Trustees 2011_Layout 1 - Victoria and Albert Museum

the FRIENDS OF THE V&A(A Company Limited by Guarantee)REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED31 MARCH 2011Charity Number: 272056 Company Number: 1267122

CONTENTSReference and administrative informationTrustees’ reportIndependent auditors’ reportStatement of financial activitiesBalance sheetNotes to the financial statements01-0203-2627-2930-3031-3132-37This annual review is available online and has been designed to be printed off inpart or whole as per user requirements. It has been designed to minimise inkusage with the exception of the full page photographic images.the FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p1the FRIENDS OF THEV&A REFERENCE ANDADMINISTRATIVEINFORMATION FORTHE YEAR ENDED31 MARCH 2011PresidentHRH Princess Alexandra,The Hon Lady Ogilvy,KG, GCVOCommittee MembersMarina Vaizey ChairmanBernadette BarberJohn BensonTricia Bey (elected 24 January 2011)John DeardsKenneth Draper (elected 24 January 2011)John Everett TreasurerVivek NandaPrudence Skene (until 24 January 2011)Sarah TytherleighEx Officio MembersThe Director of the Museum or his appointed nomineeThe Director of Public Affairs or his appointed nomineeThe Director of CollectionsThe Director of DevelopmentCompany SecretaryPhilippa OuvryRegistered Charity Number272056Registered Company Number1267122Registered addressVictoria and Albert MuseumSouth KensingtonLondon SW7 2RLAuditorshaysmacintyreFairfax House15 Fulwood PlaceLondon WC1V 6AYBankersCoutts & Co.St Martins Office440 StrandLondon WC2R OQSCafCash Ltd.PO Box 289West MallingKent ME19 4TAthe FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p2Membership TeamHead of Friends and PatronsPhilippa OuvrySenior Membership ManagerMary WillisMembership ManagerEleanor Shakeshaft (to August 2011)Membership Events ManagersRachel Crossley (to July 2011)Alexandra Gibbs (from April 2010 to August 2011)Elizabeth Hipkins (from September 2011)Membership Weekend OfficerRebecca Thomas (part time)Membership OfficerElizabeth Hipkins (to September 2011)Financial AccountantKrissie Chambers (part time)As always, we should like to thank all ourvolunteers for the immense amounts of time andhard work that they donate to the smoothrunning of the Friends of the V&A. More than60% of our new Memberships now come via theMembership Desk, and we also rely on volunteersto assist with our events and a great deal of officeadministration. We are very grateful to you all.V&A Membership is run by the Friends of the V&A.Events CommitteeBernadette Barber ChairmanGreta ChafferElizabeth HamiltonSarah TytherleighMarina VaizeyJoseph WatsonEvent Leaders and Event Ideas GroupSusannah Harrison ChairmanBernadette BarberSusie BlundellGreta ChafferJean ChippindaleGwenda ConstantKenneth DraperJoanna EnglishCaroline GarveyElizabeth HamiltonKaroline JoinerChristine KentRosemary LoweNaseem Malik-NoorJennie MossLiz RogersSusie RoseJacqueline ShimmingsSarah TytherleighJeanne WadvaniChristina WattsVolunteersKenneth Draper Trustee RepresentativeStefanie AgarBernadette BarberPenny BardoniSusan BellSue BicknellDerek BirdJenny BorthwickClare BowringDebbie BransgroveMarie-Therese BuneHelen BurnardNucia ButterworthToni CampbellClare CharlesBel ClarkeKelly CollinsGwenda ConstantAnne CornwellStevie CudlipTerri DaintyJohn DeardsGiles DimockBarbara DomanskaSasiwimol DuqueZoe Dwek-AdamsAlison FarthingHui FengNicky FennMaria FoxRuth GimletteBrian GovettEdna GreenLorna HanmanSusannah HarrisonJean HeathDana HepburnCharlotte Holdsworth HuntTamara HuntAnnie HunterSusan KeenesChristine KentSarah KentKelly KnappMarianne LandauKathryn LeaningWilliam LoschertBeatriz LutyensFiona MacWattersNaseem Malik-NoorMargaret MaloneJane MedcalfKaren MortonElizabeth NichollsJulia NicholsonSiew OngElizabeth OylerSunila RadhakrishnanJayne RalstonBarry RedheadMargaret ReynoldsAnn RichardsJoanna RobinsJacqueline SavilleJurgen Paul SchmitzDinah ShoultsAnjani SinghElizabeth SingletonAnn M SmithMargaret StablesHarry SternHelen SumnerEric TaylorJeanne WadvaniChristina WattsRodney WelhamPatricia Williamsthe FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p3From Left:Orla Kiely discussed her vibrant prints at theV&A © Orla Kiely / Octopus Publishing GroupFrederic Leighton, Pavonia, 1858–59.Private Collection c/o Christie’sThe Cult of Beauty: Aestheticism 1860 – 1900,from 2 April – 17 July 2011Adam Fuss Invocation, 1992. Dye destructionprint, Victoria and Albert Museum, London© Courtesy of Adam Fuss/V&A ImagesLydia Sokolova, Anton Dolin, BronislavaNijinska, and Léon Woizikowsky in costumesfor Le Train Bleu designed by Chanel.Photo: Sasha1924Yinka Shonibare, Climate S*** Drawing 1,2008 © Yinka Shonibarethe FRIENDS OF THE V&A(A Company Limited by Guarantee)REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2011The Trustees, who are also directors of thecharity for the purposes of the Companies Act2006, have pleasure in submitting their annualreport and the audited financial statements forthe year ended 31 March 2011the FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p4OBJECTIVESANDACTIVITIESthe FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p5The object of the Friends of the V&Ais to encourage, foster, assist andpromote the charitable work andactivities of the Victoria and AlbertMuseum or of any other art gallery ormuseum (which is not conducted forprivate profit and to which the publichave access as of right) selected bythe Committee of Association, for thebenefit of the public at largeThe Trustees have agreed three principalaims and objectives:• To