Chaplty Reglstratlon No. 270309 MARX MEMORIAL LIBRARY ANNUAL REPORT, INDEPENDENTLY EXAMINED ACCOUNTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
MARX MEMORIAL LIBRARY LEGAL AND ADMINISTRATIVE INFORMATION Trustees H Bains M Davis A Field J Foster A Gordon J Hendy M Mayo B De La Motte J Mowatt J Rosen C Webbe J While R Clatke R Hayes R Kelly A Sheikh Charity number 270309 Prfnclpal address 37A crkernVell Green London United Kingdom ECIR ODU Independent examiner Amold Hill & Go LLP Craven House 16 Northumbedand Avenue London WC2N SAP Bankern The Co-Oper8tive Bank PLC 1 Islington High Street London United Kingdom N1 gTR Investment adv150rs CCLA Investment Management Limiled Senator Hous8 85 Queen Vlctoria Str8et London EC4V 4ET
MARX MEMORIAL LIBRARY CONTENTS Page Trustees, report ststement of Irust8es' responslbilities Independent examiner's report 10 statement of financial activities Balance sh8et 13 Notes to the financial ststements 14-26
MARX MEMORIAL LIBRARY TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 The trustees present their report and financ1 statements for the year ended 31 December 2021. The accounts have been prepared in accordan with the accounting policies and comply with the Charivs constitution, the Charities Act 2011 and the Slalement of Recommended Practice, "Accounting and Reporting by Charities., issued In March 2005. Our purpose The M8rx Memorial Library {"MML°l is a registered charity devoted to Ihe'advancement of education, learning and knowledge by the provision, acqubsition and maintenance of a library of books, periodicals, manuscripts, artefacts, electroniG material and other media relating to all aspects of the science of Marxism and of the history of Socialism and the trade tjnion and working<lass movements for all persons desiring to make boria tide use thereof for the said object". The Trustees believe that.. MML provides a unique space foT the study of our rich and r8dlcal labour movement heritage and the powerful stimulus provided by Marxist thinking. MML provides the resourc88 necessary for Ihe provision of education in th8 science of Marxism and the history of socialism. MML has through these educational resources th8 potèntial to make 8 signifi(3nt contribution lo current inlellectual and cultural debate to enrich civil society. MML'S members are o¥ucial to its future success as we sed( to raise its profile, generate income, keep up-t speed with the latest developments in Marxist and socaalist thinking and make the colledion more accessible lo a wder audience. Our objectlves and challenges In the past five years the MML has made slrldes g8ining grant funding for project work. broadening its education offer, including hosb'ng bNO major intemational conferences -boosting visitor numbers, embarking on thfy professional management of collections, roviewing gov8manc8 structures, adding to inv8Stm8nts, and working more closely withln the labour mov8menl. Improve the space and resource facilitl8s for members and visitors in accessing MML'S Golleclions to 8dvantsge so as lo develop activities with partner organisations in the field of education. Sustain and grow activity and membership levels from their cur8nt lgvels, continue to balance the books, examining income and cost wth a view lo move towards break-even and flnanclal sustainability. Trustees The Trustees are full membeTS of the cornmitt88, or board of management. known as the General Gommittee IGCI. Membprs of the General Committee seTve for 8 four-year temi of offiGe, with a quarter of the committee retiring every year. The retiring members may apply lor re-election. The election is open lo the membership in an annual ballot, which takes place at the AGM. Contracts wlth trnstees No Irustees receive remuneration for SeIce$ to MML as employees and the General Committee is Gommitted lo obseIng 811 guid8nce from the Charity Commission In this respect. There were no other contracts or agreements subsiding during or at the year end of the financ4al period in vA)ich a Trustee of the Charity is, or was, m8terially interested and which is. or was, signrficant in relation lo the business of the Charfly. Publlc beneflt test The charity trustees have complled with their duty to have due regard lo the guidance on publi¢ benefit published by the Commission in exercising their powers or duty'es and confimi that all activllles are conducteil for charitable purposes to benefit the public.
MARX MEMORIAL LIBRARY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Charity structures, governance and administrallon I d8rysions are made through the General Committee. which a5 charity trustee have control of the Library and its properties and funds, meeting around 6 times per year. The General Commlttee elects a Chair, Vice£hair, Secretary and Treasurer at the flrst meeting held after the AGM and may choose lo appoint sui>committees from amongst ils ranks and others. The General Committee may cc>opt any Library member to fill a vacancy arising during the year. Co-opted Tfustees are setected to represent a broad mlx of skills and interests. The Iruslees who served during the year and up to the dale of signature of the financial statements were: H Bains M Daws A Field J Fosler A Gordon J Hendy M M2yO B De La Motte J Mowatt J Rosen C Webbe J White R Clarke R Hayes R Kelly A Sheikh Strot8gic plan The Strategic Plan approved by th8 Trustees in Seplember 2019 aims to summarise the Marx Memorial Library's maill areas of wodi in the coming five-year period 2019-24. It highlights priorities an(1 is designed to aid deasion4naking. track progress and facililale the appropriate allocation of resources. The various sub-committees of the MML are responsible for ijrawing up supplementary action plans for their aTeas of work, and monitoring progress throughout the year. Sub-committees have specific areas of r8spon5ibility on.. Education, Collections. Volunteers, Publications, Buil(Jings, Resilienoè and Finance, they report to the General Committee of trustees. The Archlvist and Library Manager, as the senior member of staff, is responsible for overseeing the implementation of this plan at tho MML. The Strategic Plan wlll be reviewed annually by the MML General Committee of ITUStees following the Annual General Meeting. Mission. The advancement of educatson, learning and knowledge .in the suence of Marxism and of the history of Socialism and the trade union and workingdass movements.. Vision.. The MML as a res88rch ntrE, vthth a world-class, relevant archive and library colle¢tion, and edv¢ation provider ergaging diverse audiences effedively in current debates on Marxism, the history of soclalism and the working4ass mov8ment.
