2009THE FRIENDS OF THE V&A

(A Company Limited by Guarantee) REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH

2009 CONTENTSReference and administrative information 02-03Trustees’ report 05-13Independent auditors’ report 14Statement of financial activities 15Balance sheet 16 Notes to the financial statements 17-21

PresidentHRH Princess Alexandra, The Hon Lady Ogilvy, KG, GCVOCommittee MembersMarina Vaizey, ChairmanBernadette Barber John DeardsJohn Everett, Treasurer Prudence SkenePat Turner (to 24 November 2008)Sarah TytherleighJohn Benson (co-opted from 13 January 2009)Vivek Nanda (co-opted from 13 January 2009)Ex Officio MembersThe Director of the Museum or his appointed nomineeThe Director of Public Affairs or his appointed nomineeThe Director of CollectionsThe Director of DevelopmentThe Committee Members are directors as defined by the Companies Act.The Company is a company limited by guarantee whereby every Member’s liability is limited to £1.

Company SecretaryPhilippa OuvryRegistered addressVictoria and Albert MuseumSouth KensingtonLondon SW7 2RLAuditorshaysmacintyreFairfax House15 Fulwood PlaceLondon WC1V 6AYBankersCoutts & Co.St Martins Office440 StrandLondon WC2R OQS

CafCash Ltd.PO Box 289West MallingKent ME19 4TA

Charity Number: 272056Company Number: 1267122

THE FRIENDS OF THE V&AREFERENCE AND ADMINISTRITIVE INFORMATION

FOR THE YEAR ENDED 31 MARCH2009

Head of Friends and PatronsPhilippa Ouvry

Senior Membership ManagerKaren Perry (part time)Membership Manager

Mary WillisSenior Membership Events Manager

Sonya DunnMembership Events Manager

Joseph Watson (from July 2008)Membership Weekend Assistant

Tina Whitlow (to June 2008; part time)Rebecca Thomas (from July 2008; part time)

Membership OfficerRachel Crossley Finance Officer

Krissie Chambers (part time)

MEMBERSHIP TEAM VOLUNTEERSEvents CommitteeSarah Tytherleigh ChairmanBernadette BarberGreta ChafferJoanna English Elizabeth HamiltonAnnabel HickoxEdda IrvinePauline Lawson-SmithAlison MaurinSusie RoseMarina Vaizey Event LeadersJean ChippindaleChairman to June 2008Elizabeth Hamilton Chairman from June 2008Bernadette BarberSusie BlundellGreta ChafferGwenda ConstantCaroline GarveySusannah HarrisonKarolina JoinerChristine KentRosemary LoweNaseem Malik-NoorJennie MossLiz Rogers

Susie RoseJacqueline ShimmingsSarah Tytherleigh Jeanne Wadvani Christina Watts VolunteersBernadette Barber Trustee representativeStephanie AgarSusan BellSue BicknellDerek BirdJenny BorthwickClare BowringDebbie BransgroveMarie-Therese BuneNucia ButterworthToni CampbellBel ClarkeKelly CollinsLeonora CollinsGwenda ConstantTerri DaintyRachel DaleyJohn DeardsGiles DimockKenneth DraperBarbara DomanskaSasiwimol DuqueZoe Dwek-Adams

Nadia FarronatoAlison FarthingRuth GimletteBryan GovettKaye B GrayEdna GreenLorna HanmanSusannah HarrisonJean HeathDana HepburnCharlotteHoldsworthHuntAnita HopkinsonFay HornTamara HuntAnnie HunterStephen JonesDolores KeaneChristine KentNicole KissunKelly KnappMarianne LandauKathryn LeaningYodia LoWilliam LoschertBeatriz LutyensNaseem Malik-NoorMargaret MaloneJane MedcalfKaren MortonElizabeth Nicholls

Julia NicholsonSiew OngVerity OnionsElizabeth OylerSunila RadhakrishnanJayne RalstonBarry RedheadMargaret ReynoldsJoanna RobinsBetty SaundersJacqueline SavilleJurgen Paul SchmitzLynne SinclairAnjani SinghElizabeth SingletonCandida SlaterAnn M SmithMargaret StablesHarry SternHelen SumnerEric TaylorJeanne WadvaniKate WatsonChristina WattsRodney WelhamPatricia WilliamsAnn Withnell

The Chairman and Trustees of the Friends of the V&A would like to thank all ourvolunteers for their hard work on our behalf, and the extraordinary amount of time theycommit to us. Volunteers give us a total of more than six thousand hours of their time ayear, and without their help, much of what we do would be impossible. We are extremelygrateful to all those who help on the Membership Desk, in the office, on committees, or asEvents Representatives, for everything they do. If you might be interested in volunteeringfor us, please contact the Membership Office on 020 7942 2271.

