Royal Institution of Cornwall Annual Report 2011-2012

7/30/2019 Royal Institution of Cornwall Annual Report 2011-2012

1/31

TrusteesReport &

Accountsfor the

year ended31 March

2012Royal Institution of Cornwall

Charity Registration Number 221958


2/31


3/31

TRUSTEES REPORT

Background and objects

Structure, governance and management

Risk management

Aims and objectives

Activities

Collections care

Learning and access

Exhibitions during 2011/12

Achievements and performance

Financial review

Plans for the future

Trustees responsibilities in relation to the accounts

AUDITORS REPORT

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIESFOR THE YEAR ENDED 31 MARCH 2011

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2011

NOTES TO ACCOUNTS

5

5

5

6

6

7

8

9/10

10

11

12

13

14

15

16

17

18

Contents Page

3


4/31

Patron HRH The Prince of Wales, Duke of Cornwall

Vice-Patron The Rt. Hon Viscount Falmouth

President Colonel E T Bolitho, Lord Lieutenant of Cornwall

Honorary Vice-Presidents The Rt. Rev. The Lord Bishop of Truro

Mrs B B Spring

Professor A C Thomas CBE MA FBA FSA

Sir Ferrers Vyvyan

Trustees B M M Biscoe (Hon. Secretary)

D Bishop (Appointed 26/11/2011)

M Chanter (Appointed 22/03/12)

B Deacon

J Dunstan (Retired - 26/11/2011)

V Hendra

Mrs M Leavitt-Bourne

Mrs L Le Grice

G I Mayhew BA (Hon.Treasurer, retired 26/11/2011)

B D Preston

R Robinson (Hon Treasurer, appointed 26/11/2011)

Mrs B B Spring (Retired 26/11/2011)

P C Stethridge (Chairman)

P Tunstall-Behrens

Director Ms H Bracegirdle BSc MBA

Custodian trustee Barclays Bank Trust Company Limited

Principal office Royal Cornwall Museum, 25 River Street, Truro, CornwallWebsite www.royalcornwallmuseum.org.uk

Bankers Lloyds TSB plc, 7 Boscawen Street, Truro, Cornwall

Solicitors Foot Anstey, High Water House, Malpas Road, Truro, Cornwall

Investment advisers Charles Stanley & Company Ltd, 65 Lemon Street, Truro, Cornwall

Auditors Francis Clark LLP, Chartered Accountants,

Lowin House, Tregolls Road, Truro, Cornwall

Charity number 221958

4


5/31

TRUSTEES REPORT

Structure, governance & management

Background & objectsFounded in 1818 as the Cornwall Literary and Philosophical Institution, the Royal Institutionof Cornwall (RIC) was one of the earliest of seven similar societies established in England and

Wales during the 19th century. These voluntary bodies typically founded a library and

museum, offered a lecture programme and scientific demonstrations, and gave instruction to

the local working class population, well before state education was available. Today the RIC

(so called after receiving royal patronage in 1821) remains true to the objects stated in its

constitution, which are To advance the education of the public by encouraging and

promoting the study and knowledge of literature, natural sciences, archaeology, history,

ethnology, geology and the fine and applied arts with special reference to Cornwall.

In pursuit of its objects the RIC owns and operates Cornwalls oldest and most prestigious

museum, the Royal Cornwall Museum (RCM), and operates the Courtney Library as well as

publishing the annual RIC journal.

The Trustees confirm that they have had regard to the Charity Commissions guidance on

public benefit.

The RIC is an unincorporated association, governed by a constitution which was last revisedon 23 July 2004 and it is a registered charity.The RIC owns the entire share capital of a trading

subsidiary, RIC Museum Limited.

The RICs governing body is a board of trustees, which is responsible for the policies, control

and monitoring of the RICs day-to-day management. Under the constitution, the board of

trustees is made up of between eight and twelve members comprising:

G the officers of the RIC

G between two and four persons elected at the annual general meeting

G two nominated members appointed by the officers

G up to two co-opted members.

The trustee selection process is designed to appoint persons who have the necessary skills to

contribute to the RICs management and development. Newly appointed trustees are given

an introduction to the work of the RIC and provided with the information they need to fulfil

their roles, which includes information about the role of trustees and charity law.

The board meets no less than three times a year. There are also regular meetings of

sub-committees, which may include Task and Finish Groups.

The director, who is not a trustee, is responsible for day-to-day operation of the RIC and

manages the staff on behalf of the trustees.

5


6/31

Aims & objectives

The major risks to which the RIC is exposed have been reviewed and systems have beendeveloped to monitor and control those risks in order to mitigate any impact that they may

have on the RIC in the future. Risk management overall is ultimately the responsibility of the

Trustees and Director.

Financial, building and business risks are monitored by the Director and the Trustees Finance

and General Purposes sub-committee. Risks to the collections are monitored by the Director

and the Head of Collections Management and covered by a suite of policies and procedures

including an emergency plan. Risks to visitors, staff and volunteers are covered by the RICs

Health and Safety policy and procedures.

The Trustees have adopted the following aims:

1. To use and develop the collections and human resources of the RIC to research and

demonstrate the knowledge of literature, natural sciences, archaeology, history, ethnology,

geology and the fine and applied arts, with special reference to Cornwall.

2. To continue to meet or exceed the standards required by Accreditation, by meeting agreed

levels of governance, management, user services, visitor facilities and collections care,

management and interpretation.

3. To play a strong role in the museum community, particularly in Cornwall and through the

South West Regional Hub.

4. To continue to achieve financial stability and accountability, through appropriate

management of the RICs assets and efficient use of resources and by meeting the Hub

business plan and Cornwall Council service-level agreement.

5. To implement the phased approach to the master plan for the Museum drawn up with

Ralph Appelbaum Associates.

6. The creation of a very significant endowment, of at least 10m, to ensure financial self

sufficiency, by 2018.

The main objectives for the year 2011-2012 were to ensure the future care of the collections

by ensuring financial sustainability; to continue to implement the collections management

policy; to deliver the business plan agreed with the South West Regional Hub; and to ensure

that the RIC meets all legal and ethical requirements with particular reference to governance,

finance and employment law. Underpinning all activities is the need, as always, to ensure

financial prudence and transparency.

