The Museums, Libraries and Archives Council Annual Report and Financial Statements For the year ended 31 March 2011

The Museums, Libraries and

Archives Council

(a company limited by guarantee)

Annual Report and Financial Statements

For the year ended 31 March 2011

HC 1401 £15.50

Company Number 03888251

Registered Charity Number 1079666

The Museums, Libraries and

Archives Council

(a company limited by guarantee)

Annual Report and Financial Statements

For the year ended 31 March 2011

Presented to Parliament pursuant to Article 6(2)(b) of The Government Resources and

Accounts Act 2000 (Audit of Non-profit-making Companies) Order 2009 - SI 2009 No. 476

Ordered by the House of Commons to be printed 18 July 2011

HC 1401 LONDON: The Stationery Office £15.50

The Museums, Libraries and Archives Council

Grosvenor House

14 Bennetts Hill

Birmingham

B2 5RS

The MLA is the government’s agency for developing and improving England’s museums, libraries

and archives. We enable them to provide more and more people with high quality experiences that

enrich their lives.

Leading strategically, the Museums, Libraries and Archives Council promotes best practice in

museums, libraries and archives, to inspire innovative, integrated and sustainable services for all.

The text of this document (this excludes, where present, the Royal Arms and all departmental and

agency logos) may be reproduced free of charge in any format or medium providing that it is

reproduced accurately and not in a misleading context

The material must be acknowledged as Museums, Libraries and Archives Council copyright and the

document title specified. Where third party material has been identified, permission from the

respective copyright holder must be sought.

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Or the MLA’s website at www.mla.gov.uk

ISBN: 9780102974461

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Contents

Annual Report of the Board of Trustees

Introduction

Review of the year

Structure and Governance

Remuneration Report

Financial Review of the Year

Statement of Trustees’ and Acting Chief Executive’s responsibilities

Statement on Internal Control

The Certificate and Report of the Comptroller and Auditor General to

the Members of The Museums, Libraries and Archives Council

Financial Statements

The Museums, Libraries and Archives Council

ANNUAL REPORT OF THE BOARD OF TRUSTEES

INTRODUCTION

We are pleased to introduce the Museums, Libraries and Archives Council’s Annual Report and Financial

Statements for 2010/2011. A year of unprecedented and unwelcome change for the MLA.

On 26 July 2010 the Secretary of State for Culture, Olympics, Media & Sport announced that as part of the

review of public bodies, the MLA was to be wound up and its functions transferred to other organisations by

2012. In the months that followed, DCMS held discussions with a number of sector bodies, including the

MLA and Arts Council England (ACE), to secure the best possible arrangements for continuing essential

functions and maintaining future strategic leadership for the museums, libraries and archives sectors. In

November 2010, the Minister for Culture announced that responsibility for regional museums, libraries and

cultural property would transfer to Arts Council England (ACE) following the abolition of the MLA. This was

subsequently endorsed by Arts Council England’s National Council in December 2010. In April 2011,

DCMS announced that support and leadership for the UK’s archives sector would transfer to The National

Archives (TNA) from April 2012.

Through many uncertain months, the MLA has continued to deliver its diverse range of responsibilities,

while also planning for the transfer of key functions and ultimately its closure. In December 2010, MLA

commenced formal consultations with staff, all of whom were at risk of redundancy. A detailed plan was

agreed with the ACE for the redeployment of some MLA staff and consultations with staff on this began in

March 2011. Since that date we have made good progress with this plan and as a consequence we

currently expect around one third of MLA’s staff to transfer to ACE in October 2011 with the remainder

being made redundant in 2011 or 2012.

The decision to wind up the MLA came as a great disappointment to the MLA Board and its staff. In July

2010 we had just completed our transformation programme and created an organisation with greatly

reduced operating costs, increased effectiveness and the expertise needed to help our sectors’ turn their

ambitions into reality. However, we were heartened when the Secretary of State wrote to us explaining that

whilst it hard been a hard decision to make, it was an important part of the Government’s drive to cut costs

and increase transparency, accountability and efficiency and that it was “……..no reflection on the

professionalism and ability of your staff and management who have been outstanding”.

You will see from this report that even in such difficult and uncertain times MLA has continued to be highly

effective and attained a wide range of notable achievements. Our staff have indeed been outstanding. We

extend our most sincere gratitude to all members of the MLA staff whose exemplary professionalism and

commitment have been so crucial to all that we have achieved. Together with the volunteers on the MLA

Board they have ensured that, for another year at least, MLA has made a real difference.

Paul Lander Andrew Motion

Accounting Officer and Chair of the Board of Trustees

Acting Chief Executive

The Museums, Libraries and Archives Council

REVIEW OF THE YEAR

The MLA is the Government’s agency for developing and improving England’s museums, libraries and

archives. We believe that such development and improvement will enable more and more people to enjoy

high quality experiences that will enrich their lives. We pursue this vision by providing strategic leadership

that seeks to promote best practice in museums, libraries and archives to inspire integrated, innovative and

sustainable services for all.

Although 2010/11 was our last full year of operation we continued to invest in a wide range of activities

which ensured that limited resources were effectively targeted so as to support the improvement agenda.

Working across Government, and with 150 local authorities, 3000 public libraries, 300 archives and 1200

museums, we have underpinned the development of targeted services for communities.

By pursuing our four strategic priorities, namely: continuous improvement; learning and skills; sustainable

communities; and effective leadership and strong advocacy, we believe that we have successfully

empowered museums, libraries and archives to make measurable and substantial improvements to the

quality of life of local people.

Key achievements for each area of work during the period under review are outlined below.

Sharper Investment for Changing Times

Our work was carried out against the backdrop of the fallout from the difficult economic climate and under

the shadow of the severe spending cuts that were expected across the public sector. The MLA responded

proactively to the challenges posed by this political climate by publishing Sharper Investment for Changing

Times. This was a prospectus setting out how the museums, libraries and archives sector, and local

government in particular, might adapt positively to the difficult times ahead. By working extensively at a

grass roots level, MLA regional staff were able to help local authorities and stakeholders grapple with

balancing considerable budgetary restraints with the duty to deliver a comprehensive and efficient library

service. Under the spotlight of media interest, the MLA publicly emphasised that responsibility for shaping

local library services rested squarely with local elected government. By embarking on a period of intensive

engagement with councils to offer best practice advice and support, the MLA sought to ensure that councils

fulfilled their responsibility to consult with local people so that future provision was based upon a

comprehensive analysis of local needs and designed to contribute to wider local authority strategies.

Renaissance – museums for changing lives

This was the second year that saw regional Hub museums successfully implement the business plans that

MLA had endorsed. As a result, the Renaissance programme was able to demonstrate its huge value to

regional museums and to the people who use them. Visitor numbers and overall use continued to grow

while evaluation of community engagement and sustainability projects showed how the programme

contributed to the overall capacities and capabilities of the sector. At a national level, Renaissance once

again lent support to the very successful Museums at Night national campaign as well as facilitating the

work of the Subject Specialist Networks of professionals and Designated Collections. Amongst other

innovative investments, Renaissance funding supported the Our Pictures project which is now being led by

the BBC. This project is working towards making all of the UK's 200,000 publicly owned oil paintings

available on-line. Renaissance funding also provided support for a project initiated by the Open University

that aims to create podcasts of some of its teaching seminars at regional art galleries.

This year also witnessed the new vision for Renaissance translated into an operational model. This vision,

which was born out of an independent review (chaired by Professor Sara Selwood in 2009), coupled with

external consultation and MLA expert input, has culminated in the creation of a completely new

Renaissance structure. As a result, the current regional hub architecture will be dismantled and replaced

with an innovative new way of delivering funding. This model will involve identifying a small number of

major institutions with large audiences and important collections that will be selected for ‘core’ museum

status on the grounds that they have demonstrated their ambition to embody true excellence, Other

smaller, regional museums will also have the opportunity to receive Renaissance money though the

‘challenge funding’ element of this new model.

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The MLA’s new Renaissance programme was publicly endorsed by the Government at the Museums

Association conference in October 2010 when Culture Minister, Ed Vaizey, outlined the MLA vision for the

first time. The fact that the Government recognises the value of the Renaissance programme was made

manifest by the CSR settlement. Although reduced by 15% in real terms (in line with funding cuts for all

national museums), Renaissance funding will be provided for at least the next four years which covers the

period of the current funding settlement.

Responsibility for the Renaissance programme will start moving from the MLA to Arts Council England

(ACE) in October 2011 and its new approach, based on the model outlined above, will be introduced in April

2012.

The funding settlement was not able to protect all the programmes outside of Renaissance and as a result

of this, DCMS, ACE and the MLA made a decision to transfer some of the priority programmes into

Renaissance from 2011/12 onwards. These programmes include Accreditation, Designation, national

security advice, the V&A Purchase Grant fund and the PRISM fund. Although this will have some impact on

the resources available for regional museums, the MLA believes that providing such funding under the

Renaissance banner will promote a more holistic approach to regional museum improvement. The current

arrangement for The Portable Antiquities Scheme will continue to be funded primarily by Renaissance

whilst being directly managed by the British Museum.

Future Libraries Programme (FLP)

It was in response to the economic challenges faced by local government across the country that the Future

Libraries Programme was announced by Ed Vaizey in the summer of 2010. Managed jointly between MLA

and the Local Government Group (LGG), this initiative invited local councils, either individually or in

collaboration, to apply to participate in a transformation programme designed to support innovation and

ensure that libraries are well equipped to deliver their services into the 21st century. In Phase One, ten

change projects, involving 36 councils, were selected on the basis they had demonstrated a strong track

record in delivery and shared learning, and were seeking to deliver imaginative solutions to the many

challenges facing the sector. The projects have proved to be an excellent test bed for developing and

assessing innovative approaches with several now progressing to implementation.

The solutions fell into four categories, namely: sharing services across council boundaries; reviewing the

location and distribution of service points; providing new models of delivery; and divesting library assets into

community management and ownership. Lessons learned from these activities have been disseminated

widely across local government and the library sector by way of seminars and an online community of

practice, as well as publications on community libraries and digital opportunities and, of course, the reports

of the change projects themselves. As a result, FLP has established itself as a major programme which

has located the library sector at the forefront of public service reform.

Supporting best practice and improvement across the country

Much of the MLA’s improvement and best practice work is done in the field, through its small regional teams

which are divided into four geographical Areas: North (North West, North East and Yorkshire); West (West

Midlands and South West); East (East Midlands, East of England, and South East) and London. As well as

ensuring accountability for the successful delivery of Renaissance investment regionally, the teams spend a

significant proportion of their time engaging with local government and other stakeholders to ensure that an

integrated and joined-up approach is adopted when thinking about service delivery.

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Team East

As the impact of budget cuts within local authorities made itself evident, Team East experienced increased

demand for its expertise and support. In responding to these demands, the team sought to achieve a

balance in its work. On the one hand it offered support for the review of structures and governance in order

to mitigate financial pressures, whilst on the other it continued to work with organisations that expressed an

appetite to innovate and develop excellent services.

In addition to the specific interventions described below, the team provided extensive support for the 14

Renaissance partners across three regional Hubs as well as to the Strategic Commissioning programmes

and other core activities, such as the Designation Development Fund, Museum Development, regional

sector representative groups and regional cultural partnerships.

The Team conducted peer reviews of museums services at Maidstone and Canterbury, and, for the first

time, with an archive service at Bedford. It contributed expertise via the Cambridgeshire Review

Programme Board, and supported Colchester and Ipswich with the museums element of their wider-ranging

fundamental service review. Staff time, rather than funding, has been used to good effect to support

Peterborough and Southend in examining aspects of their museums services. In Leicestershire the Team’s

input ensured that a complex, high profile review of Libraries, Heritage and Arts services resulted in a report

that enabled the council to make sound decisions, while in Derby it provided post-peer review support that

is leading to an exciting new vision for the museum service. Team East also worked closely with the area’s

three Future Libraries Programme projects, offering dedicated support, coordinating access to consultants

and collating feedback and evidence of good practice.

In terms of development and innovation, MLA funded The Derbyshire Culture Theme Partnership for a

project to identify outcomes that tangibly influenced the Culture and Sport Outcomes Framework. In

Brighton the Team East worked with the library team to introduce and apply Systems Thinking to service

development, and with sector and school delivery partners in SEWS and Hampshire to embed museums in

Sussex University’s Widening Participation programme.

By bringing together representatives from Southend’s Further and Higher Education services with public

library partners, Team East was able to promote a collaborative way of shaping the content strategy for

Southend’s proposed shared-service central library. This involved devising a workshop for the area’s

museum leaders to develop creative approaches to future planning.

The area’s cultural improvement networks were supported and advised to ensure maximum benefit for the

sector which assisted them in gaining an additional £150k for the East of England’s library SPINE project.

Portsmouth’s Heritage Lottery Fund bid was supplemented to ensure that libraries played a significant role

in the town’s Dickens festival and MLA offered a small grant (£5k) to help Medway develop its community

hub concept.

In Milton Keynes and the South Midlands, the team worked with Milton Keynes, Corby and Luton to develop

and pilot a framework to embed young people in the plan for culture through a pan-regional youth

engagement framework.

Team East also used its engagement with networks and individual institutions to alert them to emerging

opportunities and issues. A commitment to systematic intelligence gathering meant that the Team was able

to identify potential problems and risks so that support could be provided and discussions initiated at the

earliest possible opportunity. Indeed, over the year MLA saw a steady increase in such pro-active

approaches, particularly from library services.

Team West

Requests for MLA engagement reached a peak in the West during 2010/2011 and, whilst the fundamental

driver for this was the reduction in public sector funding, it also reflected the strength of the relationships

built up by the team in recent times and the quality of the MLA tools, products and best practice that have

been developed.

The Museums, Libraries and Archives Council

In view of this high level of demand, the team were forced to make some difficult decisions about how best

to target intervention. In a number of cases, the Team had to prioritise those local authorities and

organisations facing fundamental change caused by the reduction in public sector finance. Nevertheless,

the team was also able to undertake a range of projects with those stakeholders and parts of the sector

looking to innovate and develop best practice.

In terms of such Innovation and Best Practice, Team West worked with the Society of Chief Librarians

(SCL) and local authority partnerships in both the West Midlands and South West regions as well as with

clusters of local authority groups to explore the possibilities of creating more efficient and effective library

service delivery through joint working. Reports in these two regions are now being presented to the council

Chief Executives and politicians and are being utilised in a number of sub regions.

Team West also worked with such partners as South West Screen, Audiences Central and the University of

Birmingham to encourage sector innovation within the context of the digital agenda, audience development

and knowledge transfer respectively. The ground breaking New Ways of Curating programme, funded by,

and in close partnership with the ACE, continues to deliver a series of projects encouraging the arts sector

to work in tandem with museums and archives.

By conducting Peer Reviews on Library Services in Herefordshire and Bristol, Team West has made a

positive contribution to service improvement. Similarly, in Swindon, at the request of the Borough Council,

it has engaged with other agency partners to deliver a successful Culture and Sport Strategic Dialogue.

Team West also worked effectively with local authorities where radical changes to the museums sector

were being considered. In particular, it continued to support the efforts in Worcestershire to rationalise the

delivery of museums services in the county. It also initiated a similar process in Staffordshire. In the South

West, the Team facilitated the successful transfer of the North Somerset Museum to Weston Super Mare

Town Council. In so doing, the Museum was saved from closure.

In addition, the Team engaged with County Councils such as Warwickshire, Gloucestershire, Somerset and

Dorset to address significant budget challenges and service re-design. The team also engaged with a large

number of other authorities, including Swindon and Stoke, to support the development of new library

strategies, as well as contributing to member reviews and scrutiny processes in Walsall, Birmingham and

Cornwall councils.

Building on the professional respect it has generated in recent times, Team West utilised its extensive

range of relationships to ensure that the MLA has been effectively represented at the right level across a

wide range of professional networks. By participating in Culture Boards at Birmingham, Cornwall,

Plymouth, Swindon and Taunton, the Team was able to maintain an up-to-date and thorough understanding

of key local and regional sectoral challenges.

With the announcement of the closure of the MLA, Team West worked intensively with the main sector

groupings to ensure their sustainability during the transition period and beyond. With the aid of financial

support, both the West Midlands Policy Forum and the Archives Forum were able to embark on programme

of strategic development, which will increase their capacity to respond to the changing political and

economic context.

Team West was also called upon to assist a number of independent organisations during the course of

2010/2011, again, often as a result of the pressure on public finances. Amongst others, the Team provided

valuable support to the Royal Cornwall Museum, National Maritime Museum Cornwall, British Empire and

Commonwealth Museum and the Wedgwood Museum.

The Museums, Libraries and Archives Council

Team North

During 2010/11 Team North worked with the 50 top tier authorities in Northern England as well as with a

wide range of delivery partners and cultural agencies. In so doing, Team North successfully delivered over

60 projects and interventions,

created opportunities for the sector, lead the development of good practice, brokered partnerships and

acted as a catalyst of change to ensure that the sector adapted and retained its relevance. This was in

addition to managing the Renaissance and Strategic Commissioning programmes

Team North also promoted debate on shared services, supported studies including the RIEP-funded study

across NW libraries, Yorkshire & Humberside mobile services, Tees Valley museums and Tyne and Wear

libraries. It facilitated and provided a ‘critical friend’ role to the three diverse Future Library Programme

projects across the area, thereby shaping outcomes, facilitating new delivery models and promoting the

dissemination of learning. Additionally, Team North supported service reviews, challenged ways of

working, championed services with both partners and stakeholders and developed best practice in

stakeholder consultation.