MARX MEMORIAL LIBRARY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Strategic Goals.. Collections.. Develop, maintain and promde a unique research resource in the form of our library and archive. Education.. Deliver a relevant, engaging education programme on and off4ite in the fomi ol dasses, lectures and workshops lo greater numbers and diverse audience$. Engagement and outreath.. Effectively engage audiences in our colle¢t¢ons and education work through publicalion and exhibition. online and in print, special events, tours of our building and conferences. Sustainability.. Develop strong govemance, stsffing, volunteer and finance framework8 to ensure th8 MML'S mtssion is achievable in the long-temi. The Building- Redevelop Marx House to tsanslorm MML'S ability to store coll8clions, enable aGcess, host evenls and activities and generate income. Risk managemerrt The Charity has identified the main risks il faces. Trustee and Profassional Liability Insuran has been obtained and all cuThent insurance is up to date and fit for purpose. A draft risk log and policy has been prepared and is operational. The charity has adopled a safeguarding policy for preventing and reducing harm to children and vulnerable adults leilher lemporarfly or pemiarnenuy for a variety ol reasons when they are In contact with our staff, workers. volunteers, members. or other 51ud8ntsl. Funds The funds of the organisation are structured thus.. UnTeslTlCted Funds are monies received by MML that do not have conditions of us8 att8ched to them but where ilemised budget headings apply. Designated Funds are made up of monies sel aside by injstees to be us8d only for development purposes. Restricted Funds must be spent on specified areas of activity by condition5 imposed by outside indivlduals or organisations. Fundraising disclosures The fcjllowing extra information is suppked under section 13 of the chatieS (Protection and S0ry81 Investment) Acl 2016 on MML'S fundraising practices and those acting on its behalr.. No professional fundraisers or c4Jmmercial participators carried out any fundraising activities for MML. The charlty has not subscllbed to any fundraising standards or schemes. There are no failures by the charity. or by any person acting on its beh8Ef, to Comply wlth regulations for ftjndralsing standards or schemes. Therefore, the charity ha8 not needed lo monitor thè fundraising activities of any person acting on its behalf and no complaints were received by the chanty about fundraising activity. Should the Gharity ever embarf( on such public fundraising, il would do all it can ID protect vulnerable people and other members of the public from behaviour which is an unreasonable intrusion on a person's privacy, is unreasonably persistent, or places undue pressure on a person to give money. other property. MML 2021 report of work Introduction In 2021 the pandemic continued lo have a major impact on our work. While we were able lo remain open by appointment only for the majority of the year, Ihis a0 meant a continued focus on digitsl outPLrts, work on restoring the building and bolstering our financial resilience. Staff Meirian Jump was on maternity leave from February and covered by Sarah Crompton IFebruary 2021-Jan 20221 and Joseph Dance IFebruary-Octobar 20211. The ArchivisULibrarian and Melanie Hufki&Baxter our Administrator and LlbraryAssistant worked throughout the pandemic on a vart¢ty of tasks.
MARX MEMORIAL LIBRARY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Volunteers The MML'S volunteer programme continues in strength, albeit remotety for the majority of the year. Zoom meetings every 6-8 weeks meant the team kept in touch. Volunteers continued to be at the heart of MML'S opergtions working on the administration Df our membership programme, online rare book sales, vlrtual tours, on411e cataloguing and digitization projects. Coll8ciions Notable accessSons include the Simcha pocket Watch,. one of twelve watch cases believed to have been stwck in the 1860s to mark the meeting in London of the Internalional Association of Working Men (rhe First Intemalionall when the eight-hour day had been proclaimed as the Associations objective, the archives of Robert Williamson, Solty Kaye and Alick Wesl, In addition to an 8¢crual to the Spanish Collection; the papers of the Friends of the Intem8lional Brigades. Policy development line with OUT ambitions to acquire archive accreditation meant further WO on a digitizatlon and a digital preservation strategy. Following the acquisition of dataloggers at the end of 2020, for the fir51 lime we have been able to log and store infoTmalion on enwronmental conditions in all of our archive storerooms, vital to the long term preservation of our library collections. We welcomed tsvo sixth fomi groups lo the library for archive workshops in the autumn on the Russian Revolution and Economics. In 2021 we prepared for the ban of Marx's cigar case in our collection for exhlbillon al the DeutGhes HIStlsche5 Museum. Berlin in 2022. Online Initiatives MML'S education programme was deliver8d entirely online In 2021 through a combination of zoom lectures and dasses, and online courses administered on the Moodle platform. Our repertoire of online courses w8$ developed,. the education commlttee launched new courses on historical materialism and on women, work and trade unions. Our school worf(shop programme on the biography of black Intemalional Brigader Chadie Hutchison with Newham College was delvered online In collaboTatlon with Wadham College. Oxford in January 2021. The VirtL181 Tour programme was rolled out,. monthly guided tours through our 3D scan meant visitors from around the wodd were able to experience our historic building, collections and displays. We introduced short tailored tours for May Day and Open Hous8. For a second year running rare second-hand bwks and print on demand posters from our collections were made available for sale online. he MML now monitor5 digital engagement including hits on the website and social media interaclion. User and vlsltor 5tatl$tlcs12020 In brackgts) Research enquiries: 22012921 Readers.. 491641 General visitorslbrowse shelves: 31751 Numbers on tours.. 61 (virtuall- 22 lin personl(451 Onknsite events O1199)- on4ine events 1972115991 Number8 on sludent and school visils.. 27 {501 PartlGipants in online courses.. 9711901
