CARTOON ART TRUST LIMITED (A company limited by guarantee) Operatlng under the name The Cartoon Museum REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Company Number: 02290200 Charity Number: 327978 THE CARTOON MUSEUM Our vi&on is of 8 future where people of all backgrounds and 8ges feel excited to pick up a pencil and dr8w a cartoon.
CARTOON ART TRUST LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 Contents Page No. Report of the Trustees Independent Examiner's Report 10 Statement of Flnanclal Activities incorporating Income and Expenditure Account Balance Sheet 13 Notes to the Flnanclal Statements 1419
CARTOON ART TRUST LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 Administrative Information Charity registration number". 327978 Company number.. 02290200 RegiSted office.. 63 Wells St, Filzrovia, London, W1 A 3AE Trustees: Ollver Preston (Chair) Nicola Jennings (Vice Chair) Chris Gilbert CGMA (Treasurer) (Appointed 14 April 2024) Yomi Ayeni Steve Bell Hannah Berry Karen Brayshaw (Appointed 14 April 2024) Julian Bower FCA Dan Franklin (Appointed 7 September 2023) Mike Russell FCMA (Resigned 7 December 2023) Martin Rowson (Resigned 7 September 2023) Shepard Spink Alexander Williams Museum Director: Joe Sullivan Company Secretary: Susan Gamett (Appointed 28 February 2024) Mark Tullett FCA. Orcom Civvals Limited, 50 Seymour Street. London, W1 H 7JG Independent Examiner: Bankers: The Royal Bank of Scotland plc. 127-128 High Holborn, London, WC1V 6PQ CAF Bank Limited, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4JQ Website: WW¥V.cartoonmuseum.org Our Charitable Purpose Is to promote, maintain, improve and advance eduGation, particularty by the encouragement of the art of drawing, with special reference to social and contemporary subjects, and by instituting and managing exhibitions and establishing, maintaining and operating a museum or museums. libraries. and places w17ere drawings, cartoon art. caricatures, graphic work and similar 8rt, and related or relevant literature of an eduGational nature can be exhibited, stored and made available to the public and generally to encourage the visu81 arts and for that purpose any other art. Page 1
CARTOON ART TRUST LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 Introduction The Trustees, who are also Directors of the Charity for the purposes of the Companies Act 2006. submit their annual report and the unaudited financial ststements for the year ended 31 December 2023. The financial statements have been subject to an Independent Examination and comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association of the charity, and Accounting and Reporting by Charities: Stslement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK arxl Republic of Ireland (FRS 102). Public Benefit The Cartoon Museum champions cartoon and comic art, highlighting its value to our shared culture and society, and providing a programme of exhibitions. events and workshops. The TTUStees have adopted the following Statement of Purpose: The Cartoon Art Trust is dedicated to preserving the best of British cartoons, caricatures, comics and anlmatK. Our museum, gallery, arGhives and innovative exhibitions make Èhe creativity of cartoon art, past and present. accesslble to all for the purposes of educatm, research and enjoyment. Through our activitles we aim to: Conserve and provide access to Britain's cartoon, caricature and comic art heritsge. Encourage partlclpation in and raise awareness of this popular and important artform. Support new work by cartoonists and comics artists. Provide opportunities for learning and participation to help achieve these aims. The Trustees Gonfirm that we have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commlsslon in determining the activities undertaken by the Charity. For more information about the public benellt delivered by the Charity, see the Achievements and Performance section below. Structure, Governance and Mana ement Constitution and Governlng Documont The Charlty is a company limited by guarantee and was established on 25 August 1988. It Is governed by its Memorandum and Articles of Association which were last amended on 20 October 1988. Recruitment and Appolntment of New Trustees ApplirAtions for trusteeship are invited from the general public. by word of mouth and through online advertising. Under company law, one third of all Trustees retire each year in rotation. New trustees are given an induction which indudes a briefing by the Chair and a personal tour of the Museum by staff. In addition, Trustees are encouraged to attend specialised training where appropriate. The Organisational Structure of the Charity The management of the Charity is by the Trustees. who also comprise the Key Management Personnel of the Charity. All major decisions regarding the organisation of the Charity are taken by the Trustees to whom the Director. Joe Sullivan, reports. The Trustees held four meetings during the year. The Charty also has a Finance and Audit Committee, chaired by the Treasurer, which reports to the Board and considers all financial issues. induding management accounts, statutory accounts and annual budgets. This Committee met three times during the year, immediately ahead of Board meetings, and reported its recommendations to the Board of Trustees. There are two further committees that meet on an ad hoc basis when required.. the Museum Acquisitions Committee approves accessions to the Museum's Collection, and the Events and Exhibition Commlttee which oversees the Museum's exhibitions and associated programmes. Page 2