The strategies employed to achieve the Charitys objectives are detailed in the business planadopted by the Trustees.

Risk management

6


7/31

This financial year was the final year of funding from the Museums, Libraries and ArchivesCouncil, a transition period to a new funding landscape. Staff and trustees were tasked with

reviewing and exploring opportunities for developing membership, new income generation

activities and collections and access through new technologies. Key recommendations from

these reviews were considered and incorporated in to a new structure for the organisation

which will be implemented in the new financial year. Activities in this financial year included

launching a new membership offer, planning the introduction of a simple and low admissions

rate which complies with HMRC Gift Aid regulations, planning a new retail offer with

procurement of an EPOS system and the development of services that can be commissioned

by other organisations such as Cornwall Council.

Another key activity in the charitys transition was the development of significant

partnerships with the British Museum and Truro Cathedral. In both cases our programmesteam has built up relationships with these organisations that have resulted in very successful

learning activities for children and adults. With Truro Cathedral, Cornwall Record Office and

local advanced skills teachers we developed a programme of local history research for

secondary school pupils focusing on the Civil War. In the style of The Apprentice children

were challenged to collect information through activities at the three locations and then

return to their schools to teach the remainder of their school group. 60 pupils from 6

secondary schools were involved in this project. As with many of our activities this did not

simply teach history, but also empowered these teenagers and developed vital life skills that

they can continue to use beyond the classroom. This partnership continued to develop

activities for junior and senior school students extending research to Victorian and Edwardian

periods.

Partnership with the British Museum supported our successful application to the Heritage

Lottery Fund for 233,000 towards a 300,000 project to redisplay our Egyptian, Greek and

Roman archaeology and create a vibrant learning space for children and adults of all ages.

Funding was secured in October 2011 and work began on site in January 2012 with opening

of the new gallery on Friday 8 June 2012. This was our first significant lottery investment in a

decade and confirmed that the RIC is a charity with huge potential and expertise. The

partnership will see star loans from the British Museum on display for the first time in

Cornwall.

The RIC continues to seek financial support from trusts, foundations and philanthropists for

project funding and the endowment set up in 2010/11. We are grateful to the generous

individuals who have made donations, pledged legacies and co-ordinated fundraising

activities, as well as the trusts that have supported project work.

In particular we thank His Royal Highness the Prince of Wales, Duke of Cornwall, The

Foundation for Sports and the Arts, The Heritage Lottery Fund, the estate of Mr M Howarth,

the estate of Mr P Brierley, Miss M M Williams, Mr Brooks, Mr Stericker, Mrs Le Grice, Mr Insoll,

Mr Tyrell and Mrs Lim.

Trustee subcommittees continue to meet. The accounts demonstrate that the Director andTrustees have fulfilled their responsibilities with regard to transparency, liquidity and financial

control.

Activities

7


8/31

The RIC holds extensive collections of Cornish and European archaeology and social historyas well as world cultures. The fine and decorative art collections hold work by Cornish artists,

designers and makers but also contain significant works by nationally and internationally

important artists from other parts of the world. The geological collections comprise

substantial numbers of mineral, fossil and rock specimens. The collection of South West

England mineralogy is one of the finest in the world. The flora and fauna of the South West

are represented in the biological collection and are complemented by UK and world mineral

material. The Courtney Library and Archive holds approximately 150,000 books, periodicals

and archive material relating to Cornwall and the South West. In addition, there is an extensive

photographic collection which records the history of Cornwall from 1845 to date.

2011 saw the completion of a 5 year programme of conservation of artefacts in our Ancient

Egyptian, Greek and Roman collections ready for display in a new gallery. A significant part ofthis was the conservation of the coffins of Iset-tayef-nakht the RICs unwrapped Egyptian

mummy. Our specialist archaeology conservator spent 9 months removing old varnish and

filler from the coffins as well as restoring some parts of the panels. Containing scenes of Iset-

tayef-nakht and his journey to the afterlife, the outer coffins can now be displayed upright

and make a magnificent centrepiece to the exhibition.

Behind the scenes a team of volunteers was working on a very delicate collection. Featuring

clothes from 1950s cocktail dresses to the painting shirt of artist Bryan Pearce as well as

tapestries and quilts, the textile collection needed repackaging and rehousing to protect it

from dust and atmospheric pollutants. The volunteers created conservation grade bags and

padded hangers and assisted with the move of the collection to its new storage location.

The RIC now jointly manages the Cornwall Council Schools Art Collection in partnership with

the Leach Pottery. With funding from Cornwall Council and the Tanner Trust, in 2010 the RIC

was able to upgrade its art store to take receipt of the paintings and drawings. Collected at a

time when the county was known for progressive and advanced art the collection was created

for use in schools. Now, 50 years on, it has formed a 10 month hang which opened at the

museum on Members Day in November and has been used in our outreach work with schools

as part of a project funded by the Princes Foundation for Children and the Arts. As

conservation work progresses, more of the works will be brought back into use for learning

activities with schools.

Collections care

8


9/31

Learning and access are at the heart of all that the RIC does. Visiting the Royal CornwallMuseum offers the opportunity to learn about the past, other cultures and the natural history

and geology of Cornwall in a creative and enjoyable environment.The team continues to build

on this and develop our activities. In 2011 its focus was on how to redisplay our collections

of Ancient Egypt, Greece and Rome.With support from the British Museum, the RICs team of

collections and learning specialists worked with schoolchildren, advanced skills teachers,

volunteers and designers to establish the themes and activities for the new gallery and

develop the application to the Heritage Lottery Fund. Incorporating new displays, a

reconstruction of the mummys head, 150 additional objects that had been in store, star

objects from the British Museum, new resources for schools, activities for families and a

programme of volunteering, the project will run throughout 2012.

