REGISTERED COMPANY NUMBER: 00013606 (England and Wales ...

REGISTERED COMPANY NUMBER: 00013606 (England and Wales)REGISTERED CHARITY NUMBER: 212538

REPORT OF THE TRUSTEES AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

FOR

THE PALESTINE EXPLORATION FUND

Hartley Fowler LLPStatutory Auditors

Chartered Accountants44 Springfield Road

HorshamWest SussexRH12 2PD


CONTENTS OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2019

Page

Report of the Trustees 1 to 9

Report of the Independent Auditors 10 to 11

Statement of Financial Activities 12

Statement of Financial Position 13

Notes to the Financial Statements 14 to 22

THE PALESTINE EXPLORATION FUND (REGISTERED NUMBER: 00013606)

REPORT OF THE TRUSTEESFOR THE YEAR ENDED 31 DECEMBER 2019

The Board of Trustees presents its annual report and audited financial statements for the year to 31 December 2019.The legal and administrative information set out on page 1 forms part of this report. The financial statements complywith current statutory requirements, the memorandum and articles of association and the Statement of RecommendedPractice - Accounting and Reporting by Charities in accordance with the Financial Reporting Standard applicable in the UKand Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIESObjectives and aimsThe objectives of the Palestine Exploration Fund ("PEF" or "The Fund") are as follows:

The advancement of education of the public in the history, archaeology (including biblical aspects), art, languages,ethnology, geography, natural and earth sciences of the Levant by the promotion of research into relevant fields of studyas the trustees shall decide and by publishing the useful results thereof.

FINANCIAL REVIEWThe Statement of Financial Activities shows that total income in 2019 at £209,163 was considerably lower than in 2018but that year included an exceptionally high level of donations. Stripping out the effect of the donations it will be seenthat income increased by some 6% to £205,738. Against this was set expenditure of £221,111 to produce an operatingdeficit of £11,948. Expenditure in 2019 was still to some extent affected by the transition from Marylebone.

The capital value of the Fund's Investments showed an increase of £642,732 in 2019 compared with a reduction in£284,416 in the previous year. This is added to the operating outcome to produce the overall outcome for the year - asurplus of £630,784 compared to the deficit of £201,701 in the previous year.

The PEF's balance sheet shows a strong financial position with investments of some £4.7m and no borrowings. The PEF'spremises in Greenwich, which has a balance sheet amount of £3,194,284 are thought to be worth approximately £3.5million.

The budget for 2020 envisages a breakeven operating outcome i.e. excluding net gains or losses on investments. Thistakes no account of donations, which this year could well be significant.

-1-



OBJECTIVES AND ACTIVITIESSignificant activitiesThe year ending 31 December, 2019 was another active one for the Fund, as we opened our new premises to visitorsand researchers, and worked towards developing a modern research centre and public museum.

Free Lectures held at the British Museum

10th January (Jointly with CBRL)Contexts and Connections: Exploring Petra in 1929Amara Thornton (Honorary Research Associate, UCL Institute of Archaeology)

7th March (Jointly with AIAS)The Tomb of Christ in the Church of the Holy Sepulchre: problems of restoration and investigation in 2016Martin Biddle, University of Oxford

4th April (Jointly with ASTENE)"Shrieks, Trills, and Squeaks": The Cacophonous History of the Ottoman Band of JerusalemMichael Talbot, University of Greenwich

6th June - AGM LectureThe Life and Legend of the Sultan SaladinJonathan Phillips, Royal Holloway, University of London

12th September Iain Browning Memorial LectureExcavations at Solomon's Pools, Bethlehem, and the Water Supply to Jerusalem in AntiquityMatt Adams, Albright Institute, Jerusalem

7th NovemberThe Islamic Baydha Project: The Archaeology of Settlement in Post-urban PetraMicaela Sinibaldi, Cardiff University

5th December Evans Memorial LecturePictures Painted by the Sun: Photographing Jordan 1985 - 2015Jane Taylor, Independent

Grantmaking£14,000 was available for grant awards in 2019 (£12,000 from the budget, and £2,000 rollover from 2018)11 applications were received/. A total of £10,560 was awarded to 5 applicants, leaving a surplus of £3,440. £3,000 ofthis surplus was set aside for a new Fellowship initiative with the Albright Institute in Jerusalem to be awarded in 2020.

