Charlty number: 310288 THE HOLBURNE MUSEUM TRUSTEE REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Bishop Fleming
THE HOLBURNE MUSEUM CONTENTS Page Reference and Admlnlstratlve Detalls of the Charltyi Its Trustee and Advisers Trustee Report Trustee Responslblllties Statement Independent Auditors. Report on the Financlal Statements 10-13 Consolldated Stalement of Flnancial Activitles 14 Consolidaled Balance Sheet 15 Charlty Balance Sheet 16-17 Consolldated Statement of Cash Flows 18 Notes to the Financlal Statements 19-45
THE HOLBURNE MUSEUM REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEE AND ADVISERS FOR THE YEAR ENDED 310ECEMBER 2023 The Holburne Museum I"The Museum.) is an independent instilution wilh registered charitable status, established by a Deed of Trust In 1883. The sole Trustee. by whom the Trust is administered. is The Holburne Museum Trust Company {'The Company,), a company limited by guarantee. The directors of The Company are detailed below: Dlrectors Edward BatUn-COW8rd, Chair1.2,4 Francesca Beauman, Vice Chair14 Martin Clarke1 Magdalen Fisher (resigned 19 May 2023)2 Sandra Forbesl.4 Jeremy Garfield- Davies2 Angel8 Gillibrandi Sukle Hemming2 Caroline Howe113 Sharanjit Leyl (appointed 7 July 2023} Charlotte Murphy Lynda Nead {appoinled 19 May 2023) Andrew Salmon Christopher Stephens1,a3,4 Rohan Surana1 Finance. Audit & Investrnenl Committee Fundraising Committee Learning & Engagement Advisory Committee Nominations Committee Charity reglstered number 310288 Princlpal office Great Pulteney Street Bathwick Bath BA2 4DB Independgnt auditors Blshop Fleming LLP Chartered Accovnlants 10 Temple Back Bristol BS16FL Bankers CAF Bank PO Box 289 West Malling Kent ME19 4TA Sollcltors Stone King Upper Borough Court Upper Borough Walls Bath BA11RG Pag8 1
THE HOLBURNE MUSEUM TRUSTEE REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 STRUCTURE AND GOVERNANCE The Trustee submits its annual report and accounts for the year ended 31 December 2023. The accounts (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 wlth applicable law and United Kingdom Accounting Standards, including FRS102 Vhe Finanoal Reporting standard applicable in the UK and Republic of Ireland" and UK Generally Accepted Practice as it applies from 1 January 2019. Reference and administration Informatlon The Holburne Museum ('The Museum.) is an independent institution with registered charitable status, established by Deed of Trust in 1883. The sole Trustee, by whom the Trust is administered, is The Holburne Museum Trust Company ('the compan), a company limited by guarantee. The directors are detailed on page 1 together wilh the names of directors of the Company who acted during the course of the year but are no longer directors at the date of this reporL Relevant registration information is shown below: The Holburne Museum Trust Company The Holburne Museum Holbume Trdding Company Ltd Museums and Galleries Commission Company Registration Number.. 4104120 Charity Registration Number: 310288 Company Registration Number 6954139 Registered Museum Number: 930 The addres5 of The Museum. and its registered office. is Great Pulteney Street. Bath BA2 4DB. The names and addresses of The Museum's professional advisers and bankers are shown on page 1 Structure, governance and management Organisational structure The Museum is an independent registered charitable trust of which the Company is the sole trustee. The Museum has one subsidiary, the Holburne Trading Company. which operates the commercial activities of the Museum, being the café, shop. car park. commercial events. Governance The Museum charity is governed by a board of directors of the Company, known as 'the Directors" who are appointed by the members of The Company. The maximum number of general Directors is eighteen. In addition, the Board may have up to Iwo Representative Directors of whom one is nominated by the University of Bath and one by Bath Spa University. New Dire¢tor5 are required to sign a "Declaration of Eligibility to Act. and a °Declaration of Interests. in order to comply with the Board's Conflicts of Interest policy. Management The Directors. who meet fonnally at least four times each year, are responsible for setting strategies and policies for the Museum and for ensuring that these are Implemented. They are also responslble for; Appointing the Museum Director. Approving the anrbual budget. Approving the Trustee's report and audited financial statements. The primary functions of the Directors are to: Oversee the key decisions affectlng the operatlon of the Museum. Assist the Museum Director in formulating policy and with significant operatlonal declslons. Review management accounts and key financial performance indicators against budget. Oversee the identificatlon and management of rlsks. Page 2
THE HOLBURNE MUSEUM TRUSTEE REPORT {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Full list of commitlees of the Board during 2023: Finance, Audit & Investrnent Committee Fundraising Committee Nominations Committee Learning & EngageTnent Advisory Committee Chair- Angela Gillibrand Chair- Sukie Hemming Chair- Sandra Forbes Chair- Caro Howell The Directors maintaln a Risk Register whlch identifies the major risks to which the Museum, Directors, staff and volunteers are exposed. This Register is maintained by the Treasurer and reviewed by Ihe Directors, most recently by the Finance. Audit and Investment Committee in September 2024, thu5 bringing risks to the attention of the Directors and enabling them to establish strategies for dealing with them. The key risks identified are.. Operational- commercial Visitor numbers fail to reach targets. commercial income targets not met Failure to meet fundraising targets Operational - fundraising Operational- premises Unexpected capital costs arising from failure of parts of the building or items of plant and equipment Increased prices of servtces make the building unaffordable Lack of financial resources to continue as a going concern Operational- premises Financial The Avon Pension Fund liability was extinguished during the year with the payment of the outstanding liability and the departure of the sole remaining employee member. In 2023. the Management Team included the Director. Chief Operating OffiGer. Head of Leaming & Engagement, Curator. Exhibitions Manager, Head of Visitor Services, Head of Marketing & Communicalions, and the Museum Administrator. The aims of the monthly Management Team meetings are: To monitor day-to-day performance (financial and operational) of the Museum in order to report to the Directors. To provide a forum for management support in particular by identifying staff professional development opportunities and addressing HR issues. To provide a platfomi for joined up thinking across departments in implementing the Museum's strategy. To generate new ideas for the furtherance of the Museum's mission and its sustainability. OBJECTIVES AND ACTIVITIES The Holbume Museum was founded in 1882 as Balh's first art museum with, at its heart. the collection of Sir William Holburne (1793-1874). In 1916 the collection moved to its present location at the end of Great Pulteney Street and in May 2011 an award-winning extension by architect Eric Pary provided space for additional galleries and a gard8n Café. The Holburne is a tasure house of Old Master palntings, portrait miniatures, porcelain. Renaissance bronzes and ceramics. silver. and embroidery. It is particulariy renowned for its eighteenth-century British portraits. most notably by Ramsay, Stubbs. Zoffany, Gainsborough and Lawrence. The colledion continues to develop. and a Collections Policy was agreed in 2018. The Holburne stages international exhibitions and other projects involving fine and decorative arts of all periods and is admired for its dynamic displays, vibrant learning and community engagement programme and innovative interpretation. Page 3
THE HOLBURNE MUSEUM TRUSTEE REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Vision Our vision is to make the Holburne an open, welcoming, inspiring and empowering space for everyone. At the heart of this vislon is the powerful relationship of art. creativity and soclal and personal wellbeing. Our vision is encapsulated by our slogan Changing Lives Through Art. We seek to deliver our Mission with Ambition and Innovation. ensuring that we always do so in ways that are Inclusive. of the highest Quality, Relevant and Sustainable. Statement of Purpose: The Holburne's charitable objects for the public benefit, as set out in its original trust deed, are: The provision and maintenance of a museum in the city of Bath for the exhibition lo the public of a collection of spe¢imens of the fine and decorative arts. The extension. enhanMent, conservation. storage anfl maintenance of the art collection. Promotion of education in art and allied subjects, and of the appreciation ofart. As a University Museum it also seeks to develop and encourage the use of the Holburne's colleGtion and the expertise of its staff as educational resources and stimuli for research. When reviewing the charity's aims and objectives and planning future activlties, the Directors have had due regard to the public benefit guidance published by the Charits'es Commission. The activities undertaken to assist in the delivery ofthe Museum's objectives are outlined below. Achievement and performance We continued with an exhibition programme based on three seasons a year with two or three small exhibitions each season. The aim is to balance different periods and types of art made up of popular and less familiar subjects. With no Core funding. we are heavily reliant on ticket income and so are obliged to programme at least one popular exhibition per season which we seek to balan with more adventurous projects that introduce new artists and art forms to our vlsitors as well as attracting new audIenS. The lead exhibition in the first part of the year was Alberta Whittle's Dipping below a waxing moon. the dance claims us for release which combined new work with a selection of Whittle's earlier films. The exhibition was the culmination of four years, working with Alberta which, though badly disrupted by the Covid pandemic. had already seen her contribution to an addition to our permanent collection displays,. curated by Artisa Fellow Jill Sutherland, that new display addressed the Holbume family's historic links to sugar plantations in the Caribbean and so to slavery by focusing on a day book from one of the family's plantations. The daybook was also