## **THE WALPOLE SOCIETY** 

Department of Prints and Drawings, The British Museum Great Russell Street London WC1B 3DG 

**REPORT OF THE EXECUTIVE COMMITTEE TO THE MEMBERS** 

**FOR THE YEAR ENDED 31st MARCH 2021** 

**President** 

Sir Nicholas Goodison, F.B.A., F.S.A. 

**Trustees** 

_Chairman_ Antony Griffiths F.B.A. _Editor_ Richard Stephens _Honorary Treasurer_ Elizabeth Fullerton-Rome F.C.A. 

Katherine Coombs MA, FSA Dr. Oliver Cox (appointed 3 November 2020) Gillian Forrester (appointed 3 November 2020) Dr John Goodall (resigned 3 November 2020) Felicity Myrone FSA Dr Martin Postle   PhD FSA MaryAnne Stevens (resigned 3 November 2020) Dr Danielle Thom F.R.S.A Ian Warrell Dr Jonathan Yarker 

**Membership Secretary** Paul Celerier, F.C.A. 

( _**Secretary@walpolesociety.org.uk**_ ) 

**Registered address** 

The Walpole Society c/o Department of Prints and Drawings The British Museum, Great Russell Street, London WC1B 3DG 

**Independent Examiner** Moore Kingston Smith LLP, Chartered Accountants Devonshire House 60 Goswell Road London EC1M 7AD **Investment advisers** Cazenove Capital Management Limited 1 London Wall Place London EC2Y 5AU **Bankers** National Westminster Bank PLC 214 High Holborn London WC1V 7BX **Website www.walpolesociety.org.uk** 

**Registered charity No.270280** 



**The Walpole Society Annual Report and Financial Statements for the year ended 31 March 2021** 

## **CHAIRMAN’S STATEMENT** 

Although this annual report covers the financial year from 1 April 2020 to 31 March 2021, I have delayed writing my preface until August in order to bring our members more up-to-date news. Unhappily, this year the news I have to bring is of the death in July of our long-standing president, Sir Nicholas Goodison. He took over from Sir Oliver Millar in 2008, and with Lady Goodison was a notable donor to the Society. I am sure that many members will have seen one or more of the many obituaries in the national press, as it was Sir Nicholas who was the chief architect of the ‘big bang’ and the transformation of the London stock market. He began as a stockbroker and became Chairman of the Stock Exchange; in later years he served as chairman of TSB. At the same time, he played a most important role in the arts. He was himself a scholar, who wrote standard books on Matthew Boulton’s ormolu and on barometers, and a collector, whose gifts of contemporary craft can be seen in the Fitzwilliam Museum. He was chairman of the National Art Collections Fund, the Crafts Council, the Furniture History Society, and numerous other bodies. His position connecting the worlds of art and commerce was of immense importance when dealing with British governments of either party. He was an excellent President, and we were lucky to have his help for so many years. 

We wish to find a successor who can connect the Society in the same way with the wider world, and we are delighted that Charles Sebag-Montefiore is willing to serve. His name will already be very familiar as he has himself been a member for nearly fifty years, and, for half that time, was our Treasurer. It was he and Sir Brinsley Ford who transformed the Society’s finances and established the capital base that secures our long-term future. He spent his professional life working in corporate finance in the City, but he has a great interest in the history of art collecting in Britain, on which he has published several books; he is currently engaged on an ambitious web-based dictionary of British art collectors. He is a great bibliophile, has been treasurer of innumerable charitable bodies, among them the London Library, and has just stepped down as a Trustee of the National Gallery to which his great library is bequeathed. His name will be before members for election at the AGM in November. 

During the latter half of 2020, we were in discussion with a charitable body that wishes to remain anonymous about a potential grant of £10,000 to support our authors in the production of papers for our annual volumes. The contact was made through the good offices of a long-standing member, Malcolm Rogers, formerly of the National Portrait Gallery and more recently Director of the Museum of Fine Arts in Boston, to whom we are most grateful. The grant was approved and came through at the beginning of this year, so I can now express our gratitude to the charitable body concerned. We have so far made four awards, and committed some two thirds of the funds, to four scholars whose projects have long been in the pipeline but which they have not yet been able to complete. Unfortunately, the recipients are still hampered by the continuing closure of archives and libraries to which they need access. The grant, however, is for three years, and we sincerely hope that this will allow enough time to get these and other potential projects finished. 

