The Musical Museum - Charities report - 20.2
The Musical Museum - Charities report - 20.2
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
| REPORT OF THE TRUSTEES AND |
| UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 |
FOR |
| The Musical Museum |
The Musical Museum |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31 March 2020 |
Page |
Reference and Administrative Details | 1 |
Report of the Trustees | 2 | to | 3 |
Independent Examiner's Report | 4 |
Statement of Financial Activities | 5 |
Balance Sheet | 6 |
Notes to the Financial Statements | 7 | to | 11 |
The Musical Museum |
REFERENCE AND ADMINISTRATIVE DETAILS |
for the Year Ended 31 March 2020 |
TRUSTEES |
REGISTERED OFFICE |
REGISTERED COMPANY NUMBER |
REGISTERED CHARITY NUMBER |
INDEPENDENT EXAMINER | Bourke Accountants LLP |
Boundry House. Boston Road |
LONDON |
W7 2QE |
The Musical Museum (Registered number: 02401088) |
REPORT OF THE TRUSTEES |
for the Year Ended 31 March 2020 |
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2020. The trustees have adopted the provisions of 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) (effective 1 January 2019). |
OBJECTIVES AND ACTIVITIES |
Objectives and aims |
| The objects for which the Musical Museum is established, as defined by its memorandum and articles of association, is:- |
| to advance the education of the public through the operation of a museum which: |
| * conserves, preserves, and develops nationally important collections related to the history of music reproduction for the benefit of the enjoyment and educational advancement of the public and the visitors to the museum; and |
| * informs, engages and entertains the public regarding the evolution of music reproduction through the use offset-playing instruments, and the provision of educational and musical demonstrations, talks, exhibitions, live performances other forms of information and written communication; and |
| * is focused on the conservation, preservation, promotion and presentation of the theatre pipe organ as an instrument with a significant role in the development of light music on radio and in the cinema and as a musical art form through concerts and silent film programmes and to provide educational opportunities for the general public and specialist groups world-wide arising from such musical and educational activities. |
| As a museum accredited by the Arts Council, the Musical Museum complies with applicable professional curatorial and conservation standards in the maintenance of its collections, while maintaining public access in order to achieve its charitable purpose. |
| All activities undertaken by the Musical Museum have been in support of its charitable purpose; similarly all the commercial activities undertaken by the Musical Museum (Trading) Ltd have the objective of generating funds to support the Museum's operation. |
| The Museum's trustees have ensured that the Museum's operation during the year in question is fully consistent with the Charity Commission's guidance on public benefit. |
ACHIEVEMENT AND PERFORMANCE |
Charitable activities |
| During the year the Museum has continued to be open to the general public on Tuesdays, Fridays, Saturday and Sundays and on additional days to pre-booked groups. Live presentations of the instruments explaining their history, social context and technology have been offered to the public at regular scheduled times using specialist tour guides. The level of visitor satisfaction, as monitored by the visitor feedback form and reviews posted on the internet (e.g. trip advisor) continues to be very high. |
| As an independent (i.e. non-funded) museum, the Musical Museum accepts donations for admission, and regularly benchmarks its recommended donation against similar organisations. In order to increase accessibility to the collections to the local population, residents of the London Borough of Hounslow enjoy a 50% reduction in recommended donations. |
| As well as live presentations in the museum galleries, the museum holds a range of events based around the Wurlitzer to raise public awareness of cinema organs. These include organ concerts, silent films, classic movies introduced by 15 minutes of music on the Wurlitzer and in addition to regular tea dances the Museum's Concert Hall is used by other musical and special interest groups often related to the Museum's collections. The Museum's Christmas Concert series now accounts for approximately 33% of its trading activities. |
FINANCIAL REVIEW |
Financial position |
The routine running costs of the museum were some £203,520 (2019 - £148,150). The museum had an overall surplus of £36,369 (2019 - deficit of £95,444). The higher expenditure was partly offset by the receipt of a legacy of £160,500. Details of the movement in fixed assets and funds during the year are set out in the notes to the financial statements. In accordance with established accountancy policies, the financial results do not take account of the significant voluntary labour at all levels of the operation of the museum. |
