**Company Registration No. CE001973 Charity Registration No. 1157164** ## **Royal Borough of Greenwich Heritage Trust** **Annual report and financial statements For the year ended 31 March 2022** **Royal Borough of Greenwich Heritage Trust** ## **Contents** ||**Page**| |---|---| |Reference and administrative details|1| |Trustees’ report|2 - 15| |Independent auditors’ report|16 - 19| |Consolidated statement of financial activities|20| |Balance sheets|21| |Consolidated statement of cash flows|22| |Notes to the financial statements|23 - 36| ## **Royal Borough of Greenwich Heritage Trust** ## **Reference and administrative details** |**Trustees**|L Duvall| |---|---| ||P Croall| ||W Edgerley| ||R Goodwin| ||T Mitton| ||G Parker| ||N Snook| |**Registered office**|Charlton House| ||Charlton Road| ||London| ||SE7 8RE| |**Company Registration No.**|CE001973| |**Charity Registration No.**|1157164| |**Bankers**|National Westminster Bank Plc| ||1-7 Powis Street| ||Woolwich| ||SE18 6LE| |**Independent Auditors**|Saffery Champness LLP| ||71 Queen Victoria Street| ||London| ||EC4V 4BE| Page 1 **Royal Borough of Greenwich Heritage Trust** **Trustees’ report For the year ended 31 March 2022** ## **Message from the Chair and Chief Executive presenting the 2021/22 Annual Report** During 2021/22 we revisited our ten-year strategy because of the devastating impact of the Covid 19 pandemic. Far from re-opening Charlton House to a pre-pandemic model we found ourselves continuing to work towards a re-opening strategy with ongoing furlough of staff. Our plans were re-scheduled several times and the impact of Covid on both our tenants and the regular hirers and users of Charlton House has severely impacted on our business model. However, we did enjoy catering success with our beer café, in partnership with the Green Goddess and the re-launch of our cafe in partnership with Frilly’s, a local business, which is proving very popular Monday to Saturday. We continued to work with our Fundraiser, Arts Quarter, and thanks to a successful application to Historic England for Emergency Funding for Heritage at Risk we were able to carry out an extensive roof survey with architects, Purcell UK that highlighted the urgent need to prioritise this work in our Strategic Planning. We began to reformulate our work with the museum and archive collections of Royal Greenwich, developing a plan to not only repair the roof, but also to re-open our museum and archive collections to public access through re-display within Charlton House. This exciting project has become the focus of our work in 2021/2022 and will continue to be our priority in 2022/23 as we explore further development of a major grant application to the National Lottery Heritage Fund in partnership with the Royal borough of Greenwich. We continued as a vaccination centre for the National Health Service, vital to our limited income generation during this year which unexpectedly provided access to Charlton House & Gardens for a whole new audience. We supported the borough’s Heritage Action Zone project for Powis Street, Woolwich, over a 6-month period to set the foundation for the community engagement element of this exciting project to rediscover and revitalise the centre of historic Woolwich. Although it was a tough year of change, we celebrated the charity’s successes and those of our staff and volunteers with a summer Garden Party. We welcomed new members to the Marketing and Programming team, Pippa our senior Digital Marketing Officer, and Caitlin our Learning and Participation Officer. The impact of new people in this team was noticeable with new interpretation in Charlton House, successful completion of our Meet the Collections programme recruiting Naomi as our Community Outreach Officer and delivering outcomes beyond those initially anticipated despite the 1-year delay due to Covid. The generous support of the National Lottery Heritage Fund, the Tanner Trust, and the Garfield Weston Foundation were essential to making this project a huge success. We continued building our relationship with the University of Greenwich working closely with landscape architect students at Masters level on creative design projects. Our Estates team developed a new relationship with our own Head Gardener, Jason Sylvan, and we now work closely with Jason, our team of hardworking garden volunteers, and colleagues in the council to manage the estate. Page 2 **Royal Borough of Greenwich Heritage Trust** ## **Trustees’ report For the year ended 31 March 2022** Our Collections team have worked hard at Anchorage Point and at Charlton House and across the wider community to increase access to the museum and archive collections of the Royal Borough of Greenwich. A successful exhibition of watercolours from the Paul Sandby collections was displayed at the Old Royal Naval College in an exciting new partnership project. New additions to the collection this year include a selection of limited-edition prints that formed a loan collection to borough residents in the 1980s, now being catalogued by volunteers. The Collections team have focused on cataloguing the museum and archive collections of the borough alongside continuing to provide access, in new ways, through digital and online content. Whilst we don’t doubt the difficulties ahead as the charity continues to navigate recovery post pandemic, we welcome the continued support of all our beneficiaries and benefactors over the last year and look forward to a continued positive recovery in the year ahead. Len Duvall, OBE Tracy Stringfellow Chair CEO Page 3 **Royal Borough of Greenwich Heritage Trust** ## **Trustees’ report (continued) For the year ended 31 March 2022** The Trustees are pleased to present their annual report and financial statements of the charity and group for the year ended 31 March 2022. ## **Activities of the Charity** The Trustees have complied with their duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission. The activities that have helped contribute to the achievement of the objectives of the Charity in the year to 31 March 2022 are detailed below. ## **Access, Learning & Conservation** Our broad charitable objects are access, learning and conservation, we outline below have we have achieved these charitable purposes for the beneficiaries of the charity in the past year. ## **Access: A wider range of people involved in heritage** ## **Meet the Collection** This successful project, generously funded by the National Lottery Heritage Fund, the Tanner Trust and the Garfield Weston Foundation allowed us to reach a much broader range of local people with the museum and archive collections in our care. _Figure 1 Audiences exploring 'I am an Archive' part of the NLHF funded Meet the Collections project_ The funding meant we could appoint a dedicated Community Outreach Officer to deliver Year two of the National Heritage Lottery Fund project. Over the year we were able to engage with new audiences across the community before inviting people back to Charlton House & Gardens were we hosted a month long takeover event displaying the creative community responses inspired by the museum and archive collections of Royal Greenwich. In all, 25 Meet the Collection Sessions took place this year, with audiences from local churches, from the local Afro-Caribbean community, and other local groups, of all age ages, from all areas of the borough. Local artists and makers worked with the community to create work that reflected what cultural heritage means to different people. This work was displayed throughout Charlton House during the takeover month. Page 4 ## **Royal Borough of Greenwich Heritage Trust** ## **Trustees’ report (continued) For the year ended 31 March 2022** _Figure 2 Maker delivered workshops funded by NLHF_ As well as the artist interventions used to help new audiences benefit from the heritage in our care in new ways, we were also able to open a