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2020-10-31-accounts

MANCHESTER HISTORIC BUILDINGS TRUST

(A company limited by guarantee)

ANNUAL REPORT

AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED OCTOBER 31 2020

Company number: 3578992 Charity number: 1080606

MANCHESTER HISTORIC BUILDINGS TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED OCTOBER 31 2020

I NDEX

Administrative information 1
Trustees’ and Directors’ annual report 2 – 7
Independent examiners’ report 8
Group statement of financial activities 9
Charity statement of financial activities 10
Group balance sheet 11
Charity balance sheet 12
Group and Charity statements of cash flows 13
Notes to the financial statements 14 – 25

MANCHESTER HISTORIC BUILDINGS TRUST ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED OCTOBER 31 2020

PRESIDENT J R Allan
DIRECTORS AND TRUSTEES F P Galvin (Chair)
F Drainey (Treasurer)
A Higgins (Secretary)
L Collins (Vice Chair)
J Baxter
R Ellul (resigned 23/01/2020)
N Eyre
A Mapplebeck (appointed19/09/2020)
A O’Brien
M Pearce (resigned 19/09/2020)
V Watson
E Williams
COMPANY SECRETARY Anne Higgins
PRINCIPAL STAFF
Part of key management: Sally Jastrzebski-Lloyd House Manager
Other members of staff:
Rachel Sills Events Coordinator
Dympna Gould House Assistant
Ellie Algieri Wedding & Conference Coordinator until 30/9/2020
REGISTERED OFFICE 20 Market Street
Altrincham
Cheshire
WA14 1PF
PRINCIPAL PLACE OF BUSINESS 84 Plymouth Grove
Manchester M13 9LW
ACCOUNTANTS & Chittenden Horley Ltd
INDEPENDENT EXAMINERS Chartered Accountants
456 Chester Road
Old Trafford
Manchester M16 9HD
BANKERS Royal Bank of Scotland
CAF Bank
SOLICITORS DTM Legal LLP
The Plaza
100 Old Hall Street
Liverpool L3 9QJ

1

MANCHESTER HISTORIC BUILDINGS TRUST TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED OCTOBER 31 2020

The trustees present their annual report together with the consolidated financial statements of the charity and its subsidiary company for the year ended October 31 2020 which are also prepared to meet the requirements for a directors’ report and accounts for Companies act purposes.

REPORTING FRAMEWORK

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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 (FRS102) (effective 1 January 2019), referred to as the Charities SORP (FRS 102) (second edition – October 2019).

OBJECTIVES

Chartable objects

The objectives of the Charity, for the majority of the year were:

“ ~~t~~ o preserve for the benefit of the townspeople of the ten districts which form the County of Greater Manchester, and of the nation at large, whatever of historical, architectural and constructional heritage may exist in and around the ten Districts of Greater Manchester aforesaid in the form of buildings of beauty or historical, architectural or constructional interest and to advance the education of the public in the said heritage and to undertake such other charitable activities as may benefit the people of or visitors to the said county of Greater Manchester.”

However, these were amended by special resolution dated September 19 2020, to read as follows:

“The objects of the Charity are:

To preserve for the benefit of the people of the townspeople of the ten districts which form the County of Greater Manchester and of the Nation, the historical, architectural and constructional heritage associated with 84 Plymouth Grove, Manchester (‘The House’) the former home of William and Elizabeth Gaskell (including any structure or erection, and any part of the building as so defined) and to advance the education of the public in the said heritage and to undertake such other charitable activities as may benefit the people of or visitors to the said County of Greater Manchester.

To acquire, preserve, document, interpret and make accessible exhibits, objects and collections relating to the literary, social and historical impact and influence of Elizabeth Gaskell and her family and to the history of the House through provision of a museum service for the purpose of educating and informing the public .”

Activities

The Charity fulfils its objectives through the restoration of Gaskell House and its operation as a museum and visitor attraction.

Elizabeth Gaskell’s House is a restored Grade II* regency style historic House in Manchester, home to the Victorian author Elizabeth Gaskell and her family. This house is important because of its association with the writer who lived here from 1850-65, and members of her family who continued to occupy it until 1913. Elizabeth Gaskell was one of the foremost nineteenth century writers whose work has a continuing appeal and is regularly performed on stage, screen and radio and published worldwide in numerous translations. Her husband William, Minister at Manchester’s Unitarian Cross Street Chapel, and their daughters were deeply involved in the cultural and educational life of the city, so the individual contributions which they each made are all reflected in the way the house is interpreted.

2

MANCHESTER HISTORIC BUILDINGS TRUST TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED OCTOBER 31 2020

ACTIVITIES AND ACHIEVEMENTS

In common with most Heritage Attractions in the UK (and businesses in general) 2020 has been a very difficult year as a result of the restrictions arising from the Covid 19 pandemic. In normal times the house would have been open three days a week to the public and for private tours, room hires, events and weddings on other days. These core activities have been severely impacted by the pandemic.

In summary, and in normal times, the core activities are:

Now in its sixth year of operation the staff, Trustees and volunteers have worked energetically through the pandemic to maintain momentum through a lively programme of on-line talks, which have proved to be very popular and which have increased participation. A wider range of people were able to enjoy these talks than would ordinarily have been able to attend in person. When restrictions were eased in August the house reopened to visitors with comprehensive safety measures in place and with strict adherence to government guidance. Also, between August and December, and once-again following government guidance, eight weddings were hosted in the house which were facilitated by staff and volunteers. Also popular during the Autumn were our monthly second-hand book sales which continued when Museum shops were allowed to reopen. Post-pandemic it is planned to continue the programme of on-line talks, to develop further the number of weddings which are hosted and to promote and expand the book sales.

Average spend in the Tea Room has increased by 50p to £4.50 and additional retail lines have been added over the past 12 months. A new volunteer-led Tea Room development group has also been established who are exploring ways to increase spending whilst maintaining high standards of hygiene and food safety. Level 2 Food Hygiene training has been completed by many volunteers and staff and will be offered to all volunteers from January 2020. During 2019/20 2,132 visitors were welcomed to the House (Nov 19March 20 and Aug-Oct 20) and 165 people joined online talks in September and October 2020.

Public benefit

The Trustees have considered the Charity Commission guidance on public benefit, especially in relation to setting entrance fees and making the services that we offer more accessible. In addition, the Trustees are committed to delivering a comprehensive range of education and outreach activities which were included in the original business plan and will be included in the updated business plan originally planned for early 2020 but now deferred to the summer of 2021. The main thrust of the updated business plan will be directed towards broadening the audience base and generating additional income which will contribute to long term sustainability. A sustainable operation will ensure that the public benefits which the project has generated will continue in future years. Especially important in the post-covid period will be the programme of paid-for on-line talks and smaller weddings which are expected to remain popular.

