## **Sheffield Museums Trust Annual Report and Financial Statements Year Ended 31 March 2023** 


Charity registration number: 1194032 Company registration number: 13063156 

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**Sheffield Museums Trust Financial Statements Year Ended 31 March 2023** 

|**Contents**|**Page**|
|---|---|
|Charity Reference and Administrative Details|3|
|Chair’s message|5|
|Chief Executives Report|6|
|Trustees’ Annual Report (Including Directors’ Report and Strategic Report)|7|
|Independent Auditor’s Report / Independent Examiner’s Report|32|
|Consolidated Statement of Financial Activities (Including Income and Expenditure Account)|36|
|Balance Sheets|37|
|Consolidated Statement of Cash Flows|38|
|Notes to the Financial Statements|39|



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## **Sheffield Museums Trust Charity Reference and Administrative Details Year Ended 31 March 2023** 

**Charity registration number** 1194032 **Company registration number** 13063156 **Trustees** N MacDonald (Chair) R Abdy (retired 22 November 2022) P Abel D Chouings Cllr A Damms (resigned 13 July 2022) R Davison (appointed 13 July 2022) M Greaves C McDonald (appointed 13 July 2022) R McGloin P Meleady S Ransom (retired 22 November 2022) J Robinson M Singer A Singh (resigned 31 October 2023) L Tyson-Green D Ladbury (appointed 31 October 2023) I Gamester (appointed 31 October 2023) S Hollingshead (appointed 31 October 2023) J Banham (appointed 31 October 2023) 

**Chief Executive Officer** Kim Streets **Company Secretary** Kim Streets (appointed 9 June 2022) Jennifer Cocker (resigned 9 June 2022) **Registered office** Leader House Surrey Street Sheffield S1 2LH 

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## **Sheffield Museums Trust Charity Reference and Administrative Details Year Ended 31 March 2023** 

## **Auditor** 

## **Bankers** 

BHP LLP, statutory Auditor Chartered Accountants 2 Rutland Park Sheffield S10 2PD Natwest Bank 42 High Street Sheffield S1 2GE 

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**Sheffield Museums Trust Chair’s Message Year Ended 31 March 2023** 

It has been another fulfilling, if challenging, year for the still new Sheffield Museums Trust. 

You can see in the Trustees’ Report the incredible range of creative programmes and events that our team have delivered and it is encouraging to see that our visitor numbers have increased significantly over the previous year. Albeit these numbers are still some way short of pre-Covid levels 

Financial pressures have increased over the past year, particularly in regard to payroll and energy costs. The Trust is grateful for the support of its two major funders, Arts Council England and Sheffield City Council. Our strong relationship with SCC has been especially important as we navigate these financial challenges together. 

I’m delighted that we have been successful in securing several grants to support much needed investment in several of our sites. This will help improve the museum experience for everyone. 

I would like to thank all my fellow Trustees for their support over the year, in particular Sue Ransom and Richard Abdy who stepped down after 9 years of service. 

And finally, my thanks to the Executive team, Kim Streets, Kirstie Hamilton and Clair Taylor (who took over from Jenny Cocker during the year). Their leadership, passion and commitment has been exemplary. 


Neil MacDonald Neil MacDonald (Nov 29, 2023 16:39 GMT) 

Chair, Sheffield Museums Trust 

Nov 29, 2023 

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**Sheffield Museums Trust Chief Executive’s Report Year Ended 31 March 2023** 

Notwithstanding major financial pressures, this has been an encouraging year where visitor footfall has begun to increase and our collaborative work with individuals and organisations across the city, the region and the UK has had a positive impact on the development of the charity. 

At the beginning of the year, we received a generous donation from Durham Duplex to fund a new Sheffield iteration of the Design Lab programme. The programme aims to inspire the next generation of designers, makers and innovators by supporting young people from three Sheffield secondary schools through a series of workshops and visits. I would like to thank Charles Turner, Managing Director of Durham Duplex and Master Cutler Elect, whose generous donation made this work possible. 

In May, we learned the sad news that Museums Sheffield’s former chairman, Gordon Bridge OBE, had passed away. During his lifetime Gordon supported a wide range of organisations and charities in a voluntary capacity and the museums were very fortunate to have him at the helm; his love of museums and his infectious belief in great art for everyone inspired us all. Thanks to the generous support of Chris Rea, Managing Director at AESSEAL PLC, we were able to name The Gordon Bridge Gallery in his honour. The gallery displays artworks that reflect the landscape of Sheffield over 200 years and is a fitting tribute to his love of Sheffield and its people. 

The team have delivered an extraordinary creative programme in 2022-23, the majority of which was curated and produced in collaboration. Highlights include the hugely inspiring Creative Connections, curated in partnership with the National Portrait Gallery, artist Conor Rogers and students from Park Academy; Jonny Pitts: Home is Not A Place which combined photography and personal reflection to create a powerful and moving polemic of Black Britishness today, and the work of our Young Makers who have created podcasts and displays that bring new insight and perspectives. 

Colleagues are adept at using limited resources to create high-quality services, events, workshops and exhibitions that engage and enthral wide audiences and generate vital funds to support our charitable work. I’d like to acknowledge their incredible tenacity and ingenuity and thank everyone involved for their work to develop the offer and to meet and exceed the needs of our visitors, customers, clients and partners. 

Finally, I would like to thank our Trustees, Associate Trustees, our volunteers and the whole team for their huge commitment to the museums in 2022-23. 

Kim Streets Kim Streets (Nov 29, 2023 15:09 GMT) 

Chief Executive, Sheffield Museums 

Nov 29, 2023 

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## **Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

The Trustees present their report and the audited financial statements of the charity for the year ending 31 March 2023. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the charity. 

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, 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 published in October 2019. 


**Students from Park Academy School seeing the work they created with artist Conor Rodgers on display at the Millennium Gallery in the Creative Connections exhibition.** 

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**Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

## **Aims & Objectives** 

An ambitious, resilient, and united museums service that represents, celebrates, and inspires Sheffield. 


**Visitors at the opening of the Graves Gallery exhibition, Johny Pitts: Home is Not a Place** 

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## **Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

Sheffield Museums Trust (SMT) began operations on 1 April 2021 after four years of collaboration between Sheffield Galleries & Museums Trust and Sheffield Industrial Museums Trust. 

Our ambition is that Sheffield’s collections fire the imaginations of the audiences we serve, and that Sheffield’s museums are celebrated for being culturally relevant and representative. Our ethical ambition underpins our charitable objectives in four key areas: 

- **Ambition for Place** 

_Vibrant museums at the heart of our city and at the heart our communities_ 

- **Ambition for People** 

_Be a great place to work with a culture of collaboration, creativity, and high performance_ 

## • **Ambition for Creativity** 

_Be recognised for dynamic museum experiences that inspire people to think, engage, be creative and connect with the city’s past, present, and future_ 

- **Ambition for Sustainability** 

_To be operationally, financially, and environmentally resilient and sustainable_ 

In our second year of activity, Sheffield Museums Trust continued to face challenging economic circumstances, particularly around inflationary cost pressures against standstill funding, and financial sustainability will be key going forward. 

There has and continues to be a focus on developing our people and culture as we deliver an outstanding creative programme. 

Our exhibitions, activities and programmes are designed to inspire our visitors and users to learn from the past, find their creativity and feel hopeful about the future – the work we do demonstrates our purpose, impact and power and a clear case for investment. 

## **Vision and Mission** 

Our destination vision supports our planning and development: 

_An ambitious, resilient, and united museums service that represents, celebrates, and inspires Sheffield._ 

To realise this vision, resilience, relevance, and representation must underpin every aspect of our work. We must be: 

**Resilient** – with people who have the confidence, opportunity, and capacity to learn, adapt and recover from the challenges we will face. 

**Relevant** – delivering collections and creative programmes that are relevant and useful to the communities we serve. By improving the quality and relevance of our work we’ll engage people from all walks of life and every area of Sheffield and inspire them to connect with arts and heritage and express their creativity throughout their lives. 

**Representative** – the museums will be more engaging places if our people, programmes and audiences represent the communities we serve and reflect our connected history. 

## **Charitable Objectives** 

As a charitable trust we have clearly defined charitable objectives that govern our purpose, underpin our mission and vision, and are translated into considered, actionable ambitions with defined outcomes. 

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## **Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

The objects are to advance education by the establishment and maintenance of museums and art galleries for the benefit of the public in the fields of social and industrial history, science and engineering, design, technology, visual arts and crafts and natural sciences, in particular but not exclusively through: 

a) the acquisition, ownership, preservation, protection, restoration, improvement, enhancement and maintenance of items and features of artistic, scientific, historical and industrial interest for the public benefit; and 

- b) the care, management, display and development of: 

   - i. the collections of the Sheffield City Council; 

ii. the art collection of the Mappin Trust; 

iii. the collection of the Guild of St George; 

iv. the collection of the Ken Hawley Collection Trust; and 

v. collections of any other person or body to an extent consistent with the objects of the Charity. 

## **Our charitable objects represent our purpose, impact, and power:** 

- **Our purpose** is to care for and develop Sheffield’s extraordinary heritage collections and to use them as a tool for inspiration, for making sense of the world around us. We will make the city’s heritage accessible to the widest audience - people from all walks of life. 

- **Our impact is measured in our** contribution to quality of life, learning and skills, to place-making and vibrancy and to Sheffield and the South Yorkshire economy. 

- **Our power** is in celebrating local identity and distinctiveness, bringing the best to Sheffield, and enabling people to feel proud of their city and enjoy where they live. 

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**Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

## **Structure, Governance & Management** 


**Young participants at family activities at Weston Park Museum** 

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## **Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

Sheffield Museums Trust was formed on 4 December 2020 to facilitate the merger of Sheffield Galleries & Museums Trust and Sheffield Industrial Museums Trust. The company is a charity registered in England and Wales. 

The company began operations on 1 April 2021 following the transfer of operations, assets and liabilities from the legacy trusts. 

Both Sheffield Galleries & Museums Trust and Sheffield Industrial Museums Trust Limited were separate charitable companies that merged on 1 April 2021 into Sheffield Museums Trust. 

To enable income generation, the trust operates commercial trading through a 100% owned and controlled subsidiary, SGMT Enterprises Limited. The shares of SGMT Enterprises Limited were transferred to the trust from Sheffield Galleries & Museums Trust as a part of the merger arrangements. 

The directors of the charitable company are its trustees for the purposes of charity law. The trustees who have served during the year and since the year end were as follows: 

||Appointed/Resigned|
|---|---|
|Neil MacDonald||
|Patrick Abel||
|Cllr Anthony Damms|25 November 2021 / 13 July 2022|
|Roger Davison|13 July 2022|
|Cate McDonald|13 July 2022|
|Patrick Meleady||
|Susan Ransom|21 December 2020 /22 November 2022|
|Richard Abdy|8 April 2021/22 November 2022|
|Darren Chouings||
|Maxine Greaves||
|Richard McGloin||
|James Robinson *||
|Martin Singer||
|Arun Singh|21 December 2020/31October 2023|
|Lindsey Tyson-Green||
|Dan Ladbury|31 October 2023|
|Imogen Gamester|31 October 2023|
|Stephan Hollingshead|31 October 2023|
|Julie Banham|31 October 2023|



* V & A appointed Trustee 

Trustees appointed to the trust were initially drawn from the two legacy trusts. This has ensured continuity and enabled Sheffield Museums Trust to benefit from the wealth of organisational experience that Trustees were able to bring with them. 

Trustees serve an initial term of three years that can be extended up to a maximum of nine years. 

Trustees meet as a Board for a minimum of four formal board meetings each year. Board meetings include a review of progress against Arts Council NPO investment principles. Trustees provide scrutiny and advise and support the strategic leadership team and wider teams through focused committees that report back to the Board of Trustees. 

## **Associate Trustees** 

The Associate Trustee programme is designed for people new to charity governance and interested in building their knowledge and experience. It aims to develop the next generation of Trustees for the cultural sector by equipping people to take on a Trustee role either with us or with another charity. In 2021 we recruited 4 Associates who took part in training and induction, were supported by Trustee mentors, and joined Board and Committee meetings as participant observers from November 2021. The programme ran for 16 months and came to an end 

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## **Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

in February 2023; feedback from the first cohort of Associates has shaped the design of the next programme which will commence in spring 2024. 