James Fraser'The Khirbet Ghozlan Excavation Project: Investigating Bronze Age Horticulture in the Jordan Valley Escarpment'£2,000

Pascal Flohr'More than Meet the Eye: Locating Late Neolithic sites on the Kerak Plateau'£1,060

Jeffrey Auerbach'Exploring Palestine, 1865 - 1885: Public - Private Partnership and the origins of the British Mandate in Palestine'£2000

Yorke Rowan'Eastern Badia Archaeological Project: Wisad Pools'£3,500

Omar J Nasser Khoury'Documentation of the British Museum's Palestine Textile Collection:A Knowledge Exchange Fellowship'£2,000

-2-



OBJECTIVES AND ACTIVITIESVolunteersDuring 2019 the PEF benefited from the industry and talents of the following volunteers and interns:

Penny ButlerMaryann BowenJohn MacDermotGabriele Fyjis-WalkerBen BoltonRaffael BellinoBeeza HabibAnne CaldwellOliver ClarkMary Pelletier

-3-



OBJECTIVES AND ACTIVITIESPalestine Exploration QuarterlyPEQ was published by Taylor & Francis in 2019.

Linda Hulin was the Editor of the PEQ throughout 2019. Helen Dixon was replaced as Assistant Editor by Adam Fraser inOctober. Elisabeth Sawerthal was the Reviews Editor until June, when she was temporarily replaced by John Ritzema.The PEQ continued to include articles, reviews and reports of high quality and wide interest. Four issues of PEQ appearedin 2019, including a double issue of numbers 3 and 4.

The first, PEQ 151.1, carried a picture of 'View of Solomons Pools, photograph by Photochrom Co., 1890-1900, PEFcatalogue number PEF-P-2630 illustrating the Notes from the Field report 'Survey and Excavations at Solomon's Pools,Palestine: 2018 Preliminary Report' by Mathew J. Adams, Mark Letteney, and Max T. B. Peers. A second Field Report was'A New Bronze Age Shipwreck with Ingots in the West of Antalya - Preliminary Results' by Hakan Öniz. Articles publishedwere 'A Zoomorphic Sickle Terminal from the Natufian Site of Wadi Hammeh 27 in Jordan' by Rosie Robertson, Phillip C.Edwards, and Rosemary Coates, 'Petra, Taxes and Trade Reconsidered in the Light of the Petra Church Archive' byMohammed Al-Nassarat, and 'Two More Nabataean Inscriptions from the Syro-Jordanian Harrah Desert' by AliAl-Manaser and Jérôme Norris. The Minutes of the AGM of the 7th June 2018 were published. The Editorial was 'In Praiseof Learned Societies and their Journals' by Linda Hulin.

The second issue, PEQ 151.2, carried a cover image of 'Painted Philistine vase from the Central City Area of BethShemesh, side view. 1912', Original drawing by Francis G. Newton, text by Duncan Mackenzie. PEF catalogue numberPEF-DA-MACK-150, to illustrate the article 'The Inhabitants of Philistia:' On the Identity of the Iron I Settlers in thePeriphery of the Philistine Heartland' by Avram Faust. Other articles were 'A Short History of Mulabbis (Petah Tikva,Israel)' by Roy Marom, and 'The Murder of James Leslie Starkey: Addendum to the Paper of Yosef Garfinkel' by DavidUssishkin. The Editorial was by Casey Strine, and the lecture card for the second half of 2019 was published.

The third and fourth double issue of 2019, 150.3 &4, carried a photograph from the PEF's collections 'A View of theHuleh Basin taken from Hazor' by John Garstang, 1926 PEF catalogue number PEF-P-GAR-Huleh 1926, to illustrate thearticle 'Changing Allegiances in Disputed Borderlands: Dan's Political Status on the Eve of the Aramean Invasion' by YifatThareani. Other articles were: 'Reconsidering the Ancient Name of Nebi Samwil' by Nadav Na'aman and 'The K8 House: ANew Domestic Space from the Iron Age II at Tell Halif, Israel' by Latif Oksuz, James W. Hardin and Jared Wilson. In theNotes from the Field section was 'Antalya-Kumluca Bronze Age Shipwreck 2019 Studies - First Analysis' by Hakan Önizand Grant Reports on 'Documentation on the British Museum's Palestine Textile Collection March -June 2018' by OmarJoseph Nasser-Khoury, 'Eastern Badia Archaeological Project Report to Palestine Exploration Quarterly' by Yorke M.Rowan, and 'The Islamic Baydha Project, Baydha (Petra Region), Seasons 2018.' By Micaela Sinibaldi. There were twoObituaries, the first being 'Terence Croft Mitchell 1929-2019' by Avantika Clark, and the second 'Dr. Andrea Zerbini, 1984- 2019' by Chiara Fiaccavento. The Minutes of the 2019 AGM on the 6th June were published, as were the lecture detailsfor the first half of 2020. The Editorial was 'The PEF and the Ethics of Studying the Past' by Michael Press.

Reviews and Short Notices of important new publications are published in the PEQ with the help of the Reviews EditorsElisabeth Sawerthal and John Ritzema. Eight reviews and short notices were published in the PEQ in 2019.

