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2020-12-31-accounts

Charfty Roglstratlon No. 1113837 Company Reglstratlon No. 5743618 IEThgland and Wal￿) ESKDALE MILL & HERITAGE TRUST ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 'A4E4RSLS• 3010912021 COMPANIES HOUSE Gibbons Chartered Accountants &Tax Advisers SERVICE SOLUTIONS VALUE

ESKDALE MILL & HERITAGE TRUST LEGAL AND ADMINISTRATIVE INFORMATION Trust•es MT P Dean Mi S Hemm Mi R Johnson Ms R Lord Mr PG Phara Mr SWRoss {Appointed 3 June 2020) {Appointed 5 November 20201 Ch*rity numb•r 1113837 Company number 5743618 Principal addrus Eskdale Mill Bc Holmrim Cumbria CA19 1TG R¢glsterod offic• Eskdalg Mil Holmrook Cumbria CA19 1TG Indopendont examlner Gibbons Carfeton House 136 Gray Street ifytjrkingtc Cumbria CA14 2LU

ESKDALE MILL & HERITAGE TRUST CONTENTS Page Trustees. report Independent examinerfs report Statement of financial acti¥it*s Balanee sheet Notes to the financaal statwrwits 9-20

ESKDALE MILL & HERITAGE TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020 The Trustees present their rep)rt and ffinancial stslements for the year ended 31 December 2020. Prlnclpal objects The principal charitsble obpcls of the Trust are the preseTra￿n and development. for the public benefrt. of the 16th century Eskdale Water Com Mill * B¢y)t. being of partthlar historical and architectural inleresl,. and to advance the education of the public in the hi510ry, heritage. geography and wlogy of Eskdale. so as to increase their understanding of the built and natural environmenL In acC￿dance with section 17(5> charit￿ Act 2011, in exerugng their Ptr4¥ers and duties the Irustees have had regard to the Charrty Commission's guidance ¢)n the pubhc benefrt objeelive. Gov•rnance and man•gem•nt Inevitably the effects of ts Covid-19 pandern￿ (krfninated all aspects of Ihe Trusl's work duriThJ the year. Trustees, meetings were replaced in the eady months of the outbreak by circularised briefings. until monthly meetings were resumed by Zotyn in June. The trustees therefore met on nine occasions and contsnued carefully lo monitor the phywcal pr￿3￿$$ and financial impli&￿$ of Ihe National Lottery Hent&3e Fund conseNalion project and the Tfusys other actNities. Prcgress meetings, attended by the lead eonsultanls and a Trust rep￿SentatiVe. wefe hekl regularly but reduced to bi-monthty as the project approached its final year. NoAmnual General Meeting look place in 2020. We leamed with regret of the deaths of th￿e of the Trusfs orJinal patrons. Lord Rea of Eskdale. Patrick Gordon-Duff-Penninglon arKI Lord Judd. and remember with gratitude the help they gave to the Trust in variou5 ways. Adam Pattison, who had seNed toth as membership secretsry and deputy treasurer. retired as a trustee in February". the Tnjst is most grateful to him for all his help. were p￿aSed lo welcome three additional trustees, all of whom had previousty seNed as advisers ." Stuart Ross. general manager (visitor experience} al the Ravenglass and ESkda￿ Raihvay Cornpany., Steve Hemm. who ha5 an engineering background and continues lo be an athve volunteer: and Peter Grove. a management a￿Untant. Andr•v Feaver. who txings Specialist engineering skills. joined LIS as an aokn"ser. Kale Hughes continued in post as our knowledgeabbe and enthusiastic resident mill manager and sole employee, assisted by the considerable voluntsry contribut￿n of her partner Ed Maddocks. Kate's workload was of course transformed by the pandemic, but fortunatety the trustees did not need lo consider furlough, due to eonlinuing Natjonal Lottery project finanee. Kale was able to carry out a substantial volume of work to enable the mill lo open lo visitors on a restn.cted basis in be￿een IcKkdowns, to prepare for future reopening when restricts'ons pemiil, and lo plan for the kyogramme of acbvitsts ￿Uired to be delivered before the NLHF projecl ends. Th• conseThfation project Following completion of the construction ph8se of repair and conservatK)n of our buildings. and opening the mill lo the public in the previous year. the Trust's main aclNty in furthering ts charr13b￿ obj'ects in 2020 should have been a year of consolidatson and improvement, enabling us to Use experience of our first season to improve our offer to visitors, an¢J to add rthv Corn￿nents fr(Mn our list ol project objectives. In event, the mill Could be opened only briefy before the flrst lo¢kd¢)wn and then for a longer period in the summer, ended by the second. and our plans for opening around Christmas were then curtailed by the third thkdown. That we were able to re-open at all was due to the manager's inttiative in Completing the appropriate risk assessments and devising a new visitor regime to compty wrth restrict￿$. invoth.ng an online booking system, the temporary relocatK)n of receplion into the exhibitK)n room, a one- way roule and removing or sealing off parts of the Interp￿tat￿ll display whith required touch. Some of these steps were covered by addIt￿n81 finance provided by NLHF, and we also tenefitted from the 5uspensitin of business rates and standard government grants lo businesses paid via CopeLqnd Borough Council.