the trigger for the main part of Alberta's exhibition. in our Roper Gallery, which was dominated by a group of life-size mannequins limboing under impossibly low bars. At the same time as the Alberta Whittle exhibition. we showed Albcht Durerfs suite of woodcul prints, The Great Passion. along with some of the earliest printed books from fifteenth and sixteenlh century Germany including the iconic Nuremburg Chronicle from 1493. It was a rare opportunity to see one of Durer's most important suite of prints framed on the VRII as opposed to bound in a book and was part of our on-going parinership with the Schroder Collection. We started the summer season with one of our most ambitious exhibitions ever. Painted Love: Renaissanc8 Marriage Portraits. Thls magnificent show, curated by former Royal Collection curator Lucy Whitaker. included Iconic paintings generously lent from the likes of the National Gallery, H.M. the King and such prestigious private collections as those of Lord Rothschild at Waddesdon and the Marquis of Bath at Longleat. We had ambitious income targets against that exhibition and were disappointed to miss them unlll we opened in July an exhibition of Lucie Rie ceramics (originated by Kettles Yard and previously shown In Middlesborough as well as Cambridge) which created a significant upltft in attendance. That continued in th8 autumn with the opening of Gwen John, an exhibttion selected from a larger show at Pallant House, Chichester. Alongside the Renaissance portraits. we presenled a room of densely hung drawings by Michael Simpson. a locally based artist with an international profile and an impressive reputation as an influential teacher al Bath Academy of Art. After that, in the Wirth Gallery, we opened a show of the Victorian miniature painter Sarah Biffin, who made highly accomplished miniatures despite having no hands or feet. With Lucie Page 4
THE HOLBURNE MUSEUM TRUSTEE REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Rie and Gwen John, I believe this was the first time that the Holbume hosted three exhlbitions all of female artists. In addltion to the seven exhibitions that we opened at the Holburne, we also mounted anolher at the Assembly Rooms in central Bath. Unlimited: Art for Everyone in the 1960s explored a project initiated by local engineer and entrepreneur Jeremy Fry to make unlimited editions of works of art by such major artists as Lygia Clarke, Liliane Lijn, Kenneth Martin, Mary Martin and Takis. The project had had a long gestation, delayed in part by the Covld pandemic and originally planned for the gallery at the University of Bath that we managed through 2022. Thanks to the cooperative support of the National Trust and with significant financial support from a range of donors we were able to show the exhibition in the large Tea Room of the Assembly Rooms, their Georgian grandeur echoing Jeremy Fry's home at Widcombe Manor where the works were originally fabricated, Exhibitions Albert Whittle: Dipping below a waxing moon, the dance claims us for release I Woodcuts in the Age of Duref Unlimited: Art for Everyone in the 1960s Painted Love- Renaissance Marriage Portraits l Michael Simpson: Drawing towards painting l Lucie Rie: The Adventure of Pottery Gwen John: Art & Life in London and Paris l Lucie Rie I Sarah Biffin This programme stimulated a rich series of collateral events. Our desire to grow our putatiOn as a place to see and better understand contemporary art was reflected in a number of talks and conversations with artists including Alberta Whittle. Alison Lapper and Edmund de Waal, whose refiections on Lucie Rie and exile were felt by many present to be one of the most extraordinary presentations of their lives. We were also delighted to welcome Gus Casely-Hayford, Director of V&A East. who told us about plans for the new museum in east London. Our commitment lo continue to address the Holbume's connections to the historic Caribbean plantation enomY built on en51aved labour stimulated an event with Alberta Whittle and scholars in the UK and Barbados discussing the Plantation Day Book that is a focal point in our collection displays. In a similar vein. in July we co-hosted a three-day workshop looking at Creative Practices to Explore Colonial Legacies in Cultural and Natural Heritage Sites, a partnership behveen the Holburne. University of Bath. Bath Royal Literary & Scientific Institute, National Trust and colleagues from Barbados. Other events were organised by our Supporters Cornmittee, chaired by the indefatigable Jonno Davis. Our widely respected Learning and Engagement programme continued going from strength to strength. We We able to continue the important work of our Pathways to Wellbeing groups, supporting 792 individuals with lived experience of poor mental health, thanks to the generosity of three local Charitable trusts who pledged funding for three years. We extended this work into care homes and welcomed young men to the groups. At the same time. another local charity funded us to continue our work with our six partner schools which. amongst many things. provides a golden ticket that enables every pupil to bring their families to the museum for free during school holidays. We were a leading partner in 'Reach In and Reach Oul, (RIRO). a co-produced programme for young people that supported their creativity and wellbeing and offered pathways to community engagement and cultural sector volunteering in the West of England. Our fledgling Holbume Future Collective. a group of 16-25 year olds interested in working in museums. gathered momentum and began planning the museum's first Pride event for June 2024. A total of 175 young people engaged directly through these projects. They also delivered two of the eleven monthly UpLates, some of which are produced by various student groups from the two Bath universities. Under the rubric 'Creativity for All,, our various creative workshops for adults and young people. including several free drop-in days for families and the freely accessible 'Space to Make. next to the Café, attracted over 7,000 participants. Entry to the museum is free for the UpLates on the last Friday of each month and every Wednesday afternoon. Our marketing and digital profile were considerably improved with the arrival of a new Head of Marketing & Communications, Sophie Woodward. The quality of and response to our social media presence was especlally clearly enhanced. Page 5
THE HOLBURNE MUSEUM TRUSTEE REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 The year saw some major developments around the colleclion. The new 2023 Fund is an on-going relationship with a couple who are donating both modern and contemporary prints and drawings and funds for us to buy more. We began negotiations with the owner of a large collection of 18th century fine and decorative arts the gift of which came to fruition in 2024. Most importantly, our negoliations with the Schroder famlly over the long-term loan of their magnlficent collection of Renaissance silver, paintings, ceramics. bronzes and gems and the creation of new galleries in which to house them progressed very well and contracts were signed at the end of the year confirming the loan for a minimum of enty years and the terms on which the galleries would be built and paid for, along with the transfer of much of our collection to a new facility outside Baih. Following a competitive procurement process. the hospitality firm Grayson's took over our Café. The space was closed through July whilst they refurbished and refurnished it and the changes greatly improved the environment and. most importantly. the acoustics which had been a persistent problem. The quality and range of the food offer was improved also. We took the opportunity to drop the name 'Garden Café, and replaGed it with 'The Holburne Café. which is how people tend to refer to the place anyway. The garden played host to a summer outdoor theatre festival again but the appalling weather seriously impacted attendance and the opportunity it offered the Café for increased custom. Nevertheless. the new caterers were able to offer the museum an Increased minimum annual rent. FINANCIAL REVIEW Revlew of the year Total income for the year amounted to £2.242.185 (2022: £1.886,454). an increase of £355.731 (190/0) over the previous year. Admissions were £424,405. up 111kn1 from 2022. Shop sales saw an increase of 3Yo, however, Café and car parking decreased by 3%. Venue Hire was £59.5k (2022: £100.1k). a de¢aSe of 40.10A. Total expenditure was (£2.447.Ok (2022.. £1,832.5k). In addition to these funds the Endowment gains totalled £287.2k resulted in an overall net gain of £82.4k compared to a deficit of (£316.3k) in 2022. The Museum's net assets at 31 December 2023 amounted to £13.24rn, of which Endowment Funds stood at £3.78m. Restricted Funds at £8.18m, while Unrestricted Funds decreased to a total of £1.28m. Details of Funds The Directors, long-term objective is to maintain the following funds, which are separately recorded and accounted for in the Museum's records: Endowment Fund - this comprises the OCMSI National Lottery Herilage Fund Catalysl: Endowments Fund award, together with subsequent donations. This year a further £250k of Endowment donations were received. with an additional £200k currently waiting lo be transferred at 31st December to the Endowment fund. Under the Total Asset Return basis of accounting, 3Yo of the net increase in the value of investments has been added to the Endowment Fund, the remainder being added to Unrestricted Funds. Restricted - Development Fund this comprises funds donated, and grants raised to finance the Museum, major redevelopment scheme (including the Gardener's Lodge development)- The annual depreciation charges on freehold and leasehold propety, and on fixtures and fittings financed from this Fund. are Charged against the Fund. Restricted - Heritage Assets Fund this represents the value of Heritage Assets purchased by or donated to the Museum. Restricted- Specrfic Purposes Fund - these are the unspent balances of grants and donations made to the Museum with a specific purpose or intent. Page 6