CARTOON ART TRUST LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 Ke Ob"ectives for the Year We set ourselves a number of important goals for 2023: Increase charitable and comn7ercial aGtivity To help close the gap between incoming and outgoing resources, we set out to: Attract 28,000 total visitors Host 100 school group visits. Raise income as follows.. £28,000 workshop income £80,000 retail income £20,000 venue hire income £4,800 in event ticket income. Invest in our collection and deliver a full exhlbltlon programme Our curatorial aims for the year included.. Achieving the renewal of our Accredltatlon status with Arts Council England Delivering three 'ln-Focus' exhibitions Delivering two longer term temporary exhlbltlons Conlinue to work on special projects, including collections audit and library cataloguing project Build on our award-winning engagement work Having secured funding from the John Lyons Foundation, we committed to deliver the Young Cartoonist in Residence programme aimed at neurodiverse artlsts. We also planned 8 refugee project and a climate project with local youth groups. Address importanf site issues We want the Museum premises to be safe, welcoming and accessible. To this end we need to address longstanding issues around the lift and water ingress. In 2023 we set out to: Crowdfund for the lrft works Work with our landlord and neighbours regarding water leaking into our premises. Alongside this we have signed up to the Mayor's business climate challenge and aimed to reduce our carbon output by 10ty/o by the end of the year. Re*stablish our Strategic goals This year was the final year of our interim strategy, and it was cxjr intention to establish a new five-year business plan and strategy in 2023. Our key strategic goal remains to become a self-sustaining organisation through increased footfall. commercial revenue and successful fundraising. Achievements and Performance Visitors With continued recovery post the Covid 19 dosures, and the excellent fooffall received for our hugely popular Wallace & Gromit exhibition, the Museum attracted 28.792 visitors in 2023. This is 4.482 more Ihan in 2022, and means we met our target of attracting at least 28,000 visitors. Retsil tumover also increased to £84,242, with events income at £15.627, both exceedlng set tsrgets due to excellent collaboration between our Commercial Manager, Holly Burrows. and the team at Aardman Animation. the company behind Wallace & Gromit. Unfortunately, venue hire Income at £12,947 was £7k below target following later-than-planned recruitment of a new Events Officer, but we are now making up the lost ground.. we have increased the number of events, undertaken more promotlonal activities, created new photography of the venue, and signed up to multiple venue hire platforms. We expect to see the benefrt of this activity in 2024. Page 3
CARTOON ART TRUST LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 Exhlbltlons There was a full programme of exhibitions in 2023, including a joyful celebration of the iconic anlmated duo Wallace & Gromit launched for the 30th birthday of the classic film The Wrong Tmusers. Full programme: Drawing Lrf8.' The Cartoon Museum Pennanent Collection (permanent display from July 2019) Boris Johnson.. This Exhibition is a Work Event {July 2022 - March 2023) Heath Robinson.. Making the Best of Things (October 2022 - February 2023) Gerry Anderson's TV21 (March - May 2023) Norman Thelwell Saves th8 Planetl (April - September 2023) Ella Baron.. Sh8 is my Daughter {June - September 2023) Wallac8 & Gromit,. 30 Years of the Wrong Trousers (Sepiember 2023 - March 2024) Oluwasegun Babatunde.. Birth of a Universe (October 2023 - February 2024) Eduthition including Group and School Visits During 2023, the Museum delivered 125 workshops to 2,749 adults and childn, plus 10 talks and tours for adult groups. Workshops were held mainly in the Museum's Clore Learning Studlo but also Ihrough outreach to schools. We welcomed 53 school dasses to the Museum, elther for a workshop or self-guided vislts, and we also hosted 270 attendees in 9 sold-out famlly workshops run by Aardman Animations. We also offered a free walk-up verslon of thls workshop at a local communlty event to provide access for famllles who were not able to afford tlckets. Thls attracted over 150 people. The learnlng programmlng brought In £25,253 whlch Is sllghtly under our target of £28k but note that income from the sellout Aardman animation modelling workshops is classed as 'Events Income, rather than Learning. Volunteers The Museum worked with 46 volunteers during 2023. We are very grateful for their help in assisting visitors, staffing the shop, building exhibitions and supporting our events programme. In the 2023 London Heritage Volunteering Awards, our volunteer Marie O'sullivan was shortlisted in the 'Developing a Role. category for her work with our Friends system. We also saw volunteer Mark Cobain step into the role of Volunteer Coordinator, handling the recruitment and onboarding of new volunteers. This has been very successful and made a huge Contribution to the way we engage with new volunteers. We saw some turnover in staff this year which has affected our ability to fully deliver on our ambitions. Colleclions Manager Kate Owens and Curator. Emma Stirling-middleton both left the Museum in 2023 and, due to financial con8ideration8, we have not immediately re-recruited for these positions. After a successful bid to the John Lyons Charity to provide three years of fundlng, Amba Malekin-Goneni, rejoined the team as Community Engagement Officer. We also welcomed a new Events Officer, Ray ChadwicK who has made noticeable improvements to our venue hire activities. Access The Museum has a range of Inltlatlves to encourage wlder access to our building and exhibitions. including an autism programme which was awarded Best Community Engagement Programme at the 2023 Museums and Heritsge Awards. Having successfully gained continuation funding for the next three years, we are planning to expand our offers for visitors with autism. There have been longstanding issues with water Ing$S from our upstairs neighbour, and also with the lift not working, which is a major obstacle to full accessibility for the Museum's basement premises. We have ongoing crowdfunding for the lift and were very grateful to receive £2k from the Adlard Foundation, £5k from The Linbury Trust and £25k from the John Lyons Charty during 2023 toward8 lift repairs which we plan to carry out in 2024. P&Je 4
