Members are reminded that they must declare all relevant pecuniary and non- pecuniary interests relating to any items of business to be discussed at this meeting

BIRMINGHAM CITY COUNCIL

CABINET COMMITTEE - GROUP COMPANY GOVERNANCE

WEDNESDAY, 08 MARCH 2017 AT 13:30 HOURS IN COMMITTEE ROOM 2, COUNCIL HOUSE, VICTORIA SQUARE, BIRMINGHAM, B1 1BB

A G E N D A

1 APOLOGIES

To receive any apologies.

2 TRAINING

At the last meeting it was noted that there was the need to develop a bespoke training package to meet the requirements. Connie Price, Head of Law (Service Delivery and Procurement) to report.

3 BIRMINGHAM MUSEUMS TRUST 3 - 46 Report of the Strategic Director - Finance & Legal

4 GROUP COMPANY GOVERN ANCE – INFORMING THE AUDIT RISK 47 - 80 ASSESSMENT

Report of the Strategic Director - Finance & Legal

5 MOVEMENTS TO THE LIST OF GROUP COMPANIES 81 - 90 Report of the Strategic Director, Finance and Legal.

6 SCHEDULE OF MEETINGS

All meetings are scheduled to take place at 1330 hours on the following dates at the Council House:- Thursday, 27 April 2017 in Committee Room 6 Thursday, 6 July 2017 in Committee Room 2

Page 1 of 90 7 EXCLUSION OF THE PUBLIC

That in view of the nature of the business to be transacted which includes exempt information of the category indicated the public be now excluded from the meeting:-

Minutes - Exempt Paragraphs 3 and 4

P R I V A T E A G E N D A

8 BIRMINGHAM MUSEUMS TRUST

Item Description

9 ACIVICO LIMITED

Item Description

Page 2 of 90 BIRMINGHAM CITY COUNCIL

PUBLIC REPORT

Report to: CABINET COMMITTEE – GROUP COMPANY GOVERNANCE Report of: Strategic Director – Finance & Legal Date of Decision: 8 March 201 7 SUBJECT: BIRMINGHAM MUSEUMS T RUST

Key Decision: No Relevant Forward Plan Ref: If not in the Forward Plan: Chief Executive approved (please "X" box) O&S Chairman approved Relevant Cabinet Member (s) or Councillor Ian Ward, Deputy Leader Relevant Executive Member: Relevant O&S Chairman: Councillor Mohammed Aikhlaq, Corporate Resources and Governance. Wards affected: All

1. Purpose of report:

1.1 This report provides background to the Birmingham Museums Trust to provide context for a report on the private agenda

2. Decision(s) recommended: That the Committee:

2.1 note the report

Lead Contact Officer(s): Martin Stevens Head of City Finance, Corporate Finance

Telephone No: 0121 303 4667 E-mail address: [email protected]

Page 3 of 90 3. Consultation Consultation should include those that have an interest in the decisions recommended

3.1 Internal This is a background report and therefore there has been no internal consultation

3.2 External The Birmingham Museums Trust has been consulted on the contents of this report and has made contributions to its content.

4. Compliance Issues :

4.1 Are the recommended decisions consistent with the Council’s policies, plans and strategies?

The Birmingham Museums Trust manages and operates nine venues across Birmingham, as follows:

• Birmingham Museum and Art Gallery • Thinktank: Birmingham Science Museum • Aston Hall • Blakesley Hall • Museum of the Jewellery Quarter • Soho House • Sarehole Mill • Weoley Castle • The Museums’ Collection Centre.

The Trust’s vision is to “reflect Birmingham to the world, and the world to Birmingham”. Its aims support City Council’s priorities around sustainable neighborhoods and promoting the health and well-being of residents by:

• Advancing education through the operation, maintenance, development and promotion of museums, galleries and libraries, together with associated facilities, outreach and research programs • Fostering knowledge and understanding, appreciation and enjoyment of the arts, history , science and technology by residents and visitors to Birmingham • Responding to growing and diversifying audiences through new approaches to collection and programming.

Page 4 of 90 4.2 Financial Implications (Will decisions be carried out within existing finance and Resources?)

There are no financial implications associated with this report.

4.3 Legal Implications

There are no legal implications associated with this report

4.4 Public Sector Equality Duty (see separate guidance note)

This report provides contextual background information and as such there are no equalities implications.

5. Relevant background/chronology of key events:

5.1 The Birmingham Museums Trust Birmingham Ltd was incorporated in 2011. The Trust is both a registered charity (N o. 1147014) and a private company (Co N o.07737797) limited by guarantee. Birmingham City Council is the sole member of the charity, which is controlled by the board of trustees. The Council is also the sole shareholder of the company.

5.2 The Trust is the holding company for, and operates through, the following wholly-owned subsidiaries:

• The Thinktank Trust (formerly The Discovery Centre) Ltd (Co N o. 03239119), which is an interactive science museum housed at Millennium Point including exhibits and historical collections, a science garden, planetarium and programmes of events and activities. • Birmingham Museums Trading Ltd, (No. 04221635). This is a trading subsidiary through which commercial activities are carried out, such as, sales from staging events and exhibitions, retail shops and catering outlets operated on behalf of the Trust. All profits are distributed to the Birmingham Museums Trust through gift aid.

5.3 The current City Council directors are:

The Birmingham Museums Trust Councillor Muhammed Afzal Councillor Randal Brew

The Thinktank Trust Councillor Randal Brew Page 5 of 90

6. Evaluation of alternative option(s):

6.1 Not applicable

7. Reasons for Decision(s):

7.1 The Committee is asked to note the background information on the Birmingham Museums Trust.

Signatures Date

Chief Officer .. .

List of Background Documents used to compile this Report: None

List of Appendices accompanying this Report (if any): 1. Birmingham Museums Trust Annual Report – 2015/16 2. 3. 4. 5.

Page 6 of 90 Annual Report 2015/16

Page 7 of 90 Reflecting Birmingham to the World, & the World to Birmingham

Birmingham Museums Trust is an independent educational charity formed in 2012. It cares for Birmingham’s internationally important collection of over 800,000 objects which are stored and displayed in nine unique venues including six Listed Buildings and one Scheduled Ancient Monument. Birmingham Museums Trust is a company limited by guarantee.

Page 8 of 90

Registered Charity Number: 1147014 Reflecting Birmingham to the World, & the World to Birmingham

Contents

06 Our achievements 26 Collections

08 Audiences 28 Curatorial

12 Supporters 30 Trading

14 Venues 32 Development

15 Birmingham Museum & Art Gallery 33 Making it happen 16 Aston Hall 17 Blakesley Hall 34 Finances 18 Museum of the Jewellery Quarter 36 Board of Trustees 20 Sarehole Mill 21 Soho House 37 Talks and lectures 22 Thinktank Science Museum 24 Museum Collections Centre 25 Weoley Castle

Page 9 of 90 Chair’s foreword

I’m confident that our achievements this year will stand us in good stead for the challenging times ahead.

2015 marked the 130th anniversary of Birmingham Museum & Art Gallery. In that time, the museum has inspired many millions of people to enjoy the very best in art, design and craft. It is fitting then that in 2015 we developed an ambitious vision of Birmingham Museums with Birmingham City Council for the next hundred years – reflecting Birmingham to the world, and the world to Birmingham – contributing to place-making and local identity and inspiring future generations with Birmingham’s outstanding collection.

Our strategic focus to develop the collection, venues, programmes and audiences to be more reflective of Birmingham people has contributed to Birmingham Museums Trust having its most successful year. We attracted larger and more diverse audiences to our nine venues, began a community collecting programme and completed a number of improvements to our venues. I am confident that these achievements will stand Birmingham Museums Trust in good stead as we face the challenging times ahead.

Sincere thanks go to the former Chair, Trustees, executive team, staff, volunteers, Friends and our funders and partner organisations who together have achieved a great deal for Birmingham Museums this year.

Professor Ian Grosvenor Interim Chair, Birmingham Museums Trust

Page 10 of 90

4 Birmingham Museums Trust / Annual Report 2015/16 Director’s introduction

I’m delighted to announce that 2015/16 was Birmingham Museums Trust’s best year so far.

Visitor numbers were up, trading income grew, we won several prestigious awards and improved on visitor satisfaction scores. Our teams of staff and volunteers excelled themselves, often in very difficult circumstances, and as an educational charity we were particularly pleased by our achievements in formal and informal learning.

Birmingham’s collection lies at the heart of everything we do: our capital projects, learning and outreach programmes, and exhibitions and redisplays are all planned around it. Brought together over nearly 200 years, the objects in the collection tell powerful stories about Birmingham and its place in the world. Masterplanning exercises at Thinktank Science Museum and Birmingham Museum & Art Gallery, and projects such as Collecting Birmingham and the new Mini Museum at the Museum & Art Gallery, all contribute to our aim of making this internationally important collection increasingly accessible to all the citizens of Birmingham and visitors to the city. We are also the stewards of the collection for generations of Brummies as yet unborn, and we invest considerable effort in upgrading its care and documentation.

We are grateful to all the organisations and individuals who have supported us throughout this year. Their generosity, assistance and enthusiasm play an essential part in the continuing evolution and success of Birmingham Museums Trust.

Dr Ellen McAdam Director, Birmingham Museums Trust

Page 11 of 90

Director’s introduction 5 Our achievements

15% visitors from BAME backgrounds visited 1,272,070 us this year visits to our venues, up 5% 23,281 on 2014/15 and a total 28% increase since Birmigham hours of Museums Trust was volunteering formed in 2012. 90,201

pupils made on-site school visits

130,128

social media followers 113,635

school children from 1,190 schools took part in our education programmes

Page 12 of 90

6 Birmingham Museums Trust / Annual Report 2015/16 224,059

visitors participated in informal learning Awards Best Told Story Accolade, for the Museum of the Jewellery 10% Quarter, VAQAS of our visitors Quality Food & Drink Accolade, consider themselves Edwardian Tearooms, VAQAS disabled Best New Publication: Guidebook, Museum of the Jewellery Quarter, Association for Cultural Enterprises

Pilgrim Trust Award, Staffordshire Hoard Conservation Programme, ICON

Top Choice Tourist Attraction 417 loans 2016, Birmingham Museum & Art Gallery, Lianorg Asian seen by 844,026 Tourism, China people

VAQAS standard archieved for all museum venues

430

children and young people participated in the accredited Arts Award programmes 51% first-time 30% visitors visitors from 1 million+ socio-economic groups C2DE visits to our new website

23,434 pupils were engaged through outreach and ‘Museum in a Box’ kits

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Our achievements 7 Audiences Page 14 of 90

8 Birmingham Museums Trust / Annual Report 2015/16 Children and young people Families Birmingham Museums builds lasting More families are visiting the museums, and relationships with children and young people we are developing new facilities to encourage in formal school, home education or family young families to engage with our collection. settings. In 2015/16, nearly 340,000 children, Birmingham Museum & Art Gallery worked young people and families took part in outreach with local childcare specialists and nurseries to events, projects and activities across our nine co-develop a new Mini Museum, a dedicated sites, the highest attendances of any cultural gallery for the under-fives and their families organisation in the city. Our services help to that encourages our younger visitors to get support the educational, social and cultural closer to objects from the collection and relax, development of young people in Birmingham read and play in the heart of the museum. and beyond. Across the organisation our Engagement teams have looked for new opportunities to support Through collection-based learning, site-based families, from new autism-friendly spaces at engagement and outreach programmes we Thinktank Science Museum to sensory play made contact with 114,000 children and offers at Aston Hall. young people from 1,190 schools. Our venues offer varied programmes across primary and A regular programme of activities for families to secondary key stage learning and we have a access is growing and has seen both an increase developing relationship with the city’s further in capacity within sessions and an expansion of and higher education sector. Partners include the content on offer, from digital learning to South and City Birmingham College, Birmingham traditional arts and crafts, object handling and City University, Newman University and the interactive storytelling. In our regular Saturday University of Birmingham. Arts Club over 250 children aged 5–11 have been able to take part in artist-led activities exploring Highlights of 2015/16 education activities: painting, drawing, sculpture and digital art. • Greater emphasis at Birmingham Museum & Art Gallery on encouraging participation from families in self-guided visits and active learning from the collection. • The launch of a new series of new workshops and activities at Sarehole Mill to support STEM learning from prehistory. • A new dedicated natural history classroom at Thinktank Science Museum. • Key partnership projects we were involved with included the city-wide ‘2016: The Year of Arts and Young People’ pledge and an initiative with the West Midlands High Sherriff and Arts Connect West Midlands, to celebrate the creativity of young people. • Our own contribution to the development of Birmingham’s next generation of culturally aware and creative talent was the launch of Inspire 16, an arts competition for 11–19 year olds. • Over 350 school children attended our Destination Space launch event to celebrate UK astronaut Tim Peake’s research mission to the International Space Station.

Page 15 of 90

Audiences 9 Community engagement Volunteers Around 7,000 people took part in a community Over 700 volunteers gave over 23,000 hours engagement project or programme in 2015/16 of their time across all nine venues. In 2015/16 and the Birmingham Museums team worked we focussed on developing and sustaining new with 65 organisations, 140 STEM professionals roles, improving the recognition our volunteers and 650 volunteers. receive, promoting and raising awareness of the programme and supporting external partners in Highlights of our community engagement delivering best practice. activities in 2015/16: • The launch of the new Faith in Birmingham Our volunteers undertook roles including gallery at Birmingham Museum & Art Gallery meeting and greeting visitors, conservation – around 30 people from six different faith cleaning, working with archaeological finds, backgrounds volunteered time, lent objects assisting with family activities, gardening, and shared their expertise to create the gallery. milling, working with curators and supporting the 130th birthday party at Birmingham • Projects run by Ignite, a volunteer forum Museum & Art Gallery. We offered two for young people aged 16–24 which included accredited training courses for volunteers tours at Birmingham Museum & Art Gallery for and monthly in-house training opportunities. National Takeover Day and the 130th birthday. • Launch of Creative Carers – a programme A new approach to raising awareness of for carers to engage with art and heritage volunteering opportunities was trialled with an as a respite from their challenging roles. increased use of social media, leaflet drops. • First ‘Be Well at BMAG’ event – Health and Birmingham Museums delivered a keynote Wellbeing day linked to National Museums address at the first Heritage Volunteering Group & Wellbeing Week. Conference in March in which we shared best • Meet the Expert activities at Thinktank practice and findings from recent research. Science Museum – around 6,000 visitors We also sit on the West Midlands Regional met STEM professionals and Thinktank Volunteer Managers Forum and the Birmingham Science Museum continued to provide a Volunteer Network. forum for the University of Birmingham’s Partnerships with local businesses have School of Psychology research into child also provided opportunities for employees cognitive development. of EE, Interserve, SITA, the University of • Introduction of ‘Early Morning Explorers’ Birmingham and Lloyds to volunteer with at Thinktank Science Museum– quiet opening Birmingham Museums. for families of children with an Autistic Spectrum Condition.

