National Heritage Memorial Fund Annual Report and Accounts for the year ended 31 March 2020 HC 543 SG/2020/93 This page has been intentionally left blank. National Heritage Memorial Fund Annual Report and Accounts for the year ended 31 March 2020 Report presented to Parliament pursuant to Section 7(1) of the National Heritage Act 1980, and accounts presented to Parliament pursuant to Section 7(3) of the National Heritage Act 1980 Ordered by the House of Commons to be printed on 21 July 2020 Laid before the Scottish Parliament by the Scottish Minister on 21 July 2020 Laid before the Northern Ireland Assembly on 21 July 2020 Laid before the Welsh Parliament on 29 September 2020 HC 543 SG/2020/93 © National Heritage Memorial Fund copyright 2020 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open- government-licence/version/3. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. This publication is available at www.gov.uk/official-documents. Any enquiries regarding this publication should be sent to us at National Heritage Memorial Fund Mezzanine Floor International House 1 St Katharine’s Way London E1W 1UN ISBN 978-1-5286-2052-9 CCS0620776556 07/20 Printed on paper containing 75% recycled fibre content minimum Printed in the UK by the APS Group on behalf of the Controller of Her Majesty’s Stationery Office Contents 2 Report of the Trustees and Accounting Officer 2 Performance report 11 Accountability report 32 The financial statements 32 Statement of comprehensive net expenditure 33 Statement of changes in taxpayers’ equity 34 Statement of financial position 35 Statement of cash flows 35 Reconciliation of net cash flow to movement in net funds 36 Notes to the accounts 46 The Trade Union (Facility Time Publication Requirements) Regulations 2017 47 Disclosure of investments 48 Chair, Trustees and management National Heritage Memorial Fund Annual Report and Accounts 2019–20 1 Report of the Trustees and Accounting Officer Performance report his contribution to be brought into wider public knowledge Overview • The Martin brothers’ Crab – another export- Purpose – the purpose of the performance report is stopped case, where our grant secured this to provide information on the Board of Trustees, the characterful example of Martinware to be the organisation’s main objectives and strategies and the star of the collection at the Box in Plymouth principal risks it faces. The overview section gives the user information to understand the Board, its purpose, As we reported last year we have taken additional the key risks to the achievement of its objectives and income of around £800,000 per annum from our how it has performed during the year. The analysis endowment fund to supplement our grant-in-aid section is where the Board reports on its most income to provide further funding for these important performance measures, including analysis exceptional pieces of heritage. That has worked using financial information from the financial statements. effectively during the year and where practicable we will continue with that in future years. In 2020–21 Our performance in 2019–20: we plan to look at the sustainability and environmental A statement from the Chief Executive responsibility of our investment portfolio as part of 2019–20 was another important year for the work our response to the climate emergency. of the National Heritage Memorial Fund (NHMF or the Fund). The COVID-19 crisis came late in the year and we managed the risk effectively with our response through The ongoing work of our team in providing grants The National Lottery Heritage Fund (see page 3). has helped to save some remarkable items of heritage In the case of the National Heritage Memorial Fund across the nation and widened public access to these we saw the demand for grants to the Fund reduce wonderful items of heritage. The range and diversity as grantees focused on lockdown arrangements and of our grants in the year demonstrates the unique the art markets and Export Reviewing Committee value that NHMF brings to the nation’s heritage. work paused. 2020–21 will also see the 40th These included: anniversary of the Memorial Fund and we will be marking the achievements of the Fund over those • The Nason Collection – an exceptional four decades. The Board feel that this Fund, formed collection of Dickens’ material including letters, to protect our most outstanding heritage at risk of manuscripts and playscripts, now accessible to loss as a memorial to those who have given their lives the UK public at the Dickens’ House Museum for the UK, has a role to play in supporting and • Orazio Gentileschi’s The Finding of Moses saving our outstanding heritage post-COVID. We are – an outstanding Italian Baroque masterpiece; working on those plans with stakeholders and hope a royal commission for the Queen’s