2023-03-31-accounts

NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2023

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Note Restricted Unrestricted 2023 Restricted Unrestricted 2022
£ £ £ £ £ £
Income from:
Donations and Legacies
Donations 2 - 101,687 101,687 - 84,999 84,999
Gifts in kind 2 99,725 - 99,725 442,670 - 442,670
Charitable activities
Grant-in-aid 3 3,143,000 16,131,000 19,274,000 4,073,000 14,488,000 18,561,000
Admissions 3 - 1,159,035 1,159,035 - 895,019 895,019
Other grants 3 1,039,679 - 1,039,679 975,575 - 975,575
Other trading activites
Sponsorships 4 9,739 - 9,739 11,230 - 11,230
Trading 4 - 1,288,798 1,288,798 - 955,452 955,452
Investment income - 8,254 8,254 - 121 121
Other income 5 - 191,976 191,976 - 23,867 23,867
Total income 4,292,143 18,880,750 23,172,893 5,502,475 16,447,458 21,949,933
Expenditure on:
Raising funds
Trading 6 41,134 1,435,405 1,476,539 18,820 1,120,438 1,139,258
Charitable activities
Care of Collections 6 197,144 2,431,420 2,628,564 222,862 2,171,706 2,394,568
Curatorial & Education 6 616,994 2,814,399 3,431,393 470,869 2,331,496 2,802,365
Experience & Enterprise 6 274,588 5,947,247 6,221,835 39,558 5,090,179 5,129,737
Audience Development 6 145,100 1,652,986 1,798,086 214,265 1,474,343 1,688,608
Operations 6 106,208 8,133,489 8,239,697 27,896 7,062,739 7,090,635
1,381,168 22,414,946 23,796,114 994,270 19,250,901 20,245,171
Net income/(expenditure) 2,910,975 (3,534,196) (623,221) 4,508,205 (2,803,443) 1,704,762
Transfers between funds (2,383,286) 2,383,286 - (3,556,082) 3,556,082 -
Other recognised gains/(losses)
Gains/(losses) on revaluation
of fixed assets 8 - 4,277,853 4,277,853 - 3,858,953 3,858,953
Net movement in funds 527,689 3,126,943 3,654,632 952,123 4,611,592 5,563,715
Reconciliation of funds:
Total funds brought forward 21,928,491 79,037,148 100,965,639 20,976,368 74,425,556 95,401,924
Total funds carried forward 22,456,180 82,164,091 104,620,271 21,928,491 79,037,148 100,965,639
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All amounts included in the above statement relate to the continuing operations of National Museums NI. There are no recognised gains and losses other than those shown above. The notes on pages 67 to 82 form part of these accounts.

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NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

BALANCE SHEET

FOR THE YEAR ENDED 31 MARCH 2023

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Note 31 March 2023 31 March 2022 1 April 2021
Restated Restated
£ £ £
Fixed Assets
Tangible assets 8 90,440,184 87,537,115 83,041,552
Heritage assets 8 12,671,032 12,070,456 11,004,711
Right of use assets 9 68,759 - -
Intangible assets 10 954,002 637,171 372,901
Investment in subsidiary 11 2 2 2
104,133,979 100,244,744 94,419,166
Current Assets
Stock 12 276,117 274,514 284,591
Debtors 13 1,250,753 2,073,915 1,007,974
Cash at bank and in hand 14 3,573,919 4,040,514 4,056,220
5,100,789 6,388,943 5,348,785
Liabilities
Creditors - amounts falling due within one year 15 (3,752,065) (4,846,547) (3,561,177)
Net current assets 1,348,724 1,542,396 1,787,608
Total assets less current liabilities 105,482,703 101,787,140 96,206,774
Creditors - amounts falling due after more than one year 16 (29,856) - -
Provision for liabilities and charges 17 (832,576) (821,501) (804,850)
(862,432) (821,501) (804,850)
Total Net Assets 104,620,271 100,965,639 95,401,924
Represented by:
Restricted funds 18 22,456,180 21,928,491 20,976,368
Unrestricted funds 18 33,296,182 33,798,791 31,788,285
Revaluation reserve 18 48,867,909 45,238,357 42,637,271
104,620,271 100,965,639 95,401,924
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The notes on pages 67 to 82 form part of these accounts.

The accounts on pages 64 to 82 were approved by the Board of Trustees of National Museums NI on 11 October 2023 and are signed on its behalf.