MARX MEMORIAL LIBRARY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Courses, lectures, event$ and a¢tlvltles Onllne courses: Ldbour Value & Explorf(ation Trade Unions, Class & Power Capilalism, Crisis & Imperialism An Introduction lo Marxism Making our own History- Marx's Historfr31 Matertaligm Women, Work & Trade Unlons Lectures and special events.. Book launch.. Sylvia Pankhurst Natural Bom Reb81 Book18iJnch= Making our Own History Disaster planning for Archivists and Librarians Trade Llnions & the Fight Against Unempk)yment (public & private sectors) Coronavirus and the Economic Crash The Betrayal of the Miners.. 'Black Friday. 15 Apiil 1915 1 Ooth anniversary of the NUWCM Book launch.. In conversation with Helen Jackson DemoGraGy. Neo-liberalism and Britain's Centrali88d Stale 'Risen from the Ruins,: Intemationalisl lessons from the GOR Marf(ing 1501h Anniversary of the Paris Commune State power, transit'ons and social revolution. a series of three lectures Historical Memory and the FightAgainst Fasasm Was Mao a hlarxist? 50th Anniversary of 1971 TUC and the Continuing Struggle The EconomyAfter Covid- a series of three lectures MarAism and Science Food, Farming and the Future- a series of three lectures Roundtsble.. DemooTaGy, Nei)4iberalism and Britsin's Centralised State Projects The Unite the union history project is making good progress. Volum8 i Was printed in 2021 2nd launched al the Unite Policy Conferen. Volumes ii, iii, iv are currently wth the publisher. Wcyk on oral history research to supplement the final Iwo vdumes v and vi. Building work.. A new security alami was installed, the staff office was reconfigured with new storage and work spaces and measures tsken to upgrade signage, emergency lighting and smoke detectors in line with recommendations of our 2020 Fire Rtsk Assessment. Finally, we replaced our heating pump in November 2021. Patrons Scheme.. this scheme launched in 2020 continues to grow and w8 now have over 30 Patrons donating £250 per year lo support core funding. Patrons are invited to speual events twice 8 year, receive a badge and aro listed on the website and in Theory & Slruggle. Our summer annual membership drive launched in 2020 was anothor success., we gained over 100 members in a ten-week period in the Spring.
MARX MEMORIAL LIBRARY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Publlealions Theory & Struggle 2021 with a focus on COVID 19. its economic, political and social aftermath and trade union struggles included artides from Andrew Murray, Carolyn Jones. John McDonnell. Jenny Clegg and Michaol Roberts. The review section covered books marking the centenary of the foundlng of the Communist Party of Great Britain in 2020. two volumes published by the MML OUTsefves and Robert Henderson's 'The Spark that Lit the Revolution.. Lenin in London and the PItICS that Changed the World,. Our regular column in the Moming Star 'FuS1 Marx. featured articles on impeN81ism and identlty poIIUGS and is set to retum again in 2022. Flnanclal report for the year ended 31 December 2021 Th8 charity is mid-way delivaring the Stralegic plan set out in 2019, 1.1 StrdtegiG Goals 1.1.1 Collections.. Develop. maintsin and provlde a unique rese8r¢h resource in the form of our library and archive. 1.1.2 EduGation.' Deliver a relevant, engaging educatlon programme on and off-site in the fomi of classes. lectures and workshops lo greater numbers and diverse audience5. 1.1.3 Engagement and oulreach.. Effectively engage audiences in our collections and aducation work through putAicatton and exhibition - on4ine and in print- spec4al events, tourg of our building and conferences. 1.1.4 SuslainAbikty'. Develop strong govemance, staffing, volunteer and finance frameworks lo ensure tho MML'S mission is achi8vable in Ihe long-term 1.1.5 The building.. Redevelop Marx House to Iransfomi MML'S abllity to store collections, enable access, host events and actiwties and generate income In temis of suslainabilily, the following objectives were adopted lo further the strategic g021s Ensure MML'S membership offer is de8r and attractive with the aim of boosting member8hlp numbers and retention. . Attract new affiliates and enhance income generation Develop a ne0< of donors using database. This may involve reviwng Friends Schem8 and exploring 8 Patrons, Sdieme Plan two targeted appea15 per year {e.g.. for filmlng equlpment. for archival storage solutions) with the aim of raising £5,000 p_a. for project funds Incorporate a fundraising feasibility Study as part of Heritsge Lottery Bid Review volunteer restructure and associated poliGies earty 2020 Optimise the use of truste& 8XpeSe Enssjre staff trained anfj retalned Ensure Offi and finance systems are fil for purpose
MARX MEMORIAL LIBRARY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 The budget for 2021 set out some challenging targets for all areas of the charity's goals and specific objectives. The steps taken in 2020 to Improve financial controls were further Improved ir¢ 2021. Quarterfy financAal management aGGounls compiled by the accountants Arnold Hill made available to the Trust8gs. The monitoring Df actual income and expenditure against the budgets, ensuring that Ihe Charity maintained control of its projected trajectory. Impact of Comd 19 restricted and limited a number of income generation opportunities identrfied in Ihe budget. The opening of the library for research, book sales, Msitors, in dass courses, lectures and book18unches all reduced. The digital experience initiatetl in 2020, was enhanced to replace the regular income streams with varied results. On line courses proved lo be particularly successful 8nd generated £5,909 wlth an additional £2,617 from