House in to announce progress in the late summer. Greenwich, secured for the National Gallery Let me take this opportunity to thank our NHMF staff. • Derek Jarman’s Prospect Cottage – the iconic They work with great integrity and professionalism, cottage and garden, hugely influential to are truly committed to the work of NHMF and contemporary design, culture and art, provide an exceptional service to the nation’s heritage. safeguarded for the Art Fund, with public I am also very grateful for the continued advice and engagement delivered through Creative support of the Advisory Panel. Folkestone’s management From December 2019 to 30 April 2020, I have been • Stonehenge landscape acquisition – safeguarding absent from the Fund as a result of serious illness. It is 168 hectares of the Stonehenge landscape, a tribute to hard work of the Executive Team and the within the World Heritage Site, ensuring the professionalism of its staff that the organisation operated protection of the internationally important during my absence without any diminution in its archaeology at risk of loss due to arable support to the sector. cultivation. The acquisition is enabling the Finally, I should like to pay tribute to Sir Peter Luff National Trust to deliver chalk grassland who retired as our Chair in December 2019. We will restoration and open public access for the first miss his enthusiasm for heritage, inspiring leadership time to this part of the Stonehenge landscape and gentle good humour. We are very grateful to • Sir Charles Lyell’s notebooks – acquisition of the René Olivieri who has stepped in more than capably notebooks of 19th century scientist and author as interim Chair pending a permanent appointment. Charles Lyell. Described as the single most Our purpose and activities important figure in the development of Earth NHMF is vested in and administered by a body Sciences in Britain, securing his export-stopped corporate known as the Trustees of the National notebooks for Edinburgh University will enable National Heritage Memorial Fund Annual Report and Accounts 2019–20 2 Heritage Memorial Fund, consisting of a Chair and assistance as a fund of last resort towards the not more than 14 other members appointed by the acquisition, preservation and maintenance of heritage Prime Minister. The Fund was set up on 1 April 1980 that is threatened by destruction or loss. by the National Heritage Act 1980 (‘the 1980 Act’) in succession to the National Land Fund as a memorial Our key issues and risks to those who have given their lives for the UK. It Our principal risk last year was the COVID-19 crisis, receives an annual grant-in-aid from the government although this materialised late within the year the to allow it to make grants. The powers of the impact was significant and of course the ramifications trustees and their responsibilities were extended by have continued into the new financial year. the provisions of the National Lottery etc. Act 1993 Our initial risk response was to close all of our (‘the 1993 Act’), the National Heritage Act 1997 offices, ask all our staff to work from home in a (‘the 1997 Act’) and the National Lottery Act 1998. new virtual environment and invoke our Business Under the 1993 Act, trustees also became responsible Continuity Plan. We were able to successfully for the distribution of the proportion of National implement all of these measures within 48 hours Lottery proceeds allocated to heritage. Trustees of of the UK Government’s requirements and we have NHMF have to prepare separate accounts for the since then, and throughout the crisis, been able to receipt and allocation of grant-in-aid and for their continue to deliver all of our services to all of our operation as a distributor of National Lottery money. customers with no disruption. Trustees have chosen to refer to the funds as NHMF Within the first three weeks of the crisis we for sums allocated under the provisions of the 1980 commissioned a survey across the sector to identify Act and The National Lottery Heritage Fund for key issues, financial and operating risks to help inform receipts under the provisions of the 1993 Act. our immediate response. Within that time we were Under sections 3 and 3a of the 1980 Act, trustees also able to assemble an immediate £50million may make grants and loans out of NHMF for the emergency funding package for grantees that had purpose of acquiring, maintaining or preserving: received funding derived from The National Lottery. Our policy and strategy teams were also able to i) any land, building or structure which in the garner insight and data across the different elements opinion of the trustees is of outstanding scenic, of the sector and across the UK to refine our historic, aesthetic, architectural, archaeological response and targeted effort.