Covid has continued to affect our activities, not seriously, but in annoying ways. All our meetings since March 2020 have been held via Zoom. This makes it much easier for all the Committee members to attend, but also makes it more difficult to have a fruitful discussion. Since it is still unclear when the Paul Mellon Centre for the Study of British Art will be able to re-open, we have decided to accept the kind offer from one of our Committee, Jonny Yarker, to hold the AGM at the premises that he and Lowell Libson occupy at 16 Clifford Street, off New Bond Street. Unless Covid restrictions make this impossible, we hope to see some our members there. 

Finally, I can report that this year’s volume has been delayed for reasons outside our control but has now passed the proof stage and is with the printer. It is due to be posted to members during the course of October, and so should arrive at about the same time as these papers. It contains four articles: Paul Binski’s paper on the medieval wall-paintings in Westminster Palace; Claire Spadafora Baes’s publication of the travel journal of William Kent of 1714-7 during his time in Italy; William Aslet’s publication of James Gibbs’ notebook; and Mark Pomeroy and Jonny Yarker’s publication of James Northcote’s letters as a young painter studying under Reynolds and in Rome. 

I wish you all a happy and healthy remainder of 2021 and hope that 2022 will prove an easier year for us all. 

ANTONY GRIFFITHS _Chairman_ 

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**The Walpole Society Annual Report and Financial Statements for the year ended 31 March 2021** 

## **TRUSTEES’ REPORT** 

## **CONSTITUTION** 

The Walpole Society is a charity, registered at the Charity Commission under number 270280. The Walpole Society is governed by a set of Rules adopted at the Annual General Meeting held on 17 September 1997. The Trustees of the Walpole Society, who comprise the Executive Committee, are elected for a term of four years. All the Trustees, whose names are set out above, served during the year. 

## **TRUSTEES** 

Candidates for election as Trustees are proposed by the Trustees or by members of the Walpole Society. They are identified from their personal or professional contacts as individuals who are knowledgeable in the fields falling within the Walpole Society’s scope or who have knowledge or experience which can help the Walpole Society to achieve its objectives. No formal procedures have been put in place for the induction or training of Trustees as they have not been considered necessary, having regard to the criteria exercised in the selection of candidates for election. Ad hoc measures will be taken whenever necessary. 

The Trustees are responsible for managing the affairs of the Walpole Society and for administering its funds and assets within the framework of any general policies agreed at an annual general meeting. 

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’. 

The law applicable to charities in England and Wales requires Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing the financial statements, the Trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles of the Charities SORP; 

- make judgments and estimates which are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures that are disclosed and explained in the financial statements; and 

- prepare the statement of accounts on a going concern basis unless it is inappropriate to presume that the charity will continue its activities. 

The Trustees are responsible for keeping proper accounting records which disclose the financial transactions and the assets and liabilities of the Walpole Society with reasonable accuracy. They also are responsible for safeguarding the assets of the Walpole Society and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

## **CONSULTATIVE COMMITTEE** 

Members of the Consultative Committee are appointed by the Executive Committee. They do not meet as a body, but its members give the benefit of their advice in the area of their respective expert knowledge. The members of the Consultative Committee are: 

|David Alexander|Patrick McCaughey|Professor Allen Staley|
|---|---|---|
|Professor David Bindman|Professor Ronald Paulson|Dr Duncan Thomson|
|Dr Stephen Deuchar|Professor Marcia Pointon|Philip Ward-Jackson|
|Dr Teri Edelstein|The Hon Lady Roberts, DBE|David Way|
|Professor Eric Fernie|Duncan Robinson|Stephen Wildman|
|John Harris|Dr Charles Saumarez Smith|Dr Paul Williamson|



## **OBJECTIVES AND PUBLIC BENEFIT** 

The Walpole Society is a charity and a public benefit entity and was formed to encourage the study of the history of British art. It meets its objectives by publishing, so far as practicable, an annual volume containing transcriptions of original documents and results of research in the history of British art and by publishing research, often by younger scholars, of academic value but which may not be commercially viable. The fields of research include paintings, drawings, prints, miniatures, sculpture and illuminated manuscripts as well as patronage, collecting and travel. The period covered is the whole of the history of British art, from the Middle Ages to the present. The Trustees continue to give due regard to Charity Commission guidance on public benefit. 