classes and lectures. The virtual tours brought in £325. which is expected lo continue lo grow in 2022 and introduce the charty lo a whole ngw audience. Despite the restriction to Uie normal marketing and sale5 of new and old books, there was significant income from these adivities. The targets being exceeded for sale of new books wth sale of old books Dbtaining 500 of the budget for 2021. The regular Income streams for lettings, research. royalties remained stsble. The income recebvèd from Unlte the union for the History project remained key for the Charity operations. The project delivere(I by eminent trustses is invaluable for the sustainability plan. Investsments were increased thanks lo very generous bequeaths from the estate of Dr Geofftey Barlow, facilitated by his son Keith Barlow and daughter Lindsey Coldwell and a very welcome donation from Eddy Adams. Under the Charity agreed rule 80.10 of the bequeath received was invested by the Tnjstees in ethical investmgnts. This wtll provide additional long4erm income and adds to the slralegi¢ sustainability goal of the charity. QuarteTty reports of investments wlh projected performance are provided lo th8 Trustees. All inveslments are managed on the Chari5 behalf by CCLA and In 2021 were valued at.. Opening value.. £2,334,143 Invested in 2021". £140.834 Capital retum: £140,707 Closing value.. £2,615.685 Income received by the chaiity from investments: £66.727 agalnsl the projected budget of £61,500
MARX MEMORIAL LIBRARY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 The staff leam went through a change in the leadership with the Archivist and Manager Meirian Jump on malemity leave. Sarah Crompton and Joseph Dance recruited on job share for most of this period did remarkably well in advancing the charills objectives. Melanie Hufkie-Baxler provided the necessary conlinuily in administration and anthorage to ensure smooth operations and financial controls. There was a marglnal corresponding increase in the staff cosls due to the changes. The eleven wonderful volunteers have sustained MML through a very difficult year, navigating around building works and working through a period when the healing system showed its age and fequired lender loving car8. The input by Chris Reeves, Simon Renton and the Chair of MML Alex Gordon in resolving some of th8 issues by being on site were all worthy of commendation. The downturn in operations due lo Covid reslrlctions. were used as an opportunity by the GC to bring forward some of the repair and renovallons odglnalty schedu18d for 2022-23. The investment of £13.798 to Improve the building infr8Struclure was three times the set bucsgel for repair 8nd maintenance of £4.000. There aTe further improvements approved by the Trustees and the budget for 2022 be calibrated to reflect thes8 business needs. Th8 investment has generated an inc¥ease in depreGiation of £24,770 The dired reven%Je from membership In 2021 has surpassed the budgeted target of £14.000 10 £16,979. This welcome increase eated a corresponding rise in expenditure associated w¢(h the much valued and hlghly acc18imed journal Theory & Struggle. EOY 2021 Summary Bank Accounts.. £160.049 CurrentAssels'. £14,636 Fixed Assets: £178,133 Non-currenl Assets.. £2,615.685 Total Assets.. £2.968.503 Conclusion The ¢harity has retsined suffiGienl funds for liquidity- The charity is confident of continuing as a going concem as it emerges trom the restrictions of covid 19 and gradually retums to n(#Tral operations. The charity will conllnue to monltor the situation and take additional steps 8s necessary to mitigate risk. Terms and conditions review The affiliation promotlon and process will be reviewed during 2022 with a targeted c3rnpaign. Terms for the contraotual obligation with Liverpool University Press for Theory & Struggle production and distribution will be negotiated early 2022. Other inwme receivable from hall hire will be review8d to r8118cI local competitive charges. Insurance Building insurance renewable and payable vla Marx House Limited. Contents and other insurances.. the charity ensures that all its contents, staff and public liabilities are insured and transparent. The expenditure atlTibuted lo insurances refleGt these combined costs. The trustees. report was approved by the Board of Tnjstees. H Balns Trustee
MARX MEMORIAL LIBRARY STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2021 The Iruslees are responsible for preparing the Tnjslees, Report and the acLounts in accordance with aptdicable law and United Kingdom Accounting SIAndArds (United Kingdom Generally Accepted Accounting PraGticel, induding FRS102'The Finanaal R8POrting Stsndard applicable In the UK and Republic of Ireland." The law applicable to charities in England and Wales requires the Iruslpes to prepare acGounls for each financial year which give a true and fair view of Ihe stale of affairs of the Charity and of the incoming resources and application of resources of the charity for that year. In preparing these accounts, the trustees are required to.. - seleGt suitable accounting poliryes 8nd then appty them GonSi5tenY,. - observe the melhods and principle5 in the Chartties SORP. - make judgen)ents 8nd eslimales that are reasonable and prudent., state whether appllcable accountlno standards have been followed, subject to any material departures disclosed and explained in the accounts., and prepare the acwunts on the going wncern basis unless It is inappropriate lo presume that the charity will Gontinue ir2 operation. The trustees are responsible for keeping sufficlent accounting records that disclose with reasonable accuracy at any lime the fin8ncial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detedion of fraud and other irregularities. The Iru$tees are responsibie for the maintenance and integrity of Ihe charity and finanual information included on the tharity's website. Legislation in the United Kingdom goveming lo preparation and dissemination of financial slatements may differ from legislation in otherjurisdictions.
