Ben Uri Gallery and Museum Limited (A company limited by guarantee)

Notes to the financial statements

For the Year Ended 31 March 2022

2. Accounting policies (continued)

2.3 Income

All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably

Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the company where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.

Donated services or facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Company which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer an economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably Expenditure is classified by activity The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity Direct costs attributable to a single activity are allocated directly to that activity Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Expenditure on raising funds includes all expenditure incurred by the Company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.

Ben Uri Gallery and Museum Limited (A company limited by guarantee)

Notes to the financial statements

For the Year Ended 31 March 2022

2. Accounting policies (continued)

2.4 Expenditure (continued)

Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities. Governance costs include costs of the preparation and examination of the statutory accounts, the costs ,if any, of,trustee meetings and the cost of any legal advice to the Council members on governance or constitutional matters.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £100 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following bases:

Short-term leasehold property - Over the period of the lease Fixtures and fittings - 15% reducing balance

Office equipment & other assets - 25% & 15% straight line

The Collection - recent acquisitions - Nil

2.7 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities

Investments held as fixed assets are shown at cost less provision for impairment.

Ben Uri Gallery and Museum Limited (A company limited by guarantee)

Notes to the financial statements

For the Year Ended 31 March 2022

2. Accounting policies (continued)

2.8 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.12 Financial instruments

The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.13 Pensions

The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year

2.14 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.

Ben Uri Gallery and Museum Limited (A company limited by guarantee)

Notes to the financial statements

For the Year Ended 31 March 2022

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

4 Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

5. Income from donations and legacies

Ben Uri benefited from the full time services provided free by one of the trustees. This is estimated and disclosed in note 23, along with details of amounts donated by the Trustees.

Ben Uri Gallery and Museum Limited (A company limited by guarantee)

Notes to the financial statements

For the Year Ended 31 March 2022

Ben Uri Gallery and Museum Limited (A company limited by guarantee)

Notes to the financial statements

For the Year Ended 31 March 2022

Ben Uri Gallery and Museum Limited (A company limited by guarantee)

Notes to the financial statements

For the Year Ended 31 March 2022

Fees payable to the Company's auditor and its associates for the audit of the company's accounts

Ben Uri Gallery and Museum Limited (A company limited by guarantee)

Notes to the financial statements

For the Year Ended 31 March 2022

12. Staff costs (continued)

The average number of persons employed by the Company during the year was as follows:

The average headcount expressed as full-time equivalents was:

No employee received remuneration amounting to more than £60,000 in either year.

13. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL)

During the year ended 31 March 2022, £7,186 Trustee expenses have been incurred (2021 - £NIL)

14 Tangible fixed assets

Ben Uri Gallery and Museum Limited (A company limited by guarantee)

Notes to the financial statements

For the Year Ended 31 March 2022

14. Tangible fixed assets (continued)

15. Heritage assets

Assets recognised at cost

Ben Uri Gallery and Museum Limited (A company limited by guarantee)

Notes to the financial statements

For the Year Ended 31 March 2022

As at 31 March 2022, heritage assets comprising of purchased and donated artwork accessioned to the collection since April 2001 has been valued at current commercial market value by the museum's internal resources, using their considerable expertise, at £9,074,230 (2021 - £9,440,203).

On 31 August 2019 Ben Uri transferred heritage assets from the core collection with a valuation of £8,217,061 into the newly formed linked charity pre-eminent collection.

Ben Uri adheres to a strict acquisitions process, which considers a range of factors including the cultural and historical relevance and importance of an artwork and its condition. The Collection and Acquisition Committee approve additions to the collection The committee is guided by the museum's acquisition policy and regularly consults with other experts in the specialist field under scrutiny Every work is researched for provenance between the Nazi era of 1933-1945 prior to acquisition.

The charity maintains a register of heritage assets and also maintains an online catalogue on its website. Heritage assets accessioned have been re-valued internally as at 31 March 2020. Following key factors have been taken into consideration -

15. Heritage assets (continued)

Ben Uri Gallery and Museum Limited (A company limited by guarantee)

Notes to the financial statements

For the Year Ended 31 March 2022

Ben Uri Gallery and Museum Limited (A company limited by guarantee)

Notes to the financial statements

For the Year Ended 31 March 2022

17. Stocks (continued)

The donated artworks were given in lieu of money, to be sold for the benefit of the charity

Notes to the financial statements

For the Year Ended 31 March 2022

19. Creditors: Amounts falling due within one year

Other creditors reflects a long standing loan to the charity from one of it's Trustee's and the outstanding sum is £291,948 (2021 - £311,623). There were repayments during the year. Repayments are only made as and when the charity assessed it could comfortably sustain the reimbursements. The sum can vary as the lender facilitates the cash flow requirements of the charity and although the loan has no fixed repayment date the loan was called many years ago to be paid when the Trustees consider appropriate. During the year no interest was charged (2021 - £nil). See note 24 Related Party transactions.

20. Financial instruments

Financial assets measured at fair value through income and expenditure comprise….

Ben Uri Gallery and Museum Limited (A company limited by guarantee)

Notes

Ben Uri Gallery and Museum Limited (A company limited by guarantee)

Notes to the financial statements

For the Year Ended 31 March 2022

21. Statement of funds (continued)

Statement of funds - prior year

22 Analysis of net assets between funds

Analysis of net assets between funds - current year

Ben Uri Gallery and Museum Limited (A company limited by guarantee)

Notes to the financial statements

For the Year Ended 31 March 2022

22. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year