## **Annual report and financial statements** 

31 March 2025 

Company limited by guarantee Registration number 01300565 (England and Wales) 

Charity registration number 0273984 



## **Contents** 

|**Reports**||
|---|---|
|Reference and administrative information|1|
||2|
|report|12|
|**Financial statements**||
|Statement of financial activities|17|
|Balance sheet|18|
|Statement of cash flows|19|
|Principal accounting policies|20|
|Notes to the financial statements|24|



Collections Trust 



## **Reference and administrative details about the charity, its board and its advisers** 

|**Charity name**|Collections Trust|
|---|---|
|**Charity number**|0273984|
|**Company number**|01300565|
|**Registered office**|Rutland House|
||23-25 Friar Lane|
||Leicester LE1 5QQ|
|**Trustees and directors**|Ms L Pye (Chair)|
||Dr A Bhaugeerutty (Deputy Chair)|
||Mr R Bending|
||Ms N Golding|
||Ms K Hunter|
||Ms S Johnson|
||Ms A Karia|
||Mr J Kirby|
||Mr N Klee|
||Ms R Sloss|
||Ms C St Clair Inglis|
||Mr P Stevenson|
||Ms L Turner|
||Dr C Wingfield|
|**Company Secretary and Chief Executive**|Mr D Gelsthorpe (appointed as Chief Executive|
||22 April 2025; appointed as Company Secretary|
||23 May 2025)|
||Mr K Gosling (resigned as Chief Executive 30|
||May 2025; resigned as Company Secretary 23|
||May 2025)|
|**Bankers**|CAF Bank Ltd|
||25 Kings Hill Avenue|
||West Malling|
||ME19 4JQ|
|**Auditor**|Buzzacott Audit LLP|
||130 Wood Street|
||London|
||EC2V 6DL|



Collections Trust **1** 



31 March 2025 

The trustees, who are also directors and members under company law, present their report and financial statements for the year ended 31 March 2025. The trustees confirm that the financial statements comply with current statutory requirements, the articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: applicable to charities preparing their financial statements in accordance with the Charities SORP (FRS 102). 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

Collections Trust is a charitable company limited by guarantee (01300565), originally incorporated (as the Museum Documentation Association) on 28 February 1977. It is registered as a charity with the Charity Commission (0273984). 

Updated articles of association were adopted by a special resolution of the members at an extraordinary general meeting on 25 July 2023. 

## **Governance** 

Collections Trust is governed by its board of trustees, who as noted above are also directors and members of the company. 

Trustees 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 statements. 

The trustees who served throughout the year ended 31 March 2025 and up to the date these 

financial statements were approved, except where indicated, were: 

|**Trustees**|**Appointed / Resigned**|
|---|---|
|Ms L Pye||
|Mr R Avann|(resigned 9 December 2024)|
|Mr R Bending|(appointed 24 July 2024)|
|Dr A Bhaugeerutty||
|Ms K Childs|(resigned 9 December 2024)|
|Ms N Golding||
|Ms K Hunter|(appointed 10 March 2025)|
|Ms S Johnson||
|Ms A Karia||
|Mr J Kirby|(appointed 10 March 2025)|
|Mr N Klee|(appointed 10 October 2024)|
|Ms S Longmuir|(resigned 13 May 2024)|
|Ms R Sloss||
|Ms C St Clair Inglis||
|Mr P Stevenson||
|Ms L Turner||
|Dr C Wingfield|(appointed 10 March 2025)|



The board meets quarterly, with interim meetings as required to deal with specific matters such as the sign-off of major grant applications. 

In addition, an audit committee comprising a sub-group of trustees meets twice a year to - group (the commitments committee) reviews the budget, contractual terms and risks of any proposed project with a value over £10,000, as and when required. 

Collections Trust **2** 



31 March 2025 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** (continued) 

## **Key management personnel** 

The key management personnel of the charity are the unremunerated trustees and the Chief Executive, the latter a paid employee. Remuneration of the Chief Executive is set by the board and, if deemed appropriate, increased annually by a percentage in line with all other employees. 

The Chief Executive is responsible for the overall management of the organisation, and acts as company secretary. He works closely with the Deputy Director, who leads the grantOrganisations, and the Finance Manager, who takes the lead in day-to-day financial management. All three prepare reports for the board and audit committee, including regular updates to the risk register, and attend their meetings. 

## **OBJECTIVES** 

## **Charitable purpose** 

Our charitable object, set out in our memorandum and articles of association, is to: 

_Promote the education of the public by the development of museums and similar organisations by all appropriate methods._ 

Our 

## **Mission and aims** 

The mission of Collections Trust is to: 

_Help museums work with the information that connects collections and audiences._ 

This mission is fleshed out in our five strategic aims: 

   - Continue to build Collections Trust into a dynamic, ambitious sector support organisation, valued around the world as a leader in collections management standards and advice. 

- In partnership with other sector bodies, help UK museums meet the Accreditation standards for managing collections. 

- Help UK museums make their collections information inclusive and relevant, enriching it with knowledge drawn from a wide range of people. 

- Influence the development of a sustainable, futureproof infrastructure for sharing and ecosystem. 

- Use that infrastructure to develop tools and services that support smarter working with collections across the sector. 

Collections Trust **3** 



31 March 2025 

## **PUBLIC BENEFIT** 

The trustees reaffirm , having given due regard to the . This benefit is indirect: we ourselves do not work directly with the general public, but we help museums that do. 

deliver two kinds of public benefit. Collections information is essential for the accountability and smooth administration of museums behind the scenes, but it is also the raw material for all audience-facing use of museum objects. Every exhibition, every online resource, every learning session museums deliver depends on existing information being available to those working on that activity, and new information arising from it being recorded for future use. 

## **ACTIVITIES AND ACHIEVEMENTS** 

The past year 2024-25 saw several long-planned activities reach fruition, notably the Museum Data Service, which not only launched successfully in its own right, but allowed us to progress some key areas of our other work. 

