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2021-12-31-accounts

HOLY ISLAND OF LINDISFARNE COMMUNITY DEVELOPMENT TRUST

(A company limited by guarantee)

COMPANY NUMBER 06776737 CHARITY NUMBER 1128208

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2021

Holy Island of Lindisfarne Community Development Trust

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

CONTENTS

Page
Legal and administrative information 2
Trustees Report 3 - 6
Independent Examiners Report 7
Statement of Financial Activities 8
Balance Sheet 9
Statement of cash flow 10
Notes to the Financial Statements 11 – 20

1

Holy Island of Lindisfarne Community Development Trust

LEGAL AND ADMINISTRATIVE INFORMATION

Name of Charity Holy Island of Lindisfarne Community Development Trust Incorporation The organisation was originally established as a charity, Holy Island of Lindisfarne Community Development Trust number 1058246, on 25 September 1996. A new company limited by guarantee, of the same name, was incorporated on 18 December 2008 and registered as a charity on 24 February 2009. All funds were transferred from the old charity to the new charitable company on 1 June 2009. Registered Charity No 1128208 Registered Company No 06776737 Directors and Trustees R Patterson (Chairman) J A Bevan R Coombes (appointed 15 November 2021) J Crossman P T Douglas R L T Douglas Cllr C Hardy (appointed 1 November 2021) Dr R Hills (appointed 30 July 2021) Rev. Canon Dr S A Hills R C Messenger A Mundy G R Porter R J Simpson H Stiansen Cllr. R J D Watkin Secretary J Riley Registered Office Lindisfarne Heritage Centre Marygate Holy Island Berwick-upon-Tweed TD15 2SJ Independent Examiner Lucy Smyth 9 Briarwood Drive, Newcastle, NE3 5DA Bankers Triodos Bank N.V. Brunel House, 11 The Promenade, Bristol BS8 3NN Solicitors T. C. Smith 9 Church Street, Berwick upon Tweed TD15 1EF

2

Holy Island of Lindisfarne Community Development Trust

TRUSTEES REPORT FOR THE YEAR ENDING 31 DECEMBER 2021

Introduction

The Trustees are pleased to present their annual directors’ report and financial statements for the year ending 31 December 2021 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

Objects and Activities

The Holy Island of Lindisfarne Community Development Trust is a registered charity whose main aims are to promote and improve the social and economic well-being of the inhabitants of the island of Lindisfarne in the County of Northumberland in as many ways which are charitable by law, including:-

‘for the support or promotion of any charitable purpose for the relief of poverty, the advancement of education (including training for employment or work), the advancement of religion or any other charitable purpose for the benefit of the community in the area of the Island of Lindisfarne’.

The Trust works closely with the Holy Island Partnership, Northumberland County Council and Holy Island Parish Council to help in achieving these aims. It also works with stakeholders such as Natural England, the Area of Outstanding Natural Beauty, English Heritage and the National Trust – all of whom have a presence on the island.

The trustees’ policy in achieving its objectives is:

  1. Securing funding, and managing, long-term let social housing for the benefit of residents. The Trust manages 11 homes on the island.

  2. Improve facilities for the use of residents and visitors of Holy Island. The Trust owns and operates the Lindisfarne Centre, which includes a permanent display of Island Heritage, the former Lifeboat House which has been converted to a museum and archive, and the Harbour used by island fishermen. Also, the Trust operates the former Coastguard Lookout Tower as an observation and environmental education facility and Window on Wild Lindisfarne, a high quality bird-hide and environmental education facility on the Rocket Field, adjacent to the harbour.

  3. Sponsor and support projects that ensure the ongoing well-being and viability of the community.

The Trust is the host organisation for a new community based initiative called Holy Island 2050.

