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2023-03-31-accounts

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

MUSEUMS ASSOCIATION REPORT AND FINANCIAL STATEMENTS 31 MARCH 2023

ADMINISTRATIVE DETAILS

For the year ended 31 March 2023

REFERENCE AND

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 London SW15 6AB EC1M 4B

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Auditors

Moore Kingston Smith LLP Chartered Accountants Statutory Auditors 9 Appold Street London EC2A 2AP

Investment managers

Rathbones 8 Finsbury Circus Finsbury London EC2M 7AZ

Board 2022/23

President

Gillian Findlay

Vice President

Simon Brown

Nivek Amichund Stella Byrne Dianna Djokey Tony Heaton (appointed 01/10/22) Sara Kassam Kathleen Lawther Heather Lees (retired 31/07/2023) Michelle McGrath Christine McLean Steve Miller Rachael Rogers Michael Terwey Mohammed Akhtar Suleman (appointed 01/08/23)

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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

Antonia Canal**

Policy and Campaigns Officer

India Divers*

Policy and Campaigns Officer

Joshua Robertson*

Decolonising Programme Officer

Roshi Naidoo**

Collections Development Lead

Sarah Briggs

Projects Assistant

Jacqui Buscher

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Workforce Development Lead

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

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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 2023.

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 2023/24.

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

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delegated to the director who reports to the board.

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 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 2022/23 this equated to

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£490,000. Unrestricted reserves at the year-end were £ 1.39m including designated funds of £600,000 for pension, £67,000 for membership support. This gave a free reserves figure of £ 719,000 at the year end.

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 economic environment and cuts within the sector and the potential effects of Brexit.

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
11,165
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 Mar-23
----- End of picture text -----

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In 2022/23

Following a significant fall in 2020/21 due the impact of the pandemic, membership has steadily risen again. Overall membership increased by six per cent – with individual membership being the key driver. Institutional membership fell from its high point during the pandemic, and remains higher than pre-pandemic levels.

Individual membership

Year on year individual membership increased by seven per cent (2022/23: 10,271; 2021/22: 9,631). 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 four per cent (2022/23: 647; 2021/22: 673). This level is still significantly higher than pre-pandemic levels and we continue to represent over 1,600 museums through our institutional members.

Commercial membership

Year on year commercial membership fell by two per cent (2022/23: 247; 2021/22: 253). This reflects our engagement with our commercial members despite the significant impacts of the pandemic, inflation, and spending cuts upon their work.

In 2023/24

In 2023/24 we expect members to be impacted by the longer term effects of the pandemic, by rising energy prices, the squeeze on public and personal finances, and high inflation. 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

Our website and digital engagement was consolidated and grown in 2022/23, with hundreds of thousands more views and tens of thousands more users when compared to 2021/22. Our digital audience continues to follow us on social media in increasing numbers, and we are pleased to report high newsletter open rates in all four nations of

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the UK.

In 2022/23

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In 2023/24

MUSEUMS JOURNAL

Museums Journal continues to offer comprehensive news, comment, best practice and information to the sector online and in print.

In 2022/23

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interviews with sector figures working in England, Northern Ireland, Scotland and Wales who discussed decolonisation, wellbeing, anti-racism and the climate crisis.

In 2023/24

CONFERENCE AND EVENTS

Our annual conference, which was held in Edinburgh and online in November 2022, has continued to evolve. Our hybrid approach was extremely popular, with high levels of engagement from museum people across the four nations of the UK and overseas. Our offer for conference sponsors, first trialled in 2021 in Liverpool, was again successful in Edinburgh. We will further develop our conference offer to meet the needs of the sector across the UK and internationally.

Our one-day conferences also evolved during the period, with a range of events that featured in-person and online-only events. This approach proved popular, with the programme exceeding its revenue targets. We also refreshed our free events for members with the launch of four hybrid Together events for members in England, Northern Ireland, Scotland and Wales.

In 2022/23

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In 2023/24

CAMPAIGNS 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 to support our members and the sector and to deliver this vision and mission.