With regard to horizon scanning and maximising opportunities, Team North used its expertise to broker

opportunities and make partners in the sector aware of emerging developments. Armed with this

intelligence, museums, libraries and archives were well positioned to demonstrate relevance and value.

Projects included: developing strategic commissioning readiness; working with individual authorities and

Renaissance NW; contributing to the Rethinking Museums Challenge; embedding the sector in MAA

delivery and developing understanding and practice in community engagement.

The challenges of the Spending Review focused debate on the value and funding of cultural services.

Team North actively contributed to this debate by engaging with authorities across the area to champion the

benefits of the sector and encourage a strategic service review approach, as opposed to ad hoc serial cuts.

Against a backdrop of continually changing local authority plans during the budget setting process, Team

North offered information, advice and guidance on meeting C&E obligations. This demonstrably influenced

the processes followed by local authorities and provided an opportunity for communities to both influence

the shape of future delivery and voice the significance of the service to them.

One particular area of activity of which Team North is particularly proud is the creation of a comprehensive

intelligence base, developed from grass roots relationships, which enabled queries and issues to be

resolved efficiently and ensured prompt responses to DCMS queries.

Team London

During the course of the year, Team London carried out Light Touch Peer Reviews with Barnet, Barking

and Harrow as well as supporting a revision of Croydon’s library strategy. In addition, the Team worked

with: the Future Libraries Programme pilot sites in London; the Tri-borough partnership of RB Kensington

and Chelsea. Hammersmith and Fulham and City of Westminster; and the SE London group (SELPIG) of

Croydon, Bexley Bromley, Greenwich, Lewisham, Southwark and Lambeth.

Additionally, Team London continued to host the London Cultural Improvement Programme on behalf of the

London Cultural Improvement Group. Since 2007 this body has supported all 33 London boroughs by

levering in external funding from Capital Ambition, (the London Regional Improvement and Efficiency

Partnership), as well as substantial partnership contributions. The year saw the completion of the majority

of its projects which have produced a range of tools that will be made available to boroughs in the future.

Valuable peer support networks, providing a range of training to officers and members, have also been

established. Training projects included: E-Marketing, Measuring Social Outcomes, Working with Children’s

Services, Film App, and Heritage Change.

The London Library Change Programme has also produced a set of tools based on a ‘Strategic Options

Framework’ for boroughs to use in revising their library strategies in response to public spending cuts. At

the end of 2010/11, seven partnerships covering 25 boroughs had been identified to receive further funding

to implement the next stage of their projects. These will embrace shared services, outsourcing and

integration with other local services.

The Museums, Libraries and Archives Council

Team London was active in taking the lead to pilot a number of commissioning clusters which enabled the

sector to participate in broader consortia to access funding opportunities through the new commissioning

model in public services.

The London Living Places Partnership, chaired by the London Field Team, supported LB Havering’s

regeneration strategy in Rainham and South Hornchuch, and a further regeneration project at the

Whitechapel Gallery and Toynbee Hall.

The Knowledge Transfer Programme, which develops the MLA role in supporting business innovation

within the sector, published its final report of essays by participants in the four pilot projects which were co-

funded with the London Development Agency.

With funding from the European Union Gruntvig Partnership, the Team also led an international partnership

including a number of national museums, the Historic Royal Palaces and Birmingham University, to

progress the Challenging History initiative.

Advancing the Library Action Plan

As well as delivering the Future Libraries Programme, MLA has taken forward a number of other library

related initiatives. It worked closely with LLUK, the Sector Skills Council for the lifelong learning workforce,

to ensure standards and coherence in qualifications for the library workforce. This included the

development of National Occupational Standards and Apprenticeship frameworks. LLUK closed in April

2011 when responsibility for library workforce development transferred to LSIS (Learning and Skills

Improvement Service).

The current framework agreement for Reference Online, the consortia approach to the purchase of online

reference materials led by MLA, will expire in March 2012. The value of this initiative is demonstrated by

the fact that by 2010 efficiency savings of £7.7m had been secured for public libraries. MLA is currently

working with ACE, the Society of Chief Librarians and a range of publishers to renew the framework

agreement.

MLA is also working with the Chartered Institute of Library and Information Professionals (CILIP) and the

Society of College, National and University Libraries (SCONUL) to maintain and develop the Designing

Libraries website. This website provides a web based resource for sharing best practice in library planning

and design. It is anticipated the website will be financed from sponsorship from 2011.

Once again, the MLA granted an annual funding agreement to the Reading Agency to deliver reader and

literature development work in public libraries. In 2010 the Reading Agency maintained the work of the

Youth Board which draws together government departments, local authorities and national organisations,

such as Booktrust, to support young peoples’ engagement with public libraries. It also developed a heath

toolkit to measure the impact of reading and to assess the impact of public libraries on the health and well

being of individuals. In addition, it maintained a database of reader groups in England.

MLA also gave financial support to the Children’s Laureate, Anthony Browne, to enthuse children and

young people to enjoy books and reading.

Living Places

MLA continued to act as the lead agency for the Living Places partnership, which includes ACE, the

Commission for Architecture and the Built Environment (CABE), English Heritage, Sport England, DCMS

and Communities and Local Government (CLG). Living Places was initiated in 2006 to help create thriving

and vibrant communities in places where regeneration and growth was being experienced. The programme

concluded in 2010/2011. Its major successes included:

• Developing the Culture and Sport Planning Toolkit which enables planners and culture and sport

professionals to collaborate when planning appropriate culture and sport infrastructure;

The Museums, Libraries and Archives Council

• Leading a partnership of regional NDPBs working with the five Priority Places (Corby, the South

West, Urban South Hampshire, Pennine Lancashire and the Thames Gateway). This work involved

defining how Living Places would support participating places to use culture and sport as a tool to

build sustainable communities, and to ensure that this experience informed national policy making.

One important aspect of this initiative was the way in which the MLA promoted collaborative working

between these Priority Places;

• Pioneering the Our Place project, where creative and learning centres were established in empty

shops in Taunton and Blackburn's high streets to help to introduce informal adult learning to a

broader audience;

• Leading Living Places engagement with CLG to facilitate integration between culture and sport

within the plans for Eco towns;

• Securing the legacy of the Programme through commissioning research into the characteristics of

success in Priority Places, and by developing a partnership to maintain the CSPT into the future.

Acquisitions, Exports & Loans Unit (AELU)

MLA’s AELU team has four main programmes which facilitate greater public access to the UK’s most

important cultural objects. In 2010/2011:

• The Acceptance in Lieu scheme, which accepts important cultural objects in payment of Inheritance

Tax, completed 29 cases with a total value of £8.3m.

• The Export Licensing Unit issued 11,966 licences for material with a total value of £9,799m. It met

its obligation to issue licences within five working days in 99.7% of cases.

• The Government Indemnity Scheme, which provides insurance cover at no cost for loans to UK

museums and galleries, provided certificates for loans valued at £10,485m. This represents a

saving for borrowers of £25m in commercial insurance costs.

• The team continued to deliver a highly effective and well respected Secretariat function for the

Reviewing Committee on the Export of Works of Art and Objects of Cultural Interest.

Accreditation

The MLA’s Accreditation Scheme sets nationally agreed standards for museums in the UK and supports

museums in identifying opportunities for continuous improvement and development. During the year, the

Accreditation Team, in consultation with the sector, completed an in-depth review of the scheme. This was

designed to make Accreditation more streamlined and less bureaucratic for participating museums, and to

enable the scheme to better serve its purpose of developing and improving museums.

During 2010/11 the implementation of the 2004 Accreditation Standard was completed in preparation for

the introduction of the revised Standard. All museums registered under the previous scheme (between

2004 and 2009) were invited to apply and, in addition, a further 120 museums applied for the first time. As

of February 2011 there were 1,792 museums participating in the scheme, with 91 museums working

towards a first time application. Of the 1,792 participants, 91.9% succeeded in gaining the Full award, while

8% achieved Provisional status.

By the end of the financial year, the Advisory Panel of key UK stakeholders had agreed the requirements

and draft format for the new standard. The launch of the revised standard is planned for October 2011,

which will underline the ACE commitment to the museum sector.

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Designation

The MLA’s Designation Scheme identifies the pre-eminent collections of national and international

importance held in England's non-national museums, libraries and archives. These inspiring collections

represent a vital part of our national cultural and artistic heritage and help raise standards across the sector.

During 2010/11, three significant collections were added to the register: Chetham’s Library; the Royal

Horticultural Society’s Lindley Library and The Joseph Wright collection at Derby Museum & Art Gallery.

The Designation Development Fund, financed from the Renaissance budget, supports improvements to the

management and accessibility of designated collections in museums. A total of 25 projects, involving

designated collections with a value of £1.55m, were completed during the year. In addition to this, an initial

round of funding was offered to designated collections held in libraries and archives and this resulted in four

awards being made to the value of £0.16m.

National Security Advice

The provision of National Security Advice to contractors and staff at cultural venues is an essential

contribution to ensuring the safety and security of objects on loan. In addition, MLA’s advisers contribute to

the planning and design of new-build facilities and refurbishments. During the past year the number of

major exhibitions thought the UK continued to accelerate despite the economic downturn. Loans from

national institutions, and under the Government Indemnity Scheme, increased in both number and value.

By conducting pro-active risk assessments, exhibitions were able to proceed to the benefit of the nation.

Floods, natural disasters and political issues all presented new dimensions in the need to balance the

demands of lenders and borrowers, both around the UK and internationally, with the importance of ensuring

the security of collections.

Two losses have been reported to the MLA in this period. One was in England, where the object was

successfully recovered and the offender apprehended whilst the other was a loan overseas, where two

pieces of a larger set of small images were stolen. Whilst not directly involved in the recovery of stolen

works of art, it is pleasing to note that MLA co-operation with the Metropolitan Police Arts and Antiques Unit

assisted in the recovery of a number of objects stolen from National venues some years ago.

Funding for the Preservation of Industrial and Scientific Material (PRISM)

The MLA’s PRISM Fund distributed £250,000 of grants to further the acquisition and conservation of

important objects within the fields of scientific and industrial heritage. Notable awards were made to: the

Tank Museum in support of the conservation of the Tiger Tank: Leeds Museums & Galleries towards the

conservation of paper documents relating to a Harrison clock; and to Tyne & Wear Museums for the

acquisition of the HMS Kelly Bell.

Archives Strategy

The MLA continued to work in partnership with The National Archives (TNA) and CyMAL (Museums,

Libraries and Archives Wales) on the delivery of the Government policy embodied in Archives for the 21st

Century.

Working jointly with the National Archives, the MLA facilitated a series of workshops entitled Archives for

21st Century in your region. These workshops were targeted at culture and archives professionals and

took place in York, Birmingham and at Kew. The aim was to provide leadership and practical guidance on

how best to deliver Government policy within a local authority and university archive context. Particular

focus was placed on implementing one of the five recommendations articulated in Archives for the 21

Century, namely to: ’develop bigger and better services in partnership – working towards increased

sustainability within the sector’. The presentations and information provided on the day were recorded and

made available on the TNA website and a full evaluation of these events has helped to shape future activity

and set priorities on delivering the strategy for the upcoming year.

With funding from the Heritage Lottery Fund, MLA and TNA worked together on the Opening Up Archives

programme which provided 13 traineeships to bring new people into the sector from diverse personal,

professional or academic backgrounds.

The Museums, Libraries and Archives Council

MLA and TNA have also collaborated to fund and create a UK partnership to scope the UK Archives

Accreditation scheme in partnership with CyMAL, the National Records of Scotland, the Public Record

Office of Northern Ireland, and the Archives and Records Association.

Notwithstanding, the announcement on 20 April 2011 that support and leadership for the UK’s archive

sector will ultimately transfer to The National Archives, the MLA has continued to work closely with TNA to

ensure that policy delivery to the archives sector is maintained. The MLA, TNA and ACE are now

discussing how to maintain current relationships and momentum so that opportunities for archives within

arts and culture are maximised.

2012 Cultural Olympiad

This marked the third year of MLA’s 2012 programme which seeks to use the London 2012 Olympic and

Paralympic Games and the Cultural Olympiad as a springboard to increase participation amongst new

audiences. It also aims to transform the way in which people experience the inspiration, learning and

creativity generated by museums, libraries and archives.

Nine projects were finally approved for the flagship Stories of the World Programme, totalling 60

participating museums across eight English regions and Scotland. Over 2000 young people are already

recruited onto the programme’s youth panels to lead the projects, develop creative reinterpretations and

gain skills and experience. All participating museums have either established youth panels for the first time,

or expanded and developed the remit of their existing panels.

Two years of training and support from the National Youth Agency concluded successfully in March 2011.

The impact of the training was demonstrated when 11 museums applied for the National Youth Agency

award to recognise excellence in youth participation. A national Youth Steering Group was established to

represent young people from across the programme and to ensure that youth participation has a permanent

legacy. The Group’s first activity has been to work on a Youth manifesto and to develop guidance on

innovation in exhibition design. In London, over 150 young people contributed 4,000 hours of work to

achieve their V50 award, and six young people were employed as paid interns.

The first wave of exhibitions and accompanying events programmes was delivered during 2010/11. These

included exhibitions at 11 museums across London including the Courtauld Gallery, Orleans House, and

the Foundling Museum as well as exhibitions at museums across the country, including Barnsley, Durham

and Luton, Other projects presented online resources, audio guides, films and interactive installations in

gallery spaces, such as the stethoscope audio tour at Florence Nightingale Museum and poetry slams at

Keats House.

Elsewhere, as part of its contribution to the Cultural Olympiad, the MLA further developed the People’s

Record project, which aims to both capture the public’s response to hosting the Games and to support

museums, libraries and archives to develop community engagement initiatives. Nineteen projects were

funded with small grants (circa £3,000 each) involving around 7500 participants and 152 volunteers who

collectively contributed nearly 1,000 hours of time. The MLA launched the People’s Record website as the

online archive to collect, showcase and, most crucially, to preserve the records beyond 2012.

MLA also provided significant funding for the Our Sporting Life (OSL) project which was led by the River

and Rowing Museums and the Sports Heritage Network. OSL seeks to develop a “nationwide network of

community exhibitions leading up to 2012, to bring together from objects, stories and photographs that tell

the story of Great British Sport”. OSL was launched in March 2010 and, over the course of the year, it

delivered 17 exhibitions in venues across the country. The standard exhibition kit enabled the story of sport

in the UK to be showcased whilst simultaneously providing space for the exploration of local traditions and

experiences.

MLA is committed to using the inspiration of the Paralympic games to drive forward disability equality in the

museums, libraries and archives sector and to this end two key projects, Paralympic Region and

Culturelink, have been championed. The Paralympic Region project aims to ensure that the South East’s

role as the birthplace of the Paralympic movement at Stoke Mandeville is recognised by the world.

Culturelink, which

The Museums, Libraries and Archives Council

was delivered in partnership with the RNIB at pilot projects in 7 West Midlands museums, sought to

enhance cultural access for blind and visually impaired people by developing the skills of the museums and

challenging attitudes. RNIB produced a ‘legacy pack’ of advice, case studies and practical guidance which

will be rolled out to museums in the South East.

Finally, MLA worked with London 2012 to involve the UK-wide public library network in the recruitment drive

for ‘Games Maker’ and ‘London Ambassador’ volunteers in 2012.

Research & Evidence

The MLA research team, working closely with researchers in Government and other agencies, supports the

MLA’s improvement work by gathering and sharing evidence of the impact made by museums, libraries and

archives, and by identifying the most effective elements in the programmes and projects which MLA funds.

MLA’s research website continues to grow in popularity with an approximate 75% combined increase in

publication downloads and case study views from 2009/10. The site provides a database of case studies,

research and evaluation documents, briefings; and statistical reports. A new set of web pages were created

to showcase key sector statistics and to provide a link through to related publications and case studies.

This new feature has proved very popular and has helped to increase website activity. The number of

research page views has increased by 49 per cent between 2009/10 and 2010/11.

Library user and non-user research involved an evidence review to assess the current evidence base and

to identify gaps. By surveying over 1,000 individuals, use and attitudes towards public libraries was

explored. This research has provided a baseline which local authorities are able to use to assess their

provision.

As part of the Renaissance programme, MLA conducts research to help museums understand their visitors

and the visitor experience, as well as assessing the delivery of programmes and their contribution to the

lives of these visitors and participants. Work completed includes an evaluation of sustainability at Hub

museums. The project applied the Social Return on Investment technique and identified examples of

positive cost-benefits in a number of economic sustainability implementation projects.

An evaluation of the BIG Lottery Fund Community Libraries Programme has been completed. This

discovered that the inclusion of different spaces to support community activity has resulted in libraries

becoming hubs of community activity in a way that was not previously possible, and that the approach to

volunteering has become more strategic.