ESKDALE MILL & HERITAGE TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Special events planned for the year had to be ￿￿￿Oned. bul wortt continued wilh our inleipretation and activrties consultants. Minerya Heritage of Lan￿ster, on Ihe production of revised promlional and educational materials. and the catakguing and future use of historical artefacts currentty in store. The services of our hard-working volunteers were sadty lost for most of the year, bul despite thbs some new volunteers joined us during the year and tremendous strides were made towards reclamation of the miller'$ garden. mainty due to Kate and Ed's efforts. The￿ was also some further progress with clearing brambles from the field behind Ihe cottage. ￿￿1￿ continued on the proposed development of our small shop. selling the guide-book and items of local interest As usual our projecl organisers. Shirley Muir As5Ctiales of Wigton, kept 8 careful eye on finance and the delivery of project objectives. At the very end of the year a mid-lemi review of the prciect. required by NLHF. was carried out by IAfjngspan Consu￿"ng of Keswick. reeognising the unforeseen thfficU￿eS caused by the virus but makirvj some helpful reccrnendatws. Covid restrictions caused travel problems for our millwrights. based in Dorset, but some snagging issues with the mill machinery were eventualty resofved by them, enabling our architect. Countryside Consultants of Alston, to sign off their contract wrth the assistance of our local consultsnt Mil￿right. Stuart Hobbs of Greenodd. The main building contractof's relum to address Klenlffied defects was also delayed. btrt most of these issues had been dealt with by the yearnd. Unfortunatety there was a worsening drfficulty wrth the cottage water healing system. which caused serious inconvenience to its C￿￿PanIS and their temporary removal lo actommodalj.on nearby whiLst repairs were caNied out. The trustees are gralefvl to Greg Poole of Select Cottages for making that w$sib￿. All defeels involving physi￿1 work al the prOpert￿S have now ten satisfactority reso ien opening was possible, cornments in our visrtors, book were again univetsally faVoUrab￿. The manager continued to update our website and to promote the Trust on social media. Disth"bulion of leafiets in local tourist accommodalK*n and at other leisure outlets had to be suspended. Our friends al the RaVeng1￿ and Eskdale Raifvoy. who nomially bring so many of our wsitors up the valley. unhappity had to dose for much of the year and even when trains were running. had to suspend the prev￿U$ year's joint tickeling arrar¥Jement. Visitor numbers during the year fdl to . February 121 March 20 ugust 218 epiember 365 etober 244 November 134 otal 1.102 Th• hydro4•neration proi•¢t Regrettably, the history of lethnul drfhculty wilh e￿¢tr￿lty generation by the modem waterwheel eXperien￿d in the previous year continued in 2020. After a trouble-free peri&J follcming the lnsts1lati￿ of a new gearbox in August 2019. a new and unexplained problem arose in Septemter 2020. when increased noise level and the precautionary need to proted the mathinery from possibk fvrther damage caused the system to be closed down. Covid restrictions then prevented our speciali51 volunteers and their professional support from being able to come onto the site to anatyse Ihe ￿￿Se and undertake the ne￿Sary repair. As reslrrlions were eased this has now been possible.. addiltonal sound insulation is bein9 added and it is hoped there is no major failure of the equipment requiring sub5tantbal additi.onal expenditure.