THE HOLBURNE MUSEUM TRUSTEE REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 UnreslfiGted Fund - these are the accumulated revenue surpluses of the Museum, provlding finance for the core operating costs relating to the on-going activities of the Museum. Investment pollcy and perfomiance The assets of the Endowment Fund are invested through a professional investment manager, Sarasln & Partners, with a medium to low risklcapital preservation Total Asset Return mandate in accordanGe with the powers given to the Trustee under the Trustee Investment Act 1961. After a further £250,000 was invested in the year, funds totalled £3.78m (2022 £3.29m), recording a gain during the year £287.2k (2022: £370.2K loss) before investment management costs which amounted to £51.8k (2022: £68.5k). The performance of the investments is reported quarterly to the Directors. Unrestricted Funds operational approach The Directors are concerned lo maintain a level of unrestricted reseNes which will provide sufficient working capital and enable the Museum io cope with unexpected shortfalls in income or increases in operating costs. A three-year Implementation Plan had been prepared, the objective of which is to preserve the Endowment Funds and ultimately to increase them to a level at which the total return income generated will cover the annual deficit of the Museum, but this is being re-assessed in light of the changes arising as a result of the Covid19 pandemic and its impact on the Museum. It is the long-term aim of the charity to maintain unreslrided reserves. which are the free reserves of the Museum. at a level that is sufficient to cover the running costs of the Museum for at least six months. being in the region of £700.000. Avon Pension Fund The Museum s participation in the Avon Pension Fund defined benefit scheme for its employees resulted in a reduction of £721.500 in the calculated net aGtuarial deficit during Ihe year. A decision was made to crystallise the obligation on the pension fund and a payment of £115,500 was made to thi5 effect in April 2023. Plans forfuture periods Though we keep it under review, we remain committed to the Vision agreed by staff and Directors in 2019 that set the triangular relationship of art. creativity and wellbeing at the heart of our organisation. We intend to deepen the Holburne's commitment to supporting individual wellbeing through art and to playing a significant role in the wellbeing of our communities. We a¢tÈvely pursuing our long-term arnbitions to open up MOE of our historic building to public use, to reconceive the presentation of the building and the collection. and to reconceive the grounds as a destination garden in line with our commitment to sustainabllity. During 2023, we actively sought off-site accommodation to which staff might be decanted with a view to creating new gallery and learning spaces and an expanded shop within the museum. To grow the Endowment Fund remains a key priority for long-term sustalnability with the immediate aim of raising the money that will enable us to fully realise the potential of the pledged £1.000.000 match-funding. At the end of 2023. we finalized plans for the new Schroder galleries on thè Lower Ground and First Floors as well as signing the contracts that set out the terms for the long-term loan of the Schroder Collection and for the funding of the project to create new galleries and an appropriate context on the LoVr Ground Floor. We were also preparing a further funding application to the Foyle Foundation to refurbish the toilets. enhance the security as required by the contract with the Schroder Collection, and to ¢ate a new display on the Lower Ground floor from the Holburne Collection. We recogntze the potential for the Schroder Colledion loan and new galleries to attract media attention and to raise the profile and status of the Holburne In general terms. There are longer-temi ambitions to brin9 more of the garden into public use and to better align our landscape with the climate emergency, setting out to create an environment that encourages biodiversity whilst engaging young people and families. We hope to comblne these ambltions with that to de-carbonise the current system of gas-powered boilers. Page 7
THE HOLBURNE MUSEUM TRUSTEE REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 It Is widely recognized that, in recent years. the Holburne has changed Its approach and is now more playful in tone and more approachable for many. In large part, this is driven by the exhibition programme, and we plan to find ways of embedding this new approach in the pemianent presentalion of Ihe museum. Installing artlsl's Interventions in the hallway. for example. ielhinktng our interpretation. cteating envlronments In whlch Visitor5 feel able to relax. and introducing changes to Ihe garden. Rosponsibility for the accounts and financlal statements The Charities Act 2011 requires Ihe Ttustee to prepare financial slatements for each financial year Ihat provide a true and fair view of the state of affairs of the charity's financial activities during the year and of its financial position at Ihe end of Ihe year. In preparing Ihe financial statements, the Trustee is required to: Select suitable accountng poticie5 and apply them consistenlly. Make judgements and estimates that are reasonable and prudent. State whether applicable accounting slandards have been followed. subject to any material departure5 disclosed and explained in Ihe firncial statements. Prepare the financial statements on a going concern basis unless it Is inappropriate that the museum will continue operatlng. The Trustee is responsible for keeping proper accounting records which disclose with reason8ble accuracy the financial posltion al any time. and which ensure Ihat th8 financial statements comply with the applicable rules and regulations. It 15 also responslble for safeguarding Ihe assets of the tharlty and for thelr proper application under charity law, including taking reasonable Steps for the prevention and detection of fraud and other irreguiarftles. The Trustee is satisfied that the responsibilities set out above have been diSGharged and that these accounts have been prepared in accordance with the applicable accounting standards. save where stated in rPect of donated heritage assets Audltors Bishop Flemlng have expressed their wlllingness to ¢ontlnue In offlce as auditors and a resolutlon proposlng their reappointment will be submitted to the forthcoming Annual General Meeting. Thanks The Directo convey their sInre thanks to all the stsff and volunteers who have provided their support to the Museum. without which it could not continue to honour and deliver its response to the charitable objectives laid down for it by its founder irl 1882. The Trustees. Report. incorporating a strategic report, was approved by order of the Board of Trustees, as the company directors. and signed on its behalf by: Edwa Chairman ayntun-coward Angela Gillibrand Treasurer Date: 161121 I02ii.
THE HOLBURNE MUSEUM STATEMENT OF TRUSTEE RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustee is responsible for preparing the Trustee Report and the flnancial statements in accordance with applicable law and United Kingdom Accounting Standards {United Kingdom Generally Accepted Awountlng practi). The law applicable to charities in England & Wales 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 Group and the CharFty and of their incomlng resources and application of resources, including their income and expendilure, for that p&riod. In preparing these financial statements, the Trustee are required to- select suitable accounting polides and then apply them consistently; observe the methods and principles of the Charities SORP (FRS 102); make judgements and accounting estimates that are reasonable and prudenl,. stale whelher applicable UK Accounting Standards (FRS 102) have been followed. subject to any material departures disclosed and explalned in the financial statements-, prepare the financial statements on the going rnncern basis unless il is inappropriate to presume that the Group will contlnue in business. The Trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charitys transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them to ensure that the finanGial statements comply with the Charities Act 2011. the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Group and the Charty and hen for tsking reasonable steps for the prevention and deteclion of fraud and other irregularities. Page 9
THE HOLBURNE MUSEUM INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE HOLBURNE MUSEUM OPINION We have audited the financial statements of The Holburne Museum (the'parènt ¢harity) and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Financlal Activitles, the Consolidated Balan Sheet. the Charity Balance Sheet. the Consolidated Statement of Cash Flows and the related notes, includlng a summary of significant accounting policies. The financial reportin9 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 Accepled Accounting Pract1). In our opinion the financial statements: give a true and falr view of the state of the Group's and of the parent charitys affairs as at 31 December 2023 and of the Group's incoming resources and application of resources, Including its Income and expenditure for the year then ended: have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Praclice; and have been prepared in accordance with the requirements of the Charities Act 2011. BASIS FOR OPINION We conducted our audit in accordance wlth Intemational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors. responsibilities for the audit of the financial statements section of our report. We are independent of the Group In accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, inGIuding the Financial Reporting Council's Ethical Siandard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We belleve that the audit evldence we have obtained is sufficient and appropriate to provide a basls for our opinion. CONCLUSIONS RELATING TO GOING CONCERN In auditing the financial statements. we have concluded that the Trustee's use of the golng concem basis of accounting in the preparation of the financial statements is appnjpriate. Based on the work we have performed. we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitls ability to continue a5 a going concern for a period of at least knelve months from when the financial slalements are authorised for issue. Our responsibilitles and the responsibllllies of the Trust88 Wlth respect to going conGern are described in the relevant sections of this report. OTHER INFORMATION The other information comprises the information included in the Annual Report other than the finandal slatements and our Audilors. Report thereon. The Trustee Is responsible for the other information contained within the Annual Report. Our oplnion an the financial statements does not cover the other information and, except to the extent otheNise expliGitly 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 olher information Is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be malerially misstated. If we identify such materlal Inconsistencies or apparent material misstatements. we are required to determlne whether this gives rise to a material misstatement In the financial statements themselves. If, based on th8 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. Page 10
