REGISTERED COMPANY NUMBER: 00401816 (England and Wales)

REGISTERED CHARITY NUMBER: 312168

TRUSTEES' REPORT AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

THE POLISH INSTITUTE AND SIKORSKI MUSEUM

(A COMPANY LIMITED BY GUARANTEE)

Page

Reference and Administrative Details

1

Trustees' Report

2

to

5

Statement of Trustees' Responsibilities

6

Report of the Independent Auditors

7

to

10

Statement of Financial Activities

11

Balance Sheet

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

to

25

TRUSTEES

M Wojcik

L Lasocki

D Bildziuk

B Gabriel (resigned 31.12.2025)

J Korwin-Szymanowski

C Nowakowski

A W Nosalik

G A Gudiens (resigned 15.1.2025)

REGISTERED OFFICE

20 Princes Gate

London

SW7 1PT

REGISTERED COMPANY NUMBER

00401816 (England and Wales)

REGISTERED CHARITY NUMBER

312168

INDEPENDENT AUDITORS

mgr Weston Kay LLP

Statutory Auditors

55 Loudoun Road

St John's Wood

London

NW8 0DL

BANKERS

CAF Bank Limited

25 Kings Hill Avenue

Kings Hill

West Malling

Kent

ME19 4QJ

Bank Santander

Oddzial 64 w Warszawie

UL. Ludwika Kondratowucza 35

Poland

03-285

BANKERS

Barclays Bank UK PLC

1 Churchill Place

London

W14 5HP

Holt’s Military Banking

200 Fowler Avenue

Farnborough Business Park

Hampshire

GU14 7JP

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2025. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

- To collect, preserve and interpret through the material evidence of Poland's past, especially that connected with the activities of the Polish Government-in-Exile and it's Armed Forces 1939-45, for the public benefit, education and enjoyment.

- To care for the existing collections relating to Poland's history, principally the work of the Polish Government-in-Exile and it's Armed forces 1939-45.

- To collect, preserve and interpret through the material evidence of Poland's past, especially that connected with the activities of the Polish Government-in-Exile and it's Armed Forces 1939-45, for the public benefit, education and enjoyment.

- To make provision for future collections which may be bequeathed by other institutions as well as by individual members of the public.

- Provide permanent and temporary exhibitions and events in a variety of disciplines for the information and education of visitors.

- To work with others to record, protect and enhance the achievements of the Polish Community in the United Kingdom.

- To provide a high-quality education resource.

- Making the Institute and its activities accessible to all sections of the community.

- Encourage a dedicated workforce who cares about Polish heritage in the United Kingdom and its British contacts.

- To increase, by various means, the number of visitors and researchers to the Institute.

- To expand resources available to the Institute, with specific reference to staff and financial resources.

The full objects appear in the Memorandum and Articles of Association.

The Members of Council have had regard to the Charity Commission's general guidance on public benefit when reviewing the aims, objectives and activities of the Charity.

The Members of Council have paid due regard to guidance issued by the Charity Commission in deciding what activities the Institute should undertake.

STRATEGIC REPORT

Achievements and performance

Details of the achievements of the charity during the year are shown above in the Chairman's Report.

In the planning of activities for the reporting year, the Board of Trustees considered the Charity Commission's general guidance on public benefit. The Trustees consider it to be in the public benefit to promote education and increase awareness of Polish history and culture in the UK and beyond.

In 2025 there were several anniversaries and commemorations, which are an excellent platform to increase this awareness, including the 80th Anniversary of the Polish Institute and Sikorski Museum. A number of events were organised to celebrate and increase perception. This included the sell-out Founders' Dinner at Ognisko Polskie, Kensington. The annual New Year celebration and Christmas party were held for staff, volunteers, members and VIPs.

The archive continued to welcome hundreds of archival research enquires, in person through the reading room, and online correspondences, along with formal visits from the UK and abroad, authors and historians. The charity is indebted to the outgoing Keeper of the Archive, Andrzej Suchitz, who retired after 36 years' service.

