## **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 

1 



## **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). 

2 



## **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. 

3 



## **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). 

4 



## **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 

5 



## **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. 

6 



## **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. 

7 



## **THE NATIONAL GALLERY TRUST** 

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

|**Consolidated Statement of Financial Activities**<br>**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. 

8 



## **THE NATIONAL GALLERY TRUST - ENTITY ONLY** 

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

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

9 



## **THE NATIONAL GALLERY TRUST** 

**Consolidated Balance Sheet As at 31 March 2021** 

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



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 

10 



## **THE NATIONAL GALLERY TRUST** 

## **Trust Balance Sheet As at 31 March 2021** 

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

11 



## **THE NATIONAL GALLERY TRUST** 

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

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



12 



**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<br>Cost of sales<br>**Gross profit**<br>Distribution costs<br>Administration costs<br>Other operating income<br>**Operating (loss)/profit**<br>Interest payable and similar charges<br>Interest receivable and similar income<br>**(Loss)/profit before taxation**<br>Tax on profit on ordinary activities<br>**(Loss)/profit after taxation**|**2021**<br>**£**<br>2,723,133<br>(864,767)<br>1,858,366<br>(49,426)<br>(3,096,319)<br>740,431<br>(546,948)<br>-<br>103<br>(546,845)<br>-<br>(546,845)|**2020**<br>**£**<br>9,931,124<br>(4,433,902)|
|||5,497,222<br>(762,109)<br>(4,722,962)<br>-|
|||12,151<br>(1,893)<br>2,972|
|||13,230<br>-|
|||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<br>NGC Gift Aid donation<br>Bank interest|**Consolidated**<br>**Trust**<br>**Consolidated**<br>**Trust**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>-<br>-<br>1,514<br>-<br>-<br>-<br>13,230<br>4,031<br>3,928<br>58,657<br>55,685<br>**2021**<br>**2020**|
|---|---|
||4,031<br>3,928<br>58,657<br>70,429|



15 



## **THE NATIONAL GALLERY TRUST** 

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

## **4.  Expenditure** 

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

16 



## **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.<br>_a) Employment costs_<br>Wages and salaries<br>Social security costs<br>Pension costs<br>The average number of persons employed by the subsidiary company:<br>Full time or full time equivalent|**2021**<br>**2020**<br>**£**<br>**£**<br>2,151,037<br>2,565,484<br>196,665<br>246,548<br>95,605<br>112,540|
|---|---|
||2,443,307<br>2,924,572|
||63<br>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<br>As at 1 April 2020<br>Additions<br>Disposals<br>As at 31 March 2021<br>Depreciation<br>As at 1 April 2020<br>Charge for Year<br>Disposals<br>As at 31 March 2021<br>Net book value at 31 March 2021<br>Net book value at 31 March 2020|**Total**<br>**£**<br>376,174<br>5,000<br>-|
|---|---|
||381,174|
||296,771<br>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<br>As at 1 April 2020<br>Additions<br>Disposals<br>As at 31 March 2021<br>Depreciation<br>As at 1 April 2020<br>Charge for Year<br>Disposals<br>As at 31 March 2021<br>Net book value at 31 March 2021<br>Net book value at 31 March 2020|**Fixtures, fittings,**<br>**tools and**<br>**equipment**<br>**£**<br>1,016,425<br>467,895<br>(90,591)|
||1,393,729|
||713,841<br>78,361<br>(77,368)|
||714,834|
||678,895|
||302,584|