3

Holy Island of Lindisfarne Community Development Trust

Volunteers

The volunteer executive committee of the Company/Trust perform both the function of Directors and Trustees who are responsible for the strategic direction and accountability of the organisation. They are also the set of volunteers who are responsible for the day to day management and administration of the Trust, its properties and its existing projects. They also lead on developing new projects by the use of steering groups, who are added to by one or two additional island residents and external advisors, as and when required.

Normally, the executive committee meet on a bi-monthly basis with one or two project steering groups meeting between Trust meetings. In addition, the Chairman is in almost daily contact with the Lindisfarne Centre staff. Meetings were not possible for much of the year because of the COVID-19 pandemic. No data has been recorded putting a time or monetary value on this volunteer input.

Achievements and Performance

Affordable Housing

The Trust continues to manage 11 homes and it rents them out at affordable levels to island residents in line with an agreed lettings policy. The tenants in the housing continue to contribute to the fabric of the community and its life – something they could not do without the affordable houses. The houses remained fully occupied through the year. In February 2010 the Trust entered into a housing management agreement with Berwick Borough Housing (Bernicia) who supply support and repair services for all the housing units owned by the Trust. The Trust continues to issue tenancy agreements and collect rents.

Lindisfarne Centre

The Centre was able to fully reopen after COVID-19 restrictions were lifted in spring 2021. The Centre enjoyed a very successful trading year and activities had largely returned to normal by the end of the year.

Harbour

The harbour was fully operational during the year, having been closed the previous year because of COVID-19 restrictions. Day-to-day management continued to be carried out by the harbourmaster.

Gospel Garden

The garden continued to be enjoyed by many visitors and residents during the year and the maintenance of the garden continues to be performed by volunteers. Some damage was caused by Storm Arwen in November 2021.

Lifeboat Museum

The Old Lifeboat House continued to operate as a small museum explaining the lifeboat heritage of the island.

Lookout and Rocket Field

The conversion of the former Coastguard Lookout Tower into an observation and information point and construction of a new build, high-quality bird-hide and environmental information point in the Rocket Field along Harbour Road – Window on Wild Lindisfarne – were completed in 2013.

Holy Island 2050 project

Since summer 2020 organisations on Holy Island have been working together on the Holy Island 2050 project. This is work to prepare a strategy and masterplan to be owned and led by the community but which will also require external involvement, including funding. The strategy will provide a framework to bring all the pieces in the jigsaw (e.g. planning, enterprise, heritage, visitor management) into a balanced plan. The work has been supported by Prince’s Fund for the Countryside, Community Foundation and donations from local residents.

4

Holy Island of Lindisfarne Community Development Trust

Governance, Structure and Management

The Holy Island of Lindisfarne Community Development Trust is constituted by Memorandum and Articles of Association adopted on 8 December 2008. It was incorporated as a private company limited by guarantee and not having a share capital on 18 December 2008. It was registered as a Charity in February 2009. In the event of the company being wound up, members are required to contribute an amount not exceeding £1.

Executive Committee and Organisational Structure

The affairs of the Company are conducted by the executive committee (company board). The executive committee of the Company is made up of unpaid volunteers. Since 17 September 2010, these consist of not less than 5 members and not more than 15 members being:-

All Directors shall retire from office together at the end of the AGM, but they may be re-elected, reappointed or co-opted.

The executive committee meets formally at least 6 times a year to agree policy and monitor performance and objectives.

The Company is keen to recruit general members. On 31 December 2021 general membership stood at 91 individuals (2020: 93 members).

Trustees Induction

The Company/Charity provides an induction process to new directors by presenting them with copies of important plans and documents and verbally informing them of the operations of the Trust.

Risk Review

The Trust has reviewed its Risk Assessment and addressed the risks contained. This will be continually reviewed and updated using a Risk Log. An independent consultant was engaged in autumn 2019 to advise Trustees on specific Health and Safety risks.

Related Parties

The Trust has a wholly owned subsidiary trading company, Lindisfarne Heritage Centre Limited (LHC Ltd). The share capital was transferred to the ownership of Holy Island of Lindisfarne Community Development Trust in 2011.

