The Trustees present their report and financial statements for the year ended 31 March 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association , the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) " (effective 1 January 2019 ).
The European Museum Forum (EMF) provides the legal and organisational framework for the annual European Museum of the Year Award scheme (EMYA).
The charity was set up to promote excellence in innovation and public quality in museum practice, encouraging the exchange of best practice and ideas within the sector. It works within an overarching commitment to citizenship, democracy and human rights, to sustainability and to bridging cultures and social and political borders. Each award within the EMYA scheme - of which the principal is the European Museum of the Year Award - reflects different aspects and dimensions of these values.
The funds of the charity are intended to be applied to maintain, improve and advance museum excellence, and in particular assist and support museum development for public benefit.
Members of the Board and Judging Panel work in dialogue and through consultation to identify professional quality, innovation and creativity of museums in Europe across the vast differences in scale, funding, obligations and contexts. The charity achieves this through a highly structured judging process, the regular appointment and renewal of members, as well as long term succession planning and careful governance.
The T rustees were empowered to meet the objectives by:
·Organising an annual competition to encourage museums to improve and develop their public displays and public engagement programmes;
·Promoting new approaches to public engagement; museum management; display and interpretation through the means of publishing; participating in international debates, building partnerships; and most notably by holding its annual assembly as part of the annual European Museum of the Year Award Ceremony.
The T rustees were empowered to invest any monies held at their discretion and administer the charity’s funds. The T rustees were also at liberty to apply any monies held for the general purposes of the charity. Some costs were met by the Council of Europe, European Country Ministries, international and national sponsoring bodies.
The T rustees confirm that they referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives.
A three year business plan (2020 - 2022) communicates the strategies and priorities that has framed and guided the work of Board and the Jury in 2021- 2022.
It has been a priority for the board to work towards a diverse composition of the board as well as of the jury, in terms of regions across Europe, professional background, ethnic or religious background, age, sexual orientation. It has furthermore been the intention to work towards a somewhat younger profile of the jury, while securing that the board continuously holds a number of trustees that are active museum directors and active voices in the international field of museums. For the year 2021 – 2022 three new judges were appointed as well as one new trustee, as previous trustees and judges retired.
There continues to be an emphasis on the role that EMF and EMYA play in showcasing the content and knowledge of many years of systematic assessment of European museums. The core responsibilities and activities for EMF/EMYA remain the annual competition and annual conference and award ceremony.
Over the years the EMYA scheme has developed into a series of different awards, each with their own specific profile. Responding to long term societal changes as well as current issues, and reflecting the challenges, obligations and opportunities which museums face in the 21st century, in 2021 the board revised and updated the descriptions for all the six awards that now make up the scheme as a whole for greater clarity and transparency.
Winners of the EMYA 2020 awards were to have been announced and celebrated in an annual conference and award ceremony in Cardiff in May 2020, which, unfortunately, had to be cancelled due to Covid-19. The EMYA 2021 in Portimao was cancelled for that same reason. No physical assembly nor ceremony was able to take place in 2020 and 2021. A combined EMYA 2020 and EMYA 2021 award ceremony took place as a live digital event, with a total of 88 candidates for EMYA 2020 and 2021. This event was hosted by the Boris Yeltsin Presidential Center, former winner of the Kenneth Hudson award, who has given EMF/EMYA a huge in-kind subsidy in this context, in a difficult period for them.
The EMYA 2022 competition was opened for candidate applications in January 2021. 60 candidates were visited by judges during the summer of 2021. Once again former judges were recruited to supplement the jury, to make use of particular routes between otherwise closed countries due to Covid-19 as well as to manage the workload of an extraordinary number of candidates, as some candidate museums that were inaccessible due to Covid-19 had been carried over from the 2021 to the 2022 competition year. In November 2021 the annual judging meeting took place as a physical meeting in Portimao, with the participation also of the CoE representative. During the winter and early spring of 2022 EMF was fully engaged in the preparation for the annual conference and award ceremony, planned to take place in Tartu, with the Estonian National Museum, also a former Kenneth Hudson award winner, as host in May 2022.