Committees active during the year and the remit of their responsibilities were: 

## **Risk, Assurance and Governance (RAG)** 

The RAG Committee is a committee of the Board of Trustees that has delegated powers to ensure that there is a framework for accountability for examining and reviewing the outcomes to all systems and methods of internal control both financial and otherwise. 

## **Finance** 

The Finance Committee is a committee of the Board of Trustees that has delegated powers to ensure that financial responsibilities and duties are effectively managed and for monitoring financial risk assessment, performance measures and reporting. 

## **Challenge and Change** 

The Challenge & Change Committee is a committee of the Board of Trustees that has delegated powers to scrutinise and comment on the charity's plans for exhibitions, learning, events, research and partnerships activity, to evaluate and review the performance of past programmes and ensure that SMT’s creative programmes are representative, relevant, accessible and useful to the communities it serves. 

## **Collections Development** 

The Collections Development Committee is a committee of the Board of Trustees that has delegated powers to scrutinise and comment on the charity's collections development policies and plans and to ensure that its approach to the care, acquisition and development of Sheffield City Council’s collections adheres to the standards and guidance provided by the Arts Council England Accreditation[1] scheme for UK museums and the Museums Association’s Code of Ethics[2] to ensure that the collections are representative, relevant, accessible and useful to the diverse range of communities they belong to. 

## **Remuneration and Employment** 

The Remuneration and Employment Committee is a committee of the Board of Trustees that has delegated powers to scrutinise the trust's employment policies and practices and ensure that the charity retains a motivated, skilled and experienced workforce through competitive and affordable pay and benefits packages. 

## **Nominations** 

The Nominations Committee is a committee of the Board of Trustees with delegated powers to review the structure, size and composition required of the Board, to undertake succession planning and to lead the process for appointments and election to the Board of Trustees. 

To ensure that Sheffield Museums Trust is managed efficiently and effectively, the Trustees have delegated a range of day-to-day decision-making powers to the Executive which reports directly to the Board. 

The Executive is led by Kim Streets, Chief Executive supported by Kirstie Hamilton, Director of Programmes and until July 2022, by Jennifer Cocker, Director of Finance and Resources. Clair Taylor joined the Executive as Director of Finance and Resources in July 2022. The Executive is in turn supported by Heads of Service that manage and provide expertise in each area of the trust’s operations. 

## **Fundraising Standards Information** 

Sheffield Museums Trust is committed to complying with the regulatory standards of fundraising, and to ensuring that our fundraising is delivered in a manner consistent with our values. We are registered with the Fundraising Regulator and take care to ensure that our fundraising complies with UK data protection legislation. 

> 1 https://www.artscouncil.org.uk/supporting-arts-museums-and-libraries/uk-museum-accreditation-scheme 

> 2 https://www.museumsassociation.org/campaigns/ethics/code-of-ethics/ 

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## **Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

The trust undertakes its own fundraising activities and has not used the services of commercial fundraising suppliers. 

Fundraising activities include requesting donations both on our sites and through our website, fundraising events and encouraging legacy gifts. 

We make every effort to ensure that fundraising communications are respectful and appropriate for the people they are aimed at and that we do not bombard people with asks that are heavy-handed, pressurised or too frequent. We have received no complaints about fundraising in 2022-2023. 

## **Public benefit statement** 

The Trustees have given due regard to the Charity Commission guidance in respect of public benefit **.** 

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**Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

## **Strategic Report: Activities and Impact** 


## **A British Sign Language tour at the Graves Gallery** 

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## **Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

## **Vibrant museums** 

The total visitor number for all sites during the year was 734,665. This was an increase on last year and higher than the budgeted figure of 599,549. Although we are pleased to see this increase, figures have still not returned to pre Covid levels; we have noticed changes in visitor behaviour that we continue to learn from and adapt to in order to improve footfall further. 

In 2022-23 we conducted audience research using Audience Finder at Weston Park Museum, Kelham Island Museum, Millennium Gallery and Graves Gallery. We exceeded our data collection target at all four sites, which provides useful insight into demographics, visitor behaviour, motivations and ratings. This provides us with a robust and reliable data set that will inform future audience research and developments. Audience Finder surveys were also trialled at Abbeydale Industrial Hamlet and Shepherd Wheel Workshop, for the first time. 

Our Net Promoter Score (the percentage of people who would recommend a museum to friends or family) was strong overall, with 4 out of 5 sites scoring well above the national benchmark and Kelham Island Museum receiving the highest rating (83%). Graves Gallery saw a significant increase from the previous year but fell slightly below the national benchmark, which can be attributed to half of the gallery being closed for refurbishment for part of the year. 

11% of those surveyed across sites were from ethnic minority groups compared to 14% the previous year. All sites saw a more even spread of visitor ages, compared to last year. The gender split remained the same as 2021-22 with a higher number of female visitors, while 1.5% of visitors identified in another way. There was very little fluctuation in the number of visitors identifying as having a long-term health condition or disability. 

We successfully met our data collection targets for Arts Council England’s Impact & Insight survey, required by all National Portfolio Organisations. We measured the impact of our programme, evaluating four activities and exhibitions. The four exhibitions surveyed were cited as the main or part reason for the visit and scored highest on the Impact & Insight dimensions of concept, rigour and captivation. The _Brought to Light_ exhibition attracted new audiences, with more over 60s and under 20s compared to the typical Weston Park Museum audience (predominantly 25-55 year-olds). The exhibition also attracted more visitors from outside the Sheffield area. _The Football Art Prize_ exhibition at Millennium Gallery attracted visitors that do not typically engage with galleries on a regular basis – 22% of respondents said they rarely visit galleries and 18% said they don’t normally visit at all. 

## **Volunteering** 

In 2022-23, volunteering activity made a good recovery following Covid, with 228 volunteers giving a total of 6,400 hours of their time to support our charitable work. This is a 60% increase in hours donated on the previous year and a 24% increase in individuals engaged in volunteering. Opportunities for volunteers have encompassed a broad range of roles including supporting collections management and research, exhibitions research, learning, our public programme, visitor engagement, outreach engagement, audience surveying, engineering and communications. 

We consistently receive positive feedback from volunteers about their experience supporting us and volunteers make a hugely valued contribution to the quality and quantity of activities that we deliver. We would like to express our sincere thanks to all who gave their time to support us this year and say a particular thank you to the Friends of Porter Valley who were awarded the Queen's Award for Voluntary Service in 2022, in recognition of their voluntary contribution to the City of Sheffield. 

## **TAP placements** 

Again in 2022, we worked with the University of Sheffield Transforming and Activating Places project, with placement student Seb Willis. Seb worked across all the collections and presented a thoughtful and creative presentation as research for the City of Rivers exhibition. He was extremely positive about the experience and made a real contribution to development of the exhibition. 

## **Curator of Industry and Metalwork** 

The Ellerman Foundation continued to fund the Curator of Industry and Metalwork ensuring that we have specialist knowledge and skills in the team and particularly enabling us to commission research to support decolonising the 

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## **Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

collections and to make connections with local communities, makers and industry. This is the second year of a three- year funding package. 

## **Team development and anti-racism** 

Our Environmental Working Group, Access and Inclusion Working Group and our Anti-Racist Book Group continue to support Sheffield Museums organisational development and support individual team members’ personal development. They provide valuable forums to challenge, question and adapt our activity. 

Our second all team away day took place in November 2022 at the Millennium Gallery with support from consultant Rey Dosaj. Rey continues to work with us to support our development towards becoming a fully inclusive and anti-racist organisation. 

## **Collaboration, Creativity and high performance** 

Highlights of our exhibition and display programme are listed below. Engagement with the programme has remained strong. All the exhibitions listed were developed collaboratively with artists and creatives, communities and organisations and were free to visit. 

• **Places in Time: The Art of Kenneth Steel, 17 December 2021 – 2 May 2022 (Weston Park Museum)** Kenneth Steel was a consummate printmaker and exceptional artist and designer in the fields of both railway art and commercial art. He lived and worked in Sheffield all his life. His keen eye for detail, colour and composition has left us with a unique record of not only the Sheffield area but also notable areas of the British landscape. This exhibition was co-curated with Edward Yardley, a knowledgeable collector of Steel’s work. **50,722 visitors** 

- **Where We Live, 15 January - 5 June 2022, (Millennium Gallery)** 

Where We Live was an artist-curated exhibition that brought together a group of painters whose work arose out of a sustained attention to a specific place or locality over a long period. The artists were Trevor Burgess, Jonathan Hooper, Narbi Price, Judith Tucker and Sheffield based Mandy Payne. **56,465 visitors** 

• **Framed in Friendship: A legacy of Art in Sheffield, 31 March – 23 July 2022, (Graves Gallery)** In 1999 _Zacharias and Elizabeth_ by Stanley Spencer was purchased by Sheffield Museums and Tate. Mary Adshead the previous owner specifically requested the work come to Sheffield, as the city was home to her close friends the Bloomfield family. This exhibition focused on this and other personal connections that have supported the development of the city’s collections. **16,612 visitors** 

• **Not Without My Ghosts: Artist as Medium, 31 March – 26 June 2022 (Millennium Gallery)** 

_Not without My Ghosts_ was curated by Hayward Gallery Touring including works from the late 19th century to the present day. It brought together artists and artworks inspired by spiritualist methodologies and its deep cultural history. It featured around 50 exhibits spanning drawing, painting and installation, and works by William Blake and Victor Hugo. This exhibition was first installed during the pandemic and because of restrictions it could not open to the public. Hayward Touring kindly extended the tour to enable the exhibition to return to Sheffield in 2022. **33,379 visitors** 

- **Brought to Light: The Remarkable Bateman Collection, 27 May - 15 January 2023 (Weston Park Museum)** 

Thomas Bateman (1821-1861) was a collector who established a museum at his home in Middleton-by-Youlgreave in Derbyshire. Since its dispersal in the 1890s, his collection found its way into some of the world’s leading collections. It also forms the core of Sheffield’s archaeology collection and extends across the city’s other holdings such as social history, natural science, decorative art and visual art. This exhibition celebrated the bicentenary of Bateman’s birth in 2021 and his collecting legacy. Research for this exhibition was developed and expanded by academic Sharon Blakey which enabled a greater understanding of the provenance of the city’s collections. The Art Fund’s Weston Loan Programme supported the cost of some of the loans. 

**54,388 visitors** 

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## **Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

- **Creative Connections: Sheffield, 30 June – 2 October 2022 (Millennium Gallery)** 

Creative Connections took inspirational Sheffield people as a starting point to explore ideas about place, community and representation. The exhibition showcased portraits of people connected to Sheffield, presenting works from the National Portrait Gallery and Sheffield’s own collections alongside an installation created by artist Conor Rogers and students at Sheffield Park Academy. 

**33,558 visitors** 

• **Johny Pitts: Home Is Not A Place, 10 August – 24 December 2022, (Graves Gallery)** 

Sheffield born photographer and writer Johny Pitts was the recipient of the inaugural Ampersand/Photoworks Fellowship which supports a photographer to make new work. This exhibition showed the outcome of this project which ‘reflects upon Black Britishness – its complexity, strength, and resilience – at the start of a new decade’. Pitts began his journey in London, visiting places along the Thames before circumnavigating the British coast, documenting people and landscapes of Blackness in places such as Margate, Dover, Plymouth, Cornwall, Bristol, Liverpool, Cardiff and Edinburgh. 

**15,745 visitors** 

• **The Football Art Prize, 21 July – 30 Oct 2022 (Millennium Gallery)** _The Football Art Prize_ coincided with the 2022 FIFA World Cup and the UEFA Women’s EURO2022, hosted in Sheffield. 

The exhibition was the result of a competition organised in collaboration with by Parker Harris, visual art consultants. It was open to artists (professional and non-professional) living all over the world and working in the mediums of painting, drawing, photography and film. The project aimed to use the democratic and universal appeal of football and its unique capacity to cut across divides to reach and inspire new audiences in areas of low cultural engagement and aspiration. The Football Art Prize was funded by Arts Council, England and led by Touchstones Rochdale. The exhibition previewed at Touchstones and then toured to Sheffield and Sunderland (Museum & Winter Gardens). 

