2021-03-31-accounts

THE NATIONAL GALLERY TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Charity Number: 299509

THE NATIONAL GALLERY TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

CONTENTS

	Pages
Legal and administrative information	1
Trustees' Annual Report	2 - 5
Independent Auditor's Report	6
Consolidated Statement of Financial Activities	8
Trust Statement of Financial Activities	9
Consolidated Balance Sheet	10
Trust Balance Sheet	11
Consolidated Statement of Cash Flows	12
Notes to the Financial Statements	13 - 23

THE NATIONAL GALLERY TRUST

Legal and administrative information

The National Gallery Trust was established by a declaration of trust dated 27 April 1988. It was a registered charity from 1988 until 1992 when it became exempt from registration with the Charity Commission under the Charities Act 1992. In 1996 it was re-registered with the Charity Commission (Charity No. 299509).

Address: St Vincent House 30 Orange Street London WC2H 7HH Trustees: The names of the Trustees who served during the year and since the year end are given below. John Nelson (Chairman) David Landau Catherine Stevenson (resigned 22 March 2021) Nicholas Ritblat Andrew Ross Caroline Thomson Douglas Gurr (resigned 30 November 2020) Lord Hall of Birkenhead (appointed 27 October 2020) (resigned 24 May 2021) * Members of the Investment Committee Bankers: Coutts & Co 440 Strand London WC2R 0QS Auditor: Price Bailey LLP - Statutory Auditor 24 Old Bond Street London W1S 4AP Investment Advisors: Partners Capital, LLP. 5th Floor, 5 Young Street London W8 5EH Lawyers: Farrer & Co LLP 66 Lincoln's Inn Fields London WC2A 3LH

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THE NATIONAL GALLERY TRUST

Trustees' Annual Report

Structure, governance and management

The National Gallery Trust (the Trust) is governed by a Board of Trustees, which meets at least twice a year, with additional subcommittee meetings as and when required. Under a service agreement, administration of the Trust is undertaken by staff of the National Gallery. The Trust does not directly employ any staff.

Power to appoint new Trustees is exercisable by surviving or continuing Trustees. Trustees are normally appointed for a period of four years with the possibility of renewal and are chosen for their skills and experience. They are fully briefed by the Chairman on the objectives of the Trust and their role as Trustees.

Up to and including 31 March 2021, the Trust was the parent entity of a trading subsidiary, the National Gallery Company Limited, which raises funds through publishing and the management of catering and retail outlets within the National Gallery. The trading subsidiary had an independent Board of Directors, which met on a regular basis during the year. On 1 April 2021 the Trust gifted 100% of the share capital of NGC to the National Gallery. Further details on the transfer can be found under Plans for Future Periods on p3.

The Trustees have established an Investment Committee to consider and monitor the Trust's investment policy and to oversee the appointment and performance of the Trust's fund managers. The Committee is advised by Partners Capital, LLP.

Related parties

The Trust is independent of the National Gallery. At 31 March 2021 one Trustee of the Trust was also a Trustee of the National Gallery and one Trustee of the Trust was also a Trustee of the NGT Foundation. Full details of related parties are given in note 18 to the financial statements.

Risk Management

The Trustees review the risks faced by the Trust as part of their review of activities at each Board meeting. This review includes a discussion of the level of reserves and the form in which they are held, and of possible future demands on those reserves. In mitigation of the risk that reserves may run too low to meet future needs, at each Board meeting the Trustees review a report on funds that details the balances remaining on both restricted and unrestricted reserves, and the Board will consider any grant applications received in light of these balances. The report on funds includes income forecasts for all income streams. Up until ownership was transferred, the Trustees also received regular reports from the National Gallery Company on its future forecasts for remittances to the Trust.

Risks around investment performance are considered in detail by the Board's Investment Committee, whose work is discussed in detail under the Investment policy on page 4. Other risks relate to the Trust's compliance with charity, legal, taxation and accounting requirements, but this is mitigated through the appointment of the National Gallery to handle administration of the Trust. The Trustees are satisfied that systems are in place to identify and manage risks to which the Trust may be exposed.

Going Concern

Having scrutinised forecasts in light of the impact of Covid-19, the upturn in investment performance and fundraising pipeline have satisfied Trustees of the Trust's ability to meet its obligations as they fall due in the period of twelve months following the date of approval of these financial statements. The financial statements have been prepared on the going concern basis.

Basis of preparation

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102).

Charitable objects for the benefit of the public

The National Gallery Trust is a charitable trust whose objects are the advancement of education and the charitable objects of the National Gallery. The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives and in planning future activities.

The Trust undertakes the majority of its fundraising activity through the National Gallery Development team, for which the Trust is charged a proportion of costs incurred. The Trust aims to achieve its objects by raising money, through trusts and foundations, corporate and individual giving and through its trading subsidiary, and by making donations and grants for the advancement of education and in support of the National Gallery's charitable objectives.

Achievements and performance

Activities and results of the Trust

The income of the Trust (entity only) as detailed in the Trust Statement of Financial Activities on page 9 was £5.7 million (2020: £4.4 million).

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THE NATIONAL GALLERY TRUST

Trustees' Annual Report (continued)

As shown in the restricted and unrestricted funds columns of the consolidated Statement of Financial Activities, £4.5 million (2020: £3.1 million) of income from donors was for specified purposes and a further £1.2 million (2020: £1.2 million) was raised with no restrictions. Within the £4.5 million is a grant from the NGT Foundation for £2 million (2020: £2.5 million). The Trust continues to depend on the generosity of individuals, trusts and foundations for its donation income. The Board sets out expectations for income from all sources, including from the patron scheme, when approving the financial budget at each Board meeting.

The Trust made grants to the National Gallery amounting to £0.8 million (2020: £13.0 million). The grants paid out of restricted funds were to support building works (£0.2 million), exhibitions and educational activities (£0.1 million), the curatorial department (£0.3 million) as well as other activities. Grants of £0.1m (2020: £0.2m) were paid out of unrestricted funds. The payment of these grants fulfilled the Trust's charitable objectives of the advancement of education and the charitable objects of the National Gallery.

