Trustees Report & Accounts for the year ended 31 March 2012

Royal Institution of Cornwall

Charity Registration Number 221958

Contents
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

Page
5 5 5 6 6 7 8 9/10 10 11 12 13 14

AUDITORS REPORT

15

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2011

16

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2011

17

NOTES TO ACCOUNTS

18

Patron Vice-Patron President Honorary Vice-Presidents

HRH The Prince of Wales, Duke of Cornwall The Rt. Hon Viscount Falmouth Colonel E T Bolitho, Lord Lieutenant of Cornwall 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 Custodian trustee Principal office Website Bankers Solicitors Investment advisers Auditors

Ms H Bracegirdle BSc MBA Barclays Bank Trust Company Limited Royal Cornwall Museum, 25 River Street, Truro, Cornwall www.royalcornwallmuseum.org.uk Lloyds TSB plc, 7 Boscawen Street, Truro, Cornwall Foot Anstey, High Water House, Malpas Road, Truro, Cornwall Charles Stanley & Company Ltd, 65 Lemon Street, Truro, Cornwall Francis Clark LLP, Chartered Accountants, Lowin House, Tregolls Road, Truro, Cornwall

Charity number

221958

TRUSTEES REPORT

Background & objects

Founded in 1818 as the Cornwall Literary and Philosophical Institution, the Royal Institution
of 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.

Structure, governance & management

he RIC is an unincorporated association, governed by a constitution which was last revised on 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.

Risk management
The major risks to which the RIC is exposed have been reviewed and systems have been
developed 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.

Aims & objectives

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 plan adopted by the Trustees.

Activities
This financial year was the final year of funding from the Museums, Libraries and Archives
Council, 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 programmes team 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 and Trustees have fulfilled their responsibilities with regard to transparency, liquidity and financial control.

Collections care
The RIC holds extensive collections of Cornish and European archaeology and social history
as 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 of this 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 Isettayef-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.

Learning & access

Learning and access are at the heart of all that the RIC does. Visiting the Royal Cornwall
Museum 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 the Courtney 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 year was 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 document that inspires them. Winners and their school or college will receive cash prizes and Cornish tin medals in 2012.

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 2011/12

Fish 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

Achievements & performance

2011 was a record year for school bookings with all our sessions booked in Autumn and
Spring 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 wellbeing of older people in care settings. The Royal Cornwall Museum won the University of Exeters Social and Cultural Impact award for 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

Financial review
Review 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 the trustees 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) free reserves 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

Plans for the future

The new Unwrapping the Past gallery opens on 8 June 2012 funded by the Heritage Lottery
Fund, 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 individual donor 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 will remain 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

Trustees responsibilities in relation to the accounts

he law applicable to charities in England and Wales requires the Trustees to prepare accounts 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 that the 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

AUDITORS REPORT

We have audited the group and parent charity financial statements of The Royal Institution of Cornwall for the year
ended 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 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: 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.

15

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2012
2010/11 Note Unrestricted funds 000s 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 management Charitable activities: Sustainability programme Learning & access Collections care Governance costs: Total resources expended Net incoming resources before exceptional item Exceptional item Net incoming/ (outgoing) resources before net transfers NET INCOMING RESOURCES Gains on sale of fixed assets Transfer between funds Gains/(losses) on investment assets Actuarial gains/(losses) on defined benefit pension scheme Net movement in funds for the year Funds brought forward at 1st April Funds carried forward at 31st March 15 17 Restricted funds 000s Endowment funds 000s Total funds 000s

