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2021-03-31-accounts

Company No. 252131 Charity No. 313024 OSCR No. SC041846

MUSEUMS ASSOCIATION

REPORT AND FINANCIAL STATEMENTS

31 MARCH 2021

REFERENCE AND

ADMINISTRATIVE DETAILS

For the year ended 31 March 2021

Status

The organisation is a charitable company limited by guarantee, incorporated on 20 November 1930 and registered as a charity on 7 November 1962.

Governing document

The company was established under a memorandum of association, which established the objects and powers of the charitable company and is governed under its articles of association.

Company number

252131

Charity number

313024

OSCR number

SC041856

Registered office and operational address

42 Clerkenwell Close London, EC1R 0AZ

Bankers

National Westminster

Bloomsbury, Parr’s Branch

126 High Holborn, London, WC1V 6QB

Solicitors

Russell-Cooke, Solicitors Stone King, Solicitors 2 Putney Hill 16 St John’s Lane London, SW15 6AB London, EC1M 4BS

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Auditors

Moore Kingston Smith LLP Chartered Accountants and Statutory Auditors Devonshire House

60 Goswell Road, London, EC1M 7AD

Investment managers

Rathbones 8 Finsbury Circus Finsbury, London, EC2M 7AZ

Board 2020/21

President

Maggie Appleton, retired 31/03/2021 Gillian Findlay, appointed 01/04/2021

Vice President

Gillian Findlay, retired 31/03/2021 Simon Brown, appointed 01/04/2021

Nivek Amichund, appointed 01/04/2021

Alex Bird

Simon Brown

Stella Byrne, appointed 23/07/2020 Dianna Djokey Heledd Fychan, retired 12/05/2021 Paddy Gilmore, retired 23/07/2020

Heather Lees

Michelle McGrath, appointed 01/04/2021

Steve Miller Rachael Minott, retired 31/03/2021 Dhikshana Pering Kim Streets

Michael Terwey, appointed 01/04/2020

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Staff

Director

Sharon Heal

Membership, Marketing and Website

Deputy Director

William Adams

Marketing & Membership Manager

Zoe Spencer

Membership Officer

Sophie Lawson

Membership and Events Administrator

Daniel Laverick

Marketing & Sales Officer

Emma Randall

Account Manager

Abigail Lasisi

Website and Digital Officer

Francesca Collins Yosola Olorunshola*

Projects and Programmes

Programmes Manager

Sally Colvin

Policy Manager

Alistair Brown

Campaigns Officer

Antonia Canal*

Collections Development Officer

Sarah Briggs

Projects Assistant

Jacqui Buscher

Workforce Development Officer

Tamsin Russell

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Publications and Events

Head of Publications & Events

Simon Stephens

Deputy Editor

Eleanor Mills

News Editor and Staff Writer

Geraldine Kendall Adams

Events Programmer and Content Editor

Rebecca Atkinson

Conference & Events Manager

Lorraine O’Leary

Finance and Resources

Head of Finance & Resources

Neil Mackay

Finance Administrator

Jolanta Stevens

Executive Assistant

Charlie Lindus

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REPORT OF THE BOARD

The trustees, who are also directors of the company for the purposes of the Companies Act, submit their annual report and the audited financial statements for the year ended 31 March 2021.

Reference and administrative information set out on page 4 forms part of this report. The financial statements comply with current statutory requirements, the articles of association and the Statement of Recommended Practice (SORP), Accounting and reporting by charities issued in March 2015.

Objectives and activities for the public benefit

The charitable objectives of the MA are: to advance education in, and to foster and encourage the preservation and better understanding of, the material heritage of mankind and the environment for the public benefit by the promotion and development of museums and galleries and by encouraging the involvement of members of the public in their work, and to establish, uphold and advance the standards of professional education, qualification, training and competence of those employed in museums and galleries.

The board members have referred to the Charity Commission’s general guidance on public benefit in reviewing the aims and objectives of the charity, in planning future activities and how planned activities will contribute to those aims and objectives. The review of activities later in the report demonstrates what the MA has done during the year to achieve its aims and what its plans are for 2021/22.

Organisation and governance

The MA is governed by a board of up to 14 people. Eight members of the board are elected by the members of the MA (one vote per member) and six are appointed by the board. For induction new trustees meet individually with the director and are given the most recent set of accounts, the constitution documents and a copy of the rules. The MA is run by the board, which agrees strategy and is accountable to members. Operational matters are delegated to the director who reports to the board.

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Staffing

The MA’s salary policy is designed to provide a clear and flexible framework to reward employees with a view to attract and retain a competent workforce, which is essential to the ongoing success of the organisation. Pay grades within the policy are set by comparing appropriate market rates. The board carries out a cost of living review annually. The director’s salary is set separately by the board.

Investment policy

By the terms of the articles of association of the MA, the board has the power to make any investment it sees fit. An investment strategy was implemented in 2018-19. Surplus cash is held in interest-earning bank accounts with funds of the grant-making trusts being invested with Rathbones investment managers.

