Charlty Registration No. 328725 Company Reglstrallon No. 02499752 (England and Wales) THE MUSEUM OF EAST ASIAN ART ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
THE MUSEUM OF EAST ASIAN ART LEGALAND ADMINISTRATIVE INFORMATION Dlrector8 C Gore A Shepherd A Griffiths S Balmer J Higgins Dr T Munford R Scott A Pemg S•cretary A Shepherd Charity number 328725 Company number 02499752 Rey15tored offlco 12 Bennett Street Bath BA12QJ Wobslte https:Ilmeaa.org.uk Audltor Ferguson Maidment & Co. 8 Floor 167 Fleet street London EC4A 2EA Bankorn Lloyds Bank 47 Milsom Street Bath BA1 1DN Investment Managern Brewin Dolphin Ltd St James House St James Square Cheltenham GL50 3PR
THE MUSEUM OF EAST ASIAN ART CONTENTS Pago Directors. report Statement of Directors, responslbllitles Independent auditor's report 10-12 Statement of financial activities 13 Balance sh8et 14 Statement of cash flows 15 Notes to the financial statements 16-27
THE MUSEUM OF EAST ASIAN ART DIRECTORS. REPORT FOR THE YEAR ENDED 31 MARCH 2024 The directors are pleased to present their rèport and the audited financial statements for the year ended 31 March 2024. The financial ststements have been prepared in accordance with the accounting policies set out in note 1 to the financial statem8nts and comply with the Museum's Memorandum and Articles of Association, the Companies Act 2006 and lh8 provisions of th6 'Charities SORP IFRS 102) - 'Accounting and Reporting by Charitles. Statement of Recomm8nded Practic applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in Ihe UK and Republic of Ireland IFRS102}' second edition (effective 1 January 20191,. th8 Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102). Reference and Admini8tratlve Detalls Legal and administrativ8 detsils are shown at the front of the 8nnual report, induding 8 full list of the Directors who seNed the Museum during the period up until the date of the signing of this report. ObJecllve• artd actlvltleg of the Museum The aims of the Museum are to foster th8 knowledge and appreciation of East Asian Art. To this end it purchased and convèrted Circus Lodge at 12 B8nn8tt Street, Bath l81Sstad building) into The Museum of East Asian Art, which opénéd ils doors to the public on 3rd April 1993. Tho obJo¢ts of th• Mu8oum ar•: The advancement of education of the public in the United kn'ngdom and elsewheffj., The advanc8menl, promotion and development of and assistance with r8s8arch and educatlon ol the public in the United KingdoTll and els8where in the fields of fine art, history arKI archaeology and the publication of the useful results of such research., Any other purpose or purposes which are charitable according to the laws of England and Wales. 11 2} 3) Publlc bonoflt The directors have carefully reviewed the 8CtivitSes of the Museum and its staff in the light of the CharilK8s Act 2011 and the guidance thereon issu8d by the Charity Commission and are satisfied that they meet their duti8s wlth respect to Section 17 and the public benefit test, that is to say that they advance tho knowledge and understanding of the history and culture of East Asia among Children and the general public In Bath and they contnbule lo the knowledge of East Asian artefads through the medium of the carefully preserved and occasionalty enhanced collecb'on. The diredors have paid due regard to guidance issued by the Charity Commission in deciding what activities the Museum should undertake. Structure, governance and management The Museum of East Asian Art is a company limited by guarantee with Memorandum and Articles of Association and is a registered charity. There has been no chang8 in policy since the last report. A Management Committee is elected by the members of the Company. The members of the Managem8nt Committee. who are the directors of the limited company, have the power under the articles to admit any applicant to membership of thè Company and to appoint any such member to membership of the Management Committee but any person so appointed has to stand for re-election al the succeeding Annual General Meeting of the Cornpany. In exercising such powers, the Management Committee considers carefully the balance ot skills required by the board for the effective governan of the Museum and any shortfall in thosé skills when appointing a director. In addition. the board assesses the personal attributes and professional experience of the person Conrned to make a contribution to the pursuit of the objects or the management of the charity. At the year end, Ihe directors were the members of the Management Committee. Incoming members of the Management Committee are taken through the financial affairs of the Museum and given a copy of the Memorandum and Articles of Association and its forward plan. The Management Committee appoints the staff and approves the annual budget, exhibitions and forward plan and takes any decisions necessary on capital expenditure or major financial matters. Thereaftgr. the Museum Manager, wotkiDg with the staff. tskes the decisions on the day to day running of the Museum and roub'ne expenditurè so long as that expenditure is covered by the annual budget and the limits of authority given to the Museum Manager.
THE MUSEUM OF EAST ASIAN ART DIRECTORS. REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Redovolopment of the Mugoum One of the Museum's priorities for this financial year was to progress the Reimagining Project by making improvements to the ground floor entran, gallery and retail area to bécome a more engaging and welcoming space for visitors. In August 2023 an opportunity arose to appty to the West of England Combined Authority IWECA) for a capital grant through the Governmenys Levelling Up programme. This grant was specifically aimed at small museums in th8 area and the Museum was successful in applying for £25,000 to fund the majority of capitsl improvements identified- these included redecoration throughout the ground flijor, refurbishing and unifying the flooring. créating a more opén space by removing some of the display cases in th8 gallery, replaang exposed radiators with low surface température ones, creabng more storagé spacE, and a compléte redisplay of th8 gallery to provide 8 semi-pefftianent introduction to the Musèum and the Museum's founder. Achlevements and P•rforni8n¢e StafNng For a small Museum with just eight members of staff. there has been an unprecedented level of ¢hang8 in staffing and roles ovér the last few years. As part of a more strategic review of staff roles and r8sponsibililies, in April 2023 the Mus8um recruited a part-time Museum Administrator lo take on much of the general adminislralion work previously undertaken by the Museum Manager. At the end of Novemter 2023, a Colledions Manager was appointed to bring collectson documentats'on up-to4ate and improve collection storage conditions. In February 2024, the Learning Manager resigned and the Museum took the opportunity to re-evaluate key areas of operational need, with the creatson of a new role ol Exhibitson Manager. An intemal recruitmenl proS8 led to the Volunteer & Membership Manager being appointed to this position, based on demonstrable skills and abilities. The recruitrnent process for a new Volunteer Manager will take place in April 2024. In addition to these changes, the Museum Administrator was offered an additional day a week from the start of the next financial year to také responsibility for the engagement prcgramme, again based on keen interest and dernonstrable 8biliti8s. Alongside th6 review of roles and responsibilities the Museum Manager undertook a comprehensive review of all salaries, dr8wing on the recommendations of the Museum Associ8tion's Salary Review Nov8mb8r 2022 and the advice of the Museum DÉv8lopment Officér {MDO} for the South West area. The recommendations put forward were approved by tho Board in March 2024, effecti from 1 April, brfnging stsff salaries more in line wlth those of comparable sectors. At the beginning of the financial year, April 2023, and in response to the rising cost-of-living, staff were awarded a pay increase of 5Vo. A oneaoff Christmas bonus was awarded in recognition of Staff achievements during 2023. Tralnlng staff are encouraged to identify individual training needs and during the year relevant staff attended the following= Breaking Barriers." Radic81 CuratOri81 Prnctice run by the Museums Association, a one-day Exhibition Design and Delivery course run by Chelsea School of Arts (GBI, a six-s8ssion online professional development course Tha Principles of Exhibilion Making run by the V&A, and an online Introduction to Touring Exhibitions run by the Touring Exhibition Group. Online training in Adobe In Design run by Udemy was also accessed. In Décember 2023. the whole team attènded a Cyber Awareness training session delivered by the Museum's IT support provider. Also attended in D8rnber 2023 was the trainiro session delivered by the Museum Development South West {MDSW) skills programme Preparing foryourAccreditation Retijm as it is likely that the Museum will invited to re-apply in 2024-25. To this end, the Museum has been drafting a new Forward Plan and Operalional Plan and umlating all policies. The Museum participated in the peer network sessions ofthe MDSWS Travg11ing Together programme in Fébfuary 2024.. How to creat& and use an Access Audit to broak down tho barriers tsced byyour community. This was followed In March by Respond and Plan.. Equalify, Diversity, and Inclu&on and Notjusl ramps and lifts.. in7pmving accessibility forbusy museums, a programme led by MDSW and funded by Art's Council England and the National Lottery Heritage Fund. All staff participaled in the MDSWS Qrganisational Health Check facilitated by the regional MDO in November 2023. Similar work was undertaken in 2019 prior to the pandemic when the National Lottery Heritage Fund's Resilient Health Checker was completed. Both Health Checkers revealed that audience development and marketing remained key areas for improvement.
