THE NATURAL HISTORY MUSEUM SPECIAL FUNDS TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2013
Trustees' Annual Report For the year ended 31st March 2013 Legal and administrative details Charity name The Natural History Museum. Principal address The Natural History Museum, Cromwell Road, London SW7 5BD. Trustees Appointment period Appointed by Mr Oliver Stocken (Chairman) To 31 December 2013 Prime Minister Mr Daniel Alexander QC To 11 May 2014 Co-opted Professor Sir Roy Anderson FRS FMedSci To 31 March 2016 Co-opted Professor Sir John Beddington CMG Kt FRS To 14 May 2017 Co-opted Ms Louise Charlton To 30 April 2014 Prime Minister Professor David Drewry To 5 May 2016 Prime Minister Professor Christopher Gilligan To 17 May 2015 Prime Minister Professor Alex Halliday FRS To 28 February 2014 Royal Society Professor Sir John Holman To 30 June 2015 Prime Minister Dr Derek Langslow CBE To 5 May 2016 Prime Minister Sir David Omand GCB To 19 January 2014 Prime Minister Ms Kim Winser OBE To 17 February 2017 Prime Minister Bankers The Royal Bank of Scotland, Nat West Branch, 186 Brompton Road, London SW3 1HL. Legal advisors Farrer & Co, 66 Lincoln's Inn Fields, London WC2A 3LH Investment Advisors JPMorgan Fleming Asset Management, 10 Aldermanbury, London EC2V 7RF Auditors Kingston Smith LLP, Chartered Accountants, Devonshire House, 60 Goswell Road, London EC1M 7AD. Page: 1
Trustees' Annual Report For the year ended 31st March 2013 Background and status On 15th February 2000 the Charity Commission for England and Wales gave approval for the establishment of a scheme for the administration of a number of individual funds held within The Natural History Museum Special Funds. The scheme is governed by a charity known as The Natural History Museum Special Funds Trust which was established under a charitable trust deed dated 3rd November 1999. The Trust is administered by and consolidated with The Natural History Museum which is an exempt charity and has been granted full charitable status for tax purposes by HMRC. Objectives The objective of the Trust is to disburse funds for general scientific purposes of the Natural History Museum in accordance with a policy approved by the Science Group of the Museum. This takes account of the objectives of the original funds. These were: General Fund Maxwell-Knight Fund Park Fund Godman Fund Sherborn Fund Baker Fund Ramsbottom Fund Bryozoology Fund Ashton Hamlyn Memorial Fund Rothschild Fund Swiney Fund Birch Fund Museum Invested Fund Bairstow Fund Stanley Wilson Greene Fund Isabella Gordon Fund Governance and management The Trustees of the are the Trustees of the Natural History Museum. In accordance with the British Museum Act 1963, eight of the Trustees are appointed by the Prime Minister, one by the Royal Society, and three by the existing Trustees. During 2012/13 the Trustees were as follows: Mr Oliver Stocken (Chairman) Mr Daniel Alexander QC Professor Sir Roy Anderson FRS FMedSci Ms Louise Charlton Professor David Drewry Professor Christopher Gilligan Professor Alex Halliday FRS Mr Ian Henderson CBE FRICS (retired 2 February 2013) Professor Sir John Holman Dr Derek Langslow CBE Professor Georgina Mace CBE FRS (retired 5 August 2012) Sir David Omand GCB Ms Kim Winser (appointed 18 February 2013) All Trustees attend a trustee induction course. Applications for awards and disbursements from the trust are made to a managing group comprising the Science Policy Coordinator (chair), four members nominated by the Research Committee, the Collections Committee, the Science Information Committee and the Science Education Committee respectively, and a member from the Library. The managing group meets up to twice a year to review and approve applications, and to review the progress of previous disbursements. Financial administration is carried out by the Finance Department of the Natural History Museum. Page: 2
Trustees' Annual Report For the year ended 31st March 2013 (Continued) Activities during the year The managing group met once during the year in October 2012 and made eighteen awards amounting to 52,029 for the purposes for which the fund was established. It is anticipated that a similar level of awards will be made in future years. Financial review for 2012/13 During the year the value of the fund increased by 170,239 (2012 - decrease 22,716). At 31st March 2013 the value of the Fund amounted to 1,382,134 (2012-1,211,895) including investments valued at 1,288,630 (2012-1,137,783) and net cash of 101,005 (2012-77,992). The Trust received investment income amounting to 43,014 (2012-40,511) and incurred expenditure of 23,622 (2012-63,389). The expenditure included amounts for scientific research projects. Accounting Policies The financial statements for the year ended 31st March 