Strategic Commissioning

The Strategic Commissioning programme, which links professionals to enhance the contribution made by

museums and archives to education, concluded in March 2011. The MLA received funding from this

programme as part of the overall DCMS and the Department for Education Strategic Commissioning

Programme between 2009 and 2011. The MLA’s programme contributed to some impressive outcomes and

outputs as follows:

• Over 50,000 children and young people visited a museum, archive or gallery, either as part of their

formal school curriculum or as part of their out of school, informal learning;

• Over 7,400 teachers and trainee teachers learned how to work more effectively with a museum,

archive or gallery through an initial teacher training placement, Learning Links exchange, CPD

course or taking part in a national programme, such as Take One or Campaign! Make an Impact;

• More than 1,350 schools worked in partnership with a museum, archive or gallery to develop

learning activities for children and young people;

• More than 5,400 museum, archive and gallery staff participated in CPD to support more effective

working with teachers, schools and young people;

The Museums, Libraries and Archives Council

• 18 regional ‘champion’ museums and archives were trained to deliver the Take One and Campaign!

Make an Impact programmes;

• Five regional science networks support museums and archives to deliver science learning

opportunities;

• Nearly 1,000 new and updated learning resources were created by project participants, grant

holders and partner organisations for use by schools, initial teacher training organisations and

cultural organisations;

This activity built on the achievements of the Strategic Commissioning programme in its earlier phase.

Major developmental work over this period included:

• Rolling out, as national programmes, initiatives such as Take One Picture, Design for Life and

Campaign! Make an Impact, supported by ‘champion’ museums and archives and online resources;

• Further development of the Teaching Outside the Classroom website and partnership with

Creativity, Culture & Education (CCE) to which responsibility of the website will transfer;

• Testing and evaluation of workforce skills development models, including a commissioning model

for the delivery of CPD programmes;

• Establishing a suite of web-based learning resources for museum, gallery and archive educators,

initial teacher training students and teachers;

External evaluation of the models developed by Strategic Commissioning has shown that they are highly

effective and make a positive contribution to children’s and young people’s learning. In view of this, it is

expected that ACE will embrace them as it takes forward its new responsibilities. The networks and

museums that have participated have all expressed an interest in continuing to deliver this type of

programme and it is to be hoped that further funding will be made available from DfE to enable ACE, the

National Museums and other partners to continue this good work.

Digital initiatives

Following a review of key areas of digital activity, which was informed by consultation with stakeholders and

the wider sector, MLA refocused its activities so that they fully aligned with its objectives for the use of

digital technologies as well as its wider strategic aims. Activities have subsequently been based on two

initiatives, namely the Sector Improvement Programme and the Data Aggregation Programme.

The Sector Improvement Programme, which aims to improve collections care and management, as well as

securing efficiencies, has been delivered through Collections Link’s support for Accreditation, Subject

Specialist Networks, Museum Development Officer networks and standards. Evidence shows that there

are over 1,600 users of Collections Link.

The Data Aggregation Programme, which has been delivered through Culture Grid and Culture 24’s system

for collating ‘What’s On’ data and educational resources, enables maximum value to be derived by

automating digital content upload to a range of platforms. There are now 1.13m digital assets in Culture

Grid and these are being used to drive new platforms for audience development, such as Exploring 20th

Century London and Find a Library sites. Culture24’s data aggregation programme is used to drive national

campaigns such as Museums at Night. A partnership forged between Culture24 and the BBC will enable

cultural content to be delivered onto the BBC’s Things to do website.

Helping secure a networked nation

MLA brokered the public library partnership with the Race Online 2012 campaign which was spearheaded

by UK Digital Champion, Martha Lane Fox. Race Online now has 1,000 partners across the public,

corporate and charity sectors who are working to support the 9 million people in the UK who have never

The Museums, Libraries and Archives Council

gone online take their first steps into the digital domain. The public library promise to support 500,000

people to get online represents the most ambitious partner promise to date.

MLA has also funded Birmingham and Devon home library services to trial a new approach to supporting

older people to go online for the first time. Supported by Microsoft and the BBC, the staff and volunteers

who deliver this service are trusted intermediaries and who are able to play a key role in encouraging their

users to access the benefits of being online. Given that the average age of home library service users is 80

plus, many of whom have limited mobility, this service provides a way by which people within this section of

the community are able to develop the skills necessary to take full advantage of the IT resources available.

If shown to be successful, this model could be used as a template for national application thereby extending

digital participation across the nation.

Informal Learning

MLA funded 20 innovative projects, ranging from performing poetry to making ancient Egyptian socks, to

encourage museums, libraries and archives to open up their spaces and resources for groups of self-

organised informal learners. Showcased in the MLA’s publication Opening Up Spaces (June 2010), these

projects provide a useful starting point for museums, libraries and archives seeking to advocate their

contribution to the Big Society.

School Library Commission

The School Library Commission, jointly established by MLA and the National Literacy Trust and chaired by

Baroness Estelle Morris, published its report School Libraries: A plan for improvement in September 2010.

The key findings led to a number of recommendations to governors, head teachers and sector bodies.

Creative Apprentices Scheme

Apprenticeship posts numbering 56 have now been established in museums through the partnership

between MLA and Creative & Cultural Skills. These posts have been created in local authority,

independent and some national museums up and down the country, with employers ranging from large to

small organisations in both urban and rural areas.

Museums such as Tate Liverpool, Ryedale Folk Museum, Orleans House Gallery, Richmond, London and

Thinktank, Birmingham Science Museum continue to benefit from the injection of new sets of skills and

capacity, coupled with the fresh perspective that apprentices bring. Evaluation has shown that the Scheme

is being used to: train staff in line with job needs; forge stronger links with local communities; and to help to

change the internal culture of the organisation and the way it is perceived by the public.

From the perspective of the apprentice, the Scheme is not only offers access to employment, but it also

provides a qualification, which many apprentices did not previously have. Through formal training,

apprentices are able to develop their understanding of both the creative and cultural sector and of how

businesses operate. Hands-on experience within the environment of a host museum refines skills in project

and event management, promotes team working, provides an insight into how information is recorded and

stored, gives apprentices the opportunity to work with financial systems and provides an understanding of

the application of health and safety regulations. The MLA has been encouraged by findings from

evaluations which reveal that a significant number of apprentices are being retained at the end of the

Scheme by their host museum. In view of this, the MLA very much hopes that the sector will be able to

continue to operate the Scheme independently in the future and to this end case studies, together with

relevant resources, are being prepared.

The Museums, Libraries and Archives Council

Sustainability

The MLA has continued to work towards becoming more sustainable as an organisation. It has done this

by: enforcing tight controls on consumption, particularly around travel; increasing recycling; developing a

sustainable procurement policy; and embedding behavioural change in its processes and procedures.

Whilst MLA programmes continue to prioritise carbon base lining, volunteering and income generation as

the key themes in developing a more sustainable sector, the strategic focus has centred on promoting

financially sustainable activity. This has resulted in the publication of a series of online guidance papers and

best practice case studies exploring how different delivery models offer opportunities for financial

sustainability and innovation.

Equality and Diversity

Fully committed to increasing levels of equality and diversity in all aspects of its work, in 2010/11 the MLA

developed and implemented a comprehensive Single Equalities Scheme. It is also proud of having

pioneered the Board secondment scheme which successfully widened diversity at the highest level of the

organisation, to the benefit of the secondees involved and, ultimately, to the sector which it serves.

To find out more about MLA visit www.mla.gov.uk

The Museums, Libraries and Archives Council

STRUCTURE AND GOVERNANCE

Legal status

The Museums, Libraries and Archives Council (MLA) is Government’s lead strategic agency for museums,

libraries and archives in England. It is a Non-Departmental Body (NDPB), sponsored by the Department for

Culture, Media and Sport (DCMS). This Annual Report and Financial Statements has been prepared at the

direction of DCMS and will be presented to Parliament pursuant to the Government Resources and

Accounts Act 2000 (Audit of Non-profit-making Companies) Order 2009.

The MLA was incorporated in November 1999 on the instruction of the Secretary of State for Culture, Media

and Sport. It commenced operating in April 2000 under the name “Resource: The Council for Museums,

Archives and Libraries” and took responsibility for functions previously undertaken by the Museums and

Galleries Commission and the Libraries Information Commission. At the same time its remit was extended

to cover Archives in order that DCMS had a single strategic body covering all three sectors, tapping into the

potential for collaboration between them. It changed its name to “The Museums, Libraries and Archives

Council” in February 2004.

The MLA is a company limited by guarantee (number 03888251) and also a registered charity (1079666).

MLA's registered office is at Grosvenor House, 14 Bennetts Hill, Birmingham, B2 5RS. MLA's governing

instrument is its Memorandum and Articles of Association. A joint Management Statement and Financial

Memorandum set out the framework for the accountability relationship with the DCMS. A Funding

Agreement between DCMS and MLA set out agreed priorities and targets for the three years from 2008/09

to 2010/11. Activities during 2010/11 fell within the scope of this Agreement. A similar Funding Agreement

is in place in respect of 2011/12.

Since 1 April 2008 the MLA has exercised dominant influence over the first eight regional agencies listed

below. The ninth regional agency, Museum, Libraries and Archives London came under MLA’s control on

24 March 2010. Prior to these dates they all operated as independent “arms length” organisations with the

MLA providing the majority of their funding. At 1 April 2010 all of these organisations had ceased operating

activities and during the period to 31 March 2011 they were engaged in transferring activities to the MLA

and settling residual liabilities with a view to commencing members’ voluntary winding up procedures in due

course.

Company Charity

Museums, Libraries and Archives Council, East of England 04148021 1085036

Museums, Libraries and Archives East Midlands 04401317 1092956

Museums, Libraries and Archives North East 04159174 1085565

Museums, Libraries and Archives North West 01554226 511412

Museums, Libraries and Archives South East 04131121 1086030

Museums, Libraries and Archives South West 01626497 284996

MLA West Midlands : The Regional Council for Museums,

Libraries and Archives

01688880

513708

Museums, Libraries and Archives Yorkshire 01593054 512249

Museum, Libraries and Archives London 04936620 1101920

Vision and Purpose

Following its restructuring the MLA redefined its Vision and Purpose and identified four priority areas for its

work in 2009/10 and beyond. They can be summarised as follows:

Vision

Leading strategically, the MLA promotes best practice in museums, libraries and archives, to inspire

innovative, integrated and sustainable services for all.

The Museums, Libraries and Archives Council

Purpose

To enable museums, libraries and archives to provide more and more people in England with high quality

experiences that enrich their lives.

Priority 1

To assist those responsible for funding and leading museums, libraries and archives to oversee

constant improvement and increased responsiveness to local needs.

Priority 2

To enable museums, libraries and archives to increase their contribution to learning and skills

development in order that individuals have improved life and employment opportunities.

Priority 3

To enable museums, libraries and archives to make an increasing contribution to their local

economies and communities.

Priority 4

To be a highly effective organisation providing clear leadership and strong advocacy for the sector,

respected and valued by all that we work with.

Charity Commission Guidance and Statement of Public Benefit

The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have

due regard to guidance published by the Charity Commission including the Commission’s general guidance

on public benefit when reviewing the charity’s aims and objectives as demonstrated in the Vision, Purpose

and Priorities set out above.

Our funding and how we spend it

Most of our funding comes from DCMS as Grant in Aid and grants for specific programmes. MLA also

receives grants from other government departments and agencies. We manage Lottery Fund supported

programmes and administer awards from other charitable bodies. The money is spent providing grant

awards to other bodies for research, advocacy and programme management.

During 2010/11 expenditure on these activities totalled £61.8 million for the consolidation and £60.7 million

for the company, split between the principal objectives for the year as follows:

Consolidation

£ million

Company

£ million

Assist the sector’s leaders to oversee constant improvement and

responsiveness to local needs

28.5

28.1

Enable the sector to increase its contribution to learning and skills

development

8.8

8.5

Enable the sector to make an increasing contribution to local

economies and communities

13.0

12.7

Provide clear leadership and strong advocacy for the sector 11.6 11.4

Further information is available in the Financial Statements on pages 34 to 66.

Grant in Aid Funding

Prior to 2008/09 MLA had, in each year, drawn down all of the annual Grant in Aid it had been awarded by

the Secretary of State in its funding agreement. This allowed MLA to hold cash reserves sufficient to meet

its contractual obligations as they fell due and comply with Charity and Company law. During the early

months of 2010 DCMS advised that in order to comply with government accounting rules, MLA should not

draw down funds in advance of need for the financial year 2009/10 and subsequent years. Accordingly an

adjustment was made to Grant in Aid for funds drawn down in advance of need for £3,700k in the financial

statements for 2009/10. No adjustment has been necessary for 2010/11.

The Museums, Libraries and Archives Council

Grant making policy

It is not MLA’s general policy to award grants to individuals, except in the context of specific schemes

managed on behalf of other funding bodies. Grants are awarded to non-profit making bodies to further

MLA’s charitable objectives. The Purchase Grant Funds are open to applications from eligible institutions,

as are a number of externally funded grant programmes. Other grant awards are for activities specifically

commissioned by MLA under approved programmes.

Where grant schemes are administered on behalf of other funding bodies, broad criteria for the awards are

agreed with those bodies and applied by MLA. Where major grant schemes are operated at MLA’s full

discretion, criteria are determined by the MLA. Grant awards are subject to conditions as to accountability

and the demonstration of a commitment to inclusive employment and procurement practices.

Further details of grants and awards made by MLA can be found on the MLA Website www.mla.gov.uk.

How we are held to account

We account to DCMS against Funding Agreements which set out how we will help the Department deliver

on its strategic objectives. We comply with Companies House and Charity Commission filing and reporting

requirements.

Board minutes and papers are published with other management documents and regular updates on our

activities and plans on our website www.mla.gov.uk

. As a public authority we are bound by and actively

comply with the provisions of the Freedom of Information Act.

Sector and professional bodies

The MLA has continued its successful and close collaboration with sector and professional bodies such as

the Chartered Institute of Library and Information Professionals, the Society of Chief Librarians, the

Museums Association, the National Museums Directors Conference, the National Council on Archives and

the Society of Archivists.

Relationships between MLA and related parties

The MLA is one of a number of councils and institutions active in the cultural and related sectors which are

sponsored by DCMS. MLA makes grants to and receives services from several of these bodies. All

transactions are conducted on an arm’s length basis and on terms no more favourable than those offered to

or by other unrelated parties. Full details are set out in note 24 to the financial statements.

Trustees and officers

MLA's Trustees are the statutory directors of the company and trustees of the charity. The following

Trustees served during the year:

The majority of Trustees and the Chairman are appointed by the Secretary of State for Culture, Olympics,

Media and Sport. Following an amendment to the MLA’s Articles of Association on 24 January 2008 the

Mayor of London has the right to appoint the Chair of MLA London who automatically becomes a Trustee of

the MLA. The Mayor of London has used this right to enable the appointment of Ms Nancy Bell.

Nancy Bell Appointed 1 May 2010

Geoffrey Bond

Professor Patricia Cullen

Angela Dean

Nick Dodd Resigned 5 April 2011

Yinnon Ezra

Dr Helen Forde

Glen(ville) Lawes

Sir Andrew Motion Chair

Karen Tyerman

Robert Wand

The Museums, Libraries and Archives Council

The composition of the Board of Trustees has changed considerably following the wind down of the

regional agencies. Whilst the Articles of Association provide that there can be a maximum of fifteen

Trustees the Board has decided that it is beneficial to operate with a smaller Board with no more than

twelve Trustees.

The Board of Trustees met 6 times during the year. Individual Trustees also made a number of visits to

museums, galleries, libraries and archives in the UK and beyond. New Trustees are given induction training

when they join the MLA.

The Board of Trustees determines MLA's strategy and considers and approves proposals for new policies

or variations in existing policies. Annual budgets, Business Plans and the Corporate Plan are subject to

Board approval. The Board of Trustees appointed Roy Clare as Chief Executive on 1 September 2007 and

Paul Lander as Company Secretary on 3 April 2008. Roy Clare resigned from his post on 20 May 2011 and

Paul Lander was appointed as Acting Chief Executive on the 23 May 2011.

Trustees are unremunerated, with the exception of the Chairman, Andrew Motion. Details of his

remuneration can be found in the Remuneration Report on page 24. Details of Board Members travel and

subsistence expenses can be found at note 11 to the financial statements.

The MLA maintains a register of financial interests of its Trustees which is published on MLA's website and

is available for public inspection by appointment at its registered office, Grosvenor House, 14 Bennetts Hill,

Birmingham, B2 5RS. Copies can also be provided by post.

Staff Establishment and Organisation Structure

The MLA establishment at 31 March 2011 comprised 98 full time equivalents (FTEs) including vacant posts

(2009/10: 108). A further 19 FTEs (2009/10: 19) were also employed in posts funded by programme

funding that is in addition to the DCMS baseline grant. This establishment was structured into six divisions,

led by the Head of Communications and Directors of Policy and Sustainability, Programme Delivery,

Corporate Services, Engagement East, Engagement West, Engagement North, Engagement London.

These eight executives (seven after 20 May 2011), together with the Chief Executive comprise the

Executive Board. The four Directors of Engagement lead area teams that take forward the MLA’s work in

the English Regions replacing the nine Regional Agencies that have closed down.

Other staffing matters

MLA is accredited as an Investor in People and is committed to that standard’s principles, including

development of its people and effective communication. Teams have regular meetings and major policy

and operational issues are presented for discussion at all staff meetings as appropriate. MLA

recognises the trade union, Prospect, for the purpose of collective bargaining. The Joint Consultation

and Negotiation Committee meets regularly with additional ad hoc meetings as required. MLA is

committed to a policy of diversity and equality of opportunity and has introduced an interim single

equality scheme that takes account of recent structural changes and emulates best practice.

