Registered number: 01354445 Charity number: 276194
THE HISTORY OF ADVERTISING TRUST (A Company Limited by Guarantee)
## FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
## THE HISTORY OF ADVERTISING TRUST
(A Company Limited by Guarantee)
## CONTENTS
||Page|
|---|---|
|Reference and Administrative Details of the Charity, its Trustees and Advisers|1|
|Trustees' Report|2 - 5|
|Independent Examiner's Report|6|
|Statement of Financial Activities|7|
|Balance Sheet|8|
|Notes to the Financial Statements|9 - 22|
THE HISTORY OF ADVERTISING TRUST
(A Company Limited by Guarantee)
## REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2022
|Trustees|Mr T Knox, Chair (from 6 December 2022)|Mr T Knox, Chair (from 6 December 2022)|
|---|---|---|
||Mr G Russell, Chair (to 6 December 2022)||
||Mr J Best, Deputy Chair||
||Ms S Watson, Treasurer||
||Mr G Hinton||
||Mr S Goode||
||Mr P Buchanan||
||Mr R Earle||
||Mr P Bainsfair||
||Mr P Smith||
||Mr S Woodford||
||Mr J Tylee||
||Ms R Arnold||
||Ms S Chan (appointed 13 March 2022)||
||Mr J Billett (resigned 17 January 2023)||
|President|Keith Weed CBE||
|Company registered|||
|number|01354445||
|Charity registered|||
|number|276194||
|Registered office|HAT House||
||12 Raveningham Centre||
||Beccles Road||
||Raveningham, Norwich||
||Norfolk||
||NR14 6NU||
|Key management|||
|personnel|Mr J Gordon-Saker, Executive Director||
||Mr A Moir, Deputy Director||
|Independent examiners|Price Bailey LLP||
||Chartered Accountants||
||Anglia House, 6 Central Avenue||
||St Andrews Business Park||
||Thorpe|St Andrew|
||Norwich||
||Norfolk||
||NR7 0HR||
Page 1
## THE HISTORY OF ADVERTISING TRUST
## (A Company Limited by Guarantee)
## TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022
The Trustees present their annual report together with the financial statements of The History of Advertising Trust for the year 1 January 2022 to 31 December 2022. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
Since the charity qualifies as small, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.
The History of Advertising Trust is a company limited by guarantee, governed by its Memorandum and Articles of Association dated 18 February 1977 and amended 5 October 2021.
## Objectives and Activities
The History of Advertising Trust (‘HAT’) was founded in 1976 by a small group within the advertising industry with the aim to develop an accessible and representative archive resource for the study of advertising. The Trust gained charity status in 1978.
HAT aims to promote learning and creative excellence by preserving and celebrating the advertising heritage of the UK. It has developed in close collaboration with the advertising/marketing communications industry, collecting its records over the last forty years to form a unique research and study resource dating from 1800 to the present day. It has become the largest and most comprehensive archive of British advertising and marketing communications in the world and is brand manager for many UK important brands, institutions and agencies.
Regarded by many as a national treasure, HAT provides the stories behind many famous brands, the ideas and research that led to their development, changing image and campaign messages. These can be understood within the context of an evolving advertising industry, its regulatory bodies, agencies, professional associations, networking groups and social clubs whose historical records form the core of the collection. The advertisements themselves also provide an invaluable record of social, economic and cultural changes and trends that have occurred within British society through five industrial revolutions.
HAT’s vision is to promote understanding of advertising history by achieving the provision of a self-funded, nationally recognised, fully integrated archive that offers a unique, professional and complementary digital archive service.
HAT employs professionally qualified archivists to manage the collections and has been awarded Accredited Archive status by the National Archives. The Deputy Director supervises a team of skilled collections management staff that are further supported by trained volunteers on various archive projects according to priorities, as set in HAT’s annual archive management plan. HAT supports young people through the provision of work experience placements and internships organised through local education and training providers and works with universities and other educational establishments.
