## **RUSSELL-COTES ART GALLERY AND MUSEUM** 

**ANNUAL REPORT AND STATEMENT OF ACCOUNTS YEAR ENDED 31 MARCH 2022** 

**Charity number 306288** 



**CONTENTS Page** Report of the Trustee 3 - 8 Report of the Independent Auditor 9 - 10 Statement of Financial Activities (incorporating Income and Expenditure Account) 11 Balance sheet 12 Notes to the Accounts 13 - 20 

Russell-Cotes Art Gallery and Museum Charitable Trust - Year Ended 31 March 2022               2 



## **Report of the Trustee** 

The trustee is pleased to present its report together with the financial statements of the charity for the year ended 31st March 2022. 

## **Reference and administrative details** 

Registered name: Russell-Cotes Art Gallery and Museum Charity number: 306288 Principal Office: Russell-Cotes Road, East Cliff, Bournemouth, BH1 3AA Trustee: BCP Council - Cabinet members https://democracy.bcpcouncil.gov.uk/mgCommitteeDetails.aspx?ID=285 The current holder of the Meyrick Baronetcy - Sir George Meyrick _(entitlement not taken up)_ Auditors: Hixsons, 24 Cecil Avenue, Bournemouth BH8 9EJ 

As of 1st April 2019 Bournemouth Borough Council became part of a new authority Bournemouth, Christchurch & Poole Council (BCP) and the policy of donation has passed to the new authority. This is enshrined in the following two UK Statutory Instruments: - 2018 No. 648 The Bournemouth, Dorset and Poole (Structural Changes) Order 2018 

- 2008 No. 2176 The Local Government (Structural Changes)(Transfer of Functions, Property, Rights and Liabilities) Regulations 2008. 

The trustee is pleased to present these formal statements of account. This recognises the importance the art gallery and museum has as a key cultural community resource and flagship visitor attraction for the Bournemouth conurbation and region. The trustee has taken the Charity Commission's guidance on public benefit into consideration. It formalises the accounting treatment of the Trust as a separate entity with its own transactions distinct from those of BCP Council (The Council). 

## **Governing Document** 

The Trust was created under Indentures of 1908, 1918 and 1920 between the County Borough of Bournemouth Corporation and Sir Merton and Lady Russell-Cotes. In 1962 a charity was formed to take over responsibility for the house and contents. Further information is provided in the notes to the accounts – fixed assets. 

Under the Indentures, the house and its collection were gifted to the Council for the purpose of forming an art gallery and museum for the use, benefit and enjoyment of the residents of and visitors to Bournemouth. 

The original Indentures were varied by s.57 Bournemouth Borough Council Act 1985. This requires that the Council manage, regulate, control and deal with the Trust, premises and property by means of a management committee appointed by them in accordance with the Local Government Act 1972. 

## **Governance** 

Pursuant to the Council’s Constitution, local choice functions are intended to be executive functions (ordinarily exercised by the Leader and/or Cabinet and Cabinet members per the Leader’s scheme of delegation) as is permitted in accordance with the Local Authorities (Functions and Responsibilities) (England) Regulations 2000.  The Council’s executive therefore exercises the functions as Trustee for the operations and management of the Russell-Cotes Art Gallery and Museum. As in practice, Cabinet does not sit as the Management Committee and to that end, a new Management Committee was created in 2016, as a sub-committee of Cabinet and exercises the functions delegated to it. 

The Management Committee meets twice a year and is serviced by the Council’s Democratic services team. As a sub-committee the minutes of meetings are noted and agreed by Cabinet. 

The Management Committee is made up of: 

a. The Portfolio Holder 

- b. Two further Council members 

- c. 4 external (Non-Council Members) 

d. Sir George Meyrick (or the person for the time being in enjoyment of the title), in compliance with the Bournemouth Borough Council Act. A substitute can be agreed with the elected chair prior to any meeting. 

Non-council members cannot lawfully exercise formal voting rights. However the rules have been written very carefully to ensure the nonmembers' views are taken into account through a recorded shadow vote before any formal vote is taken. 

## **Recruitment and appointment of external members** 

The management Committee recruitment process is carried out by officers and existing members on behalf of the Management Committee. The vacancy is advertised in the local media and interested parties are then provided with: 

a. Briefing Note b. Forward Plan c. Collections Strategy d. Latest Annual Report 

The applicants' CV's are reviewed and potential applicants are then interviewed and appointed using the Charity Commission Operational Guidance, Trustee Act 2000, OG 86 B4 ‘Power to employ nominees and custodians’. On the appointment the committee members are provided with a copy of the governing documents, the Rules of the Management Committee together with the rules for conflicts of interest. A familiarisation session will be provided which ensures that the new management committee members have a good understanding of the Russell-Cotes Art Gallery and Museum as a whole and how it operates within the context of BCP Council. 

Russell-Cotes Art Gallery and Museum Charitable Trust - Year Ended 31 March 2022               3 



## **Objectives and Activities** 

The objectives of the Charity are the purposes of an art gallery and museum. 

## **Vision and Aims** 

## **Vision** 

Our vision is that the Russell-Cotes Art Gallery and Museum will be the internationally-acclaimed cultural flagship for Bournemouth and beyond. 

## **Mission** 

The mission is to inspire and enrich the lives of Bournemouth’s residents and visitors by creating a cultural flagship around a unique historic house and international art collections. 

## **The Core Offer** 

Russell-Cotes Art Gallery and Museum is an outstanding celebration of late Victorian art collectors; their passions and achievements; how they lived and encountered the world; and how they presented their collections to enrich the lives of others. 

We are entrusted to present the Russell-Cotes’ personal legacy in the most authentic way possible, and to enable learning, enjoyment and access to the house and collections for residents and visitors to Bournemouth. 

## **Background** 

The Russell-Cotes is a rare survivor as the residence of a Victorian / Edwardian collector, planned and perpetuated as a permanent art museum. It now comprises art galleries, historic house, exhibitions, a licensed café, a shop and activity / learning area. 

## **The Collections** 

The collection is a prime example of Victorian attitudes which resulted in an eclectic collection spanning fine art, ethnography, decorative and applied arts, sculpture, souvenirs and a theatre collection. Since Merton Russell-Cotes was an assiduous collector of British paintings in the latter part of the 19th century, the art collection provides a unique insight into middle class taste of the period.  The collections were expanded and enhanced by the souvenirs acquired during the Russell-Cotes’s travels around the world. Further donations, purchases and bequests have significantly added to the collection after 1921. The 'collections strategy' contains the policies for the acquisition, preservation, management and disposal of heritage assets and the details of the assets are maintained in the Modes database. The public has access to the collections that are on display however personal access to the collections is not permitted as a general rule, although each request is reviewed on its merits taking into account the risks to the collection before granting or refusing access. 