C Jess K Thomson Vice-Chairman of the Board of Trustees Chief Executive

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NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

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Note 2023 2022
£ £
Cash flows from operating activities:
Net cash provided by (used in) operating activities 21 3,276,635 4,414,752
Cash flows from investing activities:
Interest received 8,254 121
Puchase of intangible fixed assets (318,956) (205,917)
Purchase of tangible fixed assets (3,392,881) (4,224,662)
Net cash provided by (used in) investing activities (3,703,583) (4,430,458)
Cash flows from financing activities:
-
Payments of lease liabilities (38,672)
-
Interest on lease liabilities paid (975)
Net cash provided by (used in) financing activities (39,647) -
Change in cash and cash equivalents in the reporting period (466,595) (15,706)
Cash and cash equivalents at 1 April 2022 21 4,040,514 4,056,220
Cash and cash equivalents at 31 March 2023 21 3,573,919 4,040,514
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Further detail to this cash flow statement is reported in Note 21. The notes on pages 67 to 82 form part of these accounts.

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NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE ACCOUNTS

1. ACCOUNTING POLICIES

Basis of accounting

These accounts have been prepared in accordance with the historical cost convention as modified by the revaluation of certain assets.

Without limiting the information given, the accounts meet the accounting and disclosure requirements of the Companies Act 2006, the accounting standards issued or adopted by the Accounting Standards Board and disclosure requirements issued by the Department of Finance in so far as those requirements are appropriate. They also comply with the Charities SORP (FRS 102) (2019).

The charity is a public benefit entity.

There are no material uncertainties related to events or conditions that cast significant doubt on the ability of National Museums NI to continue as a going concern.

The principal policies which have been adopted in the preparation of these accounts are as follows:

Incoming resources

Grant income from the Department for Communities is shown in the Statement of Financial Activities in the year in which it is received. Undrawn grant-in-aid is not available to be carried forward from one year to the next.

Other grant income is recognised as and when the conditions for its receipt have been met.

Deferred income will be matched and released as and when the conditions for its application have been met.

Gifts in kind donated, where a third party is bearing the cost, are included at the cost to the third party.

Admissions income, trading income and donations are accounted for on an accruals basis.

No amounts are included in the accounts for services donated by volunteers.

Resources expended

Resources expended are accounted for on an accruals basis. Expenditure is classified under principal charitable activities or costs of generating funds in order to provide more useful information to the users of the accounts.

Expenditure is classified to be in furtherance of charity objectives when it is directly attributable to the projects undertaken. All other expenditure is allocated either to support costs or costs of generating funds, as appropriate. Support costs comprise the costs of the Chief Executive's Office, Human Resources, Finance and Governance costs and are allocated to the charitable activities on a basis consistent with the use of the resources. The support costs are allocated according to the number of full time equivalent staff employed in each activity. Governance costs are the costs incurred to ensure proper standards of public accountability within National Museums NI and are made up of internal audit, external audit and professional fees associated with governance.

Leases

Future lease liabilities are recognised on the balance sheet at their present value, unless the lease term is 12 months or less or the underlying asset has a low value. Corresponding right-of-use assets have also been recognised on the balance sheet representing the economic benefits of National Museum NI's right to use the underlying leased assets. The interest element of the lease payment is charged to the Statement of Financial Activities over the period of the lease at a constant rate in relation to the balance outstanding. Depreciation is provided on the asset on a straight line basis over the period of the lease.

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NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE ACCOUNTS

Tangible Assets and Depreciation

Tangible fixed assets are stated at cost or valuation.

Depreciation is provided on all tangible fixed assets, other than land, assets under construction and heritage assets, at rates calculated to write off the cost or valuation, less estimated residual value, on a straight line basis for each asset over its expected useful life as follows:

Buildings	2% - 5%	per annum
Permanent exhibitions	2% - 20%	per annum
Computer equipment	5% - 20%	per annum
Fixtures and equipment	5% - 20%	per annum
Plant and machinery	5% - 15%	per annum
Motor vehicles	7% - 15%	per annum

Land and buildings are professionally revalued every year. With the exception of permanent exhibitions, the cost of all other fixed assets are restated annually to reflect their current value using the relevant price indices at the year end and to identify any impairment of value. The revaluation surplus or loss, net of the corresponding adjustment to accumulated depreciation, is credited to the revaluation reserve.

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period.

The minimum level for capitalising tangible fixed assets is £1,000, although lower valued items may be pooled and capitalised where they constitute a unit or group.

Heritage Assets

Additions to the collections acquired since 1 April 2001 have been capitalised and recognised in the balance sheet at cost or at valuation, where a donor has gifted the items.

Valuations of gifts are based on the amount paid by the donor or the opinion of National Museums NI's specialist staff. Valuations are not updated after initial recognition.

