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2020-12-31-accounts

Charity Registration No. 307989

THE SIR STANLEY SPENCER MEMORIAL TRUST ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

THE SIR STANLEY SPENCER MEMORIAL TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Dr S McKendrick Viscount W W Astor Dr S J Courtenay-Smith Ms A J Bradley Mr P A Brown Mr A de Mille Miss C Mitchell (Appointed 10 May 2021) Chairman Dr S McKendrick Treasurer Mrs K J Bright Charity number 307989 Principal address Stanley Spencer Gallery High Street Cookham Berkshire SL6 9SJ Independent examiner Azets Audit Services The Mill House Boundary Road Loudwater High Wycombe Buckinghamshire HP10 9QN

THE SIR STANLEY SPENCER MEMORIAL TRUST

CONTENTS

Page
Trustees report 1 - 4
Independent examiner's report 5
Statement of financial activities 6 - 7
Statement of financial position 8
Notes to the financial statements 9 - 20

THE SIR STANLEY SPENCER MEMORIAL TRUST

TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees present their report and financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Trust'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 (FRS 102) (effective 1 January 2019)".

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Trust is responsible for maintaining and managing the independent gallery devoted to the work of one of Britain's most original twentieth-century artists, Sir Stanley Spencer RA (1891-1959), who was born in Cookham and set many of his paintings in the village. The Gallery is a Fully Accredited Museum under the scheme administered by Arts Council England.

The Friends of the Stanley Spencer Gallery is a group of over 500 members who exist to support the Gallery and create greater awareness of Stanley Spencer. The Friends income and expenditure are included in this report.

The principal objective of the charity is the foundation, maintenance, improvement and support of an art gallery to be situated in the village of Cookham or elsewhere in England and Wales. This Gallery is to be known as 'The Stanley Spencer Memorial Gallery', be open to all members of the public without distinction and used to display paintings and other works of art by the late Sir Stanley Spencer RA, as well as other artists from time to time.

The area of benefit is determined as Windsor and Maidenhead. However, the gallery attracts visitors from across the UK and a wide range of countries overseas.

Public benefit

In setting our objectives and planning our activities, we have given careful consideration to the Charity Commissions' general guidance on public benefit

THE SIR STANLEY SPENCER MEMORIAL TRUST

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

ACHIEVEMENTS AND PERFORMANCE

Charitable activities

After making appropriate enquiries, the Trustees are confident that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.

Since its opening in 1962 the Gallery has mounted a varied programme of public exhibitions. Exhibitions are produced to showcase different aspects of Spencer's art, based on the Gallery's own collection and loans from public galleries and private owners. In 2020 it presented ‘Painting by the Thames: Swan Upping at Cookham’ (focused on a key loan from the Tate) from Thursday to Sunday from 7 November 2019 until 15 March 2020 (original schedule 22 March). ‘Love, Art, Loss: The Wives of Stanley Spencer which was originally scheduled to run every day from 26 March to 1 November, was not able to open till 15 August and had to close again from 5 November 2020, each time because of national lockdown resulting from Covid-19. During the time that it was able to open in 2020 the Gallery welcomed 4,243 visitors.

The Gallery's permanent collection has developed and continues to grow thanks to generous gifts and bequests, as well as through occasional and carefully selected purchases. In addition, the Gallery welcomes and retains on long-term loan other works by Spencer. Works from the Gallery’s collection are available for loan to exhibitions held in other institutions in the UK and abroad. In 2020 the Gallery purchased a remarkable self-portrait drawing of Stanley Spencer from 1959, thanks to generous support from the Art Fund (with a contribution from the Wolfson Foundation), the Band Trust, the V&A Purchase Grant Fund and the Friends of the Stanley Spencer Gallery.

The Gallery also promotes Spencer’s art through its content-rich website ( https://stanleyspencer.org.uk/ ) and through a varied programme of events held throughout the year. Through its expert volunteers, the Gallery engages audiences that range in age from school children to senior citizens and encompass differing abilities. An extensive and unique archive of materials related to the artist is available to students and researchers by appointment.

The Gallery offers the opportunity to purchase books, prints, postcards and gifts. These purchases can be made in person or by telephone during opening hours.

A Management Committee is responsible for the daily operation of the Gallery.

FINANCIAL REVIEW

Financial position

The finances of the Trust are regularly monitored through the Treasurer and meetings of the Management Committee and Trustees.