CARTOON ART TRUST LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 Llbrary The Heneage Library was securely shelved in 2022 and during 2023 a volunteer team began work to catalogue the collection. This project was halted when the Collections Manager left and has not yet restarted. The volunteers undertook training in the use of the online cataloguing system, and as a result of their work we were able to recover records for 2.400 library items that were catalogued over fNe years ago and thought lost during the site move in 2019. Environment During 2023 we took part in the Mayorfs Climate Business Challenge, working with local business partners to target a 100/0 reduction in energy usage. We achieved this. primarily through changes to our BMS and through staff training around climate-conscious behaviour. We also used our summer exhibition, Nonnan Thelwell Saves the Planetl to undertake more advocacy work. encouraging visitors to think about their own environmental impact, and exploring how to make the exhibition and associated retail and events as sustainable as possible. We presented our findings and experiences to sector colleagues al the Museums & Heritage Show in May 2024 and continue to work with local businesses on sustainability. Collection and Curatorial We submitted our Accreditation renew81 in July 2023. and were sucSsful In re-attaining accredited status. With no Curator in post currently. we have had to rethink our ambitions regarding exhibitions and cataloguing. As a result we began to look at a new three-year exhibition strategy which will focus on longer term displays, meanlng we will not undertake further small-scale 'ln Focus. exhibitions which require significant time and resource to create and stsge. Thirty artworks were donated to the Museum by artists and Collectors in 2023. These included many of the works that featured in the Boris Johnson exhibition and ten digital athorks. Our thanks to all tse donors listed below.. Sarah Akinterinwa Louisa Buck Steven Appleby Fred Campbell Kenneth Baker AL Cartoons Jeremy Banks Eamonn Clarke Steve Bell Peter Ellis Neil Brennan Nick Newman Dave Brown Oliver Preston Zoom Rockman Hannah Roblnson Martin Rowson Joanne Sarglnson David Shenton Annie Tempest Jane Wilson Collaborations and Partnerships The charity is naturally collaborative and works with a range of creative partners. funders and other organisations lo deliver our charitable mission. During 2023 many of our educational events and activities were delivered in partnership with others. Popular model-making workshops were developed with Aardman. we delivered a set of workshops for young carers through Carers UK, and hosted workshops led by Laydeez do Comics and our Young Cartoonist-in-Residence. Jadore Nicholas. We once again worked in partnership wtth the British Cartoonists, Association. particularly to launch and judge the 2023 Young Cartoonist Awards competition. We also worked closely with and gave in-kind support to the First Graphic Novel Award, a biennial collaboration with publisher SelfMadeHero and independent graphic novel editor Corinne Pearlman. We maintained our strategic relationship with Westminster University's MA Museum course, with our Museum Director giving a guest lecture and hosting this year's cohort for a visit. Several students volunteered at the Museum to gain hands-on collections-based experience. We also worked with the Green Grads programme on an event around sustainable design, ran mental health workshops for MIND in Harrow, and were able to deliver hvo projects via funding from the Young Westminster Foundation and Westmlnster City Council. We also worked with local refugee organisation Unfold to produce a comic called 'Living In Brltain.. about the experiences of young refugees coming to the UK and helped classes from two local schools produce a comic exploring issues around the climate crisis. P&3e 5
CARTOON ART TRUST LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 The Museum received a grant worth £120k over three years from the John Lyons Charity to support autism- related programming including the Young-Cartoonist-in-Residence initiative. We also received £1 Ok from Westminster City Council 88 part of a contract to set up and administer a Local Cultural Education Partnership. based on work pioneered by the Museum's Director. We also received important fundlng from the P F Charitable Trust, the Swire Charitable TrusL the Museum's Friends scheme and other donors. We are very grateful to everyone who has supported us this year. The Museum held book launch events for the Professional Cartoonists Association {G8t Brltlsh Colouring Book for Refvgees). Steve Walsh & Keith Page {H8ncock.' The Lad Himseff),. Mark Stafford (Salmonella Smorgasbord),. Brian & Mary Talbot (Armed with Madness). Alice Loxton {Upmar) and Mlke Molcher (l Am the Law). We also held seversl ticketed events includirrfJ our annual Cartoon Conference In February," a late event for our exhibitions This Exhibition is a Work Event and Norman Thejwell Saves the Planetl; a talk on the work of Gerry Anderson. a talk on a graphic novel called Siberl8n Halku,, a daytime rave: and several lrfe drawing events. We 81so hosted the Tripwire Avrfards in September 2023 and a London Museums Group event about accessibility. Plans for Future Periods We have set the followlng oblectlves for 2024.. Continue to increase charitable and commeraal activity Attract 30,000 total visitors Host 120 school group visits. Raise income as follows:: £28,000 workshop income £100,000 retail income £20,000 venue hire income £13,000 in event ticket income. In 2024 we will also expand our learning programme viith a new Session aimed at KS314. an age group we do not currently cater for. Invest in our Gollection and deliver an exciting exhibition programme Our curatorial aims for the year include: A refresh of the gallery with new graphics and some new art, using feedback gathered from visitors over the past three years. Delivering two new temporary exhibitions. Continuing to work on special projects, including collections audit and library cataloguing project. Establish a new exhibition programme for the next three years. Deliver funded projects and seek 8dditional fvndraising Develop and deliver on the autism work funded by John Lyons Charlty. Seek grant funding to replace our vacant Curator role. Continue to crowdfund for support to repair the lfft. Address Important slte Issues Complete the lfft repalrs. Work wlth our landlord and neighbours to prevent vRter leaking into our premises. Re-establish our Strategic goals During 2023 a new Strategy and Buslness Plan to 2026 was developed. with elements of the Business Plan put into action in July 2023. The final draft of the Strategy is still under review to fully sddress the Museum's fonNard ambitions and in particular our aims for financial sustsinability. Page 6