Collections acquired before 1 April 2001 are assets of historical and scientific importance held to advance National Museums NI's educational and cultural objectives. These assets were not capitalised in past accounting periods as reliable cost information was not available and a reliable valuation approach was not considered to be cost effective.

Heritage assets are not depreciated.

Nature & scale of heritage assets

The collections of National Museums NI are multidisciplinary, diverse and span all time periods, referencing Northern Ireland within, and to, the wider world. Historically, they have grown on the site-based framework of the Ulster Museum, the Ulster Folk & Transport Museum and the Ulster American Folk Park. However, since similar collection types can relate to more than one site, they are more appropriately classified within six broad and complementary subject areas. National Museums NI will continue to collect within these subject areas and the time periods and geographic areas to which they relate:

1. Art;

2. Emigration;

3. Folk Life and Agriculture;

4. Human History;

5. Natural Sciences; and

6. Transport, Industry and Technology.

Policy on acquisition and disposal of Heritage Assets

National Museums NI has a Collections Development Policy in place. This policy provides further information on the nature of heritage assets held. It is available online at www.nationalmuseumsni.org.

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NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE ACCOUNTS

Policy on management and preservation of heritage assets

Three policies outline National Museums NI s intent towards the development, management, care, conservation of, and access to the collections: the Collections Development Policy; the Collections Care and Conservation Policy; and the Collections Information and Access Policy. These policies were developed as part of National Museums NI s successful application renewal for Museum Accreditation in 2015, approved by the Board of Trustees in March 2015 and it is currently being reassessed and reviewed. In addition, a National Museums NI Collections Documentation Plan exists which outlines the tasks required to progress the management of the collections in alignment with the minimum industry standard known as SPECTRUM.

Intangible assets
Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is calculated, using the
straight-line method, to allocate the depreciable amount of the assets to their residual values over their estimated useful lives, as follows:
Software 4 - 5 years
On-Trade License 10 years
Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by National
Museums NI are recognised as intangible assets when the following critieria are met:
it is technically feasible to complete the software so that it will be available for use;
management intends to complete and use it;
it can be demonstrated how the software will generate probable future economic benefits;
adequate technical, financial and other resources to complete the development and to use the software are available; and
the expenditure attributable to the software during its development can be reliably measured.
Other development expenditures that do not meet these criteria are recognised as an expense as incurred.
The minimum level for capitalising intangible fixed assets is £1,000, although lower valued items may be pooled and capitalised where they
constitute a unit or group.
Stocks
Stocks have been valued at the lower of cost and estimated net realisable value.
Creditors
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.
Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the net
amount prepaid.

Cash at bank and in hand

Cash at bank and in hand include deposits held at call with banks and petty cash and float balances.

Liabilities and provisions

Liabilities and provisions are recognised as resources expended as soon as there is a legal or constructive obligation committing National Museums NI to expenditure.

Reserves Policy

National Museums NI forecasts to operate on an annual basis within a balanced funding formula of grant-in-aid, sponsorship and donations, and self-generated income. Annual operating surpluses (or deficits) are kept to a minimum and are transferred to the Unrestricted General Reserve at 31 March each year.

The Charities SORP requires capital grants to be included within the Statement of Financial Activities in the year in which they are receivable. The only expenditure against this is depreciation. Therefore during periods of high capital investment, surpluses will arise on the Statement of Financial Activities.

The balance on the Restricted General Fund available at 31 March 2023 was £22.5m. The Trustees consider that sufficient funds are held in an appropriate form to enable funds to be applied in accordance with any restriction imposed. The balance on the Unrestricted General Fund, together with this policy, is reviewed on an annual basis.

National Museums NI receives various types of funding which require separate disclosure. These are differentiated between restricted and unrestricted funds.

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NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE ACCOUNTS

Restricted Funds

Restricted funds are those funds which are subject to specific restriction imposed by the donor, by the purpose of an appeal or are received for a specified purpose. They comprise the following:

Collection acquisition fund - this fund represents the value of heritage assets funded by restricted donations and grant-in-aid since April 2001.

Government grant for fixed assets - this fund represents funding from the Department for the acquisition of fixed assets which following acquisition have no restriction on use and therefore transfer to the unrestricted funds.

Exhibition fund - this fund represents the net book value of National Museums NI's permanent exhibitions.

The Art Fund - the 2010 Art Fund Prize fund, to be used on a curatorial programme.

Curatorial Projects fund - funds to be used on specific curatorial projects.

O.L. Nelson Legacy fund - donated to National Museums NI for the specific purpose to purchase prints and drawings. Patrick Donald Legacy Fund - donated to National Museums NI for the specific purpose to purchase artefacts of Irish interest.

General fund - this fund is to enable National Museums NI to manage its working capital relating to restricted activities.