ESKDALE MILL & HERITAGE TRUST TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Despite these problems, in Ihe 58% of lotsl time available when the system has been in operation since restsrting in August 2019. il has generated 22,243 klAth up to ADriI 2021 and eamed an esbmated £6.191 for the Trust. Thanks lo the paI￿nce and experkn.se of trustee Sleve Hemm, we now have pemiission from the Environment Agency to extract suffiaent water from the lthillan Beck lo drive our three waterwheels. Plans for the future 2021 15 the last year of the Trust's £1 millicjn conservation prqect, funded by NLHF. Copelarbd ConTnunity Fund and other granl-giwn9 bodies. Unkss prevented by recurring circumstance$ outside our control, we musl satisfy NLHF that we have delivered all the outcome$ set by them back in 2017. before the final tranche of oui funding can be released. The amount retsined by them wnding satisfactory completion has he￿fullY been reduced from 10% to 3%. From 2022 the Trust musl operate wtthout subsidy. To manage that we must achieve challenging targets for vI￿10r numbers and ineome. and a sustained revenue from the sale ol ele￿ncIty into the Naltonal Grid. Whilst we remain confidenl consL8tent monitoring of our progress towards this aim has not been possible due to the effects of the pandemic. IAÈ have a 9￿81 deal of ground lo make up in 2021, assuming that sc¥nething like rKxmalty rebjms. Encouraging our existing volunteers and inueasing thwr number remains a pnority. in order to open the mill to visitors six days each week in accordance with the business plan. hope further lo expand Trust membership. A funding sub4roup ha5 been established to priontise areas for applutions for new finance and idenbfy prospective grant%iving b(¥j￿S. The manager has exciting plans for milling demonstratKJns using the lower millstones, now tuming for the first tsme in more than a ￿ntury. and development of and events in Ihe f￿d. Thefe ss much to be done in expanding woth with school& Flnanclal rovlow rhJring the year, we reeeived grants of £52.329 from the National Lottery Heritage Fund project, along with £11,334 from Copeland Borough Council, arKI £9,295 from Cumbria County Council. The funding from Copeland Borough Counal and Cumbria County Council was receNed as support in relat￿￿ to the Covid-19 pandemic. The Trustses are eX1￿mety grateful for this fvnding. Donations have been reeeived throughout the year. as part of the membership subsuipthx. or through dOn*t￿n$ of the general public. We remain gratefvl lo all our SUPFXJters, past and present. The Trust's ongoing liabilty for council tax in respect of the mill cottage was reduced folbowing reasses$m8nl by the Valuation Offic£ Agency. There was a small increase in business rates in respect of the mill buildings, discounted due lo our charitable status. Thanks lo Trust adviser David Blanden for his help with thi5 proce5S. The financial slalemenls to 31 December 2020 show a gain overall of £23,833 for the year. There was a surplus on the unrestricted fund of £17,419, and a surplus on the restricted fund 01 £6.414. The Trustees are pleased with this result. as the Trust begins lo make the transilKJn in to a sett sufficient organization. once the National Lottery Heritage Fund project ends. The challenge remains for the Trust to be self sufficient and generate enough In￿Me to support Ihe empk)yment of the mill manager. beyond the ￿$SatIon of the Naional Lottery Heritage Fund project. The Trust has recognised the need for a designated lund whth indudes the value of the mill buildings at cost, which $ils at £108,153. A further fixed asset reserve hos been created in the year, which is lo the value of fixed assets. meaning the aft￿)Unt shown in Un￿strIcted reserves are the free r￿r¥e$ to meet the ongoing ch8ri1able activities. The Trust has unreslricle(I funds of £26,767 availab￿ for activities in 2021. The Trust reserves policy is 24 months unrestrbcled expenditure, and the Irvstees accept that the eurrent kvels of reserves fall short of this tsrget. However, the Trustees are aware that the Trust musl build up rts free reserves lo ensu￿ and safeguard the mill manager's position and will take the necessary measures to increase the reserves. The Trustees will endeavor lo build up Ihe unfeSt￿ted reserves. de$prte the eurrenl economic conditsons as a result of the Covid-19 pandemic.