## **Achievements and Performance** 

## **Covid Pandemic** 

Due to the Covid Pandemic and the regulations introduced, the Russell-Cotes was closed from 30 December 2020 until 12 April 2021. In line with changes to the regulations, the shop and outside catering reopened on 13 April 2021 and from 18 May the Museum and indoor catering reopened.  Restrictions on mask wearing, one-way systems and capacity were removed from 19 July.  There has been no requirement to close since, for Covid, but the museum closed routinely for two weeks in January 2022 to allow conservation activities. 

The Covid pandemic has impacted on visitor numbers and confidence throughout the year, but the impact of this on income/expenditure was partially offset by a reduction in expenditure on casual staff (when closed) and rates reductions,  and an increase in net income due to the reductions in VAT on admission and catering income. 

Visitor numbers improved from 75% of pre-Covid levels from reopening in May, to more than 90% by March 2022. 

The pandemic has not changed the vision, mission or core offer of the museum, it has only restricted the numbers of people it could reach and focussed its work on on-line activity.  The museum is still a viable going concern as BCP Council acting as the trustee will donate services sufficient for the museum to break even. 

## **Review of the year** 

- During the year, the gallery provided a range of public benefits through its public exhibitions, displays, activities, events and learning resources and sessions, some of which moved to online activity because of the Pandemic, achieving the usage numbers: • �149,512 usages (35,497 visits in person, 1,674 enquiries, 91,041 unique website users, 9,374 followers on Facebook, 2,748 followers on Twitter, 3,578 followers on Instagram, 5,016 e-newsletter subscribers and 584 online participants), compared to 71,295 in 2020-21. 

- • 35,497 visits in person, compared to 9,667 in 2020-21. 

- October 2021 saw the most visitors to the gallery (4,535), whilst September (4,279) and August (4,232) were also busy. 

Visitor numbers were impacted by closure for Covid initially, with social distancing measures and lack of consumer confidence but have increased over the year.  Overall visitor numbers were 77% of 2019-20 figures, even though the museum was closed for 6 weeks. 

## The Museum’s educational and events programme restarted. 

- • 18 sessions were held on site delivering to 365 pupils, home educated children, university students and language school students. This compares to 2 sessions for home educated children, delivering to 18 children in 2020-21. 

The number of annual tickets sold increased to 451 (from 93) generating 983 return visits.  The Friends membership increased to 166 members, generating 498 return visits. 

## **Centenary** 

2022 marks the Centenary of the Russell-Cotes opening as a museum.  A small steering group of Management Committee members, stakeholders, staff, Friends and volunteers was convened to advise on activities. A varied but small-scale programme of events, exhibitions and activities was organised for the Centenary year to commemorate, celebrate and engage audiences in line with our general strategy and in the light of modest funding and on-going Covid uncertainties. The programme of Centenary activities began when the Museum reopened on 25 January 2022 with a Centenary logo being used to badge up activities. 


A year-long Facebook project to post on 100 objects is being organised by the Curator and volunteers. 

Russell-Cotes Art Gallery and Museum Charitable Trust - Year Ended 31 March 2022               4 



On 10 March the anniversary of our opening, the Mayor of Bournemouth, Cllr David Kelsey visited the museum for a tour with the Chair and ViceChair of the Management Committee and afternoon tea. In the evening a party was held for staff and volunteers past and present.  About 50 people attended the evening and toasted Annie and Merton’s contribution to the cultural life of Bournemouth. 

10 March was also the first of the Museum’s Sixpence Days commemorating the opening of the museum when on Thursdays visitors would pay 6d to visit (other days being free). This attracted 434 visitors and many made significant donations.  Many visitors had come specifically because it was free, however others were regular visitors who wanted to be at the museum to mark this special day. Volunteers provided musical performances, talks and tours during the day.  Further Sixpence Days are scheduled on a quarterly basis. 

## **Exhibitions and Events** 

## _**Hidden Highlights: Life in Lockdown (24 October 2020 – 12 September 2021)**_ 

The exhibition was initially conceived as a ‘quick win’, during the height of the Covid pandemic when the museum had been closed to visitors for over four months and the public programme was on pause. 

A new twist on the traditional ‘highlights from the collection’ exhibition was achieved by grouping paintings into pertinent covid lockdown related themes such as Home Schooling, Staycations, Eat Out to Help Out etc. All the works featured were from the Russell-Cotes reserve collection (no external loans from other institutions). 

A decision was taken to keep interpretation to a minimum, instead focusing on a painting’s title, artist and date, with a small selection of works having a humorous comment attached. This reduced interpretation style appeared to fit well with the relaxed nature of the exhibition. 

- The exhibition was planned, interpreted and installed  within a 4 week period and was initially conceived to be on display for a 6 month stopgap period, to enable decisions to be made about future exhibitions. Unfortunately, a further two National Lockdowns were implemented, meaning that the exhibition was extended by a further 6 months, leading to one of the longest runs for an exhibition. Visitor feedback was overwhelmingly positive. Many visitors thought the exhibition was a nationally touring exhibition.  Comment cards in the exhibition space, encouraged visitors to create their own labels for the covid paintings. 

- • _Loved this exhibition and the hilarious captions_ • _All the quips were so good. Hope you enjoyed writing them as much as I enjoyed reading them_ 

- • _I loved all the captions accompanying the paintings as well as the paintings themselves of course. To find such humour and self-awareness was brilliant. A fantastic exhibition!_ • _Thankyou for putting a smile on my face_ • _Made our day. Brilliant job!_ • _What a creative, delightful witty and very well inspired exhibition. I haven’t had as much fun engaging with the artworks_ • _This is a fabulous selection. Loved the creativity and imagination. Thank you for an amazing experience and the light-hearted take on covid_ 

- • _The captions made me belly laugh_ • _This was the best exhibition I’ve ever seen at a museum!_ 