Page 16 of 90

10 Birmingham Museums Trust / Annual Report 2015/16 Marketing Digital audiences In 2015/16 visitors increased for the second The first year of the new Birmingham Museums consecutive year thanks in part to the appointment website has been successful, with over 1million of a new marketing team in 2014. Total visitors visits, 10% higher than forecast. At the end of were 1.27m, an increase of 5% on the previous the year we redeveloped the schools section, year and a very impressive increase of 30% over which now includes online Learning Resources, 2013/14. Birmingham Museum & Art Gallery the first on the Staffordshire Hoard. A new ranked 35 in the Association of Leading Visitor feature has been added called Explore Art which Attractions national benchmarking study. It was highlights Birmingham Museum & Art Gallery’s the most visited civic museum in England, and fine art collection. The website also features the 69th most visited art museum in the world. new highlights for Birmingham Museum & Art Gallery and Thinktank Science Museum, including Marketing, communications and audience the Mini Museum, Baroque gallery, Faith in development strategies made a major contribution Birmingham gallery and Marine Worlds gallery. to the growth in visitor numbers and changing demographics. Visitor research for 2015/16 saw Birmingham Museums’ social media audience growth in the number of visits by families, with grew by 30% to over 130,000 across Facebook 53% of all visitors attending with children under and Twitter. There were 78,000 views of the 16 against 42% in 2014/15. BAME audiences YouTube channel, up from around 29,000 in increased from 10% to 15%, visitors who consider 2014/15. A programme of fifteen new videos themselves disabled from 5% to 10%, and those were also added, including the Staffordshire from C2DE backgrounds from 28% to 30%. Hoard animations and exhibition videos for Love is Enough and Enchanted Dreams. As part We delivered successful campaigns for the year’s of Birmingham Museum & Art Gallery’s 30th two main exhibitions at Birmingham Museum & anniversary celebrations we posted at least one Art Gallery – Love is Enough and Enchanted Dreams object image every day to Twitter for 130 days – and seasonal visitor marketing attracted visitors leading up to 28 November, highlighting an to sites during school half-terms, the summer acquisition for every year from 1885. We took on holidays, Halloween and the autumn, and the a young team of volunteers who used Instagram run-up to Christmas. Birmingham Museum & Art to highlight buildings, objects, staff and visitors. Gallery successfully converted many visitors to the Christmas German Market into museum and As well as developing the new Explore Art Edwardian Tea Room visitors. feature on the website we have continued to share our collection images across other websites PR generated £3.7m worth of media value such as Your Paintings, Google Art and Pinterest, against a target of £3m. Notable successes came where they were viewed 150,000 times. from coverage of Love is Enough, the launch of the new Ichthyosaur gallery at Thinktank Science The Planetarium successfully outstripped its Museum, the summer and autumn campaigns targets for 2015/16, despite the introduction of and the continued editorial interest in the the £1 fee for entry. This year the planetarium has Staffordshire Hoard. experimented with being a venue for drama and a digital art/science event, showing that there is The presentation of venue sites was a key focus an audience for these paid evening events. in 2015/16, with rebrand projects at the heritage sites to improve external signage and a major new wayfinding scheme at Birmingham Museum & Art Gallery.

Birmingham has the best museum Discover collection of any city in England, all housed in nine wonderful locations. Birmingham Beautiful, scientifi cally important, exotic, humdrum, quirky or bizarre, they all have one thing in common – Museums they tell stories about Birmingham.

Thinktank, O Birmingham Science Museum DS G this Explore the Planetarium, ut KI outdoor Science Garden and o Birmingham Museum ays r NEW Spitfi re Gallery. D umme & Art Gallery FREE ENTRY s From Renaissance masterpieces, to the largest fi nd of Anglo-Saxon gold ever discovered - the Staff ordshire Hoard; uncover fascinating glimpses into Birmingham’s at Thinktank vibrant past.

Birmingham Sarehole Mill One of the only two surviving Science Museum watermills in Birmingham. Discover the idyllic childhood • Science Garden haunt of J.R.R. Tolkien. • Planetarium

• NEW Spitfi re Gallery Aston Hall Experience the splendour of this Soho House magnifi cent 17th- Elegant Georgian home Century Jacobean BRING THIS VOUCHER of industrialist Matthew mansion and relive for free entry for up to 2 its role in the Boulton, and meeting Blakesley Hall children (under 16 years) place of the Lunar Society. English Civil War. Visit one of Birmingham’s fi nest per adult paying the full timber-framed Tudor houses. adult rate. Museum of the Jewellery Quarter Valid 13/7/15 to 2/9/15. Step back in time to a perfectly Does not include Planetarium tickets. preserved jewellery workshop. See birminghammuseums.org.uk/ Every treasure tells a  ory kids-go-free for full terms. birminghammuseums.org.uk

birminghammuseums.org.uk Funded by Funded by: Page 17 of 90

BMT_Summer_A5 TT_Heritage voucher.indd 1 03/07/2015 15:57 BMT_What's On Ad_210mm x 297mm.indd 1 16/03/2016 15:49

Audiences 11 Birmingham Supporters Page 18 of 90 Qur’an

12 Birmingham Museums Trust / Annual Report 2015/16 All our supporters play a key role in the work we do.

We owe a special debt of gratitude to:

• The Friends of Birmingham Museums Trust • City of Birmingham Museums & Art Gallery Development Trust • Public Picture Gallery Fund • Patrons of Birmingham Museums Trust • Everyone who donated to support our first annual appeal celebrating Birmingham Museum & Art Gallery’s 130th birthday

Thank you to all funders and supporters of Birmingham Museums Trust.

Arts Council PRISM Fund / Arts Council England/Victoria & Albert Museum Purchase Grant Fund / The Art Fund / Association of Science and Discovery Centres / British Museum / Bruker / The Curry Fund of the Geologists’ Association / DCMS/Wolfson Museums and Galleries Improvement Fund / Department for Business Innovation and Skills / Derbyshire Arts / The English Companions / Esmée Fairbairn Effective Collections/ Henry Moore Foundation / Historic England / History West Midlands / The Idlewild Trust / John Feeney Charitable Trust / Jonathan Ruffer Curatorial Grants Programme / Lichfield Science & Engineering Centre/ Sanderson/Morris & Co / Opus Restaurant / Rolls-Royce / Turning Point West Midlands / Westhill Endowment Fund / West Midlands Arts Connect.

We are very grateful for a legacy donation from the Estate of Ivan Witton for the purposes of ‘purchase of paintings or artefacts’. The legacy will be used to create an endowment fund to support future collections purchases.

And thank you to the public and our visitors for their generous donations.

Page 19 of 90

Supporters 13 Venues Page 20 of 90

14 Birmingham Museums Trust / Annual Report 2015/16 New access for visitors with new signage, new visitor facilities and automatic doors for ease and a variety of new galleries and exhibitions to enhance the experience for all our visitors.

Birmingham Museum & Art Gallery welcomed just The new gallery Faith in Birmingham was created under 900,000 visitors in 2015/16. We hosted two through a process of engagement and co-production major exhibitions including the popular summer with representatives of six major faith groups in show Love is Enough, curated by Jeremy Deller, the city. Several participants lent us personal items, which presented the works of Andy Warhol and for its opening months the gallery featured alongside tapestries and designs by William Morris the oldest dated fragment of the Qur’an, lent by from Birmingham’s collection. The second exhibition, the University of Birmingham. Enchanted Dreams, was an exquisite retrospective on the work of E.R. Hughes. It featured many This year also saw an appeal to mark Birmingham important loans and our own iconic Night with Museum & Art Gallery’s 130th birthday on 28 Her Train of Stars. November. The event was celebrated with a display looking back at the museum’s history in the Bridge We redisplayed several galleries, including the Gallery, a birthday cake cut by Queen Victoria and Baroque Galleries, featuring Birmingham’s an evening event. outstanding but overlooked collection and the spectacular jewellery installation by Wendy Finally, in November the city hosted the annual Ramshaw, Room of Dreams. The Mini Museum Museums Association Conference, the best attended also opened which, aimed at the under fives, conference for some years. The Museums Association combines real objects from the collection with Conference party was held at Birmingham Museum areas where children can play or read. & Art Gallery, a great social event with music provided by local DJs Wassifa Soundsystem.

Page 21 of 90

Venues 15 An exciting events programme and a rejuvenated corporate package delivered a successful year for Aston Hall.

Aston Hall attracted over 26,500 visitors Ghost Tours made it onto Birmingham Mail’s in 2015/16. Income generated was £74k bucket list as one of the top 16 things to do from admissions, events, retail, catering and in Birmingham. corporate hire and we were able to grow and expand our existing wedding and corporate The museum achieved accreditation by Visit packages with the development of the England as part of their Visitor Attraction banqueting suite. Quality Assurance Scheme (VAQAS). It scored 83%, with the building being described as One of the highlights of 2015 was the ‘extremely impressive inside and out’. introduction of Aston Hall’s Ghost Tours. Tours sold out, tickets were in high demand, and the event attracted a new audience and considerable interest on social media. Page 22 of 90

16 Birmingham Museums Trust / Annual Report 2015/16 More highly enjoyable themed events and the continued development of close community relationships helped to make 2015/16 a stand-out year for Blakesley Hall.

Blakesley Hall welcomed 19,000 visitors The site has established a dedicated and and generated an income of £48k. The site knowledgeable team of hall and garden delivered a large, varied and successful events volunteers, adding an extra element to programme including a Tudor Weekend, the visitor experience. Falconry Day, Tudor Christmas and a two-day Ale Festival. The themed half-terms in October The venue did well in its VAQAS report and and February were particularly successful scored very highly across the board in the and 2015/16 saw a 10% rise in weddings and qualitative research customer interviews commercial hire. carried out across the Heritage Sites.

Blakesley continued to develop strong Blakesley Hall featured in a February edition community links, delivering an even larger of the BBC programme Bargain Hunt. This generated a considerable number of visits Yardley Arts Festival this year and worked Page 23 of 90 in partnership with the church to display from around the country. its First World War exhibition, ‘Still with us’. Venues 17 National awards, TV filming, Just under 25,000 people visited the Museum of the Jewellery Quarter in 2015/16 which excellent new tours and an generated £130k in income via admissions, exhibition that celebrates events, retail, catering, corporate hire and donations. This strong performance has Birmingham’s rich diversity been enhanced by the use of the workshop have confirmed Museum of as a location for several filming opportunities, generating media interest as well as revenue. the Jewellery Quarter’s position The popular exhibition An adaptable trade: as one of the city’s leading the Jewellery Quarter at war culminated with heritage attractions. drama performances by a local youth group in partnership with the Blue Orange Theatre Company. Museum of the Jewellery Quarter also hosted the first of a series of HLF-funded Collecting Birmingham exhibitions. Page 24 of 90

18 Birmingham Museums Trust / Annual Report 2015/16 This project is aimed at strengthening The museum was recognised by Visit England Birmingham Museums’ local history collection as part of their Visitor Attraction Quality by acquiring objects that represent growing Assurance Scheme (VAQAS) through the up, living and working among the diverse award of a ‘Best Told Story’ accolade, with communities of many areas of the city. The displays, tours and staff all judged as excellent. exhibition was developed following a series of on-site consultations which put local people in the A new Museum of the Jewellery Quarter drivers’ seat to inform the direction of displays. guidebook was produced and was awarded Best new publication: Guidebook at the Following the success of our adult jewellery- Association for Cultural Enterprise’s national making workshops, we launched new gift awards, beating the V&A. experiences which proved very popular. Walking tours of the Jewellery Quarter have now been programmed on a monthly basis, and child- friendly tours of the Smith & Pepper jewellery factory have been introduced to encourage family visits. Page 25 of 90

Venues 19 The renovated mill with its dedicated team of volunteers continued to be popular with visitors, as well as generating commercial revenue from flour.

Over 23,800 visitors came to Sarehole Mill in The volunteer millers continued to produce 2015/16. The site team worked with Flying flour twice a week and we now supply to a Teapot events, who hosted a programme of third trade venue, Let it Dough, in addition markets and food and drink fayres throughout to Carters of Moseley and Loaf of Stirchley. the summer. These proved highly successful with many people making repeated return visits.

Also in 2015, we saw the return of Middle Earth in the form of the very popular Middle Earth Festival which was held in September. Sarehole Mill featured in Iberia Airways’ in-flight magazine focusing on the Tolkien Trail and the first Tolkien Reading Day was trialled on 25 March, Page 26 of 90 which proved to be an enormous success.

20 Birmingham Museums Trust / Annual Report 2015/16 2015/16 was a year for building strong links with communities through exhibitions celebrating local diversity, events and partnership working.