Risk management

The MA commenced its new five-year strategic framework in April 2020 and continues to have careful financial planning at its core to ensure continued financial stability. The objectives of the plan will continue to be monitored by the board, with a report being presented at each of its meetings.

Reserves policy

The reserves policy aims to maintain a sufficient level of reserves to enable normal operating activities to continue should a shortfall in income occur and to take account of potential risks and contingencies that may arise from time to time. In determining the level of reserves required by the MA, the trustees have considered the risks to the Association in respect of unrestricted income and expenditure and, where appropriate, restricted income. They have also considered any identified potential external major risks to income and expenditure.

The board has agreed that, in line with Charity Commission guidelines, the MA will at least hold free reserves equivalent to three months turnover. In 2020/21 this equated to ca £600,000.

Unrestricted reserves at the year-end were ca £1.64m including designated funds of £600,000 for pension, £116,000 for planned investment in web redesign, including depreciation costs.

Restricted funds increased by £723,000 in the year mainly due to the receipt of UKRI grant funding of £633,000 to be spent in the 2021-22 financial year.

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The unrestricted investment fund of the charity saw a significant recovery with an unrealised gain of £308,000 in the year.

This led to a free reserves figure of £922,000 at the year end.

Impact of Covid

A reduction in unrestricted income remains a high risk to the MA over the next financial year and beyond due to the impacts of the pandemic. To mitigate this the budget for 2021-22 has been set to anticipate the potential for further drops in income, with measures to refocus services and retain membership implemented, and decisions taken around events and publications to reduce uncertainty.

The overall reserves policy of the Association includes all reserves and therefore covers the Trust and Endowment funds managed by the MA but the focus of the policy is on the free reserves of the organisation.

MEMBERSHIP

----- Start of picture text -----
Total end of year membership
14,691
10,651
10,138
8,979
8,354 8,356
7,740
7,185
6,833
6,218 6,304
Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
----- End of picture text -----

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In 2020/21

End of year membership saw a significant fall due to the impact of the global pandemic. Overall membership fell by 31 per cent – with this fall particularly hitting individual membership. Commercial membership also fell. Institutional membership grew, due to our offer to the sector in response to the pandemic.

Individual membership

Year on year individual membership fell by 33 per cent (2020/21: 9,192; 2019/20: 13,802). This was particularly in the student, retired and essential member categories. Membership in devolved nations and regions did not fall as much compared to the falls in London and the South East of England where these categories are most prominent.

Institutional membership

Year on year institutional membership increased by 16 per cent (2020/21: 682; 2019/20: 592). This was due increased engagement, the offer of free events to institutional membership and an increase in our funding support to the sector. We now represent over 1,800 museums through our institutional members.

Commercial membership

Following the merging corporate and sole trader memberships, a new simpler commercial membership category was introduced. Year on year commercial membership fell by 13 per cent (2020/21: 257; 2019/20: 297).

In 2021/22

As we enter 2021/22 we are beginning to see a turnaround in individual and commercial membership as museums begin to reopen and workers come off furlough. Institutional membership remains high, and the numbers reflect the support and advocacy we are undertaking for the sector.

WEBSITE AND DIGITAL

With the move to all our delivery being online and a new website launched, 2020/21 was a year of huge digital engagement. We grew our audience significantly across all our digital channels. There were 1.2 million website sessions in total – an increase of 36% - which was reflected equally across all four nations of the UK.

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In 2020/21

In 2021/22

PUBLICATIONS

Publications will continue to offer comprehensive news, comment, best practice and information to the sector online and in print.

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In 2020/21

In 2021/22

CONFERENCE AND EVENTS

The annual conference evolved in response to the Covid-19 pandemic and was held as an onlineonly event in November 2020. This proved to be extremely popular, with high levels of engagement from museum people across the four nations of the UK and overseas. We will build on this success going forward as we look to the future of conferences and events in a post-Covid world. Our one-day conferences also evolved during the period and were all online. After initially running a series of free virtual conferences we have successfully moved to a paying model, while still offering our programme of free online meetings for MA members across the UK.

In 2020/21

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In 2021/22

POLICY AND ADVOCACY

The MA’s vision for the sector across the UK is for inclusive and socially engaged museums at the heart of their communities and our mission is to inspire museums to change lives. Over the past year we have worked with our members and stakeholders to deliver this vision and mission. Coronavirus has had huge impact on society and our museums and we have successfully advocated for emergency funding and for the continuation and strengthening of the connection between museums and their communities during this crisis. The Black Lives Matter movement has resonated throughout society and we have pledged to campaign against racism and to support our members to be anti-racist organisations.

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In 2020/21

In 2021/22

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ETHICS

The MA’s Ethics Committee leads sector thinking on a range of ethical issues from sponsorship to decolonisation and gives advice to institutions and individuals on specific cases.

In 2020/21

In 2021/22

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TRUSTS AND FUNDS

The MA administers two trusts established to assist museums and their staff in specific areas of collections development and care.