## **A Century of British Art:  Bournemouth Arts Club 1920 – 2020 (1 October 2021– 6 March 2022)** 

This exhibition commemorated the centenary of the Bournemouth Arts Club, with which the Russell-Cotes has had a close connection. Shortly after the ending of the First World War a group of accomplished artists most notably Geoffrey Baker, Head of the Municipal College of Art; Eustace Nash and Leslie Ward formed the Bournemouth Arts Club (BAC) to support and promote art and artists in the area. They invited leading contemporary artists to join them in exhibitions and events. Showcased in this exhibition were some of the finest twentieth century British Art drawn to reveal fascinating insights into how the Club flourished and responded to radical ideas and changing approaches in art. Alongside work by well-known BAC members were works by internationally acclaimed artists including Henry Moore, John Nash, Ben Nicholson, Prunella Clough and William Crozier who inspired them. Loans had been received from Southampton City Art Gallery, Swindon Art Gallery and numerous private collectors. The exhibition was curated by Dr Gill Clarke. The much-delayed exhibition was finally able to open the public from 1 October 2021- 6 March 2022. Visited by over 15,500 visitors, the local subject matter by local artists really resonated with visitors, as reflected in the positive feedback. • ‘ _I knew it would be good by what I saw on your website, but truly surpassed. Fantastic collection & mix of media & ageless. Would definitely come to see another exhibition you put on here.’_ • _‘Very interesting - nice to see an exhibition concentrating on specific times and places and put in social & artistic context (local interest too). Well done!’_ • _‘One of the best exhibitions I've seen here - excellent!’_ Covid restrictions during the run of the exhibition hampered the public programming ambitions for the exhibition, but we were still able to run a restricted private view attended by past and present Bournemouth Art Club members, gallery tours and a zoom talk by the exhibition’s curator Dr Gill Clarke, as well as two artist workshops lead by members of Bournemouth Arts Club (for 18 people). In addition we published a mini-catalogue of the highlights of the RussellCotes 20th Century collection to accompany the exhibition.  A successful evening symposium in partnership with Arts University Bournemouth, was held to discuss the continuing arts movement in Bournemouth and how to create a vibrant art scene in the town for the next century. 

Russell-Cotes Art Gallery and Museum Charitable Trust - Year Ended 31 March 2022               5 



_**The Lost Words: Robert Macfarlane Jackie Morris**_ **(26 March – 18 September 2022)** 

The exhibition, The Lost Words, opened on 26 March 2022 and featured over 50 original watercolour illustrations by artist Jackie Morris and 20 acrostic poems by writer Robert Macfarlane from the bestselling book of the same name published by Hamish Hamilton. The book was created in response to the removal of the names of animals and plants from a children’s dictionary and has become a cultural phenomenon. 

In response to this widening gulf between childhood and the natural world, The Lost Words seeks to conjure that vanishing wildness back into existence through images and writing. 

Robert Macfarlane has created a series of spell-poems – one for each lost word – while Jackie Morris, inspired by her lifelong passion for Britain’s landscapes and wildlife, has painted beautiful watercolours and used gold leaf to take the viewer on a journey that makes the familiar magical once more. Over a quarter of a million copies of the book have been sold and has been adapted into a film, folk songs, dance and even puppet theatre. The exhibition was developed by, and is on loan from, Compton Verney. **Secretary’s Room Exhibitions** 

The programming for the Secretary’s Room was impacted by Covid. 

_John Thomas: The Japanese Sketches of a Victorian Director_ (18 May 2021 – 3 January 2022) 

The artist John Thomas was the creator of most of the beautiful murals and motifs throughout the Russell-Cotes.  In 1886, Thomas published a portfolio of 24 Japanese-inspired engravings, possibly commissioned by the Russell-Cotes’, following their recent trip to Japan. Many of the images were almost identical to wood block prints by Japanese artists. Careful study reveals that many of the motifs featured in the portfolio were repeated throughout the house and Royal Bath Hotel.   The exhibition featured a number of works from the portfolio. 

_The Road to the Museum_ (25 Jan 2022 – 1 November 2022) 

As part of our centenary celebrations, we worked alongside one of our long-standing volunteers, Paul Whitaker (author of the autobiography of Meron Russell-Cotes; The Art of a Salesman) to produce this exhibition.  Road to the Museum follows in the footsteps of our founder by retracing the key events that led to the creation of the Russell-Cotes Art Gallery & Museum in 1922. Local artist, Ella Shephard, was also commissioned to produce a series of illustrations to accompany the exhibition. 

## **Cafe Gallery** 

The Café Gallery was used for the purposes of selling affordable prints from the Collection and work by local craftspeople. A pop-up shop related to The Lost Words exhibition was developed in March 2022. 

## **Events, Learning & Community - On-site and on-line** 

Owing to the pandemic and restrictions on social distancing, many of  the usual on-site activities such as tours and talks were not able to take place and some engagement activities therefore were moved on-line. However, by the end of the year, most of the Museum’s activities had resumed. 

- _�10 on-line talks were offered by volunteers, staff and external curators and researchers related to the collections, museum and BAC exhibitions attracting 584 attendees_ 

- • _Regular newsletters were sent to the mailing list/ supporters to keep them up to date with that was happening_ • _A ‘Friends Zone’ was put on the website with background information and articles._ • _�1 on-site performance of Tea with Oscar Wilde for 50 people_ • _The popular Hallowe’en event was resumed attracting 115 people_ • _�3 family activity days attracted 46 children_ 

- _�Four events were held in the garden during summer 2021, funded by Festival Coast Live with activities and music all day._ 

- • _�Creative workshops were led by artists from Bournemouth Arts Club._ 

- _�Christmas Weekend attracted 279._ 

- • A ‘Lates’ Programme of a monthly evening opening with additional programming was planned for the year, as a Centenary activity to attract a younger and working audience. They started in February with _House of Hearts_ , organised by 2[nd] year BA Events students at AUB attracting an additional 250 people to see performances and activities. _Back to the Roaring 20s_ in March attracted 85 people, many of whom dressed up and danced to ‘FB Pocket Orchestra’. 

- _Two tactile tours were delivered for people with visual impairments._ 

- • The annual AUB installation project resumed.  In December 2021, 18 2[nd] year Fine Art students held their exhibition in response to the collection in the museum called ‘Bifolds’. 

- • _11 formal learning sessions were held for 154 school and home-educated children. There were also 2 visits by Language schools and 5 groups of university students._ 

- As well as on-site conservation of the Solomon Hart by Brick House Conservation, a ‘Clock Day’ was held in partnership with West Dean College, Clock Conservation Department.  These ‘conservation in action’ events were very popular with visitors. 

## **Audiences** 

The Learning and Engagement Officer and Visitor Services Team Leader completed the Equity and Inclusion course offered by Museums Development. They have drafted an Equity and Inclusion Plan for the Museum to drive improvements in diversity and equality in all activities. 