ESKDALE MILL AND HERITAGE TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2020 The trustees. report was approved by the Board ofTrustees. MrRJo Trustee nson

ESKDALE MILL AND HERITAGE TRUST INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF ESKDALE MILL AND HERrrAGE TRUST I report to the Trustees on my examination of the fi￿￿al $tements of Eskdale Mill and Heritsge Trust (the TNst) for the year ended 31 December 2020. Responsibiliti•s and ba$1$ of report As Ibe Twstees ol Ihe Trust {and also its th're¢tors fry the puwes of company law) you are responsible for the preparation of the financral StateTh￿ts n accordance vAth the requirements of the Companies Act 2006 (the 2Cth Act). Having salisfied mysew that Ihe financial stements of the Trust are not reguwed to be audrttd under Part 16 of the 2006 Ad and are eligible for independent examination. l Teport in respect of my examination of the TNst's financial statements camed out under section 145 of the Chariti'es Act 2011 {the 2011 Aetl. In carying out my examination I have dl the app￿ICable Oireclions gNen by the Charity Commission under section 1451Sllbl of the 2011 Act. Independent examinerfs statement I have ccfflpleted my examinats"on. I confirm that no matters have clxne to my attents'on in comection with the examinatK)n gimng me cause to believe that in any material ￿ped. accounting records %%tre not kept in respect of the Twsl as wuired by section 386 ofthe 2006 Act., or the finanual statements do not accord wilh those re¢ords." or the financial stalements do not comply the accounting requirement$ of section 396 of the 20C6 A other than any requirement that the accounts give a true and fair view which is not a matter Cons￿ered as part of an independent examination., or the financial Statements have not been prepared in accordance the methods and ￿nCipleS of the Statement of Recommended Practice for accounting and reporting by charibes applicable to charities eparing their a¢¢ount5 in a¢¢ordan¢e with Ihe Finanua Reporting Stsndard ap￿Icab￿ in Ihe UK Republic of Ireland {FRS 1021. I have no concems and have come across no other matters in connection with the examination to which attention Should be drawn in thi$ report in order to enable a proFer un¢lerstanding of the finanual stslemenls lo be reached. Tony Hindmoor BFP FCA Gibbons Chartered Accountants Carleton House Gray Street Workington Cumbria CA14 2LU Dated".

ESKDALE MILL & HERITAGE TRUST STATEMENT OF FINANCIAL AcnviTIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020 Curr•nt financlal yfjar Unrestricted Unr•strfcted Restricted funds fvnd8 fvnds genernl d•signattd 2020 2020 Total Totsl 2020 2020 2019 nd DonalM)ns and legacies Charitable activitiPS Inveslments Other inccme 24.007 4.328 52.329 76,336 4,328 447.911 13,161 5.051 5,051 1.371 Total income 33.388 52.329 85.717 462,444 Charitable activities 15.793 176 45.915 61.884 463,556 Net incomel{expenditur•l forthè yearl N•t mo¥•ment In funds 17.595 (1761 6.414 23.833 {1,112) Fund balances al 1 January 2020 9.172 108,680 2.976 120.828 121,940 Fund balan¢es at 31 DKember 2020 26,767 108.504 9,390 144,661 120.828 The statement of financial acliyities includes aW gains losses reeognised in the year. All income and expenthture deri¥E frorn ￿l"nuIng acbvities. The ststement of finarKial aclivilies also complies with the requwrents for an income and expenditure account under the Cornpanies Act 2c￿￿.