Following the announcement by the Secretary of State on 26 July 2010 that the MLA would cease operating

by 2012 and that key functions would be transferred to other organisations, MLA has spent many months

discussing the details of these proposals with DCMS, Arts Council England (ACE) and other organisations

and developing and implementing appropriate plans. As part of this process, on 1 December 2010, MLA

advised all of its employees that they were at risk of their employment ceasing by virtue of redundancy

during 2011 or 2012 and commenced a period of formal staff consultations.

Staff consultations were completed on 20 May 2011 and MLA is now implementing arrangements that will

result in around one third of its employees transferring to ACE during October 2011 and the balance leaving

as a result of resignation or redundancy between June 2011 and August 2012.

The Museums, Libraries and Archives Council

During 2010/11 there were 615 staff sickness absence days which can be analysed as follows:

2010/11 2009/10

Programme Delivery 215 226

Field Team 79.5 72.5

Corporate Services 226.5 79

Policy and Sustainability 91 48

Communications & External Relations 0 0

Chief Executive’s/Chairman’s unit 3 0

Total 615 425.5

Average days per employee 6.6 4.3

The remuneration report can be found on page 24.

Public sector payment policy

MLA adheres to the Better Payment Practice code. This means that payment terms are agreed at the outset

of a contract and explained to suppliers and all payments are made in accordance with those terms. In the

year under review, all undisputed invoices were paid within twenty one days of receipt unless the organisation

was entitled to earlier settlement.

DCMS Performance indicators

DCMS set a number of performance indicators for MLA to report on by the end of March 2011.

Performance Indicator Achievement for 2010/11

Increase the overall number of visits to Renaissance hub

museums above the 2008-09 baseline

Achievement 18,654,699

Baseline 15,801,894

Increase of 18.05%

Increase the number of participation contacts between school

age children in years 1-11 and Renaissance hub museums

above the 2008-09 baseline

Achievement 1,510,929

Baseline 1,486,003

Increase of 1.68%

Increase the number of instances of adults and child visitors to

Renaissance hub museums participating in on-site activity above

the 2008-09 baseline

Achievement 1,573,353

Baseline 1,266,216

Increase of 24.26%

Increase the number of visits from priority groups (Black minority

ethnic, Lower socio-economic groups and Disabled) to

Renaissance hub museums above the 2008-09 baseline

Achievement 3,612,864

Baseline 3,310,007)

Increase of 9.15%

Encourage the voluntary reporting of finds recorded through the

Portable Antiquities Scheme to be maintained at a similar level to

that achieved in 2007/08

Achievement 133,683

Baseline 61,732

Increase 116.6%

The Museums, Libraries and Archives Council

Risk management

The risks facing MLA are detailed in its risk register and cover External, Operational and Major Change

events, each being assessed for Impact and Likelihood. All identified risks have plans which mitigate those

risks and are regularly reviewed and monitored by the audit committee. During April and May 2010 the

MLA’s Risk Management Strategy and management process were subject to extensive review and

improvements were implemented in order to ensure that they met the organisation’s changing needs. At that

time the major risks were identified as:

• The new Government may reduce support for the MLA sector;

• The MLA Field team resources prove to be inadequate to cope with the growing demands for

support from Local government;

• New Government Ministers do not support the reshaping of Renaissance and funding is

significantly reduced:

• The economic and political challenges faced by Local Authorities restrict their ability to work with

MLA to accelerate reform and achieve ‘sharper investment’ in museum, library and archive

services, making the case for ‘sharper investment’;

• The relocation of the Acquisitions, Export and Loans Unit to Birmingham, as agreed with

Government, experiences unforeseen challenges and the service provided to stakeholders falls

below the standard that is required.

Following the announcement by the Secretary of State on 26 July 2010 that the MLA would cease operating

by 2012 and that key functions would be transferred to other organisations, the trustees and executive

regularly reviewed the risks faced by the organisation. In addition the Internal Audit plan, after consultation

with DCMS, was revised to take account of the changing circumstances. These actions enabled trustees

and management to actively manage risks and ensure that operational effectiveness was maintained whilst

MLA worked with ACE and DCMS to develop and implement plans for the transfer of functions and

progression towards closure of the organisation in 2012. At the balance sheet date MLA had identified the

following as the major risks facing the organisation and put in place appropriate mitigating actions:

• The loss of key skills as employees leave MLA places critical functions at risk and impedes

ACE’s ability to satisfactorily undertake its new responsibilities;

• Deteriorating relationships with key stakeholders as the MLA progresses towards closure mean

that MLA is not able to sufficiently influence future policy and articulate the MLA sector’s

interests and needs;

• The transfer of staff, knowledge and data to ACE is not wholly effective resulting in weaknesses

in future operations;

• Changes to the location and operation of the Acquisitions, Export and Loans Unit jeopardise

effectiveness and result in the service provided to stakeholders falling below the standard that is

required.

The Board of Trustees is satisfied that its existing internal controls, which are reviewed annually by its internal

auditors, adequately counter the risks of financial loss by fraud, waste or error and that the strategy adopted

provides a sound basis for effective risk management.

Paul Lander Andrew Motion

Accounting Officer and Chair of the Board of Trustees

Acting Chief Executive

The Museums, Libraries and Archives Council

12 July 2011

The Museums, Libraries and Archives Council

REMUNERATION REPORT

Remuneration Committee

The Remuneration Committee of the MLA Board meets twice each year and is responsible for reviewing the

salary of the CEO and all senior managers employed by MLA. During the year this amounted to 8. The

Committee has three members: Andrew Motion (Chair of MLA), Geoffrey Bond (Trustee), Helen Forde

(Trustee). The Chief Executive attends committee meetings except when matters relating to his own pay

and performance are being considered. The Committee is supported by Frances Morris, Head of HR and

Alan Hurst an independent specialist in public sector remuneration.

Remuneration policy of senior managers

The committee pursues a remuneration policy based on principles which aim to ensure that:

• Remuneration is closely tied to the strategic aims of the MLA.

• Remuneration compares appropriately with similar organisations.

• Individual development is allowed for.

• Gender and peer equality principles are embedded.

Senior managers are entitled to membership of the Principal Civil Service Pension Scheme (as are all

permanent employees) subject to the PCSPS eligibility criteria. See note 1h on page 42 for details.

Performance assessment

Assessment of performance of senior managers is carried out during the year in individual sessions with

the Chief Executive, and is fully analysed and appraised at the annual appraisal at the end of the

financial year. The Chief Executive is similarly assessed by the Chairman of the MLA.

Performance related remuneration

In addition to their basic salary, senior managers’ contracts provide for payment of an annual performance

related bonus which is up to 10% of their basic salary (15% for the CEO) of which up to 2% may be

consolidated. Senior managers are not entitled to any other allowances or benefits, cash or otherwise. The

remuneration set out in the following table includes bonuses paid in the year which were in respect of

performance in the previous year. During 2010/11 the MLA fully complied with Public Sector Pay Policy.

Senior managers’ contractual policy

The Chair of the Board of Trustees is appointed on a fixed term contract that expires on 2 July 2012. His

terms of appointment and salary are fixed by the Secretary of State for Culture, Olympics, Media and Sport.

He is not entitled to any compensation for loss of office, any pension benefits or performance related pay.

All other senior managers have open-ended contracts of employment and are entitled to compensation for

loss of employment under the terms of the Civil Service Compensation Scheme; details are available from

the Cabinet Office or at http://www.civilservice.gov.uk/pensions/compensation-scheme

The senior managers who served during the year and their roles are:

Date of

appointment

Notice

period

Andrew Motion Chairman 3 July 2008 1 month

Roy Clare Chief Executive until 20 May 2011 1 September 2007 6 months

Paul Lander Director of Corporate Services

Acting Chief Executive from 23 May 2011

19 March 2007

3 months

Sue Wilkinson Director of Policy & Sustainability 21 June 1999 3 months

Hedley Swain Director of Programme Delivery 7 June 2007 3 months

Jon Finch Director of Engagement West 1 January 2009 3 months

Sam Bestwick Director of Engagement East 1 January 2009 3 months

Keith Bartlett Director of Engagement North 9 February 2009 3 months

Andrew Holden Director of Engagement London until

30 June 2011

1 April 2010 3 months

The Museums, Libraries and Archives Council

The table below discloses the senior managers’ salaries in bands, together with the pension that each

senior manager would receive if 31 March 2011 were his or her last day of service; the real increases

in value of pension and lump sum over the year after considering the impact of inflation; and the

cash equivalent transfer value as at 31 March 2011 and 2010 and the real increase in the year after

the effects of inflation and member contributions have been taken into account. The cash equivalent

transfer value (CETV) is an assessment of what it costs the scheme to provide these pension benefits

after allowing for inflation and changes in market investment factors. The previous year’s salary and

bonus figures are in brackets.

This

disclosure

has been

subject to

audit.

Salary

bands

£5,000

£’000

Bonus

in bands

£5,000

£’000

Real

increase

in pension

(& related

lump sum)

at age 60

£’000

Total

accrued

pension at

age 60 at

31 March

2011 (&

lump sum)

£’000

Cash

equivalent

transfer

value at

31 March

2010

£’000

Cash

equivalent

transfer

value at

31 March

2011

£’000

Real

increase

in CETV

funded

by MLA

£’000

Andrew

Motion

25 - 30

(25 - 30)

n/a n/a n/a n/a n/a n/a

Roy Clare

125 - 130

(125 - 130)

(15-20)

n/a

n/a n/a n/a n/a

Paul Lander 90 - 95

(90 – 95)

(5-10)

0 – 2.5

5 - 10

88 117 24

Sue Wilkinson 80 - 85

(80 – 85)

0 - 5

(5-10)

0 – 2.5

(0 – 2.5)

25 – 30

(85 – 90)

458 506 8

Hedley Swain 70 - 75

(70 - 75)

(0-5)

0 – 2.5

0 – 5

43 62 13

Jon Finch 70- 75

(70- 75)

0 - 5

(0)

0 – 2.5

0 – 5

13 26 9

Sam Bestwick 70 - 75

(70- 75)

0 - 5

(0)

0 – 2.5

0 – 5

14 27 9

Keith Bartlett 70 - 75

(65 - 70)

0 - 5

(0)

0 – 2.5

(0 – 2.5)

10 – 15

(35 – 40)

170 196 10

Andrew

Holden (from

1 April 2010)

70 - 75

(n/a)

0 – 2.5

0 - 5 n/a 10 8

*The cash equivalent transfer values (CETV) at 31 March 2010 are based upon revised actuarial

assumptions adopted by PCSPS during 2010 (mainly to account for the change from the use of RPI to CPI

to calculate future pensions increase). The opening CETV values shown in this year’s report are therefore

different to the closing CETV values quoted in the previous year’s report. Roy Clare, was a member of a

personal pension scheme to which the MLA contributed at the rate of 8.9% of his basic salary, which is the

total liability falling on MLA in respect of these arrangements. During 2010/11 the total cost of the MLA’s

contributions was £11,363 (2009/10: £11,363).

There were no payments made, or payable, in respect of compensation on early retirement or loss of office.

There were no non-cash benefits received for 2010/11 (2009/10 £nil). There were no elements of

remuneration paid other than in cash.

Paul Lander

Accounting Officer and Acting Chief Executive

The Museums, Libraries and Archives Council

12 July 2011

The Museums, Libraries and Archives Council

FINANCIAL REVIEW OF THE YEAR

Introduction

The financial results are set out in the financial statements which comply with the requirements of the

Companies Act 2006, the Statement of Recommended Practice on Accounting and Reporting by Charities

(2005) and applicable accounting standards. The financial statements also provide additional information in

order to comply with the disclosure requirements of the Government Financial Reporting Manual (FReM).

Total incoming resources for the year were £68.1m for the consolidation (2009/10: £45.4m) and £68.4m for

the company (2009/10: £45.3m). Of these funds, £16.1m for both the consolidation and the company was

from unrestricted funds. The remainder was made up of the restricted element of DCMS Grant in Aid and

grant income from other sources towards various grant aided schemes and projects. The analysis of

resources expended is set out under each of MLA's four strategic objectives for the year (which align with its

charitable activities) and under governance costs. Incoming resources from charitable activities have been

similarly analysed. Grants awarded in the year, excluding those paid to subsidiaries, totalled £49.8m for the

consolidation (2009/10: £48.3m) and £49.1m (2009/10: £48.2m) for the company.

The cost of charitable activities, excluding grants payable, amounted to £12.0m for the consolidation

(2009/10: £10.8m) and £11.6m for the company (2009/10: £10.7m). The provisions made in previous years

for pension scheme exit charges arising from the closure of the regional agencies in 2009 and 2010 have

been revised to take account of actual settlements and changes in the financial market conditions. This

results in an exceptional item for a reduction of provision of £5.1m (2009/10: £nil) for the consolidation and

£4.4m (2009/10: £nil) for the company (see notes 1h, 13, 18 and 19 for details). The decision to prepare the

financial statements on the basis that the MLA is no longer a going concern (see note 1a) gives rise to

exceptional costs of £2.4m for both the consolidation (2009/10: £nil) and the company (2009/10: £nil).

The surplus for the year arises substantially as a result of the reduction in provisions described above. After

accounting for exceptional items it was £8.8m for the consolidation (2009/10: deficit £13.9m) and £9.5m for

the company (2009/10 £13.8m deficit). The balances held at the year end are deficits on unrestricted funds of

£3.2m (2009/10: £13.9m) for the consolidation and £3.8m (2009/10: £13.9m) for the company; and deficits on

restricted funds of £18.3m (2009/10: deficit £16.4m) for the consolidation and £17.9m (2009/10: deficit

£17.3m) for the company.

Reserves policy

The Trustees’ reserves policy has consistently been that MLA should hold sufficient reserves in order to:

1. Provide the MLA with adequate working capital and maintain solvency,

2. Enable the MLA, within reason, to be able to meet any exceptional unforeseen expenditure that might

arise, and

3. Provide some resources for the MLA in the event of a short term downturn in non GIA income.

In order to pursue this policy Trustees established a base reserve in 2006/07 of £0.3m with the intention that it

should be increased to at least £0.5 million during 2008/09 and reviewed thereafter in the light of the risks and

uncertainties to which the MLA was exposed. As DCMS provides Grant in Aid to the MLA each month in

order to meet actual cash flow need, on the basis that, at the end of each month, MLA will hold a minimal

cash balance, it is not possible to hold a base reserve in excess of £0.5 million.

The substantial costs incurred during 2008/09 and 2009/10 restructuring the MLA and closing its regional

agencies, and the impact of changes to the timing of Renaissance payments to museums have resulted in the

MLA holding negative reserves at 31 March 2009, 2010 and 2011. DCMS has advised Trustees that at the

time of the Spending Review, the Department made budgetary provision for the orderly closure of the MLA

and that the Department will continue to support the MLA financially through its wind-down and to ensure a

solvent liquidation. The Trustees’ current expectation is that MLA should commence liquidation during

2012 but the timetable for this has not yet been agreed with DCMS.

The Museums, Libraries and Archives Council

Advisers

Key advisers to the MLA are:

External

Auditors

(for MLA

Council and

Consolidation

only)

The Comptroller and Auditor General

National Audit Office

157 - 197 Buckingham Palace Road

Victoria

London

SW1W 9SP

Solicitors Bates Wells and Braithwaite

2-6 Cannon Street

London EC4M 6YH

Pinsent Masons

1 Park Row

Leeds LS1 5AB

Internal

Auditors

Moore Stephens

St Paul’s House

Warwick Lane

London EC4M 7BP

Consulting

Actuaries

Atkin & Co.

Oakslade

Station Road

Hatton

Warwickshire CV35 7LH

Bankers Lloyds TSB plc

Lloyds TSB Corporate

Public & Community Sector

Floor, 25 Gresham Street

London EC2V 7HN

External Auditors for the subsidiaries:

Museums, Libraries and Archives Council, East of England

Museums, Libraries and Archives East Midlands

Museums, Libraries and Archives North East

Museums, Libraries and Archives North West

Museums, Libraries and Archives South East

Museums, Libraries and Archives South West

MLA West Midlands : The Regional Council for Museums, Libraries

and Archives

Museums, Libraries and Archives Yorkshire

Museum, Libraries and Archives London

Sayer Vincent

8 Angel Gate

City Road

London EC1V 2SJ

Auditors

The Comptroller & Auditor General was appointed in 2009 to audit the consolidation and company accounts

of the Museums, Libraries and Archives Council pursuant to the Government Resources and Accounts Act

2000 (Audit of Non-profit-making Companies) Order 2009. The audit fee for this work in 2010/11 was £75k.

Non-audit work was not performed by the auditors.

Sayer Vincent have been appointed by the Trustees of the subsidiaries to audit the subsidiary accounts at a

cost of £17k. They have not provided any accounting advice to the MLA in respect of the accounts for

2010/11.

The Museums, Libraries and Archives Council

Statement as to disclosure of information to auditors

The Trustees who were in office on the date of approval of these financial statements, and the Accounting

Officer, have confirmed that, as far as they are aware, there is no relevant audit information of which the

auditors are unaware. Each of the Trustees, and the Accounting Officer, have confirmed that they have

taken all the steps that they ought to have taken in order to make themselves aware of any relevant audit

information and to establish that it has been communicated to the auditors.