Activities and results of the subsidiary

Up to and including 31 March 2021, the Trust was the parent entity of a trading subsidiary, the National Gallery Company Limited, which raises funds through publishing and the management of catering and retail outlets within the National Gallery. The trading subsidiary had an independent Board of Directors, which met on a regular basis during the year. On 1 April 2021 the Trust gifted 100% of the share capital of NGC to the National Gallery.

NGC made a loss before taxation and intergroup transactions £0.54 million (2020: £0.01 million profit) on turnover of £2.7 million (2020: £9.9 million). Usually the principal source of revenue comes from the Gallery shops. Other income is generated through the distribution of NGC's books worldwide, digital sales, catering commission, venue hire, brand licensing and commission sales of audio and multi-media guides in the Gallery. However the pandemic created a challenging trading environment for NGC, with enforced Gallery closures severly limiting the potential for sales throug on-site retail, concessions and events. Sales through NGC's e-commerce platform did however hit record highs at £831k, compared to £382k during 19/20. In response to these challenges, the team made some significant changes to reduce all overhead lines in year, including the surrendering of the lease on offices space and a reduction in headcount. NGC made full use of the Government Furlough Scheme during the year.

Fixed assets

The movements in fixed assets during the year are set out in notes 7 to 9 of the financial statements.

The results of NGC are shown in more detail in note 2 to the financial statements.

Plans for future periods

The Trust plans to continue to generate resources sufficient to respond appropriately to grant applications and to make grants in furtherance of the Trust's charitable objectives. Trustees will place specific focus on ensuring that the Trust's investment portfolio is managed in a way that responds as effectively as possible to the risks created by the Covid-19 pandemic.

On 1 April 2021, NGT gifted 100% of the share capital of NGC to the National Gallery in order to better integrate and align the operations and strategic direction of the Company within the Gallery, a significant benefit to both organisations following the launch of the Gallery's new strategic plan leading up to the bicentenary in 2024. The move also benefits the Trust by enabling it to focus on core activities of managing the investment portfolio and making grants to support the charitable purpose of the National Gallery. The gift is in line with the Trust's charitable objectives of advancing the objects of the National Gallery.

Trustees would like to express their thanks to the staff of NGC for their work and resiliance, especially during the challenges posed by the pandemic, and wish them well under the management of the National Gallery.

Policies

Grant-making policy

Grants are made only with the agreement of the Board of Trustees. The Board of Trustees considers applications from the National Gallery and other bodies for grants and makes such grants as seem best calculated to advance education and the charitable purposes of the National Gallery, ensuring always that the requests and stipulations of donors are strictly met.

Reserves policy

The Trustees review the level of funds at each board meeting, together with known and likely future demands on those funds. It is the Trust's policy to continue to build up reserves until they can be expended in furtherance of the charitable objects. The Trustees manage the Trust’s reserves so as to achieve the maximum rate of return consistent with the normal level of prudence which should govern the management of charitable funds and with the need to maintain sufficient liquidity to meet grant applications likely to be received.

Unrestricted free reserves total £47 million (2020: £37 million). The Trustees consider this level of unrestricted reserves to be sufficient to meet future funding obligations and to continue to make grants in furtherance of the Trust's charitable objects. The National Gallery sometimes approaches the Trust when there is an opportunity to acquire a new painting. Such acquisitions are normally high in value and opportunities can arise at any time.

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THE NATIONAL GALLERY TRUST

Trustees' Annual Report (continued)

A substantial proportion of restricted funds held is for sole use for projects undertaken by the National Gallery. Of the total restricted funds balance of £62.9 million (2020: £46.5 million), an amount of £54.4 million (2020: £41.4 million) is restricted to the support of National Gallery activities.

Investment policy

The investment objectives of the National Gallery Trust are to maximise long-term total return while maintaining adequate levels of liquidity to meet the requirements of the reserves policy. The Trustees recognise that risk is part of the investment process and seek to minimise risk as far as possible through asset allocation and diversification.

The Trust is the parent entity of a trading subsidiary, the National Gallery Company Limited, which raises funds through publishing and the management of catering and retail outlets within the National Gallery. The trading subsidiary has an independent Board of Directors, which meets on a regular basis.

Funds are placed with a discretionary manager, Partners Capital LLP. The annualised nominal return target for Partners Capital is at least 7% after the payment of costs. On an assumed inflation rate of 3% a year this would amount to an annual real rate of return of 4%.

The investment portfolio’s performance will be evaluated against long-term and short-term benchmarks. In the long term, over a rolling 5-year period, it will be assessed against the target real rate of return. In the short term it will be assessed against indices appropriate to the various asset classes in which it is invested.

The remaining funds are invested in cash deposits earning the best possible rate of return consistent with the liquidity requirements described under the reserves policy. The Trustees have agreed for the time being that at least £5 million should always be held on cash deposit.

At 31 March 2021 the value of the investments in the Partners Capital funds was £97 million, 88% of reserves then available. At 31 March 2021 the Trust held £11.5 million in cash or cash deposits, on which an average rate of interest of 0.04% was earned over the year.

Fundraising policy

The Trust 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.

The Trust is registered with the Fundraising Regulator which has set standards of best practice in fundraising. In the year to 31 March 2021 there have been no failures to comply with the fundraising schemes and standards that the Gallery has committed to (2020: nil). During this period we received no formal complaints relating to our fundraising activities (2020: nil).

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THE NATIONAL GALLERY TRUST

Trustees' Annual Report (continued)

Statement of Trustees' Responsibilities

The Trustees are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

The law applicable to charities in England and Wales 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 charity and of the incoming resources and application of resources of the charity 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 the Charities SORP (2019);

• make judgments and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the

• charity will continue in business.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the charity's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the Board of Trustees on 27 October 2021 and signed on its behalf by

John Nelson - Chairman

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THE NATIONAL GALLERY TRUST

Independent Auditor’s Report to the Trustees of the National Gallery Trust

Opinion

We have audited the financial statements of The National Gallery Trust (the ‘parent charity’) and its subsidiaries (the 'group') for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, Trust Statement of Financial activities, Consolidated Balance Sheet, Trust Balance Sheet, Consolidated Cashflow 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 group's and parent charity’s affairs as at 31 March 2021, and of the group's incoming resources and application of resources, including 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 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 group and parent charity 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 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 group’s or parent charity’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 trustees 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, except to the extent otherwise explicitly stated in our report, 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.