more traditional object-based display at Charlton House using a variety of objects to further explore the themes raised in consultation with the community. This process, funded by the National Lottery Heritage Fund, forms a successful foundation for our project development proposals for re-opening of access to the museum and archive collections of the Royal Greenwich at Charlton House. We will explore these proposals further in the year ahead. ## **Volunteers** We have worked with 27 volunteers this year. Volunteer roles have included supporting the following: - Garden projects - Conservation research - Music Concert activity - Programming & Events Programming Volunteers have supported our Learning and Outreach activities. We have a core group of 6 who have delivered 360 volunteer hours over the year. Staff attended volunteer training courses to improve and enhance our understanding and knowledge of volunteer management. Development of further volunteer opportunities is a priority for Royal Greenwich Heritage Trust in the year ahead. ## **Technology** During the pandemic we were fortunate to receive funding from Arts Council, England which allowed us to use technology in new ways to give greater access to the cultural heritage in our care. Living in Greenwich: Tales through Time used the museum and archive collections as the basis for storytelling about our community, sharing both our shared experiences of the Covid 19 pandemic, and our diverse stories of life in Royal Greenwich. The project website, https://tales.greenwichheritage.org/, explored what it means to live in Greenwich through the centuries displaying a range of objects from the museum and archive collections, a range of activities for on-line learning, resources for schools learning, at a time when many schools were studying on line, as well as collecting real stories about peoples experience through the pandemic such as Nayan’s story, the local GP, who ran a Covid vaccination centre from Charlton House or Bardan, owner of the The Village Greengrocer who continued to serve the community throughout. Using technology to provide better access to our collections meant we could reach a wider more diverse audience. Page 5 **Royal Borough of Greenwich Heritage Trust** ## **Trustees’ report (continued) For the year ended 31 March 2022** We also installed simple technologies, funded by the National Lottery Heritage Fund, to count visitor numbers to the Study at Charlton house to access the collections displayed providing us with a more accurate baseline of people accessing the museum and archive collections over the past year, so we can build on this in the year ahead. ## **Learning** ## **Heritage is identified and better explained** We helped people make sense of our shared cultural heritage by: - Creating new displays in the community from displaying our Paul Sandby watercolours at the Old Royal Naval College, to touring locally relevant objects and archives to community locations across Royal Greenwich - Created a range of tours of Charlton House through the ages supported by the National Lottery Heritage Fund. The costumed tours were designed for Key Stage 1 & 2 and were adapted for family audiences but were equally popular with adults particularly themes such as the East India Company and World War Two. Many visitors returned each week to better make sense of the different phases of Charlton history - Researching, developing, and designing a series of new interpretation panels about Charlton House through the ages permanently displayed to improve visitor experience - Learning new skills with new technology to record people’s stories to be included in displays in Charlton House and on the website - Our Charlton House Explorers programme was launched as Covid restrictions allowed. Explorers is a family programme that attracts a broad and diverse audience. A small charge is made to cover resources, but this is not a barrier to participation. 23 Explorer sessions were delivered this year attended by 601 children and their parents and carers. _Figure 3 Costumed family tours funded by NLHF_ Page 6 **Royal Borough of Greenwich Heritage Trust** ## **Trustees’ report (continued) For the year ended 31 March 2022** ## **People will have learned about heritage, leading to change** We produced education resources with the funding of Arts Council, England specifically designed for selfguided online at https://tales.greenwichheritage.org/resources/. We also researched and developed a series of loan resources for school use, based on the needs of teachers identified during consultation. Five loan boxes were developed in total, with accompanying resource packs for delivery and use in schools to generate a small income to support the resilience of the Learning programme. We continued to support research use of the archive of Royal Greenwich, despite limited physical access to the storage facility at Anchorage Point we were able to facilitate over 200 personal research enquiries online. We host an annual Slavery Commemoration Event with Greenwich Afro-Caribbean Organisation who hold a short ceremony in the Walled Gardens by a tree planted in memorial to enslaved people who lived in the borough of Greenwich. ## **Conservation: Improvements to the physical condition of the heritage in our care** ## **Conservation** In this year we carried out conservation repair and decoration of ground floor rooms at Charlton House, the Study and the Delph Corridor, generously supported by the National Lottery Heritage Fund. We started structural monitoring of the Oak Stair to ensure there was no evidence of structural shift (there isn’t!). The Conservation & Estates team established an integrated pest management programme enabling the Trust to capture data to increase our understanding of the Grade I estate to better inform future development plans. _Figure 4 The Oak Stair, north range Charlton House_ The floor in the Grand Salon was repaired, the old varnish and modern nails removed and replaced with more appropriate fittings. The re-varnished floor improves the aesthetic appearance as well as protecting the wooden floor which dates from the early twentieth century. The front and rear doors of Charlton House were also treated, repaired, and oiled making a significant impact on visitors and improving the overall exterior appearance as well as improving their long term protection from the elements. Page 7 **Royal Borough of Greenwich Heritage Trust** ## **Trustees’ report (continued) For the year ended 31 March 2022** _Figure 5 The Grand Salon, with old floor varnish removed_ Funding support from Historic England allowed us to continue the enabling work scheme to the summer house. An electrical upgrade was completed in April which included removal of the electric meters to the ground floor level and works to remove the render and existing ceiling structure, and to install a timber ring beam was completed. We are developing plans for meanwhile uses of the summer house in the year ahead. Conservation work extends to the gardens and a planned programme of tree maintenance has become an annual action for Royal Greenwich Heritage Trust. Maintenance often requires tree felling as London trees are increasingly stressed by environmental changes. These works form part of the Trust’s wider estate management plan to maintain and improve the grounds and improve access to nature for better wellbeing. Across the wider RGHT estate, a drone survey was commissioned of the Tudor Barn, Eltham to better understand the condition of the roof. Lottery funding also helped us conserve an Ichthyosaur in our collection to prevent further deterioration. Funding also supported digital cataloguing of both the museum and archive collections, through purchase of a new database, training staff to add data to improve discoverability for the museum and archive collections and extended to additional consultancy support