2022-12-31-accounts

Company Number 05743962 Charity Number 1113753 Scotland Charity Number SC039244 Ireland Charity Number 20158736

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS 37 Spital Square London E1 6DY Telephone: [phone] [e-mail]

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS TRUSTEES AND PROFESSIONAL ADVISORS YEAR ENDED 31 DECEMBER 2022

TRUSTEES

Nichola Tasker (Chair, resigned Feb 2023) Charles Wagner (Vice Chair, resigned Jan 2022) Duncan McCallum (Chair) Christopher Wheaton (Hon Treasurer) Catherine Cullis Conor Meehan (Resigned Jan 2022) Georgina Nayler (From Jan 2022) Hazel Morris Jamie McNamara (Resigned Jan 2022) Jo Thwaites (From Jan 2022) Mildred Cookson Richard Max Sally Stradling (From Jan 2022) Triona Byrne (Vice Chair) Tyler Lott-Johnson (From Jan 2022)

DIRECTOR AND CHIEF EXECUTIVE

Matthew Slocombe

REGISTERED OFFICE COMPANY NUMBER

37 Spital Square, London E1 6DY 05743962

REGISTERED CHARITY NUMBER

REGISTERED CHARITY NUMBER 1113753 SCOTLAND REGISTERED CHARITY NUMBER SC039244 REPUBLIC OF IRELAND CHARITY NUMBER 20158736

AUDITOR ACCOUNTANTS Crowe U.K. LLP JS2 Limited 55 Ludgate Hill One Crown Square London Woking EC4M 7JW GU21 4HR

INVESTMENT ADVISORS

Kleinwort Hambros Private Banking Ltd 14 St George Street London W15 1FE

BANKERS SOLICITORS Barclays Stephenson Harwood 127 Edgeware Road 1 Finsbury Circus London London W2 2HT EC2M 7SH

HSBC Stone King 455 Strand 28 Ely Place London London WC2R 0RH EC1N 6TD

Founded in 1877. A charitable company limited by guarantee registered in England and Wales. Company No. 5743962. Charity No. 111 3753. VAT No. 577 4276 02. Fax [phone] www.spab.org.uk

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THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The Directors of the company, who are also the charity trustees and members of the Board, have pleasure in presenting their combined annual report under the Companies Act 2006 and Charities Act 2011 together with the audited accounts for the financial year ended 31 December 2022.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Society is a charitable company being a successor to the unincorporated charity of the same name which was originally founded in 1877.

The Society is governed by Memorandum and Articles of Association last amended in 2018 with minor revisions in 2022. The charitable company was registered with the Charity Commission in England and Wales on 14 April 2006 as number 1113753. It is also registered in Scotland SC039244 and the Republic of Ireland 20158736.

The Society is managed by up to 12 trustees who form a Board and meet five times a year. Board members can serve up to two terms of three years. The Board appoints the Honorary Officers and is assisted by Staffing and Finance & Audit sub-committees.

There are eight SPAB Guardian Committees who oversee all areas of our work made up members who, through election or co-option, have an especially strong link with the Society and its work. Our committees are :: Advocacy; Casework; Education & Training; Technical & Research; Mills; SPAB Scotland; SPAB Ireland; and Regional Group Chairs. Each committee has at least one third of its Guardians elected from the membership, with the remaining Guardians co-opted for their specialist skills.

The company, which is limited by guarantee, does not have a share capital and is constituted as a charity. Every Guardian undertakes to contribute an amount not exceeding £10 in the event of winding-up.

TRUSTEE RECRUITMENT & INDUCTION

The 2018 Articles allow eight of the 12 trustees to be elected from the Society’s Guardian committees. Each committee nominates an individual, who is usually one of its members, to sit on the Board. In addition, there are four co-opted places, where the Board selects individuals to be trustees for their specialist skills in matters such as finance or law. New trustees are briefed on matters including the SPAB’s history, ideas, operation and assets.

REMUNERATION POLICY

The Society’s approach to remuneration is designed to ensure we can attract and retain the talented and motivated people we need to achieve our mission and deliver our strategic goals. It is applied consistently across the organisation. We aim to pay competitively in the not-for-profit sector within the context of affordability. Salaries of all staff are reviewed annually within the budget and, when necessary, by trustees on the Staffing Committee.

DIRECTOR

The Director is responsible for the day-to-day management of the Society’s affairs and for implementing policies agreed by the Board of Trustees. The Director is assisted by the senior management team and staff.

OBJECTS, OBJECTIVES AND PRINCIPAL ACTIVITIES

The Charity’s objects as declared in the Memorandum and Articles of Association are the preservation and protection of ancient buildings for the benefit of the public guided by the principles declared in the Manifesto of The Society for the Protection of Ancient Buildings by the Founders in 1877. Among other powers to further the Objects is the power to promote education of the public, legislation and research and the publication of the useful results of such research.

PUBLIC BENEFIT

The Trustees, in accordance with Section 17 of the Charities Act 2011 [amended 2022], have given due regard to the guidance issued by the Charity Commission and consider the organisation to offer public benefit

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THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

through a wide range of its activities. These include our free technical help line, advice to local authorities through the planning system, training schemes and courses with bursary places, site-based projects and free online information.

ANTI-BRIBERY POLICY

It is the SPAB’s policy to conduct its business in an honest and ethical manner, and trustees take a zerotolerance approach to bribery. The SPAB is committed to acting professionally, fairly and with integrity in all its business dealings and relationships wherever it operates. The SPAB remains bound by the laws of the UK, including the Bribery Act of 2010, in respect of its conduct.

VOLUNTEERS

Volunteers contribute to and support the SPAB in a number of areas such as working parties, casework, education and training, technical advice and research, archives and administration. The Society is grateful to volunteers for their contribution and out of pocket expenses are reimbursed to volunteers where appropriate.

ACHIEVEMENTS AND PERFORMANCE

A new strategy, covering the period 2022-5 commenced in the year, with Community, Sustainability and Consistency as its main themes. The advice of a working group on equality, diversity and inclusion was used to improve practice in recruitment, training, communications and other areas of activity.

Working parties took place in England, Scotland, Wales and Ireland, with high attendance at each. The working party at St Mary’s Church, Caerau near Cardiff, was postponed in 2021 but took place in September 2022. It raised the SPAB’s profile in Wales and our hope is that it will lead to the establishment of SPAB Cymru.

Our major repair project at Kibworth Harcourt windmill in Leicestershire, using funds from the Enid Lamb legacy, was completed successfully.

At our Old House Project in Kent, good progress was made with structural stabilisation and external wall repair. The project provided a focus for educational activities as well as research into the production of local materials and sustainability for old buildings. We thank the Pilgrim Trust, in particular, for their grant support.

Phase one of an essential website platform upgrade was commenced with work due to be completed in 2023.

A major audience insights survey was undertaken, with findings to be implemented next year.

(i) Educational Work

The Society’s flagship training programmes - the William Morris Craft Fellowship and the Lethaby Scholarships for architects, surveyors and engineers - ran successfully with more participants overall than ever before. All completed their programmes successfully. We are extremely grateful to our funders for their assistance during the year, and particularly to Historic England for their continuing support.

