South Western Federation of Museums and Art Galleries

Demonstration of financial basis

Accredited museums must submit their financial accounts/statement of expenditure for the past two accounting years and demonstrate that they have a secure financial base. If there are budget shortfalls then the assessor will expect to see plans to address this in the Forward Plan.

Assessor’s questions

  • Are the accounts submitted the correct accounts for the organisation?
  • Does the information provided cover the previous two financial years (based on the museum’s own financial cycle)?
  • Do the accounts mention (as appropriate) FRS30 and include ‘Heritage Asset’ statements? Note including ‘Heritage Asset’ statements is not a requirement of Accreditation.
  • Is there any evidence that collections are being used as collateral? Are the collections shown as assets in the accounts?
  • Has financial information for all sites in the service been provided? Check whether expenditure is allocated on a service-wide or site basis or combination of both.
  • Has the museum operated in a solvent manner for the previous two years?
  • Does the museum have an appropriate reserve fund? Does an appropriate reserves policy exist?
  • Are restricted funds (for example, acquisition funds) being applied appropriately?
  • Are the accounts sufficiently detailed to show expenditure on conservation, exhibitions and other museum activities as well as the premises maintenance and operation?
  • QIS How well does the museum service manage its finances, secure funds and allocate these to identified priorities?