ESKDALE MILL & HERITAGE TRUST STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020 Prfor fin•n¢i•l year Unrestricted Unrestricted Restrlcted funds funds funds general designated 2019 2019 Total 2019 2019 com• and nd Donations and legacies Charitable activities Investsnents Other income ts from: 4,503 13.161 443,408 447.911 13,161 1.371 1,371 Total in¢om• 19,036 443,408 462,444 Charitable aclivibes 11.895 176 451,485 463.556 Gross transfers befvleen funds Net incomellexpenditure) for the yearl Net movement in funds 17031 703 6,438 527 (8,0771 {1.112) Fund balar￿e5 at 1 January 2019 2.734 108,153 11.053 121.940 Fund balancos at 31 De¢embor 2019 9,172 108.680 2,976 120.828 The statement of finanoal aclivTlies includes all gains and losses rwnised in the year. All ￿COrne and expendituie derive from continuwy activi￿5. The statement of financ￿1 actiwties also complies with the requirements for an income and expenditure account under the Companies Act 2006.

ESKDALE MILLAND HERITAGE TRUST BALANCE SHEET AS AT 31 DECEMBER 2020 2020 2019 FIX￿ assets T￿gIble assets Heritage assets 10 11 351 108.153 527 108.153 108.504 108.680 Curront a$$•ts Debtors Cash at bank and in hand 12 12.123 74,754 2,146 54,840 86.877 56.986 Cr•dltors: am¢)unts ￿rIng ono year 13 {50,720) {44.838) Nel current assets 36,157 12.148 Tot1 assets less currnnt Il•bities 144,661 120.828 Income fund$ Restricted hjnds Unrestri¢ted funds 14 9.390 135,271 2,976 117,852 144.661 120,828 The company is entitled to the exemplion from the audit rewrerrnt contained in sedion 477 of the Cownies Acl 2006, for the year ended 31 December 2020. The directors acknowledge their responsibilities for complying WTih the requIrerr￿lS of the Companks Act 20( ¥Mth respect lo accounts.rwj rewd$ and the prep￿￿ offinancial ststemenls. The members have not required the Company to obtain an audit of ils fin￿ra1 ststements for the year in question in accordance with se¢tK>n 476. These financial stslements have been p￿pared in ac¢tydance vAth the Provi￿On$ appluble to ¢ompanies subject to the smal companies regime. The financial statements re approved by the Twstees on ........... MrRJo Tn￿1•¥ nson Company Registration No. 5743618

ESKDALE MILLAND HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Accounong polkl•s Charlty Inforniatlon E$kd￿e Mill and Heritage Trust is a private company limited by guarantee in¢orporated In England and Wales. The registered office is Eskdale Mill. Boot. Holmrook. CumbrTra. CA19 1TG. 1.1 A¢¢ounting ¢onvenlion The finan¢ial stslements have been PrePa￿d in accordance with the Trust's go¥emirvJ document, the Companies Act 20C6 and "Accounts"ng and Reporting by Chanties." Statement of Recommended Practi¢e applicable to chatities preparing th￿r accounts in a¢cordan¢e wth the Finantyal Reptyt"ng Stsndard applicable in the UK ar￿ RepU￿"C of Ireland (FRS 102) {effective 1 January 2019}-. The Trust is a Public Benefit Entity as defined by FRS 102. The Trust has taken ad¥￿tage of the provishins in the SORP for charibes appI￿.ng FRS 102 Update Bullein I not lo prepafe a Statement of Cash Flowt. The financial statements are prepared in sterfing, vkni¢h is the fvnCti0n￿ ¢urrerw of the Tru$L m￿etrry amounts in these financ￿1 stslements are rouThJed to the nearest £. The finanaal statements have been prepared under historical ¢ost ¢onvenbon. mdified to include the revaluation of freehold properb'es and to indude investrnent properb.es and certain financial instruments al fair value. The prinapal ￿cOUnt￿j Foh"¢ies adopted are set out below. 12 Going ¢¢)n¢•m At the time of appro￿ng the ffinancial slatements, the Twstee$ have a reasonable expe¢lalion that the Trust has adequate resources to ￿rttinue in opefatsonal e￿stence for the foreseeable fijture. Thus the Trustees continue to adopt the going concem basis of a¢¢ounting in P￿paNn9 Ihe financial $tements. 1J Chafltable funds Unre$lri¢ted funds ¥e available for use at the discretion of the T￿￿teeS in furtherance of their charitable objeth'ves. Restricted funds are subject to specrfic condrtions by donors as to how they may be used. The pulposes and uses of the restrthd fvnds are set oul in the note5 to the ffinan￿aI statements. Endowment funds are subjed to specrfK condibons by d¢)nots that the ¢aprtal must be maintsmed by the Trust. 1.4 In¢¢)me Income 1$ re¢ognised the Trust is ￿PIlY entitled kn it after any performance COnd￿onS have been met. the amounts can be Thasured reliabty. and 1$ probable that in¢ome will be receNed. Cash donations are feL¥wised on receipt Cther donalions are re¢ognised C￿ the Tru$l has been nolrfied of the donation, unless perfoman¢e ¢onditions WUiTe deferral of the amount. Income tax recoverable in relation to donations received under Gift or deeds of ¢ovenant is re¢ognised al the time of the donation. Legacies are recogrrised on rt¢eipl or other4Mse if the Tnjyl has bèen notffd of an impendng diStributM￿, the amount 15 known. and receipt is ewed. If the amount 1$ known. the lew is treed as a contingent assel.

