Company No. 252131 Charity No. 313024 OSCR No. SC041846 ## **MUSEUMS ASSOCIATION** ## **REPORT AND FINANCIAL STATEMENTS** **31 MARCH 2022** ## **REFERENCE AND** ## **ADMINISTRATIVE DETAILS** ## **For the year ended 31 March 2022** ## **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 126 High Holborn London WC1V 6QB 1 ## **Solicitors** Russell-Cooke, Solicitors 2 Putney Hill London SW15 6AB Stone King, Solicitors London EC1M 4BS ## **Auditors** Moore Kingston Smith LLP Chartered Accountants Statutory Auditors Devonshire House 60 Goswell Road London EC1M 7AD ## **Investment managers** Rathbones 8 Finsbury Circus Finsbury London EC2M 7AZ ## **Board 2021/22** ## **President** Gillian Findlay ## **Vice President** Simon Brown Nivek Amichund Alex Bird (retired 31/03/2022) Stella Byrne Dianna Djokey Heledd Fychan (retired 12/05/2021) 2 Sara Kassam (appointed 15/10/2021) Kathleen Lawther (appointed 28/04/2022) Heather Lees Michelle McGrath Christine McLean (appointed 28/04/2022) Steve Miller Dhikshana Pering (retired 31/03/2022) Rachael Rogers (appointed 15/10/2021) Kim Streets (retired 31/03/2022) Michael Terwey ## **Staff** ## **Director** Sharon Heal ## **Membership, Marketing and Website** ## **Deputy Director** William Adams ## **Marketing & Membership Manager** Zoe Spencer ## **Membership & Marketing Officer** Sophie Lawson ## **Marketing & Membership Officer** Emma Randall ## **Account Manager** Abigail Lasisi ## **Website and Digital Officer** Francesca Collins ## **Projects and Programmes** ## **Programmes Manager** Sally Colvin ## **Policy Manager** Alistair Brown ## **Campaigns Officer** 3 Antonia Canal ## **Decolonising Programme Officer** Roshi Naidoo* ## **Collections Development Officer** Sarah Briggs ## **Projects Assistant** Jacqui Buscher ## **Workforce Development Officer** Tamsin Russell ## **Publications and Events** ## **Head of Publications & Events** Simon Stephens ## **Deputy Editor** Eleanor Mills ## **News Editor and Staff Writer** Geraldine Kendall Adams ## **Online Publications Editor** Rebecca Atkinson ## **Finance and Resources** ## **Head of Finance & Resources** Neil Mackay ## **Finance Administrator** Jolanta Stevens ## **Executive Assistant & HR Officer** Charlie Lindus _* indicates person joined during the year_ 4 ## **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 2022. 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 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 2022/23. ## **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. 5 ## **Staffing** The 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 d 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 in charity equity and fixed interest funds. ## **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 agreed that, in line with Charity Commission guidelines, the MA will at least hold free reserves equivalent to three months turnover. In 2021/22 this equated to £518,000. Unrestricted reserves at the year-end were £ 1.68m including designated funds of £600,000 for pension, £60,000 for planned investment in web updates. In the year the Trustees also designated £90,000 from free reserves towards access funding and membership support. This gave a free reserves figure of £ 942,000 at the year end. 6 A reduction in unrestricted income is a medium risk to the MA mainly due to the financial restraints within the sector potentially affecting the amounts free to spend on MA membership and activities over the coming year, with expenditure and restricted income considered a low risk. The major external potential risks identified are the ongoing impacts of the pandemic, potential cuts within the sector, and the cost of living crisis. 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 10,557
10,138
8,979
8,354 8,364
7,740
7,185
6,833
Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
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7 **----- Start of picture text -----**
Total end of year membership
14,691
10,651 10,557
10,138
8,979
8,354 8,364
7,740
7,185
6,833
6,304
Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
**----- End of picture text -----**
## **In 2021/22** Following a significant fall in 2020/21 due the impact of the pandemic, membership has slowly but steadily risen again. Overall membership increased by four per cent – with individual membership being the key driver. Institutional membership fell a little from its high point during the pandemic, and remains significantly higher than pre-pandemic levels. ## **Individual membership** Year on year individual membership increased by five per cent (2021/22: 9,631; 2020/21: 9,192). This growth was particularly in the student, volunteer and essential member categories. Membership in the devolved nations of the UK remained high throughout the pandemic and have maintained these levels. ## **Institutional membership** Year on year institutional membership fell by two per cent (2021/22: 673; 2020/21: 682). This level is still significantly higher than pre-pandemic levels and we continue to represent over 1,800 museums through our institutional members. ## **Commercial membership** Year on year commercial membership fell by two per cent (2021/22: 253; 2020/21: 257). This reflects our strong engagement with our commercial