000s

1,051 52 15 12 75 30 9 7 1,251

172 12 19 42 7 9 19 15 23 318

801 2 104 4 911

6 6

973 18 21 42 7 113 19 15 27 1,235

56 6 6 958 243 24 1,293 (42) 177 135

9 7 25 7 47 53 61 4 213 105 105

26 206 228 261 4 725 186 186

6 6

35 7 25 7 253 281 322 8 938 297 297

135 1,906 (6) 465 2,500 3,107 5,607

105 (3) (142) (40) 960 920

186 3 (19) 170 2,128 2,298

6 100 106 2,519 2,625

297 100 (161) 236 5,607 5,843

16

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2012

Group 2011 000s 7 2,395 2,479 4,881 262 148 530 940 (269) 671 5,552 Charity 2011 000s 7 2,395 2,480 4,882 262 148 526 826 (269) 667 5,549 Fixed assets Intangible assets Tangible assets Investments Current assets Debtors Investments Cash at bank and in hand Note Group 2012 000s 7 2,581 2,580 5,168 250 147 423 820 (124) 696 5,864 Charity 2012 000s 7 2,581 2,581 5,169 250 147 423 820 (128) 692 5,861

10 12

13

Creditors: amounts falling due within one year Net current assets Total assets less current liabilities

14

5,552 55 5,607

5,549 55 5,604

Net assets excluding pension (liability)/asset Pension (liability)/asset Net assets Represented by

5,864 (21) 5,843

5,861 (21) 5,840

879 81 960 2,154 (26) 2,128 2,519 5,607

876 81 957 2,154 (26) 2,128 2,519 5,604

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

15

906 14 920 2,333 (35) 2,298 2,625 5,843

903 14 917 2,333 (35) 2,298 2,625 5,840

15 15 16

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

17

NOTES TO ACCOUNTS

1. Accounting policies
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 expended Expenditure 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.

18

(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 of acquisition. 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 losses on 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 in the year in which they are payable.

19

2. Financial activities of the charity

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.
2011 000s 1,251 (1,293) 177 1,906 (6) 465 2,500 3,104 5,604 2012 000s 1,235 (938) 100 (261) 236 5,604 5,840

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

957 2,128 2,519 5,604

920 2,295 2,625 5,840

3. Subsidiary undertakings
The RIC's wholly owned subsidiary, RIC Museum Limited, undertakes a limited amount of trading activities. Its results and net assets are summarised below.
2011 000s 4 4 4 2012 000s 4 4 4

Turnover Cost of sales Gross profit Expenses Net profit/(loss) retained Current assets Current liabilities Net assets Share capital & reserves

20

4. Incoming resources
Total 2011 000s 173 737 141 53 (1) 15 38 32 5 30 9 19 1,251 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 other learning activities Members subscriptions Other 991 70 Voluntary income 000s 261 572 104 36 17 1 21 49 111 2 Activities for generating funds 000s Charitable activities 000s Investment & other income 000s Total 2012 000s 261 572 104 36 17 1 21 49 111 2 19 15 27 1,235

19 15 27 61

113

5. Resources expended
Total 2011 000s 56 6 6 958 243 24 1,293 Costs of generating funds: Generating voluntary income Retail activities Investment property costs Investment management Charitable activities: Sustainability programme 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

21

6. Allocation of support costs

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).
Total 2011 000s 12 6 278 137 7 440 Premises 000s 3 1 2 1 23 26 30 1 87 Management & administration 000s 3 1 2 1 24 26 31 1 89 Total 2012 000s 6 2 4 2 47 52 61 2 176

Generating voluntary income Retail activities Investment property costs Investment management Sustainability programme Learning & access Collections care Governance

7. Trustees & staff costs

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:
2011 000s 502 36 62 600 2012 000s 434 32 466

Wages & salaries Employers national insurance Pension costs

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.

8. Auditors remuneration
2011 000s 4 Audit services 2012 000s 4

22

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

10. Tangible fixed assets

All of the tangible fixed assets are held by the charity.
Freehold premises 000s 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 2,405 70 2,475 Furniture & equipment 000s 521 150 671 Group Total 000s 2,926 220 3,146

124 124

407 34 441

531 34 565

2,351 2,281

230 114

2,581 2,395

11. Heritage assets

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.