The Society’s two annual Repair of Old Buildings courses took place – one in-person and one online using videoed site visits and discussion sessions alongside lectures. Our online educational programme, including lectures, CPD sessions for professionals and ‘Members’ Skill Share’ series continued successfully, but with a return to more in-person events.

Our Philip Webb Award design competition and John Betjeman Award for church conservation were relaunched in 2022, and featured in a major new Awards ceremony which received good media and online coverage.

The Society's Mills Section ran National Mills Weekend. The millwright training programme, linked to the Craft Fellowship and supported by the Enid Lamb legacy, had a second successfully year, helping to increase the numbers of those with the skills to assist this ‘endangered craft’.

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THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

(ii) Casework

Total numbers of cases received by the Society as part of its statutory work in England and Wales were over 2,000. A significant rise in case numbers experienced in 2021 levelled off in 2022, however, with reduced heritage advisory support within local and national public authorities, the need for the SPAB’s expertise is great. This increased need exists against the backdrop of reduced financial support for the SPAB from government, via Historic England and Cadw, which has decreased in real terms over recent years. Despite the SPAB’s role being statutory, the Society is expected to fund more of this advisory work, which supports the planning system.

From applications for listed building consent received from England and Wales during 2022, our casework Team made substantive comment on 1017 (864 in 2021). This sometimes involved input from expert volunteers or members of our Casework Committee, as well as staff. Our aim is to supply advice that supports the building’s conservation when a change is proposed. In addition the Society carries out campaigning work to support historic ‘buildings at risk’.

The Casework Team also led a series of church maintenance training events in Wales, supported by Cadw.

(iii) Advisory Services

The Society’s Technical Advice Line remained in strong demand during 2022 and handled over 700 enquiries (700+ in 2021). We are indebted to Historic England for providing financial support for this service. Expert volunteers assisted staff with a wide range of technical topics including research into the production and use of locally produced quick limes.

Our technical staff also lectured to a range of audiences and contributed to external publications. Development and publication of technical guidance continued in 2022, with continuing support also offered towards a UCl PhD concerning surface finishes.

iv) Grants for Building Maintenance & organisational support

In 2022 the Society maintained its support for the Sustainable Traditional Buildings Alliance’s research and campaigning,contributing £1,000 Through its Mill Reir grant fund our Mills Section supported conservation work to Windmill Hill, Bourn, Bursledon and Heage windmills, totalling £2,700. It also donated £2,400 to the Mills Archive Trust. The SPAB remains a member of The Heritage Alliance and contributed £830 as its subscription; the subscription to the Joint Committee of the National Amenity Societies was £400.

GRANT MAKING POLICY

The SPAB will only offer grants where it is certain that the funding will further its charitable objectives and meet strategic priorities. All grants will be approved by trustees, or by those given delegated authority by the Board to act on its behalf.

SPAB grants will be restricted to the following:

• Misses Newcombe Fund for almshouse repair.

• Thomas Hardy Fund for the repair of churches (especially those in Dorset).

• The Mill Repair Fund for wind and water mills.

• Baber Fund for emergency works to historic buildings.

• Scholarship training bursaries.

• Fellowship training bursaries.

• Educational course and working party bursaries.

• Any other suitable individual or organisation to whom a grant would further the SPAB charitable objectives and strategic priorities as approved by the Trustees.

All above funds have written terms and criteria.

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THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

Where a grant is made to an individual, or to an organisation that is not a charity, the Society will ensure that the funds will be used only for purposes that fulfil the Society’s charitable objectives, either through its own courses or other works. This will be achieved through grant conditions that are accepted in writing by the recipient. Grants for repair work will be paid in retrospect and only after the Society is satisfied that funds have been used appropriately and for the purpose intended.

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

The Society recorded an operating surplus for the year of £320,543 (2021: £271,039 deficit). This became a deficit of £112,719 (2021: £61,607 surplus) after depreciation and investment returns were taken into account. Donations and legacies at £1.03m were higher than in the previous year (2021: £271,843). We are hugely grateful to all those members and non-members who choose to remember the Society in their wills. Positive contributions came from our courses and events, advertising revenue and rental income. The Society continued to support a wide range of activities and expenditure on both raising funds and charitable activities, overall expenditure slightly decreased to £1.70m (2021: £1.87m). The Society continued to pursue its Old House Project which after five years of educational benefit is due to be sold in 2024. Staff costs were slightly reduced at £0.83m (2020: £0.84m) but still represent a high proportion of total expenditure since advice and training are at the heart of the SPAB’s work.

FUNDRAISING POLICY

The SPAB is committed to the highest standards in fundraising. The Society is registered with the Fundraising Regulator and by extension upholds the Fundraising Promise and complies with all the relevant standards as set out in the Code of Fundraising Practice. The in-house Fundraising Policy is informed by the Code of Fundraising Practice. All our in-house fundraising team are offered membership to the Institute of Fundraising and are actively encouraged and enabled to keep their knowledge of regulations and standards up to date. The SPAB does not currently use third party providers of fundraising services. The charity received no complaints about its fundraising activities during the year.

RESERVES POLICY

The Society held total funds of £5.36m at 31 December 2022 of which £1.6m are restricted and £0.67m endowed. The Society’s remaining reserves of £3.09m are unrestricted of which free reserves (excluding designated funds and tangible fixed assets) are approximately £2.67m (£2.51m 2021). This is equivalent to 1.6 times this year’s annual expenditure of £1.71m, which the Society’s trustees believe, as a matter of policy, to be appropriate given the variety of our sources of income and investments.

The Society intends to hold unrestricted reserves at least equal to the sum of 1) Any expected cumulative operating deficit over the following three years, 2) The forecast expenditure on major projects, less funding towards those projects that in the judgement of the Finance and Audit sub-committee (FASC) is either secured (such as grants awarded) or reasonably predictable (such as donations towards a project). For the avoidance of doubt this would not include any income forecast from a sale of part or all of property or land associated with a project, which is subject to market conditions so is inherently uncertain. 3) Three months of budgeted operating expenditure excluding any major spending, within the three to six months range suggested as best practice for charities.

For items 1) and 3) above, the Society is currently expected to be run at as close-to an operating breakeven as possible for the next three years, three months’ worth of budgeted operating expenditure is c.£500k. Item 2), spend on major projects, is forecast to be £207k for the Old House Project and £290k for planned work at Fladbury Mill subject to the bequest being finalised, a total of £497k. Combined, these items total c.£1.0M, substantially less than the free reserves of £2.67M. Our reserves policy is kept under regular review.

INVESTMENT POLICY

The investment management of the Society’s reserves is monitored by the Finance & Audit sub-committee, reporting to the Board, to ensure that the investment objectives and strategy for each portfolio match that fund’s specific objectives. The investment manager is Kleinwort Hambros. The portfolios are invested by Kleinwort Hambros on the Society’s behalf into a well-diversified third-party and in-house pooled funds

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THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

acrossa variety of different asset classes, designed to provide the Society with a combination of aboveaverage income as well as capital growth.

INVESTMENT REPORT

The total value of the Society’s holdings across the investment funds as at 28th March 2023 were £4.129M. This is an increase of 0.6% versus the value of £4.106M as at 31 December 2022.