members despite the significant impacts of the pandemic upon their work. 8 ## **In 2022/23** In 2022/23 we expect our members to be affected by the longer term impacts of the pandemic, by rising energy prices and the squeeze on public and personal finances and the cost of living crisis. We aim to retain our organisational members and slowly grow individual membership, through the support and advocacy we are undertaking for the sector. ## **WEBSITE AND DIGITAL** 2021/22 saw us build on the significant digital engagement we had during the first year of the pandemic. Our digital audience remained very high and we saw significant growth in some of our social media channels; this was reflected equally across all four nations of the UK. ## **In 2021/22** - We received 2,061,000 page views on our website from 1 April 2021 to 31 March 2022 and we engaged with 577,000 users. We updated existing content and launched large content areas for programmes such as Supporting Decolonisation in Museums and the Front-of-House Charter for Change. - We consolidated our social media strategy as deployed in spring 2021. From April 2021 to April 2022, our social media followings increased notably on the following platforms: LinkedIn: 14,163 to 23,177 (+9,014, a 64% increase) - Twitter: 61,945 to 65,727 (+3,782, a 6% increase) - Instagram: 4,226 to 5,392 (+1,166, a 28% increase) - We successfully executed our first ever hybrid annual conference in Liverpool, managing an app for both in-person and online attendees and delivering content through the hashtag #Museums2021. - We delivered two newsletters per week to keep our 45,000 subscribers up to date with the latest sector news, MA news and content from Museums Journal. - We continued to work with our web development supplier to roll out new and improved functionality across the website. - We made technical improvements to accessibility across the website, social media and our newsletters. 9 ## **In 2022/23** - We will continue to - update/improve existing content. - We will consolidate our existing regular analytics work and upgrade our platform to Google Analytics 4 in line with new developments from Google. - We will make - the campaigns area. - We will release a review of the first year of our social media strategy rollout. - We will launch a web style and process guide to streamline the development and delivery of new content. - We will deliver our second hybrid annual conference in Edinburgh, building on successes and learnings from the 2021 conference in Liverpool. ## **PUBLICATIONS** Publications continue to offer comprehensive news, comment, best practice and information to the sector online and in print. ## **In 2021/22** - We continued as a bi-monthly printed magazine with increased coverage of key sector issues, developments and trends. - We published our first guest-edited issue of Museums Journal, with Museum X (the team - behind the Black British Museum) taking over the whole issue with support from journal staff. We published our annual Careers Guide, which offers advice and support to those looking to enter the museum and gallery sector - There were reviews of new and redeveloped museums and key temporary exhibitions in - England, Northern Ireland, Scotland and Wales, as well as profiles of key sector figures and a focus on an international museum opening in each issue. - We continued to offer a comprehensive - We developed an editorial mission statement for Museums Journal. ## **In 2022/23** We will publish a themed issue on how museums are responding to the climate crisis. - We will continue to cover key developments in museums across England, Northern Ireland, Scotland and Wales. We will publish more campaigning and investigative content. 10 We will continue to give MA members a voice in our editorial content online and in print. ## **CONFERENCE AND EVENTS** The annual conference has continued to evolve in response to the Covid-19 pandemic and was held in Liverpool and online in November 2021. This hybrid approach was 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 further develop out conferences and events in a post-Covid world. Our one-day conferences also evolved during the period and were all online. We have successfully moved to a paying model, while still offering our programme of free online meetings for MA members across the UK. ## **In 2021/22** - Our annual conference was a hybrid event and was in Liverpool and online. - We offered a successful programme of eight paid-for one day conferences covering digital technology, accessibility, curation, exhibition design, community participation and revenue generation. - The one-day conference programme also included Moving on Up, our one-day conference for mid-day conference for those wanting to enter the museum sector, including museum studies students, apprentices and trainees. - We held a free international webinar on the impact of the Black Lives Matter movement on museums. ## **In 2022/23** - Our annual conference will be a hybrid event and will be held in Edinburgh and online. - We will hold two in-person one-day conferences: Moving on Up, our event for mid-career museum professionals, and Museum Tech 2022: A Digital Festival for Museums. - Our other six one-day conferences will be online and will cover accessibility, collections, - -day conference - for those wanting to enter the museum sector. 