Contribution of volunteers

The house continues to depend upon its loyal team of approximately 60 volunteers for its operation who give their services totally free of charge to enable the house to be opened on public open days when they serve as room guides and staff in the tea-room. They also facilitate tour group visits and events and educational activity and have adapted these activities to be delivered on-line. Established groups include a Housekeeping team, Documentation Group, Research Group, Fundraising group, Learning Programme and Exhibition Project Team.

Volunteers are central to our work and draw on the local community and more widely, from ages between 16 and 93, offering opportunities for people of all ages to develop new skills and friendships. Elizabeth Gaskell’s House’s location means it attracts students from all over the world looking for experience of working in a heritage venue. The House is proud to say that many exvolunteers go on to get paid jobs at other cultural venues thanks to volunteering at EGH. Staff and Volunteers are offered a range of opportunities from conservation cleaning to marketing and online tour training. As part of the resilience project there is now an active under 25s volunteer group who are looking at developing initiatives targeting younger audiences.

Annual volunteer surveys report a number of positive outcomes which have resulted from their participation in volunteering, including development of skills and knowledge, development of social support networks, positive feelings associated with their work being appreciated and valued, and practical outcomes including access to training and support into employment. During the Covid 19 pandemic support networks for volunteers have included regular newsletters, WhatsApp groups, Zoom hosted meetings, quizzes and ‘catch-up’ social events. For Trustees Board Meetings have also been moved successfully on-line and are hosted on Zoom.

3

MANCHESTER HISTORIC BUILDINGS TRUST TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED OCTOBER 31 2020

FINANCIAL REVIEW

Overview

The group had a surplus on unrestricted general funds, before transfers, for the year of £10,405, after benefitting from the resilience funding from HLF which will help the group continue to work towards a sustainable operating model.

The subsidiary has continued to operate Gaskell House and has borne an appropriate share of the costs, and with appropriate grant support from the Trust to support the charitable work it undertakes on behalf of its parent charity it broke even. It is intended to make surpluses in future which will be gift aided to the charity.

Risk management

As part of the Governance Review a task and finish group of two board members and the House manager was set up to create a Risk Register. This was produced and was approved by the board in Jan 2020. Also arising from the Resilient Heritage Funding is the preparation of a new business plan, incorporating a revised strategy, and is being worked on by a working group of board members, the House Manager and the appointed National lottery Heritage Fund mentor. This will be completed by the Summer of 2021. The new business plan will focus on continuing to generate increased income levels to sustain staffing and operational costs and specific post-covid strategies.

Reserves

The charity is required to hold financial reserves for the following reasons:

Considering the scale of the charity’s operation the Trustees consider that the required level of free reserves (unrestricted funds not invested in fixed assets or otherwise designated), to address a) to c) should be in the region of £60,000 - £80,000, and that a designated fund is required for the building maintenance of £60,000.

The Trustees have formally designated £60,000 of reserves for a Buildings Maintenance Fund, especially important now that it is six years since the House opened to the public and seven years since the exterior of the house was painted. Exterior painting is now required to maintain a smart appearance and to help preserve the building fabric including doors, window frames and guttering and so it is expected that this work, and other essential maintenance will be progressed during the next 12 months.

At October 31 2020 free reserves are £55,590, just below the bottom of the target range.

Going concern

The Trust was financially viable before the Covid 19 pandemic as evidenced by our end of year financial performance. The trustees are aware that the current health and business uncertainties caused by the Covid 19 pandemic continue to be a major concern and continues to have a severe negative impact on the global and UK economy.

During the year, and to comply with government directives and to safeguard the health and well-being of staff, volunteers and visitors, the House was closed to visitors and all commercial activities ceased from March 23 2020. During this period of ‘lock-down’ all staff were placed on furlough leave in order that the charity could avail itself of support from the Government’s Job Retention Scheme (JRS)which has paid 80% of all salaries, whilst the Trustees agreed that MHBT would ‘top-up’ salaries by the remaining 20% until the end of July 2020, when the employer’s contribution would become mandatory and would be an increasing burden on our finances through to the end of the JRS.

The Government announcement on 25 June that Museums and Historic Houses could reopen from 4[th] July has allowed the Trustees to bring all staff back from furlough leave from 1 August 2020 in preparation for reopening the House on 12 August with timed tickets, cashless payments and social distancing. Weddings, an important source of income for the House, were also be able to resume from 4[th] July.

To summarise the central Government support already received and which will offset the negative effects on income of the Covid 19 pandemic, are: -

In addition, we also made a successful application to the National Lottery Heritage Fund’s Emergency Fund and received a NLHF Emergency Fund grant of £50,000.

Collectively these sources of support total £98,921.

4

MANCHESTER HISTORIC BUILDINGS TRUST TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED OCTOBER 31 2020

Given these additional sources of support the Trustees are confident that the Charity is a Going Concern.

Over the winter months of 20/21 we have also benefitted from Local Restrictions Support Grants totalling £15,000 (ongoing) and VAT reduction to 5% on entrance fees and refreshments.

We also made a successful application to the Culture Recovery Fund (Round 1) and received a grant of £49,700 to cover staffing and overheads for the months of December 2020 to March 2021.

A further application has now been made to the Culture Recovery Fund (Round 2) for a sum of £34,600 which will cover staffing costs and overheads for the months of April to June 2021, and a decision is expected before the end of March 2021.

As the public health context has developed and changed, we have adapted our plans by taking the opportunity to open the house to visitors and wedding guests when it was possible to do so (and within guidance), and will do so once again when regulations allow.

FUTURE PLANS

After all sources of Covid grants have been spent (by June 2021), we will also be able to reactivate an unspent portion of the Resilient Heritage Funding (already secured) which will sustain some staffing costs for a further 5 months. We will also redouble our efforts to use our resources (financial and HR) wisely to enhance the existing offer and to generate new activity. We are keen to diversify income streams and extend our reach into more commercial areas. The main potential for this increased activity is in the areas of weddings where we have already established ourselves as a venue specialising in smaller weddings. This appeals to a wide diversity of customers including Muslim, and same sex couples who comment that the staff and volunteers are very welcoming and help to create a relaxed, informal and non-intimidating atmosphere.

We also pride ourselves on being an affordable option. We feel that we could encourage further development of this side of the business if greater resources (including sustained staff input) could be found to invest in this through attendance at wedding fairs (when these can resume), new marketing activity through inclusion in press and wedding sector publications and through wider marketing of what the house has to offer as a unique venue. We also believe that there will be increased demand for weddings as restrictions are eased and wedding couples resume their plans.