5

Holy Island of Lindisfarne Community Development Trust

The Lindisfarne Centre is a visitor and community centre situated on the Island of Holy Island in the U.K. LHC Ltd rents the centre and contents from the Trust and all of its profits are covenanted back to the Trust via Gift Aid. LHC Ltd operates a retail shop at the centre. The trustees of the charity appoint the directors of the subsidiary company.

The Trust has not prepared consolidated accounts which include its subsidiary, Lindisfarne Heritage Centre Limited, as the gross income of the group in the accounting period is less than the audit threshold under the Charities Act 2011.

Financial Review

Total income was £137,573 (2020: £91,045). A variety of government grants to support activity through the COVID-19 lockdowns was received during the year £24,336 (2020: £34,415). In addition £33,157 (2020: £nil) of grants and donations were received for the Holy Island 2050 project, for which the Trust is the accountable body. The main source of income through the year was property rentals of £52,920 (2020: £49,679).

Reserves Policy

The trustees’ reviewed the policy in autumn 2018. The main concern is to ensure that an adequate reserve fund is in place to meet expenditure on cyclical repairs to the affordable housing stock. The current cash and net assets set aside for affordable housing were £83,606 at the end of the financial year (2020: £81,003). In order to judge the appropriateness of the reserves, trustees engaged Bernicia to undertake a property condition review in November 2021. Trustees are therefore satisfied with the current level of reserves. The trustees estimated that annual operating costs of the Charity are approximately £40,000 and current cash and net asset reserves are £78,612 (2020: £38,649). Trustees are satisfied with the current level of reserves and are considering capital investments in its property portfolio with the surplus reserves.

Trustees Responsibilities

Charity law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of the affairs of the charity and of its financial activities for that year, together with its assets and liabilities at the end of the year, and adequately distinguish any material special trust or other restricted fund of the charity. In preparing those financial statements the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time, the financial position of the charity, and enable them to ensure that the financial statements comply with the Companies Act 2006, and the applicable Accounting Standards and Statements of Recommended Practice, and the regulations made under the Charities Act 2011. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report was approved by the Trustees on 28 February 2022 and signed on its behalf by

Richard Patterson Chairman

6

Holy Island of Lindisfame Communty Development Trust INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF HOLY ISLAND OF LINDISFARNE COMMUNITY DEVELOPMENT TRUST. I report on th8 ac(J)unts of The Trust for the year ending 31 December 2021, which are set out on pages 8 to 19. Raspecttve responsibilities of trustses and examiner The trustees, who are also the directors of Holy Island of Lindisf8m8 Community Devekjpment TnJst for the purposes of company law. are responsible for the preparatson of the accounts. The tnjstees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and thal an independent examination is needed. Having satisfied myself that th8 charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to.. (i) examine the accourbts under section 145 of the 2011 Act; (li) to follow the prO￿dureS laid down in the g8neral Directions given by th8 Charity Commission under section 145(51(b) of the 2011 Act: and {iii) to state whether particular matters have come to my attention. Basls of indepondent examlnerfs report My examination was rArried out in accordance with the general Directions given by the Charity Commission. An examination includes a r8view of the accounting r8cords kept by the charity and a comparison of the accounts pr8S8nt8d with those records. It also includes Gonsideralion of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether th8 accounts present a 'try￿ arHI fair view, and the report is limited to those matters sel out in the Statement below. Independent oxamlnorfs statement In connection with my examination, no matter has come to my attention.. (1) which gives me reasonable cause to believe that in any material respect the requir8m8nts: (i) to keep accounting records in a¢cordan¢e wtth section 386 of the Companies Act 2006,. and (ill to prepare accounts which accord with the axounting records, ¢omply with the accounting requirements of section 396 of the Companies Act 2006 and with the m8thods and principles of the Statement of Recommended Practice: Accountsng and Reporttng by Charities: have not been met.. or (2) lo which, in my opinion, attention should be drawn to enable a proper understanding of the arKounis to b8 reached. Lucy myth 9 Briarwood Drive, Gosforth, Newcastl8-upon-Tyne NE3 5DA 28 February 2022