11 - in each nation of the UK. - We will also hold a series of free one-hour webinars for members. ## **POLICY AND ADVOCACY** heart of their communities and our mission is to inspire museums to change lives. Over the past year we have worked to support our members and the sector to emerge from the pandemic and to deliver this vision and mission. Coronavirus has continued to have an impact on society and our museums, and we have advocated for the extension of emergency funding and for the continuation and strengthening of the connection between museums and their communities during this period. ## **In 2021/22** - We advocated for a strong recovery from the coronavirus crisis, recognising that the sector will need to rebuild audiences and tackle critical issues such as the climate crisis, diversity and decolonising our institutions. - We conducted research to ensure our advocacy is evidence-based, including our Redundancy Tracker which measured 4,824 job losses over 24 months. We also undertook research into local authority funding for museums across the UK and will continue to use that evidence to advocate for investment in local museums. - We continued to support the work of the Decolonisation Guidance Working Group and launched the Supporting Decolonisation in Museums guidance at Conference 2021. We supported ongoing conversations about anti-racism and museums and produced a Museum Essentials online training module to support understanding and best practice. We championed and campaigned for a diverse and inclusive workforce and worked with Front of House Museums network and other stakeholders to produce the Front of House Charter for Change - We developed best practice in workforce wellbeing to create new guidance for the sector and created a wellbeing hub on our website. - We continued to disseminate the Learning and Engagement Manifesto, through webinars, conferences and events. 12 - We published museum manifestos for the elections in Wales and Northern Ireland in collaboration with board members and reps, and worked with stakeholders and Museums Galleries Scotland to produce a manifesto for culture in Scotland. - We worked to build and sustain relationships with key stakeholders in all nations to make the case for socially impactful museums. - We delivered the Museums Change Lives Awards at our annual conference, raising the profile of social impact work and highlighting innovative digital innovation. - We continued to advocate the value of museums to politicians and stakeholders across the UK, meeting with senior politicians and civil servants in every nation. - We delivered press and broadcast interviews on topics including coronavirus, decolonisation, representation of women in collections, and recovery from the pandemic. - We responded to government consultations and policy across the UK including Levelling Up Policy, Spending Review 2021, Scottish Cultural Funding, and the illegal Russian invasion of Ukraine. ## **In 2022/23** - We will continue to advocate for funding to support museums to deliver for their communities. - We will further disseminate our Supporting Decolonisation in Museums guidance to help the sector build skills and confidence to act on decolonisation. - We will produce a decolonisation Museum Essentials online training module to support understanding and best practice, and will bring together a network of practitioners. - We will campaign for a diverse and representative workforce and will update our salary guidelines and use them to campaign for fair and equitable pay in the sector. - We will further develop best practice in workforce and community wellbeing and create new resources to support this activity. - We will build our campaign for museums to work with their audiences to tackle the climate crisis. ## **ETHICS** Our Ethics Committee leads sector thinking on a range of ethical issues from decolonisation to climate change and gives advice to institutions and individuals on case work. 13 ## **In 2021/22** - We worked with the Decolonisation Guidance working group and the Ethics Committee to publish the Supporting Decolonisation in Museums guidance - We championed ethical good practice through speaking at events and delivering training. We dealt with a range of ethical queries and case work. - We worked with funders to develop a programme to support decolonisation skills and confidence. ## **In 2022/23** - We will work with colleagues across the sector to redraft the Disposal Toolkit and provide clear, up-to-date advice that enables all museums to confidently and ethically dispose of items from their collections while maintaining public trust. - We will continue to support museums in navigating a range of ethical issues - We will continue to deal with a range of ethical queries and case work. - We will publish further support for decolonising practice including a Museum Essentials online module and will build skills and confidence by bringing people together in networks and at events. ## **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 £20,000 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 2021/22** - £10,000 