CARTOON ART TRUST LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 Financial Review Net Results for the Year 2023 The overall result for the year was much improved compared to 2022, with a deflclt on the net movement in fvnds of £10.757 compared to £71,605 in 2022. This reflected improved visitor numbers and successful fundraising, and we are carrying forward £53k of restricted funding to be applied in 2024 and beyond. There were no transfers between Restricted and Unrestricted Funds in the year (2022: £nil). and we ended the year with £0.4m of Restricted Funds and £1.gm of Unrestricted Funds carried forward. Cash balances at the year-end amounted to £114.722 (2022: £175.516). The Statement of Financial Activities for 2023 is set out on page 10 of the Financial Statements and is reviewed below. Income Total income during 2023 was £338,212 (2022: £286,157}, the major elements being: a) Income from Charitable activities of £164.315 (2022: £138.574), of which admissions income vrfas £111,147 (2022: £88,855) b) Restricted Grants received amounting to £77,000 (2022: £30,226), of which £67,000 came from the John Lyons Charity c) Unrestricted donations of £95,781, (2022: £116,717) which includes Grft Aid d) Interest received of £1,116 (2022: £640), refiecting Increased market rates The value of donated cartoons was £nil (2022: £15,100). as informatlon regarding the valuation of the donated artworks was not available. Income from activities Includes a donation of £nil (2022: £nil) from the Charity's trading subsidiary company, the Cartoon Museum Limited. The accounts of Cartoon Museum Limited show that sales of rnerchandise totalled £74,619, net of VAT in 2023, which is a significant Increase on £48,561 in the prior year. However, despite thls Improvement, after deducting cost of sales, direct expenses, and a recharge of overheads (property, stafflng and administration) of £24,633 (2022: £25,807), the subsidiary company's results show a net loss before tax of £19,766 (2022." loss of £25, 740). Expenditura Totsl expenditure amounted to £348.969 (2022: £357.762), including £39,656 (2022: £39,797) spent on the costs of generating donations and funds, and £348,969 (2022: £357,762) on charitable activities. For more information see Note 3 to the Flnancial Statements below. Of the total expenditure. the amount relating to the Restricted Funds detailed above were £24,075 (2022: £30,226) which related to the John Lyons Charity funding for our autism programme The costs of staff, administration and other central support costs are apportioned between the core cost of generating funds and charitable activities on the bases laid out in Note 3 below. The costs of generating funds from the sales of souvenirs and merchandise are borne by the subsidiary trading company. Investment Powers and Reserve Policy Under the Memorandum and Articles of Association, the Trustees have the power to invest and manage the moneys of the Company not immediately required in such manner as the Company may from time to time determine. In practice this is achieved through short-term bank deposits, Interest rates achieved for 2023 were higher compared to 2022 in line with general market conditions. The Trustees, having regard to the liquidity requirements of operating the Museum and to the reserves policy, consider that two months of operating expenditure is a minimum cash requirement for the Charity. Based on the total expendilure of the Charity in 2023, the target for cash reserves is therefore £58.162. Unrestricted Cash balances at the year end amounted to £61.797 (2022: £175,516) meaning the Charity has met its target. Page 7
A¢¢ounting and Roportlng Rosponslbilities The Financial statements refiect only th8 transactions as they affect the Company. Consolidated group accounts have not been prepared as there is no legal requirement for them. Company law qUireS the Trustees to prepare financial statements for each financial year which give a true and fair view of the situation of the Charty and of its surplus or deficit for that period. The Trustees confirm that appropriate accounting policies have been used and applied consistently, and reasonable and prudent judgements and estimates have been made in the preparation of the financial statements for the year ended 31 December 2023. The Trustees also confirm thai applicable accounting standards have been followed. The Trustees are responsible for keeping adequate accounting records. for safeguarding the assets of the Company and for tsking reasonable steps to prevent and detect fraud and other irregularities. Going Concern Allhough the Museum made an operating deficit in 2023. as at the end of the year the Charity had total cash reserves of £114k, of which £62k was for the general purposes of the charity and the remaining £53k represents carried forward grant funding from the John Lyon's Charity and others which will be used in future years to support our autism work and repair the broken lift. The charity has a strong track record of successful fundraising and is currently awaiting confirmation regarding a number of significant grant applications for 2024. The Museum Is an Important part of the cultural map of London, having recorded over half a million visitors slnce opening in 2006. But with the move from Bloomsbury