THE SIR STANLEY SPENCER MEMORIAL TRUST

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Reserves policy

The reserves policy is based on the following identified needs:

The principal regular sources of income for the Trust are Gallery entrance fees and the sale of goods. In the context of the challenges posed to the Gallery by Covid-19 and successive national lockdowns, the Trustees note with particular gratitude the pandemic relief grants received via local government. The Trustees would also like to place on record their appreciation of the support received from Friends of the Gallery and other donors and supporters. The Trust is managed and run by volunteers whose gift of their time and expertise enables the Gallery to operate effectively. The Trustees will continue its programme of events and exhibitions. Works by Sir Stanley Spencer RA will be purchased very selectively as they come on the market, providing the price can be safely managed within the funds available and the Gallery is able to attract additional external funding.

At the year end total unrestricted funds were £519,466 and total restricted funds were £664,828. Accordingly, the Trustees are satisfied that the level of reserves being maintained is necessary and adequate.

Risk management

The Trustees ensure that appropriate insurance is in place for fire and theft to cover the full value of the exhibits. They installed the improved fire protection system, environmental system and increased security during 2007 improvement project to minimise the risk.

Purchases of paintings, drawings and other items related to the artist and our collection are only made if affordable within the Gallery's means or through donations and grants, or by a combination of funding and reserves. Long-term and short-term loans to the Gallery are insured through the UK Government Indemnity Scheme.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust (dated 26 May 1961 and order dated 8 July 2005, amended by resolution on 19 November 2010 and further amended by resolution on 19 November 2018 and 18 November 2019), and constitutes an unincorporated charity.

The Trustees who served during the year and up to the date of signature of the financial statements were:

Dr S McKendrick Viscount W W Astor Dr S J Courtenay-Smith Ms A J Bradley Mr P A Brown Mr A de Mille Miss C Mitchell

(Appointed 10 May 2021)

THE SIR STANLEY SPENCER MEMORIAL TRUST

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Recruitment and appointment of new Trustees

Trustees are elected and co-opted under the terms of the Trust deed. New Trustees are sought by existing Trustees and after full explanation of their roles and the operations of the museum, and their commitment to the Code of Conduct for Trustees of the Sir Stanley Spencer Memorial Trust, are invited to be a Trustee. Their appointments are minuted and their names are added to the Charity Commissions' records.

The Trustees r eport was approved by the Board of Trustees.

..............................

Dr S McKendrick Chairman of the Trustees Dated: .........................

THE SIR STANLEY SPENCER MEMORIAL TRUST

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF THE SIR STANLEY SPENCER MEMORIAL TRUST

I report to the Trustees on my examination of the financial statements of The Sir Stanley Spencer Memorial Trust ( the Trust) for the year ended 31 December 2020.

Responsibilities and basis of report

As the Trustees of the Trust you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the Trust’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Mr C J Nisbet FCA Azets Audit Services

The Mill House Boundary Road Loudwater High Wycombe Buckinghamshire HP10 9QN United Kingdom

Dated: .........................

THE SIR STANLEY SPENCER MEMORIAL TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted Unrestricted
Restricted
funds
funds
funds
general designated
2020
2020
2020
Notes
£
£
£
Income and endowments from:
Donations and legacies
2
27,531
181
155,000
Charitable activities
Gallery entrance fees
19,109
-
-
Gallery sales
13,551
-
-
Events, outings and projects
-
-
-
Lectures and talks
285
-
-
Friends member subscriptions
-
1,990
-
Investments
3
1,439
4
-
Other income - Royalties
271
-
-
Total income
62,186
2,175
155,000
Expenditure on:
Charitable activities
Gallery Operational costs
4
48,761
-
33,607
Gallery sales
4
6,161
-
-
Exhibition costs
4
4,194
-
-
Events, outings and projects
4
268
-
-
Lecture and talks
4
-
-
-
Friends Membership costs
4
-
481
-
Total charitable expenditure
59,384
481
33,607
TotalUnrestricted Unrestricted
Restricted
funds
funds
funds
general
designated
2020
2019
2019
2019
£
£
£
£
182,712
12,635
394
-
19,109
42,757
-
-
13,551
27,690
-
-
-
-
2,408
-
285
6,712
-
-
1,990
-
2,859
-
1,443
2,540
161
-
271
209
-
-
219,361
92,543
5,822
-
82,368
55,936
-
33,607
6,161
13,126
-
-
4,194
5,158
-
-
268
3,725
2,167
-
-
389
-
-
481
-
1,880
-
93,472
78,334
4,047
33,607
Total
2019
£
13,029
42,757
27,690
2,408
6,712
2,859
2,701
209
98,365
89,543
13,126
5,158
5,892
389
1,880
115,988