QDG Heritage Trust £10,000 Lowestoft Museum £ 2,000 Daventry Town Council £ 10,000 Paxton Trust 14 ## **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 2021/22** £9,039 CPD awards and fees £13,902 Covid Hardship awards £2,200 Hardship awards £12,408 Inclusive memberships and events In 2022/23 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** ## **Collections and engagement** Our work this year has brought together increased recognition of social inequality, from Black Lives Matter and Covid health and wellbeing outcomes, and learning from our changed working practices during the pandemic. ## **In 2021/22** - From the Esmée Fairbairn Collections Fund, we awarded 24 grants totalling £ 943,569 to museums and partnership working with communities and collections. We worked with existing grantees to adapt their projects to the needs arising from the Covid19 pandemic: issues ranging from recruitment of staff and volunteers, to hybrid delivery and changing local needs. - We began a research project into the impact of digital funding, in partnership with Art Fund UK. 15 ## **In 2022/23** - We will work with the Esmée Fairbairn Foundation to review the Collections Fund and how it supports their strategy relating to creative, confident communities. - We will share research and case studies about working with collections to support community partnerships; wellbeing; and social and climate justice. - We will work with partners ASDC and the Liminal Space to explore shared experiences across museums and science centres about public engagement and financial stability. ## **Inclusion** We ensure that equity, diversity and inclusion are woven through our programmes and drive our future plans. This includes the funding that we award through the Collections Fund, Benevolent Fund and Beecroft Bequest, and developing specific programmes that support inclusion. ## **In 2021/22** - We began the Decolonisation Skills and Confidence programme to support the practical application of the Decolonisation Guidance in museums. - We published a Museum Essentials courses on Supporting Anti-Racism. - We dedicated £15,000 as part of the Benevolent Fund to support inclusive memberships and inclusive event places, in addition to our usual support. - We made changes throughout our programmes to support inclusion, for example through funding terms and conditions specifying ways of supporting equitable community relationships and through the questions we ask in applications about how work relates to Power to the People framework and the Supporting Decolonisation in Museums guidance. ## **In 2022/23** - We will publish an updated salary survey and resources on inclusive recruitment. - We will produce a guide to Decolonisation Comms and Language, to support museums to communicate their decolonising work. - Through the Decolonisation Skills and Confidence programme, we will launch a Museum Essentials course on decolonisation, a training programme and a leaders network. ## **WORKFORCE DEVELOPMENT** Our support for the museum workforce continues to centre around the impacts of the Covid-19 pandemic. We have continued our core programmes, the Associateship of the Museums 16 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 reviewed the range of additional programmes and offers that we ran through the pandemic and developed a new workforce strategy. ## **In 2021/22** - We continued our Essential Mentoring programme and Career Conversations, with 150 participants benefiting. Our Facebook groups for staff on furlough and those managing in a crisis had over 100 members and were brought to a close as the museum sector reopened. We launched the Front of House Charter, which was created with the Front of House Museums network. The charter explores how we can improve the treatment and experience of front-of-house museum colleagues through the commitment of organisations, line managers and others. - We had 570 new learners joined Museum Essentials, resulting in 3,915 learners across our five courses. - There were 82 people registered for the AMA and 15 people were awarded the Associateship. An additional five people registered for FMA. ## **In 2022/23** - We will launch a new competency framework for all of our professional development programmes, provide a tool to self-assess individual development needs and link to our resources that support competency development. We will update the materials for the AMA and FMA and provide support for phased transition to the new framework. - We will embed our approach to mentoring as a long- term programme run alongside the AMA and FMA. - We will update and develop our careers hub and introduce guidance on inclusive recruitment. We will begin a campaign exploring workforce and community wellbeing. - We will publish new Museum Essentials courses on decolonisation and climate justice. - We will update our salary guidelines to support the sector in addressing the issue of low pay. 17 ## **REVIEW OF FINANCIAL ACTIVITIES** The results for the year 2021/22 show a negative movement in funds of £283k before actuarial gains/losses on pension scheme assets. Overall, unrestricted income of £1,510k was 3% lower than last year (£1,559k). Our key areas of unrestricted income are: membership £930k (2021: £1,1119k), publications £140k (2021: £118k) and events £213k (2020: £29k). Unrestricted (including designated) expenditure was 4% lower at £1,489k (2021: £1,554k). With limited growth in the financial markets MA investments showed an unrealised gain of £139k. The balance of restricted funds decreased by £403k largely due to the distribution of grant funds for the UKRI Digital Innovation and Engagement project. The balance of endowment funds remained similar. 