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 trustees’ report; or

• sufficient accounting records have not been kept; or

• the parent charity's 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.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, set out on page 5, the trustees 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 group's and parent charity’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 group or the parent charity or to cease operations, or have no realistic alternative but to do so.

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THE NATIONAL GALLERY TRUST

Independent Auditor’s Report to the Trustees of the National Gallery Trust (continued)

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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. 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:

We gained an understanding of the legal and regulatory framework applicable to the charity and the sector in which it operates and considered the risk of the parent charity not complying with the applicable laws and regulations including fraud in particular those that could have a material impact on the financial statements. This included those regulations directly related to the financial statements, including financial reporting, and tax legislation. In relation to the operations of the parent charity this included compliance with the Charities Act 2011 and SORP 2019.

The risks were discussed with the audit team and we remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following:

Reviewing minutes of Board meetings, reviewing any correspondence with the Charity Commission, agreeing the financial statement disclosures to underlying supporting documentation, and made enquiries of management and officers of the parent charity. We have also reviewed the procedures in place for the reporting of any incidents to the Trustee Board including serious incident reporting of these matters as necessary with the Charity Commission.

Management override: To address the risk of management override of controls, we carried out testing of journal entries and other adjustments for appropriateness. We reviewed systems and procedures to identify potential areas of management override risk and evaluated the business rationale of significant transactions to identify large or unusual transactions. We reviewed key authorisation procedures and decision making processes for any unusual or one-off transactions.

We also assessed management bias in relation to the accounting policies adopted and in determining significant accounting estimates. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/OurWork/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-foraudit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Price Bailey LLP Chartered Accountants 3rd Floor 24 Old Bond Street, Mayfair, London WS1 4AP

Price Bailey LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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THE NATIONAL GALLERY TRUST

Consolidated Statement of Financial Activities For the year ended 31 March 2021

Consolidated Statement of Financial Activities For the year ended 31 March 2021
		Continuing	Discontinued	Continuing
		Activities	Activities	Activities
		Unrestricted	Unrestricted	Restricted	Total funds	Total funds
		Funds	Funds	Funds	2021	2020
	Note	£	£	£	£	£
Income from:
Donations and legacies		1,191,839	-	4,511,597	5,703,436	4,333,117
Other trading activities	2	-	2,723,133	-	2,723,133	9,931,124
Other income	2	-	740,431	-	740,431	-
Investments	3	1,684	103	2,244	4,031	58,278
Total income		1,193,523	3,463,667	4,513,841	9,171,031	14,322,519
Expenditure on:
Raising funds:
Commercial trading operations	2	-	(4,010,512)	-	(4,010,512)	(9,918,972)
Other	4	(719,506)	-	-	(719,506)	(1,009,494)
Charitable activities	4	(156,309)	-	(706,573)	(862,882)	(13,037,654)
Total expenditure		(875,815)	(4,010,512)	(706,573)	(5,592,900)	(23,966,120)
Net gains/ (losses) on investments	9	9,519,494	-	12,688,402	22,207,896	(3,158,911)
Net income/(expenditure) being net movement in
funds		9,837,202	(546,845)	16,495,670	25,786,028	(12,802,512)
Total funds at 1 April as previously reported		33,542,849		46,710,083	80,252,932	80,252,932
Prior year adjustment		-		-	-	-
Total funds at 1 April 2020		37,256,229	135,453	46,429,787	83,821,469	96,623,981
Total funds at 31 March 2021		47,093,431	(411,392)	62,925,457	109,607,497	83,821,469

For full details of the prior year comparatives please see note 19.

The notes on pages 13 to 23 form part of the financial statements.

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THE NATIONAL GALLERY TRUST - ENTITY ONLY

Trust Statement of Financial Activities For the year ended 31 March 2021

Note Income from: Donations and legacies Investments 3 Total income Expenditure on: Raising funds 4 Charitable activities 4 Total expenditure Net gains/ (losses) on investments 9 Net (expenditure)/income being net movement in funds Total funds at 1 April 2020 Total funds at 31 March 2021	Unrestricted Restricted Total funds Total funds funds funds 2021 2020 £ £ £ £ 1,191,839 4,511,597 5,703,436 4,333,117 1,684 2,244 3,928 70,429
	1,193,523 4,513,842 5,707,364 4,403,546
	(719,506) - (719,506) (1,009,494) (156,309) (706,573) (862,882) (13,037,654)
	(875,815) (706,573) (1,582,388) (14,047,148)
	9,519,495 12,688,402 22,207,897 (3,158,911)
	9,837,203 16,495,671 26,332,874 (12,802,513)
	37,272,728 46,429,787 83,702,515 96,505,028
	47,109,931 62,925,458 110,035,389 83,702,515

All of the above results derive from continuing activities.

For full details of the prior year comparatives please see note 19.

The notes on pages 13 to 23 form part of the financial statements.

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THE NATIONAL GALLERY TRUST

Consolidated Balance Sheet As at 31 March 2021

Note Fixed assets Intangible assets 7 Tangible assets 8 Investments 9 Current assets Stock 10 Debtors 11 Investments 9 Cash at bank and in hand Liabilities Creditors: Amounts falling due within one year 12 Net current assets Total assets less current liabilities Total net assets Funds: Unrestricted funds General funds 14 NGC trading funds 14 Restricted funds 15 Total funds	£ £ 57,885 678,895 96,033,529 96,770,309 667,328 3,493,736 1,750 12,081,082 16,243,895 (3,406,708) (3,406,708) 12,837,187 109,607,497 109,607,497 47,093,431 (411,392) 46,682,039 62,925,458 109,607,497 2021	£ £ 57,885 678,895 96,033,529 96,770,309 667,328 3,493,736 1,750 12,081,082 16,243,895 (3,406,708) (3,406,708) 12,837,187 109,607,497 109,607,497 47,093,431 (411,392) 46,682,039 62,925,458 109,607,497 2021	£ £ 79,403 302,584 74,183,195 74,565,182 1,006,468 3,906,944 2,103,159 4,990,587 12,007,158 (2,750,871) (2,750,871) 9,256,287 83,821,469 83,821,469 37,256,229 135,453 37,391,682 46,429,787 83,821,469 ( ) 2020	£ £ 79,403 302,584 74,183,195 74,565,182 1,006,468 3,906,944 2,103,159 4,990,587 12,007,158 (2,750,871) (2,750,871) 9,256,287 83,821,469 83,821,469 37,256,229 135,453 37,391,682 46,429,787 83,821,469 ( ) 2020
				83,821,469
				83,821,469
				37,391,682 46,429,787
		109,607,497		83,821,469 ( )

The notes on pages 13 to 23 form part of the financial statements.

