**Charity registration number 295303**
**Company registration number 02057180 (England and Wales)**
## **THE FAN MUSEUM**
**ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **THE FAN MUSEUM**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mrs H E Alexander MBE FRSA|
|---|---|
||T A J Burnett|
||Mrs L Zeitlin|
||Mrs S Mordaunt Crook|
||R S Harris|
||Dr P Van Der Merwe|
||T Barnes|
|**Charity number**|295303|
|**Company number**|02057180|
|**Registered office**|12 Crooms Hill|
||Greenwich|
||London|
||SE10 8ER|
|**Auditor**|LB Group Limited (Stratford)|
||19th Floor|
||1 Westfield Avenue|
||London|
||E20 1HZ|
|**Bankers**|HSBC Bank Plc|
||85 Lewisham High Street|
||Lewisham|
||London|
||SE13 6BE|
|**Investment manager**|SG Kleinwort Hambros Bank Limited|
||One Bank Street|
||Canary Wharf|
||London|
||E14 4SG|
## **THE FAN MUSEUM**
## **CONTENTS**
||**Page**|
|---|---|
|Report Of The Trustees report|1 - 3|
|Statement of Report of the trustees responsibilities|4|
|Independent auditor's report|5 - 8|
|Statement of financial activities|9|
|Balance sheet|10|
|Statement of cash flows|11|
|Notes to the financial statements|12 - 22|
## **THE FAN MUSEUM**
## **REPORT OF THE TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
The Trustees present their annual report and financial statements for the year ended 31 March 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Auditors' remuneration's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
## **Objectives and activities**
## **Objectives and aims**
The principal object of the Charity is to advance the education of the public with particular regard to fans, fan making and their history and development.
## **Public benefit**
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance ’Public benefit: running a charity (PB2)'.
## **Financial Review**
## **Principal funding sources**
The Charity’s principal funding sources are: Donation from a tnistce - around £66k per annum Donation from Victor Adda Foundation - £30 per annum Income from investments - around £120k per annum.
## **Investment policy and objectives**
The Trustees have considered the most appropriate policy for investing surplus funds is to employ the services of SG Kleinwort Hambros Bank Limited as their Investment Manager with direction to structure the investment portfolio so that the primary objective is to deliver an attractive and growing level of income over time. While capital growth is secondary, the aim is to grow capital ahead over inflation over the long term. The strategy aims to generate a real return ahead of inflation, while accepting a relatively moderate level of risk similar to the long- run historical risks of investing in a blended portfolio of 50% bonds and 50% equities.
## **Reserves policy**
The Trustees believe that it is important that when setting the annual Museum budgets that its income will exceed its expenditure so that it can accumulate reserves to facilitate its growth and provide it with financial stability. This year the Trustees note that the Museum achieved a net surplus before net gain/(loss) on investments of (£82k) (2023:Surplus £312k) as set out in the Statement of Financial Activities.
The balance sheet remained strong with total Net Assets of £6.2m (2023: £6.1m). It should be noted that most of the balance sheet is represented by unrestricted funds.
The total reserves at the year end were £6.2m (2023: £6.1m). The split of these being unrestricted £5.6m (2023:£5.5m) and permanent endowment of £665k (2023: £665k). The permanent endowment funds represent Museum collections and are recognised as heritage asset on Balance Sheet. These funds arc, therefore, excluded from the reserves policy.
The Trustees review annually the policy regarding unrestricted liquid funds which amounted to £462k (2023:£398k) at the end of year. They have decided there is a need for the Trustees to retain sufficient funds to meet any: -accrued and future management costs which cannot be met from existing funds due to an unexpected fall in investment income. -exceptional expenditure, for example, repairs & renewals, acquisition of Museum collections or to fund an opportunity that is too good to be missed as it will allow the Trustees to deliver their mission in a more effective or comprehensive way.
The Trustees have established a policy whereby the Charity maintains sufficient unrestricted funds to cover management and administration and support costs after taking into account the continued support from the Victor Adds Foundation for the year ahead.
- 1 -
## **THE FAN MUSEUM**
## **REPORT OF THE TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **Going concern**
After making appropriate enquiries, the Trustees gave 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 adoption of the going concern basis can be found in the accounting polices.
## **Principal risks and uncertainties**
The Trustees are mindful of the risks faced by the Charity. These are recognised as being financial, personnel, health and safety, physical risk and compliance with the Trustees' statutory responsibilities. These risks are reviewed by the Trustees at their meetings to see they are appropriately addressed, and that relevant policies and procedures are maintained. It is recognised that this is a continual process.