Soho House Museum saw over 12,000 It was very well attended and generated visitors this year and income was £23k from excellent visitor feedback. admissions, events, retail, catering and corporate hire. Our regular events remained popular. Health & Wellbeing Day and the summer One of the most popular highlights was the craft events were well attended. New events exhibition ‘Hidden Histories of Handsworth’, such as 999 Emergency Day, with over 300 created in partnership with Ladywood visitors and an opportunity for us to build Arts Forum and Wassifa-Inspire, featuring partnerships with local organisations, were among other things a 1950s living room. The tremendously successful. exhibition celebrated the culture, diversity and unique fusion of integrated communities Staff from Soho House participated in events of different faiths, buildings, cultures and Pageto mark 27 of the 90 launch of Birmingham Heritage people across the area fondly known as Week at the House of Commons, raising our Handsworth, Summerfield and Winson Green. profile nationally. Venues 21 The extension of Thinktank Science Museum’s Wildlife gallery and re-display of the pre-historic Ichthyosaur along with partnership projects such as Destination Space helped to maintain the museum’s position as one of the region’s most popular visitor attractions. Page 28 of 90

22 Birmingham Museums Trust / Annual Report 2015/16 Thinktank Science Museum attracted just The Learning team partnered with the under 260,000 visitors and generated over Association of Science and Discovery £1.6 million in income. The museum achieved Centres to support Tim Peake’s mission to an excellent 85% accreditation by Visit the International Space Station. Named England as part of the Visitor Attraction Destination Space, this project delivered an Quality Assurance Scheme (VAQAS), an exceptional level of engagement, with 28,000 increase of 4% on the previous report. visitors taking part in related activities.

The new Marine Worlds gallery opened in Six local young people aged 16–17 took part March which showcases more of Birmingham in the Science and Heritage Career Ladder Museums’ Natural Science collection, including Summer Traineeship, spending six weeks what may be a hitherto unknown species of delivering activities to the public and learning Ichthyosaur. The skull was taken off display about museum careers. They are now working in 2008 and has now been conserved and with the museum team. reunited with the rest of its surviving skeleton following research and detective work by Luanne Meehitiya, the Natural History curator. Page 29 of 90

Venues 23 The MCC built upon its strong local and international relationships and continued to be a popular resource for both specialist and general visitors.

This year there were over 2,200 visitors to impact of noise, vibration and particulates the MCC which included a study day for 66 arising from construction and operation will Leicester Museums Study students, ten open be undertaken, and to ensure that specialists afternoons and one day to link with the prepare a sensitive artefacts strategy. National Heritage Open Days initiative. The site has seen an increase in research In March the MCC hosted an exercise for visits from Birmingham City University the Fire Service, including 40 firefighters and and the University of Birmingham. 15 appliances. The exercise proved useful for both parties, allowing greater insight into the The team has been involved in discussions collection and its recovery for the fire service in advance of HS2 to ensure that detailed and enabling us to update our emergency assessments and evaluations of the potential preparedness documents. Page 30 of 90

24 Birmingham Museums Trust / Annual Report 2015/16 Seasonal events brought local families to Weoley Castle to enjoy this precious ancient monument and community space.

We welcomed over 4,500 visitors to Weoley Castle, of which nearly half were children and young people. The site started the year with the Easter Egg hunt and greeted over 400 Scouts for the St George’s Day Parade. The Medieval Open Day and Falconry Day also proved very popular and the year finished with Christmas at the Castle, a combined effort between Birmingham Museums Trust and the Rotary Club. Evening walks to mark the seasons were also popular, giving visitors a unique chance to see the castle out of hours. Page 31 of 90

Venues 25 Collections Page 32 of 90

26 Birmingham Museums Trust / Annual Report 2015/16 Acquisitions A total of 32 groups including 62 community members were involved in the focus sessions and Birmingham Museums acquired 279 objects this team members discussed the project with 387 year, of which five were purchased and 274 were people across 16 events in the project’s target presented as gifts or bequests. Highlights include: areas. This led to the acquisition of four objects • Two etchings by Frank Auerbach, ‘Michael’ and and two oral histories, with a further five objects ‘David Landau’ acquired via Acceptance in Lieu in the process of acquisition. The objects include from the Estate of Lucian Freud. a door from HMP Birmingham in Winson Green, • A series of six Cadbury’s Education Posters, ‘Kojo a portrait and set of objects belonging to the first and his family in Ghana’ designed by Frank Bird. woman Conservative councillor to become Lord Mayor of Birmingham. They are being displayed at • ‘Joseph Chamberlain’ locomotive name plate. the Museum of the Jewellery Quarter in the first • ‘Ode to Christian Joy’, oil painting by Emily of a series of Collecting Birmingham exhibitions. Sparkes, displayed in New Art West Midlands 2015, and fully funded by the Friends of Collecting care Birmingham Museums. The conservation department enjoyed a busy • Two works entitled ‘17’ and ‘Bliss’, oil on panel year. Our newly expanded team of volunteers and graphite on paper by Birmingham-born or ‘conservation club’ took on a new civic silver artist Barbara Walker, supported by a grant cleaning project and re-storage of the silver from NAWM Art Market Project. collection at the MCC. • ‘As Time Goes By’, an ink drawing by Sarah Conservation Contracted Services exceeded Taylor-Silverwood, produced following her time their target revenue, achieving £20k in income spent as artist-in-residence at Birmingham from a variety of clients, including identification Museum & Art Gallery in 2013. of alloys in Barbara Hepworth sculptures for Tate, • ‘The Good Shepherd’, the first stained glass X-ray analysis for archaeological contractors and panel by Birmingham-born Edward Burne-Jones, a series of training events. A new set of brochure designed in 1857 and manufactured by James materials have been designed to help promote Powell & Sons in 1861. Purchase supported the service further. by The Art Fund, the ACE/V&A Purchase Grant Fund, the John Feeney Charitable Trust, and Staffordshire Hoard the Public Picture Gallery Fund. research and conservation • An outstanding collection of 157 items including The Staffordshire Hoard is the subject of one of contemporary British paintings, drawings, and the UK’s largest publicly funded archaeological British and international contemporary silver artefact projects. Birmingham Museums works in and metalwork formed via the Contemporary partnership with a wide range of academic and Art Society Special Collections Scheme between public institutions, including Historic England, 1998 and 2005, formally acquired after a 15-year the British Museum, the University of Birmingham loan period. and Birmingham City University. Collecting Birmingham In 2015/16 an Esmée Fairbairn grant of £87,000 This project was awarded a total grant of £398,100 allowed a study of metallurgy and organic from Heritage Lottery Fund Collecting Cultures fund, materials. The results revealed new information matched by £130,471 of Arts Council England Major about enrichment methods while the organic Partner Museums funding. During the first of a analysis identified a mix of horn and bone within three year programme the Collecting Birmingham the samples using the FTIR, Micro-CT and SEM-EDX. project team worked with local communities in the These initial findings indicate a pommel structure ethnically diverse wards of Aston, Soho, Nechells not previously seen in Anglo-Saxon studies. and Ladywood. Two full-time members of staff and Due to their innovation and hard work, the Hoard 11 volunteers played a crucial role in supporting team won the Institute for Conservation Pilgrim and developing the project. Trust Award for Conservation, receiving a prize This engagement-led project aims to build a shared of £10,000. understanding of the stories of local people, places and events, collecting objects through donation and purchase to represent their experiences of growing up, living and working in the city.

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Collections 27 Curatorial Page 34 of 90

28 Birmingham Museums Trust / Annual Report 2015/16 Art Portable antiquities scheme The prestigious National Gallery/Art Fund The West Midlands PAS Team recorded a total Curatorial Traineeship ended in 2015. Helen of 4,141 finds in 2,904 records and reported and Hillyard updated records for over 80 17th-century managed 60 treasure cases. The Finds Liaison European paintings with recent research, Officers visited metal detecting clubs throughout including several reattributions, and established the region to liaise with finders and give talks. or developed relationships with specialists in the They reached a total of over 1,200 attendees. UK and overseas. The research filled in gaps in provenance and made a valuable contribution to The team delivered outreach activities including BMT’s Spoliation records. a Stone Age handling workshop, lectures and conference papers, and made several radio Victoria Osborne, Curator of Fine Art, undertook and television appearances including the BBC research into ‘Night with her train of stars’ by ‘Eggheads’ quiz show, with 1.37 million viewers. E R Hughes and its wider context. This highlight Their work was published in six publications of Birmingham’s collection was the centrepiece of including Archaeology in Wales, Britannia, and the ‘Enchanted Dreams’ exhibition in the Gas Hall. West Midlands Archaeology, covering 18 different Research outputs include: articles about specific finds. • Improved contextual knowledge relating to Birmingham’s collection, the acquisition of Loans ‘Night with her train of stars’ and eighteen 252 objects were lent to Birmingham Museums associated works. for four exhibitions. These included: • The thesis A British symbolist in Pre-Raphaelite • 90 artworks lent as part of the Love is Enough: circles: Edward Robert Hughes RWS (1851–1914) Warhol and Morris exhibition curated by is now the standard work on the artist. Jeremy Deller. • Over 70 unknown or unpublished works by • 52 objects lent to Enchanted Dreams: the Hughes traced in private and public collections Pre-Raphaelite art of Edward Robert Hughes • Wash drawing by C F Murray (1983P77) and 29 artworks lent by West Midlands Artists identified as a portrait of E R Hughes. for New Art West Midlands. • A Burne-Jones drawing of Thisbe (1909P63) • 67 artworks by Wendy Ramshaw as part of highlighted as donated by Hughes in 1909. Room of Dreams. • Oxford Dictionary of National Biography • The opening of the Faith in Birmingham commissioned Victoria Osborne to write the exhibition included six new loans from the first entry on E R Hughes. British Museum, two loans from the Jewish Museum and two loans from the Cadbury Lisa Beauchamp, Curator of Modern & Research Library at the University of Birmingham. Contemporary Art, and Rebecca Bridgeman, Curator of Islamic and South Asian Art were Outward loans to 20 UK venues: awarded a Jonathon Ruffer grant from the V&A, Hayward Touring (three UK venues), National Art Fund of £2,440 to undertake joint research Portrait Gallery, Royal Academy, Bede’s World, trips to the Venice Biennale (October ’15), Towner, Eastbourne, Derby Museum & Art Gallery, Jameel Prize and Art Dubai (March ’16). Compton Verney, Erasmus Darwin House, Leicester New Walk Museum, Worcester Museum & Art Science Gallery, The Walker Art Gallery, Buckinghamshire We carried out a two-year conservation and County Museum, New Art Gallery Walsall, Ikon research project to identify, reconstruct and Gallery, Pallant House Gallery, Salisbury and re-interpret an Ichthyosaur skeleton, which was South Wiltshire Museum, National Museum of excavated in 1955 in Shipton-on-Stour. This has Computing, and Stirchley Baths. revealed that it is the largest Ichthyosaurus in the UK and potentially a new species. It is now fully Outward loans to three International venues: on display for the first time as the centrepiece The Hôtel de Caumont, New Centre for Arts, of the new ‘Marine Worlds’ display at Thinktank Aix-en-Provence; Musée Bourdelle, Paris; and Science Museum, which includes over 60 additional Shanghai Exhibition Centre. specimens from Birmingham’s collection. 844,026 visitors attended exhibitions featuring BMT’s loaned objects: National venues: 675,026 visitors International venues: 169,000 visitors

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Curatorial 29 Trading Page 36 of 90

30 Birmingham Museums Trust / Annual Report 2015/16 2015/16 saw the trading arm of the Trust continue to grow and flourish, with total sales of over £2 million. Net profit for the Trading Company exceeded £600k, compared with the 2014/15 figure of £441k.

Food and beverage Admission and activity income The food and beverage team had particular success Admissions and activity income reached the forecast and growth of over 12% was achieved. The Edwardian of £2.186m, an increase of £237.6k (12%) on the Tearooms continued to go from strength to strength, previous year. The breakdown is as follows: and in 2015/16 again achieved the Quality Food & Drink Accolade from Visit England. A small project to develop the Thinktank Science Museum Cafe was completed, SITE INCOME resulting in a brighter and more colourful environment, more suited to the rest of the museum, a more varied Thinktank Science Museum total 1,669,973 menu and increased margins and capacity. Birmingham Museum & Art Gallery 286,035

Retail Heritage Sites 220,727 Retail saw a growth of 4% and investment began in shops and product ranges across the Heritage Sites. MCC + Museum in Box 9,513 The development of bespoke products continued including a new guidebook for the Museum of the TOTAL SITE INCOME £2,186,248 Jewellery Quarter which won the Association for By income stream Cultural Enterprises award of ‘Best New Publication: Guidebook’. Tickets 1,459,169

Conference and banqueting Promotions via third parties 32,929

Conference and banqueting maintained solid sales Schools (on-site) 427,579 figures of over £500k and continued to receive exceptional feedback on both product and service Planetarium 88,830 from clients. Memberships 94,298 The work to develop a Trust-wide culture of entrepreneurial thinking continued with the Informal Learning activities 49,670 establishment of an Enterprise Committee to support new ideas. We also experimented with School outreach 29,420 different event concepts across all venues to engage different audiences and drive increased revenue. Enhanced organised tours 4,353 These included collection-focused ‘late’ events and partnership work with Drink and Draw in the TOTAL SITE INCOME £2,186,248 Edwardian Tearooms.

The largest increases on 2014/15 were achieved through the following: • Planetarium – the introduction of a £1 per person charge brought an additional £88.8K • Gas Hall exhibition programme – £191k against £120k the previous year • Increase in admission and learning activity prices at all sites.

The largest proportionate increases in site income were achieved at Sarehole Mill (56% increase), Birmingham Museum & Art Gallery (54%), Aston Hall (33%) and MJQ (29%). Page 37 of 90

Trading 31 Development

Birmingham Museums Trust’s five-year fundraising • In January 2016 we were selected as one of only strategy continued in its aim to build a diverse four venues in England to become Arts Council and sustainable portfolio of income streams Collection National Partners. The project will from individual giving and corporate support, bring eight contemporary art exhibitions to particularly from Midlands and Birmingham-based Birmingham Museums, supported by £600,000 people and organisations. Highlights included : of funding over a three year period (2016–19). • The Welcome All project which enabled It will display highlights from the Arts Council’s improvements to Birmingham Museum & Art internationally significant collection alongside Gallery, extended the family offer by creating works from our own collection in a major a Mini-Museum, improved physical access and exhibition programme. visitor cloakroom facilities, enhanced signage In 2015/16, Birmingham Museums Trust secured to help navigate the building and refreshed awards of over £1.3 million from a range of interpretation in the galleries to increase grant-makers, including: engagement with the collections. The project received major funding from DCMS/Wolfson • Esmée Fairbairn Effective Collections; the Museums and Galleries Improvement Fund, Science of the Hoard project employed the City of Birmingham Museums & Galleries specialist scientists and equipment to research Development Trust, Friends of Birmingham the gold, metal alloys, and organic materials Museums, and Arts Council England. used by Anglo-Saxon goldsmiths to create the Staffordshire Hoard. • Engineering at Work Day in September 2015, the culmination of an eight-month partnership • Curry Fund of the Geologist’s Association which project between Rolls-Royce and Birmingham enabled the reconstruction of our Ichthyosaur Museums Trust when graduates from Rolls- skeleton as the centrepiece of the new Marine Royce worked with museum staff to develop Worlds gallery at Thinktank Science Museum two interactive workshops showcasing the areas through 3D printing. of engineering involved in their work. • Westhill Endowment Fund which supported • Birmingham Museums Trust’s first ever annual faith communities in telling their stories in the fundraising appeal which coincided with the Faith in Birmingham Gallery, a new schools 130th anniversary of the opening of Birmingham learning session on faith, and informal learning Museum & Art Gallery on 28 November 1885. programmes and activities for visitors to take The celebrations raised over £14k in donations part in including art projects, festivals and with the public, visitors, Birmingham Museums events across the faith calendar over the Trust Patrons and members of the Friends next two years. of Birmingham Museums all contributing generously.