to Fitzrovia only a few months before the onset of the global pandemic. we have had to work hard over the last few years to re-establish ourselves in our new location. We are now experiencing annual growth in visitor numbers as we recover from the pandemic and, following action to manage Gosts and generate additional revenue, our budget and cash Ilow projections shows positive growth and improved financial resilience. As such. and with a comprehensive strategic plan nearing completion, the Trustees are of the view that the Charity will generate sufficient resources to continue for the foreseeable future. We therefore consider it appropriate to adopt the going concern principle for the preparation of the finanGial statements. Ma or Risks The Trustees acknowledge their responsibility for assessing and managing the risks faclng the Charity. The major rtsks to which the Charity is exposed are reviewed annually, and the Charlty malntains a risk register which captures operational and other risks and identifies relevant mitigaiions. In 2023, we continued to face financial risks due to the impact of the cost-of-llvlng crlsis on our visitors, the slow recovery of London tourism, and a change In the demographlcs towards a younger audtence which has necessitated a shift in the Museum's offering. The Impact was particularly felt in the shop where t amount spent per visitor was significantly less than expected both on tickets and retail. There were also notable un-budgeted increases in outgoings due to rising prices, as well as an unexpected energy bill from our landlords for £17k. We were able to mitigate these issues through external grant funding, but of £125k applied for we received only £15k. demonstrating the effort and reward associated with fundraising. Further fundraising subsequently raised £50k in December 2023. and we took the difficult decision nol to re-recruit vacantstaff roles, so a5 to reduce the pressure on the budget. Growing visitor numbers, generating income. and securing funding remain our most important priorities to safeguard the long-term future of the Charity. We also continue to experience issues with the building which pose a risk to the smooth operation of the Museum. Severe and regular leaks from the restaurant on the floor above have affected our shop sales and damaged stock. We have received pro bono legal advi and are continuing our efforts to ensure works occur at the restaurant to halt these leaks. The lift has been out of use for two years, and we anticipate completion of fundraising to enable the installation of a new lift during 2024. Page 8
CARTOON ART TRUST LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 Trustees, R•sponsSbllltl•8 in relation to th• Financlal Stalements The Trustees (who are also the Directors of Cartoon Art Trust Llmited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Company law requires the Trustees to prepare financial statements for each financial year which give a true and falr view of the state of affairs of the charitable company and of the incoming resources and applicatlon of resources, induding the income and expendlture, of the charitable company for that period. In preparlng those financial statements, the Trustees are required to select suitable accounting policies and then apply them consistently observe the methods and principles in the Charity SORP make judgements and estimates that are reasonable and prudent prepare the financial statements on the going concern basis unless it is inapwopriate to presume that the charitable Company will continue in business. The Trustees are responsible for keeping proper accounting records whith disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial ststements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable MpanY and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the Maintenan and integrity of the corporate and financial information included on the charltable company's website. Legislation in the United Klngdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. This report is prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. Oliver Preston Chair of Trustees 24 Septemb 2024 Page 9
CARTOON ART TRUST LIMITED INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES I report to Cartoon Art Trust Limited Trustees on my examination of the accounts for the year ended 31 December 2023 set out on pages 11 to 19. Respective responsibilities of trustees and examlner Cartoon Art Trust Limited Trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the accounts in accordance with the requirements of Companies Act 2006 ('the 2006 Act.). Hw4ing satisfied myself that Cart(x)n Art Trust Limited is not subject lo audit under Part 16 of Companies Act 2006 and is eligible for irKlependent examination. it is my responsibilty to: examine the accounts under Section 145 of the Charities Act 2011 (the '2011 Acf).. to follow the procedures laid down in the General Directions given by the Charity Commission {under Section 145(5}(b) of the 2011 Act); and to state whether particular matters have come to my attention. Basis of the ind•p•nd•nt examinerfs report Since Cartoon Art Trust Limited gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 (3)(a) of the 2011 Ad. I confirm that l am qualifEd to undertake the examination because l am a member of the Institute of Chartered Accountants In England and Wales, which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: {1) accounting records we not kept in respect of the Company as required by s.386 of the 2006 Act. or (2) the accounts do not accord with those accounting records. or (3) the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair. view which Ès not a matter considered as part of an independent examination: or (4) the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practi for Accounting and Reporting by Charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicale in the UK and Republic of Ireland {FRS 102)]. I have no cOnrnS and have come across no other matters In connectlon wlth the examination to which attention should be drawn in thls report In order to enable a proper urKlerstanding of the accounts to be reached. Mark Tullett FCA Orcorn Civvals Limited 50 Seymour Street London W1H7JG 24 September 2024 Page 10