MARX MEMORIAL LIBRARY INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MARX MEMORIAL LIBRARY l. as a member of the InslitLrte of Chartered Accounts in England and Wales IICAEWI, report lo the trustees on my examination of the financial statements of Marx Memorial Library (the charity) for the year ended 31 Dec8mber 2021. Responsibilities and basls of report As the truste8s of the charity you are responsible for the préparation of the finanal statements in acwrdance with the requirements ot the Charities Act 2011 (the 2011 Act). I report I respect of my examinatlDn of the cheritys f*n8ncial statem8ntS Carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145151(b) of the 2011 Act. Independent examlnerfs statement SinGe the charity's gross Income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Ad. I confirm that l am qualified to undertake ihe examination because l am a member ol ICAEW, which is one of the lisled bodies. Your attention is drawn to the fact that the chartty hBs prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republlc of Ireland IFRS 102) in preference lo the Accounting and Reporting by Charities.. Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn. l understand that thls has been done in order for financial statements to provide a true and fair view in accordance wth Generally Accepted Accounting Practi effeGtive for r8porting periods beginning on or after 1 January 2015. I hove completed my examination. I confirm that no matters have Gome to my attention in connecllon with the examination giving me cause to believe that in any material respect.. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or the finan¢ial ststements do not accord with those rewrds.. or the financi81 statements do not comply with the applicable requirements concerning the fom and content of accounts sel out in the Charikn"8s (Accounts and Reports) Regul¥tsons 2008 other Ih8n any requirement that Ihe accounts glve a true and fair view which Is not a matter ccmsidered 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 thi5 report in order to enable a proper understsnding of thg financial statem8nts to be reached. ¢ILU { (6 Uf rnold Hill & Co LLP Craven House 16 Northumberland Avenue London WC2N SAP Dalgd.. 2510512022.. -10-
MARX MEMORIAL LIBRARY STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021 Current flnanclal yr Unrestricted Unrestricted Restricted funds fun(Is funds general deslgnated 2021 2021 Totsl Totsl 2D21 2021 2020 Not¢$ Donations and leg8cies Ch8ritable activities Activities for generating funds Investsnents Other income 190,901 8.654 32,370 66,727 9,882 190,901 8,654 32,370 66,727 32,482 30,120 8,825 28.238 62.757 57,661 22,600 Total Income 308,534 22,600 331,134 187,601 ett Raising funds 1.747 1,747 6,748 Gheritable activities 172.097 172,097 150,676 Total resource5 expended 173,844 173.844 157,424 Net gainslllossesl on investments 13 315.353 315,353 196,426 Not movement in funds 450.043 22,600 472,643 226,603 Net movement In funds 450,043 22,600 472,643 226,603 Fund balances at 1 January 2021 2,222.388 158,430 101,338 2.482,156 2,255,553 Fund balances at 31 December 2021 2.572,431 158,430 123,938 2,9 .799 2,482.156 Tho statement of financial activities includes 811 gains and10gses recognised in Ihe year. All income and expenditure derive from continuing act4vities. 11
MARX MEMORIAL LIBRARY STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDrruRE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021 Prlor financial yèar Unrestricted Unrestricted Restrlcted funds funds fund¥ general d&8lgnated 2020 2020 Total 2020 2020 Notts owm Donations and IacleS Charftable activities Activities for generating funds Investments Other income tsfr 30,120 8,825 28,238 62,757 19,461 30,120 8,825 28,238 62,757 57,661 38.200 Totsl income 149,401 38.200 187,601 Raising funds 6,748 6,748 Charitable activities 150.676 150,676 Totsl resources expended 157,424 157,424 Nel gainsjllossesl on investments 13 196,426 1.426 N•t movement In funds 188,403 38,200 226,803 Fund balances at 1 January 2020 2.033,985 158,430 63,138 2,255,553 Fund balances at 31 Docembèr 2020 2,222,388 158,430 101,338 2,482.156 The statement of finandal activities indudes all galns and losses recognlsed in th8 year. Nl Income and expendrture derive from conllnuing activities. 12-
MARX MEMORIAL LIBRARY BALANCE SHEET ASAT31 DECEMBER 2021 2021 2020 Notss FÈxed assets Tangible assets Investments 14 15 178,133 2,615,685 197,830 2,159,498 2,793,818 2,357,328 Current assots Debtor5 C8sh at bank 8nd in hand 17 14.836 160,049 15,097 134,391 174,685 149,488 CTedltors: amounts falling due wlthln one year 18 113,7041 124,660} Nel current assets 160,981 124,828 Tolal assets less curTent liabilities 2.954,799 2,482.156 In¢ome funds Restricted funds nrestri d funds Designated funds General unrestricted funds Revaluation reserve 19 123,938 101,338 20 158,430 1,901,043 771,388 158,430 1,224,397 997,991 2,830,861 2,380,818 2.954,799 2,482.156 The financial slalements were approved by the Truslees on ..... H Bains Trustoe 13-
MARX MEMORIAL LIBRARY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 AGcountlng policios Charlty information Marx Memorial Library is a reglslered ch8rity. 1.1 Accountlng convention The financial stalements have been prepared in accordance wth trte chartws Artides of Association, Ihè Charities Act 2011 and "Accounting and Reporting by Charities= Statemenl of Recommended Practi appllcable to ch8ri1ies preparing their accounts in accordance wth the FinanGial Reporting Standard opplicab16 in the UK and Republic of Ireland IFRS 1021 (effective 1 January 2019)" The charity is a Public Benefit Enlity as deflned by FRS 102. The charity has t8ken advantage of the prowsions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare 8 Ststement of Cash Flows. The financlal stalements have departed from the Charities (Accounts and Reports) Regulations 20Q8 only to the extent reouired lo provide a true and falr view. Thls departure has involved following the Staternent of Recommended Practice for charities applying FRS 102 rather than the version of the Stalement of Recommended Practice which is referred to in thé Regulations but whiGh has sinGe been withdrawn. The financial $latemenls are prepared in sterling, which is the functional currency of the charity. Mon8tary amounts in these fjnanaal st8ternents are rounded to the nearest £. The financial statemènts have baen pr8pared under the historical cost (xjnvention. modified lo include the Tevalualion of freehold properties and to include investment properties and certain finanaal instruments at fair value. The principal accounting policies adopted are set out below. 