Paul Lander Andrew Motion

Accounting Officer and Chair of the Board of Trustees

Acting Chief Executive

The Museums, Libraries and Archives Council

12 July 2011

STATEMENT OF TRUSTEES’ AND ACTING CHIEF EXECUTIVE’S RESPONSIBILITIES

The Trustees are required by company law and the Secretary of State for Culture, Olympics, Media and

Sport, with the approval of the Treasury, to prepare a statement of accounts for each financial year which

gives a true and fair view of the state of affairs of the MLA and of the surplus or deficit for that year. In

preparing that statement of accounts the Trustees are required to:

• observe the accounts directions issued by the Secretary of State including the relevant accounting and

disclosure requirements and apply suitable accounting policies on a consistent basis (a copy of these

directions is available on application in writing to the Accounting Officer at MLA);

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards and statements of recommended practice have been

followed and disclose and explain any material departures in the statement of accounts; and

• prepare the statement of accounts on the going concern basis unless it is inappropriate to presume that

the MLA will continue in operation.

The Accounting Officer for the Department for Culture, Media and Sport has designated the Acting Chief

Executive of the MLA as the Accounting Officer for the MLA. His relevant responsibilities as Accounting

Officer including his responsibility for the propriety and regularity of the public finances for which he is

answerable and for the keeping of proper records are set out in the Non-Departmental Public Bodies

Accounting Officer Memorandum issued by HM Treasury and published in “Managing Public Money”.

Paul Lander Andrew Motion

Accounting Officer and Chair of the Board of Trustees

Acting Chief Executive

The Museums, Libraries and Archives Council

12 July 2011

The Museums, Libraries and Archives Council

STATEMENT ON INTERNAL CONTROL

Scope of Responsibility

As Chairman of the Audit and Risk Committee and representative of the Board of Trustees and as

Accounting Officer, we are responsible for maintaining a sound system of internal control that supports the

achievement of MLA’s objectives whilst safeguarding the public funds and assets for which the Accounting

Officer is personally responsible in accordance with the responsibilities assigned in “Managing Public

Money”. The system of internal control also serves to ensure compliance with the requirements of MLA’s

Funding Agreement which together with the Financial Memorandum and Management Statement set out

the MLA's accountability relationship with the DCMS.

The purpose of the system of internal control

The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all

risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not

absolute assurance of effectiveness. The system of internal control is based on an ongoing process

designed to identify and prioritise the principal risks to the achievement of MLA's policies, aims and

objectives, to evaluate the likelihood of those risks being realised and to manage them efficiently, effectively

and economically.

Capacity to handle risk

Three Board subcommittees give strong support to the Executive and ensure that appropriate scrutiny is

exercised by Trustees - the Finance and Performance Committee, the Audit and Risk Committee and the

Remuneration Committee. In February 2011 the third of these subcommittees had its remit extended to

include a strategic overview of all HR matters including any special measures required during the transition

and wind down period. It was therefore renamed as the Transition Governance Committee.

Managers use a standard template that encourages them to consider all relevant risks when preparing their

contributions to the MLA’s annual business plan. These are reviewed by the relevant Director during

completion of the plan and on a bi-monthly basis as part of the review of performance considered by the

Executive and reported to the Trustees. This process informs Directors’ contributions to the Strategic Risk

Roy Clare was Chief Executive and Accounting Officer for the whole of 2010/11. When he left in May 2011,

by way of resignation, the Board of Trustees decided to appoint Paul Lander who had been the Director of

Corporate Services since March 2007 as Acting Chief Executive in order to maintain a stable leadership

and consistency of control during the period of transition and wind down. This move was supported by

DCMS and therefore Paul Lander was appointed as Accounting Officer on 3 July 2011.

A summary of the significant risks currently faced by the MLA is set out in the Report of the Trustees on

page 23.

The risk and control framework

• The Board of Trustees determines MLA’s strategy and considers and approves proposals for new

policies or variations in existing policies. Annual budgets, business plans, corporate plans and annual

reports are subject to approval by the Board of Trustees.

• Informed by reports from the Executive Board, Trustees decide upon ‘risk appetite’ of the organisation

at a strategic level. At present the MLA is prepared to experience a moderate level of risk in order to

ensure that it operates as a small highly effective improvement agency and leader for its sector,

providing that its staff, physical and financial assets are not placed at risk.

• The Executive Board develops plans, budgets and policy proposals and makes key decisions on

operational management after considering relevant factors including risk.

The Museums, Libraries and Archives Council

• Regular reports are received by the Audit and Risk Committee on internal control and risk management.

These reports are discussed in detail in order that Committee members have the opportunity to probe

and challenge the Director of Corporate Services and Chief Executive before summary briefings are

made to the full Board of Trustees.

• Reports are submitted to the Audit and Risk Committee by MLA’s internal and external auditors who

have attended all Audit Committee meetings since March 2009.

• During 2010/11 the internal auditors completed a programme of work that had been tailored to MLA’s

changed circumstances, agreed with DCMS and the Audit and Risk Committee and complied with

Government Internal Audit Standards. This has enabled them to issue a report providing the

Accounting Officer with reasonable

assurance on the effectiveness of the MLA’s risk management,

control and governance processes for 2010/11.

• Bi-monthly progress reports are submitted to the Finance and Performance Committee by the Director

of Corporate Services covering the MLA’s current financial position, the likelihood that financial plans

will be achieved and the risks attached. These reports are discussed in detail in order that Committee

members have the opportunity to probe and challenge the Director of Corporate Services and Chief

Executive before summary briefings are made to the full Board of Trustees.

• Bi-monthly progress reports from the Chief Executive and Executive Board are presented to the full

Board of Trustees covering performance against key objectives, the likelihood that planned outcomes

will be achieved and the risks attached. These reports are discussed in detail at Board meetings in

order that Trustees have the opportunity to probe and challenge members of the Executive;

• A risk register which identifies strategic risks and allocates responsibility for their management to

members of the Executive Board is maintained and presented to the Audit and Risk Committee with

appropriate reports made to the Board of Trustees. During April and May 2010 the MLA’s Risk

Management Strategy and management process were reviewed and improvements were implemented in

order to ensure that they meet the organisation’s needs and identified weaknesses are addressed.

Security of Personal Data

The MLA only holds personal data relating to its employees and a small number of self employed sub-

contractors. Procedures are in place to ensure that high levels of security and limited access are in place.

The MLA has suffered no protected personal data incidents during 2010/11 or prior years, and has made no

reports to the Information Commissioners’ office.

Management of Information Risk

The MLA has an approach to managing information risk based upon industry standard security processes.

All mobile computing devices use an encrypted format and central data files are held simultaneously at two

secure locations. Access to both its premises is controlled by appropriate security systems in order that

unauthorised persons do not have access to data or equipment.

The MLA, with support from the Head of Information Management and Assurance at DCMS, has completed

a self assessment against the Cabinet Office Security Policy Framework. This identified that 21 of the 70

recommendations in the Framework were not applicable to the MLA. Of the 49 that are applicable, the MLA

is already fully compliant with 33 of them. The MLA has worked towards achieving compliance with balance

of the recommendations in a manner that is appropriate to its changed circumstances. During the autumn

of 2010 the MLA’s approach to managing information risk was reviewed by its internal auditors who

concluded that they could give reasonable assurance as to MLA’s performance.

Reasonable assurance is given based on completion of a reasonable and representative amount of audit work and the internal auditor’s inherent

knowledge of the organisation in terms of risk, controls and governance. The assurance provided can only be reasonable rather than absolute as

only two categories of assurance are available for an annual audit opinion: "reasonable assurance" and "no assurance"

The Museums, Libraries and Archives Council

Review of effectiveness

As Chairman of the Audit and Risk Committee and Accounting Officer, we have responsibility for continually

reviewing the effectiveness of the system of internal control. Our review is informed by the work of the

internal auditors, the executive managers within MLA who have responsibility for the development and

maintenance of the internal control framework with regular reports to the Accounting Officer, and comments

made by the external auditors in any management letter or other reports. In addition we have been advised

on the implications of the result of our review of the effectiveness of the system of internal control by the

Board and the Audit and Risk Committee.

During 2008/09 and 2009/10 the MLA experienced a period of major change as it restructured, relocated

and substantially reduced its operating costs and a number of weaknesses in the system of internal control

were identified. The most significant of these weaknesses were in the following areas:

• Monitoring of grants awarded to third parties

• Manual journal entries in the accounting system

• Drawing down grant in aid from DCMS

• Operating outside delegated authority

• Accounting for commitments

• Timeliness of financial reporting

We are confident that as a result of the programme of improvements implemented by the MLA’s Executive,

with support from the NAO and its internal auditors, these weaknesses have been satisfactorily addressed

and as a consequence we believe that the system of control is now effective.

This system of internal control has been in place for the year ended 31 March 2011 and up to the date of

approval of the annual report and financial statements and accords with Treasury guidance.

Paul Lander

Accounting Officer and

Acting Chief Executive

Glenville Lawes

Chair of the Audit Committee

and Trustee

The Museums, Libraries and Archives Council

12 July 2011

The Museums, Libraries and Archives Council

THE CERTIFICATE AND REPORT

OF THE COMPTROLLER AND AUDITOR GENERAL TO THE

MEMBERS OF THE MUSEUMS, LIBRARIES AND ARCHIVES COUNCIL

I certify that I have audited the group and parent company’s financial statements of The Museums, Libraries

and Archives Council for the year ended 31 March 2011 under the Government Resources and Accounts

Act 2000. These comprise the Summary Consolidated and Company Income and Expenditure Account,

Consolidated and Company Statement of Financial Activities, the Consolidated and Company Balance

Sheets, and the Consolidated and Company Cash Flow Statement and the related notes. The financial

statements have been prepared under the accounting policies set out therein. I have also audited the

information in the Remuneration Report that is described in that report as having been audited.

Respective responsibilities of the trustees and auditors

As explained more fully in the Statement of Trustees’ and Acting Chief Executive’s Responsibilities, the

trustees (who are also the directors of the charitable company for the purposes of company law) are

responsible for the preparation of the financial statements and for being satisfied that they give a true and

fair view.

My responsibility is to audit, certify and report on the financial statements in accordance with the

Government Resources and Accounts Act 2000. I conducted my audit in accordance with International

Standards on Auditing (UK and Ireland). Those standards require me and my staff to comply with the

Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements

sufficient to give reasonable assurance that the financial statements are free from material misstatement,

whether caused by fraud or error. This includes an assessment of: whether the accounting policies are

appropriate to The Museums, Libraries and Archives Council’s circumstances and have been consistently

applied and adequately disclosed; the reasonableness of significant accounting estimates made by the

trustees; and the overall presentation of the financial statements. In addition, I read all the financial and

non-financial information in the Annual Report of the Board of Trustees to identify material inconsistencies

with the audited financial statements. If I become aware of any apparent material misstatements or

inconsistencies I consider the implications for my certificate.

In addition, I am required to obtain evidence sufficient to give reasonable assurance that the incoming and

outgoing resources have been applied to the purposes intended by Parliament and the financial

transactions conform to the authorities which govern them.

Opinion on Regularity

In my opinion, in all material respects, the incoming and outgoing resources have been applied to the

purposes intended by Parliament and the financial transactions conform to the authorities which govern

them.

Opinion on financial statements

In my opinion the financial statements

• give a true and fair view of The Museums, Libraries and Archives Council group’s and parent

company’s state of affairs as at 31 March 2011 and of their incoming resources and application of

resources, including their income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting

Practice; and

• have been properly prepared in accordance with the Companies Act 2006.

The Museums, Libraries and Archives Council

Emphasis of Matter

Without qualifying my opinion, I draw attention to Note 1(a) of the financial statements. The Trustees’

intention is that The Museum, Libraries and Archives Council will be wound up and its functions transferred

to other organisations in 2012. As a consequence, the financial statements have been prepared on a basis

other than going concern. Details of the impact of this on the financial statements are provided in Note 18

to the financial statements.

Opinion on other matter prescribed by the Companies Act 2006

In my opinion the information given in the: Review of the Year; Structure and Governance; and Financial

Review of the Year, for which the financial statements are prepared, is consistent with the financial

statements.

Opinion on other matters

In my opinion the part of the Remuneration Report to be audited has been properly prepared in accordance

with the Government Financial Reporting Manual.

Matters on which I am required to report by exception

I have nothing to report in respect of the following matters where the Companies Act 2006 requires me to

report to you if, in my opinion:

• adequate accounting records have not been kept; or

• the financial statements, and the part of the Remuneration Report to be audited, are not in

agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specified by law are not made; or

• I have not received all the information and explanations I require for my audit; or

• the Statement on Internal Control does not reflect compliance with HM Treasury’s guidance.

Report

I have no observations to make on these financial statements.

Amyas C E Morse

Comptroller and Auditor General

National Audit Office

157-197 Buckingham Palace Road

Victoria

London

SW1W 9SP

14 July 2011

The Museums, Libraries and Archives Council

Summary Consolidated and Company Income and Expenditure Account for the year

ended 31 March 2011

2010/11 2010/11

2009/10 2009/10

Consolidation Company

£'000 £’000

£'000 £'000

Total income

68,091 68,380

45,354 45,337

Operating expenditure

(62,039) (60,845)

(59,344) (59,119)

Exceptional items (note 18)

2,736 1,982

112 -

Total surplus / (deficit)

8,788 9,517

(13,878) (13,782)

The Museums, Libraries and Archives Council received Grant in Aid in the year ended 31 March

2011 which included the sum of £ Nil (2009/10: £Nil) which was applied on capital expenditure

The operating surplus for the year arises from the company’s, and its consolidated subsidiaries’,

continuing operations.

The notes on pages 40 to 66 form an integral part to these financial statements.

The Museums, Libraries and Archives Council

Consolidated Statement of Financial Activities for the year ended 31 March 2011

Total

2010/11

2009/10

Note

£'000 £'000

£'000

Incoming resources

Incoming resources from

Voluntary Income

- Grant in Aid 2 15,971 49,583

65,554

42,265

Investment income 3 9 26

4,5 75 2,427

2,502

3,010

Total incoming resources

16,055 52,036

68,091

45,354

Resources expended

Cost of

charitable activities:

Assist the sector’s leaders to

oversee constant improvement

and responsiveness to local

needs

4,766 23,765

28,531

25,505

Enable the sector to increase its

contribution to learning and skills

development

2,304 6,453

8,757

9,986

Enable the sector to make an

increasing contribution to local

economies and communities

2,000 10,963

12,963

13,623

Provide clear leadership and

strong advocacy for the sector

1,773 9,815

11,588

10,013

7 10,843 50,996

61,839

59,127

Governance costs 8 165 35

200

217

Exceptional costs 18 (2,736) 0

(2,736)

(112)

Total resources expended

8,272 51,031

59,303

59,232

Net incoming/(outgoing)

resources before transfers

7,783 1,005

8,788

(13,878)

Transfers between funds 21 2,935 (2,935)

Net incoming/(outgoing)

resources after transfers

between funds

10,718 (1,930)

8,788

(13,878)

Incoming subsidiaries’ funds

235

Net movement in funds

10,718 (1,930)

8,788

(13,643)

Total Funds brought forward

at 01 April 2010

Total Funds carried forward

at 31 March 2011

All activities are continuing operations. There are no recognised gains or losses other than those

those above.

The notes on pages 40 to 66 form an integral part to these financial statements.

(

3,227

)

(

18,317

)

(

16,688

)

(

21,544

)

(

30,331

)

(

16,387

)

(

30,332

)

Unrestricted

funds

(

13,945

)

Incoming resources from

charitable activities

Restricted

funds

The Museums, Libraries and Archives Council

Company Statement of Financial Activities for the year ended 31 March 2011

Total

2010/11

2009/10

Note £'000 £'000

£'000

Incoming resources

Incoming resources from

Voluntary Income

- Grant in Aid 2 15,971 49,583

65,554

42,265

Investment income 3 9 3

4,5 75 2,339

2,414

3,010

0400

400

Total incoming resources

16,055 52,325 68,380 45,337

Resources expended

Cost of

charitable activities:

Assist the sector’s leaders to

oversee constant improvement

and responsiveness to local

needs

4,680 23,418

28,098

25,459

Enable the sector to increase its

contribution to learning and skills

development

2,270 6,232

8,502

9,931

Enable the sector to make an

increasing contribution to local

economies and communities

1,954 10,713

12,667

13,553

Provide clear leadership and

strong advocacy for the sector

1,739 9,675

11,414

9,993

7 10,643 50,038

60,681

58,936

Governance costs 8 164 0

164

183

Exceptional costs 18 (1,982) 0

(1,982)

Total resources expended

8,825 50,038

58,863

59,119

Net incoming/(outgoing)

resources before transfers

7,230 2,287

9,517

(13,782)

Transfers between funds 21 2,935 (2,935)

Net incoming /(outgoing)

resources after transfers

between funds

Net movement in funds

10,165 (648)

9,517

(13,782)

Total Funds brought forward

at 01 April 2010 (13,945) (17,272)

(31,217)

(17,435)

Total Funds carried forward

at 31 March 2011

All activities are continuing operations. There are no recognised gains or losses other than those

those above.

The notes on pages 40 to 66 form an integral part to these financial statements.