Holy Island of Lindisfarne Community Development Trust

Holy Island of Lindisfarne Community Development Trust Statement of Financial Activities (including income and expenditure account) for year ending 31 December 2021

Note
Income:
Donations and legacies
3
Charitable activities
4
Income from trading
subsidiary
5
Investment income
6
Total income
Expenditure on:
Charitable activities
7
Total expenditure
Net income (expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Restricted
£
9,181
69,996
0
0
79,177
79,262
79,262
(85)
(5,446)
(5,531)
1,659,999
1,654,468		 Designated
£
2,017
17,004
18,251
0
37,272
7,945
7,945
29,327
(27,160)
2,167
83,193
85,360		 Unrestricted
£
585
19,306
0
1,233
21,124
21,438
21,438
(314)
32,606
32,292
81,869
**114,161 **		 Total
2021
£
11,783
106,306
18,251
1,233
137,573
108,645
108,645
28,928
0
28,928
1,825,061
1,853,989		 Total
2020
£
3,464
87,486
0
95
91,045


87,691
**87,691 **
3,354
0
3,354
1,821,707
**1,825,061 **

The statement of financial activities includes all gains and losses in the year. All income and expenditure derive from continuing activities.

8

Holy Island of Lindisfarne Community Development Trust

Holy Island of Lindisfarne Community Development Trust Balance Sheet as at 31 December 2021

Note
Fixed Assets
Tangible assets
14
Investments
15
Total fixed assets
Current Assets
Stocks
16
Debtors
17
Cash at bank and in hand
Total current assets
Liabilities
Creditors: amounts falling due within
one year
18
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after
more than one year
19
Net assets
Funds
21
Restricted funds
Designated funds
Unrestricted funds
Total charity funds		 2021
£
1,827,175
29,153
1,856,328
1,960
25,429
185,941
213,330
(31,403)
181,927
2,038,255
(184,266)
1,853,989
1,654,468
85,360
114,161
1,853,989		 2020
£
1,863,877
32,284
1,896,161
1,838
13,934
144,741
160,513
(31,564)
128,949
2,025,110
(200,049)
1,825,061
1,659,999
83,193
81,869
1,825,061

For the financial period ended 31 December 2021, the company was entitled to exemption from audit under section 477(1) of the Companies Act 2006; and no notice has been deposited under section 476(1) requesting an audit. The trustees acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with section 386 of the Act and preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the period and of its profit or loss for the financial period in accordance with the requirements of section 394 and which otherwise comply with the Companies Act 2006, so far as applicable to the company. The financial statements also comply with the Charities Act 2011, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

The notes at pages 11 to 19 form part of these accounts.

Approved by the Board on 28 February 2022 and signed on its behalf by:

......................................... R Patterson Chairman

9

Holy Island of Lindisfarne Community Development Trust

Holy Island of Lindisfarne Community Development Trust Statement of Cash Flows for year ending 31 December 2021

Note
Cash generated from operating activities
24
Cash flows from investing activities
Interest income
Loan to Lindisfarne Heritage Centre
Purchase of tangible fixed assets
Cash used in investing activities
Cash flows from financing activities
Repayment of bank loan
Cash used in financing activities
Increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Total cash and cash equivalents at the end of the year		 2021
£
65,477
1,233
3,131
(12,858)
(8,494)
(15,783)
(15,783)
41,200
144,741
185,941		 2020
£
58,640
95
(18,113)
(8,129)
(26,147)
(14,039)
(14,039)
18,454
126,287
144,741

10

Holy Island of Lindisfarne Community Development Trust

NOTES ON THE ACCOUNTS

1. Accounting Policies

The Company is registered in England and Wales (company number 06776737) and the registered office address is Lindisfarne Heritage Centre, Marygate, Holy Island, Berwick-upon-Tweed, Northumberland, TD15 2SJ. The accounts were approved on 28 February 2022. The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

1.1. Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Holy Island of Lindisfarne Community Development Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

1.2 Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ 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 and is not deferred.