In setting our objectives and planning our activities, the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and, in particular, to its supplementary public benefit guidance on advancing education and on fee charging.
Page 2
## THE HISTORY OF ADVERTISING TRUST
(A Company Limited by Guarantee)
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2022
## Policies and objectives
## Strategic objectives 2021-25
## Education
Through HAT Collective, develop a clear and relevant learning, publishing and broadcast resource for higher education and professional development, to become a nationally recognised hub for brand leaders, students and industry alumni.
## Digitisation
Document and safeguard the archive through digitisation, ensuring it remains uniquely representative of the UK brand communication sectors, gives clients a secure home for the preservation of their digital assets and eliminates the risk of permanent deletion.
## Archive
Building on full accreditation as the leading archive for protecting and celebrating global brand heritage, continue to develop online accessibility for research and education, whilst accessing the assets for licensing, publishing and broadcast use and products such as Ad-Memoire.
## Industry
Promote the relevance and importance of brand heritage through the scale of the archive, leading to wider use of its services by brands and agencies whilst gaining broader support and understanding of its purpose. To ensure the Trust is the logical archive offer to the industry and others.
## Sustainability
Create sustainability through the prioritisation and diversification of revenue streams, understanding the commercial imperative, optimising sponsorship, donations and grant funding, whilst striving for ethical selfsufficiency in everything it does.
## Storytelling
Position HAT as a contemporary provider of business benefits to its users, recognising the professional skills and expertise of the archivists, highlighting the significant role HAT plays in brand heritage and social history, in work, educational and personal settings.
## Achievements and Performance Review of activities
HAT’s total revenue of £311,333 (2021: £338,236) shows reduced income of £26,903 on the previous year. The removal of the COVID Job Retention Scheme was partly the reason for the decrease, along with agency cash flow fears affecting donations.
At end of the year 31st December 2022, expenditure had been under control in line with budget, but due to smaller income the Trust made a deficit of £38,393 (2021: surplus £12,678), but felt able to offer and afford a modest pay rise of 2% due to strong cash reserves.
The retiring Chair’s loan to HAT of £15,000 remains outstanding and we are grateful that repayment is not sought until the charity is on a sustained, improved financial footing.
In a challenging year, we were successful in creating a range of contemporary marketing materials to reflect our core business priorities and, using feedback from hospital trials, we re-thought the subscription model for our reminiscence resource for dementia care. All this work has created a robust and creative platform from which to attract archive fees, donations, grants and sponsorship in the future.
Page 3
THE HISTORY OF ADVERTISING TRUST (A Company Limited by Guarantee)
## TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2022
## Fundraising
HAT understands its duty to protect the public, including vulnerable people, from unreasonably intrusive or persistent fundraising approaches and undue pressure to donate, but does not currently fundraise from the public or use any internal fundraisers or external fundraising agencies for either telephone or face-to-face campaigns and received no fundraising complaints during the year. HAT is not registered with a fundraising regulator.
## Financial review
## A) Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the “going concern basis” in preparing the Financial Statements. Further details regarding the “going concern basis” can be found in the Accounting Policies.
## B) Reserves policy
The History of Advertising Trust’s reserve policy is to break-even on cash income and expenditure, while retaining sufficient reserves to deal with unavoidable/ unforeseen cash-flow or other difficulties. Ideally, HAT should retain a reserve of £60,000 as an emergency contingency fund (equalling 3 months’ worth of known outgoings).
Current total reserves of the charity are £692,065 (2021: £730,458) which includes restricted funds of £26,841 (2021: £18,223) and unrestricted funds of £665,224 (2021: £712,225). Included in unrestricted funds are heritage assets, which are treated as designated funds; these total £542,341 (2021: £540,793). Free reserves, ie. the general fund of £122,883 (2021: £171,432) less fixed assets of £48,794 (2021: £48,758), total £74,089 (2021: £122,674).