to continue to improve the cataloguing of the extensive borough archive. As well as the charities core charitable objects we aim to deliver outcomes in the areas below. ## **Resilience** Circumstances have continued to change rapidly throughout the year. We have managed the threats and challenges of Covid with the support of funders and the continued support of the Royal Borough of Greenwich. New commercial opportunities continued to arise, despite the pandemic, and we delivered an exciting programme of new tenants and hirers: - Green Goddess Beer café - Frilly’s café - NHS vaccination centre - Montessori Moments We were able to generate income from new sources at a time when our regular income from hires, and particularly weddings and other celebrations was decimated by the pandemic. Page 8 **Royal Borough of Greenwich Heritage Trust** **Trustees’ report (continued) For the year ended 31 March 2022** Volunteer numbers continued to grow through the year, especially thanks to the developing garden projects, with the support of a new contractual appointment of a Head Gardener, local people have worked with us to transform our walled gardens and continue to expand their programme supporting health and wellbeing of volunteers and visitors. The mix of new commercial opportunities and increased volunteer numbers means we have wider, and more inclusive support from communities and audiences. The Beer café and NHS vaccination centre particularly drew visitors to Charlton House & Gardens for the first time, or for the first time in many years and this increased awareness will help us develop our project plans in the year ahead. We continue to partner with other providers to deliver a diverse programme with broad audience appeal for example hosting two Tramshed Family Arts Festival events with 1,000 visitors over two afternoons in July. We also hosted Greenwich Festival at Charlton Gardens in August with a site -specific event, written by Mojisola Adebayo, inspired by the life of Henrietta Lacks, an African American woman, whose cells were harvested and cultivated without her consent after her death in 1951. The so-called HeLa cells have been vital to studying disease, decoding the human genome, and have even contributed to the development of the COVID-19 vaccines. 360 visitors attended these performances. ## **Wellbeing** Connecting people and connecting people to the place where they live was a key outcome of our Meet the Collections work. Meet the Collections aimed specifically to work with audiences at risk of social isolation and we achieved this by working with Greenwich Carers Centre and Dementia Friends to use the collections, archives, and built heritage in our care to help people meet and share experiences at Charlton House. ## **Skills Development** With the support of funding from Arts Council, England we improved our use of technology and made greater use of technologies in providing access to cultural heritage. This meant a period of training and development for staff and volunteers resulting in increased data input to our Axiell cataloguing system, increased used of audio technology in our temporary exhibitions, and new online exhibition development allowing us to achieve 114,000 visits to our website against a target of 92,000. ## **A better place to live, work or visit** Working as a partner on the Heritage Action Zone, Powis Street, Woolwich we were proud to share the museum and archive collections in our care that told the story of the historic significance of Powis Street to new generations of residents. RGHT Conservation & Estates Manager was seconded to the project for a period of six months to oversee a pilot programme commissioned by the Royal Borough of Greenwich for their Historic England project. Small consultation sessions were developed and delivered at events such as Open House and Horn Fair in order to engage the public with the heritage of Woolwich as well as to consult with the public on the types of heritage activity they would like to see and areas of interest. A small photographic exhibition showcasing how the history of Woolwich shopping streets have changed over the years was developed and designed for the Borough. It was installed in the Borough’s new ‘Front Room’ , a community event space opened as part of the borough's larger redevelopment of Woolwich town centre. Page 9 **Royal Borough of Greenwich Heritage Trust** ## **Trustees’ report (continued) For the year ended 31 March 2022** New people counters were installed at the boundary of the Charlton House estate are evidencing the increased footfall into the gardens as people want to remain connected to nature after the pandemic, this can be seen by the increasing numbers of volunteer gardens supporting Charlton Gardens. The annual free event, Horn Fair, is thriving and attracted more stall holders, visitors and performers this year than any other. We continue to work closely with the Charlton Society as we develop our future plans, connecting what happens at Charlton House & Gardens with the wider development in Charlton Village, identified as Heritage at Risk by Historic England. We work closely with other local societies such as Greenwich Historical Society where we have shared ambition to improve access to the museum and archive collections of the borough. ## **Boosting the local economy** We continue to work with local suppliers such as Green Goddess, Frilly’s and CC Events, who provide our producers market on the third Friday of every month. We work closely with local business trying to spend our resources locally where we can stock Drury’s tea and coffee in the café, ordering external catering, and other services from local business aiming to keep our supply chain as local as possible to reduce impact on the environment as well as investing back into the local economy. Royal Greenwich Heritage Trust is proud to be a London Living wage employer and encourages our contractors and suppliers to do the same, we make London Living Wage salaries a requirement of any contracts we negotiate with suppliers. Where we provide space for Tenants we try to work with local businesses investing in our area like Montessori Moments, creating new local jobs and attracting families to the area to use the services provided. Our growing programme of events increases footfall to the House & Gardens, encouraging new audiences to visit Charlton and generating additional income for existing local businesses. Key events for high footfall this year were: - Bunnies in the Beds! – our Easter Hunt supported by our team of garden volunteers with 800 visitors attending - Brass on the Patio – July to September outdoor concert programme building on the success of our free Friday concert programme which couldn’t be delivered as the Old Library venue was in use by the NHS throughout the summer to deliver Covid vaccinations. Unlike the indoor programme, the summer programme encouraged a wider and more diverse audience of families who combined music with dog walks, picnics, and other activities in nature. The free concerts were attended by approximately 150 people, a higher attendance than the indoor programme, and funds were generated for the charity by donations and gifts - London Open House – we participate in Open House annually providing guided tours for an audience generally visiting from outside the local SE postcodes. 146 people visited, with 57 taking part in guided tours. - Horn Fair – our main annual event, takes place each October and grows every year. This year we hosted 23 local makers and producers at our indoor and outdoor market. 