Collections Trust Annual Report and Financial ststements 31 March 2021 Corllpany Limited by Guarantee Registration Number 01300565 IEngland and Waksl Charty Registration Number 0273984 Contents Reports Referen￿ and administrative information Trustees, annual report Independent auditor's report 14 Financial statements Statement of financial activities 19 Balance sheet 20 Statement of cash flows 21 Principal accounting policies 22 Notes lo the financial statements 26 Collections Trust Reference and administrative details about the charty. its Board and its advisers Charity name Collections Trust Charlty number 0273984 Company number 01300565 Registered office Rich Mix 3547 Bethnal Green Road London E16LA Trustees and dlrectors Ms C Hampshire {Chairl Mr RAvann Ms K Childs Ms S Elliott Ms A Karla Dr C Michaels Ms T Simpson Mr P Stevenson Ms L Turner Company Secretary and Chief Executive Mr K Gosling Bankers CAF Bank Ltd 25 Kings Hill Avenue Wesl Malling ME19 4JQ Auditor Buzzacott LLP 130 Wood Street London EC2V 6DL Collections Trust Tru$tees' annual report 31 March 2021 The trustees, who are also directors under company law, present their report and financial statements for the year ended 31 March 2021. The Iruslees confirm that the financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice Accounting and Reporting by Charities." 8pplieable to charities P￿ paring theirfinancial statements in aecordance with FRS 102. Collections Trust does not fall within the definition of a 'larger charity,. STRUCTURE. GOVERNANCE AND MANAGEMENT Collections Trust is a charitable company limited by guarantee 1013005651, originally incorporated las the Museum Documentation Associalionl on 28 February 1977. It is registered as a charity with the Charity Commission102739841. Its governing document is its Memorandum and Articles of Association. Governance Collections Trust is governed by its board, whose members are directors under company law and also Iruslees under charity law. All members give their time voluntarily and receive no benefits except for the offer of a free copy of Spectrum and discounted conference tickets in order to further their understanding of our work. Any expenses reclaimed are set out in note 6 to the financial stslements. The articles of association stsle that the minimum number of Iruslees shall be three bul sel no maximum number. There are currently thirteen trustees. There are currently nine trustees. They are elected lo serve a period of three years, after which they may be re- elected once for a further three years. In February 2021 four trustees came to the end of their second Ihree-year term. It was decided to defer recruiting new trustees until the priorities of the org8nis8tion's business plan for 2023-27 become clearer over coming months. The trustees who served throughout the year ended 31 March 2021 and up to the date these financial statements were approved, except where indicated, were.. Trustees AppointedlResigned Ms C Hampshire (Chairl MrRAvann Ms K Childs Ms S Elliott Ms J Jones Ms A Karla Ms S Levitt Dr C Michaels Ms D Potter Ms S Raikes Ms T Simpson Mr P Stevenson Ms L Turner Ms I Walsh Resigned 8 April 2020 Resigned 25 February 2021 Resigned 25 February 2021 Resigned 25 February 2021 Resigned 25 February 2021 Collections Trust _Promote the education of the public by the development of museums and similar organisations by all appropriate methods._ _Help museums capture and share the information that gives their objects meaning. Our standards and advice are used around the world to make museum collections accessible._ - _Continue to build Collections Trust into a thriving, resilient sector support organisation valued around the world as a centre of excellence for collections management standards and advice._ - _Consolidate Spectrum as the international standard for museum collections management._ - _Work in partnership with other sector bodies to reduce significantly the number of UK museums without an appropriate inventory of their holdings._ - _Help UK museums enrich their collections information, capturing the knowledge generated through the use of collections by a wide range of people._ - _Influence the development of a sustainable, futureproof infrastructure for sharing and_ _storing the UK’s digital collections, linked to the wider online cultural heritage ecosystem._ - _Use that infrastructure to develop tools and procedures that support smarter working with collections across the sector._ ## _**Influencing the development of a sustainable digital infrastructure**_ _Towards a National_ _Collection_ ## _**Influencing the development of a sustainable digital infrastructure** (continued)_ _**Making it**_ _**FAIR,**_ ## _**A thriving, resilient sector support organisation**_ - _The bite size sessions fit well into my work_ - _balance, as I find it hard to get the time for off the more in depth on-site sessions._ - _Dynamic information for dynamic collections_ _There was universal kudos for the way in which the Collections Trust had pivoted to deliver everything online during Covid-19, and how responsive the organisation had been to the needs of the sector with Covid-19-specific training and advice - ‘at the start of the pandemic, it was amazing how Collections Trust just went online’. Many respondents mentioned the delivery of the 2020 Conference as being particularly impressive._ _… The Museum Development teams across England are all invested in the Collections Trust and its work. They all report that the Collections Trust is responsive at all levels, interested in what the museums need, and efficient in its