## **Collections and Interpretation** 

During the year, the display and conservation improvements were focussed on Galleries 1 and 2 with the aim to refresh the décor, fittings and some of the paintings. Conservation work was also carried out to some of the minor but unsightly wear and tear to the wall surfaces and woodwork in the Galleries and Main Hall. 22 years on from the original HLF building restoration the damage to high traffic areas of the building had become noticeable and while not full conservation this minor treatment has yielded noticeable results greatly improving the visitor experience. 

Russell-Cotes Art Gallery and Museum Charitable Trust - Year Ended 31 March 2022               6 



During the Christmas closure period Galleries 1 and 2 were rehung. Previously some of our most popular paintings were not displayed to their best advantage. Additionally, visitor feedback from exhibitions had indicated that there were some works not on display that perhaps should be. The hang is now more thematic with the ‘high Victorian’ works in Gallery 1 while the much lighter Gallery 2 contains our Pre-Raphaelite masterpieces as well as some of our finest 20th century works. 

Conservation work was also carried out on 'The Submission of the Emperor Barbarossa' by Solomon Alexander Hart RA (circa 1867), Napoleon’s table and the Louis XVI giltwood chairs (owned by Queen Victoria), ‘Dorset Landscape’ by Leslie Moffat Ward (1930) and ‘A Tempting Bait’ by Arthur John Elsley (c1906) 


An 1910 Anatolian carpet has been sourced for the Dining Room floor, which along with druggets (yet to be sourced) will protect the original wooden floor which is being worn away by visitor traffic and contribute to the ambience of the room . The carpet is an authentic approximation of the carpet the Russell-Cotes’ had in that room and will be used sacrificially. 

The Royal Bath Hotel Visitor Book which was bought by the Museum in 2018, with support from private donors and the Friends of National Libraries was reinterpreted with a touchscreen display about the hotel and its famous guests including Oscar Wilde and redisplayed in the Study. 

Paper-based interpretation, such as room books were reintroduced alongside the online information and Smartify app.  A new video in which the Curator gives a tour of the upstairs rooms was completed and is now available on the website and via a tablet, for all visitors unable to climb the stairs.  This has been extremely popular.  Collections information has been uploaded onto the website. 

## **Income Generation** 

• **Café** The café operated initially outside on the terrace and then inside as the rules relaxed. The outdoor terrace has been popular and attracted attention to the garden. It requires new flexibility in staffing according to the weather and the season. • **Weddings and Venue Hire** The museum closed for one wedding. • **Retail** Shop sales recovered reasonably well, but were impacted by the reduction of visitors, the changed demographic, particularly the loss of overseas visitors in summer 2021 and the problems of getting supplies. 

The Museum commissioned an external shop consultant to advise on refreshing the shop stock to generate greater income and to advise on the development of a pop-up shop in the Café Gallery to fully exploit the opportunities for merchandising and sale of prints books and cards offered by The Lost Words exhibition. 

## **Governance** 

Proposals to modify the governance arrangements for the museum continued, with the drafting of a new business model for a new independent trust. However discussions were ongoing with the Charity Commission on the appropriate legal mechanism for effecting a change of trusteeship due to the impact of the Bournemouth Borough Council Act 1985. 

Consultation on the proposals on governance, business plan and funding arrangements started with key stakeholders. 

## **Funding and Grants** 

In October 2020 the Russell-Cotes had received £225,916 from the ACE Coronavirus Recovery Fund.  This contributed partly to ongoing costs including salaries because of the lack of visitor income.  It also invested in improvements to support the museum’s ongoing financial sustainability including a new outdoor catering facility, a new integrated till and CRM system for managing income and memberships, improved signage, a marketing review.  A significant proportion also supported the governance review by funding consultants and specialists to provide expert advice on legal, financial and staffing issues to progress the case for externalization from BCP Council.  Some of this funding was carried into the 2022-23 Financial Year to complete the projects identified. 

In February 2021, the Russell-Cotes was successful in its application to the Museums Estates and Development Fund (MEND) which was established by Arts Council England (ACE) specifically to address the backlog of urgent repairs needed in the Museum sector and support environmental and financial sustainability. This major investment to carry out urgent capital work, including restoring the conservatory, replacing the end of life Air Handling Units, improving drainage and improving CCTV security, will cost £974,000. A grant of £518,000 has been awarded by MEND, £30,000 has been fundraised for the conservatory and match funding of £426,000 has been agreed by BCP Council (of which £213,000 has been allocated from the Community Infrastructure Levy (CIL) Fund). The work on site is expected to begin in March 2023, in a phased approach so that the museum will remain open to visitors throughout. On site works should be complete by Winter 2023 followed by a period of monitoring and review. 

The Russell-Cotes received a grant from AIM for a Collections Care Audit which was carried out in May 2021.  It commended conservation practices in operation and identified areas of improvement. 

Russell-Cotes Art Gallery and Museum Charitable Trust - Year Ended 31 March 2022               7 



## **Staffing** 

Approximately 17 FTE members of staff were employed during this period, (18 FTE in 2020-21). The figures exclude a % of senior management time. 

Volunteer roles and involvement, largely returned to pre-Covid levels with many volunteers continuing to make a valuable ‘in kind’ contribution to the service both remotely and on-site, working on a range of projects including: 

|•|**Interpretation**support for the new Smartify app and Russell-Cotes 100 objects (research and writing)|
|---|---|
|•|**Collections-related**(cataloguing the Russell-Cotes library, collections research and documentation, environmental monitoring, deep|
||cleaning)|
|•|**Public facing**(stewarding, tour guiding, learning assistance, talks, café etc.)|
|•|**IT, marketing & administrative**(gift aid reclaim, visitor feedback data entry etc.)|
|•|**Performing live music in the house**|
|•|**Maintaining the garden**|
|During the year about 115 volunteers contributed about 3,540 hours of their time.||



## **Financial Review Financial position and reserves policy** 

Historically the Council, in its role as local authority and corporate trustee, has provided donated services each year sufficient for the trust to achieve breakeven. This is currently the policy that is expected to continue and so the accounts have been prepared on a going concern basis. The unrestricted income fund is stock and cash held. Endowment income fund, conservatory repair fund & purchase reserve are held in trust to be retained for the benefit of the charity. The trust's assets are the freehold land and buildings consisting of the East Cliff Hall, Bournemouth and the collection itself. The buildings are now classified as Heritage Assets. Their value is reflected in the endowment funds on the balance sheet. Following the insurance strategy and to ensure the valuations remain up to date a rolling programme of revaluation by collection area has been implemented using relevant experts. All valuations are used to update the total valuations for the collection. All valuers with the exception of the museum curator are independent of the Trust. The museum curator has provided a valuation in her capacity as a professional in this area. 

