2021-12-31-accounts

Heron Corn Mill (Beetham) Limited CHARITY NO.. 1131677 COMPANY NO: 06784856 HERON CORN MILL (BEETHAM) LIMITED A COMPANY LIMITED BY GUARANTEE DIRECTORS, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Page 1

Heron Corn Mill (Beetham) Limited Contents Page No. Trustees Report 3-10 Independent Examiner's Report Statement of Financial A¢livilies 12 Balance Sheet 13 Cash Flow 14 Accounting Policies and Notes 15-25 Page 2

Heron Corn Mill (Beetham) Limited ort of thè Trustees for the ear ènded 31 De¢amber 2021 The TTUStees present their report of the charity for the year endod 31 DeceTnber 2021 which is also prepared lo meet the requirements for a directors, report and accounts for Companies Act purposes. The trustees have adopted the provisions of the Ststement of Recommended Practice ISORPI "Accounting and Reporting by Charitles. IFRS 1021 in preparing the annual report and financlal statements of the charity. The financial statements have been prepared in accordance with the accounting policies set out in notes lo the accounts and corllply wlth the charills goveming docurnenl, thè Charities Act 2011 and Accounting and Reporting by Charities.. Statement of Recomrnended Practice applicable lo charities preparing their accounts in accord8nce with tha Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019. Chalr's Report As Chair ofthe Heron Com Mill (Beetham) Ltd l am able lo report an unusually outstanding year in what has been extremely difficult with the continued effects of the COVID-19 pandemlc. We were however able to offer a restricted in-house programme of events and activities with the majority of the community groups meeting fa¢6 to face in the barn Ireslriclad in number). A big succe8s of the year was Ihal we were able to hold our celebratory event BIEDUN, which should have been our 800 year anniversary of milling on site. This finally took pl8¢e in Seplembar 2021, and was a big hil with the local communrty who attended. Our Patron, BBC 2's Ruth Goodman was also in attendanc8 and gave a talk on medieval food and milling. 11 was decKJed that after such an eventful 2 years with adapting programmes of work, that we should concentrate on rebuilding our community interface, and so the programmlng for future years would have 8 very particular focus on social integration, and community bonding. The Creative Projects Manager was able lo secure funding from The Expat Foundation in the form of a 3 year legacy, which would enable all the different projects under the umbrella of elderly activity to continue on a monthly basis. This has been wonderful and very welcorlle lo have confirmed. The actual legacy would not come until 2022, as the particulars aro ¢urrently with HMRC. We finished the year in a good position, with all our community groups well served and looking forward to getting back lo normal in 2022. In closing. I would like lo thank the staff and volunteers, trusts and foundations and a faw stalwart volunteers, without whom we would not be able to offer our facilities and resources to the wider mmunity. Roger Bingham Chair Page 3

Heron Corn Mill (Beetham) Limited ort of the Trustees for the ear ènded 31 Dècémber 2021 ontinued Our Purpose and Activities The purposes of the Charity are.. 81 To restow, preseNe, and upkeep the Heron Corn Mill to its origin81 form as a fully working water powered corn mill on a sile first used for a mill in the 13th century- as a working museum open to the public and for the general benefit of the cornmunity, and for the educational benefit of students, researchers and others, and any other charitable purpos&s lending lo encourage interest in the history and industry of the a￿a. b} To advance the education of the public in the conseNation, protection, improvement, and mutual ¢o-dopendency of the physical and natural envlronment by demonstrating and promoting the use of renewable energy technology p8rticularfy, bul not exclusively, using hydropower. cl In furtherance of the above objeots. bul not otherwise, the power to arrange lectures, exhibitions, shows, prolecls and events for the benefit of the public, 2nd lo print, publish, and make available to the public by sale or ()therwise of literature, reproductions, photographs and the like. The vision that shapes our annual activities remains the suslainabilily and appreciation of the working heritage h&re al Heron Corn Mill. We have a general aim to contribute to the quality of life and knowledge sharing within our cornmunities and visiting public. In shaping our objectives for the year and planning our actNities we continue to refer lo the main themes of the heritage sile, which creates a rich and divérse programme for all sectors of the community and visiting public. We aim to give our visitors and sile users a good experience and affordable events and activitifrs, and we have done a lot of repair and Maintenan￿ in 202110 6n8ble a good and safe op&ning lo the public and lo¢al community in 2022. The Trustees confirm that they have refeThed to the general guidance on public benefits issued by the Charity Commission when reviewing and planning the ¢harily's aims and objectives. The strategies we employed throughout 2021 were.. Upkeep of the mill, maintenance and repair, and accessible interpretive resources, including addition of PPI around the site for public use. Offered creative and educational activities for a broad range of pèople, in particular the elderfy, with Crafternoons, Bread of Heron. Grain Chain and the new Powsowdi8 and brought back the ¢hlldren's youth group to sile. Develop our ever-expanding youth group a¢livilies to cover themes of engineering, science and technology and lo test out online delivery which has been suc¢essful but will return on a fa￿-to-faCe basis in 2022 Page 4