CARTOON ART TRUST LIMITED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating Income and Expenditure Account) FOR THE YEAR ENDED 31 DECEMBER 2023 2023 Restrlcted Funds Unrestrlcted Fund8 Total Funds Income from." Donations Charitable £cttvities Inveslments Total Income 95.781 164,315 1,116 261,212 77.000 172.781 164,315 1,116 338,212 77,000 Expenditure on: Raising funds Charitable activities Total Expendlturo 39,656 285,238 324,894 39.656 309,313 348,969 24,075 24.075 Net Income l (Expenditure) (63,682) 52.925 (10.757) Transfers between Funds Net Movement In Funds (63,682) 52,925 (10,757) Total Funds brought forward 1,948,481 306,772 2,255.253 Total Funds Caled forward 1,884.799 359,697 2,244,496 Movements in Funds are disdosed in Note 12 to the financial statements. There were no recognised gains and losses other than the above results for the two financial years. All Income and expenditure derives from Gontinuing activltles. The company's charitable activities are the operation of a museum and associated learning and engagement programmes for the public benefit. Page11
CARTOON ART TRUST LIMITED STATEMENT OF FINANCIAL ACTIVITIES (Incorporatlng Income and Expenditure Account . continued) FOR THE YEAR ENDED 31 DECEMBER 2022 2022 Restricted Funds Note5 Unrestricted Funds Total Funds Income fn>m.' Donations Charitable activities Investments Totsl Income 116.717 q38.574 640 255.931 30,226 146,943 138,574 30,226 286. 157 Expendlture on.. Raising funds Chantable aGtivities Total Expendlture 39,797 287, 739 327.536 39.797 317.965 357. 762 30,226 30.226 Net Income / (Expenditure) for the year (71.605) (71.605) Transfers between Funds Net Movement In Funds 1,605 71,605 Total Funds brought forward 2.020.086 306, 772 2,326.858 Total Funds carried forward 1,948,481 306, 772 2.255.253 Movements in Funds are disclosed in Note 12 to the finanGi81 statements. There were no recognised gains and losses other than the above SuS for the Iwo financial years. All incom8 and expendituTr derives from continuing actlvltles. The company's charitable activities are the operation of a museum and assoGiated leaming and engagement programmes for the public benefit. Page 12
CARTOON ART TRUST LIMITED {REGISTERED NUMBER 02290200) BALANCE SHEET AS AT 31 DECEMBER 2023 Notes 2023 2022 Flx•d Assets Heritage assets Leasehold property Investments 1.188,217 759,415 1,188,217 797,386 1,947,633 1,985,604 Curr•nt Assets Debtors and prepayments Cash 227.041 114.722 341,763 180,769 177,516 356,285 Current Liabilities Creditors due within one year 44,900 86,636 Net Current assets 296,863 269,649 Creditors due after more than one year Total Net Assets 2.244.496 2,255.253 Capital and Reserves Capital" 11 Funds Unrestricted Funds Restricted FurKJs 12 12 1,884,799 359,697 1,948,481 306,772 Total Charity Funds 2,244,496 2,255,253 "Note: the Compary is limited by Guarantee and d08s rt have a Share Capitsl The charitable company is entitled to exemption from audit urKler Section 477 of the Companles Act 2006 for the year ended 31 December 2023. The members have not deposited notlce, pursuant to s.476 of the Companies Act 2006 requiring an audit of these financial statements. The Trustees aCknOedge their responsibilfties for: ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006. and preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 arxl 395 and which othemise comply with the requirements of the Companies Act 2006 relating to financial statements. so far as applicable to the charitable company. These financial statements have been prepared in accordance with the provisions applicable to small charitable cornpanies subject to the small companies. regime. The financial statements Vre approved by the Board of Trustees and were signed on its behalf Chris Gilbert - Treasurer 24 September 2024 Page 13
CARTOON ART TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) ACCOUNTING POLICIES The following accounting policies have been adopted, together with judgements and key sources of estimation and uncertainty made in the preparation of the Financial Statements. 1.1 Basis of Pre ration of Financial Statements The financial statements have been prepared in accordan with Accounting and Reporting by Charities: Statement of Recommerxled Practi applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland 102, (Charities SORP (FRS 102)). arxl the Companies Act 2006. The Cartoon Art Trust (the Charity) is a private company limited by guarantee without share capital and incorporated in England. The company's registered number is 02290200. The principal office of the Charity is the Museum at 63 Wells St. Fitzrovia. London W1A 3AE which is also the registered office of the Company. The charity's registration number is 327978 The charlty meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction values unless othepNise stated in the relevant accounting policy note(s). The charity is a parent company and has taken advantage of s.399 of the Companies Act 2006 not to prepare group accounts. A Gash Ilow statement has not been prepared as the Charity has taken advantage of the small charity exemptions that are available under FRS 102. The financial statements 8re presented in Sterling {£). 1.2 Pre ration of the accounts on a oin concern basis The charity has cash reserves. secured grant funding and a strong track record of successful fundraising. There is annual growth in visitor numbers and income and the Trustees have taken action to manage costs and generate additional revenue. The comprehensive strategic plan which is nearing completion includes a forward exhibition schedule as well as budgets and cash flow projections which shows positive growth in corning years. As such, the Trustees are of the view that the Charity will generate sufficient resources to continue for the foreseeable future. and we therefore consider it appropriate to adopt the going concern principle for the preparation of the financial statements. 