40 Financial Statements 2021/22 PDF 130 KB
It is a statutory requirement to agree the annual financial statements for the Russell-Cotes Art Gallery and Museum and submit them to the Charity Commission by 31 January each year. The Committee are asked to review and agree the financial statements and the Letter of Representation prior to them being signed off by the Leader and Portfolio Holder for Finance and Transformation.
The Company Accountant presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'A' to these Minutes in the Minute Book.
It was a statutory requirement to agree the annual financial statements for the Russell-Cotes Art Gallery and Museum and submit them to the Charity Commission by 31 January each year. The Committee are asked to review and agree the financial statements and the Letter of Representation prior to them being signed off by the Leader and Portfolio Holder for Finance and Transformation.
It was asked, as Covid restrictions had still been in place for part of the year 2021/22, could the end of year figures be speculated upon, had they not been. It was advised that much of the expenditure had been covered by the Arts Council grant – cultural recovery fund – so the figures were not as it appeared in the accounts, as some monies were carried froward from the previous year. It was explained that in accountancy, income was included in the year it is received, rather than when it was used. The income received was as following: 19/20: £514K; 21/22: £486k, excluding grant income. Expenditure: 19/20: £1073; and 21/22: £1111.
In response to a question about the success of the business following Covid, it was explained that in comparison with pre-covid visitor figures, at the beginning of May 2021, 75% of visitors but by the end of the year 90% and now 100%. The entrance prices have slightly increased also. The focus had been on attracting visitors since re-opening and meeting expectations. The recovery had been above and beyond what was expected.
The external Auditor Nick Hiscox was in attendance and advised that difficulties encountered during the audit included, the charity not having a separate bank account, but using the Council’s, which underwrote the seeking of independent status. This had led to further audit work, to ensure the complete audit record. It was exceptional to have it done this way. There was also no separate VAT system. It was further advised that charities had different legislation for VAT purposes and HMRC are likely to recognise this also. In response to a question about valuations, it was explained that the big issue was the valuation of the building rather than the separate issues. The details referred to a building value based on an insurance valuation of the building, rather than a chartered surveyor’s valuation. It was felt that much of what had been discussed underwrote the reason for recommending separation from the Council. It was advised that a proper valuation of the building would be advisable before the externalisation is completed, for the next accounts.
RESOLVED that the Committee agree the financial statements and the Letter of Representation for the financial year 2021/22.