• The launch of a new two tiered membershipBecome a member Please fi ll in the details below: scheme allowing annual free entry acrossMEMBERSHIP TYPE: Adult BirminghamBecome a member Museums’ sites. Child/Concession Joint Adult Family Joint Child/Concession Please fi ll in the details below: Joint Life Membership Life Membership MEMBERSHIP TYPE: Joint Adult I wish to make an Adult Joint Child/Concession additional donation of: Child/Concession Life Membership Family PAYMENT DETAILS: Joint Life Membership Please pay at the ticket desk by credit/debit card, I wish to make an in cash or by cheque. Cheques should be made payable to: Birmingham Museums Trust additional donation of: Welcome to your PAYMENT DETAILS: MEMBERSHIP PLUS Please pay at the ticket desk by credit/debit card, PLUS 0000 5001NUMBER in cash or by cheque. Cheques should be made payable to: Birmingham Museums Trust Membership Welcome to your MEMBERSHIP NUMBER Membership

MEMBERSHIP

Welcome to Welcome to Birmingham Museums Birmingham Museums 24/06/2015 17:47 BMT_Membership PLUS Pack_AW.indd 1 PLUS

BMT_Membership Pack_AW.indd 1 MEMBERSHIP Page 38 of 90 PLUS

24/06/2015 13:27

32 Birmingham Museums Trust / Annual Report 2015/16 Making it happen

Workforce development A Learning and Development Plan encompassing all personnel is being drafted. The plan aims to In 2015/16 we focussed on developing skills and deliver learning and development for managers, knowledge in areas such as team management, employees and volunteers at all levels. The plan project management, customer service and is informed by information gathered from the diversity. The following qualifications were secured: Annual Review and staff surveys. This enables • Customer Service – 28 employees and volunteers. us to identify our organisational Learning and • Level 3 qualification in project management Development needs and to adopt a formal – 39 people. strategy for business improvement driven by people development. • Birmingham Museums Trust’s management of museum projects system – 62 employees. Equality, diversity and inclusion • L3, L5 and L7 in Management Skills. Formal training in equality, diversity and • L1 in Photography. inclusion was provided for 22 people which led • Certificate in Fundraising. to the establishment of an Equality Champions group with a remit to promote EDI across the • Level 2 Diploma in Business Administration organisation and monitor progress towards – two apprentices. achievement of the Birmingham Museums Trust We supported 47 members of staff who attended Equality Action Plan. The HR Department is training and networking events directly related leading on training all staff in their responsibility to their job or personal development and three to apply the law against discrimination and bias new young people started their Apprenticeship during the recruitment and review processes. in November 2015 working towards qualifications in Business Administration and Cultural Venue Operations. Page 39 of 90

Making it happen 33 Consolidated statement of financial activities For the year ended 31 March 2016

Unrestricted Designated Endowment Restricted Total As restated funds funds funds funds 2016 Total 2015

£000 £000 £000 £000 £000 £000

Incoming Resources IInvestment Income

Donations and legacies 898 898 0

Rental income 27 27 23

Interest receivable 2 2 1

Charitable Activities

Visitor admissions and outreach income 2,048 2,048 1,948

Grants receivable and other income 3,918 1,008 2,891 7,817 9,307

Other Trading Activities

Income from trading activities of subsidiary 2,083 2,083 1,961

TOTAL INCOMING RESOURCES 8,076 1,008 900 2,891 12,875 13,240

Resources Expended Raising Funds

Expenses from trading activities of subsidiary 1,483 1,483 1,520

Fundraising costs 76 76 174

Charitable Activities

Museum costs 6,134 1,085 3,078 10,297 11,080

Interest payable – loan 55 55 60

TOTAL RESOURCES EXPENDED 7,748 1,085 0 3,078 11,911 12,834

Net Incoming/(Outgoing) Resources 328 (77) 900 (187) 964 406

Transfers between Funds (16) 68 (52) 0 0

Other Recognised Gains/(Losses)

Return on pension fund assets (516) (516) 1,273

Change in financial assumptions 1,421 1,421 (2,448)

Net movement on Pension Fund 905 0 0 0 905 (1,175)

NET MOVEMENT IN FUNDS 1,217 (9) 900 (239) 1,869 (769)

Reconciliation of Funds

Fund balances brought forward as previously reported 519 351 3,626 4,496 4,003

Prior year adjustment (2,045) 681 56 (1,308) (46)

FUND BALANCES BROUGHT FORWARD RESTATED (1,526) 1,032 0 3,682 3,188 3,957

FUND BALANCES CARRIED FORWARD (309) 1,023 900 3,443 5,057 3,188

Finances Page 40 of 90

34 Birmingham Museums Trust / Annual Report 2015/16 Consolidated balance sheet As at 31 March 2016

As restated As restated 2016 2016 2015 2015

£000 £000 £000 £000

Fixed Assets

Tangible Assets 4,492 5,066

Intangible Assets 33 10

4,525 5,076

Current Assets

Stock 156 154

Debtors 2,079 1,730

Cash at bank and in hand 1,680 1,428

3,915 3,312

Current Liabilities

Creditors: amounts falling due within one year (1,791) (2,792)

Net Current Assets/(Liabilities) 2,124 520

TOTAL ASSETS LESS CURRENT LIABILITIES 6,649 5,596

Creditors: amounts falling due after more than one year (1,032) (1,146)

Net pensions deficit (560) (1,262)

NET ASSETS 5,057 3,188

Funds

Restricted funds 3,443 3,682

Endowment funds 900 0

Unrestricted funds – designated 1,023 1,032

Unrestricted funds – general 251 (264)

Unrestricted funds – pension (560) (1,262)

TOTAL FUNDS 5,057 3,188

Page 41 of 90

Finances 35 Community Gallery Board of Trustees Fitting in and getting along: integration and identity Steve Freer for Birmingham’s British Poles, the Midlands Polish Chair (until March 2016) Community Association 28 November 2015 – 31 March 2016 Professor Ian Grosvenor (Interim Chair from March 2016) Hundreds and Thousands 23 February – 10 April 2016 Councillor Muhammed Afzal Other galleries Graham Allen New Art West Midlands 2015 (until March 2016) 14 February – 17 May 2015 Penelope, Viscountess Cobham Big Hoot trail (until March 2016) 20 July – 27 September 2015 Deborah de Haes Little Hoot exhibition Mohammed Rahman 13 June – 27 September 2015 David Lewis Whitworth Wallis Artist-in-Residence, Sevven Kucuk 2–23 October 2015 Councillor Randal Brew BMAG 130 Years Jan Teo opened 24 October 2015 Stephen Sellers Old Wives’ Tales: migration journeys of Bangladeshi (from September 2015 to March 2016) women to the UK, Legacy West Midlands Sir Mark Ellis Powell Jones November 2015 – 7 February 2016 (until June 2015) Baroque galleries Hon. Alderman Leonard Clark opened 18 June 2015 (until November 2015) Birmingham people, Birmingham places opened 1 April 2015 Senior Management Team Stanley Sellers Bequest Dr Ellen McAdam opened 2 May 2015 Director Wendy Ramshaw, Room of dreams Robert Hayes opened 23 May 2015 Commercial Director (until March 2016) Nigel Ross collection of vesta cases, Industrial Gallery Rachel Cockett (opened 17 November 2015) and Museum of the Director of Development Jewellery Quarter (opened 10 August 2015) Janine Eason Mini-Museum Director of Engagement opened 22 October 2015 Toby Watley Faith in Birmingham Director of Collections opened 4 February 2016 Judith Wilson Soho House Director of Finance and Company Secretary Good money – new expressions 3, community engagement contemporary art commission project Exhibitions and display changes led by Elizabeth Rowe and Chris Pullman 23 May 2015 event and exhibition Museum & Art Gallery – Gas Hall 23 May – 1 November 2015 Love is Enough: William Morris and Andy Warhol 25 April – 6 September 2015 Museum of the Jewellery Quarter Collecting Birmingham: stories that should be shared Enchanted Dreams: the Pre-Raphaelite art of 25 March 2016 – January 2017 E R Hughes 17 October 2015 – 21 February 2016 Thinktank Science Museum/Millennium Point Level 2 Atrium Waterhall Wellcome image awards 2016 Birmingham City University MA degree show 16 March – 11 April 2016, transferred to Planetarium 5–18 September 2015 Corridor, Thinktank Science Museum Salon, New Art West Midlands Marine worlds 13 November – 23 December 2015 opened April 2016 New Art West Midlands 2016 12 February – 15 May 2016 Page 42 of 90

36 Birmingham Museums Trust / Annual Report 2015/16 Talks and lectures

Ali, N 2015 Bridgman, R 2015 13 April, Breaking the mould: new curatorial practice 9 June, Contemporary art from the Arab world, IESA in action, The British Museum’s Curator of the Future course Encounters with Islamic Art, Leighton House, conference, British Museum London 19 June, Birmingham, its collection, its people, Social 11 June, A painted curtain, or pardeh, from Qajar Iran History Curators’ Group conference, Sheffield Museums in Birmingham’s collection, Centre for the History of Retaining and Distribution conference, University of 21 September, After the Festival of Britain: the birth of Wolverhampton Birmingham’s science and industry collection, Artefacts XX conference: Scientific heritage at world exhibitions 2 October, The subject specialist network for Islamic and beyond: the long 20th century, Museo Nazionale art and material culture: new directions in curating della Scienza e delle Tecnologia Leonardo da Vinci, Milan UK museum collections, Symposium on diversity and collections, Cartwright Hall, Bradford 1 October, keynote presentation at MA Transformers Inspiration Day, Museum of the Jewellery Quarter, 28 October, From the streets to the museum, Nour Birmingham Festival, Leighton House, London 21 November, Birmingham, Its collection, its people: 5 November, Muslim communities in museums (session Birmingham Museums Trust’s Collecting Birmingham delivered with Mohammed Ali and Abid Hussain), MA Project, Birmingham History Day, Centre for West Conference, Birmingham Midlands History, University of Birmingham 2016 2016 23 February, From focused displays to wider 20 January, Transformers Project Pecha Kucha, MA engagement: developing sustainable relationships Transformers Alumni Day, Museum of Liverpool with Muslim communities in Birmingham, engagement study day for SSSN for Islamic art and material culture, 27 February, Curating Birmingham: diversity, identity and Leighton House, London power, Irish Museums Association Annual Conference, National Gallery of Ireland, Dublin 4 March, A curator’s perspective, archaeology and geology, deserts and harbours: a celebration of the life Beauchamp, L 2015 and career of Professor David Peacock, Soc Ants, London 14 May, curator’s introduction to Love is Enough exhibition, Morris & Co and suppliers, BMAG Cane, D 2015 19 May, New Art West Midlands 2015: an introduction, and Miller, L, 29 May, Hazards in museum collections and Friends of the Herbert Art Gallery, Coventry XRF demonstration, Museum Development Collections Care Conference, Museum of English Rural Life, Reading 3 July, curator’s introduction to Love is Enough exhibition, William Morris Society, BMAG 16 September, Art or a cart, Conference on provocative plastics, Bournemouth University 10 July, Introduction to the exhibition and Birmingham’s arts & crafts collection, Sandersons and French Walsh, G & Colley, I 16 November, Full steam ahead, Icon journalists, Love is Enough exhibition, BMAG Metals Group conference, Metals in Motion, National Museum of Wales, Cardiff 18 July, curator’s introduction to Love is Enough exhibition, Art Fund, BMAG Cockett, R 2015 25 August, curator’s introduction to Love is Enough 27 May, Crowdfunding case study: Spitfire Gallery, exhibition, British Museum trainees, BMAG Oxford Aspire, fundraising and philanthropy series, Ashmolean Museum, Oxford 1 October, Commissioning to collect (or not), Turning Point West Midlands conference “Midville”, Nest Gallery, 9 June, Adapting to cuts: the future for local authority Birmingham funded museums, East Midlands Heritage Conference, Nottingham 2016 24 February, Curating and Interpretation, MA Curating 5 November, Saving the museum, MA Conference 2015, students, Birmingham City University Birmingham 4 March, New Art West Midlands exhibition, public 22 November, Staying Friends: a museum perspective lunchtime talk, BMAG on working with Friends at times of change, Brit Assoc Friends Mus (West Midlands), Museum of Carpet, Blakeman, L & Washizu, M 2015 Kidderminster 6 November, How to train your CMS, MA Conference 2016 2015 exhibition, Birmingham 22 March, Fundraising without data, Inst Fundraising Cultural Sector Network 2016 Conference, RBS London Brain, D 2015 22 May, Managing arsenic and asbestos in museum Curtis, J-A 2015 collections, Museum Development Collections Care 11 April, Women and the First World War: oral Conference, Chatham Historic Dockyard, Kent testimonies from Birmingham Museums sound archive, 2016 Voices of war and peace event: Women and the First 3 March, Engaging with construction and demolition World War (AHRC), Library of Birmingham companies whose activities threaten your museum 6 May, Introduction to Birmingham, its people, its history, collection, IAQ2016 Indoor Air Quality Conference, Bournville Hist Soc, Birmingham Thinktank Science Museum, Birmingham Page 43 of 90