THE MUSEUM OF EAST ASIAN ART DIRECTORS. REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 This infomiation will be used to inft)rm a future funding application to MDSW to work with an Audience Development Consultsnt to create an audience developrnent plan and marketing strategy. In addition to parb'apating in training, the Museum Manager completed th8 Museum Development England's Skills Needs Sumy used lo assess future training to be delivered by MDSW for the next financial year, ensuring that the training offered is both relevant and timely for the Museum's needs. Exhlbltlons Alongside the display of our permanent collection, temporary exhibitions tak8 place in galleries, one on the ground floor and one on the first floor, Flr8t floor gallery Rovolufron, Propaganda, Art 12 October 2022 - 3 June 2023 This exhibition of over 70 Chinese woodblock prints, on loan from thè Muban Educational Trust, continued to b8 very popular. with good exhibition-relatad shop sales. The Musèum was closed for the following three weeks for deinslallation, redecor8tion and installation of the nexi exhibition. 2. From Hong Kong to 8ath- a Llfelong Journ•y of Collectlng 28 Jun8 2023- 22 Juné 2024 To celebrate the 30 anniv8rsary of the founding of the Museum by Mr Brian McElney in 1993. exténsive research was done by our Cur8torial Consultant on his early life and his Collecting life in Hong Kong malnly in the 1960s and '709. The exhibition consisted of family photographs, archival photograph5 of the Museum's activities over the decades, images of Hong Kong from the 1930s and 198Os, original receipt5 for objects purchased at au¢tion in Hong Kong and narrative on the founding of the Museum, Material was collated from a wide rangè of souroes including Mr McElney's memoir.. Collecting China- tho Memoirs of a Hong Kong Art Addict. Brian McElney'$ sudden death in April 2023 was a huge loss to the Museum and all who knew him. It had a big impact on the development of th8 final planning stages of the exhibition, which became morè of a commemoration of his life. 30 objects from his collèction were selected to complement the exhibition, including the first object ha had bought wn he was studying to become a solicitor in London, a gilt brass Buddha. Mr McEln8y was the first serious collector to recognise the beauty of ¢arved bamboo objects, so a selection was m8de showing th8 range and skill of these eminent Chlnese artisans. Ground Floor Gallèry Connecting Threads.. Fashion Insplred by the MEAA Collectlon 21 June- 22 D8cember 2023 Connectsng Threads was a partnership Pfoject wrth fashion students from th8 Art & Design department of Bath College. The students worked to a brief to produce gamients inspired by objects in the Museum's collection which captured their imagination and would appeal to their generation. The exhibition wove together multiple traditions, historical periods and personal joumeys of discovery. The garments the students created were display8d alongside the objects that had inspired them. 2. Dragons, Dragons, Dragons 17 J8nuary- 18 December 2024 Launched on 17 January 2024 to celebrate the Chinese Year of the Oragon, this exhibition featur8s some 50 of th8 82 objects from the Museum's collection conlaining dragon symbolism and explores themes of dragon mythology from across ihe world. This is a particularly family-friendly exhibition with objects displayed at a lower level than previousty. with intsractive elements and opportunities for children to really engage, including magnifying glasses to reveal intri¢ata detail, colouring Sheets and prompts to write dragon stories. Learning and Engagement The Museum ran 32 adult and family events throughout the year, engaging over 1 ,500 individuals. Events included a series of on-line and in person talks associated with the exhibitions, seasonal and exhibition-related workshops, tradrtional Japanese tea reOnIeS and an extrem8ly sucGessfiJl Lunar New Year celebrats'on in partnership with the National Trus( held at Bath Assembly Rooms and the Museum. This event attracted nearly 1,000 attendees during the day, participating in craft workshops, trails, story telling, tea tasting, tradth'onal Chinese ncert8 and a planetary experience in partnership with The Herschel Museum of Astronomy.