THE HOLBURNE MVSEUM INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE HOLBURNE MUSEUM (CONTINUED) mAERs ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the followlng matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you If, In our opinion.. the information given in the Trustee Report ts inconsistent in any malerial respect with the financial Statements: or the parent Charity has not kept sufficient accounting records; or the parent Charity financial statements are not in agreement with the accounting records and relurns., or we have not received all the information and explanations we require for our audit. RESPONSIBILITIES OF TRUSTEES As explained more fully In the Trustee Responsibilities Statement. the Trustee is responslble for the preparation of the financial statements which give a true and fair view. and for such internal control as Ihe Trustee determines is necessary to enable the prepardtlon of financial statements that are free from material misstatement. whelher due to fraud or error. In preparing Ihe financial statements. the Trustee is responsible for assesslng the Group's and the parent charitys ability to continue as a going concem. discloslng. as applicable, matters related to going concem and using the going conrn basls of accounting unless the Trustee either Intends to Ilquldate the Group or the parent charity or to cease operations, or have no realisiic alternative but to do so. Page 11
THE HOLBURNE MUSEUM INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE HOLBURNE MUSEUM (CONTINUED) AUDITORS. RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS We have been appointecl as auditor under section 151 of the Charities Act 2011 and report In accordance wllh the Act and relevant regulations made or having effect thereunder. Our objectbves are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or eor, and to issue an Auditors, 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 ISA5 (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered malerial if. individually or in the aggregate, they could asOnablY be expected to influence the economic deoisions 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 responslbilities. oullined above, to detect material misslatemenls in respect of irregularlties, including fraud. The exlent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We have considered the nature of the sector, control environment and financial Performan., We have considered the results of enquiries with management and the direGlions of the trustee company in relation to their own identificaiion and assessment of the risk of irregularities within the entity- We have reviewed the documentation of key processes and controls and performed walkthroughs of transactions to confirm that the systems are operating in line with documentation. and We have considered the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud. As a result of these procedures. we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to revenue recognition, with a particular risk in relation to year-end cut off. In common with all audits under ISAS (UK) we are also required to perform specific procedures to respond to the risk of management override. We have also obtsined understsnding of the legal and regulatory frameworks that the Charity operates in. focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Charities Act 2011. Charity SORP 2019, FRS 102 and the terms and conditions attaching to matertal grants received by the Charity. In addition. we consldered the provisions of other laws and regulations that do not have a direct effect on th8 financial staternents but compliance with which may be fundarnental to the Charltys abilEty to operate or avoid a material penalty- Thesa included data protection regulations, health and safely regulations and employment legislation. Our prOdureS to respond to risks Identified included the following.. Reviewing the financial statement disclosures and tssting to supporting documentation to assess compliance with provisions of relevant laws and regulations descrfbed as having a direct effect on the financial statements; Performlng analWlcal pro¢edur8S to identify unusual or unexpected relationships Ihat may Indicate risk$ of material mlsstatement due to fraud- Review of board mlnutes., Enquiring of management in relation to actual and potential claims and litigations: Performing detailed transactional testing in relation to the recognltion of revenue. specffically grants, with particular fo¢us around year-end cut off- and In addressing the risk of fraud through management override of ¢ontrols, testing the appiopriateness of Journal entries and other adjustm8nts. We also communicated identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with law5 and regulations throughout the audit. Page 12
THE HOLBURNE MUSEUM INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE HOLBURNE MUSEUM (CONTINUED) As a result of the inherent limttations of an audit, there is a risk that not all Irregularities, Including a material misstatement in the financial statements or non-compliance wlth laws and regulations. will not be detected by us. The risk Increase5 the further removed compliance with a law or regulation Is from the events and transactions reflected In the financial statements, given we will be less likely to be aware of it, or should Ihe irregularity occur as a result of fraud rather than a one off error, as this may involve intentional concealment. forgery, collusion, omission or misrepresentstion. A fvrther descrlptlon of our responsibilities for the audit of the finandal stalements is located on the Flnancial Reporting Council's website al.. www.frc.or -uklaudilorsres Auditors. Report. onsibilities. This descTiplion forms part of our USE OF OUR REPORT This report is made solely to the charitys Trustee, as a body. in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitys trustees those matters we are required to state to them in an Auditors. 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 trustee forour auditwork, for this report. or for the opinions we have formed. Bishop F eming LLP Chartered Accountants statutory Auditors 10 Temple Back Bristol BS16FL Date.. Bishop Fleming LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006. Page 13
THE HOLBURNE MUSEUM CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestricted funds 2023 Restricted Endowment funds funds 2023 2023 Total funds 2023 Total funds 2022 Note Income and endowments from: Donations and legacies Charitable activities Other trading activities Investments Oiher income 651.882 448,301 305,037 6.043 207,910 373,012 250,000 1,274,894 448,301 305,037 6,043 207,910 1,111.131 417.129 356,800 1.394 Total income and endowments 1.619,173 373,012 250,000 2.242,185 1.886,454 Expenditure on: Raising funds Charitable activities 9.10 151.862 1.706.904 51,848 203,710 2,243,306 227.819 1.604.712 536.402 Total expenditure 1,858.766 536.402 51.848 2.447,016 1.832,531 Net {expenditure)fin¢om e before net gain51(losses) on Investments Net gainsl{losses) on investments Net movement In funds before other recognised gainsl(losses) (239,593) (163.390) 198,152 (204,831) 53.923 287,240 287.240 (370.239) (239.593) (163,390) 485,392 82,409 (316.316) other recognised gainsl(losses): Actuarial gains on deflned benefit pension schemes Net movement In funds 29 949,000 (239,593) (163,390) 485.392 82,409 632,684 Reconclliatlon of funds: Total funds brought forward 1.524,424 {239,5931 8,344,742 1163,390) 3,290,708 485.392 13,159,874 82,409 12,527.190 632,684 Net movement in funds Total funds carried forward 1,284,831 8.181.352 3,776,100 13,242,283 13.159.874 Page 14
THE HQLBURNE MUSEUM CONSOLIDATED BALANCE SHEET AS AT 310ECEMBER 2023 2023 2022 Note Flxed assets Tangible assets Heritage assets Investments 16 17 7,759,302 827.000 4.022,999 7.991,793 827,000 4,075.603 18 11609.301 12.894.396 Current assets Stocks Debtor5 Cash at bank and in hand 19 20 26.721 295,114 587.638 23.456 386.010 191,028 909A73 600.494 CreditOrs-. amounts" falling due within one year 21 (276.491) (335,016) Net ¢urrentassets 632,982 265,478 Total assets less current Ilabilities 13.242.283 13.159.874 Total net assets 13,242,283 13.159,874 Charlty funds Endowmenl funds kestricted funds: 3.776,100 3290.708 Development fund Heritage assets Special purposes funds: Revenue 22 7.182,847 827.000 171,505 7.359,079 827.1)00 158.663 Total restricted funds Unrestricted funds 22 22 8.181.352 1,284,831 8.344,742 1,524,424 Total fund5 13,242.283 13.159,874 Thé financial statements were approved and aulhorised for issue by'lhe Trustee and signed" on their behalf by-. Edward Bayntun<oward Chair of Trustees Angola Gillibrand Treasurer Date: ICI ILI LOLLF Th"e notes on pages 19 to 45 form part of these financial staternents.
THE HOLBURNE MUSEUM CHARITY STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Note Flxed assets Tangible assels Heritage assets Investments 16 7,759,302 B27,000 4,023,099 7.991.793 827.000 4.075.703 17 18 12,609.401 12.894,496 Current assets Debtors 20 334,377 547.B10 504,351 31.905 Cash at bank and In hand 882.187 536.256 Creditors.. amounts falling due within one year 21 (249,316) (270,889) Net current assets 632,871 265.367 Total assets less current liablllties 13.242,272 13,159,863 Total net assets 13,242.272 13,159,863 Page 16
THE HOLBURNE MUSEUM CHARITY STATEMENT OF FINANCIAL POSITION (CONTINUED) AS AT 31 DECEMBER 2023 2023 2022 Note Charlty funds Endowment funds 3.776.100 3.290.708 Restricted funds= Development fund Heritage assets special purposes funds= Revenue 22 22 22 7.182.847 827,000 171.505 7.359,079 827,000 158,563 Total restrictsd funds 22 8,181.352 8.344,742 Unrestricted funds 1,284.820 1.524.413 Total unrestricted fijnds 22 1,284,820 1,524.413 Total funds 13,242,272 13.159,863 Thé financial statements were approved and authorised for issue by the Trustee and signed on Iheir behalf by: kllfr oa Edward Bayntun£oward Chair o* Ttustees Angela Gillibrand Treasurer Ljate: Thè notes on pages 19 to 45 form part of these financial ststements.