1,000 people attended this year and we will build on this success year on year. Horn Fair is of historic significance as well as being a fun event for local people. - Christmas light switch on – another major event attracting growing audiences. In partnership with St Luke’s, Charlton’s local church, with a heritage connection to the families who lived at Charlton House from the seventeenth century to the early twentieth century. In the year ahead, we will grow the opportunities for boosting the local economy through wider promotion of Christmas activities at Charlton House & Gardens Page 10 ## **Royal Borough of Greenwich Heritage Trust** ## **Trustees’ report (continued) For the year ended 31 March 2022** _Figure 6 Christmas Light Switch on 2021_ ## **Grant funding received** The Charity accounted for £121,649 (2021: £272,536) of donations and grant funding and other financial support in 2021/22. Of this, £120,573 (2021: £117,459) was restricted. The £120,573 Restricted funds received during the year were made up of: - £1,373 being income from Concert donations - £27,074 being grant income to the Summerhouse project from Royal Borough of Greenwich Council and Historic England - £2,375 being grant income for the Charlton Roof Survey from Historic England - £9,950 being grant income for the Celebrating Our Heritage project from Historic England - £70,500 being grant income for Meet The Collection from National Lottery Heritage Funding - £9,301 being grant income for the Crush Room exhibition project from Royal Borough of Greenwich Council The £18,377 Unrestricted grants and donations were made up of: - £684 friends’ membership - £560 gift aid donations - £1,290 public donations - £15,842 government grants for the Job Retention Scheme for employees on furlough leave ## **Financial review** The Statement of Financial Activities on page 19 shows unrestricted reserves of £376,022 (2021: £390,122) at the year end. There are seven (2021: six) designated funds totalling £120,000 (2021: £145,000) which are unrestricted as per note 16 to the accounts on page 33. The principal funding sources which are included within unrestricted funds are that of a Service Level Agreement with Royal Borough of Greenwich and room hire. These funds have been utilised in support of the main objectives of the Charity by generally maintaining the building and grounds, employing staff to continue operations and covering any incidental costs related to the buildings. Page 11 **Royal Borough of Greenwich Heritage Trust** ## **Trustees’ report (continued) For the year ended 31 March 2022** ## **Plans for future periods** The key aims for 2022/23 are: ||| |---|---| |**Strategy**|•
Deliver financial goals to ensure the stability of the Trust
•
Strengthen general awareness of Royal Greenwich
Heritage Trust as a brand and organisation, and profile
of Charlton House & Gardens as a significant landmark
and venue
•
Develop the relationship between the House and
Gardens and the local community, working together to
celebrate the history of the borough
•
Introduce Charlton House & Gardens to London and the
U.K. as a whole as a tourist attraction, particularly as the
country and the world returns to travel| |**Conservation, repair & Maintenance**|•
Complete the Charlton Summer House enabling works
programme
•
Develop our project plan for repair of the roof and re-
opening of access to the museum and archive
collections of Royal Greenwich
•
Continuing to build the Planned Maintenance
Programme for Charlton House & Gardens
•
Developing a new hybrid grounds maintenance
programme working with the Council and our own Head
Gardener and volunteers
•
Continuing monitoring of structural movement, pest
management, humidity and temperatures in the House
to create strong baseline data for future projects and a
better understanding of the conservation needs of the
estate| |**Fundraising**|•
Utilising our appointed fundraising consultant to focus
on essential repair works to the roof and re-opening
access to the museum and archive collections of Royal
Greenwich
•
Launching our Patrons scheme locally to provide new
opportunities for donations and support| |**Education**|•
To develop an education audience for our Schools’
Programme including the use of the new school
collection loan boxes
•
Grow the monthly Charlton House tours programme
and Open Fridays
•
Develop a lifelong learning programme for a diverse
audience| Page 12 ## **Royal Borough of Greenwich Heritage Trust** ## **Trustees’ report (continued) For the year ended 31 March 2022** ||| |---|---| |**Collections**|•
Focus on cataloguing the museum and archive collection
to fully meet the standards of Arts Council England
Museum Accreditation| |**Programming**|•
Collaborate with external partners to create external
collaborations (i.e. Adventure Cinema, murder mystery
events, ghost tours)
•
Restart the Music Concert series and programme events
for Halloween and Christmas
•
Develop programme plan 2023 to 2027 in outline| |**Wellbeing**|•
Make wellbeing in the workplace an important part of
RGHT culture and focus on supporting our staff through
remote working
•
Continue with bi-annual staff surveys for all to
contribute
•
Implement individual Wellness Action Plans
•
Focus on wellbeing in programme development
especially increasing garden users| |**Sustainability**|•
Implement changes across the organisation to reduce
our environmental impact such as recycling, buying local
and working with local suppliers| ## **Reserves policy** Reserves are needed to bridge the gap between spending and receiving of resources. The Trustees annually review the reserves policy and agree free unrestricted reserves are needed: - to provide a level of working capital that protects the continuity of our work - to provide a level of funding for unexpected opportunities - to provide cover for risks such as unforeseen expenditure or unanticipated loss of income. The trustees would consider that the ideal level of free reserves as at March 2022 would be in the region of £245,000. It is the Charity’s policy to have sufficient cash reserves to cover three months of operational costs, particularly employee salaries. Unrestricted funds held by the Charity amount to £376,022 (2021: £390,122) at the year end. These funds are held for future charitable activities and taking into account the prudent reserve needed specified above it has been agreed to designate £120,000 (£145,000) to a variety of funds including £100,000 for essential roof repairs works. Restricted funds held by the Charity amount to £62,202 (2021: £43,474). The free reserves of the Charity are defined as unrestricted reserves, excluding designated reserves, fixed assets and defined benefit pensions. The total free reserves available to the Charity are £252,718 (2021: £178,233). At the year end, the total free reserves available to the Charity are in line with the target. This allows sufficient cash reserves to cover three months of operational costs, particularly employee salaries, and the rising costs of living. Page 13 **Royal Borough of Greenwich Heritage Trust** ## **Trustees’ report (continued) For the year ended 31 March 2022** ## **Fundraising** The trustees have carefully considered the requirements of the Charities (Protection and Social Investment) Act 2016. Since the 9th March 2020 the Charity has been a small charity member of the Fundraising Regulator and complies with the Regulator’s code of practice. The Charity works with a fundraising consultant to support our team in making grant requests to trusts and foundations, and strategising our fundraising approach. A contract is in place with our consultant. There are no direct approaches made to members of the public via cold calling, approaches are only made at events or through literature available at our sites. We are committed to good fundraising practice, to follow the Code of Fundraising Practice. Any complaints about fundraising are referred to the CEO in the first instance. During the year the charity received no complaints regarding its fundraising practices (2021: none). Page 14 ## **Royal Borough of Greenwich Heritage Trust** ## **Trustees’ report (continued) For the year ended 31 March 2022** ## **Statement of Trustees’ responsibilities** The trustees are responsible for preparing the trustees’ report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. Charity law requires the trustees to prepare financial statements for each financial year. Under charity law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and apply them consistently; - observe the methods and principles in the Charities SORP (FRS 102); - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity to enable them to ensure that the financial statements comply with the Charities Act 2011. They 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. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the United Kingdom governing the reparation and dissemination of financial statements may differ from legislation in other jurisdictions. The annual report was approved by trustees of the charity on 18[th] January 2023 and signed on its behalf by: L Duvall **Trustee** Page 15 ## **Royal Borough of Greenwich Heritage Trust** ## **Independent Auditors’ Report For the year ended 31 March 2022** ## **Opinion** We have audited the financial statements of Royal Borough of Greenwich Heritage Trust (the ‘parent charity) and its subsidiary (the ‘group’) for the year ended 31 March 2022 which comprise the consolidated statement of financial activities, balance sheets, consolidated statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the affairs of the group and the parent charity as at 31 March 2022 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group or the parent charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Page 16 **Royal Borough of Greenwich Heritage Trust** ## **Independent Auditors’ Report For the year ended 31 March 2022** Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard. ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in respect of which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: - the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or - the parent charity has not kept proper and sufficient accounting records; or - the parent charity’s financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the Statement of Trustees’ Responsibilities set out on page 15, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group and the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charity or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of the financial statements** We have been appointed as auditors under the Charities Act 2011 and report in accordance with regulations made under that Act. Our objectives are to obtain reasonable assurance about whether the group and parent financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below Page 17 **Royal Borough of Greenwich Heritage Trust** ## **Independent Auditors’ Report For the year ended 31 March 2022** ## Identifying and assessing risks related to irregularities: We assessed the susceptibility of the group and parent charity’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent charity by discussions with trustees and updating our understanding of the sector in which the group and parent charity operates. Laws and regulations of direct significance in the context of the group and parent charity include The Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and guidance issued by the Charity Commission for England and Wales. ## Audit response to risks identified: We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charity’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charity’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance. During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud. There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Page 18 ## **Royal Borough of Greenwich Heritage Trust** ## **Independent Auditors’ Report For the year ended 31 March 2022** ## **Use of our report** This report is made solely to the parent charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the parent charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent charity and the parent charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. ……………………………………………………………….. Saffery Champness LLP Chartered Accountants Statutory Auditors 71 Queen Victoria Street London EC4V 4BE Date: 30 January 2023 Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 Page 19 ## **Royal Borough of Greenwich Heritage Trust** ## **Consolidated statement of financial activities For the year ended 31 March 2022** |**Note**
**Income and endowments from**
Donations and legacies
**2**
Charitable activities
**3**
Other trading activities
**4**
Other
**5**
**Total income**
**Expenditure on**
Raising funds
**6**
Charitable activities
Governance costs
**7**
**Total expenditure**
**Net (expenditure) / income for**
**the year**
**Other recognised gains and losses**
Re-measurement gains/(losses) on
defined benefit pension schemes
**15**
**Net movement in funds**
**18**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**funds**
**2022**
**£**
18,377
852,593
35,150
(66,000)|**Restricted**
**funds**
**2022**
**£**
120,573
-
-
-|**Total**
**2022**
**£**
138,950
852,593
35,150
(66,000)
960,693
15,167
1,116,342
8,500
1,140,009
(179,316)
149,000
(30,316)
452,324
422,008|**Total**
**2021**
**£**
272,536
697,767
23,788
514,000| |---|---|---|---|---| ||840,120|120,573||1,508,091| ||15,167
979,553
8,500|-
136,789
-||34,547
903,695
30,466| ||1,003,220|136,789||968,708| ||(163,100)|(16,216)||539,383| ||149,000
(14,100)
390,122|-
(16,216)
62,202||(432,000)| |||||107,383
344,941| ||376,022|45,986||452,324| All of the charity’s activities derive from continuing operations during the above two periods. A comparative statement of financial activities showing the split by fund is shown on page 36. Page 20 ## **Royal Borough of Greenwich Heritage Trust** ## **Balance sheets As at 31 March 2022** |**Note**
**Fixed assets**
Office equipment
**11**
Investments
**12**
**Current assets**
Stocks
Debtors
**13**
Cash at bank and in hand
**Liabilities**
Creditors: Amount falling due
within one year
**14**
**Net current assets**
Total assets less current liabilities
Defined benefit pension liability
**15**
**Total assets**
**18**
**Funds represented by:**
Restricted funds
**16**
Unrestricted funds
**16**
**Total Funds**|**Group**
**2022**
**£**
4,494
-
4,494
356
857,990
1,052,252
1,910,599
(715,084)
1,195,515
1,200,008
(778,000)
422,008
45,986
376,022
422,008|**Group**
**2021**
**£**
3,304
-
3,304
421
1,482,788
627,254
2,110,463
(817,443)
1,293,020
1,296,324
(844,000)
452,324
62,202
390,122
452,324|**Charity**
**2022**
**£**
4,494
1
4,495
200
865,463
1,025,692
1,891,355
(703,063)
1,188,292
1,192,787
(778,000)
414,787
45,986
368,801
414,787|**Charity**
**2021**
**£**
3,304
1| |---|---|---|---|---| |||||3,305| |||||200
1,492,508
624,492| |||||2,117,200| |||||(811,421)| |||||1,305,779| |||||1,309,084
(844,000)| |||||465,084| |||||62,202
402,882| |||||465,084| Approved by the Board of Trustees on the 18[th ] of January 2023 and signed on its behalf by: Len Duvall **Trustee – Chair of Board** The notes on pages 23 to 36 form part of these financial statements. Page 21 ## **Royal Borough of Greenwich Heritage Trust** ## **Consolidated statement of cash flows For the year ended 31 March 2022** |**Note**
**Cash surplus/(deficit) from operating activities**
**21**
**Cash flows from investing activities**
Purchase of tangible fixed assets
**Net cash flows from investing activities**
Increase/(decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
**Total cash and cash equivalents at the end of the year**|**Group**
**2022**
**£**
431,739
(6,741)
(6,741)
424,998
627,254
1,052,252|**Group**