## **Financial and risk management objectives and policies**
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
## **Structure, governance and management**
## **Governing document**
The Fan Museum Trust is registered as a charitable company limited by guarantee and is governed by its Memorandum and Articles of Association dated l8th August. I986 and is registered with the Charity Commission.
## **Recruitment and appointment of new trustees**
The management of the Charity is the responsibility of the Trustees. The Board of Trustees, which must consist of at least 3 trustees, meets 3 times a year. Trustees are recruited and appointed as appropriate to provide a range and variety of different skills for the management of the Museum. Usually, the Trustees happen to be trustees of other unrelated charities and they use their knowledge and experience to fulfil their role and undertake training as and when appropriate.
## **Related parties**
None of the Trustees received any remuneration or other benefit from their work with the Charity. It should be noted that one of the Trustees makes a substantial annual donation throughout Aid to the Museum.
The Charity receives support front both the Charitable Funds of The Worshipful Company of Fan Makers and The Victor Adda Foundation. Mr. J H Hughes is a member of The Charities Committee of The Worshipful Company of Fan Makers and both Mrs. H E Alexander and Mrs. L Zeitlin are trustees of The Victor Adda Foundation.
The Museum has full accreditation under Arts Council of England Accreditation Scheme.
The Charity has a 99% owned subsidiary, Fans Limited, which was established to operate the commercial functions of The Museum, such as The Orangery and the Museum's shop.
The charity has continued to maintain indemnity insurance for trustees.
## **Auditor**
In accordance with the company's articles, a resolution proposing that LB Group Advisory Limited (Stratford) be appointed as auditor of the company will be put at a General Meeting.
- 2 -
## **THE FAN MUSEUM**
## **REPORT OF THE TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
The Report of the trustees report was approved by the board of Trustees, and signed on behalf of
.............................. Mrs H E Alexander MBE FRSA Date: .............................................
- 3 -
## **THE FAN MUSEUM**
## **STATEMENT OF REPORT OF THE TRUSTEES RESPONSIBILITIES** _**FOR THE YEAR ENDED 31 MARCH 2024**_
The trustees (who are also the directors of The Fan Museum Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom 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 those financial statements. The trustees are required to
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP'.
- make judgments and estimates that are reasonable and prudent:
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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:
- there is no relevant audit information of which the charitable company's auditors are unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that in formation.
- 4 -
## **THE FAN MUSEUM**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE FAN MUSEUM**
## **Opinion**
We have audited the financial statements of The Fan Museum (the ‘Auditors' remuneration’) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 March 2024 and of its incoming resources and application of resources, 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 and the Charities Act 2011.
## **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 in the _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the Auditors' remuneration in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Report of the trustees use of the going 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 on the Auditors' remuneration’s ability to continue as a going concern for a 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 other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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.
- 5 -
## **THE FAN MUSEUM**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE FAN MUSEUM**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the Report of the trustees report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of Trustees**
As explained more fully in the statement of Report of the trustees responsibilities, the Trustees, who are also the directors of the Auditors' remuneration for the purpose 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. In preparing the financial statements, the Trustees are responsible for assessing the Auditors' remuneration’s ability to continue as a going concern, disclosing, as applicable, 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.
- 6 -
## **THE FAN MUSEUM**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE FAN MUSEUM**
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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 auditor's 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.
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 partner 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 company through discussions with directors and other management, and from our commercial knowledge and experience of the telecommunications sector;
- We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;
- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- 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 assessed the susceptibility of the company’s financial statements to material misstatement, including
- obtaining an understanding of how fraud might occur, by:
- Making enquiries of management 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;
- Tested journal entries to identify unusual transactions;
- Reviewed the internal controls in place, specifically around payroll and bank transactions; and
- Assessed whether judgements and assumptions made in determining the accounting estimates around depreciation were indicative of potential bias.
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 directors 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
- 7 -
THE FAN MUSEUM
INDEPENDENT AUDITOR'S REPORT (CONTINUED
TO THE TRUSTEES OF THE FAN MUSEUM
Use of our report
This report is made solely to the charity's tru$lees, as a body, In accordance wilh part 4 01 the Charities (Accounts
and Reports} Regulations 2008. Our audit work has been undertaken so that we might state to the charitys irustees
those matters we are required to slate lo them in an audil0rf5 report and foi no other purpose. To the fullest extent
permitted by law. we do not accept or assume responsibility lo anyone other than the charity and the charity's
trustees as a body, for our audit work. for this report. or for the opinion3 we have formed.