1.3 Interest receivable

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 paid or payable by the Bank.

1.4 Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Trust’s work or for specific projects being undertaken by the Trust. The following restricted and designated funds are in operation:

Restricted Funds

The Housing Fund is made up of funds which are earmarked for social housing. As and when sufficient funds are built up, the trustees will seek to add to the stock of social housing. The revenue fund is built up to fund ongoing and future repairs to the social housing stock.

The Lookout and Rocket Fund is to develop interpretation facilities under a Higher Level Stewardship agreement from Natural England.

The Old Lifeboat House is to develop a museum and interpretation facility.

Holy Island 2050 is to support consultation with the community to develop a vision and strategy for Holy Island to 2050.

The Prince’s Countryside Fund is a grant for the Holy Island 2050 project.

11

Holy Island of Lindisfarne Community Development Trust

Designated Funds

The Lindisfarne Centre is the building which houses the visitors centre and its various exhibits as well as acting the administrative offices for the trust.

The Harbour Fund is to account for repairs and maintenance of the Harbour on Holy Island which was donated to the community.

The Lindisfarne Garden Fund is a community garden with disabled access to interpret the spiritual history of the island.

1.5 Expenditure and irrecoverable VAT

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

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

1.6 Tangible fixed assets

Fixed assets are capitalised, at cost where the purchase price exceeds £500.

Depreciation on fixed assets is provided at rates estimated to write off the cost or revalued amounts, less estimated residual value, of cash asset over its expected useful life as follows:

Freehold Land and Building Nil
Housing Fixtures and Fittings 10% straight line
Harbour & Lifeboat Land Nil/2% straight line
Harbour Fixtures and Fittings 20% straight line
Pier Improvements 20% straight line
Lindisfarne Centre 2.5% straight line
Garden 10% straight line
Fixtures and Fittings 20% reducing balance
Computers 50% straight line
Heritage and Visitor Buildings 4% straight line
Lookout Tower and Window Interpretation 20% straight line

It is the trust’s policy to revalue all capital projects to fair market value on completion and housing at Kyle Gardens and Tudor Flats was revalued in March 2009. Housing at Green Lane is included in the accounts at cost as building work was completed in 2010.

All assets are reviewed regularly for impairment, and written down to their recoverable value, where necessary.

Rentals payable under operating leases are charged against income on a straight line basis over the lease term. Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profit as incurred.

1.7 Stock

Stock is valued at the lower of cost and net realisable value.

1.8 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.9 Cash at bank and in hand

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.

12

Holy Island of Lindisfarne Community Development Trust

1.10 Creditors and provisions

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

1.11 Financial instruments

The trust only 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 their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.12 Management fees

A charge is transferred from Housing Funds to trust funds to cover administration of the Trusts housing stock. This is presently set at 10% of gross rental income.

1.13 Subsidiary activities

The trust has a wholly owned subsidiary trading company, Lindisfarne Heritage Centre Limited. The share capital is held by the development trust. Lindisfarne Heritage Centre Limited rent the resource centre from the trust and all of its profits are covenanted to the trust. Lindisfarne Centre is a visitor and community and development centre situated on the Island of Holy Island in the U.K.

The Trust has not prepared consolidated accounts which include its subsidiary, Lindisfarne Heritage Centre Limited, because the consolidated income of the group was less than £500,000.

A summary of the Lindisfarne Heritage Centre Limited’s results can be found at note 5.