THE SIR STANLEY SPENCER MEMORIAL TRUST

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2020

Net incoming/(outgoing) resources before
transfers
Gross transfers between funds
Net (expenditure)/income for the year/
Net movement in funds
Fund balances at 1 January 2020
Fund balances at 31 December 2020
2,802
(20,000)
(17,198)
450,253
433,055
1,694
(10,000)
(8,306)
94,717
86,411
121,393
30,000
151,393
513,435
664,828
125,889
-
125,889
1,058,405
1,184,294
14,209
3,849
18,058
432,195
450,253
1,775
(3,849)
(2,074)
96,791
94,717
(33,607)
-
(33,607)
547,042
513,435
(17,623)
-
(17,623)
1,076,028
1,058,405

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

THE SIR STANLEY SPENCER MEMORIAL TRUST

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Property, plant and equipment
8
Heritage assets
9
Current assets
Inventories
10
Trade and other receivables
11
Cash at bank and in hand
Current liabilities
12
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
13
Unrestricted funds
Designated funds
14
General unrestricted funds
2020
£
£
516,217
387,296
903,513
12,957
14,247
256,595
283,799
(3,018)
280,781
1,184,294
664,828
86,411
433,055
519,466
1,184,294
2019
£
£
552,402
192,296
744,698
13,489
14,747
290,950
319,186
(5,479)
313,707
1,058,405
513,435
94,717
450,253
544,970
1,058,405

The financial statements were approved by the Trustees on .........................

..............................

Dr S McKendrick Trustee

THE SIR STANLEY SPENCER MEMORIAL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

1.1 Accounting convention

The financial statements have been prepared in accordance with the Trust'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 (FRS 102) (effective 1 January 2019)". The Trust is a Public Benefit Entity as defined by FRS 102.

The Trust has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling , which is the functional currency of the Trust. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.3 Incoming resources

Income is recognised when the Trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

1.4 Resources expended

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

THE SIR STANLEY SPENCER MEMORIAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.5 Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings Over the period of the lease Equipment Straight line over 10 years

1.6 Heritage assets

The Trust's heritage assets consist of the works of art by one of Britain’s greatest 20th Century artists, Sir Stanley Spencer RA. They are held to provide benefit and enjoyment to the inhabitants of and visitors to Windsor and Maidenhead and are available for short term loans to exhibitions within the UK and abroad.

The art collection is not depreciated as the exhibits are not expected to go down in value. The collection is valued at a nominal cost of £1 and all subsequent additions to the collection are recorded at cost.

The Gallery recognises its responsibility as a fully accredited museum under the Arts Council England scheme, in acquiring additions to its collections, to ensure that the care, storage and use of collections is secure.

1.7 Inventories

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

1.8 Government grants

Government grants are recognised at the fair value of the asset receive d or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met . Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable . A grant received before the recognition criteria are satisfied is recognised as a liability.

THE SIR STANLEY SPENCER MEMORIAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

2 Donations and legacies

Unrestricted Unrestricted
Restricted
Total
funds
funds
funds
general designated
2020
2020
2020
2020
£
£
£
£
Donations and gifts
11,211
181
-
11,392
Grants
16,320
-
155,000
171,320
27,531
181
155,000
182,712
For the year ended 31 December
2019
12,635
394
-
In 20 20 a drawing totaling £ 10 ,000 w as donated, it has been included as an addition in heritage
assets.
Grants receivable for core activities
Government grants -Coronvirus
schemes
12,096
-
-
12,096
Association of Independent Museums
-
-
-
-
Kings Hall Trust
2,100
-
-
2,100
The Band Trust
-
-
25,000
25,000
Royal Pavillion Museums
1,874
-
-
1,874
V & A Museum
-
-
30,000
30,000
Art Fund and the Wolfson Foundation
-
-
100,000
100,000
Museum Development
250
-
-
250
16,320
-
155,000
171,320
Total
2019
£
10,529
2,500
13,029
13,029
-
2,500
-
-
-
-
-
-
2,500

The Trust received grants totalling £155,000 towards the purchase of the Self Portrait drawing (1959 ), the full value of which (£185,000) has been included as an addition in heritage assets.