Approved and authorised for issue by the Board of Trustees on 27 October 2021 and signed on its behalf by:

John Nelson - Chairman

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THE NATIONAL GALLERY TRUST

Trust Balance Sheet As at 31 March 2021

Note Fixed assets Investments 9 Current assets Debtors 11 Investments 9 Cash at bank and in hand Liabilities Creditors: Amounts falling due within one year 12 Net current assets Total assets less current liabilities Total net assets Funds: Unrestricted funds Designated funds 14 General funds 14 Restricted funds 15 Total funds	£ £ 96,833,629 3,008,198 1,750 11,516,174 14,526,122 (1,324,363) 13,201,759 110,035,388 110,035,388 - 47,109,930 47,109,930 62,925,458 110,035,388 2021	£ £ 96,833,629 3,008,198 1,750 11,516,174 14,526,122 (1,324,363) 13,201,759 110,035,388 110,035,388 - 47,109,930 47,109,930 62,925,458 110,035,388 2021	£ £ 74,683,295 3,173,663 2,103,159 4,345,134 9,621,956 (602,736) 9,019,220 83,702,515 83,702,515 - 37,272,727 37,272,727 46,429,787 83,702,515 2020	£ £ 74,683,295 3,173,663 2,103,159 4,345,134 9,621,956 (602,736) 9,019,220 83,702,515 83,702,515 - 37,272,727 37,272,727 46,429,787 83,702,515 2020
	- 47,109,930		- 37,272,727
		110,035,388		83,702,515
		47,109,930 62,925,458		37,272,727 46,429,787
		110,035,388		83,702,515

The notes on pages 13 to 23 form part of the financial statements.

Approved and authorised for issue by the Board of Trustees on 27 October 2021 and signed on its behalf by:

John Nelson - Chairman

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THE NATIONAL GALLERY TRUST

Consolidated Statement of Cash Flows For the year ended 31 March 2021

Note Cash flows from operating activities: Net cash (used)/provided by operating activities (i) Cash flows from investing activities: Dividends, interest and rents from investments 3 Purchase of property, plant and equipment 8 Purchase of intangible fixed assets 7 Proceeds from sale of investments 9 Purchase of investments 9 Net cash used in investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period (ii) Notes to the Statement of Cash Flows (i) Reconciliation of net income to net cash flow from operating activities Net (expenditure)/income for the reporting period (as per SoFA) Depreciation charges 7&8 Losses/(Gains) on investments 9 Dividends, interest and rents from investments 3 Loss on disposal of fixed assets 7&8 (Decrease)/increase in stocks 10 Decrease/ (increase) in debtors 11 (Decrease)/ increase in creditors and provisions 12 Net cash (used)/provided by operating activities (ii) Analysis of cash and cash equivalents Cash held with commercial banks Deposit account (90-day notice) Cash held with commercial banks (iii) Analysis of changes in net debt Cash	£ £ £ £ 5,457,949 (10,896,248) 4,031 58,657 (467,895) (161,036) (5,000) (18,900) 186,808,469 403,630,458 (186,808,469) (403,630,458) (468,864) (121,279) 4,989,085 (11,017,527) 7,093,746 18,111,273 12,082,832 7,093,746 2021 2020 £ £ 25,786,028 (12,802,512) 104,879 107,502 (21,849,903) 3,863,381 (4,031) (58,657) 12,793 18,353 339,140 (21,790) 413,207 49,215 655,837 (2,051,740) 5,457,949 (10,896,248) 2021 2020 £ £ 12,081,082 4,990,587 1,750 2,103,159 12,082,832 7,093,746 As at 1 April 2020 Cash flows As at 31 March 2021 £ £ £ 7,093,746 4,989,085 12,082,832 2020 2021	£ £ £ £ 5,457,949 (10,896,248) 4,031 58,657 (467,895) (161,036) (5,000) (18,900) 186,808,469 403,630,458 (186,808,469) (403,630,458) (468,864) (121,279) 4,989,085 (11,017,527) 7,093,746 18,111,273 12,082,832 7,093,746 2021 2020 £ £ 25,786,028 (12,802,512) 104,879 107,502 (21,849,903) 3,863,381 (4,031) (58,657) 12,793 18,353 339,140 (21,790) 413,207 49,215 655,837 (2,051,740) 5,457,949 (10,896,248) 2021 2020 £ £ 12,081,082 4,990,587 1,750 2,103,159 12,082,832 7,093,746 As at 1 April 2020 Cash flows As at 31 March 2021 £ £ £ 7,093,746 4,989,085 12,082,832 2020 2021
		(11,017,527) 18,111,273
		7,093,746
		2020 £ (12,802,512) 107,502 3,863,381 (58,657) 18,353 (21,790) 49,215 (2,051,740)
		(10,896,248)
		2020 £ 4,990,587 2,103,159
		7,093,746
		As at 31 March 2021 £ 12,082,832

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THE NATIONAL GALLERY TRUST

Notes to the Financial Statements for the year ended 31 March 2021

1. Accounting Policies

a) Accounting convention

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 (Charities SORP FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The functional and presentational currency is pounds sterling and rounding is to the nearest pound.

The Trust is a public benefit entity.

b) Going concern

Having scrutinised forecasts and cash flows in light of the impact of Covid-19, the upturn in investment performance and fundraising pipeline have satisfied Trustees of the Trust's ability to meet its obligations as they fall due in the period of twelve months following the date of approval of these financial statements. Trustees are confident that the income generated from fundraising and investing activities will be sufficient to support the Trust following the transfer of the National Gallery Company to the National Gallery. The financial statements have therefore been prepared on the going concern basis.

c) Subsidiary consolidation

National Gallery Company Limited (company number 02280277) was incorporated in the United Kingdom on 26 July 1988 as a wholly-owned subsidiary of the National Gallery Trust. Its registered office address is St Vincent House, 30 Orange Street, London, WC2H 7HH. The statement of financial activities (SoFA) and balance sheet consolidate the financial statements of the Trust and its subsidiary undertaking. The results of the subsidiary are consolidated on a line-by-line basis using the acquisition basis of accounting.

d) Income

All income is recognised in full in the Statement of Financial Activities when the Trust is legally entitled to the income, when receipt is probable and when the amount can be quantified with reasonable accuracy.