2. Legal status of the Trust

The Trust is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

3. Income from donations and legacies

Gifts 2021
£
11,783
11,783		 2020
£
3,464
3,464

The income from donations and legacies was £11,783 (2020: £3,464) of which £585 was unrestricted (2020: £10), £2,017 was designated (2020: £1,367) and £9,181 was restricted (2020: £2,087).

The Trust benefits greatly from the involvement and enthusiastic support of its volunteers, details of which are given in our annual report. In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the accounts.

13

Holy Island of Lindisfarne Community Development Trust

4. Income from charitable activities

Property rental
Government grants
Other grants
Service charges		 2021
£
52,920
24,336
26,780
2,270
106,306		 2020
£
49,679
34,415
-
3,392
87,486

5. Income from other trading activities

The wholly owned trading subsidiary Lindisfarne Heritage Centre Ltd is incorporated in the United Kingdom (company number 03883799) and pays all of its profits to the charity under the gift aid scheme. LHC Ltd operates the Lindisfarne Heritage Centre carried on at the Trust premises. A summary of the trading results is shown below.

Turnover
Cost of sales
Gross profit
Administrative expenses
Other operating income
Operating profit
Interest receivable
Profit for the year
Covenanted payment to HILCDT
Retained by subsidiary
The assets and liabilities of the subsidiary were:
Current assets
Current liabilities
Total net assets
Aggregate share capital and reserves		 2021
£
64,303
(28,790)
35,513
(32,333)
23,313
26,493
-
26,493
(18,251)
8,242
29,152
29,152
-
-		 2020
£
31,160
(21,215)
9,945
(32,851)
14,662
(8,244)
2
(8,242)
-
(8,242)
38,521
(46,763)
(8,242)
(8,242)

6. Investment income

All of the Charity’s investment income of £1,233 (2020: £95) arises from money held in interest bearing deposit accounts.

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Holy Island of Lindisfarne Community Development Trust

7. Analysis of expenditure on charitable activities

Insurance
Depreciation
Property
maintenance
Professional fees
Office costs
Rents and rates
Utilities
Bank loan interest
Oil purchases
Support costs
Governance		 Housing
£
2,008
8,587
-
-
-
-
-
7,195
2,112
4,396
533
24,831		 Heritage
Buildings

£
1,618
35,208
2,459
-
-
170
720
-
-
4,395
534
45,104		 Harbour
£
685
5,765
1,000
1,052
-
-
100
-
-
4,395
533
13,530		 Holy
Island
2050
Total
2021
£
£
-
4,311
-
49,560
-
3,459
25,100
26,152
80
80
-
170
-
820
-
7,195
-
2,112
-
13,186
-
1,600
25,180 108,645		 Total
2020
£
6,976
47,836
1,185
3,073
-
-
926
7,683
2,538
15,874
1,600
87,691

Expenditure on charitable activities was £108,645 (2020: £87,691) of which £21,438 was unrestricted (2020: £24,109), £7,945 was designated (2020: £10,732) and £79,262 was restricted (2020: £52,850).

8. Analysis of governance and support costs

The Trust initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs together with the governance costs are apportioned equally between the three key charitable activities undertaken (see note 7) in the year.

Financial management support
Bank charges
Other charges
Annual accounts		 General
support

£
11,074
70
2,042
-
13,186		 Governance
function
£
-
-
-
1,600
1,600		 Total
Basis of
apportionment
£
11,074
Equal
70
Equal
2,042
Equal
1,600
Governance
14,786

9. Net income/(expenditure) for the year

This is stated after charging:
Depreciation
Bank interest
Accountants fees		 2021
£
49,560
7,195
1,600
58,355		 2020
£
47,836
7,683
1,600
57,119

15

Holy Island of Lindisfarne Community Development Trust

10. Analysis of staff costs and trustee remuneration and expenses

No trustees (2020: nil) were reimbursed travel costs and other expenses incurred on Trust business (2020: nil). One trustee was paid an honorarium to perform the duties of harbourmaster for the Trust; this was a payment of £1,052 (2020: £621).

