CIO”).

TRUSTEES

New trustees are appointed by invitation following open advertisement encompassing media where the organisation can attract applicants from those areas where it is low in representation - in particular women and BAME - and subsequent interviews. There are no nomination rights. At the trustees’ meetings, the trustees agree the broad strategy and areas of activity for the Charity, including consideration of grant making, investment, reserves and risk management policies and performance. The Charity operates through the Trustees’ Meeting, which make decisions by consensus or straight votes. Trustees throughout the period 2021/22 were as follows:

Trustees Michael Southgate Chairman of the Trustees
(appointed 16 June 2021)
Colin Hamling Chairman of the Trustees
(retired 17 June 2021)
Barry LeJeune Trustee & Chief Executive Officer
Sam Mullins Trustee (as Director of the Museum)
Graham Miller Trustee & Grant Management & Project Oversight
Dr. Olivia Carlton Trustee & Membership and Recruitment
Philip Thrower Trustee & Governance and Risk Management
John Kateley Trustee & Friends’ Events
Oliver Green Trustee & Collections Development
Susan Gilbert Trustee & General Secretary
David Martin Trustee & Treasurer
(appointed 1 January 2021)

All Trustees serve in an honorary capacity.

5

LONDON TRANSPORT MUSEUM FRIENDS

TRUSTEES’ ANNUAL REPORT

VOLUNTEERS

Approximately 175 members and other volunteers undertake a variety of voluntary roles in support of the Museum. For the past few years, it has been an important part of the Friends’ policy to actively encourage members to commit themselves to such voluntary tasks. Some of the types of activity undertaken by Friends’ volunteers include:

The volunteer service was created by a joint Friends’/Museum Working Party and is bound by the Museum policies and practices.

Part of the Friends’ volunteering policy is to further expand the use of volunteer members as this provides an opportunity for them to become involved in the Museum’s work. This is clearly helpful to the Museum as it provides the Museum’s staff with a skilled and enthusiastic voluntary workforce. It also enables those members who volunteer to achieve greater fulfillment from their membership through the use of their varied personal skills. The many hours of work contributed by volunteers each year constitutes a valuable cost-free resource for the Museum.

A member of the Museum’s staff manages the volunteer effort.

GRANT MAKING POLICY

The Friends has established its grant making policy to achieve its objects for the public benefit. The grants are made for specific projects, including artifact purchase and conservation, and community based education programmes on the basis of an annual budget, priorities for which are agreed by the trustees in consultation with the Museum’s curatorial staff. The sizes of the grants vary with the funds available in any year.

RESERVES POLICY

The Trustees have agreed that cash reserves broadly equivalent to one year’s day-to-day expenditure should normally be maintained in the General Fund as a buffer against loss of income, together with sufficient Working Capital for day-to-day operations.

The Heritage Trains fund remains open and since funds required are likely to exceed those in reserve, the Museum and Friends will commence fundraising for the balance. Funds will be released progressively as resources are available to undertake the work described above, now that the final scope of the project for which it is intended has been established.

Accounting policies are set out in the Notes to the Financial Statements which follow.

RISK MANAGEMENT

The Trustees have assessed the major risks to which the Friends’ charity is exposed on an ongoing basis and are satisfied that systems are in place to reduce exposure to these risks.

6

LONDON TRANSPORT MUSEUM FRIENDS

______________

GOVERNANCE POLICY

The Charity complies with its Charitable Incorporation Organisation constitution, its Organisation and Arrangements document and its various operational policies. It meets the aspirations of the Charity Code published in July 2017.

FRIENDS MEMBERSHIP

At the year-end there were 2,679 (2020: 2,745) members spread over both individual and household memberships. This drop occurred largely because we were denied the recruitment opportunities from Museum visitors during temporary Covid-related closures, and from the two cancelled Acton Depot Open Weekends.

ACTIVITIES DURING 2021/22 The Year in Retrospect

This report exceptionally covers a 15 month period from 1[st] January 2021 to 31[st] March 2022. This is in accordance with the Trustees’ decision to move the Friends’ accounting period from the calendar to the financial year, to align with the accounting practice of the London Transport Museum. The change facilitates the reconciliation of grant payments from the Friends to the Museum.

The 2021/2 year was inevitably one of continuing frustration brought about by the ongoing Covid restrictions; but this sense of frustration, especially in the ability of both Friends and Museum to move forward a number of planned projects, was tempered by achievements in delivering benefits to members, despite the practical challenges of lockdown and other restrictions.