## Structure, governance and management
## A) Constitution
The Trust is registered as a charitable company, limited by guarantee (Number 01354445) and was set up by a Memorandum and Articles of Association on 18 February 1977, as amended on 5 October 2021. It is also a registered charity (Number 276194).
## B) Governance
The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. Day-to-day management of the charity is delegated to the Executive Director, Mr John Gordon-Saker.
The Chair and the Trustees bring great experience of the advertising industry to the charity and continue our connection with key people in the sector. The Trustees represent all sections of HAT’s charitable aims and are a benefit in connecting us with the industry and beyond.
Regular Business Group meetings take place quarterly throughout the year and are useful in gaining ideas and input from Trustees, using their knowledge and connections to progress the work plan.
In accordance with previous practice, a Finance and Audit Sub-Committee, comprising the Treasurer, Chair and Exec Director, meet monthly to review management accounts and monitor progress against budget and cash flow.
Page 4
## THE HISTORY OF ADVERTISING TRUST (A Company Limited by Guarantee)
## TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2022
Following the pandemic, HAT continued to operate the new regime of hygiene and social distancing around the workplace and, as a result, staff, volunteers and visitors have enjoyed a safe working environment. Whilst the removal of the job retention scheme may have affected financial performance, we have incorporated many of the pandemic working practices, such as hybrid working, which have had a positive impact on work patterns, performance and morale.
## C) Method of appointment or election of Trustees
Potential new Trustees are recommended to Board members and selected with a view to ensuring an appropriate mix of skills, expertise and diversity. The term of service of Trustees is reviewed annually by the Chair and Vice Chair against length of service and the key skill sets needed for HAT.
After serving for five years as Chair, Geoffrey Russell decided to retire in December 2022. The Trustees would like to place on record their eternal gratitude for his tireless work in leading the Trust through some challenging times, guiding it safely through an unsettling and uncharted pandemic, whilst laying the foundations for a new era of resilience and growth.
## Future plans
The strategic plan has been reviewed and agreed as shown above and revenue streams have been prioritised to reflect the structure of a limited staff resource, so that we:
- Engage with brands to generate increased archive management fees.
- Promote the commercial benefits to agencies,
- Launch brand archaeology service to support aqencies’ new business pitches.
- Expand educational resources through HAT Collective, the Education Summit and Inspiring Minds.
- Fund our dementia care resource, Ad-Memoire, through agency legacy and brand heritage.
- Continue the digitisation of collections to increase online content.
- Communicate our research and library resources to broadcast production companies.
- Create a shop window for HAT in media hubs around the UK.
- Increase collection capacity by 12.5% through construction of an additional archive building.
- Launch a new Friends’ Scheme to include a senior tier of Patrons.
Content is king and HAT is in a strong position to make its assets work. The archive is contemporary, relevant and sustainable and, whilst its work is to preserve the past, capture the present and inspire the future, the call to action for clients and partners is simple – use the archive’s resources, sponsor or donate.
In preparing this report, the Trustees have taken advantage of the small companies’ exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the Trustees on 16 May 2023 and signed on their behalf by22 May 2023
Mr T Knox, ChairTom Knox (May 22, 2023, 3:14pm)
Page 5
## **THE HISTORY OF ADVERTISING TRUST**
## **(A Company Limited by Guarantee)**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022**
I report to the charity trustees on my examination of the accounts of the company for the year ended 31 December 2022 which are set out on pages 7 to 22.
## **RESPONSIBILITIES AND BASIS OF REPORT**
As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **INDEPENDENT EXAMINER'S STATEMENT**
Since the charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants of England and Wales (ICAEW), which is one of the listed bodies.