During the pandemic we have also increased the frequency and variety of our on-line activities, especially the talks programme which routinely now generate approximately £300 per talk with an expected income from virtual on-line tours of £250 per tour. We hope to expand this activity further. We are hopeful that from April onwards visitors will return but anticipate that it will take quite some time for numbers to return to pre-pandemic levels and are realistic in our expectations and projections. We also plan to work to improve our on-line educational content for families and on-line engagement activities.

In the year after the various grants end, we will also concentrate our fundraising, planning and delivery efforts to achieve a number of other capital projects which include; the reconstruction and launch of Elizabeth Gaskell’s Bedroom; a new temporary exhibition on the novel ‘Cranford’; the Amazons of Ardwick AIM/BIFFA Project; the progression of our ambition to become an Arts Council Accredited Museum; and the reorganisation of our collection store.

Risks associated with our current plans include the possible surrender of a lease by a Tenant for one large room and one small room which has previously brought in an income of £12,000 pa. The Tenant has not been able to make use of the space because of the pandemic. We hope that the Tenant will not give up the lease but if they do, we intend to use the liberated space constructively to provide new attractions for visitors (enhanced exhibition and interpretation space).

Funding applications and fundraising will take place over the next two years to help fund the development of the first-floor visitor experience and to reinstate the conservatory.

Funding from the Hibbert Trust was secured in Dec 2019 which has funded the installation of a Time-line and The Family Tree. and additional training on the influence of Unitarianism on Elizabeth’s life and works. Throughout 2020 fundraising efforts were concentrated on raising funds for the reconstruction of Elizabeth Gaskell’s Bedroom and over £20,000 was raised. Work is progressing well with a view to opening the room as a new attraction after Easter 2021.

Planning will also start this year on a proposal to reinstate the conservatory and to create an audio-visual tour of the garden with a view to work starting in 2022.

Other risks are more difficult to mitigate since they rely on the general/national progress towards normality which is so difficult to predict at this point in time. If the recovery from the pandemic is slow, and if the Government’s Job Retention Scheme is extended, we do have the option to furlough staff again, though we are reluctant to do this as there is much work needed behind the scenes to prepare for a sustained recovery and we do not wish to lose momentum. If this was necessary, we would ask Trustees to step in to perform essential duties which could save up to £1,000 per month.

Amongst other plans is increased marketing of the House as a wedding venue, more on-line sales (talks and retail), and the opening of a new period room on the top floor (Elizabeth Gaskell’s Bedroom) which should prove popular, and an extra incentive to visit, for both new and returning visitors.

5

MANCHESTER HISTORIC BUILDINGS TRUST TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED OCTOBER 31 2020

Future income and fundraising plans will contribute to our sustained recovery and longer-term sustainability by contributing directly to our Revenue budget and through Capital projects that will encourage more visitors (and repeat visitors) by providing an enhanced visitor offer.

We already have good financial controls and regular monitoring and reporting processes in place and have during this past year established an extra regular bi-monthly ‘Management & Finance’ meeting which meets before the meeting of the main Board of Trustees and reports to it with any recommendations or actions that are required (both meeting cycles on Zoom currently).

The costs of admission to the House were increased in November 2019 by 50p. Increases to wedding charges, events and external speakers will also be introduced in the next 12 months, with a review of group tour costs in 2021. Prices in the Tea Room were also reviewed and increased in Nov 19 in line with increased expenditure.

The House will be applying for Museum Accreditation in 2021 which if successful will provide greater funding and training opportunities for volunteers and staff, and give the House more scope for loans of artefacts, and for national recognition. A VAQAS (Visitor Attractions Quality Accreditation) award was granted to the House in March 2020 which will create stronger links with Visit England and offer new marketing opportunities as well as supporting the museum accreditation application.

STRUCTURE GOVERNANCE AND MANAGEMENT

Governing document

The Charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association dated June 10 1998, as amended by special resolution dated September 19 2020. It is registered as a charity with the Charity Commission.

Members of the company

Those eligible for membership of the company are the original subscribers to the Memorandum and Articles of Association and “such other persons or corporations as may desire to be admitted to membership and who are elected by the Governing Body”. There are currently 170 members of the company, none of which are corporations, each of whom agrees to contribute a sum not exceeding £1 in the event of the charity being wound up.

Appointment of Directors and Trustees – The Governing Body

The Directors, who are the Trustees, are collectively known as the Governing Body. They are appointed either by the Governing Body or by the members in general meeting.

One third of the Trustees retire by rotation each year, being the longest in office and are eligible for re-election. Only those retiring by rotation or those nominated by the Governing Body are eligible for election, unless a member gives not less than fourteen and not more than sixty days written notice (delivered to the Company’s registered office) of their intention to stand or propose someone else for election (who has also confirmed in writing their willingness to be elected).

Trustee recruitment, induction and training

Trustees are recruited for their individual skills, experience and expertise and usually have an interest in the Gaskells, either through Elizabeth’s writings or William’s religious and social work (in which he was supported by the rest of the family) and/or an interest in promoting the house as a community, arts and cultural venue. The recent Governance review also included a skills audit of the board and the decision has been made to recruit for two new posts with specific skills in 2021.

Trustees are made aware of the resources available on the Charity Commission website.

Organisation

The Governing Body, which must be not be less than five members or more than fifteen, administers the Charity and meets as necessary, now bi-monthly. Responsibility for day to day management is delegated to the House Manager.

Related parties

Details of related party transactions are given in the notes to the financial statements.

Co-operation with other organisations/charities

Elizabeth Gaskell’s House is part of an effective network of small heritage attractions across Manchester. The Hidden 8 work together to market their venues and cross-promote events and group tours.

Elizabeth Gaskell’s House has also hosted events as part of Manchester Literature Festival and is a part of the consortium of organisations developing Manchester’s UNESCO City of Literature activities.

6

MANCHESTER HISTORIC BUILDINGS TRUST TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED OCTOBER 31 2020

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The trustees (who are also directors of the company for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the 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 these financial statements, the trustees are required to:

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

SMALL COMPANY PROVISIONS AND APPROVAL

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

Approved by the Board of Trustees and signed on its behalf by:

Frank Galvin - Chair

Date:

7

INDEPENDENT EXAMINERS’ REPORT TO THE TRUSTEES OF MANCHESTER HISTORIC BUILDINGS TRUST FOR THE YEAR ENDED OCTOBER 31 2020

I report to the charity trustees on my examination of the consolidated accounts of the Group comprising Manchester Historic Buildings Trust (the company/charity) and its subsidiary for the year ended October 31 2020 which are set out on pages 9 to 25.

