Annual Report 2008-9 - The British School at Rome
Annual Report 2008-9 - The British School at Rome
Annual Report 2008-9 - The British School at Rome
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FINANCIAL REVIEW<br />
F INANCIAL S TATEMENTS<br />
for the year ended 31 March 2009<br />
<strong>The</strong> financial st<strong>at</strong>ements should be read in<br />
conjunction with the reports on pages 3 to 36.<br />
<strong>The</strong> <strong>School</strong>’s normal activity, disclosed under<br />
‘unrestricted funds’ in the st<strong>at</strong>ement of financial<br />
activities, ended the financial year with a deficit<br />
of £97,000 (<strong>2008</strong> — surplus of £ 30,000).<br />
<strong>The</strong> <strong>School</strong> has been severely affected by the<br />
fall in the value of sterling and this in large part<br />
has led to the shortfall of incoming resources in<br />
the period. <strong>The</strong> Director in his report comments<br />
on the steps which have already been taken to<br />
reduce expenditure and the further steps in hand<br />
to review all aspects of the <strong>School</strong>’s oper<strong>at</strong>ions<br />
and activities.<br />
Restricted income includes the major grants<br />
from the Packard Humanities Institute,<br />
principally to fund conserv<strong>at</strong>ion work <strong>at</strong><br />
Herculaneum. <strong>The</strong> movements in restricted funds<br />
are disclosed in note 18.<br />
Council may invest in any securities approved<br />
by law for the investment of trust or charitable<br />
monies, or such other securities as the Council<br />
may from time to time approve. Council has<br />
appointed investment advisers to manage the<br />
<strong>School</strong>’s investment portfolio, with the objective<br />
of maintenance of income and growth. <strong>The</strong><br />
<strong>2008</strong>–9 financial year witnessed unprecedented<br />
turmoil in the financial markets. This has<br />
resulted in a significant reduction in the market<br />
value of the <strong>School</strong>’s investments during the<br />
period and unrealised losses of £436,000 being<br />
recorded <strong>at</strong> 31 March 2009. <strong>The</strong>re has been<br />
some recovery in market values post the<br />
<strong>School</strong>’s financial year end but considerable<br />
uncertainty remains regarding the outlook for the<br />
42<br />
global economy and this appears likely to result<br />
in continuing vol<strong>at</strong>ility in the financial markets.<br />
Unrestricted reserves decreased <strong>at</strong> year end<br />
by £488,000 to £1,923,000, mainly as a result of<br />
the valu<strong>at</strong>ion losses on investments. <strong>The</strong> level of<br />
unrestricted reserves is considered by Council to<br />
be adequ<strong>at</strong>e to meet the immedi<strong>at</strong>e needs of the<br />
<strong>School</strong>. <strong>The</strong> balance on restricted funds may only<br />
be used for the purposes described in note 18<br />
and is not available for the general purposes of<br />
the <strong>School</strong>.<br />
<strong>The</strong> <strong>School</strong>’s reserves comprise general funds,<br />
design<strong>at</strong>ed funds, and restricted funds. Council’s<br />
policy is th<strong>at</strong>:<br />
- design<strong>at</strong>ed funds and restricted funds should<br />
be retained for the specific purposes for<br />
which they were set up<br />
- the level of general funds, after elimin<strong>at</strong>ing<br />
all unrealised revalu<strong>at</strong>ion surpluses, should<br />
not fall below three, nor exceed twelve<br />
months’ core running costs of the <strong>School</strong>.<br />
STATEMENT OF TRUSTEES’<br />
RESPONSIBILITIES<br />
<strong>The</strong> Trustees are responsible for preparing the<br />
<strong>Annual</strong> <strong>Report</strong> and financial st<strong>at</strong>ements in<br />
accordance with applicable law and United<br />
Kingdom Generally Accepted Accounting Practice.<br />
<strong>The</strong> Trustees are required to prepare<br />
financial st<strong>at</strong>ements for each financial year<br />
which give a true and fair view of the st<strong>at</strong>e of<br />
the <strong>School</strong>’s affairs <strong>at</strong> the end of the financial<br />
year and of the <strong>School</strong>’s activities for the<br />
financial year. In preparing those financial<br />
st<strong>at</strong>ements, the Trustees are required to:<br />
- select suitable accounting policies and apply<br />
them consistently<br />
- make judgements and estim<strong>at</strong>es th<strong>at</strong> are<br />
reasonable and prudent<br />
- st<strong>at</strong>e whether applicable accounting<br />
standards and st<strong>at</strong>ements of recommended<br />
practice have been followed, subject to any<br />
departures disclosed and explained in the<br />
financial st<strong>at</strong>ements<br />
- prepare the financial st<strong>at</strong>ements on the going<br />
concern basis unless it is inappropri<strong>at</strong>e to<br />
presume th<strong>at</strong> the <strong>School</strong> will continue in<br />
oper<strong>at</strong>ion.<br />
<strong>The</strong> Trustees are responsible for:<br />
- keeping proper accounting records th<strong>at</strong><br />
disclose with reasonable accuracy <strong>at</strong> any time<br />
the financial position of the <strong>School</strong> and which<br />
enable them to ascertain the financial position<br />
of the <strong>School</strong> and to ensure th<strong>at</strong> the financial<br />
st<strong>at</strong>ements comply with Charities Act 1993<br />
- safeguarding the assets of the <strong>School</strong> and<br />
hence for taking reasonable steps for the<br />
prevention and detection of fraud and other<br />
irregularities<br />
<strong>The</strong> Trustees confirm th<strong>at</strong>, so far as they are<br />
aware, there is no relevant audit inform<strong>at</strong>ion of<br />
which the <strong>School</strong>’s auditors are unaware. <strong>The</strong>y<br />
have taken all the steps th<strong>at</strong> they ought to have<br />
taken as Trustees in order to make themselves<br />
aware of any relevant audit inform<strong>at</strong>ion and to<br />
establish th<strong>at</strong> the <strong>School</strong>’s auditors are aware of<br />
th<strong>at</strong> inform<strong>at</strong>ion.<br />
By order of the Council (Trustees) 22 June 2009<br />
Signed on its behalf by<br />
M.N. Higgin — Honorary Treasurer