support the V&A and its branch museumsthrough grants of money• To increase loyalty and visits to the V&A andits branch museums• To increase and spread knowledge of the V&A(and branch museums) and its workIn supporting the V&A, the Friends ofthe V&A support its mission, and its ownstrategic objectives:V&A MissionAs the world’s leading museum of art anddesign, the V&A enriches people’s lives bypromoting the practice of design andincreasing knowledge, understanding andenjoyment of the designed worldV&A key strategic objectives• To provide optimum access to collections andservices for diverse audiences, now and inthe future• To be acknowledged and respected as theworld’s leading museum of art and design• To promote, support and develop the UKcreative economy by inspiring designers andmakers, and by stimulating enjoyment andappreciation of design• To operate with financial and organisationalefficiencyJoe Cesare Colombo, Model 4801,1963 © V&A ImagesFrom the Members’ Week eventCreating the Furniture Galleriesthe FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p6The Trustees have had due regard to theCharity Commission guidance on publicbenefit in developing an ongoing strategy tomaximise support, loyalty and knowledge ofthe Victoria and Albert Museum, and, inparticular, they have considered how thecharity's activities will contribute to itscharitable aims and objectivesThe fulfilment of the aims andobjectives relies on thesupport and loyalty of ourMembers. At the end of thisfinancial year, Membershipnumbers were at their highestever: 28,232 Members (16,024Memberships), and continueto increase. Members’ Weekwas introduced in May 2010 asa new initiative to highlightthe benefits of Membership toa wider audience. An extensiveprogramme of talks, craftdemonstrations, tours andother activities filled the Week– for a taster, have a look at ourfilm online on V&A Channel.We hoped that the Weekwould thank our Members fortheir support and encouragethem to try different Members’activities, and also that itwould show non-Memberswhat they were missing andencourage them to join. Theinaugural Members’ Week wasa great success, and led to asecond which ran from14 – 20 May 2011.28,232The inaugural Members’Week was a great success,and led to a second whichran from 14 – 20 May 2011At the end of this financial year, Membershipnumbers were at their highest ever: 28,232Members (16,024 Memberships), andcontinue to increasethe FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p7ACHIEVEMENTSANDPERFORMANCEthe FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p8SupportThe Friends of the V&A were ableto increase their support thisyear, giving £301,304 as grants in2010/11 and designating a further£291,795. As always, the Friendsof the V&A have prioritisedsupport for acquisitions,scholarships, research and theV&A public programme.During 2010/11, the Friends ofthe V&A agreed grants towardsExhibitions and Capital Projects£150,000 in support of Postmodernism(designated funds)£10,000 in support of Ai Weiwei exhibitionInstallations£100,000 Up to £100,000 to fund Magic Lantern byMat Collishaw, a new commission for the V&A’s crowncupola and John Madejski garden (designated funds)Scholarships and research£21,000 Funding for a student undertaking theV&A / RCA MA in the History of Design of £21,000Ongoing support for a curatorial exchange betweenthe V&A and the Metropolitan Museum in New YorkOngoing support for a student scholarship atthe Attingham Summer School(www.attinghamtrust.org)ResidenciesTop: Ai Weiwei, Han Dynasty Urn with Coca Cola logo, 1994. Private Collection USACentre: Mat Collishaw, Magic Lantern, 2010 © Mat CollishawBottom: Mat Collishaw, Magic Lantern, 2010 © V&A Images£20,494 Photography residency in theSackler Centre for arts education – fully funded,with a grant of £20,494the FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p9£30,000Sakuhin by YagiKazuo – £30,000towards the total£27,946A very rare gem-setOttoman jadetankard – £27,946towards the totalAcquisitions£154,160 Total allocated to acquisitions.Further sums of money were designated towardsfuture acquisitions, for details, see note 14 to theaccounts, on page 37. Pieces acquired by the V&Aare available for the benefit of the general public,either on open display or through the V&A’sarchive facility at Blythe House.£3,100Odette fruit bowland Isotta bowl byBořek Šípek – fullyfunded, with agrant of £3,100£25,103Concrete Stereoby Ron Arad –fully funded, witha grant of £25,103£10,000Pieces from COLLECT - £10,000 forthe Museum to make their choice ofacquisitions from the fair£43,038Totem by EttoreSottsass – fullyfunded, with agrant of £43,038£3,816Swan Lake costumeworn by RudolfNureyev – fullyfunded, with agrant of £3,816£11,157Pratt Chair by Gaetano Pesce –fully funded, with a grant of £11,157the FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p10Reconciliation of OperationalResult to Statement ofFinancial Activities£301,304The Friends of the V&A were able toincrease their support this year,giving £301,304 as grants in 2010/11and designating a further £291,795Resources expended (extract) Supported in Unused Designated in Total Activity Designated2010-11 Grants 2009-10 and as per SOFA in 2010-11now paidCharitable activities:Supporting the V&A MuseumExhibitions & Capital Projects 10,000 - 100,000 110,000 150,000Installations - - - - 100,000Acquisitions 154,160 - - 154,160 -Scholarships and research 21,000 (4,350) - 16,650 -Residencies 20,494 - 20,494 -£205,654 £(4,350) £100,000 £301,304 £250,000the FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p11William