ESKDALE MILL & HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Accountlng pollcles IContiTruedl 1.5 Tangible fixed •$8•ts Tangible fixed assets are initialty measured at cost and $l￿uentty measured at cost or valuation, nel of depreciation and any impaimnt losses. Depreciat￿ is reco>Jnised so as to write off the cost or valuat)n of assets less their residual values over their useful lives on the followng bases.. Computers 25% strawJht line baw's The gain or loss arising on the disposal of an asset is determined as the dffteren￿ betr￿n the sale proceeds and Ihe carrying value of the assrf and is recognised n net incomellexFenditurel lor the year. 1.6 lfflpalrm•nt of fix￿ a88èts Al each reporting end date, the Tnjst reviews the carrying amounts of its tsngible assets lo determine vthelher there is any indication that those assets have suffered an impaimient loss. If any such indulion exists. the recoverable amount of the asset ts estimated in order to determine the extent of the Im￿lMIent loss (if any). 1.7 Cash and cash equivalents Cash and cash equivalenls include cash in hand. dewsils hekl * call wfth banks, olher short-temi liquid investments with original maturities of three M￿th$ or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilrties. 1.8 Flnanclal instruments The Trust has elected to apply the provisions of Section 11 'Bast Financial Instruments, and Secthon 12 'Other Financial Instrument5 Issues. of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Trusys bala￿e sheet when ts Twsl b￿OrneS party to the contractual provisK)ns of the instrument. Financial assets and liabilit*s are offseL with thé net amounts Fxesented in the financial stalanents. when there is a legally enforceab￿ right lo set off Ihe iecognised arnounts and there is an intention to sellle on a nel basis or to realise the asset and settle the liability simullaneousty. 8asic financial assets Basic financial a$sels, which include debtors and cash and bank balan￿. are inrtially meaSU￿d at transaction Price including transaction costs and are subsequenlly carried al amorts'sed cost us¢ng the effective Interest melhtrj unths the arrangement eonslitutes a financing transacb"on. Whe￿ the transaction is measured at the present value of the fvture receipts discounted al a markel rate of interest. Financial assets classrfied as receivable within ¢￿e year are nol amorti$8d. 10-