Investment performance for 2022 was as follows for the General Fund and the Enid Lamb Fund, which combined represent about two-thirds of The Society's investments: Fund Performance Benchmark Index Performance SPAB General Fund -8.0% ARC PCI Balanced -9.1% SPAB Wind & Watermill Enid Lamb -7.8% ARC PCI Balanced -9.1% Source: Kleinwort Hambros / ARC

The Society funded almost all of its capital and operating requirements during the year from its existing cash resources, including some bequests received in the year, and did not withdraw significant funds from its investments.

We had said in previous investment reports that there was no longer such a thing as a “risk-free asset”, with interest rates at record lows, and equity markets generally (the UK excepted) at high valuations. Unfortunately, 2022 proved that view to largely be correct as both equity markets and bond markets fell heavily in the year. For context, over the last 150 years there have been only seven years when both the US stock market and US bond prices (bond prices work inversely to interest rates; rising interest rates mean falling bond prices) have fallen together. At the worst point in the year, the Society’s investments had fallen in value by c.20%, a larger fall than even during the pandemic where the decline in value at worst point in 2020 was only c.14%. A decline in the value of investments of only 8% for 2022 is therefore better than could have been feared.

Both European and US stock markets are up 7-10% to date in 2023. The UK stockmarket performed well relative to others in 2022, up 2% in 2022, but is doing worse relatively in 2023, at about flat year-to date, due to fears of persistent inflation and weak government finances despite high levels of taxation versus historic levels. We expect that markets will continue to oscillate within a range in the near term as the fear of higher interest rates and the reality of higher inflation dominate investors’ thinking, especially the concern over a spiral emerging between wages and prices as inflation remains much higher than the recent past despite higher interest rates. In the eternal struggle between capital and labour, labour is finally reclaiming some of the ground lost over the last fifteen years since the financial crisis, and so wage inflation is likely to be sustained for some time yet.

Bank solvency has been a concern in 2023 following the failure in the US of the Silicon Valley and First Republic Banks. To offer some reassurance to members and supporters, the Society’s investment manager, Kleinwort Hambros, is ultimately owned by Société Générale, one of France’s largest banks. KH also maintains segregation of client assets from the bank’s assets, and uses separate custodian companies to hold client assets, so that they are not treated as the bank’s own capital nor could be subject to claims by creditors of Société Générale. The Society’s cash balances held outside the investment funds are at Barclays.

Current asset allocation, including the cash currently held by the Society, is c.50% equities, 18% bonds, 17% other investments, 15% cash. This asset allocation reflects the caution that stockmarkets may not rise significantly in the near future, and should continue to deliver the Society's investment aims of both long-term capital growth and income generation as well.

This environment underlines the importance of the strategic priorities of the Finance, Audit and Strategy Committee to examine all ways in which fundraising efforts for the Society can be made more effective, to invest in infrastructure to support the Society’s growth, broaden the Society’s reach and fulfil the Society’s charitable aims, and to continue to diversify its income streams. The Society has been extremely fortunate, yet again, to receive a number of generous legacies from members and supporters in 2022, the largest of

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THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

which it is expected will be received in mid-2023. Extensive work is under way as to how these legacies will be used to continue to fulfil the Society’s charitable aims in the years to come.

LEGACY RECOGNITION POLICY

Legacy income is included in the financial statements when the Charity is satisfied that the conditions of entitlement, probability and measurement have been met. Pecuniary legacies are accounted for when notified. Residuary legacies are accounted for when the charity is satisfied that the conditions for recognising income of entitlement, probability and measurement have been met. Where legacies have been notified to the Charity or the Charity is aware of the granting of probate and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

RISK

The Society’s Board of Trustees has a register of potential risks to the charity, and these were reviewed regularly and with particular care, given the uncertainties of the external environment in 2022-3. The Board is satisfied that controls are in place to manage/mitigate identified risks.

The Finance and Audit sub-committee and Board continue to set the goal of operating cash flow breakeven, though some additional expenditure from reserves has been planned for 2023 in view of high legacy receipts and as an investment in long term sustainable growth.

The reserves policy (see p.5) is designed to ensure that the Society’s investments act as a buffer to shortterm fluctuations in cash flow, and to make certain that the Society can fund its short-term operating deficit.

The Society also relies on its investments as a buffer to both smooth cashflows throughout the year and to generate income to help fund the current operating deficit. These investments are regularly reviewed with the investment manager and their performance against relevant benchmarks assessed. The Society pursues a medium-risk investment strategy with its investments, aiming to minimise losses during market declines while generating income and ensuring the long-term appreciation of its assets. The performance of the investments is outlined in the Investment Report (see p.6).

MAJOR PROJECT RISK

Work on the Society’s two major projects – the repair of our windmill at Kibworth Harcourt, Leicestershire and our Old House Project (OHP) at St Andrew’, Boxley in Kent – has carried some significant risks for the organisation but major progress proved possible in 2022, with Kibworth Windmill now repaired and removed from Historic England’s ‘at risk’ register. Governance and reporting structures allowed these risks to be monitored, and where necessary, mitigated. The Board and Finance and Audit sub-committee receive regular reports about both projects. Additionally, the OHP ‘s expert Project Board offered expert support and guidance. The reserves policy includes a contingency to allow for repayment of a loan from the Architectural Heritage Fund which provides part-funding for the project, though this risk has diminished significantly in 2022 through resolution of the building’s main structural problems. This progress significantly increases the site’s asset value. We are extremely grateful to the Pilgrim Trust for its generous grant to the OHP, and to SPAB members for their support through donations. Historic England provided a grant of c.£30,000, which allowed the development of the structural repair proposals implemented in 2022.

Work at the SPAB’s important post mill at Kibworth Harcourt, Leicestershire, was completed in 2022, supported largely by a generous legacy from the late Enid Lamb. The building has since been removed from the Historic England’s national ‘at risk’ register, and a group of local volunteers has been formed to help care for the mill.

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THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

GOING CONCERN

Management have prepared cash flow forecasts to support the assessment that the accounts should be prepared on a going concern basis. The model covers the period to 30 September 2024 to consider the future plans of the Society and the effect of inflation and possible recession on future costs and income streams. The forecast demonstrates that the Society has the ability to remain in a cash positive position throughout the period of analysis with the lowest cash balance (excluding Investments) forecast to be just over £500k. Unrestricted reserves at the date of the signing of the accounts are in excess of £2.5M, or c.1.2x annual expenditure and in excess of the c.£1.0M minimum unrestricted funds calculated according to the Society’s reserves policy.

After making enquires, the trustees have a reasonable expectation that the charitable company has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the accounts. The trustees do not consider there to be any material uncertainties about the charity’s ability to continue as a going concern.

FUTURE PLANS

The SPAB’s 2022-5 Strategy will be pursued in 2023, with increasing emphasis placed on the link between building conservation and environmental sustainability. This will feature strongly in research objectives, casework and our communications output. In addition, the SPAB is set to acquire Fladbury Mill in Worcestershire, as the result of a generous legacy. The site has particular educational value in having both a traditional waterwheel and a river-powered electricity-generating turbine.