V&A Membership is run by the Friends of the V&ARegistered Charity Number: 272056

Registered Company Number: 1267122

THE FRIENDS OF THE V&ATRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2009

The Trustees, who are alsodirectors of the charity forthe purposes of theCompanies Act 1985, havepleasure in submittingtheir annual report andthe audited financialstatements for the yearended 31 March 2009.

The object of the Friends of the V&A is 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 by theCommittee of Association, for thebenefit of the public at large.

The Trustees have agreed threeprincipal aims and objectives:• To support the V&A and its branch

museums through grants of money• To increase loyalty and visits to the

V&A and its branch museums• To increase and spread knowledge of

the V&A (and branch museums) andits work

In supporting the V&A, the Friends ofthe V&A support its mission, and itsown strategic objectives:V&A MissionAs the world’s leading museum of artand design, the V&A enriches people’slives by promoting the practice ofdesign and increasing knowledge,

understanding and enjoyment of thedesigned world.

V&A key strategic objectives• To provide optimum access to

collections and services for diverseaudiences, now and in the future

• To be acknowledged and respected asthe world’s leading museum of artand design

• To promote, support and develop theUK creative economy by inspiringdesigners and makers, and bystimulating enjoyment andappreciation of design

• To operate with financial andorganisational efficiency

The Trustees have had due regard tothe Charity Commission guidance onpublic benefits in developing anongoing strategy to maximise support,loyalty and knowledge of the Victoriaand Albert Museum.

Of course, our financial support iswholly dependent on the generosity ofV&A Members. It is therefore central toour work to ensure that membershipnumbers increase and that as many

Members as possible renew andcontinue their support. However, theseare difficult times, with many Membersreviewing their outgoings. At the end offinancial year 2008/2009, membershipnumbers were slightly lower than lastyear: 11,046 memberships, giving a reachof 19,064 Members. In part, this slightdownturn is attributable to churnfollowing the unusual success of TheGolden Age of Couture exhibition(September 07 - January 08), and therelatively low visitor figures for both ColdWar Modern and China Design Now.

Nonetheless, following this slightdip, numbers began to increase again,bolstered in particular by visitorinterest in Hats: An Anthology byStephen Jones. The forthcomingMaharaja: the Splendour of India’sRoyal Courts (Autumn 2009) andQuilts 1700 - 2010 (Spring 2010) alsolook set to be very popular. Look outfor your invitations to the Members’Previews in later editions of the V&AMagazine so that you can see thesebefore they open to the public.

OBJECTIVES AND ACTIVITIES

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Friends’ acquisitions2008 - 2009Engraving of designs for fivesalt cellars and four jugswith stoppers,Great Britain, about 1824

ACHIEVEMENTS AND PERFORMANCE

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Friends’ acquisitions2008 - 2009Jomon Jar, Japan,3500-2500BC

SupportDespite our slight decrease in numbers, the Friends of the V&A maintained levels of supportthis year, giving £86,391 as grants in 2008/2009. Once again, £50,000 was set aside to increasefunds available for larger projects. Priorities for grants remained acquisitions and scholarshipfunding. A grant procedure detailing the process is in place and is circulated to applicants.During 2008/2009, the Friends of the V&A supported:

