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2023-03-31-accounts

Charity registration number 272108

THE CHESHIRE MILITARY MUSEUM

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

THE CHESHIRE MILITARY MUSEUM

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Brigadier Benjamin Wilde (Chairman) (Appointed 29 January
2023)
Major M E Hockedy
Professor H O'Sullivan BSc MBA
Alexander Siddell
Lt Col Richard Sernberg
Mr J B Etherington
Colonel H W Williams
Charity number 272108
Principal address Regimental Headquarters
The Mercian Regiment
The Castle
Chester
Cheshire
CH1 2DN
Independent examiner McLintocks (NW) Limited
2 Hilliards Court
Chester Business Park
Chester
Cheshire
CH4 9PX
Bankers Barclays Bank PLC
30 St Weburgh Street
Chester
Cheshire
CH1 2DY

THE CHESHIRE MILITARY MUSEUM

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Notes to the financial statements 6 - 16

THE CHESHIRE MILITARY MUSEUM

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their annual report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements 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 (FRS 102)" (effective 1 January 2019).

Objectives and activities

The charity's objects are to promote the efficiency of the Regiments; and to advance the education of the public in the history of the regiments and former regiments and any other military unit, regiment or service with past or present connections to the County of Cheshire; by the provision and maintenance of the regimental collection.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

A number of small temporary exhibitions ran alongside the main exhibit. These being the Cheshire Army Cadets exhibition and preparations for the upcoming Bosnia exhibition.

Links with local schools and youth organisations continue to grow with a number of educational visits hosted by the staff.

The digitalisation of the Cheshire Regiment archive continues with much of the work in this area being undertaken with the aid of volunteers whose input, together with that of volunteers in other areas of the Museum including refurbishment is invaluable. The trustees are immensely grateful.

The museum funds received a welcome boost from a number of generous donations which will enable us to carry forward our work.

In November a 50[th a] nniversary celebration was held at the museum to thank all the volunteers who have helped

build the collection for the educational benefit of the community.

Finally the Friends of the museum have increased considerably in number during the last year and there subscriptions have enabled us to launch a new website and fund specific displays.

Financial review

The charity had income for the year of £69,485 and expenditure of £82,011. As a result there was an annual deficit of £13,782 (2022 - surplus £5,244). The balance sheet shows fixed assets of £154,334 and net current assets of £233,963, giving total net assets of £388,297.

At 31 March 2023 restricted funds were £nil and unrestricted funds £388,297.

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Investment policy and objectives

The trustees have the power to make investments as they see fit.

Risk management

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

THE CHESHIRE MILITARY MUSEUM

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Plans for future periods

Plans for the operating period 2023/24 include refurbishment of the building include the preparations for the upcoming Bosnia exhibition, denoting a major anniversary for the Cheshire regiment. The museum will remain at reduced hours for the foreseeable future although work continues behind closed doors. The Museum Friends has successfully been re-launched, with membership growing well and special events being planned for the future. The revamp of the museum website has been completed and further attempts to improve marketing continue to be investigated. The trustees will also undertake further work to secure the future of the museum and the necessary funding streams.

Structure, governance and management

The charity is controlled by its governing document, a deed of trust, and constitutes an unincorporated charity.

The trustees who served during the year and up to the date of signature of the financial statements were: Brigadier Benjamin Wilde (Chairman) (Appointed 29 January 2023) Major M E Hockedy Professor H O'Sullivan BSc MBA Alexander Siddell Lt Col Richard Sernberg Mr J B Etherington Colonel H W Williams Colonel M W Forgrave OBE QGM (Resigned 1 January 2023)

Recruitment and appointment of trustees

Trustees are either nominated by the Mercian Regiment or recruited by the board of trustees. They receive training as appropriate.

The trustees' report was approved by the Board of Trustees.