Heron Corn Mill (Beetham) Limited Re ort of th8 Trustees for the ear ended 31 Dacomber2021 continued Review our offer of good educational programmes lo primary schools, Collages, university groups and specific interest groups who might visit in future years. We are using the skills of young artists to help develop new ideas for the education work, particularly around eco sustainable systems and blodiversily. Putting these activities into action we have the followng main areas of aclivily.. Schools- We tie into the national initiallve such as British scien￿ Week, National Mills Weekend, Museums at Night and Heritage Open Days - this can help with funding and certainly helps with promollon and free promotional materials. Mlll Hoppers Youth Group- now split to 2 age groups as nLJmbers have risen slgnificantly. There are currently 100 young people as members. Our youno people continue to learn through the main subje¢ts of engineering, science and technology. At teenage level they are invited lo loin 808, 8 teenage group where they are given more creative freedom, and rllentored towards becoming volunteers. Archive- creating artists OPPDrtunities lo engage with our expansive archive and interpret the results into public perfomiances or events through the research. We are looking lo revive in the future, in sorNe way, the North West Mills Group to which 8 lol of archive material is attached. Craftemoons- craft activities for the elderly, these are expanding and ovèr 26 eldorly people now attend once a month. We have begun a n$w project with the elderly to offer table based ¢rafts for the most vulnar8ble and those with dementia. It Is hoped to gxpand this lo other crafts in 2022, such as bread baking. Milling demonslralions- a monthly event for the public lo engage wth our milling days will begin again post COVID-19, for the public to btstler understand the value of industrial heritsge, water power and the making of fine stoneground flour. Historically these are well-allended, somelim8s local history groups will book to come to a milling demonstration, and numbers can be quite high. Bread of Heron - This began as one group, we now have 4 groups,18d by enthusiastic volunteer bakers. all who have spent many wetsks being taught how to rnake really good bread. This projtscl is exceptional in that it is becoming self-suslaining. Using our own flour. and re¢eiving a small donation from each baker taking part, it is Immensely popular with a long waiting list for places. Bread of Heron has now been running successfully since 2015. Bread of Heron now lakes pla￿ safely in the barn four times a month, with limited access to the hut due to health and safely reslriclions. The Grain Chain - Now in ils second yéar, this initiative seeks lo develop a baking group for those with mental health issues and learning drfficulties, in need of a Iherapeulic aclivily. We have formed a partnership with Growing Well Isizerghl and The Lighthouse, based in Kendal, fomerfy South Lakeland MIND. Page 5

Heron Corn Mill (Beetham) Limited ort of the Trustees for the 8arand•d 31 DeGember 2021 continu&d The Events Programme We create a twice y&ady programme, spThng and summer, autumn and winter. We create and promote a variety of events, activities and experiences for all sectors, ages, abilities and cultures within it. The themes are always broadly based around flour production, br&ad rllaking, agricultural, rtjral life, engineering, technology, hydropower. We engage mainly with local artists and educators lo run the events. Whilst our monthly e-newsleller continLJes and is very popular, offering detailed information to the public, w8 are now programming for future events And actlvlty back in the bam. Achlevèments and Performance We have been vory fortunate with grant-funding during 2021, and the addition of an automatic scre&n- cleaner to site has increased our electricity generating income to a new level. This has been managed by Stuart Hobbs our miller and Robert Dickinson, who keop the èquipment moving and in good order. COVID.19 (Coronavlrusl Revlew Following the announcement on 23 March 2020 by the Prime Minister that the COVID-19 pandemic had arrived, the Charity has had to cope with various lock-downs, and various wles about social- distancing, and social gatherings. COVID-19 was a factor throughout 2021, and this is how the Charity addressed the problem.. 11 Effect on Charity's activities in 2021 We were able to reinstate some of our workshops albeit with greatly reduced numbers. We were able to offer distribution of food and resources to the elderly las in 20201 for a limited tirne. By the middle of the year we were able to resume faCe-tO-fa￿ sessions under strict COVID-19 protocols which meant that the number of participants had lo be scaled back in line with those protocols. However, in Seplernber we held an opening festival which heralded the return of public visitors lo the site. 2) Ablllty to Fund-raise We were able to ¢onlinue fund-raising without too much difflcuky throughout 2021, and secured a legacy fund for future work with the elderly. We were successful in securing additiona1 assisiance through the HLF Culture Recovery Fund, which enabled the sile to be maintained and made safe for the retum of tha public. 31 Effect on staff and events for thé coming year We began planning a return to a full programme of events and activities during 2021 beginning with the September opening. We aim to be back in fvll operation by Spring 2022. Page 6