Donations are accounted for in the year of receipt. Legacies are included when the legacy has been received or before receipt if there is sufficient evidence to provide the necessary certainty that the legacy will be received.

Investment income is accounted for on an accruals basis and allocated on the basis of fund balances.

e) Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category, including an apportionment of overhead and support costs. Support and governance costs incurred by the trading subsidiary are allocated to commercial trading activities, while those incurred in the day-to-day running of the Trust are allocated based on the direct expenditure of the activity. These costs are viewed as expenses of the Trust's unrestricted activities, as are the investment management costs incurred by the Trust. Grants payable are recognised when the grant is communicated to the recipient. Governance costs are the costs associated with the governance arrangements of the Trust which relate to the general running of the charity. These costs include the costs of statutory audit, legal advice for trustees and costs associated with constitutional and statutory requirements.

f) Investments

The investments include shares and loan notes in National Gallery Company Limited. The charity has taken advantage of the Charity SORP to record its investment and loan notes in the accounts at cost as allowed for under the concessionary loans accounting treatment. Other investments are stated at fair value at the balance sheet date. The SoFA includes the net gains and losses arising on revaluation and disposals throughout the year.

g) Intangible fixed assets

Computer software is capitalised as an intangible asset and amortised over the period during which the Company is expected to benefit. This period is between three and five years.

h) Tangible fixed assets

Fixed assets are stated at cost less accumulated depreciation. Provision is made for depreciation at rates designed to write off the cost of fixed assets less their estimated residual value on a reducing basis over their estimated useful lives. Assets are depreciated over their remaining lives from the date of acquisition:

Motor vehicles 25%

Fixtures, fittings, tools and equipment 20% - 33%

i) Stocks

Stocks are stated at the lower of cost and net realisable value. Stock is regularly reviewed and provision is made for obsolete, slow-moving or defective items where appropriate. In general, cost is determined on a first-in first-out basis; in the case of book production, costs includes all direct expenditure in bringing books to their present location and condition. Overhead expenses are not included as, in the Trustees' opinion, the amount to be included would not be material.

j) Debtors

The measurement of debtors is based on the anticipated recoverable value of cash or services owed to the group at the end of the year.

k) Current Asset Investments

Current asset investments comprise deposits held for investment purposes with a notice period of thirty days or more.

13

THE NATIONAL GALLERY TRUST

Notes to the Financial Statements for the year ended 31 March 2021 (continued)

1. Accounting Policies (continued)

l) Cash at bank and in hand

Cash at bank and cash 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.

m) 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.

n) Pensions

NGC operates a Group Personal Pension Plan (defined contribution). The amount charged to the SoFA in respect of pension costs is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments on the balance sheet.

o) Taxation

The National Gallery Trust is a registered charity and is therefore potentially exempt from taxation of its income and gains to the extent that they fall within Part 10 of the Income tax Act 2007 and section 256 of the Taxation of Chargeable Gains Act 1992. No tax charge has arisen in its subsidiary since it gifts all taxable profits to the National Gallery Trust.

There is no tax charge for the year nor year-end tax debtor or creditor (2020: £nil). No provision is required for deferred tax (2020: £nil). The taxation recoverable detailed in note 11 is Gift Aid on donations.

p) Foreign currencies

Transactions denominated in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the year end. All exchange differences are included in the SoFA.

q) Unrestricted funds

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the objectives of the Trust and which have not been designated for other purposes.

Designated funds are unrestricted funds which have been applied or reserved by the trustees for a specific purpose. The aim and use of each designated fund is set out in the notes to the accounts (see note 14).

r) Restricted funds

Restricted funds are those which are to be used in accordance with specific restrictions imposed by the donors. The purpose for which restricted

funds are held is analysed in the notes to the accounts (see note 15).

s) Operating leases

The rentals payable under operating leases are charged to the SoFA on a straight line basis over the shorter of the lease term and their useful lives even if the payments are not made on such a basis.

t) Statement of Cash Flows

The Trust has taken the exemption available in FRS 102 1.12 for parent entities not to prepare a charity only Statement of Cash Flows.

u) Financial Instruments

Financial assets and financial liabilities are recognised when the Trust becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a finance transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

The Trust 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 their fair value as at the balance sheet date. All financial instruments of the charity are measured at cost with the exception of investments in the charity’s portfolio, which are measured at fair value as at the balance sheet date using the closing market value. The value of investments as well as their original cost is stated in note 9. Financial assets include investments in the portfolio, the bank balances, trade debtors, accrued income and other debtors but exclude prepayments and taxation. Financial liabilities include trade creditors, other creditors, accruals and deferred income but exclude social security and other taxes due.

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Cash at bank and cash 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. 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.

v) Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity's accounting policies, which are described in note 1, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The Trustees do not consider there are any critical judgements or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed above.

14

THE NATIONAL GALLERY TRUST

Notes to the Financial Statements for the year ended 31 March 2021 (continued)

2. Net income from trading activities of subsidiary

During the year, the Trust owned a trading subsidiary, National Gallery Company Limited (NGC), which is incorporated in the UK. The company publishes and retails publications and merchandise based upon the National Gallery's permanent collection and temporary exhibitions. The National Gallery Company Limited also manages the catering outlets within the National Gallery. The company makes Gift Aid donations of its taxable profits where possible, and pays interest on loan notes, to the National Gallery Trust. A summary of its trading results is shown below. Audited financial statements are filed with the Registrar of Companies. On 1 April 2021 the full share capital of the company was transferred to the National Gallery (NG), giving NG full ownership of NGC.

Profit and Loss Account

Profit and Loss Account
Turnover from trading operations Cost of sales Gross profit Distribution costs Administration costs Other operating income Operating (loss)/profit Interest payable and similar charges Interest receivable and similar income (Loss)/profit before taxation Tax on profit on ordinary activities (Loss)/profit after taxation	2021 £ 2,723,133 (864,767) 1,858,366 (49,426) (3,096,319) 740,431 (546,948) - 103 (546,845) - (546,845)	2020 £ 9,931,124 (4,433,902)
		5,497,222 (762,109) (4,722,962) -
		12,151 (1,893) 2,972
		13,230 -
		13,230

The above figures have been extracted from the audited financial statements. The subsidiary's net assets totalled £372,209 at 31 March 2021 (2020: £619,054).