THE MUSEUM OF EAST ASIAN ART DIRECTORS. REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Due to the very limited space in the Museum and larger class sizes. it was not possible to hold school visiis within the Museum. However, a number of smaller fomial learning sessions were provided in addition lo an outreach session at a local educats'onal establishment. In addition, a small number of bookings were received for loan boxes. Japanese Tea Ceremonies continued lo be popular, nine being delivered throughout the year with a totsl of 31 attende85. including hvo privgtely booked events. As the Museum has no dedicated activity space, these are held in the galleries during opening b'me5, which can be somewhat problematic but most visitors respect th8 tranquillity of these inb'mate sessions. These sessions are limitsd to just six participants yet are highly valued and bring in new audienc8s. VoluntOor8 The Museum is supported by 52 volunleers who help wrth front of house, act as gallery guides, support various leaming and engagement activities and wrile social media contènt. 15 separate voluntéér activities were arrangéd throughout the year including 'Museum Monday, sharing sessions to explore relevant subjects of interest and increase volunteers, knowledge of East Asian art and culture. Volunteers enjoy 8 training séssion programme, particulady those delivered by the Curatorial Consultant on understanding the Museum's collection and contextU81ising this with in4epth explorations of the development of Chinese art in relation lo Ihe dynasties. These sessions have proved invaluable in building the confidence of the volunteers to èngage with visitOTS when welcoming Ihem to the Musèum or wilhin the gallery setting. They attend briefings on all 8xhibitions to enable th8m to guide visitors in an effective and informed way. Regular newsletters keép volunteers infonned on Museum actlvitl8s and the Museum encourages their contributlons to its developmènt. The numter of hours volunteers contributed this year Increased dramab'¢ally'. 1.654 hours compared to 555 hours in tha previous year. The economic value of the volunteers. contribution to the Museum was beeen £16,540 at £10 per hour and £41,350 at £25 per hour depending on the volunteer's knowledge and expenence. The low volunteer hours for 2022-23 most likely reflect slow recovery post-pandemic and a reduced interest in the eady part of the year resulting from a gap in support for th8 voluntser programme during a chang8 of staff and the recruitment of a new Volunteer Manager. Friends of the Museum The membership scheme has been quite static for a while. holding at around 77 members. A review was undertaken in the first quarter of 2024 to gain an understanding of th8 processes involved. income gener8ted and Val of benefits. The range of benefits currèntly includes free entry to the Museum, discounts in the shop and to public events, invitabons to Private Views and activitiesl visrts to other heritsge or cultural organisations. Since most members probably join for philanthropic reasons i.e. to support the Museum, the review was focused on return on Inveslment {ROII. The charge for membership has not changed for many year$ 8nd gen8rales an in¢ome of less than £1,500 p.a. Analysis revealed a very ccffipl8x administrative. labour-intensive process and the realisation that the programme was not s¢alable, meaning that a recruitment drive would increase the burden of administration propot*'ongtely. The cost of Stsff time in administering the programme far outsveighs any financial benefit the Museum gains from the scheme. Based on the review, the Museum will be approaching the AIM Higher programme to work with an experienced Membership Consultant to determine the future direction of the Friends, programme and how to operate a more sustainable model. Collèctlon care The appoinbment of the Collections Manager to a newty creat8d role in Decemkr 2023 has resulted in an analysis and review of both colleclions managémént systems and preventative conservation measures. Work is now underway to address somè historic shortfalls in both these areas. This work is nessary and timely as the Museum is likely to be invited to re- apply for Accreditation ststus in 2024-25. Digltal engagoment During this ffinancial year there were 17.530 unique visits to the Museum's website, mostly through direct search. On th6 Museum's main sttial media accounts. there were 5.787 followers induding In$tagram. Facobook and X. Admissions Admission numbers were up nearly 42% on 2022-23 at 4,480 compar8d with 3.165, with income from admissions at £11,338, an increase of almost 22% from the previous year. The increase patly results from the Continued recovery post-pandemic and a more active exhibrtion programmè but 1$ primarily due to the success of the Lunar New Year lebratiOn. which saw unprecedented visits to the Museum on the day. Since the Museum was working in partnership with the National Trust to
THE MUSEUM OF EAST ASIAN ART DIRECTORS. REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 deliver the event at Bath Assembly Rooms opposite, all activilies, including enlrance to the Museum, re offered free - hence the differénce in the perntage increases of visitor numbers and income. The Museum was open Wednesday to Saturday and Closed for 20 nomial trading days (five fewer days than th8 previous yéar} ne$Sitated by 8 combination of maintenan, forward planning, the installationl deinstallation of exhibitions, Christmas holidays, stocktsking and the coronation of King Charles111 on Saturday 6 May. Admlsslons charge8 revièw In DecEmbÈr 2023 the Association of Independent Museums (AIM), working alongsid6 a number of national partners. published the results of a comprehensive review on admission pricing across museums in the UK in 8 detailed documenL' Research into Admissions Pri¢ing Policy in Museums and its Impact. Since The Museum had not adjusted its admission prices for some years, the research outyut was used to benchmark current admission pri$ and uTertake a comprehensive review. The resultant recommended increases were approved by the Board at the March 2024 Committee Meeting and will be implemented in April 2024. This will be an important part ol the Museum's focus in income-generating activities to help support all Museum operations. Rètall and e<ommerco Retsil plays an important part in both attracting potential audiences into the Museum and generating much-needed incorne. The e-commerce platform however, which was set up during the pandemic, never really took off and had just been acting as a 'shop window. that was costly to maintain. A review of its pgrformance led to the decision to close it down, while gtill offering a shipping Sewi for non-local customers. Retail s81es from the Museum shop for 2023-24 were £38,360 (8 39% increase from the previous yearl with new lines added due to an online wholesal8 company c811ed Faire that supplies producls from small independents without hawng lo open nèw accounts individually- a bit like Etsy for retailers. Fundra181ng The Museum generates funds to support its activitie5 and development work through applications to various sources including TTusts and Found8tions and specific museum-focused grant giving bodies. Individual donations are also encourag8d. In 2023 a grant was received from the Art Fund's Jonathan Ruffer Curatorial Grants Programme for the freelance Curatorial Consultant to undertake a series of research trips to the Museum and Bristol Museum & Art Gallery to develop tsmporary éxhibitions at the Museum. The only local authority grant still supporting museums in the area is through B&NES Council's Heritage Services and the Museum received a sm811 grant to help Impro its volunteers, digital engagement. A more substantlal grant opportunlty arose through the West of England Combined Authority IVVECA) for a Small Museurns CapStal Grant of up to £25,000, with a locus on increasing engagement and footfall. This led to the Museum advancing plans for improvements to the ground floor and tuming the temporary exhibition area into a Discovery Room, providing visitors with an introduclion to the Museum and helping them to contextualise the collection. The applicatson was successful with the grant awarded in Octotser 2023 with payments to be drawn down on proof of expenditure. Since capital works are planned for early 2025, no expenditure was made in this current finan¢ial year.