MembershipOverall subscription to the Fund has risen in the past year, and the balance has shifted from 272 individuals and 187institutions, a total of 459 as of 31st December 2018, to 279 individuals and 187 institutions as of 31st December 2019, atotal of 466, a gain of 7 individual members overall. The figure for institutional subscriptions stays the same, seventy-fiveof the institutional subscriptions were through Taylor & Francis's electronic only journal subscription service and 112 haveprint and online access. There were 69 institutional journal exchanges, a gain of 1 from 2018.Many of the individual members who left the PEF were student members who did not renew their membership once theirstudies were completed. Taylor & Francis are confident that the journal is doing well, and our income from royalties fromthe journal remains stable.

LibraryBooks donated or received for review or purchased for the library were listed in the 'Acknowledgements' in the back ofPEQ Vol. 151 Issues 1- 4. In total, 26 new titles were received. The library was managed by the Librarians, ElisabethSawerthal and John Ritzema.

Use of Archives and CollectionsIn 2019, the archives and collections opened once again to visitors and researchers, with 224 visiting in total.

-4-



OBJECTIVES AND ACTIVITIESThe PEF continues to run an active programme of documentation and curating of its collections. In 2019, projects haveincluded the continued audit of the archaeological collections, and the ongoing sorting rehousing and cataloguing of theDocumentary and Photographic Archives, including the sorting and rehousing of the PEQ Archive, the BSAJ Archive, theNigel Hepper Archive, the Iain Browning Archive, the PEF Office Archive, the PEF's lantern slide collection, and thecataloguing of John Garstang's photographs of archaeological sites in the Levant. New acquisitions include the RogersonPhotographic and Film Archive, the Philip R. Davies Photographic Archive, the Tony Axe Slide Archive, and the Terry BallPhotographic Archive. More material to be added to the Belmont Excavation archive, the Pitt Photographic Archive, theBSAJ Documentary Archive, and the Garstang Lantern Slide Collection. This material comes to us following the goodoffices and generosity of Rosalind Rogerson, Birgit Manze-Davies, Tony Axe, Stephen Ball, Denys Pringle, Paddy deCourcey-Ireland, and Andrew Nicoll.The PEF loaned items from its Scientific Equipment, Manuscript Map and Watercolour collections to an exhibition entitled'Life at the Dead Sea' at the Staatliches Museum für Archäologie Chemnitz. This exhibition will also be displayed at theMuseum un der Kaiserpfalz Am Ikenbergm in Paderborn from April to September 2020. Work on the PEF's own publicexhibition was completed, along with additional AV slide shows and presentations.

PEF PublicationsIn 2019, the following titles have continued to be sold: The Levant in Transition (PEF Annual IX) edited by Peter J. Parr,The Hellenistic Paintings of Marisa (PEF Annual VII) by David M. Jacobson, Stone Vessels in the Levant (PEF Annual VIII)by Rachael Thyrza Sparks, Mapping Jordan Through Two Millennia (Annual X) by John R. Bartlett, Tourists Travellers andHotels in Nineteenth Century Jerusalem (PEF Annual XI), by Shimon Gibson Yoni Shapira and Rupert L. Chapman, Villainor Visionary? R.A.S. Macalister and the Archaeology of Palestine (PEF Annual XII) edited by Samuel R. Wolff, TheExcavations of Beth-Shemesh, November - December 1912 (PEF Annual XIII) by Duncan Mackenzie, Shlomo Bunimovitz,Zvi Lederman, and Nicoletta Momigliano, Dolmens in the Levant (PEF Annual XIV), by James Fraser, Distant Views of theHoly Land by David M. Jacobson and Felicity Cobbing

Copies of Beyond the River: Photographs of Ottoman Transjordan, by R.S. Abujaber and F. Cobbing continued to sell,along with earlier publications including Beneath the Church of the Holy Sepulchre Jerusalem by Joan E. Taylor andShimon Gibson. A reprint of Below the Temple Mount in Jerusalem, (BAR International Series 637) by David Jacobsonand Shimon Gibson is planned for spring 2020.Roman-Period and Byzantine Nazareth and its Hinterland (PEF Annual XV) by Ken Dark, will appear early in 2020 and asecond volume The Sisters of Nazareth Convent, a Roman-period, Byzantine and Crusader site in central Nazareth (PEFAnnual XVI), is scheduled for publication later the same year. PEF Annual XVII by Dr. Dino Politis is currently underreview and a volume by Dr. Carol Palmer is in the writing. The contract with Taylor and Francis/Routledge has beenrenewed this year and will last for the next three years.