3. Investment income

NGC loan interest NGC Gift Aid donation Bank interest	Consolidated Trust Consolidated Trust £ £ £ £ - - - 1,514 - - - 13,230 4,031 3,928 58,657 55,685 2021 2020
	4,031 3,928 58,657 70,429

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THE NATIONAL GALLERY TRUST

Notes to the Financial Statements for the year ended 31 March 2021 (continued)

4. Expenditure

Raising funds Investment management fees Charitable activities Raising funds Investment management fees Charitable activities Grants to the National Gallery from restricted funds: Grants for Curatorial posts Grants towards frame acquisitions and the framing department in general Grants towards the exhibition programme Grants for Conservation posts Grants towards Orazio Gentileschi's_The Finding of Moses_ Grants for Education activities Grants for building works Grant to the Research Centre Grant for income generation strategy initiatives Breakdown of support costs: Accounting and administration services Professional and legal advice Fees payable to the parent charity's auditor for the audit of the parent charity's consolidated financial statements Other	Direct Costs £ 330,112 342,442	Support Costs Total £ £ 23,046 353,158 23,907 366,348 2021
	672,553 806,573	46,953 719,506 56,309 862,882
	1,479,126	103,261 1,582,388
	Direct Costs £ 349,297 654,228	Support Costs Total £ £ 2,078 351,375 3,892 658,119 2020
	1,003,524 12,960,551	5,969 1,009,494 77,103 13,037,654
	13,964,076	83,072 14,047,148
		Total Total 2021 2020 £ £ 283,236 250,922 18,366 25,000 44,918 125,155 75,287 60,000 37,208 5,025,000 14,776 181,132 200,000 7,010,861 32,782 9,512 55,549
		706,573 12,743,131
		Total Total 2021 2020 £ £ 40,292 40,862 16,129 815 8,073 7,684 38,767 33,711
		103,261 83,072

Support costs are allocated in proportion to the direct costs in each area.

The Trust has no employees (2020: nil). The National Gallery provides employees for accounting and other services for which the Trust is charged on an arm's length basis. No Trustees have received any remuneration or reimbursement of expenses during this or the preceding year. Staff costs for the subsidiary are shown in note 6. No staff in the subsidiary are considered key management personnel of the Trust.

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THE NATIONAL GALLERY TRUST

Notes to the Financial Statements for the year ended 31 March 2021 (continued)

5. Net movement in funds

5. Net movement in funds
	2021	2020
	£	£
Net movement in funds is stated after charging:
Auditor's remuneration
Fees payable to the parent charity's auditor for the audit of the parent
charity's annual financial statements	8,073	7,684
Fees payable to the charity's auditor for other services to the Group:
The audit of the subsidiary's financial statements	10,650	9,825
Depreciation of fixed assets	78,361	69,974
Amortisation of assets - owned	26,518	37,524
Loss on disposal of fixed assets	12,793	18,353
Operating leases - land and buildings	2,018	171,850

6. Staff costs (including directors)

All staff costs were incurred by the subsidiary company. a) Employment costs Wages and salaries Social security costs Pension costs The average number of persons employed by the subsidiary company: Full time or full time equivalent	2021 2020 £ £ 2,151,037 2,565,484 196,665 246,548 95,605 112,540
	2,443,307 2,924,572
	63 95

b) Higher paid staff of subsidiary

Number of employees whose emoluments for the year fell within the following bands:

	2021		2020
£60,000 - £69,999		-		1
£70,000 - £79,999		3		2
£80,000 - £89,999		-		1
£100,000 - £109,999		1		-
£110,000 - £119,999		-		1

17

THE NATIONAL GALLERY TRUST

Notes to the Financial Statements for the year ended 31 March 2021 (continued)

7. Intangible fixed assets

All intangible fixed assets are held by the subsidiary company.

Cost As at 1 April 2020 Additions Disposals As at 31 March 2021 Depreciation As at 1 April 2020 Charge for Year Disposals As at 31 March 2021 Net book value at 31 March 2021 Net book value at 31 March 2020	Total £ 376,174 5,000 -
	381,174
	296,771 26,518
	323,289
	57,885
	79,403

8. Tangible fixed assets

All tangible fixed assets are held by the subsidiary company.

All tangible fixed assets are held by the subsidiary company.
Cost As at 1 April 2020 Additions Disposals As at 31 March 2021 Depreciation As at 1 April 2020 Charge for Year Disposals As at 31 March 2021 Net book value at 31 March 2021 Net book value at 31 March 2020	Fixtures, fittings, tools and equipment £ 1,016,425 467,895 (90,591)
	1,393,729
	713,841 78,361 (77,368)
	714,834
	678,895
	302,584

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THE NATIONAL GALLERY TRUST

Notes to the Financial Statements for the year ended 31 March 2021 (continued)

9. Investments

The investments of the National Gallery Trust include the entire issued share capital of the trading subsidiary, National Gallery Company Ltd. The National Gallery Company Ltd is incorporated in England and its principal trade is retailing and publishing.

Other investments which are shown at market value comprise £96 million invested with Partners Capital LLP.

Investments also include deposits held in money market accounts.

Fixed asset investments NGC - issued share capital Other Current asset investments Coutts 90-day notice a/c Total investments	Consolidated Trust Consolidated Trust £ £ £ £ - 800,100 - 500,100 96,033,529 96,033,529 74,183,195 74,183,195 2021 2020
	96,033,529 96,833,629 74,183,195 74,683,295 1,750 1,750 2,103,159 2,103,159
	96,035,279 96,835,379 76,286,354 76,786,454

The charity has taken advantage of the SORP to recognise its trading subsidiary's shares and loans at cost in accordance with the accounting policy.