Unrestricted Funds

Unrestricted funds are those funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of National Museums NI. They comprise the following:

Capital reserve - represents fixed assets transferred to National Museums NI from the Ulster Folk and Transport Museum when National Museums NI was established under the Museums and Galleries (Northern Ireland) Order 1998. This fund is reduced annually by depreciation.

Revaluation reserve - this fund represents the revalution surplus or loss, net of the corresponding adjustment to accumulated depreciation on the revalued assets.

Government grant for fixed assets - this fund together with the capital fund and the revaluation reserve represents the net book value of all unrestricted assets, namely land and buildings, fixtures and equipment and motor vehicles.

General fund - this fund is to enable National Museums NI to manage its working capital relating to unrestricted activities.

Unrestricted Designated Fund

Board Reserve general fund - donation monies set aside to fund future projects approved by the Trustees, in the furtherance of our general objectives.

Board Reserve capital fund - proceeds of sale of assets to re-invest in capital projects approved by the Trustees.

Taxation

All income and expenditure is stated exclusive of VAT, which is fully recoverable.

National Museums NI has been granted charitable status by HM Revenue & Customs.

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NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE ACCOUNTS

2. DONATIONS AND LEGACIES

Donations: Gift Aid Other donations Gifts in kind: Donated assets Donated services Total	2023 £ 14,972 86,715 101,687 99,725 - 99,725	2022 £ 31,972 53,027
		84,999 442,670 -
		442,670

The income from donations of £101,687 are unrestricted (2021/22: £84,999). Gifts in kind income at March 2023 comprises donations to the collections of £99,725. At March 2022 this included donations to the collections of £442,670. In addition to above, is the contribution made by volunteers. Volunteers make a significant and diverse contribution to the success of National Museums NI. They support us in many areas of the organisation, in roles ranging from assisting curatorial staff, to assisting with visitor services and education staff.

3. INCOME FROM CHARITABLE ACTIVITIES

Grant-in-aid from the Department for Communities

Resource grant-in-aid (Unrestricted) Capital grant (Restricted) Total received Admissions Other grants Capital grants: Friends of the Ulster Museum National Heritage Memorial Art Fund Esmee Mitchell Trust IFPDA Foundation Total capital grants Revenue grants: Northern Ireland Environment Agency National Portrait Gallery British Library Peace IV National Heritage Lottery Fund Esmee Fairbairn National History Museum Tate (British Art Network) British Ecological Society Imperial War Museum Pilgrim Trust Other Total revenue grants	2023 £ 16,131,000 3,143,000 19,274,000 1,159,035 2023 £ 10,100 90,000 41,700 6,000 8,532 156,332 350,534 5,465 800 4,496 429,090 29,054 10,008 1,750 - 11,471 1,894 38,785 883,347 1,039,679	2022 £ 14,488,000 4,073,000
		18,561,000 895,019 2022 £ 6,500 99,990 140,000 8,000 -
		254,490
		253,693 - 138,119 174,246 104,850 - - 1,750 11,158 - - 37,269
		721,085
		975,575

With the exception of resource grant-in-aid all of the grants are held in a restricted fund (further detail on restricted funds is given in note 1).

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NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE ACCOUNTS

4. INCOME FROM OTHER TRADING ACTIVITIES

Sponsorships Trading: Shop Hire of facilities Consultancy fees Photographic sales Events income Franchise income	2023 £ 9,739 791,286 104,470 42,648 33,127 140,139 177,128 1,288,798	2022 £ 11,230 560,114 20,307 41,154 34,045 245,189 54,643
		955,452

Sponsorship income relates to specific programmes and events and is restricted. Trading income is unrestricted.

5. OTHER INCOME

OTHER INCOME
Other Income	2023 £ 191,976 191,976	2022 £ 23,867
		23,867

6. EXPENDITURE

Trading Care of Collections Curatorial & Education Experience & Enterprise Audience Development Operations	Other Indirect Depreciation & Staff costs Direct costs costs impairment £ £ £ £ 553,259 637,756 47,921 237,603 1,895,102 77,533 232,944 422,985 2,249,334 418,558 211,325 552,176 4,342,082 298,963 579,580 1,001,210 1,022,595 340,283 145,862 289,346 1,542,328 5,181,053 190,395 1,325,921 11,604,700 6,954,146 1,408,027 3,829,241	2023 Total £ 1,476,539 2,628,564 3,431,393 6,221,835 1,798,086 8,239,697 23,796,114	2022 Total £ 1,139,258 2,394,568 2,802,365 5,129,737 1,688,608 7,090,635
			20,245,171

Expenditure on charitable activities was £23,796,114 (2021/22: £20,245,171) of which £1,381,168 were restricted (2021/22: £994,270).