**42,500 visitors** 

• **Sky to Sea: Artists and Water, 24 November – 12 March 2023 (Millennium Gallery)** 

This exhibition explored artists’ enduring fascination with water in all its different states. It followed the water cycle, beginning with depictions of rain over storm covered mountains that turned into streams and valleys, following rivers that run through towns and out to sea. Mainly showing the city’s collections with contemporary loans including _Singing to the Sea_ by Bethan Huws loaned from Artangel. Co-curated with Paul Swales. **54,338 visitors** 

• **A Soft Rebellion in Paradise, A Film by Chloe Brown, 14 January – 12 March 2023 Millennium Gallery)** _A Soft Rebellion in Paradise_ sees 200 women gather in Sheffield’s Paradise Square, a site that has been often used for protests and today forms the core of the legal district. The women come together to perform a series of ‘Soft Rebellions’, including clapping, being silent and chanting the words of a specially commissioned poem by Geraldine Monk. Accompanied by sound design and score by musician DIE HEXEN, this film questions the historic and contemporary silencing of women. The film was made by an all-female crew, production team and cast. **13,245 visitors** 

• **George Fullard: Living in a Sculpture, 1923-1973, 21 January – 8 July 2023 (Graves Gallery)** George Fullard was born in Sheffield and studied at the Sheffield College of Arts and Crafts and the Royal College of Art. He won prizes for his work such as _Running Woman,_ which can be seen in the grounds of the Upper Chapel in Sheffield city centre. This exhibition celebrated the centenary of his birth by revealing his achievements and processes. The exhibition included drawings, maquettes and complete sculptures from the city’s collection and other lenders alongside loans from Pangolin Gallery in London who represent the Fullard estate. 

**17,870 visitors to the end of the exhibition** 

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## **Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

- **Hair: The Untold Story, 10 Feb 2023 – 29 Oct 2023 (Weston Park Museum)** 

From jewellery and dresses to armour and environmental protection, this exhibition highlights the qualities of hair as a material. It also explores our complex relationship with hair both on, and off, our heads – how and why we care so much about our hair, and how hair influences society’s expectations and our relationships to others. The 

exhibition includes a project to photograph Sheffield hair salons and their clients. Curated by the Horniman Museum, London in collaboration with the tour partners, Sheffield Museums and Tullie House, Carlisle. **19,995 visitors to 31 March 2023** 

- **Threshold to the Kingdom, A Film by Mark Wallinger, 19 March – 14 May 2023 (Millennium Gallery, small gallery)** 

_Threshold to the Kingdom_ shows slow motion footage of people arriving at London City Airport with a soundtrack of _Miserere_ by Gregorio Allegri. Shot in a single take from a fixed position, the video presents a frontal view of the airport’s international arrivals doorway. At several points in the video, individuals disappear in a ghostly dissolving fashion, and the work finishes with a fade to black. _Threshold to the Kingdom_ is a recent addition to Sheffield’s visual art collection. 

## **15,101 visitors to the end of the exhibition** 

## **Looking Forward: Graves Gallery** 

This five-year, £455,000 Ampersand Foundation funded project rejuvenates the Graves Gallery through displaying more of the collections and developing new programmes with artists, young people and communities to support thinking for the future of the building and grow ownership of the city’s visual art collection. Year three of the project was completed in March 2023 and the gallery reopened with a very positive event on 15 March celebrating a new display curated by artist Victoria Lucas inspired by JMW Turner’s, _The Festival of the Opening of the Vintage at Macon,_ 1802 and a new display of works from the collection on the theme of the portrait and figure as well as loans from artists Joe Cutts, Paul Barlow and Mathew Weir. 

## **Collaboration** 

## **The V&A** 

The city has had a strategic partnership with the Victoria & Albert Museum since 1999. It has enabled the people of Sheffield to enjoy high quality collections and exhibitions and the trust has benefitted from curatorial advice and professional expertise through talks, secondments, trustee involvement and training. We were able to secure funding from Durham Duplex, a Sheffield-based Machine Blade manufacturer to deliver a special Sheffield version of the V&A’s Design Lab Nation project this year. 

## **The Guild of St George** 

Sheffield Museums works closely with the Guild of St George through our stewardship of the Ruskin Collection. The Guild continue to support us to care for and display the Ruskin Collection and financially support the trust to undertake this work. The Board of Trustees and staff team would like to thank the Guild of St George for their ongoing commitment to the city of Sheffield and the work of Sheffield Museums during this and future years. 

## **The Ken Hawley Collection Trust** 

Sheffield Museums worked closely with the Hawley Collection to realise the National Lottery Heritage Fund supported Sheffield Treasures exhibition which opened at Kelham Island Museum in January 2023. This included the loan of a group of multibladed folding knives from Sheffield’s Designated Metalwork collection. 

## **Partnership and Projects** 

## **National Portrait Gallery** 

We worked closely with the National Portrait Gallery to deliver the Creative Connections: Sheffield project culminating in an exhibition in summer 2022 at the Millennium Gallery working with artist Conor Rogers and students from Sheffield Park Academy. 

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## **Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

## **Sheffield Assay Office** 

We worked closely with the Assay Office in preparation for display and programme of events to celebrate the 250th anniversary of the Assay Office in September 2023. 

## **Sheffield Culture Consortium** 

Membership of the Sheffield Culture Consortium continues to be of strategic importance as we seek to position culture as a key component in the city’s recovery and development. We work alongside colleagues at Sheffield Theatres Trust, Site Gallery, The Showroom, Doc/Fest, Yorkshire Artspace, Music in the Round, SADACCA, Sheffield African Heritage Forum, and the Universities, to develop the Consortium’s role and deliver on its strategic objectives. The Trust continues to administer the Sheffield Culture Consortium Visual Art Newsletter. 

## **Sheffield Culture Collective** 

The trust is a founding member of the Sheffield Culture Collective; both the Chief Executive and Chair are represented on the Board. The Collective includes public, private and voluntary sector membership and works together with Sheffield City Council to support the strategic role of culture in city centre development, the visitor economy, and the city region. In 2022, the Council adopted the Culture Collective’s strategy, and this led to the Council appointing Fourth Street, place consultants, to facilitate the development of a new cultural strategy for Sheffield. This work will complete in spring 2024; the Collective is engaged in the process and has offered its full support. 

## **South Yorkshire Museums** 

We continue to meet regularly with our peers in Barnsley, Doncaster and Rotherham to consider opportunities to share learning and resources as well as connect planning. 

We entered into new collaborations with Photoworks, the National Gallery and the MAGNET network, all focussed on exhibitions. We also worked with communities to create displays at Weston Park Museum and the Millennium Gallery including a display focussing on black history in Sheffield in the 19[th] century curated with Mark Hutchinson; Lora Krasteva’s installation _Becoming British_ revealing the bureaucracy behind her application to become British at Weston Park Museum; and ceramic displays by Brian Holland and Janet Barnes at the Millennium Gallery. 

## **Creative Health in South Yorkshire** 

In the summer, Directors worked with Karen Harrison from the Director of Public Health’s Office to develop a Creative Health symposium hosted at the Millennium Gallery in November. The one-day symposium demonstrated how regular engagement in arts and creativity can improve health and wellbeing outcomes for our population and led to a collaborative partnership with cultural and health professionals, academics, politicians and policymakers working more closely together to support wellbeing in the region and ensure that the impact of arts in health are woven through South Yorkshire’s Integrated Care Strategy. A paper demonstrating the power of creative health is available here, 

https://www.sheffieldmuseums.org.uk/about-us/how-we-work/working-together/south-yorkshire-integratedcare-strategy 

## **Dynamic museum experiences** 

We offered accessible and inspiring opportunities for people from all walks of life to use their museums as places to reflect upon the past, question the present and imagine the future. 

During 2022/23 16,854 formal education visitors engaged with exhibitions, events and activities at our sites. We saw schools numbers begin to increase post Covid but the cost of living crisis and increased fuel costs have meant that some schools have found costs prohibitive. We worked with 209 different schools from Sheffield as well as from across Yorkshire, Nottinghamshire and Derbyshire. The team delivered 405 workshops on a wide variety of subjects through the year and facilitated a further 195 self-guided visits. We continue to employ casual learning delivery staff to increase our capacity and enhance our offer in areas of the city with the least engagement. We continue to develop new schools workshops with a particular emphasis on STEAM. 

Following the completion of our final year of the DesignLab Nation project with the V&A we launched DesignLab Sheffield with the support of Durham Duplex, Sheffield-based machine blade manufacturers. DesignLab Sheffield gave us the opportunity to work with the Designated Metalwork collection, Studio Polpo and young people from 

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**Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

3 secondary schools; Hinde House, Park Academy and Yewlands Academy. The project aimed to inspire a new generation of creative practitioners and broaden young people’s understanding of the designed world around them. Design Lab Sheffield equipped young people with skills needed in the for workplaces of the future by focussing on the steps of design practice rather than the final outcome. 

We also worked with young people across a variety of other projects. Our Young Makers projects have seen young people reflect on museums through the creation of podcasts, a project with Sheffield General Cemetery that 

looked at the history of confectionary in Sheffield and working alongside our Curator of Natural Science to curate a display around climate change at Weston Park Museum. 

Our engaging public programme of events and activities for people at all points of their life welcomed over 4,700 people to regular classes and sessions, and over 10,500 people to events in our spaces – this is nearly double the 7,863 total attendees last year. 

The public programme is an opportunity to add depth to the temporary exhibitions and permanent collections through different online and in-person events. These talks, tours, workshops and special events make up a varied programme that caters to different audiences, interests and age ranges – from baby friendly art classes to dementia cafés, artist talks to blacksmithing demonstrations, craft workshops for kids to gallery tours in British Sign Language. 

The annual two-day Victorian Christmas Market on 3 and 4 December at Kelham Island Museum comprised over 80 stalls of gifts and local makers; food and drink; festive entertainment; traditional craft demonstrations; family activities, Santa’s Grotto and a fairground. It welcomed 7,414 visitors, a 54% increase on the previous year and closer to pre-pandemic attendance, enabling us to benchmark appropriately for future events. 

In addition, we hosted the Sheffield Print Fair, Futurecade and Off the Shelf: Festival of Words at Millennium Gallery and the Sheffield Ceramics Fair and Selected Space at Kelham Island Museum. These events increased our profile within the city, and generated income through hire fees and donations. 

We continue to work with the Professors and the Burton Street Group providing space for them to meet and work at Weston Park Museum and we have started to work with ArtWorks at Kelham Island, all via generous hosting agreements. 

## **Sheffield’s Collection** 

This year we have merged the legacy trusts’ Collections Management databases, upgraded the software and trained all staff on the updated system. Collections Management activities have continued with a total of 2921 new records being uploaded to the database and 1724 records have been enhanced to Spectrum 5 standard. This includes the cataloguing of the Basil Robinson’s collection, documenting the story of a man who came to Sheffield in the 60s from Jamaica, as well as the documentation of Archaeological Archives in collaboration with volunteers. Website developments continued with plans for the new online database progressing and record preparations taking place, for example 300 Bateman Natural Science specimens were catalogued and photographed. Collections Management work focused on preparation for the first Sheffield Museums Trust Accreditation Return which is due in March 2024. 

In 2022-23 Sheffield’s collection acquired over 500 items including: 

- a shawl that was used in Sheffield flood of 1864 and later the Sheffield Blitz 

- a silver casket made to commemorate the opening of Castle Hill Market 

- a collection of items from Women’s Euro matches in Sheffield. 

- a set a six coffee spoons by Joseph Rodgers 

- a set of Hadfields Steel Works limited edition golf clubs 

- a British Steel Corporation Safety helmet 

- a painting of Davy United, Bloom and Slabbing Mill (1953) by Kenneth Steel. 

- Archaeological Archives from Eye Witness Works, Nursery Street and Kelham Island Steelworks 

- 200 specimens of Ichneumon Wasp collated by Yorkshire recorder Bill Ely 

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## **Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

- a collection of pressed plant specimens (c. 1890) from Conisbrough 

- Ski Village by Dan Holdsworth 

- Three paintings by John Hoyland: Midland Station, Sheffield (1957), Sky Edge, Sheffield (1957) and Coffee Bar (1955) Coffee Bar 

- Christmas Tree and three studies by Scottish artist Moyna Flannigan 

- Two Stanley Royle paintings and a selection of his sketches, memorabilia and painting palette given by his great grand-daughter. 