Website and Social Media D. Pett has continued to maintain the PEF website over the last auditing period. Members of the PEF ExecutiveCommittee and Staff are increasingly involved in the day to day management of the website. A New website will belaunched in 2020. In addition, the PEF social media accounts (managed by Yasmeen el Khoudary) are receivingincreasing attention. On Instagram, we have 263 followers, 20% are from the US, 15% from the UK, 11% fromPalestine, 7% from Egypt, and 6% from Italy. On Facebook, we have 1,403 followers, with the top three countries beingthe same as IG - US, UK, and Palestine/Israel. On Twitter, we had 245 new followers since Feb 2019, bringing the totalup to 2,243.

STRUCTURE, GOVERNANCE AND MANAGEMENTGoverning documentAs a limited company, for the purpose of the Companies Act 2006, the PEF is governed by its Memorandum and Articlesof Association.

The PEF constitutionThe PEF was incorporated in 1879 as a limited liability company and any liability of the members in the event ofwinding-up or dissolution of the PEF is limited to the amount of the uncalled issued share capital. The PEF is registered asa charity and as such is not liable to taxation on its income provided this is fully applied to the furtherance of itsobjectives. The Memorandum and Articles of Association vest the management of the PEF in a Board of Trustees akin toa Board of Directors.

-5-



STRUCTURE, GOVERNANCE AND MANAGEMENTManagement structureThe Honorary Officers Group comprises: Chairman; Honorary Secretary; Honorary Treasurer; Honorary Editor of PEQ;Honorary Chair of Publications, and Honorary Chair of the Grants Committee. On a day to day basis, the Chief Executiveruns the Fund assisted by part time staff.

Appointment of Trustees Trustees are appointed according to the rules set out in the Memorandum and Articles of Association. Nominations aresought from the Trustees and membership, for election to the Board of Trustees by the membership at the AGM. TheBoard of Trustees is also permitted, by the terms of the Memorandum and Articles of Association, to co-opt PEF membersto the Board of Trustees during the course of the year, as they determine. Such co-opted board appointments require theapproval of the membership at the subsequent AGM.

DEVELOPMENTS IN 2019The removal of our object collection, archive, library, furniture and IT equipment from Marylebone to Greenwich wascomplete by the first week of January 2019. At our request however, the removal firm (Cadogan Tate) left the unpackingto the PEF staff and volunteers, who were faced with an impressive array of cardboard boxes and other packing materialat the start of the new year. Under the guidance of Felicity Cobbing and Ava Clark, we set about finding new homes forover 6,000 objects and any number of documents, photographs and maps and recording their new location. Thearrangements of the library book stacks and Reading Room were left in the capable hands of our librarian, ElisabethSawerthal.

Some sort of equilibrium was reached by mid-March, by which time it became clear that much would be gained if wewere to increase further the shelves and drawers in the newly installed mobile and static storage racks. The additionalspace would allow for more rational storage of our existing items, as well as enabling us to add to our collections in theyears ahead, particularly of photographs and documents. Early in 2019, two additional long-span shelves were added tothe static storage racks in the Work Room and thirty-six additional drawers will be added to the mobile racks in theSpring of 2020.

Considerable effort and expense have been focused on our IT systems, and the PEF now has a mainframe computer onsite. New terminals for access have been purchased and there are two large AV screens for lectures and display - one inthe museum display area and the other in the Work Room. The AV system may be linked to other institutions bothnational and internationally for shared events.

Contrary to the concerns expressed by some before our move that scholars and students wishing to consult our archivesand collections might not wish to make the journey down to Greenwich, we have in fact seen a modest increase in theirnumber to 224 visitors in 2019. Furthermore, we are optimistic that the number should increase further when thescaffolding mounted on the front of our building in August 2019 is removed at about Eastertime 2020. The public displayof selected items from our collections is somewhat hidden at present for the passing tourist trade, and we have sadly hadour splendid view of the river somewhat obscured.

Throughout 2019 the PEF has continued the contracts of Avantika Clark as Collections Assistant and Elisabeth Sawerthalas Librarian and Reviews Editor. During the course of the year, John Ritzema shared Elisabeth Sawerthal's contract asLibrarian.It has also contracted the services of Yasmeen el Khoudary as its Social Media Officer. Adam Fraser was appointed asAssistant Editor of PEQ in October 2019. In December 2019, Avantika Clark was appointed as a fully salaried staffmember effective as of the 1st January 2020.

-6-



STRUCTURE, GOVERNANCE AND MANAGEMENTRESERVE POLICYIn previous years the reserve was sufficient to cover nine months running costs. That was extended to twelve months(£120,000) during the period of PEF's move to Greenwich. Now that the move is complete, the Board has adopted thepolicy of keeping six months operating costs in cash on hand reserves. This position is further supported by the ability ofthe PEF to quickly and easily obtain liquid funds from its investments.