In 2022/23

Advocacy

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bill relief scheme and for its extension, and responding to local and national consultations across the UK.

Museums Change Lives

Anti-racism

Decolonisation

Learning and engagement

Workforce and community wellbeing

Ethics

In 2023/24

Advocacy

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Essentials training course on how to advocate for your museum.

Museums Change Lives

Anti-racism

Climate Justice

Decolonisation

Learning and engagement

Wellbeing

Ethics

TRUSTS AND FUNDS

We administer two trusts established to assist museums and their staff in specific areas of collections development and care.

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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 2022/23

Grants awarded 2022/23
Armitt Library and Museum Centre £10,711
Chippenham Museum £1,700
Milford House Preservation Trust £5,700

The Museums Association Benevolent Fund

The Museums Association Benevolent Fund was established to alleviate financial distress suffered by members of the MA and to support the education and training of museums and galleries personnel. In 2022/23 the fund supported members across a wide range of areas, including a new fund to support museum professionals in Ukraine.Grants awarded 2022/23

Ukraine.Grants awarded 2022/23
CPD awards and fees £11,164
Covid Hardship awards £1,000
Hardship awards £6,198
Inclusive memberships and events £28,022
Support for members in Ukraine £28,317

In 2023/24 the fund will be renamed the Museums Association Members Support Fund and will continue to allocate funds towards members suffering financial distress during the cost of living crisis, provide inclusive memberships and events places, support CPD fees and activity, and support international museum professionals suffering humanitarian crises.

PROGRAMMES

The MA’s programmes support people and organisations to develop their vales-led practice, focusing on delivering our campaigns for inclusive, socially engaged, and

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diverse museums. We have worked with a number of partners to test and extend our work across collections, inclusion, research and innovation, engagement, and decolonisation.

In 2022/23

In 2023/24

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and develop our future programming to complement the MA’s campaigns on decolonisation and anti-racism.

WORKFORCE DEVELOPMENT

Inclusive and diverse museums need a workforce that is confident, competent, and empowered to make a positive difference to people’s lives. We have created a competency framework to unite the values, competencies and development paths needed to inform professional development and underpin all our programmes and content. We have continued our core programmes, the Associateship of the Museums Association (AMA), a self-led CPD (Continuing Professional Development) programme with mentoring and support groups; the Fellowship of the Museums Association (FMA), developing and recognising significant commitment to and impact on the sector; Museum Essentials, an online learning programme introducing key elements of working in the museum sector and our Career Conversations programme, for those wishing to access 1:1 support to support their next steps. We have also developed complementary workforce research and campaigns.

In 2022/23

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Decolonisation in Museums; and Taking Action on Climate Justice.

In 2023/24

REVIEW OF FINANCIAL ACTIVITIES

The results for the year 2022/23 show a positive movement in funds of £309k before actuarial gains/losses on pension scheme assets.

Overall, unrestricted income of £1,664k was 9% higher than last year (£1,510k). Our key areas of unrestricted income are: membership £948k (2022: £930k), publications £156k (2022: £140k) and events £329k (2022: £213k).

Unrestricted (including designated) expenditure was 9% higher at £1,646k (2022: £1,490k).

With uncertainty in the financial markets MA investments showed an unrealised loss of

£275k.

The balance of restricted funds increased by £539k largely due to the receipt of grant funds for the UKRI Mindset & Missions programme. The balance of endowment funds decreased due to unrealised loss on investments.

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

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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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the board members are aware:

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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 2023 was 11,165 (31 March 2022: 10,557). 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 10 July 2023 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 2023 which comprises the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows 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.

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 group’s and parent 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.

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Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

we have not received all the information and explanations we require for our audit; or the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the from preparing a Strategic Report.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 18, the trustees (who are also the directors of the charitable company for the purposes of company law) 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

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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 and under the Companies Act 2006 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.

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

the purposes of expressing an opinion on the effectiveness of the charitable company’s internal control.