## **OBJECTIVES IN THE YEAR AND IN FUTURE** 

The main objective for the financial year ended 31 March 2021 was to prepare, publish and distribute Volume 83, due for publication in the second half of 2021, to continue to plan for subsequent volumes and to decide on any other changes which might be desirable for the benefit of the charity and its members. 

## **GRANT MAKING POLICIES** 

All charitable expenditure is applied to the production, editing, illustrating, printing and posting of the annual volume to Members, in accordance with the objectives. The Walpole Society does not award grants to individuals or to any other organisation, unless the Society has itself received a grant specifically for the purpose of distribution in accordance with its charitable objectives. 

Page | 3 



**The Walpole Society Annual Report and Financial Statements for the year ended 31 March 2021** 

## **RISK MANAGEMENT** 

The Trustees have identified potential major risks and believe that appropriate action has been taken to mitigate such risks. The Trustees continually review the adequacy of the prevailing risk management structure in place. 

## **PREVIOUSLY PUBLISHED VOLUMES** 

Members who wish to order volumes previously published by the Walpole Society should send their orders to: 

Henry Ling Ltd Customer Sales and Services The Dorset Press Dorchester Dorset DT1 1HD United Kingdom Email: Enquiries@henryling.co.uk Tel: +44 (0)1305 251066 

Members may purchase any previously published volume in print at a discounted price. The website sets out full details of all previously published volumes which remain in print and how to purchase them, including the costs (including postage, within the UK and overseas) for members (discounted) and non-members. Members should state clearly that they are members of the Walpole Society and are entitled to the discounted prices. Please note that certain volumes are out of print. 

## **WEBSITE** 

The website can be found at **www.walpolesociety.org.uk** . This site gives full details about the Walpole Society, including: 

- **Contact us** : how to contact the Walpole Society and its officers; 

- **Membership** : how to join (with down-loadable membership form), with details of the special **student membership rate** , and GDPR aspects, including how to notify the Society of a member’s change of address; 

- **Previously published volumes** : list of such volumes and how to order them; 

- **Forthcoming publications** : list of articles in preparation for future volumes; 

- **British Art History Resources** : a list of freely available online resources for the study of the history of British art and architecture from earliest times to the 20th century; 

- **Prospective authors** : information; and 

- **Constitution and governance** . 

## **NEED FOR NEW MEMBERS** 

The Walpole Society currently has approximately 380 members. To continue its work, the Walpole Society needs new members. Membership is by simple application; there are no restrictions on who can join and no limits on the number of members. The annual subscriptions are set out below and on the website. A membership recruitment leaflet is readily available: please contact the Membership Secretary if you would like to have copies or if you can help to recruit new members. His email address is _**Secretary@walpolesociety.org.uk**_ . 

These subscriptions go towards the cost of the production of new volumes. The Walpole Society’s publications are indispensable to all those interested in British art, but in order to continue its essential work, the Walpole Society needs a flourishing membership. Please bring the Walpole Society to the attention of all who could benefit from its publications. 

The minimum annual subscription rates for 2021/22 are unchanged and are as follows: Personal members £45.00 per annum or $90.00 or €75.00 Institutions, libraries and business members £60.00 per annum or $120.00 or €100.00 

## **INTRODUCTORY STUDENT MEMBERSHIP** 

The Walpole Society offers the category of “Introductory Student Member”, under which students can subscribe for a three-year membership at the concessionary rate of £25.00 per annum. It is hoped that this proves attractive to younger art historians, who are encouraged to remain as ordinary members thereafter. 

## **VOLUNTARY PAYMENTS AT HIGHER RATES** 

Voluntary payments at higher rates would be greatly appreciated. The Walpole Society is a registered charity and, like all other charities, must absorb inflationary increases in the costs of its operations. The names of benefactors who subscribe £250 annually or make a single payment of £5,000 or more are printed on the Benefactors’ Page, which appears in each of the annual volumes. 

All enquiries concerning the Walpole Society and membership should be sent to the Membership Secretary, Paul Celerier, whose email address is _**Secretary@walpolesociety.org.uk**_ (tel: +44 (0) 7738 183 473). Enquiries by post should be sent to him at The Walpole Society, c/o The Department of Prints and Drawings, The British Museum, Great Russell Street, London WC1B 3DG. 