**2021**
**£**| |---|---|---| |||212,300| |||-| |||-| |||212,300
414,954| |||627,254| Page 22 **Royal Borough of Greenwich Heritage Trust** ## **Notes to the financial statements For the year ended 31 March 2022** ## **1. Accounting policies** ## **1.1 Accounting convention** The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. The charity constitutes a public benefit entity as defined by FRS 102. The functional currency is sterling. Monetary amounts in these financial statements are rounded to the nearest £. The Trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. ## **1.2 Group accounts** The group financial statements consolidate the financial statements of the charity and its subsidiary for the year ended 31 March 2022. The statement of financial activities and the balance sheet consolidate the financial statements on a line by line basis where appropriate. Details concerning the subsidiary company are set out in note 12. A separate statement of financial activities for the charity is not presented as the Trustees do not believe it to be a material value to the users of the accounts. Details of the charity’s income and expenditure can be seen in note 16. ## **1.3 Income and endowments** - 1.3.1 Donations and legacies Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period. ## 1.3.2 Grants receivable Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released. ## 1.3.3 Voluntary income Voluntary income is received by way of donations and gifts and is included in full in the Statement of Financial Activities when receivable. The contribution of volunteers’ time is not included in the financial statements in accordance with the Charities SORP (FRS 102). Page 23 ## **Royal Borough of Greenwich Heritage Trust** ## **Notes to the financial statements (continued) For the year ended 31 March 2022** ## 1.3.4 Charitable activities Incoming resources from the Service Level Agreement, and other charitable activities, are included in the Statement of Financial Activities on an accruals basis. Income is deferred to the next period where the invoice has been raised in advance and is included in the relevant period. ## **1.4 Expenditure** - 1.4.3 Raising funds Costs of raising funds comprise the costs of commercial trading. - 1.4.4 Charitable activities - Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes the costs for the running and maintenance of facilities in accordance with the Service Level Agreement and their support costs. ## 1.4.5 Irrecoverable VAT Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. ## **1.5 Support costs** Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charities activities. ## **1.6 Governance costs** These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’ meetings and reimbursed expenses. ## **1.7 Investments** The investment in the subsidiary undertaking is shown at cost on the charity balance sheet. ## **1.8 Tangible fixed assets** Individual fixed assets costing £1,000 or more are initially recorded at cost and subsequently depreciated. On disposal the gain or loss arising on the disposal is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit or loss. Assets purchased will incur a full year’s depreciation in the year of purchase and none in the year of disposal. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Office equipment 3 years straight line ## **1.9 Heritage fixed assets** Heritage assets used by the Charity compromise leases donated to the Charity over historical properties. The heritage assets have not been capitalised as the Trustees consider the costs involved in valuation of the leases to be disproportionate to the value obtained for the users of the accounts. Accordingly, the costs of conservation have been written off to the Statement of Financial Activities as they were incurred. Page 24 ## **Royal Borough of Greenwich Heritage Trust** ## **Notes to the financial statements (continued) For the year ended 31 March 2022** ## **1.10 Stock** Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow-moving stocks. Cost is determined using the first-in, first-out (FIFO) method. Donated items of stock are recognised at fair value which is the amount the Charity would have been willing to pay for the items on the open market. ## **1.10 Trade debtors** Trade debtors are amounts due from customers for services performed and merchandise sold in the ordinary course of business. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables. ## **1.11 Cash and cash equivalents** Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. ## **1.12 Trade creditors** Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as noncurrent liabilities. Trade creditors are recognised initially at the transaction price; and subsequently measured at amortised cost using the effective interest method. ## **1.13 Funds** Unrestricted income funds are general funds that are available for use at the trustees’ discretion in furtherance of the objectives of the charity. Designated funds are unrestricted funds earmarked by the management committee for particular purposes as indicated at the time that the funds are received. Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purposes. Page 25 **Royal Borough of Greenwich Heritage Trust** ## **Notes to the financial statements (continued) For the year ended 31 March 2022** ## **1.14 Employee benefits** The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.15 Retirement benefits** Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. The assets of this scheme are held separately from those of the charity in an independently administered fund. For defined benefit schemes, the pension costs are assessed using the projected unit method, the cost of providing pensions is charged to the Statement of Financial Activities so as to spread the regular costs over the service lives of the employees. The pension obligation is measured at the present value of the estimated future cash flows using interest rates on government securities that have terms to maturity approximating the terms of the related liability. When the benefits of a scheme are improved, past service costs are recognised as an expense on a straight-line basis over the average period until the benefits become vested. To the extent that the benefits are already vested, following the introduction of, or changes to, a defined benefit plan, the past service cost is recognised as an expense immediately. ## **1.16 Estimates and judgements** In application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Critical estimates relate to the assumptions used by the actuary in calculating the defined benefit pension scheme liability. These have been compared with industry standards. In addition, the Trustees are required to make a judgement about future renewals of the Service Level Agreement with the Royal Borough of Greenwich Council. In preparing these accounts they have concluded that it will continue for at least two years. Page 26 **Royal Borough of Greenwich Heritage Trust** ## **Notes to the financial statements (continued) For the year ended 31 March 2022** |**2.**|**Donations and legacies**||| |---|---|---|---| |||**Total**|**Total**| |||**2022**|**2021**| |||**£**|**£**| ||Concert donations|1,373|700| ||Public donations|1,851|10,592| ||Grants for core activities|119,200|116,849| ||Coronavirus job retention scheme|15,842|143,828| ||RGHT Friend Membership|684|567| |||138,950|272,536| ||Total amount received from all government sources in the year was £480,523 (2021:||£645,031).| |**3.**|**Income from charitable activities**||| |||**Total**|**Total**| |||**2022**|**2021**| |||**£**|**£**| ||Royal Borough of Greenwich|464,682|501,203| ||Hire, rental and service charges|375,287|157,782| ||Recoverable costs|6,592|25,477| ||Miscellaneous income|3,915|11,374| ||Investment income|2,117|1,931| |||852,593|697,767| |**4.**|**Income from trading activities**||| |||**2022**|**2021**| |||**£**|**£**| ||Turnover|35,150|6,460| ||Grants received|-|17,328| |||35,150|23,788| |**5.**|**Other income**||| |||**2022**|**2021**| |||**£**|**£**| ||(Decrease)/increase in pension indemnity|(66,000)|514,000| This is the net change in pension liability, which is underwritten by Royal Borough of Greenwich under the Service Level Agreement. See note 15 for the calculation and more details. Page 27 **Royal Borough of Greenwich Heritage Trust** ## **Notes to the financial statements (continued) For the year ended 31 March 2022** |**6.**