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

Explanation as to what Extent the Audit was Considered Capable of Detecting Irregularities, Including Fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations.

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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.

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:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for

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example, forgery or intentional misrepresentations, or through collusion.

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 charitable company's trustees, as a body, in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the company’s members 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 as a body, for our audit work, for this report, or for the opinions we have formed.

Date: 20 October 2023

Neil Finlayson, Senior Statutory Auditor

For and on behalf of Moore Kingston Smith LLP

9 Appold Street

London EC2A 2AP

Moore Kingston Smith 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 2023

Endowment
Restricted
Note
£
£
Income and endowments from:
Donations, grants and legacies
3
-
1,179,930		 Endowment
Restricted
Note
£
£
Income and endowments from:
Donations, grants and legacies
3
-
1,179,930		 Unrestricted
£
40,882		 2023
Total
£
1,220,812		 2022
Total
£
585,858
Investment income 11,588
8,652		 164,212 184,452 133,186
Charitable activities
4		 -
-		 1,459,169 1,459,169 1,320,454
Other incoming resources -
-		 - - 32,659
Total incoming resources
Resources expended		 11,588
1,188,582		 1,664,263 2,864,433 2,072,157
Charitable activities
5		 20,608
614,194		 1,645,784 2,280,586 2,494,200
5
11a
Total resources expended
Net gain/(loss) on investment assets		 20,608
614,194		 1,645,784 2,280,586 2,494,200
(46,423)
(35,203)		 (193,251) (274,877) 138,775
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Net incoming/(outgoing) resources
before transfers and other recognised
gains and losses		 (55,443)
539,185		 (174,772) 308,970 (283,268)
Gross transfers between funds
Transfer of funds out of the charity
 -
-
-
-		 -
-		 -
-		 -
-
Reconciliation of funds
Actuarial gain/(loss) on defined benefit
pension scheme
Net movement in funds for the year
Funds brought forward at 1 April 2022		 -
-		 (116,000) (116,000) (267,000)
(55,443)
539,185
475,861
703,952		 (290,772)
1,677,687		 192,970
2,857,500		 (550,268)
3,407,768
Funds carried forward
14/15		 420,418
1,243,137		 1,386,916 3,050,471 2,857,500

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 2023

Note
Fixed assets		 2023
£		 2022
£
Tangible Fixed Assets
9		 39,240 40,129
Intangible Fixed Assets
10
Investments
11
Current assets
Debtors
12		 53,037
2,492,459
2,584,736
1,079,611		 27,722
2,915,916
2,983,767
465,904
Cash and cash equivalents 41,726 4,377
Creditors: amounts falling due within one year
13
Net current assets/(liabilities)
Net assets excluding pension asset
Defined benefit scheme asset
18
Net assets including pension asset
14/15
Funds
Endowment funds
Restricted funds
Unrestricted funds
Designated funds
General funds
18
Total unrestricted funds
Unrestricted income funds excluding pensions asset
Pension reserve		 1,121,337
655,602
465,735
3,050,471
-
3,050,471
420,418
1,243,137
667,558
719,358
1,386,916
-
1,386,916		 470,281
596,548
(126,267)
2,857,500
-
2,857,500
475,861
703,952
735,566
942,121
1,677,687
-
1,677,687
Total funds
14/15		 3,050,471 2,857,500

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 10 July 2023 and signed on its behalf by