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NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE ACCOUNTS

6. EXPENDITURE (continued)

Staff costs

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2023 2022
£ £
Salaries and wages (includes temporary non-payroll staff) 8,507,520 7,983,906
Social security costs 765,040 645,820
Pension costs 2,281,896 2,085,262
Apprenticeship levy 25,664 23,460
Other staff costs 24,580 28,534
Total costs within expenditure 11,604,700 10,766,982
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Included in the above costs is £431,301 (2021/22: £763,161) paid in respect of employment agency staff. Included in other staff costs are £13,506 (2021/22: £11,883) of redundancy costs.

Staff costs of £310,068 (2021/22: £434,789) have been capitalised in relation to capital project management time and are not included in resources expended.

Further information on staff costs is contained within the Remuneration and Staff Report.

Support costs

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|||||||||| |---|---|---|---|---|---|---|---|---| |Trading|Curatorial|Care of|Experience|Audience|Operations| |& Education|collections|& Enterprise|Dev| |Dev|2023|2022| |£|£|£|£|£|£|£|£| |Finance/CEO office/| |Human Resources| |103,273|455,416|502,006|1,249,024|314,341|410,312|3,034,372|1,907,098| |Governance - included in| |above|13,656|31,736|24,311|57,544|16,629|76,206|220,082|86,895|

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Governance costs

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|||| |---|---|---| |2023|2022| |£|£| |Audit and accountancy fees|39,755|45,336| |Other governance costs|180,327|41,559| |220,082|86,895|

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7. NET INCOMING RESOURCES

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|||| |---|---|---| |Net incoming resources is stated after charging:|2023|2022| |£|£| |Auditors' remuneration:| |in respect of audit services|18,100|23,395| |in respect of internal audit|21,655|21,941| |Depreciation|3,613,531|3,236,608| |Amortisation|98,110|75,384| |Impairment|117,600|(388,834)| |(Profit)/Loss on Disposal of Fixed Assets|-|53,754|

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NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE ACCOUNTS

8. TANGIBLE FIXED ASSETS

Cost or valuation At 1 April 2022 Additions Disposals Impairment Charges Revaluation At 31 March 2023 Accumulated depreciation At 1 April 2022 Depreciation Disposals Revaluation At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022 Land and buildings at net book v Leasehold Improvements Long leaseholds	Land and Permanent Fixtures and Buildings Exhibitions Equipment £ £ £ 73,521,892 13,051,648 14,521,253 739,759 342,483 1,237,511 - - (1,329) (117,600) - - 1,709,039 - 909,756	Motor Vehicles £ 508,093 - - - 25,661 533,754 287,156 33,722 - 18,522	Sub Total £ 101,602,886 2,319,753 (1,329) (117,600) 2,644,456 106,448,166 14,065,771 3,576,937 (1,329) (1,633,397) 16,007,982 90,440,184 87,537,115	Heritage Assets £ 12,070,456 600,576 - - - 12,671,032 - - - - - 12,671,032 12,070,456	Total £ 113,673,342 2,920,329 (1,329) (117,600) 2,644,456
	75,853,090 13,394,131 16,667,191				119,119,198
	6,093 4,075,449 9,697,073 2,245,682 335,821 961,712 - - (1,329) (2,243,689) - 591,770				14,065,771 3,576,937 (1,329) (1,633,397)
	8,086 4,411,270 11,249,226	339,400 194,354 220,937 2022 £ 5,982 73,509,817 73,515,799			16,007,982
	75,845,004 8,982,861 5,417,965 73,515,799 8,976,199 4,824,180 alue comprise: 2023 £ 3,989 75,841,015 75,845,004				103,111,216 99,607,571

Included in land and buildings is a cleared site of approximately 0.25 acres located at Landseer Street, Belfast which has been valued at £482,400. National Museums NI's primary objectives per its Asset Management Strategy are deriving maximum value from its estate, with the sale of this respective asset is expected to take place within the 2023-24 financial year.

A full valuation by Land and Property Services (LPS) was carried out at 31 March 2023.

The valuations and basis of valuation, across all sites were as follows:

Property Ulster Museum Ulster Folk Museum Ulster Transport Museum Ulster American Folk Park Residential Centre Land at Landseer Street Stores

Value 27,697,150 Land at existing use value and buildings at depreciated replacement cost 14,313,297 Land at existing use value and buildings at depreciated replacement cost 19,547,373 Land at existing use value and buildings at depreciated replacement cost 5,426,840 Land at existing use value and buildings at depreciated replacement cost 1,623,955 Land at existing use value and buildings at depreciated replacement cost 482,400 Land at market value less disposal costs 6,750,000 Market value and Land at existing use value and buildings at depreciated replacement cost 75,841,015 Basis of Valuation

All other assets of National Museums NI were revalued in line with appropriate indices at 31 March 2023.