delivery. One respondent stated that, ‘The Collections Trust doesn’t just deliver what the Collections Trust wants to deliver’. This was echoed repeatedly and is highly valued._ _Collections Trust is the best SSO._ ## _**Spectrum as the international standard for museum collections management**_ _Spectrum: the UK Museum Collections Management Standard_ Tru$tees' annual report 31 March 2021 Spectrum SpBclrum C Resour￿ < EN ES FllNLNQgV Jlknsyl The Spanish translation formed part of the British Council's International Museums Academy programme in Peru. Our Outreach Manager, Sarah Brown, delivered nine online workshops introducing the Spectrum standard, each of which was attended by around 400 museum professionals from across Peru. The British Council continues to help those museums pul Spectrum into practice within the Peruvian context. As well as spreading the geographical reach of Spectrum thmugh these intemalional collaborations, the standard is being used as the cornerstone of other standards development work. In Notway, the Norwegian Arts Council has piloted a Spectrum-based self-evaluation tool lo help museums assess and improve their collections management practice. We fully support this initiative, which will be useful elsewhere once the final version is released. Back in the UK, the London Museum Documentation Nelmork is working on a toolkit for managing 'dlgital collection objects,, supported by our Standards Manager, Gordon McKenna. This will provide tools and guidelines taken from the digital preservation community and adapted for museums within the Spectrum framework. It is hoped lo publish the results later in 2021. A significant proportion of our annual income comes from licensing Spectrum for commercial use in collections management systems and related sofvare by our Spectrum Partners. These are much-valued long-lerm relationships with companies that help users worldwide pul Spectrum into daily practice. We are grateful to all our Spectrum Partners, despite the difficult trading conditions of the past year. Collections Trust Tru$tees' annual report 31 March 2021 FINANCIAL REVIEW During the year, Collections Trust had Income, excluding bank interest, of £359,80312020 - £389,092). Ofthis, £234,232 {2020- £230,000) was restricted funding with £234,23212020 £230,000) received from the Arts Council England. The remaining income of £125,571 12020 - £159,0921 was made up from retail sales of publications and forms £20,79312020 £40,886)., Spectrum Partnership membership fees £47,270 12020 £66,894),. consultancy projects £45,57912020 £41,731),. furlough grant income £11,29412020 - £nill", and donations £42512020 £nill, plus other income of £210 12020- £1,505). This year no income was eamed from the annual conference12020 £8,076) as il was held as a free online event due to the coronavirus pandemic. Collections Trust spent £234,232 12020 £230,000) directly on Arts Council England projects, including staff time. £106,578 12020 £120,085) was spent on other charitable activities Iretail, Spectrum partnerships, and consullancyl. The year finished with an overall surplus of £19,01512020 £39,084). Total funds carried forward (excluding the pension liabililyl were £127,921 12020 - £116,9061 of which £97,921 12020- £86,906) was unrestricted funds and £30,00012020- £30,000) of restricted monies, giving free reserves lunreslricled funds excluding fixed assetsl of £97,81412020- £86,3791. The balance sheet shows total funds lo be in deficit by £317,079, once the defined benefi't pension deficit, calculated by the actuary as £445,000, is taken into awounl. Reserves policy To mitigate against a cash flow failure, or a reduction in income, the charity aims lo keep three month's operating costs, being approximately £90,000, in reserve. This level is also calculated lo provide suffieient cover for unexpected costs. In the event that the reserves fund is depleted for any of the above s￿narios, the organisalion aims lo return the fund to the sel level within as short a timeframe as is reasonable within the limits of cashflow and other commitments. The organisalion aims to provide for these reserves through Ljnrestricted surplus funds carried forward at the end of each financial year. This money shall be invested in bank savings accounts on the most advantageous overall terms, in respect of interest and charges and access, and will be regulady reviewed. This policy has been reviewed by the trustees in light ofthe Covid-19 pandemic and deemed to still be an appropriate strategy. Despite the difficult economic environment the organisation made sufficient profit during the year lo return the reseNes fund to target level for the first time in several years. To work towards eliminating the funding shortfall in the LGPS pension scheme, the ￿heme trustees and charity have agreed a repayment schedule of £15,000 per year in additional contributions for the next len years. The Iruslees are satisfied that this is reasonable level that can be afforded annually from budgeted expenditure without impacting reserves. Collections Trust Tru$tees' annual report 31 March 2021 FINANCIAL REVIEW Icontinuedl The trustees have considered the strategic risks facing Collections Trust and the measures needed to miligale them. Risk Capacity and eontinuty The CEO is currently the key income-generating role, and repository of organisational knowledge on strategy in the wider museum sector. Low- There is more work lo be done in this area than can be achieved by one individual, and there is also the risk that if the CEO becomes incapacilaled il will not be possible lo continue with