## **HERITAGE TRUST OF LINCOLNSHIRE**
(A Company Limited by Guarantee)
## **TWENTY NINTH**
## **ANNUAL REPORT AND ACCOUNTS**
## **31 MARCH 2022**
**Registered Office**
**The Old School Cameron Street Heckington Sleaford Lincs NG34 9RW**
**Other Trading Names:**
**Heritage Lincolnshire Archaeological Project Services**
**Telephone: Fax: E-mail: Website:**
**01529 461499 01529 461001 info@heritagelincolnshire.org www.heritagelincolnshire.org**
**Registered Number: Registered Charity Number**
**2554738 (England & Wales) 1001463**
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **CONTENTS**
||Page|
|---|---|
|Board of Directors and Secretary|2|
|Professional Advisers|2|
|Advisory and Liaison Committee Members|3|
|Buildings Advisory Committee|3|
|Report of the Trustees/Directors|4 - 7|
|Income and Grants from Local and National Agencies|8|
|Statement of Trustees/Directors’ Responsibilities|9|
|Independent Auditors’ Report|10 - 11|
|**Accounts**||
|Statement of Financial Activities for the year ended 31 March 2022|12|
|Balance Sheet at 31 March 2022|13|
|Cash Flow Statement|14 - 15|
|Notes to the Financial Statements|16 - 28|
|Detailed Statement of Financial Activities for the year ended 31 March 2022|29|
-1-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **TRUST PATRON**
Mr Toby Dennis Esq, HM Lord-Lieutenant of Lincolnshire
## **TRUST PRESIDENT**
The Lord Cormack, DL, FSA, FRHistS
## **TRUSTEES who are also the MEMBERS OF THE BOARD 2021/2022**
Michael Ashton (Chairman) (Non-Executive Director) Resigned 30.11.22 Caroline Bingham (Non-Executive Director) Andrew Clark (Non-Executive Director) Anne Coltman (Non-Executive Director) Francis Dymoke (Non-Executive Director) Resigned 30.11.22 Simon Erskine Crum (Non-Executive Director) Julian Free (Non-Executive Director) Charles Pinchbeck (Vice Chairman) (Non-Executive Director) Chairman from 30.11.22 Dorothy Hancock (Non-Executive Director) Stephen Roe (Company Secretary) **PROFESSIONAL ADVISERS** Auditors: Dexter & Sharpe Audit Services Limited Chartered Certified Accountants & Registered Auditors Rollestone House, Bridge Street, Horncastle, Lincs LN9 5HZ Bankers: Lloyds Bank 51 Market Place, Boston, Lincs PE21 6NQ Solicitors: Chattertons St Swithin’s Court, 1 Flavian Rd, Nettleham Rd, Lincoln LN2 4GR
-2-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **The Advisory & Liaison Committee**
There were no meetings of the Advisory and Liaison Committee in the year to 31 March 2022.
## **The Buildings Advisory Committee**
Mrs A Coltman (Committee Chairman) The Board of Management
Mr P Herbert Accountant Mrs J Howard Local Historian Mr P Thompson Quantity Surveyor Mr E Wreglesworth Estate Agent Ms E Eales Heritage Manager - ELDC **In attendance:** Mr M Bentley Conservation Project Manager M M Gilbert Project Manager (Conservation and Heritage) Mrs C Davey Project Officer (Historic Sites and Projects)
-3-
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022**
## **HERITAGE TRUST OF LINCOLNSHIRE**
**_____________________________________________________________________________________________________**
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 March 2022. 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 2018).
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing Documents**
The Heritage Trust of Lincolnshire was formed on the initiative of Lincolnshire County Council in September 1988. The Trust was incorporated as a Company limited by guarantee on 2 November 1990 and registered as a charity on 9 January 1991. On 1 April 1991, the Trust became independent of the County Council and, at the same time, it incorporated the functions, staff and assets of the Trust for Lincolnshire Archaeology. The Trust’s governing document is its Memorandum and Articles of Association.
## **Recruitment and Appointment of Board of Trustees**
The directors of the company are also charity Trustees for the purpose of charity law and under the company’s Articles are known as members of the Board of Trustees. Under the requirements of the Memorandum and Articles of Association, members of the Board are elected to serve for a period of five years after which they may be re-elected at the end of their term.
## **Trustees Induction and Training**
Trustee recruitment and appointment is undertaken with reference to the organisation’s Equality & Diversity policy. There are no stated criteria, qualifications or constitutional provisions relating to the appointment, but Trustees are generally resident in Lincolnshire and have relevant business or technical skills. An induction and training programme for new Trustees has been developed.
## **Risk Management**
The Trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to manage these risks.
|**Risk**|**Level of risk to**|**Mitigation strategy**|**Revised level of**|
|---|---|---|---|
||**charity**||**risk**|
|Loss of key staff/capacity|Medium|Effective staff recruitment, development and|Medium|
|for delivery||management procedures.||
|Reduction in turnover|Medium|Regular monitoring of management accounts and|Low|
|of commercial services||strategic management of marketing and service||
|||delivery.||
|Loss of funding for|High|Funding strategies in place for individual projects.|Low|
|major projects||Regular communication with major funding||
|||partners. Reporting and risk management on||
|||individual projects reviewed at quarterly board||
|||meetings.||
|Detrimental changes to|Medium|Membership of relevant sector organisations to gain|Low|
|economic/political||information on any issues affecting the charity.||
|context of the charity||Review of business plan and strategy at quarterly||
|||board meetings.||
-4-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT continued**
## **Organisational Structure**
The Trust is governed by a Board of Management who are its Trustees and its non-executive Directors. The number of Trustees may be between five and fifteen and the present number is nine.
Day to day management is delegated to the Chief Executive Officer of the Trust and through to the Management Team. The Senior Management Team meet formally once a month to review the Trust’s progress and to monitor performance. Minutes from these meetings are made available to the Chairman of the Board of Management.
The Board of Management meet quarterly (April, July, October and January) and at other times as necessary. They receive a report from the Chief Executive Officer and the Finance Manager at each meeting. All major issues of policy and all major projects are brought to the Board for approval.
## **OBJECTIVES AND ACTIVITIES**
The objects of the Trust, as stated in its governing document, are:
- To advance the education of the public in all matters relating to the County of Lincolnshire with particular regard to its social history, physical and cultural heritage, archaeology, architecture, traditions, skills and landscapes.
- To preserve, or investigate for the public benefit, buildings and other features of historical, architectural, archaeological and environmental interest.