THE MUSEUM OF EAST ASIAN ART DIRECTORS. REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Flnanclal Review The Museum's PEF inv8Stment funds were recorded at a cost of £6.481,106 linclusiv8 of dealing cash of £33,461) on 31 March 2024 at which date the EEF investment funds had a market value of £525,614 (inclusive of dealing cash of £24,035). Th6 dividends and interest generated by the EndoM)ent Funds during the year amounted to £338,857. The composition of each Endowment Fund at the year-8nd is given in the notss to the financial statéments 8tt8ched. Thé Museum reiVed £970 from the Art Fund's Jonathan Ruffer Curatorial Grants Programme for the Curatorial ConsultanL £543 from the Association of Independent Museum Brighter Day Grant scheme for colléction care lo improv8 environmental monitoring, and £1,093 from B&NES Council's H@ritage Services to help improve ils volunteers, digitsl engagement. During the y68r, the Museum re¢èived £756 in donalioTbS for the Reimagining Project. £1,851 in memory of Museum's founder Mr Brian McElney and £88 in gener81 donatsons with £1,865 being reclaimed through Glft Aid. In addition, the Museum received £80 in general donations through the donation box. The Permanent Endowment Fund IPEFI was stsrted in 1995 as a separate charity govemad by a trust deed. Thè capitsl of the Fund is invested and only the income is available lo b8 paid towards the running expenses of the Museum. The Investmenls are managed by a sub-comrnitteè of three of the Museum's Management Committee. who fom the trustees of the PEF, in conjunction with Brewin Dolphin, the investment advisers. Quartedy statements showing any contribution5 to the Fund and a summary ofthe pèrformance of the Fund are provided to the Museum by Brewin Dolphin. The Charity Commission has confirmed that the accounts of the Permanent Endowment Fund can form part of the Museum's accounts, so long as th8 Funds thereof are képt separate and thi5 requirement 1$ adhered to. The directors noted that the Royal Bank of C8nada was in the propss of taking over Brewin Dolphin and are being kept informed by the executives of Brewin Dolphin with whom they deal of what impact, if any, the takeover is having on the contract and arrangements the Museum h8S Wlth Brewin Dolphin. The executor of the Johanna Austin Estate sent the Museum a further £44,000 in April 2023 and £40,000 was sent. as part of th8 PEF, to Brewin Dolphin to be invested. £4.000 wag retained to provide for 8xpense$ that might be incurred by the Museum in recovering fvnds of Some US$260,000 that were escheated by the Stste of South Carolina in 2018, Lawyers in South Carolina wer& appointed during the year and an Order for payment of the funds was issued by the Probale Division of th6 Richland County Court in January 2024. The funds are expected to be received in the next financial year. The Emergency Endowment Fund {EEF) was set up in January 2014 by the Museum, which has to be kept separale from th8 existing PEF. Investment décisions are made by the appointsd sub-committee, the mèmbers of which will nomially be the three trustees of the PEF. Capital funds may only b8 withdrawn by the unanimous vote of the Management Committ88. At 31 March 2024 the trustees of thè PEF, who also constStute the 8ub4ommittee overseeing the investment of the EEF, are Anthony Griffiths {Chair), John Higgins and Ann8 Pemg. Inve8lment powers Under Its Memorandum and Articles ofA$soclalion, Ihe Museum has the power to make any invéstment which the directors see fit. The policy adopted by the directors calls for 25 1 of all additional funds paid into the Permanent Endowment Fund to be invested in bond5 and fixed interest stock when first invested. Beyond that requirement, the trustees of the PEF and EEF are delegated the authority to manage the investments and report to the Management Committee, Reserve8 It 15 the practice of the Museum that unrestricl8d funds, which have not been designated for a specific use, along with any confirmed available support funds, should noThally be maintained at a lev81 equivalent to beeen three and six months, expenditure. The director5 consider that reserves at this level will ensure that. in thè event of a significant drop in fvnding, they will be able lo continue the Museum's current activities while consideration is given to ways in which additional funds may be raised. At 3151 March 2024, the directors have tsken into account the likely impa¢t of varying rates of inflation in the coming 12 months to determine the level of reserves that the Museum should endeavour to have in hand. The directors are cognisant of the need to have sufficient reserves to meet future capital expenditure that they may wish or need to incur. In this regard, capital exp8nditure projections are made for hvo years in advance and reviewed annually. The directors realise the Reimagining Projed, anticipated to require several years of planning then implementation, wi15 involve expending substsntial sums of money. It is their intention to apply forgrants to fund the greater proportion of and
THE MUSEUM OF EAST ASIAN ART DIRECTORS. REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 possibly all this expenditure. They will also endeavour to build up further unrestricted funds as a contribution towards the sums needed to implement the Reimagining Project At present the Unrestricted Funds1£246,5741 are represented by fixed assels of £5,740. the balance being current net assets of £240,834. It is the intenlion of the directors to continue to build up cash reserves representing a proportion of the Unrestricted Funds over a period of years from annual surpluses of Income. Surplus cash is invested through the EEF. in ord8r to generate a grealer amount of additional income for the charity. While the directors would prefer to retain the EEF {£525,6141 for us8 on capital expenditure and major refurt)ishmenl or repairs of the building as required, they would draw on that Fund to meet operational outgoings should the néed anse. This situation enables the directors to continue to build the general reserves gradually while being confi'denl they hold adequate funds to meel OFerational outgoings of beeen three and six months,. Surplus cash availablé for the ShOrt-te and usually representing reserves is deposited in the COIF Deposit account operated by the CCLA Investment Management Limited in view of the favourable rates being offered CurrenY. Going eoncern roviow The diroctors have revlewed the impact of the significant increase in inflation rates I0urrIng and projected) during 2023 and Iheir gradu81 reduclion in 2024 together with changés in the Bank of England base rate as well 8$ their anticipated conllnuSng impact. parb'cularfy in the financial environment. They believe the Museum will be able to funcbon satisfaclorily during the current year lo 31 March 2025. The level of income from inveslmenls increased during thé year but the directors cannot be certain thg same level of income will be received in the coming financial year. Income from admission5, retail sales, exhibitions and other events overall was higher in the year ended 31 March 2024 than in the prior year. The Museum Is fortunate to have positive unrestn'cted reserves and. if required. can ulilize the Emergency Endowment Fund. to the extent required. Therefore. the directors have concluded that th8 Museum is a going concem and will continue to be so for Ihe forese8able future. R18k rèview The risks faced by the charity are reviewed annually and appropriate policies are dev8loped and revised in addition to suitsble procedures being taken to eliminate or minlmise the risks involved by thè implementatson of effective internal control procedurès. which ensure both appropriaté aulhorisation of all transactions and projects and consislent quality of delivery for all operatronal aspects of Ihe charity. These policies and procedures are p8riodically reviewed for their continuing effectiveness. Tho Dlrector8 It is with the utmost sadness that the director5 report the death of Mr Brian S. McElney, OBE on 26th April 2023. Mr McEln8y founded the Museum. presiding over its opening in April 1993 and donated to it from his personal collection many of Ihe exhibits il currently possesses. A special memorial event was held in London on IBI November 2023 that was well attended and resulted in generous donations being made to the Museum in memory and also in honour of Mr McElney. The remaining directors who have served during the year and up to the date of signature of the financial statements are.. C Gore A Shepherd A Gnffilhs S Balmer J Higgins Dr T Munford R Scott A Perng None of the directors has any beneficial interest in the company. All the directors are members of the company and guarantee to contribute £1 in the event of a winding up.
THE MUSEUM OF EAST ASIAN ART DIRECTORS. REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2024 Auditor Méssrs Ferguson, Maidment & Co, are the company's 8uditor and have indicated their willingness to continue to act. They were reappointsd at the Annual General Meeting. Dlsclo8ur• of Informatlon to the audltor Each of the directors has confimied that there is no infomation ofwhich they are aware which is relevant to th8 audit which has not beèn made available to the auditor. They have fvrther confirmed that they have taken appropriats stsps to identify such relevant infomation and to establish that the auditor is aware of such infoThab'on. This confirmatlon is given and should te interpreted in accordan¢e with th8 provision$ of $8ctlon 418 of the Compani8s Act 2006. Srn•ll company prov181on8 This report has been prepared in accordanc8 wrth the provisions applicabl8 to companies entitlod to the Small companies exemption. This directors, annual report was approved on directors by: and signed on behalf of the board of A Shepherd Director Dated:
THE MUSEUM OF EAST ASIAN ART STATEMENT OF DIRECTOR'S RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2024 statement of Directors, Responslbllllle8 The directors are responsible for preparing the annual report and th6 financial statements in accordan with applicable law and regulations. The directors are required lo prepare financial statements for e8ch financial year in accordan with United Kingdom Generally Accepted Accounling Practic6 (United 'ngdoM Accounting Standards 8nd applicable lawl. The financial statements are required by law to givè a true and fair view of the state of affairs of the charity and of its incoming resources and the application of resources of the charity for that périod. Under company law the directors must not approve the financial slatements unless they are satisfied that they give a true and fair view of thè state of affairs of th6 charitable Company and of the excess of income over expenditure for that period. In preparing thvae financial stst8m8nts, the directors are r8quired to.. 1) Select suitable accounting policies and then apply them ¢onsist8ntly.' 2) Make judgments and estimates that a reasonable and prudent., 3) State whether applicable UK Accounting Standards have been foll¢)wed. Subject to any materfal departures b8lng disclosed and explained in the financial slalements, and Prepare the financial statements on a going Convrn basls unl88s it is inappropriate to presume that the charity will conb'nue in business. 4) The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial positson of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention of fraud and other irregularitl8S. The directors 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 otherjurisdictions. In addition, the directors confirm that they are happy that the contsnt of the annual review in pages 1 to 7 of this document meet the requirements of both the Trustees, Annual Report under tharily law and the Directors, Report under company law. They also confirm that the financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity's goveming document, Ihe Charities Act 2011 and Accounting and Reporting by Charities.. Stat6ment of Recomménded Practice applicable to charities pr8paring théir accounls in accordance wrth FRS 102, The Finanrjal Reporting Standard applic8ble in the UK and Republic of Ireland published on 16 July 2014. Dl$¢lo8ur• of infomiallon to audltor• The dSre¢tors who held office at the date of approval of this dir8Ctors' report confirm that, so far 8$ they are each aware, there is no audit infom8tion of which the charity's audilors are unaware., and 811 directors have tsken all the sleps that they ought to have taken 88 a director to make thamselves aware of any relevant audit Infomiation and to oslablish that the chanty's audilors are aw8r8 of that information.