Restricted

funds

Unrestricted

funds

Incoming resources from

charitable activities

Restricted Income from Regional MLAs

10,165

(

648

)

9,517

(

13,782

)

(

3,780

)

(

17,920

)

(

21,700

)

(

31,217

)

The Museums, Libraries and Archives Council

Consolidated Balance Sheet as at 31 March 2011

Notes

£'000 £'000

Fixed assets

Tangible assets 14a

270

485

Current assets

Debtors 15

1,413

2,633

Cash at bank and in hand

1,660

8,184

Short term deposits

699

1,362

3,772

12,179

Liabilities

15,550

26,472

Net current (liabilities) (11,778)

(14,293)

(13,808)

Provisions for liabilities and charges 19

(10,036)

(16,522)

Net (liabilities) (21,544)

(30,330)

Represented by reserves:

Restricted funds

(18,317)

(16,385)

Unrestricted funds:

General funds 21

(3,227)

(13,945)

Total charity funds (21,544)

(30,330)

2011

Creditors: amounts falling due within

one year

(11,508)

Total assets less current liabilities

2010

The notes on pages 40 to 66 form an integral part to these financial statements.

Approved by the Board of Trustees and signed on their behalf:

Paul Lander Andrew Motion

Accounting Officer and Acting Chief Executive Chair of the Board of Trustees

The Museums, Libraries and Archives Council

12 July 2011

The Museums, Libraries and Archives Council

Compan

Balance Sheet as at 31 March 2011

Notes

£'000 £'000

Fixed assets

Tangible assets 14b

270

485

Current assets

Debtors 15

1,551

3,007

Cash at bank and in hand

382

4,220

1,933

7,227

Liabilities

20,631

38,057

Net current (liabilities) (18,698)

(30,830)

(30,345)

(3,272)

(872)

Net (liabilities) (21,700)

(31,217)

Represented by reserves:

Restricted funds

(17,920)

(17,272)

Unrestricted funds:

General funds 21

(3,780)

(13,945)

Total charity funds (21,700)

(31,217)

2010

2011

Creditors: amounts falling due within

one year

Total assets less current liabilities

Provisions for liabilities and charges

(18,428)

The notes on pages 40 to 66 form an integral part to these financial statements.

Approved by the Board of Trustees and signed on their behalf:

Paul Lander Andrew Motion

Accounting Officer and Acting Chief Executive Chair of the Board of Trustees

The Museums, Libraries and Archives Council

12 July 2011

The Museums, Libraries and Archives Council

Consolidated and Company Cash Flow Statement for the year ended 31 March 2011

Consolidation Company

2010/11 2010/11

2009/10 2009/10

Notes

£'000 £'000

£’000 £'000

Net cash (outflow) from

operating activities

23a

(7,222) (3,850)

(16,448) (16,517)

Return on investments and

servicing of finance

23b

35 12

80 62

Capital expenditure and

financial investment

23b

(45) (45)

(Decrease) in cash & short term

deposits

23c,d

(7,187) (3,838)

(16,413) (16,500)

The notes on pages 40 to 66 form an integral part to these financial statements.

The Museums, Libraries and Archives Council

Notes to the financial statements

1 Accounting policies

(a) Basis of accounting

The financial statements have been prepared under the historical cost convention. They meet the

requirements of the Companies Act 2006 and the Statement of Recommended Practice on Accounting and

Reporting by Charities (2005) and applicable accounting standards. The financial statements also provide

additional information in order to comply with the disclosure requirements of the Government Financial

Reporting Manual (FReM).

On 26

July 2010 the Secretary of State for Culture, Olympics, Media and Sport announced that the MLA

would be wound up and its functions transferred to other organisations by 2012. MLA received sufficient

Grant in Aid in 2010/11 for it to carry out a full programme of activity and during 2011/12 it will receive

sufficient Grant in Aid to enable it to progressively reduce its activities, transfer key functions and staff to

Arts Council England and then commence winding up. Management and Trustees current expectation is

that operations will cease by March 2012 with MLA commencing voluntary liquidation during 2012 but the

timetable for this has not yet been agreed with DCMS. DCMS has advised Trustees that at the time of the

Spending Review, the Department made budgetary provision for the orderly closure of the MLA and that the

Department will continue to support the MLA financially through its wind-down and to ensure a solvent

liquidation.

After consideration of the circumstances described above MLA has decided that it is no longer appropriate

to adopt the going concern basis in preparing its annual report and financial statements. Whilst Trustees

can rely upon the assurances given by DCMS with regards to future funding the MLA will only continue in

operational existence for approximately 9 months after the date of this report.

In order to reflect this change in the basis upon which the financial statements are being prepared the

expected useful lives of fixed assets have been reduced as they will have no value after 31 March 2012 –

see note 1f. In addition, as MLA is no longer a going concern, provisions have been recognised for

outstanding property lease liabilities and the cost of severance payments to staff leaving by redundancy, as

disclosed in note 18.

(b) Consolidated accounts

During 2007/08, the MLA undertook a complete review of all its operations, including those of the regional

agencies for which it provided significant funding. This review concluded that the existing structure of

regional agencies was not efficient and a new structure was developed which continued the regional reach

but did not necessitate the maintenance of separately constituted regional agencies. As a consequence of

this decision, the first eight of the regional agencies ceased operations by 31 March 2009 and the ninth,

Museum, Libraries and Archives London, by 31 March 2010.

The Trustees consider that MLA has exercised dominant influence over first eight regional agencies since

31 March 2009 and the ninth agency since 24 March 2010. Therefore the results for the first eight agencies

detailed below, have been consolidated on a line-by-line basis in the Statement of Financial Activities and

Balance Sheet for both the current and previous years. In the previous year the results for the ninth

agency, MLA London, were only consolidated in the Balance Sheet.

Museums, Libraries and Archives Council, East of England

Museums, Libraries and Archives East Midlands

Museums, Libraries and Archives North East

Museums, Libraries and Archives North West

Museums, Libraries and Archives South East

Museums, Libraries and Archives South West

MLA West Midlands: The Regional Council for Museums, Libraries and Archives

Museums, Libraries and Archives Yorkshire

Museum, Libraries and Archives London

The Museums, Libraries and Archives Council

Notes to the financial statements

MLA accounts for all Grant in Aid income on a cash received basis. All other income from DCMS or other

sources is accounted for on a receivable basis when all conditions within the relevant funding agreement

have been met. If funding is received in order that it may be used to finance activities undertaken in a

future period it is shown as deferred income.

MLA and DCMS agreed that the cash held by MLA at 31 March 2010 (£4,220k) was in excess of that

required by the MLA for its immediate cash flow needs by £3,700k and that for a Non Departmental Public

Body to hold cash reserves of this magnitude is not consistent with Treasury guidance for managing public

money. This excess (£3,700k) was repaid to DCMS in May 2010 by offsetting it against Grant in Aid drawn

down.

(d) Resources expended

Grant awards are charged to the Statement of Financial Activities in the year in which the award is made

(unless payment of the award is conditional on some uncertain future event). The exception to this is the

V&A Purchase Grant Fund which is administered on MLA's behalf by the Victoria and Albert Museum.

Grants awarded from this fund are charged to expenditure in the year in which the grants are paid. All other

resources expended are charged to the Statement of Financial Activities on an accruals basis.

Resources expended, excluding governance costs and exceptional items are analysed against MLA's four

strategic aims:

• To assist those responsible for funding and leading museums, libraries and archives to oversee

constant improvement and increased responsiveness to local needs.

• To enable museums, libraries and archives to increase their contribution to learning and skills

development in order that individuals have improved life and employment opportunities.

• To enable museums, libraries and archives to make an increasing contribution to their local

economies and communities.

• To be a highly effective organisation providing clear leadership and strong advocacy for the

sector, respected and valued by all that we work with.

An analysis by type of expense is included in the notes to the financial statements. Costs are directly

attributed to the activity on which they are incurred whenever possible.

When this is not possible they are allocated on the basis of informed estimates. Costs grouped under the

heading governance relate to the Board of Trustees and legal advice and internal and external audit

services procured to ensure that the Board is properly able to satisfy its statutory obligations. Support costs

incurred on the management and administration of grant programmes are allocated pro-rata to the value of

grant awards attributed to each activity. Other support costs are allocated pro-rata to the value of other

direct expenditure attributed to each activity.

All costs charged to the Statement of Financial Activities include VAT, where appropriate. Any VAT

recovered is credited back to operating activities when received.

(e) Fund accounting

Funds are classified as either unrestricted or restricted.

(i) Unrestricted funds

General funds are made up of accumulated surpluses and deficits on financial activities. They are available

for use at the discretion of the Trustees in furtherance of MLA's objectives. Designated funds are monies

set aside from general funds for specific purposes at the discretion of the Trustees.

The Museums, Libraries and Archives Council

Notes to the financial statements

The purpose and any application of designated funds are set out in the notes to the financial statements.

Unrestricted funds are MLA's reserves and are managed in accordance with the MLA's reserves policy.

(ii) Restricted funds

These are funds subject to specific constraints on their use imposed at the time that the funds were

awarded to MLA or subsequently effectively constrained by their application on investment in operational

fixed assets. Funds arising from the acquisition of subsidiaries have been treated as follows:

- Funds common to the subsidiaries and MLA have been consolidated in the consolidated financial

statements.

- Funds created from income received other than from MLA have been separately maintained and will

be disbursed in accordance with the original terms specified by the funding provider, reimbursed to

the funding provider or redeployed to similar activities with the agreement of the funding provider,

- Funds which were specific to a geographical area have been separately maintained.

(f) Tangible and Intangible Fixed assets

Fixed assets are stated at historic cost. Items with a value of less than £1,000 are charged to expenses in

the year of acquisition. Depreciation is charged on all fixed assets on a straight line basis at rates calculated

to write down the cost of these assets to their estimated net residual value, if any, at the end of their

expected useful lives. Leasehold improvements are capitalised and depreciated over the period of the

lease. The expected useful lives of key groups of tangible fixed assets are:

Software (Intangible) Three years

Computer equipment Three years

Office equipment, fixture and fittings Five years

Leasehold Improvements Terms of the lease(s)

Expected useful lives and anticipated residual values are reviewed on an annual basis and revised if there

is any change in operating circumstances or market values. In accordance with note 1a, the remaining

useful lives of all assets have therefore been determined to cease at 31 March 2012.

(g) Leases

MLA has no finance leases. The cost of operating leases is charged to the Statement of Financial Activities

relating to the term of the lease remaining until break clauses; a provision made in accordance with note 1a.

(h) Pension costs

Company Scheme: Members of MLA staff are eligible to join the Principal Civil Service Pension Scheme.

This is an unfunded multi-employer defined benefit scheme and MLA is unable to identify its share of the

underlying assets and liabilities. The Scheme Actuary (Hewitt Bacon Woodrow) valued the scheme as at

31 March 2007. Details can be found in the resource accounts of the Cabinet Office and at

www.civilservice.gov.uk/pensions

Subsidiary company pension arrangements: Staff members of the subsidiary companies were entitled to

join defined benefit pension schemes as follows:

Museums, Libraries and Archives Council, East of England: Oxfordshire County Council Pension Fund

Museums, Libraries and Archives East Midlands: Nottinghamshire County Council Local Government

Superannuation Scheme

Museums, Libraries and Archives North East: Tyne & Wear Pension Fund,

Museums, Libraries and Archives North West: Greater Manchester Pension Fund

Museums, Libraries and Archives South East: Oxfordshire County Council Pension Fund

Museums, Libraries and Archives South West: Avon Pension Fund

Museums, Libraries and Archives West Midlands: West Midlands Pension Fund

Museums, Libraries and Archives Yorkshire: West Yorkshire Pension Fund

Museum, Libraries and Archives London: Oxfordshire County Council Pension Fund

The Museums, Libraries and Archives Council

Notes to the financial statements

These subsidiaries have all ceased trading and all employees who did not transfer to MLA have been made

redundant or transferred to third parties. Provision for the liabilities arising from the cessation of

membership of these schemes has been made in the accounts of the subsidiaries. As each subsidiary is

engaged in withdrawing from membership of their pension arrangements it is not appropriate to base these

provisions on FRS 17 valuations. The provisions are therefore based upon actuarial advice as to the exit

charges likely to be levied by the individual pension schemes which are significantly higher than the deficits

arising from previous FRS 17 valuations. Further details are included in notes 13 and 19 of these financial

statements and the accounts of the subsidiaries.

(i) Provisions

Provision is made for liabilities which the Trustees know will arise in future periods but for which there is

uncertainty about the amount or timing. The amount provided is based on the best information available as

to the likely cost, including when appropriate advice from suitably qualified professionals, with allowance

made for inflation, where material. In addition, as MLA is no longer a going concern, provisions have been

recognised for outstanding property lease liabilities and the cost of severance payments to staff leaving by

redundancy, as disclosed in note 18.

2 Voluntary income

Unrestricted

funds

Restricted

funds

Total

funds

Total

funds

2010/11 2010/11

2010/11

2009/10

Com

£’000 £’000

£’000

DCMS Grant in Aid for:

Core activities 15,971 3,247

19,218

11,500

Renaissance 0 46,336

46,336

30,765

Total Company voluntary income

15,971 49,583

65,554

42,265

Subsidiaries’ income 0 0

Total Consolidated voluntary income

15,971 49,583

65,554

42,265

3 Investment Income

Unrestricted

funds

Restricted

funds

Total

funds

Total funds

2010/11 2010/11

2010/11

2009/10

£'000 £'000

£'000

Company

Interest receivable on short term bank deposits

Subsidiaries

Interest receivable on short term bank deposits

Total Consolidated investment income

926

The Company restricted fund interest was earned on the balances of Renaissance, Strategic

Commissioning and Gates Foundation funds.

023

The Museums, Libraries and Archives Council

Notes to the financial statements

4 Consolidated & Company Incoming resources from charitable activities

Unrestricted Restricted

Total

funds funds

funds

2010/11 2010/11

2010/11

2009/10

Specific grants

£’000 £'000

£'000

Big Lottery Fund – Community Libraries 0 0

(9)

Big Lottery Fund: Their Past Your Future 0 30

366

BIS Festival of Learning 0 0

500

Controversial Stock 0 0

DCMS Framework for the Future 0 0

DCMS Kids in Museums 0 0

DCMS Strategic Commissioning 0 1,970

1,970

1,792

Designing Libraries 10 0

Entitle 0 3

Find Your Talent - West 0 (46)

(46)

Living Places External 0 0

159

Living Places Partnership 0 228

228

LCIP 0 303

303

Their Past your Future 0 (105)

(105)

New Ways of Curating 21 0

Other 44 (44)

Total Company Incoming resources from

charitable activities

75 2,339

2,414

3,010

Grants and rental income received by

subsidiaries

087

Total Consolidated incoming resources

75 2,426

2,501

3,010

The Museums, Libraries and Archives Council

Notes to the financial statements

5 Incoming resources from charitable activities analysed by charitable activity

Unrestricted

funds

Restricted

funds

Total

funds

Total

funds

2010/11 2010/11

2010/11

2009/10

£'000 £'000

£'000

Assist the sector’s leaders to oversee

constant improvement and responsiveness to

local needs

2477

479

417

Enable the sector to increase its contribution

to learning and skills development

33 870

903

1,195

Enable the sector to make an increasing

contribution to local economies and

communities

37 741

778

847

Provide clear leadership and strong advocacy

for the sector

3339

342

551

75 2,427

2,502

3,010

Consolidation

Unrestricted

funds

Restricted

funds

Total

funds

Total

funds

2010/11 2010/11

2010/11

2009/10

£'000 £'000

£'000

Assist the sector’s leaders to oversee constant

improvement and responsiveness to local needs

2 453

455

417

Enable the sector to increase its contribution to

learning and skills development

33 863

896

1,195

Enable the sector to make an increasing

contribution to local economies and

communities

37 691

728

847

Provide clear leadership and strong advocacy

for the sector

3 332

335

551

75 2,339

2,414

3,010

Company

The Museums, Libraries and Archives Council

Notes to the financial statements

6 Consolidated Cost of charitable activities – grants payable

Unrestricted

funds

Restricted

funds

Total

funds

Total

funds

2010/11 2010/11

2010/11

2009/10

£’000 £’000 £’000 £’000

2012 Initiatives 186 0 186 126

24 Hour Museum 170 0 170 207

Acceptance in Lieu 11 0 11 0

ACE National Indicators 11 0 11 0

Action for Archives 67 0 67 75

ALMA Leadership Project 11 0 11 0

Archive Sector Improvement 0 0 0 35

Army Museum Ogilby Trust 0 0 0 (40)

Big Lottery Fund: Their Past Your Future 0 (26) (26) 397

BMAG Capacity Building Pilot 0 31 31 38

Book Ahead 0 0 0 (48)

Building Schools for the Future 14 0 14 15

Campaigns – Make an Impact 0 56 56 61

Clore Foundation 82 0 82 120

Collections Management 0 0 0 225

Collections Trust 166 165 331 165

Community Engagement 18 0 18 0

Corporate Subscriptions 0 0 0 118

Creative & Culture Skills 72 0 72 79

Creative Apprentices in Museums 0 51 51 184

Culture & Sport Improvement Toolkit 0 0 0 37

Culture Unlimited 0 0 0 37

Delivering outcomes for Communities 0 79 79 0

Designation Challenge Fund 192 1,493 1,685 (63)