Gillian Findlay President

Simon Brown Vice President

Company number: 252131

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Museums Association

Statement of Cash Flows

For the year ended 31 March 2023
2023
2022
£
£
Cash flow/(outflow) from operating activities
Cash generated from operations
(23,325)
(85,003)
Interest paid
-
-
(23,325)
(85,003)
Bank interest received
47
45
(87,953)
(35,004)
-
-
Net cash used in investing activities
(87,906)
(34,959)
Net increase in cash and cash equivalents
37,349
(119,963)
Cash and cash equivalents at beginning of year
4,377
124,340
Cash and cash equivalents at end of year
41,726
4,377
2023
2022
£
£
Net income including endowments
192,970
(550,268)
Adjustments for:
Depreciation charges
20,252
24,396
Amortisation
43,275
50,960
Bank interest received
(47)
(45)
Net (gains)/ losses on investments
274,878
(138,775)
Decrease (increase) in pension asset
-
188,000
Decrease / (increase) in stock
-
-
Decrease/ (increase) in debtors
(613,707)
261,938
Increase/ (decrease) in creditors
59,053
78,790
Net cash provided by/(used in) operating activities
(23,325)
(85,003)
Net cash provided by/(used in) operating activities
Acquisition of fixed asset investments
Disposal of financial instruments
Cash flow from investing activities
Reconciliation of net income/(expenditure) to net cash flow from operating activities

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Museums Association

Notes to the Financial Statements

For the Year Ended 31 March 2023

1. Accounting Policies

31

Museums Association

Notes to the Financial Statements

For the Year Ended 31 March 2023

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 2023

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.

33

Museums Association

Notes to the Financial Statements

For the Year Ended 31 March 2023

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.

34

Museums Association

Notes to the Financial Statements

For the Year Ended 31 March 2023

3. Donations, grants and legacies

3. Donations, grants and legacies
UKRI Mindsets & Missions
UKRI Digital Learning
Decolonisation programme
Paul Hamlyn
Wellcome Trust
Other
Decolonisation
Museums Freelance
ACE
Paul Hamlyn
Wellcome Trust
HMRC JRSI
Other
4 Charitable activities
Trusts and funded projects
Esmee Fairbairn Collections Fund
Trusts and funded projects
Esmee Fairbairn Collections Fund		 Restricted
£
869,178
22,000
-
-
119,000
18,072
1,028,250
151,680
1,179,930
Restricted
£
89,000
25,000
150,000
-
119,000
-
1,175
384,175
161,683
545,858
Restricted
£		 Unrestricted
£
-
-
-
40,000
-
882
40,882
-
40,882
Unrestricted
£
-
-
-
40,000
-
32,659
-
72,659
-
72,659
Unrestricted
£		 2023
£
869,178
22,000
-
40,000
119,000
18,954
1,069,132
151,680
1,220,812
2022
£
89,000
25,000
150,000
40,000
119,000
32,659
1,175
456,834
161,683
618,517
2023
£
Membership - 947,607 947,607
Publications
Events
Professional development		 -
-
-
-
Restricted
£		 156,201
329,156
26,205
1,459,169
Unrestricted
£		 156,202
329,156
26,205
1,459,169
2022
£
Membership - 929,869 929,869
Publications
Events
Professional development		 -
-
-
-		 140,104
212,942
37,460
1,320,375		 140,104
212,942
37,460
1,320,375

35

Museums Association

Notes to the Financial Statements

For the Year Ended 31 March 2023

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
£
£
£
£
£
£
£
£
£
174,252
147,198
211,184
77,259
179,376
-
306,903
182,261
1,278,433
137,016
150,363
24,837
1,440
4,251
5,183
236,485
113,334
672,909
-
-
-
-
-
-
1,245
254,792
256,037
-
-
-
-
-
-
63,527
-
63,527
-
-
-
-
-
9,680
-
-
9,680
311,268
297,561
236,021
78,699
183,627
14,863
608,160
550,387
2,280,586
Publications
Allocated support costs 166,139
83,070
186,907
62,302
124,605
(14,863)
(608,160)
-
-
Total resources expended 477,407
380,631
422,928
141,001
308,232
-
-
550,387
2,280,586

For the Year Ended 31 March 2022

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
£
£
£
£
£
£
£
£
£
146,088
117,099
171,770
62,291
160,514
-
341,458
169,159
1,168,379
102,821
95,543
24,506
268
7,931
3,630
157,812
168,037
560,548
-
-
-
-
-
-
-
682,771
682,771
-
-
-
-
-
-
19,464
55,891
75,355
-
-
-
-
-
7,147
-
-
7,147
248,909
212,642
196,276
62,559
168,445
10,777
518,734
1,075,858
2,494,200
132,378
94,556
151,289
56,733
94,556
(10,777)
(518,734)
-
-
Publications
381,287
307,198
347,565
119,292
263,001
-
-
1,075,858
2,494,200