The Trust has adopted the following **Mission Statement:**
- The Heritage Trust of Lincolnshire is established to advance public understanding, knowledge and appreciation of all matters relating to the cultural and physical heritage of Lincolnshire with particular regard to its archaeology and architecture with their associated landscapes, and natural environments, social history and traditional skills, and to promote their preservation and continuity for public enjoyment.
The Trustees have adopted the above mission statement not only to ensure that the objects of the Trust are met, but also with consideration to the Charity Commission’s general guidance on public benefit. In particular, consideration is given to ensure the advancement of culture and heritage within Lincolnshire and the surrounding areas.
## **ACHIEVEMENTS AND PERFORMANCE**
## **1. Business planning and fundraising strategy**
Heritage Lincolnshire completed its business plan for the period 2018-2023 and this was adopted by the Board at an extraordinary meeting in February 2018. The plan included four core themes of
1) Education and Engagement;
- 2) Archaeology;
3) Heritage Led Regeneration: and
- 4) Charitable Resources and Capacity.
This was initiated in March 2018 and is being monitored by the Senior Management Team and Board of Trustees. A Fundraising and Corporate Sponsorship plan was also adopted, which highlights the strategy for bringing funding into the organisation for projects and core costs.
-5-
**HERITAGE TRUST OF LINCOLNSHIRE**
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **ACHIEVEMENTS AND PERFORMANCE continued**
## **2. Funding**
The financial sustainability of the charity depends upon accessing a wide variety of funding sources and staff continue to be proactive in both fundraising and fee earning activities. An annual budget is set, providing targets for consultancy, commercial services, trust and foundation fundraising, and increasing efforts to encourage donations and membership subscriptions.
The focus of fundraising over the past year has been for: the development stage for the restoration of Greyfriars, Lincoln, in partnership with the City of Lincoln Council; Lincolnshire Local Listing Project; The Harlequin complex of buildings and the Town Deal regeneration projects in Boston, Skegness, Mablethorpe and Lincoln. Funding for these projects has been received from the National Lottery Heritage Fund, Architectural Heritage Fund, and the Pilgrim Trust.
Key funding partners such as the National Lottery Heritage Fund, the Architectural Heritage Fund, and Historic England continue to invest in the Trust in recognition of our expertise in historic building conservation, archaeological fieldwork and research and community engagement. A wider range of charitable trusts have also contributed to our work and the level of support we receive within the communities where we are working is also increasing.
## **3. Summary of achievements**
- i. The Chief Executive Officer and the Senior Management Team have worked closely together to manage finances and obtain funding for the trust during the year. We had a successful bid to the Culture Recovery Fund which was administered by the National Lottery Heritage Fund.
- ii. Heritage Lincolnshire’s President, Lord Cormack, has been assisting the organisation greatly in enhancing its profile within Lincolnshire.
- iii. Our annual programme of events was affected again this year by the pandemic. The Heritage Open Days programme in September continued this year despite a drop in bookings and there were over 100 events throughout the festival. Bollingbroke Back in Time took place in the summer but the event was smaller with fewer visitors permitted.
- iv. Volunteers are operating as tour guides for the Old Kings Head and Kirton. Due to the pandemic there has been a reduction in the number of volunteers along with volunteering opportunities.
- v. Our digital talks programme has been successful and we have had participants not only from all over the UK but internationally from France and America.
- vi. The Trust’s work in heritage led regeneration continues to be in demand and we have been recognised as the most active and effective building preservation trust within the East Midlands. Our Heritage at Risk Solutions Officer, funded in part by Historic England, has allowed Heritage Lincolnshire to expand the level of mentoring and support that it offers to community organisations both within Lincolnshire and throughout the East Midlands. Within Lincolnshire this has included projects in Caistor, Cleethorpes, Scrivelsby, Heckington and Boston.
- vii. Our new restoration project, Greyfriars Lincoln, is in the development stage due to be completed early in the next financial year. This project is in partnership with the City of Lincoln Council.
-6-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **ACHIEVEMENTS AND PERFORMANCE continued**
## **4. Summary of achievements continued**
- viii. Our archaeologists (APS) have continued to work within Lincolnshire and further afield, offering professional archaeological services to commercial clients. This income has allowed the Trust to reinvest in the team and in the continued professional development of our staff. The study of Long Barrow monuments within Lincolnshire is now almost completed and a report will be published shortly on the survival of these Neolithic structures, giving us further information on the prehistoric landscape of the County. A new publication has also been produced on ‘A Millennium of Salt-making: Prehistoric and Romano-British Salt Production in Fenland Lincolnshire.’
- ix. The Trustees of the Heritage Trust of Lincolnshire recognise and acknowledge that all of the Trust’s achievements are the result of the hard work, enthusiasm and skills of its staff and volunteers and they offer their thanks for their continued commitment to the Trust and its objectives.
## **Financial outcome**
The financial analysis for the year follows this report. It will be noted that overall the Trust’s incoming resources for the year have increased by 7% since 2020/21 but the current year’s incoming resources include the donation of a property valued at £245,000. If this is excluded, incoming resources have decreased by 4%. Expenditure has decreased by 8%. This resulted in a surplus on the year, which is due to the hard work and dedication of the team throughout the period. The Board of Trustees has continued to scrutinise overhead expenditure and to make savings where possible and all of the charity’s resources are carefully managed in consultation with our funding partners and advisors. For further information on the financial results of the year see pages 12 to 29.
## **Reserves policy**
Heritage Trust of Lincolnshire aims to maintain its available unrestricted reserves before pension liabilities at a level to ensure continued financial resilience and sustainability. Our aim is to strike an appropriate balance between maintaining reserves to ensure a sustainable financial future and spending the charity’s funds to further its charitable purposes for public benefit. As at 31 March 2022, the charity had unrestricted reserves of £1,103k (2020/1 £411k) of which £778k (2020/1: £243k) comprises designated funds and unrealised gains on the revaluation of properties owned by the charity.
The Trustees’ continually review and update the financial risks with which the charity operates. This assessment of risks sets the level of available unrestricted reserves that the charity aims to maintain to manage cashflow, maintain liquidity; provide for known or likely future opportunities and liabilities; and manage financial risks effectively (including to give the charity time to adjust to any significant financial shock).
On the basis of that analysis, the Trustees’ policy is to accumulate at least £480k in available unrestricted reserves and as at 31 March 2022 we need to accumulate a further £400k to meet the £480k level set by our own policy. However, as at 31 March 2022, there are restricted funds of £146k which are available for the ongoing servicing of projects, including the payment of salaries. The reserves policy is reviewed and updated annually as part of the process of preparation of the statutory accounts.