18 



**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<br>NGC - issued share capital<br>Other<br>Current asset investments<br>Coutts 90-day notice a/c<br>Total investments|**Consolidated**<br>**Trust**<br>**Consolidated**<br>**Trust**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>800,100<br>-<br>500,100<br>96,033,529<br>96,033,529<br>74,183,195<br>74,183,195<br>**2021**<br>**2020**|
|---|---|
||96,033,529<br>96,833,629<br>74,183,195<br>74,683,295<br>1,750<br>1,750<br>2,103,159<br>2,103,159|
||96,035,279<br>96,835,379<br>76,286,354<br>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<br>Purchase of fixed asset investments<br>Purchase of current asset investments<br>Disposal of current asset investments<br>Disposals of fixed asset investments<br>Management fees charged to SoFA<br>(Loss)/Gain on revaluation<br>Balance at 31 March 2021|**Consolidated**<br>**Trust**<br>**Consolidated**<br>**Trust**<br>**£**<br>**£**<br>**£**<br>**£**<br>76,286,354<br>76,786,454<br>80,136,083<br>80,636,183<br>186,808,469<br>187,108,469<br>403,630,458<br>403,630,458<br>-<br>-<br>-<br>-<br>(2,101,409)<br>(2,101,409)<br>13,652<br>13,652<br>(186,808,469)<br>(186,808,469)<br>(403,630,458)<br>(403,630,458)<br>(357,562)<br>(357,562)<br>(704,470)<br>(704,470)<br>22,207,896<br>22,207,896<br>(3,158,911)<br>(3,158,911)<br>**2021**<br>**2020**|
|---|---|
||96,035,279<br>96,835,379<br>76,286,354<br>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.<br>Work in progress<br>Finished goods and stocks held for resale|**2021**<br>**2020**<br>**£**<br>**£**<br>73,781<br>97,400<br>593,547<br>909,068|
|---|---|
||667,328<br>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<br>Other debtors<br>Amount due from National Gallery<br>Amount due from the NGT Foundation<br>Amounts due from NGC<br>Prepayments and accrued income<br>Taxation recoverable|**Consolidated**<br>**Trust**<br>**Consolidated**<br>**Trust**<br>**£**<br>**£**<br>**£**<br>**£**<br>190,345<br>700<br>372,038<br>700<br>25,153<br>25,000<br>9,503<br>215<br>86,071<br>-<br>31,968<br>-<br>2,000,000<br>2,000,000<br>2,500,000<br>2,500,000<br>-<br>-<br>-<br>13,230<br>1,045,969<br>836,300<br>836,803<br>502,886<br>146,198<br>146,198<br>156,632<br>156,632<br>**2021**<br>**2020**|
|---|---|
||3,493,736<br>3,008,198<br>3,906,944<br>3,173,663|



## **12.  Creditors** 

|Amounts falling due within one year:<br>Trade creditors<br>Amounts due to the National Gallery<br>Other tax and social security<br>Other creditors<br>Accruals and deferred income|**Consolidated**<br>**Trust**<br>**Consolidated**<br>**Trust**<br>**£**<br>**£**<br>**£**<br>**£**<br>511,292<br>-<br>657,461<br>-<br>836,216<br>-<br>793,264<br>-<br>154,702<br>-<br>187,727<br>-<br>122,088<br>-<br>60,059<br>8,081<br>1,782,410<br>1,324,363<br>1,052,360<br>594,655<br>**2021**<br>**2020**|
|---|---|
||3,406,708<br>1,324,363<br>2,750,871<br>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<br>Between 1 and 5 years<br>After 5 years|**2021**<br>**Land and**<br>**Buildings**<br>**2020**<br>**Land and**<br>**Buildings**<br>**£**<br>**£**<br>333<br>83,500<br>-<br>-<br>-<br>-|
|---|---|
||333<br>83,500|



20 



## **THE NATIONAL GALLERY TRUST** 

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

## **14. Unrestricted funds** 

|**14. Unrestricted funds**||
|---|---|
|**_Consolidated_**<br>General funds (non-trading)<br>NGC trading funds<br>**_NGT Entity only_**<br>General funds (non-trading)|**Balance at 1**<br>**April 2020**<br>**Income**<br>**Transfers**<br>**Expenditure**<br>**Investment**<br>**gain/(loss)**<br>**Balance at 31**<br>**March 2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>37,256,229<br>1,193,523<br>(875,815)<br>9,519,494<br>47,093,431<br>135,453<br>3,463,667<br>(4,010,512)<br>-<br>(411,392)<br>**Movement in resources**|
||37,391,682<br>4,657,190<br>-<br>(4,886,327)<br>9,519,494<br>46,682,039|
||37,272,727<br>1,193,523<br>-<br>(875,815)<br>9,519,495<br>47,109,930|
||37,272,727<br>1,193,523<br>-<br>(875,815)<br>9,519,495<br>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_**<br>General funds (non-trading)<br>NGC trading funds<br>**_NGT Entity only_**<br>General funds (non-trading)|**Restated**<br>**balance at 1**<br>**April 2019**<br>**Income**<br>**Transfers**<br>**Expenditure**<br>**Investment**<br>**gain**<br>**Balance at 31**<br>**March 2020**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>38,720,559<br>1,231,227<br>15,123<br>(1,304,017)<br>(1,406,664)<br>37,256,229<br>135,453<br>9,934,096<br>(15,123)<br>(9,918,973)<br>-<br>135,453<br>**Movement in resources**|
|---|---|
||38,856,012<br>11,165,323<br>-<br>(11,222,990)<br>(1,406,664)<br>37,391,682|
||38,737,059<br>1,246,350<br>-<br>(1,304,017)<br>(1,406,664)<br>37,272,727|
||38,737,059<br>1,246,350<br>-<br>(1,304,017)<br>(1,406,664)<br>37,272,727|