In addition to well-established areas of work, in 2023 we will run our main working party at Boxley in Kent, while also continuing repair work at its neighbouring Old House Project. The Society will also transfer its website to a new software platform.

SPAB Ireland is developing a range of activities with further support from the Heritage Council in the Republic. SPAB Scotland is exploring the needs of historic churches in the country, linked to the planned sale of a significant percentage of the Church of Scotland’s historic building stock. The SPAB’s regional groups have resumed activities following the pandemic period. Our successful new Awards Ceremony is to be held on a biennial basis, with 2023 devoted to the preparation for an anticipated second event in November 2024.

STATEMENT OF TRUSTEES RESPONSIBILITIES

The Trustees, (who are also the directors of The Society for the Protection of Ancient Buildings for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the Accounts in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards). Company law requires the Trustees to prepare accounts for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and resources expended, including the income and expenditure of the charitable company for that period. In preparing these accounts, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and accounting estimates that are reasonable and prudent; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions, 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 and the provisions of the charity’s constitution. 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.

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THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS

FOR THE YEAR ENDED 31 DECEMBER 2022

TRUSTEES REPORT

DISCLOSURE OF INFORMATION TO AUDITORS

Insofar as each of the Trustees of the charitable company at the date of approval of this report is aware, there is no relevant audit information (information needed by the charitable company’s auditor in connection with preparing the audit report) of which the charitable company’s auditor is unaware. Each Trustee has taken all the steps that he/she should have taken as a Trustee in order to make himself/herself aware of any relevant audit information and to establish that the charitable company’s auditors are aware of that information.

The Report and accounts have been independently audited in accordance with the provisions applicable to The Companies Act 2006.

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

Approved by the Board on 11[th] July 2023

and signed on its behalf by:

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______
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Name: Duncan McCallum, Chair

Name: Christopher Wheaton, Honorary Treasurer

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THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

Opinion

We have audited the financial statements of The Society for the Protection of Ancient Buildings (‘the charitable company’) for the year ended 31 December 2022 which comprise the Statement of Financial Activities (incorporating an Income and Expenditure Account), the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company’s affairs as at 31 December 2022 and of the charitable company’s income and expenditure, for the year then ended;

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

• have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005 and Regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (amended).

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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee's 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 contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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.

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 our audit

• the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.

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THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

• adequate and proper accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out on page 8, 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.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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 an auditor’s report 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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and noncompliance with laws and regulations are set out below.

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 auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and The Charities and Trustee Investment (Scotland) Act 2005 together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR) and employment and health and safety legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to

11

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS INDEPENDENT AUDITOR’S REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income, and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals and sample testing of income, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Julia Poulter Senior Statutory Auditor

For and on behalf of Crowe U.K. LLP Statutory Auditor

London

21st July 2023

12

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS

STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2022

					2022	2021
		Unrestricted	Restricted	Endowed	Total	Total
	Notes	Funds	Funds	Funds	Funds	Funds
Income and endowments from:		£	£	£	£	£
Donations and legacies	2	1,010,493	16,347	-	1,026,840	271,843
Charitable activities	3	527,596	252,135	-	779,731	862,846
Other trading activities	4	124,764	1,147	-	125,911	374,221
Investment Income	5	35,232	46,358	-	81,590	67,340
Other		9,696	-	-	9,696	26,717
		__	___	__	__	____
Total		1,707,781	315,987	-	2,023,768	1,602,967
Expenditure on:
Raising funds		196,074	24,042	-	220,116	294,361
Charitable activities		1,056,952	426,157	-	1,483,109	1,579,645
		__	___	__	__	____
Total	6	1,253,026	450,199	-	1,703,225	1,874,006
Operating surplus /		454,755	(134,212)	-	320,543	(271,039)
(deficit)
Net (losses)/gains on		(203,069)	(198,463)	(31,730)	(433,262)	332,646
investments
		__	___	__	__	____
Net income / (expenditure)		251,686	(332,675)	(31,730)	(112,719)	61,607
Transfer between funds	14	-	-	-	-	-
		__	___	__	__	____
Net movement in funds		251,686	(332,675)	(31,730)	(112,719)	61,607
Reconciliation of
funds:
Total funds brought forward		2,835,441	1,936,560	698,929	5,470,930	5,409,323
		__	___	__	__	____
Total funds carried
forward		3,087,127	1,603,885	667,199	5,358,211	5,470,930

The above results are from continuing activities and there are no other gains and losses except as stated above.

The notes on pages 16 to 31 form part of these financial statements

13

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS BALANCE SHEET

AS AT 31 DECEMBER 2022

Company Number 05743962 Notes FIXED ASSETS Tangible assets 9 Intangible assets 10 Investments 11 CURRENT ASSETS Debtors 12 Cash at bank and in hand CURRENT LIABILITIES Creditors: amounts falling due within one year 13 NET CURRENT ASSETS Creditors: amounts falling due > than one year 13 NET ASSETS THE FUNDS OF THE CHARITY 14 Unrestricted - General - Designated 15 Restricted - The Mills Section - The William Morris Craft Fellowship - Other 14 Endowed funds 14	2022 £ 352,732 59,143 4,262,064 _ 4,673,939 368,371 761,807 __ 1,130,178 181,070 949,108 264,836 5,358,211 2,666,685 420,442 _ 3,087,127 597,313 128,006 878,566 ___ 1,603,885 667,199 5,358,211	2021 £ 255,744 21,293 4,691,722 _ 4,968,759 147,852 667,852 __ 815,704 191,415 624,289 122,118 5,470,930 2,511,987 323,454 _ 2,835,441 848,752 145,614 942,194 ___ 1,936,560 698,929 5,470,930

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

Approved by the trustees and authorised for issue on 11[th] July 2023 and signed on its behalf by:

______ Name: Duncan McCallum, Chair

Name: Chris Wheaton, Honorary Treasurer ______

The notes on pages 16 to 31 form part of these financial statements

14

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS CASH FLOW STATEMENT

AS AT 31 DECEMBER 2022

	Note	2022	2021
		£	£
Cash flows from operating activities:
Net cash used in operating activities	a)	192,111	(17,862)
Cash flows from investing activities:
Dividends and interest from investments		81,590	67,340
Purchase of tangible and intangible fixed assets		(176,141)	(5,605)
Proceeds from sale of investments		1,235,153	1,485,509
Purchase of investments		(1,241,760)	(1,317,257)
Net cash provided by investing activities		(101,158)	229,988
Cash flows from financing activities
Net cash provided by financing activities		-	-
Change in cash and cash equivalents in the reporting
period		90,953	212,125
Cash and cash equivalents
at 1 January	b)	958,755	746,630
at 31 December	b)	1,049,708	958,755
NOTES TO THE CASH FLOW STATEMENT
a) Reconciliation of net income/(expenditure) to net
cash flow from operating activities
Net income/(expenditure) for the reporting period		(112,719)	61,607
Adjustments for:
Add back long-term loan amount		-	-
Depreciation and amortisation		41,304	75,198
(Gains) on investments		433,262	(332,646)
Dividends and interest from investments		(81,590)	(67,340)
Decrease in stock		-	-
(Increase) / decrease in debtors		(220,519)	166,798
Increase / (decrease) in creditors		132,373	78,521
		___	___
Net cash provided by (used in) operating activities		192,111	(17,862)
b) Analysis of cash and cash equivalents
Cash at bank and in hand		761,807	667,852
Cash held as long-term investments		287,901	290,903
		___	___
		1,049,708	958,755

The notes on pages 16 to 31 form part of this financial statement

15

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

CHARITY INFORMATION

The Society is a company limited by guarantee (registered number 05743962), which is incorporated and domiciled in the UK and is a public benefit entity. The address of the registered office is 37 Spital Square, London E1 6DY.