The entitled 'Warsaw Calling' exhibition commemorating the of the Warsaw Uprising. The exhibition had successfully been held at Bush House, King's College London., along with the Polish Social and Cultural Association (POSK), Hammersmith. Our aim was to reach new audiences, and secured a three-week feature at the Clapham Library, Seacole Centre. There were a couple of events, including public speakers, panel and film discussions. The Institute hosted a seminar for the Polish Medical Association GB and a book launch. The Institute organised a 'Museum Night Experience' from 16:00 to 24:00, with guided tours including additional museum items on display, films about the Institute and activities for children. Furthermore, there were organised school visits, and a general interest from the local community. We continue to seek new opportunities, particularly outside of London.

Contacts were maintained with other institutions of a similar profile both in the United Kingdom as well as abroad, in most cases the institute was able to furnish requested information speedily and in some cases was able to loan appropriate materials and exhibits. The Institute loaned out items to the National Civil War Centre in Newark and the Topography of Terror Foundation Museum in Berlin. The Keeper of the Archive, the Deputy Keeper of the Archive and the Film Archivist attended conferences in the UK, in Poland and abroad and gave lectures and talks on behalf of the Polish Institute and Sikorski Museum.

The Institute opened up discussions with the Airborne Museum in Arnheim, with a view to support the development of an exhibition 'Sosabowski A family divided by war.

The board continues to apply to the Polish Ministry of Culture for grant under the so-called WABIM project, successfully securing over £230,000 in 2025. The aim of the project is to protect and ensure access (including for English-speaking audiences) to the archival collections of the Sikorski Institute and PUMST - a part of Polish cultural heritage. It also aims to reform the institution itself; its management and business model to ensure its stability and development, and consequently, the conditions for the effective protection of its invaluable collections. This will be based on Polish and international industry standards, as well as OCR, AI, and Cloud technology.

Planned actions:

- Modernisation of IT infrastructure as the foundation for the institution's operations, and for the

implementation of this project

- Inventory and archiving of additional collections

- Their multi-stage digitisation

- Expansion and modernisation of databases: Excel inventories (and their export to the NDAP database)

and PDF index

- Initiation of work on a web-based AI applications based on scanned material

- Implementation of a new development strategy and archiving, digitisation, and administrative

procedures.

The work on the development and consultation of the new strategic plan progressed well.

The number of visits by Polish Schools have increased and the educational plan in partnership with the Polish Educational Society has been very successful and positive.

Financial review

The charity's incoming resources from charitable activities decreased by 14% and donations and legacies have increased by 336% in the year under review, due to a one-off donation.

The total resources expended have increased by 13%. This includes the costs of generating funds which have decreased by 29% and the cost of charitable activities which have increased by 24%.

There were net gains on investments of £1,047,724.

In the opinion of the Members of Council, the charity is in a healthy financial position at the year end with unrestricted fund balance of £11,233,113. It recognises that there are extensive investment needed to conserve and preserve our collections, and to its properties.

It is the policy of the Institute that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month's expenditure. The Members of Council consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Institute's current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

The Trustees consider that, at the date of signing the report, the charity is a going concern, based on their review of existing funds and expected cash flow.

The Members of Council are aware of the charity's future financial needs and aim to secure the long term financial stability of the charity. They have a low to medium attitude to risk and have invested in income producing properties, a portfolio of FTSE 100 investments and retain liquid funds on deposit to ensure that they can meet the charity's short and medium term cash flow requirements. The charity has a normal level of exposure to price, liquidity and cash flow risk.

The Members of Council has assessed the major risks to which the Institute is exposed, and are satisfied that systems are in place to mitigate exposure to these.

There are no significant future changes planned and the Trustees look forward to a similar level of activity in the next financial year.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Polish Institute and Sikorski Museum was established by a Trust Deed and is a company limited by guarantee with no shares. The Institute is governed by a Council consisting of a maximum of 24 Full Members. Each year one fifth of the longest serving Council members retire but being eligible, offer themselves for re-election at the Annual General Meeting. The charity is managed day-to-day by the Chairman, the Treasurer, the Vice Chairman and the rest of the Board who meet on average every six weeks.