Developing Governance 8 0 8 0

Digital Programme 70 242 312 14

Diversity (7) 0 (7) 0

Engage – Watch this Space 0 79 79 93

Family Learning 0 0

0 30

Festival of Learning 0 0 0 780

Find Your Talent 296 296 592 2,000

Foundation Degrees 9 0 9 0

Framework for the Future 0 0 0 (123)

Future Libraries 273 65 338 38

Get it Loud Libraries 0 0 0 24

Grants paid by subsidiaries 0 0 0 (8)

IDEA 0 0 0 6

Improvement & Performance 0 0 0 10

Improving Fundraising Capability 0 30 30 0

(table is continued on next page)

The Museums, Libraries and Archives Council

Notes to the financial statements

6 Consolidated Cost of charitable activities – grants payable (Continued)

Unrestricted

funds

Restricted

funds

Total

funds

Total

funds

2010/11 2010/11 2010/11 2009/10

£’000 £’000 £’000 £’000

Information Technology Initiatives 0 0 0 128

Informal Learning Support Fund 0 0 0 65

Inspiring Learning for All 0 0 0 9

Joint Organisation Data Initiative 8 0 8 0

Kids at Museums 0 64 64 30

Legal Deposit Advisory Panel 0 0 0 50

Leadership Learning Programme 0 10 10 52

Learning and skills initiatives 0 134 134 1,027

Lifelong Learning 40 0 40 30

Light Touch Peer Review 12 0 12 2

Living Places 0 52 52 228

Local Authority Museum Programme 0 0 0 32

Local Government 0 0 0 10

Making Sense 0 0 0 20

Michael and Michael Plus 0 0 0 13

Mighty Creatives 0 7 7 0

Monitoring & Auditing 0 0 0 25

Museums at Night 0 0 0 75

National Centre for Stoneage Man 10 0 10 0

National CPD Programme 0 16 16 0

National Council Archives 58 0 58 15

National Culture Forum-Leading Learning 10 0 10 0

National library membership 0 0 0 5

New Ways of Curating 70 0 70 0

Other Renaissance Initiatives 7 56 63 116

Other Restricted 0 0 0 50

Our Sporting Life 0 0 0 120

Portable Antiquities Scheme 344 1,068 1,412 1,380

Positive Steps 0 10

10 0

PRISM 129 0 129 213

Public Catalogue Foundation 0 0 0 200

Reading Agency 158 0 158 0

Regional MLAs 0 0 0 622

Renaissance funding for Hub Museums 0 40,471 40,471 36,211

Renaissance Innovation Fund 0 363 363 340

Renaissance Museum Development 0 948 948 860

Regional Project Activities 178 174 352 75

Schools Participation Database 0 0 0 64

Science Network 0 56 56 64

(table is continued on next page)

The Museums, Libraries and Archives Council

Notes to the financial statements

6 Consolidated Cost of charitable activities – grants payable (Continued)

nres

funds

2010/11 2010/11 2010/11 2009/10

£’000 £’000 £’000 £’000

Security 0 0 0 2

Sundry small grants 24 0 24 76

Supporting Excellence 0 0 0 12

Surveys and Evaluations 0 0 0 216

Take one Picture 0 40 40 37

Teaching outside the Classroom 0 55 55 90

Transforming Community Relationships 81 0 81 0

The British Council 5 0 5 7

UK Joint Forum 0 0 0 10

University of Wolverhampton 0 6 6 0

Visit Britain 8 0 8 0

V&A Purchase Grant Fund 905 0 905 881

Wedgewood Museum 0 0 0 200

Working with Children’s Services 0 30 30 0

Total Consolidated - Grants Payable 3,696 46,121 49,817 48,294

The Museums, Libraries and Archives Council

Notes to the financial statements

6 Company Cost of charitable activities – grants payable

Unrestricted

funds

Restricted

funds

Total

funds

Total

funds

2010/11 2010/11 2010/11 2009/10

£’000 £’000 £’000 £’000

2012 Initiatives 186 0 186 126

24 Hour Museum 170 0 170 207

Acceptance in Lieu 11 0 11 0

ACE Nat’l Indicators 11 0 11 0

Action for Archives 67 0 67 75

ALMA Leadership Project 11 0 11 0

Archive Sector Improvement 0 0 0 35

Army Museum Ogilby Trust 0 0 0 (40)

Big Lottery Fund: Their Past Your Future 0 (26) (26) 346

BMAG Capacity Building Pilot 0 31 31 38

Book Ahead 0 0 0 (48)

Building Schools for the Future 14 0 14 15

Campaigns – Make an Impact 0 56 56 61

Clore Foundation 82 0 82 120

Collections Management 0 0 0 225

Collections Trust 166 165 331 165

Community Engagement 18 0 18 0

Corporate Subscriptions 0 0 0 118

Creative & Culture Skills 72 0 72 79

Creative Apprentices in Museums 0 51 51 184

Culture & Sport Improvement Toolkit 0 0 0 37

Culture Unlimited 0 0 0 37

Delivering outcomes for Communities 0 79 79 0

Designation Challenge Fund 192 1,493 1,685 (63)

Developing Governance 8 0 8 0

Digital Programme 70 242 312 14

Diversity (7) 0 (7) 0

Engage – Watch this Space 0 79 79 93

Family Learning 0 0

0 30

Festival of Learning 0 0 0 780

Find Your Talent 296 296 592 2,000

Foundation Degrees 9 0 9 0

Framework for the Future 0 0 0 (123)

Future Libraries 273 65 338 38

Get it Loud Libraries 0 0 0 24

Grants paid by subsidiaries 0 0 0 (4)

IDEA 0 0 0 6

Improvement & Performance 0 0 0 10

Improving Fundraising Capability 0 30 30 0

(table is continued on next page)

The Museums, Libraries and Archives Council

Notes to the financial statements

6 Company Cost of charitable activities – grants payable (Continued)

Unrestricted

funds

Restricted

funds

Total

funds

Total

funds

2010/11 2010/11 2010/11 2009/10

£’000 £’000 £’000 £’000

Information Technology Initiatives 0 0 0 128

Informal Learning Support Fund 0 0 0 65

Inspiring Learning for All 0 0 0 9

Joint Organisation Data Initiative 8 0 8 0

Kids at Museums 0 64 64 30

Legal Deposit Advisory Panel 0 0 0 50

Leadership Learning Programme 0 10 10 52

Learning and skills initiatives 0 134 134 1,027

Lifelong Learning 40 0 40 30

Light Touch Peer Review 12 0 12 2

Living Places 0 52 52 187

Local Authority Museum Programme 0 0 0 32

Local Government 0 0 0 10

Making Sense 0 0 0 20

Michael and Michael Plus 0 0 0 13

Mighty Creatives 0 7 7 0

Monitoring & Auditing 0 0 0 25

Museums at night 0 0 0 75

National Centre for Stoneage Man 10 0 10 0

National CPD Programme 0 16 16 0

National Council Archives 58 0 58 15

National Culture Forum-Leading Learning 10 0 10 0

National library membership 0 0 0 5

New Ways of Curating 70 0 70 0

Other Renaissance Initiatives 7 56 63 116

Other Restricted 0 0 0 50

Our Sporting Life 0 0 0 120

Portable Antiquities Scheme (PAS) 344 1,068 1,412 1,380

PRISM 129 0

129 213

Public Catalogue Foundation 0 0 0 200

Reading Agency 158 0 158 0

Regional MLA Councils (200) (473) (673) 622

Renaissance funding for Hub Museums 0 40,471 40,471 36,211

Renaissance Innovation Fund 0 363 363 340

Renaissance Museum Development 0 948 948 860

Regional Project Activities 178 174 352 75

Schools Participation Database 0 0 0 64

Science Network 0 56 56 64

(table is continued on next page)

The Museums, Libraries and Archives Council

Notes to the financial statements

6 Company Cost of charitable activities – grants payable (Continued)

Unrestricted

funds

Restricted

funds

Total

funds

Total

funds

2010/11 2010/11 2010/11 2009/10

£’000 £’000 £’000 £’000

Security 0 0 0 2

Social inclusion initiatives 0 0 0 0

Sundry small grants 19 0 19 76

Supporting Excellence 0 0 0 12

Surveys and Evaluations 0 0 0 216

Take one Picture 0 40 40 37

Teaching outside the Classroom 0 54 54 90

Transforming Community Relationships 81 0 81 0

The British Council 5 0 5 7

UK Joint Forum 0 0 0 10

University of Wolverhampton 0 0 0 0

Visit Britain 8 0 8 0

V&A Purchase Grant Fund 905 0 905 881

Wedgewood Museum 0 0 0 200

Working with Children’s Services 0 30 30 0

Total Company - Grants Payable 3,491 45,631 49,122 48,206

Company grants movement summary for 2010/11

2010/11 2010/11

£000 £000

Commitment balances and accruals at 1 April 2010

(19,415)

Grant de-commitments 1,064

New grant commitments (50,186)

Grants charged to income and Expenditure Account (49,122)

Grants paid 56,963

Commitment balances and accruals at 31 March 2011

(11,574)

No grants have been made to individuals.

The Museums, Libraries and Archives Council

Notes to the financial statements

7 Cost of charitable activities (total resources expended)

Improvement Learning Communities Leadership

Total

£’000 £’000 £’000 £’000

£’000

Staff costs (note 10) 3,299 1,016 1,503 1,339

7,157

Consultancies, professional

fees and subscriptions

Other costs 1,996 606 901 811

4,314

Depreciation (note 14a) 100 30 46 41

217

Grants payable (note 6) 22,981 7,059 10,443 9,334

49,817

Total

28,531 8,757 12,963 11,588

61,839

Improvement Learning Communities Leadership

Total

£’000 £’000 £’000 £’000

£’000

Staff costs (note 10) 3,117 944 1,406 1,267

6,734

Consultancies, professional

fees and subscriptions

Other costs 1,977 598 891 803

4,269

Depreciation (note 14b) 101 30 45 41

217

Grants payable (note 6) 22,746 6,883 10,254 9,239

49,122

Total

28,098 8,502 12,667 11,414

60,681

334

Company for 2010/11

157 47 71 64

339

Consolidated for 2010/11

155 46 70

The Museums, Libraries and Archives Council

Notes to the financial statements

7 Cost of charitable activities (total resources expended) – continued

Consolidated for 2009/10

Improvement Learning Communities Leadership

£’000 £’000 £’000 £’000

Staff costs (note 10) 2,682 1,382 1,949 853

6,866

Consultancies, professional

fees and subscriptions

Other costs 816 414 613 494

2,337

Depreciation (note 12) 42 21 31 10

104

Grants payable (note 6) 21,624 7,913 10,296 8,461

48,294

Total

25,705 9,982 13,385 10,055

59,127

Company for 2009/10

Improvement Learning Communities Leadership

£’000 £’000 £’000 £’000

Staff costs (note 10) 2,640 1,340 1,907 839

6,726

Consultancies, professional

fees and subscriptions 540 252 495 236

1,523

Other costs 828 426 625 498

2,377

Depreciation (note 12) 42 21 31 10

104

Grants payable (note 6) 21,609 7,889 10,256 8,452

48,206

Total

25,659 9,928 13,314 10,035

58,936

8 Governance costs

Consolidation Company

2010/11 2010/11

2009/10 2009/10

£’000 £’000

Staff costs (incl’ remuneration

45 45

61 61

Audit and legal fees

111 75

96 63

Internal audit

25 25

32 32

Other costs

19 19

28 27

Total Governance Costs 200 164

217 183

9 VAT Recoverable

VAT amounting to £1,810 (2009/10: £4,083) was recovered during the year.

This has been offset against relevant expenditure.

Total

£’000

Total

£’000

541 252 496 237

1,526

The Museums, Libraries and Archives Council

Notes to the financial statements

10 Staff costs

Consolidation Company

2010/11 2010/11

2009/10 2009/10

£’000 £’000

Wages and salaries

4,568 4,568

4,151 4,045

Social security costs

335 335

352 352

Pension costs

1,326 903

853 829

Temporary staff

928 928

1,510 1,500

Total Staff Costs 7,157 6,734

6,866 6,726

The following numbers of employees (including the Chief Executive) received remuneration

excluding pension contributions within the following ranges:

Company

Consolidation Company

2010/11

2009/10 2009/10

£140,000 to £149,999

£120,000 to £129,000

£90,000 to £99,999

£80,000 to £89,999

£70,000 to £79,999

£60,000 to £69,999

Pension contributions for these employees amounted to £ 201,084 (2009/10: £162,372).

The average number of full time equivalent company employees, analysed by function, was:

2010/11

2009/10

Programme Delivery

29.5

36.7

Field Team

39.1

30.9

Corporate Services

17.9

25.2

Policy and Sustainability

15.7

16.4

Communications & External Relations

7.3

Chief Executive’s/Chairman’s unit

3.5

Total

111.2

120

Temporary staff included in the full time equivalents 17.7 21.2

In both 2009/10 and the prior year all but one of the company employees was accruing

benefits under the defined benefits pension scheme described in note 1h.

Consolidation

2010/11

The Museums, Libraries and Archives Council

Notes to the financial statements

10 Staff costs (continued)

For 2009/10 employer’s contributions of £1,018,748 (2009/10: £793,895) were paid to HM Paymaster

General or reimbursed to organisations seconding staff to MLA. The schemes’ Actuary reviews employer

contributions every four years following a full scheme valuation. The contribution rates are set to meet the

cost of the benefits accruing to be paid when the member retires, and not the benefits paid during this

period to existing pensioners. The rates in force during 2010/11 were:

Staff pay within range Employer contribution rate

£20,500 and under 16.7%

£20,501 to £42,000 18.8%

£42,001 to £72,000 21.8%

£72,001 and over 24.3%

Employees can opt to open a partnership pension account, a stakeholder pension with an employer

contribution. Two employees (2009/10: 1) preferred to maintain their own personal pension arrangements

and the MLA makes contributions at the rate of 8.9% and 20% respectively of their basic salary. During

2010/11 the total cost of these contributions was £27,463 (2009/10: £11,363).

Exit packages paid to employees leaving

Exit package costs band Number of compulsory

redundancies

Number of other

departures agreed

Total number of

exit packages

0 - £10,000 0 (0) 1 (0) 1 (0)

£25,000 - £50,000 0 (0) 1 (0) 1 (0)

Total Number 0 (0) 2 (0) 2 (0)

Total resource cost £’000 0 (0) 37 (0) 37 (0)

Figures in brackets are prior year comparatives

11 Chairman’s and senior managers’ emoluments, Board Members expenses

Full details of the Chairman’s senior managers’ remuneration are included in the Remuneration Report on

page 24. Travel and subsistence expenses reimbursed to 11 Board Members (2009/10: 10) amounted to

£4,566 (2009/10: £5,858).

12 Net incoming/(outgoing) resources before transfers

The increase in consolidated resources of £8,788k (2010: decrease £13,878k) and company

resources £9,517k (2010: decrease £13,782k) are stated after charging:

Consolidation Company

2010/11 2010/11

2009/10 2009/10

£’000 £’000

Depreciation charged – owned assets (note 14)

217 217

104 104

Auditors’ remuneration – external audit fees

111 75

96 63

– internal audit fees

25 25

32 32

13 Subsidiary companies and their activities

During the year MLA controlled the nine companies listed on page 40 as part of the major restructuring

initiative of national activities for Museums Libraries and Archives which commenced in April 2008.

The Museums, Libraries and Archives Council

Notes to the financial statements

13 Subsidiary companies and their activities – continued

These companies’ summarised results and balance sheets are shown below.

Income and Expenditure

for 2010/11

Income Expenditure Net

Funds

b/f

Funds

c/f

£’000 £’000 £’000 £’000 £’000

MLA East of En

land

(

)

21 0 7 7

MLA East Midlands 17

(

)

(

)

19 9

MLA North East 64

(

205

)

(

141

)

150 9

MLA North West

(

2,589

)

2,613 24 5 29

MLA South East 271

(

531

)

(

260

)

277 17

MLA South West

(

2,074

)

2,031

(

)

67 24

MLA West Midlands

(

586

)

474

(

112

)

124 12

MLA Yorkshire 43

(

)

12 3 15

MLA London 141

(

340

)

(

199

)

235 36

Totals (4,734) 4,005 (729) 887 158

£’000 £’000 £’000 £’000 £’000

MLA East of En

land 589

(

)

(

580

)

MLA East Midlands 1,741

(

)

(

1,710

)

(

)

MLA North East 894

(

155

)

(

730

)

-9

MLA North West 591

(

)

(

560

)

029

MLA South East 1,837

(

)

(

1,800

)

(

)

MLA South West 46

(

)

(

)

024

MLA West Midlands 53

(

)

(

)

012

MLA Yorkshire 156

(

)

(

140

)

015

MLA London 1,192

(

)

(

1,150

)

036

Totals 7,099 (177) (6,730) (34) 158

Provisions for

other closure

costs

NetBalance Sheets

at 31 March 2011

Current

assets

Current

liabilities

Provisions for

pension exit

charges

Financial support provided by the MLA

The MLA has given undertakings to each of the subsidiaries that it will provide financial support by way of

additional grant funding in order to enable them to fully discharge their outstanding liabilities. This will

enable the subsidiaries to commence members’ voluntary winding up processes in due course. At the 31

March 2011 the value of these undertakings has been established as that necessary to ensure that each

subsidiary has positive unrestricted reserves and included as a debtor within current assets.