Acquisitions • Jomon Jar, with a grant of £15,000• Glass pattern book - fully funded by the Friends of the V&A, with a grant of £2,850• James II Coronation Cup, with a grant of £15,000• Rivington Place portfolio (a set of seven prints by six Black British and African American artists) -

fully funded by the Friends of the V&A, with a grant of £5,000• Untitled photograph from ‘Beneath the Roses’ series by Gregory Crewdson, with a grant of £8,000• Five Meissen figurines of the Ballets Russes, with a grant of £5,000• Japanese lacquer panel, with a grant of £10,000• The Museum of Childhood’s Christmas Tree - fully funded by the Friends of the V&A, with a grant of £3,000Total allocated to acquisitions: £63,850Pieces acquired by the V&A and the Museum of Childhood are available for the benefit of the generalpublic, either on open display or through the V&A’s archive facility at Blythe House.Scholarships and research• Curatorial exchange between the V&A and the Metropolitan Museum in New York• A student scholarship at the Attingham Summer School (www.attinghamtrust.org)• The Royal College of Art / V&A Postgraduate Conservation Programme and travel bursaries• Students on the Royal College of Art / V&A History of Design course

ACHIEVEMENTS AND PERFORMANCE cont.

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Friends’ acquisitions2008 - 2009Carrie Mae Weems,digital print on paper,'When and Where I Enter,The British Museum, 2007'.Part of the Rivington Placeportfolio.

Longer-term support£50,000 was added to our long-term-project fund.

Although Friends’ support allowed the outright purchase of some of the pieces listed above, in other cases we gave acontribution towards a much larger total. This kind of support from the Friends of the V&A is just as valuable to the Museum,as often it facilitates fundraising from other bodies or individuals, who are reassured to know that a certain amount ofsupport is already in place.

We would like to thank all of you who have included the V&A or the Friends of the V&A in your will. If you would like moreinformation about legacy or in memoriam giving, including the V&A’s regular programme of legacy events (where you canhear more about how to support the Museum in this vital way), please contact Roger Cooper on 020 7942 2716 or seewww.vam.ac.uk/legacies.

Previous legacy events have included tours of the V&A archive at Blythe House, and a behind-the-scenes look atconservation at the V&A.Loyalty and knowledgeThe V&A boasts one of the most extensive Membership events programmes in London, if not the UK. Events include tours ofthe Museum, lectures by renowned speakers, exhibition talks by curators, coach trips, workshops and walking tours. Inaddition, every new Member is offered a free Welcome Tour of the V&A - if you have not yet been on one, contact theMembership Office to book your place.

A guide to Friends of the V&A acquisitions is also underway, which will highlight some of the pieces your money hashelped to support and show you where they can be found. Look out for news of this.

Contributing Members support a particular work, or a selection of works, of art each year, and Contributing Members areinvited to a special behind the scenes event to view their acquisition with its curators. If you would like more informationabout becoming a Contributing Member, please contact the Membership Office on 020 7942 2271.Looking to the futureYou will have noticed that in recent months, the Members’ Room has suffered from its proximity to the building works forboth the Ceramics Galleries and the Medieval and Renaissance Galleries, and we apologise for the inconvenience caused bythe noise and dust. Although the Room’s position was not ideal during the building period, once the new galleries open youwill find the Members’ Room ideally placed for a break during your visit. In addition, access to that wing of the building willbe greatly improved, with more lifts and better access between floors. We hope that you will come and rediscover the Roomwhen the new galleries open (September and November; see the V&A Magazine for more details).

The Trustees would like to express their thanks to all V&A Members for their support and loyalty to the Museum. We hopethat you will continue to enjoy and make the most of your involvement with the V&A.

The Friends of the V&A is a charitablecompany limited by guarantee, set upin 1976. It is an independent charityestablished with its main object, asstated above, to assist the Victoria andAlbert Museum by providing financialdonations and through voluntarywork. It is governed by aMemorandum and Articles ofAssociation which were last amendedat the AGM in December 2007.

Applications for Trusteeship, that ismembership of the ExecutiveCommittee, are sought throughadvertisement in the V&A Magazineor through special introduction.Candidates are sought for theirspecific skills and experience. Trusteesserve as Executive Committeemembers for a three-year period andmay be re-elected for a further three-year period. The Trustees meetquarterly, or as required, overseeingthe objectives set out above. In orderto inform Trustees of their