I have completed my examination. I can confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## **Helena Wilkinson FCA DChA**
## **Price Bailey LLP Chartered Accountants**
Anglia House, 6 Central Avenue St Andrews Business Park Thorpe St Andrew Norwich NR7 0HR
> Date: 22 May 2023
Page 6
## THE HISTORY OF ADVERTISING TRUST
(A Company Limited by Guarantee)
## STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022
|Note
INCOME FROM:
Donations and legacies
2
Charitable activities
3
Investments
4
Other income
5
TOTAL INCOME
EXPENDITURE ON:
Raising funds
Charitable activities
TOTAL EXPENDITURE
NET (EXPENDITURE) / INCOME BEING NET
MOVEMENT IN FUNDS
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
Prior year adjustment (Note 13)
TOTAL FUNDS CARRIED FORWARD|Unrestricted
funds
2022
£
76,965
225,362
206
-
302,533
2,336
347,198
349,534
(47,001)
(47,001)
719,112
(6,887)
665,224|Restricted
funds
2022
£
-
8,800
-
-
8,800
-
192
192
8,608
8,608
18,233
-
26,841|Total
funds
2022
£
76,965
234,162
206
-
311,333
2,336
347,390
349,726
(38,393)
(38,393)
737,345
(6,887)
692,065|As restated
Total
funds
2021
£
46,895
251,924
23
39,394|
|---|---|---|---|---|
|||||338,236|
|||||3,499
322,059|
|||||325,558|
|||||12,678
12,678
717,780
-|
|||||730,458|
All income and expenditure derives from continuing activities.
The notes on pages 9 to 22 form part of these financial statements.
Page 7
## THE HISTORY OF ADVERTISING TRUST
## (A Company Limited by Guarantee) REGISTERED NUMBER: 01354445
## BALANCE SHEET AS AT 31 DECEMBER 2022
|Note
FIXED ASSETS
Tangible assets
9
Heritage assets
10
CURRENT ASSETS
Debtors
11
Cash at bank and in hand
CREDITORS:amounts falling due within
one year
12
NET CURRENT ASSETS
NET ASSETS
CHARITY FUNDS
Restricted funds
14
Unrestricted funds
14
TOTAL FUNDS|£
51,229
132,124
183,353
(82,423)|2022
£
48,794
542,341
591,135
100,930
692,065
26,841
665,224
692,065|£
19,857
200,416
220,273
(79,366)|As restated
2021
£
48,758
540,793|
|---|---|---|---|---|
|||||589,551
140,907|
|||||730,458|
|||||18,233
712,225|
|||||730,458|
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime within Part 15 of the Companies Act 2006.
The Trustees consider that the charity is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the charity to obtain an audit for the year in question in accordance with section 476 of the Act.
The Trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
22 May 2023 The financial statements were approved and authorised for issue by the Trustees on 16 May 2023 and signed on their behalf, by:
~~Mr T Knox, Chair~~ Tom Knox (May 22, 2023, 3:14pm) Mr J Best, Deputy ChairJames Best (May 22, 2023, 3:24pm)
The notes on pages 9 to 22 form part of these financial statements.
Page 8
THE HISTORY OF ADVERTISING TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
## 1. ACCOUNTING POLICIES
## 1.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The History of Advertising Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The financial statements have been prepared in sterling and rounded to the nearest £1.
## 1.2 Company status
The charity is a company limited by guarantee and was incorporated in the United Kingdom. The members of the company are the Trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The registered address of the charity is HAT House, 12 Raveningham Centre, Beccles Road, Raveningham, Norwich, Norfolk, NR14 6NU.
## 1.3 Going concern
Core revenue has proved resilient post-pandemic and, with inflation-proofed archive fees, continued prudent management, robust overhead control, strong cash position and new business initiatives due to come to fruition, the Trust will continue for at least 12 months from the date of signing these financial statements. As such, they have therefore been prepared on a going concern basis.