Olivèr Whitt
L8 Group Advlsory Llmlted Istratfordl
Chartèrèd Accountants
ststutory Auditor
19th Floor
1 Wesffield Avenue
London
E20 1HZ
## **THE FAN MUSEUM**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
|**Unrestricted Endowment**
**funds**
**funds**
**2024**
**2024**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
125,462
-
Charitable activities
**4**
11,488
-
Investments
**5**
149,315
-
Other income
**6**
34,844
-
**Total income**
321,109
-
**Expenditure on:**
Charitable activities
**7**
288,323
-
Net gains/(losses) on investments
**11**
81,910
-
**Net income/(expenditure) for the year/**
**Net movement in funds**
114,696
-
Fund balances at 1 April 2023
5,457,715
665,141
**Fund balances at 31 March 2024**
5,572,411
665,141|**Total**
**2024**
**£**
125,462
11,488
149,315
34,844
321,109
288,323
81,910
114,696
6,122,856
6,237,552|**Total**
**2023**
**£**
164,995
13,063
147,984
31,682
357,724
308,242
(312,214)
(262,732)
6,385,588
6,122,856|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 9 -
## **THE FAN MUSEUM**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2024**_
|**Notes**
**Fixed assets**
Tangible assets
**12**
Heritage assets
**13**
Investments
**14**
**Current assets**
Debtors
**15**
Cash and cash equivalent
**Creditors: amounts falling due within**
**one year**
**16**
Net current assets
**Total assets less current liabilities**
**Capital funds**
Endowment funds - general
**Income funds**
Unrestricted funds|**2024**
**£**
**£**
41,790
2,356,606
3,404,921
5,803,317
56,216
405,773
461,989
(27,754)
434,235
6,237,552
665,141
5,572,411
6,237,552|**2023**
**£**
**£**
55,251
2,356,606
3,336,842
5,748,699
58,870
339,251
398,121
(23,964)
374,157
6,122,856
665,141
5,457,715
6,122,856|**2023**
**£**
**£**
55,251
2,356,606
3,336,842
5,748,699
58,870
339,251
398,121
(23,964)
374,157
6,122,856
665,141
5,457,715
6,122,856|
|---|---|---|---|
||||5,748,699
374,157|
||||6,122,856|
||||665,141
5,457,715|
||||6,122,856|
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements were approved by the Trustees on .........................
.............................. Mrs H E Alexander MBE FRSA **Trustee**
## **Company registration number 02057180**
- 10 -
## **THE FAN MUSEUM**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2024**_
|**Notes**
**Cash flows from operating activities**
Cash absorbed by operations
**Investing activities**
Proceeds from disposal of intangibles
Proceeds from disposal of investments
Investment income received
**Net cash generated from/(used in)**
**investing activities**
**Net cash used in financing activities**
**Net increase/(decrease) in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**
**Relating to:**
Cash at bank and in hand
Cash equivalent|**2024**
**2023**
**£**
**£**
**£**
**£**
(109,853)
(132,743)
(232)
(665)
81,910
(312,214)
149,315
147,984
230,993
(164,895)
-
-
121,140
(297,638)
489,628
-
556,150
489,628
405,773
339,251
150,377
150,377|
|---|---|
- 11 -
## **THE FAN MUSEUM**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **1 Accounting policies**
## **Charity information**
The Fan Museum is a private company limited by guarantee incorporated in England and Wales. The registered office is 12 Crooms Hill, London, SE10 8ER.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the Auditors' remuneration's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The Auditors' remuneration is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the Auditors' remuneration. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. Modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **Critical accounting judgements and key sources of estimation uncertainty**
In preparing the financial statements, trustees are required to make judgements, estimates and assumptions which affect reported income, expenses, asset and liabilities. Use of available information and application of judgement are inherent in the formation of estimates. Together with past experience and expectations of Future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.
The estimate and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision effects only that period, or in the period of the revision and future periods if the revision effects both current and future periods.
The key source of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below:
## **Useful life and residual value of fixed assets and heritage assets**
The useful life and residual value of the assets are estimated initially when the asset is purchased and form the basis of the depreciation calculations. The lives of the asset classes are kept under review and adjusted if considered necessary.