ESKDALE MILL & HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Accounting policies IC¢)ntinyfjd> Basic fin•n¢lal Ilabilities Basic financial liabililies, including credilors and bank loans are initially recognised at transaction price unless the arrangement ¢onslitutes a financing transaction, where the debt instrument iq measured al the present value of the future payments dtsenunled at a market rate of interest. Financd liabilib.es daSSrf￿d as payable within one year a￿ not amorttsed. Debt instruments are subsequenty carriwj al ar[th￿ed cosL using the effective interest rate ff￿th0d. Trade credilois are Obligat￿n$ to pay for goods or services that have ￿en acquired in the ordinary course of operations from Suppl￿fS. Amounts payable are classified as ojrrenl liabilities if payment is due within one year or less. If not, they a￿ p￿sefited as non4JJrrenl liabilrties. Trade creditors are reeojnised initially at transaction pr￿e and SUbseffj￿nty ffasured * amorknsed cost u%ng Ihe effective interest method. D•rncognilion of financial liabiliti•s Finanaal IK9bilitses are derecognised Tlknen Ihe Tntst's c¥Jntractual obl￿allOnS expire or are di8tharged or cancelled. 1.9 Employeo benefits The cost of any unused holiday entitlement is recowised in the peri¢)d in which the employee's seN1￿$ Termination benefits are recognised immedrately a5 an exFense when the Trust is demonstrably committed to terminate the wnploymenl of an eM￿9Yee or lo prov¥Je termination benefits. 1.10 Retlremene benerts Payments to defined contllbution retire￿ent benefft Schern￿ are charged as an expense as th8y fall due. 1.11 Leases Rentals payable under cperaling leases. induding any lease ￿centiveS received. are Charged as an expense on a $lraighl line basis over the te￿ of the relevanl lease_ CTltkal a¢¢ountlng e8tlmatss and Judgements In the application of the Trust's accounb.ng policies. the Trustees are required lo make judgements. estimates and assumpb'on5 about the carrying amount of assets and liabilit￿5 that are not readity apparent from other sources. The eskn"mates and ass(oated assumptions are based on hislortcal experience and other fact(Ks that are considered to be relevant. Aciual resulis may dfftr from these estimates. The estimates and undedying asSuMpt￿n$ are revwed on an ongoing basis. Revisions to &counting ests"males are recognised in the Fer￿ in which the esb"rnate is revised where the revision affects only that period, or in the period of the revision and fvture per￿S where the revision affects bolh current and future periods. 11

ESKDALE MILL & HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Donatlons and logacles Unrestrlcted Restrktod funds fund$ general 2020 Total unrestr￿ted Re$lricted funds funds 9eneral 2019 Total 2020 X120 2019 2019 Donations and grfts Grants receivable 23,524 483 23.524 52.812 4.503 4.503 443,408 52,329 443,408 24.007 52.329 76.336 4.503 443,408 447,911 Charltable acUvhl68 Unrnstrlctedunrestrlcted funds fvnds g•neral general 2020 2019 Admissions 4.328 13,161 Investments Unrestrieted Unrestricted funds funds general general 2020 2019 Interest receivable Other income Unre8trlct•d Unrestricted funds funds general gèrteral 2020 2019 Hydro-eleclruty inccm 5,051 1.371 12-

ESKDALE MILL & HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS ICI)14nNUED} FOR THE YEAR ENDED 31 DECEAIBER 2020 Yotsl 19 2020 2019 2019 2019 Staff costs Depre¢￿￿0￿ ￿ iffwrntnt eat&Lv Rate5 12.878 12.878 176 123T 8m3 8103 176 176 176 1.Z37 452 420 3.024 899 1.981 1.106 4.Z37 3.62B 3.024 246 Geneid expthises Prinling. PLBtage & Statso Adyertwg Rwirs & maint0rk￿ Watsryvheel ￿￿tE Legal leeB Bank charye5 Telep￿￿ suNants 1.951 1.071 4.037 1.679 5.391 1.679 5.391 5.182 370 Z57 132.816 51.e65 $70 132.816 51.665 S70 ill 15.793 4S.915 176 61.684 11095 X6.045 178 218.118 SupportC(éts 245.440 245.440 15.793 45.915 176 61.884 11,895 451.485 178 463.5 AnJlys1¥ bythJnd 15.793 15.7WJ 11.895

ESKDALE MILL & HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS ICOIfflNUEDI FOR THE YEAR ENDED 31 DECEMBER 2Q20 l¢ontlnuDd) 176 176 176 451.485 45.915 45.915 451,485 15.793 45.915 176 61.684 11,895 451.485 176 483.S56 14-