The Trust also received Coronavirus grants totalling £12,096 from the local council due to the national lockdown and temporary closure of the gallery.

THE SIR STANLEY SPENCER MEMORIAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

3 Investments

Unrestricted Unrestricted Total Unrestricted Unrestricted Total
funds
funds
funds funds
general designated general designated
2020
2020
2020 2019 2019 2019
£
£
£ £ £ £
Interest receivable 1,439
4
1,443 2,540 161 2,701

THE SIR STANLEY SPENCER MEMORIAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

4 Charitable activities

Gallery
Operational
costs
2020
£
Depreciation and impairment
36,185
Insurance
15,531
Light and heat
5,273
Rent
4,200
Telephone
1,378
Sundries
1,339
Repairs and maintenance
5,610
Office costs
2,635
Custodial expenses
500
Publicity
6,531
Registrar fees
2,036
Gallery purchases
-
Exhibition costs
-
Painting conservation
-
Cost of events and outings
-
School project costs
-
Other charitable expenditure
-
81,218
Grant funding of activities
-
Share of governance costs (see note 5)
1,150
Gallery
sales
Exhibition
costs
Events,
outings
and
projects
Lecture
and talks
Friends
Membership
costs
2020
2020
2020
2020
2020
£
£
£
£
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,161
-
-
-
-
-
4,194
-
-
-
-
-
268
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
481
6,161
4,194
268
-
481
-
-
-
-
-
-
-
-
-
-
Total
2020
£
36,185
15,531
5,273
4,200
1,378
1,339
5,610
2,635
500
6,531
2,036
6,161
4,194
268
-
-
481
92,322
-
1,150
Total
2019
£
35,838
15,317
5,226
4,287
1,484
309
5,835
3,237
173
10,320
6,437
13,126
5,158
1,225
2,167
-
2,269
112,408
2,500
1,080

THE SIR STANLEY SPENCER MEMORIAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

4 Charitable activities

Charitable activities
Analysis by fund
Unrestricted funds - general
Unrestricted funds - designated
Restricted funds
Endowment funds
For the year ended 31 December 2019
Unrestricted funds - general
Unrestricted funds - designated
Restricted funds
Endowment funds
82,368
48,761
-
33,607
-
82,368
55,936
-
33,607
-
89,543
6,161
6,161
-
-
-
6,161
13,126
-
-
-
13,126
4,194
4,194
-
-
-
4,194
5,158
-
-
-
5,158
268
268
-
-
-
268
3,725
2,167
-
-
5,892
-
-
-
-
-
-
389
-
-
-
389
481
-
481
-
-
481
-
1,880
-
-
1,880
(Continued)
93,472
115,988
59,384
78,334
481
4,047
33,607
33,607
-
-
93,472
115,988
78,334
4,047
33,607
-
115,988

THE SIR STANLEY SPENCER MEMORIAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

5 Support costs

Support
costs
Governance
costs
£
£
Independent examiner's fee
-
1,150
-
1,150
Analysed between
Charitable activities
-
1,150
2020
£
1,150
1,150
1,150
2019
£
1,080
1,080
1,080

6 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Trust during the year.

7 Employees

The average monthly number of employees during the year was:

2020
Number
Total
-
Property, plant and equipment
Leasehold
land and
buildings
Equipment
£
£
Cost
At 1 January 2020
970,313
25,782
At 31 December 2020
970,313
25,782
Depreciation and impairment
At 1 January 2020
432,605
11,088
Depreciation charged in the year
33,607
2,578
At 31 December 2020
466,212
13,666
Carrying amount
At 31 December 2020
504,101
12,116
At 31 December 2019
537,708
14,694
2019
Number
-
Total
£
996,095
996,095
443,693
36,185
479,878
516,217
552,402

8 Property, plant and equipment

THE SIR STANLEY SPENCER MEMORIAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

9 Heritage assets

Heritage assets
Art Collection
£
At 1 January 2020 192,296
Purchases 185,000
Donated assets 10,000
At 31 December 2020 387,296

The collection consists of 88 items of fine art.