Support for Museum projects totalled £105,546, including: £18,563 on vehicle restoration; £17,000 for a Library Management System (which enables the Library catalogue to go on line for the first time, thereby reaching a global audience); and £37,000 towards the Acton Community Programme, designed to identify ways in which the Depot can be made more relevant and accessible to its local communities.

There was progress with the Q-stock train restoration project. The interior restoration work on driving motor car 4417 was completed, once volunteers were able to resume work on site at Acton from August 2021. At the end of the financial year, the volunteers were preparing to start similar work on car 4416. A specification has been written for the body work restoration on the two brake vans (needed as match cars to enable the Q-stock train to operate on Underground tracks - with new signalling compliance - and potentially on heritage railways elsewhere). Constructive dialogue was established with TfL Procurement to progress the placing of the contact for this work later in 2022.

A full programme of Friends’ meetings was maintained, largely by recordings on YouTube. The wide variety of knowledgeable speakers attracted significant audiences, which enabled the Friends’ to maintain a high profile, in support of the Museum, at times when live events were not possible. The Friends’ live meetings and visits programme restarted in Autumn 2021, when restrictions were relaxed.

“Bumper” (48-52 pages) issues of the Friends News magazine were published at the planned quarterly intervals. These were supplemented by regular enews updates by email.

Management meetings throughout the year were largely conducted by ZOOM. All administrative functions, including membership renewals, were maintained by members of the Friends’ voluntary

7

management team working from home. At the end of the financial year, plans were being developed for a phased return to working from the offices at Albany House.

The sales of donated goods continued, when possible, at Acton Depot and at external events, supplemented by on-line sales. The 15 month sales total came to an impressive £29,863. The Friends also benefited from a number of bequests in 2021/22, including a substantial sum from the estate of the late John Hillman.

Membership figures remained fairly static throughout the 15 month period, standing at 2,679 at 31[st] March. The losses of just over 300 during the pandemic period are broadly in line with normal turnover. These losses would usually have been balanced by new members recruited especially at Depot Open Weekends, all but one of which were cancelled in 2021.

Once volunteering restarted in Autumn 2021, Friends resumed their support for various Museum projects, including Q-stock (as mentioned above); the Heritage Underground Engineering display at Acton Depot (based on a former 1967 Victoria Line car); the Underground signaling display, also at Acton; and the preparation of the Museum’s heritage vehicles for attendance at outside events, which resumed in early April 2022.

Future Expenditure Plans

Proposed grants to London Transport Museum for the 12 month period to 31[st] March 2023 cover the following projects:

Scoping of restoration of pre-WW2 buses £ 15,000 Scoping of restoration of pre-WW2 buses £ 15,000
LT165 engine overhaul 3,000
Repairs to C&SLR rail car, District Line Q-stock car (Covent Garden)
and Met.400 coach 9,000
1967 Tube stock exhibit 3,000
Signalling exhibit 2,000
Day-to-day heritage bus operations 9,000
Vehicle interpretation at events 9,000
Acquisitions for the Museum and its library 5,000
Volunteering for All (widening scope and benefits of volunteering) 25,000
Grant towards repair to Covent Garden lifts & coolers (in support of bid
to external funders) 33,000
Additional curatorial assistant post for heritage vehicles
 30,000
including Heritage Trains (“Q Stock”) (with a further £430,000
budgetted over the next 3 years) 60,000
Provision for further support for applications to external funders 25,000

TOTAL £228,000

Susan Gilbert: Hon Secretary Dated: 18 July 2022

8

LONDON TRANSPORT MUSEUM FRIENDS

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES

I report to the trustees on my examination of the accounts of London Transport Museum Friends’ financial statements for the period 1 January 2012 to 31 March 2022.

Responsibilities and basis of report

The CIO’s trustees are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (the Charities Act).

I report in respect of my examination of the Charity’s accounts carried out under section 145 of the Charities Act 2011 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 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:

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.