RISK MANAGEMENTIn June 2017 the PEF appointed Sarasin and Partners to manage its investment fund, on the basis that its risk profile is'low'. To date returns are on target and we are happy with the Sarasin service. However, as investments provide thePEF's main source of income, we have to keep the situation under review and be aware of rival offerings.

AUDITORSThe auditors for 2019 were Hartley Fowler LLP. In line with best practice, which suggests a periodic review of auditors,the Board has decided to retain Hartley Fowler as our auditors.

REFERENCE AND ADMINISTRATIVE DETAILSRegistered Company number00013606 (England and Wales)

Registered Charity number212538

Registered office5-6 Dreadnought WalkGreenwichLondonSE10 9FP

Trustees

The Fund is governed by a Board of Trustees, on which the following served at any time in the year ending 31stDecember 2019:

Rev. Dr. J. R. BartlettDr. Sara Boutall appointed 6 June 2019Mr C. Glover Honorary Treasurer appointed 6 June 2019Dr. C. Fiaccavento Chair of PublicationsProf. J. HealeyDr. L. Hulin Editor, PEQMs. S. KirshnerProf. J MacDermot Honorary SecretaryMr. D. Pett resigned 6 June 2019Dr. C. M. Pickersgill resigned 15 January 2019Dr. C. Quine appointed 6 June 2019

Chairman &ActingMr C. A. Strine Honorary Treasurer appointed Acting Hon. Treasurer December 2018Mr S. SuttonDr. M. Talbot

Chair of GrantsDr A. Thornton Committee resigned 6 June 2019

-7-



REFERENCE AND ADMINISTRATIVE DETAILSAuditorsHartley Fowler LLPStatutory AuditorsChartered Accountants44 Springfield RoadHorshamWest SussexRH12 2PD

BankersRoyal Bank of Scotland33 Old Broad StreetLondonSE10 9FP

SolicitorsCollins Benson, Goldhill LLP26/28 Great Portland StreetLondonW1W 8QT

Investment ManagersSarasin & Partners LLPJuxon House100 St. Paul's ChurchyardLondonEC4M 8BU

CCLA Fund Managers LimitedSenator House85 Queen Victoria StreetLondonEC4V 4ET

STATEMENT OF TRUSTEES' RESPONSIBILITIESThe trustees (who are also the directors of The Palestine Exploration Fund for the purposes of company law) areresponsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law andUnited Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FinancialReporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair viewof the state of affairs of the charitable company and of the incoming resources and application of resources, including theincome and expenditure, of the charitable company for that period. In preparing those financial statements, the trusteesare required to

- select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charity SORP; - make judgements and estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable

company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any timethe financial position of the charitable company and to enable them to ensure that the financial statements comply withthe Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence fortaking reasonable steps for the prevention and detection of fraud and other irregularities.

-8-

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OFTHE PALESTINE EXPLORATION FUND

OpinionWe have audited the financial statements of The Palestine Exploration Fund (the 'charitable company') for the year ended31 December 2019 which comprise the Statement of Financial Activities, the Statement of Financial Position and notes tothe financial statements, including a summary of significant accounting policies. The financial reporting framework thathas been applied in their preparation is applicable law and United Kingdom Accounting Standards (United KingdomGenerally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standardapplicable in the UK and Republic of Ireland'.

In our opinion the financial statements:- give a true and fair view of the state of the charitable company's affairs as at 31 December 2019 and of its incoming

resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinionWe conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Ourresponsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financialstatements section of our report. We are independent of the charitable company in accordance with the ethicalrequirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard,and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concernWe have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report toyou where: - the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not

appropriate; or - the trustees have not disclosed in the financial statements any identified material uncertainties that may cast

significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting fora period of at least twelve months from the date when the financial statements are authorised for issue.

Other informationThe trustees are responsible for the other information. The other information comprises the information included in theAnnual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwiseexplicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doingso, consider whether the other information is materially inconsistent with the financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies orapparent material misstatements, we are required to determine whether there is a material misstatement in the financialstatements or a material misstatement of the other information. If, based on the work we have performed, we concludethat there is a material misstatement of this other information, we are required to report that fact. We have nothing toreport in this regard.

Opinions on other matters prescribed by the Companies Act 2006In our opinion, based on the work undertaken in the course of the audit:- the information given in the Report of the Trustees for the financial year for which the financial statements are

prepared is consistent with the financial statements; and - the Report of the Trustees has been prepared in accordance with applicable legal requirements.