23

12. Investments
2011 000s 2,616 11 2,627 Group (all in the UK) Listed investments Unlisted investments Bank and other deposits Unrestricted 000s 147 147 2012 Restricted Endowment 000s 000s 2,569 11 2,580 Total 000s 2,716 11 2,727

2,627 1 2,628

Charity: As above Investment in subsidiary undertaking

2,727 1 2,728

730 1,939 (36) (6) 2,627

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

2,627 195 (120) 25 2,727

2,479 148 2,627

2,580 147 2,727

13. Debtors
Charity 2011 000s 87 14 151 10 262 Group 2011 000s 87 14 151 10 262 Trade debtors Prepayments and accrued income Grants receivable Legacies receivable Value added tax Other debtors Charity 2012 000s 54 24 150 22 250 Group 2012 000s 54 24 150 22 250

14. Creditors: amount falling due within one year

Charity 2011 000s 87 53 129 269 Group 2011 000s 87 53 129 269 Trade creditors Accrual and deferred income Other creditors Charity 2012 000s 87 20 21 128 Group 2012 000s 87 20 17 124

24

15. Funds
Note (i) Unrestricted Funds: General fund General fund asset reserve General fund pension reserve 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

(a)

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

Note (ii) Restricted Funds: Buildings Renaissance Hub HC Cardew-Rendle DCMS Wolfson Reverend Selkirk PAS Restormel MDS Winston Graham Hawkins Galsworthy Heritage Lottery Fund Other Renaissance Hub pension reserve (a) (b) (c) (d) (e) (f) (g) (h) (i)

Balance 1 April 2011 000s 1,642 187 183 20 51 1 8 9

Incoming resources 000s 572 30 21 3 70 104 108 908 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 2 103 76 2,333 (35) 2,298

(j)

53 2,154 (26) 2,128

(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).

25

Note (iii) Endowment Funds: HC Cardew-Rendle Winston Graham Bi-centennial appeal Hawkins-Galsworthy (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 proceeds are to be used for the care of the RICs collections.

16. Analysis of group net assets by fund

Intangible fixed assets Tangible fixed assets Fixed asset investments Net 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 2,580 45 2,625 Total 000s 7 2,581 2,580 696 (21) 5,843

17. Pension schemes

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:

26

2011 2.8% 5.1% 6.8% 5.5% Financial assumptions: Inflation/pension increase rate Salary increase rate Expected return on assets Discount rate Breakdown of the expected return on assets by category: Equities Bonds Property Cash

2012 2.5% 4.8% 5.5% 4.8%

7.5% 4.9% 5.5% 4.6%

6.2% 4.0% 4.4% 3.5%

Mortality: Life expectancy was based on the funds Vitacurves 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:

Current pensioners Future pensioners

Males 21.3 years 23.2 years

Females 23.4 years 25.6 years

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
2011 000s 858 167 83 83 1,191 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 assets Present 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

1,191 (1,136) 55

1,308 (1,329) (21)

55 55

(21)

(21)

27

Statement of financial activities

2011 000s 41 83 (74) (177) (127) 104 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 cost Contributions by members Actuarial gains/(losses) Past service costs Losses on curtailments & settlements Estimated benefits paid Closing defined benefit obligation 2012 000s 37 63 (84) 7 23 26

1,636 41 83 15 (417) (177) (45) 1,136

1,136 37 63 14 95 7 (23) 1,329

1,056 74 15 43 48 (45) 1,191

Changes in the present value of scheme assets were as follows: Opening fair value of scheme assets Expected return on assets Contributions by members Contributions by the employer Actuarial gains/(losses) Benefits paid Closing fair value of scheme assets

1,191 84 14 101 (59) (23) 1,308

Amounts for the current and previous four periods

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)

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

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

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).

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

19. Contingent liabilities & assets

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

20. Post balance sheet events

There were no post balance sheet events.

21. Financial commitments

Annual commitments under operating leases expiring:
2011 000S 6 2012 000s 6 After more than five years - land & buildings

29

Royal Institution of Cornwall

Charity Registration Number 221958

Royal Institution of Cornwall

Charity Registration Number 221958

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