THE MUSEUM OF EAST ASIAN ART INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE MUSEUM OF EAST ASIAN ART Qualified opinion W8 have audited the financial statements of The Museum of East Asian Art (the 'charity'} for the year ended 31 March 2024 which comprise the statement of financial activib'es including income and expenditure account, the balance sheet, the statement of cash flows and the notes to the financial ststements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law 8nd Unitéd Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard 8pplicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting practi}. In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion se¢tion of our report, the financial statements.. give a truè and fair view of the state of the charitable company's affairs as at 31 March 2024 and of its incoming resources and 8pplication of resources, for Ihe year then ended,. have been properly pr8pared in accordance with United rjd0rn Generally Accepted Accounting Practice., and have been prepared In accordan wrth the requiréments of the Companl8s Act 20C6, Ba818 for qvallfled oplnlon As disclosed in nots 1 to the financlal statements, investments in the Pemianent Endowment Fund are b8lng carried at cost rather than at market valu8, which practs., in our opinion, is not in accordance with United Kingdom Generally Accepted Accounting Practi. The carrying value of these investrnents at 31 March 2024 should be £8,204,910 based on the market value at that date. Accordingly. investments should b8 increased by £1,723,804 which will increase the Value of the charity's endowment funds by the same amount. We conducted our audit in accordance with Intemalional Standards on Audiling (UK) IISAS IUKI} and applicable law. Our responsibilitses under those Standards are further described in the Auditorfs responsibilities for the audit of Ihe financial statements section of our report. We are independenl of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these reqU1Ments. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. Con¢lusion• relating to golng concern We havè nothing to report in respèct of the following matters in relation to which the ISAS IUKI require us to report to you where.. the directors, use of the going ¢onc8rn basis of arxounting In Ihe preparation of the finanGial statsm8nts is not 8ppropriate', or the dirèctors have not disclosed in the finanrial statements any identsfied material uncertainties that may cast significant doubt 8boul the charity'$ ability lo conlinue to adopt the going concern basis of accounting for a period of al least fv1ve months from the dale when the financial stalements are authorised for issu6. Other Informatlon The d irectors are responsible for the other infomation. Th8 other infomatlon comprises the infom)8tion included in th8 annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial ststements does not cover the other informab'on and, except to the extent otheThMse explicitly stated in our report, we do not expr8ss any fomi of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other infomats'on 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 k matsrially misstated. If we idenbfy such material inconsistencies or apparent material misstatements, we are required to detsThine whather there is a material misstatsment in the financial statements or a material mi5Statement of the other infomatson. If, based on the work we have perfomed, 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. io
THE MUSEUM OF EAST ASIAN ART INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE MUSEUM OF EAST ASIAN ART Opinlons on other matters prescrlbed by the Companles Act 2006 the infomiation given in the Directors, Report, for the finanual year for which the finanaal ststements are prepared is consistent with the financial ststements,. and The Diredor5' Report has been prepared in accordan with applicable legal requirements. Matters on whlch we are requlrod to roport by exceptlon In the light of Ihe knowledge and understsnding of the charity and its environment obtsined in the cours8 of the audit we have not identified malerial misstatements in the Directors, Report. We have nothing to report in respect of the followsng matters in relation to which tha Companies Act 2006 requires us to report to you if, in our opinion.. 8dequate accounting records have not been kept. or returns adequate for our 8udit have not b8en received from branches not wsited by us., or the financial statements are not in agreement with the accounting records and retums., or certain diselosures of trustees, rèmunerats'on specified by law are not made,. or we have not received all the infomation and explanations wé require for our audlt,. or the directors were not entitled to preparé the financial stalemenls in accordance with the small companies regime and take advantsge of the small ¢ompanies' exemptions in preparing th8 Directors, Report and from the requirernent lo prepare a strategic report. Respon81bllltle8 of Dlrector8 As explained more fully in the statement ofdirectors, respongibilth'es. the directors are responsible for the preparation of the f i nancia I statements and for being satisfied Ihat they give a true and fair vi8w, and for such Intemal control as the directors determin8 is necessary to enable the preparation of financial statements that are tree from malerial misstatement, whether due to fraud or error. In prepartng the financi81 statements, the directors are responsible for assessing the charity's ability lo continue as a going concern, disclosing, as applicable, mattèrs related to going concem and using the going concem basis of accountsng unless the directors either intend to liquidate Ihe charitable company or to cease operations, or have no realistic alternative but to do so. Audltofs re•pon8lbllltle8 for the audit of tho flnan¢lal statoments Our objectives are to obtain reasonable assurance about whether the finanaal statements as a whole are free from matenal misstatement, whether due to fraud or erfor. 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 IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered matsrial if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statèments. Irregularities, including fraud. ar8 instances of non-compliance with laws and regulations. We design procEdures in line with our responsibilrties, outlined above, to detect material misstatements in respect of irregulanties. including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed bg1ow= Tho extent to whl¢h the audlt was ¢onsldèred capable of dotectlng irregularldes includlng fraud We obtained an understanding of the legal and regulatory frameworks within which The Museum of East Asian Art operates, focusing on those laws and regulakn'ons that have a direct effect on the detemination of material amounts and disdosures in the financial statements. We identified the greatest risk of malenal impact on the financial statements from irregularities, including fraud, to be the override of controls by management and inappropri8le revenué recognition. Our audit prOdureS to respond to these risks included enquiries of management about Iheir own idenlification and assessment of the risks of irregularities, sample testing on the posting of joumals, reviewing accounting estimates for biases, corroboraling balances recognised to supporting documentation on a sample basis and ensuring accounting poliGies are appropriate under the relevant accounting standards. There are inherent limitations in our audit procedures described above. The more removed that laws and regulation5 are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedurès required to identify non-compliance with laws and regulations to enquiry of the trust88s and other li