existing or new projects or contracts Tolerance Steps have been taken to mitigate this risk, with the employment of a new outreach offi￿r, and the promotion of the current OLJlreach officer to lake a more strategie role supporting the CEO. The risk is still a concern in the short term whilst the new outreach officer setues in and knowledge is transferred, but in the medium term it is much reduced. Mitigation The organisalion has also drawn up a business conlinuily plan which addresses the loss of other members of stsff and other continuity issues. Risk Reputation and relevance in the sector Our latest impact evaluation survey showed very high levels of satisfaction from those who engage with us regularly doing day to day collections management work. However, il also revealed a lack of awareness amongst sector leadership of the work that CT does and how that work could support wider strategic plans. There is the danger that with all the projects currently going on, we fall through the cracks and someone tskes up the proposals we have been making for an aggregator, but we are not involved in making il happen. Low - if CT is not considered lo be relevant, or key parties do not understand the signifieanee of our work we risk missing out on strategic partnerships and opportunities that could move forward both Collections Trust's work, and also the sector as a whole. We also risk not having our funding continued. Tolerance Vvork will focus on advocacy and awareness raising to ensure that key funders and sector leaders understand that our work is necessary in order lo deliver large infraslruclure projects and other strategic plans. Mitigation Collections Trust 10 Tru$tees' annual report 31 March 2021 FINANCIAL REVIEW Icontinuedl Risk Management Icontinuedl Risk Financial sustainability Efforts in recent years to rebuild CT'S reserves mean that the oryanisalion is currently on a secure financial footing. However, more broadly the economic outlook post pandemic is less positive, and this could affect the income generation possibilities available lo CT. The additional year of funding offered by ACE under the current grant is currently being agreed, and a new funding agreement from 2023 will need lo be applied for. The political focus is currently on STEM subjects al the expense of the arts. Sustained challenges to public finan￿5 could therefore lead to funding being cul or removed during a government spending review. Medium in the short-term sinTr we now have healthy reserves, bul low in the longer term as without the ACE grant the organisation could not continue lo operate. Tolerance The miligalion for this is the same as for reputation and relevan ensuring that we make ourselves indispensable to ACE and making sure that sector leadership appreciates the Significan￿ of our work. Mitigation Risk Cyber security Recent high-profile cases have shown that even the largest organisalions with the most sophisticated cyber security are not immune to cyber-allacks. CT is reliant on IT systems and the internet in all its operations. A cyber-attack could compromise ils ability to deliver its services and generate income. A data breach could also risk litigation and damage to our reputslion. Medium to low whilst a cyber-allack is unlikely lo threaten the existence of CT, il could take considerable time and reSoUr￿S to resolve al allack, which would exacerbate the inability caused by the initial allack lo deliver our ServI￿S and generate income. Tolerance Collections Trust 11 Tru$tees' annual report 31 March 2021 We have recently undertaken CyberEssentials accreditstion to ensure our systems are as secure as possible and a￿ in the process of reviewing any other actions that could be taken lo increase security. This will include regular training for staff, and a focus on the risks of homeworking. We also hold cyber Insuran￿ as part of the Cyber Essentials accreditstion. Mitigation FINANCIAL REVIEW Icontinuedl Going Concern The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Iruslees have made this assessment in respect to a period of one year from the dale of approval of these financial statements, and in light of the continuing implications of the coronavirus pandemic and its effect on the economy with consideration given lo budget forecasts, cashflow, confirmed and pipeline projects. The trustees have given particular consideration to the defi'ned benefit pension liability, recognising that this puls the balance sheet into deficit. Vvhilst this is a large liability, it Is not an immediate one, and a manageable repayment plan has been agreed with the pension fund over the next ten years, meaning it is not a cause for concern. The organisation performed well over the year despite the broader global difficulties, delivering a high service lo stakeholders under the ACE grant, and securing consultancy income al Ihree-quarters of the level in a normal year. Whilst retail sales were affected more heavily, it is expected that these will make a gradual recovery in the coming year. The strong results for the year meant that the reserves target has been met, and that the organisation is in a firm position to weather the potential impacts of an economic downturn. The trustees have therefore concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concem. STATEMENT OF REPONSIBILITIES OF THE TRUSTEES The Iruslees (who are also directors of the charitable company for the purposes of company lawl are responsible for preparing the Iruslees, annual report and the financial statements in aceordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally A¢￿pted Accounting