## **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**
**----- Start of picture text -----**
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
**----- End of picture text -----**
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.
64
## **NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023**
## **BALANCE SHEET**
## **FOR THE YEAR ENDED 31 MARCH 2023**
**----- Start of picture text -----**
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
**----- End of picture text -----**
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
65
## **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**
**----- Start of picture text -----**
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
**----- End of picture text -----**
Further detail to this cash flow statement is reported in Note 21. The notes on pages 67 to 82 form part of these accounts.
66
**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.
67
## **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.
69
## **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.
70
**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).
71
**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).
72
**NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023**
## **NOTES TO THE ACCOUNTS**
**6. EXPENDITURE (continued)**
## **Staff costs**
**----- Start of picture text -----**
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
**----- End of picture text -----**
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**
**----- Start of picture text -----**
||||||||||
|---|---|---|---|---|---|---|---|---|
|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|
**----- End of picture text -----**
## **Governance costs**
**----- Start of picture text -----**
||||
|---|---|---|
|2023|2022|
|£|£|
|Audit and accountancy fees|39,755|45,336|
|Other governance costs|180,327|41,559|
|220,082|86,895|
**----- End of picture text -----**
**7. NET INCOMING RESOURCES**
**----- Start of picture text -----**
||||
|---|---|---|
|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|
**----- End of picture text -----**
73
**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.
74
**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.
75
**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**
**£**
-|
76
**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
**----- Start of picture text -----**
2023 2022
£ £
2 2
**----- End of picture text -----**
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|
77
**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.
80
**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.
82