Responsibilities and basis of report

As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’) and you have chosen to prepare consolidated accounts for the Group. You are satisfied that the accounts of both the Charity and the Group are not required by charity law to be audited and have chosen instead to have an independent examination.

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your consolidated accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Peter Smith BA FCA DChA

For and on behalf of: Chittenden Horley Limited Chartered Accountants 456 Chester Road Old Trafford Manchester M16 9HD Date:

8

MANCHESTER HISTORIC BUILDINGS TRUST GROUP STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE YEAR ENDED OCTOBER 31 2020

Notes
Incoming resources from generated funds:
Donations
2
Charitable activities
3
Other trading activities
4
Investment income - bank interest
TOTAL INCOME
EXPENDITURE
Raising funds
6
Charitable activities
7
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
BEFORE TRANSFERS
9
Transfers between funds
16
NET MOVEMENT IN FUNDS
16
FUNDS BROUGHT FORWARD
16
FUNDS CARRIED FORWARD
16		 Unrestricted funds
General
Designated
£
£
48,856
-
14,504
-
24,829
-
464
-
88,653
-
18,054
-
60,194
1,163
78,248
1,163
10,405
(1,163)
(60,000)
60,000
(49,595)
58,837
121,455
2,113
71,860
60,950		 Unrestricted funds
General
Designated
£
£
48,856
-
14,504
-
24,829
-
464
-
88,653
-
18,054
-
60,194
1,163
78,248
1,163
10,405
(1,163)
(60,000)
60,000
(49,595)
58,837
121,455
2,113
71,860
60,950		 Restricted
Funds
£
102,932
-
-
-		 Total
2020
£
151,788
14,504
24,829
464		 Total
2019
£
72,657
60,744
58,641
199
88,653 102,932 191,585 192,241
18,054
60,194		 -
82,438		 18,054
143,795		 27,655
141,733
78,248 1,163 82,438 161,849 169,388
10,405
(60,000)		 (1,163)
60,000		 20,494
-		 29,736
-		 22,853
-
(49,595)
121,455		 58,837
2,113		 20,494
2,642,814		 29,736
2,766,382		 22,853
2,743,529
71,860 60,950 2,663,308 2,796,118 2,766,382

The notes on pages 14 to 25 form part of these financial statements.

9

MANCHESTER HISTORIC BUILDINGS TRUST CHARITY STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE YEAR ENDED OCTOBER 31 2020

Notes
Incoming resources from generated funds:
Donations
2
Charitable activities
3
Other trading activities
4
Investment income - bank interest
TOTAL INCOME
EXPENDITURE
Raising funds
6
Charitable activities
7
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
BEFORE TRANSFERS
9
Transfers between funds
16
NET MOVEMENT IN FUNDS
16
FUNDS BROUGHT FORWARD
16
FUNDS CARRIED FORWARD
16		 Unrestricted funds
General
Designated
£
£
48,856
-
-
9,590
464
-
58,910
-
2,467
-
46,038
1,163
48,505
1,163
10,405
(1,163)
(60,000)
60,000
(49,595)
58,837
121,455
2,113
71,860
60,950		 Unrestricted funds
General
Designated
£
£
48,856
-
-
9,590
464
-
58,910
-
2,467
-
46,038
1,163
48,505
1,163
10,405
(1,163)
(60,000)
60,000
(49,595)
58,837
121,455
2,113
71,860
60,950		 Restricted
Funds
£
102,932
-
-
-		 Total
2020
£
151,788
-
9,590
464		 Total
2019
£
72,657
27,246
24,694
199
58,910 102,932 161,842 124,796
2,467
46,038		 -
82,438		 2,467
129,639		 1,842
100,101
48,505 1,163 82,438 132,106 101,943
10,405
(60,000)		 (1,163)
60,000		 20,494
-		 29,736
-		 22,853
-
(49,595)
121,455		 58,837
2,113		 20,494
2,642,814		 29,736
2,766,382		 22,853
2,743,529
71,860 60,950 2,663,308 2,796,118 2,766,382

The notes on pages 14 to 25 form part of these financial statements.

10

MANCHESTER HISTORIC BUILDINGS TRUST GROUP BALANCE SHEET AS AT OCTOBER 31 2020

Notes
FIXED ASSETS
Tangible Assets - functional
11
Tangible Assets - heritage
12
CURRENT ASSETS
Stock
Debtors
14
Cash at Bank and in Hand
CREDITORS
Amounts falling due in one year
15
NET CURRENT ASSETS
NET ASSETS
FUNDS
Unrestricted
16
Restricted
16
TOTAL FUNDS		 2020
£
9,317
19,940
186,251		 2020
2019
2019
£
£
£
100,113
111,547
2,509,755
2,509,755
2,609,868
2,621,302
8,305
13,007
150,871
172,183
27,103
186,250
145,080
2,796,118
2,766,382
132,810
123,568
2,663,308
2,642,814
2,796,118
2,766,382
215,508
29,258

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

For the year ending October 31 2020, the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies and no notice has been deposited under section 476 requiring the company to obtain an audit of its accounts for the year in question.

Directors’ responsibilities

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

The notes on pages 14 to 25 form part of these financial statements.

Approved by the Board and authorised for issue on:

And signed on their behalf by:

Frank Galvin - Director

Company registration number 3578992

11

MANCHESTER HISTORIC BUILDINGS TRUST CHARITY BALANCE SHEET AS AT OCTOBER 31 2020

Notes
FIXED ASSETS
Tangible Assets - functional
11
Tangible Assets - heritage
12
Investments
13
CURRENT ASSETS
Debtors
14
Cash at Bank and in Hand
CREDITORS
Amounts falling due in one year
15
NET CURRENT ASSETS
NET ASSETS
FUNDS
Unrestricted
16
Restricted
16
TOTAL FUNDS		 2020
£
67,144
144,023		 2020
2019
2019
£
£
£
100,113
111,547
2,509,755
2,509,755
10
10
2,609,878
2,621,312
21,190
146,639
167,829
22,759
186,240
145,070
2,796,118
2,766,382
132,810
123,568
2,663,308
2,642,814
2,796,118
2,766,382
211,167
24,927

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

For the year ending October 31 2020, the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies and no notice has been deposited under section 476 requiring the company to obtain an audit of its accounts for the year in question.

Directors’ responsibilities

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

The notes on pages 14 to 25 form part of these financial statements.