Every year EMF publishes a catalogue of the candidate museums and a catalogue of the winning museums. In 2021 a major decision was taken, in consultation with the Council of Europe, who co-finances the catalogues, to shift the publications to the digital medium, with much more extensive information, including images and videos of each museum, and a print-at-home option.
Total income for the year amounted to £ 45,303 (202 1 : £ 57,638 ). Total expenditure amounted to £ 53,681 (202 1 : £ 38,888 ) which included foreign exchange losses of £ 698 (202 1 losses of £ 3,966 ).
There was a deficit of £ 8,378 (202 1 surplus of £ 18,750 ) in the year. This brought total unrestricted reserves to £ 77,025 at 31 March 202 2 (2021: £85,403) .
Reserve policy
Whilst the Trustees consider future plans, the charity is holding £ 77,025 in unrestricted reserves which is the equivalent to about 1.4 years expenditure based on 202 1 /2 2 levels. Although, it is important to make clear that there is a direct relationship between income and expenditure. If the charity were to receive no income from candidates there would also be no expenditure on judges' travel, conferences etc. The running costs of the charity are low without these costs, and the reserves would therefore last for years rather than months.
Plans for the future
There continues to be an emphasis on the role that EMF and EMYA play in showcasing the content and
knowledge of many years of systematic assessment of European museums. The core responsibilities and
activities for EMF/EMYA remain the annual competition and annual conference and award ceremony, and the coming years will presumably still be marked by readjustments and adaptions to the Covid-19 era. It is still too early to see whether or which longterm impacts the pandemic has had on the museum sector in Europe.
EMYA has proven its resilience over many decades, and in the coming period will have to remain strongly
focused on and committed to core mission, while remaining flexible and ready to adapt to potentially changing conditions.
At the end of the financial year 2021– 2022, EMF was approaching its annual conference in May 2022, planned fully in the traditional, in person format. Coming conferences will, most likely, be hosted by Barcelona in 2023, and most likely in Portimao in 2024. A continuous evaluation of the current model and exploring and considering alternative models for identifying and contracting with conference hosts, is one important aspect of the board’s tasks.
European Museum Forum (EMF) is a company limited by guarantee, registered number 07243034, and a registered charity number 1136790 governed by its Memorandum & Articles of Association incorporated 4 May 2010.
The Trustees, who are also the Directors for the purpose of company law, and who served during the year were:
Ex -officio members of the Board (who are not a trustee):
Ms Marlen Mouliou, Chair of EMYA judging panel
Trustees are appointed by members of the Board of Trustees. There may be no more than nine and no fewer than five Trustees at any one time. The Board of Trustees appoint among its members a Chair, a Treasurer and a Trust Secretary.
Trustees are appointed by recommendation. Presently, all Trustees have had experience of serving on boards of international cultural organisations. If a less experienced trustee would be recruited in future, the EMF intends to give such a person the appropriate training.
The key decisions pertaining to EMF policy and governance are taken by the board as a whole. communications and marketing (including publications); fundraising and special projects.
All members of the Board will also take on particular duties as and when required. The Board will meet in person once a year during the EMF conference to discuss core principles and strategic directions, and meet online during the year as needed.
The EMF B oard appoints the EMYA jury, which then takes decisions pertaining to the awards independently, provided there are no irregularities in the judging process. Any potential conflicts of interest of the jury members are brought to the attention of the EMF B oard.
The EMF Board identifies and appoints National Correspondents, who are responsible for raising awareness of EMF and EMYA, identify and support potential award candidates in their countries.
Small company provisions
This report has been prepared in accordance with the special provisions relating to small companies with part 15 of the Companies Act 2006.
The Trustees' r eport was approved by the Board of Trustees.
The Trustees, who are also the Directors of European Museum Forum for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
I report to the Trustees on my examination of the financial statements of European Museum Forum (the charity) for the year ended 31 March 2022.