Page 9
THE HISTORY OF ADVERTISING TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
## 1. ACCOUNTING POLICIES (continued)
## 1.4 Income
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income received from charitable activities consists of archive management fees and archive research and other income. With archive management fees, clients will typically pay an annual fee for the charity to securely store their historic advertising material. Archive research and other income mainly includes amounts received from clients for restoring and digitising old advertising materials to ensure that they are not damaged over time.
Income received which is restricted to the purchase of fixed assets is shown as income in the accounts and the amount is transferred to unrestricted funds once the amount has been spent and capitalised and the restriction has been lifted. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.
For legacies, entitlement is taken at the earlier of the date on which either the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.
Donated services or facilities are recognised when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the charity of the item is probable and that economic benefit can be measured reliably.
## 1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by its natural classification.
Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.
## 1.6 Tangible fixed assets and depreciation
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
- Fixtures and fittings 5 - 25 years straight line on cost - Office equipment 5 years straight line on cost - Computer equipment 4 - 5 years straight line on cost
Page 10
THE HISTORY OF ADVERTISING TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
## 1. ACCOUNTING POLICIES (continued)
## 1.7 Heritage assets
The Trust's archive materials; which are assets of historical and artistic importance held to advance the Trust's educational objectives and, through public access, contribute to advertising sector education, are recognised as heritage assets, in accordance with FRS 30 (Heritage Assets) which requires such assets to be reported in the balance sheet where information is available on cost or value. Since 2001, additions to the Trust's archive have been capitalised at acquisition value and treated as non depreciable heritage assets in the balance sheet. A description of the collection, its management and developments in the year are given in Note 10.
## 1.8 Operating leases
Rentals under operating leases are charged to the Statement of Financial Activities incorporating Income and Expenditure Account on a straight line basis over the lease term.
## 1.9 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## 1.10 Cash at Bank and in hand
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## 1.11 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation.
## 1.12 Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## 1.13 Pensions
The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.
Page 11
THE HISTORY OF ADVERTISING TRUST
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
## 1. ACCOUNTING POLICIES (continued)
## 1.14 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
## 1.15 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 the transaction value and subsequently measured at their fair value as at the balance sheet date. All financial instruments of the charity are measured at cost.
Financial assets include trade debtors and the bank balance. Financial liabilities include trade creditors, accruals, deferred income and other creditors.
## 1.16 Significant critical estimates
No judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies. The key assumptions concerning the future and key sources of estimation uncertainty at the key reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include the estimation of the useful economic life of fixed assets and the valuation of heritage assets donated to the charity, which is completed internally by a qualified Archivist with relevant experience in the industry.
Page 12
## THE HISTORY OF ADVERTISING TRUST
## (A Company Limited by Guarantee)
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
## 2. INCOME FROM DONATIONS AND LEGACIES
|INCOME FROM DONATIONS AND LEGACIES||||
|---|---|---|---|
|Donations
Donated archive material
Friends donations
Royalties
Grants
Total donations and legacies
Total 2021|Unrestricted
funds
2022
£
66,278
1,548
3,000
2,639
3,500
76,965
46,895|Total
funds
2022
£
66,278
1,548
3,000
2,639