36

Museums Association

Notes to the financial statements

For the year ended 31 March 2023
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
 2023
£
-
23,577
63,527
95,297
-
9,680
15,500
-		 2022
£
-
22,481
75,356
72,147
-
7,148
18,995
-
Income from quoted investments
Bank interest receivable		 68,272
47		 54,041
45
£ 3,934 in reimbursed travel and subsistence costs relating to attendance at Board meetings were paid to 6 board
members (2022: £ 1,202) during the year. Trustee indemnity is covered by the organisation's Charity Care insurance.

37

Museums Association

Notes to the financial statements

For the year ended 31 March 2023

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:		 2023
£
919,473
0
99,698
47,764
79,073
60,890		 2022
£
855,779
34,326
92,409
2,088
73,752
71,918
1,206,898
71,728		 1,130,271
36,053
1,278,433 1,168,379
919,473 855,779

The Charity considers its key management personnel comprise the trustees, the Chief Executive Officer and 3 heads of departments. The total employment benefits of the key management personnel were £ 381,727 (2022: £ 356,856). Trustees receive no remuneration.

Earnings over £60,000 (including pension)

2023 2022
No. No.
Number of employees receiving £90,001 - £100,000 1 -
Number of employees receiving £80,001 - £90,000 3 2
Number of employees receiving £70,001 - £80,000 - 2
Number of employees receiving £60,001 - £70,000 - -

The employees above participated in the pension scheme. Contributions paid on behalf of the employees totalled £ 26,720 (2022: £ 25,101).

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		 2023
No.
4.0
3.0
2.0
4.5
1.5
3.0
3.0		 2022
No.
3.5
1.5
2.0
4.0
1.5
2.5
3.0
21.0 18.0

38

Museums Association

Notes to the financial statements

For the year ended 31 March 2023

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

9.
Tangible fixed assets		 9.
Tangible fixed assets
£
COST
74,134
Furniture and
Equipment
At 1 Apr 2022		 £
182,298
IT &
Computers		 Total
£
256,432
Additions in year
 - 19,363 19,363
DEPRECIATION
Disposals in year
Charge for the Year
NET BOOK VALUE
10.
Intangible fixed assets
COST
Additions in year
Disposals in year
AMORTISATION
Disposals in year
Charge for the Year
NET BOOK VALUE
At 1 Apr 2022
At 31 March 2023
At 31 March 2023
At 31 March 2022
At 31 March 2023
At 31 March 2023
At 31 March 2023
At 1 Apr 2022
At 1 Apr 2022
At 31 March 2023
At 31 March 2022		 74,134 201,661 275,795
42,756
-
4,940		 173,547
-
15,312		 216,303
-
20,252
47,696 188,859 236,555
26,438 12,802 39,240
31,378 8,751 40,129
£
439,360
68,590
-
Website &
Database		 Total
£
439,360
68,590
-
507,950 507,950
411,638
-
43,275		 411,638
-
43,275
454,913 454,913
53,037 53,037
72,398 72,398

39

Museums Association

Notes to the financial statements

For the year ended 31 March 2023

11a. Investments

Rathbones Greenbank
At 01 April 2022
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 2023
At the balance sheet date, the market value of the portfolio comprised:
Fixed interest
UK equities
Global equities
Property
Other assets
At 31 March 2023		 2023
£
2,915,916
-
-
-
-
(274,878)		 2022
£
2,777,141
-
-
-
-
138,775
2,641,038 2,915,916
569,508
912,765
883,202
126,983
148,580
2,641,038

No individual holding represented more than 5% of the market value of the portfolio at the balance sheet date.