1.3 Income Incoming resources are included in the Statement of Financial Activities (SOFA) when the Charity is legally entitled to the income after any performance conditions have been met. the amount can be measured reliably and it is probable that the income will be received. Donations. gifts, grants and interest are recognised when received. Events and merchandising sales are recognised at the date of the event or sale, Legacies are recognised when the Charty has entitlement to the legacy (confirmed through the granting of probate), its receipt is probable and the value of the legacy Can be measured with reasonable accuracy. Donated facilities and seNlces are recognised in income when their economic benefit is probable, the value can be measured reliably and is material, and when the Charity has control over the Item. A corresponding amount is recognised in expenditure. The value of the services provided by volunteers has not been included In the accounts. in line with the Charities SORP (FRS 102). Page 14
CARTOON ART TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) ACCOUNTING POLICIES (continued) 1.4 Ex endltu Expenditure is accounted for as incurred, except that expenditure in respect of events is itten off against coespOndIng income at the date of the everrt. Support Costs include back-office costs, finance, personnel. payroll arKI governan costs which support the Charity's programme and activities. These costs are allocated between cost of raising fijnds and expenditure on charitable activities. The allocation is shown in note 3.3. 1.5 Tan ible frAed assets Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes expenditure directly attributable to making the asset capable of operating as intended. Depreciation 1.6 Amortisation The leasehold propety is amortised on a straight-line basis over the terms of the lease commencing from the time it was flrst occupied by the Charity. No lrnpairment of leasehold propety Is undertaken in the year as it is deemed that the cost of improvements will be written of over the terms of lease. 1.7 Herita e Assets Heritage assets comprise the Charity's collection of cartoons. illustrations, ly)oks, comics and magazines which has accumulated over Its lrfetime. The majority of the collection has been donated by collectors or artists. Where practicable. the Charity seeks to value each donated item at the date of receipt based on the expert oplnion of the Charity's Staff and trustees, andlor by reference to commercial sales of similar artwork. Where no information exists to aid a valuation. or such information cannot be obtained at a cost Commensurate with the benefit to the users of the accounts and to the Charty, then no value Is ascribed to donatiorL8. The collection now consists of nearty 6,000 Items valued collectively at over £1.1m, and the Trustees consider it too difficult, time consuming and costly to regularly revalue all Heritage assets. There has therefore been no change to the carrying value of the collection in 2023. Heritage Assets are held in perpetuity for public beneflt on the grounds of their Gultural, artistic andlor hlstoric significance and relevance to the charitable objects of the Charity. Accordingly. the Trustees consider that it is inappropriate to make any provision for depreciation of the collection. 1.8 Taxation The Trustees consider that no provision for corporation tax or deferred taxation is required due to the charitable status of the Company. Income is shown exclusive of Value Added Tax (VAT). Expenses are shown net of VAT. The Company is entitled to recover a variable proportion of the latter in accordance with the formula agreed with HM Revenue & Customs. 1 .9 Leases The Company has entered into operating property leases. The rent is charged to the Income and Expenditure Account on a straight-line basis. 1.10 Pensions The Company operates a defined contribution pension scheme. Contributions payable to the pension scheme are charged to the income and expenditure account in the period to which they relate. Page 15
CARTOON ART TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 {CONTINUED) INCOME 2023 Unrestricted Reslricted 2022 rotsl Total Donations Donations Gfft Aid Donated arfvk at valuation Total 93,674 2,107 77,000 170,674 2.107 130,216 1,627 15, 100 146,943 95,781 77,000 172.781 Charltable Activitie8 Friends Membership Museum admissions Education and workshops Museum hire and events Other income Total 8,608 115,147 24.389 14,163 2,008 164,315 8,608 115,147 24,389 14.163 2.008 164.315 8,559 88,855 24,675 14.614 1.871 138.574 Interest 1,116 1,116 Total Income 261,211 77,000 338,212 286, 157 3. RESOURCES EXPENDED 2023 Unrestrlcted Restrfcted 2022 Total Total 3.1 Donations and Fundraising Direct costs Support costs Total 2,000 37,656 39,656 2,000 36,656 39,656 39,797 39.727 3.2 Charltable ActlvStles Exhibition costs Education and workshops Other direct costs Govemance Support cost8 Total 12,159 4,218 14.985 8.856 245.020 285.238 12,159 4,218 39,060 8,856 245,020 309,313 11,658 277 47.127 8158 250,745 317,965 24,075 24,075 Total Resources expended 324,894 24,075 348,969 357,762 3.3 Allocation of Support Costs Basls of Apportionment Charitabl• Activities Charged to Subsldlary Donatlons Total Employment costs Property costs" Gener81 office Organisation Depreciation Staff utilisation Space occupied Estimated activity Estimated activity Space occupied 109,581 69.311 15,738 20,393 29,997 245,020 "Propety costs include amortisation of leasehold property 20,293 4,126 3,322 6,118 3,797 37,656 8.117 6,601 2,798 4,079 3,038 24.633 137,991 80.038 21.858 30,588 36,832 309,309 PJJ8 16