For as long as museums have worked together as a professional community, they have envisaged a day in which they could have a complete overview of all the objects in their shared collections. Despite several false dawns, this goal has long eluded the secto ~~r~~ thwarted by funding limitations, the complexities of leadership and ownership, and the technical challenge of designing an open, stable, usable, secure system. 

In September 2024, the dream became a game-changing reality, thanks to start-up funding from Bloomberg Philanthropies and operational support from the Arts and Humanities Research Council (AHRC). In its first six months of live operation, the Museum Data Service (MDS) doubled the number of object records available at **museumdata.uk** from three million to six million. 

This expansion signals the start of a fundamental shift in how UK museums approach collections data. MDS now serves as a centralised, open-access platform that breaks down the historical silos that have long prevented effective collaboration between institutions. The service's ten-year ambition to connect an estimated 80 million object records from over 1,750 museums across the UK is no longer a distant aspiration but an achievable goal with clear momentum. 

_The Museum Data Service (MDS) is an ambitious project aiming to bring object records he combined forces of Collections Trust, Art UK and University of Leicester behind it, I knew it was in_ 

_and opens up many possibilities for museum professionals to work collaboratively in the future._ 

Michael Hardy, Museums Journal review of MDS, January 2025 

Established as a charitable company in June 2025, MDS now has its own board. As one of the three founding members, Collections Trust has two nominated trustees on that board, and throughout 2024-25 our Chief Executive also acted as the MDS Head of Service for 50% of his time. (That input, along with that of the Museum Data Manager role created in June 2025 and hosted by Collections Trust, was paid for by the AHRC grant support for MDS, via a collaboration agreement with the grant-holder, the University of Leicester.) 

Collections Trust **4** 



31 March 2025 

## **ACTIVITIES AND ACHIEVEMENTS** (continued) 

## **Museum Data Service** (continued) 

With a hugely significant renewal of the AHRC grant support confirmed until March 2028, the University of Leicester will take on more operational responsibility for the service. While the Museum Data Manager role will continue to be based with us, allowing MDS to leverage our day-to-day contact with museums around the country, a new Head of Service will be appointed directly by the university. Having spent much time and energy over recent years helping to get MDS to this point, Collections Trust can now focus on the strategic potential the new service to further our own mission and those of the museums we work with. 

The year 2024-25 was our second as an Investment Principle Support Organisation (IPSO) within the current Arts Council England (ACE) National Portfolio. 


Evaluation of CT activities 2024-25, DC Research 

with the ACE-funded Museum Development (MD) network to support the Museum Accreditation Scheme across England. Our **Spectrum** standard for museum collections management is embedded the Museum Accreditation Standard and we help museums of all kinds put guidance into practice through our outreach programme and our online resources. 

Last year was our most successful yet in terms of **outreach** . Our highly-praised team directly engaged, through training or one-to-one support, staff and volunteers in **more than a quarter more than a fifth** of those working towards Accreditation. Feedback remained consistently high, with participants rating skills gained at 4.4/5 in post-session evaluations. Longitudinal data showed equally strong results for skills applied within a year (4.4/5), with feedback attributing enhanced policy development, increased confidence, and successful Accreditation achievements to our support. 

_Enabled me to write our documentation policies and plans for our accreditation return - we were awarded accreditation for the first time in October 2023._ 

Example of longitudinal feedback gathered on learning applied within a year of past training 

Last year, we also moved our well-established **Banish the backlog** and **Rethinking cataloguing** programmes up a gear, piloting some practical tools to supplement our advice and guidance: 

- for inventory-level information: important for accountability, yet a recurring problem in the Accreditation returns of many museums over the decades. While it is often not so hard to compile a quick list of the objects found in the stores, reconciling that list with old documentation can be a chore. To speed that part of the process up, we have digitised the accession registers of several museums and are experimenting with the most effective way of transcribing those records and using them to speed up stalled inventory projects. 

Collections Trust **5** 



## 31 March 2025 

## **ACTIVITIES AND ACHIEVEMENTS** (continued) 

**Our sector support work** (continued) 

- Museums use collections all the time for exhibitions, research and many other collaborative projects. But the resulting knowledge is often lost or forgotten almost as soon as the project ends. Spectrum recommends adding 'knowledge gained and content created while using objects ... to catalogue records', but that has long been easier said than done. With the Museum Data Service up and running, last year we developed an online tool that allows users to create and save texts that are linked to relevant MDS object records, and will continue to work on this in 2025-26. 














Our much-appreciated online resources continued to grow, especially the bitesize videos that have proved a popular way of presenting an increasing range of topics. 

_W Website resources are excellent I use the Collections Trust resources_ 

_._ 

Evaluation of CT activities 2024-25, DC Research 

Museums Galleries 

Scotland, Welsh Government, and Northern Ireland Museums Council continues, with the commissioning of further Spectrum training sessions to help the museums they support meet the required standards. Ten sessions were delivered during 2024-25, to just under 100 participants. 

## **Preparing for the next phase of Collections Trust** 

In 2027, Collections Trust will reach its fiftieth anniversary, having been founded (as the Museum Documentation Association) in 1977. Over the decades, the organisation has kept its ear to the ground, listening to the staff and volunteers who work with collections of all types and sizes, understanding their needs, and responding with pragmatic standards, guidance, and action. 

_._ 

Evaluation of CT activities 2024-25, DC Research 

Collections Trust **6** 



31 March 2025 

## **ACTIVITIES AND ACHIEVEMENTS** (continued) 

## **Preparing for the next phase of Collections Trust** (continued) 

The relevance of our work to the museum sector is reflected by the fact that Spectrum is used far beyond the UK. A German version recently became the ninth Spectrum translation published on our website, a rich corpus of parallel texts that can only help collaboration between museums around the world. As in previous years, we are also grateful to our Spectrum Partners: software developers who license Spectrum for commercial use in many of the most widely-used collections management systems, thus helping to put the standard into practice far and wide. 