responsibilities, Trustees are circulatedwith the Charity Commission booklet‘Responsibilities of Trustees CC3’ and aTrustees’ Handbook prepared by theMembership Office. In view of the sizeof the trust and its resources, theTrustees are wary of devoting funds toexpensive training programmes, butkeep the need for trustee trainingunder review and respond to anyparticular request that a trustee mayhave in this regard. The Committee iscomposed of a minimum of fourmembers and four ex-officio membersfrom the Museum: the Director of theV&A (or representative), the Directorof Public Affairs (or representative),the Director of Collections, and theDirector of Development, plus theHead of Friends and Patrons(Company Secretary).Our current trustees are:Marina Vaizey, Chairman Marina Vaizey was an art critic for overforty years. She has been a member of

the Arts Council, the Crafts Counciland the Visual Arts AdvisoryCommittee of the British Council, anda judge for the Turner Prize.Trusteeships past and present includethe Imperial War Museum, NationalMuseums Liverpool, the South Bank,the Geffrye Museum, the NationalArmy Museum and London OpenHouse. She was awarded a CBE in the2009 New Year Honours list. Marina isChairman of the Friends of the V&A.John Everett, Treasurer John Everett is a graduate ineconomics from University of Londonand an accountant. As a managementconsultant at Deloitte, John worked inEurope, the USA, Japan and Australia.He was appointed a partner in 1985,Managing Partner of the UKconsultancy in 1992 and wasappointed to the UK and GlobalBoards of Deloitte in 1994. John wassenior partner from 1999 and retiredfrom the firm in 2005. He is a trustee

STRUCTURE, GOVERNANCE AND MANAGEMENT

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Friends’ acquisitions2008 - 2009Porcelain figurine of thecharacter Estrella, asperformed by Serge Diaghilev'sBallets Russes in Berlin,Meissen porcelain factory,Germany, 1914

of three charities and chairs twopension funds. John is Treasurer of theFriends of the V&A.Bernadette Barber Bernadette Barber worked for manyyears in Human Resources for severalAdvertising Agencies and as afreelance Consultant specialising inGraduate Recruitment and Training.Most recently she has joined theBoard of the Diocese of WestminsterArt and Architectural AffairsCommittee. As a trustee of the Friendsof the V&A, Bernadette has specificresponsibility for the Volunteers.John Deards During the many years John Deardsworked in advertising agencies hisresponsibilities included overseeingthe creation of advertising in bothEurope and the UK and the worldwidecoordination of a global packagedgood business. Then in 2005 hecompleted his MA in the MaterialCulture of European Society. As a

Trustee of the Friends of the V&A,John has specific responsibility for themarketing sub-group.Prue Skene Prue Skene is Chairman of RambertDance Company and a Trustee of theStephen Spender Memorial Trust, theNureyev Foundation and the Friendsof the V&A. An experienced artsadministrator, she was responsible forRambert’s administration (1975-1986),Executive Producer of the EnglishShakespeare Company (1987-90 and1992), Director of the Arts Foundation(1993-98), and has worked as afreelance consultant for Arts CouncilEngland, the Clore LeadershipProgramme, the Rayne Foundation,and others. From 1992-2000 she was amember of the Arts Council ofEngland and was Chairman of itsDance Panel (1992-96) and its LotteryAdvisory Panel (1996-2000). OtherTrusteeships have included NESTA andthe Arvon Foundation which she

chaired from 2001-2005. She wasawarded a CBE in the 2000 BirthdayHonours List.Sarah TytherleighSarah Tytherleigh originally qualifiedas a lawyer but for a long time hasbeen organising events for charity.Because of her considerable interest inhistory and the arts (and Victorian artin particular) she has been a volunteerat the V&A for over twenty years,many of them as a member of theFriends Events Committee of whichshe is now chairman.John Benson (co-opted, standing forelection at the AGM in 2009)John Benson is a graduate of ArtHistory from Edinburgh University andhas worked in business to businesspublishing for over 20 years. John haslived and worked in the United States,Asia and the UK and in 2000 hefounded and became CEO of aninternet publishing business whichnow operates in 18 markets around

STRUCTURE, GOVERNANCE AND MANAGEMENT cont.