Reserves policy |
| The Musical Museum Reserves Policy is to maintain sufficient level of reserves to enable normal operating activities to continue over a period of up to 6 months should a shortfall in income occur and to take account of potential risks and contingencies that may arise from time to time. If the board deem the drop in income is permanent and operations would have to cease it also allows for the cost needed to close the museum and effectively dispose of the assets etc. The reserves policy includes normal running costs but excludes costs in relation to restricted or endowment funds. The reserve is shown as a separate "designated fund" for the 2019-20 accounts for transparency and is calculated to be £120k as at the 31st March 2020; the board will review this policy and the level of reserves required at least annually". |
The Musical Museum (Registered number: 02401088) |
REPORT OF THE TRUSTEES |
for the Year Ended 31 March 2020 |
FUTURE PLANS |
Following a detailed review by the board of directors and a review of its business plan in June of 2019 it had become very apparent that the museum was reliant on legacies for some of its running costs. Given the uncertain nature of these events the directors have took the decision to focus on establishing methods of raising funds from normal operations to cover its standard running costs along with its continuing focus on seeking funding from external sources (e.g. grants). |
During 2019/20 we have continued to develop marketing and promotional opportunities to increase visitor numbers, hire of the facilities and for concerts and special events. However, these activities have to some extent been hampered by the very unusual conditions imposed by the Covid 19 lock down. |
The decision taken by the board of directors to move the Museum's public opening days to Thursdays, Fridays, Saturdays and Sundays has worked very well both in terms of marketing and advertising and also managing the Museum generally. The Museum remains closed to the public on Tuesdays, which has provided space and time for the Museum's volunteers and experts to perform maintenance and conservation work without interruption, the result of which is that the Museum has now more instruments working or under active restoration than at any time previously. |
Future Strategy |
The broad strategies and objectives of the Museum remain unchanged. However, the board recognises the continued pressing need to improve the long-term financial health of the organisation. The "recovery strategy" implemented by the board in June 2019 will generate sustainable growth and income to ensure the preservation of the collection into the future. By focusing on a number of key areas in particular, marketing, branding and business development, fundraising, digital by default and revised engagement with new and existing staff and new and existing customers. The appointment of new trustees brings a wealth of opportunity to develop these areas as part of the on-going implementation and on-going revision of the recovery strategy. Clearly, the impact of Covid 19 has had a marked effect on the income streams for the Museum and is likely to do so for some time yet. Therefore, the strategy is being revised in line with the current situation to ensure the safety and preservation of the core collection for future generations. |
Future Commitments |
Other than the commitments under the 50-year lease to London Borough of Hounslow and the National Heritage Lottery Fund for its grant, the museum has no other future financial commitments. |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
The Musical Museum was founded in 1963 by the late Frank Holland M.B.E. It was registered as a charity in 1965. In 1989 it was converted (with Charity Commission approval) to a company limited by guarantee and registered as a charity. It is that structure under which the Musical Museum operates today. The original memorandum and articles of association (dated 5th May 1989) were replaced by a special resolution adopting updated article of association dated the 11 November 2018.These documents provide the framework for the aims and objectives of the organization and of the operation of the company. |
Recruitment and appointment of new trustees |
| The directors of the museum are either directly elected from the membership of the museum or by external recruitment. They bring to the museum relevant qualifications and experience gained from their professional employment.The induction process for new trustees covers the current guidance for charity trustees published by the Charity Commission, the museum's operation, its mission statement, vision and values and its business plan. The membership is notified of the nomination and retirement of directors and are invited to elect them at general meetings. |
Risk management |
| The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. |
FUNDS HELD AS CUSTODIAN FOR OTHERS |
The Musical Museum and its trustees do not act as custodian trustees as defined in charities SORP (FRSSE). |