3,500
76,965
46,895|Total
funds
2021
£
39,913
1,015
3,000
2,967
-|
|||||
|||||
||||46,895|
|||||
## 3. INCOME FROM CHARITABLE ACTIVITIES
|INCOME FROM CHARITABLE ACTIVITIES||||||
|---|---|---|---|---|---|
|Archive research and other income
Archive management fee
Total 2021|Unrestricted
funds
2022
£
48,012
177,350
225,362
251,924
243,124||Restricted
funds
2022
£
8,800
-
8,800
-
8,800|Total
funds
2022
£
56,812
177,350
234,162
251,924|As restated
Total
funds
2021
£
91,882
160,042
251,924|
|||||||
|||251,924
243,124|-
8,800|||
## 4. INVESTMENT INCOME
|INVESTMENT INCOME||||
|---|---|---|---|
|Interest Receivable
Total 2021|Unrestricted
funds
2022
£
206
23|Total
funds
2022
£
206
23|Total
funds
2021
£
23|
|||||
Page 13
## THE HISTORY OF ADVERTISING TRUST
(A Company Limited by Guarantee)
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
## 5. OTHER INCOME
|OTHER INCOME||||
|---|---|---|---|
|CJRS income
Total 2021|Unrestricted
funds
2022
£
-
39,394|Total
funds
2022
£
-
39,394|Total
funds
2021
£
39,394|
|||||
## 6. EXPENDITURE ON CHARITABLE ACTIVITIES
|EXPENDITURE ON CHARITABLE ACTIVITIES|||
|---|---|---|
|Operating lease payments
Rent
Insurance
Light and heat
Archive supplies
Repairs and maintenance
Motor and travelling costs
Other professional fees
Communication and information technology
Other office expenses
Depreciation and impairment
Governance – Accountancy and legal fees
Bank charges
Exhibition costs
PR
Bad debts
Courses, seminars and training
Wages and salaries
National insurance
Pension cost
Total 2022|Total
2022
£
5,383
39,237
3,034
5,415
12,064
5,112
3,280
4,150
9,961
1,492
5,194
7,027
183
2,546
5,212
4,500
189
214,039
11,360
8,012
347,390|Total
2021
£
3,597
39,237
3,104
4,414
20,630
2,277
980
5,020
8,913
1,747
5,036
2,505
82
-
-
-
-
204,597
12,021
7,899
322,059|
||||
|Total 2021|322,059||
Restricted expenditure in the year was £192 (2021 - £5,889), all other expenditure was unrestricted in both years.
Page 14
## THE HISTORY OF ADVERTISING TRUST
(A Company Limited by Guarantee)
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
## 7. NET INCOME/(EXPENDITURE)
This is stated after charging:
||2022|2021|
|---|---|---|
||£|£|
|Depreciation of tangible fixed assets:|||
|- owned by the charity|5,194|5,036|
|Independent examination fee|3,365|2,505|
|Operating lease rentals|5,383|3,597|
## 8. STAFF COSTS
Staff costs were as follows:
|STAFF COSTS
Staff costs were as follows:|||
|---|---|---|
|Wages and salaries
Social security costs
Other pension costs|2022
£
214,039
11,360
8,012
233,411|2021
£
204,597
12,021
7,899|
|||224,517|
The average number of persons employed by the charity during the year was as follows:
|Direct charitable work
Administrative|2022
No.
11
1
12|2021
No.
10
1|
|---|---|---|
|||11|
No employee received remuneration amounting to more than £60,000 in either year.
The charity trustees were not paid or received any other benefits in the year (2021 - £Nil) neither were they reimbursed expenses during the year (2021 - £Nil).
The key management personnel of the charity comprise the trustees, the Director and Deputy Director (2021 - trustees and the Director). The total employee benefits of the key management personnel of the Trust were £82,004 (2021 - £51,635).
Page 15
## THE HISTORY OF ADVERTISING TRUST
(A Company Limited by Guarantee)
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
|9.
TANGIBLE FIXED ASSETS
Cost
At 1 January 2022
Additions
Disposals
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
On disposals
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021|Fixtures and
fittings
£
118,466
-
(207)
118,259
73,301
2,810
(207)
75,904
42,355
45,165|Office
equipment
£
8,147
-
(8,147)
-
8,147
-
(8,147)
-
-
-|Computer
equipment
£
48,313
5,230
-
53,543
44,720
2,384
-
47,104
6,439
3,593|Total
£
174,926
5,230
(8,354)
171,802
126,168
5,194
(8,354)
123,008
48,794
48,758|
|---|---|---|---|---|
Page 16
## THE HISTORY OF ADVERTISING TRUST
(A Company Limited by Guarantee)
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
## 10. CHARITY HERITAGE ASSETS
|CHARITY HERITAGE ASSETS||
|---|---|
|Market value
At 1 January 2022
Additions
At 31 December 2022
At 31 December 2021|Total
£
540,793
1,548|
||542,341|
||540,793|
## Valuation
On adoption of FRS 102 in the year ended 31 December 2016, the trustees took the decision to treat the market value of the heritage assets as deemed cost. The historical cost of the assets at 31 December 2021 the historical cost was £336,970, and at 31 December 2022 the historical cost was £336,970.