THE HOLBURNE MUSEUM CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Cash flows froni operating actlvlties Net Cash used in operating aclivitles 140,067 144,022 Cash flows from Investlng actlvities Dividends and income from investments Purchase of tangible fixed assets PrOedS from sale of investfflents Purchase of investments 6.043 1.394 (9,035) 450,500 1200,000) (420,000) Net cash provlded byl(used In} Investlng activlties 256,543 (427,641) Cash flows from fEnanclng activilies Net cash provided by financlng actlvities Change In cash and cash equlvalents In the year Cash and Cash equivalents at the beginning of the year 396.610 (2B3,619) 474.647 191.028 Cash and cash equivalents at the end of the year 587,638 191,028 The noles on pages 19 to 45 form part of these financial statements Page 18
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 GENERAL INFORMATION The Charity is a reglstered charity In England and Wales and is unincorporated. The address of the principal offlce Is The Holburne Museum, Great Pulteney Street. Bath. BA2 4DB. ACCOUNTING POLICIES 2.1 Basls of preparation of flnancial ststements The financlal statements have been prepared in accordan with the Charities SORP {FRS 102) - Accounting and Reporting by Charitses: Statement of Recommended Practice applicable to charlties 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 Financial Reporttng Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. The financial statements have been prepared to give a 'true and fairf view and have departed from the Charities (Accounts and Report5) Regulations 2008 only to the extent required to provide a 'true and faiff view. This departure has involved following the CharÉltes SORP (FRS 102) published in October 2019 rather than the Accounting and Reportlng by Charities= Statement of Recommended Practice effective from 1 April 2005 which has since been wilhdrawn. The Holbume Museum meets the definition of 8 public benefit entity under FRS 102. Assets and liabillties are initially recognlsed at historical cost or transaction value unless otherwise staled In Ihe relevant accounting policy. The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balanc8 Sheet consolidate the financial statements of the Charity and Its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. 2.2 Going concern The activities of the Charity, together with the factors likely to affect its future development and performan are set out in the Trustee's Annual Repori. The financial position of the Charity and its cashflow are presented in the financial statements and accompanying notes. The directors consider that the Charity has adequale resources to continue in operational existence for the foreseeable future. For this reason. they continu8 lo adopt the going concern basis in preparing the financial statements. Page 19
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES (continued) 2.3 Income All Income is recognlsed once the Charlty has entitlement to the Income, it Is probable that the income will be received and the amount of Income receivable can be measured lIablY. The recognition of income from legacies is dependent on establishing entiuement. the prubability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has suffiGtent evidence that a gift has been left to them (through knowledge of the existenc8 of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to sat15fy claims in Ihe estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable. which wlll generally be the expected cash amount to be distributed to the Charity, can be reliably measured. Grants are included in the Consolidated Statement of Financial Activltie5 on a receivable basis. The balan of income received for specific purposes but not expended durlng the period ig shown in the relevant funds on the Balance Sheet. Where income is receiv8d in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entiuement occurs before income is received, the income is accrued. 2.4 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third paty, it is probable that a transfer of economic benefits w511 be required in settlement and Ihe amount of the obligation can be measured reliabty. Expenditure is classified by activlty. The costs of each activity are made up of the total of direct costs and shared costs. including SUPPOrt costs involved in undertaking each aclivity- Direct costs attributable to a slngle actlvlty are allocated directly to that acirvity. Shared costs which Contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreclatlon charges allocated on the portion of the asset's use. Expenditure on raislng funds includes all expenditure Incurred by the Group to raise funds for its charilable purposes and includes costs of all fundraising activities events and non-charitable trading. Expenditure on charitable activilies is incurred on directly undertaking the activiknes which further the Group's obje¢ttves. as well as any associated support costs. ASI expènditure is indusive of irrecoverable VAT. 2.5 Interest recelvable Interest on funds held on deposlt is Included when re¢eivable and the amount can be measured reliably by the Group: this is normally upon notification of the interest paid or payable by ihe institution with whom the funds are deposlt8d. Page 20
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES (continued) 2.6 Taxatlon The Charily is consldered to pass the tests set out In Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definltlon of a Charitable company for UK corporalion tax purposes. Accordingly. the Charity is potentially exempt from tsxation in respect of income or capital gains received wlthln categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or galns are applied exdusively to charitable purposes. In addition, its subsidiary incurs no current tax charge as all its profits. which would otherwise be taxable. are distributed to the Museum by way of Gift Aid and thus no tax liabllity arises. The Group receives Museum and Gallery Exhibition Tax Relief. which is surrendered. giving rise lo a tax repayment to the Group. The arising credit Is recognised In the year In which the related expenditure is incurred. The credit is recognised in other income in the Consolidated Statement of Financial Activities. Gift Aid recoverable on certain donation. and where applicable, has been included in income. 2.7 Tanglble fixed assets and depreciation Tangible fixed assets costing £2.000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be rneasured reliably. Tangible fixed assets are initially recognised at cost. After recognition. under the cost model. tangible fixed assets are measured at cost less accumulated depreciation and any accumulated Impalm?enl losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tanglble fixed assets less their residual value over their estimated useful lives. Depreciation is provided on the following bases. Freehold property Leasehold propety Fixtures and fittings (pre- development) Fixtures and fittings (post- development) 50 years straight line over the period of the lease 20°k reduclng balance 15 to 30 years straight line 2.8 Herltage assets Where heritage assets have been purchased, they are initially rècognised at cost. After recognition, under the cost model, herltage assels are measured at cost less any accumulated depreciation and any accumulated Impalrment losses. 2.9 Inveslments Fixed asset investments are a form of financial instrument and are Inlllally rerognised at their transaction cost and subsequently measured at fair valLte at the Balance Sheet date, unless Ihe value cannot be measured reliabty in which case it is measured at Cost less impaiment. Investment gains and losses, whether reallsed or unreallsed, are combined and presented as 'GainsllLosses) on investments, In the Consolidaled Statement of Financial Activities. Investments In subsidlarles are valued at cost less provision for impalmient. Page 21
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES (contlnued) 2.10 Stocks stocks are valued at the lower of cost and net reallsable value after making due allowance for obsolete and slow-moving stocks. 2.11 Debtors Trade and olher debtors are recognised at the settlement amount 8fter any trade discount offered. PrepanentS are valued at the amount prepaid net of any trade discounls due. 2.12 Cash at bank and In hand Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of the months or less from the date of acquisition or opening of the deposlt or similar account. 2.13 Llabllities and provisions Liabilities are recognisecl when there is an obligation at the Balance Sheel date as a result of a past event. it is probable that a transfer of economic benefit will be required in settlement, and the amount of the 5etUement can be estlmated reliably. Llabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanc8d payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts requlred to settle the obligation. Where the effect of the time value of money is material. the provision is based on the present value of those amounts. discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwlnding of the discount is recognised In the Consolidated Statement of Financial Activities as a finance cost. 2.14 Flnanclal Instruments The Group only has financial assets and financial liabiliiies of a klnd that qualify as baslc financial instruments. Basic financlal instruments are initially recognised al transaction value and subsequently meaSUd at their settlement value with the exception of bank loans which are subsequently measured at amortised cost uslng the effective interest method. Page 22