No staff members were employed during the year (2020: nil).

11. Related party transactions

During the year the trust was involved in transactions with its wholly owned subsidiary, Lindisfarne Heritage Centre Limited.

The Trust receives rent from its subsidiary in respect of the Centre. The yearly rent is £3,000 plus value added tax thereon or the annual operating profit of the subsidiary derived from their occupation of the premises plus value added tax thereon whichever is the lower (2020: £3,000). The Trust paid £600 (2020: £600) to the Centre as a management charge.

At the year end the Trust was due £18,504 from the Heritage Centre (2020: £nil).

The Trust also provides the Heritage Centre with an interest free loan of £29,151 (2020: £32,282), to provide adequate working capital for the business.

The Trust’s trading subsidiary Lindisfarne Heritage Centre Ltd pays Lindisfarne Links, run by trustee G. Porter, for website promotional services of £165 (2020: £165).

12. Government Grants

A total of £24,336 (2020: £34,415) from government grants was received during the year.

13. Corporation Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

16

Holy Island of Lindisfarne Community Development Trust

14. Tangible fixed assets

Cost
At 1 January 2021
Additions
As at 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
As at 31 December 2021
Net book values
At 1 January 2021
At 31 December 2021		 Land and
buildings

£
1,533,197
-

1,533,197
89,185
12,700

101,885
1,444,012
1,431,312		 Leasehold
property
£
593,333
-
593,333
208,813
23,733
232,546
384,520
**360,787 **		 Plant and
machinery
£
72,230
-
72,230
72,230
-
72,230
-
-		 Fixtures
and
fittings
£
275,945
12,858
288,803
240,600
13,127
253,727
35,345
35,076		 Total
£
2,474,705
12,858
2,487,563
610,828
49,560
660,388
1,863,877
1,827,175

Kyle Gardens and Tudor Flats, two of the company’s investment properties were revalued by Tony Ives FRICS on 23 July 2009. The independent RICS revaluation on the basis of assumptions as to rents, security of tenure and capitalisation of income the values determined for 1-5 Kyle Gardens was £290,000 and 1 and 2 Tudor Flats was £215,000. Green Lane is currently valued at cost. The trustees confirm that these values continue to reflect current market value. In March 2009 a valuation of the assets was undertaken in support of their use as security to support a Triodos mortgage application. The valuations were carried out on the basis that there would be limited open market value on the property given its unmarketability and restricted rent and usage. In the trustees’ opinion recoverable value of the assets is fairly stated in the financial statements. All fixed assets are held for the direct furtherance of the charity’s objectives.

15. Investments

The trust has a wholly owned subsidiary trading company, Lindisfarne Heritage Centre Limited. The share capital is held by Holy Island of Lindisfarne Community Development Trust, which holds two £1 ordinary shares. Lindisfarne Heritage Centre Limited will rent the resource centre from the trust and all of its profits are to be covenanted to the trust. The company commenced trading in August 2000. The Trust also provides the Heritage Centre with an interest free loan of £29,151 (2020: £32,282), to provide adequate working capital for the business. The activities and results of this company are summarised in note 5.

16. Stock

2021 2020
£ £
Oil 1,960 1,838

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Holy Island of Lindisfarne Community Development Trust

7. Debtors
Trade debtors
Prepayments
Other debtors
Amounts due from subsidiary undertaking		 1,960
2021
£
765
5,768
392
18,504
25,429		 1,838
2020
£
663
4,390
8,881
-
13,934

17. Debtors

18. Creditors: amounts falling due within one year

Bank loan
Trade creditors
Accruals		 2021
£
13,547
15,203
2,653
31,403		 2020
£
11,996
16,648
2,920
31,564