## **15.  Restricted funds** 

|Grants from NGTF restricted to NG<br>Picture purchase<br>Exhibitions<br>Education<br>Frames<br>Curatorial<br>Library<br>Buildings<br>Conservation<br>Gallery administration and strategy<br>NG fund|**Balance at 1**<br>**April 2020**<br>**Income**<br>**Transfers**<br>**Expenditure**<br>**Investment**<br>**gain/(loss)**<br>**Balance at 31**<br>**March 2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>30,414,899<br>2,001,448<br>-<br>-<br>8,187,415<br>40,603,763<br>330,495<br>873,560<br>-<br>(37,208)<br>294,711<br>1,461,558<br>39,921<br>752,033<br>-<br>(44,918)<br>188,679<br>935,715<br>82,436<br>121,008<br>-<br>(14,776)<br>47,652<br>236,321<br>-<br>74,703<br>-<br>(18,366)<br>14,229<br>70,565<br>1,066,181<br>285,484<br>-<br>(283,236)<br>269,854<br>1,338,283<br>32,785<br>12,403<br>-<br>(32,782)<br>3,133<br>15,539<br>1,132,262<br>330,056<br>-<br>(200,000)<br>318,825<br>1,581,143<br>2,281,453<br>62,653<br>-<br>(75,287)<br>573,037<br>2,841,855<br>48,213<br>2<br>-<br>-<br>12,178<br>60,393<br>11,001,143<br>491<br>-<br>-<br>2,778,689<br>13,780,323<br>**Movement in resources**|
|---|---|
||46,429,788<br>4,513,842<br>-<br>(706,573)<br>12,688,402<br>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<br>Picture purchase<br>Exhibitions<br>Education<br>Frames<br>Curatorial<br>Library<br>Buildings<br>Conservation<br>NG fund<br>Gallery administration and strategy|**Balance at 1**<br>**April 2019**<br>**Income**<br>**Transfers**<br>**Expenditure**<br>**Investment**<br>**gain**<br>**Balance at 31**<br>**March 2020**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>34,010,720<br>2,520,784<br>(5,000,000)<br>(1,147,850)<br>30,383,654<br>335,401<br>63,816<br>(25,000)<br>(12,473)<br>361,744<br>96,804<br>69,777<br>(125,155)<br>(1,506)<br>39,920<br>141,456<br>120,034<br>(181,133)<br>(2,922)<br>77,435<br>25,000<br>(25,000)<br>1,162,781<br>194,560<br>(250,922)<br>(40,238)<br>1,066,182<br>9,511<br>34,022<br>(9,512)<br>(1,237)<br>32,784<br>5,153,828<br>32,024<br>(4,010,860)<br>(42,731)<br>1,132,260<br>2,387,928<br>39,625<br>(60,000)<br>(86,101)<br>2,281,451<br>55,550<br>50,033<br>(55,549)<br>(1,820)<br>48,214<br>14,413,990<br>7,522<br>(3,000,000)<br>(415,368)<br>11,006,144<br>**Movement in resources**|
|---|---|
||57,767,969<br>3,157,197<br>(12,743,131)<br>(1,752,247)<br>46,429,787|



## **16.  Analysis of consolidated net assets between funds** 

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

22 



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



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

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

23