-10-


STATEMENT OF FINANCIAL ACTIVITIES(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)FOR THE YEAR ENDED 31 DECEMBER 2019

2019 2018Unrestricted Total

funds fundsNotes £ £

INCOME AND ENDOWMENTS FROM Donations and legacies 3,425 119,119

Other trading activities 3 55,274 60,352Investment income 4 150,464 134,480

Total 209,163 313,951

EXPENDITURE ON Charitable activities 5Expenditure on charitable activities 221,111 231,236

Net gains/(losses) on investments 642,732 (284,416)

NET INCOME/(EXPENDITURE) 630,784 (201,701)

RECONCILIATION OF FUNDS

Total funds brought forward 7,522,810 7,724,511

TOTAL FUNDS CARRIED FORWARD 8,153,594 7,522,810

The notes form part of these financial statements

-12-


NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2019

1. STATUS OF THE PEF

The PEF was incorporated in 1879 as a limited liability company and any liability of the members in the event ofwinding-up or dissolution of the PEF is limited to the amount of the uncalled issue share capital. The PEF isregistered as a charity and as such is not liable to taxation on its income provided this is fully applied to thefurtherance of its objectives.

STATUTORY INFORMATION

The PEF is a private company limited by shares, registered in England and Wales. The company's registerednumber is 00013606 and its registered office address can be found in the Report of the Trustees.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements The financial statements of the PEF, which is a public benefit entity under FRS 102, have been prepared inaccordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement ofRecommended Practice applicable to charities preparing their accounts in accordance with the Financial ReportingStandard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial ReportingStandard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the CompaniesAct 2006. The financial statements have been prepared under the historical cost convention, with the exceptionof investments which are included at market value, as modified by he revaluation of certain assets.

The presentation currency of the financial statements is the pound sterling (£).

Changes in accounting policies The policy for the rate of depreciation of Long Leasehold Property was changed during the year from straight lineat 6.6% per annum to straight line over 900 years.

The leasehold period is for 999 years from March 2018. The useful life of the asset has been assessed by thetrustees to be 900 years with the value expected to significantly decrease after this 900 year period.

To provide a reliable and more relevant estimate to the financial statements the Long Leasehold Property is beingwritten off over this 900 year period on a straight line basis starting from the date the property was available foruse being, October 2018.

This has resulted in the depreciation charge in the statement of financial activities for the year ended 31December 2018 and corresponding charge in the notes to the statement of financial position as at 31 December2018 being reduced from £52,779 to £890. Consequently the total funds carried forward as at 31 December 2018have therefore increased from £7,470,921 as per the submitted financial statements for the year ended 31December 2018 to £7,522,810.

Income All income is recognised in the Statement of Financial Activities once the PEF:a) has entitlement to the funds,b) it is probable that the income will be received andc) the amount can be measured reliably.

Income from donations and legacies is only recognised when the PEF has unconditional entitlement to theresources. Gift aid thereon is recognised for when notification of entitlement is received from HMRC.

Income from royalties received on previously published works is recognised in the period to which the royaltiesrelate.

Income from membership subscriptions is recognised on a straight line basis over the period to which themembership relates.

Interest is recognised when receivable and the amount can be measured reliably by the charity; this is normallyupon notification of the interest paid or payable.

-14-


NOTES TO THE FINANCIAL STATEMENTS - continuedFOR THE YEAR ENDED 31 DECEMBER 2019

2. ACCOUNTING POLICIES - continued

Expenditure Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the PEFto that expenditure, it is probable that a transfer of economic benefits will be required in settlement and theamount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and hasbeen classified under headings that aggregate all cost related to the category. Where costs cannot be directlyattributed to particular headings they have been allocated to activities on a basis consistent with the use ofresources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitmentbut not accrued as expenditure.

Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated usefullife:

Long Leasehold Property - Straight line over 900 yearsFixtures and fittings - 10% on costComputer equipment - 33% on cost

Tangible fixed assets are stated at cost less accumulated depreciation less accumulated impairment losses. Costincludes costs directly attributable to making the asset capable of operating as intended by management.

At each date of the Statement of Financial Position, the company reviews the carrying amount of its tangible fixedassets to determine whether there is any indication that items have suffered an impairment loss. If any suchindication exists, the recoverable amount of an asset is estimated in order to determine the extent of theimpairment loss, if any.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of theasset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Stocks Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slowmoving items.

Taxation The PEF 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. Theunrestricted funds in the financial statements all relate to charitable activities.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictionsarise when specified by the donor, when funds are raised for a particular restricted purpose or from the donationof assets which have restrictions placed on their use.

Pension costs and other post-retirement benefits The PEF operates a defined benefit contribution scheme. Contributions payable to the charitable company'spension scheme are charged to the Statement of Financial Activites in the period to which they relate.

ImpairmentAssets not measured at fair value are reviewed for any indication that the asset may be impaired at eachstatement of financial position date. If such indication exists, the recoverable amount of the asset, or the asset'scash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds itsrecoverable amount, an impairment loss is recognised in statement of financial activities unless the asset iscarried at a revalued amount where the impairment loss is a revaluation decrease.