Major M E Hockedy Trustee Dated: 14 December 2023

THE CHESHIRE MILITARY MUSEUM

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF THE CHESHIRE MILITARY MUSEUM

I report to the trustees on my examination of the financial statements of The Cheshire Military Museum (the charity) for the year ended 31 March 2023.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s financial statements 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 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the charity has 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 Republic of Ireland (FRS 102) in preference to 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.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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 that in any material respect:

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

Michael Caputo FCA McLintocks (NW) Limited 2 Hilliards Court Chester Business Park Chester Cheshire CH4 9PX

Dated: 14 December 2023

THE CHESHIRE MILITARY MUSEUM

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income and endowments from:
Donations and
legacies
2
7,978
22,751
Charitable activities
3
19,390
-
Other trading
activities
4
16,759
-
Investments
5
340
-
Other income
6
2,267
-
Total income
46,734
22,751
Expenditure on:
Raising funds
7
10,267
-
Charitable activities
8
47,993
23,751
Total expenditure
58,260
23,751
Net (outgoing)/incoming
resources before
transfers
(11,526)
(1,000)
Gross transfers
between funds
43,041
(43,041)
Net income/(expenditure)
for the year/
Net movement in funds
31,515
(44,041)
Fund balances at 1 April
2022
356,782
44,041
Fund balances at 31
March 2023
388,297
-		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
30,729
4,832
37,209
19,390
12,675
2,235
16,759
17,191
-
340
20
6
2,267
-
-
69,485
34,718
39,450
10,267
11,291
-
71,744
33,046
24,587
82,011
44,337
24,587
(12,526)
(9,619)
14,863
-
-
-
(12,526)
(9,619)
14,863
400,823
366,401
29,178
388,297
356,782
44,041		 Total
2022
£
42,041
14,910
17,191
26
-
Donations and
legacies
2
Charitable activities
3
Other trading
activities
4
Investments
5
Other income
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Total expenditure
Net (outgoing)/incoming
resources before
transfers
Gross transfers
between funds
Net income/(expenditure)
for the year/
Net movement in funds
Fund balances at 1 April
2022
Fund balances at 31
March 2023
74,168
11,291
57,633
68,924
5,244
-
5,244
395,579
400,823

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

THE CHESHIRE MILITARY MUSEUM

BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Fixed assets
Tangible assets
12
Current assets
Stocks
13
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
16
Unrestricted funds		 2023
£
10,620
-
224,177
234,797
(834)		 £
154,334
233,963
388,297
-
388,297
388,297		 2022
£
9,370
6,955
232,117
248,442
(3,247)		 £
155,628
245,195
400,823
44,041
356,782
400,823

The financial statements were approved by the Trustees on 14 December 2023

Major M E Hockedy Trustee

THE CHESHIRE MILITARY MUSEUM

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

The Cheshire Military Museum is an unincorporated charity. The principle address is Regimental Headquarters, The Mercian Regiment, The Castle, Chester, Cheshire, CH1 2DN.

1.1 Accounting convention

The financial statements have been prepared in accordance 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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin

1 not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

The trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific 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 statements.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

THE CHESHIRE MILITARY MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.5 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Appeal property improvements in accordance with the property Computers 25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

THE CHESHIRE MILITARY MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

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

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

THE CHESHIRE MILITARY MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

2 Donations and legacies

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Donations and gifts
14,818
-
Legacies receivable
-
-
Other
(6,840)
22,751
7,978
22,751		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
14,818
3,828
200
-
1,004
1,024
15,911
-
35,985
30,729
4,832
37,209		 Total
2022
£
4,028
2,028
35,985
42,041

THE CHESHIRE MILITARY MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

3 Charitable activities

Military Military
Museum Museum
2023 2022
£ £
Education/school visits 2,654 570
Research 810 1,929
Subscriptions - Friends 3,258 2,235
Admissions 12,668 10,176
19,390 14,910
Analysis by fund
Unrestricted funds 19,390 12,675
Restricted funds - 2,235

4 Other trading activities

**Unrestricted ** Unrestricted
funds funds
2023 2022
£ £
Shop income 16,759 17,191

5 Investments

Unrestricted
Unrestricted
Restricted
funds
funds
funds
2023
2022
2022
£
£
£
Bank interest
95
19
6
NSB interest
245
1
-
340
20
6		 Total
2022
£
25
1
26

THE CHESHIRE MILITARY MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

6 Other income

Unrestricted Total
funds
2023 2022
£ £
Other income 2,267 -

7 Raising funds

**Unrestricted ** Unrestricted
funds funds
2023 2022
£ £
Trading costs
Merchandise 10,267 11,291
10,267 11,291

THE CHESHIRE MILITARY MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

8 Charitable activities

Military Military
Museum Museum
2023 2022
£ £
Staff costs 45,715 36,988
Depreciation and impairment 1,294 1,294
Volunteers allowance 3,540 2,000
Friends - office costs 651 281
Display, exhibition and marketing 7,877 2,020
Insurance 3,631 3,052
Payments to Chester Cathedral 97 685
62,805 46,320
Share of support costs (see note 9) 6,837 9,905
Share of governance costs (see note 9) 2,102 1,408
71,744 57,633
Analysis by fund
Unrestricted funds 47,993 33,046
Restricted funds 23,751 24,587
71,744 57,633