In 2011 the RIC was able to continue to provide free access to both the museum and theCourtney Library through a subsidy from the Museums, Libraries and Archives Council. This

enabled people from Cornwall and beyond to enjoy our permanent collections and an active

programme of temporary exhibitions. Highlights included the summers Way of the Warrior

exhibition featuring costumes from epic movies and the Revealing Collections exhibition

where students from University College Falmouth had interpreted some of the museums

collections in new and exciting ways in order to provoke discussions about sexual issues.

In addition there is a well subscribed programme of schools workshops which support a wide

variety of national curriculum subjects. A schools loans service offers real artefacts and

resource packs from a range of historical periods; resources for family learning in the galleries

enable half of our visitors to enjoy family events and cross-generational activities. This yearwas the third and final year of the START project funded by the Princes Foundation for

Children and the Arts. START is designed to help children build a strong relationship with a

local cultural venue and provide them with opportunities to improve their creative, personal

and academic skills. START aims to support students growth into confident, successful

individuals, improving self-esteem and helping them forge a lifelong relationship with the arts.

In 2011 over 230 children participated in creative activities that explored paintings from the

Cornwall Council Schools Art Collection through the themes of shape and colour. Working

with a musician they also created musical interpretations of the paintings. Their involvement

inspired the children and gave them the confidence to bring their families into the museum

at weekends.

Learning and access extend beyond the building. Through a partnership with the Public

Catalogue Foundation and the BBC the RICs oil paintings (many of which are not on display)

can now be found on the Your Paintings website. Here the public are encouraged to explore

the works, comment and provide tags to enable comprehensive searches of the nations

paintings. In 2011 the RIC also launched the inaugural year of the biennial Cardew-Rendle

History Prize. Funded by a generous legacy from Harold Cornelius Cardew-Rendle with the

intention of promoting the study of Cornish history, the prize is open to adults and children.

Those over 19 years of age are asked to write an original researched essay on any aspect of

Cornish history or pre-history. Children can either write an essay or submit a piece of artwork,

theatre, poetry or music about a Cornish historical object, building, monument or documentthat inspires them. Winners and their school or college will receive cash prizes and Cornish

tin medals in 2012.

Learning & access

9


10/31

A partnership with the RIC, Plymouth Museum and Art Gallery and The Royal Albert Memorial

Museum, funded by the Heritage Lottery Fund created a touring exhibition for community

museums around the South West called Treasures from the Earth. Aiming to reach new

audiences and provide training and involvement that can increase understanding of

archaeology, the exhibition came to Cornwall in 2011/12. Using archaeology from the

partners collections, objects from the host museums and loans from the British Museum and

Victoria and Albert Museum, it toured Cornwall in 2011/12. Finds Liaison Officers from the

Portable Antiquities Scheme provided identification sessions and the RIC funded a special

education programme that helped host museums run activities for schools and develop

learning resources that they could use beyond the life of the project. Over the three year

project 28,000 people visited the exhibitions in Devon, Somerset and Cornwall and 684

people participated in associated learning events.

None of these activities could be completed without the willing help of volunteers. In

2011/12, 90 people contributed over 6000 hours of their time and expertise to the museum

and library. Documenting and repacking collections, digitising photographs, helping with

holiday activities, assisting with exhibitions, compiling mailings and assisting with visitor

enquiries are just some of the areas volunteers support.

Exhibitions during 2011/12Fish Grit and Guts: Paintings by Bridget Keen

Way of the Warrior:Arms and Armour from Epic Movies!

Revealing Collections

One and All: Arts and Crafts Metalwork from Cornwall

Tre Project: Rediscovering Cornwall and Isles of Scilly through Archive Film

Out of Nowhere: Recent Paintings by Noel Betowski

Every Pitcher Tells a Story: A History of Lakes Pottery

So Near and Yet so Far

Truro School Art Collection

10


11/31

Achievements & performance2011 was a record year for school bookings with all our sessions booked in Autumn andSpring terms. Over 9000 schoolchildren benefited from our specialist workshops, loans boxes

and outreach activities. Overall visitor numbers to the museum and library stood at just under

100,000 with a third of those being children.

The Royal Cornwall Museum maintained its Accreditation to national museum standards with

an on-going commitment to collections management, implemented through comprehensive

policies and high quality interpretative resources. 31 venues around Great Britain borrowed

items from our collections and our partnership with the British Museum will see prestigious

loans from antiquity on display in Cornwall in 2012. The success of our applications to the

Heritage Lottery Fund and the Foundation for Sports and the Arts will also see considerable

improvements to the environmental conditions in which our Ancient Egyptian, Greek and

Roman collections are displayed as well as providing innovative and engaging interpretation.

Using our memory boxes, we directly delivered sessions that support memory function and

improve quality of life to over 1200 older people around Cornwall. To extend our already

successful track record in this area a Cornwall Works 50+ and 50+Cares Innovation Fund grant

was approved for the Reminiscence Project. This forged new partnerships between the Royal

Cornwall Museum, care homes across Cornwall, and current and potential volunteers in the

care sector through training and supported delivery of reminiscence activities. It has increased

the number of people working and volunteering in the care sector and improved the well-

being of older people in care settings.

The Royal Cornwall Museum won the University of Exeters Social and Cultural Impact awardfor its highly successful Revealing Collections exhibition and its well-received sex education

resource Talking Sex which was developed with the help of PHSE teachers and is now used in

schools throughout Devon and Cornwall. Working in partnership with University of Exeter

researchers Dr Kate Fisher and Dr Rebecca Langlands, Truro College, University College

Falmouth and womens organisation Platform 51, museum staff encouraged local young

people to use the museums artefacts to inspire their own artistic creations that explore

sexual issues. Their work in a variety of media including dance, crafts, video, design,

photography and animations, was showcased in the Revealing Collections exhibition. The

Exeter Impact Awards recognise success in knowledge exchange, collaborative working and

partnership, leading to benefits for the wider society and economy.

11


12/31

Financial reviewReview of the year

Incoming resources were at a similar level to that achieved in 2010/11. In total, incoming

resources on ordinary activities amounted to 1,235,000.

Resources expended on ordinary activities decreased by 355,000 to 938,000 due primarily

to capitalisation of funding for the new Ancient Civilisations gallery.