## **Responsibilities of the Trustee** 

The Law requires the trustee 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 its net movement in funds for that period. 

The charity trustee is responsible for preparing a trustee annual report and financial statements in accordance with applicable law and United Kingdom accounting standards (United Kingdom generally accepted accounting practice.) In preparing those financial statements, the trustee is required to: 

a. select suitable accounting policies and then apply them consistently; 

b. observe the methods and principles in the Charities SORP; 

c. make judgements and estimates that are reasonable and prudent; 

d. state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; e. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

The Trustee is responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the charity, and to enable them to ensure that the financial statements comply with the requirements of 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. 

Each of the persons who are trustees at the time when this Report of the Trustee is approved has confirmed that: 

- so far as that trustee is aware, there is no relevant auditor information of which the trust's auditor is unaware, and 

- • a trustee has taken all the steps that ought to have been taken as a trustee in order to make them aware of any relevant audit information and to establish that the Trust's auditor is aware of that information. 

All of the activities reported are derived from the continuing operations of the charity. 

By Order of the trustee 

Signed 

Cllr D Mellor 


on behalf of Trustee Approved on                30 January 2023 

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## **Independent Auditor's Report to the Trustee of Russell-Cotes Art Gallery and Museum** 

## **Opinion** 

We have audited the financial statements of Russell-Cotes Art Gallery and Museum (the ‘charity’) for the year ended 31 March 2022 which comprise the Annual Report and Statement of Accounts 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 charity’s affairs as at 31 March 2022, and of its 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 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 trustee’s 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 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 trustee 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 trustee’s annual report, other than the financial statements and our auditor’s report thereon. The trustee is 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 trustee’s report; or 

- the charity has not kept adequate accounting records; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- • we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustee** 

As explained more fully in the trustee’s responsibilities statement set out on page 8 the trustee is 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 trustee determines 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 trustee is responsible for assessing the 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 trustee either intends to liquidate the charity or to cease operations, or have no realistic alternative but to do so. 

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**Independent Auditor's Report to the Trustee of Russell-Cotes Art Gallery and Museum (continued)** 

## **Auditor’s responsibilities for the audit of the financial statements** 

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with 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: 

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 noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: 

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

- • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charity’s internal control. 

- • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustee. 

- • Conclude on the appropriateness of the trustee’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern. 

- • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation (ie. gives a true and fair view). 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 

## **Use of our report** 

This report is made solely to the charity’s trustee, 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 trustee 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 trustee, for our audit work, for this report, or for the opinions we have formed. 


Hixsons (Statutory Auditor) 

24 Cecil Avenue Bournemouth BH8 (EJ 30 January 2023 Hixsons is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. 

Russell-Cotes Art Gallery and Museum Charitable Trust - Year Ended 31 March 2022               10 



## **Statement of Financial Activities (incorporating Income and Expenditure Account)** 

## **Year ended 31 March 2022** 

|**Note**<br>2<br>**Income and endowments from**|2021-22<br>2021-22<br>2021-22<br>**2021-22**<br>2020-21<br>2020-21<br>2020-21<br>**2020-21**<br>Unrestricted<br>Funds<br>Restricted Funds<br>Endowment<br>Funds<br>**Total Funds**<br>Unrestricted<br>Funds<br>Restricted<br>Funds<br>Endowment Funds<br>**Total Funds**<br>£<br>£<br>£<br>**£**<br>£<br>£<br>£<br>**£**|
|---|---|
|2a<br>Donations and legacies<br>2b<br>Other trading activities<br>2c<br>Other income<br>2d<br>Charitable activities<br>Total income and endowments<br>3<br>**Expenditure on**<br>3a<br>Raising funds<br>3b<br>Charitable activities<br>3c<br>Other<br>Total expenditure<br>**Net (income)/expenditure before**<br>**other recognised (gains)/losses**<br>Total (gains)/losses on revaluation of<br>fixed assets<br>**Net movement in funds**<br>**Reconciliation of Funds**<br>Balance brought forward<br>Movement in current assets<br>Movement in fixed assets<br>Total funds carried forward|(684,174)<br>(1,648)<br>0<br>**(685,822)**<br>(495,939)<br>0<br>0<br>**(495,939)**<br>(225,830)<br>0<br>0<br>**(225,830)**<br>(60,308)<br>0<br>0<br>**(60,308)**<br>(20,268)<br>0<br>0<br>**(20,268)**<br>0<br>0<br>0<br>**0**<br>(930,273)<br>(1,648)<br>0<br>**(931,921)**<br>(556,247)<br>0<br>0<br>**(556,247)**<br>(199,372)<br>0<br>0<br>**(199,372)**<br>(312,449)<br>(2,500)<br>0<br>**(314,949)**<br>(1,129,645)<br>(1,648)<br>0<br>**(1,131,293)**<br>(868,696)<br>(2,500)<br>0<br>**(871,196)**<br>932,983<br>0<br>0<br>**932,983**<br>702,726<br>2,500<br>0<br>**705,226**<br>932,983<br>0<br>0<br>**932,983**<br>702,726<br>2,500<br>0<br>**705,226**<br>177,600<br>0<br>0<br>**177,600**<br>158,941<br>0<br>0<br>**158,941**<br>0<br>0<br>464,288<br>**464,288**<br>0<br>0<br>446,131<br>**446,131**<br>1,110,583<br>0<br>464,288<br>**1,574,871**<br>861,666<br>2,500<br>446,131<br>**1,310,297**<br>(19,061)<br>(1,648)<br>464,288<br>**443,578**<br>(7,030)<br>0<br>446,131<br>**439,101**<br>0<br>0<br>(2,417,647)<br>**(2,417,647)**<br>0<br>0<br>(599,319)<br>**(599,319)**<br>(19,061)<br>(1,648)<br>(1,953,359)<br>**(1,974,069)**<br>(7,030)<br>0<br>(153,188)<br>**(160,218)**<br>27,141<br>54,550<br>66,724,960<br>**66,806,651**<br>20,111<br>53,879<br>66,571,772<br>**66,645,762**<br>4,466<br>0<br>0<br>**4,466**<br>(3,449)<br>671<br>0<br>**(2,778)**<br>14,595<br>0<br>1,953,359<br>**1,967,954**<br>10,479<br>0<br>153,188<br>**163,667**<br>46,202<br>56,198<br>68,678,319<br>**68,780,719**<br>27,141<br>54,550<br>66,724,960<br>**66,806,651**|



All of the activities are derived from the continuing operations of the charity. 