Approved by order of the board of trustees on |
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF |
THE MUSICAL MUSEUM |
Independent examiner's report to the trustees of The Musical Museum ('the Company') |
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2020. |
Responsibilities and basis of report |
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act'). |
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act. |
Independent examiner's statement |
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of FCCA which is one of the listed bodies. |
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: |
1. | accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or |
2. | the accounts do not accord with those records; or |
3. | the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or |
4. | the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)). |
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. |
Joseph Bourke |
FCCA |
Bourke Accountants LLP |
Boundry House. Boston Road |
LONDON |
W7 2QE |
26 October 2020 |
The Musical Museum |
STATEMENT OF FINANCIAL ACTIVITIES |
for the Year Ended 31 March 2020 |
31.3.20 | 31.3.19 |
Unrestricted | Restricted | Total | Total |
funds | funds | funds | funds |
Notes | £ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Charitable activities |
Investment income | 2 |
Total |
EXPENDITURE ON |
Charitable activities |
Net gains/(losses) on investments | ( | ) | ( | ) |
NET INCOME/(EXPENDITURE) | ( | ) | ( | ) |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | 1,600,258 |
The Musical Museum (Registered number: 02401088) |
BALANCE SHEET |
31 March 2020 |
31.3.20 | 31.3.19 |
Unrestricted | Restricted | Total | Total |
funds | funds | funds | funds |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 6 | ( | ) |
Investments | 7 |
CURRENT ASSETS |
Debtors | 8 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 9 | ( | ) | ( | ) | ( | ) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
NET ASSETS |
FUNDS | 10 |
Unrestricted funds | 348,091 | 278,368 |
Restricted funds | 1,321,890 |
TOTAL FUNDS | 1,600,258 |
| The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2020. |
| The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2020 in accordance with Section 476 of the Companies Act 2006. |
The trustees acknowledge their responsibilities for |
(a) | ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. |
The financial statements have been prepared in accordance with and delivered in accordance with the special provisions applicable to small charitable companies subject to the small companies regime. |
The financial statements were approved by the Board of Trustees and authorised for issue on |
The Musical Museum |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31 March 2020 |
1. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets. |
The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland': |
• | the requirements of Section 7 Statement of Cash Flows. |
Income |
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. |
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 a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. |
Tangible fixed assets |
| Depreciation is provided at the following annual rates in order to write off each asset over is estimated useful life |
| Short Leasehold - in accordance with the lease term |
Taxation |
| The charity is exempt from corporation tax on its charitable activities. |
Fund accounting |
| Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. |
| Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. |
| Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. |
Collection of instruments |
| For financial statement purposes no value is attributed to the collection. |
2. | INVESTMENT INCOME |
31.3.20 | 31.3.19 |
£ | £ |
Deposit account interest |
Investment Interest | 5,905 | 4,977 |
3. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
31.3.20 | 31.3.19 |
£ | £ |
Depreciation - owned assets |
Deficit on disposal of fixed assets |
The Musical Museum |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2020 |
4. | TRUSTEES' REMUNERATION AND BENEFITS |
Fees of £3,850 (2019 - £3,900) were paid to C. Barber for the Christmas concerts occuring in the relevant respective financial years and certain group visits were recorded as cost of sales in Musical Museum Trading Ltd |
Trustees' expenses |
Trustees out-of-pocket expenses for travel and overnight accommodation have been reimbursed against receipts. |
5. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted | Restricted | Total |
funds | funds | funds |
£ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Investment income |
Total |
EXPENDITURE ON |
Charitable activities |
Net gains on investments |
NET INCOME/(EXPENDITURE) | ( | ) | ( | ) | ( | ) |
RECONCILIATION OF FUNDS |
Total funds brought forward | 337,370 | 1,358,332 |
TOTAL FUNDS CARRIED FORWARD | 278,368 | 1,321,890 | 1,600,258 |
6. | TANGIBLE FIXED ASSETS |
Short |
leasehold |
£ |
COST |
At 1 April 2019 and 31 March 2020 |
DEPRECIATION |
At 1 April 2019 |
Charge for year |
At 31 March 2020 |