Amy Beecroft FCA Chartered Accountant 19 Newton Road Lindfield Haywards Heath West Sussex RH16 2NB

Dated: 18 July 2022

9

LONDON TRANSPORT MUSEUM FRIENDS

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE PERIOD 1 JANUARY 2021 TO 31 MARCH 2022

Income and endowments
Donations and legacies
Investment Income
Total income
Expenditure on:
Investment & management costs
Charitable activities:
Grant making
Fund raising
Visits
Total expenditure
Net income and movement in
funds
Reconciliation of Funds
Total funds brought forward:-
at 1stJanuary 2022
From the Friends of the
London Transport Museum
Funds carried forward		 Note
4
5
6		 UNRESTRICTED
FUNDS
2021/22
£
202,206
696
202,902
58,303
96,597
1,633
4,272
102,502
160,805
42,097
305,759
347,856		 RESTRICTED
FUNDS
2021/22
£
5,604
3,395
8,999
808
8,949
-
-
8,949
9,757
(758)

433,645
432,887		 TOTAL
FUNDS
2021/22
£
207,810

4,091
211,901

59,111
105,546
1,633
4,272

111,451
170,562
41,339
739,404

780,743
 TOTAL
FUNDS
2020
£
100,938
4,527
105,465
48,699
47,739
827
(258)
48,308
97,007
8,458
730,946
739,404

10

LONDON TRANSPORT MUSEUM FRIENDS

BALANCE SHEET AS AT 31 MARCH 2022

CURRENT ASSETS
Debtors
Short Term Deposits
Cash at Bank and in Hand
CURRENT LIABILITIES
Creditors
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CAPITAL AND RESERVES
Fund Balances		 Note
8
9
10
11		 Unrestricted
Funds
2022
£
8,310
323,774
151,261
483,345

135,489
347,856
347,856
347,856		 Restricted
Funds
2022
£
1,054
439,626
1,573
442,253

9,366

432,887

432,887

432,887
 Total
Funds
2022
£
9,364
763,400
152,834
925,598
144,855
780,743_
780,743
780,743		 Total
Funds
31/12/20
£
22,376
543,716
209,689
775,781
36,377
739,404
739,404
739,404






Notes at pages 13 to 16 form part of these accounts

Approved by the Trustees on 18 July 2022

Signed by:

Michael Southgate Chairman

11

LONDON TRANSPORT MUSEUM FRIENDS

STATEMENT OF CASH FLOWS

FOR THE PERIOD 1 JANUARY 2021 TO 31 MARCH 2022

Notes




Cash flows from investing activities
Interest received
Net cash provided by financial activities
Change in cash and cash equivalents in the year
Cash and cash equivalent brought forward
(2020: following the closure of the Friends of
the London Transport Museum)
Cash and cash equivalents carried forward
12




Total
Funds
2022
£



(60,946)
4,091
(56,855)
(56,855)
209,689
_-
152,834



Total
Funds
2020
£
(525,784)
4,527
(521,257)
(521,257)
-
730,946
209,689








12

LONDON TRANSPORT MUSEUM FRIENDS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD 1 JANUARY 2021 TO 31 MARCH 2022

1. TRUSTEES’ RESPONSIBILITIES

The Trustees acknowledge their various accounting responsibilities, in particular the requirements to maintain proper and accurate accounting records and the need to safeguard assets and take reasonable steps for the prevention and detection of fraud and other irregularities. In addition, the Trustees also acknowledge their responsibility for the Financial Statements, which have been prepared from the accounting records.

The Financial Statements are required to give a true and fair view. To achieve this, the Trustees have chosen accounting policies suitable to the charity, applied them consistently and made judgments on estimates that they consider prudent and reasonable. They have applied the going concern basis of accounting, which they consider appropriate in the circumstances.

2. ACCOUNTING POLICIES

Accounting Convention

The Financial Statements have been prepared under the historical cost convention in accordance with Accounting and Reporting by Charities: Statements of Recommended Practice applicable to charities in the UK and Republic of Ireland (FRS 102), – (Charities SORP (FRS 102)), the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102).

Assets

The Friends own a painting of a Routemaster bus crossing Westminster Bridge by David Shepherd which has been valued at £25,000 but is shown in these accounts at cost (£nil). This was gifted to the Friends of the London Transport Museum and then, on the latter’s closure on 31 December 2019, was transferred at cost (£nil) to the London Transport Museum Friends CIO. It subsequently been loaned to the Museum.

3. CHARITABLE STATUS

The Charity, Friends of the London Transport Museum, was registered on 25 June 1982 (number 285108). However, on 31 December 2019, owing to the change in the Charity’s structure, it ceased to operate with all its assets and liabilities being transferred to London Transport Museum Friends, the new charitable incorporated organisation (CIO), which was registered as a charity (No.1185277) on 12 September 2019 and commenced operations with effect from 1 January 2020.