Heron Corn Mill (Beetham) Limited Re ort of Ihé Trustees for the e8r èndèd 31 December 2021 Contlnued 41 Effact on future alms and actlvlties COVID-19 has shown us different ways of working, some of which we may conlinug lo use such as dislribulion methods of tsking resources to peopl& who are no longer able lo come to the mill. We are plannino more work with the elderly, as much ¥s the legacy funding will allow, as this particular sector of society has been badly affected by the pandemic and their needs musl be addressed. 51 Financlal Eff9¢1 The COVID-19 pandemic has had a positive impact on the finan¢&s of the Charity for the second year running. Additional ernergency funding was secured lo help with existing costs, including a sum of £32.500 to re-inflate unrestrioled reserves. This, together wth another good year on turbine income lup some £16,000 on 2020 to £107,000) trnabled the Charity to repay the smaller of the two tranches of loan income of some £33,000. Th8 Charills financial position at the end of the year records ils highest ever unreslricled reserves, even after p8yng off some of the loan. The high energy prices towards the end of the year helped the Charity lo the good turbine income r8suII. If these high prices continue into the new year the Charity is looking to repay the balance of ils loan in Q12022. Financial Revlew For the year to 31st Dec 2021 the charity recorded unrestricted income of £146k {prior year £115KI. Unrestricted expenditurè amounted to £gOk (pr yr £95kl, leaving a surplus over expenditure of £57k Iprior year £20kl. Adding back depreciation improves the surplus lo £89k compared to the comparable surplus of £46k in 2020. This improvement of £43k comes from an improved turbine income figure. bul mostly from grants received due to COVID-19 pandemic enabling some items of unrestricted expenditure to be offset by these grants (hence the lower overall unrestricted expenditure figure). Cash was an inflow of £11 k in the year Iprior year £47kl. a reduction of £36k compared lo 2020, but this is after repaying £33k off the loan. RaseNes Pollcy Unrestricted reseNes as at 31 De￿rnber 2021 a￿ showing a surplus before adjustments for the first time ever. The figure for 2021 is a surplus of £29k cOMpa￿d lo a deficit of £93k in 2020. This is an improvement of £122k, and comes from 3 main SOur￿S.. Nel income for the year of £58k', add back depreciation of £32k'. and add in the unrestricted grant received of £33k to help with resetrves. Having now reached, and maintained Ifor one year at least), the policy of having at least £15k in cash reseNes to cover at least three months essenti81 operating costs, the next slep was to pay off the balance of the loan as quickly as possible and this was achieved in Q1 of 2022. Our next step is to now build up the reserve figure lo help pay for a direct ¢onne¢lion to the grid in case anything should happen to the paper mill across tho river. Page 7

Heron Corn Mill (Beetham) Limited Re ort of the Trust•8s for the ear ended 31 December 2021 continued Reference and administratlve dètalls Company number.. 06784856 Charity number.. 1131677 Trustees- Roger Bingham Robert Dickinson Paul Lusled {Resigned June 20211 Robert Parkinson Sharon Peill Tristan Donalo {Appoinled Jan 20211 Treasur$r.' Denise Noble Secret8rylManager'. Audrey Sleeley Registered Office.. Mill Lane Beelham Milnlhorpe Cumbria LA7 7PQ Bankers.. CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Alderrnore Bank PLC Apex Plaza Forbury Road Reading RG1 1AX Independent Examiner.. Colin Johnson FCCA MHA Moore and Smalley Kendal House Murley Moss Business Village Oxenholme Road Kendal LA9 7RL Page 8

Heron Corn Mill (Beetham) Limited Re ort of thé Trustees for the earended 31 December2021 ¢ontlnuÈd Structure, Governance and Managom•nt Constltutlon Heron Corn Mill IBeetham} Limited is a company limited by guarantee and a registered charity governed by its Memorandum & Articles of Associalion.11 was incorporated on 7 January 2009. Its oble¢tiv8s were amended by a resolution dated 23 De¢8mber 2011. Organlsation The charity is organised and run by the Trustees. There musl always be al least one senior manager of Pella Medlcal Papers Limited Ipreviously known as 8illerudKorsnas Be8lh8m Limitadl acting as a Trustee. In the yoar encled 31 December 2021 this Trustee was Sharon Peill. Day to day administration is the rèsponsibility of the Charity Manager who reports to the Trustees. Selection and Indu¢tlon of new Trustees In selecting individuals for appointment as Trustees, the Trustees lake into conslderation the skills, knowledge and experiènce needed for the effective administration and future progression of the Charity. The Trustees make available to each new Trustee, a copy of the governing document and any amendments thereto. and a copy of the char￿￿$ lalesl report and ststement of accounts. Rlsk Management The Trustees have identrfied the major risks lo which the charity is expos￿. Those risks have been r&viewed and systems established lo mitigate them. In kegping under review the Trust's activities. Trustees are mindful of the potential for any changes lo the piesenl rango of risks and will adjust systems whan and where required. Page 9

Heron Corn Mill (Beetham) Limited Rè ort of th* Trustee5 for the ear ended 31 December 2021 continuèd statement of Trustees. res onslbllltlès Accounting and reporting responsibilities The trustees Iwho are also directors of Heron Com Mill {Btselhaml Limited for the purposes of company lawl are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom A￿o￿ntIng Standards (United Kingdom Generally Accepted Accounting Practi¢el. Company law requires the trustees lo prepare financial statements for each financial year, which give a truo and fair view of th& slate of affairs of the charitable company and of the in¢oming resources and application of reSoU￿s, including the income and expenditure, of the charilablts company for the year. In preparing these financial statements, the trustees are required to.. select suitable ac¢ounling policies and then apply therm consistently.. observe the methods and principles in the Charities SORP 2019 IFRS 1021., make judgements and eslimales that are reasonable and prLJdent', stale whether applicable Accounting Standards have been followed. subject lo any material departures disclosed and explained in the financial slatemenls., prepare the financial statements on the going concern basis unless il is inappropriate to presume that the ¢haritsble company will continue in operation. The trustees are responsible for keeping adeqLJate accounting records that disclose wth reasonable ac¢ura¢y at any time the financial position of the charitable company and enable them lo ensure that the financial slalemenls comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonabl& steps for the prevention and detection of fraud and other irregularities. Approved by the Trustees on ftILp•76? and signed on their behalf by R K Bingham (Chairman) or TTUStee Page 10