Page | 4 



## **The Walpole Society Annual Report and Financial Statements for the year ended 31 March 2021** 

## **DATA PROTECTION** 

The Walpole Society adheres to the UK’s Data Protection Act and only holds personal data in accordance with these rules.  Relevant policies which outline members’ rights under the Data Protection Act are presented on the website of the Walpole Society alongside related forms for members to enquire regarding personal data should they wish to do so. 

## **FINANCE MATTERS** 

The Statement of Financial Activities combines the results of the Operating Fund, which records the unrestricted funds of the Walpole Society, and the Capital and Restricted Funds. During the year ended 31 March 2021, the Walpole Society’s aggregate income increased from £44,136 to £50,733, an increase of £6,597. The chief elements of income are noted below: 

- Aggregate subscription income increased by £73 to £25,518 (2020: £25,445). The Trustees are most grateful to those members who choose to help the charity by paying subscriptions at the higher levels. Aggregate subscription income includes Gift Aid relief, where applicable. This is a tax benefit available to the Walpole Society, as an eligible UK registered charity, which enables it to recover income tax from the H.M. Revenue & Customs. 

- A grant of £10,000 (2020: £nil) was received during the year from a Charitable Trust that wishes to remain anonymous. This is included as a Restricted Fund in these financial statements. 

- Donation received in the year amounted to £28 (2020: £98). The Trustees are most grateful to individuals and organisations who contribute to the charity’s financial well-being in this way. 

- Income from sales of back volumes amounted to £4,241 (2020: £4,690). This is the seventh year in which the Walpole Society has enjoyed the benefit of income received from the contract with JSTOR. 

- Investment income of £10,911 represented a decrease of £2,809 on the income received in the previous year (2020: £13,720). 

Direct charitable expenditure consists of the costs of the Society's volumes. In the year ended 31 March 2021, this amounted to £18,288 (2020: £19,012). 

Expenditure on management and administration is categorised either as the cost of raising funds or as support costs. The former covers the costs of the Membership Secretary, related expenses and the Investment Manager’s fees. These costs amounted to £8,178 (2020: £8,362). Support costs are those not attributable to any single activity but which provide the necessary organisational support for all of the charity’s activities. They include the independent examination fee, the cost of printing and posting the annual report, the expenses of the website and sundry expenditure. In year ended 31 March 2021, they amounted to £3,767 (2020: £3,112). 

Overall, an operating surplus of £10,500 before investment gains was achieved (2020: £13,650). After taking into account realised gains of £6,323 and unrealised gains of £46,967 on the investment portfolio, the Operating Fund result for the year was a net surplus of £63,790 (2020: £25,725 deficit). 

The balance sheet at 31 March 2021 showed net assets of £457,527 (2020: £383,737), with the £73,790 increase reflecting the operating surplus for the year of £10,500, realised and unrealised gains on investments of £53,290 and the £10,000 grant received from an anonymous donor. Net assets comprised the investment portfolio and net current assets, chiefly cash. The investments had a market value at 31 March 2021 of £361,307 (2020: £295,508). Net current assets amounted to £96,220 (2020: £88,229), and cash balances were held at the year-end of £117,824 (2020: £105,902). 

## **FUNDING SOURCES** 

The Walpole Society’s principal recurring sources of funding are members’ subscriptions, investment income, donations and the sales of back volumes. Legacies have been received from time to time, as have grants from other bodies for specific purposes, but these cannot be predicted, and the Trustees do not anticipate such receipts when determining the level of expenditure for each year. 

## **POLICIES ON INVESTMENTS AND RESERVES** 

The Trustees have adopted a balanced investment policy, designed to achieve a fair balance between the Walpole Society’s immediate needs for income, to maintain and support the Walpole Society’s current operations, and for maintaining the value of the portfolio in real terms and hence securing future income. To this end, the Walpole Society’s investment portfolio is almost entirely composed of holdings in collective investment funds focusing respectively on income and capital growth. All of the Walpole Society’s reserves are regarded as expendable funds, although the capital fund is intended to be retained intact. At 31 March 2021, the Capital Reserve stood at £196,828, and expendable reserves stood at £250,699 with £10,000 in Restricted Funds, giving aggregate reserves of £457,527. 

## **IMPACT OF THE CORONAVIRUS** 

The Trustees have assessed the overall impact of the Coronavirus on the activities of the Society and have confirmed that, to date, this is minimal.  Such impact continues to be assessed on an ongoing basis. 