1. ACCOUNTING POLICIES

The principal accounting policies adopted and critical areas of judgements are as follows:

a) Basis of Accounting

The accounts (financial statements) have been prepared in accordance with the Charities SORP (FRS102) applicable to charities preparing their accounts in accordance with FRS102 the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 and UK Generally Accepted Practice as it applies from 1 January 2015. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note. The Society for the Protection of Ancient Buildings meets the definition of a public benefit entity under FRS 102. These accounts include the corporate funds of the company and also the Trust funds retained in the precursor charity number 231307 under a uniting direction dated 7 December 2006.

Going concern

Management have prepared cash flow forecasts to support the assessment that the accounts should be prepared on a going concern basis. The model covers the period to 30 September 2024 to consider the future plans of the Society on future income streams. The forecast demonstrates that the Society has the ability to remain in a cash positive position throughout the period of analysis with the lowest cash balance (excluding Investments) forecast to be over £600k. Unrestricted reserves at the date of the signing of the accounts are in excess of £2.5M, or c.1.5x annual expenditure and in excess of the minimum unrestricted funds suggested by the Society’s reserves policy.

After making enquires, the trustees have a reasonable expectation that the charitable company has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the accounts. The trustees do not consider there to be any material uncertainties about the charity’s ability to continue as a going concern.

b) Functional/presentational currency

The functional currency of The Society for the Protection of Ancient Buildings is considered to be in pounds sterling because that is the currency of the primary economic environment in which the charity operates.

c) Income

Contributions, donations and subscriptions are accounted for on a cash receipts basis. Life memberships received are amortised to the Statement of Financial Activities over a period of 20 years being the period estimated to represent average life membership. Income from trading activities is recognised in the period in which the service has been provided or product sold. Income from government and other grants, is recognised when the Charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably. Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

Investment income from dividends and interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest received or receivable from the bank.

Legacy income is included in the financial statements when the Charity is satisfied that the conditions of entitlement, probability and measurement have been met. Pecuniary legacies are accounted for when notified. Residuary legacies are accounted for when notification of impending distribution or estate accounts have been received. Where legacies have been notified to the Charity or the Charity is aware of the granting of probate and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

16

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES (Continued)

d) Expenditure

Expenditure is included in the Statement of Financial Activities on an accruals basis, inclusive of any irrecoverable VAT.

Raising funds comprise those costs directly attributable to managing the investment portfolio and fundraising costs which are those incurred in seeking voluntary contributions for the Charity.

Charitable activities comprise direct expenditure including staff costs attributable to each activity. Support costs are apportioned to charitable activities on the basis of staffing of that relevant activity. Governance costs are those incurred in connection with compliance with constitutional and statutory requirements.

e) Depreciation and amortisation

Tangible fixed assets with a cost of over £500 are capitalised. Depreciation is provided on all tangible fixed assets other than antique furniture at rates calculated to write off the cost less estimated residual value of each asset over its estimated useful life with depreciation being charged in full for the year of acquisition and none in the year of sale. The depreciation rates in use during the year are noted as follows:

Freehold buildings - over 50 years (2% per annum) Office equipment - over 5 years (20% per annum) Computer equipment - over 5 years (20% per annum)

Depreciation is not provided on ancient buildings owned by the Charity as in the view of the Trustees, any charge and accumulated balance in respect of depreciation would be immaterial. Further due to the nature of the ancient buildings their age is an intrinsic element of their value to the objects of the Charity, which will not be eroded in the passing of time.

St Andrew’s Boxley is currently undergoing significant repairs and construction work and is therefore classified in the accounts as an asset under construction. Assets under construction are not depreciated until the work is completed and the asset is placed into service.

Intangible assets are capitalised at cost and amortised to write off the cost over the estimated useful life.

Intellectual property rights - over 3 years (33.33% per annum) Website costs - over 5 years (20% per annum)

Website and database development costs have been capitalised within intangible assets as they can be identified with a specific project anticipated to produce future benefits. Once brought into use they will be amortised on the straight-line basis over the anticipated life of the benefits arising from the completed project.

Heritage assets: the Society maintains two properties in support of the Society’s objective of preserving and protecting ancient buildings. Kibworth Harcourt Mill and St Mary’s Church are held as heritage assets with a £Nil book value in the accounts. The Trustees consider that, as both are scheduled ancient monuments with no current income or development potential, it would not be worthwhile or cost-effective to obtain valuations for them.

f) Investments

Investments are revalued to market value as at the balance sheet date and the surplus or deficit of this revaluation is shown as unrealised gains or losses on the face of the Statement of Financial Activities. Realised gains and losses represent the difference between the sale proceeds and the opening market value of an investment or cost if purchased during the year.

g) Restricted Funds

These are monies, which have legal restrictions on their use where donors have specified the funds can only be spent on certain of the charity’s activities.

17

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES (Continued)

h) Endowed Funds

These are funds where the trustees are required to hold capital, as represented by the investments, and are not entitled to spend it. Income arising from these funds is either restricted income or unrestricted income depending upon the details included with the original gift.

i) Pension Costs

The Charity contributes to The Pensions Trust Schemes and also to an individual personal pension scheme. Contributions to all schemes are charged to the Statement of Financial Activities (‘SOFA’) as they become payable in accordance with the rules of the schemes.

j) Financial Instruments

The Charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost. Financial assets held at amortised cost comprise cash at bank and in hand, short term cash deposits together with trade and other debtors excluding prepayments. Financial liabilities held at amortised cost comprise the short and long term trade and other creditors excluding deferred income and taxation payable. No discounting has been applied to these financial instruments on the basis that the periods over which amounts will be settled are such that any discounting would be immaterial.

Financial assets held at fair value (a)	2022 £ 2021 £ 3,974,164 4,400,819

• (a) Comprising all fixed asset investments as detailed in Note 11.

Cash at bank and cash 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. Investments, including bonds and cash held as part of the investment portfolio are held at fair value at the Balance Sheet date, with gains and losses being recognised within income and expenditure. Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

k) Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity’s accounting policies, Trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

18

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2. DONATIONS AND LEGACIES Donations Trusts and legacies	2022 £ 146,213 880,627 1,026,840	2021 £ 158,478 113,365
		271,843

As stated in the accounting policies (note 1), the Society recognises income from legacies when there is probability and reliability of receipt and their value can be accurately measured. At 31 December 2022, the Society had been notified of 3 further legacies that haven't been included in these financial statements as they did not meet these criteria. These legacies may realise approximately £2,592,820.