ESKDALE MILL & HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Support costs 2020 Unrestrid•d Restrfcted 2019 Subscriptions arKI memberships Volunteer expenses 8LFilding fees 408 3,194 241.838 408 3.194 241,838 245.440 245.440 Analysed betsveen Charitable activities 245.440 245.440 Employè88 The average monthly numter of employees during the yearwas". 2020 Number 2019 Number Employment Costs 2020 2019 Wages and salaries Other pension costs 12.878 137 12,878 8,803 The Trust operates a defined rAntr*ulion pernion scheme. No employee eamed £60,000 per annum or ffwe12019 - employees falling in Ihe band £60.000 10 £70.0001. The averag8 number of full tsme equwlent empbyees was 1 (2019- 11. Trustees reeENed no expenses ￿riThj the year. other than the reimbursement of items tK)ughl on behair of the Trust. No Trustee director r￿eNed any remuneration in respect of their se￿￿e$ as a Trustee of the charity. The charity is extremely grateful to the 16 volunteers who assisted throughout the year wrth practical tasks in the buildws arKI grounds. welc4yniThJ visrtors and explaining the worknng of the mill. 15-

ESKDALE MILL & HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 10 Tanglble fixed assets Compul• Cost At 1 January 2020 703 At 31 Deeemter 2020 703 Dopreciation and impalrni•nt At 1 January 2020 Depreciation charged in the year 176 176 At 31 December 2020 352 Carrying amount At 31 Decemter 2020 351 At 310ecember 2019 527 11 H•rltage assets At 1 January 2020 and al 31 D•comber 2020 108,153 12 D•btor¥ 2020 2019 Amounts falling due within one year. Other debtors Prepayments and acuued income 11,793 330 1.832 314 12,123 2.146 16-

ESKDALE MILL & HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 13 Cr•dltors: amounts falllng due wlthln ono yoar 2020 2019 Other loans Other taxation and social secunty Other creditors Accruals and deferred income 32.583 129 12.330 5.678 30,965 476 12,437 960 50.720 44,838 14 Reslrlctod funds The income funds of the chwity indude restricted funds cornwising the fomowng unexFended balances of donations and ￿ants held on trust for Sp￿th¢ purposes: ov•m•nl In funds Movement In funds Incomlnq Resou￿85 Balar￿• at Incomlng Resources 8alance ai nsource5 •xpend8dl January 2020 res<>urces eypended 31 December Balance at 1 January 2019 2020 Nat￿nal Lottery Heritsge Fund 11.053 443.408 (451,485) 2.976 52,329 (45,915) 9,390 The Nalional Lottery Heritage Fund project is for the Trust to prowde conservalw and improved PreSenta￿.0n of the mill buildings and machinery, and estsblishment of the mill's day lo day manageffent, in order to attract mcKe wsitors and ensu￿ its long4emi Sustslna￿.1ty. 15 Unrestricted fund* - designat•d These are unrestricted funds whth are material to th8 Trusfs activities made up as folk)ws'. B•l•no 1 January 2019 Trnnsf•rs B•l¥nc• 4¢ Resourcgs Balance ai 1 January 2020 •xpend•d 31 O¢¢ember 2020 Heritage tsu￿￿1ng ￿Serve Fixed asset reserve 108,153 108,153 527 108,153 351 (176) 703 1176) 108.153 (1761 703 108,680 1176) 108.504 17-

ESKDALE MILL & HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 16 DKignat•d lund$ The income bjnds of the chanty indude the folbwing deS￿￿nated fun(Ss whith have been set a5Kle out of unrestricted funds by the trustees for specthc purposes.. The Designated FuThJ represents the HenlageAsset al its historical cost price. The Fixed Asset FuThJ represents the nel book value of assets on hand at the year end, 31 December 2020. 18-

ESKDALE MILL & HERITAGE TRUST NOTES TO THE FINANCIAL STATEME14TS {copillNUEDI FOR THE YEAR ENDED 31 DECEII8ER 2020 17 Ar¥ty¥i¥ of Th•t ftsr futhts 2019 2Q2D 2D19 2019 2019 Fund balances at 31 Decornber 2020are pmsentsd ty. 8SS Hefitage assets cLYrentassth￿o￿￿ts&I 351 351 108.153 36.151 527 108.153 108.153 26.767 9.172 2.976 2&767 lo8￿￿ 144.661 9.1n 108.680 2.976 120.628 19-

ESKDALE MILL & HERITAGE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 18 Relaled party Iran$a¢tions There were no disclos*)le related paty transxtK)ns during Ihe year (2019 - none).