The Members of Council, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

M Wojcik

L Lasocki

D Bildziuk

B Gabriel (resigned 31 December 2025)

J Korwin Szymanowski

K Nowakowski

A Nosalik

G A Gudiens (resigned 15 January 2025)

The Trustees can appoint full members in accordance with the Articles of Association. New Trustees are proposed from the full members based on their experience and the skills they can contribute to the charity. The existing Trustees will review these candidates' names and CV's. If successful, the candidates will be proposed for appointment at a Trustees meeting and subsequently confirmed at the AGM.

New Trustees follow an induction process. The charity's key management personnel (the Trustees) do not receive remuneration or other benefits for their work with the charity.

The charities key management personnel do not receive remuneration or other benefit from their work with the charity.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the trustees are aware, there is no relevant information (as defined by Section 418 of the Companies Act 2006) of which the charitable company's auditors are unaware, and each trustee has taken all the steps that they ought to have taken as a trustee in order to make them aware of any audit information and to establish that the charitable company's auditors are aware of that information.

Trustees' report, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 21 September 2026 and signed on the board's behalf by:

D Bildziuk - Trustee

The Members of Council, who are also the directors of The Polish Institute and Sikorski Museum for the purpose of company law, are responsible for preparing the Chairman's And Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Members of Council to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Institute and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Members of Council are required to:

- select suitable accounting policies and then apply them consistently;

- observe the methods and principles in the Charities SORP;

- make judgements and estimates that are reasonable and prudent; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Institute will continue in operation.

The Members of Council are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Institute and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Institute and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Opinion

We have audited the financial statements of The Polish Institute And Sikorski Museum (the 'charitable company') for the year ended 31 December 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the charitable company's affairs as at 31 December 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Trustees' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept or returns adequate for our audit have not been received 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.

Responsibilities of trustees

As explained more fully in the Statement of Trustees' 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, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The extent to which our procedures are capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

As part of our planning of the audit work required we obtained an understanding of the legal and regulatory frameworks that are applicable to the entity via enquiries of the company’s management, carried out analytical procedures, held discussions amongst the engagement team and using knowledge of the sector determined that the most significant laws and regulation are those that relate to:

• Health and safety regulations.

• Employment law including right-to-work in the UK.

• Charities Act.

We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Charities SORP, FRS102 and the Companies Act 2006.

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with the laws and regulations and the fraud risks identified. This included enquiries with management to understand their policies and procedures for compliance with those regulations and we completed the following tests:

• Obtained an understanding of relevant controls.

• Reviewed the company’s risk assessments, procedures and systems.

• Checked samples of documentation including minutes of the meetings of the trustees and service agreements with regulatory advisors.

We also assessed the risks of material misstatement in respect of fraud as follows:

• Revenue fraud.

• Management override of controls.

• Manipulation of accounting estimates.

• Related party fraud.

Based on the results of our risk assessment we designed our audit procedures to identify and to address material misstatements in relation to fraud. This included the risk of management bias relating to judgements and assumptions used in the valuing the investment properties.

No significant issues were identified during our testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non – detection of irregularities, as these could involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, 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 the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Nigel Walfisz FCA (Senior Statutory Auditor)

for and on behalf of mgr Weston Kay LLP

Statutory Auditors

55 Loudoun Road

St John's Wood

London

NW8 0DL

22 September 2026

31.12.25

31.12.24

Unrestricted

Restricted

Total

Total

funds

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

3

1,053,885

-

1,053,885

241,566

Charitable activities

6

Charitable activities

64,488

244,087

308,575

263,157

Other trading activities

4

7,502

-

7,502

-

Investment income

5

400,894

-

400,894

450,690

Total

1,526,769

244,087

1,770,856

955,413

EXPENDITURE ON

Raising funds

7

39,509

-

39,509

55,246

Charitable activities

8

Charitable activities

508,281

243,603

751,884

667,764

Support Costs

63,435

-

63,435

24,406

Governance Costs

15,720

-

15,720

22,185

Total

626,945

243,603

870,548

769,601

Net gains/(losses) on investments

1,047,724

-

1,047,724

(102,451

)