1.2 Golng concern Al the time of approvlng the financial ststements. the trustees have a reasonable expectation that the charity has adequal8 resources to continue in operational exisl8nce for the foreseeable future. The trustees Gorilinue to monitor the impact of COVID-19 and potential implications on future operation8. Thus the trustees continue to adopt the going concem basis of accounling in preparing the finanual statements. 1.3 Charitable funds Unrestricted funds are available for use at the discretlon of the trustees in furtherance of th8ir charitable objectives. Restricted funds are subject to spedfic conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statemenls. Unrestricted funds are fijnds whlch can be used In accordance with the charitable obj8Ctives at the discretion of the trustees. 1.4 Income Income is recognised when the charity is legalty entitled to it after any performance conditions have been rnet, the amounts can be measured r81iably, and is probable th8t income will be received. Cash donatlons are recognlsed on receipt. Other donations are recognised once the charity has been nolified of the donation. unless perfomiance Gonditions require deferral of the amount. Income tax recoverable in relatioll to don81ions received under Gift Aid or deeds of covenant Is recogni5ed at the lime of the datIOn. 14-
MARX MEMORIAL LIBRARY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting policies (Continued) Income has been recognised gross Dn the basis of enthlement, certalnty and measurement. Donations, legacigs and other fomis of voluntary income are recognised as incoming resour5 when receivable, except in so far as they are incapable of financial measur8ment. Income undor deed of covenant or gift aid is induded In the accounts gross. Invesbnent Income is recognised on a receivable basls. 1.5 Expenditure Support costs aTe allocated to the one charltable activity of the charity. Expenditure is recognised on an accruals basi5, indusive of value added tsx. Costs of generating funds are those costs incurred in attracting voluntary income, in particular grant fijnding and th8 Costs of maintaining the charity's profile within th8 sector. Govemance costs indude those costs incurred in the govemance of the ch8rity's assets and are primarity assoaated with constituts.onal and statutory requirernents. 1.6 Tanglble fixed as5et$ Tangible fixed assets are iniiially measured at cost and stjbsequently measured at cost or valuation, net of depredation and any impaimient losses. Depreciation is recDgnised 50 as to write off the cost or valuation of assets less thgir sIdUal valuès over their us8ful lives on 8 reducing balance basis, as follows.. Improvement to premlses Office equipment 33°A per annum 330/0 per annum The gain or loss arising on the disposal of an asset is detemined as th8 difference betweon the sale proceeds and the carrying value of the asset, and is recognised in net incomellexpenditure) for the year. The Marx Memod81 Library holds and conserves a number of collections made up of books, journals, newspapers, magazin&s, dalabas8s. map5, manuscripts and much more. In accordance with FRS 102 and SORP IFRS 1021 assets acquired in the past have been pItalISed at cost, where known. Donated items a¢quired in the past have not been capitalised, since reliable estimales of cost or valuation are not available al a cost commensurate with the benefit lo the users of the accounts. The Irustees consider th8 heritage assets to have indefinite lives and are therefore not depreclated. HeThtage assets 8re reviewed at each reporting date for any impairrnent due to physical deterioration. bre8kage or other factors. Future material additions to the collection will be capitalised and recognised in the balance sheet under herftage assets at their cost or valuation. Small items with values below the Librarls capitallsation threshold of £250 are expensed when the expenditure is incurred. 1.7 Flxed asset investments Fixed asset investments are Initially measured at Iransadon price excluding trans8clion costs, and are subsequently rneasLJred at fair value at each reporting dale. Changes in lair value are recognised in net incornellexpenditurel for the year. Transaction costs arg expensed as incued. 15-
MARX MEMORIAL LIBRARY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting poliGie5 (Continued) 1.8 Impalrnient of flxed assets Al each reporting end date. the chaiity reviews the carrying amounts of Its tsngible assets to delemiine whether there is any indication that those a$se16 have suffered an impairment loss. If any such indicats'on exists, the recoverable amount of th8 assot is estimated in order to delemiine the exlenl of the impairment loss lif any). Recoverable amount is the higher of fair value less costs to Sg11 and value in use. In assessing value use, the estimated future cash flows are discounted io their present value using a pre-tsx discount rale that reflect5 current market assessments of the timg value of money and the risks sp8cifiG to the asset for which Ihe estimates of future cash flows have not been adjusted. If the reGoverable amount of an asset is estimated to be less than its c8rylng amount. the Cang amount of the asset is reduced to Its recoverable amount. An impairment loss is recognised immediately in incomel {expenditure for the year, unless the relevant 8sset is Caled at a revalued amount, in which case the impaiment Ios5 is treated as a revaluation decrease. Recognised impairment losses are reversed if. and only rf, the reasons for the impalment loss have ceased lo apply. Where an impairmènt loss subsequently reverses, thè carrying amount of the asset is increased lo the revisad estimate of ils recoverable amount. but so that the incre8sed carying amount does not 8x¢eed the carying amount that would have been determined had no impaimient loss been recognis8d for the asset in prior yeaTS. A reversal of an impainxent loss is recognised immediatety, unless the relevant asset is carried in at a revalued amount in which case the reversal of the impairment Ioss 15 treated as a revaluation increase. 