Net incoming resources for the year amounted to 297,000.

Investments

The trustees investment of the RICs funds is governed by the Trustee Investment Act 2000.

The policy of the trustees is to ensure that the RICs investment funds are professionally

managed to provide returns which are at least in line with the relevant indices and thetrustees are satisfied that the investments performance has met the objectives set. Total

investments now stand at 2,727,000 (Note 12).

Reserves

The Trustees of the Royal Institution of Cornwall maintain a reserves policy giving due regard

to the risks, financial and other, faced at any given time. It is reviewed at least annually.

Currently the policy is to maintain reserves that are at least equivalent to three months

normal (unrestricted) operating expenditure.

At 31 March 2012 unrestricted funds were 920,000, and (after deducting funds of 556,000

and 7,000 which could only be realised by disposing of fixed assets held for charity use) freereserves were 357,000. This takes into account a pension asset of 14,000, which is not

expected to result in short term cash inflows. If the pension liability is left out of account, free

reserves stood at 343,000, equivalent to approximately one years unrestricted expenditure.

The remainder of the charitys reserves comprise restricted funds totalling 2,298.000 which

are funds relating to the acquisition of assets or given for a specific purpose and endowment

funds totalling 2,625.000 which are invested to produce an income for the charity and

cannot be used for any other purpose. The principal endowment fund is the Hawkins

Galsworthy Permanent Endowment which was created with the proceeds from the sale of

two paintings in the previous financial year. The capital is not expendable and the income is

restricted to expenditure for the maintenance of the RICs collection.

12


13/31

Plans for the futureThe new Unwrapping the Past gallery opens on 8 June 2012 funded by the Heritage LotteryFund, with other funding from the Museums, Libraries and Archives Council and the

Foundation for Sports and the Arts. From June we will start on year two of the project. We

will recruit and train a team of volunteers to help in the gallery and run handling sessions and

family activities for the public.

The financial year 2012/13 sees the end of the Renaissance funding, replaced with one years

transition funding from Arts Council England and three years of funding from the same source,

but under a service-level agreement with Plymouth City Museum and Art Gallery.

The Arts Council funding allows us to put in place sustainability measures which include

incorporation, the introduction of admission fees, enlargement of the shop, exploration of

other income generation and restructuring of staff. We will also be working on individualdonor development. Through the Plymouth funding we will apply for designation for the

mineral collection (together with Plymouth and Cornwall Record Office) and scope and apply

for funding for a new minerals gallery. The funding is also allowing us to undertake wide

consultation and project planning for the Courtney Library and Archive and the photographic

collections, transforming how people can access information about all our collections. By the

end of the year, we hope to have assessed the scope of this large project but we recognise

that it will take several years to apply for funding and carry out our plans.

During 2012-13 the RIC will undertake the complex but necessary task of becoming a

Company Limited by Guarantee rather than an unincorporated body, in line with best practice

for independent charities. The name, objects (our mission) and role of the members willremain unchanged but the Constitution will be revised to meet the Charity Commission and

Company Law requirements.

We will continue to provide a schools and family learning programme and will seek external

funding to continue the Reminiscence service. We will continue to make appropriate

partnerships and joint funding applications and contribute to the on-going success of the

family of museums in Cornwall.

13


14/31

Trustees responsibilities in relation tothe accounts

The law applicable to charities in England and Wales requires the Trustees to prepareaccounts for each financial year which give a true and fair view of the charitys financial

activities during the year and of its financial position at the end of the year.

In preparing accounts giving a true and fair view, the Trustees should follow best practice and:

G select suitable accounting policies and then apply them consistently;

G make judgements and estimates that are reasonable and prudent;

G state whether applicable accounting standards and statements of recommended practice

have been followed, subject to any departures disclosed and explained in the accounts;

and

G

prepare the accounts on the going concern basis unless it is inappropriate to presume thatthe charity will continue in operation.

The Trustees are responsible for keeping accounting records which disclose with reasonable

accuracy the financial position of the charity and which enable them to ascertain the financial

position of the charity and which enable them to ensure that the accounts comply with the

Charities Act 2011 and other applicable law. The Trustees are responsible for safeguarding the

assets of the charity and hence for taking reasonable steps for the prevention and detection

of fraud and other irregularities.

Approved by the Board of Trustees on 15th October 2012 and signed on its behalf by:

Peter Stethridge, Chairman

14


15/31

We have audited the group and parent charity financial statements of The Royal Institution of Cornwall for the yearended 31 March 2012, which comprise the consolidated statement of financial activities, the group and parent charity

balance sheet and the related notes. The financial reporting framework that has been applied in their preparation is

applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charitys trustees, as a body. Our audit work has been undertaken so that we might state

to the charitys trustees those matters we are required to state to them in an auditors report and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and

the charitys trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of the trustees and auditor

As explained more fully in the statement of trustees responsibilities set out on page 14, the trustees are responsible for

the preparation of financial statements which give a true and fair view.

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations

made under section 154 of that Act.Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and

International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices

Boards (APBs) Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give

reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.

This includes an assessment of: whether the accounting policies are appropriate to the charitys circumstances and have

been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the

trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial

information in the Trustees report to identify material inconsistencies with the audited financial statements. If we become

aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

G give a true and fair view of the state of the group and parent charitys affairs as at 31 March 2012 and of the

groups incoming resources and application of resources, for the year then ended;

G have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

G have been prepared in accordance with the requirements of the Charities Act 2011.

Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you

if, in our opinion:

G the information given in the Trustees report is inconsistent in any material respect with the financial statements; or

G sufficient accounting records have not been kept; or

G the financial statements are not in agreement with the accounting records and returns; or

G we have not received all the information and explanations we require for our audit.