Talks & Lectures 37 15 September, Quaker response to Belgian refugees Hall, K 2015 in Birmingham during the First World War, Non- Introduction to the Staffordshire Hoard, 29 June, 23 July, conformist responses to First World War (Quaker University of Birmingham International Summer School, Studies Conference), Woodbrooke Quaker Study Centre, Birmingham Museum & Art Gallery Birmingham 25 August, Introduction to exhibitions at BMT, British Museum International Training Programme, Birmingham Dixon, W 2015 Museum & Art Gallery 30 September, An introduction to Sarehole Mill, Birmingham Jewish Community Day Centre 5 October, Introduction to BMT, 2015 Cultural Interns programme, Birmingham Museum & Art Gallery Eason, J 2015 21 October, Introduction to Enchanted Dreams exhibition, 2 December, BMAG redevelopment plans, Heritage Birmingham City University Creative Writing students Forum, Birmingham 10 December, An introduction to displays and Everington, M 2016 interpretation at Birmingham Museum & Art Gallery, 8 February, Furniture & collections tour, Aston Hall University of Birmingham History of Art students

Fletcher, R 2015 Hutcheson, C 2015 Collecting Birmingham, 26 August, Heartlands Local Hist Life inside the dome, 28 April, Friends of BMT, Soc, Nechells Green Community Centre; 16 September, Coffin Works, Birmingham; 9th September, Redditch Friends for Aston Hall & Park, Aston Hall; 30 September, Astronomical Society, St Augustine’s RC High School, Perry Aston Residents’ Association, Broadway Academy; Redditch; 23 February, Birmingham Astronomical Society, 20 October, South Aston & Nechells Local History Group, Aston University, Birmingham South Aston United Reformed Church Jaffer, A 2016 2016 18 February, Secret Egypt: preparing for the afterlife, 15 March, Birmingham Museums – corporate Weston Park, Sheffield Museums volunteering, Museum Development East Midlands Volunteer Development Programme, Daventry Museum, 17 March, Faith in Birmingham Gallery, Ingenuity, Northamptonshire Ironbridge Museums

Fuller, K 2015 Lavelle, C 2015 11 September, The Staffordshire Hoard, Institute of 26 April, Japanese tissue, Icon Ethnography Group Valuers event, Birmingham Museum & Art Gallery Conference, UCL, London & Miller, L, 4 March, Every case has a copper lining: a Greaves, P 2015 study of the environmental conditions in Birmingham The Staffordshire Hoard, 22 April, Solihull Dementia Museum & Art Gallery’s civic silver store, IAQ2016 Indoor group; 28 April, Kingstanding Dementia group; 15 Air Quality Conference at Thinktank Science Museum, July, Kings Heath Dementia group; 22–23 July, British Birmingham Archaeology Month family event, Birmingham Museum & Art Gallery; 4 August, Café Scientifique, Birmingham; Locke, E 2015 5 October, Hoard Guardians event, Jewellery Industry 5 November, Open access: interpretation at museum Innovation Centre, Birmingham; 13 October, Art Fund storage sites, MA Conference 2015 exhibition, Treasure Plus Conference, Thinktank Science Museum, International Convention Centre, Birmingham Birmingham; 2016 1 June, Conservation of the Staffordshire Hoard, & Cane, D, 17 March, What’s in store, Off the Shelf Archaeometallurgy in Europe Conference, Madrid Museums Association conference, British Museum, 14 July, The results from the cross-disciplinary research London project studying the Anglo-Saxon Staffordshire Hoard, Centre for Doctoral Training in Science and Engineering McAdam, E 2015 in Arts Heritage and Archaeology Conference, UCL, 6 November, Renewing our vows, Radical futures: renew London your vows, MA Conference, Birmingham 4 September, Recreating the Staffordshire Hoard: using 2016 new technologies to allow greater access to objects, 15 February, Regional museums and returning objects, European Archaeologists Association Conference, Glasgow BBC Radio 4 Start the Week 1 October, The discovery and subsequent digitisation and 17 March, Partnership and collaboration, Re:Present recreating of the Staffordshire Hoard, TCT Conference, session, Birmingham NEC Birmingham 17 October, The Staffordshire Hoard: a monumental Meehitiya, L 2015 Anglo-Saxon gold hoard, Monumental treasures: 22 May, Basic advocacy: are we talking the same preservation and conservation Congress (Nordic language?, Natural Science Collections Association Association of Conservators, Finnish section), Helsinki, conference, Cardiff Museum Finland 18 June, West Midlands biological collections review, 2016 Refloating the ark: connecting researchers and the public The Staffordshire Hoard, 4 February, Royal Chemistry with natural science collections, Manchester Museum Society’s Chemistry at Work event, Thinktank Science 21 November, Birmingham’s entomology collection, Museum; 12 March, CBA South Midlands, Oxford Dipterist Forum, Birmingham Museum & Art Gallery 27 February, The art of the Anglo-Saxon goldsmith, 1Page December, 44 ofBe a90 curator! Getting people hooked Current Archaeology Conference, London on geological curation, Geological Curators’ Group conference, Natural History Museum, London

38 Birmingham Museums Trust / Annual Report 2015/16 2016 Stop the rot, 9 April, Manchester Museum of Football; 3 March, Skills sharing partnerships, Natural Science 13 April, Derby Museum; 16 April, Quilt Museum, York; Collections Consortium, Natural History Museum, London 24 April, Black Watch Museum, Perth 15 March, Thinktank Science Museum’s fish lizard: the 1 December, Neither a lender nor a borrower be, MCC, ichthyosaur skeleton, The Midland Institute, Birmingham Birmingham 2016 Nicholson-Evans, A 2016 26 January, Emergency planning and salvage, Newman 2 February 2016, Museum volunteering: it’s Boring, it’s Brothers Coffin Works, Birmingham for old people and why should I care? Heritage Volunteer Group, Natural History Museum, London Stop the rot, 8 February, Newman Brothers Coffin Works, Birmingham; 23 February, Whitchurch Heritage Osborne, V 2015 Centre, Shropshire; 26 February, Leominster Museum, 18 May, Burne-Jones, Birmingham and the Star of Herefordshire; 29 February, Droitwich Heritage Centre, Bethlehem, Honorary Research Fellows, University of Worcestershire; 7 March, Nottingham Galleries of Justice; Birmingham 9 March, Kendal Museum, Cumbria; 15 March, Banbury Museum 25 June, Redisplaying Birmingham’s Baroque collections, European Paintings Pre-1800 Subject Specialist Network, 12 February, Handling and marking, Almonry Museum, Birmingham Evesham 29 July, Enchanted Dreams: the Pre-Raphaelite art of ER 14 March, Integrated Pest Management 1, Royal Hughes, Stratford-upon-Avon University of the Third Age, Regiment of Fusiliers, Warwick Stratford-upon-Avon West, R 2016 28 November, Burne-Jones and Birmingham, Burne- 20 February, The Lunar Society, Lunar Society event, St Jones Study Day, Birmingham Museum & Art Gallery Philip’s Cathedral, Birmingham 2016 17 January, A half-forgotten genius: Simeon Solomon, Refereed publications Birmingham Assoc Jewish Graduates, Moseley Exchange, Fregni, G, Fuller, K, Greaves, P, Butterworth, J, 2016, Birmingham The importance of multidisciplinary work within archaeological conservation projects: assembly of the Simon, V 2015 Staffordshire Hoard die-impressed sheets, J Int Inst Cons 27 May, Asian Women’s Textile Group promotional Fern, C and Greaves, P, 2015 The Staffordshire Hoard: talk, Birmingham Healthy Minds, Soho Health Centre, a monumental Anglo-Saxon gold hoard Monumental Birmingham Treasures: The Nordic Association of Conservators 3 June, Asian Women’s Textile Group short programme Finnish section. Helsinki conference. Pre-prints IIC talk, Osborne House NHS, Handsworth, Birmingham publication 12 August, Asian Women’s Textile Group Short Altpeter, R, Fern, C, Fuller, K, Greaves, P and Miller, L, programme talk, Bharosa Domestic Abuse Service, 2015 The assembly of the Staffordshire Hoard objects, Birmingham News in Conservation October 2015, 7–10 17 September 2015, Asian Women’s Textile Group Conservation team, 2015 Thorns: a new conservation promotional talk, Bharosa Domestic Abuse Service, tool. Icon news May 2015, 58, pages Birmingham Blakelock, E S, 2015 Never judge a gold object by its surface analysis: a study of surface phenomena in a Spurdle, L & Blakeman, L 2015 selection of gold objects from the Staffordshire Hoard, 23 April 2015, Grappling with angry elephants: Archaeometry collections online and the Collections Management System, KE Emu User Conference, Birmingham 30 April, Being flexible with design, Museum and Heritage Show, London with Ben Sullivan from Axiell, 5 November, Turning collections data into engaging digital experiences, MA Conference 2015 workshop, International Convention Centre, Birmingham 2016 with social media/digital engagement consultant Mar Dixon, 26 January, Culture themes and 52 museums, Digital Humanities Hub cake event, University of Birmingham

Stallard, L 2015 9 July and 22 July, Working in a museum, National Citizen Scheme, The Challenge project, Thinktank Science Museum, Birmingham Thompson Webb, J 2015 Integrated pest management 1, 7 April, Clarks Museum, Street, Somerset; 22 April, Whitworth Art Gallery, Manchester; 10 November, Royston Museum, Hertfordshire Page 45 of 90

Talks & Lectures 39 For more information and for our full price list please get in touch: 0121 348 8000 [email protected] For more details about our venues visit: birminghammuseums.org.uk

Page 46 of 90 BIRMINGHAM CITY COUNCIL PUBLIC REPORT Report to: CABINET COMMITTEE – GROUP COMPANY GOVERNANCE

Report of: Strategic Director – Finance & Legal

Date of Decision: 8 March 2017

SUBJECT: GROUP COMPANY GOVERNANCE – INFORMING THE AUDIT RISK ASSESSMENT Wards Affected: All

1. Purpose of Report

1.1 A recommendation was made in the Annual Audit Letter 2013/14 regarding the Council’s Group entities in relation to the overall governance controls needing to represent best practice.

1.2 Those entities that are considered to be material and that are consolidated into the Council’s Group financial statements have returned responses to questions regarding their approach to assessing, controlling and reporting risks in order to provide assurance around governance and control arrangements.

1.3 A report was provided to Audit Committee at its meeting on 31 January 2017 to enable members to note the processes in place to assess the governance arrangements in Group entities and thereby inform the audit risk assessment.

1.4 Details of the responses provided around governance and controls are attached as Appendix 1.

2. Decisions recommended:

2.1 To note the processes in place to improve governance of Group entities.

2.2 To note the responses received to inform the audit risk assessment.

Contact Officers: Jon Warlow Telephone No: 0121 303 2950 E-mail address: [email protected]

Martin Stevens Telephone No: 0121 303 4667 E-mail address: [email protected]

Page 47 of 90 3. Compliance Issues:

3.1 Are Decisions consistent with relevant Council Policies, Plans or Strategies: The production of annual Group accounts is a statutory requirement.

3.2 Relevant Ward and other Members /Officers etc. consulted on this matter: The Chairman of the Committee has been consulted.

3.3 Relevant legal powers, personnel, equalities and other relevant implications (if any): Section 151 of the Local Government Act requires the Strategic Director – Finance and Legal (as responsible officer) to ensure proper administration of the City Council’s financial affairs .

3.4 Will decision(s) be carried out within existing finances and resources? Yes.

3.5 Main Risk Management and Equality Impact Assessment Issues (if any): The issues raised in this report are largely of a technical financial nature.

4. Relevant background/chronology of key events:

4.1 The Council’s auditors highlighted concerns in the 2013/14 Annual Audit Letter as follows: “The Council has significant financial interests outside of its core business. This includes companies owned through its group accounts structures (such as the NEC and Finance Birmingham), investments such as Birmingham Airport, and various partnership and accountable body activities such as the Advanced Manufacturing Supply Chain Initiative. Individual governance arrangements are in place for these activities but there is no overall assessment of the cumulative risk to the Council.”

4.2 For the past 4 years and in response to the recommendation, Group entities have been asked to respond to a series of governance questions which are similar to the “Informing the Audit Risk Assessment” report that the Council completes each year.

4.3 An exercise is carried out each year to determine the “Group Boundary” i.e. to define which subsidiaries and associates’ accounts are consolidated with the Councils’ to produce the Group Accounts. This report includes assurance statements from those companies that meet the criteria for consolidation, including Finance Birmingham, Paradise and InReach for the first time. Appendix 1 is a collated set of responses to these questions.

4.4 Two companies that will be consolidated into the 2016/17 Group Accounts have not been required to respond to the assurance questions:

4.4.1 The National Exhibition Centre (Developments) PLC The Company was originally set up to raise finance, construct and operate exhibition halls 17-20 at the National Exhibition Centre. The Company issued £73m loan stock guaranteed by the Council and Loan Notes. Since 2010 the Council has held all of the Company’s share capital and Loan

Page 48 of 90 Notes. Following the sale of the NEC Group in 2015, the sole function of the Company is servicing of the finance raised to fund the construction of halls and therefore the assurance questions do not apply.

4.4.2 PETPS (Birmingham) Limited (PETPS) Following completion of the sale of the NEC Group by the Council on 1 May 2015, PETPS, a wholly owned subsidiary of the Council assumed the ongoing funding obligation of the NEC Limited Pension Fund and the NEC Executive Pension Scheme (The Schemes) with the agreement of the pension trustees. Although PETPS is legally responsible for funding the Schemes, due to the agreements in place the Council has economic responsibility, therefore the assurance questions do not apply

4.5 A review of governance was commissioned from Grant Thornton. The objective of the review was to recommend best practice. As part of the review an in-depth look at 5 organisations has taken place involving questionnaires, document reviews and individual meetings. The Review was reported to Cabinet on 26 July 2016. One of the outcomes of the review was the establishment of a Group Company Governance Committee.