## Acquisitions policy
Acquisitions are made in accordance with the collecting policy agreed by the Board of Trustees and may be by purchase or donation.
## Collections management
The trust has a comprehensive series of policies covering all aspects of the collections and their management. They set the tone and framework for ensuring that the Trust acts legally and ethically whilst aspiring to the highest professional standards.
## Access to collection
Access to the collections whether physically or virtually is one of the highest priorities for the Trust. The Trust is actively working towards greater access to its collections by providing opportunities to use, enjoy and learn from collections. All individuals can access the collection on an appointment basis, agreed in advance with the Trust.
## ACQUISITIONS SUMMARY 2017 - 2022
|Purchases
Donations
Total|2022
£
-
1,548
1,548|2021
£
-
1,015
1,015|2020
£
2,450
11,600
14,050|2019
£
2,750
2,176
4,926|2018
£
-
826
826|2017
£
-
4,496|
|---|---|---|---|---|---|---|
||||||||
||||||||
|||||||4,496|
Page 17
## THE HISTORY OF ADVERTISING TRUST
(A Company Limited by Guarantee)
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
## 11. DEBTORS
|Trade debtors
Other debtors
Prepayments and accrued income
CREDITORS: Amounts falling due within one year
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income|2022
£
46,258
-
4,971
51,229
2022
£
3,730
4,516
15,000
59,177
82,423|2021
£
17,267
49
2,541
19,857
As restated
2021
£
2,057
45
15,000
62,264
79,366|
|---|---|---|
## 12. CREDITORS: Amounts falling due within one year
## DEFERRED INCOME
Deferred income relates to archive management fees paid in advance:
|Deferred income brought forward
Resources deferred during the year
Amounts released from previous years
Total|2022
£
59,848
55,812
(59,848)
55,812|As restated
2021
£
118,878
59,848
(118,878)
59,848|
|---|---|---|
## 13. PRIOR YEAR ADJUSTMENT
The prior year adjustment relates to an adjustment of £6,887 in deferred income, reducing income from archive management fees in 2021 from £166,929 to £160,042 as shown in note 3.
Page 18
## THE HISTORY OF ADVERTISING TRUST
(A Company Limited by Guarantee)
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
## 14. STATEMENT OF FUNDS
## STATEMENT OF FUNDS - CURRENT YEAR
|Balance at 1
January
2022
As restated
£
Designated funds
Archive and library
352,031
Revaluation reserve (archive and library)
188,762
540,793
General funds
General funds
171,432
Total unrestricted funds
712,225
Restricted income funds
Butlin’s Project
18,233
Total of funds
730,458|Income
£
1,548
-
1,548
300,985
302,533
8,800
311,333|Expenditure
£
-
-
-
(349,534)
(349,534)
(192)
(349,726)|Balance at
31
December
2022
£
353,579
188,762
542,341
122,883
665,224
26,841
692,065|
|---|---|---|---|
## Designated Funds
## Archive and library
The archive and library fund comprises the value of archive material donated to the charity and held in trust plus occasional small purchases for the library.
## Revaluation reserve
The revaluation reserve represents the surplus arising from the revaluation of the charity's assets.
## Restricted Funds
## Butlin’s Project
This comprises of amounts paid by Butlin’s to manage, catalogue and activate the Butlin's Heritage Collection for the companies 80th anniversary. This has enabled the charity to employ extra staff to work on the project in which the funds Butlin’s are paying HATS are used.