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NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE ACCOUNTS

8. TANGIBLE FIXED ASSETS (continued)

Heritage assets acquired since 1 April 2001 have been capitalised at original cost or valuation, if donated. FRS 30 requires disclosure of heritage assets in the previous four accounting periods, analysed between those that have been purchased and donated:

2018-19 2019-20 2020-21 2021-22 2022-23	Purchased £ 384,446 173,996 418,234 623,075 500,851 2,100,602	Donated £ 350,230 625,375 865,782 442,670 99,725 2,383,782	Total £ 734,676 799,371 1,284,016 1,065,745 600,576
			4,484,384

There were no disposals of heritage assets since 1 April 2001.

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NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE ACCOUNTS

9. RIGHT OF USE ASSETS

9.1 Quantitative disclosures around right-of-use assets

2022-23

Buildings Fixtures & Fittings £ £ Right-of-use assets As at 1 April 2022 - - Additions 88,648 16,705 Depreciation expense (32,236) (4,358) As at 31 March 2023 56,412 12,347 9.2 Quantitative disclosures around lease liabilities 2023 £ Buildings: Not later than one year 33,000 Later than one year and not later than five years 22,000 Later than five years - _Less:_interest element (723) Present Value of obligations 54,277 Other: Not later than one year 4,459 Later than one year and not later than five years 8,175 Later than five years - _Less:_interest element (229) Present Value of obligations 12,405 Total Present Value of obligations 66,682 9.3 Quantitative disclosures around elements in the Statement of Comprehensive Net Expenditure 2023 £ Expense related to short-term leases 6,770 9.4 Quantitative disclosures around cash outflow for leases 2023 £ Total cash outflow for leases 39,647	Buildings £ - 88,648 (32,236)	Fixtures & Fittings £ - 16,705 (4,358) 12,347 2023 £ 33,000 22,000 - (723) 54,277 4,459 8,175 - (229)	Total £ - 105,353 (36,594)
			68,759 2022 £ - - - -
			- - - - -
			-
			- 2022 £ - 2022 £ -

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NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE ACCOUNTS

10. INTANGIBLE FIXED ASSETS

Cost or valuation At 1 April 2022 Additions At 31 March 2023 Amortisation At 1 April 2022 Charge for year At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022	Computer software £ 592,390 402,091 994,481 141,957 94,784 236,741 £ 757,740 450,433	On-trade licence Total £ £ 186,738 779,128 12,850 414,941 199,588 1,194,069 - 141,957 3,326 98,110 3,326 240,067 £ £ 196,262 954,002 186,738 637,171

11. INVESTMENTS

Investment in Subsidiary - National Museums Northern Ireland Enterprises Limited

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2023 2022
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National Museums NI owns the whole of the issued share capital of National Museums Northern Ireland Enterprises Limited (NMNIEL), a registerd company. The registered office of NMNIEL is Administration Office, Ulster Folk Museum, Bangor Road, Holywood, Northern Ireland, BT18 0EY. At 30 September 2021, NMNIEL had net assets totalling £2.

12. STOCK

Shop goods for resale Academic publications for resale Maintenance materials and consumables Farm stock	2023 £ 201,790 22,300 28,975 23,052 276,117	2022 £ 208,892 25,701 24,579 15,342
		274,514

13. DEBTORS

Trade debtors Prepayments and accrued income Other debtors	2023 £ 119,672 642,792 488,289 1,250,753	2022 £ 109,897 741,686 1,222,332
		2,073,915

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NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE ACCOUNTS

14. CASH AT BANK AND IN HAND

Cash at bank and in hand CREDITORS (amounts falling due within one year) Trade creditors Other taxes and social security Accruals Deferred income Other creditors Lease liabilities	2023 £ 3,573,919 2023 £ 603,198 181,654 2,738,809 191,100 478 36,826 3,752,065	2022 £ 4,040,514 2022 £ 1,721,449 186,753 2,839,323 98,640 382 -
		4,846,547

15. CREDITORS (amounts falling due within one year)

Movement on deferred income Balance as at 1 April 2022 Amounts released from previous years Incoming resources deferred in the current year Balance as at 31 March 2023	£ Contract / grant 55,785 (6,592) 125,876 76,683	Sponsorship Event deposit £ £ 3,000 36,105 - (32,439) - 54,808 3,000 58,474	Total £ £ 3,750 98,640 (3,750) (42,781) 3,750 135,241 3,750 191,100 Advance admin charge

Deferred income will be matched and released as and when the contractual obligations have been discharged.