Signatures :

Chief Officer:

Dated:

List of Background Documents used to compile this Report: Audit Findings Report 2013/14

Page 49 of 90

Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1

Question Acivico Response

Your Management's views on your control environment, the process of Acivico uses the same systems and processes as Birmingham City Council. reviewing the effectiveness of the system of internal controls and the There are adequate internal controls within systems to help prevent, deter results of any review. and detect fraud, errors or system anomalies. Compliance with controls is monitored by management as part of day to day governance arrangements and is reviewed by Internal Audit as part of delivery of the internal audit plan. Acivico’s financial processes undergo continuous review and are constantly updated to reflect any changes required due to the operation of Acivico as a commercial company. All reviews are either reported through internal or external audit and significant findings reported to the Acivico Audit Committee, Acivico Leadership Team and Acivico Board. Your Management's views on your risk assessment process as it related to Acivico uses the same financial systems and processes as Birmingham City financial reporting. Council. There are regular risk assessments carried out by management and risks are addressed appropriately within the timescales identified as being high, medium, low risk. Financial reporting is corroborated by financial systems and are reviewed by external audit and internal audit as part of the delivery of the internal audit plan. A full risk assessment is also presented to the Strategic Partnership Board in Birmingham City Council as a requirement of the Acivico/Birmingham City Council contract, to the Acivico Audit Committee and to the Acivico Board, which has three Birmingham City Council members and currently one non executive officer as Directors.

Page 50 of 90 Page 4 of 34

Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Acivico Response

Matters and events which occurred during the year that could influence A new year end automated accruals system was used at the end of your audit approach or BCC’s consolidated financial statements. 2015/2016 and apart from some minor issues, this worked well. It is expected that this solution will be used again this year, but with the added aspect of including prior year accruals which it did not do in 2015/2016. This system will be tested during February 2017 and assuming all goes to plan will be used in the compilation of accruals for 2016/2017. If all does not go to plan with this solution, there is then time to bring in additional staff resources in order to meet the deadlines set for Acivico’s accounts to form part of BCC’s consolidated financial statements.

The appropriateness of accounting policies to be used in the period, and Accounting policies applied during the period are still appropriate and are whether any changes in activities could require them to be updated. to continue to be used in the future. These policies are reviewed regularly to determine if they are appropriate to the way in which Acivico now operates as a commercial entity and discussed at Senior Leadership Team within Acivico and/or Acivico Board. Discussions are also held with external auditors on the need to change any accounting policies as appropriate.

Your Management's processes for identifying and responding to risks of Acivico uses the same systems and processes as Birmingham City Council fraud. and therefore uses the Council’s Anti-Fraud and Corruption Policy and Fraud Response plan which set out the ‘zero tolerance’ stance to fraud. This is supported by Financial Regulations which require all suspicions of financial irregularity to be reported to Internal Audit. Fraud awareness information is available on PSPG, which Acivico has access to and electronic training material is available specifically targeted at managers.

Page 51 of 90 Page 5 of 34

Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Questi on Acivico Response

How those charged with governance monitor management's processes for Acivico uses the same systems and processes as Birmingham City Council identifying and responding to risks of fraud. and therefore Internal Audit provides the Acivico Audit Committee and the BCC Audit Committee with updates of their work on fraud prevention and detection, including any significant identified frauds and the action taken on behalf of Acivico. The Committee receives an annual report on fraud and updates on other initiatives eg National Fraud Initiative. Fraud risks , including specific accounts or classes of transactions where Although there is an on -going risk of fraud being committed against fraud risks have been identified. Acivico, arrangements are in place to both prevent and detect fraud. These include work carried out by Internal Audit on the internal audit plan for Acivico. The risk of material misstatement of the accounts due to undetected fraud is low. How management communicate to those charged with governance Acivico uses the same systems and processes as Birmingham City Council regarding business risks (including fraud). and therefore Internal Audit provides the Acivico Audit Committee and the BCC Audit Committee with updates of their work on fraud prevention and detection, including any significant identified frauds and the action taken on behalf of Acivico. The Committee receives an annual report on fraud and updates on other initiatives e.g. National Fraud Initiative.

Page 52 of 90 Page 6 of 34

Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Aciv ico Response

How those charged with governance monitor management's processes for Acivico uses the same systems and processes as Birmingham City Council identifying and responding to risks of fraud. and therefore Internal Audit provides the Acivico Audit Committee and the BCC Audit Committee with updates of their work on fraud prevention and detection, including any significant identified frauds and the action taken on behalf of Acivico.

The Committee receives an annual report on fraud and updates on other initiatives e.g. National Fraud Initiative.

Your Management's awareness of any events or changes in circumstances Any changes or events that would cause impairment to non -current assets that would cause an impairment of non-current assets. would be reported to both the Senior Leadership Team of Acivico, to the Acivico Audit Committee and to the Acivico Board. As shareholder of the company a report would be completed on any such matters to the AD Finance in Birmingham City Council. Acivico has a limited number of assets, so there have not been any such events to report.

Your Management's awareness or allegations of fraud, errors, or other Senior Management are made aware in detail of any allegations of fraud as irregularities during the period. they affect them and their staff, via discussions with the Chief Executive and Head of Acivico Finance as appropriate. Serious fraud issues are also reported to the Acivico Board and the Acivico Audit Committee as appropriate, however, there have been none to date.

Management's awareness of transactions, events and conditions (or Any events that would give rise to recognition or disclosure of significant changes in these) that may give rise to recognition or disclosure of accounting estimates are reported to both the Senior Leadership Team of significant accounting estimates that require significant judgement. Acivico, Acivico Audit Committee and to the Acivico Board. Such matters are also reported to the AD Finance in Birmingham City Council.

Page 53 of 90 Page 7 of 34

Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Acivico Response

How your organisation would raise BCC’s Audit Committee's awareness of Acivico uses the same systems and processes as Birmingham City Council fraud or suspected fraud. and therefore Internal Audit provides the Acivico Audit Committee and the BCC Audit Committee with updates of their work on fraud prevention and detection, including any significant identified frauds and the action taken on behalf of Acivico. The Committee receives an annual report on fraud and updates on other initiatives e.g. National Fraud Initiative.

How your organisation would communicate financial risks to BCC e.g. Monthly meetings with AD of Finance, BCC and meetings by exception, as losses. necessary.

Page 54 of 90 Page 8 of 34

Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Birmingham Airport Response

Your Management's views on your control environment, the process of • The Airport has a robust Internal Audit (IA) function which periodically reviewing the effectiveness of the system of internal controls and the reviews the financial functions and findings are reported through to the results of any review. Airport’s Audit Committee. IA reviews carried out during 2016/17 and as with previous years’ support strong accounting and have highlighted no major concerns.

• In addition the external audit review carried out by PwC on both the controls framework of The Airport, which is an equally important review for certifying accuracy of records, and the yearend statutory review have both demonstrated strong financial records and have highlighted strong controls and no major concerns.

Your Management's views on your risk assessment process as it related to The risk assessment process is ‘fit for purpose’ and is supported by a robust financial reporting. internal audit function and external audit review. In addition we keep proper accounting records that disclose with reasonable accuracy at any time the financial position of the company and group.

• Annually we set Budgets which outline the forthcoming year’s expectations for financial and statistical results. Budgets are a useful function to benchmark and compare actual results against which could potentially highlight inaccuracies with accounting.

• The Airport prepares Monthly management accounts (and adopted FRS102 (new UK GAAP) during 2015/16 and the monthly management accounts are being prepared on this basis), reporting actual results against budget on a monthly basis in a timely manner. In addition the report includes Key Performance Indicators (KPIs) which are traffic lighted (red, amber, green) which direct attention to variances from prior year and Budget. The process includes investigating variances to budget with any anomalies identified and followed through to resolution.

Page 55 of 90 Page 9 of 34

Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1

• The management accounts process is a thorough robust process and is able to disclose at any point in time the financial position of the company, subject to any processes that only occur at yearend such as actuarial valuations in accordance with accounting standard FRS17.

Page 56 of 90 Page 10 of 34

Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Birmingham Airport Response

Matters and events which occurred during the year that could influence None to report at this point in time. your audit approach or BCC’s consolidated financial statements.

The appropriateness of accounting policies to be used in the period, and The financial statements continue to be prepared and comply with New whether any changes in activities could require them to be updated. United Kingdom Generally Accepted Accounting Practice (UK GAAP) following the adoption in 2015/16. • To the best of our knowledge using the experience and professional knowledge of staff and external guidance, the financial statements have been prepared in accordance with New UK GAAP and the Companies Act 2006. • It should be noted that during 2016/17 there have been no fundamental changes within The Airport which would raise any concerns with regard to financial statements being prepared consistently with previous years. • We have selected and applied consistently, suitable accounting policies that are relevant to the company’s and group’s business • The accounting policies adopted during the year are consistent with those applied in prior years. • Accounting Policies are considered with any new area which arises in the year. Your Management's processes for identifying and responding to risks of • Where risks of fraud are apparent or have been identified by internal fraud. audit or external auditors, management responds to these by reviewing existing controls and where necessary implementing additional controls. • Consideration to risks of fraud forms part of Management’s processes, for example additional controls were implemented to reduce the risk of fraud on changing supplier bank account details.

Page 57 of 90 Page 11 of 34

Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Birmingham Airport Response

How those charged with governance monitor management's processes for The Airport has a robust Internal Audit (IA) function which periodically identifying and responding to risks of fraud. reviews the financial functions and findings are reported through to the Airport’s Audit Committee (AC). • The IA function reports to the Chair of the Audit Committee and reports independently from management to the AC three times per annum. The Executive Board (EB) of directors formally reports to the Board six times per annum, any concerns raised by the EB are followed up with further supporting work and reporting. Fraud risks , including specific accounts or classes of transactions where PWC identified during the economic downturn that there had been an fraud risks have been identified. increase in fraudulent activities in changing bank details held within supplier payment ledgers, with employee’s changing bank details from supplier’s details to their own personal details. Immediately following this awareness, The Airport increased its controls in this area and these were subsequently reviewed by the Internal audit and external auditors for satisfactory compliance. How management communicate to those charged with governance Internal Audit maintain a risk register which is updated by management regarding business risks (including fraud). and is reported to the Audit Committee three times per annum highlighting any changes.

Your Management's awareness of any events or changes in circumstances Management are not aware of any events or changes in circumstances that that would cause an impairment of non-current assets. would cause an impairment of non-current assets. Should there be an awareness of this situation then Management would report through the Executive Board and then subsequently through to the Board. Your Management's awareness or allegations of fraud, errors, or other No fraudulent or irregularities have been identified by the Directors or the irregularities during the period. Internal and External audit process.

Page 58 of 90 Page 12 of 34

Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Birmingham Airport Response

Management's awareness of transactions, events and conditions (or The Airport’s judgements and estimates made are reasonable and prudent. changes in these) that may give rise to recognition or disclosure of • The Airport makes relatively few judgments and estimates in preparing significant accounting estimates that require significant judgement. the financial statements and where the directors have had to make provisions they are reasonable and prudent.

The provisions held are subject to a timed release policy where any greater than three years old are subject to a phased release, provisions held with this policy highlighted during PwC’s review and identified within their audit report.

How your organisation would raise BCC’s Audit Committee's awareness of The Airport’s Board and Audit Committee include representatives from BCC fraud or suspected fraud. and therefore any fraud or suspected fraud would be reported to BCC via their representatives on these bodies.

How you r organisation would communicate financial risks to BCC e.g. The Airport’s Board includes representatives from BCC and therefore any losses. financial risks would be reported to the Board and hence BCC would be informed through this channel.

Page 59 of 90 Page 13 of 34

Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Birmingham Museums Trust Response

Your Management's views on your control environment, the process of There is a strong management focus on ensuring that an effective internal control reviewing the effectiveness of the system of internal controls and the environment is maintained and continuously improved. The financial control results of any review. environment is well-established with appropriate systems, procedures, and segregation of duties.

During 2016 the control environment was further developed based on a resilience project to strengthen financial systems and processes together with the financial management culture. In addition, steps have been taken to strengthen the supporting IT control environment, including a project to implement new ticketing and EPOS systems from early 2017, and we have further embedded our project management approach.

The external audit for 2015-16 was concluded in June 2016 with Board approval of the accounts on 14 th July. This five month improvement in the timeframe (previously accounts were not approved until December although figures were provided to BCC in line with the group timetable) reflected the underlying improvements in the control environment and represented a significant achievement. The external auditor expressed an unqualified opinion on the group accounts of Birmingham Museums Trust and the accounts of its subsidiary companies. The auditor has recognised the progress made in respect of the operation of systems and controls and has recommended some further improvements which management will address. The Trust is well-placed to meet the BCC Group timetable for 2016-17.

The Audit Committee has overseen the first year of a new three-year internal audit programme and the audit recommendations will underpin further improvements in the control environment.

Page 60 of 90 Page 14 of 34

Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Birmingham Museums Trust Response

Your Management's views on your risk assessment process as it related to Risks related to financial reporting are identified and managed within the financial reporting. overall risk management framework and processes. Risk relating to financial reporting has been assessed and reviewed regularly and mitigating actions have been followed through. It is the overall responsibility of the Trustees, aided by the Executive Team, to approve Birmingham Museum's risk management strategy and to promote a culture of risk management awareness throughout Birmingham Museums. The Audit Committee reviews the risk framework each year to confirm that it remains fit for purpose; the Board receives the Audit Committee’s recommendation and approves this.

A detailed risk register is maintained and updated at least quarterly. It records the key strategic risks facing the business, and identifies actions being taken to mitigate these. The risk register is presented to Birmingham Museums Trust Audit Committee and Board where it is reviewed and discussed. The strategic risk register is supported by directorate and project risk registers.

Page 61 of 90 Page 15 of 34

Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Birmingham Museums Trust Response

Matters and events which occurred during the year that could influence No known accounting matters or business events. your audit approach or BCC’s consolidated financial statements. Birmingham Museums Trust is continuing to work urgently with the BCC Executive Team to put appropriate long term governance arrangements in place before March 2017 including leases, a services contract, and a collections management agreement. The future VAT status of the Trust is also being determined and will need to be supported by a shared financial strategy, if necessary. If not resolved, these matters may have implications for the future of the museums service which would require disclosure.