3. CHARITABLE ACTIVITIES Grants Receivable Historic England National Heritage – Ireland Funding Dance Scholarship Foundation WMCF Trust Ashley Family Foundation CADW The Pilgrim Trust Alan Baxter Drake Trust Lethaby Scholarship Delves Charitable Trust Quilter Cheviot Carpenter’s Trust William & Edith RWK Goodman LLP Francis de Caires The Charlotte Bonham Carter Foundation Whitehead Moncton Charitable Foundation Culture Recovery Fund Old Buildings Preservation and Restoration Trust Fenton Arts Trust Charitable Trust Other Total Grants Receivable Subscriptions Literature Sales General Events	2022 £ 146,945 43,962 24,500 13,000 11,500 10,483 10,000 10,000 7,500 7,000 6,600 5,000 5,000 5,000 3,500 2,500 2,000 1,000 - - - - - 315,490 303,344 6,329 154,568 779,731	2021 £ 94,344 - 15,000 10,000 - - 10,000 - - - 6,000 2,500 - - - 2,500- - - 260,500 7,500 7,000 2,000 5,498
		422,842 299,097 5,889 135,018
		862,846

19

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

4. OTHER TRADING ACTIVITIES Advertising Rent receivable Sponsorship Sale of Assets	2022 £ 80,588 36,206 9,117 - 125,911	2021 £ 83,422 30,299 10,500 250,000 374,221

£250,000 was realised in relation to the sale of land at Oxford, Suffolk. The land was acquired by SPAB as part of a much larger property bequest and the sale of the plot has released funds to assist educational and promotional work linked to the Old House Project. This work was otherwise unfunded.

5. INVESTMENT INCOME Portfolio Income Interest on cash deposits	2022 2021 £ £ 77,670 66,939 3,920 401
	81,590 67,340

20

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

6. EXPENDITURE

Unrestricted Funds Restricted Funds Charitable Activities £ £ Building Maintenance Grants and donations 50,210 5,129 _ _________ 50,210 5,129 Educational costs Scholarships and fellowships 357 73,369 General events 18,590 - Courses, meetings, lectures, and events 78,312 7,530 Wages and salaries 194,669 108,061 Newsletter 69,123 7,385 Literature 7,347 - Staff Travel 9,585 2,085 Other Educational Costs 7,957 2,000 Building Project - 51,808 Support costs (note 7) 235,294 47,137 ______ _ 621,234 299,375 Advisory services Technical and Casework direct costs 11,584 9,555 Wages and salaries 178,144 72,994 Travel 586 - Support costs (note 7) 195,194 39,104 ______ _ 385,508 121,653 ______ _ Total Charitable Activities 1,056,952 426,157 Raising Funds Fundraising costs 15,431 746 Wages and salaries 78,373 - Support costs (note 7) 60,915 12,203 Advertising Commission 33,957 - Investment managers fees 7,398 11,093 _____ ___ _ Total Raising Funds 196,074 24,042 TOTAL EXPENDITURE 1,253,026 450,199	2022 Total £ 55,339 _ 55,339 73,726 18,590 85,842 302,730 76,508 7,347 11,670 9,957 51,808 282,431 _ 920,609 21,139 251,138 586 234,298 _ 507,161 _ 1,483,109 16,177 78,373 73,118 33,957 18,491 _ 220,116 1,703,225	2021 Total £ 103,900 _ 103,900 62,102 250 26,589 296,039 73,789 1,200 6,789 4,084 306,238 264,127 _ 1,041,207 17,729 220,277 - 196,532 _ 434,538 _ 1,579,645 22,225 116,987 104,376 32,465 18,308 __ 294,361 1,874,006

The value of volunteer time is not included in the costs disclosed above. Volunteers contribute to and support the Society in a number of areas such as working parties, casework, education and training, technical advice, archives and administration.

21

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

7. SUPPORT COSTS

SUPPORT COSTS
	Unrestricted	Restricted	2022	2021
	Funds	Funds	Total	Total
	£	£	£	£
Travel and volunteers’ expenditure	15,741	3,540	19,281	5,487
Wages and salaries	169,177	31,321	200,498	210,310
Printing, stationery, postage, and advertising	15,986	6,803	22,789	18,065
Establishment expenses	97,850	24,552	122,402	99,440
Legal and professional	103,974	12,411	116,385	113,843
Depreciation	33,812	7,492	41,304	75,198
Bank charges and interest	21,001	5,083	26,084	17,439
Other	8,568	2,556	11,124	5,167
Governance costs:
Audit (including irrecoverable VAT)	17,124	2,876	20,000	18,000
Trustee meetings	8,170	1,810	9,980	2,086
	___	__	______	______
	491,403	98,444	589,847	565,035

These costs are allocated over charitable activities and raising funds on the basis of the number of staff employed in each of these areas. Included in support costs is remuneration for the Society auditor for non-audit services totalling £Nil (2021: £Nil)

8. TRUSTEES AND EMPLOYEES Staff costs: Wages and salaries Social security costs Pension costs Employee emoluments in the band £70,000 - £79,999 Employee emoluments in the band £80,000 - £89,000	2022 £ 727,785 63,563 41,391 832,739 - 1	2021 £ 743,502 63,270 36,841
		843,613
		1 -

The Trustees did not receive any remuneration during the year. Expenses relating to travel of £988 (2021: £47) were paid on behalf of 3 (2021: 1) Trustees during the year.

The key management personnel of the charity comprise the trustees, the Director, Head of Development and Communications, Head of Education and Training, Head of Technical and Research, and Head of Casework. The total employee benefits of the key management personnel of the charity were £248,436 (2021: £258,721).

The average number of employees during the year, analysed by function was:

		Headcount		Full-time
				equivalent
	2022	2021	2022	2021
	No.	No.	No.	No.
Fundraising	1	2	1.0	1.5
Educational	11	11	5.9	7.2
Advisory services	8	8	4.5	5.3
Support	10	9	5.9	6.5
	__	__	__	__
	30	30	17.3	20.5

22

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

9. TANGIBLE FIXED ASSETS

Cost As at 1 January 2022 Additions Disposals As at 31 December 2022 Depreciation As at 1 January 2022 Charge for the year Disposals As at 31 December 2022 Net book value 31 December 2022 31 December 2021	Freehold Land & Buildings £ 332,504 - - 332,504 172,727 4,429 - 177,156 155,348 159,777	Antique Furniture £ 11,129 - - 11,129 - - - - 11,129 11,129	Office Equipment £ 20,678 - (15,757) 4,921 19,158 760 (15,757) 4,161 760 1,520	Computer Equipment £ 78,247 3,711 (11,749) 70,209 54,929 14,821 (11,749) 58,001 12,208 23,318	Assets Under Construction £ 60,000 113,287 - 173,287 - - - - 173,287 60,000	Total £ 502,558 116,998 (27,506)
						592,050
						246,814 20,010 (27,506)
						239,318
						352,732
						255,744

Included within freehold property is building and land at 37 Spital Square, which was purchased in 1983. The buildings were purchased at a cost of £221,453 and are depreciated at 2% per annum. Land at a cost of £110,727 is not depreciated.

