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2022-03-31-accounts

Charity number: 528895

FRIENDS OF BIRMINGHAM MUSEUMS AND ART GALLERY

COMMITTEE REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2022

Harwoods Chartered Accountants 1 Trinity Place Midland Drive Sutton Coldfield B72 1TX

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Charity Number: 528895

FRIENDS OF BIRMINGHAM MUSEUMS AND ART GALLERY

CONTENTS

Page
Trustees’ Annual Report for the 2022 AGM:
Reference and Administrative Information of the Charity for the Year Ended 31 March 3
2022
Trustees’ Annual Report for the 2022 AGM 4
Independent Examiner's Report 8
Financial Statements for the Year Ended 31 March 2022:
Statement of Financial Activities 9
Balance Sheet 10
Notes to the Financial Statements 11

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FRIENDS OF BIRMINGHAM MUSEUMS AND ART GALLERY

Trustees’ Annual Report for the 2022 AGM

REFERENCE AND ADMINISTRATIVE INFORMATION OF THE CHARITY FOR THE YEAR ENDED 31 March 2022

Trustees

Due to COVID-19, the Trustees held a total of six Committee meetings on Zoom from 1 April 2021 until 31 March 2022. The 2021 AGM was held in person. Attendance at these events is shown in brackets. Unfortunately, some of the Committee were unable to access Zoom and were thus unable to attend the online meetings. However, they had contributed comments and suggestions for inclusion at the meetings.*

Chair Deputy Chair Hon. Treasurer, Resigned 21 April 2021

Peter Miles (7/7) Chair Bill Lane (6/7) Deputy Chair John Bragg (1/1) Jim Wells (3/7) Judith Hurst (1/7) John Pownall (1/3) Resigned 21 July 2021 Rosalind McCarthy (6/6) Elected 2 June 2021 Carolyn Blake (2/3) Elected 2 June 2021, Resigned 6 September 2021 Jane Howell (4/5) Elected 21 July 2021 Stephen Hartland (4/5) Elected 21 July 2021 Tim Tolkien (2/4) Elected 1 September 2021 Peter Baker (1/1) Elected 22 February 2022 Councillor Kath Hartley (4/7) Council nominee Councillor Peter Fowler (4/7) Council nominee In attendance Birmingham Museums Trust's Representative (5/7) Melissa Hughes (7/7) Administrator

Charity registration number

528895

Principal office

Friends of Birmingham Museums & Art Gallery Soho House Museum Soho Avenue Birmingham B18 5LB

Independent Examiner

Nick Burrows BA FCA Harwoods Chartered Accountants Registered Auditors 1 Trinity Place Midland Drive Sutton Coldfield B72 1TX

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FRIENDS OF BIRMINGHAM MUSEUMS AND ART GALLERY

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 March 2022

The Trustees present their report and the financial statements for the year ended 31st March 2022. Reference and administrative information set out on this page forms part of this report. The financial statements comply with current statutory requirements, the charity’s constitution, and the Statement of Recommended Practice – Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

OBJECTIVES AND ACTIVITIES

a. Principal Objective

The principal object of the charity, as declared in its current Constitution, approved in 2021, is “to support and assist the Birmingham Museums and Art Gallery and to promote their use and enjoyment by the public. In furtherance of the above-. . . . to provide money, by receipt of subscriptions, gifts, bequests or otherwise and by sale of artistic works or other trading activities such money to be applied either directly or after accumulation or investment.”

In making its annual review of the aims, objectives and activities, the Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit. In particular, the Trustees have considered how planned activities will contribute to the aims and objectives that have been set.

b. Contributions and Acquisitions to Birmingham Museums Trust

During the year 2021-2022, the Friends made two contributions to Birmingham Museums Trust: £15,000 towards the conservation appeal for Edward Burne-Jones’ ‘The Star of Bethlehem’, and £534 for the outright purchase of ‘Conniveo’, a vinyl photographic image printed on plexiglass by artist Georgia Tucker, made in 2020.

c. Membership

At the end of March 2022, our total number of Members was 612, 55 fewer than in March 2021 when we had 667 Members – a decrease of 8.2%. This decrease has slowed considerably since the year before when, at the end of March 2021, we had had a 13.8% decline in Membership in the twelve months from April 2020 to March 2021. The number of leavers in 2021-22 was 62, compared with 111 in 2020-2021, a decrease of 44%. Members from whom we received no response to renewal reminders accounted for 21 leavers (34%).