The appropriateness of accounting policies to be used in the period, and The accounting policies as set out in the 2015 -16 accounts were considered whether any changes in activities could require them to be updated. to remain relevant and appropriate as at July 2016 when the accounts were approved. The new charity accounting Statement of Recommended Practice was successfully implemented for 2015-16 and will continue to apply, together with FRS102, for 2016-17. The accounting policies are reviewed as a matter of course ahead of each annual audit. There are no changes in activities which would require accounting policies to be updated.

Your Management's processes for identifying and responding to risks of The policy relating to fraud, irregularity and c orruption is included in fraud. Birmingham Museums Trust’s Governance Guidance and Financial Regulations . There is a clear process for reporting and investigating potential fraud, under the responsibility of the Director of Finance and the museum Director. Any incidents would be reported to the Board under the policy.

Page 62 of 90 Page 16 of 34

Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Birmingham Museums Trust Response

How those charged with governance monitor management's processes for The Board approves the policy and processes for identifying and identifying and responding to risks of fraud. responding to risks of fraud. The Audit Committee and Board receive and review the External Auditor’s report and management letter and also the Internal Auditor’s reports.

On behalf of the Board, management carry out an annual Related Party Transaction declaration process, maintain a register of gifts and hospitality and also a register of interests.

The Audit Committee considers fraud risk within it wider remit on risk management.

Fraud risks , including specific accounts or classes of transactions where The main fraud risk in respect of transactions relates to the risk of false fraud risks have been identified. supplier bank account details being provided and accepted.

To counter this risk the finance team obtains independent confirmation of all new supplier bank details and ensures segregation of duties between those updating supplier bank details and those processing or approving payments.

How management communicate to those charged with governance The Board receives and comments on a report on business risks at each regarding business risks (including fraud). meeting.

Page 63 of 90 Page 17 of 34

Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Birmingham Museums Trust Response

Your Management's awareness of any events or changes in circumstances None identified in the short to medium term. that would cause an impairment of non-current assets. An impairment review is carried out annually.

The potential impact of the High Speed 2 (HS2) Birmingham terminal on both the Thinktank site and the Museum Collection Centre continues to be monitored.

Your Management's awareness or allegations of fraud, errors, or other None identified to date. irregularities during the period.

Management's awareness of transactions, events and conditions (or None identified to date. changes in these) that may give rise to recognition or disclosure of significant accounting estimates that require significant judgement.

How your organisation would raise BCC’s Audit Committee's awareness of Management meet regularly with the BCC sponsor team. In addition, the fraud or suspected fraud. Director and Chair meet BCC senior managers. The Director of Finance has regular contact with the BCC finance team. Any issues would be raised through these channels or through the Chair of the Trust’s Audit Committee, as appropriate.

How your organisation would communicate financial risks to BCC e.g. BCC nominates two Trustees who are members of the Birmingham losses. Museums Trust Board. In addition, a BCC senior officer attends Board meetings as an observer.

BCC’s nominees are fully informed of all matters relating to risk and finances as reported to the Board.

Page 64 of 90 Page 18 of 34

Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Finance Birmingham Response

Your Management's views on your control environment, the process of As an FCA regulated company, Finance Birmingham has good and reviewing the effectiveness of the system of internal controls and the comprehensive governance and risk policies. results of any review. Financial controls exist and a full accounts audit is undertaken by a third party (currently Grant Thornton) on an annual basis.

Your Management's views on your risk assessment process as it related to The company’s financial performance is reported at every Board meeting – financial reporting. any anomalies are reported immediately. BCC officers and Councillors attend FB board meetings. Matters and events which occurred during the year that could influence None. your audit approach or BCC’s consolidated financial statements.

The appropriateness of accounting policies to be used in the period, and Accounting policies remain consistent – no changes required. whether any changes in activities could require them to be updated.

Your Management's processes for identifying and responding to risks of The senior operations team meets weekly and any identified risk of fraud fraud. would be managed via this team, led by the Compliance and Regulation Director. How those charged with governance monitor management's processes for Any instances of fraud would be i mmediately reported to the Board by the identifying and responding to risks of fraud. CEO.

Management ensures that there is the appropriate segregation of duties in place to ensure that the risk of fraud is minimised.

Page 65 of 90 Page 19 of 34

Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Finance Birmingham Response

Fraud risks , including specific accounts or classes of transactions where None. fraud risks have been identified.

How management communicate to those charged with governance Through regular (weekly) operational meetings. regarding business risks (including fraud).

Your Management's awareness of any events or changes in circumstances None. that would cause an impairment of non-current assets.

Your Management's awareness or allegations of fraud, errors, or other None. irregularities during the period.

Management's a wareness of transactions, events and conditions (or None. changes in these) that may give rise to recognition or disclosure of significant accounting estimates that require significant judgement.

How your organisation would raise BCC’s Audit Committee's a wareness of The CEO would report to the FB board and, at the same time, raise fraud or suspected fraud. awareness with senior BCC officers.

How your organisation would communicate financial risks to BCC e.g. Through financial updates and review of management accounts at monthly losses. board meetings.

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Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question InReach Response

Your Management's views on your control environment, the process of Birmingham Audit have recently reviewed controls and recommendations reviewing the effectiveness of the system of internal controls and the have been implemented results of any review.

Your Management's views on your risk assessment process as it related to Financial performance is reported monthly to InReach Project Board and at financial reporting. Shareholder Meeting

Matters and events which occurred during the year that could influence none your audit approach or BCC’s consolidated financial statements.

The appropriateness of accounting policies to be used in the period, and External accountant and auditors for InReach satisfied with accounting whether any changes in activities could require them to be updated. policies, no changes made which would require an update.

Your Management's processes for identifying and responding to risks of InReach Project Board meets at least once a month, the risk register would fraud. be updated with any identified risks and managed via this. The risk register is reviewed on at least a quarterly basis How those charged with governance monitor management's processes for Monitoring is via the risk register which is reviewed on at least a quarterly identifying and responding to risks of fraud. basis.

Fraud risks , including specific accounts or classes of transactions where None have been identified. fraud risks have been identified.

How management communicate to those charged with governance InReach Project Board meets at least once a month, any business risks regarding business risks (including fraud). identified are raised and document during these meetings

Your Management's awareness of any events or changes in circumstances none that would cause an impairment of non-current assets.

Question InReach Response

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Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Your Management's awareness or allegations of fraud, errors, or other none irregularities during the period.

Management's awareness of transactions, events and conditions (or none changes in these) that may give rise to recognition or disclosure of significant accounting estimates that require significant judgement.

How your organisation would raise BCC’s Audit Committee's awareness of Any fraud or suspected fraud would be raised during the monthly InReach fraud or suspected fraud. Project Board meeting and fed through to BCC Shareholder Meeting

How your organisation wou ld communicate financial risks to BCC e.g. Financial risks would be highlighted at the Shareholder Meeting losses.

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Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Paradise Response

Your Management's views on your control environment, the process of Paradise Circus Limited Partnership (PCLP), acting by Paradise Circus reviewing the effectiveness of the system of internal controls and the General Partner Limited (the Board) considers the internal control results of any review. environment to be strong and the overall inherent risk to be low. PCLP is a joint venture between BCC and BriTel Fund Trustees Limited. The Board is responsible for the governance of the joint venture and any financial risks would be communicated to the Board. In addition, PCLP is subject to an annual external audit, performed by HW Fisher. No issues have been reported in relation to the overall control environment or systems of internal controls.

Your Management's views on your risk assessment process as it related to The risk assessment process relating to financial reporting is considered financial reporting. to be strong, with appropriate levels of internal controls implemented across the business.

Matters and events which occurred during the year that could influence Paradise Circus’ financial statements adopted FRS 102 for the first time your audit approach or BCC’s consolidated financial statements. in the 2015/16 year. The reported financial position and financial performance for the previous period are not affected by the transition.

No further known matters or events.

The appropriateness of accounting policies to be used in the period, and The accounting policies as set out in the 2015/16 financial statements whether any changes in activities could require them to be updated. were considered to be relevant and appropriate as at 20 December 2016 when the financial statements were approved.

The accounting policies are reviewed ahead of each annual audit and discussed with the external auditors as appropriate. There are no changes in the joint venture’s activities which would require the accounting policies to be updated.

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Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Paradise Response

Your Management's processes for identifying and responding to risks of There are processes in place across the business to identify and reduce fraud. the risks of fraud. This includes the segregation of duties, approval levels and structure of financial reporting. No instances of fraud have been identified to date.

How those charged with governance monitor management's processes for The Board receive and review the External Auditor’s report and identifying and responding to risks of fraud. representation letter.

Fraud risks , including specific accounts or classes of transactions where Fraud risks are reviewed and considered annually, in particular in fraud risks have been identified. relation to business propositions or significant changes within the business. There were no significant audit or fraud risks noted in the paper presented to the Board by the External Auditor. The Board also signed the audit representation letter which contained several representations on the identification and prevention of fraud. The risk of material misstatement of the financial statements due to undetected fraud is low.

How management communicate to those charged with governance The Board receives and comments on various reports on commercial regarding business risks (including fraud). business risks, and considers the entity’s governance structure and processes at each meeting as appropriate.

Your Management's awareness of any events or changes in circumstances None identified to date.

that would cause an impairment of non-current assets.

Your Management's awareness or allegations of fraud, errors, or other None identified to date.

irregularities during the period.

Management's awareness of transactions, events and conditions (or None identified to date.

changes in these) that may give rise to recognition or disclosure of significant accounting estimates that require significant judgement.

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Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Paradise Response

How your organisation would raise BCC’s Audit Committee's awareness of Any instances of fraud or suspected fraud would be flagged at the regular Board meetings, which includes two representatives from BCC. fraud or suspected fraud.

How your organisation would communicate financial risk s to BCC e.g. PCLP is a joint venture between BCC and BriTel Fund Trustees Limited. losses. The Board is responsible for the governance of the joint venture and any financial risks would be communicated to the Board. Joint venture reporting is completed on a quarterly basis and presented to the Board where the financial performance of the joint venture is discussed including any key financial/operational issues, risks or losses.

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Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Performances Birmingham Response

Your Management's views on your control environment, the process of The control environment is strong at performances Birmingham Limited reviewing the effectiveness of the system of internal controls and the (PBL) given the nature of the business (largely cash driven) and the need to results of any review. pass on the majority of that cash to third parties (promoters, artists etc). There are a large number of controls and reconciliation processes in place in order to prevent problems occurring. In October 2016 PBL undertook a self-assessment of Internal Financial Controls recommended as good practise by the Charity Commission. The outcome of the review concluded that control was strong, but that minor actions could improve control still further. These actions are now being taken. Your Management's views on your risk assessment process as it related to The company’s financial performance is reported at every Board meeting financial reporting. and Finance & Scrutiny Group. Heads of Department (HoDs) receive monthly updates from the Head of Finance. Any unusual variances are reported and investigated immediately. Matters and events which occurred during the year that could influence None. your audit approach or BCC’s consolidated financial statements.

The appropriateness of accounting policies to be used in the period, and The accounting policies are agreed as appropriate by PBL’ external whether any changes in activities could require them to be updated. auditors. Currently there are no changes to activities to require them to be updated.

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Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Performances Birmingham Response

Your Management's processes for identifying and responding to risks of PBL treats fraud extremely seriously and although the risk of fraud is high, fraud. the control environment seeks to prevent incidences. The highest risk is Box Office and Catering where high volumes of cash are handled. The actual incidence of fraud is negligible. Where there have been instances of fraud in the past, these have been dealt with immediately and reported to the Board. How those charged with governance monitor management's processes for Any instances of fraud would be reported to the Board by the Head of identifying and responding to risks of fraud. Finance. Management ensure that there is the appropriate segregation of duties in place to ensure that the risk of fraud is minimised. Appropriate authorisation levels and counter-authorisation levels are set and enforced for all financial transactions and contracts. Fraud risks, including specific accounts or classes of transactions where Ticket sales and refunds: Processes and procedures are in place to ensure fraud risks have been identified. that all systems used in the transaction are reconciled. Any discrepancy is followed up and investigated immediately. Theft from bars and the shop: the risk of fraud is high but controls are in place to ensure the risk is minimised and defection high. There is a zero tolerance policy to fraud, which is considered a deterrent for what would be relatively low cash sums. How management communicate to those charged with governance Major business risks (including fraud) are reported in the Organisational regarding business risks (including fraud). Risk Register.

The Risk Register is reviewed regularly by HODs and Finance & Scrutiny Group on a monthly basis, and formally by the Board on an annual basis.

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Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Performances Birmingham Response

Your Management's awareness of any events or changes in circumstances None. that would cause an impairment of non-current assets.

Your Management's awareness or allegations of fraud, errors, or other None. irregularities during the period.

Management's awareness of transactions, events and conditions (or None. changes in these) that may give rise to recognition or disclosure of significant accounting estimates that require significant judgement.

How your organisation would raise BCC’s Audit Committee's awareness of PBL would raise any such issue with its B oard, where there are two BCC fraud or suspected fraud. representatives, and with its lead BCC officer; the Assistant Director, Culture and Visitor Economy.

How your organisation would communicate financial risks to BCC e.g. PBL’s financial performance is reported to BCC o n a regular basis. If further losses. communication is need, this is done through the appropriate BCC Strategic Director.

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Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Service Birmingham Response

Your Management's views on your control environment, the process of Service Birmingham Ltd Senior Management considers the internal control reviewing the effectiveness of the system of internal controls and the environment to be very strong and the overall inherent risk to be low. results of any review. Service Birmingham Ltd is a Joint Venture (JV) between BCC and Capita plc.

The JV Board forms part of the governance of the company and any financial risks or issues would be communicated to the board.

In addition to the above the company is subject to yearly external interim and final statutory audit (performed by KPMG) and no issues have been reported in relation to the overall control environment or system of internal controls.

The business is also subject to ISO20000 audit on a yearly basis. These audits have not identified any significant issues or concerns.

Further to the above, Service Birmingham Joint Venture Governance and Accounting was subject to Capita Group Internal Audit review during June 2015. The Control Environment conclusion was rated ‘Effective’ and ‘Risk Awareness and Responsiveness’ was rated as Appropriate. No findings were raised from the sample testing undertaken.