The movement in current assets is the difference between the opening stock and closing stock of items purchased for resale in the gift shop and cafe. These are donated assets and are reflected in the balance sheet. 

The movement in fixed assets is due to capital costs being incurred by BCP Council and donated to the Trust and revaluations of the Heritage Assets. 

11 

Russell-Cotes Art Gallery and Museum Charitable Trust - Year Ended 31 March 2022 



## **Balance Sheet** 

31 March 2022 

|Note.<br>5<br>5<br>6<br>7<br>Debtors<br>Investments (2021/22 - moved to Cash held on behalf of Trust)<br>Overdraft<br>8<br>Creditors: Amounts falling due within one year<br>**Net Assets**<br>9<br>Conservatory repair fund<br>10<br>11<br>Cash held on behalf of the Trust<br>**Fixed Assets:**<br>Tangible assets<br>Heritage assets<br>**Total Fixed Assets**<br>**Current Assets:**<br>Stock and work-in-progress<br>Cash in hand<br>**Total Current Assets**<br>**Current Liabilities:**<br>**Total Current Liabilities**<br>**The funds of the charity:**<br>_Restricted Income funds_<br>Endowment income fund<br>Painting and Specimens Reserve<br>Unrestricted income fund<br>_Endowment fund_<br>Heritage Assets<br>**Total Charity Funds**|2021-22<br>2020-21<br>Total Funds<br>Total Funds<br>£<br>£<br>25,074<br>10,479<br>68,678,319<br>66,724,960|
|---|---|
||68,703,393<br>66,735,439|
||20,428<br>15,962<br>38,547<br>23,592<br>0<br>8,580<br>700<br>700<br>109,737<br>46,976|
||169,412<br>95,810|
||0<br>0<br>(92,086)<br>(24,598)|
||(92,086)<br>(24,598)|
|||
||**68,780,719**<br>**66,806,651**|
||(8,580)<br>(8,580)<br>(31,525)<br>(29,877)<br>(16,093)<br>(16,093)|
||(56,198)<br>(54,550)|
|||
||(46,202)<br>(27,141)|
||(68,678,319)<br>(66,724,960)|
||(68,678,319)<br>(66,724,960)|
|||
||**(68,780,719)**<br>**(66,806,651)**|



Signed 

Cllr D Mellor 


on behalf of Trustee 

Approved on                30 January 2023 

Russell-Cotes Art Gallery and Museum Charitable Trust - Year Ended 31 March 2022               12 



## **Notes to the Accounts** 

## **1. Statement of Accounting Policies** 

## **Basis of preparation of the accounts** 

The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. 

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting standard applicable in the UK and Republic of Ireland (FRS 102). Section 1A of FRS 102 has been applied and no Statement of Cashflows has been prepared. 

The Russell-Cotes Art Gallery and Museum's corporate trustee includes the charity in its consolidated financial statements. The consolidated financial statements are prepared under the International Financial Reporting Standards and are available to the public at https://www.bcpcouncil.gov.uk/About-the-council/Budgets-and-finance/Annual-accounts.aspx. In these financial statements the Russell-Cotes Art Gallery and Museum is considered to be a qualifying entity (for the purpose of this FRS) and has applied exemptions available under FRS 102 in respect of the requirement to present a cashflow statement. Having given regard to Public Benefit Entity guidance the corporate trustee considers the Russell-Cotes Art Gallery and Museum to be a Public Benefit Entity. 

## **Going Concern** 

Historically the Council, in its role as local authority and corporate trustee, has provided donated services each year sufficient for the trust to achieve breakeven.  This is currently the policy and the trustee has received confirmation that this support will continue for the foreseeable future and is considered adequate and so the accounts have been prepared on a going concern basis. The trustee considers that there are no material uncertainties about the Trust's ability to continue as a going concern. The pandemic has not affected this policy. 

## **Income recognition** 

Voluntary income in the form of Donated Services received is recognised in the year that the matching unfunded element of expenditure is incurred. The policy of BCP Council has been and will be to subsidise the charity each year to the extent of its income shortfall. 

While this arrangement is likely to continue for the foreseeable future there is no contractual necessity for the Council to provide the subsidy through Donated Services other than the basic maintenance of the East Cliff Hall premises and grounds and the collection. There is also the need to employ a curator. Staffing currently includes a post of this nature together with the staff expected of a modern-day museum and art gallery. 

Income from commercial trading activities is recognised at point of sale - this includes income from the café. Grant income is recognised when the charity can demonstrate entitlement, receipt is probable, and the amount can be measured reliably. 

Russell-Cotes Art Gallery and Museum Charitable Trust - Year Ended 31 March 2022               13 



## **Expenditure recognition** 

## Raising funds 

The main cost is for staff and there is no distinction or recording of time between charitable activities and the cost of generating funds. For example, there are no specific, salaried staff members employed to make retail sales. Instead, other staff members cover this function as an incidental part of their employment. An estimate of the value of this service is reflected in the statement of financial activities on an accrual basis. 

Maintenance includes the direct costs of maintaining the building and gardens. Running costs include rates, utilities and insurances. Salaries represent the cost of the Council supplied staff including those funded by any external grants. 

Operating costs are mostly incurred by the Council and charged by way of recharges to reflect the Russell-Cotes' apportionment of the cost of central Council services provided. 

Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include those related to preparing statutory accounts, the statutory audit, legal fees and costs of Committee meetings. 

## **Current assets - Stock** 

The gift shop & cafe stock is counted at year end and valued at the lower of cost or most recent purchase price and net realisable value as per FRS102 (Section 13) and the Charity SORP. 

## **Debtors** 

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

## **Cash at bank and in hand** 

Cash at bank is equal and opposite to the sum of the net of the debtors and creditors, the Conservatory Repair fund and the Paintings and Specimens reserve. The museum does not have its own bank account - all receipts are paid into and all payments paid from the BCP Council's main bank account. 

## **Creditors** 

Creditors 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 are normally recognised at their settlement amount. 

Russell-Cotes Art Gallery and Museum Charitable Trust - Year Ended 31 March 2022               14 



## **Fixed assets** 

## **Heritage assets** 

The Trust’s heritage assets consist of the museum building - East Cliff Hall, the land and the paintings, furniture and other objects that form the collection of the Russell-Cotes museum. They are held to provide benefit and enjoyment to the inhabitants of and visitors to Bournemouth. 