NET INCOME

1,947,548

484

1,948,032

83,361

RECONCILIATION OF FUNDS

Total funds brought forward

9,284,749

-

9,284,749

9,201,388

TOTAL FUNDS CARRIED FORWARD

11,232,297

484

11,232,781

9,284,749

31.12.25

31.12.24

Unrestricted

Restricted

Total

Total

funds

fund

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

15

100,752

-

100,752

107,493

Investments

Investments

16

5,892,178

-

5,892,178

5,138,254

Investment property

17

4,972,149

-

4,972,149

3,730,000

10,965,079

-

10,965,079

8,975,747

CURRENT ASSETS

Debtors

18

154,471

-

154,471

40,245

Investments

19

-

-

-

186,444

Cash at bank

195,011

484

195,495

137,149

349,482

484

349,966

363,838

CREDITORS

Amounts falling due within one year

20

(82,264

)

-

(82,264

)

(54,836

)

NET CURRENT ASSETS

267,218

484

267,702

309,002

TOTAL ASSETS LESS CURRENT LIABILITIES

11,232,297

484

11,232,781

9,284,749

NET ASSETS

11,232,297

484

11,232,781

9,284,749

FUNDS

21

Unrestricted funds:

General unrestricted funds

11,232,297

9,284,749

Restricted funds:

Scanning and archiving grants

484

-

TOTAL FUNDS

11,232,781

9,284,749

The financial statements were approved by the Board of Trustees and authorised for issue on 21 September 2026 and were signed on its behalf by:

D Bildziuk - Trustee

Cash flows from operating activities

Cash generated from operations

1

818,413

227,090

Net cash provided by operating activities

818,413

227,090

Cash flows from investing activities

Purchase of tangible fixed assets

-

(6,495

)

Purchase of fixed asset investments

(1,065,437

)

(2,674,604

)

Donation of investment property

(850,000

)

-

Sale of fixed asset investments

967,087

2,411,441

Proceeds from current asset investments

186,444

10,000

Interest received

1,839

3,290

Net cash used in investing activities

(760,067

)

(256,368

)

Change in cash and cash equivalents in the reporting period

58,346

(29,278

)

Cash and cash equivalents at the beginning of the reporting period

137,149

166,427

Cash and cash equivalents at the end of the reporting period

195,495

137,149

1.	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

31.12.25

31.12.24

£

£

Net income for the reporting period (as per the Statement of Financial Activities)

1,948,032

83,361

Adjustments for:

Depreciation charges

6,742

7,555

(Gain)/losses on investments

(1,047,724

)

102,451

Interest received

(1,839

)

(3,290

)

(Increase)/decrease in debtors

(114,226

)

9,608

Increase in creditors

27,428

27,405

Net cash provided by operations

818,413

227,090

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank

137,149

58,346

195,495

137,149

58,346

195,495

Liquid resources

Deposits included in cash

-

-

-

Current asset investments

186,444

(186,444

)

-

186,444

(186,444

)

-

Total

323,593

(128,098

)

195,495

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

Going Concern

The Trustee consider that there are no material uncertainties regarding the Charity's ability to continue as a going concern and have prepared these financial statements on this basis. This is supported by a large range of assets held by the Charity.

Incoming resources

Income is accounted for on a receivable basis. The charity is not VAT registered.

Income from donations is recognised when receivable where possible, and when the charity's entitlement to receipt becomes unconditional.

Income from legacies is recognised when there has been grant of probate, there are sufficient assets in the estate and evidence of entitlement has been received.

Investment income comprises rent receivable on investment properties, income from listed investments and interest on cash at bank and short term deposits. Rent receivable is accrued on a day to day basis, interest on deposits is accounted for on an accruals basis and other investment income is credited as declared.