Approved by the Board and authorised for issue on:

And signed on their behalf by:

Frank Galvin - Director

Company registration number 3578992

12

MANCHESTER HISTORIC BUILDINGS TRUST GROUP AND CHARITY STATEMENTS OF CASH FLOWS AS AT OCTOBER 31 2020

notes
Cash used in operating activities
21
Cashflows from investing activities
Interest and dividends
Purchase of tangible fixed assets
Cash provided by/(used in) investing activities
Cashflows from financing activities
Proceeds from new borrowings
Repayment of borrowing
Cash used in financing activities
Increase/(decrease) in cash & cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
Cash and cash equivalents consist of:
Cash at bank and in hand		 Group
2020
£
34,915		 Group
2019
£
40,923		 Charity
Charity
2020
2019
£
£
(3,081)
43,006
464
199
1
(1,000)
465
(801)
-
-
-
-
-
-
(2,616)
42,205
146,639
104,434
144,023
146,639
144,023
146,639
144,023
146,639
464
1		 199
(1,000)
465 (801)
-
-		 -
-
- -
35,380
150,871		 40,122
110,749
186,251 150,871
186,251 150,871
186,251 150,871

The notes on pages 14 to 25 form part of these financial statements.

13

MANCHESTER HISTORIC BUILDINGS TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED OCTOBER 31 2020

1 ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared: under the historic cost convention; in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) effective January 1 2019 (second edition – October 2019); FRS102; and the Companies Act 2006. The charity constitutes a public benefit entity as defined by FRS102.

The accounts are prepared in £ sterling, which is the functional currency of the Group.

The accounts have been prepared on the going concern basis, and the trustees believe that this remains appropriate. They are aware of the potential impact of Covid 19, and comment as follows in their report:

“The Trust was financially viable before the Covid 19 pandemic as evidenced by our end of year financial performance. The trustees are aware that the current health and business uncertainties caused by the Covid 19 pandemic continue to be a major concern and continues to have a severe negative impact on the global and UK economy.

During the year, and to comply with government directives and to safeguard the health and well-being of staff, volunteers and visitors, the House was closed to visitors and all commercial activities ceased from March 23 2020. During this period of ‘lock-down’ all staff were placed on furlough leave in order that the charity could avail itself of support from the Government’s Job Retention Scheme (JRS)which has paid 80% of all salaries, whilst the Trustees agreed that MHBT would ‘top-up’ salaries by the remaining 20% until the end of July 2020, when the employer’s contribution would become mandatory and would be an increasing burden on our finances through to the end of the JRS.

The Government announcement on 25 June that Museums and Historic Houses could reopen from 4[th] July has allowed the Trustees to bring all staff back from furlough leave from 1 August 2020 in preparation for reopening the House on 12 August with timed tickets, cashless payments and social distancing. Weddings, an important source of income for the House, were also be able to resume from 4[th] July.

To summarise the central Government support already received and which will offset the negative effects on income of the Covid 19 pandemic, are: -

In addition, we also made a successful application to the National Lottery Heritage Fund’s Emergency Fund and received a NLHF Emergency Fund grant of £50,000.

Collectively these sources of support total £98,921.

Given these additional sources of support the Trustees are confident that the Charity is a Going Concern.”

Income recognition

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The following applies to particular types of income:

Grants , whether of a capital or revenue nature, are recognised when the charity has entitlement to the funds, any performance conditions have been met and it is probable that the income will be received.

Donations from individuals and other bodies (not being of the nature of a grant) are recognised when receivable.

Earned income is measured at the fair value of the consideration received or receivable for services and goods supplied, net of discounts and VAT.

Deferred income

Income is only deferred and included in creditors when:

14

MANCHESTER HISTORIC BUILDINGS TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED OCTOBER 31 2020

1 ACCOUNTING POLICIES (continued)

Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds including those associated with fundraising activities, managing investments and commercial trading by the subsidiary company.

Charitable activities costs of undertaking the work of the charity.

The Group is registered for VAT and has elected to tax on its property Gaskell House. It is able to recover some of the input tax charged as it relates to VATable supplies. Costs are stated net of VAT where charged and irrecoverable VAT is included as a separate charge either within direct costs or support costs as appropriate.

Allocation of support costs

Support costs are those functions which assist the work of the charity either by supporting the delivery of charitable activities or by supporting the generation of funds. They include property costs, back office functions, circularisation costs, security and maintenance costs and professional fees. The basis of allocations is set out in note 8.

Functional tangible fixed assets and depreciation

Individual functional fixed assets costing more than £1,000 are capitalised at cost and are depreciated, after taking account of residual values, over their estimated useful lives on a straight line basis as set out below.

Depreciation rates are as follows:

Fixtures and fittings 25% Display and interpretation over 15 years

Heritage Assets

Assets held for their historical or artistic importance to advance preservation, conservation and public access to the nation’s culture and education are classified as heritage assets in the accounts. The Trust capitalises heritage properties at their purchase price plus any restoration costs to restore them to their former condition and bring them back into use. Any further preservation costs are charged to the statement of financial activities when carried out. The Trust owns the freehold property Gaskell House the former home of the Elizabeth and William Gaskell and their daughters and during the year commenced the final stage of the restoration through work on the Coach House.

Items acquired for exhibition are included at their purchase price or if donated at their estimated value on acquisition.

No depreciation is charged on heritage assets as the trustees believe that they have an indefinite life. The trustees consider annually whether any heritage assets have been impaired and adjust the carrying value accordingly. There have been no impairments to the assets.

Debtors

Trade and other debtors are recognised at the settlement amount due and prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

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

Financial instruments

The charity has only basic financial instruments which are initially recorded at cost, and subsequently measured at their settlement value.

Group financial statements

The financial statements consolidate the results of the charity and its wholly owned subsidiary, The Gaskell’s House Trading Ltd on a line by line basis.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