The Trustees, therefore, have put in place robust plans to grow unrestricted reserves and will continue to set realistic budgets to generate surpluses to enable accumulation of a level of available unrestricted reserves to meet the policy requirement taking into account any future fluctuations in the assessed requirement.
## **Investment policy**
Under the Memorandum and Articles of Association, the charity has the power to invest in any way the Trustees see fit. Monies received in advance are sometimes placed on short term deposits depending on cash flow and potential returns.
-7-
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022**
## **HERITAGE TRUST OF LINCOLNSHIRE**
**_____________________________________________________________________________________________________**
**Income and Grants from local and national organisations for the Financial Year ending 31 March 2022**
|**Source**|**2021/22**|**2020/21**|
|---|---|---|
|Architectural Heritage Fund|55,670|54,827|
|Alive Church|-|2,500|
|Bain ValleyGroup|5,040|-|
|Bergne-Coupland Trust|2,000|2,000|
|Birmingham Jewellery Quarter|3,000|-|
|Boson Borough Council|170,157|103,579|
|Boston District ArchaeologyIAS|1,709|-|
|Boston Preservation Trust|-|300|
|Bourne Arts and CommunityTrust|3,913|-|
|Bourne Town Hall|3,975|-|
|CentenaryMethodist Church|3,685|-|
|Cityof Lincoln Council|40,639|-|
|Co-Operative Society|-|1,425|
|East LindseyDistrict Council|18,667|5,963|
|English Heritage|15,420|12,720|
|Environment Agency|-|9,300|
|HeadleyTrust|7,500|-|
|Heart of Hastings|813|-|
|Historic England|15,800|-|
|Lincolnshire CountyCouncil|77,127|12,714|
|MembershipSubscriptions|5,598|4,374|
|Mount Zion Apolistic Church|4,145|-|
|National LotteryHeritage Fund|480,543|922,268|
|North Kesteven District Council|25,080|29,080|
|North East Lincolnshire Council|32,423|1,000|
|North Lincolnshire Council|22,962|14,722|
|Nottinghamshire CityCouncil|14,850|4,950|
|Nottingham Trent University|-|4,400|
|Our BigPicture|1,987|-|
|StSwithin’s PCC|-|450|
|South Holland District Council|1,000|1,200|
|South Kesteven District Council|19,125|25,961|
|VESR(Visitor Economy,Services and Retail Group)|3,750|-|
|WorksopPrioryand Gatehouse CommunityTrust|2,000|6,600|
||**1,038,578**|**1,220,333**|
-8-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **STATEMENT OF TRUSTEES RESPONSIBILITIES**
The Trustees (who are also the directors of Heritage Trust of Lincolnshire for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102, ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’.
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the Trustees are required to
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **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 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.
## **ON BEHALF OF THE BOARD**
**……………………………………….**
## **Charles Pinchbeck, Chairman**
## **26 January 2023**
-9-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HERITAGE TRUST OF LINCOLNSHIRE FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **Opinion**
We have audited the financial statements of Heritage Trust of Lincolnshire (the 'charitable company') for the year ended 31 March 2022 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 March 2022 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; 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 the provisions available for small entities, in the circumstances set out in note 23 to the financial statements, 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 Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Trustees has been prepared in accordance with applicable legal requirements.
-10-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HERITAGE TRUST OF LINCOLNSHIRE FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **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 Report of the Trustees.
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; or
- the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
## **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:
We have enquired of those charged with governance around actual and potential litigation and claims.
We have reviewed financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. We have enquired of staff engaged in the completion of VAT, tax and compliance work to identify any instances of noncompliance with laws and regulations.
We have audited the risk of management override of controls, including review of journal entries and large or unusual transactions, evaluating the rationale of any significant transactions outside the normal charitable activities.
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.
Nicola Lenton (Senior Statutory Auditor) for and on behalf of Dexter & Sharpe Audit Services Ltd (Statutory Auditor) Rollestone House Bridge Street Horncastle Lincolnshire LN9 5HZ
Date: 26 January 2023
-11-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
|**Notes**
**INCOME AND ENDOWMENTS**
**FROM**
Donations and legacies
2
Other trading activities
3
Investment income
4
**Income from charitable activities:**
Grants, projects and property
management
5
**Total incoming resources**
**EXPENDITURE ON**
**Costs of generating funds**
Expenditure on raising funds
6
**Charitable activities**
6
**Other costs**
6
**Total**
**Net income/(expenditure)**
Being:
**Net movement in funds**
7
Unrealised gain on fixed assets
**Net movement in funds**
**Reconciliation of funds**
Total funds brought forward
21
**Total funds carried forward**|**Unrestricted**
**Funds**
**2022**
**£**
**251,503**
**245,910**
**3,600**
**803,472**
**1,304,485**
**188,812**
**882,378**
**76,980**
**1,148,170**
**156,315**
**535,000**
**691,315**
**411,482**
**1,102,797**|**Restricted**
**Funds**
**2022**
**£**
**522**
**3,284**
**-**
**927,785**
**931,591**
**-**
**785,881**
**-**
**785,881**
**145,710**
**-**
**145,710**
**113**
**145,823**|**Total**
**Funds**
**2022**
**£**
**252,025**
**249,194**
**3,600**
**1,731,257**
**2,236,076**
**188,812**
**1,668,259**
**76,980**
**1,934,051**
**302,025**
**535,000**
**837,025**
**411,595**
**1,248,620**|Total
Funds
2021
£
4,817
210,069
3,150
1,865,655|
|---|---|---|---|---|
|||||2,083,691|
|||||211,230
1,812,590
3,700|
|||||2,027,520|
|||||56,171
-|
|||||56,171
355,424|
|||||411,595|
The statement of financial activities includes all gains and losses in the year. All incoming resources and resources expended arise from continuing activities.