NET BOOK VALUE |
At 31 March 2020 |
At 31 March 2019 |
The Musical Museum |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2020 |
7. | FIXED ASSET INVESTMENTS |
Shares in |
group | Listed |
undertakings | investments | Totals |
£ | £ | £ |
MARKET VALUE |
At 1 April 2019 | 163,628 |
Revaluations | ( | ) | (23,138 | ) |
At 31 March 2020 | 140,490 |
NET BOOK VALUE |
At 31 March 2020 | 2 | 140,488 | 140,490 |
At 31 March 2019 | 2 | 163,626 | 163,628 |
There were no investment assets outside the UK. |
The company's investments at the balance sheet date in the share capital of companies include the following: |
Registered office: 399 High St, Brentford, Middlesex, TW8 0DU |
Nature of business: Commercial Activities of the Musical Museum |
% |
Class of share: | holding |
£ | £ |
Aggregate capital and reserves |
8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.20 | 31.3.19 |
£ | £ |
Amounts owed by group undertakings |
9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.20 | 31.3.19 |
£ | £ |
Trade creditors |
Accrued expenses |
10. | MOVEMENT IN FUNDS |
Net | Transfers |
movement | between | At |
At 1.4.19 | in funds | funds | 31.3.20 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 278,368 | 69,723 | (120,000 | ) | 228,091 |
Contingency reserve | - | - | 120,000 | 120,000 |
69,723 |
Restricted funds |
Heritage Lottery Fund | 1,311,840 | (33,354 | ) | - | 1,278,486 |
Memorial Fund | 10,050 | - | - | 10,050 |
(33,354 | ) |
TOTAL FUNDS | 36,369 | 1,636,627 |
The Musical Museum |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2020 |
10. | MOVEMENT IN FUNDS - continued |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Gains and | Movement |
resources | expended | losses | in funds |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 263,027 | (170,166 | ) | (23,138 | ) | 69,723 |
Restricted funds |
Heritage Lottery Fund | - | (33,354 | ) | - | (33,354 | ) |
TOTAL FUNDS | ( | ) | ( | ) | 36,369 |
Comparatives for movement in funds |
Net |
movement | At |
At 1.4.18 | in funds | 31.3.19 |
£ | £ | £ |
Unrestricted funds |
General fund | 292,525 | (14,157 | ) | 278,368 |
Collection Fund | 44,845 | (44,845 | ) | - |
337,370 | (59,002 | ) | 278,368 |
Restricted funds |
Heritage Lottery Fund | 1,348,282 | (36,442 | ) | 1,311,840 |
Memorial Fund | 10,050 | - | 10,050 |
1,358,332 | (36,442 | ) | 1,321,890 |
TOTAL FUNDS | 1,695,702 | (95,444 | ) | 1,600,258 |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Gains and | Movement |
resources | expended | losses | in funds |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 51,274 | (66,863 | ) | 1,432 | (14,157 | ) |
Collection Fund | - | (44,845 | ) | - | (44,845 | ) |
51,274 | (111,708 | ) | 1,432 | (59,002 | ) |
Restricted funds |
Heritage Lottery Fund | - | (36,442 | ) | - | (36,442 | ) |
TOTAL FUNDS | 51,274 | (148,150 | ) | 1,432 | (95,444 | ) |
The Musical Museum |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2020 |
10. | MOVEMENT IN FUNDS - continued |
A current year 12 months and prior year 12 months combined position is as follows: |
Net | Transfers |
movement | between | At |
At 1.4.18 | in funds | funds | 31.3.20 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 292,525 | 55,566 | (120,000 | ) | 228,091 |
Collection Fund | 44,845 | (44,845 | ) | - | - |
Contingency reserve | - | - | 120,000 | 120,000 |
337,370 | 10,721 | - | 348,091 |
Restricted funds |
Heritage Lottery Fund | 1,348,282 | (69,796 | ) | - | 1,278,486 |
Memorial Fund | 10,050 | - | - | 10,050 |
1,358,332 | (69,796 | ) | - | 1,288,536 |
TOTAL FUNDS | 1,695,702 | (59,075 | ) | - | 1,636,627 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: |
Incoming | Resources | Gains and | Movement |
resources | expended | losses | in funds |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 314,301 | (237,029 | ) | (21,706 | ) | 55,566 |
Collection Fund | - | (44,845 | ) | - | (44,845 | ) |
314,301 | (281,874 | ) | (21,706 | ) | 10,721 |
Restricted funds |
Heritage Lottery Fund | - | (69,796 | ) | - | (69,796 | ) |
TOTAL FUNDS | 314,301 | (351,670 | ) | (21,706 | ) | (59,075 | ) |
Heritage lottery fund |
This is a restricted fund for the specific works required on the new museum building. The Heritage Lottery Fund has a legal charge over the leasehold property held by the charity. |
Memorial fund |
This is a restricted fund for specific expenditure. The income is used to promote the development of old |
automatic musical instruments. |
Contingency Fund |
The contingency fund was set up in the current year and is in line with the Charities Commission guidance in clearly identifying the costs required in the event of the charity having to close. Although at present the charity is not close to this position the trustees felt it prudent to hold the relevant figure as a separate designated reserve |
11. | RELATED PARTY DISCLOSURES |
| During the year , the company received covenanted income of £Nil (2018 - £Nil) from its subsidiary, the Musical Museum (Trading) Limited. |
| At the year end £95,288 (2019- £34,706) was owed to the charity by its subsidiary. |