## **The Trustees’ Report is approved by the Trustees and is signed on behalf of the Executive Committee.** 

ELIZABETH FULLERTON-ROME _Honorary Treasurer_ 22nd June 2021 

Page | 5 



**The Walpole Society Annual Report and Financial Statements for the year ended 31 March 2021** 

## **Independent Examiner's Report to the Trustees of The Walpole Society** 

I report to the trustees on my examination of the accounts of The Walpole Society (the Charity) for the year ended 31 March 2021, which are set out on pages 7 to 11. 

## **Responsibilities and basis of report** 

As the trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). 

I report in respect of my examination of the Charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable directions given by the Charity Commission under section 145(5)(b) of the Act 

## **Independent examiner’s statement** 

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: 

- 1) accounting records were not kept in respect of the Charity as required by section 130 of the Act; or 2) the accounts do not accord with those records; or 

- 3) the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination. 

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. 

Karen Wardell (FCCA, ICAEW) For and on behalf of Moore Kingston Smith LLP Chartered Accountants 

Devonshire House 60 Goswell Road London EC1M 7AD 

## **8 September 2021** 

Page | 6 



**The Walpole Society Annual Report and Financial Statements for the year ended 31 March 2021** 

## **THE WALPOLE SOCIETY** 

## **STATEMENT OF FINANCIAL ACTIVITIES** 

## **FOR THE YEAR ENDED ENDED 31st March 2021** 

|**Income from**<br>Subscriptions<br>Annual subscriptions<br>Benefactor subscriptions<br>Sponsorship subscriptions<br>Donations & grants<br>Sales of back volumes<br>Investment income<br>Bank interest<br>**Total Income**<br>**Expenditure on**<br>Direct charitable expenditure<br>Note 2<br>Cost of raising funds<br>Note 3<br>Support costs<br>Note 3<br>**Total Resources Expended**<br>**Net result before gains/(losses) on investments**<br>**Gains/(losses) on investments**<br>Realised<br>Unrealised<br>**Net surplus/(deficit)**<br>**Transfers between funds**<br>**Net Movement in Funds**<br>Funds brought forward at 1st April 2020<br>**Funds carried forward at 31st March 2021**|**Operating**<br>**Fund**<br>**£**<br>22,843<br>2,000<br>675<br>25,518<br>28<br>4,241<br>10,911<br>35<br>40,733<br>18,288<br>8,178<br>3,767<br>30,233<br>10,500<br>6,323<br>46,967<br>**63,790**<br>-<br>**63,790**<br>186,909<br>250,699|**Capital Fund**<br>**(Endowment)**<br>**£**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**-**<br>196,828<br>196,828|**Restricted**<br>**Fund**<br>**£**<br>-<br>-<br>-<br>-<br>10,000<br>-<br>-<br>-<br>10,000<br>-<br>-<br>-<br>-<br>10,000<br>-<br>-<br>**10,000**<br>-<br>**10,000**<br>-<br>10,000|**Total Funds**<br>**2021**<br>**£**<br>**22,843**<br>**2,000**<br>**675**<br>**25,518**<br>**10,028**<br>**4,241**<br>**10,911**<br>**35**<br>**50,733**<br>**18,288**<br>**8,178**<br>**3,767**<br>**30,233**<br>**20,500**<br>**6,323**<br>**46,967**<br>**73,790**<br>**-**<br>**73,790**<br>**383,737**<br>**457,527**|**Total Funds**<br>**2020**<br>**£**<br>23,095<br>1,750<br>600|
|---|---|---|---|---|---|
||||||25,445<br>98<br>4,690<br>13,720<br>183|
||||||44,136|
||||||19,012<br>8,362<br>3,112|
||||||30,486|
||||||13,650<br>4<br>(39,379)|
||||||**(25,725)**|
||||||-|
||||||**(25,725)**<br>409,462|
||||||383,737|