The number of new Members in 2021-2022 was 7, compared with 4 in the previous year, an increase in Membership uptake of 43%. With the publication and wider distribution of ‘Artefacts’, and the planned re-launch of our Events programme in the next few months, we hope that Members who left during the pandemic might consider re-joining.

d. Social Events

Due to COVID-19, the Friends did not offer a programme of social events in 2021-22. We are planning to restart our events programme in the Summer 2022 edition of ‘Artefacts’.

e. Friends Magazine

‘Artefacts’ had not been published since May 2020 due to COVID-19. A trial Winter edition was published in November 2021, which proved to be a great success, and as a result ‘Artefacts’ will continue to be printed quarterly.

f. Priorities for the Year 2021-2022 – and how were these achieved?

2021-2022 continued to be a year of uncertainty due to COVID-19. Most of the Friends’ activities, like many similar organisations, continued to be side-lined by the pandemic. Last year, the Committee identified seven priorities for the coming year:

1. Continuing to work with BMT to understand their future plans in order that the Friends can anticipate the manner of support which might be required.

The Committee continued to have regular Meetings using Zoom which included updates from Rachel Cockett, BMT’s Director of Development. The Committee were kept up to date with BMT’s plans, including BMAG’s redevelopment and its ‘pop up’ reopening from April until October 2022, in time for the 2022 Commonwealth Games. The planned closure of the offices in BMAG, including the Friends’ Office, was delayed from autumn 2021 until May 2022.

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2. Planning and preparing for the closure of the Friends’ Office in Autumn 2021 and the subsequent change in operations as a result of the BMAG Redevelopment. The closure of the Friends’ Office in BMAG has been delayed until May 2022 and, as a result, has allowed us more time to find a new office. However, the issue of sourcing a new office is still very pressing as the deadline approaches.

3. Communicating with the Membership by developing a Friends Newsletter whilst COVID-19 prevents the publication of Artefacts .

Melissa Hughes set up a Mailchimp account and in May 2021, the Friends first E- newsletter was circulated to all Members who were on email, with copies being sent by post to Members for whom we did not have email addresses. Four Friends Newsletters were circulated between May and November 2021.

In Winter 2021, following discussions with PW Media, the publication of ‘Artefacts’ was reestablished on a quarterly basis. Archive copies of the E-newsletter and ‘Artefacts’ continued to be uploaded on the Friends’ website.

4. Recruiting new Trustees.

5. Developing the Friends online presence – website and social media (e.g. Facebook, Twitter) – in scale and quality.

Melissa Hughes updates the Friends’ Twitter account and Facebook page on a weekly basis.

Jim Wells, one of the Friends’ Trustees, continued to produce articles for the website throughout the pandemic. With the introduction of the E-newsletter and the reinstatement of ‘Artefacts’, his articles were published in both those media, but also continued to be uploaded onto the website.

6. Raising awareness of the Friends and increasing the Friends membership. Membership numbers have continued to decline. The Committee recognise the importance of addressing this issue. With the reinstatement of ‘Artefacts’ and the forthcoming recommencement of the Friends’ Events programme, a Membership offer is now being able to be developed. The intention is that this might encourage those who have allowed their Membership to lapse during the pandemic to re-join, and to attract new Members. In addition, new venues are being researched to extend the distribution of ‘Artefacts’.

7. In light of the changes due to COVID-19, looking for more volunteer support in order to rethink and develop the Friends’ Events programme and to provide further support across the organisation.

A number of the Friends’ Trustees, led by Jane Howell, are working together to develop the Friends’ Events programme. Rosalind McCarthy, one of the Friends’ new Trustees, has taken on responsibility for keeping the Friends’ Acquisition Database up to date.

g. Priorities for the current Year 2022-2023

As life returns to a ‘new normal’ and the COVID-19 restrictions ease, the Committee acknowledge the importance of developing the Friends’ Membership offer and enabling the organisation to strengthen and develop.