Michael Bentley ACA DChA

Senior Statutory Auditor

Francis Clark LLP

Lowin House, Tregolls Road,TRURO TR1 2NA

Registered Auditor

Date: 19 October 2012

Francis Clark LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

AUDITORS REPORT

15


16/31

Incoming resources

Incoming Resources from generated funds:

Voluntary income

Grants

Donations & legacies

Activities for generating funds

Retail activities

Rental income

Other

Investment Income

Incoming resources from charitable activities:

Learning

Members subscriptions

Other

Total incoming resources

Resources expended

Costs of generating funds:

Generating voluntary income

Retail activities

Investment property costs

Investment managementCharitable activities:

Sustainability programme

Learning & access

Collections care

Governance costs:

Total resources expended

Net incoming resources

before exceptional item

Exceptional item

Net incoming/ (outgoing) resourcesbefore net transfers

NET INCOMING RESOURCES

Gains on sale of fixed assets

Transfer between funds

Gains/(losses) on investment assets

Actuarial gains/(losses) on defined benefitpension scheme

Net movement in funds for the year

Funds brought forward at 1st April

Funds carried forward at 31st March

Unrestricted

funds

000s

172

12

19

42

7

9

19

15

23

318

9

7

25

7

47

53

61

4

213

105

-

105

105

-

(3)

-

(142)

(40)

960

920

Note

4

5

17

15

2010/11

000s

1,051

52

15

12

75

30

9

7

1,251

56

6

6

-

958

243

24

1,293

(42)

177

135

135

1,906

-

(6)

465

2,500

3,107

5,607

Restricted

funds

000s

801

-

2

-

-

104

-

-

4

911

26

-

-

-

206

228

261

4

725

186

-

186

186

-

3

-

(19)

170

2,128

2,298

Endowment

funds

000s

-

6

-

-

-

-

-

-

-

6

-

-

-

-

-

-

-

-

-

6

-

6

6

-

-

100

-

106

2,519

2,625

Total

funds

000s

973

18

21

42

7

113

19

15

27

1,235

35

7

25

7

253

281

322

8

938

297

-

297

297

-

-

100

(161)

236

5,607

5,843

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIESFOR THE YEAR ENDED 31 MARCH 2012

16


17/31

Fixed assets

Intangible assets

Tangible assets

Investments

Current assets

Debtors

Investments

Cash at bank and in hand

Creditors: amounts falling due within one year

Net current assets

Total assets less current liabilities

Net assets excluding pension (liability)/asset

Pension (liability)/asset

Net assets

Represented by

Unrestricted funds, excluding pension reserve

Unrestricted pension reserve

Total unrestricted funds

Restricted funds, excluding pension reserve

Restricted pension reserve

Total restricted funds

Endowment funds

Total funds

Note

10

12

13

14

15

15

15

16

Group

2011

000s

7

2,395

2,479

4,881

262

148

530

940

(269)

671

5,552

5,552

55

5,607

879

81

960

2,154

(26)

2,128

2,519

5,607

Charity

2011

000s

7

2,395

2,480

4,882

262

148

526

826

(269)

667

5,549

5,549

55

5,604

876

81

957

2,154

(26)

2,128

2,519

5,604

Group

2012

000s

7

2,581

2,580

5,168

250

147

423

820

(124)

696

5,864

5,864

(21)

5,843

906

14

920

2,333

(35)

2,298

2,625

5,843

Charity

2012

000s

7

2,581

2,581

5,169

250

147

423

820

(128)

692

5,861

5,861

(21)

5,840

903

14

917

2,333

(35)

2,298

2,625

5,840

The accounts were approved by the Board of Trustees on 15th October 2012 and were signed on its behalf by:

Peter Stethridge, Chairman Richard Robinson, Treasurer

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2012

17


18/31

The following accounting policies have been applied consistently in dealing with items which are considered material in

relation to the accounts.

(a) Basis of preparation

The accounts have been prepared in accordance with the Charities Act 2011, applicable UK accounting standards and under

the historical cost accounting rules, as modified by the inclusion of fixed asset investments at market value, and they follow

the recommendations of Statement of Recommended Practice: "Accounting and Reporting by Charities" (SORP 2005)

issued in March 2005.

The consolidated accounts comprise those of the Royal Institution of Cornwall (RIC) and its wholly owned subsidiary, RIC

Museum Limited. The results of the subsidiary are consolidated on a line by line basis.

(b) Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the RIC's charitable objectives.

Unrestricted funds include a fund designated by the Trustees for the acquisition of objects.

Restricted funds are funds subject to specific trusts declared by the provider or created through legal process.

The endowment funds capital is required to be retained in perpetuity.

(c) Incoming resources

Incoming resources are recognised on a receivable basis, as soon as the RIC has entitlement to the income, there is

reasonable certainty of receipt and the amount is quantifiable. The value of services provided by volunteers is not included

in the accounts.

(d) Resources expendedExpenditure is recognised on an accruals basis, inclusive of irrecoverable VAT. Provisions are recognised when there is a

present obligation as a result of a past event, it is probable that a transfer of economic benefits will be required to settle

the obligation and the amount can be reliably estimated. Contractual arrangements are recognised as goods and services

are supplied. Non-performance related grants are recognised when a constructive obligation arises which results in the

payment being unavoidable.

Costs of generating funds are those costs incurred in attracting voluntary income, including grants, together with those

costs incurred in trading activities that raise funds.

Charitable activities comprise expenditure associated with learning, access and collections care activities, and include both

the direct costs and support costs relating to these activities.

Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with

constitutional and statutory requirements.

Support costs include central functions and are allocated to activity cost categories on the basis of management review

of estimated usage.

(e) Operating leases

Rentals payable under operating leases are recognised on a straight line basis over the term of the lease.

(f) Exceptional items

Items which derive from events or transactions which fall within the RICs ordinary activities, and which need to be

disclosed by virtue of their size or incidence in order for the accounts to give a true and fair view, are disclosed as

exceptional items in the Statement of Financial Activities.

NOTES TO ACCOUNTS

1. Accounting policies

18


19/31

(g) Heritage assets

Heritage assets are tangible fixed assets which are of historical, artistic or scientific importance that are held and

maintained principally for their contribution to knowledge and culture. Heritage assets are not capitalised, due to the

difficulty and cost involved in ascertaining reliable details of their historical cost or current valuation.