Heron Corn Mill (Beetham) Limited Inde endent Examinerfs Re ort to tha Members of Heron Corn Mlll Beatham Limited I report lo the charity Iruslees on my examination of the accounts of the Company for the year ended 31 D8cemb2r 2021 which are set out on pages 12 10 25. Responslbllltles and basis of report As the charity Irusteos of the company land also its diraclors for the purposes of company lawl you are responsible for the preparation of the accounts in accordence with the requirements of the Companies Act 2006 {'the 2006 Acl'l. Having satisfied myself that the accounts of the ¢ompany are not required lo b& audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company's accounts as carried out under section 145 of the Charities Act 20111'lhe 2011 Act'l. In carrwng out my examination I have followed the Directions given by the Charity Commission under section 14515llbl of the 2011 Act. Independent examiner's statèment sin￿ the company's gross income ex￿eded £250,000 your examiner mu51 be a rnember of a body listed in section 145 of the 2011 Act. I confirm that l am qualtfied lo undertake the examination because l am a member of Association of Chartered Certified Accountants which is one of the listed bodies. I have completed my examination. I confim that no matters have come lo my attention in conneclion with the examination giving me cause to believe that in any material respect.. accounting records were not kept in respect ofthe company as required by section 386 of the 2006 Acl-, or the accounts do not accord with those records., or the accounts do not comply with the awounting requirements of se¢tion 396 of the 2006 Act other than any ￿qu1￿ment that the accounts give a 'true and fair view, which is not a matter considered as part of an independent examination., or the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by Charities lapplicable lo charities preparing their accounts in ac¢ordan¢e with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 10211. I have no con¢erns and have come across no other mallers in connection wth the examin81ion lo which attentlon should b¢ drawn in this report in order lo enable a proper understanding of th8 accounts lo be reached Colln Johnson FCCA For and on behalf of MHA Moore and Smallay Chartered A¢countants Kendal House Murfey Moss Buslnass Village Kendal Cumbria LA9 7RL Dale . 1410812022 Page11

Heron Corn Mill (Beetham) Limited statE[￿ryt of Finandal Actlvitles1Sncludlng Incorn• and EKpéndlturè At¢0￿￿tI fortheyear ondod 31 Decernbw 2021 UMMstrtctÈd Fuhd$ IGÈnÈr4 2Q21 Rg$irkted T<>tal Funds Total Fund$ IProjerts} 21 2021 2020 INCOME ENDOW￿ENTs FROM.. 41 alons L8gacias Charltabl8 Ac1￿￿8S.. (>ants 5.5 26.335 5.585 68.teo 5,931 91063 61,82S ¢r Tredlng 3.132 $21 73,177 4.104 112.015 412 HBritsge Loupry Fund Sale5 Turblne InBoT 73,171 1,863 107,174 1.863 107,174 1.634 1.770 342 TOTAL 135,6Sg 281.357 ExpeNOttURP ON.. R*$iTry FundE". C05tol GDatsSdd I.￿7 I,￿2 302 302 78 2Q.99B Cther Co3b Wages 10 11.050 20.65è 13.356 22.971 Ar￿SL￿rof@sS1￿Thal F Ethlbilon Costs Tramal & Subs5sténc8 Volunts8r Wag8s 4.3fj9 20,643 378 25,012 378 37,10S 172 243 13.159 25.140 13.197 47.867 21727 47.093 27.377 .189 Heat & Ught canc8s 786 1.048 180 524 120 361 1,363 14,171 1.034 27,314 P￿Pairs,￿￿nte￿¢e Ar￿ a#enl 12,3721 16,543 1,629 18 762 29,052 (jh￿rA￿￿nIstraICm'. Aud5l8 Ac¢wn￿cY F¢$$ 1.457 2,780 2,¥55 CatwlnolR¢freshmn 240 31.834 3.2S9 7.198 650 5.520 31.834 2&102 1.702 &848 1.353 Equlpwi Pur¢ha Inwrèn¢¢ IT Wdwer¢lS¢knr¢ Fe8$ P¢si, P&klng, Tthpl Stationery. CoTrsmtlES. C(wl SJb5GripOon5 3.153 2.746 409 5,042 428 4.452 478 419 1.230 335 815 1.732 210 939 248 129 1831 e37 7W 4.02Y Wages 10 7.526 41828 18.342 63,16B SO.￿2 LO￿ Interest 7.313 7.313 TOTAL 87.918 NET INCOMEIIEXPENDttUREI BEFORE TRA148FER8 rrEnsfers A(ktHn Charge8 NET MOVEMENTW FUFIDS 57.810 75.446 24,3BI 175,4461 513 150.5521 82.1DY 132.743 82.191 Funds Balsnces blF FUNDS BALANCES em 1.178,314 1.311 ￿7 Y56,419 105,867 1.416.924 1,3¥,Y23 Page 12