16. CREDITORS (amounts falling due after more than one year)

Lease liabilities	2023 £ 29,856 29,856	2022 £ -
		-

78

NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE ACCOUNTS

17. PROVISIONS FOR LIABILITIES AND CHARGES

Balance as at 1 April 2022 Provided in year Provisions not required written back Utilised in year Balance as at 31 March 2023	Payroll £ 821,501 - (8,925) - 812,576	Other Total £ £ - 821,501 20,000 20,000 (8,925) - - 20,000 832,576

Following Government guidance on a legal case, (PSNI v Agnew), a provision of £812,576 has been made. The Court of Appeal (CoA) judgment from 17 June 2019 determined that claims for Holiday Pay shortfall can be taken back to 1998. However, the PSNI has appealed the CoA judgment to the Supreme Court. This case was heard in December 2022 and a result is not expected to be heard until late 2023 but could result in a decision which either reduces the period of liability or confirms the full period back to 1998. The 2022/23 Holiday Pay provision has been estimated and covers the period from 1998 to 31 March 2023. There are still some very significant elements of uncertainty around this estimate for a number of reasons:

1. The appeal to the Supreme Court (as detailed above);

2. Lack of accessible data for years previous to 2011 and for some groups of staff beyond 2011;

3. Ongoing negotiations with Trade Unions;

4. A reliable estimate for the pension element is not yet available so this has not been factored into the provision; and

5. The provision is gross (inclusive of Employee National Insurance and PAYE). The partial release of the provision during the year reflects the decrease in Employer National Insurance Contributions (NI) from 15.05% to 13.8% during 2022/23.

A provision of £20,000 has been made for a potential settlement. There are uncertainties around the timing and value, however this is expected to be confirmed during 2023.

Analysis of expected timing of discounted flows

Less than one year Later than one year and not later than five years Later than 5 years Balance as at 31 March 2023	Payroll £ - 812,576 - 812,576	Other Total £ £ 20,000 20,000 - 812,576 - - 20,000 832,576

79

NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE ACCOUNTS

18. STATEMENT OF FUNDS

Restricted Funds Collection acquisition fund Government grant for fixed assets Exhibition fund Voluntary Exit Scheme fund Payroll Provision The Art Fund Curatorial Projects Fund O.L. Nelson Legacy P Donald Legacy National Heritage Memorial Fund General fund Unrestricted Funds Designated fund: Board Reserve fund Board Reserve capital fund Undesignated funds: Capital reserve Revaluation reserve Government grant for fixed assets General fund Total Funds	At 1 April 2022 Restated Income Expenditure Revaluation Transfers At 31 March 2023 £ £ £ £ £ £ 12,070,456 338,694 - - 261,882 12,671,032 (199,054) 2,586,180 - - (2,392,210) (5,084) 8,976,198 342,484 (335,821) - - 8,982,861 9,484 - - - - 9,484 (821,501) - - - 8,925 (812,576) 100,000 41,700 - - (41,700) 100,000 8,099 - - - - 8,099 476,992 - - - (38,652) 438,340 411,265 - - - (91,531) 319,734 - 90,000 - - (90,000) - 896,552 893,085 (1,045,347) - - 744,290
	21,928,491 4,292,143 (1,381,168) - (2,383,286) 22,456,180 125,274 101,687 - - - 226,961 473,719 - - - - 473,719 2,327,064 - (469,458) - - 1,857,606 45,238,357 - (648,301) 4,277,853 - 48,867,909 31,632,674 - (2,375,664) - 2,428,803 31,685,813 (759,940) 18,779,063 (18,921,523) - (45,517) (947,917)
	79,037,148 18,880,750 (22,414,946) 4,277,853 2,383,286 82,164,091 100,965,639 23,172,893 (23,796,114) 4,277,853 - 104,620,271

The transfer of £2,392,210 from Restricted Funds: Government grant for fixed assets, represents the acquisition of assets during the year which have no restrictions on use.

More detail on restated balances as at 1 April 2021 can be found in note 26.

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NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE ACCOUNTS

19. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS
Fixed Assets Current Assets Liabilities Total Net Assets	Restricted £ 21,653,893 3,519,545 (2,030,379)	Unrestricted £ 82,480,086 1,581,244 (2,584,118) 81,477,212	2023 Total £ 104,133,979 5,100,789 (4,614,497) 104,620,271	2022 Total £ 100,244,744 6,388,943 (5,668,048)
	23,143,059			100,965,639

20. CAPITAL COMMITMENTS

There were £200k of capital commitments at 31 March 2023 (2021/22: £311k) relating to multi year capital projects.