15

MANCHESTER HISTORIC BUILDINGS TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED OCTOBER 31 2020

Unrestricted
£
2 DONATIONS
HLF resilience funding
-
HLF Covid Emergancy funding
-
The Hibbert Trust
-
MCC Business support
25,000
HMRC CJRS grant
19,876
Membership
2,412
Donations - individuals
1,568
Donations - bedroom
-
Donations - garden
-
Group income
48,856
Gaskell's House Trading Ltd
-
Charity income
48,856
3 INCOME FROM CHARITABLE ACTIVITIES
ACE - servants stories
-
Granada Foundation - servants stories
-
Duchy of Lancaster - servants stories
-
Heritage Fund - sharing Ruskin legacy
-
Viridor Credits - garden
-
Charity income
-
Earned income
Subsidiary income
Admissions
8,937
Guide books
492
Events
5,075
14,504
Group income
14,504
4 OTHER TRADING INCOME
Events, raffles and other
90
Rent and room hire
9,500
Charity income
9,590
Subsidiary income
Tea rooms
5,053
Books and gifts
6,558
Room hire
9,878
21,489
less eliminated on consolidation:
Rent charged to subsidiary
(6,250)
Group income
24,829		 Unrestricted 2020
Restricted		 Total Unrestricted 2019
Restricted
Total
£
-
-
-
25,000
19,876
2,412
1,568
-
-		 £
31,560
50,000
6,000
-
-
-
-
15,372
-		 £
31,560
50,000
6,000
25,000
19,876
2,412
1,568
15,372
-		 £
-
-
-
-
-
2,588
10,541
-
-		 £
£
39,450
39,450
-
-
-
-
-
-
-
-
-
2,588
-
10,541
20,000
20,000
78
78
59,528
72,657
-
-
59,528
72,657
14,900
14,900
1,000
1,000
800
800
9,700
9,700
846
846
27,246
27,246
-
23,395
-
1,644
-
8,459
-
33,498
27,246
60,744
-
540
-
24,154
-
24,694
-
11,793
-
12,845
-
19,309
-
43,947
(10,000)
-
58,641
48,856
-		 102,932
-		 151,788
-		 13,129
-
48,856 102,932 151,788 13,129
-
-
-
-
-		 -
-
-
-
-		 -
-
-
-
-
- - - -
8,937
492
5,075		 -
-
-		 8,937
492
5,075		 23,395
1,644
8,459
14,504 - 14,504 33,498
14,504 - 14,504 33,498
90
9,500		 -
-		 90
9,500		 540
24,154
9,590 - 9,590 24,694
5,053
6,558
9,878		 -
-
-		 5,053
6,558
9,878		 11,793
12,845
19,309
21,489 - 21,489 43,947
(6,250) - (6,250) (10,000)
24,829 - 24,829 58,641

16

MANCHESTER HISTORIC BUILDINGS TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED OCTOBER 31 2020

5 TRADING SUBSIDIARY - The Gaskells' House Trading Ltd

Turnover
Cost of sales
Gross profit
Administration costs
Other income (grant from MHBT, eliminated on consolidation)
Net profit before taxation
Taxation
Net profit after taxation
Total assets
Total liabilities
Net funds
Subsidiary costs included in Group accounts
Cost of sales
Administration costs
Less eliminated on consolidation - rent		 2020
2019
£
£
35,993
77,445
(8,955)
(19,290)
27,038
58,155
(61,929)
(86,389)
34,891
28,234
-
-
-
-
-
-
54,075
17,712
(54,065)
(17,702)
10
10
8,955
19,290
61,929
86,389
(6,250)
(10,000)
64,634
95,679

Subsidiary income and costs included on consolidation are analysed as follows:

INCOME
Tea rooms
Books and gifts
Room hire
Admissions
Guide books
Events
EXPENDITURE
Staff costs
Direct costs tea rooms
Goods for resale
Ticketing, event and other costs
Advertising and publicity
Premises & insurance costs
Overheads		 Charitable
activities
£
-
-
-
8,937
492
5,075		 Fundraising
£
5,053
6,558
9,878
-
-
-		 2020
Total
£
5,053
6,558
9,878
8,937
492
5,075		 Charitable
activities
£
-
-
-
23,395
1,644
8,459		 2019
Fundraising
Total
£
£
11,793
11,793
12,845
12,845
19,309
19,309
-
23,395
-
1,644
-
8,459
43,947
77,445
6,563
43,750
9,187
9,187
5,168
5,168
-
4,935
786
5,243
3,015
20,100
1,094
7,296
25,813
95,679
14,504 21,489 35,993 33,498
29,155
-
-
1,720
3,188
10,540
4,445		 5,145
5,458
1,777
-
563
1,860
784		 34,300
5,458
1,777
1,720
3,750
12,400
5,229		 37,188
-
-
4,935
4,457
17,085
6,202
49,047 15,587 64,634 69,866

Rent charged by the charity of £6,250 (2019 - £10,000) is eliminated on consolidation, as is the grant to the subsidiary from the charity of £34,891 (2019 - £28,234).

Premises, insurance and overheads are allocated on an estimate of resources used.

17

MANCHESTER HISTORIC BUILDINGS TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED OCTOBER 31 2020

Unrestricted
6 COSTS OF RAISING FUNDS
£
Support costs
2,467
Charity costs
2,467
Subsidiary costs
Staff costs
5,145
Direct costs tea room
5,458
Goods for resale
1,777
Advertising & marketing
563
Premises, insurance & overheads
2,644
15,587
Group costs
18,054
7 EXPENDITURE ON CHARITABLE ACTIVITIES
Charity
Grant paid to subsidiary
34,891
Staff costs
39,874
Other direct costs
20,113
Depreciation
11,433
Support costs
23,328
Charged to restricted funds
(82,438)
Total for charity company
47,201
Subsidiary
Direct costs
Staff costs
29,155
Ticketing, event and other costs
1,720
Premises & insurance costs
10,540
Support costs with subsidiary:
Advertising & marketing
3,188
Overheads
4,445
49,047
Grant eliminated on consolidation
(34,891)
Total for group
61,357		 Unrestricted 2020
Restricted		 Total Unrestricted 2019
Restricted
Total
£
2,467		 £
-		 £
2,467		 £
1,842		 £
£
-
1,842
-
1,842
-
6,563
-
9,187
-
5,168
-
786
-
4,109
-
25,813
-
27,655
-
28,234
-
15,373
-
24,942
-
12,376
-
19,176
71,934
-
71,934
100,101
-
37,188
-
4,935
-
17,085
-
4,457
-
6,202
-
69,866
-
(28,234)
71,934
141,733
2,467 - 2,467 1,842
5,145
5,458
1,777
563
2,644		 -
-
-
-
-		 5,145
5,458
1,777
563
2,644		 6,563
9,187
5,168
786
4,109
15,587 - 15,587 25,813
18,054 - 18,054 27,655
-
-
-
-
-
82,438		 34,891
39,874
20,113
11,433
23,328
-		 28,234
15,373
24,942
12,376
19,176
(71,934)
47,201 82,438 129,639 28,167
29,155
1,720
10,540
3,188
4,445		 -
-
-
-
-		 29,155
1,720
10,540
3,188
4,445		 37,188
4,935
17,085
4,457
6,202
49,047 - 49,047 69,866
(34,891)
61,357		 -
82,438		 (34,891)
143,795		 (28,234)
69,799

Total costs of £1,163 (charitable) have been charged to designated funds (2019 - £23,071).