Heron Corn Mill (Beetham) Limited Balan¢0 Sheet 88 at 31 t)ecentsr 2021 Note 2021 2020 Flxed Assets TawiN8 Asse Heritage ks8 12 13 410.373 872,030 399,261 872,030 1,282.403 1,271,291 Current A55et5 Debtors & Prepayments C8sh at Bank and in Hand 14 48,450 1&5,587 &5.599 174,730 234.037 210,329 Cradltors Amounts falling du8 ￿thIn one year 15 35,923 44,576 Nat Current Assets 198,114 165,753 Total Assets less currènt Ilabllltles 1,480,517 1,437.044 Long Term L￿bilitIeS Charity B8nk Loan 16 63,593 102.311 Net Assets 1,416.924 1,334,738 FurKIs Lknrastricled..General Restricted..ProiBcts 1.311.057 105,867 1,178,314 156,419 1,416,924 1.334,733 For the year 31 DèLèn8r 2(r21 the company ￿nb￿d to 8xthrpUon frcth audit undw section 477 of th8 Companles Act 2006 relating to cotrpani8s. The tnprthrs ha wl requir￿ the crfflpany to obtain an aL&Jil in accLKdwv vith s8cbon 476 of Ihe Conwanles Act 2006. Thè dirÉctors 8cknwledge their reSpDn￿bl11ty for conylyiru vith the requiretn8Tts of the ActW4th resp&ctto accounting r￿ordS and for thè weparabon of aCC￿nts These accounts ha￿ been prepar￿ In accordance wilh Ihe pr￿1￿0￿5 Èpplicable to conyanies subl￿tIO Ihe small compani@s r8glTh. Appr(￿d by th8 Trustees on. . and ￿gned thwr behay by TrusleelDI￿ < eingh￿ll as Trv5tee & Charman Corwany Reglstratlon Numb8r'. 06784856 Page 13

Heron Corn Mill (Beetham) Limited Cash Flow Statement as at 31 December 2021 Nota 2021 2020 Cash generated In Operating Activities 94,884 119,808 Cash frorn Investing A¢tiMties'. Pr(￿eedS from the sale of p￿ll1 and equipnEnt Purchases of plant and equiprrEnl Cash provided by (used Inl Investlng ActNitles 133 42,946 42,813 64,267 64,267 Cash from Financing Actiwties.. Repayrrtnl of borrowng 16 141,2141 18,8061 Cash used in Financing Activi11os 41,214 8,806 Increase Idecreasel in cash in kne year Cash al the beginning ol Ihe year 10,857 174,730 46,735 127,995 Total Cash at the end ofth8 185,587 174,730 Page 14

Heron Corn Mill (Beetham) Limited Notes to the Flnanclal Statements for the year ended 31 December 2021 l. Accounting Policies 1.1 Company Information Heron Corn Mill (Beethaml Limited is a oorrpany linmted by guaranteg inc(xporatwJ in Enoknd and Wales. Th8 registered office is Mll Lane , Beelham, M'lnthorp8. CurT)ria, L47 7PQ. 1.1.a Basls of preparation The Charity conslitules a pU￿1C benefit entity as defined by FRS 102. The financial stat8m8nts ha￿ been prepared In accordance wlh Accounting and Reporbng by Charil'es.. Statement of Reeomnknded Practicg applicable to charitias preparing their accounts In accordance wth the Financial Rewrling Standard applicab18 ill the UK and Republic of IreLand issued in Cttobsr 2019, the Financial Reporting Standard applicable In the Unitsd Kingdom and Republi¢ of Ir8L4nd IFRS 1021, Ihe Chariti85 Act 2011, the Companies Act %)06 and UK Generalty Accepted Accounting Practice. Heron Corn Mill IBeethaml Litniled tr£ets the definition of a public entity under FRS 102. Assets and liabillts.es are Initial￿ ret￿nised at historical cost or transaction Un￿&$ othemse stated in Ihg reknnt accounting pdicy notelsl. The finawial st8tem&nts are prepared in Ster￿.nQ, Is the functsonal curr8ncy ol the corrpany. Monetary arrKAJnts in these financial statements are round￿ b the nearest £. 1.2 Fund accounting General funds are unrestricted funds are available for us8 at Ihe discretion of Trusteès In furtherance of the general objecti￿$ of the charity. Restricted funds are funds thi¢h ar8 to be used in accordance wth specific restrictions irrposed by doNors or which haw b88n raised by Ihe ¢harity for particular purposes. Th8 C05t of raI￿ng and ad￿￿niSter1r￿ such funds are charged against the specific fund. 1.3 Going concern At the tinE of approung Ihe financial stst8rYEnts, Ihe directors hav8 considered the period of 12 followng and have reasonable exwct8tions that the Charity has adequate resources to continue In operational eyistence for the foreseeable future. This is backed up by a 2 year forec85l coring tre year8 2022 and 2023 in SUPFM)rt of a funding application to the Foyle FoL)ndati(￿. This, tCKJether ￿4th th8 fact that Ihe Charity has p)sitive unrestricted reserves 8ft8r repaying part of its ban, gike5 Ihe Directors confidence in Continuing tr) adopt the going concern basis ol aC￿untirvj in preparing these rinancial ststernents. Page 15