-12-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **BALANCE SHEET AS AT 31 MARCH 2022**
**_____________________________________________________________________________________________________**
|**Notes**
**FIXED ASSETS**
Tangible fixed assets for charity use
10
Investment properties
10
Heritage assets
11
**CURRENT ASSETS**
Stocks and work in progress
12
Debtors
13
Cash at bank and in hand
**CURRENT LIABILITIES**
Creditors: amounts falling due within one year
14
**NET CURRENT ASSETS/(LIABILITIES)**
**LONG-TERM LIABILITIES**
Creditors: amounts falling due after one year
15
**NET ASSETS**
**The Funds of the Charity**
21
Restricted funds
Unrestricted funds:-
General funds
Designated funds:-
Building preservation reserve
Legacy reserve
Revaluation reserve
**Total Charity funds**|**£**
**393,211**
**315,520**
**28,736**
**737,467**
**444,431**|**2022**
**£**
**382,531**
**969,814**
**-**
**1,352,345**
**293,036**
**(396,761)**
**1,248,620**
**145,823**
**46,633**
**83,008**
**278,292**
**694,864**
**1,248,620**|£
334,690
349,717
1,397
685,804
(418,781)|2021
£
333,755
224,814
-|
|---|---|---|---|---|
|||||558,569
267,023
(413,997)|
|||||411,595|
|||||113
62,183
83,008
106,427
159,864|
|||||411,595|
The financial statements were approved by the Board of Trustees on 26 January 2023 and were signed on its behalf by:
Charles Pinchbeck, Chairman
-13-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
|**Notes**
**Cashflows from operating activities**
Net cash (used in)/inflow from operating activities
1
**Cashflows from investing activities**
Purchase of tangible fixed assets
Net cash (used in)/provided by investing activities
**Cashflows from financing activities**
New loans in year
Loan repayments in year
Capital repayments in year
HP Repayments in year
Net cash provided by/(used in) financing activities
**Change in cash and cash equivalents in the reporting period**
**Cash and cash equivalents at beginning of year**
2
**Cash and cash equivalents at end of year**
2|**2022**
**£**
**81,875**
**(36,142)**
**45,733**
**189,000**
**(145,476)**
**-**
**(6,670)**
**36,854**
**82,587**
**(53,851)**
**28,736**|2021
£
(133,822)
(16,446)|
|---|---|---|
|||(150,268)|
|||82,771
(4,848)
-
(9,581)|
|||68,342|
|||(81,926)
28,075|
|||(53,851)|
-14-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|Net (deficit)/surplus for the reporting period (as per the
statement of financial activities
Adjustments for:
Depreciation charges
Unrealised profit on revaluation
Value of donated property
(Increase) in stocks
Decrease/(Increase) in trade and other debtors
Increase in trade and other creditors
Net cash (used in) inflow from operating activities|**2022**
**£**
**837,025**
**22,366**
**(535,000)**
**(245,000)**
**(58,521)**
**34,197**
**26,808**
**81,875**|2021
£
56,171
15,470
-
-
(164,735)
(124,943)
84,215|
|---|---|---|
|||(133,822)|
## **2. CASH AND CASH EQUIVALENTS**
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:
## **Year ended 31 March 2022**
|Cash and cash equivalents
Bank overdrafts
**Year ended 31 March 2021**
Cash and cash equivalents
Bank overdrafts|**31.3.22**
**£**
**2,789**
**25,947**
**28,736**
**31.3.21**
**£**
**1,397**
**(55,248)**
**(53,851)**|1.4.21
£
1,397
(55,248)|
|---|---|---|
|||(53,851)|
|||1.4.20
£
28,612
(537)|
|||28,075|
-15-
**HERITAGE TRUST OF LINCOLNSHIRE**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **1. ACCOUNTING POLICIES**
## **Basis of preparation and assessment of going concern**
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 2017)’, 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, as modified by the revaluation of land and buildings.
The Trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern.
In the opinion of the Trustees there ae no major judgemental or estimation matters affecting the accounts. An important matter requiring an element of judgement relates to the recognition of income. Income is recognised in an accounting period in accordance with the stage of completion of a project based on the direct and apportioned costs incurred, which requires certain judgements and estimates.
## **Fund accounting**
- Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the trust.
- Designated funds are unrestricted funds earmarked by the Trustees for a particular purpose.
- Restricted funds are subject to the restrictions on their expenditure imposed by the donor. Expenditure that meets these criteria is charged to the fund.
## **Income**
Income is included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:
- Donations and legacies are accrued for when received.
- Grant income is recognised as the Trust becomes unconditionally entitled to the grant. Where the Charity is not unconditionally entitled to the income as at the balance sheet date the income is shown as deferred income in the balance sheet until any performance conditions are met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.
## **Expenditure**
Expenditure is accounted for on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.
- Expenditure on raising funds comprise those costs associated with field archaeology and project funding activities.
- Costs of charitable expenditure comprise those costs incurred by the Trust in the delivery of its activities and services in the furtherance of its principal activities and include both direct and indirect costs.
- Other costs include those costs associated with meeting the constitutional and statutory requirements of the charity.
- Support costs relating to charitable activities have been apportioned to projects based on management’s estimate of the level of support costs required and incurred by each project.
-16-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **1. ACCOUNTING POLICIES continued**
## **Tangible fixed assets**
Fixed assets are shown in the balance sheet at historic cost, or in the case where fixed assets have been donated at valuation at the time of acquisition, and are depreciated at rates sufficient to write off each asset over its estimated useful life.
Freehold property - not depreciated Plant & machinery - 5 years straight line Fixtures and fittings - 4 years straight line Motor vehicles - 4 years straight line
The freehold property is not depreciated as the estimated residual value is such to make any depreciation immaterial. This is a departure from the requirements of the Companies Act 2006 – true and fair view override.
## **Investment properties**
Investment properties are stated at fair value. Any surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities
## **Heritage assets**
If the charity receives any heritage assets by way of donation, it is policy to capitalise these in the balance sheet. If a value is known or easy to obtain, then this will be the cost. It is the charity’s policy to maintain these assets in a steady state of repair. Due to their historic nature, the Trustees do not therefore consider it appropriate to charge depreciation on these assets. Expenditure on these assets is recognised in the Statement of Financial Activities as it is incurred.
The charity holds two assets of historical importance. These were donated several years ago and have never had a value placed on them, as due to their nature it is difficult to determine a value. See note 11.
## **Stocks and work in progress**
Work in progress is included at the cost to date.
The value of the cost of publications is written off in the year of publication. The value of any stock of books is ignored for the purposes of these accounts.
## **Taxation**
The Charity is exempt from corporation tax on its charitable activities.
## **Pension costs and other post-retirement benefits**
The Trust has a Pension Scheme based on a money purchase policy through Standard Life for eligible employees and contributions are charged to the Statement of Financial Activities as they become payable.
## **Leasing and hire purchase commitments**
Assets under hire purchase contracts and finance leases are capitalised as tangible assets and are depreciated over their useful lives _._ Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce constant periodic rates of charge on the net obligations outstanding in each period.
## **Operating Leases**
Rentals paid under operating leases are charged on a straight line basis over the term of the lease.
## **Financial instruments**
Basic financial assets and liabilities are initially recognised at transaction price and subsequently carried at amortised cost using the effective interest method.