18

MANCHESTER HISTORIC BUILDINGS TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED OCTOBER 31 2020

8 SUPPORT & GOVERNANCE COSTS

SUPPORT & GOVERNANCE COSTS
Support costs
Premises & insurance
Office costs & other costs
Circularisation
Advertising & promotion
Security & maintenance
Management accounts
Bank charges
Governance costs
Legal, professional & accountancy
Total support costs		 Fundraising Charitable
2020		 Total Fundraising Charitable
Total
2019
£
718
590
-
-
100
1,059
-		 £
6,464
5,305
2,348
3,263
898
-
1,150		 £
7,182
5,895
2,348
3,263
998
1,059
1,150		 £
508
126
-
-
79
1,129
-		 £
£
4,573
5,081
1,138
1,264
2,478
2,478
6,907
6,907
713
792
-
1,129
1,270
1,270
17,079
18,921
2,097
2,097
2,097
2,097
19,176
21,018
2,467 19,428 21,895 1,842
- 3,900 3,900 -
- 3,900 3,900 -
2,467 23,328 25,795 1,842

Costs that can be wholly attributed to either support or governance are allocated directly to those functions, and other costs are allocated either on the basis of the estimation of time spent (staff costs) or consumption of resources (office costs).

9 GROUP NET INCOMING RESOURCES AFTER TRANSFERS
This is stated after charging/(crediting):
Accountant/Independent examiner's fees
Report
Accountancy and advice
Depreciation charged on fixed assets
Directors' remuneration & trustees' expenses
10 STAFF INFORMATION
a Staff costs
Salaries and benefits
Employer's pension contributions (defined contribution scheme)
Employer's NI contributions (net of employer's allowance)
No employees earned more than £60,000 pa in either year
b Key management personal		 2020
2019
£
£
970
970
1,315
1,127
11,433
12,376
-
-
71,230
57,073
1,312
990
1,632
1,060
74,174
59,123

The key management personal comprise the trustees and principle staff as set out on page 1. The trustees do not receive any remuneration for their services.

Employment benefits principle staff
c Average number of employees
The average number of employees was as follows:-		 34,352
31,096
Average
Average
number
number
5
5
5
5

19

MANCHESTER HISTORIC BUILDINGS TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED OCTOBER 31 2020

11 TANGIBLE FIXED ASSETS - FUNCTIONAL

TANGIBLE FIXED ASSETS - FUNCTIONAL
Group and charity
Cost
As at November 1 2019
As at October 31 2020
Depreciation
As at November 1 2019
Provided
As at October 31 2020
Net Book Value
As at October 31 2020
As at October 31 2019		 Display &
Interpretation
159,388		 Fixtures
fittings &
equipment
Total
£
£
21,446
180,834
21,446
180,833
19,143
69,287
807
11,433
19,950
80,720
1,496
100,113
2,303
111,547
159,387
50,144
10,626
60,770
98,617
109,244

12 TANGIBLE FIXED ASSETS - HERITAGE ASSETS

Group and charity
Cost
As at November 1 2019
As at October 31 2020
Depreciation
As at November 1 2019
As at October 31 2020
Net Book Value
As at October 31 2020
As at October 31 2019		 Freehold
property
2,458,597		 Exhibits
Total
£
£
51,158
2,509,755
51,158
2,509,755
-
-
-
-
51,158
2,509,755
51,158
2,509,755
2,458,597
-
-
2,458,597
2,458,597

The freehold property is subject to a first charge in favour of the Heritage lottery Memorial fund entered into on October 10 2014 as a condition of the award of a grant of c£1.8m towards phase 2 of the restoration.

The above assets are all included at cost.

The five year financial summary of heritage asset transactions is as follows;

Building acquisition/restoration
Exhibits (furniture, fittings & fixtures)		 2015/16
£
145,067
-		 2016/17
£
30,784
-		 2017/18
£
3,812
-		 2018/19
2019/20
£
£
-
-
1,000
-

Exhibits include furniture, fittings and fixtures acquired by the Trust in order to furnish the house in an authentic style consistent with the Gaskell Family's occupation of the property.

20

MANCHESTER HISTORIC BUILDINGS TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED OCTOBER 31 2020

13 FIXED ASSETS INVESTMENTS

The charity has owns 100% of the issued share capital of the following company

Name Activity Investment Company no. 2020 2019 £ £ The Gaskells' House Trading Ltd running Gaskell House as a visitor attraction and café 10 10 7364259

14 DEBTORS
Income receivable
Amount due from group company
VAT reclaimable
Prepayments & other debtors		 Group
2020
£
6,120
-
2,865
10,955		 Group
Charity
Charity
2019
2020
2019
£
£
£
7,422
3,590
2,245
-
49,734
13,360
-
2,865
-
5,585
10,955
5,585
13,007
67,144
21,190
19,940
15 CREDITORS falling due within one year
Trade creditors
Accruals
Other taxation and social security
Pension contributions
Funds in trust		 8,858
17,595
1,132
173
1,500		 4,260
16,838
4,229
276
1,500		 4,753
574
17,595
16,838
906
3,571
173
276
1,500
1,500
24,927
22,759
29,258 27,103

21

MANCHESTER HISTORIC BUILDINGS TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED OCTOBER 31 2020

16 STATEMENT OF FUNDS

31/10/2020 £ 71,860 60,950 132,810 2,663,308 2,663,308 2,796,118 132,810 - 132,810
2019/20 Expenditure
Transfers		 £
£		 (78,248)
(60,000)
 (1,163)
60,000
 (79,411)
-
 (82,438)
-
 (82,438)
-
 (161,849)
-
Income £ 88,653 - 88,653 102,932 102,932 191,585
b/f and c/f 31/10/2019
01/11/2019		 £ 121,455 2,113 123,568 2,642,814 2,642,814 2,766,382 123,568 - 123,568
- - - - - -
Transfers £
2019/19 Income
Expenditure		 £
£		 105,467
(96,291)		 -
(1,163)		 105,467
(97,454)		 86,774
(71,934)		 86,774
(71,934)		 192,241
(169,388)
Group 01/11/2018 £
Unrestricted Funds:		 General fund
112,279		 Designated funds
3,276		 115,555 Restricted Funds: As below
2,627,974		 2,627,974 Total funds
2,743,529		 Unrestricted fund totals are analysed as follows: Charitable funds
115,555		 Non charitable trading funds
-		 115,555