Heron Corn Mill (Beetham) Limited Noles to the Flnancial Statement$ Icontlnuedl for the year ended 31 December 2021 1.4 Incomlng resources All incoming resources are included in the Stat&nEnt of Financial Actimties Mtten the charity is legally entided to the Inco￿￿, it 15 probable it will be reCe]￿d and the amount can be measur8d reliabty. The follo￿￿7ng spe¢ifi¢ policles are appli8d lo par￿Cular categori8s of income.. lal Voluntary Incom8 is re¢eived by way ol grants {￿knether capital or revenue). donations and gifts and is included full in the State￿£￿t of Flnancial Actiwties. Grants, ￿are entitJenEnl is not conditional on the deli￿rY of a specific performance by the ¢harity, are recognised ￿en it is prOba￿e the incorre wll be receiwl. Ibl Donated professional seriices and donated facilities are rec(NJnised as income then th8 charity has control oker the item, any condits'ons associated wth the donated item ha* been met, the receipt of eeonomic b8nefil from the use by th8 charity of the item Is probable and that economic benefit can be rne85ur8d reliably. In accordance ￿1th the Charlties SORP IFRS 1021, the gen8ral wlunteer tin￿ of the K>lunteers is nol recognised. (h receipt, donated professional sernqces and donated facilities are rec¢yJnised on th8 basis ol the value of th8 gift to the charity ￿1c￿ is the amunl the charity Mould been willing to pay to obtaln seruces or facilities of equivalent econO￿lC benefit on the op8n rnarket,. a corresponding arrv)unt is then recognised in eypenditure In the p8ri(Kl of receipt. Icl In￿tr￿nt incom& is included receivable. {dl If income is recei¥Ed but Ihe related performance does not take place until a futher accounting p8riod the income wll be deferred unts'l the criteria for incom8 recognition ar6 1.5 Resources expendod E>pendilure is rec￿nised once there is a legal or Constructi￿ obligation to rThgk8 a paynknt to a third paty, it is rKobable that s8ltleryEnt wil be r8quir8d and the arnount of the obligation Can be ffleasur8d reliabTrg. E>penditure is classified under the folomryng actimty headings.. Costs of raising funds cornpris8 th8 costs of commercial trading includirKJ costs of goods, marketing and staff costs. Expenditure on charitab18 actiifjlies includes the costs of performances, ethibits.ons and other educational aclwties urKJertaken to further the purp)ses of the charity and Iheir associated 5UPPOrt costs and costs associated wth Ihe turbine. (Xh8r e¥)enditure represents those items not faling into any other heading. Irrecov8rab18 VAT is charged as a cost against the aCti￿ty for %thich th8 expendi￿re was incurred. Where costs cannot be directy attriblrted lo parbcuLor headings th8y have been albcatEd on 8 basis consistent ￿￿th use of the resources. 1.6 Investment Incom8 In%estrr8nt income represents interest eamed on the invgstrn8nt of terrporary surplus funds ￿aCed on deposiL and 15 inclLjd￿1 in tre accounts vthen r8ceivable. Page 16

Heron Corn Mill (Beetham) Limited Notes to the Financial Statements leontlnuedl for the yoar ènd•d 31 De¢èn*)er 2021 1.7 Tanglble fixed assets and depreclatlon All fi>yJ assets are originalty rècorded at cost. Depreciauon Is calculated so as to yrit8 off the cost of an asset, less its estirnat8d residual wakje. ow the useful econo￿¢ life of Ihat asset as folkm.. Barn and Other equipr￿nt Computsr gqviprnent Ftydro turbir 10%- 20/0 Straight lir 33% straight line 4% straight line 1.8 Hèrltage Assets The iffprO￿Ments lo H8Ton Com Mill. Beetham are ststed at cost. Significant funds ha¥e been e>pend8d in restoring and maintaining Heron C￿n Mil 8nd in ￿&wOf this the Trustees do not beliew any promsion for depreciation or iffpairrrent is required. 1.9 Operating leases Rentals applicable to operating ￿8S£S are chargeil to Ihe Ststement of Financial Actimles Over the period of the ￿ase on a str8ight line basis. 1.10 Debtors and credltors re¢eivab181 payable wlthln one year Debtors and ¢r8ditors wth no stated interest rate and rec8iWdbl& or payab￿ wthin one year are re¢ord9d at transaction price. Any Ioss8s arising from itryairrnenl are re¢o3nis8d in wendlture. 1.11 Cash at bank and In hand Cash al bank and cash in hand inckndes cash and short lem highty liquid in￿lments wth a short n￿tUrIty of thr88 rnonths or ths from the date of acquisition or opening of the deFOSit or simil8r 8ccount 1.12 Financral Instruments The charity onty has financial assets ond financial Iiabilllles of a kind that qualify as basic financlal instrunEnts. Basic financial instrurnents are inibally recognised at transaction ￿lue and subsequ8nty [￿aSured attheir seldemenl value ￿4th the weption ol bank loans ￿1¢h are subsequenly n￿aSured at an￿rtis8d cost Using the effecliKE interest rnethod. Page 17