Much of the year was spent planning the future direction of the organisation, not least prompted by the retirement of Chief Executive Kevin Gosling in May 2025, after ten years at the helm. His successor, David Gelsthorpe, had a smooth, six-week handover and will continue to develop the strategic planning begun by the board and team last summer. This will be helped by a new, comprehensive evaluation framework that will draw together various strands of evidence to assess the impact of current work and guide future activity. 

## **FINANCIAL REVIEW** 

During the year, Collections Trust earned income, excluding bank interest, of £528,837 (2024: - £449,300). Of this, £386,202 (2024: £255,827) was restricted funding with £234,232 (2024: £234,232) received from the Arts Council England. 

Unrestricted income from charitable activities of £142,635 (2024: £193,473) was made up from: retail sales of publications and forms £30,216 (2024: £30,903); Spectrum partnership membership fees £66,675 (2024: £64,043); consultancy projects £32,008 (2024: £86,193); conference ticket sales £7,626 (2024: £5,949) and training income £6,110 (2024: £6,385). 

Collections Trust spent £253,379 (2024: £214,084) directly on Arts Council England projects, including staff time. £226,892 (2024: £164,381) was spent on other charitable activities (Other grant funding, retail, Spectrum partnerships, and consultancy). 

The year finished with an overall surplus of £54,821 (2024: £47,685). 2025 surplus included no charge in respect of the pension scheme (2024: £26,000).  Total funds carried forward were £253,511 (2024: £198,690) of which £236,931 (2024: £158,543) was unrestricted, £16,580 designated (2024: £20,000) and £nil (2024:  £20,147) restricted, giving free reserves (unrestricted funds excluding fixed assets, pension liability, and designated funds) of £233,049 (2024: £155,606). 

The balance sheet shows total funds to be in surplus by £253,511 (2024:  £198,690). 

Collections Trust **7** 



## 31 March 2025 

## **FINANCIAL REVIEW** (continued) 

## **Reserves policy and position** 

The aims, and the risk register, establish that alongside the need for a general reserves fund, there are also both risks and opportunities that require the designation of funds.  The reserves policy therefore sets out the following targets and designations: 

1. General fund 

Three to six months operational expenditure in free reserves to accommodate variations in income levels, mitigate against any cashflow shortfalls, and meet any unbudgeted expenditure such as parental or sick pay.  This figure equates to between £120,000 and £240,000. At 31 March 2025 the organisation held £233,049 (2024: £155,606) in free reserves (unrestricted, undesignated reserves excluding fixed assets and pensions).  This equates to approximately five to six months operating costs, falling within the target range of the policy. 

2. Strategic fund 

A designated fund of £16,580 (2024: £17,000) to allow for the opportunity and flexibility to invest in strategic initiatives and opportunities. 

3. Defined benefit pension fund 

   - A designated fund of £nil (2024: £3,000) to cover potential legal and administrative costs of entering any deferred debt arrangement (DDA) with the pension fund if required. The last active member of the scheme retired on 31 May 2024. This fund was used for the final actuarial valuation and the remaining balance was transferred to the Strategic Fund. 

The organisation aims to provide for these reserves through unrestricted surplus funds carried forward at the end of each financial year. This money is invested in bank savings accounts on the most advantageous overall terms, in respect of interest and charges and access, and is regularly reviewed. 

## **Fundraising** 

The charity does not raise or actively seek to raise funds from the public.  The trustees therefore do not consider that they are obliged to make any further disclosures in relation to this area. 

## **Going concern** 

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing the financial statements.  The trustees have made this assessment in respect to a period of at least one year from the date of approval of the annual report and financial statements, and in light of the implications of the current economic downturn, with consideration given to budget forecasts, cashflow, confirmed and pipeline projects. 

Further narrative is provided within the assessment of going concern contained within the principal accounting policies at page 20.  Based on the information considered, the trustees have 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 concern. 

Collections Trust **8** 



31 March 2025 

## **PRINCIPAL RISKS AND UNCERTAINTIES** 

The trustees have considered the strategic risks facing Collections Trust and the measures needed to mitigate them.  They consider the key risks and mitigation strategies to be: 

|**Risk**|**Loss of key member of staff**<br>Employee turnover is inevitable, and in a small organisation a lot of<br>institutional knowledge rests with a few key individuals.|
|---|---|
|**Tolerance**|Medium<br> the planned retirement of the Chief Exec has happened and was<br>mitigated by a five-week handover period with the new Chief Exec<br>this<br>has taken time but was not unduly disruptive.|
|**Mitigation**|The management team works closely together. Recording of handover<br>procedures and documentation of processes proved effective. Reserves<br>provided the financial resources to ensure stability.|




**----- Start of picture text -----**<br>
Risk  Cyber security<br>CT is reliant on IT and the internet for all its operations. A cyber-attack<br>could compromise its ability to deliver its services and generate income.  A<br>data breach could risk litigation and damage to our reputation.<br>Tolerance Medium to low  whilst a cyber-attack is unlikely to threaten the existence<br>of Collections Trust, it could take considerable time and resources to<br>resolve an attack and may lead to costly legal fees and fines.<br>Mitigation A password management system is in place to ensure all passwords are<br>complex, with multi-factor authentication also required for key systems.<br>The level of external IT support has been increased, with support for Cyber<br>Essentials accreditation including mandatory online training on topics such<br>as phishing and password protection.<br>Risk  Loss of strategic direction and focus during MDS start up<br>As the Museum Data Service begins to thrive, with Collections Trust as<br>one of three founding organisations, there is potential for confusion<br>amongst stakeholders regarding our brand and purpose, and questions<br>around capacity to cope with such change.<br>Tolerance Low  the organisation has been working towards this for many years and<br>needs to maximise the current opportunity to deliver on its strategic aims.<br>Mitigation Our Investment Principles action plan sets out how the trust will manage<br>the transition, including continued board development and succession<br>planning for board and key staff. The MDS will be constituted as separate<br>charity in the Summer of 2025 with a dedicated Chief Executive.<br>**----- End of picture text -----**<br>


Collections Trust **9** 



31 March 2025 

## **STATEMENT OF REPONSIBILITIES OF THE TRUSTEES** 

The trustees (who are also directors of the charitable company for the purposes of company in accordance with applicable law and accounting standards (United Kingdom Generally Accepted Accounting Practice). 