22

MANCHESTER HISTORIC BUILDINGS TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED OCTOBER 31 2020

16 STATEMENT OF FUNDS (continued)

31/10/2020 £ 71,860 60,000 950 132,810 22,973 11,899 3,149 2,393 26,466 - 20 2,800 -
 -
 -
 2,593,608 2,663,308 2,796,118
2019/19
b/f and c/f
2019/20		 31/10/2019 01/11/2018
Income
Expenditure
Transfers
01/11/2019
Income
Expenditure
Transfers		 £
£
£
£
£
£
£
£		 112,279
38,022
(28,846)
-
121,455
58,910
(48,505)
(60,000)
 60,000
 3,276
-
(1,163)
2,113
-
(1,163)
-
 115,555
38,022
(30,009)
-
123,568
58,910
(49,668)
-
 -

39,450
(27,607)
-
11,843
31,560
(20,430)
-
 -
-
-
-
50,000
(38,101)
-
 -

-
-
-
-
6,000
(2,851)
-
 2,406
-
-
-
2,406
-
(13)
-
 -

20,000
-
-
20,000
15,372
(8,906)
-
 3,000
-
(3,000)
-
-
-
-
-
 253
78
(205)
(106)
20
-
-
-
 2,800
-
-

-
2,800
-
-		 -
16,700
(16,700)
-
-
-
-		 -
9,700
(8,996)
-
704
-
(704)		 -
846
(952)
106
-
-

-		 2,619,515
-
(14,474)
-
2,605,041
-

(11,433)
-		 2,627,974
86,774
(71,934)
-
2,642,814
102,932
(82,438)
-		 2,743,529
124,796
(101,943)
-
2,766,382
161,842
(132,106)
-		 To represent the investment of capital project monies in costs which have been prepaid. To ensure the economic viability of the charity. For the restoration and furnishing of William Gaskell's study For the upkeep of the garden Amounts invested in fixed assets where there are continuing restrictions over their use. Deprecation is charged to this fund. To support explanation of the Unitarian faith on the work of the Gaskell family.
Charity Unrestricted Funds: General fund Designated funds: Building maintenance Phase 2 completion Restricted Funds: HLF Resilience funding HLF Covid Emergency funding The Hibbert Trust Donations - William's study Donations - Bedroom Donations - volunteer coordinator Donations/grant - garden Other Phase 2 Servants stories Sharing Ruskin legacy Viridor Credits - garden Capital grants expended Grants expended and asset capitalised Total funds Designated Fund Restricted funds HLF resilience & Covid funding Donations - William's study Donations/grant - garden Grants expended and asset capitalised Hibbert Trust

23

MANCHESTER HISTORIC BUILDINGS TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED OCTOBER 31 2020

17 ANALYSIS OF COMPANY NET ASSETS BETWEEN FUNDS

Fund balances at October 31 2020 are represented by:-
Tangible fixed assets
Investments
Net current assets
Fund balances at October 31 2019 are represented by:-
Tangible fixed assets
Investments
Net current assets		 Unrestricted funds
General
Designated
£
£
16,260
-
10
-
55,590
60,950
71,860
60,950
16,261
-
10
-
117,027
2,113
133,298
2,113		 Unrestricted funds
General
Designated
£
£
16,260
-
10
-
55,590
60,950
71,860
60,950
16,261
-
10
-
117,027
2,113
133,298
2,113		 Restricted
Funds
Total
£
£
2,593,608
2,609,868
-
10
69,700
186,240
2,663,308
2,796,118
2,605,041
2,621,302
-
10
25,930
145,070
2,630,971
2,766,382
71,860 60,950
16,261
10
117,027		 -
-
2,113
133,298 2,113

18 CONSTITUTION

The Company is limited by guarantee and does not have a share capital. In the event of the Company being wound up the members are committed to contributing £1 each.

19 TAXATION

The Company is a registered charity and is entitled to claim annual exemption from UK corporation tax.

20 CAPITAL COMMITMENTS

There were no capital commitments authorised and contacted for at the end of the year (2019 £Nil).

21 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES

Net income/(expenditure)
Add back depreciation
Adjustment HLF Phase 2 funding
Deduct interest income shown in investing activities
Deduct profit/add back losses on disposals of FA
Decrease/(increase) in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash generated from/(used in) operating activities		 Group
2020
£
29,736
11,433
-
(464)
-
(1,012)
(6,933)
2,155		 Group
2019
£
22,853
12,376
-
(199)
-
368
1,192
4,333		 Charity
Charity
2020
2019
£
£
29,736
22,853
11,433
12,376
-

-
(464)
(199)
-

-
-
-
(45,954)
4,829
2,168
3,147
(3,081)
43,006
34,915 40,923

24

MANCHESTER HISTORIC BUILDINGS TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED OCTOBER 31 2020

22 RELATED PARTY TRANSACTIONS

Details of the trading between the charity and its subsidiary company are shown in the notes to the financial statements.

In the year the charity contracted with Mrs V Watson, a trustee, to provide book keeping services for which it paid her £900, (2019 – £1,000) and there was a balance of £2,900 outstanding at 31/10/20 (2019 – £2,000). Mrs Watson had played no part in the decision to engage her services.

There were no other related party transactions.

23 NON ADJUSTING POST BALANCE SHEET EVENTS

In common with other visitor attractions the Group has been affected by the measures taken by the Government since the year end to combat the pandemic, which led to the closure of the house and the tea rooms, with the consequential loss in income. The Group has taken advantage of technology to provide online talks which are income generating, and has continued to sell goods online. The Group is exploring offering online virtual tours of the house. In addition, the charity has secured Cultural Recovery Funding for Heritage of £49,700.

24 CONTINGENT LIABILITIES

The charity has received grant support for the restoration of Gaskell House from a number of different funders, which have continuing restrictions over the disposal of the property.

Heritage Lottery Fund (HLF) - £190,935 (phase 1) and £1,430,877 (phase 2 – excluding revenue support) The Charity cannot dispose of the property by sale or lease for a period of twenty five years from June 2012 without the written consent of HLF, and if let or sold at a full market rate HLF may require that a proportion of the net proceeds are paid to them in accordance with their standard grant conditions. The charity is also obliged to open the property to the public and to advertise the opening times.

English Heritage - £297,911 (Phase 1) and £86,849 (Phase 2)

The Charity cannot dispose of the property by sale or lease for a period of ten years after the final payment of the grant (effectively from March 2013) without the written consent of English Heritage, which consent will only be given after any grant already paid has been recovered in full. The charity is also obliged to open the property to the public and to advertise the opening times.

Biffa - £50,000

If the charity disposes of the property, RSWT (the grantor) is entitled to some of the proceeds in proportion to their contribution, unless otherwise agreed.

There are no contingent liabilities attaching to the funding from other sources.

None of the above contingent liabilities are expected to crystallise.

25 ULTIMATE CONTROL

The company has been under the collective control of its directors, appointed by the members, throughout this and the preceding year. No director or member (taking account of any associates) has a controlling interest in the company.

25