Heron Corn Mill (Beetham) Limited Notes to the Flnanclal Statements Icontinuedl for the year ended 31 December 2021 2. Donatlons and Legacies 2021 2020 0(￿￿tiOnS from ii5itor5 585 931 5,000 Donation from BK Beetham Ltd 5.585 5,931 All donations in 2021 are unrestricted inconk, but in 2020 £35 is restricted. 3. Grants Recelved Grants there recei￿ frorn th8 bodies., 2021 2020 PovEr To Charye SLDC Garfield Weston 27,440 16,335 fjo,000 5,000 5.000 3,000 3,000 3,IK)O 2,4(K) 2,000 2,000 2,000 1.200 1,125 1,000 1,IK)O 55,000 11,334 5,000 9,963 Cumbria CotnrrKJnity Foundation The Van Nesle F￿ndatIOn D'fyEy Carte CharitsN8 Trust RHU Foundation Schroder Charity Trust The Areti Charitable Trust LCVS 2,000 Francis Winham Fort F￿JMda￿tsn Elspelh J Thorry)son nry Herd Trust Sabina SutherLind CharltalAe Trust PersirrThons ￿k)r￿S Amold Clark Comrnunity Fund Haroid & Alice Bridges The GF charit5b￿ Tr(￿t Croppers Blakemre kdfidd Charitable Trust Sharples Fund The Dowager Peel Teseo188gs of Hèfpl E>pat Foundation Concerbna Charitaile 500 1.166 100 88,160 92,063 The inconE from grants reCeI￿d tr)t811ed £88,160 in 202112020.. £92,063) of ￿1¢￿ £61.825 wes restricted 12020.. £77,729) and £26,335 was unrestricted12020.' £14,334). Page 18

Heron Corn Mill (Beetham) Limited Ii,. 8-&2 f!Iiiiij_s11. Page 19

Heron Corn Mill (Beetham) Limited ¢4 151 ui Page 20

Heron Corn Mill (Beetham) Limited Notes to the FSnanclal Statement$ {¢ontinuedl for th8 year 8nded 31 Dacern￿r 2021 2021 2020 5. Heritage Lottery Fund 1220-202018C¥) Years of Milling) Nabonal Lottery COVID-19 Fund H8rit8g8 Ernergency Fund Culture Recokery Fund 2.625 2,625 22,350 19.000 68.040 70,552 73,177 112015 6. Investl￿nt Incon 2021 2020 Interest Receivab 38 7. Net incom8118xpènditural for the year 2021 2020 Thls Is stated after charging= Depr8ciation IrKlependent Exa￿￿rnatiOn 31,834 2,760 26.102 2,680 8. Expendlture on charltable actwities Ewenditure on charitsble actiMtie5 in 2021 was £104.32812020.' £123,819) of thich £78.580 was rgstri¢18d 12020.. £102,119) and £25,748 was unrestricted12020'. £21,7001. 9. Trustees Robert Dickinson, a trustee, li￿ closest lo the Mill, gets paid for keeping th8 lurbin8 going out%iJe of norrrol office hours. He quite regularly cleans Ihe turbine in the earfy hours ol the mrningl He in￿l¢eS the Com Mill for Ihis s8nAC8 thich 2021 anv)unted to £3,00012020 £4,560}. M)ne of the other Trustees recei￿d any reT￿neration durfng the year, nor ¥*re any of the Trust8es reiwbursed for any eynses12020- knel. 10. Wages There ￿re 2 empbyees under contract by the charity during the year12020- 21. No 8rnp￿Yee VAS paid rTK)re than £60,0(K) in the year. 2021 2020 Breakdoun of costs.. Gross Wages paid NIC contributions Penson contributions 71,343 3,408 1,766 76,517 70,261 3,283 1,735 75,279 Page 21

Heron Corn Mill (Beetham) Limited Notes to the Financlal Statements {contlnuedl for the year &nded 31 December 2021 11. Related Party Transactlons The followng Trust6e8 ar& aLs0 manag8rs of P8lta Madical Papers Ltd Iformrly kn￿ as BillerudKorsn8S Beetham Limited).. Sharon Peill & Robert Dickinson Peh8 Medical Papers Lirrited owns th8 Sit& of Heron Corn Mill IBeethaml Limited arKI does not charge any rent to the charity. The lease dated 23 May 1974 being for 99 year5 snd a peppercom rent payable. In the year Heron Corn Mill IBeethaml Lirnited inM)ic8d Peha Medical Paters Limited £40,583 in respgct of electricity generated by the Turbine12020.. £22,347). Included in other debtors at Ihe year end is £12,278 du8 from P&lt8 M8dical P8P8rs Linit8d12020.' £1,250). 12. Tanglble Ftxed Assets Hydro Turbine Other Conwuter EquipTll8nt Equipm8nt Total Cost At 1 January 2021 Addikn'ons in year Disposals and wite-offs at Cost At 31 D8C8rr)8r 2021 602,751 40,611 58,888 2,335 367 60,856 6,569 688,208 42,946 3671 710787 643,362 6,569 Accumulated Depreclatlon At 1 January 2021 Charged lor the year Disposa& and ￿lte-off$ At 31 December 2021 220,519 26.793 41,859 5,041 387 46,533 6,569 268,947 31,834 367 300,414 247,312 6,$69 N8t Book Valu8 At 31 December 2021 391050 14,323 410,373 At 31 D8C8rr)8r 2020 382,232 17,029 399,261 Page 22