Page | 7 



**The Walpole Society Annual Report and Financial Statements for the year ended 31 March 2021** 

## **THE WALPOLE SOCIETY** 

## **BALANCE SHEET** 

## **31 March 2021** 

|**Listed Investments**<br>Note 4<br>**Current assets**<br>Debtors & prepayments<br>Bank balances & deposits<br>**Current Liabilities**<br>Creditors & accrued charges<br>**Net current assets**<br>**Net assets**<br>Represented by:<br>**Capital Fund**<br>Note 5<br>**Operating Fund**<br>Note 5<br>**Restricted Fund**<br>Note 5|**2021**<br>**2020**<br>**£**<br>**£**<br>**£**<br>**£**<br>**361,307**<br>295,508<br>**1,621**<br>5,466<br>**117,824**<br>105,902<br>**119,445**<br>111,368<br>**(23,225)**<br>(23,139)<br>**(23,225)**<br>(23,139)<br>**96,220**<br>88,229<br>**457,527**<br>383,737<br>**196,828**<br>196,828<br>**250,699**<br>186,909<br>**10,000**<br>-<br>**457,527**<br>383,737|**2021**<br>**2020**<br>**£**<br>**£**<br>**£**<br>**£**<br>**361,307**<br>295,508<br>**1,621**<br>5,466<br>**117,824**<br>105,902<br>**119,445**<br>111,368<br>**(23,225)**<br>(23,139)<br>**(23,225)**<br>(23,139)<br>**96,220**<br>88,229<br>**457,527**<br>383,737<br>**196,828**<br>196,828<br>**250,699**<br>186,909<br>**10,000**<br>-<br>**457,527**<br>383,737|
|---|---|---|
||||
|||383,737|
|||196,828<br>186,909<br>-|
|||383,737|



The notes on pages 9 to 11 form part of these accounts. 

These reports were approved for issue by the Executive Committee at their meeting on 22nd June 2021. 

and signed on their behalf by 

## **ANTONY GRIFFITHS** 

Chairman 

## **ELIZABETH FULLERTON-ROME** 

Honorary Treasurer 

Page | 8 



**The Walpole Society Annual Report and Financial Statements for the year ended 31 March 2021** 

## **Notes to the Financial Statements for the year ended 31 March 2021** 

## **1   Accounting Policies** 

## **Basis of preparation** 

The financial statements have been prepared on a going concern basis under the historical cost convention. 

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) published on 16 July 2014. The Walpole Society, as a charity, is a public benefit entity for the purposes of FRS 102.  Therefore, the Walpole Society prepares its financial statements in accordance with the 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 (The FRS 102 Charities SORP) and the Charities Act 2011. 

## **Going Concern** 

The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the Walpole Society to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular, the Trustees have considered the Walpole Society’s forecasts and projections, including taking account of pressures on income, and have assessed the overall impact of the Coronavirus on the activities of the Society.  After making due enquiry, the Trustees have concluded that there is a reasonable expectation that the Walpole Society has adequate resources to continue in operational existence for the foreseeable future and that the impact of the Coronavirus on the activities of the Society has been minimal to date. The Walpole Society therefore continues to adopt the going concern basis in preparing its financial statements. 

## **Income Recognition** 

All income is recognised when there is entitlement to the funds, the receipt is probable, and the amount can be measured reliably. Income is recognised in the year to which it relates and on an accruals basis. Legacies where received are included when the legacy is received or when the Walpole Society is notified of an impending distribution, whichever is the earlier. Recoverable taxation is recovered on an accruals basis. 

## **Expenditure** 

Expenditure is accounted for on an accruals basis allocated directly to the expenditure headings as far as practically possible to reflect the activities of the Walpole Society. 

## **Fund Accounting** 

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor or are raised by the Walpole Society for specific restricted purposes. Unrestricted funds are funds which are available for use at the discretion of the Trustees in furtherance of the general objects of the Walpole Society. Designated funds are funds which are available for use at the discretion of the Trustees but have been earmarked by them for a specific purpose. 

## **Critical accounting estimates and areas of judgement** 

In the view of the Trustees in applying the accounting policies adopted, no judgements were required which have a significant effect on the amounts recognised in the financial statements, and no estimates or assumptions were made which carry a significant risk of material adjustment in the next financial year. 

## **Valuation of investments** 

Listed investments are recorded initially at their cost and subsequently stated at their fair value at the balance sheet date. The resultant unrealised surplus or deficit is credited or debited to the operating fund. 

## **2    Charitable Expenditure** 

Direct charitable expenditure consists of the costs of the Walpole Society’s volumes. In the year ended 31 March 2021, this totalled £18,288 (2020: £19,012). The charge in this financial year’s accounts relates mainly to the cost of Volume 83, which has an anticipated publication date in the second half of 2021. 