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to: 

- Select suitable accounting policies and then apply them consistently; 

- Observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102); 

- Make judgements and estimates that are reasonable and prudent; 

- State 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 to presume that the charity will continue in operation. 

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at 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 responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

In so far as the trustees are aware: 

- unaware; and 

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

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006. 

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

Collections Trust **10** 



31 March 2025 

## **STATEMENT OF REPONSIBILITIES OF THE TRUSTEES** (continued) 

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up.  The trustees are members of the charity, but this entitles them only to voting rights. The trustees have no beneficial interest in the charity. 

by: 



L Pye Chair Date: 

Collections Trust **11** 



31 March 2025 

## **Collections Trust** 

## **Opinion** 

We have the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom accounting standards, including Financial in the UK and Accounting Practice). 

In our opinion, the financial statements: 

   - 2025 and of its income and expenditure for the year then ended; 

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

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

## **Basis for opinion** 

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

## **Conclusions relating to going concern** 

In concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt period of at least twelve months from when the financial statements are authorised for issue. 

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

## **Other information** 

The other information comprises the information included in the annual report and financial trustees are responsible for the other information contained within the annual report and financial statements. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

Collections Trust **12** 



31 March 2025 

## **Other information** (continued) 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

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

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

- purposes of company law for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- , 

- 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 its environment obtained in the course of the audit, we have not identified material matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: 

- adequate accounting records have not been kept, 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 

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

- the trustees were not entitled to prepare the financial statements in accordance with the 

## **Responsibilities of trustees** 

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

Collections Trust **13** 



31 March 2025 

## **Responsibilities of trustees** (continued) 

In preparing the financial statements, the trustees are responsible for assessing the matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 

## **statements** 

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: 

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

   - we identified the laws and regulations applicable to the charitable 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 compliance with the laws and regulations identified above through making enquiries of management, inspecting legal correspondence and reviewing trustee meeting minutes. 

Collections Trust **14** 



31 March 2025 

(continued) 

misstatement, including obtaining an understanding of how fraud might occur, by: 

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

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

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

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

- reviewed journal entries to identify unusual transactions; 

- tested the authorisation of expenditure as part of our substantive testing thereon; 

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

- used data analytics to identify any significant or unusual transactions and identify the rationale for them. 

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

- agreeing financial statement disclosures to underlying supporting documentation; 

- reading the minutes of trustee meetings; and 

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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. 

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

website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our 

Collections Trust **15** 



31 March 2025 

## **Use of our report** 

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


Gumayel Miah (Senior Statutory Auditor) For and on behalf of Buzzacott Audit LLP, Statutory Auditor 130 Wood Street London EC2V 6DL 

Date: 23 September 2025 

Collections Trust **16** 



**Statement of financial activities (incorporating an income and expenditure account)** 31 March 2025 

|Notes|**Un-**<br>**restricted**<br>**funds**<br>**£**|**Restricted**<br>**funds**<br>**£**|**2025**<br>**Total**<br>**funds**<br>**£**|2024<br>Total<br>funds<br>£|
|---|---|---|---|---|
|**Income from:**<br>Charitable activities<br>2<br>Investments<br>3<br>**Total income**<br>**Expenditure on:**<br>Charitable activities:<br>. Projects and programmes<br>. Other charitable activities<br>**Total expenditure**<br>4<br>**Net income for the year**<br>**Other recognised (losses)/ gains**<br>Actuarial (losses) gains in respect<br>to defined benefit pension scheme<br>19<br>Transfer between funds<br>13<br>**Net movement in funds**<br>Total funds brought forward<br>**Total funds carried forward**|**142,635**<br>**6,255**|**386,202**|**528,837**<br>**6,255**|449,300<br>2,850|
||**148,890**|**386,202**|**535,092**|452,150|
||**49,864**|**430,407**|**430,407**<br>**49,864**|235,680<br>142,785|
||**49,864**|**430,407**|**480,271**|378,465|
||**99,026**<br>**(24,058)**|**(44,205)**<br>**24,058**|**54,821**|73,685<br>(26,000)|
||**74,968**<br>**178,543**|**(20,147)**<br>**20,147**|**54,821**<br>**198,690**|47,685<br>151,005|
||**253,511**||**253,511**|198,690|



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 form part of these financial statements. 

A full comparative statement of financial activities is included at Note 1. 

Collections Trust **17** 



## **Balance sheet** 31 March 2025 

|Notes<br>**Fixed assets**<br>Tangible assets<br>8<br>**Current assets**<br>Stock<br>9<br>Debtors<br>10<br>Cash at bank and in hand<br>**Liabilities:**<br>Creditors: amounts falling due<br>within one year<br>11<br>**Net current assets**<br>**Total assets less current**<br>**liabilities**<br>Pension liability<br>19<br>**Total net assets**<br>**The funds of the charity:**<br>Restricted funds<br>13<br>Unrestricted funds:<br>. Designated funds<br>. General funds<br>13<br>Total unrestricted funds<br>13<br>**Total funds**|**2025**<br>**£**|**2025**<br>**£**|2024<br>£|2024<br>£|
|---|---|---|---|---|
||**1,708**<br>**106,973**<br>**223,024**|**3,882**<br>**249,629**|1,569<br>5,274<br>228,209|2,937<br>195,753|
||**331,705**<br>**(82,076)**||235,052<br>(39,299)||
||**16,580**<br>**236,931**||20,147<br>20,000<br>158,543||
|||**253,511**||198,690|
|||**253,511**||198,690|
|||**253,511**||198,690|
||||||
|||**253,511**||198,690|



The financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006. 