Beecroft Bequest

The Beecroft Bequest awards grants of up to £10,000 for the purchase of pictures and works of art (furniture or textiles can be considered) not later than the 18th century in date.

Grants awarded 2020/21

£5,000 Saffron Walden Museum Society Ltd

The Museums Association Benevolent Fund

The Museums Association Benevolent Fund was established to alleviate financial distress suffered by members of the Museums Association and to support the education and training of museums and galleries personnel.

Grants awarded 2020/21

£4,226 CPD awards £2,000 Covid Hardship awards £6,750 Inclusive memberships

In 2021/22 the fund will continue to allocate funds towards members suffering financial distress during the pandemic, provide inclusive events places and support CPD fees and activity.

PROGRAMMES

The MA’s programmes deliver our campaigning priorities to support the development of the UK museum sector.

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Collections and engagement

Our work his year has been led by two issues: responding to need in the sector arising from the pandemic and museum closures; and the increased emphasis on decolonising collections. While the needs and interests of our members have changed more than we could have imagined, we have also seen huge advances in line with the recommendations in Empowering Collections – notably on digital collections.

In 2020/21

In 2021/22

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Participation and inclusion

We ensure that equity, diversity and inclusion is woven through our programmes. This includes using the Power to the People framework to assess a grant applicant’s participatory practice and funding museum projects that improve inclusive practice with underrepresented audiences.

In 2020/21

In 2021/22

WORKFORCE DEVELOPMENT

Our support for the museum workforce has been more important than ever over the last year of the Covid-19 pandemic. We have continued our core programmes, the Associateship of the Museums Association (AMA), a self-led CPD programme with mentoring and support groups; the Fellowship of the Museums Association (FMA), developing and recognising significant commitment to and impact on the sector; and Museum Essentials, an online learning programme introducing key elements of working in the museum sector. We have also introduced responsive programmes and offers to meet the needs of MA members and the wider museum sector.

In 2020/21

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In 2021/22

REVIEW OF FINANCIAL ACTIVITIES

The results for the year 2020/21 show a positive movement in funds of £1,115k before actuarial gains/losses on pension scheme assets.

Overall, unrestricted income of £1,559k was 22% lower than last year (£2,011k). Our key areas of unrestricted income are: membership £1,119k (2020: £1,145k), publications £118k (2020: £263k) and events £29k (2020: £455k).

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Unrestricted (including designated) expenditure was 26% lower at £1,553k (2020: £2,101k). With recovery in the financial markets MA investments showed an unrealised gain of £438k.

The balance of restricted funds increased by £723k largely due to the receipt of grant funds for the UKRI Digital Innovation and Engagement project and the gain in investment value. The balance of endowment funds increased by £78k, mainly in relation to the gain in investment value.

The Museums Association has a lease on a property in Clerkenwell Close, London that runs to September 2031.

Statement of the Board's responsibilities

The board members (who are also directors of the MA for the purposes of company law) are responsible for preparing the Report of the Board and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the board members to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the board members are required to:

The board members are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the charitable company and

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hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the board members are aware:

The board members are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

Members of the Board

Members of the board, who are also trustees under charity law, who served during the year and up to the date of this report are as detailed on page four.

Members of the charitable company guarantee to contribute an amount not exceeding £1 to the assets of the charitable company in the event of winding up. The total number of such guarantees at 31 March 2021 was 10,138 (31 March 2019: 14,691). Members of the board have no beneficial interest in the charitable company.

Auditors

Moore Kingston Smith were re-appointed as the charitable company's auditors during the year and have expressed their willingness to continue in that capacity.

Approved by the Board on 15 July 2021 and signed on its behalf by,

Gillian Findlay, President

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INDEPENDENT AUDITORS’ REPORT

Opinion

We have audited the financial statements of Museums Association for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company 's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where Companies Act 2006, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011 require us to report to you if, in our opinion:

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Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 18, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, the Companies Act 2006 and Section 151 of the Charities Act 2011 and report to you in accordance with regulations made under those Acts.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material

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misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

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

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Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006; and to the charity's trustees, as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, and Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company's members and trustees as a body, for our audit work, for this report, or for the opinion we have formed.

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Date 14 October 2021

Neil Finlayson, Senior Statutory Auditor For and on behalf of Moore Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

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Museums Association

Statement of Financial Activities (incorporating an Income and Expenditure Account)