Grant income is recognised when there is evidence of entitlement to the grant, receipt is probable and it can be measured reliably.

Income is allocated to restricted income when it is given by the donor or grant maker for specific purposes.

Resources expended

All resources expended are accounted for on an accruals basis.

Costs of generating funds are those associated with rental and investment income.

Charitable activities include costs of services and support costs and depreciation on related assets.

Governance costs are those associated with constitutional and statutory requirements.

Property, plant and equipment

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

10% on reducing balance

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .

Freehold properties are stated at cost. They have not been depreciated because in the opinion of the Trustees, their current value is significantly in excess of the value at which they are included in the Balance Sheet.

Investment properties

Investment properties, which are properties held to earn rentals and/or for capital appreciation, are measured using the fair value model and stated at their estimated fair values as the reporting end date as determined by the Trustees. There is no depreciation charged on investment properties. The surplus or deficit on revaluation is recognised in the statement of financial activities

Fixed and current asset investments

Investments are initially recognised at their transaction value and subsequently measured at their market value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

Investments have been classified as current if the funds are available on demand or at notice.

Impairment of non-current assets

At each reporting end date, the Institute reviews the carrying amounts of its tangible to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities

Financial instruments

The Institute has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Institute's balance sheet when the Institute becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously

Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount.

Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

Charitable funds

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Institute is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Heritage assets - archives, libraries and museum collections

The Museum has not capitalised heritage assets. This is because a comprehensive valuation would not provide a meaningful figure for users of the financial statements and the cost of doing so is not commensurate with benefits to the users of the financial statements.

Historic cost - while it may be possible to assign a cost to items purchased within a financial year, historic costs quickly becomes obsolete and meaningless, not only because of general price movements where markets for similar items do exist, but also because of changing opinions about attribution and authenticity, subsequent research into objects that reveals new value, the emergence of new information about the provenance of an item or changes in taste.

Valuation - attempting to value heritage assets acquired historically raises a number of further conceptual concerns. Valuation of heritage assets is complicated by the nature of many such assets. They are rarely sold and often have a value enhanced above the intrinsic through their association with a person, event or collection; there are a very limited number of buyers; no homogeneous population of assets on the market; and imperfect information about the items for sale. In contrast with many commercial assets, therefore, there is seldom an active market to provide indicative values of similar objects. This makes materially accurate valuations impossible to achieve for many heritage assets.

2.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Institute’s accounting policies, the Members of Council are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Valuation of investment properties

As described in note 17 to the financial statements, investment properties are stated at fair value. The trustees used third party valuations.

3.	DONATIONS AND LEGACIES

31.12.25

31.12.24

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Gifts

1

-

1

-

Donations

77,884

-

77,884

61,621

Legacies

976,000

-

976,000

179,945

1,053,885

-

1,053,885

241,566

4.	OTHER TRADING ACTIVITIES

31.12.25

31.12.24

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Other revenue

7,502

-

7,502

-

5.	INVESTMENT INCOME

31.12.25

31.12.24

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Rental income

173,721

-

173,721

144,093

Income from listed investments

225,334

-

225,334

303,307

Interest receivable

1,839

-

1,839

3,290

400,894

-

400,894

450,690

6.	INCOME FROM CHARITABLE ACTIVITIES

31.12.25

31.12.24

Activity

£

£

Income from charitable activities

Charitable activities

64,488

74,689

Non - performance related grants

Charitable activities

244,087

188,468

308,575

263,157

7.	RAISING FUNDS

Investment management costs

31.12.25

31.12.24

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Investment management costs

22,339

-

22,339

32,238

Costs of generating rental income

17,170

-

17,170

23,008

39,509

-

39,509

55,246

8.	CHARITABLE ACTIVITIES COSTS

Direct

Support

Costs (see

costs (see

note 9)

note 10)

Totals

£

£

£

Charitable activities

751,884

-

751,884

Support Costs

-

63,435

63,435

Governance Costs

-

15,720

15,720

751,884

79,155

831,039