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES (contlnued) 2.15 Penslons The Group operates a defined contrtbution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year In accordance with the wles of the scheme. Defined benefit pension and other post-employment beneflts The present value of the defined benefit pension and other post-employment benefit obligations depends on a number of factors that are detemiined on an acluarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for pension and other post- employment benefits include the discount rate. Any changes in these assumptions have an effect on the carryTng amount of pension and other p0st-empl0nent benefits. After tsking approprlate professional advice. Bath and North-Easl Somerset Council determine the appropriate dtscount rate at Ihe end of each reporting period. This is the interest rate that should be used to deterrnlne the present value of estimated future cash oufflows expected to be requlred to settle the pension obligations. In determining the appropriate discount rate. consideration is given to the interest rates of high-quality corporate bonds that are denominated in the Currency in which the benefits are to be paid and that have term5 to maturity approximating the terms of the related pension Ilability. other key assumptions relevant to the defined benefit pension and other post-employment benefit obllgations are based in part on current market conditions. Additional disclosures conMIng these obligations are given in note 20. Penslon costs - defined benefit pension schemes Current servlce costs. past service costs and gains and losses on settlements and curtailments are charged to appropriate resour$ expended categories in the Statement of Financial Activities. Past service costs are recognised over the vesting perlod or tmmedlately if the benefits have been vested. When a setttement {eliminating all obligations for benefits already accrued) or a curtailment (reducing future obligations as a result of a material reduction in the scheme membership or a reduction future entitlèmenl) occurs. the obligation and relaled plan assets are admeasured using current aciuarial assumptions and the resultant gain or loss is recognised in the Statement of Financlal Activities during the period in which Ihe settlèment or Gurtallment 0urS. The interest cost and the expected retum on assets are shown as a net amount as other finance Costs or income. Net penslon finance costs are allocated to appropriate resources expended categories in the Statement of Financial Activities. Net pension finance income is recognised a5 an incoming resource in the Ststement of Financial Activities. Actuarial gains and losses are reGognised immediately as other recognised galns and losses In the Statement of Financial Activities. Pension scheme assets are valued at fair value at the balance sheet date. Fair value is b85ed on market prl¢e inft)rmation and In the case of quoted securities is the published bid price. Pension scheme Siabilities are measured on en actuarial basis using the projected unot method and are discounted to their present value using a rate equivalent to the current rate of retum on a high-quallty corporate bond of equivalent currency and term to the scheme liabilities. The penslon scheme deficit is recognised in full on the balance sheet. Penslon costs - defined contributlon penslon schemes Contrlbutions are charged lo the Statement of Financlal Actlvities as they become payable In accordance with the rules of the scheme. Page 23
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES (continued) 2.16 Fund accountlng Restricted and unrestricted income funds unrestricted Income funds are expendable al the discretlon of the Directors in furtherance of the objects of the Museum. Funds deslgnated for a particular purpose are also unreslricted. The Museum receives grants and donations for purposes specified by the donors and funds are expended In accordance with donors, wishes. Such funds are restricted funds and are disclosed In the accounls under one of the headings Specifi¢ Purposes Funds or Development Funds. Endowment funds the Catalyst Endowment Fund is the Heritage Lottery FundlDepartment for Culture Media and Sport Catalyst: Endowment fund created from a grant of £1 million from the Herltage Lottery Fund whlch, together with 1.1 matched funding, was received and raised over th8 period to June 2016. The capital must be retained as a permanent endowment for a minimum period of 25 years. The real value of investment returns on this fund will be used to SUPPOrt the operations of the Museum and will be transferred annually to the general fund. The Special Acquisitions Fund comprised the proceeds of sale of an item from the collection in 2011 for £1 million, with the balance in the fund amounting to £920.000' the Museum has received legal advlce which has led to this Fund being reclassified as part of the Endowment of the Museum. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT The preparation of the financial statements requires management to make judgments. estimates and assumplions that affect the amounts reported. These estimates and judgments are continually reviewed and are based on experien and other factors, including expectations of future events that are believed lo be reasonable under the circumstances. INCOME FROM DONATIONS AND LEGACIES Unrestricted Restricted Endowment funds funds funds 2023 2023 2023 Total funds 2023 Donations Universlty contrlbutions Exhibitions donations Pathways Programme Grants 37.617 61.000 35,000 37,617 61,000 35,000 Grants for exhibitions Capitsl grants Pathways Programme Other grants Grant 5 91.045 60.000 45.000 43,350 91,045 60,000 45,000 43,350 Total donatlons & granls 373.012 373,012 Page 24
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 INCOME FROM DONATIONS AND LEGACIES (continued) Unrestricted Restricted Endowment funds funds funds 2023 2023 2023 Total tunds 2023 Donatlons 651.882 250,000 901,882 Subtotal 651.882 250.000 901.882 Total 2023 651,882 373,012 250,000 1,274,894 Unrestricted funds 2022 Restricted Endowment funds funds 2022 2022 Total fijnds 2022 Donatlons General donations Raised from Patrons and Frionds Universlty contributions Grants 89.837 170,574 100.000 89,837 170,574 100.000 General grants 42.000 42,000 Total donations & grants 360.411 42,000 402,411 Donations Legacies 274,884 420.000 694.884 13.836 13.B36 Total 2022 374,247 316,884 420,000 1.111,131 INCOME FROM CHARITABLE ACTIVITIES Unrestrlcted funds 2023 Total funds 2023 Museum admissions Exhibltion costs recharged Learnlng lectures. concerts. workshops etc. 424.405 424,405 23.896 23,896 448,301 448,301 Page 25
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 INCOME FROM CHARITABLE ACTIVITIES (contlnued} Unrestricted funds 2022 Total funds 2022 Museum admlssions Exhibition costs recharged Learning leclures, concerts. workshops etc. 383,608 14,034 19,487 383,608 14,034 19,487 417.129 417.129 INCOME FROM OTHER TRADING ACTIVITIES Income from fundralslng events Total funds 2023 Plant sales Unrestricted funds 2022 Total funds 2022 Plant sales 1,890 1,890 Income from non charltable Iradlng actlvltlos Unrestricted funds 2023 Total funds 2023 Museum shop sales Income from cafe and car parklng Venue hlre (including filming fees) Other income 144.266 97.488 59,505 3,778 144.266 97.488 59.505 3.778 305,037 305,037 Page 26
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 INCOME FROM OTHER TRADING ACTIVITIES (continued) Income from non charltable tradlng actlvities (continued) Unrestricted funds 2022 Total funds 2022 Museum shop sales Income ffom cafe and car parking Venue hlre (Includlng filming fees) other income 138,989 100.277 100.087 15.557 138,989 100,277 100,087 15.557 354,910 354.910 INVESTMENT INCOME Unrestricted funds 2023 Total funds 2023 Bank Interest 6.043 6.043 Unrestiicled funds 2022 Total funds 2022 Bank intérest 1,394 1,394 OTHER INCOMING RESOURCES Unrestricted funds 2023 Total funds 2023 Tolal funds 2022 Museum & Gallery Tax relief 207.910 207,910 Page 27
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 EXPENDITURE ON RAISING FUNDS Fundraising trading expenses Unrestrlcted funds 2023 Total funds 2023 Salary costs Oiher costs of generating fur)ds 144,872 6,990 144,872 6,990 151,862 151.862 Unrestricted funds 2022 Total funds 2022 Salary costs Other costs of generating funds 143.098 16.230 143,098 16,230 159.328 159,328 10. INVESTMENT MANAGEMENT COSTS Endowment funds 2023 Total funds 2023 Investrnenl management fees 51,848 51,848 Endowment funds 2022 Total funds 2022 Investment management fees 68,491 68,491 Page 28
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 11. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES Summary by fund type Unreslrlcted Restrlcted funds funds 2023 2023 Total 2023 Museum activities (inc. cost of shop sales) Learning activities Exhibition aclivities 734,909 304.117 667.878 492,169 44,233 1,227.078 348.350 667,878 1,706,904 536.402 2,243.306 Unrestricted funds 2022 Restricted funds 2022 Total 2022 Museum activities (inc. cost of shop sale5) Learning activities Exhibition activities 390.636 222.107 483.624 479.049 29.296 869,685 251,403 483.624 1,096,367 508,345 1.604.712 12. ANALYSIS OF EXPENDITURE BY ACTIVITIES Activltles undertaken directly 2023 Support costs 2023 Total funds 2023 Museum activities (inc. cost of shop sales) Learning activitie5 Exhibition activities 917.936 123.722 263.551 309.142 224.628 404,327 1,227,078 348,350 667,878 1.305,209 938.097 2,243,306 Page 29