For the year ended 31 March 2021

----- Start of picture text -----
2021 2020
Endowment Restricted Unrestricted Total Total
Note £ £ £ £ £
Income and endowments from:
Donations and legacies 3 - 825,177 40,550 865,727 140,066
Investment income 9,551 7,303 110,144 126,998 141,484
Charitable activities 4 - 0 1,296,191 1,296,191 1,889,895
Other incoming resources - 0 112,557 112,557 -
Total incoming resources 9,551 832,480 1,559,442 2,401,473 2,171,445
Resources expended
Charitable activities 5 5,000 165,303 1,553,544 1,723,847 2,341,457
Total resources expended 5 5,000 165,303 1,553,544 1,723,847 2,341,457
Net gain/(loss) on investment assets 11a 73,920 56,055 307,714 437,689 (207,437)
Net incoming/(outgoing) resources
before transfers and other recognised
gains and losses 6 78,471 723,232 313,612 1,115,315 (377,449)
Gross transfers between funds - - - - -
Transfer of funds out of the charity - - - - -
Actuarial gain/(loss) on defined benefit
pension scheme - - (136,000) (136,000) (41,000)
Net movement in funds for the year 78,471 723,232 177,612 979,315 (418,449)
Reconciliation of funds
Funds brought forward at 1 April 2020 396,767 383,547 1,648,139 2,428,453 2,846,902
Funds carried forward 14/15 475,238 1,106,779 1,825,751 3,407,768 2,428,453
----- End of picture text -----

All of the above results are derived from continuing activities. All gains and losses recognised in the year are included above. Movements in funds are disclosed in Note 14 to the financial statements.

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Museums Association (Limited by Guarantee)

Balance Sheet

As at 31 March 2021

----- Start of picture text -----
2021 2020
Note £ £
Fixed assets
Tangible Fixed Assets 9 35,806 36,377
Intangible Fixed Assets 10 72,398 92,658
Investments 11 2,777,141 2,339,452
2,885,345 2,468,487
Current assets
Debtors 12 727,842 382,987
Cash at bank and in hand 124,340 154,350
852,182 537,337
Creditors: amounts falling due within one year 13 517,758 832,371
Net current assets/(liabilities) 334,423 (295,033)
Net assets excluding pension asset 3,219,768 2,173,453
Defined benefit scheme asset 18 188,000 255,000
Net assets including pension asset 14/15 3,407,768 2,428,453
Funds
Endowment funds 475,238 396,767
Restricted funds 1,106,779 383,547
Unrestricted funds
Designated funds 716,165 788,402
General funds 921,586 604,737
Unrestricted income funds excluding pensions asset 1,637,751 1,393,139
Pension reserve 18 188,000 255,000
Total unrestricted funds 1,825,751 1,648,139
Total funds 14/15 3,407,768 2,428,453
----- End of picture text -----

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime with Part 15 of the Companies Act 2006.

Approved by the Board on 15 July 2021 and signed on its behalf by:

Gillian Findlay President

Simon Brown Vice President

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Museums Association

Statement of Cash Flows

For the year ended 31 March 2021

----- Start of picture text -----
2021 2020
£ £
Cash flow/(outflow) from operating activities
Cash generated from operations 42,447 183,121
Interest paid - -
Net cash provided by/(used in) operating activities 42,447 183,121
Cash flow from investing activities
Bank interest received 1,446 600
Acquisition of fixed asset investments (73,903) (130,493)
Disposal of financial instruments - -
Net cash used in investing activities (72,457) (129,893)
Net increase in cash and cash equivalents (30,010) 53,227
Cash and cash equivalents at beginning of year 154,350 101,123
Cash and cash equivalents at end of year 124,340 154,350
Reconciliation of net income/(expenditure) to net cash flow from operating activities
2021 2020
£ £
Net income including endowments 979,315 (418,449)
Adjustments for:
Depreciation charges 19,523 13,358
Amortisation 75,211 100,027
Bank interest received (1,446) (600)
Net (gains)/ losses on investments (437,689) 357,436
Decrease (increase) in pension asset 67,000 (38,000)
Decrease / (increase) in stock - -
Decrease/ (increase) in debtors (344,855) 91,374
Increase/ (decrease) in creditors (314,612) 77,974
Net cash provided by/(used in) operating activities 42,447 183,121
----- End of picture text -----

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Museums Association

Notes to the Financial Statements

For the Year Ended 31 March 2021

1. Accounting Policies

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Museums Association

Notes to the Financial Statements

For the Year Ended 31 March 2021

Accounting Policies (Continued)

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Basic Financial Liabilities

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price, and subsequently measured at amortised cost using the effective interest method.

With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS102. See notes 12 and 13 for the debtor and creditor notes.

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Museums Association

Notes to the Financial Statements

For the Year Ended 31 March 2021

Accounting Policies (Continued)

Furniture & Equipment 10.00% per annum, straight line method IT & Computers 33.33% per annum, straight line method

Depreciation costs are allocated to Support Costs.

Website & Database 33.33% per annum, straight line method

Amortisation costs are allocated to Support Costs.

Current or past service costs and gains, as determined by the scheme’s actuary, are charged to the statement of financial activities each year. Pension finance costs or income are included within total resources expended or incoming resources as applicable. Actuarial gains and losses arising are recognised within ‘gains and losses’ on the statement of financial activities.

In addition, any deficit on the scheme, representing the shortfall of the value of the scheme assets below the present value of the scheme liabilities is recognised as a liability on the balance sheet to the extent that the employer charity is able to recover a surplus or has a legal or constructive obligation for the liability. A corresponding pension reserve is included within total unrestricted funds.