## **1.2 Going concern**
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Auditors' remuneration has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Auditors' remuneration.
- 12 -
## **THE FAN MUSEUM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **1 Accounting policies**
**(Continued)**
## **1.4 Income**
Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the Charity's accounting policies.
On receipt, donated professional services and facilities are recognised on the basis of he value of the gift to the Charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of donation.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
## **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 activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more titan one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use.
Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
## 12.5% on cost
Tangible fixed assets are initially recognised at cost. Alter recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
- 13 -
## **THE FAN MUSEUM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **1 Accounting policies**
## **(Continued)**
## **1.7 Heritage assets**
The Company holds a diverse collection of heritage assets which are held in support of its primary objective of education of the public with particular regard to fans, fan making and history thereof.
The majority of the heritage assets are not valued on the Balance Sheet on the basis that a valuation does not exist and could not be obtained-at a proportionate cost. A small number of heritage assets have been acquired in the past and, in the case of these assets, the cost of purchase is known. The aggregate cost of these assets is shown on the balance sheet.
Where heritage assets have been purchased, they are initially recognised at cost. After recognition, under the cos model, heritage assets are measured at cost less any accumulated impairment losses. Expenditure which in the Trustees' view, is required to preserve or clearly prevent further deterioration of individual items is recognised in the Statement of Financial Activities when it is incurred.
Where heritage assets have been donated, the initial valuation at fair value has been treated at deemed cost. After recognition, in this situation, the assets are measured at deemed cost less accumulated depreciation and any accumulated impairment losses.
Where heritage assets have been donated, they should initially be recognised then subsequently measured at fair value. Any reliable valuation technique to estimate the fair value of a heritage asset may be used; however, it must reflect any particular historic or heritage qualities inherent in the asset being valued, meaning that depreciated replacement cost may not be an applicable technique in all circumstances.
## **Building**
The charitable company holds a 999 year lease from 25 March 1988 of its Museum premises at 10- l2 Crooms Hill, Greenwich, from The Victor Adda Foundation which had paid £352,820 for the freehold. As the lease was granted at no cost to the charitable company, a sum equal to cost to the freeholder has been taken as the initial value of the lease and included in the cost figure in the financial statements. The resulting reserve has been transferred to the General Fund.
The Trust is responsible for the listed property at 10-12 Crooms Hill. The Trustees consider that owing to the incomparable nature of property in its current use and the fact that a conventional valuation approach would lack sufficient reliability that. even if a valuation could be obtained, the cost would be onerous compared with the additional benefits derived by the Museum and user of the financial statements. As a result the value reported in the financial statements represents cost of long—term leasehold, cost of improvements and the value of a legacy by the way of a surrendered underlease.
The cost of associated major repairs is reported in the Statement of Financial Activities in the year it is incurred. Having taken professional advice, the Trustees have reclassified the building as an inalienable asset, depreciation has not been provided on the building as this is considered to have an indefinite life.
## **Museum collections**
These include Museum acquisitions. The Trustees do not consider that a reliable cost or valuation information cart be obtained for the vast majority of items without the Trust incurring cost which would be disproportionate in comparison to the benefits derived by the Museum and user of the accounts. This is because of the diverse nature of the items held, their high volume and lack of comparable market values. The Museum also recognises that the Trustees do not consider it appropriate to charge depreciation.
## **1.8 Fixed asset investments**
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
- 14 -
## **THE FAN MUSEUM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **1 Accounting policies**
## **(Continued)**
## **1.9 Impairment of fixed assets**
At each reporting end date, the Auditors' remuneration reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
## **1.10 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.11 Financial instruments**
The Auditors' remuneration has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Auditors' remuneration's balance sheet when the Auditors' remuneration becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the Auditors' remuneration’s contractual obligations expire or are discharged or cancelled.