CARTOON ART TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) NET INCOMING RESOURCES Net Incoming Resources are stated after charging fees relating to the independent examination of £4.020 (2022: £3.900). EMPLOYEE INFORMATION 2023 2022 Staff costs were as follows Wages and salaries Pensions Social security costs 167,993 3.343 10.405 181,741 78,511 3,661 11,978 194, 150 The average number of employees during the year was 7 (2022: 7) TRUSTEES REMUNERATION AND EXPENSES The Trustees are also the directors for the purposes of company law and comprise the Key Management Personnel of the Company. No remuneration was pald to the Trustees during the year (2022: £NII). Travel and subsistence expenses totalling £818 (2022.. £751) were paid to one trustee during the year. FIXED ASSETS Horitago A8sets at Cost or Valuatlon Leasehold Promlses Total Cosl or Valuatlon At 31 DeGember 2022 Purchased at cost Disposalslwritten off Donations at valuation At 31 December 2023 1, 188,217 949.269 2,137,486 1,188,217 949,269 2,137,486 At 31 December 2022 Charge for the year At 31 December 2023 151.883 37.971 189,854 151,883 37 971 189,854 Net Book Valua At 31 December 2022 At 31 December 2023 1,188.217 1,188.217 797,386 759.415 1,985,603 1,947.632 Heritage Assets comprise the Collection of cartoons, illustrations, prints, books, magazines and related materlal. The Trustees have not undertaken a review of the valuatlon of the collection of cartoons, books and comics as at 31 December 2023, however we conslder that the current values are the same as the carrying values that are stated in these accounts. Investments The charity has a wholly-owned subsidiary company, The Cartoon Museum Limited which was incorporated as a limited liability company (Registered Number $703160) on 9 February 2006 in England. The charity's investment in the subsidiary comprises one share of £1 (2022.. £1) plus a balance on current account of £214,227 (2022: £168,797}. The subsidiary undertakes commercial activity including the sales of souvenirs and other merchandise. Information regarding the financial activities of the subsidiary is set out in Note 13. Page 17
CARTOON ART TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) DEBTORS 2023 2022 Amount owed by subsidiary undertaking Other debtors Gift aid recoverable Prepayments 214,227 168.797 2,920 361 8.691 180, 769 1,264 8,696 227,041 CREDITORS 2023 2022 Amounts falling due within one year". Subscriptions recelved In advance Trade creditors Other creditors Accruals Loan Payments Due Totsl due within 1 year 10,855 1,480 22,743 9,822 12,128 5,045 22,535 9,428 37.500 86,636 44,900 10. OPERATING LEASE COMMrrMENTS 2023 2022 The amounts payable in respect of the operating leases, excluding VAT are: In one year Betsveen two and five years 13,126 15,001 13,126 11. CAprrAL The company Is Ilmlted by Guarantee and does not have a Share Capital. Every member of the Company undertakes to contribute to the assets of the Company in the event of the same being wound up during the Memberfs period of Membership or within one year aftenNards for the payment of the debts and liabilities of the Company contracted before the Member ceases to be a member and of the Costs, charges and expenses of winding up the same and for such amounts as may be required not exedIng in the case of any Member the sum of £1. There We 26 Members at the balance sheet date. (2022: 26). 12. FUNDS 12.1 Analysis of Net Assets Betwoen Funds General Funds Designated R•strlcted Funds Funds Total Funds Fixed assets Current assets Current liabilltles Net Assets at 31 December 2023 759,416 288,838 86,636 961.618 881,445 306,772 52,925 1,947,633 341,763 44.gjo 2,244,496 881,445 359,697 Pag8 18
CARTOON ART TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) 12.2 Movement In Funds At 31 Dec 2022 Incoming Resources Outgolng Resources Al 31 Dec 2023 Transfers Unrn8triGted Funds Designated Funds Collection fund Gener81 Funds Total Unrestricted Funds 881,145 1,067,036 1.948,481 881,445 1,003,354 1,884.799 261,212 261,212 324,894 324,894 Restricted Funds Collection fund John Lyons - L John Lyons- Grants Westminster LCEP- Grants Total Restricted Funds 306,772 306.772 24,210 20,215 8,500 359.697 27,000 40,000 10,000 77,000 (2.790) (19,785) 1,500 24,075 306, 772 Total Funds 2 255,253 338.212 348,969 2.244,496 12.3 Funds i Unrestrlcted Funds The designaled Collection Fund represents the value of the Trust's Collection, acquired by gift or purchase, otherthan that provided by the Cuthbertson Fund (see paragraph li below), and is considered by the Trustees not to be available for any of the Charity's other purposes. 11 R¢strictod Funds The restricted Collectlon Fund represents donations by the late Allan Cuthbertson. These donatlons consisted of cartoons, Illustrations, books and cash. In addltlon, a cash gift was used for catalogulng, restoring and exhibiting the collection as well as for acquisltlons by the Trust. 13. RELATED PARTY TRANSACTIONS Many of the Charity's Trustees a themselves well known cartoonlsts and artists who may from tlme to time, donate items to the Museum Collection or loan items for display in the galleries and exhibitions. Steve Bell, Oliver Preston and Martin Rowson donated artworks to the Charity this year. No entries have been made In the financial records for such donations or108ns in 2023 (see note 1.7 above). Where the Museum Shop sells commerclal vrkS by Trustees (such as books of cartoons), this is done vla the same commercial arrangements as for other suppliers and managed by the Charity's subsidiary trading company, Cartoon Museum Limited. Cartoon Museum Limited is considered a related paty. Its tumover for the year ended 31 December 2023 was £74,619 (2022: £48,561) including other income. cost of sales was £44,020 (2022: £24,202) and expenses of £50,421 (2022.. £50,099), (including a contributlon of £24,633 (2022.. £25,807) lo the Charity's office and organisation costs). These resulted in a loss for the year before taxation and interest of £19,766 (2022.. £25,740) from which a donation of £Nil (2022.. Nil) was made to the Charty. The balance due from the subsidiary, the Cartoon Museum Llmited, as at 31 December 2023 amounted to £214,227 {2022.. £168, 797). The Trustees consider this amount repayable when the subsidiary is in a position to pay without prejudicing its working capltal requirements. There were no other related party transactions during the year which require disclosure. Page 19