1.9 Cash and cash 8quivalents Cash and cash equivalents indude cash in hand, deposits held al call with banks, other short-tem liquid investTnents w?th original maturities of three fflonths or less, and bank overdralts. Bank overdrafts are shown wilhin boirowings in current liabilities. 1.10 Financial in$truments The Charity has elecled lo apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'other Financial InstNments Issues, of FRS 102 to all of its financAal instruments. Financial instwmenls are recogt7ised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Finanaal assets and liabilitles are offset, wlih the net amounts presented in the financlal 8talem8nts, when there is a legally enforce8ble right lo sel off the recognised amounts and there is an intention to settle on a net ba&s or to realise the asset and settle the liability simultaneously. Baslc finanelal ass•ts Basi¢ financial assets, which include debtors and Gash and bank balanGes, are init1811y measured at transaction price including transaction costs and are subsequently carried al amortised cost using the effective interest method unless the arr8ngemenl constitutes a financing transaction. where the transaction is measured al the present value of the futu receipts diswunled at a market rate of interest. Financial assets classified as receivable within one year are not amortised. 16-
MARX MEMORIAL LIBRARY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 AGGounting poliGie5 (Gontinuedl Basi¢ finan¢ig1 liabilitigs Basic financial liabilities, including creditors and bank loans are initialty recoKJnised at transaction pri unless thè arrangement constitutes a financing transaction, where the debt instrumènt ig measurèd at the present value of the future payments discounted al a market rale of interest. Financi81 liabillties cjasslfled as payable wllhln one year are not amortlsed. Debl instruments are subsequently carried at amortised cost, using ihe effective interest rale method. Trnde creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classffied as current liabilities if payment is due within one year or less. If not, they a presented as non-current liabilities. Trade creditors are rewgnised initially at Irarksaction price and subsequently measured al amortised cost using the effective interest method. 1.11 Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are re(y)gni8ed immgdiataly as an exppnse when the charity is demonstrably committed to terminate the employm8nt of an 8mployaa or to provid8 termination benefrts. 1.12 Retiren7ent benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Crltlcal a¢¢ounting estimates and judgements In the application of the charity's accounting policies, the trustees are required to make judgements. estimates and assumptions about the carrying amount of assets and liabillues that are nol re8dlly apparent from other sources. The estimates 8nd 8SSOCl8t8d assumptions are based on histurical experience and other fartors that are considered to be refevanl. Actual results may differ from these estima188. The estlmales and underlying assumption8 are reviewed on an ongoing basis. Revisions lo accounting estimates are recognised in the period in which the estimate is r&Msed where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Donatlons and legacle¥ Unrestrfcted Unrestricted funds funijs gen•ral general 2021 2020 Donations and grfts 190.901 30,120 Donations and glfts Grants Donations 4,690 25,430 190,901 190,901 30,120 17-
MARX MEMORIAL LIBRARY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Charftable activities 2021 2020 Educati¢Jnal servlces 8.664 8,825 Analysls by ftjnd Unrestricted ftJnds- gener81 8,654 8,825 Activit106 for generating funds Unrostricted Unrestrictèd fund$ funds general general 2021 2020 Non-charitable trading 8¢tivities 32,370 28,238 Investmènts Unrestrlcted Unrestiicled funds funds goneral general 2021 2020 Incomts receivable 66,727 62,757 other Income Unresmcted Reslrlthd funds funds general 2021 Total Unrestrided Restricted funds funds general 2020 Total 2021 2021 2020 2020 Other Income 9,882 22.600 32.482 19.461 38.200 57,661 18-
MARX MEMORIAL LIBRARY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 Raising funds Unrestrlcted Unrestricled funds funds general gonèral 2021 2020 Fundraisin and ubli Seeking donations, gr8nls and legacies 1,747 6,748 1,747 6.748 Chawltsble activlties 2021 2020 Staff cog19 Depreciation and impaimi8nt Llbrary running costs 72,612 24.170 65,002 59,798 10,195 61.311 Share of governance costs 10,313 19,372 172,097 150.676 10 Governan¢e costs 2021 2020 Accountancy fees Bank charges 10,164 149 18,973 399 10.313 19.372 Analysed between charitab actimties 10,313 19.372 11 Trustee* None of the trustEes (OT any persons connected with them) received any remuneration duTing the year for their services as tnjstees, bul l of them was reimbursed a total of £577 for expenses in 2020. 19-
MARX MEMORIAL LIBRARY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 12 Employees The average monthly numb81 of employees during the year was: 2021 Number 2020 Numbgr Wages and salades Social seGurity costs Other pension costs 67.684 1,949 2,979 52,764 3,752 3,282 72,612 59,798 There were no employees whose 8nnual remuneration was £60.000 or more. 13 Not gainsl{losse$) on Investments Unrestricted Unrestricted funds (unds gen8ral general 2021 202D Revaluation of investments 315,353 196,426 14 Tangible flxed assets Irnpyovernent to Pi8Tni$e* Offlc equipment Heritage $sets Total Cost At 1 January 2021 Additions 358,770 4.005 75,305 468 129,629 563.704 4,473 At 31 December 2021 362,775 75,r13 129,629 568,177 Depreciatlon and impaimient At 1 January 2021 Depreciation chaTgetl in th8 year 293,433 23,111 72.441 1.059 365,874 24,170 At 31 December 2021 316,544 73,500 390.044 Carrylng amount At 31 December 2021 46,231 2,273 129,629 178,133 At 31 December 2020 65,337 2,864 129,629 197,830 -20-