-17-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **2. DONATIONS AND LEGACIES**
|General donations
Gift Aid
Legacy
Heritage Open Day|**Unrestricted**
**Funds**
**2022**
**£**
**6,483**
**20**
**245,000**
**-**
**251,503**|**Restricted**
**Funds**
**2022**
**£**
**20**
**-**
**-**
**502**
**522**|**Total**
**Funds**
**2022**
**£**
**6,503**
**20**
**245,000**
**502**
**252,025**|Total
Funds
2021
£
2,476
-
2,341|
|---|---|---|---|---|
|||||4,817|
## **3. OTHER TRADING INCOME**
|Archaeology outside Lincolnshire
Publications
Membership
Miscellaneous
**VESTMENT INCOME**
Rents received
Interest received|**Unrestricted**
**Funds**
**2022**
**£**
**217,731**
**1,552**
**5,598**
**21,029**
**245,910**
**Unrestricted**
**Funds**
**2022**
**£**
**3,600**
**-**
**3,600**|**Restricted**
**Funds**
**2022**
**£**
**-**
**136**
**-**
**3,148**
**3,284**
**Restricted**
**Funds**
**2022**
**£**
-
-
-|**Total**
**Funds**
**2022**
**£**
**217,731**
**1,688**
**5,598**
**24,177**
**249,194**
**Total**
**Funds**
**2022**
**£**
**3,600**
**-**
**3,600**|Total
Funds
2021
£
196,586
2,130
4,374
6,979|
|---|---|---|---|---|
|||||210,069|
|||||Total
Funds
2021
£
3,150
-|
|||||3,150|
## **4. INVESTMENT INCOME**
## **5. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES**
|**Archaeology within Lincolnshire**
**HMRC CJRS**
**Grants**
RPA
Boston Borough Council
North Kesteven District Council
South Kesteven District Council
Carried forward|**Unrestricted**
**Funds**
**2022**
**£**
**736,127**
**-**
**-**
**9,360**
**24,080**
**16,800**
**786,367**|**Restricted**
**Funds**
**2022**
**£**
-
-
-
-
-
-
-|**Total**
**Funds**
**2022**
**£**
**736,127**
**-**
**-**
**9,360**
**24,080**
**16,800**
**786,367**|Total
Funds
2021
£
317,269
137,011
1,204
9,360
24,080
16,800|
|---|---|---|---|---|
|||||505,724|
-18-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **5. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES**
|Brought forward
**Property Management**
**Projects**
AHF Development Trusts
Birmingham Jewellery Quarter D’ment
Black Sluice I D B
Boston Town Deal
Centenary Methodist Church, Boston
Conservation consultancy BBC
Covid recovery fund
East Lindsey Town Deal
Fydell House
Greyfriars, Lincoln
Grimsby Viking Festival
The Harlequin
Isle of Axholme
Layers of History
Local Listing Project
Mount Zion, Nottingham
NHLF Covid Recovery Fund
Old King’s Head, Kirton
Outreach to Ownership
Scrivelsby Church
Townscape Heritage Initiative, Boston
Other projects|**Unrestricted**
**Funds**
**2022**
**£**
**786,367**
**19,273**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**(2,168)**
**803,472**|**Restricted**
**Funds**
**2022**
**£**
**-**
**-**
**29,947**
**3,000**
**1,050**
**73,730**
**3,685**
**26,578**
**36,751**
**42,626**
**5,670**
**53,704**
**3,750**
**20,375**
**24,886**
**-**
**53,001**
**4,145**
**126,535**
**226,200**
**3,646**
**14,048**
**45,940**
**128,518**
**927,785**|**Total**
**Funds**
**2022**
**£**
**786,367**
**19,273**
**29,947**
**3,000**
**1,050**
**73,730**
**3,685**
**26,578**
**36,751**
**42,626**
**5,670**
**53,704**
**3,750**
**20,375**
**24,886**
**-**
**53,001**
**4,145**
**126,535**
**226,200**
**3,646**
**14,048**
**45,940**
**126,350**
**1,731,257**|Total
Funds
2021
£
505,724
19,273
-
-
9,300
4,000
-
17,500
326,814
4,000
3,225
18,801
-
-
14,722
91,705
-
-
-
728,831
-
1,200
39,304
81,256|
|---|---|---|---|---|
|||||1,865,655|
Grants received, included in the above, are as follows:
|Boston Borough Council
North Kesteven District Council
South Kesteven District Council
DEFRA (Stewardship Scheme)|**Unrestricted**
**Funds**
**2022**
**£**
**9,360**
**24,080**
**16,800**
**-**
**50,240**|**Restricted**
**Funds**
**2022**
**£**
**-**
**-**
**-**
**-**
**-**|**Total**
**Funds**
**2022**
**£**
**9,360**
**24,080**
**16,800**
**-**
**50,240**|Total
Funds
2021
£
9,360
24,080
16,800
1,204|
|---|---|---|---|---|
|||||51,444|
-19-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **6. EXPENDITURE**
|Rent & Rates
Light & heat
Property repairs
Salaries
Subcontractors
Work in Progress
movement
HR & recruitment
Travel &
subsistence
Training
Materials &
supplies
Equipment Hire
Equipment repairs
& renewals
Motor expenses
Telephone
Printing, postage &
stationery
Subscriptions
Professional fees
Specialist fees
Insurance
Marketing
Sundry
Bad debts
Depreciation
Bank charges and
interest
Hire purchase
interest
Loan interest
Auditors’
remuneration
Management
charge- project
contribution
Provision for
doubtful debt|**Archaeology**
**outside**
**Lincolnshire**
**Grants and**
**Contributions**
**Archaeology**
**within**
**Lincolnshire**
**Projects**
**Un-Restricted**
**Projects**
**Restricted**
**Property**
**Management**
**Miscellaneous**
**Governance**
**Total**
**2022**
Total
2021
**£**
**£**
**£**
**£**
**£**
**£**
**£**
**£**
**£**
£
**171**
**1,292**
**549**
**-**
**84**
**99**
**-**
**2,195**
1,366
**-**
**6,475**
**-**
**148**
**5,819**
**-**
**-**
**12,442**
8,508
**-**
**6,471**
**-**
**-**
**-**
**-**
**6,471**
16,298
**136,549**
**201,171**
**437,875**
**377,375**
**-**
**-**
**-**
**1,152,970**
852,443
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
-
**(1,379)**
**-**
**(4,420)**
**-**
**(17,527)**
**-**
**-**
**(23,326)**
5,517
**118**
**3,066**
**380**
**-**
**369**
**-**
**-**
**3,933**
4,060
**4,762**
**375**
**15,270**
**2,942**
**5,404**
**82**
**-**
**28,835**
6,376
**47**
**4,827**
**152**
**-**
**1,485**
**-**
**-**
**6,511**
1,535
**1,776**
**3,713**
**5,694**
**246**
**240,896**
**60**
**-**
**252,385**
755,658
**31,015**
**12,543**
**99,456**
**89**
**3,293**
**-**
**-**
**146,396**
69,239