**Cost of raising funds**
Commercial trading operations
**7.**
**Governance costs**
Audit and accountancy fees
**8.**
**Cost of charitable activities**
Costs for staffing
Legal, professional and consultancy fees
Depreciation
Bad debt expense
Bank charges
Costs to support activities
**9.**
**Staff costs**
Staff salaries
Social security costs
Redundancy cost
Defined contribution pension cost
Pension service cost|**2022**
**£**
15,167
**2022**
**£**
8,500
**2022**
**£**
619,475
58,254
5,550
4,500
86
428,477
1,116,342
**2022**
**£**
447,822
34,848
-
10,150
96,000
588,820|**2021**
**£**
34,547| |---|---|---| |||**2021**
**£**
7,695| |||**2021**
**£**
615,333
42,989
3,700
6,500
271
257,674| |||926,467| |||**2021**
**£**
450,355
36,427
677
48,415
70,000| |||605,874| There were no staff employed with emoluments in the year above £60,000. The above analysis includes staff costs that were allocated to specific restricted projects as part of their ongoing duties. The average number of staff employed during the year, based on headcount, was: |Trust management
Greenwich Heritage Trading staff
Charlton House staff
Heritage Centre staff
HLF Funded project staff|**2022**
**Number**
8
-
4
1
2
15|**2021**
**Number**
7
1
3
1
1| |---|---|---| |||13| Page 28 **Royal Borough of Greenwich Heritage Trust** **Notes to the financial statements (continued) For the year ended 31 March 2022** ## **10. Heritage Assets** ## Charlton House Built around 1610 during the reign of James I, Charlton House is regarded as the finest and best preserved Jacobean Mansion in London. The estate has extensive grounds which are open to the public as well as parts of the mansion. Some areas of the mansion and associated buildings are rented out mainly to local interest groups. The Royal Borough of Greenwich Heritage Trust was granted a 125-year lease by The Royal Borough of Greenwich for no charge. Due to the costly nature of obtaining a valuation for the property and the irreplaceable nature of the asset, the Trustees have decided that obtaining a valuation of the donated lease would not be in the best interests of the charity or the users of the accounts. The mansion does contain a number of historical artefacts and pictures which are on display for the public. The ultimate ownership of these assets remains with the Royal Borough of Greenwich and have been lent to the Heritage Trust for display purposes only. As such, no valuation has been placed on these within the accounts. ## The Stable Block Located within the grounds of Charlton House this is, as its name suggests, where the horses were kept when Charlton House was used as a residence. It has now been leased to The Greenwich Carers Centre to establish an improved base of operations in which to undertake their charitable work. ## Assembly Rooms This red brick building dates from 1881 and is part of the Charlton House estate. Having fallen into disrepair there was strong local opposition to its demolition, and it is now a focal point for the community, hosting many clubs and organisations. ## Tudor Barn Build around 1525 this building is set in thirteen acres of beautiful award winning gardens and is connected historically to nearby Eltham Palace. The Tudor Barn is currently leased out and used as a Bar and Restaurant allowing the local residents access to this historical building while ensuring that the building is well preserved for future generations. The Royal Borough of Greenwich Heritage Trust was granted a 30-year lease by The Royal Borough of Greenwich for no charge. Due to the costly nature of obtaining a valuation for the property and the irreplaceable nature of the asset, the Trustees have chosen not to undertake a valuation of the donated lease. ## Other assets The Heritage Trust is also custodian of a number of memorials in the borough. Given their nature and ownership the Trustees do not believe that it would be appropriate to capitalise these as assets of the Heritage Trust. Page 29 **Royal Borough of Greenwich Heritage Trust** ## **Notes to the financial statements (continued) For the year ended 31 March 2022** |**11.**
**Tangible Fixed Assets**
**Office equipment**
**Cost**
At 1 April 2021
Additions
Disposals
At 31 March 2022
**Depreciation**
At 1 April 2021
Charge for the year
Eliminated on disposal
At 31 March 2022
**Net book value**
At 31 March 2022
At March 2021|**Group**
**£**
44,149
6,741
(18,392)
32,498
40,845
5,550
(18,392)
28,003
4,495
3,304|**Charity**
**£**
38,031
6,741
(18,392)| |---|---|---| |||26,380| |||34,727
5,550
(18,392)| |||21,885| |||4,495| |||3,304| ## **12. Investments** The Charity holds 1 share of £1 in its wholly owned trading subsidiary company, Greenwich Heritage Trading Limited which is incorporated in the United Kingdom (company number 09021486). This is the only share allotted, called up and fully paid. ## **13. Debtors** |Trade debtors
Amount due from subsidiary
Prepayments and accrued income
Pension indemnity|**Group**
**2022**
**£**
53,034
-
26,956
778,000
857,990|**Group**
**2021**
**£**
611,399
-
27,389
844,000
1,482,788|**Charity**
**2022**
**£**
46,784
13,723
26,956
778,000
865,463|**Charity**
**2021**
**£**
611,186
-
27,389
844,000| |---|---|---|---|---| |||||1,492,508| ## **14. Creditors: amounts falling due within one year** |Trade creditors
Accruals and deferred income
Other creditors|**Group**
**2022**
**£**
94,770
514,845
105,469
715,084|**Group**
**2021**
**£**
74,721
631,869
110,583
817,443|**Charity**
**2022**
**£**
94,770
514,045
94,248
703,063|**Charity**
**2021**
**£**
74,721
630,769
105,931| |---|---|---|---|---| |||||811,421| Page 30 **Royal Borough of Greenwich Heritage Trust** **Notes to the financial statements (continued) For the year ended 31 March 2022** ## **Creditors: amounts falling due within one year (continued)** The deferred income primarily represents funds received in advance from the Service Level Agreement between Royal Brough of Greenwich Council and Royal Borough of Greenwich Heritage Trust. The Service Level Agreement covers the period from 1 April 2020 to 31 March 2023, and therefore the funds deferred represent the amounts received in advance in relation to the period from 1 April 2022 to 31 March 2023. ## **15. Pension costs** |**Defined contribution**|**2022**|**2021**| |---|---|---| ||**£**|**£**| |Contributions payable by the Charity for the period|47,150|30,538| ## **Defined benefit** The Charity operates a pension scheme providing benefits based on final pensionable pay. The assets of the scheme are held separately from those of the Charity. The scheme forms part of the Royal Borough of Greenwich Pension Fund, however separate valuations are undertaken to segregate the liabilities and assets relating to the charity. As from 1 July 2014, a number of employees were transferred from the Royal Borough of Greenwich to the charity. The charity became liable for the net pension liability due to the Royal Borough of Greenwich Pension Fund at this date. The Royal Borough of Greenwich has agreed to indemnify the charity against the initial pension liability of £300,000 on transfer plus any additional deficit that arises for the duration of the Service Level Agreement, which runs until 31 March 2023. This additional deficit is covered by other income received. The contributions are determined by a qualified actuary on the basis of triennial valuations using the projected unit method. The most recent valuation was at 31 March 2022 which has been updated to reflect conditions at the balance sheet date. The major assumptions used by the actuary were: |**2022**
Rate of increase in salaries
4.15%
Rate of pension increase (CPI)
3.15%
Discount rate
2.55%
The return on the fund is estimated to be 7.1% (2021: 24.13%).