## **1.12 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Auditors' remuneration is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
- 15 -
## **THE FAN MUSEUM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **1 Accounting policies**
**(Continued)**
## **1.13 Pension costs and other post-retirement benefits**
The charitable company operates a defined benefit contribution pension scheme. Contributions payable to the charitable companies pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
## **Hire purchase and leasing commitments**
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
## **1.14 Foreign exchange**
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
## **2 Critical accounting estimates and judgements**
In the application of the Auditors' remuneration’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Donations and legacies**
||**Unrestricted **|**Unrestricted**|
|---|---|---|
||**funds**|**funds**|
||**2024**|**2023**|
||**£**|**£**|
|**Donations and gifts**|||
|Donations|34,414|78,114|
|Covenants and Gift aid|91,048|86,881|
||125,462|164,995|
- 16 -
## **THE FAN MUSEUM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **4 Charitable activities**
||**Income from**|
**Income from**|
|---|---|---|
||**charitable**|
**charitable**|
||**activities**|**activities**|
||**2024**|**2023**|
||**£**|**£**|
|Museum admissions|11,488|13,063|
## **5 Investments**
||**Unrestricted **|**Unrestricted**|
|---|---|---|
||**funds**|**funds**|
||**2024**|**2023**|
||**£**|**£**|
|Income from investments|136,779|145,659|
|Deposit account interest|12,536|2,325|
||149,315|147,984|
## **6 Other income**
||**Unrestricted **|**Unrestricted**|
|---|---|---|
||**funds**|**funds**|
||**2024**|**2023**|
||**£**|**£**|
|Sundry receipts|7,499|7,133|
|Rental income|27,577|25,214|
||35,076|32,347|
- 17 -
## **THE FAN MUSEUM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **7 Charitable activities**
|**Charitable**
**Expenditure**
**Total**
**2024**
**Charitable**
**Expenditure**
**2024**
**2023**
**£**
**£**
**£**
Staff costs
99,759
99,759
99,585
Investment Management Fee
21,126
21,126
19,851
Telephone
761
761
770
Museum expenses
5,865
5,865
7,083
Printing, postage & stationery
4,644
4,644
4,638
Advertising & staff recruitment
6,167
6,167
9,790
Travelling
647
647
713
Hire of Equipment
1,609
1,609
2,899
Legal & Professional Fees
25,871
25,871
11,943
Staff welfare
482
482
1,005
Subscriptions
4,203
4,203
4,765
Computer Costs
1,730
1,730
3,825
Other charitable expenditure
115,458
115,458
141,375
288,322
288,323
308,242
288,322
288,323
308,242
**8**
**Auditor's remuneration**
**Fees payable to the Auditors' remuneration's auditor and associates:**
**2024**
**£**
Audit of the Auditors' remuneration's annual accounts
4,600|**Total**
**2023**
**£**
99,585
19,851
770
7,083
4,638
9,790
713
2,899
11,943
1,005
4,765
3,825
141,375|
|---|---|
||308,242|
||308,242|
||**2023**
**£**
4,700|
## **9 Trustees**
There were no trustees' remuneration or other benefits for the year ended 31 March 2024, nor for the year end 31 March 2023.
## **Trustees' Expenses**
There were no trustees' expenses paid for the year ended 31 March 2024, nor for the year end 31 March 2023.
- 18 -
## **THE FAN MUSEUM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **10 Employees**
The average monthly number of employees during the year was:
|Engaged in charitable activities
Administration
Total
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2024**
**Number**
2
1
3
**2024**
**£**
93,432
3,445
2,882
99,759|**2023**
**Number**
3
1|
|---|---|---|
|||4|
|||**2023**
**£**
93,192
3,432
2,961|
|||99,585|
There were no employees whose annual remuneration was more than £60,000.
## **11 Net gains/(losses) on investments**
||**Unrestricted **|**Unrestricted**|
|---|---|---|
||**funds**|**funds**|
||**2024**|**2023**|
||**£**|**£**|
|Gain/(loss) on sale of investments|81,910|(312,214)|
- 19 -
## **THE FAN MUSEUM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **12 Tangible fixed assets**
|**Fixtures**
**Cost**
At 1 April 2023
At 31 March 2024
**Depreciation and impairment**
At 1 April 2023
Depreciation charged in the year
At 31 March 2024
**Carrying amount**
At 31 March 2024
At 31 March 2023|**and fittings**
**£**
143,320|
|---|---|
||143,320|
||88,070
13,460|
||101,530|
||41,790|
||55,251|
## **13 Heritage assets**
|||||||||**£**|
|---|---|---|---|---|---|---|---|---|
|**At**|**1**|**April**|**2023**|**and at**|**31**|**March**|**2024**|2,356,606|
## **14 Fixed asset investments**
|**Listed**
**investments**
**Shares in**
**group**
**undertakings**
**£**
**£**
**Cost or valuation**
At 1 April 2023
3,336,742
100
Valuation changes
68,079
-
At 31 March 2024
3,404,821
100
**Carrying amount**
At 31 March 2024
3,404,821
100
At 31 March 2023
3,336,742
100|**Total**
**£**
3,336,842
68,079|
|---|---|
||3,404,921|
||3,404,921|
||3,336,842|
There were investment assets outside the UK of £1,455,295 (2023: £1,167,250).