Summary analysis of Heritage Asset transactions

Purchases
Donations
Total additions
Impairments
Disposals
10
Inventories
Books, prints, postcards and gifts
11
Trade and other receivables
Amounts falling due within one year:
Trade receivables
Other receivables
Prepayments and accrued income
2020
£
185,000
10,000
195,000
-
-
2019
£
-
8,000
8,000
-
-
2018
£
-
-
-
-
-
2017
£
-
24,000
24,000
-
-
2020
£
12,957
2020
£
-
1,644
12,603
14,247
2016
£
4,200
-
4,200
-
-
2019
£
13,489
2019
£
84
1,992
12,671
14,747

THE SIR STANLEY SPENCER MEMORIAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

12 Current liabilities

Trade payables
Accruals and deferred income
2020
£
1,109
1,909
3,018
2019
£
3,506
1,973
5,479

13 Restricted funds

The Restricted F und is comprised of two elements. The first relates to funding received from Lottery grants specifically for the restoration of the gallery. The second relates to funding received from donors and grantmaking organisations specifically for the purchase of artworks by Sir Stanley Spencer.

Movement in funds Movement in funds
Balance at Resources Balance at Incoming Resources Transfers Balance at
1 January 2019 expended
1
January 2020 resources expended 31 December
2020
£ £ £ £ £ £ £
Restricted
Fund 547,042 (33,607)
513,435
155,000 (33,607) 30,000 664,828

THE SIR STANLEY SPENCER MEMORIAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

14 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Transfers Balance at Incoming Resources Transfers Balance at
1 January 2019 resources expended 1 January 2020 resources expended 31 December
2020
£ £ £ £ £ £ £ £ £
Acquisitions Fund 78,303 - - - 78,303 - - - 78,303
Friends of Stanley Spencer 18,488 5,822 (4,047) (3,849)
16,414
2,175 (481) (10,000)
8,108
96,791 5,822 (4,047) (3,849)
94,717
2,175 (481) (10,000)
86,411

The Acquisitions Fund has been set up to allow the gallery to purchase paintings to add to its collection as and when the opportunity arises.

The Friends of Stanley Spencer Gallery is a group of members who support the activities of the Trust through events, newletters and outings and fundraise through membership fees. This fund is the income and expenditure from The Friends.

A transfer of £20,000 was made from the Acquisitions Fund and £10,000 from Friends of Stanley Spencer to fund the purchase of the Self Portrait drawing 1959.

At the year end the Trustees agreed to transfer £20,000 of general funds to the Acquisitions Fund.

THE SIR STANLEY SPENCER MEMORIAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

15
Analysis of net assets between funds
Fund balances at 31 December 2020 are
represented by:
Property, plant and equipment
Heritage assets
Current assets/(liabilities)
General
Fund
Designated
Fund
Restricted
Fund
2020
2020
2020
£
£
£
36,389
-
479,828
202,296
-
185,000
194,370
86,411
-
433,055
86,411
664,828
Total
2020
£
516,217
387,296
280,781
1,184,294
General
Fund
Designated
Fund
2019
2019
£
£
38,967
-
192,296
-
218,990
94,717
450,253
94,717
Restricted
Fund
2019
£
513,435
-
-
513,435
Total
2019
£
552,402
192,296
313,707
1,058,405

THE SIR STANLEY SPENCER MEMORIAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

16 Financial commitments, guarantees and contingent liabilities

As part of the terms of grant funding received for the acquisition of Self Portrait Drawing (1959) the Charity would be obliged to remit to the funder part of any sale proceeds received in the event of any future disposal of the drawing. This creates a contingent liability for the charity. The value of the contingent liability is dependent on the sale price achieved and is therefore uncertain. As the charity currently has no intention of disposing of the drawing, it is not probable that a future liability will arise. As a result, the liability has not been recognised on the Statement of Financial Position.

17 Related party transactions

There were no disclosable related party transactions during the year (2019 - none).

18 Post balance sheet events

The global COVID pandemic emerged during the year and continued after the balance sheet date of 3 1 December 2020, the impact can be seen in the statement of financial activities, the income from charitable activities decreased due to the temporary closure of the gallery. The effects of the pandemic do not result in any adjustment being needed to the value of assets and liabilities at the balance sheet date.

The Trustees remain confident that they will be able to overcome the short-term operational difficulties that are affecting operations and as a consequence these accounts have been prepared on a going concern basis.