The debtors at 31 March 2011in each subsidiary reflecting this financial support are as follows:

£’000

MLA East of En

land 280

MLA East Midlands 1,410

MLA North East 860

MLA North West 390

MLA South East 1,110

MLA South West 20

MLA West Midlands 40

MLA Yorkshire 40

MLA London 950

Total 5

100

The Museums, Libraries and Archives Council

Notes to the financial statements

14 Tangible Assets

14a Consolidation – Tangible fixed assets

Total

Consolidation

Cost £’000 £’000 £’000

At 1 April 2010 190 55 434 679

Additions 0 0 0 0

Disposals 0 0 0 0

At 31 March 2011

190 55 434 679

Accumulated depreciation

At 1 April 2010 76 48 70 194

Re-classification 31 (33) 0 (2)

Charge for the year 61 24 132 217

Disposals 0 0 0 0

At 31 March 2011

168 39 202 409

Net book value at 31 March 2011

22 16 232 270

Net book value at 31 March 2010 114 7 364 485

The net book value at 31 March 2011 represents fixed assets used for charitable activities

14b Company – Tangible fixed assets

Total

Company

Cost £’000 £’000 £’000

At 1 April 2010 190 55 434 679

Additions 0 0 0 0

Disposals 0 0 0 0

At 31 March 2011

190 55 434 679

Accumulated depreciation

At 1 April 2010 76 48 70 194

Re-classification 31 (33) 0 (2)

Charge for the year 61 24 132 217

Disposals 0 0 0 0

At 31 March 2011

168 39 202 409

Net book value at 31 March 2011

22 16 232 270

Net book value at 31 March 2010 114 7 364 485

The net book value at 31 March 2011 represents fixed assets used for charitable activities

Software

(Intangible)

£’000

Software

(Intangible)

£’000

Fixtures &

Equipment

Leasehold

Improvements

Fixtures &

Equipment

Leasehold

Improvements

The Museums, Libraries and Archives Council

Notes to the financial statements

15 Debtors

Consolidation Company

2010/11 2010/11

2009/10 2009/10

£’000 £’000

Trade debtors

108 91

696 627

Regional Museums, Libraries and Archives

0155

0826

Prepayments and accrued income

228 228

473 144

Other debtors including taxation and social

1,077 1,077

1,464 1,410

1,413 1,551

2,633 3,007

16 Creditors – amounts falling due within one year

Consolidation Company

2010/11 2010/11

2009/10 2009/10

£’000 £’000

Grant and other accruals

11,983 11,964

20,008 19,988

Deferred income (see note 17)

81 81

Grant and trade creditors

3,475 3,475

899 774

Other creditors including tax and social security

11 11

1,784 811

Amounts due to Regional MLAs (see note below)

05,100

0 12,703

Amounts due to DCMS relating to Grant-in-aid

3,700 3,700

15,550 20,631

26,472 38,057

The amounts due to Regional MLAs, totalling £ 5,100k (2009/10 £12,703k), relate to the

commitments given by MLA to each of the subsidiaries to provide additional financial support in

order for them to settle their pension liabilities. The overall liability is based on the pension liability

provisions recognised in the subsidiary accounts. The reduction in the liability has arisen as

follows:

£’000

Creditor at 1 April 2010 12,703

(3,247)

(4,356)

Closing balance as at 31 March 2011

5,100

Decrease in creditors arising from settlements made and

revised valuations to reflect changes in financial markets

MLA's contribution to settlements made in the year

The Museums, Libraries and Archives Council

Notes to the financial statements

17 Deferred income

Consolidation Company

2010/11 2010/11

2009/10 2009/10

£’000 £’000

Opening balance as at 1 April 2010 81 81 104 104

Deferred in current year 0 0 0 0

Released from previous year 0 0 (23) (23)

Closing balance as at 31 March 2011 81 81 81 81

18 Exceptional items

Consolidation Company

2010/11 2010/11

2009/10 2009/10

£’000 £’000

Net movement in creditors and provisions for

pension scheme exit charges

Decrease in creditors due to Regional MLAs

(note 16) 0 (4,356) 0 0

Decrease in provisions for exit charges (note 19)

(5,110) 0 (112) 0

MLA not a going concern adjustments

Provision for redundancies (note 19) 1,144 1,144 0 0

Provision for lease costs (note 19) 1,230 1,230 0 0

Total Exceptional Costs (2,736) (1,982)

(112) 0

The provisions made in previous years for pension scheme exit charges arising from the closure of the

regional agencies in 2009 and 2010 have been revised to take account of actual settlements and changes in

the financial market conditions. This results in the exceptional item for a decrease in the provision (see notes

1h, 13, and 19 for details).

MLA is closing down (see note 1a) and this gives rise to the provisions for redundancies and lease costs.

The Museums, Libraries and Archives Council

Notes to the financial statements

19 Provisions for liabilities and charges – Consolidation

Restructuring Redundancy/ Pension

Total

and lease early retirement Liabilities

costs

£’000 £’000 £’000

£’000

Balance brought forward at 1 April 2010 80 892 15,550

16,522

Balances transferred from subsidiaries 0 0 0

Charged/(released) during the year 1,223 1,428 (5,118)

(2,467)

Utilised during the year (59) (258) (3,702)

(4,019)

Balance carried forward at 31 March 2011 1,244 2,062 6,730

10,036

Provisions for liabilities and charges – Company

Restructuring Redundancy/ Pension

Total

and lease early retirement Liabilities

costs

£’000 £’000 £’000

£’000

Balance brought forward at 1 April 2010 0 872 0

872

Charged/(released) during the year 1,230 1,428 0

2,658

Utilised during the year 0 (258) 0

(258)

Balance carried forward at 31 March 2011 1,230 2,042 0

3,272

The restructuring provision brought forward relates to the closure of the regional agencies. The charge for

the year relates to the change of the basis upon which the financial statements are being prepared.

The redundancy and early retirement provision brought forward relates to contributions that will be made to

the civil service pension scheme in respect of past employees until their retirement date. During the year it

has been increased by the provision for redundancy costs arising from the change of the basis upon which

the financial statements are being prepared. Of the £1,428k charged in the year, £1,144k is classified as

exceptional expenditure (note 18). The remaining £284k relates to staff redundancies which would have

occurred irrespective of the closure of the MLA.

The pension liabilities provision relates to the estimated exit charges for the subsidiaries to leave their local

government association pension schemes. The provisions are based upon actuarial advice but the timing

and exact amount of the settlement will depend upon discussions that are currently ongoing with the

individual pension schemes.

20 Financial commitments

At 31 March 2011 the Museums, Libraries and Archives Council had annual commitments under

operating leases for Land and Buildings as follows:

Consolidation Company

2010/11 2010/11

2009/10 2009/10

£’000 £’000

Expiring in under one year

Expiring in over one year and less than

five years

183 183

13 13

Expiring in more than 5 years

263 263

Total

186 186

276 276

The Museums, Libraries and Archives Council

Notes to the financial statements

21 Statement of funds

Consolidated Statement of funds

April

2010

£’000

£’000 £’000 £’000 £’000

£’000

Restricted Funds

National funds:

2012

(223)

002230

Book Ahead

0000

Bricks

0000

Community Libraries

(9)

0000

(9)

Controversial Stock

0000

Regional MLAs' Pensions

3,247 0 (3,247) 0

Education Challenge Fund

0000

Entitle

2000

Festival of Learning

0(40) 0 0

(40)

Find Your Talent – West

(47) 0 0 0

Fixed asset reserve

485

0 0 (215) 0

270

Gates Foundation

0(71) 0 0

LASSI

0000

LCIP

414 (440) 0 0

(26)

Living Places

(61)

230 (173) 0 0

(4)

Michael

(299)

002990

Michael Plus

00(6)0

Renaissance

(17,640)

45,817 (47,499) 11 0

(19,311)

Strategic Commissioning

580

1,170 (1,441) 0 0

309

Their Past Your Future

114

(82) 7 0 0

University for Industry

0000

Held by subsidiaries

377

1,286 (1,376) 0 0

287

Total restricted funds (16,386)

52,037 (51,033) (2,935) 0

(18,317)

General funds

(13,945)

16,055 (8,272) 2,935

(3,227)

Total all funds (30,331)

68,092 (59,305) 0 0

(21,544)

Transfers between Unrestricted and Restricted funds arise from the MLA providing

support to subsidiary companies in order that they have the resources to meet their

liabilities. Further information is provided at Note 13.

Transfer

from

subsidiary

March

2011

Income Expenditure Transfers

The Museums, Libraries and Archives Council

Notes to the financial statements

21 Statement of funds – continued

Company Statement of funds

1 April 2010

Income Expenditure Transfers

31 March 2011

£'000

£'000 £'000 £'000

£'000

Restricted Funds

2012

(224)

00224

Book Ahead

000

Bricks

000

Community Libraries

(9)

000

(9)

Controversial Stock

000

Regional MLAs' Pensions

3,247 0 (3,247)

Education Challenge Fund

000

Entitle

300

Festival of Learning

0(40) 0

(40)

Find Your Talent - West

(47) 0 0

Fixed asset reserve

485

0 0 (216)

269

Gates Foundation

0(71) 0

LASSI

000

LCIP

456 (440) 0

Living Places External

(5)

000

(5)

Living Places Partnership

(58)

278 (173) 0

Michael

(301)

00301

Michael Plus

00(6)

Renaissance

(17,728)

46,493 (47,889) 9

(19,115)

Strategic Commissioning

172

1,970 (1,433) 0

709

Their Past Your Future

106

(75) 8 0

University for Industry

000

Total restricted funds (17,272)

52,325 (50,038) (2,935)

(17,920)

Unrestricted funds:

General funds

(13,945)

16,055 (8,825) 2,935

(3,780)

Total all funds (31,217)

68,380 (58,863) 0

(21,700)

Funds received from DCMS, other Government Departments, Lottery Funds, the European Union and

charitable trusts are restricted by the terms of the award to specific purposes. These elements are

accounted for within individual restricted funds named to reflect the purposes to which they have been

dedicated. Such incoming resources continue to be accounted for in restricted funds until they have been

fully applied in accordance with the terms of their award, repaid to the donor or the donor explicitly

withdraws the restriction on the use of the funds not yet applied.

Incoming resources which are applied on the acquisition or improvement of fixed assets are accounted for

in the restricted fund, fixed asset reserve. The depreciation and any losses on disposal of fixed assets are

charged to unrestricted funds but a transfer is made each year from the fixed asset reserve to unrestricted

funds in the amount of the depreciation and losses on disposal charged. The fixed asset reserve thus

matches the net book value of fixed assets.

The funds described as “Regional MLAs’ Pensions” are being provided by DCMS specifically to enable

MLA to make contributions to Regional MLA’s in order that they have the funds required to settle their

pension scheme exit charges.

The Museums, Libraries and Archives Council

Notes to the financial statements

21 Statement of funds - continued

Analysis of Consolidated net assets between funds

Unrestricted Restricted

Total

funds funds

funds

2010/11 2010/11

2010/11

2009/10

£'000 £'000

£'000

Fund balances at 31 March 2011 are

represented by:

Tangible fixed assets 0 270

270

485

Current assets 7,039 (3,267)

3,772

12,179

Current liabilities (6,960) (8,590)

(15,550)

(26,472)

Provisions for liabilities and charges (3,306) (6,730)

(10,036)

(16,522)

Total net assets (3,227) (18,317)

(21,544)

(30,330)

Analysis of Company net assets between funds

Unrestricted Restricted

Total

funds funds

funds

2010/11 2010/11

2010/11

2009/10

£'000 £'000

£'000

Fund balances at 31 March 2011 are

represented by:

Tangible fixed assets 0 270

270

485

Current assets 5,650 (3,718)

1,932

7,227

Current liabilities (6,158) (14,472)

(20,630)

(38,057)

Provisions for liabilities and charges (3,272) 0

(3,272)

(872)

Total net assets (3,780) (17,920)

(21,700)

(31,217)

22 VAT, Income and Corporation Taxes

MLA is VAT registered but is only able to recover VAT incurred on or attributable to its very limited business

activities using apportionment methods agreed with HMRC. VAT inclusive costs are charged against the

relevant charitable activity. MLA is accepted by the HM Revenue and Customs as a charity for tax

purposes and is accordingly exempt from Income and Corporation Tax.

The Museums, Libraries and Archives Council

Notes to the financial statements

23 Cash flow information

a) Reconciliation of changes in resources to net (outflow)/inflow from operating activities

Consolidation Company

2010/11 2010/11

2009/10 2009/10

£’000 £'000

Net incoming/(outgoing) resources 8,788 9,517 (13,878) (13,782)

Reserves on acquisition of subsidiaries 0

235

Interest received (note 3) (35) (12) (79) (62)

Depreciation (note 14) 217 217 105 105

Decrease/(increase) in debtors 1,218 1,455 (1,629) (1,969)

Loss on disposal of assets 0 0 133 133

(Decrease) in creditors (10,923) (17,427) (336) (868)

(Decrease)/increase in provisions for

liabilities and charges (6,487) 2,400 (999) (74)

Net cash (outflow) from

operating activities

(7,222) (3,850)

(16,448) (16,517)

b) Analysis of cash flows

Capital expenditure Consolidation Company

Consolidation Company

2010/11 2010/11

2009/10 2009/10

£’000 £'000

Payments to acquire tangible fixed assets 0 0 (45) (45)

(45) (45)

Returns on investments:

Interest received

35 12

80 62

c) Reconciliation of net cash flow to movement in net funds and analysis of net funds

Consolidation Company

2010/11 2010/11

2009/10 2009/10

£’000 £'000

(Decrease)/increase in cash and movement (7,187) (3,838) (16,413) (16,500)

in net funds

Net funds at 01 April 2010 9,546 4,220 25,959 20,720

Net funds at 31 March 2011

2,359 382

9,546 4,220

d) Movement in cash

At 01 April

Cash flow

At 31 March

2010 in year 2011

£'000

Consolidation - Cash at bank and short term

deposits

9,546

(7,187)

2,359

Company - Cash at bank

4,220

(3,838)

382

The Museums, Libraries and Archives Council

Notes to the financial statements

24 Related party transactions

The MLA is an executive Non-Departmental Public Body sponsored by the Department for Culture, Media

and Sport (DCMS). DCMS is regarded as a related party and details of all funding provided by DCMS are

disclosed in notes 2 and 4.

During the year, the MLA had a number of material transactions with other bodies sponsored by DCMS. All

these transactions were conducted in the normal course of business and at full arm's length. The following

DCMS sponsored bodies were awarded grants by the MLA:

British Museum Museum of London

Geffrye Museum Museum of Science and Industry in Manchester

Horniman Museum

The Big Lottery Fund awarded grants to the MLA details of which are included in note 4.

During the year, the MLA entered into transactions with wholly owned subsidiaries; the MLA is taking

advantage of the exemption for disclosing transactions between group members in FRS8 (paragraph 3C).

The following Trustees and key managerial staff are involved in organisations which were awarded grants

by the MLA as listed below. The MLA has procedures in place to ensure that Trustees and key managerial

staff play no part in decisions on the award of grants to organisations with which they are involved.

Grant Creditors

£’000 £’000

Nick Dodd Chief Executive Sheffield Galleries and 1,600 342 240

Museums Trust

Yinnon Ezra Director of Recreation Hampshire County 3,937 651 0

Council

Helen Forde Trustee National Postal Museum 40 0 0

Nancy Bell Head of Collections The National Archive 105 39 0

Grant Creditors

£’000 £’000

Andrew Holden National Postal Museum 40 0 0

Mrs Julie Finch (wife)

Head of Museums and

West

Archives for Bristol City

Museum & Art Gallery

Trustee Position Organisation Debtors

£’000

Senior

Manager

Position Name, relationship & related

party entity

Debtors

£’000

Director of Engagement

Team London

0Jon Finch Director of Engagement

Team

3,515 629

25 Grants payable

A full list of all grants paid in the year ended 31 March 2011 can be found on the MLA website at

www.mla.gov.uk

The Museums, Libraries and Archives Council

Notes to the financial statements

26 Financial instruments

MLA’s use of Financial Instruments is as described below.

Liquidity Risk

The MLA is substantially 81% (2009/10: 93%) funded by Grant in Aid from the Department for Culture, Media

and Sport which is awarded for the current and up to three forward years. Funding is provided on a monthly

basis in order to meet actual cash flow need with MLA being permitted to holding a cash balance of not more

than £500k at the end of any month. As a result MLA is not seriously exposed to any liquidity risks.

Long Term Investments

No long term investments are held.

Interest Rate Risk

As at 31 March 2011, MLA held £382k (2009/10: £4,220k) in cash and bank deposits, of which £382k

(2009/10: £4,220k) was held at floating rates, and the remainder in cash. The Group also held £699k

(2009/10: £1,362k) in short term deposits. MLA is therefore not exposed to significant interest rate risk.

Foreign Currency Risk

MLA is not exposed to foreign currency risk.

27 Post Balance Sheet Events

Roy Clare stepped down as Chief Executive and Accounting Officer on 20 May 2011. Paul Lander was

appointed Acting Chief Executive on 23 May 2011 and Accounting Officer on 3 July 2011.

The financial statements were authorised for issue by the Accounting Officer on behalf of the Board of

Trustees on 14 July 2011.

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