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Museums Association

Notes to the Financial Statements

For the Year Ended 31 March 2021

Accounting Policies (Continued)

The MA also hold funds as an intemediary, awaiting instructions from an approval panel (where control is retained by the Principal: Esmee Fairbairn), to distribute the funds. Although the MA monitor and report against the use of the funds in their administrative capacity, the ultimate control over the distribution of the funding and legal responsibility for ensuring the charitable application of the funds is retained by Esmee Fairbairn.

Funds received and expended in this manner are excluded from the accounts as income and expenditure. Further details can be found in note 19.

2. Judgements and key sources of estimation uncertainty

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements.

In the view of the trustees in applying the accounting policies adopted, they are required to make judgements, estimates and assumptions that have a significant effect on the amounts recognised in the financial statements and carry a significant risk of material adjustment in the next financial year. No judgements or key sources of uncertainty have been identified by the trustees.

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Museums Association

Notes to the Financial Statements

For the Year Ended 31 March 2021

----- Start of picture text -----
3. Donations and Legacies
Restricted Unrestricted 2021
£ £ £
Trusts and funded projects
UKRI 633,125 - 633,125
Other 49,641 153,107 202,748
682,766 153,107 835,873
Esmee Fairbairn Collections Fund 142,411 - 142,411
825,177 153,107 978,284
Restricted Unrestricted 2020
£ £ £
Trusts and funded projects
Arts Council of England - 486 486
Other 117 - 117
117 486 603
Esmee Fairbairn Collections Fund 139,463 - 139,463
139,580 486 140,066
4 Charitable activities
Restricted Unrestricted 2021
£ £ £
-
Membership 1,118,961 1,118,961
Publications - 118,386 118,386
Events - 29,273 29,273
-
Professional development 29,571 29,571
-
1,296,191 1,296,191
Restricted Unrestricted 2020
£ £ £
-
Membership 1,145,201 1,145,201
Publications - 263,215 263,215
Events - 455,457 455,457
Professional development 26,022 26,022
-
1,889,895 1,889,895
----- End of picture text -----

33

Museums Association

Notes to the Financial Statements

For the Year Ended 31 March 2021

5. Total Resources Expended

Staff costs - direct (Note 7)
Direct costs
Grants and Bursaries
Depreciation
Trustees' expenses
sub total		 Events
Membership
Professional
Development
Policy & Public
Affairs
Governance
Support
Trusts/ Projects
Total
£
£
£
£
£
£
£
£
£
169,257
166,261
222,153
92,054
180,008
-
243,594
81,539
1,154,866
103,623
40,236
40,379
2,973
2,354
6,084
214,651
25,953
436,253
-
-
(7,500)
(8,130)
-
-
-
52,811
37,181
-
-
-
-
-
-
13,310
82,237
95,547
-
-
-
-
-
-
-
-
-
272,880
206,497
255,032
86,897
182,362
6,084
471,555
242,540
1,723,847
Publications
Allocated support costs 104,484
89,557
149,262
44,779
89,557
(6,084)
(471,555)
-
-
Total resources expended 377,364
296,054
404,294
131,676
271,919
-
-
242,540
1,723,847

For the Year Ended 31 March 2020

Staff costs - direct (Note 7)
Direct costs
Grants and Bursaries
Depreciation
Trustees' expenses
sub total
Allocated support costs
Total resources expended		 Events
Membership
Professional
Development
Policy & Public
Affairs
Governance
Support
Trusts/ Projects
Total
£
£
£
£
£
£
£
£
£
220,829
180,799
205,267
111,115
150,667
-
241,915
111,026
1,221,618
284,339
239,263
34,213
6,665
12,604
2,425
280,550
76,062
936,121
-
-
-
-
-
-
5,000
53,016
58,016
-
-
-
-
-
-
114,174
-
114,174
-
-
-
-
-
11,528
-
-
11,528
505,168
420,062
239,480
117,780
163,271
13,953
641,639
240,104
2,341,457
187,312
117,070
140,484
70,242
140,484
(13,953)
(641,639)
-
-
692,480
537,132
379,964
188,022
303,755
-
-
240,104
2,341,457
Publications

34

Museums Association

Notes to the financial statements

For the year ended 31 March 2021

6.
Net incoming/(outgoing) resources for the year
This is stated after charging/crediting:
Interest payable
Bank charges
Depreciation
Operating lease rentals
property
Board's remuneration
Board's reimbursed expenses (travel and subsistence)
Auditors' remuneration:
Audit
Other services		 2021
£
18,378
94,734
93,855
-
-
11,300
-		 2020
£
28,137
113,385
94,763
-
9,809
13,585
-
Income from quoted investments
Bank interest receivable		 56,553
1,446		 61,884
600

No reimbursed travel and subsistence costs relating to attendance at Board meetings were paid to board members (2020:8) during the year. Trustee indemnity is covered by the organisation's Charity Care insurance.