(h) Tangible fixed assets (other than heritage assets)

Tangible fixed assets costing more than 1000 are capitalised and included at cost including any incidental costs ofacquisition.

With effect from 2004, the RIC's freehold land and buildings have not been depreciated, as they are maintained in good

working order and are considered to have a residual value at least equal to the cost of the asset. Depreciation of other

assets is provided to write off the cost less residual value on a straight-line basis as follows:

Computer equipment 4 years

Other equipment and furniture 5 - 10 years

(i) Investments

Investment assets other than properties and unlisted shares are included in the balance sheet at market value. Investment

properties are included in the balance sheet at the Trustees' estimate of market value. Unlisted shares are valued at net

asset value as shown by the companys accounts. Unrealised gains and losses on revaluation and realised gains and losseson disposal are included in the Statement of Financial Activities and dealt with in the relevant fund.

(j) Intangible assets

Intangible fixed assets are capitalised at cost. No depreciation is charged in respect of intangible assets regarded as having

an indefinite useful life.

(k) Pension costs:

Defined benefit schemes

In accordance with the provisions of Financial Reporting Standard 17 Retirement Benefits (FRS 17), current service costs

and gains and losses on settlements and curtailments are included within Resources Expended in the Statement of

Financial Activities. Past service costs are recognised immediately in the Statement of Financial Activities if the benefits

have vested.Actuarial gains and losses are recognised immediately and shown separately within the Statement of Financial

Activities. The pension asset or liability, based upon actuarial valuation, is presented separately, after other net assets, in

the balance sheet. A pension asset is allocated to unrestricted funds unless the economic benefit of the asset will accrue

to a particular fund through reduced contributions or refunds, in which case it is allocated to that fund. A pension liability

is allocated to unrestricted funds unless a constructive liability arises to fund the deficit and could properly be met from

a particular fund, in which case it is allocated to that fund.

Defined contribution schemes

Contributions payable in respect of defined contribution schemes are charged to the Statement of Financial Activities inthe year in which they are payable.

19


20/31

The financial activities shown in the consolidated statement of financial activities include those of the RIC's wholly owned

subsidiary, RIC Museum Limited.There has been no financial activity in the company during this financial year.A summary

of the financial activities undertaken by the charity (i.e. excluding its subsidiary) is given below.

Gross incoming resources

Resources expended

Exceptional item

Gain on sale of fixed assets

Net gain/(loss) on investment assets

Actuarial gain/(loss) on pension scheme

Net movement in funds for the year

Total funds brought forward

Total funds carried forward

Represented by:

Unrestricted funds (including pension reserve)

Restricted funds (including pension reserve)

Endowment funds

2012000s

1,235

(938)

-

-

100

(261)

236

5,604

5,840

920

2,295

2,625

5,840

2011000s

1,251

(1,293)

177

1,906

(6)

465

2,500

3,104

5,604

957

2,128

2,519

5,604

The RIC's wholly owned subsidiary, RIC Museum Limited, undertakes a limited amount of trading activities. Its results and

net assets are summarised below.

Turnover

Cost of sales

Gross profit

Expenses

Net profit/(loss) retained

Current assets

Current liabilities

Net assets

Share capital & reserves

2012

000s

-

-

-

-

-

4

-

4

4

2011

000s

-

-

-

-

-

4

-

4

4

2. Financial activities of the charity

3. Subsidiary undertakings

20


21/31

Grants: Cornwall Council

MLA (Renaissance)

HLF

Other grants

Donations

Legacies

Sale of goods

Property income and event hire

Listed investment income

Deposit interest

Fees from workshops and otherlearning activities

Members subscriptions

Other

Voluntary

income

000s

261

572

104

36

17

1

991

Activities for

generating

funds

000s

21

49

70

Charitable

activities

000s

19

15

27

61

Investment &

other income

000s

111

2

-

-

113

Total

2012

000s

261

572

104

36

17

1

21

49

111

2

19

15

27

1,235

Total

2011

000s

173

737

141

53

(1)

15

38

32

5

30

9

19

1,251

Costs of generating funds:


Retail activities


Investment management

Charitable activities:


Learning & access

Collections care

Governance costs:

Direct costs

000s

28

6

20

6

205

228

262

7

762

Apportioned

support costs

000s

7

1

5

1

48

53

60

1

176

Total

2012

000s

35

7

25

7

253

281

322

8

938

Total

2011

000s

56

6

-

6

-

958

243

24

1,293

4. Incoming resources

5. Resources expended

21


22/31

6. Allocation of support costs


Retail activities


Investment management


Learning & access

Collections care

Governance

Premises

000s

3

1

2

1

23

26

30

1

87

Management &administration

000s

3

1

2

1

24

26

31

1

89

Total2012

000s

6

2

4

2

47

52

61

2

176

Total2011

000s

12

-

-

6

-

278

137

7

440

Direct expenditure is allocated to categories of activity. Support costs which cannot be directly allocated to activities are

instead apportioned on the basis of estimated space usage (in the case of premises costs) or estimated usage (in the case

of management and administration costs).

Wages & salaries

Employers national insurance

Pension costs

2012

000s

434

32

-

466

2011

000s

502

36

62

600

Members of the Board of Trustees receive no remuneration for their services. No Trustees were reimbursed for expenses

during the year (2011: nil). The RIC paid 1,166 (2011: 1,000) for the purchase of Trustee indemnity insurance during

the year.

The average number of staff employed during the year, on a full time equivalent basis, was 17 (2011: 19) and the staff

costs were as follows:

Employers pension contributions for the year totalled 64,000. However, FRS 17 adjustments of 64,000 for the defined

benefit scheme negated the cost. This adjustment is not a realisable inflow of funds. No employees earned more than

60,000.