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: select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; 18 - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the board members are aware: - unaware; and - the board members have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. The board members are responsible for the maintenance and integrity of the corporate and 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 19 at 31 March 2022 was 10,557 (31 March 2021: 10,138). 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 2022 and signed on its behalf by, Gillian Findlay, President ## **Opinion** We have audited the financial statements of Museums Association for the year ended 31 March 2022 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 Accounting Practice). In our opinion the financial statements: - 2, - and of its incoming resources and application of resources, for the period then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 20 have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005 (as amended), regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the independent of the charitable company in accordance with the ethical requirements that are and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** 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 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. 21 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: - the information given in the with the financial statements; or the charitable company has not kept adequate accounting records; or - the financial statements are not in agreement with the accounting records and returns; or we have not received all the information and explanations we required for our audit. ## **Responsibilities of 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 going concern and using the going concern basis of accounting unless the trustees either intend to 22 liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 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 el 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 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: 23 - We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Charities and Trustee Investment (Scotland) Act 2005, the Companies Act 2006, the Charities Act 2011 and UK financial reporting standards as issued by the Financial Reporting Council. - We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance. We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance. - We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. - Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the c - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. - ncern basis of accounting - and, based on the audit evidence obtained, whether a material uncertainty exists related to continue as a going concern. If we conclude that a material uncertainty exists, we are required 24 or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidenc conditions may cause the charitable company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. ## **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 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. Date 12 October 2022 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. 25 Mu$¥um$ As$o¢iation ststèmènt of Flnanelal Aetlvltl•s Ilneorporatlng an Incomè and Expènditurè Aeeauntl For the ear ended 31 March 2022 2022 Total 2021 Total Endowment Restricted Unrestricted Note Income and endowments from: Donations, grants and legacies Investment income Charitabl& achvi118S Otherincoming Trsour¢8s 545,858 40,000 117,414 1.320.454 32.659 585,858 133,186 1.320,454 32,659 885,727 126,998 1.296.191 112,557 9.186 Total incoming rnsources 1 510527 2 072 157 2,401,473 ReBourcos exponded Charitabl8 aGliviti&s 1469 156 2 494 200 1.723.847 Total re8ourc•s expendod 32.000 973.044 1.489.156 2,494.200 1.723.847 Net gainlllos81 on investment assets 11a 23.437 17,773 97,565 138,775 437,689 N•t In¢omlnglloutgolngl 10￿ure¢S beforo tran8fors and other rncognl8•d goln8 and lo$$•s 623 {402,8271 118,936 {283.2681 1.115,315 Gro$$ tran$fers be￿88n funds Transfer of funds out of the charity Actuarial gainlllossl on defined benefit pension scheme Net mov•m•nt In fund8 lor the year R•¢on¢ili¥tion of lund$ 267.000 267.000 136.000 623 {402.8271 {146.0641 {550.2681 979.315 Funds brought forward at l Aprll 2022 Funds carrl•d forward 475.238 1,106.779 703,9S2 1,825,751 1,677,687 3,407,768 2,428,453 2,857,500 3,407,768 14115 47S.861 All of the above results are derived from continuing acts'vities. All gains and losses reco9nised in the year are included above. Movements in funds are disdosed in Note 14 to the financial statements. 