## Heritage Project
The Heritage grant was to purchase 500 Victorian and Edwardian Chromolithographic trade cards, to digitise them preserve them and to create an exhibition of the cards to be shown at universities, libraries and other venues. The transfer from restricted funds represents recognition of this past expenditure to release the amount to unrestricted funds.
Page 19
THE HISTORY OF ADVERTISING TRUST (A Company Limited by Guarantee)
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
## 14. STATEMENT OF FUNDS (continued)
## STATEMENT OF FUNDS - PRIOR YEAR
|Designated funds
Archive and library
Revaluation reserve (archive and library)
General funds
General funds
Total unrestricted funds
Restricted income funds
Butlin’s Project
Heritage Project
Total of funds|Balance at
1 January
2021
£
351,016
188,762
539,778
158,800
698,578
15,322
3,880
19,202
717,780|Income
As restated
£
1,015
-
1,015
328,421
329,436
8,800
-
8,800
338,236|Expenditure
£
-
-
-
(319,669)
(319,669)
(5,889)
-
(5,889)
(325,558)|Transfers
in/out
£
-
-
-
3,880
3,880
-
(3,880)
(3,880)
-|Balance at
31
December
2021
As restated
£
352,031
188,762
540,793|
|---|---|---|---|---|---|
||||||171,432|
||||||712,225|
||||||18,233
-
18,233|
||||||730,458|
## 15. ANALYSIS OF NET ASSETS BETWEEN FUNDS
## ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR
|Unrestricted
funds
2022
£
Tangible fixed assets
48,794
Heritage assets
542,341
Current assets
156,512
Creditors due within one year
(82,423)
665,224|Restricted
funds
2022
£
-
-
26,841
-
26,841|Total
funds
2022
£
48,794
542,341
183,353
(82,423)
692,065|
|---|---|---|
Page 20
THE HISTORY OF ADVERTISING TRUST
(A Company Limited by Guarantee)
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
## 15. ANALYSIS OF NET ASSETS BETWEEN FUNDS (continued)
## ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR
|ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR|ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR|ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR|ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR|||
|---|---|---|---|---|---|
|Unrestricted
funds
2021
£
Tangible fixed assets
48,758
Heritage assets
540,793
Current assets
198,160
Creditors due within one year
(72,479)
715,232
48,758
540,793
202,040
(79,366)
712,225||||Restricted
funds
2021
£
-
-
18,233
-
18,233|As restated
Total
funds
2021
£
48,758
540,793
220,273
(79,366)
730,458|
|||||-
-
18,233
-||
|||||||
|||715,232
712,225||18,233||
## 16. PENSION COMMITMENTS
The Charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £8,012 (2021: £7,899). There were no contributions payable (2021: £Nil) to the fund at the balance sheet date.
## 17. OPERATING LEASE COMMITMENTS
At 31 December 2022 the total of the Charity’s future minimum lease payments under non-cancellable operating leases was:
|Amounts payable for land and buildings:
Within 1 year
Between 1 and 5 years
After more than 5 years
Total
Amounts payable for other lease commitments:
Within 1 year
Between 1 and 5 years
Total|2022
£
39,237
156,948
411,989
608,174
3,488
14,824
18,312|2021
£
39,237
156,948
451,226
-
3,488
872
647,411|2021
£
39,237
156,948
451,226
-
3,488
872
647,411|
|---|---|---|---|
||||-
4,360|
Page 21
## THE HISTORY OF ADVERTISING TRUST
(A Company Limited by Guarantee)
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
## 18. MEMBERS' LIABILITY
Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £ 1 for the debts and liabilities contracted before he/she ceases to be a member.
## 19. RELATED PARTY TRANSACTIONS
Included within other creditors is a loan totalling £15,000 (2021: £15,000) from one of the trustees, Mr Geoffrey Russell. During the year, no repayments (2021: £NIL) were made.
No other related party transactions took place in the year ended 31 December 2022 (2021: None).
Page 22