THE MUSEUM OF EAST ASIAN ART INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE MUSEUM OF EAST ASIAN ART management and the inswclion of regulatory and legal correspondènce, if any. Matérial misstatements that arise due to fraud can be harder to detect than those that aris8 from error as they may involve deliberate concealmènt or collusion. A furthér descripts'on of our responsibility forthe audit of thè financial ststements is located on the Financial Reporting Council's websit8 at.. w¥vw.frc.org.uklauditorsresponsibiliti8s. This descriptson foThs part of our auditor's rèport. U80 of our report This report is made solély to the charity's members, a8 a body, in accordance with Ch8Ptèr 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so Ihat we might state to the charity's members those matters we are required to state io 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 anyone Other than the ch8rity and th8 charity's members as a body, for our audit work, for thls reporL or for the opinions we have fomied. 801 Floor 167 Fleet Street London EC4A 2EA Paul Manalo (Senior Statutory Auditor) For and on behalf of Ferguson Maidm8nt & Co. Chart8r8d accountants & statutory auditor 30th September 2024 12
THE MUSEUM OF EAST ASIAN ART STATEMENT OF FINANCIALACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Unrestricted Endowment Restricted funds funds funds Totsl 2024 Total 2023 Incom from: Donations and legaci8S Notes 1,695 520,000 5,361 527,056 4,442 Charitable activities 14,781 14,781 12,136 Other trading activities 38,427 38,427 29,775 Investments 356,206 356,206 349,184 Total Income 411,109 520 000 5,361 936,470 395.537 Ex endltures on: Raisin funds Notes Fundraising 1,766 1,766 1,077 Trading costs 37,588 37,588 31,399 Investm8nt management 1,432 23,489 24,921 24,701 64.275 Charitable activities 331,492 6,822 338,314 324.847 Total resources expendod 372.278 382 024 Net gainsl{losses) on investments 12 Net movom•nt In funds 38,831 529,304 {1,461) 566,674 95,048 Fund balance8 at 1 Aprll 2023 207 743 7 387 238 238,782 7,813.783 7718 715 Fund balances at 31 March 2024 246,574 7.8.542 237,321 8,380,437 7.813,763 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from Continuing activities. Th8 Statement of financial activities also complies with the requirements for an inrne and expenditure account under the Companies Act 2006. The notes on pages 16 to 27 fomi part of the financial statements. 13
THE MUSEUM OF EAST ASIAN ART BALANCE SHEET AT31 MARCH 2024 2024 2023 Fixed assets Tangible assets Investments al 13 14 894,001 902,396 cost value 6,481,106 525,614 5,960,564 517409 7,006,720 7,900,721 6 477 973 7,380,369 Current assets Stocks Debtors Cash at bank and in hand 15 18 17 11,830 48,685 477.016 537,531 12,500 80,093 408.455 481,048 Credltors: amount falllng duo wlthin one year 18 Net current ass8ts Total assets le89 current liabilltle8 479 716 8 380 437 7,813,763 Income funds Restricted funds Endowment funds 19 20 237,321 7,896,542 238,782 7.367,238 Unrestricted funds 246 574 8,380,437 207 743 7,813.763 The financial statements have been prepared in accordance wlth section 415A of Ihe Companies Act 2006 relating to small companies and FRS 102 Section 1A. The financial statements were approved and authorised for Issue by the board of Directors on 2024 and signed on their behalf by.. 4¢5 September A Shepherd Director A Griffrths Director Company Reglstratlon No. 02499752 The notes on pages 16 to 27 form part of the financial statements. 14
THE MUSEUM OF EAST ASIAN ART STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 Restrictedl Unrestricted Funds EEF PEF Notss 2024 2023 Net Incomings and (Outgoings) from Adivities 37,370 8,205 521,099 566,674 95,048 Add.. Non-cash item Depreciation 8,395 8,395 11,332 Less: Donations Dividends Adjustment re galns and other non-cash items (520,000) (520.000) (356,206) (349,184) (356,206) 557 1,099 8.747 59,351 Cash used prior to capita5 injection, investment and other activities 309 884 309 884 302.155 Capitsl injection.. Legacy, donation and transfer 525 967 525,967 Cash generated from investm8nt activity: Dividends Sale of investments Purchased investments Fees and outgoings 356,206 356,206 349,184 1,175,442 453,534 11,841,506) 1328.006) 27,966 28,435 28,561 1,148,881 (55,406> (1,786,100) Total 356,206 665,185 337,824 446,277 Application of cash In operational activities Decreasel{Increasel in Stock Decreasel{Increasel in Deblors In¢reasel(De¢rease) in Creditors 670 11,408 10,161 15 16 18 670 11,408 10,161 (256) (8.472) 7.420 Total 22,239 16.148 Net (decrease)lincreas8 in cash 68,561 {28,845) (139,218) (99,502) 134,459 Cash at 1" April 408.455 52,880 172,679 634.014 499.555 Cash at 31 $1 March 477,016 24,035 33,461 534 512 The notes on page5 16 to 27 form part of the financial statemerrts. 15
THE MUSEUM OF EAST ASIAN ART NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting pollci88 Accounting policies Charity inforniation The Museum of East Asian Art is a private company limited by guarantee incorporated in England and Wales. The registered office is 12 Bennett Street, BATH, BA1 2QJ. 1.1 Accounting conventlon The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, 'Charities SORP {FRS 102) - Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance wlth the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) second editlon (effective 1 January 2019),, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and th@ Companies Act 2006. The charity is a Public Benefil Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the fvndlonal currency of the charity. Monetary amount5 in these financial statements are rounded to the nearest £. The financial statement5 have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. The directors of the company and the trustees of the PEF have d8termined that It is appropriat8 to depart from the United Kingdom General Accepted Accounting Practice of carrying fixed asset investments at market value because the majority of the investments held by the charity form part of the Permanent Endowment Fund, only the in¢om8 of which can be used for the purposes of the charity. The directors of the company and the trustees of the PEF therefore view carrying the investments of the PEF at markel value as being misleading since the ass8ts cannot be realised at the value stated for use by the charity and it misrepresents the net wealth of the charity. Investments in the PEF are instead being held at cost. Note 15 of the accounts contains disclosure of the value at which investments in the PEF would be carried if they were stated at market value. The directors have therefore decided lo adopt a true and fair override and accept Ihe consequent qualified audlt opinion. The directors of the company have decided that the investments of the EEF should be reported at market value since Ihey are available for use by the charity. 1.2 Going concern At the time of approving the financial statements, the directors have a reasonable expectatlon that the Charity has adequate resources to continue in operational exislenGe for the foreseeable future. Thus the directors continue lo adopt the going concern basis of accounting in preparing the financial stalements. The board of directors is confident thal future reserves and future income are more than sufficient to meet current commitments. There are no material uncertainties that impact this assessment 1.3 Charitable fund$ Unrestricted funds are available for use at the discretion of the directors in furtherance of the charitable objectives unless the funds have been designated for other purposes. The Permanent Endowment Fund represents those assets which must be held permanently by the charity. Income arising on the Permanent Endowment Fund can be used in accordance with the objects ofthe charity and is included as unrestricted income. The Emergency Endowment Fund investments are those held by the charity where the directors have discretion to convert funds into in¢om8. 16