- Sheffield Museums was recipient of the Griffin Award through the Contemporary Art Society enabling the commission of Clothed Akin (2023) a set of five Britannia silver and oxidised copper vessels by Francisca Onumah. 

- 20 works were gifted to the city through the Acceptance in Lieu works scheme from John Kirkland including artists such as Frank Auerbach, Anthony Caro, and Bridget Riley. 

- Funding from the Arts Council England/V&A Purchase Grant Fund to purchase five rare gold Iron Age 

- coins from Whitwell Derbyshire which came to us through the Treasure Act. 

## **Conservation** 

Sheffield Museums ongoing programme of conservation continued with 70 objects and artworks having their condition improved. This included the conservation of prints depicting Henry Bessemer and James Montgomery for the Creative Connections exhibition, drawings by Euginea and Clara Bateman for the Brought to Light: The Remarkable Bateman Collection exhibition and Titian’s _The Submersion of Pharaoh's Army in the Red Sea_ (1549) enabling it to be displayed for the first time since its acquisition in the 1980s in the Sky to Sea: Artists and Water exhibition. 

## **Loans** 

Sheffield Museums loaned 76 items to other organisations during 2022-23 reaching local, regional, national and international audiences. These included Walter Sickert’s _L’Hôtel Royal Dieppe_ and _Soldiers of King Albert at the Ready_ to Tate Britain and the Petit Palais, Paris, Paul Gauguin’s _Interior with Aline Gauguin_ to Musee des Impressionismes, Paris and a significant loan of 11 Bloomsbury Group loans to the National Museum Rome. Closer to home items were also lent to Leeds Museum, Tennants Auctioneers in Harrogate, King Edward VII School, Forge Vallery Academy and Whirlow Hill Farm. 

## **Site Development** 

In 2022 working with the Science Museum Group and the V&A we secured funding via the National Lottery Memorial Fund to explore the potential return of the Stephenson Blake collection to Sheffield. This nationally significant collection numbers over two million items from Stephenson Blake and Co, Sheffield based type founders established in 1818. The company grew to become one of the most successful type foundries in the country. This initial exploration of the feasibility of such a project will take approximately 15 months and began in earnest with the appointment of a dedicated Project Manager in March 2023. 

During the year we began to develop plans for Abbeydale Industrial Hamlet that will see it become a dynamic destination for visitors of all ages and a working, resilient site with a sustainable future. Plans include a new welcome area and shop, refreshed interpretation, a bespoke themed playground, a new workshop to accommodate volunteers and an extended car park. Our vision is that the Hamlet inspires the next generation of wonder-smiths, engineers, entrepreneurs and makers and stimulates curiosity and creativity in all its visitors. It will become a resilient, sustainable hub for local communities, a base for makers, a working site and a great day out for visitors of all ages. In June 2023, we received the good news that our bid to National Lottery Heritage Fund for £230k towards investment at this site had been successful. The project is due to start in autumn 2023. 

## **Environmental Impact** 

Every aspect of our work has consequences for the environment; we attract visitors to our sites; we use resources in exhibitions; we maintain climate control in our buildings. Our main environmental impacts are; 

- Energy use, in particular through maintaining environmental conditions within our buildings and running gas-powered engines 

- Audience, supplier and staff travel to and between our sites 

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## **Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

- Exhibition resource use: paint and materials 

- Catering waste - managed by our franchisees 

We have an environmental sustainability working group made up of employees from across the Trust who meet twice a year to challenge and promote change. The environmental action is reviewed by the risk, audit and governance committee annually. 

Key achievements this year are: 

- Data has been uploaded to our future net zero platform to establish our baseline carbon footprint 

- Energy audits have taken place across our two sites with the highest energy consumption 

- We have reviewed our building management system settings to reduce unnecessary energy usage 

- Reduced print runs for paper guides and moved towards a more digital offering to reduce wastage 

- Developed our sustainable collections management policy including and action plan and procurement guidance 

Reduction in energy usage is a priority in the light of energy cost inflation so this is a key focus going forward, both by internal review of energy usage and also investment into energy saving technology. Now that the baseline data has been established within our future net carbon zero framework, we are better equipped to target areas for energy reduction. 


**Young participants at a nature-inspired family activity at Abbeydale Industrial Hamlet** 

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**Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

## **Finance and Resources Review** 


**Performers and visitors at Kelham Island Museum Victorian Christmas Market** 

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## **Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

The year ending 31 March 2023 is the second year of trading for Sheffield Museums Trust, and our first full year of trading which has not been directly impacted by Covid. The Trust is reporting a net consolidated unrestricted operating deficit of £(250)k for the period ending 31 March 2023 (2022 deficit £(237k)). 

The consolidated statement of financial activities shows a total surplus for the year after other recognised gains and losses of £154k (2022 deficit £(176k)). This figure is heavily influenced by gains on the South Yorkshire Pensions Authority Defined Benefit Scheme and by the depreciation costs of grant funded assets. Remeasurement gain on the defined benefit pension plan was £1,011k (2022: £746k) and depreciation on grant funded assets is shown in restricted funds and totalled £758k (2022: £758k) for the period. This depreciation is funded from the restricted capital reserve fund. 

The unrestricted operating deficit result is in line with expectations. We recognise that operating at a deficit on unrestricted funds is not sustainable, and we are focussed, together with our funders, on ensuring a sustainable financial future. Given the challenges faced, the financial performance of the Trust for the year is acceptable. 

We have continued to control our expenditure and work with a range of stakeholders to plan with ambition to ensure that we are able to optimise future opportunities for income generation. 

At 31 March 2023 the group had net assets of £10,142k (2022 £9,988k). Free reserves were £1,022k (2022 £1,018k) supported by a cash balance of £1,898k (2022 £1,691k). This provides the trust with sufficient stability and resilience in the short term as we work towards a balanced budget in the longer term. 

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## **Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

## **Income** 

Sheffield Museums Trust income for the period to 31 March 2023 was £4,338k. This is an increase of £91k compared to the combined total income of 2021-22 of £4,247k. 

## Where our income came from in 2023 



**----- Start of picture text -----**<br>
Sheffield City Council Arts Council England<br>Commercial  Grants from Trusts and Foundations<br>Donations Earned and other income<br>**----- End of picture text -----**<br>


This year saw the start of a recovery from Covid, with all sites being fully open and hospitality events increasing significantly compared to the prior year. This is reflected in the increase in earned and other income. 

Sheffield City Council continues to be the main supporter of the trust providing £1,741k in service charge income (2022 £1,741k). The trust acknowledges the difficult financial challenges facing Sheffield City Council and are grateful for their continued financial and operational support. 

Sheffield Museums Trust benefits from continued Arts Council England NPO support. The NPO grant of £814k per annum continued until 31 March 2023 and we are delighted that our funding application for the NPO programme for 2023-2026 has been successful, with funding maintained at the same level. 

Visitor numbers increased significantly from 505k to 734k across our sites. Pre Covid however, in 2019-20 the combined Trusts welcomed 1,029k visitors, so we are still seeing a significant impact on footfall, particularly at our city centre venue Millennium Gallery which is a reflection of increased home working and changing habits. 

Sheffield Museums Trust took the decision to make all sites free entry from re-opening in May 2021. Trustees believe that this is a significant step in making Sheffield’s museums accessible to a wider audience. We then ask our visitors to donate if they can when they visit our sites. Visitor donations totalled £114k in the year to March 2023. 

Commercial income is an increasingly important contributor to the income and financial resilience of the trust. The trust operates a wholly owned commercial trading subsidiary SGMT Enterprises Ltd. The trading subsidiary distributes its reserves to the trust by gift aid. 

Commercial income is generated from retail sales through the museum shops, hospitality bookings and café operations. Commercial income grew significantly for the year to £924k (2022 £661k) The removal of Covid restrictions meant a significant increase in the number of events booked, some of which had been postponed 

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## **Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

during the Covid period. Retail performance was also significantly improved on prior year despite the cost-of-living challenges currently being faced by consumers. 

SGMT Enterprises Ltd has reported a pre-tax profit of £245k in 2023 (2022 profit £113k.) and a distribution of £240k was made to the Trust. 

## **Expenditure** 

Expenditure for the year totalled £5,239k (2022 combined £5,215k). Of this £4,233k was unrestricted expenditure (2022 unrestricted £3,943k) and £1,006k was restricted expenditure (2022 restricted £1,272k). Of the restricted expenditure a significant £758k relates to depreciation costs. 


**----- Start of picture text -----**<br>
How our resources were spent in 2023<br>**----- End of picture text -----**<br>




**----- Start of picture text -----**<br>
Staff Costs Building and Support Costs  Depreciation<br>Programme Costs Governance<br>**----- End of picture text -----**<br>


Expenditure continues to be well controlled and reflects a lean staffing structure and careful approach to spending. 

Staffing costs are the largest part of expenditure at £2,293k (2022: £2,336k), and site operational costs £1,688k (2022: £1,603k). These two areas represent 76% of total expenditure. 

The costs of maintenance and the running expenses of the trust’s eight operational buildings continues to be significant expense and concern. 

Millennium Gallery and Weston Park Museum are both substantial buildings that are leased from SCC on a full repairing basis, with the Trust receiving £100k restricted funding per annum for lifecycle repairs and maintenance at the Millennium Gallery building. Even with this funding, both buildings are requiring increasing levels of maintenance and repair with some substantial items of plant nearing the end of their lives. A review of required works has led to an £115k net increase in the dilapidations provision at the year end. 

The need to sustain stable environmental conditions for the collection and the use of full fresh air ventilation to improve visitor conditions means that our energy usage is high and not easily reduced. 

This year we have benefitted from long term contractual fixed rates which ended 31[st] March 2023. A cost review was performed with several energy providers and the most competitive deal sourced from 1 April 2024, however even with the Energy and Trade Intensive Industry discount energy costs have still increased significantly. Energy costs are expected to reduce slightly in the future, however not to levels previously seen. This has permanently increased the operating costs of the Trusts for future years. 

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## **Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

## **Charity Funds** 

## **Restricted Funds** 

Restricted funds are tied to particular purposes, as specified by the donor or funder. Restricted funds totalled £7,807k at 31 March 2023 (2022 £8,458k). 

The largest source of restricted funds is the Capital Depreciation reserve. This fund is used to support the depreciation costs of grant funded assets. 

## **Unrestricted Funds** 

Unrestricted funds comprise those funds that are not subject to specific donor restrictions. Total unrestricted funds at 31 March 2023 increased by £805k to £2,335k. The positive movement in funds was heavily influenced by gains on the defined benefit pension plan of £1,011k. 

Unrestricted funds include a £nil balance (2022: liability of £883k) relating to Sheffield Museums Trust’s Defined Benefit Pension Scheme. This is a closed pension scheme with liabilities transferred into the trust as part of the merger process. A surplus on the scheme has been reported in the actuary report, however this surplus has not been recognised as we are not expecting either a decrease in contributions or a refund from the scheme. 

## **Balance sheet and cashflow** 

Overall net assets increased by £154k during the year to close at £10,142k, mainly due to the remeasurement of the defined benefit pension scheme. Cash and cash equivalents rose by £207k to £1,898k. This strong cash balance provides a solid base from which Sheffield Museums Trust can address and adapt to the challenging times ahead. 

## **Employees and Volunteers** 

During the year Sheffield Museums Trust employed an average of 123 staff (2022 118 staff), 31 (2022: 17) of whom are employed on a zero hours contract for support across our operations. We are also hugely grateful to the 228 volunteers who dedicate their time to the Trust during the year. 

All individuals considered for employment are assessed based on their relative experience, knowledge, skills and qualifications. 

It is against Sheffield Museums’ policy to discriminate either directly or indirectly against any person because of their protected characteristics. However, we recognise that more needs to be done to achieve our aim of a workforce that is as diverse as the city’s population. A Race Inclusion Maturity Assessment was undertaken during the prior year which highlighted the need for change in numerous areas including recruitment procedures. This work is ongoing supported by the Race Inclusion Steering Group, with progress being made in the year demonstrated by the achievement of a level One Race in Heritage Award. 

Sheffield Museums Trust recognise that training is an important way in which employees and potential employees develop the knowledge, skills, qualifications and experience necessary for the effective performance of their job. Training needs are identified through the performance management process and training opportunities are made available, subject to financial and operational constraints, to all staff. Examples of training which took place during the year are creative leadership and equity, diversity and inclusion. 