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 12. ANALYSIS OF EXPENDITURE BY ACTIVITIES (conllnued) Activities undertaken directly 2022 Support costs 2022 Total funds 2022 Museum activities (inc. ¢ost of shop sales) Learning activities Exhibition activities 643.979 87.402 188.424 225,706 164,001 295.200 869.685 251.403 483.624 919.805 684.907 1.604,712 ANALYSIS OF SUPPORT COSTS Museum Actlvitles 2023 Education Actlvltles 2023 Exhlbition Actlvlties 2023 Total funds 2023 staff costs Premises Other administrative costs Governan costs 40.402 110.591 135.674 22.475 33,669 92.160 98.799 60.604 165,887 177,836 134.675 368,638 412,309 22,475 309.142 224.628 404,327 938,097 Museum Activities 2022 Education Activities 2022 Exhibition Activities 2022 Total funds 2022 Staff costs Premises Other admlnlstrallve costs Governance costs 37.413 94.682 78,811 14,800 31.177 67.148 65.676 56,119 120.865 118.216 124,709 282.695 262.703 14,800 225.706 164.001 295.200 684,907 Page 30
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 13. AUDITORS. REMUNERATION 2023 2022 Fees payable to the Charitls auditor for the audit of the Ch8ritys annual accounts 14,850 11,750 Fees payable to the Charitls audltor in respecl of: Taxation compliance services 1,000 700 14. STAFF COSTS Group 2023 Group 2022 Charity 2023 Charity 2022 Wages and salaries Social security costs Contribution to penslon schemes Operating cosls of defined benefit pension schemes 586,458 59,200 96,418 534,453 58.620 17,822 586,458 59,200 96.418 534.453 58.620 17.822 17.000 17.000 742.076 627.895 742,076 627,895 The averag8 number of persons employed by the Charity during the year wa5 as follows: Group 2023 Group 2022 No. Charity 2023 Charity 2022 Full time employees Part time employees 15 15 15 15 20 20 20 20 The number of employees whose employee benefits {excludlng employer pension costs) exceeded £60.000 wa5: Group 2023 Group 2022 No. In the band £60.001- £70.000 In the band £70,001- £80.000 The total amount of employee benefits recetved by key management personn8115 £148,153 (2022-. £146,561). Page 31
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 15. TRUSTEE'S REMUNERATION AND EXPENSES During the year. no Trustee reiVed any remuneratlon or other benefits (2022 - £NIL). During the year ended 31 December 2023, no Trustee expenses have been Incurred (2022 - £NIL). 16. TANGIBLE FIXED ASSETS Group and Charfty Long-temi leasehold Fixtures and property fittings Freehold property Tolal Cost or valuation At 1 January 2023 9,507,122 90.423 1.180.306 10,777.851 At 31 December 2023 9,507,122 90,423 1.180,306 10,777,851 Depreciation At 1 January 2023 Charge for the year 2,099,902 176,232 81,810 4,254 604,346 52,005 2,786,058 232.491 At 31 December 2023 2,276,134 86.064 656.351 3,018,549 Net book value At 31 December 2023 7,230.988 4.359 523,955 7.759.302 At 31 December 2022 7,407.220 8,613 575,960 7,991,793 Freehold propety- the freehold of the Museum buildings and grounds is held by the Trustee, in Trust for the charity- The Museum bullding and grounds were professlonally valued at £550.000 in 1994 and Ihis valuation was used as a deemed cost on transition to SORP (FRS 102). During 2011 the Development project was completed and the total cost of £8.811,623 reanalysed as freehold propety, and a further £145.499 has also subsequently been capitalised. Since the opènlng of the Museum in May 2011, depreciation commenced on the freehold propety on straighl-llne basis over a period of 50 years. In August 2017 the building was valued al £16.6m (£2016 £16m) by the Charitys insurers, this being based on the cost of restoring or repairing the building using modem techniques and materials or replacing the property wlth a modem eouivalent. Leasehold property- The Gardenerfs Lodge. The cost Included In the acwunts represents the cost of the premium paid to Bath and North East Somerset Councll for the grant by them of a 20-y8ar rent-free lease on these premises in Sydney Gardens, together with the cost of small subsequent improvements. The lease commenced on 20 November 2004 and Its costs are belng amortised by equal annual instalments over the Ilfe of the lease. The amount of the depreciation Is charged against the Development Fund. Page 32
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 17. HERITAGE ASSETS Group and Charlty Assets recognlsed at cost Herltage assets 2023 Carrylng value at l January 2023 827,000 Carrying value at 31 December 2023 827,000 Analysls of heritage asset transaGtions Group and Charlty 2023 2022 2021 2020 Pre 2019 Purchases Various etchings Portraits of the Burges Family Donations 8,000 10.000 Pablo Bronstein inks x 2 Walter Sickert painting 40.000 16.000 Tolal additions 10.000 56.000 8.000 The carryrng value Heritage assets reflects the valu8 of assets that have been purchased or donat8s. and capitalised in accordance with the Charity SORP. This value only represents a small proportion of the art ollection and excludes the legacy of the Holbume famlly. This, and some other heritage assets, have not been included in the balance sheet in line with the SORP. Cost infonnation is not available for these assets and conventional valuation approaches lack sufficient reliability to make any figures of use to the reader. The Insurance value for the museum's collection Is £18m and £22m for the loans. Page 33
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 18. FIXED ASSET INVESTMENTS Investments subsldiary Lisled companles Investments Charity Total Cost or valuation At 1 January2023 Additions Disposals Revaluations Management fees 100 4,075,603 4,075,703 200,000 200,000 (450,500) (450.500) 249,744 249.744 (51,84B) (51,648) AT 31 DECEMBER 2023 100 4,022,999 4,023,099 PRINCIPAL SUBSIDIARIES The following was a subsidiary undertaking of the Charity. Name Company number Reglstered office or prln¢lpal Principal actlvity place of bvslness Holbume Trading Company Limited 06954139 Great Pulteney Street, Bath. BA2 Operation of the 4DB commercial activities at The Holbume Museum Class of shares Holding Ordinary 100•/0 The financlal results of the subsidiary for the year w8ra- Name Income Expendlture Profit for the year Net assets Holbume Tradlng Company Llmited 309.352 224,517 84,835 Page 34
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 19. STOCKS Group 2023 Group 2022 Goods for resale 26,721 23.456 20. DEBTORS Group 2023 Group 2022 Charlty 2023 Charity 2022 Due within one year Trade debtors Amounts owed by group undertakings other debtors 39,771 85.813 2.568 166.557 10,733 24,956 129.563 55.890 215,279 99,333 133,849 14,260 25.777 215,306 108.872 164.595 26.730 Prepayments and accrued income Tax recoverable 295,114 386.010 334,377 504.351 21. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2023 Group 2022 Charity 2023 Charity 2022 Trade credttors Other taxation and social security other creditors Accruals and deferred income 184,004 11.282 167,821 71.996 11.170 84.029 176,306 162,080 21.880 11,170 75,759 81,205 73.010 276.491 335,016 249,316 270,889 Page 35
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 22. STATEMENT OF FUNDS STATEMENT OF FUNDS- CURRENT YEAR Balance at 1 January 2023 Balance at 31 December 2023 Galnsl (Losses) Income Expendlture Unrestricted funds General funds- charity General funds - Holburne Trading Company 1,524,413 1.231,474 (1,471,067) 1,284,820 11 387.699 {387.699} 1,524,424 1,619,173 (1,858.766) 1,284,831 Endowment funds Endowment fund 3,290,708 250.000 (51,848) 287.240 3,776,100 Page 36
THE HOL8URNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 22. STATEMENT OF FUNDS (CONTINUED) Balance at 31 Galnsl December (Losses) 2023 Balance at 1 January 2023 Income Expenditure Restricted funds The Holbume Museum development project Heritage assets funds National Lottery Comm Fund: Pathways Pathways 3 Funds for other learning projects Clore Consetvation Alberta Whlttle Impressionist Sculpture Funding for other Exhibttions Lighting project Re-imagine Lucie Rte 7.359,079 827.000 {176,232) 7.182,847 827,000 3,812 40.504 (3,812) (43.180) 80,000 77,324 1,951 78 11.307 31,602 9A97 1A15 20,000 38,497 {1,951) (78) (11,307) (39,015) (9,054) (7,165) (67.328) (11.975} (15,5001 (60.5181 (63,295) (13,500) <1,409) (6,866) (4,217) 10,000 2,587 5.750 60,000 12.672 26,522 15,500 66.617 63,295 13,500 15.000 7,000 35,000 1.350 Unlimited 6,099 P Love G John Lubaina RIRO John Ellerman Print Fund 13,591 134 30,783 1,350 8.344.742 373,012 (536,402) 8.181.352 Total of funds 13.159.874 2,242,185 (2,447,016) 287.240 13,242,283 Page 37
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 22. STATEMENT OF FUNDS (CONTINUED) Restrleted Funds The Development Project fund comprises monies received specifically to finan¢9 the Museum's development project. The annual depreciation charge for assets funded from the Development Projecl is charged againslthe fund. The Heritage Asset Fund represents amounts recelved to purchase capitalised Heritage Assets or the value of Ftems donated to the Collection (Note 17). In prior years. the Speclal Acquisitions Fund held £920.000 received from the sale of an item in the colleclion- the Trustee obtained legal advice that Ihe effect of the 2018 ScheTne from the Charity Commission is that there is no longer a Special Acquisitions Fund and its balance of £920,000 has been added to the capital endowment of the Museum. Following the transfer of the Fund balan to Permanent Endowment. the whole of the Avon Pension Fund is now offset against Unrestricted funds. The special purpose5 funds relate predominantly to exhlbitions for which we have received funding. including David Hockney- Love Life. funded by the Blavatnik Family Foundation. Hamish Parker, Lydia & Manfred GONY. Stuart & Bianca Roden, Clore Wyndham, Thomas Gibson Fine Art and Hazlitt Holland- Hibber.. The TLrdors which was funded by Df Martin and Danl Clarke. Van and Eva DuBose and King Edwards School- Nalini Malini which was funded through the National Gallery Contemporary Fellowship with Art Fund . Impressionist Sculpture. which received support from the Blavatnik Famlly Foundation, Daniel Katz Gallery. Stuart and Bianca Roden and Michael and Yvonne Uva., Alberta Whittle whlch was supported by the Ampersand Foundation, Henry Moore Foundation and Modem Institute. Stuart and Bianca Roden" and Mick Peter, funded by Arts Council England. The 3 year funding for Pathways by National Heritage Communities Fund came to an end in 2022 and we have secured 3 years additional support from the Medlock Charitable Trust and the Roper Family Charitable Trust. The lighting project relates to funding from the Wolfson Foundation towards retrofitting the halogen lights with LED lamps. This project wa5 completed in January 2023. Re-imagine relates to a digital project around our collection. which was funded by Art Fund. Page 38