Powell Frith, Charles Dickens, 1859.This painting of Charles Dickens can be found in the British Galleries, room 122c.We are also hugely grateful to all those Members who supportedthe V&A’s successful Charles Dickens appeal with a personaldonation and to all of you who have chosen to remember theMuseum with a legacy in your Wills. If you would like moreinformation about how to support the V&A in this way, pleasecontact Roger Cooper, Legacies and Appeals Manager, on020 7942 2716 or legacies@vam.ac.ukLoyalty and knowledgeV&A Members receive theV&A Magazine, which –together with film websiteV&A Channel, also producedby Cultureshock Media –updates on V&A exhibitions,developments and events. Allnew Members are invited tojoin us for a free WelcomeTour of the Museum, to learnmore about its variedcollections and publicprogramme. We hope that,together with the extensiveprogramme of Members’events, these enable allMembers to feel involved withand knowledgeable about theMuseum.Looking to the futureMembership numbers are attheir highest-ever level. Wehope to maintain these highnumbers and the resultinghigh levels of support for theV&A. Our future strategyplans to capitalise on theV&A’s successful programmesand to ensure loyalty ofexisting Members duringquieter periods. We aim tomake V&A Membership amust-have culturalmembership for London.The Trustees of the Friends of the V&Awould like to thank all V&A Members fortheir ongoing support of the Museumthe FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

Postmodernism: Style andSubversion 1970 to 1990“When the exhibition 'Postmodernism:Style and Subversion, 1970 to 1990' opensin September 2011, the Museum and itsvisitors will have ample reason to thankthe Friends of the V&A. In addition toproviding lead support for the project, theFriends have also supported theacquisition of five key works which will beincluded in the displays. First up is aceramic Totem by the Italian designerEttore Sottsass. This unique handmadeobject is an early investigation intopostmodern symbolism, ornament andpattern, anticipating Sottsass'sgroundbreaking work with the designgroup Memphis by over fifteen years. Thesection of the exhibition entitled'Apocalypse Then' - about post-industrialdesign in the early 1980s - will include twofurther recent acquisitions supported bythe Friends: a 'Concrete Stereo' by Britain'smost famous designer, Ron Arad; and aversion of the 'Pratt Chair' by anotherItalian, Gaetano Pesce. Though using verydifferent materials - smashed reinforcedconcrete and poured plastic resin - the twopieces are similar in their energeticdestructive aesthetic. Finally, two designsby the Czech emigre Bořek Šípek , one inglass and the other a silver-mountedceramic bowl, will demonstrate theproliferation of postmodern ideas. Takentogether these five objects tell the historyof postmodernism in miniature, chartingthe progression from early explorations ofcolour to vivid, confrontational objects to amore luxurious style appropriate to theboom times of the 1980s.”Glenn Adamson, Co-curator,Postmodernism: Style andSubversion 1970-1990Totem by Ettore Sottsass. Purchase funded by the Friends of the V&A

Metropolitan Museum exchange programmeThe Friends of the V&A havesupported this valuableprogramme since its inception in2002, since when 7 V&A curatorsand 6 Metropolitan Museumcurators have benefited from itsunique opportunities. The Friendsgrant covers the living expenses forthe V&A curator while in New York.Here’s what some previousrecipients have to say abouttheir experience“I am enormously grateful forhaving had the opportunityto spend more than a monthworking in libraries(something I have not donefor a very long time). Whilemuch of my research [on thehistory of plywood] will sit inthe background of myexhibition, it is essential forproviding the foundation forthis under-researchedsubject. My sincere thanks tothe Friends of the V&A forhaving supported myexchange and for the supportof my colleagues, whichmade my participation onthe exchange possible.”Christopher Wilk, Keeper,Furniture, Textiles andFashion, exchangeparticipant 2010"Being the fortunaterecipient of the V&A /Metropolitan Museum of Artcuratorial exchangefellowship in 2007, I was ableto make a start on thenecessary revision andmarshalling of the materialfor the first volume of a newcatalogue of the V&A'smedieval ivory carvings.Thanks to the invaluablesupport of the Friends of theV&A, this has now come tofruition, being published inAugust 2010."Paul Williamson, Keeper,Sculpture, Metalwork,Ceramics and Glass,exchange participant 2007“The Met exchange gave methe chance to have adedicated time and space tofocus on the research for mybook, Islamic Arts from Spain(V&A Publishing, 2010).Though I had been taking aresearch day a week, thismonth in New York reallyallowed me to focus on thebook without any otherdistractions, to use thefantastic resources of theWatson Library to chase uppublications I could not easilyfind in London, and to start toplan my chapters and imageselection in detail. I also usedthe Met as a base from whichto visit other importantmuseum collections andmeet with Americancolleagues, to make andrenew professionalacquaintances. It was afantastic opportunity, and areal privilege.”Mariam Rosser-Owen,Curator, Asian Department,exchange participant 2008