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Friends’ acquisitions2008 - 2009Porcelain figure of Pierrot,as performed by SergeDiaghilev's BalletsRusses in Berlin,Meissen porcelain factory,Germany, 1914

the world. John is particularlyinterested in Indian art of the 17thand 18th centuries and post warBritish painting.Vivek Nanda (co-opted, standing forelection at the AGM in 2009)Dr Vivek Nanda is a partner at AlanBaxter & Associates. He leads variousprojects covering strategic planning,urban design and urban heritage,and sustainability. Over the lastdecade as a practitioner, designchampion and advisor, his projectexpertise has ranged from strategiclevel planning policy (addressing thegovernment’s housing growthagenda), major transport projects,urban regeneration, masterplanningof urban extensions, also including,historic town centres and the designof public spaces. He has authoredgood practice guidance in urbandesign and transport and pioneerednew approaches towards

understanding city regions. As aninternational consultant he hasadvised several agencies andpractices in the US, Europe, CentralAsia, the Balkans and India. He hastaught and led major researchprojects at the University ofCambridge and University CollegeLondon. He is visiting faculty andlectures extensively at several keyinstitutions in the UK, USA, Europeand South Asia.

We should like to pay tribute totrustee Pat Turner, who sadly passedaway in November 2008.

The day to day running of theorganisation is delegated to the Head ofFriends and Patrons and her team, withstrategic and financial decisions beingconsidered and agreed by theCommittee. The Friends of the V&A isgrateful for ongoing assistance frommany V&A departments, notablyFinance, Public Affairs and Development.

Risk managementThe Friends of the V&A’s systems ofinternal control are designed toprovide reasonable, but not 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, variancefrom budget, non-financialperformance indicators andbenchmarking reviews;

• Delegation of authority andsegregation of duties; and

• Identification and management ofrisks.

The Trustees have implemented aformal risk management processdesigned to assess risks and implementrisk management strategies. The riskregister is formally reviewed annually,with the risk register being consideredby the Trustees periodically.

STRUCTURE, GOVERNANCE AND MANAGEMENT cont.

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Friends’ acquisitions2008 - 2009Porcelain figure of the loversColumbine and Harlequin, asperformed by Serge Diaghilev'sBallets Russes in Berlin,Meissen porcelain factory,Germany, 1914

Total income for the year amounted to£681,638 (2008 £685,193) and consistsmainly of subscriptions and incomefrom events.

Resources expended amounted to£591,913 (2008 £540,482), including£86,391 for grants to the Museum andscholarships and £499,022 supportingthe 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-guest memberships as two, familymemberships as four, etc. TheCommittee also reviews

‘Memberships’ by which is meant thenumber of individual subscriptions.ReservesThe Trustees do not in general regardit as necessary or desirable to holdsubstantial reserves but to makedonations to the V&A to assist it topurchase items or undertake projectsas soon as requested. However, forreasons of prudence, the Trustees’opinion is that reserves shouldcurrently be held at around 25% ofincome, with a minimum of £150,000.The reserves policy is reviewed on ayearly basis. Reserves at the end ofMarch 2009 stood at £261,871, ofwhich £100,000 has been designatedfor major capital projects.

Investment policyThe major part of the surplus funds isheld in interest-bearing bankaccounts, as are amounts waitingdistribution to the Museum onceapproved by the Committee. The aimis to obtain as high an interest rate asis possible with minimum risk.Accounts with relatively speedy accessare used, as funds for purchases aresometimes required at short notice.The Trustees consider it appropriate toretain a portion of the reserves inunits of the M&G Charifund, a unittrust designed for and widely used bycharities. This policy is regularlyreviewed. The value of the unitsdecreased by 37% during the year.

FINANCIAL REVIEW

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Friends’ acquisitions2008 - 2009Sonia Boyce, hard and soft-ground etching withspitbite aquatint on paper,'1930s to 1960s', 2006-2007.Part of the Rivington Placeportfolio.

• To continue in our aims and objectives by working to increase and consolidate Membership numbers.• To continue our extensive and involving programme of events.• To ensure that all Members enjoy a fulfilling relationship with the V&A and the V&A Museum of Childhood.• To encourage Members to continue and extend their support of the Museum, whether financial, as volunteers, or as

ambassadors for the V&A and the V&A Museum of Childhood.

PLANS FOR THE FUTURE

TRUSTEES’ RESPONSIBILITIES

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Friends’ acquisitions2008 - 2009Isaac Julien, inkjet and goldleaf on paper, Untitled (Deja-vu No.2 BaltimoreSeries), 2006-2007.Part of the Rivington Placeportfolio.