Movement in investments:

Balance at 31 March 2020 Purchase of fixed asset investments Purchase of current asset investments Disposal of current asset investments Disposals of fixed asset investments Management fees charged to SoFA (Loss)/Gain on revaluation Balance at 31 March 2021	Consolidated Trust Consolidated Trust £ £ £ £ 76,286,354 76,786,454 80,136,083 80,636,183 186,808,469 187,108,469 403,630,458 403,630,458 - - - - (2,101,409) (2,101,409) 13,652 13,652 (186,808,469) (186,808,469) (403,630,458) (403,630,458) (357,562) (357,562) (704,470) (704,470) 22,207,896 22,207,896 (3,158,911) (3,158,911) 2021 2020
	96,035,279 96,835,379 76,286,354 76,786,454

Income generated by the Partners Capital funds is reinvested and used to purchase additional asset investments.

10. Stock

All stock is held by the subsidiary company. Work in progress Finished goods and stocks held for resale	2021 2020 £ £ 73,781 97,400 593,547 909,068
	667,328 1,006,468

There is no material difference between the balance sheet value of stocks and their replacement cost.

19

THE NATIONAL GALLERY TRUST

Notes to the Financial Statements for the year ended 31 March 2021 (continued)

11. Debtors

Trade debtors Other debtors Amount due from National Gallery Amount due from the NGT Foundation Amounts due from NGC Prepayments and accrued income Taxation recoverable	Consolidated Trust Consolidated Trust £ £ £ £ 190,345 700 372,038 700 25,153 25,000 9,503 215 86,071 - 31,968 - 2,000,000 2,000,000 2,500,000 2,500,000 - - - 13,230 1,045,969 836,300 836,803 502,886 146,198 146,198 156,632 156,632 2021 2020
	3,493,736 3,008,198 3,906,944 3,173,663

12. Creditors

Amounts falling due within one year: Trade creditors Amounts due to the National Gallery Other tax and social security Other creditors Accruals and deferred income	Consolidated Trust Consolidated Trust £ £ £ £ 511,292 - 657,461 - 836,216 - 793,264 - 154,702 - 187,727 - 122,088 - 60,059 8,081 1,782,410 1,324,363 1,052,360 594,655 2021 2020
	3,406,708 1,324,363 2,750,871 602,736

There are no amounts falling due after more than one year (2020: nil).

13. Operating leases

As at 31 March 2021 the National Gallery Company Limited had the following total minimum lease payments under non-cancellable operating leases:

Within 1 year Between 1 and 5 years After 5 years	2021 Land and Buildings 2020 Land and Buildings £ £ 333 83,500 - - - -
	333 83,500

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THE NATIONAL GALLERY TRUST

Notes to the Financial Statements for the year ended 31 March 2021 (continued)

14. Unrestricted funds

14. Unrestricted funds
Consolidated General funds (non-trading) NGC trading funds NGT Entity only General funds (non-trading)	Balance at 1 April 2020 Income Transfers Expenditure Investment gain/(loss) Balance at 31 March 2021 £ £ £ £ £ £ 37,256,229 1,193,523 (875,815) 9,519,494 47,093,431 135,453 3,463,667 (4,010,512) - (411,392) Movement in resources
	37,391,682 4,657,190 - (4,886,327) 9,519,494 46,682,039
	37,272,727 1,193,523 - (875,815) 9,519,495 47,109,930
	37,272,727 1,193,523 - (875,815) 9,519,495 47,109,930

In past years, the Trust has funded specific running costs of the National Gallery. The designated fund for National Gallery specific running costs represents the Trustees' intention to continue to provide such funding.

Prior year unrestricted funds note

Consolidated General funds (non-trading) NGC trading funds NGT Entity only General funds (non-trading)	Restated balance at 1 April 2019 Income Transfers Expenditure Investment gain Balance at 31 March 2020 £ £ £ £ £ £ 38,720,559 1,231,227 15,123 (1,304,017) (1,406,664) 37,256,229 135,453 9,934,096 (15,123) (9,918,973) - 135,453 Movement in resources
	38,856,012 11,165,323 - (11,222,990) (1,406,664) 37,391,682
	38,737,059 1,246,350 - (1,304,017) (1,406,664) 37,272,727
	38,737,059 1,246,350 - (1,304,017) (1,406,664) 37,272,727

15. Restricted funds

Grants from NGTF restricted to NG Picture purchase Exhibitions Education Frames Curatorial Library Buildings Conservation Gallery administration and strategy NG fund

Balance at 1 April 2020 Income Transfers Expenditure Investment gain/(loss) Balance at 31 March 2021 £ £ £ £ £ £ 30,414,899 2,001,448 - - 8,187,415 40,603,763 330,495 873,560 - (37,208) 294,711 1,461,558 39,921 752,033 - (44,918) 188,679 935,715 82,436 121,008 - (14,776) 47,652 236,321 - 74,703 - (18,366) 14,229 70,565 1,066,181 285,484 - (283,236) 269,854 1,338,283 32,785 12,403 - (32,782) 3,133 15,539 1,132,262 330,056 - (200,000) 318,825 1,581,143 2,281,453 62,653 - (75,287) 573,037 2,841,855 48,213 2 - - 12,178 60,393 11,001,143 491 - - 2,778,689 13,780,323 Movement in resources

46,429,788 4,513,842 - (706,573) 12,688,402 62,925,458

The restricted funds above are held for the benefit of the National Gallery. The NG fund can be put towards any aspect of the work of the National Gallery subject to the National Gallery Trust Trustees approving a grant application from the National Gallery. The other funds are more specific and their titles indicate what they can support.

21

THE NATIONAL GALLERY TRUST

Notes to the Financial Statements for the year ended 31 March 2021 (continued)

15. Restricted funds (continued) Prior year restricted funds note

Grants from NGTF restricted to NG Picture purchase Exhibitions Education Frames Curatorial Library Buildings Conservation NG fund Gallery administration and strategy

Balance at 1 April 2019 Income Transfers Expenditure Investment gain Balance at 31 March 2020 £ £ £ £ £ £ 34,010,720 2,520,784 (5,000,000) (1,147,850) 30,383,654 335,401 63,816 (25,000) (12,473) 361,744 96,804 69,777 (125,155) (1,506) 39,920 141,456 120,034 (181,133) (2,922) 77,435 25,000 (25,000) 1,162,781 194,560 (250,922) (40,238) 1,066,182 9,511 34,022 (9,512) (1,237) 32,784 5,153,828 32,024 (4,010,860) (42,731) 1,132,260 2,387,928 39,625 (60,000) (86,101) 2,281,451 55,550 50,033 (55,549) (1,820) 48,214 14,413,990 7,522 (3,000,000) (415,368) 11,006,144 Movement in resources