PhotographyresidencyThis year, the Friends’ trusteeshave chosen to direct moresupport towards the V&A’sLearning programmes, particularlythose based in the state-of-the-artSackler Centre for arts education.This year’s recipient of Friendsfunding was Bettina von Zwehl.“Being the V&A's first photography- artist in resident was a specialhonor, I was able to extensivelyresearch the collection of portraitminiatures which had a profoundimpact on my practice. Thanks tothe invaluable support of theFriends of the V&A, this has beenthe most wonderful experience inmy artistic career to date.”You can hear more about Bettina’swork online: visitwww.vam.ac.uk/channel andsearch under her name.Made up love song - part 7 © Bettina von Zwehl

p15STRUCTURE,GOVERNANCE ANDMANAGEMENTthe FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p16The Friends of the V&Ais a charitable company limited byguarantee, set up in 1976. It is anindependent charity established with itsmain object, as stated above, to assistthe Victoria and Albert Museum byproviding financial donations andthrough voluntary work. It is governedby a Memorandum and Articles ofAssociation which were last amended atthe AGM in December 2007Applications for Trusteeship,that is membership of theExecutive Committee, aresought through advertisementin the V&A Magazine orthrough special introduction,and considered by a designatednominations sub-committee inthe first instance.Enjoying the Madejski GardenCandidates are sought fortheir specific skills andexperience. Trustees serve asExecutive Committeemembers for a three-yearperiod and may be re-electedfor a further three-yearperiod. The Trustees meetquarterly, or as required,overseeing the objectives setout above. In order to informTrustees of theirresponsibilities, Trustees arecirculated with the CharityCommission booklet‘Responsibilities of TrusteesCC3’ and a Trustees’ Handbookprepared by the MembershipOffice. In view of the size ofthe trust and its resources, theTrustees are wary of devotingfunds to expensive trainingprogrammes, but keep theneed for trustee trainingunder review and respond toany particular request that atrustee may have in thisregard. The Committee iscomposed of a minimum offour members and four exofficiomembers from theMuseum: the Director of theV&A (or representative), theDirector of Public Affairs (orrepresentative), the Directorof Collections, and theDirector of Development, plusthe Head of Friends andPatrons (Company Secretary).the FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p17Our currenttrustees areMarina Vaizey, Chairman Marina Vaizey read history at Harvard andCambridge, and has been an art critic for over forty years for various publications, including fouryears for the Financial Times and eighteen for the Sunday Times. She edited the Art Quarterly andannual review for the National Art Collections Fund, and has been a member of the Arts Council,the Crafts Council and the Visual Arts Advisory Committee of the British Council, a school and artcollege governor, a judge for the Turner Prize, and a trustee of National Museums Liverpool, theSouth Bank, London Open House, the Geffrye Museum, the National Army Museum, and theImperial War Museum. She is currently on the Council of the Friends of the Imperial War Museum, atrustee of new educational charity The Musical Brain, and continuing to write and lecture. Marinahas curated several exhibitions and written several books. She was awarded a CBE in the 2009Birthday Honours list.John Everett, Treasurer John Everett is a graduate in economics from Universityof London and an accountant. As a management consultant at Deloitte, John worked in Europe, theUSA, Japan and Australia. He was appointed a partner in 1985, Managing Partner of the UKconsultancy in 1992 and was appointed to the UK and Global Boards of Deloitte in 1994. John wassenior partner from 1999 and retired from the firm in 2005. He is a trustee of three charities, nonexecutive director of an advisory company, and chairs one pension fund. John is Treasurer of theFriends of the V&A.Bernadette Barber Bernadette Barber worked for many years in Human Resourcesfor several advertising agencies and as a freelance Consultant specialising in Graduate Recruitmentand Training. Most recently she has joined the Board of the Diocese of Westminster Art andArchitectural Affairs Committee. As a trustee of the Friends of the V&A, Bernadette has specificresponsibility for Membership Events.the FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p18John Benson John Benson is a graduate of Art History from Edinburgh University and hasworked in business to business publishing for over 20 years. John has lived and worked in theUnited States, Asia and the UK and in 2000 he founded and became CEO of an internet publishingbusiness which now operates in 23 markets around the world. John is particularly interested inIndian art of the 17th and 18th centuries, Chinese Art between 1949-1976 and post war British art.Tricia Bey In her early career Tricia worked in the pre-internet world of patent information,researching patenting activity and patenting trends for global clients. She later spent 14 years withDeloitte Consulting building and leading different practice areas including two years as theManaging Partner of the Dutch consulting practice. She was later Managing Director of a Londonbasedmanagement development school. She now lives in Scotland running her own cheesemaking business. Tricia has an Engineering Science degree from Durham and an MBA from TheLondon Business School.John Deards During the many years John Deards worked in advertising agencies hisresponsibilities included overseeing the creation of advertising in both Europe and the UK and theworldwide coordination of a global packaged good