MARX MEMORIAL LIBRARY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 14 Tangible fixed assets (Contlnuedl The Library, Land and Buildings are held on a 51 year lease whlth termlnates In 2047. and are ultimalety owned by Marx House Limited, a Gompany incorporated in the UK. Each party buys their own insurance, MHL ag lantllord lo cover the superstructure of Marx House. MML as lenanl to cover the contents. MML has agreed to pay MHL'S insurance cost in addition to the previous notional rent of £300 per year. MHL'S insurance costs in 2018 were £1,845, so thg parb8s agreed that should that be £2.200 rounded up, therefore the real rental charge for the Marx memo31 Library occupying Marx House is £2,200 Bach year. 15 Flxod asset Investments Llstsd Investments Cost ¢x valuatlon At 1 January 2021 Adéitions Valuation changes 2,159.498 1,155,971 315,353 At 31 December 2021 3,630,822 Impalmient At 1 January 2021 Disposals 1.015,137 Al 31 December 2021 1.015,137 Carrylng amount At 31 DecembeT 2021 2,615,685 At 31 December2020 2,159,498 Flxed asset Investments revalued Investments are revalued quarterly to their fair value using the bid prfce. 16 Financial instruments 2021 2020 Carrylng amount of flnanclal a$sets Instruments measured at fair valve through profft or loss 2,615,685 2,159,498 21
MARX MEMORIAL LIBRARY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 17 Debtors 2021 2020 Amounts falling due within one year. Trade debtors PrepayThents and accTued Sncome 13,246 1,390 9,117 5,980 14,636 15,097 18 Creditors: amounts falllng duo wlthln one year 2021 2020 Other taxati and social security Trade creditors Other creditors Accruals and deferred income 1,406 4,007 456 7,835 2.476 14,248 93 7,843 13,704 24,660 -22-
MARX MEMORIAL LIBRARY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 19 Restrirted fvnds The income funds of the charity indude restricted funds comprising the following unexpended balances of donations and grants held on trust for spectfic purposes.. Movement in funds Movement in funds Incomlng resourc•8 31 Oe¢ember 2021 8abnce at Janyary 2020 Balance at resources1 January 2021 1917 Russian Revoludon Tolpuddle projects Spanish digilising project Marx 200 project UNITE History project Flood rem8dial and conseNation works 262 1,012 6,350 3,691 21,823 30,000 262 1,012 6.350 3,691 60,023 30.000 262 1,012 6,350 3,691 82.623 30,000 38,200 22,600 63,138 38,200 101,338 22,600 123.938 The 1917 Russian Revolution fvjnd received from the Heritsge Lottery Fund enabled a Marx hAemorial Library website and travelling exhibition on the Russian Revolution (1917-1922), ils impact on World War 1 and the European L8bour Movement. Tolpuddle Project After bound volumes of The Dorsetshire County Chronicle and Somersetshlre Gazette were discovered in MML'S basement stores a restricted fvnd projecl was opened up, with significant individual but also many trade union donations after it became clear that these rare joumals effectively documented the story of the T01pudd Martyrs. The poor condlts'on challenged effective use but funds for conseTVatlgn and display were raised to enable public use wrthout stressing our own finances. Spanish Digitising Project - Th8nks to a gr8nt from The National Archives Cataloguing Grants Scheme, involving Ihe Heritage Lottery Fund, in assockation with the grant funder Pilgrim Trusl, MML was enabled to ie-organis8, classify and ca121ogLte the wide4anging rnateal within its Spanish Collection. especialty the archives of ihe Intemalional Brigade. This prov¢ded for the employm8nt of a professional archivist for the period of 11 months to February 2018. Marx 200 Too marf( the 200th birth of Karl Marx in 1818. MhAL organised a 200-slrong Eventbrite ticketed conference on Saturday 5 May 2018 at the SGhool of Oriental and African Studies in London, UK). This was achieved with the support of outside fvnders and tlckel income. A small surplu5 has been reserved lor the development of a book and a film. Unite History ProjeGI - in conjunction wllh the Execub've Coundl of Unite the union, a projeGI directed by an Editorial Committee of Mary D8v*s. John Foster. Meirian Jump, Marj Mayo. Jim Mowatt, Grah8m Stevenson and Adrian Weir has been set up to develop awarerkess and interest of the union's history - and that of its predecessor unions. A key part of the project's WOTk will be to pioduce six volum8s of the history of the Transport & General WoTkers' Union ITGWUtt&G) in time for the centenary anniveTsary of that union's foundation. ood remedlal and conservation works- A restricted fund of monbeg Vdised through an appe81 to pay for remedial work on the MML'S roof and memolal gaTden. in addition to a range of collectipn care iniliativas to b8tteT preserve MML'È library and archive in the aftermath of the flood of September 2019. -23-
MARX MEMORIAL LIBRARY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 20 Designated funds The incorne funds of the charity indude the following designated funds which have been set aside out of 4Jnreslricled funds by the tsustees for speafic purposes= Movement in funds In¢oming Babn¢e at re904Jrces1 January 2021 Movement in funds Inoomlng resources 31 DeGember 2021 Balance * 1 January 2020 Capital Reserv8 Library Development 102,5fA 55,866 102,564 55,866 1Q2.564 55.866 158,430 158,430 158,430 A library dev8lopment designated fund was initially established during 2014 from some relatively small, but very welcome, donations from a variety of sources. Th1$ was supplemented during 2014 by the remain5 of a large inheritance of £174,937 gifted lo MML provided by the estate of Jonathan C8rritt. £120,000 of this was immedi81ely ploughed back into shares in a new CCLA ethical fund account, promding income in the longer term. The residue of the designated fut)d was used to providé for 8xpenditure on the development of income generabng activities, and saving costs. The Fund Temains available as a designated account for trustees to use at their dlscretion11 has been detemiined to place the bulk of bequests coming in during 2018 to purchase further shares in the ethical fund, which can erye as a readity accessib16 reserve fund for the charily. The charity invested £150.000 in ethical funds April 2C120. -24-
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MARX MEMORIAL LIBRARY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021 22 Related party trangactlons There were no disclosable relatad paty transactions during the y8ar12020 - none). 23 At)aly8is of Chang in nat fumds The charity had no debt during the year. -26-