Analysis of investment portfolio
Rathbones Greenbank
At 31 March 2023		 2023
£
2,915,916		 2022
£
2,915,916
2,641,038 2,915,916

40

Museums Association

Notes to the financial statements

For the year ended 31 March 2023

11b.
12.
Debtors
Trade debtors
Investment in subsidiary
Shares in subsidiary at cost		 2023
£
2		 2022
£
2
2023
£
126,449		 2022
£
68,957
Grant Debtors 857,480 290,983
Other debtors
VAT recoverable
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		 12,091
9,503
74,088		 4,996
-
100,968
1,079,611 465,904
2023
£
110,568
44,477
37,320
-
9,511
453,725		 2022
£
57,465
55,477
32,743
18,422
7,607
424,834
655,602 596,548
All deferred income recognised in 2022 was released in 2023.

41

Museums Association

Notes to the financial statements

For the year ended 31 March 2023

14.
Movements in funds
Total endowment funds
Restricted funds:
Endowment funds
Beecroft Bequest		 At
31 March
2022
£
475,861
475,861		 Incoming
Resources
*
£
11,588
11,588		 Outgoing
Resources
£
(67,031)
(67,031)
Transfers
£
-
-		 At
31 March
2023
£
420,418
420,418
Benevolent Fund 350,919 12,724 (101,223) - 262,420
Esmee Fairbairn Collections Fund
UKRI Digital Learning		 124,997
23,724		 151,680
22,000		 (157,475)
(23,724)		 -
-		 119,202
22,000
UKRI Mindsets & Missions - 869,178
119,000		 (140,649) - 728,529
Wellcome Trust 119,000 (162,100) - 75,900
Museum Freelance
NLHF NI
Decolonisation programme
Communicating Decolonisation
Unrestricted funds:
Designated funds:
Pension Company
Fixed Asset reserve
Access
Campaigns and membership
Total designated funds
Total restricted funds
ACE CRF		 400
-
84,727
-
185		 -
5,000
-
9,000
-
1,188,582
-
-
-
-
-		 -
-
(57,926)
(6,300)
-		 -
-
-
-
-		 400
5,000
26,801
2,700
185
703,952 (649,397) - 1,243,137
600,000
60,274
1,873
73,419
735,566		 -
(19,009)
(14,625)
(34,374)
(68,008)		 -
-
10,000
(10,000)
-		 600,000
41,265
(2,752)
29,045
667,558
General funds 942,121 1,548,263 (1,771,026) - 719,358
Total unrestricted funds
Total funds
Pension reserve fund		 1,677,687
-		 1,548,263
-
2,748,433		 (1,839,034) -
-		 1,386,916
-
2,857,500 (2,555,462) - 3,050,471

42

Museums Association

Notes to the financial statements

For the year ended 31 March 2023

Movements in funds (continued)

14) 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 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.

The Decolonisation programme is supported by the Art Fund, the Esmee Fairbairn Foundation, the John Ellerman Foundation and the Paul Hamlyn Foundation to provide guidance and support to the sector.

The MA received £ 95,200 from the Wellcome Trust as part payment of a grant fund for UK science centres.

The MA received £ 869,178 towards programme and grant funds for the UKRI Mindsets & Missions programme.

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 has funds set aside for future capital expenditure.

The Access fund was established to support access and inclusion needs for MA events and activities.

Designated campaign and support funding was established to support MA campaigns and membership.

15. Analysis of Net Assets Between Funds

Intangible Fixed Assets
Tangible Fixed Assets
Investments
Net Current Assets
Pension scheme asset
Net Assets at 31 March 2023
Intangible Fixed Assets
Tangible Fixed Assets
Investments
Net Current Assets
Pension scheme asset
Net Assets at 31 March 2022		 £
-
-
446,037
(25,619)
-
420,418
£
-
-
492,460
(16,599)
-
475,861
Endowment
Funds
Endowment
Funds		 Restricted
Funds
£
-
-
338,237
904,900
-		 2023

Total Funds
£
£
53,037
53,037
39,240
39,240
1,708,185
2,492,459
(413,546)
465,735
-
-
1,386,916
3,050,471
2022