13

LONDON TRANSPORT MUSEUM FRIENDS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD 1 JANUARY 2021 TO 31 MARCH 2022

4. INVESTMENT AND MANAGEMENT COSTS

Magazine
Office expenses
Accountancy		 Unrestricted
Funds
2021/22
£
39,285
18,368
650
58,303		 Restricted
Funds
2021/22
£
Total
Funds
2021/22
£
-
39,285
808
19,176
-
650
808
59,111		 Total
Funds
2020
£
32,780
15,562
357
48,699

5. CHARITABLE ACTIVITY – GRANT MAKING

Grants to the London Transport
Museum		 Unrestricted
Funds
2021/22
£
96,597		 Restricted
Funds
2021/22
£
8,949		 Total
Funds
2021/22
£
105,546		 Total
Funds
2020
£
47,739

Grants to the Museum were in direct support of artifact purchase, conservation and education projects, but not towards the Museum’s running costs.

6. CHARITABLE ACTIVITY - FUNDRAISING

Publicity Material and Website Unrestricted
Funds
2021/22
£
1,633		 Restricted
Funds
2021/22
£
Total
Funds
2021/22
£
-
1,633		 Total
Funds
2020
£
827

14

LONDON TRANSPORT MUSEUM FRIENDS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD 1 JANUARY 2021 TO 31 MARCH 2022

7. TANGIBLE FIXED ASSETS ( Computer Equipment)



Cost brought forward at 1 January 2021
Accumulated Depreciation
Net Book Value at 31 March 2022


EBTORS
Reimbursement of volunteer expenses
Gift Aid

Interest Receivable
VAT Refund
Donation promised
Sundry Prepayments
 2022

£

2,070
2,070
-

2022
£
6,209
-
1,856
172
250
877
9,364		 2020
£
2,070
2,070
-
2020
£
2,422
17,651
1,872
95
-
336
22,376

8. DEBTORS

9. SHORT TERM DEPOSITS

Short Term Deposits are held mainly in respect of the Heritage Trains Fund Restoration Appeal and future conservation grants and will be released in stages as projects proceed.

10. CREDITORS



Individual Members’ subscriptions attributed
to 2022/23
Grants to the Museum
Gift Aid
Bank charges
Other

 2022
£


30,902
105,565
6,812
409
1,167
144,855



 2020
£
29,824
2,741
-
3,124
688
36,377

11. FUND BALANCE

The unrestricted funds are available to be spent for any of the purposes of the charity. The Heritage Trains Fund Restoration Appeal Fund (Restricted Income Fund) was opened in 2001 with a £100,000 bequest from the Estate of the late Bob Greenaway and has been designated restricted by the Trustees as further contributions have and are being received specifically to facilitate the Heritage Trains Restoration.

15

LONDON TRANSPORT MUSEUM FRIENDS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD 1 JANUARY 2021 TO 1 MARCH 2022

12. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net movements in funds

Interest income shown in investing activities

Decrease (increase) in debtors

(Increase) decrease in short term deposits

Increase (decrease) in creditors

Net cash used in operating activities
 2021/22
£
41,339
(4,091)
13,012
(219,684)
108,478
(60,946)		 2020
£
8,458
(4,527)
(22,376)
(543,716)
36,377
(525,784)

16

LONDON TRANSPORT MUSEUM FRIENDS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD 1 JANUARY 2021 TO 1 MARCH 2022

INCOME & ENDOWMENTS
Donations, legacies and sales
Individual Membership Fees
Gift Aid
OTHER INCOME
Bank Interest
TOTAL INCOME
OVERHEADS
Visits
Direct charitable expenditure
Insurance
Committee expenses
Printing of magazine
Publicity material and Website
Sundries
Postage
Subscriptions
Bank charges and transaction fees
Accountancy
SURPLUS OF INCOME OVER EXPENDITURE
SURPLUS OF INCOME OVER EXPENDITURE
BROUGHT FORWARD (2020: Surplus
transferred from the Friends of the London
Transport Museum)
SURPLUS OF INCOME OVER EXPENDITURE
CARRIED FORWARD






 2021/22
£
4,272
105,546
2,587
6,890
39,285
1,633
-
3,189
250
6,259
650




 2021/22
£
115,950
79,668
12,192
_
207,810
_4,091
4,091
211,901
170,561
41,340
739,404
780,744













 2020
£
20,001
63,286
17,651
_
100,938
_4,527
4,527
105,465
(258)
47,739
3002
4,593
32,780
827
167
1,703
200
5,898
356
97,007
8,458
730,946
739,404

17

NLE $37 18