Volunteers continue to contribute enormously to the trust. Volunteers contributed 6,400 hours (2022: 3,939 hours) of their time and skills to support our service. We run the programme on a strictly practical basis, recruiting volunteers to fit roles and undertake tasks identified by museum staff. All our volunteering opportunities are advertised via the website and to registered volunteers. 

## **Key management personnel remuneration policy and benefits** 

The trust bases its reward policies and strategies on the needs of the organisation. Salaries in general are determined by reference to similar museum and other charitable services both locally and across the UK, and consistency is ensured by regular evaluation of employees’ performance. Senior executive’s remuneration is decided by the Trustee remuneration and employment committee which has access to external data. A Personal Pension Plan is available to all staff that is auto-enrolment compliant. 

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## **Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

## **Related parties** 

The trust has a subsidiary, SGMT Enterprises Limited, which undertakes the non-charitable activities based within the sites operated by the Trust. Any surpluses generated by the activities of the subsidiary are donated to the Trust to support its charitable activities. 

## **Investment policy and returns** 

The trust does not currently benefit from a surplus of long-term reserves. All cash held is primarily for working capital or specific projects and as a result, is held in liquid accounts at the bank that can be called upon at short notice. 

Trustees will review the investment policy as funds grow in the future, although current cash flow projections do not show any significant increase in cash reserves. 

## **Risk management** 

Trustees are committed to the identification and management of the major risks facing the Trust. 

## **Identification and Governance of Risk** 

Strong communication throughout the organisation enables risks to be identified in a timely basis. Risks are recorded on a detailed register, the Board Assurance Framework. This register quantifies the impact and likelihood of the risk and identifies influencing factors, mitigations and controls for all major risks identified. 

The Risk, Assurance and Governance Committee (RAG) meets at least quarterly, and a review of the Board Assurance Framework (BAF) is a standing agenda item on all meetings. The RAG committee regularly reports to the full Board of Trustees. 

## **Principal Risks** 

The most significant risks and uncertainties facing the organisation at the time of this report are: 

- Funding and income generation 

   - The Trust is reliant on the financial support of two main funders, both of whom themselves face financial pressures. We continue to strengthen our self-generated income streams, however the current cost of living crisis and reduced city centre footfall is limiting this growth. 

## • Increasing costs 

Inflation and the growing demands of the National Living Wage continue to impact adversely on the finances of the Trust. Energy costs will increase significantly from 1[st] April 2024 

As we operate from a lean cost base identifying cost reductions that do not adversely affect our impact is a challenging task. 

- Buildings 

The sites that we operate all present unique operating challenges, but a common theme is an historic under investment in maintenance. We are working closely with SCC who own the estate and have repair obligations over some of the sites, to develop plans to look at the requirements and prioritising works over the short, medium and longer term. 

## **Reserves Policy** 

Trustees adopt a risk-based approach to the management of reserves that seeks to balance long term financial sustainability and flexibility with current operational requirements. In assessing the level of free reserves required the Trustees have taken due note of the major risks facing the charity, considered the likelihood of the risks and the potential financial impact of those risks. 

The major financial risks that have been considered in determining the level of free reserves required by the trust are the security of the funding that we receive from our major funders; our ability to supplement funding with self- 

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## **Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

generated income; and the level of expenditure that we need to maintain our buildings in the appropriate conditions to operate as publicly accessible accredited museum and galleries. 

At 31 March 2023 Trustees determined that based on the assessment of principal risks the appropriate targeted free reserves level for the trust was £600k. At 31 March 2023 free reserves, calculated as unrestricted funds less fixed assets not included within the restricted capital reserve fund plus the long-term guaranteed defined benefit pension liability, were £1,013k (2022 £1,018k). 

The level of free reserves at 31 March 2023 is above the targeted free reserves level. However, Trustees consider this to be appropriate in light of the expected decline in free reserves that is anticipated as a result of standstill funding and increasing costs over the next few years. 

## **Looking Ahead** 

The Trust continues to face substantial pressures from the impact of increases in the National Living Wage and other rising costs, particularly energy costs, with the real impact being felt from 1 April 2024. Our financial plans recognise that we must continue to increase earned income through commercial activity, visitor giving and by finding income generating opportunities throughout our activities. 

Visitor welcome and the link with visitor donations across our sites was recognised as an area for improvement and a restructure of the Visitor Experience team took place in spring 2023 to both improve our visitor welcome and financial resilience through increased visitor giving. This restructure resulted in the creation of a new Visitor Fundraising team who focus on giving visitors a warm inclusive welcome, introducing the sites and making an ask for a donation where appropriate. We are already seeing an increase in visitor donations, and we continue to develop the way our Visitor Experience team operate at our sites. 

We operate from a lean cost base and savings are not easily identified but we will continue to maintain tight control over expenditure and seek best value. 

## **Going Concern** 

The Trustees believe it is appropriate to prepare these financial statements on a going concern basis. 

In coming to this conclusion the Trustees have reviewed income and expenditure and cashflow forecasts to March 2025. These forecasts assume a trading deficit and have been subject to sensitivity analysis relating to unsecured income, commercial performance and cost pressures. 

Positive negotiations are ongoing with Sheffield City Council about an increase in the annual service charge to offset this deficit whilst maintaining an appropriate reserves position. 

Notwithstanding the outcome of these negotiations, taking account of the current cash and reserves position and the sensitised forecasts, the Trustees have a reasonable expectation that the Trust will be able to operate as a going concern for a period of at least 12 months following approval of these financial statements. 

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**Sheffield Museums Trust Trustees’ Annual Report (Including Directors’ Report and Strategic Report) Year Ended 31 March 2023** 

## **Statement of trustees’ responsibilities** 

The trustees (who are also directors of Sheffield Museums Trust for the purposes of company law) are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and regulations United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the parent charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP 2019 (FRS102); 

- make judgments and estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent charitable company will continue in operation. 

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the parent charitable company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom may differ from legislation in other jurisdictions. 

## **Statement as to disclosure to our auditor** 

In so far as the trustees are aware 

- there is no relevant audit information of which the charitable company’s auditor is unaware; and 

- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 

In approving the Trustees’ Report, we also approve the Strategic Report included therein, in our capacity as company directors. 

On behalf of the board 


Neil MacDonald (Nov 29, 2023 16:39 GMT) Neil MacDonald, Trustee Date Nov 29, 2023 

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## **Sheffield Museums Trust Independent Auditor’s Report to the Members of Sheffield Museums Trust Year Ended 31 March 2023** 

## **Opinion** 

We have audited the financial statements of Sheffield Museums Limited (the ‘parent charitable company’) and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the consolidated statement of financial activities, consolidated and trust balance sheets, consolidated statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the group’s and parent charitable company’s affairs as at 31 March 2023, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

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## **Sheffield Museums Trust Independent Auditor’s Report to the Members of Sheffield Museums Trust Year Ended 31 March 2023** 

## **Opinions on other matters prescribed by the Companies Act 2006** 

In our opinion, based on the work undertaken in the course of the audit: 

- the information given in the trustees' report (incorporating the strategic report and the directors’ report) for the financial period for which the financial statements are prepared is consistent with the financial statements; and 

- the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. 

**Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report. 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: 

- adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or 

- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of directors’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the group and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so. 

## **Auditor responsibilities for the audit of the financial statements** 

We have been appointed auditor under the Companies Act 2006 and report in accordance with this Act. 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: 

33 



## **Sheffield Museums Trust Independent Auditor’s Report to the Members of Sheffield Museums Trust Year Ended 31 March 2023** 

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; 

- we identified the laws and regulations applicable to the charitable group through discussions with management and trustees, and from our knowledge and experiences of the sector; 

- we focussed on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charitable group, including Charities Act 2011, Companies Act 2006, GDPR, employment and health and safety legislation; 

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; 

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by; 

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and 

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. 

To address the risks of fraud through management bias and override controls, we: 

- performed analytical procedures to identify any unusual or unexpected relationships; 

- tested journal entries to identify unusual transactions; 

- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 1r were indicative of potential bias; and 

- investigated the rationale behind significant or unusual transactions. 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 

- agreeing financial statement disclosures to underlying supporting documentation; 

- reading the minutes of meetings of those charged with governance; 

- enquiring of management as to actual and potential litigation and claims. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 

## **Use of our report** 

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than 

34 



## **Sheffield Museums Trust Independent Auditor’s Report to the Members of Sheffield Museums Trust Year Ended 31 March 2023** 

the charitable company and the charitable company’s members as a body for our audit work, for this report, or for the opinions we have formed. 


_Jane Marshall (Senior Statutory Auditor) For and on behalf of BHP LLP, Statutory Auditor 2 Rutland Park Sheffield S10 2PD_ 

30 November 2023 

35 



## **Sheffield Museums Trust** 

## **Consolidated Statement of Financial Activities (including income and expenditure account) Year Ended 31 March 2023** 

|Note<br>**Income and endowments from:**<br>Donations and legacies<br>2<br>Charitable activities<br>3<br>Income from charitable activities<br>Management service charge<br>Other trading activities<br>4<br>Other<br>5<br>**Total income and endowments**<br>**Expenditure on:**<br>6<br>Raising funds<br>Trading activities<br>Fundraising costs<br>Charitable activities<br>Exhibitions, collections and<br>participation<br>Operational costs<br>**Total expenditure**<br>**Net expenditure**<br>**Transfers between funds**<br>**Other recognised gains:**<br>Remeasurement gain on defined benefit<br>pension plan<br>24<br>Corporation tax relief<br>26<br>**Net movement in funds**<br>21<br>**Reconciliation of funds:**<br>Total funds brought forward<br>21<br>**Total funds carried forward**<br>21|2023<br>2023<br>2023<br>Unrestricted<br>funds<br>Restricted<br>funds<br>**Total**<br>£000<br>£000<br>**£000**<br>1,087<br>255<br>**1,342**<br>202<br>-<br>**202**<br>1,741<br>-<br>**1,741**<br>924<br>-<br>**924**<br>29<br>100<br>**129**<br>3,983<br>355<br>**4,338**<br>(635)<br>-<br>**(635)**<br>(21)<br>-<br>**(21)**<br>(940)<br>(248)<br>**(1,188)**<br>(2,637)<br>(758)<br>**(3,395)**<br>(4,233)<br>(1,006)<br>**(5,239)**<br>(250)<br>(651)<br>**(901)**<br>-<br>-<br>**-**<br>1,011<br>-<br>**1,011**<br>44<br>-<br>**44**<br>805<br>(651)<br>**154**<br>1,530<br>8,458<br>**9,988**<br>2,335<br>7,807<br>**10,142**|2022<br>Total<br>£000<br>1,463<br>236<br>1,741<br>661<br>146|
|---|---|---|
|||4,247<br>(503)<br>(49)<br>(1,291)<br>(3,372)|
|||(5,215)|
|||(968)<br>-<br>746<br>46|
|||(176)<br>10,164|
|||9,988|



All income and expenditure derive from continuing activities. 

The consolidated statement of financial activities complies with the requirements of an income and expenditure account under the Companies Act 2006 and includes all recognised gains and losses in the year. 

36 



## **Sheffield Museums Trust Consolidated & Trust Balance Sheets As at 31 March 2023** 

|Note<br>**Fixed assets**<br>Tangible assets<br>13<br>Heritage assets<br>15<br>**Current assets**<br>Stocks<br>16<br>Debtors<br>17<br>Cash at bank and in hand<br>**Creditors: amounts falling due within one**<br>**year**<br>18<br>**Net current assets**<br>**Total assets less current liabilities**<br>**Creditors: amounts falling due after more**<br>**than one year**<br>**Provisions for liabilities**<br>20<br>**Net assets excluding pension liability**<br>**Defined benefit pension liability**<br>24<br>**Net assets**<br>**Charity Funds**<br>Restricted funds<br>21<br>Unrestricted funds<br>21<br>**Total charity funds**<br>21|**Group**<br>**Trust**<br>**2023**<br>**2023**<br>**£000**<br>**£000**<br>**8,704**<br>**8,680**<br>**-**<br>**-**<br>**8,704**<br>**8,680**<br>**69**<br>**-**<br>**358**<br>**459**<br>**1,898**<br>**1,801**<br>**2,325**<br>**2,260**<br>**(373)**<br>**(300)**|**Group**<br>Trust<br>**2022**<br>2022<br>**£000**<br>£000<br>**9,533**<br>9,488<br>**-**<br>-|
|---|---|---|
|||**9,533**<br>9,488<br>**62**<br>-<br>**288**<br>496<br>**1,691**<br>1,519|
|||**2,041**<br>2,015<br>**(304)**<br>(247)|
||**1,952**<br>**1,960**<br>**10,656**<br>**10,640**<br>**-**<br>**-**<br>**(514)**<br>**(514)**<br>**10,142**<br>**10,126**<br>**-**<br>**-**<br>**10,142**<br>**10,126**<br>**7,807**<br>**7,807**<br>**2,335**<br>**2,319**<br>**10,142**<br>**10,126**|**1,737**<br>1,768|
|||**11,270**<br>11,256<br>**-**<br>-<br>**(399)**<br>(399)|
|||**10,871**<br>10,857<br>**(883)**<br>(883)|
|||**9,988**<br>9,974|
|||**8,458**<br>8,458<br>**1,530**<br>1,516|
|||**9,988**<br>9,974|



The Trust has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of financial activities in these financial statements. The surplus of the Trust only was £152k. 