Approved by the trustees and signed on their behalf by: 



L Pye Chair Date: 

Company registration number: 01300565 (England and Wales) 

The attached notes form part of the financial statements. 

Collections Trust **18** 



## **Statement of cash flows** 31 March 2025 

|Note|**2025**<br>**£**|**2025**<br>**£**|2024<br>£|2024<br>£|
|---|---|---|---|---|
|**Cash flows from operating**<br>**activities:**<br>Net cash (used in)/provided by<br>operating activities<br>14<br>**Cash flows from investing**<br>**activities:**<br>Interest received<br>Purchase of fixed assets<br>**Cash provided by investing**<br>**activities**<br>**Change in cash and cash**<br>**equivalents in the year**<br>Cash and cash equivalents at the<br>beginning of the year<br>**Cash and cash equivalents at the**<br>**end of theyear**<br>15|**(9,024)**<br>**6,255**<br>**(2,416)**|**3,839**|52,977<br>2,850<br>(1,193)|1,657|
||||||
|||**(5,185)**<br>**228,209**||54,634<br>173,575|
|||**223,024**||228,209|



Collections Trust **19** 



**Principal accounting policies** 31 March 2025 

## **Basis of preparation** 

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP FRS 102) and the Companies Act 2006. 

The charitable company meets the definition of a public benefit entity under FRS 102. The financial statements have been prepared under the historical cost convention with items initially recognised at cost or transaction value unless otherwise stated in the relevant accounting policy note(s). 

The financial statements are presented in sterling and are rounded to the nearest pound. 

## **Going concern** 

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of at least one year from the date of approval of these accounts and have 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 concern. 

Collections Trust (CT) are part of the 2023 to 2026 National Portfolio which means we have confirmation that our ACE grant funding will continue (with an uplift of 1.6%) at £238,003 for the year through to March 2026. ACE have indicated we are likely to secure an extension to our existing funding agreement to March 2027.  Beyond April 2025, it is anticipated that further Arts and Humanities Reseach Council (AHRC) support, via the University of Leicester, will continue to cover the cost of CT staff time spent working on MDS, on a fullcost-recovery basis. 

In the current financial year, 2024-25, income from Spectrum Partnerships, retail, training and the conference all look healthy, and we are forecast to hit the upper end of our reserves target. 

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

No key judgements and estimates were required in the preparation of the accounts this year due to the cessation of the defined benefit pension scheme on 31 May 2024.  The comparative figures for the year ended 31 March 2024 include the estimate of the defined benefit pension liability existing at 31 March 2024 which is detailed in note 19.  The estimated liability was determined with the support of qualified actuaries.  For 2023/24, the actuary estimated that the scheme was, at 31 March 2024, in a net asset position. 

The asset has not been recognised on the balance sheet on the basis of the trustees' judgement that at the point of approving the financial statements, there is uncertainty as to whether the asset may be realised in terms of future contributions or refunds from the scheme. 

Post year end, the finalised position confirmed an exit which will not lead to any additional liability (or asset) for the charity. 

Collections Trust **20** 



**Principal accounting policies** 31 March 2025 

## **Income** 

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably. 

recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, 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 service is deferred until the criteria for income recognition are met. 

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the customer, it is probable that the income will be received, and the revenue and associated costs can be reliably measured. 

Revenue from the provision of services is recognised when it is probable that Collections Trust will receive the economic benefit and the revenue and associated costs can be reliably measured.  For continuing services, revenue is recognised when the stage of completion can be reliably measured. 

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. 

## **Fund accounting** 

Unrestricted funds are available to spend on activities that further any of the purposes of charity. 

Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. 

Restricted funds are donations which the donor has specified are to be solely used for 

## **Expenditure and irrecoverable VAT** 

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can 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 between activities is as follows: 

- 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 and is calculated using the ratio that business income bears to total income. 

Collections Trust **21** 



**Principal accounting policies** 31 March 2025 

## **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 governance costs which support the charitable activities. These costs have been allocated between the various charitable activities. They are allocated based on staff time. 

## **Tangible fixed assets** 

Items of equipment are capitalised where the assets are expected to have a useful life of more than four years. The capitalisation threshold is £1,000. Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows: 

Computer equipment 25% per annum based on cost 

## **Stock** 

Stock is included at the lower of cost or net realisable value. 

## **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 maturity of three months or less. 

## **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 to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at 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 at amortised cost using the effective interest method. 

## **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 return on a high-quality corporate bond of equivalent term and currency to the liability. Any 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. 

Collections Trust **22** 



## **Principal accounting policies** 31 March 2025 

**Pensions** (continued) 

The last remaining member of the scheme retired on 31 May 2024 and the charity exited the scheme as of this date. The charity has received the final actuarial report which confirms there is a £nil asset/liability closing position. 

The charity also offers an auto-enrolment 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 to the relevant scheme. 

Collections Trust **23** 



## **Notes to the financial statements** 31 March 2025 

## **1 Detailed comparatives for the statement of financial activities** 

|**2**|_Notes_|**_Un-_**<br>**_restricted_**<br>**_funds_**<br>**_£_**|**_Restricted_**<br>**_funds_**<br>**_£_**|**_2024_**<br>**_Total_**<br>**_funds_**<br>**_£_**|
|---|---|---|---|---|
||**_Income from:_**<br>_Charitable activities_<br>_2_<br>_Investments_<br>_3_<br>**_Total income_**<br>**_Expenditure on:_**<br>_Charitable activities:_<br>_. Projects and programmes_<br>_. Other charitable activities_<br>**_Total expenditure_**<br>_4_<br>**_Net income for the year_**<br>**_Other recognised (losses)/ gains_**<br>_Actuarial (losses) gains in respect to defined_<br>_benefit pension scheme_<br>_19_<br>**_Net movement in funds_**<br>_Total funds brought forward_<br>**_Total funds carried forward_**|_193,473_<br>_2,850_|_255,827_|_449,300_<br>_2,850_|
|||_196,323_|_255,827_|_452,150_|
|||_142,785_|_235,680_|_235,680_<br>_142,785_|
|||_142,785_|_235,680_|_378,465_|
|||_53,538_<br>_(26,000)_|_20,147_|_73,685_<br>_(26,000)_|
|||_27,538_<br>_151,005_|_20,147_|_47,685_<br>_151,005_|
|||_178,543_|_20,147_|_198,690_|
||**Income from charitable activities**||||