9 Support costs

Support
costs
Governance
costs
£
£
Postage and stationery
917
-
Advertising
-
-
Office expenses
1,552
-
Sundries
101
-
Training and education
2,350
-
Card save costs
-
-
Subscriptions
266
-
Community relations
1,651
-
Audit fees
-
810
Trustees' expenses
-
1,292
6,837
2,102
Analysed between
Charitable activities
6,837
2,102		 2023
Support
costs
Governance
costs
£
£
£
917
1,297
-
-
602
-
1,552
1,216
-
101
72
-
2,350
5,557
-
-
825
-
266
270
-
1,651
66
-
810
-
780
1,292
-
628
8,939
9,905
1,408
8,939
9,905
1,408		 2022
£
1,297
602
1,216
72
5,557
825
270
66
780
628
11,313
11,313

THE CHESHIRE MILITARY MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. Trustees expenses totalled £1,292 (2022: £628).

11 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2023
Number
3
2023
£
41,934
2,267
1,514
45,715		 2022
Number
3
2022
£
36,988
-
-
36,988

The key management personnel of the Charity comprise the Trustees. The total employee benefits of the key management personnel of the Museum were £nil (2022: £nil).

There were no employees whose annual remuneration was more than £60,000.

12 Tangible fixed assets

Appeal
property
improvements
Computers
£
£
Cost
At 1 April 2022
487,867
1
At 31 March 2023
487,867
1
Depreciation and impairment
At 1 April 2022
332,240
-
Depreciation charged in the year
1,294
-
At 31 March 2023
333,534
-
Carrying amount
At 31 March 2023
154,333
1
At 31 March 2022
155,627
1		 Total
£
487,868
487,868
332,240
1,294
333,534
154,334
155,628

All fixed assets are used for charitable purposes.

THE CHESHIRE MILITARY MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

13
Stocks
Stock
14
Debtors
Amounts falling due within one year:
Trade debtors
15
Creditors: amounts falling due within one year
Trade creditors
Other creditors		 2023
£
10,620
2023
£
-
2023
£
-
834
834		 2022
£
9,370
2022
£
6,955
2022
£
2,412
835
3,247

THE CHESHIRE MILITARY MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

16 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds
Balance at
1 April 2021
Income
Expenditure
Balance at
1 April 2022
£
£
£
£
Donations from friends
29,178
2,241
(281)
31,138
Grants
-
37,209
(24,306)
12,903
29,178
39,450
(24,587)
44,041		 Movement in funds
Income
Expenditure
Transfers
Balance at
31 March 2023
£
£
£
£
-
-
(31,138)
-
22,751
(23,751)
(11,903)
-
22,751
(23,751)
(43,041)
-		 Movement in funds
Income
Expenditure
Transfers
Balance at
31 March 2023
£
£
£
£
-
-
(31,138)
-
22,751
(23,751)
(11,903)
-
22,751
(23,751)
(43,041)
-
-

Donations from friends are funds to spend on encouraging interest in the story of "The Soldiers of Cheshire" and to support the museum’s aims. As such we have transferred out the brought forward restricted funds balance as this is actually a museum charitable activity and the funds are not classed as restricted.

Grants are in relation to Army Museums Ogilby Trust (AMOT) grants received during the year for specific projects within the Cheshire Military Museum. In addition, other grants for restarting the educational service and reengaging school's project. All funds for these projects had been spent by the year end and as such a transfer of funds from restricted to unrestricted was made as the costs associated with these projects had been classified as unrestricted in the prior year.

THE CHESHIRE MILITARY MUSEUM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

17
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2023
2023
£
£
Fund balances at 31
March 2023 are
represented by:
Tangible assets
154,334
-
Current assets/(liabilities)
194,149
39,814
348,483
39,814		 Total Unrestricted
funds
Restricted
funds
2023
2022
2022
£
£
£
154,334
155,628
-
233,963
201,154
44,041
388,297
356,782
44,041		 Total
2022
£
155,628
245,195
400,823

18 Related party transactions

There were no disclosable related party transactions during the year (2022 - none).