**175**
**9,550**
**563**
**-**
**1,784**
**-**
**-**
**12,072**
1,155
**2,573**
**1,589**
**8,250**
**-**
**-**
**-**
**-**
**12,412**
10,376
**710**
**4,293**
**2,278**
**-**
**-**
**-**
**-**
**7,281**
3,430
**923**
**509**
**2,960**
**1,019**
**11,533**
**-**
**-**
**16,944**
3,223
**1,904**
**14,186**
**6,105**
**1,772**
**483**
**-**
**-**
**24,450**
28,278
**10**
**8,916**
**32**
**2,353**
**67,240**
**-**
**-**
**78,551**
7,838
**1,784**
**(1,658)**
**5,720**
**-**
**5,044**
**5,294**
**-**
**16,184**
143,208
**1,349**
**7,384**
**4,326**
**3,424**
**993**
**300**
**-**
**17,776**
28,143
**539**
**805**
**1,728**
**200**
**5,692**
**-**
**-**
**8,964**
14,145
**2,130**
**3,030**
**6,830**
**3,354**
**6,594**
**69**
**-**
**22,007**
21,395
**940**
**11,990**
**3,013**
**-**
**-**
**-**
**-**
**15,943**
15,715
**2,409**
**12,233**
**7,724**
**-**
**-**
**-**
**-**
**22,366**
15,470
**-**
**4,967**
**-**
**-**
**133**
**-**
**-**
**5,100**
2,918
**307**
**447**
**983**
**-**
**-**
**-**
**-**
**1,737**
1,714
**-**
**6,472**
**-**
**-**
**-**
**-**
**-**
**6,472**
5,812
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**3,845**
**3,845**
3,700
**-**
**(324,646)**
**-**
**(121,916)**
**446,562**
**-**
**-**
**-**
**-**
-
**-**
**-**
**-**
**-**
**-**
**-**
**73,135**
**-**
**73,135**
-|
|---|---|
||**188,812**
**-**
**605,468**
**271,006**
**785,881**
**5,904**
**73,135**
**3,845**
**1,934,051**
2,027,520|
-20-
**HERITAGE TRUST OF LINCOLNSHIRE**
## **NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **7. NET INCOME/EXPENDITURE**
Net resources are stated after charging:
|et resources are stated after charging:|||
|---|---|---|
||**2022**|2021|
||**£**|£|
|Auditors’ remuneration|**3,845**|3,700|
|Depreciation – owned assets|**15,705**|8,809|
|Depreciation – assets on finance lease|**6,661**|6,661|
## **8. STAFF COSTS**
|Wages and salaries
Social security costs
Other pension costs|**2022**
**£**
**1,020,591**
**88,109**
**44,270**
**1,152,970**|2021
£
751,748
64,904
35,791|
|---|---|---|
|||852,443|
The average number of employees, full and part time, during the year was as follows:
|Chief Executive
Project workers
Finance
Administration and support|**2022**
**Number**
**1**
**35**
**2**
**4**
**42**|2021
Number
1
27
2
4|
|---|---|---|
|||34|
The Trust considers its key management personnel to comprise the Trustees, the Chief Executive officer and four senior managers. The total employment benefits, including pension contributions of the key management personnel were £265,025 (2021: £249,939).
No employee received emoluments of more than £60,000.
## **9. TRUSTEES’ REMUNERATION AND BENEFITS**
There were no Trustees’ remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.
## **Trustees’ expenses**
There were no Trustees’ expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021.
-21-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **10. TANGIBLE FIXED ASSETS**
|**Cost**
At 1 April 2021
Additions
Disposals
Revaluations
**At 31 March 2022**
**Depreciation**
At 1 April 2021
Charge for year
Re disposals
Re revaluations
**At 31 March 2022**
**Net Book Value**
**At 31 March 2022**
At 31 March 2021|**Investment**
**Properties**
**Land and**
**Building**
**Used by**
**Charity**
**Motor**
**Vehicles**
**Plant and**
**machinery**
**Fixtures**
**and**
**fittings**
**Total**
**£**
**£**
**£**
**£**
**£**
**£**
255,000
295,000
26,645
48,039
138,721
763,405
245,000
-
-
26,720
9,422
281,142
-
-
-
-
-
-
500,000
35,000
-
-
-
535,000|
|---|---|
||**1,000,000**
**330,000**
**26,645**
**74,759**
**148,143**
**1,579,547**|
||30,186
-
15,922
36,989
121,739
204,836
-
-
6,661
7,777
7,928
22,366
-
-
-
-
-
-
-
-
-
-
-
-|
||**30,186**
**-**
**22,583**
**44,766**
**129,667**
**227,202**|
||**969,814**
**330,000**
**4,062**
**29,993**
**18,476**
**1,352,345**|
||224,814
295,000
10,723
11,050
16,982
558,569|
Included in the net book value of £1,352,345 (2021: £558,569) is £4,062 (2021: £10,723) of assets held under finance lease or hire purchase contracts.
The Old School property at Heckington was valued at market value of £295,000 by Tony Gravel, Banks Long & Co on 27 January 2018. On 19 April, 2022, it was valued at £330,000 by J A Swithinbank. Investment properties comprise Mill Hill Cottage held at valuation of £124,814, performed in January 2005 by Turner, Evans and Stevens; the Old King’s Head, Kirton, valued at £600,000 by J A Swithinbank on 19 April 2022 and a cottage at 27 High Street, Tattershall, bequeathed to the Charity on 10 June 2021 and valued at £245,000 by Robert Bell & Company. The Old Kings Head was acquired in 2016 and this was funded by a £100,000 loan from the Architectural Heritage Fund. Prior to this year’s revaluation, the Old King’s Head was held at the value of the £100,000 acquisition.
When acquired, The Old King’s Head was in a very poor condition but has since been restored with the help of a grant received from the National Lottery Heritage Fund and fundraising by the Charity. The costs of refurbishment have been recognised in the Statement of Financial Activities as a restricted project cost. The refurbishment costs have not been capitalised as part of the asset.
At this stage the Charity plans to repay the Architectural Heritage Fund loan by taking out a commercial mortgage on the property.
-22-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **NOTES TO THE FINANCIAL STATEMENTS – CONTINUED FOR THE YEAR ENDED 31 MARCH 2022**
## **11. HERITAGE ASSETS**
The charity holds two assets of historical importance – Holbeach Bunker and Tupholme Abbey.