In 2018 land at St Andrew’s Boxley was purchased for £60,000. This asset was previously deemed to be land given the state of the property, and therefore not subject to depreciation. However, the asset has since undergone significant repairs and construction work and is now classified in the accounts as an asset under construction.

Heritage Assets

Kibworth Harcourt Mill and St Mary’s Church are held as heritage assets with a £Nil book value in the accounts. The Trustees consider that, as both are scheduled ancient monuments with no current income or development potential, it would not be worthwhile or cost-effective to obtain valuations for them.

23

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

10. INTANGIBLE ASSETS Cost As at 1 January 2022 Additions Disposals As at 31 December 2022 Amortisation As at 1 January 2022 Disposals Charge for year As at 31 December 2022 Net Book Value – 31 December 2022 31 December 2021	Website & Database Development £ 275,407 59,144 - 334,551 254,114 - 21,294 275,408 59,143 21,294	Total £ 275,407 59,144 -
		334,551
		254,114 - 21,294
		275,408
		59,143
		21,294

24

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

11. FIXED ASSET INVESTMENTS Market value of quoted investments Cash Listed investments Market value at start of year Additions Disposals Net gains on investments Market value at end of year	2022 £ 3,974,164 287,901 4,262,065 4,400,819 1,241,760 (1,235,153) (433,262) 3,974,164	2021 £ 4,400,819 290,903
		4,691,722
		4,236,425 1,317,257 (1,485,509) 332,646
		4,400,819

Listed investments are managed by third party investment managers on behalf of the Charity and are invested in a mixture of UK and overseas equities, bonds, property funds and fixed interest securities.

12. DEBTORS Trade debtors Prepayments and accrued income 13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors Other creditors Taxation and social security Accruals and deferred income CREDITORS: AMOUNTS FALLING DUE > 1YEAR Bank loans and overdrafts Deferred Income			2022 £ 47,100 321,271 368,371 2022 £ 90,119 8,377 22,802 59,772 181,070 2022 £ 264,836 -	2021 £ 23,917 123,935 147,852 2021 £ 10,968 8,249 12,500 159,698 191,415 2021 £ 104,983 17,135
			264,836	122,118

The loan for £265,292 is part of a £500,000 loan facility provided by the Architectural Heritage Fund. £250,000 of this loan facility has been drawn down at 31 December 2022 (2021: £100,000). SPAB are recognising £9,853 of accrued loan interest as at 31 December 2022 (2021: £4,983). The loan is available for a period of 60 months from the first date upon which the loan is drawn down. No capital and interest repayments are due for a period of 36 months after the date of the initial drawdown. After this initial period only interest payments are required to be paid up to month 60, upon which full capital repayment must be made.

Deferred income of £17,105 (2021: £30,175) is included above. All deferred income is released in the subsequent accounting period.

25

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

14. MOVEMENT IN FUNDS

Restricted Funds: The Mills Section R&M of ancient buildings Scholarship for architects The William Morris Craft Fellowship Historic England Gloria e Marco Award D&P Marsh Trust Restricted (Other) Total Restricted Funds Endowed Funds: Banister Fletcher Hardy Memorial Ernest Cook Jonathan Vickers Bertha Fletcher R R Cory Bequest Total Endowed Funds Designated Funds: Fixed Asset Reserve IT Fund Kibworth Harcourt Repair Spital Square Repair General Fund Total Unrestricted Funds Total Funds	Balance 1 January Net Investment Balance 31 December 2022 Income Expenditure Transfers Gains 2022 £ £ £ £ £ £ 848,751 63,188 (171,265) - (143,361) 597,313 438,836 10,558 (2,415) - (25,763) 421,216 272,805 73,738 (110,040) - (29,339) 207,164 145,614 66,324 (83,932) - - 128,006 - 93,031 (82,548) - - 10,483 501 250 - - - 751 100,000 - - - - 100,000 130,053 8,898 1 - - 138,952
	1,936,560 315,987 (450,199) - (198,463) 1,603,885
	Balance 1 January Net Investment Balance 31 December 2022 Income Expenditure Transfers Gains 2022 £ £ £ £ £ £ 5,138 - - - - 5,138 244,947 - - - (28,044) 216,903 46,586 - - - (4,485) 42,101 178,638 - - - (15,804) 162,834 120,308 - - - 7,200 127,508 103,312 - - - 9,403 112,715
	698,929 - - - (31,730) 667,199
	255,743 - (20,010) 116,998 - 352,731 46,270 - - - - 46,270 7,000 - - - - 7,000 14,441 - - - - 14,441
	323,454 - (20,010) 116,998 - 420,442 2,511,987 1,707,781 (1,233,016) (116,998) (203,069) 2,666,685
	2,835,441 1,707,781 (1,253,026) - (203,069) 3,087,127
	5,470,930 2,023,738 (1,703,225) - (433,262) 5,358,211

26

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

14. MOVEMENT IN FUNDS (continued)

Restricted Funds:

The Mills Section

The fund supports the work of the Society’s separate Mills Section.

Included under the headings Repair and maintenance of ancient building and Scholarships for architects are the following funds:

Grant making

The Hardy Memorial Fund The Queen Elizabeth Statue Fund The Baber Fund The Cook, Taylor & Lilibourne Fund The Misses Newcombe Bequest The Miss Truman Bequest Kibworth Harcourt Mill

Scholarships for Architects The Banister Fletcher Fund The Ernest Cook Scholarship The Patrick Plunket Fund The Jonathan Vickers Scholarship Fund

The William Morris Craft Fellowship

Funds to cover the cost of the SPAB’s training scheme for building craftsmen.

Historic England includes:

Technical Advice Line : Funding received towards the costs of the Society’s free technical advice helpline. Casework: Funding received towards the costs of the Society’s statutory casework activities.

Gloria e Marco Award

This is a new fund for the benefit of young Italian graduates set up in honour of two young Italian architects, who died tragically in the Grenfell Tower fire. The purpose of the fund is to provide assistance to talented young Italian graduates, to help develop their interested in building conservation.

Endowed Funds:

There are six endowment funds. Banister Fletcher, Ernest Cook and Jonathan Vickers support Scholarships for Architects. Thomas Hardy supports repairs to Hardy’s Cottage, the writer’s birthplace. Bertha Fletcher and RR Cory support the work of the Society.

Designated Funds:

Fixed Asset Reserve

The Fixed Asset Reserve represents the net book value of the unrestricted element of the tangible fixed assets.

IT Fund

To fund a new website and database development. This fund will be expended over the next one to two years.

Kibworth Harcourt Repair Fund

This fund will be used for the ongoing maintenance of Kibworth Harcourt Mill and will likely be spent over the next 5 years. Major repairs to Kibworth Harcourt Mill will be funded by the Mills Section Enid Lamb Legacy.

Spital Square Repair Fund

This fund has been set aside to support future major repair works.

Transfers between funds

A transfer of ££116,998 was made from the General to the Designated fund during the year. The transfer was made to equate the Fixed Asset Reserve account to the fixed asset balance on the balance sheet.