This report is made solely to the charity's T rustee s , as a body, in accordance with Section 145 of the Charities Act 2011. My examination has been undertaken so that I might state to the charity's T rustee s those matters I am required to state to them in an Independent Examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's T rustees as a body, for my examination, for this report, or for the opinions I have formed.
As the Trustees of the charity (and also its Directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable d irections given by the Charity Commission under section 145(5)(b) of the 2011 Act.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
European Museum Forum is a private company limited by guarantee incorporated in England and Wales. The registered office is Museums Association, 42 Clerkenwell Close, London, EC1R 0AZ.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The accounts have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
The Charity has taken advantage of the provisions in the SORP for Charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
At the time of approving the accounts the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, the Trustees continue to adopt the ‘going concern’ basis of accounting in preparing the accounts .
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
Income is recognised in the period in which the charity is entitled to receipt and the amount can be measured with reasonable certainty.
Award Entry Fees are accounted for when received, except for those amounts relating to future awards which are carried forward to the relevant year as deferred income.
Grants are recognised in full in the statement of financial activities in the year in which they are receivable. Income is deferred only when the charity must fulfil conditions before being entitled to it or where the donor has specified that the income is to be expended in a future period.
Foreign donations and grants are shown net of bank charges incurred bringing them into the charity's sterling bank account.
Expenditure is accounted for in the period in which it is incurred. The irrecoverable element of VAT is included within the item of expense to which it relates.
Where an item of expenditure falls directly within one cost category it is attributed to that category only. Where expenditure involves more than one category it is apportioned on a reasonable and justifiable basis.
The costs of some activities associated with, but not managed by EMF have been met directly by the European Country Ministries, they are not under the control of EMF and national and local bodies. These costs have not been included within the financial statements as no reliable estimate of the amounts involved can reasonably be obtained.
Governance costs comprise the costs of the charitable administration and complying with constitutional and statutory requirement aspects of the charity.
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Heritage assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life.
It is the opinion of the Trustees that the residual value of the sculpture is equal to or in excess of the cost and therefore the annual depreciation charge in relation to the sculpture continues to be nil.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
Transactions in foreign currencies are translated at the average rate during the year. Balances denominated in foreign currencies are translated at the rate of exchange prevailing at the year end. Exchange gains/losses are charged to the Statement of Financial Activities in the period in which they are incurred.
Taxation
The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income and gains falling within these exemptions.
The charity is not able to recover Value Added Tax. Expenditure is recorded in the accounts inclusive of VAT.
In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Donated goods and services
Donated goods and services
Donated services were provided to European Museum Forum by EMF-Municipality of Portimão protoco in the form of staff costs. Staff costs total £ 12,7 76 (20 2 1: £12,794) and are stated at an estimated proportion of salary paid to each staff member in respect of the work undertaken on behalf of EMF.
Other charitable income
Project and other costs
Meeting costs
Foreign exchange (gains)/losses
Other costs
All Costs have been recharged to Annual Competition and Assembly.
Governance costs includes payments to the Independent Examiners for Independent Examiner's fees of £1, 93 0 (202 1 : £1,7 6 0) and accountancy fees of £1, 599 (202 1 : £1,2 96 ).
None of the Trustees (or any persons connected with them) received any remuneration during the year (202 1 : £nil).
During the year 2 Trustee s and 2 ex officio member s were reimbursed expenses of £1,771 relating to EMF projects (202 1 : 1 Trustee and 1 ex officio Trustees were reimbursed £ 397 ) .
Employee costs include donated staff costs from EMF-Municipality of Portimão protocol for the amount of £12,7 76 (202 1 : £ 12,794 ) for administrative support. Previous to this agreement staff costs where invoiced directly to the charity.
The average monthly number of employees during the year was:
The Henry Moore sculpture is awarded to the winning museum and held for a year by them. The sculpture is insured by the winning museum for £40,000. It is the opinion of the trustees that the residual value of the asset is in excess of the cost and therefore the annual depreciation charge is £nil.
Other than disclosed in note 8, there have been no other related party transactions.
European Museum Forum is incorporated under the Companies Act as a company limited by guarantee. The liability of the members is limited to £10.