21. NOTES TO CASHFLOW

Reconciliation of net income to net cash inflow from operating activities Adjustments for: Depreciation Impairment Amortisation (Profit)/loss on disposal of fixed assets Decrease/(increase) in stock Decrease/(increase) in debtors Increase/(decrease) in creditors Increase/(decrease) in provision Deposit interest receivable Interest on lease liabilities paid Net cash provided by (used in) operating activities Analysis of cash and cash equivalents Cash at bank and in hand Analysis of change in net debt Cash Cash equivalents Overdraft facility Loans due within one year Loans due after one year Finance lease obligations Total Net income/(expenditure) for the reporting period as per the statement of financial activities	At 1 April 2022 £ 4,040,514 - - - - - 4,040,514	2023 £ (623,221) 3,613,531 117,600 98,110 - (1,603) 823,162 (754,740) 11,075 (8,254) 975 3,276,635 2023 £ 3,573,919 Cash flows £ (466,595) - - - - - (466,595)	2022 £ 1,704,762 3,236,608 (388,834) 75,384 43,549 10,077 (1,065,941) 782,617 16,651 (121) -
			4,414,752 2022 £ 4,040,514 At 31 March 2023 £ 3,573,919 - - - - -
			3,573,919

81

NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE ACCOUNTS

22. RELATED PARTY TRANSACTIONS

National Museums NI is a Non-Departmental Public Body funded by the Department for Communities (formerly the Department of Culture, Arts and Leisure for Northern Ireland).

The Chief Executive is a non executive director of Strategic Investment Board (SIB). During the year £144,505 was paid to SIB for secondee services to provide Asset Management support and £695 was received from SIB for corporate event bookings. The Chief Executive is a non executive director of Visit Belfast and during the year £6,300 was paid to Visit Belfast for annual partnerships and publications (2021/22: £3,060). Visit Belfast paid £nil to National Museums NI in the current year (2021/22: £nil). The Chief Executive is a non executive director of Tourism Ireland. During the year nothing was paid to Tourism Ireland (2021/22: £nil) and £2,720 was received as a donation (2021/22: £2,040).

National Museums NI has had a number of transactions with other Government Departments and other Central Government Bodies. These have been mainly with Central Procurement Directorate and Civil Service Pensions Branch within the Department of Finance

23. FINANCIAL INSTRUMENTS

National Museums NI's resources are met through grant-in-aid funding received from the Department for Communities and also through grant funding from other sources and from income generated through admissions, trading activities and donations. National Museums NI does not hold any complex financial instruments. The only financial instruments included in the accounts are receivables and payables, cash and short term investments. Trade receivables are recognised at fair value less a provision for impairment (bad debt). The provision is made when the National Museums NI is of the view that the debt may not be collectable in full, or in part, in accordance with the terms. The organisation has no borrowings and relies primarily on departmental grants for its cash requirements. Other than the financial assets and liabilities which are generated by day to day operational activities, National Museums NI holds no financial instruments.

Liquidity Risk

National Museums NI secures funding for inescapable core activities in advance of expenditure being committed. National Museums NI however relies on Self -Generated Income to discharge its full statutory obligations therefore is exposed to some liquidity risk.

Credit Risk

National Museums NI have credit policies and procedures in place and currently do not extend material credit facilities. National Museums NI is not therefore exposed to any material credit risk.

24. CONTINGENT LIABILITIES

There are currently no contingent liabilities to report.

25. EVENTS AFTER THE REPORTING DATE

There were no events since the end of the financial year requiring disclosure.

26. PRIOR YEAR ADJUSTMENTS

During the year it was noted that in prior periods there was a misallocation of fixed asset additions to the Revaluation reserve instead of the Government grant for fixed assets reserve, which resulted in an overstatement of the Revaluation reserve and an understatement of the unrestricted reserves.

The impact of the correction of this error on periods presented is as follows:

At 1 April 2021 per original signed accounts Adjustment as at 1 April 2021 Restated position at 1 April 2021 Net movement in funds year ended 31 March 2022 (as originally stated) Adjustment as at 31 March 2022 Restated position at 31 March 2022	Unrestricted funds Revaluation reserve Total £ £ £ 24,802,114 49,623,442 74,425,556 6,986,171 (6,986,171) - 31,788,285 42,637,271 74,425,556 (1,545,576) 6,157,168 4,611,592 3,556,082 (3,556,082) - 33,798,791 45,238,357 79,037,148

There were no other adjustments to any of the figures presented in the Statement of Financial Activities, Balance Sheet or other primary statements.

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