Heritage assets are initially recognised at cost and are revalued periodically. Any revaluation gains or losses are held in the Endowment fund. These assets are valued using the Council's land and building valuation processes. Major refurbishment carried out by the Council is classified as a donated service and the asset revalued accordingly. Whilst being carried at other than a notional value, assets are depreciated on a straight line basis over their estimated useful lives. 

|Tangible|5 years|
|---|---|
|Heritage - Freehold buildings|50 years|
|Heritage - Land|Not depreciated|



The carrying values of heritage assets are reviewed where there is evidence of physical deterioration or breakage. Any impairment is recognised and measured in accordance with the Trust’s general policies on impairment. Depreciation is only chargeable on heritage assets if they meet the Trust’s general policies for depreciation. The collection is not depreciated but revalued on a periodic basis by appropriate experts including the museum curator. A record of the heritage assets held by the Trust is maintained in the Modes database. 

Capitalisation follows the policy of a threshold of £1,000. 

## **Funds structure** 

There are a number of small restricted income funds which have designated purposes. The cash balance for these funds is held by the Council within its general bank balances and is available at any time upon demand. 

The charity has a main unrestricted income fund. That comprises those funds which the trustee is free to use for any purpose in furtherance of the charitable objects. 

The charity has a restricted endowment fund. This comprises the full sum of the Heritage Assets total revalued amount, the cost of any fixed asset additions since the last valuation and the depreciation charged. 

## **2. Analysis of Income and endowments from** 

|Public Donations<br>General support through donated goods and services<br>Donation of fixed assets<br>Change in value of gift shop & café closing stock<br>Donations from BCP Council<br>**2a. Total Donations and legacies**|2021-22<br>2020-21<br>£<br>£<br>(40,376)<br>(25,295)|
|---|---|
||(626,386)<br>(463,614)<br>(14,595)<br>(10,479)<br>(4,466)<br>3,449|
||(645,447)<br>(470,644)|
||**(685,823)**<br>**(495,939)**|



Russell-Cotes Art Gallery and Museum Charitable Trust - Year Ended 31 March 2022               15 



## **2. Analysis of Income and endowments from (continued)** 

|||2021-22|2020-21|
|---|---|---|---|
|||£|£|
|Retail Income||(213,105)|(56,466)|
|Venue Hire||(12,725)|(3,842)|
|**2b.Total Other trading activities**||**(225,830)**|**(60,308)**|
|Fixed Asset sales (net proceeds)||(20,268)|0|
|**2c. Total Other Income**||**(20,268)**|**0**|
|Admission fees||(197,920)|(56,663)|
|Grant Income||0|(258,286)|
|School Visits||(1,452)|0|
|**2d. Total Charitable Activities**||**(199,372)**|**(314,949)**|
|||||
|**Total Income and endowments**||**(1,131,293)**|**(871,196)**|
|**3. Analysis of Expenditure on**||||
|||2021-22|2020-21|
||Key|£|£ Key|
|General Operations (see note 4 below)|*****|849,710|617,668 *******|
|Exhibition Expenditure||46,908|69,981|
|Other Grant Funded Expenditure||0|2,500|
|Retail Expenditure||36,364|15,077|
|**3a. Total Raising funds**||**932,983**|**705,226**|
|General Operations (see note 4 below)|******|148,619|119,021 ********|
|Accountancy and audit costs||13,382|18,816|
|Repository||15,600|21,104|
|**3b. Total Charitable Activities**||**177,600**|**158,941**|
|Depreciation||464,288|446,131|
|**3c. Total Other**||**464,288**|**446,131**|
|||||
|**Total Expenditure**||**1,574,871**|**1,310,297**|



Russell-Cotes Art Gallery and Museum Charitable Trust - Year Ended 31 March 2022               16 



## **4. Analysis of Expenditure on General Operations** 

|||2021-22|2020-21|
|---|---|---|---|
||Key|£|£ Key|
|Generating income|*****|849,710|617,668 *******|
|Charitable activities|******|148,619|119,021 ********|
|**Total General Operations Expenditure**|**@**|**998,329**|**736,689 #**|
|Being made up of:||||
|Repairs & maintenance||46,277|47,541|
|Rates & utilities||65,439|34,439|
|Other premises costs||7,550|5,762|
|**Total Premises Costs inclusive of Repairs & Maintenance**||**119,266**|**87,742**|
|Wages and salaries||418,417|394,682|
|Social security costs||32,227|29,806|
|Pension costs||55,326|56,090|
|Other staff related costs||14,910|10,318|
|**Total Staff Costs**||**520,880**|**490,896**|
|||||
|**Accountancy, HR, Payroll and Legal Costs**||**18,047**|**28,237**|
|||||
|**Costs of Caring For The Collection Inc Insurance**||**57,098**|**48,343**|
|IT & telecoms||22,106|22,628|
|Travel||531|107|
|Other office costs||5,916|1,151|
|**Total Costs of Travel, Stationery and Office Costs Inc IT**||**28,553**|**23,886**|
|||||
|**Marketing & Promotion**||**54,485**|**13,394**|
|||||
|**Consultants**||**110,947**|**19,858**|
|||||
|**Miscellaneous Supplies & Services**||**89,051**|**24,332**|
|||||
|**Total General Operations Expenditure**|**@**|**998,329**|**736,689 #**|



Approximately 17 FTE members of staff were employed during this period, (18 FTE in 2020-21). The reduction is due a vacant fulltime position and no casual employees because of the museum closure. The figures exclude a % of senior management time. 

No employees earned more than £60,000 for their Russell-Cotes related duties. There were no transactions involving the trustee or related parties and there were no ex-gratia payments. External auditor payments were £9,500 (2021 : £15,000) excluding VAT. 