Audit services

2012

000s

4

2011

000s

4

7. Trustees & staff costs

8. Auditors remuneration

22


23/31

Cost or valuation

At 1st April 2011

Additions

Disposals

At 31st March 2012

Depreciation

At 1st April 2011

Charge for the year

Disposals

At 31st March 2012

Net book value

At 31st March 2012

At 31st March 2011

Freehold

premises

000s

2,405

70

-

2,475

124

-

-

124

2,351

2,281

Furniture &

equipment

000s

521

150

-

671

407

34

-

441

230

114

Group

Total

000s

2,926

220

-

3,146

531

34

-

565

2,581

2,395

The Museums collections are diverse in origin and nature. The vast majority of the objects held were acquired many years

ago. In the opinion of the Trustees, reliable information on cost or valuation is not available for the Museums collections.

This is owing to the lack of information on purchase cost; the lack of comparable market values; the diverse nature of the

objects; and the volume of items held.These collections are therefore not reported as assets in the balance sheet.The value

of heritage assets held by the RIC is very significant.

The RICs policy for the acquisition, preservation, management and disposal of heritage assets is available on its website.

All of the tangible fixed assets are held by the charity.

Intangible fixed assets comprise copyrights relating to the literary work of A L Rowse.

9. Intangible assets

10. Tangible fixed assets

11. Heritage assets

23


24/31

Group (all in the UK)

Listed investmentsUnlisted investments

Bank and other deposits

Charity:

As above

Investment in subsidiary undertaking

Movement in investment assets:

At 1st April 2012

Additions at cost

Disposals at carrying value

Net gain/(loss) on revaluation

At 31st March 2012

Fixed and current asset investments:

Fixed asset investments

Current asset investments

Unrestricted

000s

147-

-

147

2011

000s

2,61611

-

2,627

2,627

1

2,628

730

1,939

(36)

(6)

2,627

2,479

148

2,627

2012

Restricted

000s

--

-

-

Endowment

000s

2,56911

-

2,580

Total

000s

2,71611

-

2,727

2,727

1

2,728

2,627

195

(120)

25

2,727

2,580

147

2,727

Trade debtors

Prepayments and accrued income

Grants receivable

Legacies receivable

Value added tax

Other debtors

Charity

2011

000s

87

14

151

-

10

-

262

Group

2011

000s

87

14

151

-

10

-

262

Charity

2012

000s

54

24

150

-

22

-

250

Group

2012

000s

54

24

150

-

22

-

250

Trade creditors

Accrual and deferred income

Other creditors

Charity

2011

000s

87

53

129269

Group

2011

000s

87

53

129269

Charity

2012

000s

87

20

21128

Group

2012

000s

87

20

17124

12. Investments

13. Debtors

14. Creditors: amount falling due within one year

24


25/31

(i) Unrestricted Funds:General fund

General fund asset reserve

General fund pension reserve

Note

(a)

Balance

1 April

2011

000s

328

551

81

960

Incoming

resources

000s

300

-

18

318

Resources

expended

000s

(270)

-

57

(213)

Transfers,

gains/losses

000s

(15)

12

(142)

(145)

Balance

31 March

2012

000s

343

563

14

920

(ii) Restricted Funds:

Buildings

Renaissance Hub

HC Cardew-Rendle

DCMS Wolfson

Reverend Selkirk

PAS

Restormel MDS

Winston Graham

Hawkins Galsworthy

Heritage Lottery FundOther

Renaissance Hub pension reserve

Note

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)

Balance

1 April

2011

000s

1,642

187

183

20

51

1

8

9

53

2,154

(26)

2,128

Incoming

resources

000s

-

572

30

-

-

21

-

3

70

104108

908

3

911

Resources

expended

000s

-

(518)

(32)

-

(3)

(25)

-

-

(68)

(1)(85)

(732)

7

(725)

Transfers,

gains/losses

000s

-

-

-

-

-

3

-

-

-

-

3

(19)

(16)

Balance

31 March

2012

000s

1,642

241

181

20

48

-

8

12

2

10376

2,333

(35)

2,298

(a) The general fund pension reserve relates to the defined benefit pension scheme asset/liability referred to at note 17.

(a) The buildings fund represents funding received for capital building projects.

(b) The Renaissance Hub fund comprises funding received from the Museums, Libraries and Archives Council (MLA), via

the South West Regional Museum Hub, as part of the Renaissance in the Regions programme. The programme aims

to provide leadership in museum practice and to improve standards in the sector.

(c) The H C Cardew-Rendle income fund comprises income generated by the H C Cardew-Rendle endowment fund

which can be applied to advancing the education of the public in the history of Cornwall and the Stanneries.(d) The DCMS/Wolfson fund represents grant funding received for the acquisition of display cases.

(e) The Reverend Selkirk fund relates to a legacy to be used for the purchase of materials and equipment for the RICs

Courtney Library.

(f) The PAS fund relates to funding received under the Portable Antiquities Scheme.The resulting deficit in 2011/12 has

been written off to Unrestricted funds.

(g) The Restormel MDS fund relates to the provision of support for museums in the Restormel district of Cornwall.

(h) The Winston Graham fund relates to a historical prize competition.

(i) The Heritage Lottery Fund relates to the capital expenditure for the installation of the Ancient Civilisations

exhibition in the De Pass gallery.

(j) The Renaissance Hub pension reserve arises from the pension asset/liability referred to at note 18(i).

15. Funds

25


26/31

(iii) Endowment Funds:HC Cardew-Rendle

Winston Graham

Bi-centennial appeal

Hawkins-Galsworthy

Note

(a)

(a)

(b)

(c)

Balance

1 April

2011

000s

549

34

14

1,922

2,519

Incoming

resources

000s

-

-

6

-

6

Resources

expended

000s

-

-

-

-

-

Transfers,

gains/losses

000s

13

1

-

86

100

Balance

31 March

2012

000s

562

35

20

2,008

2,625

(a) The HC Cardew-Rendle and Winston Graham endowment funds represent permanent endowments, from legacies,

to be held indefinitely and the income used for the purposes set out at note 15(ii)(c) and 15(ii)(h) respectively.

(b) The Bi-centennial Appeal fund represents permanent endowment arising from donations in respect of the RICs

bicentenary in 2018.

(c) The Hawkins-Galsworthy endowment was created following the sale of two paintings and the investment proceedsare to be used for the care of the RICs collections.