Company and charity law requires the Trustees to preparefinancial statements for each financial year which give atrue and fair view of the state of affairs of the charity. Inpreparing those financial statements, the Trustees have:• made judgements and estimates that are reasonable and

prudent;• stated whether applicable accounting standards have

been followed, subject to any material departuresdisclosed and explained in the financial statements; and

• prepared the financial statements on the going concern basis.The Trustees have overall responsibility for ensuring that thecharity has appropriate systems of control, financial andotherwise. They are also responsible for keeping properaccounting records which disclose with reasonable accuracyat any time the financial position of the charity and enablethem to ensure that the financial statements comply withthe Companies Act 1985. They are also responsible for thesafeguarding of the assets of the charity and hence fortaking reasonable steps for the prevention and detection offraud and other irregularities and to provide assurance that:

• the charity is operating efficiently and effectively;• its assets are safeguarded against unauthorised use or

disposition; and • the charity complies with relevant laws and regulations.

So far as each of the Trustees is aware at the time the reportis 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 of any relevant auditinformation and to establish that the auditors are awareof that information.

On behalf of the Trustees

Lady Vaizey of Greenwich CBEChairman

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We have audited the financial statements of The Friends of theV&A for the year ended 31 March 2009 which comprise theStatement of Financial Activities, Balance Sheet and the relatednotes. These financial statements have been prepared under theaccounting policies set out therein.

This report is made solely to the charitable company’smembers, as a body, in accordance with Section 235 of theCompanies Act 1985. Our audit work has been undertaken so thatwe might state to the charitable company’s members thosematters we are required to state to them in an auditor’s reportand for no other purpose. To the fullest extent permitted by law,we do not accept or assume responsibility to anyone other thanthe charitable company and the charitable company’s membersas a body, for our audit work, for this report, or for the opinionswe have formed.Respective responsibilities of trustees and auditorsAs described in the Statement of Trustees’ Responsibilities thecharity’s trustees are responsible for the preparation of thefinancial statements in accordance with applicable law and UnitedKingdom Accounting Standards (United Kingdom GenerallyAccepted Accounting Practice). The Trustees are also directors ofThe Friends of the V&A for the purposes of company law.

Our responsibility is to audit the financial statements inaccordance with relevant legal and regulatory requirements andInternational Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the financialstatements give a true and fair view and are properly prepared inaccordance with the Companies Act 1985 and whether theTrustees’ Report is consistent with the financial statements. Wealso report to you if, in our opinion, the charitable company hasnot kept proper accounting records, if we have not received all theinformation and explanations we require for our audit, or ifinformation specified by law regarding trustees’ remunerationand other transactions is not disclosed.

We read the Trustees’ Report and consider the implications for ourreport if we become aware of any apparent misstatements within it.

Basis of audit opinionWe conducted our audit in accordance with InternationalStandards on Auditing (UK and Ireland) issued by the AuditingPractices Board. An audit includes examination, on a test basis, ofevidence relevant to the amounts and disclosures in the financialstatements. It also includes an assessment of the significantestimates and judgements made by the trustees in thepreparation of the financial statements, and of whether theaccounting policies are appropriate to the charitable company’scircumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all theinformation and explanations which we considered necessary inorder to provide us with sufficient evidence to give reasonableassurance that the financial statements are free from materialmisstatement, whether caused by fraud or other irregularity or error.In forming our opinion we also evaluated the overall adequacy of thepresentation of information in the financial statements.OpinionIn our opinion:• the financial statements give a true and fair view, in accordance

with United Kingdom Generally Accepted Accounting Practice,of the state of affairs of the charitable company as at 31 March2009 and of its incoming resources and application of resources,including its income and expenditure, for the year then ended;

• the financial statements have been properly prepared inaccordance with the Companies Act 1985; and

• the information given in the Trustees’ Report is consistent withthe financial statements.

haysmacintyre Fairfax HouseChartered Accountants 15 Fulwood PlaceRegistered Auditors London WC1V 6AY