business. Then in 2005 he completed his MA inthe Material Culture of European Society. As a Trustee of the Friends of the V&A, John has specificresponsibility for the marketing sub-group.Kenneth Draper Kenneth Draper is a retired architect, following a career spent inprivate practice, becoming a partner and subsequently chairman of BDP the multi-disciplinarydesign consultancy. He worked primarily in London but also in West Africa, Korea, France, andGermany; projects included educational, cultural, commercial and corporate buildings. He lives inLondon, enjoys the Cinema, walking, a range of music, and watching his local football team. He is avolunteer at the V&A, helping on the desk, in the office and with Members’ Events. As a Trustee ofthe Friends of the V&A, Kenneth represents the Volunteers.the FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p19Vivek Nanda Dr Vivek Nanda is a partner at Alan Baxter & Associates. He leads variousprojects covering strategic planning, urban design and urban heritage, and sustainability. Over thelast decade as a practitioner, design champion and advisor, his project expertise has ranged fromstrategic level planning policy (addressing the government’s housing growth agenda), majortransport projects, urban regeneration, masterplanning of urban extensions, also including, historictown centres and the design of public spaces. He has authored good practice guidance in urbandesign and transport and pioneered new approaches towards understanding city regions. As aninternational consultant he has advised several agencies and practices in the US, Europe, CentralAsia, the Balkans and India. He has taught and led major research projects at the University ofCambridge and University College London. He is visiting faculty and lectures extensively at severalkey institutions in the UK, USA, Europe and South Asia.Sarah Tytherleigh Sarah Tytherleigh originally qualified as a lawyer but for a longtime has been organising events for charity. Because of her considerable interest in history and thearts (and Victorian art in particular) she has been a volunteer at the V&A for over twenty years,many of them as a member of the Friends Events Committee.The day to day running of the organisationis delegated to the Head of Friends andPatrons and her team, with strategic andfinancial decisions being considered andagreed by the Committee. The Friends ofthe V&A is grateful for ongoing assistancefrom many V&A departments, notablyFinance, Public Affairs and Development.the FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p20Risk managementThe Friends of the V&A’s systems of internalcontrol are designed to provide reasonable, butnot absolute, assurance against materialmisstatement or loss. They include:• A strategic plan and an annual budget prepared by the Trustees;• Regular consideration by the Trustees of financial results,variance from budget, non-financial performance indicatorsand benchmarking reviews;• Delegation of authority and segregation of duties; and• Identification and management of risks.The Trustees have implemented a formal riskmanagement process designed to assess risks andimplement risk management strategies. The riskregister is formally reviewed annually, with the riskregister being considered by the Trustees periodically.the FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p21FINANCIALREVIEWthe FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p22Total income for the year amountedto £1,020,589 (2010 £806,046) andconsists mainly of subscriptions andincome from events.Resources expended amounted to£847,738 (2010 £645,393), including£301,304 for grants to the Museumand scholarships and £540,734supporting the Members.When appraising performance, theCommittee considers Membershipnumbers ('Members') which it regardsas the number of people in a positionto visit the V&A through Membership.This figure therefore counts plus-guestmemberships as two, familymemberships as four, etc. TheCommittee also reviews 'Memberships'by which is meant the number ofindividual subscriptions.ReservesThe Trustees do not in generalregard it as necessary ordesirable to hold substantialreserves but to make donationsto the V&A to assist it topurchase items or undertakeprojects as soon as requested.However, for reasons ofprudence, the Trustees’ opinionis that reserves should currentlybe held at around 25% ofincome, with a minimum of£150,000. The reserves policy isreviewed on a yearly basis.Reserves are also increasedtemporarily as necessary tomeet known future fundingrequests from the Museum.Reserves at the end of March2011 stood at £619,961, of which£411,795 has been designatedfor the Postmodernismexhibition, the Magic Lanterninstallation, future acquisitions,the Norfolk House Music Roomconcerts, the MetropolitanMuseum of Art exchangeprogramme, a Designer / MakerCollective residency, and afuture V&A project.Investment policyThe major part of the surplusfunds is held in interestbearingbank accounts, as areamounts waiting distributionto the Museum once approvedby the Committee. The aim isto obtain as high an interestrate as is possible withminimum risk. Accounts withrelatively speedy access areused, as funds for purchasesare sometimes required atshort notice. The Trusteesconsider it appropriate toretain a portion of the reservesin units of the M&G Charifund,a unit trust designed for andwidely used by charities. Thispolicy is regularly reviewed. Thevalue of the units increased by5% during the year.the FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p23PLANS FORTHE FUTUREthe FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p24onetwothreefourTo continue in our aims and objectives by workingto increase and consolidate Membership numbersTo continue our extensive and involvingprogramme of eventsTo ensure that all Members enjoy a fulfillingrelationship with the V&A and the V&AMuseum of ChildhoodTo encourage Members to continue and extendtheir support of the Museum, whether financial,as volunteers, or as ambassadors for the V&A andthe V&A Museum of Childhoodthe FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p25TRUSTEES’RESPONSIBILITIESthe FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p26The Trustees are responsible for preparing their Trustees’ Report and thefinancial statements in accordance with applicable law and regulationsCompany law requires the Trustees to preparefinancial statements for each financial year. Underthat law the Trustees have elected to prepare thefinancial statements in accordance with UnitedKingdom Generally Accepted Accounting Practice(United Kingdom Accounting Standards andapplicable law). The financial statements arerequired by law to give a true and fair view of thestate of the affairs of the charitable company andof the surplus or deficit of the charitable companyfor that period. In preparing these financialstatements the Trustees are required to:• Select suitable accounting policies and apply them consistently• Observe methods and principles in the Charities SORP• Make judgements and estimates that are reasonable and prudent• State whether applicable accounting standards have been followed, subject to any materialdepartures disclosed and explained in the financial statements• Prepare the financial statements on the going concern basis unless it is inappropriate to assumethat the charitable company will continue in operationThe Trustees are also responsible for keeping proper accounting records that disclose withreasonable accuracy at any time the financial position of the charitable company and enablethem to ensure that the financial statements comply with the Companies Act 2006. They arealso responsible for safeguarding the assets of the charitable company and hence for takingreasonable steps for the prevention and detection of fraud and other irregularities.So far as each of the Trustees is aware at the time the report is approved:• there is no relevant audit information of which the company's auditors are unaware; and• the Trustees have taken all steps that they ought to have taken to make themselves aware ofany relevant audit information and to establish that the auditors are aware of that information.On behalf of the TrusteesLady Vaizey of GreenwichChairman9th June 2011the FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p27INDEPENDENTAUDITORS’ REPORTTO THE MEMBERSOF THE FRIENDS OFTHE V&Athe FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p28We have audited the financial statementsof The Friends of the V&A for the yearended 31 March 2011 which comprise theStatement of Financial Activities, theBalance Sheet and the related notes. Thefinancial reporting framework that hasbeen applied in their preparation isapplicable law and United KingdomAccounting Standards (United KingdomGenerally Accepted Accounting Practice).This report is made solely to the charitable company's members, as abody, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.Our audit work has been undertaken so that we might state to thecharitable company's members those matters we are required to state tothem in an auditors' report and for no other purpose. To the fullest extentpermitted by law, we do not accept or assume responsibility to anyoneother than the charitable company and its members, as a body, for ouraudit work, for this report, or for the opinion we have formed.Respective responsibilities of Trustees and auditorsAs explained more fully in the Statement of Trustees’ Responsibilities, the trustees (who are also thedirectors of the charitable company for the purposes of company law) are responsible for thepreparation of the financial statements and for being satisfied that they give a true and fair view.Our responsibility is to audit and express an opinion on the financial statements in accordance withapplicable law and International Standards on Auditing (UK and Ireland). Those standards requireus to comply with the Auditing Practices Board’s Ethical Standards for Auditors.Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amounts and disclosures in the financialstatements sufficient to give reasonable assurance that the financial statements are free frommaterial misstatement, whether caused by fraud or error. This includes an assessment of: whetherthe accounting policies are appropriate to the charitable company’s circumstances and have beenconsistently applied and adequately disclosed; the reasonableness of significant accountingestimates made by the trustees; and the overall presentation of the financial statements. Inaddition, we read all the financial and non-financial information in the Trustees’ Report to identifymaterial inconsistencies with the audited financial statements. If we become aware of anyapparent material misstatements or inconsistencies we consider the implications for our report.the FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p29Opinion on financial statementsIn our opinion the financial statements:• give a true and fair view of the charitable company’s state of affairs as at 31 March 2011and of its incoming resources and application of resources, including its income andexpenditure, for the year then ended;• have been properly prepared in accordance with United Kingdom Generally AcceptedAccounting Practice; and• have been prepared in accordance with the requirements of the Companies Act 2006.Opinion on other matter prescribed by the Companies Act 2006In our opinion the information given in the Trustees’ Report for the financial year for which thefinancial statements are prepared is consistent with the financial statements.Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters where the Companies Act 2006requires us to report to you if, in our opinion:• adequate accounting records have not been kept or returns adequate for our audit have not beenreceived from branches not visited by us; or• the financial statements are not in agreement with the accounting records and returns; or• certain disclosures of trustees’ remuneration specified by law are not made; or• we have not received all the information and explanations we require for our audit.Richard WeaverSenior Statutory Auditorfor and on behalf of haysmacintyreStatutory Auditors and Chartered AccountantsFairfax House15 Fulwood PlaceLondonWC1V 6AYthe FRIENDS OF THE V&A REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

p30THE FRIENDS OFTHE V&A STATEMENTOF FINANCIAL ACTIVITIES(including Income andExpenditure Account)FOR THE YEAR ENDED31 MARCH 2011INCOME AND EXPENDITURE 2011 2010Notes £ £Incoming resourcesIncoming resources from generated funds:Voluntary income - donations and legacies 9,978 20,080Investment income 2 6,088 4,993Incoming resources from charitable activitiesSupporting members 3 1,004,523 780,973Total Incoming Resources 1,020,589 806,046Resources expendedCosts of generating income - -Charitable activities:Supporting the V&A Museum 4 301,304 192,519Supporting Members 5 540,734 448,424Governance costs 6 5,700 4,450Total resources expended 847,738 645,393Net incoming resources for the year 172,851 160,653Other recognised gains and losses:Unrealised gain/( loss) on investments 3,946 20,640Net incoming resources 176,797 181,293Balance brought forward at 1 April 2010 443,164 261,871Balance carried forward at 31 March 2011 619,961 443,164The notes on pages 32 to 37 form part of these accounts.All gains and losses arising in the year are included in the Statementof Financial Activities and arise from continuing operations.

p312011 2010THE FRIENDSOF THE V&ABALANCE SHEET AT31 MARCH 2011Notes £ £ £ £FIXED ASSETSTangible assets 9 7,644 10,701Investments 10 83,327 79,38190,971 90,082CURRENT ASSETSDebtors 11 36,109 38,302Cash at bank and in hand 12 626,084 491,697662,193 529,999CREDITORS: amounts fallingdue within one year 13 (133,203) (176,917)NET CURRENT ASSETS 528,990 353,082TOTAL ASSETS LESSCURRENT LIABILITIES 619,961 443,164FUNDSUnrestricted funds(Including revaluation reserve£34,119 2010: £30,173) 14 619,961 443,164The financial statements were approved and authorised for issue by theCommittee on 9th June 2011 and were signed below on its behalf by:John EverettTrusteeThe notes on pages 32 to 37 form part of these accounts.

p321. ACCOUNTING POLICIESBasis of preparationThe financial statements have beenprepared under the historical costconvention with the exception ofinvestments which are included atmarket value, and in accordance withthe Statement of RecommendedPractice “Accounting and Reportingby Charities” (SORP 2005), applicableaccounting standards and theCompanies Act 2006Incoming resourcesSubscriptions and donationsAll subscriptions anddonations, including lifesubscriptions, are accountedfor on a receipts basis.Investment incomeDividends and interest areincluded in the accounts on areceipts basis.Other incomeOther income is accountedfor in the period in which itfalls due. Income received inadvance for events is treatedas deferred income andincluded in creditors.Resources expendedResources expended areincluded in the Statement ofFinancial Activities (SOFA) onan accruals basis, inclusive ofany VAT which cannot berecovered. Costs are allocateddirectly to functionalheadings wherever possible.Cost of generating fundsCosts of generating funds areall costs involved in obtaininggenerated funds.Charitable activitiesCharitable activities are thosecosts relating to the corepurposes of the charity.Governance costsGovernance costs are thosecosts relating to the strategicdirection of the charity and ofregulatory compliance.Support costsSupport costs are those costswhich are common to therange of charitable activities.These have been allocated onthe basis of time spent bystaff in each area.Pension costsPension costs are paid under adefined contribution scheme.The assets of the scheme areinvested and managedindependently of the financesof the Organisation. Thepension costs chargerepresents contributions paidin the year.Grants andScholarshipsGrants and scholarships areaccounted for at the timethey are approved.Fixed assetsIndividual fixed assetscosting more than £250 arecapitalised at cost.Depreciation is provided atrates calculated to write offthe cost of each asset over itsexpected useful life. Theestimated life used is 4 yearsfor each asset.InvestmentsInvestments are stated atmarket value at the balancesheet date. Net gains andlosses arising on revaluationsand disposals are charged orcredited to the SOFA.StocksStocks of goods for resale areincluded at the lower of theircost or net realisable value.FundsUnrestricted funds may beapplied to any of thecharitable objects at thediscretion of the trustees.Designated funds areunrestricted funds whichhave been set aside by thetrustees for particularpurposes.