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Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Service Birmingham Response

Your Management's views on your risk assessment process as it related to The risk assessment process relating to financial reporting is considered to financial reporting. be strong and with appropriate levels of internal controls implemented across the business.

Service Birmingham Ltd financial reporting process is fully aligned with Capita’s financial reporting process, which is consistently applied across Capita Group. This process is subject to both external and internal audit.

The Service Birmingham Ltd financial governance and reporting process has been designed and aligned to the business areas to ensure appropriate operational accountability, monitoring of financial performance and identification and timely reporting of key risks and issues. Matters and events which occurred during the year that could influence None your audit approach or BCC’s consolidated financial statements.

The appropriateness of accounting policies to be used in the period, and Service Birmingham Ltd accounting policies are considered appropriate and whether any changes in activities could require them to be updated. are consistent with the prior financial year. There have been no changes in activities during the financial year which would necessitate a change or update.

The accounting policies are also reviewed as part of the yearly external audit by KPMG and no issues/request for changes has been reported for the current or previous financial years.

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Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Service Birmingham Response

Your Management's processes for identifying and responding to risks of Service Birmingham Ltd has put in place processes across the business to fraud. identify and reduce the risks of fraud. This includes but not limited to segregation of duties, approval levels, structure of financial reporting and operational MI.

The Service Birmingham Risk Register is formally reviewed and updated by Senior Management Team on a quarterly basis. The Risk Register is also formally reviewed with Capita Group Risk.

The internal Strategy and Policy team and Capita Group Risk are always informed and engaged at an early stage in case of any identified risks of fraud or specific cases.

The financial processes and procedures in place also forms part of the ISO20000 audit.

In addition to the above all Service Birmingham employees complete mandatory Fraud and Risk Awareness online course on a yearly basis. How those charged with governance monitor management's processes for The Strategy and Policy team continuously assess the business risks and identifying and responding to risks of fraud. report to the Service Birmingham Ltd Senior Management team any concerns or risks identified.

The processes and procedures in place also forms part of the ISO 20000 audit.

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Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Service Birmingham Response

Fraud risks , including specific accounts or classes of transactions where Fraud risks are continuously reviewed and considered and in particular in fraud risks have been identified. relation to business propositions or significant changes within the business.

Capita Group Risk are always engaged and consulted at an early stage if needed to ensure the overall risk exposure to Service Birmingham Ltd is managed and limited. How management communicate to those charged with governance The business risks are identified and communicated by the Service regarding business risks (including fraud). Birmingham Ltd Senior Management team to the wider business and in particular the direct reports for each business area.

All material transactions or business decisions are always reviewed and approved by the Senior Management team.

In addition to the above all Service Birmingham employees complete mandatory Fraud and Risk Awareness courses on a yearly basis and ISO20000 training for relevant individuals.

Your Management's awareness of an y events or changes in circumstances Service Birmingham Ltd Senior Management is not aware of any events or that would cause an impairment of non-current assets. changes in circumstances which would cause an impairment of non-current assets.

The proportion of non-current assets to total assets on the Service Birmingham Ltd balance sheet is very low (c. 3%).

Your Management's awareness or allegations of fraud, errors, or other Service Birmingham Ltd Senior Management is no t aware of any such irregularities during the period. material circumstances/events during the period.

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Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Service Birmingham Response

Management's awareness of transactions, events and conditions (or Service Birmingham Ltd Senior Management is not aware of any such changes in these) that may give rise to recognition or disclosure of transactions, event or conditions relating to the current financial year. significant accounting estimates that require significant judgement. Capita Group financial technical experts are engaged in relation to any events/transactions which are of a non-standard nature and could have a significant accounting impact or require significant judgement. This ensures that the appropriate accounting treatment and financial consequences are completely understood.

It is worth noting that in January 2017, the Revenues Collection Service has ceased operation within the Service Birmingham joint venture. A Deed of Variation is in place to cover this transfer of services back to the Council.

How your org anisation would raise BCC’s Audit Committee's awareness of Any significant fraud issues or suspected fraud would be communicated to fraud or suspected fraud. BCC through the Joint Venture Board (see below) or the monthly Partnership meetings (BTSP) which are attended by both Service Birmingham Ltd and BCC key Senior Management.

BCC Audit would also be notified of any instances of fraud or suspected fraud.

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Birmingham City Council 2016-17 Informing the Audit Risk Assessment Group Accounts Appendix 1 Question Service Birmingham Response

How your organisation would communicate financial risks to BCC e.g. Service Birmingham Ltd is a Joint Venture (JV) between BCC and Capita plc. losses. The JV Board forms part of the governance of the company and any financial risks or issues would be communicated to the Board.

The Service Birmingham Monthly Operating Board (MOB) financial reporting cycle perform a review of financial assets, liabilities and profit and loss performance.

JV reporting is completed and presented to the JV Board members on a bi- monthly basis where the financial performance of the JV is discussed incl. any key financial/operational issues, risks or losses.

Page 80 of 90 Page 34 of 34

BIRMINGHAM CITY COUNCIL

PUBLIC

Report to: CABINET COMMITTEE –GROUP COMPANY GOVERNANCE Report of: Strategic Director – Finance & Legal Date of Decision: 8 March 2017 SUBJECT: MOVEMENTS IN THE LIST OF GROUP CO MPANIES

Key Decision: No Relevant Forward Plan Ref: If not in the Forward Plan: Chief Executive approved (please "X" box) O&S Chairman approved Relevant Cabinet Member (s) or Councillor Ian Ward – Deputy Leader Relevant Executive Member: Relevant O&S Chairman: Councillor Mohammed Aikhlaq, Corporate Resources and Governance. Wards affected: City Wide

1. Purpose of report:

1.1 The report informs the Group Company Governance Committee of changes in composition of the Group

2. Decision(s) recommended: That the Committee:-

2.1 Notes the changes

2.2 Considers the impact of the changes on the forward plan of the Committee

Lead Contact Officer(s): Martin Stevens, Head of City Finance, Financial Accounts

Telephone No: 0121 303 4667 E-mail address: [email protected]

Lead Contact Officer(s): Connie Price

Telephone No: 0121 303 3496 E-mail address: [email protected]

Page 81 of 90 3. Consultation

3.1 Internal Officers in Finance & Legal have been consulted on the composition of the attached list.

3.2 External None.

4. Compliance Issues :

4.1 Are the recommended decisions consistent with the Council’s policies, plans and strategies?

The purpose of the Cabinet Committee - Group Company Governance encompasses a role in ensuring that the business plans of individual companies align to the council’s policy objectives.

4.2 Financial Implications (Will decisions be carried out within existing finance and Resources?)

The Committee will have a role in reviewing the financial position of the Council’s subsidiaries and associates and evaluating the financial risks and opportunities of their business plans. There are no financial implications associated with this report.

4.3 Legal Implications

Section V of the Local Part V, Local Government and Housing Act 1989 enables the Council to trade or deliver certain of its functions through a company. Sections 93 & 95 of the Local Government Act 2003, empowers the Council to trade function-related activities through a wholly owned company.

The Cabinet Committee will operate within the provisions of the Local Government Act 2000, which gives the Executive the power to appoint committees for the exercise of defined responsibilities and functions and in accordance with Article 5(d) of the City Council’s Constitution .

4.4 Public Sector Equality Duty (see separate guidance note)

None

Page 82 of 90

5. Relevant background/chronology of key events:

5.1 Cabinet approved the establishment of an Executive Committee to oversee Group Company Governance at its meeting on 26 September 2016

5.2 Attached to the report was a list of companies in which the Council has a financial interest, split between subsidiary and associated companies. This list was updated and presented to this committee on 6 November 2016 and 12 January 2017.

5.3 Additions: Vision Technologies Limited has been added to the list of minor interests.

5.4 Other Changes The company list in Appendix 1 anticipates that InReach will move into the category of subsidiaries and consolidated into the group, as the company has become increasingly operational through the year and its assets are now likely to be material to the Council.

Socially Accepted Games Limited (SOSHI), an investment through Finance Birmingham, has been removed from the list due to clarifying its status as dissolved.

6. Evaluation of alternative option(s):

6.1 Not applicable

7. Reasons for Decision(s):

7.1 To note the changes to the list of companies in which the city council has a financial interest

Signatures Date

Acting Chief Financial Officer .. .

Page 83 of 90 List of Background Documents used to compile this Report:

None

List of Appendices accompanying this Report (if any): 1. Companies in which Birmingham City Council has a financial interest 2. 3. 4. 5.

Page 84 of 90 Appendix 1

Companies in which Birmingham City Council has a Financial Interest

Subsidiaries - Consolidated into the Group

Company Name Type of Entity

Acivico Ltd Company - Limited by shares

Acivico (Building Consultancy) Ltd

Acivico (Design, Construction & Facilities Management) Ltd

Birmingham Museums Trust Company - Limited by guarantee (Charity)

Birmingham Museums Trading Ltd

Thinktank Trust

Innovation Birmingham Ltd Company - Limited by guarantee

Birmingham Science Park Aston Ltd

Birmingham Technology (Property) Ltd

Birmingham Technology (Property One) Ltd

Birmingham Technology Venture Capital Ltd

InReach (Birmingham ) Limited Company - Limited by shares

National Exhibition Centre Pension Trustee Company Company - Limited by guarantee

PETPS (Birmingham) Ltd

NEC Developments Plc Company - Limited by shares

Performances (Birmingham) Ltd Company - Limited by guarantee

Performances Birmingham (Enterprises) Ltd

Page 85 of 90 Subsidiaries - non consolidated on ground of materiality

Company Name Type of Entity

Birmingham Business Support Centre Ltd Company - Limited by guarantee

Birmingham Venture Capital Ltd Company – Limited by shares

Birmingham Charities Ltd Company - Limited by guarantee Charity

Birmingham Curzon Regeneration Company Ltd Company - Limited by shares

Birmingham Endeavour Ltd Company - Limited by shares

Birmingham Wheels Ltd Company - Limited by guarantee Charity

Creative Advantage West Midlands Ltd Company - Limited by shares

Finance Birmingham Limited Company - Limited by shares

Frontier Developments Holdings Ltd Company - Limited by shares Not yet trading

Frontier Development Capital Ltd Company Limited by Shares (49% holding)

Gallery 37 Foundation Company - Limited by guarantee Charity

Greater Bham & West Midlands Brussels Office Other Subsidiary

Forward Homes (Birmingham) Ltd Company - Limited by shares

Page 86 of 90 Associates - Consolidated into Group

Company Name Type of Entity

Birmingham Airport Holdings Ltd Company - Limited by shares

BHX (Scotland) Ltd - subsidiary

BHX Fire and Rescue Limited - subsidiary

BHX Limited Partnership - subsidiary

Birmingham Airport Limited - subsidiary

Birmingham Airport Air Traffic Limited - subsidiary

Birmingham Airport Developments Ltd -subsidiary

Birmingham Airport Finance Plc - subsidiary

Birmingham Airport Operations Ltd - subsidiary

Birmingham Airport Pension Trustees Ltd - subsidiary

Birmingham Airport Services Ltd - subsidiary

Euro-hub (Birmingham) Ltd - subsidiary

First Castle Developments Ltd - subsidiary

Paradise Circus General Partner Limited Partnership - Limited Partnership

Paradise Circus Nominee One Ltd

Paradise Circus Nominee Two Ltd

Paradise Circus Management Limited

Paradise Circus Limited Partnership

Service Birmingham Ltd Company - Limited by shares

Page 87 of 90 Associates, Investments and Minor Interests

(* denotes investment through Finance Birmingham)

Company Name Type of Entity

Ascension Ventures (Holdings) Ltd* Company - Limited by shares

Ascension Ventures Limited*

Ascarii Ltd* Company – Limited by shares

Aston Eyetech Limited* Company - Limited by shares

Auctus Management Group Ltd* Company - Limited by shares

Birmingham Municipal Housing Ltd Company – Limited by shares

Big Button Media Ltd* Company - Limited by shares

Birmingham LEP Company Company - Limited by shares

Birmingham Schools SPC Holdings Phase 1A Limited

Birmingham Schools SPC Phase 1A Limited

Birmingham Schools SPC Holdings Phase 1B Limited

Birmingham Schools SPC Phase 1B Limited

Birmingham Research Park Ltd

Birmingham Wholesale Market Company Ltd Company – Limited by shares

Bridge Street Management Ltd Company - Limited by shares

Central Technology Belt Company - Limited by guarantee

Concurrent Thinking* Company - Limited by shares (In administration)

Crowd Technologies* Company - Limited by shares

Droplet Online* Company - Limited by shares

Finds You Ltd* Company - Limited by shares

Format zone Company - Limited by shares

Foodient/Whisk * Company - Limited by shares

GBS Finance Limited Company - Limited by guarantee

Goodfish Ltd* Company – Limited by shares

Greater Bham & Solihull Local Enterprise Partnership Ltd Dormant

Icknield Port Loop LLP Page Company 88 of - Limited 90 Liability Partnership Inceptum Developments Ltd* Company - Limited by shares

Info-Ctrl Limited* Company - Limited by shares

Learning Labs* Company - Limited by shares

UK Municipal Bonds Agency Company - Limited by shares

Marketing Birmingham Company - Limited by guarantee

Midlands Industrial Association Ltd Industrial & Provident Society

Millenium Point Trust Company - Limited by guarantee

Millenium Point Property Ltd

Mutt Motorcycles Ltd* Company - Limited by shares

Natural HR Ltd* Company - Limited by shares

Obillex Limited* Company - Limited by shares

Owned It* Company - Limited by shares

Pure Mobile* Company - Limited by shares

Skips Crosswords (Holdings) Ltd* Company - Limited by shares

Skips Educational Ltd*

Stockfield Community Association Company - Limited by guarantee

Stockfield Community Association (Subsidiary) Ltd

Veolia Environmental Services Birmingham Ltd Company - Limited by shares

Vision Technologies Limited* Company - Limited by shares

Opinsta Ltd (Closed Questions)* Company - Limited by shares

Wetakestock Ltd* Company - Limited by shares

West Midlands Rail Company - Limited by guarantee

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