Tupholme Abbey, which is classed as a Scheduled Ancient Monument, was originally transferred from Lincolnshire County Council in 1991 at a Nil value.
The Holbeach Bunker, a R.O.C. Monitoring Post, was transferred to the Trust by Nicholas Lane in 2001 at a Nil value.
## **Unquoted investments**
|**At Cost**|**2022**|2021|
|---|---|---|
||**£**|£|
|HTL Enterprises Ltd – 1 ordinary share of £1|
**nil**|nil|
The charity owns the whole of the issued share capital being 1 ordinary subscriber share of £1 issued at par. The intercompany accounts is shown in debtors.
The financial results were as follows: Summary Profit and Loss Account:
|**2022**
**£**
Turnover
**104,614**
Costs
**199,479**
Operating Profit / (loss)
**(94,865)**
Profit / (Loss) Absorbed
**(94,865)**
The shareholders' funds at the end of the year were
**(117,701)**
**TOCKS AND WORK IN PROGRESS**
**2022**
**£**
Work in progress
**414,543**
Provision against recoverability
**(21,332)**
**393,211**
**EBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
**2022**
**£**
Trade debtors
**264,907**
Other debtors and taxes
**50,613**
HTL Enterprises Ltd
**73,135**
Provision for doubtful debt
**(73,135)**
**315,520**|2021
£
-
22,837|
|---|---|
||(22,837)|
||(22,837)|
|||
||(22,836)|
||2021
£
364,690
(30,000)|
||334,690|
||2021
£
225,344
93,364
31,009
-|
||349,717|
## **12. STOCKS AND WORK IN PROGRESS**
## **13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
-23-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Bank loans and overdrafts
Trade creditors
Social security and other taxes
Obligations under finance leases and hire purchase contracts
Other creditors
Deferred income
Deferred income is analysed below:
AHF Development Trust
Boston Borough Council
Boston Town Deal
Conservation Consultancy
Covid Recovery Fund
HTL Volunteer 500
Layers of History
Legacies
Little Steeping
NLHF Covid Recovery Fund
OKH Celebrate
Outreach to Ownership
Prepaid donations
Property management
Schools Club
South Lincs Walking Festival
Tupholme – Survey and Repairs
Wolds Walking Festival
Deferred income at 1 April 2021
Released from previous accounting periods
Income deferred in the current year
Deferred income at 31 March 2022|**2022**
**£**
**72,401**
**149,262**
**92,933**
**2,633**
**27,575**
**99,627**
**444,431**
**2022**
**£**
**29,868**
**1,149**
**10,637**
**-**
**29,002**
**271**
**-**
**1,000**
**450**
**7,335**
**-**
**10,354**
**1,385**
**3689**
**-**
**-**
**4,348**
**139**
**99,627**
**56,841**
**(56,841)**
**99,627**
**99,627**|**2021**
**£**
69,557
248,401
16,963
6,635
20,384
56,841|
|---|---|---|
|||418,781|
|||**2021**
**£**
29,827
1,149
-
5,578
-
-
10
-
450
-
270
-
3,410
3,689
3,994
4,116
4,348
-|
|||56,841|
|||68,116
(42,532)
31,257|
|||56,841|
-24-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **15. CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR**
|Bank loans
Obligations under finance leases and hire purchase contracts
The Architectural Heritage Fund loan
LEAP loan|**2022**
**£**
**134,990**
**-**
**198,771**
**63,000**
**396,761**|**2021**
**£**
149,558
2,668
198,771
63,000|
|---|---|---|
|||413,997|
The Architectural Heritage Fund loan is repayable up to 48 months from initial drawdown, at an interest rate of 6.5% per annum.
The bank loan is repayable over 20 years at an interest rate of 4.96%.
The LEAP loan is repayable after 5 years at an interest rate of Bank of England base rate plus 2%.
## **16. BANK LOANS**
|Within one year
Between one and two years
Between two and five years
More than five years|**2022**
**£**
**72,401**
**214,417**
**40,404**
**78,940**
**406,162**|2021
£
14,309
15,401
47,840
285,088|
|---|---|---|
|||362,638|
## **17. SECURED CREDITORS**
|Bank loans
Obligations under finance leases and hire purchase contracts
The Architectural Heritage Fund loan
LEAP loan|**2022**
**£**
**207,391**
**-**
**198,771**
**63,000**
**469,162**|2021
£
219,115
9,303
198,771
63,000|
|---|---|---|
|||490,189|
The Architectural Heritage Fund loan is secured on the property being financed by the loan.
The LEAP loan is secured on the property being financed by the loan.
The bank loan is secured on the properties owned by the Charity.
The hire purchase contracts are secured against the asset for which they provided the original finance.