26 Mus•ums Assoelatlon {Llmit•d by Guarantsèl Balane• Shoot As at 31 March 2022 2022 2021 Note Fixed assets Tangible Fixed Assets Intangible Fixed Assets Investments 40.129 27,722 2,91S,916 2.983,767 35,806 72,398 2,777,141 2,885,345 Current assots Debtor5 Cash al bank and in hand 12 465,904 4,377 727,842 124 340 470.281 852,182 Creditors: amounts falling due within one year 13 517758 Net current a88etsllllab511tiesl {126.2671 334,423 Net a880ts excludlng penslon asset 2.857,500 3,219,768 Definod benefit schemo assot 18 188,000 3,407,768 Net a$$ots Includlng p¢n8lon asset 14115 2,857,600 Funds Endowment funds Restricted lund5 Unrestricted funds Designated funds General fund5 475,861 703,952 475,238 1,106,779 735,566 942,121 1,677,687 716,165 921,586 1,637,751 Unre51ricted inceme lund$ excluding pensions asset Pgn$ion reserve 18 188,000 Total unrestricted funds 1.677.687 1,825,751 Total funds 14115 2.857,500 3,407,768 These financial stslements have been p￿pared in accordance wth the provrsions applicable to companies subject to the small companies regime Part 15 of the Companies Act 2006. Approved by the Board on 11 October 2022 and signed on its behall by Gillian Findlay President Simon Brown Vice President 27 Museums Association statement of Cash Flows For the ear ended 31 March 2022 2022 2021 Cash flowlloutfiow) from operating activities Cash generated from operations Interest paid Nel cash provided byllused inl operating activities (85,0031 42,447 185,0031 42.447 Cash flow from Investlng a¢tlvltles Bank interest received Acquisition of fixed asset investments Disposal of financial Instruments 1.446 173.9031 13S,0041 Net cash used In Investlng actlvltles 34,959 72,457 Net increase in cash and cash equivalents Cash and cash equivalents al beginning of year 1119,9631 124,340 130,0101 154.350 Cash and cash equlvalents at end of year 4,377 124.340 ReconcllSatlon of net Sncomellexpendtturel to net cash flow from operatlng actlvhtle8 2022 2021 Net Income Includlng endowments 1550,2681 979,315 AdJu$tmont$ for: Depreciation charges Amortisation Bank interest received Nel Igainsll losses on Investments Decrease lincreasel in pension asset Decrease I lincreasel in stock Decreasel lincreasel in debtors Increasel Idecreasel in creditors 24,396 50,960 1451 1138,7751 188,000 19.523 75.211 11,4461 1437.6891 67,000 261,938 78,790 1344.8551 1314,6121 Net Cash proylded byllused Inl operatlng actlvltles 85.003 42,447 28 Museums Association Notss to th8 Flnanclal Stat8m•nts For the Year Ended 31 March 2022 1. Accounting Polici8s al The financial ststements have been p￿pa￿ under the histori￿1 Cost t>)nvenlion except for investments which are induded at market value. The statements have been prepared in accordance with the Statement of Recommended Practice ISORPI FRS 102, Accounts'ng and Reporting by Charitses published in 2015. the Companies Act 2006 and applicable accounting stsndard5. The finanaal statements are prepared in sterfing. Wh￿ is the fvnth'onal currency of the charity. Amounts presented a￿ rounde(I to the nearest pound. bl The charity is a company limited by guarantee and incorporated in England & Wales. Tha members of the company are the individuals and insts'tutsons in membership of the Association. In the event of the charity being wound up. the liability in respect of guarantee is limited to £1 per member of the chanty. The company is a putlic benefit enty"ty. cl The Iru$l&es have as$&ss&d whelher the use of the going con¢em ba*$ 1$ appropriat& and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concem. In lighl of the current pandemic, Trustees have reviewed and approved revised budgets and forecasts. in parts'cular taking into account pressures on events. membership. publicab"on$ and investment Income. Trustees have made this assessment lor a period ol at least one year from the dale of approval of the financial statements. After makin9 enquiriès the trustees have concluded that there is a reasonable expectats'on that the chanty has adequate resources to continue in operats'onal existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing ils finan¢ial stalemenls. dl Ggneral funds are unrestricted fun¢Js whi¢h are available for use al the di$¢relion of the trustees in furtherance of the general objecb'ves of the charity and which have not been designated for other purposes. Designated funds are unrestricted lunds thal have been set aside by the trustees for parts'cular purpose5. The aim and use ol each designated fund is set out in the notes lo the financial glatements. el Re81ricted and end¢>wmenl fund$ are to be use(1 f¢( speufic purposes as laid down by the donor. Income generalefj from inveslments helfj by the fvnd$ 1$ reslncted to use by the fund. Expenditure which meets these criteria is charged to the lund. Incoming resources. including grants, are included in ihe statement of financial activities ISOFAI when there is enlidement to the fijnds.lhe receipt is probable and the amount can be measured reliabty. nel of VAT where applicable. gl Membership income is included on a receivable basis with amounts relating to future accounting years deferred a5 svbscripb.ons in advance. For svbscripb.ons of publicab"on3 the amount re¢ognise*ar, at tATr81 Disposals dunry the year. at broughl loThRrd valu8 Realised11055e51 gain5 Unrealised Ilossesl 1galn$ Al 31 March 2022 2,T17.141 2.339,452 138.775 437,689 2.777,141 2.91S,916 Al the balance sheet dole. the m*ket ofthe pthlh) c￿￿￿ed.. Flxed intsre$i UK equili85 Global equibes Propety Other a55els 343.149 1.1%1.041 1,289.089 147.478 75.159 Al 31 March 2022 2 91S916 Irnlividual holding$ rewesentsrvj more 5% olV* mwkei of porfdio 8t bolance Sheet date are as lo1￿￿1. 