Praclicel. Company law requires the trustees to prepa￿ financial ststemenls for each financial year which give a true and fair view of the slate of affairs of the charitable company and of the incoming reSoUr￿S and application of resources, including the income and expenditure, of the charitsble company for that period. In preparing these financial ststements, the Iruslees are required to.. Select suitable accounting policies and then apply them consistently, Observe the methods and principles in the Charities SORP., Make judgements and estimates that are reasonable and prudent., Collections Trust 12 Tru$tees' annual report 31 March 2021 Stale whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements., and Prepare the financial statements on the going concern basis unless it is Inappropriate lo presume that the charity will continue in operation. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy al any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also resF)onsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the Maintenan￿ and integrity of the corporate and financial information included on the charitable company's website. Legis18tion in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in olherjurisdiclions. In so far as the trustees are aware.. There is no relevant audit information of which the charitable company's auditors are unaware., and The trustees have taken all steps that they ought to have taken lo make themselves aware of any relevant audit information and lo estsblish that the auditors are aware of that information. Members of the charity guarantee lo contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2021 was 1412019". 101. The Iruslees are members of the charity but this entiues them only to voting rights. The Iruslees have no beneficial interest In the charity. The trustees, annual report has been approved by the trustees and signed on their behalf by: C Hampshire, Chair Dale.. 7129/2021 Collections Trust 13 Independent auditor's report 31 March 2021 Independent auditor's rgport to the members of Collections Trust Oplnlon We have audited the financial st21ements of Collections Trust Ithe 'charitable company'l for the year ended 31 March 2021 which comprise the slalemenl of financial activities, the balance sheet, statement of cash flows, the principal accounting policies and the notes to the financial slatemenls. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, Including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, Iunited Kingdom Generally Accepted Accounting Practi￿1. In our opinion, the finanei81 statements.. give a true and fair view of the state of the charitable company's affairs as at 31 March 2021 and of its income and expenditure for the year then ended., • have been propedy prepared in accordan￿ with United Kingdom Generally Accepted Accounting Practice., and + have been prepared in accordance with the requirements of the Companies Aet 2006. Basis for opinion We conducted our audit in accordan￿ with International Stsndards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Collections Trust 14 Independent auditor's report 31 March 2021 Conclusions relating to going concern In auditing the financial statements, we have eoncluded that the Iruslees, use of the going ncern basis of accounting in the preparation of the financial ststemenls is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating lo events or conditions that, individually or collectively, may cast significant doubl on the charitable company's ability to continue as a going concern for a period of at least Imelve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report and financial stalemenls. Our opinion on the financial statements does not cover the other information and, except lo the extent otherwise explicitly slated in our report, we do not express any form of assurance conclusion Ihereon. Our responsibility isto read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misstalemenls, we are required to determine whether this gives rise lo a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required lo report that fact. We have nothing lo report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit". the information given in the trustees, report, which is also the directors, report for the purposes of company law for the financial year for which the financial statements are prepared is consislenl with the financial statements,. and + the trustees, report, which is also the directors, report for the purposes of company law, has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and ils environment obtained in the course of the audit, we have not identified material misstatements in the trustees, report. We have nothing lo report in respect of the following mallers in relation to which the Companies Act 2006 requires us lo report lo you if, in our opinion.. Collections Trust 15 Independent auditor's report 31 March 2021 adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and returns., or certain disclosures of Iruslees, remuneration specified by law are not made.. or we have not received all the information and explanations we require for our audit", or • the trLJStees were not entitled to prepare the financial statements in accordan￿ with the small companies regime and lake advantage of the small companies, exemptions in preparing the trustees, report and from the requirement to prepare a strategic report. Responslbllltles of trustees As explained more fully in the tnjstees, responsibilities statement, the trustees Iwho are also the directors of the charitable Company for the purposes