INDEPENDENT AUDITORS’REPORT TO THE MEMBERS OF

THE FRIENDS OF THE V&A

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THE FRIENDS OF THE V&ASTATEMENT OF FINANCIAL ACTIVITIES(including Income and Expenditure Account)FOR THE YEAR ENDED 31 MARCH 2009

Total TotalINCOME AND EXPENDITURE 2009 2008

Notes £ £Incoming resourcesIncoming resources from generated funds:

Voluntary income - donations and legacies 5,968 15,357Investment income 2 10,777 13,491

Incoming resources from charitable activities:Supporting members 3 664,893 656,345

Total Incoming Resources 681,638 685,193

Resources expendedCosts of generating income 4 - 1,549Charitable activities:

Supporting the V&A Museum 5 86,391 90,990Supporting members 6 499,022 440,139

Governance costs 7 6,500 7,804Total resources expended 591,913 540,482

Net incoming resources for the year 89,725 144,711Other recognised gains and losses:

Unrealised loss on investments (35,182) (22,882)Net incoming resources 54,543 121,829Balance brought forward at 1 April 2008 207,328 85,499Balance carried forward at 31 March 2009 £261,871 £207,328

The notes on pages 17 to 21 form part of these accounts.All gains and losses arising in the year are included in the Statement of Financial Activities and arise from continuing operations.

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THE FRIENDS OF THE V&ABALANCE SHEET AT 31 MARCH 2009

2009 2008Notes £ £ £ £

FIXED ASSETS

Tangible assets 10 1,698 2,828Investments 11 58,739 93,921

60,437 96,749

CURRENT ASSETSDebtors 12 153,505 87,953Cash at bank and in hand 13 215,539 315,479

369,044 403,432

CREDITORS: amounts falling due within one year 14 (167,610) (292,853)

NET CURRENT (LIABILITIES) / ASSETS 201,434 110,579

TOTAL ASSETS LESS CURRENTLIABILITIES £261,871 £207,328

FUNDSUnrestricted funds(Including revaluation reserve £9,5312008: £44,713) 15 £261,871 £207,328

The financial statements were approved and authorised for issue by the Committee on 15 October 2009 and were signed below on its behalf by

John EverettTrustee

The notes on pages 17 to 21 form part of these accounts.

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1. ACCOUNTING POLICIESBasis of preparationThe financial statements have been prepared under thehistorical cost convention with the exception of investmentswhich are included at market value, and in accordance withthe Statement of Recommended Practice “Accounting andReporting by Charities” (SORP 2005), applicable accountingstandards and the Companies Act 1985.

The charity has availed itself of paragraph 3(3) of schedule 4of the Companies Act and adapted the Companies Actformats to reflect the special nature of the charity’s activities.Incoming resourcesSubscriptions and donationsAll subscriptions and donations, including life subscriptions,are accounted for on a receipts basis.

Investment incomeDividends and interest are included in the accounts on areceipts basis.

Other incomeOther income is accounted for in the period in which it fallsdue. Income received in advance for events is treated asdeferred income and included in creditors.

Resources expendedResources expended are included in the Statement ofFinancial Activities (SOFA) on an accruals basis, inclusive of anyVAT which cannot be recovered. Costs are allocated directly tofunctional headings wherever possible.

Cost of generating fundsCosts of generating funds are all costs involved in obtaininggenerated funds.

Charitable activitiesCharitable activities are those costs relating to the corepurposes of the charity.

Governance costsGovernance costs are those costs relating to the strategicdirection of the charity and of regulatory compliance.

Support costsSupport costs are those costs which are common to the rangeof charitable activities. These have been allocated on the basisof time spent by staff in each area.

Pension costsPension costs are paid under a defined contribution scheme.The assets of the scheme are invested and managedindependently of the finances of the Organisation. Thepension costs charge represents contributions paid in the year.

Grants and ScholarshipsGrants and scholarships are accounted for at the time theyare approved.

Fixed assetsIndividual fixed assets costing more than £250 are capitalisedat cost. Depreciation is provided at rates calculated to write offthe cost of each asset over its expected useful life. Theestimated life used is 4 years for each asset.

InvestmentsInvestments are stated at market value at the balance sheetdate. Net gains and losses arising on revaluations anddisposals are charged or credited to the SOFA.

StocksStocks of goods for resale are included at the lower of theircost or net realisable value.