2022 BROWN ADVISORY FUNDS US Su81amab￿ Gro%vth C Ir 132.921 Analysis olin¥eslment 2022 2021 Rathbones 2,777.141 2.777,141 Al 31 March 2022 2 915,916 2.777,141 Museums A88o¢latlon Notes to the financial statements Fortho èar èndèd 31 MarGh 2022 Invgstment in subsidiary 2022 2021 Shares in sUbs￿l8ry8t tost 12. Debtors 2022 2021 Trade deblorn Grant Dtbiors Other debto VAT recoverabk Prepaymenls and ac(y￿￿ irKome 68.957 171.983 4.996 71,247 565,911 5,924 219.968 465,904 84,760 727,842 13. Cr0d￿0￿.. amoubth lalllng du• wlthln on• y•ar 2022 2021 Trade cr8dilor5 Accruals PAYE, social se0￿ty 8nd othef taxes VAT payable Other credilors &Jbscrlpiion$ In 8dvan¢e 57,485 55,477 32,743 18,422 7,607 424,834 596,548 32,831 57,705 35,505 5,999 1,843 384,075 517,758 I deferred income recwi88d in 2019 was rel8awJ in 2021 reL8tiTrJ lo fees for CanC￿ed ￿entS due lo Covid (held over with cuslcffier a9reernenll. 39 Museums A88o¢latlon Notes to the financial statements Forthg ear ended 31 March 2022 14. Movements in fvnds Al Ino)miTrJ 31 March Resources 2021 Igoin9 Resour￿5 Transfer8 31 March 2022 Endowment fvrKIs Beecroft Bequest Total tnd¢>wmtrrbt fund& 475,238 32.623 132.rMJoi 475,861 475,861 475,238 32.623 RestrlGtod funds.. Benevolent Fund Esrnee Fairbaim 353,179 118.730 633.125 1.745 35.534 161.663 137.7941 1155.4161 1609.4011 11.7451 350,919 124,997 23,724 UKRI ArtFundL&E Wellcome Trusl Museum Freelance Decolonisalion program ACE CRF 119.C 15.C 89.( 150.LYX) 119.000 400 84,727 185 114.6001 14.2731 149.815 Tot•1 re•trlrtgd lund• 1.1C6,779 570.217 973.044 703.952 Unr88trlctsd fund8'. D•S￿nated fvnds.. Pen$ion Company Fixed A$$ei ￿SerVe Acce$$ CampavJn and membwslw Tolaldvswnaleé funds 800,000 60,274 1.073 73,419 735.566 116,165 155.8911 18.3421 16,$811 70,814 215 10.tM)o 80,(x)O 90,￿0 716,165 215 Gènèril fund• 921.586 1.528.877 1.418.342 90,OC#) 942,121 To¢•1 unrg•trl¢t•d fund• 1.637.751 1.529.092 11.489.156> 188.(X)O 2,682.200 1.677.687 P¢n•lon r•••rv• fynd Totwl fvnds 188,OOD 3.407.768 2.131.932 90.000 2 B57.500 ' Indudes gwns on in¥eslmenl assets Museums A88o¢latlon Notes to the financial statements Forthg ear ended 31 March 2022 Movements in fvnds lcontinuedl 141 PUrP￿e￿ gf End0¥￿eThI Fund¥ The Beecroft Bequesl or¥Jinates from a *gacy made in 1*1 t5 Used to make grants to rnuseurns to IEIp fund purthases of l%duTes and wotks of art prtsth￿d no later Ihan 18th i*nttJry. Purpg¥94 of ￿tri4￿d fund¥ The Benev(Aent Fund as515ts finanaalty distre55ed member5 of atKI Ir￿￿le$ ¥￿thin ts pu[pO￿ promotion oleduG8l￿n prOfes￿onal de¥eloweN of members ollhe M The PM run5 the E5mèe Fairbaiffl C(Akntions FurKI IEFCFI. offering grants of£20.th)10 £100.(M)O lo museum5 fcf me4imiied woth wth Co1￿￿10n$. ThrO￿￿h IhL% Il* MA and Iht Esmée Faitb&m Foundation setk 10 devdop 8 senes of projects thai demonstrate the inspYirvJ and eThJagwMJ polenbal of c4llethon8 lo dehver soual Impact for peO￿e Communit￿S. The MA re￿Ned funds 10 adm￿lS[tr £8￿ ol grnnis for the UKRI thJital InrKJ¥8tiM and ErKJ89em?nl progr8mme. The Art Fund granted funds lo support a LearnirvJ & Ervjagement re8eari* kyogramme. The MA recewed £150,￿0 from Ihe Arts Counul Cuhural Rec￿ery F￿d. Museum Freelance granted Els,(￿ lo dBlritrothe fiJnds lo fredance wker5 8ect￿. The DeColonisa￿0n kycgramme ￿ swported by Ihe FuTrJ. the Esmee Fairbaim FouThYatlon. the John E1￿Mi￿n Foundation aTrJ the Paul Haffl￿ FoUTrJa1￿ to prowde gu￿8￿Ct aThY to the sec1￿. The MA recewed £119,C¥JO from Ihe Welkome Trust as 50 % part pawmwl 018 grant fuTrJ for UK scaenc* cenlres. The MA receNed £150,LIJO from Ihe Arts co￿1 Clthral Recovery F￿d. Purp￿0¥ of do4lgnatod lun A fund of £600.0(K) was sel up in 2012 in F4ace of the tharge on Ihe propety sokl Ihal wr hdd by the Museums Ass0oal￿n Pensiw Plan. The Fixed Assel Reserve has lunds xl ashle lor fulure caplal expeThYrfure. The Acce55 fund e51ablished lo support acce$$ and ind￿10￿ rwls for MA events •nd 8¢tivil*$. De$ignaied Campaign and $upport fUrMJI￿j wa$ esiabli$W 10 $iWrt MA ¢ampawns and membetship. 41 Museums A88o¢latlon Notes to the financial statements Forthg ear ended 31 March 2022 15. Anatysi5 of Net Assets Be￿￿n Funds 2022 Endcwmienl FuTrJs *arend had debtor balwces Imembership or Events Feesl th the Museums A88￿￿or1.. 2022 Sara K8$98m Michael Te￿Y and Abeii Museum National Tru$1 lor S¢oUand 2,358 2,418 17. Oprntiny commitm•b 2022 2021 ExperKliture ¢tynmitted lo urxkT operaiiry k¥ses falkrwJ ￿. Proporty Less ¢han c￿e ￿ar 2105￿￿8 More than 5 yrs 93.000 372.000 418.5 69,750 372,LN)O 511,500 Olhèr Less Ihan ¢￿e >*ar 2t05￿*S More than 5 ￿￿$ 1.147 1,147 Museums As80¢ialion Not88 to the Financial Statements For thè èar •nd•d 31 March 2022 18. D•fin•d ￿n•fit pènslon seh8mè The ass(xiats"on operates a defined bÈnÈfft sd*mÈ in the UK whth was pai&up at 31 Maich 2008 so no further service liabilty will ￿￿e. The most recent lull actuanal valuats.on was ￿rried out in 2019 by a qualified actuary. As the scheme was lully funded no contnbutions were made In 2021-22. Defined benelil ¢osl". 