of company lawl are responsible for the preparation of the financial stslemenls and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misslatemenl, whether due to traud or error. In preparing the financial slalements, the Iruslees are responsible for assessing the charitable company s ability lo continue as a going concern, disclosing, as applicable, mallers related lo going concern and using the going concem basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realists'c alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due lo fraud or error, and lo issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guamnlee that an audit conducted in accordance with ISAS IUKI will always delect a material misstatement when il exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are InStan￿S of non-compliance with laws and regulations. We design pr￿dureS in line with our responsibilities, outlined above, lo detect material misstatements in respect of ir￿gUIarl1ies, including fraud. The extent lo which our procedures are capable of detecting irregularities, including fraud is detailed below.. Our approach lo identifying and assessing the risks of material misstslement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement team collectively had the appropriate competen￿, capabilities and skills to identify or recognise non- Collections Trust 16 Independent auditor's report 31 March 2021 compliance with applicable laws and ￿gulations", we identified the laws and regulations applicable to the charitable company through discussions with management, and from our commercial knowledge and experience of the sector., the identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit., we focused on specific laws and regulations which we considered may have a direct material effect on the accounts or the activities of the charity. These included but were not limited to the Charities Act 2011, Companies Act 2006 and data protection legislation. we assessed the extent of Complian￿ with the laws and regulations identified above through making enquiries of management, inspecting legal correspondence and reviewing trustee meeting minutes. We assessed the SUS￿ptibl1ify of the company's financial statements lo material misstatement, including obtsining an understanding of how fraud might occur, by.. making enquiries of management and those charged with governance as lo where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud., and considering the internal controls in place to miligale risks of fraud and non- Complian￿ with laws and regulations. To address the risk of fraud through management bias and override tsf controls, we.. perfoTmed analytical procedures to identify any unusual or unexpected relationships., tested journal entries to identify unusual transactions., tested the aulhorisation of expenditure as part of our substantive testing thereon., assessed whether judgements and assumptions made in detem)ining the accounting eslimales set out in the accounting policies We￿ indic21ive of potential bias,. and used data analylics to identify any significant or unusual transactions and identify the rationale for them. In response lo the risk of irregularities and non-compliance with laws and regulations, we designed procedures which Included, but were not limited lo.. agreeing financial statement disclosures lo undertying supporting documentation., reading the minutes of Iruslee meetings., Collections Trust 17 Independent auditor's report 31 March 2021 enquiring of management and those charged with governance as to actual and potential litigation and claims., and There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely il is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required lo identify non-compliance with laws and regulations lo enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. Material misslatemenls that arise due lo fraud can be harder to delecl than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council's website al www.frc.org.uklaudilorsresponsibililies. This description forms part of our auditor's report. Use of our report This report is made solely lo the charitable company's members, as a body, in aecordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might stale lo the charitable company's members those matters we are required to slate to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Catherine Biscoe Isenior Ststutory Audilorl For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL Dale 12 August 2021 Collections Trust 18 Statement of financial activities {incorporating an income and expenditure account) 31 March 2021 2021 Total fund8 2020 Totsl funds Unrestricted funds Restricted funds Notes Income from.. Charitable activities Investments Total income 125,571 22 125,593 234,232 359,803 22 359.825 389,092 77 389,189 234,232 Expènditurè on.. Charitable activities.. Projects and programmes Other charitable activiti85 Total expenditure 234,232 234.232 106.578 340.810 230,01)0 120.085 350,085 108,578 106,578 234,232 Net income for the year 19.015 19,015 39.084 Net income before other recognised gains and los3e8 19.015 19,015 39.084 Other re¢ogni8ed 108¥es Actuarial loss in respect to defined benefit pension scherne Net movement in funds 19 1229,0001 1209.9851 1229,0001 1229,0001 1209,9851 1189,9161 R￿on¢ll10￿On of fund¥'. Total funds brought foNard 1137,0941 30,000 1107,094 82,822 Total funds carrled fon¥ar(I 1347,0791 30,000 1317,0791 1107,0941 All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. The attached notes ft)rm part of these financial statements. A full comparative statement of financial