THE MUSEUM OF EAST ASIAN ART NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies Reslricled funds can only be used for particular restricted purposes within the objeds of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Expenditure, which meets these criteria, is charged to the funds, together with a fair allocation of management and support Costs. Further explanation of the nature and purpose of each fund is included in th8 notes to the financial statements. Endowment funds are subject to spècific conditions by donors that the capital must be maintained by the charity. 1.4 Incomlng resources Income is recognised when the charily is legally entitled lo It after any p8rforman¢e condltions have been met, the amounls can be measured reliably, and it is probable that income will be received. Cash donations are recognlsed on receipt. Other donations are r8cognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donatlons received under Gift Aid or de8ds of covenant is recognised at the time of the donation. Grant income is credited to the Statement of Financial Activities when received or receivable whichever is earlier, unless it related to a specffic future period or event, in which case it is deferred. Legacies are recognised on receipt OT otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. Investment income is recognised when notice has been given of receipt by the investment manager. Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes. 1.5 Resourc98 expendod Fundraising costs are those incuired in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support cosls are Ihose incurred directly in support of expenditure on the objects of the charity. Management and administration costs are those cosls incurred in connection with the administration of the charily and compliance with constitutional and statutory requirements. Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes including the charity's shop. Charitable expenditur8 comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It inGludes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Governance costs include those ¢osls associated with meeting the constitutional and slatutoTy requirements of the charily and include the audit fees and costs linked to the strategic management of the charity. 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. 17
THE MUSEUM OF EAST ASIAN ART NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accountlng policies Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases- Freehold land and buildings Freehold buildings - no depreciation is provided on the grounds the asset has a very long useful lrfe. a high residual value, is subject to a programme of maintenance and accordingly, annual depreciation would not be material. Frèehold land is not depreciated Depreciation was provided on the non-slru¢tural elements at rates varying between 100h and 20% of cost until such items were fully depreciated. Fixtures and ffttings Between 20/0 and 200/0 per annum of cost Llbrary Not depreciated Th8 gain or loss arislng on the disposal of an assat is determlned as the difference between the sale proceeds and the carrying value of the asset, and Is rewgnised in nel incomel(expenditure) for the year. 1.7 Heritago a880ts The charity has taken advantage of 18.14 of the Charities SORP {FRS 102) and not recognised heritage assets at valuation. The museum's collection is predominately made up of donations of long held assets of donors. The assets are excluded from the balance sheet as significant costs would be involved in the reconstruclion of past accounting records and valuations, which are onerous compared with the additional b8nefit derived by users of the accounts. Assets under wnstruction 1.8 Fixed asset investments Fixed asset investments are stated at cost less any provision for impairment at the balance sheet date. The SOFA includes the net realised gains and losses arising on disposals throughout the year. 1.9 Impalrment of flxed a88ets At each reporting end date, the charity reviews the carrying amounts of its tangibl8 assets to determine whether there is any indication that those assets have suffered an impaiment loss. If any such indication exists, the recoverable amount of the ass8t is estimated in order lo detemine tha extent of the Impaimient loss (if any). Inlangible assets with indefinite useful lives and intangible assets not yel available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired. 1.10 Stocks Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises the cost of direct materials and, where applicable, direct labour costs and those overheads that have been Incurred in bringing the stocks to their present location and Condition. Items held for distribullon at no or nominal consideration are measured at the lower of replacement cost and cost. Net realisable value is the estimaled selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. 1.11 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks. other short-term liquid investments wilh original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.12 Flnancial instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments. and Section 12 'other Financial Instruments Issues, of FRS 102 to all its financial instruments. Financial instruments are recognised in Ihe charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with th8 net amounts 18
THE MUSEUM OF EAST ASIAN ART NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accountlng policies presented in the financial stalements, when there is a legally enforable right to set off the recognised amounts and there is an intention to settle on a n8t basis or to realise the assel and settle the liability simultaneously. Basic financlal assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interesl method unless the arrang8ment constitutes a financing transaction, where Ihe transaction is measured at th8 present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are nol amortised. Baslc financial Ilabilitles Basic financial liabilities, including creditors and bank loans are initially recognised at Iransaction price unless th8 arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year ar8 not amortised. Debt instruments are subsequently carried at amortised cost, using the effective Interest rate method. Trade creditors are obligalions to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not. they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Derecognltlon of flnaneial liabllities Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled. 1.13 Employee benafits The cost of any unused holiday entitlement is recognised in the period In which the employee's seTvi¢e8 are received. Temination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide temiination benefits. 1.14 Retirement benefits Payments to defined contribution retirement benefft schemes are charged as an exp8nse as they fall due. Critical accountlng estimates and judgements In the applicalion of the charity's accounting policies. the directors are required lo make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The eslimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting eslimales are recognised in the period in which the estimate is revised where the revision affects only that period. or in the period of the revision and future periods where the revision affects both current and future periods. 19
THE MUSEUM OF EAST ASIAN ART NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Donations and legaci8S unStrICted Endowment funds funds deslgnated Restricted funds Total 2024 Totsl 2023 Donations and gifts Legacies 1,695 5,361 7,056 520,000 527,056 3,968 474 4,442 520,000 520,000 1,695 5,361 Forthe year 8nded 31 March 2023 454 474 3,514 4 Charltablo actlvlti•8 2024 2023 Admlssion Charges Events Educallon Membarship subscriptions 11,338 1,728 95 9.286 1,083 345 1.422 14.781 othor tradlng actlvlties 2024 2023 Shop income Imag8 copyright sales Other income Other trading activities 36,676 232 28,772 817 38.427 Inveslments 2024 2023 Income from Ilsted investments Interest re¢elvable 338,857 17.349 356.206 343.670 5,514 349 184 20