The financial statements were approved and authorised for issue by the Board on 

Signed on behalf of the board of trustees 


Neil MacDonald (Nov 29, 2023 16:39 GMT) 

Neil MacDonald, Chair of Board of Trustees 

## Date Nov 29, 2023 

The notes on pages 39 to 62 form part of these financial statements. Company registration number: 13063156 

37 



## **Sheffield Museums Trust Consolidated Statement of Cash Flows Year Ended 31 March 2023** 

## **Consolidated Statement of Cash flow for the period ended 31 March 2023** 

|Note<br>**Net cash flow from operating activities**<br>23<br>**Cash flow from investing activities**<br>Payments to acquire tangible fixed assets<br>**Net cash flow from investing activities**<br>**Net increase in cash and cash equivalents**<br>**Cash and cash equivalents at beginning of the period**<br>**Cash and cash equivalents at end of the period**<br>**Cash and cash equivalents consists of:**<br>Cash at bank and in hand<br>**Cash and cash equivalents at end of the period**<br>23A|2023<br>£000<br>230<br>(23)<br>(23)<br>207<br>1,691<br>1,898<br>1,898<br>1,898|2022<br>£000<br>108<br>(49)|
|---|---|---|
|||(49)|
|||59<br>1,632|
|||1,691|
|||1,691<br>1,691|



38 



**Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

## **1 Summary of significant accounting policies** 

## **(a) General information and basis of preparation** 

Sheffield Museums Trust is a limited company and charity registered in England. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are education, the operation of museums and the care and development of Sheffield’s collections. 

The charity constitutes a public benefit entity as defined by FRS 102. 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 the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice. 

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £000. 

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. 

The consolidated statement of financial activities (SOFA) and consolidated balance sheet consolidate the financial statements of the trust and its subsidiary undertakings. The result of the subsidiary are consolidated on a line by line basis. 

The trust has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of financial activities in these financial statements. 

## **(b) Funds** 

Unrestricted funds 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. 

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. 

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 cost 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. 

## **(c) Income recognition** 

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. 

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled. 

Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on 

39 



## **Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

the basis of the value of the gift to the charity. For example, the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure. 

No amount is included in the financial statements for volunteer time in line with the SORP. Further detail is given in the Trustees’ Annual Report. 

Fixed asset gifts in kind are recognised when receivable and are included at fair value. They are not deferred over the life of the asset. 

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed. 

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred. 

The charity receives government grants in respect of funding from the Arts Council England National Portfolio Organisations grant programme. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred. 

## **(d) Expenditure recognition** 

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings: 

- Costs of raising funds includes charitable fundraising activities and commercial trading operation expenditure; 

- Expenditure on charitable activities includes expenditure incurred on exhibitions, collections and participation; and operational costs including building management, visitor services and overheads 

- Other expenditure represents those items not falling into the categories above. 

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose. 

## **(e) Support costs allocation** 

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources. Premises overheads have been allocated to operational costs and other overheads have been allocated on a proportionate basis. 

Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. 

The analysis of these costs is included in note 6. 

40 



## **Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

## **(f) Tangible fixed assets** 

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. 

Expenditure of less than £1,000 is normally not capitalised unless it forms part of a larger project which has either a) an aggregate value in excess of £1,000 or b) has been specifically designated as a capital project by management. In all cases the decision to capitalise expenditure or otherwise will be made on an item by item basis with regard to the nature of the items and the economic benefits derived. 

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: 

Leasehold Property improvements 4% or period of lease, whichever is lower Gallery improvements 4 - 12.5% Plant and machinery 10% Fixtures and fittings 10 – 33% Motor Vehicles 33% 

Large scale capital projects are accounted for as capital works in progress. As the project is completed, transfers are made between capital works in progress and the most appropriate fixed asset account. 

## **(g) Heritage assets** 

Heritage assets are recognised on the balance sheet and initially measured at cost when purchased or if donated, their valuation. Assets are subsequently stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Fair values for donated assets are estimated by reference to market prices. 

Where information on the cost or valuation of heritage assets is not available or the cost of providing such information significantly outweighs any benefit to the users of the accounts then heritage assets are not recognised on the balance sheet. 

Acquisitions only arise when donated to the charity or if it is believed that they will further the charity’s objectives. Once acquired they will be preserved by the charity in order to keep their historical, artistic, scientific, technological, geophysical or environmental qualities to such a high level as to contribute to knowledge and culture. A register of all assets held by the charity is available and the assets themselves are accessible to the public with prior agreement. Heritage assets are to be held for the foreseeable future. 

## **(h) Stocks** 

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the average cost formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. 

## **(i) Debtors and creditors receivable / payable within one year** 

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. 

41 



**Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

## **(j) Loans and borrowings** 

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value. 

## **(k) Impairment** 

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. 

## **(l) Provisions** 

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. 

## **(m) Leases** 

Rentals payable and receivable under operating leases are charged to the SoFA on a straight line basis over the period of the lease. 

## **(n) Employee benefits** 

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. 

The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. 

## **(o) Termination** 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 

The charity also has a closed defined benefit plan for the benefit of employees who were in the scheme at the date of merger. A liability for the charity’s obligations under the plan is recognised net of plan assets. The net change in the net defined benefit liability is recognised as the cost of the defined benefit plan during the period. Pension plan assets are measured at fair value and the defined benefit obligation is measured on an actuarial basis using the projected unit method. Actuarial valuations are obtained at least triennially and are updated at each balance sheet date. 

## **(p) Tax** 

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. 

## **(q) Going concern** 

The Trustees believe it is appropriate to prepare these financial statements on a going concern basis. 

In coming to this conclusion the Trustees have reviewed income and expenditure and cashflow forecasts to March 2025. These forecasts assume a trading deficit and have been subject to sensitivity analysis relating to unsecured income, commercial performance and cost pressures. 

42 



## **Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

Positive negotiations are ongoing with Sheffield City Council about an increase in the annual service charge to offset this deficit whilst maintaining an appropriate reserves position. 

Notwithstanding the outcome of these negotiations, taking account of the current cash and reserves position and the sensitised forecasts, the Trustees have a reasonable expectation that the Trust will be able to operate as a going concern for a period of at least 12 months following approval of these financial statements. 

## **(r) Judgements and key sources of estimation uncertainty** 

The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements: 

- i. Useful economic lives of tangible assets 

   - The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 13 for the carrying amount of the property plant and equipment. 

## ii. Dilapidations Provision 

- The provision for dilapidations reflects anticipated future expenditure on the repair of leased premises based on current assessments of the condition and the necessary repairs requirement in the short term. The Trust has full repairing lease obligations for two properties, Weston Park Museum and Millennium Galleries and lesser obligations at other sites. 

## iii. Pensions 

The pension liability is calculated using assumptions on the discount rate, increases in inflation, salaries, pension and morality. The discount rate is determined by reference to market yields on high quality corporate bonds. The rates of inflation, salaries, pension and morality are detailed in the notes of the accounts. 

## iv. Support cost allocations 

- Allocation of support costs is estimated based on resources used as detailed in the expenditure – operational costs noted above. 

43 



**Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

## **2 Income from donations and legacies** 

|Donations<br>Grants|2023<br>£000<br>272<br>1,070<br>1,342|2022<br>£000<br>127<br>1,336|
|---|---|---|
|||1,463|



Income from donations and legacies was £1,342k (2022 - £1,463k) of which £255k (2022 - £441k) was attributable to restricted and £1,087k (2022 - £1,022k) was attributable to unrestricted funds. 

Included in grants is £814k (2022- £814k) of government grants received from Arts Council England National Portfolio Organisations Programme. 

## **3 Income from charitable activities** 

|Charitable activities<br>Management Service Charge|2023<br>£000<br>202<br>1,741<br>1,943|2022<br>£000<br>236<br>1,741|
|---|---|---|
|||1,977|



Income from charitable activities was £1,943k (2022 - £1,977k) of which £nil (2022 - £nil) was attributable to restricted and £1,943k (2022 - £1,977k) was attributable to unrestricted funds. 

44 



**Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

## **4 Income from other trading activities** 

|Commercial trading income<br>All income from other trading activities was attributable to unrestricted funds.<br>**Other income**<br>SCC – asset maintenance support<br>Other ancillary income||2023<br>£000<br>924<br>924<br>2023<br>£000<br>100<br>29<br>129|2022<br>£000<br>661<br>661<br>2022<br>£000<br>100<br>46<br>146|
|---|---|---|---|
|||||
|||||



## **5 Other income** 

Income from other sources was £129k (2022 - £146k) of which £100k (2022 - £100k) was attributable to restricted and £29K (2022 - £46k) was attributable to unrestricted funds. 

45 



## **Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

## **6 Analysis of expenditure** 

|**Raising funds**<br>Trading activities<br>Fundraising costs<br>**Charitable activities**<br>Exhibitions, collections<br>and participation<br>Operational costs<br>**Total Expenditure**<br>**Raising funds**<br>Trading activities<br>Fundraising costs<br>**Charitable activities**<br>Exhibitions, collections<br>and participation<br>Operational costs<br>**Total Expenditure**|**2023**<br>**2023**<br>**2023**<br>**2023**<br>**2023**<br>**2023**<br>**Staff Costs**<br>**Programme**<br>**Costs**<br>**Building and**<br>**overhead costs**<br>**Governance**<br>**Depreciation**<br>**Total**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**284**<br>**-**<br>**324**<br>**8**<br>**19**<br>**635**<br>**11**<br>**-**<br>**10**<br>**-**<br>**-**<br>**21**<br>**816**<br>**370**<br>**-**<br>**2**<br>**-**<br>**1,188**<br>**1,182**<br>**-**<br>**1,348**<br>**32**<br>**833**<br>**3,395**|
|---|---|
||**2,293**<br>**370**<br>**1,682**<br>**42**<br>**852**<br>**5,239**|
||**2022**<br>**2022**<br>**2022**<br>**2022**<br>**2022**<br>**2022**<br>**Staff Costs**<br>**Programme**<br>**Costs**<br>**Building and**<br>**overhead costs**<br>**Governance**<br>**Depreciation**<br>**Total**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>**257**<br>**-**<br>**217**<br>**6**<br>**23**<br>**503**<br>**40**<br>**-**<br>**9**<br>**-**<br>**-**<br>**49**<br>**902**<br>**386**<br>**-**<br>**3**<br>**-**<br>**1,291**<br>**1,137**<br>**-**<br>**1,377**<br>**23**<br>**835**<br>**3,372**|
||**2,336**<br>**386**<br>**1,603**<br>**32**<br>**858**<br>**5,215**|



Staff costs includes wages and salaries, training and development and other staffing overheads. 

Programme costs are the costs of the creative programme, learning programmes and the costs of the care and development of the collections. 

Building and overhead costs are the operational costs of maintaining and opening sites and administrative overheads. 

£1,006k (2022 - £1,272k) of the above costs were attributable to restricted funds. £4,233k (2022 - £3,943k) of the above costs were attributable to unrestricted funds. 