35

Museums Association

Notes to the financial statements

For the year ended 31 March 2021

7.
Staff costs and numbers
Staff costs were as follows:
Salaries and wages
Settlement payments
Social security costs
Temps/Consultants
Costs of pension scheme - defined contribution
Costs of pension scheme - defined benefit
Other staff costs
Total emoluments paid to staff were:		 2021
£
908,081
-
94,736
12,114
75,936
48,041
1,138,908
15,958
1,154,866
908,081		 2020
£
898,992
-
97,572
20,996
79,834
37,281
1,134,675
86,942
1,221,617
898,992

The Charity considers its key management personnel comprise the trustees, the Chief Executive Officer and 3 heads of departments. The total employment benefits (not including employer pension contributions) of the key management personnel were £ 363,633 (2020: £ 352,299). Trustees receive no remuneration.

Earnings over £60,000 (including pension)

Number of employees receiving £80,001 - £90,000 2021
2020
No.
No.
1
1
Number of employees receiving £70,001 - £80,000 3
1
Number of employees receiving £60,001 - £70,000 -
2

The employees above participated in the pension scheme. Contributions paid on behalf of the employees totalled £ 25,570 (2020: £ 26,632).

The average weekly number of employees (full-time equivalent) during the year was as follows:

Publications
Restricted projects
Events
Membership
Professional development
Policy and public affairs
Support		 2021
No.
3.5
1.5
3.0
5.0
1.5
2.5
3.0
20.0		 2020
No.
4.0
3.5
3.0
4.0
1.5
2.0
3.5
21.5

36

Museums Association

Notes to the financial statements

For the year ended 31 March 2021

8. Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

9. Tangible fixed assets

----- Start of picture text -----
Furniture and IT &
Equipment Computers Total
£ £ £
COST
At 1st Apr 2020 54,730 154,031 208,761
Additions in year 18,952 18,952
At 31 March 2021 54,730 172,983 227,713
DEPRECIATION
At 1st Apr 2020 34,816 137,568 172,384
- - -
Disposals in year
Charge for the Year 3,000 16,523 19,523
At 31 March 2021 37,816 154,091 191,907
NET BOOK VALUE
At 31 March 2021 16,914 18,892 35,806
At 1st Apr 2020 19,914 16,463 36,377
10. Intangible fixed assets
Website &
Database Total
£ £
COST
At 1st Apr 2020 378,124 378,124
Additions in year 54,951 54,951
- -
Disposals in year
At 31 March 2021 433,075 433,075
AMORTISATION
At 31 March 2020 285,466 285,466
- -
Disposals in year
Charge for the Year 75,211 75,211
At 31 March 2021 360,677 360,677
NET BOOK VALUE
At 31 March 2021 72,398 72,398
At 31 March 2020 92,658 92,658
----- End of picture text -----

37

Museums Association

Notes to the financial statements

For the year ended 31 March 2021

11a. Investments

Rathbones
At 01 April 2020
Disposal proceeds
Additions during the year, at cost
Disposals during the year, at brought forward value
Realised (losses) gains
Unrealised (losses) / gains
At 31 March 2021
At the balance sheet date, the market value of the portfolio comprised:
Fixed interest
UK equities
Global equities
Property
Other assets
At 31 March 2021
Individual holdings representing more than 5% of the market value of the portfolio at the
balance sheet date are as follows:		 2021
£
2,339,452
-
-
-
-
437,689
2,777,141
254,057
1,257,647
1,125,182
-
140,255
2,777,141
2021
£		 2020
£
2,696,888
-
781,856
(931,855)
(207,437)
2,339,452
BROWN ADVISORY FUNDS US Sustainable Growth C Inc 162,963
Analysis of investment portfolio
Schroder Charity Fixed Interest Fund
Schroder Charity Equity Funds
Rathbones
At 31 March 2021		 2021
£
-
-
2,777,141
2,777,141		 2020
£
-
-
2,339,452
2,339,452

38

Museums Association

Notes to the financial statements

For the year ended 31 March 2021
11b.
12.
Debtors
Trade debtors
Grant Debtors
Other debtors
Investment in subsidiary
Shares in subsidiary at cost		 2021
£
2
2021
£
71,247
565,911
5,924		 2020
£
2
2020
£
76,944
139,463
16,414
VAT recoverable - 21,874
Prepayments and accrued income
13.
Creditors : amounts falling due within one year
Trade creditors
Accruals
PAYE, social security and other taxes
VAT payable
Other creditors
Subscriptions in advance		 84,760
727,842
2021
£
32,631
57,705
35,505
5,999
1,843
384,075
517,758		 128,292
382,987
2020
£
112,030
38,305
45,672
-
7,146
629,218
832,371
Some deferred income recognised in 2019 was not released in 2020 as fees for cancelled events were
customer agreement.		 held over with

Some deferred income recognised in 2019 was not released in 2020 as fees for cancelled events were held over with customer agreement.