THE MUSEUM OF EAST ASIAN ART NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Ralslng funds Unrestrlcted Endowment Restrlctad funds funds funds Total 2024 Total 2023 Fundraisin Staff costs and Publi 1,766 1,766 cos Other trading adlvltles Stsff costs 20,567 17,021 20,567 17,021 37.588 15.939 15.460 31.399 vestmen ment 23,489 24.921 24.701 40.786 23,489 64.275 57,177 Forthe yearended 31 March 2023 Fundraising and publicity Trading costs Investment management 1,077 31,326 1,077 31,399 24.701 57,177 73 23,266 23,266 33,838 73 Charitable activltle$ 2024 2023 Staff costs Depreciation Advertising and PR Collection care Property costs Travel and expenses Legal and professional Subscriptions Training and Consultancy Office costs Bank charges Education Exhibition Artefact insurance and storage 219,166 8,395 3,979 21,554 26,786 4,339 1,345 533 1,940 14,683 83 4,135 8,696 18.200 333,834 211,003 11,332 3,661 5,094 30,443 1,266 1.967 409 18,191 13,138 1,182 7.219 320,487 Share of govemance Costs (see note 9> 338,314 324,847 21
THE MUSEUM OF EAST ASIAN ART NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Support costs Support Governance Costs Costs 2024 2023 Basis of allocation Audit fees Analysed between Charitable activities 4,480 4,480 4,360 Govemance 10 Dlrectors During the year, no dir8clor received any remuneration (2023.. £Nil). No member of the Board of Trustees received reimbursement of expenses {2023'. £Nil). 11 Employee8 Number of employeos 2024 Number 2023 Number Curatorial Visitor Services Administration Education Security Employment costs 2024 2023 Wages and salaries Social security costs Other pension costs 200,217 12,483 183,773 11,360 8,247 203 380 222,411 No employee recelved employee benefits of more than £60,000 {2023: £NII). 22
THE MUSEUM OF EAST ASIAN ART NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 12 Net gainsl{lossesl on Inveslmonts 2024 2023 Gainl(loss) on sale of investments PEF EEF 24,588 (4,238) 116,826 11,984 Unrealised gainsl(losses) EEF 12,443 32.793 47,275 81,535 13 Tanglble flxed assets Freehold land and bullding$ A$$ets under Fixtures and ¢on8truction flttlngs Library Total Cost At 1 April 2023 Acquisitions Disposals 224,239 668,638 568,462 51,250 1,512,589 At 31 March 2024 224,239 668 638 568,462 1512 589 Depreclatlon and impalrment At 1 April 2023 Disposals Depreciation charged in the year 55,866 554,327 810.193 8,395 At 31 March 2024 55,866 562 722 818,588 Carrylng amount At 31 March 2024 224.239 612,772 51,250 894.001 At 31 March 2023 224.239 612.772 14,135 51,250 902.396 Not included in the above is the Museum's collection of artefacts. The collection, due to its nature, is of most value in terms of its cultural significance and as such no reliable monetary value can be placed upon It. 23
THE MUSEUM OF EAST ASIAN ART NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 14 Flxed asset Investments Listed investments Cash in portfollo Total Pemianent Endowment Fund at cost At 1 April 2023 5,787,885 172,679 5,960,564 Incoming resources 525,967 525,967 Additions 1,784,053 (1,786,100) {2,047) Sales proceeds (1,148,881) 1,148,881 Gainsl (Losses) 24,588 24,588 Fees and outgoings (27,966 27,966 At 31 March 2024 6,447,645 33,461 6,481,106 At 31 March 2023 5,787,885 172,679 5.960,564 Emergency Endowment Fund at market value At 1 April 2023 464,529 52,880 517,409 Incoming resour6 1,043 1,043 Additions 55,799 (55,406) 393 Sales proceeds (26,561) 26,561 Realised Gainsl (Losses) (4,631) (4,6311 Fees and outgoings 11,043) (1,043) Unrealised gainsl (Losses) 12,443 12,443 At 31 March 2024 501,579 525,614 At 31 March 2023 464,529 52,880 517,409 Incoming resources of the Pemianent Endowment Fund comprise a further legacy payment from the Johanna Austin Estate, a legacy from the founder of the Museum Brian McElney, and reimbursement of the VAT element of PEF management fees. Fixed asset inveslments for the Permanent Endowment Fund are carried at cost rather than market value. The reasons for this treatment are disclosed in note 1 of the financial statements. The market value of the Permanent Endowment Fund investments at 31 March 2024 was £8.204,910 (2023.. £7,280.212) 24
THE MUSEUM OF EAST ASIAN ART NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 15 Stocks 2024 2023 Finished goods and goods for r8sale Less: Provision for obsolete stock 11,830 12,662 162 12,5 16 Debtor8 2024 2023 Amountfalling du• wlthln one year: Other deblors Prepayments and accrued income 24.901 23.784 48.685 36.392 23,701 60,093 17 Cash at Bank and In Hand 2024 2023 Balance at Bank Balance with CCLA on COIF deposit 32,016 108,455 445,000 477016 300,000 408 455 18 Croditors 2024 2023 Amount falling due wlthin one year: Trade creditors Accruals and deferred income 25,430 32.385 57.815 26,030 47,654 25
THE MUSEUM OF EAST ASIAN ART NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 19 Restrictsd funds The income funds of the charity include restricted funds comprising the following unexp8nded balances of donations and grants held on trust for specific purposes.. Balance at Incoming 1 April 2023 Resources R88ource8 Expendod Transfern Balance at 31 March 2024 MEAA Metalware conservation project 24.353 24,353 The Reimaging Project fund 205,786 821 (95) 206,512 L.G Harris Trust Security Enhancements 2,671 (1,949) 722 L.G Harris Trust Photography of collection 3,800 3,800 AIM Brighter Day Grant Environmental Monitoring and Improvements 2,172 543 (2,715> Art Fund Jonathan Ruffer Curatorial Grants Programme 970 (970) Museum Founder Brain McElney Memorial fund 1,934 1,934 B&NES Heritage services Improving Audience Engagement 1,093 238,782 5,361 6,822 237,321 The R8im8gining Project fund for the redevelopment of whole Museum. AIM Brighter Day Grant for Environmental Monitoring and Improvements project for collection care. Art Fund Jonathan Ruffer Curatorial Grants Programme for the freelance Curatorial Consultant lo develop two temporary exhibitions at the Mus8um. Brian McElney Memorial fund for the donations received in memory of the Museum's founder Mr Brian McElney. OBE B&NES Heritage Services to help improve Museum's volunteers, digital engagement 26
THE MUSEUM OF EAST ASIAN ART NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 20 Endowment funds The Endowment fvnds, which are material to the charity's adivities, ar8 made up as follows: Movement in funds Balance at 31 March 2024 Balance at Incoming Resources 1 April 2023 ResourGe8 Expended Transfers Revaluation8 gains11053e8 Permanent Endowment fund Gift from Franklin Tsu's Estate Special capital reserve Emergency Endowment fund 5,955,856 884,620 9.352 517,410 7.367.238 520,000 (23.489) 24,588 6,476,955 884,620 9.352 525.615 7,896.542 8,205 32,793 520.000 23.489 Incoming Resources of the Permanent Endowment Fund of £520,000 comprise £40.000 being a further legacy payment from the Johanna Austin Estate and a18gacy of £480,000 from the founder of the Muséum Mr Brian McElney. The Pemianent Endowment Fund exists as a separate Charity. The capital of this fund is invested and only the income is available lo pay towards the running expenses of the Museum. The investments are managed by a sub-committee of three of the Museum's Management Commiltee in conjunction with Brewin Dolphin the investment advisers. Copies of the quarterly statement showing the contributions to the Permanent Endowment Fund and the investments held by it are circulated quarterly to the sub-committee. The Charity Commission has confirmed that the accounts of tha Permanent Endowment Fund can form part of the accounts so long as the funds are kept separate. 21 Analysis of net assets between funds General funds Re8trlcted Endowment funds funds Total Fund balances at 31 March 2024 are represènted by.. Tangible assets Investments Current assetsl(liabilltles) 5,740 888.261 7,006,720 1,561 894.001 7,006.720 479 716 240 834 237,321 246,574 237.321 7,896.542 8.380,437 The Restricted Funds balance consists entlrely of Current assetslliabillties. The Unrestricted Funds of £246,574 consist of fixed assels of £5.740 and net current assets of £240,834. 22 Related party transactlons Transactions with related partlos During the year the charity entered into no transactions with related parties. 27