  1. Continuing to work with BMT to understand their future plans in order that the Friends can anticipate the manner of support which might be required.

  2. Planning and preparing for the closure of the Friends’ Office in May 2022 and the subsequent change in operations as a result of the BMAG Redevelopment.

  3. Recruiting new Trustees and an Honorary Treasurer.

  4. Developing a Friends’ Vision and a Strategy for 2024, to tie in with the Reopening of BMAG.

  5. Holding a Committee Away Day.

  6. Developing the Friends’ online presence – website and social media (e.g. Facebook, Twitter) – in scale and quality.

  7. Raising awareness of the Friends and increasing the Friends Membership.

  8. Seeking volunteer support to provide further support across the organisation.

STRUCTURE, GOVERNANCE AND MANAGEMENT

a. Constitution

The principal object of the charity is as declared in the current Constitution of the charity, approved in 2021.

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b. Method of Appointment or Election of Committee

The management of the charity is the responsibility of the Committee. Its members are the Trustees of the charity and are approved by the membership under the terms of the Constitution. This also allows for additional members to be co-opted when necessary.

The officers are appointed by the Committee and approved by the meeting of members.

The Constitution of the charity provides for the Museum Director to be a member of the Committee. Sara Wajid and Zak Mensah, BMT’s Co-CEOs, have delegated this role to Rachel Cockett, Director of Development. Furthermore, Birmingham City Council is entitled to appoint two Councillors to the Committee. The current Councillors attend our meetings regularly and have contributed greatly to our deliberations at various times. The Museum CEOs and the Birmingham City Councillors are non-voting members of the Committee.

There were three vacancies on the Committee and one nomination had been received. The Trustees recommended that the two additional vacancies remained open. All the existing Committee members have participated enthusiastically over the year, and we are very grateful for their contributions. The Committee held six Committee meetings during the year. Individual members have collaborated in specific projects and Sub-Committees outside of the official meetings, enabling the formal meetings to be effective.

The Trustees must be members of the charity. They have no beneficial interest in the charity. All Trustees and volunteers give their time voluntarily and receive no benefits from the charity.

c. Organisational Structure and Decision Making

The Association was established in 1931 and is constituted under a Charity Commission Scheme dated 22 May 1969 and is a registered charity, number 528895. It is regulated by its Constitution approved by the Annual General Meeting, 4 November 2021.

d. Risk Management

The Committee has assessed the major risks to which the charity is exposed, in particular those related to its operations and finances. We are satisfied that the procedures for managing our finances are sound.

COVID-19 continued to reduce the activities of the Friends and BMT throughout 2021-2022. The Officers and the Committee have used online resources to maintain efficient operations: email, videoconferencing, and online banking.

e. Office and Administration

Following Lynda’s retirement from her role of Membership Secretary, we were delighted that she took on the role of the Friends’ Bookkeeper. We are thrilled to have welcomed Sarah Farnan, our new Membership Secretary, who took on the role in October 2021. We would like to thank both Lynda and Sarah for their enthusiasm, dedication and hard work.

Melissa Hughes continues as our excellent Administrator and Editor of the Friends’ quarterly magazine, ‘Artefacts’. The Committee are grateful for the professionalism she brings to these positions.

Unfortunately, with BMAG having been closed due to redevelopment work, the Friends’ Information Desk in the Industrial Gallery has been closed.

f. Trustees' Responsibilities Statement

The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to;

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The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website.

FINANCIAL REVIEW

The Committee confirm that the annual report and financial statements of the charity have been prepared under the historical cost convention, with the exception of investments which are included at market value, and in accordance with applicable United Kingdom accounting standards, the Statement of Recommended Practice ‘Accounting and reporting by Charities’ - SORP applicable to charities preparing their accounts in accordance with FRS 102.