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 22. STATEMENT OF FUNDS (CONTINUED) STATEMENT OF FUNDS- PRIOR YEAR Balano at 31 Gainsl December (Losses) 2022 Balance at 1 January 2022 Transfers inlout Income Expenditure Unrestrlcted funds General funds- charity General funds- Holburne Trading Company 691,538 396,196 (502,321) (10.000) 949.000 1.524,413 11 753.374 (753,374) 11 691,549 1,149.570 (1,255.695) (10,000) 949,000 1,524,424 Endowment funds Endowment fund 3.309,438 420,000 (68,491 } {370.2391 3,290.708 Restrlcted funds The Holburne Museum development project Heritage assets funds National Lottery Comm Fund.. Pathways Pathways 3 Funds for other learning projects Ellerman Found l Traverse Trust- Curator funding Clore Conservation Stumpwork Alberta Whittle Hockney Ml¢k Peter 7,535,311 {176,232) 7,359.079 817.000 10,000 827,000 76,256 35,000 {72,444) (29,496) 3.812 40,504 35,000 6,500 7,000 {11,549) 1,951 21.333 17,200 14.103 3,500 (21,333) {17,122) (2,7961 (6,500) {3.398) (60,172) (11,463) 78 11,307 3.000 35,000 60,172 11,463 31,602 Page 39
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 22. STATEMENT OF FUNDS (CONTINUED) STATEMENT OF FUNDS - PRIOR YEAR (CONTINUED) Balance at 1 January 2022 Balance al 31 December 2022 Transfers inlout Gainsl (Losses) Income Expenditure Tudors 15,000 42,000 (15.000) (42,000) Nallnl Malani Impressionist Sculpture Funding for other Exhibitions Lighting project Volunteers Re-imagine 33.113 (23.616) 9.497 12.000 20,000 3,000 40.136 (10.585) 1.415 20.000 (3.000} (1.639) 38,497 8.526,203 316,884 (508.345) 10.000 8.344.742 Total of funds 12,527,190 1,886.454 (1,832.531) 578,761 13,159.874 23. SUMMARY OF FUNDS SUMMARY OF FUNDS- CURRENT YEAR Balance at 31 Gainsl December (Losses) 2023 Balance at 1 January 2023 Income Expenditure General funds Endowment funds Restricted funds 1,524,424 3.290.708 .344,742 1.619,173 (1,858,766) 250.000 {51,848) 373,012 (536,402} 1,284,831 3,776,100 8,181,352 287.240 13,159,874 2,242,185 (2.447,016) 287,240 13,242,283 Page 40
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 23. SUMMARY OF FUNDS (CONTINUED) SUMMARY OF FUNDS . PRIOR YEAR Balance at 31 December 2022 Balancé at 1 January 2022 Transfers inlout Gainsl (L05sesl Income Expenditure General funds Endowment funds Restricted funds 691.549 1,149,570 {1.255.695) (10.000) 949,000 1.524.424 3.309.438 8.526,203 420.000 316.884 (68,491) (508,345) (370.239) 3.290,708 8,344,742 10.000 12.527.190 1.886,454 (1,832,531) 578.761 13.159.874 24. ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR Unrestricted Restricted Endowment funds funds funds 2023 2023 2023 Total funds 2023 Tangible fixed assets Fixed asset investments Heritage assets Current assets Creditors due within one year 404.950 246.899 7.354.352 7,759,302 4.022.999 827,000 909,473 (276,491) 3.776.100 827.000 909,473 {276,491) Total 1,284,831 8,181.352 3.776.100 13,242,283 ANALYSIS OF NET ASSEfs BETWEEN FUNDS . PRIOR YEAR Unrestrlcted funds 2022 Restricted Endowment funds funds 2022 2022 Total funds 2022 Tangible fixed assets Flxed asset Investments Herltag8 assets Current assets Credltors due within one year 474,051 784.895 7,517,742 7,991.793 4.075.603 827.000 600.494 (335,016) 3,290.708 827,000 600,494 (335,016) Total 1,524,424 8,344.742 3,290,708 13,159,874 Page 41
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 25. UNAPPLIED TOTAL RETURN 2023 2022 At 1 January Amounts donatedltransferred in Inveslment management costs Gainsl{losses) on inveslmenl 3,290,708 250,000 (51.848) 2B7,240 3,309,438 420.000 {68,491} (370,239) At 31 December 3,776,100 3,290.708 The trustees op8rate a return fund by making use of the ability to draw down unapplied total retum (UTRI monies. In the year ended 31 December 2023. cumulative investment losses exceeded the amount of unapplied total return, therefore there was no draw down of the fund and the Ios5 has been treated as a reduction in the value of the trust for investmenl wmponent of Ihe pemianent endowment. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES 26. Group 2023 Group 2022 Net incomelexpenditure for the year (as per Statement of Flnancial Activities} 82.409 (316,316) Adjustments for: Depreciation charge5 Heritage assets donated Gainsl{losses) on investments Investment management Costs Dividends and income from investments Decreasel{increase) In stocks Decreasel(increase) in debtors Increasel(decrease) in Creditors Defined benefit penslon scheme cost le55 ¢ontributions payable Defined benefit penslon scheme finance cost 232,491 235.056 (10.000) 370,239 68,491 (1.394) 13.550 (267,725) 76.121 (43,000} 19,000 (249,744) 51,848 (6,043) (3.265) 90,896 (58,525) Net cash provlded by operatlng actlvitles 140,067 144.022 Page 42
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 27. ANALYSIS OF CASH AND CASH EQUIVALENTS Group 2023 Group 2022 Cash in hand 587,638 191.028 Total cash and cash equlvalents 587,638 191,028 28. ANALYSIS OF CHANGES IN NET DEBT At1 January 2023 Cash flows At31 December 2023 Cash at bank and In hand 191,Q28 396,610 587.638 191,028 396,610 587,638 29. PENSION COMMITMENTS The Group operated a defined benefit pension scheme. At 18 OGtober 2022 when the Lower R15k Funding Valuation was calculated by the Actuary the deficit was £150.000. A deficit Prepanent of £115,000 was made in April 2023. In March 2023, the last employee in the scheme left the museum and the final termination valuation was calculated at £51.600. which was pald In June 2023. A termination certificate ha5 been issued and there are no further liabilities connected with this pension fund. The Museum participated in the Avon Pension Fund, whlch provides benefits in accordance with the LGPS Regulations. The LGPS is a defined benefit penslon scheme which provides benefits to participants on retirement and benefits lo their dependants on death. Pre April 2014 benefits are linked to final penslonable salary and service at date of retirement (or date of leaving the scheme if earlier). post March 2014 benefits accrue on a Career Average Revalued Earning (CARE) basis. The most recent comprehensive valuation of the Fund took pla as at 31 March 2019. This valuatton is used for the purpose of setting contribution rates. Where a deficit is identified for a particular employer then ¢ontrlbutions are set with the alm of restorlng thè funding level to 1000/0 over a specific recovery period. Contributions are typically expressed as a percentage of pensionable pay for accruing benefits and as fixed cash amounts in respect of any deficit payments. Principal actuarial assumpllons at the Balan¢e Sheet date (expressed as weighted average5): At31 December 2023 At31 December 2022 Discount rate Future salary increases Future penslon Increases Inflation assumption 4.80 2.65 2.65 2.65 Page 43
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 29. PENSION COMMITMENTS (contlnued) At31 December 2023 Years At31 December 2022 Years MORTALITY RATES (IN YEARS) - for a male aged 65 now - at 65 for a male aged 45 now - for a female aged 65 now - at 65 for a female aged 45 now 23.4 24.9 25.5 27.5 The Group's share ofthe assets In the scheme was: At31 December 2023 At31 December 2022 other 1.414,000 The actual return on scheme assets was £Nil (2022 - £44,000). The amounts recognised in the Consolidated Statement of Financial Aclivities are a5 follows= 2023 2022 Current service cost Net interest on defined benefit liability Interest C05t Total amount recognised In the Consolidated Statement of Flnancial Activities 17,000 (26,000) 45.000 36,000 Movements in the present value of the defined benefit ob5igation were as follows: 2023 Openlng defined benefit obligation Current service cost Inte5t cost Acluarfal gains Beneflts paid Contributlons by scheme parti¢lpants (931,000) Closlng defined beneftt obllgation (931,000} Page 44
THE HOLBURNE MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 29. PENSION COMMITMENTS (contlnued) Movements In the fair value of the Group's share of scheme assets were as follows: 2023 Opening fair value of scheme assets Expected return on assets Actuarial gains Contributions by employer Contiibutions by employer Benefits paid 262,000 Closlng fair value of scheme assets 262,000 The Group has an unrecognised surplus of £Nil in respect of its defined benefit pension scheme as it does not expect to recover the plan surplus either through redUd contributions in the future or Ihrough refunds from the plan. After the year end, the Direciors have opted to prepay the next three years of pension scheme deficit contributlons. This has not been reflectèd in the financlal statements for the year ended 31 December 2022 as no amounts had been prepaid in respect of the scheme at this date. 30. RELATED PARTY TRANSACTIONS The nominee of the University of Bath, Rohan Surana, sits on the Board of Directors of the Museum. During the year the Unlversity made grants totalling £37,617 (2022: £80.000) to the Museum. and provided 'in kind, support {payroll, IT, security services) with an estimated value of £30,000 (2022: £30,000). The nominee of Bath Spa University, Dr Andrew Salmon, also sits on the Board of Tnjslees of the Museum. During the year the University made grants totalling £Nil (2022: £20.000) to the Museum. Page 45