Heron Corn Mill (Beetham) Limited Notes to th8 Financlal Statements l¢ontinuedl for the year ended 31 December 2021 13. Herrtage Assets Leasehold Property Improvements Cost At 1 January and 31 DeCe￿r 2021 872,030 Net Book Valua At 31 December 2021 Cl) 13 Jun8 2013 8 Lègal Charge over the ￿aS&hOld property kno￿ as Heron Corn slgned in faM)ur ol the Trustees of the Heritage Lottery Fund as part of the conditions that had to be m&t before Ihe grant of £939,100 could corymence lo be spent Th8 grant has the titFe of 'Waterpow8r Connection.. 14. Debtors and Pr8payments falllng due wilhln one yèar 2021 2020 HM Re￿￿8 & Customs- VAT PrepayrrEnts and accrued in¢om8 Other Debtors 32 34,317 1.250 35,599 36,086 12,364 48,450 1& Credltors: amounts falllng due wlthln one year 2021 2020 HM Revenue & custott￿- PAYE & NIC + VAT Charity 88nk IoBn (Xher Creditors-Pension Trade creditors Accrua& and deferred 4,388 6,925 147 21.512 2,951 35,923 9,421 145 26.975 6,103 44,576 Page 23

Heron Corn Mill (Beetham) Limited Notes to the Financial Statements {conllnuedl for the year ended 31 Dèeember 2021 16. Cr8ditors fallrng due after one year 2021 2020 Charity Bank Loan 63.593 102.311 Analysls of loans Wholly repayable wthin fiv8 y8ars By InstalNEnts ￿O[lY repayab￿ wthin five years By in5talrn8nts 70,518 111,732 70,518 111,732 Included in current liabifiti88 6.925 9,421 63,593 102,311 The Trust has a ￿ty year k>an agreern8nt ¥ith the Charity Bank eypiring Tr&)v8rrt>8r 2029. The ban bears interest at 7tr/0 and is secured by a fixed legal charge oKEr the leasehold properly kno as Heron Corn Mill and a chattel frthg8ge NF￿ KapL2n TurtNne and associated ￿UIpment. Th8r8 is also a debenture ow Ihe entire urKlertaknng. The loan was made in 2 tranche5 and l tranche was ful￿ repaid in Oecernber 2021 from surplus unresthcled funds. The balance of the loan be r8paid in Q12022 if suWus unrestricted funds ran19in at knst at year end le￿Is. 17. Summary of Net Nssets by fund Re5trict8d Unrestricted Funds Funds Total (Note 41 Fund babnces 3131 Decembèr 2021 are repr8s8nt8d by.. H8ritag8 Assets Tangible Fixed Assets Nel Current AssetsllLiabiliti&sl 872,030 410,373 92,247 1.374,650 872,030 410,373 198,114 1.480,517 105,867 105,867 Long Term ￿a￿lItIeS 163,5931 163.5931 105.867 1,311,057 1,416,924 Page 24

Heron Corn Mill (Beetham) Limited Notes to the Flnancial Statemknts {contlnu•dl for the yèar ended 31 D8cenkner 2021 17. Summary of Net Ass&ts by fvnd {continuedl Restricted Unrestricted Funds Fund5 Total {Note 41 Fund balances at 31 Decen￿eT 2020 are represented by.. Heritage Assets Tangible Fil￿ Assets Nel Current Assetsllknatxlib"&s1 872,030 399.261 872,030 399.261 165,753 1,437,(H4 156,419 156,41g 1.280,625 Long Tem) Liabilities 1102.3111 1102,3111 156,419 1.178,314 1,334,733 18. Taxatlon As a charity, Heron Com Will IBeelhaml Limited is exempt from tax on incorrE and gains falling uilhin sections 472- 474 of the Corporation T8xA¢t 2010. s8ctions 478- 489 of the Corporation Tax A¢t 2010, or secb'on 256 of Ih8 Tayatyon of Ch8rgeatrle Gains Act 1992 to the extent that these £ie 8pplied to its charitable obi8cts. No tèx charyes hak arisen in the Charity. 19. Control There is no Sing￿ controliw party of the charity for the current or preiious year. 20. Reconciliation of net mvement In funds to net cash flow from operating a¢tlvttles 2021 2020 Net nwxement in funds Add back depreciation Decr88se lincreas81 in debtor5 Increas& Idecreasel in Creditors Loss Iprofitl on disw)saLs 82,191 31,834 112,8511 {6,1571 11331 100,302 26,102 {6,4641 11321 Net cash generat8d in operatlng actlvltles 94,884 119,808 Page 25