FundsUnrestricted funds may be applied to any of the charitableobjects at the discretion of the trustees. Designated funds areunrestricted funds which have been set aside by the trusteesfor particular purposes.

THE FRIENDS OF THE V&A NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 MARCH 2009

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2. INVESTMENT INCOME 2009 2008£ £

Interest receivable 5,425 8,385Dividends received 5,352 5,106

£10,777 £13,491

3. INCOME FROM SUPPORTING MEMBERS 2009 2008£ £

Subscriptions 575,293 566,097Friends events 89,600 90,248

£664,893 £656,345

4. COSTS OF GENERATING INCOME 2009 2008£ £

Other fundraising expenses - 1,549- £1,549

5. SUPPORTING THE V&A 2009 2008£ £

Grants to the Victoria and Albert Museum (8 awards; 2008: 10) 63,850 39,507Scholarships and grants to Museum staff (5 awards; 2008: 4) 22,541 51,483

£86,391 £90,990

6. SUPPORTING MEMBERS 2009 2008£ £

Direct costsMember support 141,031 75,612Magazine / newsletter 78,600 73,908Friends events 40,104 34,970

£259,735 £184,490Support costs

Staff costs (note 8) 211,202 177,521Other costs (note 9) 28,084 78,128

£499,022 £440,139

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7. GOVERNANCE COSTS 2009 2008£ £

Audit fee 5,500 5,250Legal fees 1,000 2,554

£6,500 £7,804

No committee member was reimbursed for any expenses (2008: None) or received any remuneration from the charity.

8. STAFF COSTS 2009 2008Staff recharged by the museum 189,776 163,226Temporary staff 21,426 14,295

£211,202 £177,521

The average number of employees during the year was 6 (2008: 4), all of whom were recharged from the Museum.No member of staff received remuneration in excess of £60,000 (2008: £Nil).

9. OTHER SUPPORT COSTS 2009 2008£ £

Depreciation 1,132 8,449Bank and related charges 8,461 7,891Printing, postage, stationery and telephone 16,558 44,104Other costs 1,933 17,684

£28,084 £78,128

10. FIXED ASSETS Office Equipment£

CostAt 1 April 2008 and 31 March 2009 £71,707

DepreciationAt 1 April 2008 68,879Charge for the year 1,131At 31 March 2009 £70,010

Net Book ValueAt 31 March 2009 £1,698At 31 March 2008 £2,828

All assets are used by the charity in pursuance of its charitable objectives.There were no capital commitments at 31 March 2009.

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11. INVESTMENTS 2009 2008£ £

Quoted investmentsMarket value at 1 April 2008 93,921 116,803Unrealised investment loss (35,182) (22,882)Market value at 31 March 2009 £58,739 £93,921Historical cost as at 31 March 2009 £49,208 £49,208Total unrealised gains included in unrestricted funds £9,531 £44,713

Investments consist of M&G Charifund Units.

12. DEBTORS 2009 2008£ £

Prepayments and accrued income 21,709 34,308Recoverable taxes 131,796 53,645

£153,505 £87,953

13. CASH AND BANK BALANCES 2009 2008£ £

Interest bearing accounts 170,913 133,327Current account and cash 45,346 182,152

£215,539 £315,479

14. CREDITORS: amounts falling due within one year 2009 2008£ £

Trade creditors 95,624 240,896Accruals and advances received 72,041 51,957

£167,605 £292,853

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15. MOVEMENT IN FUNDS At 1 April 2008 Movement In funds At 31 March 2009£ £ £

Unrestricted FundsGeneral 157,328 4,543 161,871Designated - V&A Fund 50,000 50,000 100,000

£207,328 £54,543 £261,871

During the year £50,000 was transferred from general funds to the designated V&A Fund. This will be used tosponsor the V&A's Quilts exhibition.

16. COMMITMENTSNo commitments have been made in respect of future periods.

17. RELATED PARTYThe Friends of the V&A have a very close working relationship with the Victoria and Albert Museum. During theyear the Friends incurred liabilities to the Museum for salaries, management charges and other expensestotalling £199,592. In addition the Friends made grants to the Museum of £63,850. At 31 March 2009 a total of £86,993 was owed to the Museum and £18,933 was due from the Museum.