27

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

15. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Restricted The Mills Section R&M of ancient buildings Scholarship for architects The William Morris Craft Fellowship Gloria e Marco Award Historic England D&P Marsh Trust Restricted (Other) Endowed Funds Unrestricted Funds Total	Tangible Fixed Assets Intangible Fixed Assets Net Investments Net Current Assets Total 2022 £ £ £ £ £ - - 597,313 - 597,313 - - 310,416 110,800 421,216 - - 287,773 (80,609) 207,164 - - - 128,006 128,006 - - - 751 751 - - - 10,483 10,483 - - - 100,000 100,000 - - - 138,951 138,951 - - 653,704 13,495 667,199 352,732 59,143 2,412,858 262,395 3,087,128
	352,732 59,143 4,262,064 684,272 5,358,211

16. PENSION

The Society participates in The Pensions Trust's Growth Plan ("the Plan") for 27 staff (2021: 23). This is a multi-employer funded defined benefit pension plan and is not contracted out of the State scheme. It is not possible in the normal course of events to identify on a reasonable and consistent basis the share of underlying assets and liabilities belonging to individual participating employers. The Plan's Trustee commissions an actuarial valuation of the Plan every three years. The purpose of the actuarial valuation is to determine the funding position of the Plan by comparing the assets with the past service liabilities as at the valuation date. Asset values are calculated by reference to market levels. Accrued past service liabilities are valued by discounting expected future benefit payments using a discount rate calculated by reference to the expected future investment returns. If the actuarial valuation reveals a deficit, the Trustee will agree a recovery plan to eliminate the deficit over a specified period of time either by way of additional contributions from employers, investment returns or a combination of these.

The Society has been advised that a debt may be payable on withdrawal from the Pensions Trust Growth Plan as an employer and this was actuarially calculated to be £28,291 on 30 September 2018. Withdrawal may be deemed when an employer has no active members remaining in the Plan and no eligible employees to whom to offer membership. Constitutional re-organisation may also be a ‘cessation event’. The Society has no plans to leave the scheme and this contingent liability has not been provided for in the accounts. The results of the 30 September 2020 triennial valuation have confirmed the requirement for additional contributions to the Pensions Trust Growth Plan from 1 April 2022 of £508.03 per annum. From 1 April 2023 deficit contributions required from The Society are £508 a year.

Staff may be members of the Pensions Trust Growth Plan, a money purchase scheme, and the Society makes contributions into this scheme, as well as into the personal pension plan of one member of staff. The pension charge for the year includes contributions payable to The Pensions Trust of £29,526 (2021: £31,898). At the year-end £4,692 (2021: £4,692) was accrued in respect of future deficit contributions to the scheme.

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THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

17. OPERATING LEASES

The future minimum lease rental income due from tenants under non-cancellable operating leases for each of the following periods:

ach of the following periods:
Land and buildings Within one year Between one and five years	2022 £ 26,910 49,335 76,245	2021 £ 21,667 -
		21,667

18. RELATED PARTY TRANSACTIONS

Matthew Slocombe (CEO) and Nichola Tasker (Trustee) are both Trustees of The Drake Trust. The Drake Trust awarded grants for £7,500 to SPAB in 2022 (2021: £Nil).

Mildred Cookson (Trustee) is a Trustee of the Mills Archive Trust. Supplies totalling £2,000 were remitted to the Mills Archive Trust from SPAB in 2022 (2021: £2,400).

Duncan McCallum (Chair) was a director at Historic England, having left in 2022. Historic England awarded grants for £146,945 to SPAB in 2022 (2021: £94,344).

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THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

19. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

					2021
		Unrestricted	Restricted	Endowed	Total
	Notes	Funds	Funds	Funds	Funds
Income and Endowments from:		£	£	£	£
Donations and legacies	2	255,820	16,023	-	271,843
Charitable activities	3	698,406	164,440	-	862,846
Other trading activities	4	372,889	1,332	-	374,221
Investment Income	5	29,489	37,851	-	67,340
Other		26,705	12	-	26,717
		__	___	__	__
Total		1,383,309	219,658	-	1,602,967
Expenditure on:
Raising funds		256,541	37,820	-	294,361
Charitable activities		837,393	742,252	-	1,579,645
		__	___	__	__
Total	6	1,093,934	780,072	-	1,874,006
Operating surplus / (deficit)		289,375	(560,414)	-	(271,039)
Net gains/(losses) on investments		130,642	148,029	53,975	332,646
		__	___	__	__
Net income/(expenditure)		420,017	(412,385)	53,975	61,607
Transfer between funds	9	-	-	-	-
		__	___	__	__
Net movement in funds		420,017	(412,385)	53,975	61,607
Reconciliation of funds:
Total funds brought forward		2,415,424	2,348,945	644,954	5,409,323
		__	___	__	__
Total funds carried forward		2,835,441	1,936,560	698,929	5,470,930

30

THE SOCIETY FOR THE PROTECTION OF ANCIENT BUILDINGS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

20. COMPARATIVE FUNDS

MOVEMENT IN FUNDS Restricted Funds: The Mills Section R&M of ancient buildings Scholarship for architects The William Morris Craft Fellowship Historic England D&P Marsh Charitable Trust Gloria e Marco Award Restricted (Other) Total Restricted Funds Endowed Funds Designated Funds: Fixed Asset Reserve IT Fund Kibworth Harcourt Repair Spital Square Repair General Fund Total Unrestricted Funds Total Funds	Balance 1 January Net Investment Balance 31 December 2021 Income Expenditure Transfers Gains 2021 £ £ £ £ £ £ 1,153,423 49,238 (460,812) - 106,902 848,751 414,147 7,969 (2,468) - 19,188 438,836 288,993 45,019 (83,146) - 21,939 272,805 188,385 33,009 (75,780) - - 145,614 - 74,344 (74,344) - - - 100,000 - - - - 100,000 83,713 310 (83,522) - - 501 120,284 9,769 - - - 130,053
	2,348,945 219,658 (780,072) - 148,029 1,936,560 644,954 - - - 53,975 698,929 270,254 - (20,115) 5,604 - 255,743 46,270 - - - - 46,270 7,000 - - - - 7,000 14,441 - - - - 14,441
	337,965 - (20,115) 5,604 - 323,454 2,077,459 1,383,309 (1,073,819) (5,604) 130,642 2,511,987
	2,415,424 1,383,309 (1,093,934) - 130,642 2,835,441
	5,409,323 1,602,967 (1,874,006) - 332,646 5,470,930

21. COMPARATIVE ANALYSIS OF NET ASSETS BETWEEN FUNDS

Restricted The Mills Section R&M of ancient buildings Scholarship for architects The William Morris Craft Fellowship Gloria e Marco Award D&P Marsh Charitable Trust Restricted (Other) Endowed Funds Unrestricted Funds Total	Tangible Fixed Assets Intangible Fixed Assets Net Investments Net Current Assets Total 2021 £ £ £ £ £ - - 848,751 - 848,751 - - 338,310 100,526 438,836 - - 318,271 (45,466) 272,805 - - - 145,614 145,614 - - - 501 501 - - - 100,000 100,000 - - - 130,053 130,053 - - 684,946 13,983 698,929 255,744 21,293 2,501,444 56,960 2,835,441
	255,744 21,293 4,691,722 502,171 5,470,930

31