- 20 -
## **THE FAN MUSEUM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
|**14**
**Fixed asset investments**
Investments at fair value comprise:
Bond holdings
Equities holdings
Alternatives and related holdings
**15**
**Debtors**
**Amounts falling due within one year:**
Amounts owed by fellow group undertakings
Other debtors
Prepayments and accrued income
**16**
**Creditors: amounts falling due within one year**
**Notes**
Other taxation and social security
Deferred income
Trade creditors
Accruals and deferred income|**(Continued)**
**2024**
**2023**
**£**
**£**
1,048,087
976,725
1,917,162
1,736,701
439,572
623,316
3,404,821
3,336,742
**2024**
**2023**
**£**
**£**
24,410
21,463
22,144
25,250
9,662
12,157
56,216
58,870
**2024**
**2023**
**£**
**£**
1,956
2,353
1,134
1,130
5,038
5,716
19,626
14,765
27,754
23,964|**(Continued)**
**2024**
**2023**
**£**
**£**
1,048,087
976,725
1,917,162
1,736,701
439,572
623,316
3,404,821
3,336,742
**2024**
**2023**
**£**
**£**
24,410
21,463
22,144
25,250
9,662
12,157
56,216
58,870
**2024**
**2023**
**£**
**£**
1,956
2,353
1,134
1,130
5,038
5,716
19,626
14,765
27,754
23,964|
|---|---|---|
|||3,336,742|
|||**2023**
**£**
21,463
25,250
12,157|
|||58,870|
|||**2023**
**£**
2,353
1,130
5,716
14,765|
|||23,964|
|**17**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Endowment**
**funds**
**2024**
**2024**
**£**
**£**
Fund balances at 31
March 2024 are
represented by:
Tangible assets
41,790
-
Heritage assets
2,356,606
-
Investments
3,404,921
-
Current assets/(liabilities)
434,235
-
6,237,552
-|**Total Unrestricted**
**funds**
**Endowment**
**funds**
**2024**
**2023**
**2023**
**£**
**£**
**£**
41,790
55,251
-
2,356,606
2,356,606
-
3,404,921
3,336,842
-
434,235
374,157
-
6,237,552
6,122,856
-|**Total**
**2023**
**£**
55,251
2,356,606
3,336,842
374,157|
|---|---|---|
|||6,122,856|
- 21 -
## **THE FAN MUSEUM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **18 Contingent Liabilities**
A grant totalling £90,000 from the Heritage Lottery Fund would become repayable any time before 2084 if any of the terms of the grant are breached. In 2016, an Elizabethan Fan was purchased. The Heritage Lottery Fund and Arts Foundation gave grants totalling £25,000 towards this purchase on condition that if this fan was to be sold without prior approval of these bodies or the Fan Museum was to be declared bankrupt the grants would become repayable.
## **19 Related party transactions**
During the year the following related party transactions took place:
a. The Fan Museum Trust charged Fans Ltd, it's 99% subsidiary, £6,324 (2023: £6,900) for the cost of shared staff and other operating overheads. As at 31 March 2023 Fans Ltd owed £24,410 (2023: £21,463) to the charity.
b. During the year, Mrs H E Alexander, one of the trustees, made a gift aid donation of £66,000 (2023: £61,259), this has been included in the income of the Museum under restricted funds as there were no specific conditions attached to this gift other than the standard conditions applying to Registered Museums.
The Charity received storage charges of £6,000 (2023: £6,000) from Mrs H E Alexander for storage of fans.
c. During the year, the Charity received donations of £30,000 (2023: £64,560) from Victor Adda Foundation and £12,404 (2023: £10,307) from Worshipful Company of Fan Makers Poor Fund.
## **20 Members' Liability**
Each member of the charitable company undertakes to contribute t the assets of the company in the event of it being wound up while lie/she is a member, or within one year after lie/she ceases to be a member, such amount as may be required, not exceeding ill for the debts and liabilities contracted before he/she ceases to be a member.
## **21 Analysis of changes in net funds**
The Charity had no debt during the year.
- 22 -