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 Con￿rned 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 pro￿S8 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 D8￿rnber 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 w￿n 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 ￿re￿OnIeS 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 be￿een £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 ne￿ssary 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 per￿ntage 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 uT￿ertake 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 (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 enfor￿able 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 un￿StrICted 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 resour￿6 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