Russell-Cotes Art Gallery and Museum Charitable Trust - Year Ended 31 March 2022               17 



## **5. Fixed Assets - Tangible & Heritage** 

|Tangible Assets<br>Cost b/f<br>Additions in year<br>Depreciation charged<br>Depreciation adjustment<br>**Total Tangible Assets**<br>Heritage Assets - Buildings & Freehold Land<br>Cost b/f<br>Additions in year<br>Transfer from Heritage Assets - Freehold Land<br>Revaluation in year<br>Cost c/f<br>Heritage Assets - Buildings & Freehold Land<br>Depreciation b/f<br>Depreciation charged<br>Revaluation adjustment<br>Depreciation c/f<br>Heritage Assets - Freehold Land<br>Cost b/f<br>Transfer to Heritage Assets - Buildings & Freehold Land<br>Cost c/f<br>**Total Heritage Assets - Buildings & Freehold Land**<br>Heritage Assets - Collection<br>Net book value b/f<br>Revaluation adjustment<br>Additions in year<br>Disposals in year<br>**Total Heritage Assets - Collection**<br>**Total Heritage Assets - Buildings, Freehold Land & Collection**|2021-22<br>2020-21<br>£<br>£<br>10,479<br>0<br>14,595<br>10,479<br>2,096<br>0<br>(2,096)<br>0|
|---|---|
||**25,074**<br>**10,479**|
||23,109,597<br>22,306,562<br>0<br>0<br>0<br>7,000<br>1,973,359<br>796,035|
||**25,082,956**<br>**23,109,597**|
||0<br>0<br>462,192<br>446,131<br>(462,192)<br>(446,131)|
||**0**<br>**0**|
||0<br>7,000<br>0<br>(7,000)|
||**0**<br>**0**|
|||
||**25,108,030**<br>**23,120,076**|
||43,615,363<br>44,258,210<br>0<br>(642,847)<br>0<br>0<br>(20,000)<br>0|
||43,595,363<br>43,615,363|
|||
||**68,703,393**<br>**66,735,439**|



## Valuation 

The trust's assets are the freehold land and buildings consisting of the East Cliff Hall, Bournemouth and the collection itself. The buildings are now classified as Heritage Assets. Their value is reflected in the endowment funds on the balance sheet. Following the insurance strategy and to ensure the valuations remain up to date a rolling programme of revaluation by collection area has been implemented using relevant experts. Some of the collection is valued by insured value as is the Heritage Freehold Buildings. All valuations are used to update the total valuations for the collection. All valuers, excepting the Heritage Freehold Buildings, and the museum curator are independent of the Trust. The museum curator has provided a valuation in her capacity as a professional in this area. 

|Heritage Assets -<br>Building & Land<br>Fine Art Collection<br>The valuations for insurance purposes are as follows: -|2021-22<br>2020-21<br>£<br>£<br>£25.1m<br>£23.1m<br>£43.6m<br>£43.6m|
|---|---|
||£68.7m<br>£66.7m|



Russell-Cotes Art Gallery and Museum Charitable Trust - Year Ended 31 March 2022               18 



## **6. Stock** 

|Shop<br>Café<br>Stock of articles for resale<br>**7. Debtors**<br>**Debtors**<br>**8. Creditors: Amounts falling due within one year**<br>**Creditors**<br>**9. Restricted Income Funds**<br>Endowment income fund<br>Conservatory repair fund<br>Painting & Specimens Reserve|2021-22<br>2020-21<br>£<br>£<br>18,889<br>14,770<br>1,539<br>1,192|
|---|---|
||**20,428**<br>**15,962**|
||2021-22<br>2020-21<br>£<br>£|
||**38,547**<br>**23,592**|
||2021-22<br>2020-21<br>£<br>£|
||**(92,086)**<br>**(24,598)**|
||2021-22<br>2020-21<br>£<br>£<br>(8,580)<br>(8,580)<br>(31,525)<br>(29,877)<br>(16,093)<br>(16,093)|
||**(56,198)**<br>**(54,550)**|



These represent cash held for specific purposes, the cash is held in the BCP bank account. 

## **10. Unrestricted Income Fund** 

|Tangible Assets<br>Stock<br>Cash|2021-22<br>2020-21<br>£<br>£<br>(25,074)<br>(10,479)<br>(20,428)<br>(15,962)<br>(700)<br>(700)|
|---|---|
||**(46,202)**<br>**(27,141)**|



The balance reflects cost of stock purchased for resale, petty cash imprest, till floats and capital expenditure incurred on behalf of the Trust by BCP Council. 

Russell-Cotes Art Gallery and Museum Charitable Trust - Year Ended 31 March 2022               19 



## **11. Endowment Fund** 

|Balance b/f<br>Movement in year<br>Balance c/f|2021-22<br>2020-21<br>£<br>£<br>(66,724,960)<br>(66,571,772)<br>(1,953,359)<br>(153,188)|
|---|---|
||**(68,678,319)**<br>**(66,724,960)**|



The full sum of the total revalued amount, the cost of any fixed asset additions since the last valuation and the depreciation will be debited or credited to the endowment fund. 

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

## **Analysis of net assets between funds - current year** 

|Heritage Fixed Assets<br>Tangible Assets<br>Current assets<br>Creditors due within one year|**Unrestricted funds £**<br>**Restricted**<br>**funds £**<br>**Endowment**<br>**funds £**<br>**Total funds £**<br>0<br>0<br>68,678,319<br>68,678,319<br>25,074<br>0<br>0<br>25,074<br>113,214<br>56,198<br>0<br>169,412<br>(92,086)<br>0<br>0<br>(92,086)|
|---|---|
||**46,202**<br>**56,198**<br>**68,678,319**<br>**68,780,719**|



* 

* The Conservatory Fund is £31,525 

## **Analysis of net assets between funds - prior year** 

|Heritage Assets<br>Tangible Assets<br>Current assets<br>Creditors due within one year|**Unrestricted funds £**<br>**Restricted**<br>**funds £**<br>**Endowment**<br>**funds £**<br>**Total funds £**<br>0<br>0<br>66,724,960<br>66,724,960<br>10,479<br>0<br>0<br>10,479<br>41,260<br>54,550<br>0<br>95,810<br>(24,598)<br>0<br>0<br>(24,598)|
|---|---|
||**27,141**<br>**54,550**<br>**66,724,960**<br>**66,806,651**|



* 

* The Conservatory Fund is £29,877 

## **13. Related party transactions** 

The trust has a close working relationship with BCP Council acting in its role of local authority. The Council acting in its role of trustee of the charitable trust has nominated Council Cabinet to act as the Management Committee under s.57 Bournemouth Borough Council Act 1985. 

The charity trustee acting in the capacity as management was not paid or reimbursed expenses during the year and no charity trustee received any emolument or payment for professional or other service. 

As disclosed in the analysis of resources expended, the Council provides staff to manage and maintain the museum and gallery. The Council has historically subsidised the annual deficits of the trust. 

Donated services received by the Trust 

|Donated services received by the Trust|||
|---|---|---|
||2021-22|2020-21|
||£|£|
|BCP Council in its capacity as a local authority|**645,447**|**470,644**|



There are 4 exhibits on loan to BCP Council which can be found in the parlours of both the Mayor and the Mayoress. 

Russell-Cotes Art Gallery and Museum Charitable Trust - Year Ended 31 March 2022               20