46 



**Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

|**7**<br>**Governance costs**<br>Auditor’s fee<br>Auditor’s remuneration – other<br>Professional fees<br>**8**<br>**Net expenditure for the period**<br>Net expenditure is stated after charging:<br>Depreciation of tangible fixed assets<br>Loss on transfer of heritage asset to the collection of Sheffield City Council<br>Loss on sale of tangible fixed assets<br>Operating lease rentals<br>**9**<br>**Auditor’s remuneration**<br>Fees payable to the charity’s auditor and its associates for the audit of the<br>charity’s annual accounts<br>Fees payable to the charity’s auditor and its associates for other services:<br>Audit of the charity’s subsidiaries<br>Taxation compliance<br>Other services – independent examination of grant funding|||2023<br>£000<br>27<br>6<br>9<br>42<br>2023<br>£000<br>852<br>-<br>-<br>4<br>2023<br>£000<br>21<br>6<br>6<br>-<br>12<br>33||2022<br>£000<br>23<br>9<br>-|
|---|---|---|---|---|---|
||||||32|
||||||2022<br>£000<br>858<br>86<br>3<br>2<br>2022<br>£000<br>18|
|||||||
||||||5<br>5<br>4<br>14|
||||||32|



47 



**Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

## **10 Trustees' and key management personnel remuneration and expenses** 

The trustees neither received nor waived any remuneration during the year (2022: £Nil). 

The total amount of employee benefits received by key management personnel is £255k (2022 -£255k). The trust considers its key management personnel in 2023 to compromise 3 employees – Chief Executive, Director of Programmes and Director of Finance & Resources. 

The trustees did not have any expenses reimbursed during the year (2022 - £nil ). 

## **11 Staff costs and employee benefits** 

The average monthly number of employees and full time equivalent (FTE) during the period was as follows: 

|Raising funds<br>Charitable Activities:<br>Exhibitions, collections and Participation<br>Operations|2023<br>2023<br>2022<br>restated<br>2022<br>restated<br>Number<br>FTE<br>Number<br>FTE<br>27<br>11<br>22<br>11<br>50<br>33<br>43<br>29<br>46<br>29<br>53<br>33<br>123<br>73<br>118<br>73|
|---|---|



Staff numbers presented include 31 staff, equivalent to 4 FTE employed on Zero hour contracts (2022: 17 staff, equivalent to 2 FTE). 

The total staff costs and employee benefits were as follows: 

|Wages and salaries<br>Social security<br>Pension costs<br>Consulting fees<br>Termination Payments|2023<br>£000<br>1,858<br>143<br>273<br>-<br>19<br>2,293|2022<br>£000<br>1,898<br>136<br>287<br>-<br>15|
|---|---|---|
|||2,336|



Total redundancy and termination payments amount to £19k (2022 - £15k) and related to voluntary redundancy payments for 3 staff (2022 – voluntary redundancy payment for 2 staff and termination agreements for 4 staff). 

## Recharged employees 

Total payroll costs of £2,293k (2022- £2,336k) include £283k (2022 - £ 257k) of costs that are included in the subsidiary company, SGMT Enterprise Ltd. Of these costs, £176k (2022 - £157k) relates to staff directly employed by SGMT Enterprises Limited, and £107k relates to staff recharged from the parent company to SGMT Enterprises Ltd. 

The number of employees who received total employee benefits (excluding employer pension costs of more than £60,000 is as follows: 

48 



## **Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

- **11 Staff costs and employee benefits (continued)** 

|£60,001 - £70,000<br>£70,001 - £80,000<br>£80,001 - £90,000|2023<br>Number<br>-<br>-<br>1<br>1|2022<br>Restated<br>Number<br>-<br>-<br>1|
|---|---|---|
|||1|



## **12 Interest payable and similar expenses** 

||2023|2022|
|---|---|---|
||£000|£000|
|Interest on net defined benefit pension liability|25|32|



## **13 Tangible fixed assets - Group** 

|Cost or valuation:<br>At 1 April 2022<br>Additions<br>Disposals<br>At 31 March 2023<br>Depreciation:<br>At 1 April 2022<br>Charge for the year<br>Eliminated on disposals<br>At 31 March 2023<br>Net book value:<br>At 31 March 2023<br>At 31 March 2022|Leasehold<br>Property<br>Improvements<br>Plant &<br>Machinery<br>Fixtures and<br>fittings<br>Motor Vehicles<br>Total<br>£000<br>£000<br>£000<br>£000<br>£000<br>22,915<br>986<br>939<br>30<br>24,870<br>-<br>23<br>-<br>-<br>23<br>-<br>-<br>-<br>-<br>-|
|---|---|
||22,915<br>1,009<br>939<br>30<br>24,893|
||13,683<br>832<br>805<br>17<br>15,337<br>773<br>60<br>12<br>7<br>852<br>-<br>-<br>-<br>-<br>-|
||14,456<br>892<br>817<br>24<br>16,189|
||8,459<br>117<br>122<br>6<br>8,704|
||9,232<br>154<br>134<br>13<br>9,533|



49 



**Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

## **13 Tangible fixed assets – Group (continued)** 

## **Tangible fixed assets - Trust** 

|Cost or valuation:<br>At 1 April 2022<br>Additions<br>Disposals<br>At 31 March 2023<br>Depreciation:<br>At 1 April 2022<br>Charge for the year<br>Eliminated on disposals<br>At 31 March 2023<br>Net book value:<br>At 31 March 2023<br>At 31 March 2022|Leasehold<br>Property<br>Improvements<br>Plant &<br>Machinery<br>Fixtures and<br>fittings<br>Motor Vehicles<br>Total<br>£000<br>£000<br>£000<br>£000<br>£000<br>22,915<br>986<br>808<br>30<br>24,739<br>-<br>23<br>-<br>-<br>23<br>-<br>-<br>-<br>-<br>-|
|---|---|
||22,915<br>1,009<br>808<br>30<br>24,762|
||13,683<br>832<br>719<br>17<br>15,251<br>753<br>60<br>11<br>7<br>831<br>-<br>-<br>-<br>-<br>-|
||14,436<br>892<br>730<br>24<br>16,082|
||8,479<br>117<br>78<br>6<br>8,680|
||9,232<br>154<br>89<br>13<br>9,488|



## **14 Subsidiaries** 

The consolidated financial statements of Sheffield Museums Trust include the results of SGMT Enterprises Limited, a wholly owned subsidiary. 

SGMT Enterprises Limited, is a company registered in the UK with the company registration number 04077686. The registered office of SGMT Enterprises Limited is Leader House, Surrey Street, Sheffield, S1 2LH. 

Sheffield Museums Trust owns the entire issued share capital of two ordinary shares of £1 each. 

The principal activity of SGMT Enterprises Limited is the operation of shops, cafes, events and hospitality at sites owned by the Trust. A summary of its trading results is shown below. 

50 



**Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

## **14 Subsidiaries (continued)** 

|**Statement of income and retained earnings**<br>**for the year ended 31 March 2023**<br>Turnover<br>Cost of Sales<br>Staff costs<br>Other operating expenses<br>Other income, including grants<br>Operating profit<br>Interest payable and other expenses<br>Profit before taxation<br>Tax on profit<br>Profit for the financial year<br>**Statement of changes in equity**<br>Profit and loss account at the beginning of the year<br>Profit for the financial year<br>Gift Aid distribution to charitable parent company<br>Profit and loss account at the end of the year<br>**Summary of Financial position**<br>**Net assets**|**2023**<br>**£’000**<br>**924**<br>**(326)**<br>**(283)**<br>**(63)**<br>**2**<br>**254**<br>**(10)**<br>**244**<br>**(2)**<br>**242**<br>**14**<br>**242**<br>**(240)**<br>**16**<br>**2023**<br>**£’000**<br>**16**|2022<br>£’000<br>660<br>(241)<br>(257)<br>(47)<br>7|
|---|---|---|
|||122|
|||(9)|
|||<br>113|
|||(6)|
|||107|
|||(93)<br>107<br>|
|||14|
|||2022<br>£’000<br>**14**|



## **15 Heritage assets** 

|Cost / valuation:<br>At 1 April 2022<br>Transferred to Sheffield City Council<br>At 31 March 2023<br>Depreciation:<br>At 1 April 2022<br>Eliminated on disposals<br>At 31 March 2023<br>Net book value:<br>At 31 March 2022<br>At 31 March 2023|Assets held at valuation<br>£000<br>-<br>-|
|---|---|
||-|
||-<br>-|
||-|
||-|
||-|



51 



**Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

## **15 Heritage assets (continued)** 

The sole heritage asset transferred on merger was a Simplex car that was donated to Sheffield Industrial Museum Trust in 1999. 

In 2022, the Simplex car was transferred at a value of £92,637 to the collection of Sheffield City Council. 

A long-term loan of £92,637 from Sheffield City Council was settled by the transfer of the Simplex car from Sheffield Museums Trust to Sheffield’s collections. 

This transaction resulted in a recognised loss of £86k charged to charitable activities in the prior year. However, the transfer settled a long-term creditor and also reflected the Trust’s role as a manager of collections rather than as an owner of collections. 

The collections managed by Sheffield Museums Trust remain the property of Sheffield City Council and the Trust’s management of them is governed by a collection’s agreement. 

The standards of care adopted by the Trust are governed by the requirements of the National Museum Accreditation Scheme. 

## **16 Stocks** 

||Group|Group|Trust|Trust|
|---|---|---|---|---|
||2023|2022|2023|2022|
||£000|£000|£000|£000|
|Goods for resale|69|62|-|-|



All stock at the period end is held by SGMT Enterprises Ltd to support commercial trading activities 

Impaired stock of £2k (2022 £2k) has been recognised as an expense. 

## **17 Debtors** 

|Trade debtors<br>Prepayments and accrued income<br>Amounts owed by group undertakings<br>Other debtors|Group<br>2023<br>£000<br>80<br>151<br>-<br>127<br>358|Group<br>2022<br>£000<br>70<br>135<br>-<br>83<br>288|Trust<br>2023<br>£000<br>26<br>129<br>173<br>131<br>459|Trust<br>2022<br>£000<br>41<br>130<br>242<br>83|
|---|---|---|---|---|
|||||496|



52 



## **Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

## **18 Creditors: amounts falling due within one year** 

|Trade creditors<br>Other tax and social security<br>Accruals and deferred income<br>Other creditors|Group<br>2023<br>£000<br>2<br>62<br>309<br>-<br>373|Group<br>2022<br>£000<br>22<br>70<br>212<br>-<br>304|Trust<br>2023<br>£000<br>2<br>62<br>236<br>-<br>300|Trust<br>2022<br>£000<br>22<br>63<br>162<br>-|
|---|---|---|---|---|
|||||247|



## **19 Operating Leases** 

Total future minimum lease payments under non-cancellable operating leases are as follows: 

|Not later than one year<br>Later than one and not later than five years<br>Later than five years|2023<br>£000<br>-<br>-<br>-|2022<br>£000<br>2<br>-|
|---|---|---|
|||2|



## **20 Provisions for liabilities** 

|At beginning of period<br>Released during the year<br>Additions during the year<br>At 31 March 2023|Dilapidation<br>Provision<br>£000<br>399<br>(23)<br>138|
|---|---|
||514|



The provision for dilapidations relates to identified dilapidations at museum sites and is based on building surveyor reports undertaken by a consultant third party. The provision relates wholly to the assets of the Trust. 