activities is included at Note 1. Collections Trust 19 Balance sheet 31 March 2021 2021 2021 2020 2020 Notes Fixed assets Tangible assets 107 528 Current assets Stock Debtors Cash at bank and In hand 1,062 13,391 142,494 156,947 1,123 35.804 107,833 144,560 10 Liabilitie¥= Creditors.. amounts falling due within one year 129,1331 128,1821 Net current assets 127,814 116,378 Total assèts lèss currnnt liabilities 127,921 116,906 Pension liability 19 1445,0001 1224,0001 Total net Iliabilitiesl 1317,0791 1107,0941 The funds of the charity: Restricted funds Unrestricted funds.. Pension reseNe Gener81 funds Total unrestricted funds 12 30,000 30,000 12 1445,0001 12 97,921 1224,0001 86.9)6 12 1347,0791 1137,0941 Total funds 1317,0791 1107.0941 The financial statements have been prepared in accordan￿ with the special provisions ft)r small companies under Part 15 of the Companies Act 2006. Approved by the Iruslees and signed on their behalf by.. Camilla Hampshire Trustee Date.. 7/29/2021 Company registration number.. 01300565 The attached notes form part of the financial statements. Collections Trust 20 Statement of cash flows 31 March 2021 2021 2021 2020 2020 Note Cash flows from operating activities: Net cash provided by operating activrfties 14 34,639 56,430 Cash flows from Investlng activities: Interest received 22 77 Cash Provided by investing activities 22 77 Change in cash and cash equivalents in the year 34,661 58,507 Cash and cash equivalents * the beginning of the year 107,833 51,326 Cash and cash equivalents at the end of the year 142,494 107,833 Collections Trust 21 Principal accounting policies 31 March 2021 Basis of preparation The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their financial slalemenls in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021- (Charities SORP FRS 1021 and the Companies Act 2006. The charitable company meets the definition of a publie benefit entity under FRS 102. The financial statements have been prepared under the historical cost convention with items initially recognised al cost or Iransacts'on value unless othetwise staled in the relevant accounting policy notelsl. The financial statements are presented in sterling and are rounded to the nearest pound. Going concern The Iruslees have assessed whether the use ofthe going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the dale of approval of these financial statements, and in light of the continuing implications of the coronavirus pandemic and ils effect on the economy with consideration given to budget forecasts, cashflow, confirmed and pipeline projects. The trustees have given particular consideration lo the defined benefit pension liability, recognising that this puls the balance sheet into deficit. Infftilsl this is a large liability, it is not an immediate one, and a manageable repayment plan has been agreed with the pension fund over the next ten years, meaning it is not a cause for concern. The organisation performed well over the year despite the broader global difficulties, delivering a high service lo stakeholders under the ACE grant, and securing consultancy income al Ihree-quarters of the level in a normal year. Whilst retail sales were affected more heavily, il is expected that these will make a godual recovery in the coming year. The strong results for the year meant that the reserves target has been met, and that the organisation is in a firm position lo weather the potential impacts of an economic downturn. The Iruslees have therefore concluded that there are no material Un￿rtaInlieS related lo events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. Critical accounting estimates and argas of judgement The most significant area of adjustment and key assumption that affects items in the financial statements is the anticipated pension liability which the charity will have to pay, and which is detailed in note 19. Collections Trust 22 Principal accounting policies 31 March 2021 Income Income is recognised when the charity has enlillemenl to the funds, any performance conditions attsched to the income have been mel, it is probable that the income will be re￿iVed and that the amount can be measured reliably. Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement lo the funds, any perfomiance conditions attached lo the grants have been mel, it is probable that the income will be received, and the amount can be measured reliably and Is not deferred. Income received in advance for the provision of specified setvice is deferred until the criteria for income recognition are mel. Retail and publishing income is recognised in the period in which the customer pla￿S the order. Consultancy income is recognised in the period in which the work is delivered to the customer. Income from events and training are recognised in the period in which the event or training takes place. Interest on funds held on depos11 is included when receivable and the amount can be measured reliably by the charity., this is normally upon nolif56ication of the interest paid or payable by the bank. Fund accounting Unrestricted funds are available lo spend on activities that further any of the purposes of charity. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity. Expenditure and irrecoverable VAT Expenditure is recognised On￿ there is a legal or constructive obligation lo make a payment to a third party, it is probable that selllemenl will be required, and the amount of the obligation C8n be measured reliably. All expenditure is accounted for on an accruals basis. Expenditure is comprised of direct and support Costs. Direct costs are allocated to a specific activity. The classification be￿een activities is as follows.. Costs of raising funds comprise the costs incurred by the charitable company in inducing third parties lo make voluntary Contributions lo it, as well as the cost of any activities with a fundraising purpose. Expenditure on charitable activities includes costs of delivering services, exhibitions and other activities undertaken to further the purposes of the charity and their associated support costs", and Other expenditure represents those items not falling into any other heading. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. Collections Trust 23 Principal accounting policies 31 March 2021 Allocation of support costs Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back-office costs, finance, payroll and govemance costs which support the charitable activities. These costs have been allocated bel￿een the various charitable activities. The basis on which support costs have been allocated are sel out in note 4. Operating leases Rental charges are charged on a straighl-line basis over the temi of the lease. Tangible fixed assets Items of equipment are capitalised where the assets are expected to have a useful life of more than four years. The capitalisalion threshold is £1,000. Depreciation is provided al rates calculated to write down the cost of each asset to Ils estimated residual value over ils expected useful life. The depreciation rates in use are as follows.. Fixtures and fittings 200/0 per annum based on cost Computer equipment 250/0 per annum based on cost Stock Stock is included al the lower of cost or nel realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing lo pay for the items on the open market. Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Cash at bank and in hand Cash at bank and cash in hand includes cash and short term highly liquid investments with a short malurily of three months or less from the date of acquisition or opening of the deposit or similar account. Creditors and provisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due lo settle the obligation ean be measured or estimated reliably. Creditors and provisions are normally recognised al their settlement amount after allowing for any trade discounts due. Financial instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial Instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured al amortised cost using the effective interest method Collections Trust 24 Principal accounting policies 31 March 2021 Pensions The charity contributes to a defined benefit scheme operated by Cambridgeshire County Council, which provides benefit based on average pensionable salary. The assets of the scheme are held and managed separately from those of the charity. Pension scheme assets are measured using market values. Pension scheme liabilities are measured using the projected unit actuarial method and are discounted at the current rate of retum on a high-quality Corporate bond of equivalent term and currency to the liability. Any increases in the present value of the liabilities within the charity's defined benefit scheme expected to arise from employee service in the period is allocated to the respective expense category within the statement of financial activities. Actuarial gains and losses are recognised in the statement of financial activities as part of other recognised gains and losses for the period. The charity also offers an auto-enrolmenl pension scheme into which all new employees are enrolled. Contributions in respect to the personal pension schemes and defined contribution schemes are recognised in the statement of financial activities in the year in which they are payable lo the relevant scheme. Collections Trust 25 **----- Start of picture text -----**
2020
Unrestricted Restricted Total
funds funds funds
£ £ £
— 230,000 230,000
40,886 — 40,886
66,894 — 66,894
41,731 — 41,731
8,076 — 8,076
— — —
— — —
1,505 — 1,505
159,092 230,000 389,092
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**----- Start of picture text -----**
2020
Unrestricted Restricted Total
funds funds funds
£ £ £
77 — 77
**----- End of picture text -----**
**----- Start of picture text -----**
Restricted Unrestricted
2020
ACE Retail Spectrum Consultancy Conference CT Award Total
£ £ £ £ £ £ £
Expenditure
Direct costs 36,514 19,913 681 5,790 4,276 1,047 68,221
Direct staff costs 122,553 13,354 3,634 26,934 — — 166,475
159,067 33,267 4,315 32,724 4,276 1,047 234,696
Overheads
Administration overheads 43,527 4,295 616 5,293 — — 53,731
Staff overheads 27,406 14,419 2,063 17,770 — — 61,658
70,933 18,714 2,678 23,063 — — 115,389
Total expenditure 2020 230,000 51,981 6,994 55,787 4,276 1,047 350,085
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_2020 £ 25,453 663 7,195_ _2020 £ 203,577 18,104 11,453 233,133 (5,000) 228,134_ _2020 £ 1_ _2020 No. 2.6 0.5 0.1 0.5 1.5 5.2_ _2020 £ 1,123 1,123 2020 £ 5,550 25,906 4 1,744 2,400 35,604_ _2020 £ 10,682 — 15,733 1,695 72 28,182_ **----- Start of picture text -----**
2020
Total
Unrestricted Restricted funds
£ £ £
528 — 528
86,378 30,000 116,378
—
(224,000) (224,000)
(137,094) 30,000 (107,094)
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||_2020_
_At the_
_start of the_
_year_
_£_
_30,000_
_30,000_
_—_
_52,822_
_52,822_
_82,822_|_Income_
_£_|_Expenditure_
_£_|
_Gains /_
_(losses)_
_£_
_—_
_—_
_(229,000)_
_—_
_(229,000)_
_(229,000)_|**_2020_**
**_At the_**
**_end of the_**
**_year_**
**_£_**| |---|---|---|---|---|---| |**_Restricted funds_**
_Arts Council England_
_Core funding_
**_Total restricted funds_**
**_Unrestricted funds_**
_Pension fund_