39

Museums Association

Notes to the financial statements

For the year ended 31 March 2021
14.
Movements in funds
Total endowment funds
Restricted funds:
Endowment funds
Beecroft Bequest		 At
31 March
2020
£
396,767
396,767		 Incoming
Resources
*
£
83,471
83,471		 Outgoing
Resources
£
(5,000)
(5,000)
Transfers
£
-
-		 At
31 March
2021
£
475,238
475,238
Benevolent Fund 277,216 88,938 (12,975) 353,179
Esmee Fairbairn
UKRI ***		 106,392
-		 142,411
633,125		 (130,073)
-		 118,730
633,125
Art Fund L & E
Museum Freelance		 -
-		 9,000
15,000		 (7,255)
(15,000)		 1,745
-
Unrestricted funds:
Designated funds:
Total designated funds
Fixed Asset reserve
Pension Company
Total restricted funds**
Partnerships with Purpose		 (61)
383,547
600,000
188,402
788,402		 61
888,535
-
-
-		 (165,303)
-
(72,237)
(72,237)		 -
-
-
-
-		 -
1,106,779
600,000
116,165
716,165
General funds 604,737 1,798,156 (1,481,307) 921,586
Total unrestricted funds
Total funds
Pension reserve fund		 1,393,139
255,000
2,428,453		 1,798,156
-
2,770,162		 (1,553,544)
(67,000)
(1,790,847)		 -
-
-		 1,637,751
188,000
3,407,768

** Fund established for investment in database, Web redesign, premises improvements and IT upgrade.

*** Funds received for UKRI Digital Innovation and Engagement project to be expended in 2021-22

40

Museums Association

Notes to the financial statements

For the year ended 31 March 2021

14) Movements in funds (continued)

Purposes of Endowment Funds

The Beecroft Bequest originates from a legacy made in 1961 which is used to make grants to museums to help fund purchases of pictures and works of art produced no later than the 18th century.

Purposes of restricted funds

The Benevolent Fund assists financially distressed members of the MA and their families and merged with the Trevor Walden Trust during the year and now includes within its purpose the promotion of education and professional development of members of the MA.

The MA runs the Esmée Fairbairn Collections Fund (EFCF), offering grants of £20,000 to £100,000 to museums for time-limited work with collections. Through this fund the MA and the Esmée Fairbairn Foundation seek to develop a series of projects that demonstrate the inspiring and engaging potential of collections to deliver social impact for people and communities.

Purposes of designated funds

A fund of £600,000 was set up in 2012 in place of the charge on the property sold that year held by the Museums Association Pension Plan.

The fixed asset reserve designated fund has funds set aside for future capital expenditure.

15. Analysis of Net Assets Between Funds

15.
Analysis of Net Assets Between Funds
Intangible Fixed Assets
Tangible Fixed Assets
Investments		 £
-
-
469,023
Endowment
Funds		 Restricted
Funds
£
-
-
355,668		 2021

Total Funds
£
£
72,398
72,398
35,806
35,806
1,952,450
2,777,141
Unrestricted
Funds
Net Current Assets 6,215 751,111 (422,903) 334,423
Pension scheme asset - - 188,000 188,000
Net Assets at 31 March 2021 475,238 1,106,779 1,825,751 3,407,768
Intangible Fixed Assets
Tangible Fixed Assets
Investments
Net Current Assets
Pension scheme asset
Net Assets at 31 March 2020		 £
-
-
395,103
1,664
-
396,767
Endowment
Funds		 Restricted
Funds
£
-
-
299,614
83,933
-
383,547		 2020

Total Funds
£
£
92,658
92,658
36,377
36,377
1,644,736
2,339,453
(380,632)
(295,035)
255,000
255,000
2,046,397
2,428,453
Unrestricted
Funds

41

Museums Association

Notes to the financial statements

For the year ended 31 March 2021

16. Related parties

The MA appoints the trustees of the Benevolent Fund and the Beecroft Bequest and thus has a significant influence over the affairs of these trusts.

5 Trustees held a position with entities which at the year end had debtor balances with the Museums Association:

Culture Perth and Kinross
Gillian Findlay
Manchester Museum
Alex Bird
National Museums Wales
Heledd Fychan
National Trust for Scotland
Michael Terwey
National Trust
Alex Bird
Norfolk County Council
Steve Miller		 2021
£
666
1,845
273
2,358
2,358
1,845
9,345

17. Operating lease commitments

Property
Less than one year
2 to 5 years
More than 5 years
Other
Less than one year
2 to 5 years
More than 5 years
Expenditure committed to under operating leases falling due in;		 2021
£
69,750
372,000
511,500
1,147
-
-		 2020
£
93,000
372,000
604,500
1,888
-
-

42

Museums Association

Notes to the Financial Statements

For the year ended 31 March 2021

18. Defined benefit pension scheme

The association operates a defined benefit scheme in the UK which was paid-up at 31 March 2008 so no further service liability will accrue.

The most recent full actuarial valuation was carried out in 2019 by a qualified actuary. As the scheme was fully funded no contributions were made in 2020-21.