57,767,969 3,157,197 (12,743,131) (1,752,247) 46,429,787

16. Analysis of consolidated net assets between funds

Restricted funds Grants from NGTF restricted to NG Picture purchase Exhibitions Education Frames Curatorial Library Buildings Conservation Development Unrestricted funds Total funds NG fund for NG purposes	Fixed assets Current assets Current liabilities Total 2021 Fixed assets Current assets Current liabilities Total 2020 £ £ £ £ £ £ £ £ 35,820,680 6,012,871 (1,261,033) 40,572,517 27,028,430 4,352,361 (997,137) 30,383,654 1,317,970 221,235 (46,397) 1,492,806 321,797 51,819 (11,871) 361,744 826,124 138,673 (29,082) 935,714 35,512 5,718 (1,309) 39,920 204,227 34,282 (7,190) 231,320 68,884 11,092 (2,541) 77,436 62,301 10,458 (2,193) 70,565 1,181,544 198,334 (41,595) 1,338,283 948,444 152,727 (34,990) 1,066,181 13,719 2,303 (483) 15,539 29,164 4,696 (1,076) 32,784 1,395,959 234,326 (49,143) 1,581,142 1,007,226 162,193 (37,159) 1,132,260 2,509,017 421,164 (88,328) 2,841,855 2,029,514 326,811 (74,873) 2,281,452 53,321 8,950 (1,877) 60,395 42,891 6,907 (1,582) 48,216 12,170,792 2,042,993 (428,461) 13,785,324 9,790,749 1,576,595 (361,201) 11,006,142 2021 2020
	55,555,654 9,325,590 (1,955,784) 62,925,460 41,302,610 6,650,919 (1,523,742) 46,429,789 41,214,657 6,918,306 (1,450,923) 46,682,039 33,262,571 5,356,239 (1,227,128) 37,391,682
	96,770,311 16,243,895 (3,406,708) 109,607,499 74,565,181 12,007,158 (2,750,871) 83,821,471

17. Capital commitments

As at 31 March 2021 the company had capital commitments of £nil (2020: £nil).

18. Related party transactions

Details of related party transactions for the year ended 31 March 2021 are shown below. In all cases, a majority of trustees are independent of the respective related party. Comparative balances for the prior years are shown in italics against each related party.

							Amounts
							expected from or
					Value of	Value of	due to be paid to
					income in	expenditure in	related party as at
Related Party	Nature of relationship			Year	year	year	year end	Nature of transaction
					£	£	£
NGT Foundation	One trustees of the Trust	(David		2020-21	2,001,647	-	2,001,647	£2.0 million grant due to be received; and rent and service charge paid
	Landau), is also a trustee	of	the					by subsidiary to the related party.
	NGT Foundation.
				2019-20	2,500,000	222,633	2,547,135
The National	Lord Hall and Douglas Gurr (until			2020-21	500,588	1,132,050	(1,085,908)	Grant paid by the National Gallery to the Trust and services provided by
Gallery	30 November 2020), Trustees, are							the subsidiary to the National Gallery; grants paid by the Trust to the
	or were also Trustees	of	the					National Gallery; rent charged to the subsidiary for shop space within
	related party.							the National Gallery; and annual accounting fee paid by the Trust to the
								National Gallery.
				2019-20	604,582	14,991,283	(1,198,655)

Grant paid by the National Gallery to the Trust and services provided by the subsidiary to the National Gallery; grants paid by the Trust to the National Gallery; rent charged to the subsidiary for shop space within the National Gallery; and annual accounting fee paid by the Trust to the National Gallery.

Trustees received neither remuneration (2020: nil) or expenses (2020: nil)

There were no other related party transactions (2020: nil).

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THE NATIONAL GALLERY TRUST

Notes to the Financial Statements for the year ended 31 March 2021 (continued)

19. Prior year SoFA (restated for discontinued activities) Prior Year Consolidated Statement of Financial Activities For the year ended 31 March 2020

Income from: Donations and legacies Other trading activities Investments Total income Expenditure on: Raising funds: Commercial trading operations Other Charitable activities Total expenditure Net losses on investments Net Income/(Expenditure) Transfers Net movements in funds Total funds at 1 April Total funds at 31 March	Continuing Activities Discontinued Activities Continuing Activities Unrestricted Unrestricted Restricted Total funds Funds Funds Funds 2020 £ £ £ 1,207,649 - 3,125,468 4,333,117 - 9,931,124 - 9,931,124 23,578 2,972 31,728 58,278
	1,231,227 9,934,096 3,157,196 14,322,519
	- (9,918,972) - (9,918,972) (1,009,494) - - (1,009,494) (294,523) - (12,743,131) (13,037,654)
	(1,304,017) (9,918,972) (12,743,131) (23,966,120)
	(1,406,664) - (1,752,247) (3,158,911)
	(1,479,454) 15,124 (11,338,182) (12,802,512)
	15,124 (15,124) - -
	(1,464,330) - (11,338,182) (12,802,512)
	38,720,559 135,453 57,767,969 96,623,981
	37,120,776 135,453 46,429,787 83,821,469

Prior Year Statement of Financial Activities - Entity For the year ended 31 March 2020

Income from: Donations and legacies Investments Total income Expenditure on: Raising funds Charitable activities Total expenditure Net losses on investments Net movement in funds Total funds at 1 April Total funds at 31 March	Unrestricted Restricted Total funds funds funds 2020 £ £ £ 1,207,649 3,125,468 4,333,117 38,701 31,728 70,429
	1,246,350 3,157,196 4,403,546
	(1,009,494) - (1,009,494) (294,523) (12,743,131) (13,037,654)
	(1,304,017) (12,743,131) (14,047,148)
	(1,406,664) (1,752,247) (3,158,911)
	(1,464,331) (11,338,182) (12,802,513)
	38,737,059 57,767,969 96,505,028
	37,272,728 46,429,787 83,702,515

20. Post balance sheet events

On 1 April 2021, the National Gallery Trust gifted 800,100 ordinary shares in the National Gallery Company Limited to the National Gallery, giving the Gallery 100% ownership of the company.

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