The Reserves were built up in the late 1970s, mainly through the sale of works donated through the Friends and are all Unrestricted Funds, none of these or subsequent donations received being designated or restricted for a particular purpose. The major part of these Reserves has been invested on the Friends’ behalf by the Trustees giving discretion to our Investment Manager, Brewin Dolphin, within the overall Investment policy set by the Trustees, which is to limit risk while aiming for long-term growth of capital and income. There is an international spread of our investments both in equities and in fixed interest securities.

The Investment Sub-Committee has not formally met this year, but both members – the Chair and Vice Chair – have had continuous discussions with our brokers, Brewin Dolphin, regarding our income during these difficult times and in order to review the performance of our investments against the agreed investment criteria.

The Trustees annual report has been approved by the Trustees on 12th July 2022 and signed on their behalf by:

…………………………………………… Peter Miles, Chair

……………………………………………. William Lane, Deputy Chair

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FRIENDS OF BIRMINGHAM MUSEUMS AND ART GALLERY

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF FRIENDS OF BIRMINGHAM MUSEUMS AND ART GALLERY FOR THE YEAR ENDED 31 March 2022

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31st March 2022 which are set out on pages 9 to 15.

Responsibilities and basis of report

As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Nicholas Burrows FCA

Harwoods, Chartered Accountants 1 Trinity Place Midland Drive Sutton Coldfield West Midlands B72 1TX

……………………

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Statement of Financial Activities for the year ended 31 March 2022

Note
Income
Donations and legacies
3
Income from charitable activities
4
Investment income
Other income
5
Total income
Expenditure
Costs of raising funds
6
Expenditure on charitable
activities
7
Total expenditure
Net income/
(expenditure) before net
gains/(losses) on investments
Net gains (losses) on investments
11
Net income/(expenditure) and net
movement in funds for the year
Total funds brought forward
Total funds carried forward
15
Total funds
Total funds
2022
2021
(all unrestricted)
£
(all unrestricted)
£
3,120
-
14,377
19,415
13,800
13,992
58
4,795
31,355
38,202
5,468
5,149
39,607
30,248
45,075
35,397
(13,720)
2,805
1,058
96,364
(12,662)
99,169
583,549
484,380
570,887
583,549

9

Balance Sheet as at 31 March 2022

Note
Fixed assets
Tangible assets
10
Investments
11
Total fixed assets
Current assets
Debtors
12
Short term deposits
Cash at bank and in hand
Total current assets
Liabilities
Creditors: amounts falling due in
less than one year
13
Net current assets
Net assets
Represented by:
Unrestricted funds
15
2022
£
£
-
538,979
538,979
1,341
14,021
21,485
36,847
(4,939)
31,908
570,887
570,887
2021
£
£
-
540,576
540,576
1,482
16,805
28,683
46,970
(3,997)
42,973
583,549
583,549
2021
£
£
-
540,576
540,576
1,482
16,805
28,683
46,970
(3,997)
42,973
583,549
583,549
2021
£
£
-
540,576
540,576
1,482
16,805
28,683
46,970
(3,997)
42,973
583,549
583,549
540,576
42,973
36,847
(4,939)
46,970
(3,997)
583,549
583,549

The financial statements were approved by the Trustees on 12th July 2022 and signed on their behalf by:

……………………………………………

Peter Miles, Chair

……………………………………………. William Lane, Deputy Chair

The Notes on pages 11 to 15 form part of these financial statements.

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Notes to the Financial Statements for the year ended 31 March 2022

1. Legal Status of the Charity

Friends of Birmingham Museums and Art Gallery is a charitable unincorporated organisation in England & Wales, which is regulated by its Constitution approved by the Annual General Meeting, 21 July 2010.

The address of the charity’s principal place of business can be found on the reference and administration page.

2. Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of preparation

The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at fair value.

The financial statements have been prepared on the going concern basis and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice.

The charity meets the definition of a public benefit entity under FRS 102.

The financial statements are presented in sterling, which is the functional currency of the charity and rounded to the nearest £1.

Fund Accounting

Unrestricted income funds comprise those funds, which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the trustees, at their discretion, have created a fund for a specific purpose.

Restricted funds are funds, which are to be used in accordance with specific restrictions imposed by the donor. During the reporting period and in the previous year the charity had no restricted or designated funds.

Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Subscriptions including Gift Aid are recognised when received.

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. Legacy gifts are recognised on a case-by-case basis following the granting of probate when the administrator/executor of the estate has communicated in writing both the amount and settlement date.

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Notes to the Financial Statements for the year ended 31 March 2022 (cont’d)

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Tangible Fixed Assets

Tangible fixed assets consist of collection boxes, which are treated as non-depreciable. Computer equipment is depreciated on a 3-year straight line basis.

Fixed Asset Investments

Investments are stated at market value at the balance sheet date. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

Current Asset Investments

Current asset investments are short-term highly liquid investments and are held at fair value. These include cash on deposit and cash equivalents with a maturity of less than one year.

Taxation

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Financial instruments

The trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.

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Notes to the Financial Statements for the year ended 31 March 2022 (cont’d)

Realised Gains and Losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired during the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the yearend and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

3.
Income from Donations and Legacies
Donations
Legacy
4.
Income from Charitable Activities
Members Subscriptions
Members Events
5. Other income
Parental leave contribution towards
salaries (note 8)
Bank compensation
6.
Costs of Raising Funds
Investment Management Costs
7.
Expenditure on Charitable Activities
Contributions to BMAG
Governance and Support Costs
8.
Analysis of governance and support costs
Staff costs – salaries
Payroll administration
Office costs
Independent examiner
AGM expenses
Printing and postage
Bank charges
Insurance
Bad debt
Other costs
Depreciation
Total Funds
Total Funds
2022
2021
(unrestricted)
(unrestricted)
£
£
120
3,000
-
-
3,120
-
14,377
16,624
-
2,791
14,377
19,415
-
4,410
58
385
58
4,795-
5,468
5,149
5,468
5,149
15,534
6,000
24,073
24,248
39,607
30,248
16,517
13,978
204
210
505
717
1,890
1,980
210
-
2,769
941
283
402
914
901
485
-
296
141
-
4,978
24,073
24,248

The average number of staff employed during the year was 2 (2021: 2). No employee received employee benefits in the year in excess of £60,000 (2021: nil).

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Notes to the Financial Statements for the year ended 31 March 2022 (cont’d)

9. Related party transactions and trustees' remuneration and expenses

No trustee received reimbursement of travel expenses during the year (2021: £nil.)

There are no related party transactions during the period (2021: £ nil).

10.Fixed Assets
Cost
At 1 April 2021 and 31 March 2022
Depreciation
At 1 April 2021 and 31 March 2022
Net Book Value
At 1 April 2021 and 31 March 2022
11.Investments
Market Value at 1 April 2021
Add: additions at cost
Sale proceeds from disposals
Gains (losses) in year
Market Value at 31 March 2022
Investments at fair value comprise:
Equities
Other Investments/securities
12.Debtors
Prepayments and accrued income
Collection
Boxes
£
Computer
Equipment
£
Total
£
4,978
883
5,861
4,978
883
883
-
-
-
2022
2021
£
£
540,576
458,186
16,495
94,916
(19,150)
(106,890)
1,058
96,394
538,979
540,576
309,812
324,592
229,167
215,984
538,979
540,576
2022
2021
£
£
1,341
1,482
1,341
1,482

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Notes to the Financial Statements for the year ended 31 March 2022 (cont’d)

13. Creditors: amounts falling due within one year

Accruals and deferred income
Other creditors
2022
2021
£
£
4,405
534
3,333
664
4,939
3,997

14. Summary of movement in funds – all unrestricted

At 1 April 2021
Income
Expenditure
Losses/Gains on Investments
At 31 March 2022
2022
2021
£
£
583,549
31,355
(45,075)
1,058
484,380
37,817
(35,012)
96,364
570,887
583,549

15. Analysis of Net Assets between Funds – all unrestricted

Tangible Assets
Fixed Asset Investments
Cash at bank and in hand
Other current assets
Current liabilities
Total
2022
2021
£
£
-
-
538,979
540,576
21,485
28,683
15,362
18,287
(4,939)
(3,997)
570,887
583,549

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