Defined benefit cost:
Current service cost
Net interest cost on the recognised defined benefit asset
Remeasurements recognised in the SOFA
Remeasurements recognised in Other Comprehensive Income:
Remeasurement of defined benefit obligation
Return on plan assets
Change in effect of the asset ceiling		 2021
£'000
-
-
-
2021
£'000
718
(645)
(73)
-		 2020
£'000
-
(1)
1
-
2020
£'000
(345)
313
33
1

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

Financial Assumptions:

Financial Assumptions:
2021 2020
% %
Discount rate at the end of the year 2.2% 2.4%
Retail Price Inflation 3.4% 2.8%
Consumer Price Inflation 2.7% 1.9%
Increases in deferment 2.7% 1.9%
Rates of increase to pensions in payment
Pensions earned before 6/4/97 0.0% 0.0%
Pensions earned after 5/4/97 3.4% 2.8%

Based on the mortality assumptions detailed below, the following illustrates the life expectancies used to place a value on the Scheme's liabilities as at 31 March 2021:

Life expectancy Male Female
Member aged 65 at the effective date of the calculations 20.2 22.5
Member aged 65 at a date 20 years after the effective date of the 21.5 23.9
calculations

43

Museums Association

Notes to the Financial Statements

For the year ended 31 March 2021

Financial Assumptions (cont.)

Demographic and other assumptions

Demographic and other assumptions
2021 2020
Mortality after retirement base table S3PA with ages rated up 2 S3PA with ages rated up 2
years years
Future improvements CMI_2019 [1.25%] CMI_2019 [1.25%]
Cash commutation All members will commute All members will commute
25% of pension on current 25% of pension on current
terms terms
Retirement age Normal retirement age Normal retirement age
Proportion of members with 85% - Males; 75% females 85% - Males; 75% females
a spouse
Average age difference between Females are 3 years younger Females are 3 years
member and spouse than males younger than males
Discretionary increases No allowance No allowance

The expected return on the plan assets is based on the fair value of the assets at the beginning of the period and the expected long term rate of return as estimated at the start of the period.

The employee benefit obligations recognised in the balance sheet are as follows:

Present value of defined benefit obligations
Fair value of plan assets
Net asset recognised in the Balance Sheet		 2021
£'000
3,419
(3,607)
(188)		 2020
£'000
2,648
(2,903)
(255)

44

Museums Association

Notes to the Financial Statements

For the year ended 31 March 2021

18. Defined benefit pension scheme (continued)

Movements in the present value of the defined benefit obligation are as follows:

Opening defined benefit obligation
Service cost (Current and past)
Interest cost
Remeasurement arising from changes in assumptions
Remeasurement arising from experience
Benefits paid
Liabilities at end of period
Changes in the fair value of plan assets are as follows:
Opening fair value of plan assets
Interest income
Actual return on plan assets, excluding interest income
Contributions by employer
Benefits paid
Assets at end of period		 2021
£'000
2,648
-
63
729
(11)
(10)
3,419
2021
£'000
2,903
69
645
-
(10)
3,607		 2020
£'000
2,949
-
73
(316)
(29)
(29)
2,648
2020
£'000
3,166
79
(313)
-
(29)
2,903

The actual return/(deficit) on plan assets was £ (714,000); (2020: (£234,000)).

The major categories of plan assets as a percentage of total plan assets are as follows:

£'000 %
£'000
%
2021
2020
Equities 2,597 72%
1,887
65%
Bonds & Gilts 361 10%
377
13%
Property 577 16%
494
17%
Cash 72 2%
145
5%

45

Museums Association

Notes to the Financial Statements

For the year ended 31 March 2021

19. Funds held by The Museums Association as an intermediary agent

The Museums Association receives an annual restricted grant from Esmee Fairbairn to support the research, development and administration of the Esmee Fairbairn Collections Fund. This is recognised as income in the financial statements.

The MA also receives £1.3 million per year for 2020-22 over the extended life of the programme for distribution to grant recipients. Under the terms of the agreement, the Museums Association will receive, review and filter applications which will be sent to an approval panel for consideration. The panel consists of two Esmee Fairbairn trustees, the Esmee Fairbairn chief executive, the Museums Association’s chief executive and two members from the museums community. Based on the composition of the panel and the fact that the Esmee Fairbairn chief executive has the casting vote on the approval of awards, the Museums Association has no ultimate control over the distribution of the awards.

Under this arrangement the Museums Association is holding the funds as an intermediary, awaiting instruction from Esmee Fairbairn to distribute the funds. Although the Museums Association will monitor and report against the use of the funds, the ultimate control of the funding and legal responsibility for ensuring the charitable application of the funds would appear to remain with the Esmee Fairbairn Foundation.

As such, funds received and distributed under this arrangement have been excluded from the MA's accounts. This year, £ 441,478 was carried forward, £ 1,075,996 was received and £ 1,234,798 was awarded. At the year end, the MA held cash of £ 282,677 which is payable to grantees under the programme. This bank balance and corresponding liability have also been removed from the financial statements.

46