_General funds_
**_Total unrestricted funds_**
**_Total funds_**||_230,000_
_230,000_
_—_
_159,169_
_159,169_
_389,169_|_(230,000)_
_(230,000)_
_5,000_
_(125,085)_
_(120,085)_
_(350,085)_||**_30,000_**
**_30,000_**
**_(224,000)_**
**_86,906_**
**_(137,094)_**
**_(107,094)_**| _2020 £ 39,084 663 (77) (559) 54,557 (32,238) (5,000) 56,430_ ||_At 1_
_April_
_2019_
_£_|


_Cash flows_
_£_|**_At 31_**
**_March_**
**_2020_**
**_£_**| |---|---|---|---| |_Cash at bank and in hand_|||| Notes to the financial statements 31 March 2021 16 Operating lease Commitments Total future minimum lease payments under non-cancellable operating leases are as follows.. Property 2021 2020 Leases which expire.. Within one year Within two to five years 20,350 2,779 23,129 20,350 23,129 43,479 17 Legal status of the charity The charity is a company limited by guarantee and has no share capital. Each member is liable to contribute a sum not exceeding £1 in the event of the charity being wound up. 18 Related party transactions Other than as disclosed in note 6, there were no related party transactions for 202112020 - There are no donations from related parties which are outside the normal course of business and no reslricled donations from related parties. 19 Defined benefit pension commitments The charity parlicipales in the Cambridgeshire County Council Pension Scheme, a Career Average Revalued Earnings ICAREI Pension Scheme, a mulli-employer scheme. Participation in the Scheme is by virtue of the organisation's status as an Admitted Body to the Fund. In 2007 the charity was enrolled in a Small Bodies Pool within the pension scheme, and whilst in this pool it was not possible to obtain sufficient information lo enable il to account for the scheme as a defined benefit scheme. 11 therefore accounted used defined contribution accounting. A full triennial actuarial valuation of the scheme was carried out at 31 March 2019. At the same time the Fund look the decision lo disb8nd the Small Bodies Pool, and as such Collections Trust were able to identify their individual funding position. The valuation 31 March 2019 showed the charity had assets of £1,005,000, liabilities of £1,638,000 and a deficit of £633,000. To work towards eliminating the funding shortfall, the scheme trustees and charity have agreed a repayment schedule of £15,000 per year in additional contributions for the next nine years. Collections Trust 32 Notes to the financial statements 31 March 2021 19 Pension commitments Icontinuedl FRS 102 Financial Reporting Standard 102 IFRS 1021 requires the surplus or deficit on the Scheme as at 31 March 2021, calculated in accordance with the requirements of FRS 102, to be ineluded on the balance sheet. For the purpose of FRS 102, the assets of the scheme have been tsken al market value and the liabilities have been calculated by a qualified independent actuary. In order to assess the actuarial value of the charity's assets and liabilities as al 31 March 2021, the actuaries have rolled forward the actuarial value of the assets and liabilities of the scheme al 31 March 2020. The major assumptions used by the actuary in preparing the FRS 102 figures were.. 2021 p8r annum Rale of increase in Salaries Rate of increase in pension payments Discount rate Rate of Inflation- CPI 2.05 2.70 2.70 2.70 The mortality assumptions used were as follows.. 2021 ears Longevity 8t age 65 for wrrenl pensioners .Men . Women Longevty at age 65 for future pensioners .Men . Women 22.1 24.2 22.9 25.6 The nel movement in the FRS 102 liability during the year was". 2021 £'OOO$ Nel deficit in ￿herne a11 April Service cost Net interest Administration expenses Employer contributions Re-measurement of the defined liabilty Net deficit in schem8 at 31 March 12241 151 24 12301 14451 Collections Trust 33 Notes to the financial statements 31 March 2021 19 Pension commitments Icontinuedl FRS 102 (continued) Total expenditure recognised in the statement of financial activities ISOFAI was.. 2021 £OOOs Service cost Total expendlture recognlsed In SOFA Ernployer contributions FRS 102 charg8 24 35 The net gain recognised in the re-measurements in other recognised gains and losses was.. 2021 £OOOs Actuarial losses on scheme liabilities Actuarial gains on scheme assets Remeasurement of the defined benefit liability 14311 201 12301 Asset and benefit obligation reconciliation for the year to 31 March 2021.. 2021 £OOOs Opening defined benefit obligation Current service cost Interest cost Contributions by scheme participants Benefits paid Actuarial losses Closing defined benefit obligation 11,1681 1261 121 14 14311 11,6241 Reconciliation of opening and closing balances of the fair value of the charity's share of the scheme assets.. 2021 £OOOs Fair value of scheme assets at 1 April A￿uar181 gains Interest on pension liabilities Contribution5 by employei Contributions by fund participants Benefits paid Fair value of scheme assets at 31 March 944 201 22 1141 1,179 Collections Trust 34 Notes to the financial statements 31 March 2021 19 Pension commitments Icontinuedl FRS 102 (continued) The charity's share of the assets in the scheme were.. Value at 31 March 2021 £'ooo Equities Government bonds Other bonds Property Other managed funds Total market value of assets 60.20 5.00 9.70 8.70 16.40 710 59 114 103 193 1.179 Contributions The total contributions payable by the employer in the yearwere £24,000. At 31 March 2021, there no oulstsnding contributions due lo the scheme. The best estimate of contributions to be paid by the charity lo the scheme for the year ending 31 March 2022 is £24,000. Collections Trust 35