Total Funds
£
£
27,722
27,722
40,129
40,129
2,050,015
2,915,916
(440,179)
(126,267)
-
-
1,677,687
2,857,500
Unrestricted
Funds
Unrestricted
Funds		 2023

Total Funds
£
£
53,037
53,037
39,240
39,240
1,708,185
2,492,459
(413,546)
465,735
-
-
1,386,916
3,050,471
2022

Total Funds
£
£
27,722
27,722
40,129
40,129
2,050,015
2,915,916
(440,179)
(126,267)
-
-
1,677,687
2,857,500
Unrestricted
Funds
Unrestricted
Funds
1,243,137 1,386,916 3,050,471
Restricted
Funds
£
-
-
373,441
330,511
-
703,952 1,677,687 2,857,500

43

Museums Association

Notes to the financial statements

For the year ended 31 March 2023

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.

No Trustees held a position with entities which at the year end had debtor balances (Membership or Events Fees) with the Museums Association:

2023 £ -

In the year one Trustee (S Kassam) was paid £2,500 for a review of the Esmee Fairbairn Collections Fund.

17. Operating lease commitments

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;		 2023
£
93,000
372,000
325,500		 2022
£
93,000
372,000
418,500
1,147
-
-		 1,147
-
-

44

Museums Association

Notes to the Financial Statements

For the year ended 31 March 2023

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 2022-23.

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		 2023
£'000
-
-
-
-
2023
£'000
(1,002)
113
889
-		 2022
£'000
-
-
-
-
2022
£'000
(154)
(318)
472
-

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

Financial Assumptions:

Financial Assumptions:
2023 2022
% %
Discount rate at the end of the year 4.9% 2.9%
Retail Price Inflation 3.2% 3.8%
Consumer Price Inflation 2.6% 3.1%
Increases in deferment 2.6% 3.1%
Rates of increase to pensions in payment
Pensions earned before 6/4/97 0.0% 0.0%
Pensions earned after 5/4/97 3.2% 3.8%

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 2023:

Life expectancy Male Female
Member aged 65 at the effective date of the calculations 20.2 22.6
Member aged 65 at a date 20 years after the effective date of the 21.5 23.7
calculations

45

Museums Association

Notes to the Financial Statements

For the year ended 31 March 2023

Financial Assumptions (cont.)

Demographic and other assumptions
2023 2022
Mortality before retirement Nil Nil
Mortality after retirement base table 101% male and 104% female. 100% S3PA with ages rated
Future improvements CMI_2021 [1.25%] CMI_2020 [1.25%]
Cash commutation All members will commute All members will commute
Retirement age Normal retirement age Normal retirement age
Proportion of members with 85% - Males; 75% females 85% - Males; 75% females
Average age difference between Females are 3 years younger Females are 3 years
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		 2023
£'000
3,328
(3,328)
-		 2022
£'000
3,328
(3,328)
-

46

Museums Association

Notes to the Financial Statements

For the year ended 31 March 2023

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		 2023
£'000
3,328
-
97
(1,132)
130
(21)
2,402
2023
£'000
3,992		 2022
£'000
3,419
-
75
(202)
48
(12)
3,328
2022
£'000
3,607
Interest income 116 79
Actual return on plan assets, excluding interest income
Contributions by employer
Benefits paid
Assets at end of period		 (113)
-
(21)
3,974		 (346)
-
(12)
3,328

The actual return/(deficit) on plan assets was £ (0); (2022: (£0)).

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

2023 2022
£'000 % £'000 %
Equities 477 12% 2,330 70%
Bonds & Gilts 3,378 85% 300 9%
Property 79 2% 599 18%
Cash 40 1% 100 3%

47

Museums Association

Notes to the Financial Statements

For the year ended 31 March 2023

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 2023-24 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

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, £ 282,677 was carried forward, £ 1,073,000 was received and £ 1,252,420 was awarded. At the year end, the MA held cash of £ 323,895 which is payable to grantees under the programme. This bank balance and corresponding liability have also been removed from the financial statements.

48