**----- Start of picture text -----**<br>
Un- 2025 Un- 2024<br>restricted Restricted Total restricted  Restricted Total<br>funds funds funds  funds funds funds<br>£ £ £ £ £ £<br>Projects and programmes<br>Arts Council England  234,232 234,232 234,232 234,232<br>IDAH funded Museum Data<br>Service collaboration  - 151,970 151,970 -<br>Welsh Government  - - - 21,595 21,595<br>Other charitable activities<br>Retail and publishing  30,216 30,216 30,903 30,903<br>Spectrum partnership<br>licencing scheme  66,675 66,675 64,043 64,043<br>Consultancy  32,008 32,008 86,193 86,193<br>Training  6,110 6,110 6,385 6,385<br>Conference  7,626 7,626 5,949 5,949<br>Other income<br>Total income from<br>charitable activities  142,635 386,202 528,837 193,473 255,827 449,300<br>**----- End of picture text -----**<br>


Collections Trust **24** 



## **Notes to the financial statements** 31 March 2025 

## **3 Income from investments** 

|Bank interest|**Unrestricted**<br>**funds**<br>**£**|**Restricted**<br>**funds**<br>**£**|**2025**<br>**Total**<br>**funds**<br>**£**|Unrestricted<br>funds<br>£|Restricted<br>funds<br>£|2024<br>Total<br>funds<br>£|
|---|---|---|---|---|---|---|
||**6,255**||**6,255**|2,850||2,850|



## **4 Analysis of expenditure** 


**----- Start of picture text -----**<br>
Restricted  Unrestricted<br>Other<br>grant  Consult- Con- CT  2025<br>ACE funding Retail Spectrum ancy Training ference Award Total<br>£ £ £ £ £ £ £ £ £<br>Expenditure<br>Direct costs  36,805 67,652 11,867 1,448 108 117,880<br>Direct staff costs  155,743 76,608 1,329 1,313 20,988 2,349 258,330<br>192,548 144,260 13,196 2,761 21,096 2,349 376,210<br>Overheads<br>Administration overheads 34,159 13,433 256 191 3,425 417 51,881<br>Staff overheads  26,672 19,335 368 275 4,930 600 52,180<br>60,831 32,768 624 466 8,355 1,017 104,061<br>Total expenditure 2025 253,379 177,028 13,820 3,227 29,451 3,366 480,271<br>Restricted  Unrestricted<br>Other<br>grant  Consult- Con- CT  2024<br>ACE funding Retail Spectrum ancy Training ference Award Total<br>£ £ £ £ £ £ £ £ £<br>Expenditure<br>Direct costs  36,769 14,520 12,666 345 (5) 85 1,000 65,380<br>Direct staff costs  114,258 6,164 9,257 1,101 74,306 2,452 207,538<br>151,027 20,684 21,923 1,446 74,301 2,537 1,000 272,918<br>Overheads<br>Administration overheads 25,572 370 1,774 158 14,489 442 42,805<br>Staff overheads  37,485 542 2,599 230 21,238 648 62,742<br>63,057 912 4,373 388 35,727 1,090 105,547<br>Total expenditure 2024  214,084 21,596 26,296 1,834 110,028 3,6277 1,000 378,465<br>Overheads are allocated based on staff time per activity.<br>5 Net income for the year<br>This is stated after charging:<br>2025  2024<br>£  £<br>Depreciation  1,471  1,172<br>. Audit fees  12,980  12,067<br>**----- End of picture text -----**<br>


## **5 Net income for the year** 

Collections Trust **25** 



## **Notes to the financial statements** 31 March 2025 

## **6 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel** 

Staff costs were as follows: 


**----- Start of picture text -----**<br>
2025  2024<br>£  £<br>Salaries and wages  281,228  254,401<br>Social security costs  23,672  19,513<br>Pension costs  5,609  14,514<br>Temporary staff costs  6,050<br>310,510  294,478<br>FRS 102 defined benefit pension adjustment  (12,000)<br>310,510  282,478<br>The following number of employees received employee benefits (excluding employer<br>pension contributions) during the year between:<br>2025  2024<br>£  £<br>£70,000 £79,999  1  1<br>**----- End of picture text -----**<br>


The following number of employees received employee benefits (excluding employer pension contributions) during the year between: 

The total employee benefits of the key management personnel were £81,079 (2024: £80,755). 

Out of pocket travel expenses incurred by trustees in connection with their duties and reimbursed to 1 trustee by the charity during the year amounted to  £222 (2024: £400). The charity trustees were not paid and did not receive any other benefits from employment with the charity in the year (2024: £nil). No charity trustee received payment for professional or other services supplied to the charity (2024: £nil). 

## _**Staff numbers**_ 

The average number of employees (head count based on number of staff employed) during the year was as follows: 

||**2025**<br>**No.**|2024<br>No.|
|---|---|---|
|ACE<br>Retail<br>Consultancy<br>Training<br>Other grant funding<br>Support|**3.6**<br>**0.0**<br>**0.4**<br>**0.0**<br>**1.4**<br>**1.0**|2.4<br>0.2<br>1.4<br>0.0<br>0.0<br>1.2|
||**6.4**|5.2|



## **7 Taxation** 

Collections Trust is a registered charity and therefore not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities. 