Heritage assetsHeritage assets are not recognised in the Statement of Financial Position.

-15-



2. ACCOUNTING POLICIES - continued

Debtors and creditors receivable / payable within one yearDebtors and creditors with no stated interest rate and receivables or payables within one year are recorded attransaction price. Any losses arising from impairment are recognised in the Statement of Financial Activities incharitable activities.

3. OTHER TRADING ACTIVITIES 2019 2018

£ £Subscriptions 10,625 10,413Royalty income and book sales 39,311 39,049Reproduction fees - photos 5,338 1,468Under accrual of Royalty income in respect of the previous year - 9,422

55,274 60,352

4. INVESTMENT INCOME 2019 2018

£ £Investment income 150,345 129,624Investment interest 87 4,651Deposit account interest 32 205

150,464 134,480

5. CHARITABLE ACTIVITIES COSTS Grant Support

Direct funding of costs (seeCosts activities note 6) Totals

£ £ £ £Expenditure on charitable activities 69,392 10,560 141,159 221,111

For details of recipients of grants funding of charitable activities please see the 'Grantmaking' section of theReport of the Trustees.

6. SUPPORT COSTS Governance

Management Finance costs Totals£ £ £ £

Expenditure on charitable activities 134,702 986 5,471 141,159

-16-



6. SUPPORT COSTS - continued Support costs, included in the above, are as follows: Management

2019 2018Expenditure

oncharitable Totalactivities activities

£ £Rates 9,766 8,393Insurance 12,310 12,935Light and heat 5,342 3,337Telephone and postage 2,642 6,085Stationery and printing 699 1,163Sundries 6,514 3,299Repairs and maintenance 18,820 8,277Legal and professional 16,588 18,504Other labour costs 19,200 5,410Computer repairs and maintenance 7,539 14,006Relocation costs - 40,608Property management services 11,056 5,766Depreciation of tangible and heritage assets 24,226 19,512

134,702 147,295

Finance 2019 2018

Expenditureon

charitable Totalactivities activities

£ £Bank charges 986 528

Governance costs 2019 2018

Expenditureon

charitable Totalactivities activities

£ £Auditors' remuneration 5,471 5,280

7. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2019 2018£ £

Auditors' remuneration 5,471 5,280Depreciation - owned assets 24,226 19,512

-17-



8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2019 nor for the yearended 31 December 2018.

Trustees' expenses

Expenses relating to travelling and meetings were paid to the following Trustees in the following amounts:

2019 2018£ £

J Bartlett 736 412C Crouch - 161P Davies - 707C Glover 313 -J Healey 482 764L Hulin 73 2,311M Lehnert - 178C Strine 2,974 1,384C Pickersgill - 70C Fiaccavento 443 -C Quine 48 -

9. STAFF COSTS 2019 2018

£ £Wages and salaries 42,388 40,539Other pension costs 2,400 2,400

44,788 42,939

The average monthly number of employees during the year was as follows:

2019 2018Direct charitable activity 1 1Administration of activity 1 1

2 2

No employees received emoluments in excess of £60,000.

10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted

funds£

INCOME AND ENDOWMENTS FROM Donations and legacies 119,119

Other trading activities 60,352Investment income 134,480

Total 313,951

EXPENDITURE ON Charitable activities Expenditure on charitable activities 231,236

-18-



10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued Unrestricted

funds£

Net gains/(losses) on investments (284,416)

NET INCOME/(EXPENDITURE) (201,701)

RECONCILIATION OF FUNDS

Total funds brought forward 7,724,511

TOTAL FUNDS CARRIED FORWARD 7,522,810

11. TANGIBLE FIXED ASSETS Long Fixtures

Leasehold and ComputerProperty fittings equipment Totals

£ £ £ £COSTAt 1 January 2019 3,198,728 154,365 32,609 3,385,702Additions - 42,218 499 42,717

At 31 December 2019 3,198,728 196,583 33,108 3,428,419

DEPRECIATIONAt 1 January 2019 890 27,054 24,677 52,621Charge for year 3,554 16,567 4,105 24,226

At 31 December 2019 4,444 43,621 28,782 76,847

NET BOOK VALUEAt 31 December 2019 3,194,284 152,962 4,326 3,351,572

At 31 December 2018 3,197,838 127,311 7,932 3,333,081

12. FIXED ASSET INVESTMENTS Listed

investments£

MARKET VALUEAt 1 January 2019 4,089,346Additions 32,000Disposals (16,946)Revaluations 640,978

At 31 December 2019 4,745,378

NET BOOK VALUEAt 31 December 2019 4,745,378

At 31 December 2018 4,089,346

There were no investment assets outside the UK.