Page | 9 



**The Walpole Society Annual Report and Financial Statements for the year ended 31 March 2021** 

## **Notes to the Financial Statements for the year ended 31 March 2021 (continued)** 

## **3   Other Operating Expenditure** 

These are allocated to the costs of raising funds and charitable activities support costs. 

|**Costs of raising funds**<br>Membership secretary’s fees and expenses<br>Investment manager’s charges<br>**Sub-total: Costs of raising funds**<br>**Charitable support costs**<br>Independent Examiner’s fee<br>Annual report and postage<br>Website and software costs<br>Bank charges<br>**Sub-total: Charitable support costs**<br>**Total other operating expenditure**|**2021**<br>**£**<br>6,431<br>1,747<br>**8,178**<br>1,950<br>657<br>1,059<br>101<br>**3,767**<br>**11,945**|**2020**<br>**£**<br>6,598<br>1,764|
|---|---|---|
|||**8,362**|
|||1,925<br>691<br>360<br>136|
|||**3,112**|
|||**11,474**|



## 4 **Investments** 

As at 31 March 2021, the investment portfolio comprised holdings in collective investment vehicles, as summarised below: 

|_Cost_<br>_£_<br>UK Equity funds<br>107,202<br>International Equity funds<br>95,347<br>UK Bond funds<br>58,548<br>Multi-Asset funds<br>4,738<br>Alternatives funds<br>57,019<br>Total portfolio<br>322,854<br>**Analysis of movements during year**<br>Market value at beginning of year<br>Sale of shares<br>Purchase of shares<br>Realised gains<br>Unrealised gains / (losses)<br>Market value at end of year<br>Historical cost at end of year|_Cost_<br>_£_<br>107,202<br>95,347<br>58,548<br>4,738<br>57,019|_Prospective_<br>_Market value_<br>_Annual income_<br>_Yield on_<br>_market_<br>_value_<br>_£_<br>_£_<br>110,747<br>3,866<br>3.49%<br>124,792<br>2,676<br>2.14%<br>62,444<br>2,056<br>3.29%<br>6,023<br>95<br>1.57%<br>57,301<br>2,218<br>3.87%<br>361,307<br>10,911<br>3.02%<br>**2021**<br>**2020**<br>**£**<br>**£**<br>295,508<br>342,356<br>(62,982)<br>(39,196)<br>75,491<br>31,723<br>6,323<br>4<br>46,967<br>(39,379)<br>361,307<br>295,508<br>322,854<br>301,924|
|---|---|---|
||322,854||
|||**2021**<br>**£**<br>295,508<br>(62,982)<br>75,491<br>6,323<br>46,967<br>361,307|
|||322,854|



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**The Walpole Society Annual Report and Financial Statements for the year ended 31 March 2021** 

## **Notes to the Financial Statements for the year ended 31 March 2021 (continued)** 

## **5   Trust funds** 

The Capital Fund was established by the late Sir Brinsley Ford to further the objects of the Walpole Society, including inter alia the reduction of the backlog of articles awaiting publication, the support of further research relating to British art and artists and the introduction of more illustrations in the volumes. The Capital Fund is represented by investments selected both to generate annual income and to seek to secure long-term capital growth. 

The Operating Fund comprises the operating income of the Walpole Society, which includes investment income from the Capital Fund, which may be spent without restriction to further the objectives of the Walpole Society. 

The Restricted Fund comprises an amount received during the year from an anonymous donor to fund the annual publication of documents relating to the history of British art. 


**----- Start of picture text -----**<br>
||||||
|---|---|---|---|---|
|6   Analysis of net assets|
|Investments|Current Assets|Current Liabilities|Total|
|£|£|£|£|
|-|-|
|Capital fund|196,828|196,828|
|Operating fund|164,479|109,445|(23,225)|250,699|
|Restricted fund|-|10,000|-|10,000|
|361,307|119,445|(23,225)|457,527|

**----- End of picture text -----**<br>


## **7   Related Party Transactions** 

One of the Trustees, the Editor, received £5,000 (2020: £5,000) as remuneration for services rendered to the charity as Editor in the year ended 31 March 2021.  Apart from the Editor, who received reimbursement of software and travel costs amounting to £56, no Trustee received remuneration or reimbursements of expenditure in his or her capacity as Trustee in the current or prior period.  No Trustee made any donation to the charity in the year under review. 

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