2013 have been prepared in accordance with the Charities Statement of Recommended Practice "Accounting and Reporting by Charities" (2005). The accounting policies are shown in Note 1 to the financial statements. Reserves Policy The reserves policy is to maintain the level of investments and disburse income as it arises in accordance with the objectives as described earlier. Investment Powers and policy Under the trust deed the Trustees may invest funds in any of the investments permitted by law for the investment of trust funds. The investment policy is to achieve a balance between income and growth with moderate to low risk. Risk Management The Trustees of the Natural History Museum have identified and keep under review all major risks and oversee the operation of widespread risk management practices, including the work of the Audit and Assurance Unit which reports to the Trustees' Audit Committee. Auditors Kingston Smith LLP have indicated their willingness to continue in office and a resolution will be proposed that they be re-appointed auditors for the ensuing year. Page: 3
Trustees' Annual Report For the year ended 31st March 2013 (Continued) Statement of Trustees Responsibilities The Charities Act 2011 requires the trustees to prepare a statement of accounts for each financial year which comply with the regulations made under the Act. The trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and contain entries showing from day to day all monies received and monies expended by the charity and the matters in respect of which those transactions took place and also contain a record of the assets and liabilities of the charity. The law also sets out the Trustees responsibilities for the preparation and content of the Trustees Annual Report. The trustees are also responsible for safeguarding the assets of the charity and ensuring their proper application under charity law and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Statement of disclosure to auditors The trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the trustees have confirmed that they have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor. On behalf of the Board of Trustees. Oliver Stocken Date: Page: 4
Independent Auditors' Report to the Trustees of The Natural History Museum We have audited the financial statements of the Natural History Museum for the year ended 31 March 2013 which comprise the Statement of Financial Activities, the Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable laws and United Kingdom Accounting Standards (United Kingston Generally Accepted Accounting Practice). This report is made solely to the charity's trustees, as a body, in accordance with regulations in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to he charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charity and charity's trustees as a body, for our audit work, for this report, or for the opinion we have formed. Respective responsibilities of trustees and auditor As explained more fully in the Trustees' Responsibilities Statement, the trustees are responsible for the preparation of financial statements which give a true and fair view. We have been appointed as auditors under section 145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. Our responsibility is to audit 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 Board's 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 charity's 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 Annual 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 the financial statements In our opinion the financial statements: give a true and fair view of the state of the charity's affairs as at 31 March 2013 and of its incoming/outgoing resources and application of resources for the year then ended; and have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Charities Act 2011. Matters on which we are required to report by exception We 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: the information given in the Annual Report is inconsistent in any material respects with the financial statements; or sufficient accounting records have not been kept; or the financial statements are not in agreement with the accounting records and returns; or we have not received all the information and explanations we require for our audit Kingston Smith LLP Statutory auditor Devonshire House 60 Goswell Road London EC1M 7AD Date: Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006. Page: 5