-19-



12. FIXED ASSET INVESTMENTS - continued

The PEF's investment portfolios are independently managed by professional investment managers appointed bythe Trustees.

13. STOCKS 2019 2018

£ £Monograph and book stocks 1,267 1,353

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2019 2018

£ £Other debtors 7,120 7,840Prepayments 7,592 6,020

14,712 13,860

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2019 2018

£ £Other creditors 13,124 33,825Accruals and deferred income 5,280 5,089

18,404 38,914

16. MOVEMENT IN FUNDS Net Transfers

movement between AtAt 1/1/19 in funds funds 31/12/19

£ £ £ £Unrestricted funds General fund 7,314,122 604,828 45,000 7,963,950Reverend LEC Evans Will Trust Fund 156,927 25,956 - 182,883Property Management Fund 6,759 - - 6,759Property Sinking Fund 45,000 - (45,000) -Share Capital 2 - - 2

7,522,810 630,784 - 8,153,594

TOTAL FUNDS 7,522,810 630,784 - 8,153,594

Net movement in funds, included in the above are as follows:

Incoming Resources Gains and Movementresources expended losses in funds

£ £ £ £Unrestricted funds General fund 209,163 (221,111) 616,776 604,828Reverend LEC Evans Will Trust Fund - - 25,956 25,956

209,163 (221,111) 642,732 630,784

TOTAL FUNDS 209,163 (221,111) 642,732 630,784

-20-



16. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Net Transfersmovement between At

At 1/1/18 in funds funds 31/12/18£ £ £ £

Unrestricted funds General fund 7,319,654 (201,701) 196,169 7,314,122Reverend LEC Evans Will Trust Fund 346,496 - (189,569) 156,927Property Management Fund 6,759 - - 6,759Tufnell Fund 6,600 - (6,600) -Property Sinking Fund 45,000 - - 45,000Share Capital 2 - - 2

7,724,511 (201,701) - 7,522,810

TOTAL FUNDS 7,724,511 (201,701) - 7,522,810

Comparative net movement in funds, included in the above are as follows:


£ £ £ £Unrestricted funds General fund 313,951 (231,236) (284,416) (201,701)

TOTAL FUNDS 313,951 (231,236) (284,416) (201,701)

A current year 12 months and prior year 12 months combined position is as follows:

Net Transfersmovement between At

At 1/1/18 in funds funds 31/12/19£ £ £ £

Unrestricted funds General fund 7,319,654 403,127 241,169 7,963,950Reverend LEC Evans Will Trust Fund 346,496 25,956 (189,569) 182,883Property Management Fund 6,759 - - 6,759Tufnell Fund 6,600 - (6,600) -Property Sinking Fund 45,000 - (45,000) -Share Capital 2 - - 2

7,724,511 429,083 - 8,153,594

TOTAL FUNDS 7,724,511 429,083 - 8,153,594

-21-



16. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above areas follows:


£ £ £ £Unrestricted funds General fund 523,114 (452,347) 332,360 403,127Reverend LEC Evans Will Trust Fund - - 25,956 25,956

523,114 (452,347) 358,316 429,083

TOTAL FUNDS 523,114 (452,347) 358,316 429,083

The full £45,000 was transferred from the Property Sinking Fund to the General Fund due to the Property SinkingFund relating to the previous premises of the charity and therefore it was no longer considered necessary to beheld separately.

17. RELATED PARTY DISCLOSURES

Other than trustees expenses detailed in note 8, there are no other related party transactions for the year ended31 December 2019.

18. ULTIMATE CONTROLLING PARTY

The PEF is controlled by its Board of Trustees.

19. HERITAGE ASSETS

Heritage assets include a collection of over 6,000 objects including an archeological collection, books, documents,photographs, maps and watercolours, that were either excavated by the PEF between the 1860s to the 1930s ordonated to it.

For the purposes of obtaining sufficient insurance cover a valuation was undertaken by the auctioneers Lyon &Turnbull with the total collection having an estimated value of £3,230,780. However, being an estimate withlimited active market data available, it is difficult to ascertain the likelihood that, if sold, any asset would achieveits respective valued amount.

As such, information on the cost or value of the assets cannot be obtained at a cost which is commensurate withthe benefits to users of the financial statements and therefore Heritage assets are not recognised in theStatement of Financial Position.

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

NominalNumber: Class: value: 2019 2018

281 Ordinary Shares £0.01 2 2

No dividends can be paid to shareholders.

-22-

REGISTERED COMPANY NUMBER: 00013606 (England and Wales ...

Documents

Transcript of REGISTERED COMPANY NUMBER: 00013606 (England and Wales ...