53 



**Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

## **21 Fund reconciliation** 

## **Unrestricted funds** 

|**restricted funds**||
|---|---|
|Unrestricted<br>Pension reserve<br>Designated funds|Balance at<br>1 April<br>2022<br>Income<br>Expenditure<br>Transfers<br>Gains /<br>(losses)/<br>taxation<br>Balance at<br>31 March<br>2023<br>£000<br>£000<br>£000<br>£000<br>£000<br>£000<br>2,413<br>3,983<br>(4,105)<br>-<br>44<br>2,335<br>(883)<br>-<br>(128)<br>-<br>1,011<br>-<br>-<br>-<br>-<br>-|
||1,530<br>3,983<br>(4,233)<br>-<br>1,055<br>2,335|



|Unrestricted<br>Pension reserve<br>Designated funds<br>**estricted funds**<br>Capital Depreciation<br>Reserve<br>Social History<br>Collection Recovery<br>Fund<br>Acquisition Fund<br>Lifecycle Fund<br>Restricted Projects|Balance at<br>1 April<br>2021<br>Income<br>Expenditure<br>Transfers<br>Gains /<br>(losses)/<br>taxation<br>Balance at<br>31 March<br>2022<br>£000<br>£000<br>£000<br>£000<br>£000<br>£000<br>2,445<br>3,706<br>(3,784)<br>-<br>46<br>2,413<br>(1,470)<br>-<br>(159)<br>-<br>746<br>(883)<br>24<br>(24)<br>-<br>-<br>999<br>3,706<br>(3,943)<br>(24)<br>792<br>1,530|
|---|---|
||Balance at<br>1 April 2022<br>Income<br>Expenditure<br>Transfers<br>Balance at 31<br>March 2023<br>£000<br>£000<br>£000<br>£000<br>£000<br>8,138<br>-<br>(756)<br>9<br>7,391<br>43<br>-<br>(5)<br>-<br>38<br>52<br>2<br>(3)<br>-<br>51<br>89<br>100<br>(2)<br>(9)<br>178<br>136<br>253<br>(240)<br>-<br>149|
||8,458<br>355<br>(1,006)<br>-<br>7,807|



## **Restricted funds** 

54 



## **Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

## **21 Fund reconciliation (continued)** 

|Capital<br>Depreciation<br>Reserve<br>Social History<br>Collection Recovery<br>Fund<br>Acquisition Fund<br>Lifecycle Fund<br>Restricted Projects|Balance at 1<br>April 2021<br>Income<br>Expenditure<br>Transfers<br>Balance at 31<br>March 2022<br>£000<br>£000<br>£000<br>£000<br>£000<br>8,778<br>-<br>(758)<br>118<br>8,138<br>46<br>-<br>(3)<br>-<br>43<br>50<br>-<br>2<br>-<br>52<br>-<br>100<br>(11)<br>-<br>89<br>291<br>441<br>(502)<br>(94)<br>136|
|---|---|
||9,165<br>541<br>(1,272)<br>24<br>8,458|



## **Fund descriptions** 

## Restricted funds 

The capital depreciation reserve represents restricted grants received to finance capital expenditure. The grants have been recognised as restricted income in the Statement of Financial Activities, but the cost of the assets has been capitalised rather than recognised as expenditure. The reserve is reduced each year by an amount equivalent to the depreciation charged on these assets. 

The Social History Collection Recovery fund was created following the receipt of insurance monies to refurbish items that were damaged whilst in a former store at Kelham Island. The aim is to spend the monies on conservation and new storage facilities to improve access to the collection. 

The acquisition fund has been set up to allow the Trust to acquire further items for the collections. The source of this is income generated from the sale of surplus assets or donations made specifically for this purpose. 

The Lifecycle fund represents income received from Sheffield City Council under the lifecycle provision of the Services Agreement. Lifecycle funding is a contribution towards the maintenance costs of Millennium Gallery and Leader House. 

Restricted projects are those where income has been received in the current year to fund future specific activities. 

## **Transfers** 

Transfers between funds represent fixed asset depreciation. 

55 



## **Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

## **22 Analysis of net assets between funds** 

|Fixed assets<br>Cash and current investments<br>Other current assets / liabilities<br>Creditors more than one year<br>Provisions / pensions<br>Total<br>Fixed assets<br>Cash and current investments<br>Other current assets / liabilities<br>Creditors more than one year<br>Provisions / pensions<br>Total|Unrestricted<br>funds<br>Designated<br>funds<br>Restricted<br>funds<br>Total<br>2023<br>2023<br>2023<br>2023<br>£000<br>£000<br>£000<br>£000<br>1,313<br>-<br>7,391<br>8,704<br>1,516<br>-<br>382<br>1,898<br>20<br>-<br>34<br>54<br>-<br>-<br>-<br>-<br>(514)<br>-<br>-<br>(514)|
|---|---|
|||
||2,335<br>-<br>7,807<br>10,142|
||Unrestricted<br>funds<br>Designated<br>funds<br>Restricted<br>funds<br>Total<br>2022<br>2022<br>2022<br>2022<br>£000<br>£000<br>£000<br>£000<br>1,395<br>-<br>8,138<br>9,533<br>1,474<br>-<br>217<br>1,691<br>(57)<br>-<br>103<br>46<br>-<br>-<br>-<br>-<br>(1,282)<br>-<br>-<br>(1,282)|
|||
||1,530<br>-<br>8,458<br>9,988|



## **23 Reconciliation of net expenditure to net cash flow from operating activities** 

|**econciliation of net expenditure to net cash flow from operating activities**|||
|---|---|---|
|Net expenditure for period<br>Depreciation and impairment of tangible fixed assets<br>Loss on disposal of tangible fixed assets<br>Loss on disposal of heritage assets<br>FRS 102 Pension Adjustment<br>(Increase) in stock<br>(Increase) / decrease in debtors<br>Increase / (Decrease) in creditors<br>Net cash flow from operating activities|2023<br>£000<br>(901)<br>852<br>-<br>-<br>129<br>(7)<br>(27)<br>184<br>230|2022<br>£000<br>(968)<br>858<br>3<br>86<br>159<br>(9)<br>65<br>(86)|
|||108|



56 



**Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

## **23A Analysis of changes in net debt** 

|Cash and cash equivalents<br>Total net cash|2022<br>Cash flows<br>2023<br>£000<br>£000<br>£000|
|---|---|
||1,691<br>207<br>1,898|
||1,691<br>207<br>1,898|



## **24 Pensions and other post-retirement benefits** 

The trust currently provides post-retirement benefits to employees in three ways 

## a) Defined contribution pension plan – Now pensions 

The charity operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £30k (2022 - £30k). 

This is the schemes current open retirement scheme and is auto-enrolment compliant. Employer contributions are currently 3% of basic pay and employee contributions are 5% of basic pay. 

## b) Defined contribution pension plan – Scottish Widows 

From 1 April 1999 until 31 December 2012 employees of Sheffield Galleries and Museums Trust were eligible to join Sheffield Galleries & Museums Trust Group Personal Pension Plan operated by Scottish Widows. Employer contributions to the plan are 7.5% of basic pay. 

The amount recognised in the period was £31k (2022 - £31k). 

## c) Defined benefit pension plans 

Employees who transferred from Sheffield City Council to Sheffield Galleries & Museums Trust on 1 April 1998 and employees who transferred to Sheffield Museums Trust from Sheffield Industrial Museums Trust on 1 April 2021 are members of the South Yorkshire Pension Scheme. This is a defined benefit pension plan. The pension plan is funded by the payment of contributions and assets of the plan are held in a separately administered fund. 

The most recent comprehensive actuarial valuation of pension plan assets and the present value of the defined benefit obligation were carried out at 31 March 2023. 

57 



**Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

## **24 Pensions and other post-retirement benefits (continued)** 

The total cost recognised in the period was as follows: 

|Current service cost<br>Past service cost<br>Plan introductions, changes, curtailments and settlements<br>Administrative expenses<br>Net interest income / expense<br>Recognised in net income / expenditure<br>Recognised in other (gains) / losses<br>Total (gain)/cost recognised<br>Amounts recognised in the balance sheet were as follows:<br>Present value of funded obligations<br>Fair value of plan assets<br>Surplus not recognised|2023<br>£000<br>132<br>-<br>-<br>25<br>157<br>(1,011)<br>(854)<br>2023<br>£000<br>6,764<br>(8,012)<br>1,248<br>-|2022<br>£000<br>163<br>-<br>-<br>32|
|---|---|---|
|||195<br>(746)|
|||(551)|
|||2022<br>£000<br>9,340<br>(8,457)<br>883|



The net pension surplus of £1,248k, in accordance with the requirements of FRS 102, is not recognised in the balance sheet as the charity is unable to recover this surplus from the pension scheme and is not due any refund related to the fund. 

Changes in the present value of the defined benefit obligations were as follows: 

|Opening defined benefit obligation<br>Current service cost<br>Past service cost<br>Interest expense<br>Actuarial (gains)<br>Contributions by scheme participants<br>Benefits paid<br>Closing defined benefit obligation|2023<br>£000<br>9,340<br>132<br>-<br>250<br>(2,683)<br>24<br>(299)|
|---|---|
||6,764|



58 



**Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

## **24 Pensions and other post-retirement benefits (continued)** 

Changes in the fair value of the pension plan assets were as follows: 

|**ensions and other post-retirement benefits (continued)**<br>hanges in the fair value of the pension plan assets were as follows:||
|---|---|
|Opening plan assets<br>Interest income<br>Actual return on plan assets (excluding interest income)<br>Assets distributed on settlements<br>Contributions by charity<br>Contributions by scheme participants<br>Benefits paid<br>Closing plan assets|2023<br>£000<br>8,457<br>225<br>(424)<br>-<br>22<br>24<br>(292)|
||8,012|



The amount that each major class of pension plan assets constitutes of the fair value of the total plan assets was as follows: 

|Equity instruments<br>Debt instruments (bonds)<br>Property<br>Cash<br>The return on plan assets was as follows:<br>Interest income<br>Actual return on plan assets (excluding interest income)<br>Total return on plan assets<br>Balance sheet reconciliation:<br>Deficit in scheme at 1 April<br>Net pension cost charge to income and expenditure account<br>Amount recognised in other gains and losses<br>Actual contributions made by employer|2023<br>£000<br>225<br>(424)<br>(199)<br>2023<br>£000<br>883<br>157<br>(1,011)<br>(29)<br>-||2023<br>£000<br>5,448<br>1,843<br>641<br>80|
|---|---|---|---|
||||8,012|
||||2022<br>£000<br>164<br>581|
||||745|
||||2022<br>£000<br>1,470<br>195<br>(746)<br>(36<br>883|



59 



## **Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

## **24 Pensions and other post-retirement benefits (continued)** 

The principal actuarial assumptions used were as follows: 

|cipal actuarial assumptions used were as follows:|||
|---|---|---|
||2023|2022|
|Pension Increase rate (CPI)|3 %|3.3 %|
|Salary increase rate|3.6 %|4.3 %|
|Discount rate|4.75%|2.7%|
|The mortality assumptions used for longevity (in years) on retirement at age 65 are:|||
|Retiring at the balance sheet date|||
|- Males|20.5|22.6|
|- Females|23.7|25.4|
|Retiring in 20 years|||
|- Males|21.5|24.1|
|- Females|25.2|27.3|



60 



**Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

## **25 Related party transactions** 

Information about related party transactions and outstanding balances is outlined below: 

||||Outstanding||
|---|---|---|---|---|
||Income|Expenditure|balances due|Commitments|
||£000|£000|£000|£000|
|SGMT Enterprises Ltd – Trading Subsidiary|||||
|At 31 March 2023|-|-|172|-|
|At 31 March 2022|-|11|242|-|
|Sheffield City Council – major funder|||||
|At 31 March 2023|1,880|(120)|5|-|
|At 31 March 2022|1,928|(52)|-|-|
|DBA Consulting – Interim Chief Executive|||||
|At 31 March 2023|-|-|-|-|
|At 31 March 2022|-|(7)|-|-|
|Richard Abdy – Trustee and Director of A.R.||-|-|-|
|Wentworth (Sheffield) Ltd *|||||
|At 31 March 2023||-|-|-|
|At 31 March 2022||(2)|-|-|
|Maxine Greaves – Trustee and Director of|||||
|True Talk Africa C.I.C **|||||
|At 31 March 2023||-|-|-|
|At 31 March 2022||(4)|-|-|
|Arun Singh – Trustee and Director of City|||||
|Taxis Holdings Ltd **|||||
|At 31 March 2023||-|-|-|
|At 31 March 2022||(1)|-|-|



** All transactions have been independent of Trustee involvement and on usual commercial terms. 

61 



**Sheffield Museums Trust Notes to the Financial Statements Year Ended 31 March 2023** 

## **26 Tax** 

|UK corporation tax<br>Current tax on income for the year<br>Museums and Galleries Tax Relief<br>Corporation tax – subsidiary<br>Tax credit for the year (see above)<br>**27**<br>**Capital Commitments**<br>At 31 March 2023, the Trust had the following capital commitments:<br>Contracts for future expenditure not provided in the financial<br>statements - leasehold property improvements||2023<br>£000<br>(44)<br>(44)<br>2023<br>£000<br>(46)<br>2<br>(44)<br>2023<br>£000<br>99<br>99||2022<br>£000<br>(46)|
|---|---|---|---|---|
|||||(46)|
|||||2023<br>£000<br>(52)<br>6|
|||||(46)|
|||||2023<br>£000<br>-|
|||||-|



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