2022 £'ooo 2021 £'ooo Currant swvies cost Nel Interest cost on the recognised ¢Jefined benefit asset R&m$a$urgments recognis¢d in SOFA Rerne88urernents recognised in Olher Cornprehensive Income". 2022 £'ooo 2021 £'ooo Reme8$uremenl of defined benefv ¢*JI￿atIon Return on plan assets Change in effect of the asset ceiling 718 13181 472 16451 1731 Prln¢ipal actuarial assumptions al the balan￿ $h*&t dal& lexpr*ssed a$ weighted 8￿ra9&$I., Finanaal Assumptions.. 2022 2021 Discount rate 8¢ the end ol the ye8f Reiail Pn¢e Inflats¢n Consumer Price Inflation Increases in deferrnent Rate5 of increase to pensions in paymenl Pension5 earned t)elore 614197 Pensions earned after 514fy7 2.2°h 3.4% 2.7% 2.7% 3.8% 3.1% 3.1% 0.0% 3.4% 3.8% Based on the mortality assumpts.ons detsI￿d below. the fdlowng illustrates the lrfe expectancies used to place a value on the Scheme's l￿bIl￿"e9 as at 31 March 2022.. Life expectancy Male Female Member aged 65 at the effective date of the calculth.ons 20.3 22.6 Member aged 65 at a date 20 years after the effecbve date of the 20.3 calculations 22.6 43 Museums As80¢ialion Not88 to the Financial Statements For thè èar •nd•d 31 March 2022 Financial As¥umption8 l¢onLI DeMOgra￿lC and other assumptions 2022 S3PA wlh ages rated up 2 years 2021 S3PA vith ages rated up 2 years Mortalty after retirement base table Future irnprovemenl$ CMI_201911.25%1 CMI_201911.25%1 Cash comrnutation I mem￿r$ will cNnrnute 25% of pens￿ on Current temis l rnernbers will ￿rnrnUte 25% of wnsion on ¢urrenl lemis Retirement age Nomial rebrement age Nom)al ￿1r￿M￿nI age Proportion ol m&mt4rs a spouse 85%- Males, 75% females 85%- Male$," 75% f&m81&s Average age difference befften rnember and spouse Females we 3 years younger than males Females are 3 years younger than rnales Discretionary increases No allowance No allowance The expected return on the plan asset5 is based on the fair valve of (he assets at Ihe beginning ol the period and the &xF4decl long lem r8le of retum a$ ests"mated at the stsrt of the penod. The em ￿¢Ye8 benefit obligations fecognised in the balance sheet a￿ as follows. 2022 È'ooo 2021 £'ooo Present value of defined benefft obligab.ons Fair value ol plan assets Net asset recognised in the BalanTr Sh￿t 3.328 3,328 3,419 3,607 188 Museums As80¢ialion Not88 to the Financial Statements For thè èar •nd•d 31 March 2022 18. D•fin•d ￿n•fit pènslon seh8mè leontlnu8dl Movements In the p￿sent value ol the defined benefft obligats.on a￿ as follows.. 2022 £'ooo 2021 £'ooo Opening defined benefit obligation Service cost (Current and past) Interest C05t Reme85urernent arising frorn chan9es in assumpbons Remeasurernent arising frorn experience Benefits paid 3,419 2.648 75 12021 63 729 12 10 Liabilities at end ol period 3,328 3,419 Changes in the fair value of plan assets are as fdlNs'. 2022 £'ooo 2021 £'ooo Opening lair value ol plan assets Interest incorne Actual return on plan assets. exdudiryJ interest irKome Contributions by ernployer Benefits paid 3,607 79 13461 2,￿3 69 12 10 Assets at end of period 3,328 3,607 The a¢bal relumlld&fioll ￿ plan a$$ws wa$ £ I01".12021".1£645.¢XQII. The major categories of ￿an assets as a percentage ol total ￿an assets are as follows." 2022 2021 £'ooo Equrtie$ Bonds & Gi Property Cash 2.330 70% 9% 18% 3% 2.597 381 577 72 72% 599 100 1e% 2¥. 45 Museums As80¢ialion Not88 to the Financial Statements For thè èar •nd•d 31 March 2022 19. Funds held by The Museums Assoclatbon as an Interniedlary a￿nt The Museums Asswation receives an annual restn'ded grant from Esrnee Fairbaim to support the research. development and adrninistr8bi)n of the Esmee Fairb8im Cdle(XH)ns FurKI. This is recognised 88 Income In the finanaal statements. The MA also receives £1.3 million per year for 2020-22 over the extended life ol the programme lor distribution to grant recipients. Under the tern)s ol the ag￿rnent. the IAuseums Association will receive, review and filter applications which will be sent to an approval panel for consideration. The panel consists of two Esmee F8irbaim trustees. the Esmee Fairbaim chief execubve. the Museurns Assw*ion's ohief executive and hvo members from the museums communty. Based on the composition ol the panel and the lacl that the Esmee Fairbaim chief executive has the casting vote on the approval of awards, the Museums Association has no ultsrnate c4Jntrol over the distribubon ol the awards. Under this arrangement the Museums Assoaation Is holding the funds as an Intermediary, awaiting inslructioll from Esmee Fairbaim to distribute the funds. Mlhough the Museums Association will rnonitor and report against tre use of the funds. the ultirnate control of the fvnding and legal responsibility for •n$uring the ¢hant¥ble ¥ppli¢aiion ol lh¢ funds wouly appeal to ￿M81n wth th& E$me¥ Foirbairn Foundation. As such, funds received and distributed under this arrangement have been exduded from the MA'S accounts. This year. £ 282,677 was carried forward, £ 1.173,208 was received and £ 943,569 was awardttd. At the year end. the MA held ¢ash of £ 512,315 which Is payable to 9r8n¢ees under the programma. Thi$ bank balance and wre$ponding liability have also removed from the finan¢ial statements.