Collections Trust **26** 



## **Notes to the financial statements** 31 March 2025 

## **8 Tangible fixed assets** 

||Computer<br>equipment<br>£|**2025**<br>**Total**<br>**£**|
|---|---|---|
|**Cost**<br>At 1 April 2024<br>Additions<br>**At 31 March 2025**<br>**Depreciation**<br>At 1 April 2024<br>Charge for the year<br>**At 31 March 2025**<br>**Net book values**<br>At 1 April 2024<br>**At 31 March 2025**|4,784<br>2,416|**4,784**<br>**2,416**|
||7,200<br>1,847<br>1,471|**7,200**<br>**1,847**<br>**1,471**|
||3,318|**3,318**|
||2,937|**2,937**|
||3,882|**3,882**|



All of the above assets are used for charitable purposes. 


**----- Start of picture text -----**<br>
9 Stock<br>2025  2024<br>£  £<br>Forms and catalogue cards  1,708  1,569<br>1,708  1,569<br>10 Debtors<br>2025  2024<br>£  £<br>Amounts falling due in less than one year:<br>Trade debtors  95,616  660<br>Prepayments  11,357  4,614<br>106,973  5,274<br>11 Creditors: amounts falling due within one year<br>2025  2024<br>£  £<br>Trade creditors  51,206  3,852<br>Pension contributions  1,063<br>Accruals  26,914  28,417<br>VAT payable  3,956  5,967<br>82,076  39,299<br>**----- End of picture text -----**<br>


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

Collections Trust **27** 



## **Notes to the financial statements** 31 March 2025 

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

||**Unrestricted**<br>**£**|**Restricted**<br>**£**|**2025**<br>**Total**<br>**funds**<br>**£**|Unrestricted<br>£|Restricted<br>£|2024<br>Total<br>funds<br>£|
|---|---|---|---|---|---|---|
|Tangible fixed assets<br>Net current assets<br>**Net assets at the end of**<br>**the year**|**3,882**<br>**249,629**<br>**253,511**||**3,882**<br>**249,629**<br>**253,511**|2,937<br>175,606<br>178,543|20,147<br>20,147|2,937<br>195,753<br>198,690|



## **13 Movement in funds** 


**----- Start of picture text -----**<br>
At 1  Gains /  At 31<br>April  (losses) and  March<br>2024  Income Expenditure transfers 2025<br>£  £ £ £ £<br>Restricted funds<br>Arts Council England  20,147  234,232  (254,379)<br>IDAH funded Museum Data<br>Service collaboration  151,970  (176,028) 24,058<br>Total restricted funds  20,147  386,202  (430,407) 24,058<br>Unrestricted funds<br>Designated funds<br>.  Strategic development  17,000  (945) 525  16,580<br>.  Defined benefit pension<br>   scheme management  3,000  (2,475) (525)<br>20,000  (3,420) 16,580<br>General funds  158,543  148,890  (46,444) (24,058) 236,931<br>Total unrestricted funds  178,543  148,890  (49,864) (24,058) 253,511<br>Total funds  198,690  535,092 (480,271) 253,511<br>At 1  Gains /  At 31<br>April  (losses) and  March<br>2023  Income Expenditure transfers 2024<br>£  £ £ £ £<br>Restricted funds<br>Arts Council England  234,232  (214,085) 20,147<br>Welsh Government  21,595  (21,595)<br>Total restricted funds  255,827  (235,680) 20,147<br>Unrestricted funds<br>Designated funds<br>.  Strategic development  10,000  7,000  17,000<br>.  Defined benefit pension<br>   scheme management  10,000  (7,000) 3,000<br>20,000  20,000<br>General funds  131,005  196,323  (142,785) (26,000) 158,543<br>Total unrestricted funds  151,005  196,323  (142,785) (26,000) 178,543<br>Total funds  151,005  452,150  (378,465) (26,000) 198,690<br>**----- End of picture text -----**<br>


Collections Trust **28** 



## **Notes to the financial statements** 31 March 2025 

## **13 Movement in funds** (continued) 

Restricted funds represent grants for specific purposes, being the ACE grant for delivery of the ACE activity plan 2023-26 and a grant from the Arts and Humanities Research Council (AHRC), Initiative for Digital Arts and Humanities (iDAH) fund via the University of Leicester for the Museum Data Service collaboration work. 

Designated funds comprise £16,580 to allow for strategic development opportunities related This work is expected to be completed by the end of December 2025. 

Transfers between restricted and unrestricted funds in 2025 relate to a £24,058 deficit on the iDAH funded MDS collaboration project which is transferred from the restricted fund into general reserves. This arose from overhead costs incurred not covered by the funding agreement. 

There was also a transfer between the Defined benefit pension scheme management designated fund and the Strategic development designated fund of £525. The surplus on the pension scheme fund after all costs associated with cessation had been incurred was transferred to the Strategic development fund. 

## **14 Reconciliation of net income to net cash flow from operating activities** 


**----- Start of picture text -----**<br>
2025  2024<br>£  £<br>Net income for the reporting period<br>(as per the statement of financial activities) 54,821  73,685<br>Depreciation  1,471  1,172<br>Interest  (6,255) (2,850)<br>(Increase) in stock  (139) (1,392)<br>(Increase)/decrease in debtors  (101,699) 3,243<br>Increase in creditors  42,777  5,119<br>Defined benefit pension scheme service and finance cost adjustments (26,000)<br>Net cash (used in) / provided by operating activities                           (9,024) 52,977<br>**----- End of picture text -----**<br>


## **15 Analysis of cash and cash equivalents** 

|**Analysis of cash and cash equivalents**||||
|---|---|---|---|
||At 1<br>April<br>2024<br>£|Cash flows<br>£|**At 31**<br>**March**<br>**2025**<br>**£**|
|Cash at bank and in hand|228,209<br>228,209<br>_At 1_<br>_April_<br>_2023_<br>_£_|(5,185)<br>(5,185)<br>_Cash flows_<br>_£_|**223,024**<br>**223,024**<br>_At 31_<br>_March_<br>_2024_<br>_£_|
|_Cash at bank and in hand_|_173,575_<br>_173,575_|_54,634_<br>_54,634_|_228,209_<br>_228,209_|



No separate reconciliation of net debt has been prepared as there is no difference between the net cash/(debt) of the charity and the above cash and cash equivalents. 