19. Creditors: amounts falling due after more than one year

Secured bank loan (falling due in less than 5 years)
Secured bank loan (falling due in more than 5 years)		 2021
£
59,098
125,168
184,266		 2020
£
52,330
147,719
200,049

There is a legal charge over land and property owned by the Trust at Kyle Gardens, Tudor Flats and the Lindisfarne Centre, and a fixed and floating charge over all other assets as security for the bank loans. The aggregate amount of secured liabilities is £197,813 (2020: £212,045). The loan is for a period of 25 years from February 2008. Interest on the loan is base rate linked and is currently charged at 3.5% per annum.

20. Contingent liabilities

A contingent liability exists in respect of the property, formerly known as the Castle Hotel, and which the charity now owns. If the charity were to sell the property, the £75,000 grant received towards its purchase from the Tudor Trust would become repayable.

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Holy Island of Lindisfarne Community Development Trust

21. Analysis of movements of funds

Restricted Funds
Housing
Lifeboat House
Lookout and Rocket
Holy Island 2050
The Prince’s Countryside Fund
Harbour Capital
Designated Funds
Lindisfarne Centre
Harbour
Garden
Unrestricted funds
HILCDT
Total charitable funds		 Balance
1 Jan
2021
£
983,020
66,971
395,825
-
-
214,183
1,659,999
45,000
34,680
3,513
83,193
81,869
1,825,061		 Incoming
resources

£
43,216
-
2,805
24,377
8,780
-
79,178
29,251
6,360
1,661
37,272
21,124
137,574		 Resources
expended
£
(17,790)
(5,699)
(25,729)
(16,400)
(8,780)
(4,865)
(79,263)
(3,966)
(3,738)
(241)
(7,945)
(21,438)
(108,646)		 Transfers
£
(4,320)
874
(2,000)
-
-
-
(5,446)
(27,160)
-
-
(27,160)
32,606
-		 Balance
31 Dec
2021
£
1,004,126
62,146
370,901
7,977
-
209,318
1,654,468
43,125
37,302
4,933
85,360
114,161
1,853,989

A transfer of £4,320 between Housing Funds and Unrestricted Funds is a management fee to cover overhead costs in managing the affordable housing portfolio; this has been agreed at 10% of gross income per annum. Transfers from other Restricted and Designated Funds to Unrestricted Funds covered overhead costs and building repairs and renewals for 2021.

22. Analysis of consolidated net assets between funds

Tangible fixed assets
Cash at bank and in hand
Other net assets (liabilities)
Creditors of more than one year
Total		 Unrestricted
funds

£
35,549
94,468
(15,856)
-
114,161		 Designated
funds

£
70,194
17,166
(2,000)
-
85,360		 Restricted
funds
£
1,750,585
101,696
(13,547)
(184,266)
**1,654,468 **		 Total
£
1,856,328
213,330
(31,403)
(184,266)
1,853,989

19

Holy Island of Lindisfarne Community Development Trust

23. Financial instruments

Financial instruments measured at amortised cost comprise the loan financing provided by Triodos Bank to the Trust.

Bank to the Trust.
Loan payable falling due within 1 year
Loan payable falling due in more than 1 year but less than 5 years
Loan payable falling due after 5 years		 2021
£
13,547
59,098
125,168
197,813		 2020
£
11,996
52,330
147,719
212,045

The loan financing is in the form of a secured loan with a variable interest rate. The market risk facing the Trust is that it is expected that interest rates will rise.

24. Reconciliation of net movement in funds to net cash flow from operating activities

Net movement in funds
Add back depreciation charge
Deduct interest income shown in investing activities
Increase in stock
Decrease (increase) in debtors
Increase (decrease) in creditors
Net cash generated by operating activities		 2021
£
28,928
49,560
(1,233)
(122)
(11,495)
(161)
65,477		 2020
£
3,354
47,836
(95)
-
3,808
3,737
58,640

20