Intangible fixed assets

Tangible fixed assets

Fixed asset investmentsNet current assets

Pension asset/(liability)

Unrestricted

funds

000s

7

556

-343

14

920

Restricted

funds

000s

-

2,025

-308

(35)

2,298

Endowment

funds

000s

-

-

2,58045

-

2,625

Total

000s

7

2,581

2,580696

(21)

5,843

Defined benefit scheme

A number of the RIC's employees are members of a defined benefit pension scheme, the Cornwall Council Pension Fund

(the "CCP Fund), to which the employees and the RIC contribute. The assets of the CCP Fund are held separately in a fund

administered for the benefit of local authority employees and employees of other specified bodies and managed in

accordance with the Local Government Pension Scheme Regulations 1997 (as amended).

Actuarial valuations of the CCP Fund are obtained triennially, for the purpose of setting employer contributions. The last

such valuation was at 31 March 2010, as a result of which the RIC's employer contribution rate for the year ending 31

March 2011 was set at 21%.

An updated actuarial valuation has been obtained for FRS17 purposes in respect of the RIC's participation in the scheme

for the year ended 31 March 2012.

Assumptions:The principal actuarial assumptions used at the balance sheet date were as follows:

17. Pension schemes

16. Analysis of group net assets by fund

26


27/31

Expected return on assets

The expected return on assets was based on the long-term future expected investment return for each asset class as at

the beginning of the period (i.e. 31 March 2009 or date of joining the fund if later). The assumed returns are net of

investment expenses. Allowance was included in the cost of accruing benefits for administration expenses.

Balance sheet

Mortality:

Life expectancy was based on the fundsVitacurves with improvements from 2007 in line with the medium cohort and a

1% p.a. underpin. Based on these assumptions, the average future life expectancies at age 65 are summarised:

Financial assumptions:

Inflation/pension increase rate

Salary increase rate


Discount rate

Breakdown of the expected return on assets by category:

Equities

Bonds

Property

Cash

2012

2.5%

4.8%

5.5%

4.8%

6.2%

4.0%

4.4%

3.5%

2011

2.8%

5.1%

6.8%

5.5%

7.5%

4.9%

5.5%

4.6%

Males

21.3 years

23.2 years

Females

23.4 years

25.6 years

Current pensioners

Future pensioners

The fair value of the assets in the scheme was as follows:

Equities

Bonds

Property

Cash

Total

The amounts recognised in the balance sheet were as follows:

Fair value of scheme assetsPresent value of funded liabilities

Net asset/(liability)

Amount in the balance sheet

Liabilities

Assets

Net asset/(liability)

2012

000s

889

209

92

118

1,308

1,308(1,329)

(21)

(21)

(21)

2011

000s

858

167

83

83

1,191

1,191(1,136)

55

-

55

-

55

27


28/31

Statement of financial activities

Amounts for the current and previous four periods

The amounts recognised in the statement of financial activities were as follows:

Current service cost

Interest cost

Expected return on employer assets

Past service costs

Losses/gains on curtailments

Total

Actual return on scheme assets

Changes in the present value of the defined benefit obligation were as follows:

Opening defined benefit obligation

Current service cost

Interest costContributions by members

Actuarial gains/(losses)

Past service costs

Losses on curtailments & settlements

Estimated benefits paid

Closing defined benefit obligation

Changes in the present value of scheme assets were as follows:

Opening fair value of scheme assets


Contributions by members

Contributions by the employer

Actuarial gains/(losses)

Benefits paid

Closing fair value of scheme assets

2012

000s

37

63

(84)

-

7

23

26

1,136

37

6314

95

-

7

(23)

1,329

1,191

84

14

101

(59)

(23)

1,308

2011

000s

41

83

(74)

(177)

-

(127)

104

1,636

41

8315

(417)

(177)

-

(45)

1,136

1,056

74

15

43

48

(45)

1,191

Fair value of scheme assets

Present value of defined benefit obligation

Surplus/(deficit)

Experience gains/(losses) on assets

Experience gains/(losses) on liabilities

Surplus/(deficit)

Experience gains/(losses) on assets

Experience gains/(losses) on liabilities

2012

000s

1,308

(1,329)

(21)

(59)

(16)

%

(1.58%)

(4.51%)

(1.2%)

2011

000s

1,191

(1,136)

55

48

190

%

4.84

4.03

16.73

2010

000s

1,056

(1,636)

(580)

171

-

%

(35.45)

16.19

-

2009

000s

748

(824)

(76)

(282)

-

%

(9.22)

(37.70)

(2.91)

2008

000s

890

(824)

66

(487)

420

%

8.01

(54.72)

(50.87)

Estimated contributions for the year ending 31 March 2013

The estimated employer contributions for the year ending 31 March 2013 are approximately 41,000

28


29/31

Defined contribution scheme

Membership of the defined benefit scheme was closed to new entrants during the year ended 31 March 2008, and new

employees are now instead offered membership of a Standard Life Group Personal Pension Plan, which is a defined

contribution scheme. Contributions payable during the year in respect of the new scheme amounted to 20,050 (2011:

16,403). The contributions outstanding at 31 March 2012 amounted to 2,989 (2011: 1,377).

The RIC is a registered charity and no provision is considered necessary for taxation.

There are no contingent liabilities or assets at the balance sheet date.

There were no post balance sheet events.

Annual commitments under operating leases expiring:

After more than five years - land & buildings

2012

000s

6

2011

000S

6

18. Taxation

19. Contingent liabilities & assets

20. Post balance sheet events

21. Financial commitments

29


30/31

Royal Institution of CornwallCharity Registration Number 221958


31/31

ROYAL INSTITUTION OF CORNWALL

ROYAL CORNWALL MUSEUM

COURTNEY LIBRARY

River Street, Truro, Cornwall TR1 2SJ

Telephone: 01872 272205

Fax: 01872 240514

www.royalcornwallmuseum.org.uk

Royal Institution of CornwallCharity Registration Number 221958

Royal Institution of Cornwall Annual Report 2011-2012

Documents

Transcript of Royal Institution of Cornwall Annual Report 2011-2012