Collections Trust **29** 



## **Notes to the financial statements** 31 March 2025 

## **16 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. 

## **17 Related party transactions** 

Other than the disclosure provided within note 6 relating to transactions with trustees and the remuneration payable to key management personnel, there were no other related party transactions during the year ended 31 March 2025 (2024- no other transactions). 

## _**Defined benefit pension commitments**_ 

The charity had previously participated in the Cambridgeshire County Council Pension Scheme, a career average revalued earnings (CARE), multi employer pension scheme. to the fund. 

whilst in this pool it was not possible to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore defined contribution accounting was applied during this period. In 2019, the Fund decided to disband the Small Bodies Pool, and as such Collections Trust was able to identify its individual funding position. 

The triennial valuation as of 31 March 2019 showed a high-risk deficit of £633,000, but this dropped to a low-risk deficit of only £20,000 in the subsequent triennial valuation. The latter showed a total liability of £1,373,000 against assets of £1,353,000 as of 31 March 2022. 

## _**Exit from the Pension Scheme**_ 

On 31 May 2024, the last remaining member of the pension scheme retired and the scheme was closed on the same date. A final actuarial valuation report was obtained on this date which confirmed that no cessation debt was payable (or exit credit was repayable). 

The total contributions payable by the employer in the year were £nil (2024: £25,000). At 31 March 2025, there no outstanding contributions due to the scheme. 

As the movements in the scheme between 1 April 2024 and the cessation date of 31 May 2024 had been minimal, no adjustments have been made to the accounts for the year ended cessation. 

The disclosure below are provided in respect of the comparative period, the year ended 31 March 2024. 

## _**Key assumptions**_ 

share of the assets and liabilities in the scheme as at 31 March 2024: 

|**Financial assumptions:**<br>Rate of increase in salaries<br>Rate of increase in pension payments<br>Discount rate<br>Rate of inflation - CPI|2024<br>%<br>per annum|
|---|---|
||2.70<br>2.70<br>4.85<br>2.70|



Collections Trust **30** 



## **Notes to the financial statements** 31 March 2025 

## **17 Related party transactions** (continued) 

## _**Key assumptions** (continued)_ 

|**_Key assumptions_**_(continued)_||
|---|---|
|**Mortality assumptions: **|2024<br>years|
|Longevity at age 65 for current pensioners<br>. Men<br>. Women<br>Longevity at age 65 for future pensioners<br>. Men<br>. Women|21.1<br>23.8<br>21.5<br>25.0|



The net movement in the liability during the year was: 


**----- Start of picture text -----**<br>
2024<br>Net surplus/(deficit) in scheme at 1 April   298<br>Prior year adjustment to cap pension asset  (298)<br>Service cost   (13)<br>Net interest   14<br>Employer contributions  25<br>Re-measurement of the defined liability per actuary  101<br>Net asset / (deficit) in the scheme as per actuarial valuation  127<br>Adjustment recognised within actuarial losses to cap pension asset*  (127)<br>Net deficit in scheme at 31 March as recognised on the balance sheet<br>**----- End of picture text -----**<br>


* For year ended 31 March 2024, as the net surplus was deemed to be irrecoverable, recognition of the surplus on the balance sheet was been restricted to £nil. 

## _**Amounts charged to income and expenditure, and other recognised gains and losses**_ 

Total expenditure recognised in the statement of financial activities (SOFA) was: 

||2024<br>£000s|
|---|---|
|Service cost<br>**Total expenditure recognised in SOFA**<br>Employer contributions<br>**FRS 102 charge (credit)**|13|
||13<br>(25)|
||(12)|



The net gain recognised in the re-measurements in other recognised gains and losses was: 

||2024<br>£000s|
|---|---|
|Actuarial gains on scheme liabilities<br>Actuarial gains on scheme assets<br>Adjustment to cap pension asset<br>**Remeasurement of the defined benefit liability**|14<br>87<br>(127)|
||(26)|



As the estimate net asset position in the scheme as at 31 March 2024 was not deemed recoverable, an adjustment was made to cap the asset value to equal the estimate of scheme liabilities this adjustment was recorded as part of the actuarial gain within the statement of financial activities. 

Collections Trust **31** 



## **Notes to the financial statements** 31 March 2025 

## **17 Related party transactions** (continued) 

## _**Scheme assets and obligations reconciliation**_ 

share of the defined benefit scheme obligations for the year ended 31 March 2024 were as follows: 

||2024<br>£000s|
|---|---|
|Defined benefit obligation at 1 April<br>Current service cost<br>Interest cost<br>Contributions by scheme participants<br>Benefits paid<br>Actuarial gains<br>**Defined benefit obligation at 31 March**|(1,033)<br>(13)<br>(49)<br>(3)<br>17<br>14|
||(1,067)|



the fair value of scheme assets for the 

year ended 31 March 2024 were as follows: 

||2024<br>£000s|
|---|---|
|Fair value of scheme assets at 1 April<br>Actuarial gains<br>Interest income on assets<br>Contributions by employer<br>Contributions by scheme participants<br>Benefits paid<br>**Fair value of scheme assets at 31 March**|1,331<br>87<br>63<br>25<br>3<br>(17)|
||1,492|



||%|Value at<br>31 March<br>2024<br>945<br>134<br>201<br>146<br>66<br>1,492|
|---|---|---|
|Equities<br>Government bonds<br>Other bonds<br>Property<br>Other managed funds<br>**Total market value of assets**|63.3<br>9.0<br>13.5<br>9.8<br>4.4||
||100.0||



The valuation of scheme assets and liabilities were calculated at a lower bound level of 85% prudence and an upper bound level of 95% prudence.  The figures shown above are the upper bound levels. 

Collections Trust **32**