p332011 2010£ £2. Investment IncomeInterest receivable 1,992 905Dividends received 4,096 4,0886,088 4,9933. Income from Supporting MembersSubscriptions 912,620 690,594Friends events 91,903 90,3791,004,523 780,9734. Supporting the Victoria and Albert MuseumGrants to the Victoria and Albert Museum 264,160 174,492(10 awards; 2010:15)Scholarships and grants to Museum staff 37,144 18,027(2 awards; 2010:3)301,304 192,519The Friends board met in April 2011 instead of Marchthis financial year so funds were designated for additional awards.5. Supporting MembersDirect costsMember support 88,671 68,905Magazine/newsletter 103,881 80,550Friends events 38,241 36,520230,793 185,975Support costsStaff costs (note 7) 237,697 205,021Other costs (note 8) 72,244 57,428540,734 448,424

p342011 2010£ £6. Governance CostsAudit fee 5,700 5,450Legal fees (2010: release of overaccrual) - (1,000)5,700 4,450No commitee member was reimbursed for any expenses (2010: None)or received any remuneration from the charity.7. Staff CostsStaff recharged by the V&A Enterprises Ltd 237,697 205,021Temporary staff - -237,697 205,021The average number of employees during the year was 8 (2010: 6),all of whom were recharged from the Museum.No member of staff received remuneration in excess of £60,000 (2010: £Nil)8. Other Support CostsDepreciation 3,057 3,226Bank and related charges 10,813 8,376Printing, postage, stationery and telephone 36,647 21,366Other costs 21,727 24,46072,244 57,428

p359. Fixed Assets £CostAt 1 April 2010 83,937Additions -Disposals (36,957)At 31 March 2010 46,980DepreciationAt 1 April 2010 73,236Charge for the year 3,057On Disposals (36,957)At 31 March 2010 39,336Net Book ValueAt 31 March 2011 7,644At 31 March 2010 10,701All assets are used by the charity in pursuance of its charitable objectives.There were no capital commitments at 31 March 2011.

p362011 2010£ £10. InvestmentsQuoted investmentsMarket value at 1 April 2010 79,381 58,739Unrealised investment gain/(loss) 3,946 20,642Market value at 31 March 2011 83,327 79,381Historical costs as at 31 March 2011 49,208 49,208Total unrealised gains included in unrestricted funds 34,119 30,173Investments consist of M&G Charifund Units.11. DebtorsPrepayments and accrued income 5,468 4,632Recoverable taxes 30,641 33,67036,109 38,30212. Cash and Bank BalancesInterest bearing accounts 624,633 491,017Current account and cash 1,451 680626,084 491,69713. Creditors: amounts falling due within one yearTrade creditors 65,343 103,756Accruals and advances received 67,860 73,161133,203 176,917

p3714. Movement in Funds At At1 April Movement Transfers 31 March2010 In Funds 2011£ £ £ £Unrestricted fundsGeneral 223,164 276,797 (291,795) 208,166Designated - Quilts Exhibition 100,000 (100,000) - -Designated - Postmodernism Exhibition 100,000 - 50,000 150,000Designated - McQueen collection items 20,000 - (20,000) -Designated - Magic Lantern light installation - - 100,000 100,000Designated - Collect acquisitions - - 10,000 10,000Designated - Future acquisition - - 10,000 10,000Designated - Norfolk House Music Room Concerts - - 2,695 2,695Designated - Metropolitan Museum of Art Exchange - - 6,500 6,500Designated - Designer/Maker Collective Residency - - 32,600 32,600Designated - Future V&A project - - 100,000 100,000443,164 176,797 - 619,961During the year £291,795 was transferred from general funds to the following designated funds - Magic Lantern light installation, a futureacquisition, Collect acquisitions, Norfolk House Music Room concerts, Metropolitan Museum of Art exchange programme,Designer/Maker Collective residency and a Future V&A project.The £20,000 for the late Alexander McQueen collection items designation was not needed and therefore released. The £100,000 for theQuilts Exhibition was paid over in the year. £50,000 was added to the Postmodernism exhibition designation.15. CommitmentsNo commitments have been made in respect of future periods.16. Related PartyThe Friends of the V&A have a very close working relationship with the Victoria and Albert Museum. During the year the Friends incurredliabilities to the Museum for management charges and other expenses totalling £31,049 and made sales of £7,478. In addition the Friendspaid over £321,154 of grants to the Museum (which included accrued awards from 2009-10). At 31 March 2011 a total of £7,356 was owed tothe Museum. In addition, £24,875 was owed to V&A Enterprises, a subsidiary of the Victoria and Albert Museum, in respect of staff salaries.