-25-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **18. LEASING AGREEMENTS**
Minimum lease payments fall due as follows:
|Net obligations repayable:
Within one year
Between one and five years
Net obligations repayable:
Within one year
Between one and five years
In more than five years|**Hire purchase contracts**
**2022**
2021
**£**
£
**2,633**
6,635
**-**
2,668
**2,633**
9,303
**Non-cancellable operating leases**
**2022**
2021
**£**
£
**7,777**
-
**31,108**
-
**8,425**
-
**47,310**
-|
|---|---|
## **19. PENSION SCHEME**
The Trust operates a Pension Scheme provided by Standard Life. The Trusts costs are the equivalent of 5% of Qualifying Members’ Pay. At 31 March 2022 there were 42 (2021: 34) members of staff eligible under the scheme rules for inclusion in the scheme. The total pension costs for the year was as follows:
|Standard Life
**20.**
**ANALYSIS OF NET ASSETS BETWEEN FUNDS**|**2022**
**£**
**44,270**|2021
£
35,791|
|---|---|---|
||||
|Tangible Fixed Assets
Current Assets
Total Liabilities
Net assets at 31 March 2022|**Unrestricted**
**Funds**
**£**
**1,352,346**
**425,177**
**(674,726)**
**1,102,797**|**Restricted**
**Funds**
**£**
**-**
**369,498**
**(223,675)**
**145,823**|**Total**
**Funds**
**£**
**1,352,346**
**794,675**
**(898,401)**|
|---|---|---|---|
||||**1,248,620**|
-26-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **21. MOVEMENT IN FUNDS**
|**Unrestricted funds**
General reserve
Revaluation reserve
**Designated funds**
Building preservation reserve
Legacy reserve
**Total Unrestricted and**
**Designated funds**
**Restricted funds**
Donations & legacies
Other trading activities
**Projects:**
AHF Development Trusts
Birmingham Jewellery Quarter
Black Sluice
Boston Town Deal
Centenary Methodist Church
Conservation Consultancy
Covid Recovery Fund
East Lindsey Town Deal
Fydell House
Greyfriars Lincoln
Grimsby Viking Festival
The Harlequin
Isle of Axholme
Local Listing Project
Mount Zion, Nottingham
NHLF Covid Recovery Fund
Old King’s Head, Kirton
Outreach to Ownership
Scrivelsby Church
Townscape Heritage Boston
Other Restricted Projects
**Total Restricted funds**
**Total Funds**||At
1 April
2021
£
62,183
159,864
83,008
106,427
411,482
At 1 April
2021
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
113|**Incoming**
**Resources**
**£**
**1,059,485**
**535,000**
**-**
**245,000**
**1,839,485**
**Incoming**
**Resources**
**£**
**522**
**3,284**
**29,947**
**3,000**
**1,050**
**73,730**
**3,685**
**26,578**
**36,751**
**42,626**
**5,670**
**53,704**
**3,750**
**20,375**
**24,886**
**53,001**
**4,145**
**126,535**
**226,200**
**3,646**
**14,048**
**45,940**
**128,518**|**Outgoing**
**Resources**
**Transfer**
**At**
**31 March**
**2022**
**£**
**£**
**£**
**(1,075,035)**
**-**
**46,633**
**-**
**-**
**694,864**
**-**
**-**
**83,008**
**(73,135)**
**-**
**278,292**
**(1,148,170)**
**-**
**1,102,797**
**Outgoing**
**Direct**
**Resources**
**Transfer**
**Project**
**Contribution**
**At 31 March**
**2022**
**£**
**£**
**£**
**£**
**(522)**
**-**
**-**
**-**
**(3,284)**
**-**
**-**
**-**
**(120)**
**-**
**(29,827)**
**-**
**-**
**-**
**-**
**3,000**
**(2,009)**
**-**
**-**
**(959)**
**(2,505)**
**-**
**(71,225)**
**-**
**(765)**
**-**
**-**
**2,920**
**(53)**
**-**
**(26,525)**
**-**
**(10,031)**
**-**
**(26,720)**
**-**
**(1,352)**
**-**
**(41,274)**
**-**
**(27)**
**-**
**-**
**5,643**
**(19,702)**
**-**
**(34,002)**
**-**
**(4)**
**-**
**-**
**3,746**
**(15,148)**
**-**
**-**
**5,227**
**(2,100)**
**-**
**-**
**22,786**
**(596)**
**-**
**(51,405)**
**1,000**
**-**
**-**
**-**
**4,145**
**(40,086)**
**-**
**(78,311)**
**8,138**
**(226,200)**
**-**
**-**
**-**
**-**
**-**
**(3,646)**
**-**
**(3,481)**
**-**
**-**
**10,567**
**(924)**
**-**
**(45,016)**
**-**
**(10,410)**
**-**
**(38,611)**
**79,610**|
|---|---|---|---|---|
||||||
||||||
|||113|**931,591**|**(339,319)**
**-**
**(446,562)**
**145,823**|
|||411,595|**2,771,076**
**(1,487,489)**
**-**
**(446,562)**
**1,248,620**||
-27-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________________________________**
## **22. RELATED PARTY DISCLOSURES**
The Charity has a close working relationship with the local authorities in Lincolnshire, the area in which it conducts its **c** haritable activities. This includes having representation on the Heritage Trust of Lincolnshire Advisory and Liaison Committee. These organisations provide funding which has been included within the financial statements as ‘Incoming resources from charitable activities’.
Heritage Trust of Lincolnshire owns the whole of the issued share capital of HTL Enterprises Ltd. The company’s principal activity will be hospitality. HTL Enterprises will lease the property on completion of the Old King’s Head refurbishment project at market value from Heritage Trust of Lincolnshire. Costs incurred on behalf of HTL Enterprises Ltd amount to £73,135 (2021: £39,010).
During the year to 31 March 2022, in the face of delays in expected funding, a member of Key Management Personnel extended a cash flow loan to the charity. The balance as at 31 March is £57,000. The loan is expected to be repaid in full in the year to 31 March 2023.
## **23. APB ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES**
In common with many other businesses of our size and nature we use our auditors to assist with the preparation of the financial statements.
-28-
## **HERITAGE TRUST OF LINCOLNSHIRE**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022**
|**_______________________________________________________________________**
**INCOMING RESOURCES**
**Voluntary income**
Various donations
Legacy
**Activities for generating funds**
Archaeology outside Lincolnshire
Publications
Membership
Miscellaneous
**Investment income**
Rent received
Deposit account interest
**Incoming resources from charitable activities**
Archaeology within Lincolnshire
Grants
Projects
Property Management
HMRC JRS
**Total incoming resources**
**RESOURCES EXPENDED**
Rent & rates
Light & heat
Property repairs
Salaries
Subcontractors
Work in Progress movement
HR & recruitment
Travel & subsistence
Training
Materials & supplies
Equipment hire
Equipment repairs & renewals
Motor expenses
Telephone
Printing, postage & stationery
Subscriptions
Professional fees
Specialist fees
Insurance
Marketing
Sundry
Bad debts
Depreciation
Bank charges and interest
Hire purchase interest
Loan interest
Auditors’ remuneration
Provision for doubtful debt
Total resources expended
Net (deficit)/surplus|**______________**
**2022**
**£**
**7,025**
**245,000**
**217,731**
**1,688**
**5,598**
**24,177**
**3,600**
**-**
**736,127**
**50,240**
**925,617**
**19,273**
**-**
**2,236,076**
**2,195**
**12,442**
**6,471**
**1,152,970**
**-**
**(23,326)**
**3,933**
**28,835**
**6,511**
**252,385**
**146,396**
**12,072**
**12,412**
**7,281**
**16,944**
**24,450**
**78,551**
**16,184**
**17,776**
**8,964**
**22,007**
**15,943**
**22,366**
**5,100**
**1,737**
**6,472**
**3,845**
**73,135**
**1,934,051**
**302,025**|**________________**
2021
£
4,817
-
196,586
2,130
4,374
6,979
3,150
-
317,269
51,444
1,340,658
19,273
137,011
2,083,691
1,366
8,508
16,298
852,443
-
5,517
4,060
6,376
1,535
755,658
69,239
1,155
10,376
3,430
3,223
28,278
7,838
143,208
28,143
14,145
21,395
15,715
15,470
2,918
1,714
5,812
3,700
2,027,520
56,171|
|---|---|---|
This page does not form part of the statutory financial statements.
-29-