Statement of Financial Activities For the year ended 31st March 2013 Zimmerman Zimmerman Unrestricted Unrestricted Restricted Endowment Endowment Total Total Note Funds: Funds: Funds Funds Funds 2013 2012 General Designated Incoming Resources Investment income 2 39,286-3,728 - - 43,014 40,511 Resources Expended Costs of generating funds Investment managers' fees 162-16 - - 178 166 Charitable expenditure Grants payable 3-19,668 1,211 - - 20,879 60,634 Governance costs 4 2,565 - - - - 2,565 2,589 Total Resources Expended 2,727 19,668 1,227 - - 23,622 63,389 Net Incoming/(outgoing) Resources 36,559 (19,668) 2,501 - - 19,392 (22,878) Unrealised gain on investment assets 6 66,066 - - 13,210 71,571 150,847 162 Net movement in funds 102,625 (19,668) 2,501 13,210 71,571 170,239 (22,716) Transfer of awards made (44,270) 44,270 - - - - - Fund balances brought forward 522,853 48,152 1,442 99,587 539,861 1,211,895 1,234,611 Fund Balances carried forward 8 581,208 72,754 3,943 112,797 611,432 1,382,134 1,211,895 Page: 6
Balance Sheet at 31st March 2013 Note 2013 2012 Fixed Assets Investments - As held for direct charitable purposes 6 1,288,630 1,137,783 Current Assets Bank deposit accounts 101,499 70,165 Bank current accounts - 7,827 101,499 77,992 Current Liabilities Creditors: falling due within one year 7 (7,995) (3,880) Net Current Assets 93,504 74,112 Net Assets 1,382,134 1,211,895 Funds Permanent endowment funds Zimmerman 112,797 99,587 General 611,432 539,861 Total endowment funds 724,229 639,448 Restricted funds 3,943 1,442 Unrestricted income funds: Designated funds 72,754 48,152 General funds 581,208 522,853 Total unrestricted funds 653,962 571,005 Total charity funds 8 1,382,134 1,211,895 Approved by the Board of Trustees and authorised for issue on.. Oliver Stocken Trustee Page: 7
Notes to the Financial Statements For the year ended 31st March 2013 1 Accounting Policies The financial statements have been prepared under the historical cost convention as modified by the revaluation of investments and to conform with the requirements of the Statement of Recommended Practice (Accounting and Reporting by Charities) revised 2005. Accounting policies have remained unchanged from the previous year. Income arising and expenditure incurred during the year are accounted for on an accruals basis. Investments are included at market value at the balance sheet date. Any gain or loss on revaluation is taken to the Statement of Financial Activities. Funds The Unrestricted General Funds are funds which the Trustees are free to use in accordance with the charitable objectives. The Unrestricted Designated Funds are funds which have been setaside at the discretion of the trustees in order to meet the cost of grants awarded but not yet disbursed (see note 3). The Permanent Endowment Fund represents assets which must be held permanently by the charity. 2 Investment Income 2013 2012 JPMorgan Fleming - The Fledgeling UK Equity Fund 28,423 26,660 JPMorgan Fleming - The Fledgeling Bond Fund 14,165 13,244 Bank interest 426 607 43,014 40,511 3 Charitable Grants 2013 2012 Grants to individuals for travel and scientific research 20,879 60,634 18 new grants were awarded in the year and at 31st March 2013 72,754 (see note 8) has been awarded but not yet disbursed. Awards are only disbursed when commitments are entered into or expenditure is incurred by the recipient of the grant. 4 Governance Costs 2013 2012 The major expenses within this category are as follows: Audit and accountancy 2,400 2,400 Other miscellaneous expenses 165 189 2,565 2,589 Page: 8
Notes to the Financial Statements For the year ended 31st March 2013 (Continued) 5 Trustees' Remuneration The Trustees did not receive any remuneration or reimbursement of expenses from the Trust. 6 Investments Market Market Value Additions Increase Value 2012 2013 The Fledgeling UK Equity Fund 700,179-122,543 822,722 The Fledgeling Bond Fund Units 338,017-15,094 353,111 Zimmerman Equity Fund 67,217-11,764 78,981 Zimmerman Bond Fund 32,370-1,446 33,816 1,137,783-150,847 1,288,630 7 Creditors 2013 2012 Bank overdrafts 494 - Accruals - Grants 5,101 1,480 Accruals - Audit fees 2,400 2,400 7,995 3,880 8 Funds Balance at Gain Balance at 31st March Incoming Resources on 31st March 2012 Resources Expended Investments Transfers 2013 Unrestricted general 522,853 39,286 (2,727) 66,066 (44,270) 581,208 Unrestricted designated 48,152 - (19,668) - 44,270 72,754 Restricted fund 1,442 3,728 (1,227) - - 3,943 Permanent endowment 539,861 - - 71,571-611,432 Permanent endowment Zimmerman 99,587 - - 13,210-112,797 1,211,895 43,014 (23,622) 150,847-1,382,134 The transfer between unrestricted funds, from general to designated, is to set aside funds to meet the future costs of grants awarded but not yet disbursed. 9 Allocation of Assets between Funds Unrestricted Unrestricted Restricted Permanent General Designated Endowment Total Investments 564,401 - - 724,229 1,288,630 Current assets 24,802 72,754 3,943-101,499 Current liabilities (7,995) - - - (7,995) 581,208 72,754 3,943 724,229 1,382,134 Page: 9