**Analysis of amounts recognised in the Statement of Financial Activities**
**Costs recognised**
**2022**
**£**
Service cost
96,000
Net interest on defined benefit liability
32,000
Miscellaneous expenses
1,000
129,000|**2021**
3.80%
2.80%
2.05%
**2021**
**£**
70,000
15,000
1,000| |---|---| ||86,000| Page 31 **Royal Borough of Greenwich Heritage Trust** ## **Notes to the financial statements (continued) For the year ended 31 March 2022** ## **Defined benefit (continued)** |**Actuarial gain / (loss) recognised**
Return on Fund assets in excess of interest
Changes in financial assumptions
Change in demographic assumptions
Experience gain on defined benefit obligation
Actuarial gain / (loss) recognised
**Value of scheme assets and liabilities**
Equities
Bonds
Property
Cash and alternative assets
Unitised insurance policies
UK & overseas unit trusts
Market value of assets
Present value of scheme liabilities
Deficit in scheme
Amount indemnified on formation
Net pension liability|**2022**
**£**
51,000
103,000
-
(5,000)
149,000
**2022**
**£**
625,000
189,000
119,000
27,000
-
134,000
1,094,000
(2,172,000)
(1,078,000)
300,000
(778,000)|**2021**
**£**
171,000
(638,000)
21,000
14,000| |---|---|---| |||(432,000)| |||**2021**
**£**
91,000
164,000
87,000
12,000
382,000
243,000| |||979,000
(2,123,000)| |||(1,144,000)
300,000| |||(844,000)| Page 32 **Royal Borough of Greenwich Heritage Trust** ## **Notes to the financial statements (continued) For the year ended 31 March 2022** |**16.**|**Analysis of charitable funds**|||||| |---|---|---|---|---|---|---| ||**Restricted funds**|**Balance**|**Income**|**Expenses**|**Transfers**|**Balance**| |||**1 April**||||**31 March**| |||**2021**||||**2022**| |||**£**|**£**|**£**|**£**|**£**| ||Summer House project|6,272|27,074|(31,221)|-|2,125| ||Charlton Roof survey|3,522|2,375|(5,897)|-|-| ||Celebrating Our Heritage|3,334|9,950|(13,284)|-|-| ||Crush Room exhibition|-|9,301|-|-|9,301| ||Festival of Archaeology|5,000|-|(5,000)|-|-| ||Meet the collection|26,955|70,500|(78,912)|-|18,543| ||Eltham War Memorial|8,256|-|-|-|8,256| ||Concert performances|4,176|1,373|(2,475)|-|3,074| ||Woolwich Trail - RAWHS|4,687|-|-|-|4,687| |||62,202|120,573|(136,789)|-|45,986| ||**Unrestricted funds**|||||| ||Core unrestricted funds|245,122|989,120|(1,003,220)|25,000|256,022| ||Designated funds|145,000|-|-|(25,000)|120,000| |||390,122|989,120|(1,003,220)|-|376,022| |||||||| ||**Total funds**|452,324|1,109,693|(1,140,009)|-|422,008| ||**Restricted funds**|**Balance**|**Income**|**Expenses**|**Transfers**|**Balance**| |||**1 April**||||**31 March**| |||**2020**||||**2021**| |||**£**|**£**|**£**|**£**|**£**| ||Eltham War Memorial|8,256|-|-|-|8,256| ||Concert performances|3,476|700|-|-|4,176| ||Woolwich Trail - RAWHS|4,687|-|-|-|4,687| ||Meet the collection|26,955|-|-|-|26,955| ||Charlton Roof survey|**-**|8,537|(5,015)|-|3,522| ||Celebrating Our Heritage|-|39,801|(36,467)|-|3,334| ||Festival of Archaeology|-|34,831|(29,831)|-|5,000| ||Monuments, Statues,|-|10,000|(10,000)|-|-| ||Artefacts|||||| ||and the Public Realm|||||| ||Charlton Summer House|-|23,680|(17,408)|-|6,272| |||43,474|117,549|(98,721)|-|62,202| ||**Unrestricted funds**|||||| ||Core unrestricted funds|301,567|876,381|(787,826)|(145,000)|245,122| ||Designated funds|-|514,161|(514,161)|145,000|145,000| |||301,567|1,390,542|(1,301,987)|-|390,122| |||||||| ||**Total funds**|344,941|1,508,091|(1,400,708)|-|452,324| Page 33 **Royal Borough of Greenwich Heritage Trust** ## **Notes to the financial statements (continued) For the year ended 31 March 2022** ## **17. Purpose of designated funds** |Roof works
FuturePlan - Charton House conservation & capital works
Charlton Estate paving repair
Tudor Barn roof
Old Library ceiling
2nd floor suite - water tank replacement and toilet works
2nd floor suite - Newton, tower room & porters store
Grounds trees felling (from risk survey)
Staff offices move to Stables
Brand Refresh & Website
Museum Collection & Archive Equipment|**2022**
**£**
-
60,000
15,000
10,000
5,000
10,000
15,000
-
-
-
5,000
120,000|**2021**
**£**
100,000
-
-
-
15,000
-
-
10,000
5,000
10,000
5,000| |---|---|---| |||145,000| Designated funds include the defined benefit pension scheme, for which no balance has been included above due to the indemnity in place. |**18.**
**Analysis of funds by net assets**
**Analysis year end 31 March 2022**
Tangible fixed assets
Cash at bank and in hand
Other net current assets/(liabilities)
Defined benefit pension liability
**Analysis year end 31 March 2021**
Tangible fixed assets
Cash at bank and in hand
Other net current assets/(liabilities)
Defined benefit pension liability|**Unrestricted**
**Designated**
**Restricted**
**Total**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
**£**
4,494
-
-
4,494
886,266
120,000
45,986
1,052,252
(634,738)
778,000
-
143,262
-
(778,000)
-
(778,000)| |---|---| ||256,022
120,000
45,986
422,008| ||**Unrestricted**
**Designated**
**Restricted**
**Total**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
**£**
3,303
-
-
3,303
420,052
145,000
62,202
627,254
(178,233)
844,000
-
665,767
-
(844,000)
-
(844,000)| ||245,122
145,000
62,202
452,324| Page 34 **Royal Borough of Greenwich Heritage Trust** **Notes to the financial statements (continued) For the year ended 31 March 2022** ## **19. Related party transactions** During the current and prior year there were no expenses paid to Trustees. Greenwich Heritage Trading Limited made a charitable donation of £nil (2021: £38,469) to the charity, based on the performance in the prior year. The charity recharged £12,404 (2021: £2,000) for administration and financial support, and £1,318 (2021: £nil) for advertising and promotion to Greenwich Heritage Trading Limited. At the year end Greenwich Heritage Trading Limited owed £13,723 (2021: £8,309) to the charity. During the year £1,000 (2021: £nil) was received as a donation from a Trustee. During the year £15 (2021: £nil) was received from Trustee through the Friend of RGHT scheme. ## **20. Operating leases** At the year end, the charity has expected future income under operating leases. These represent leases for the use of buildings to third parties. |**Group**
**Group**
**Charity**
**2022**
**2021**
**2022**
**£**
**£**
**£**
Within one year
108,993
108,993
108,993
2 – 5 years
148,712
257,705
148,712
Over 5 years
-
-
-
257,705
366,698
257,705
**21.**
**Reconciliation of net movement in funds to net cash flow from operating activities**
**Group**
**Group**
**2022**
**2021**
**£**
**£**
Net movement in funds
(47,616)
107,383
Add depreciation
5,550
5,089
Profit/Loss on disposal of assets
-
-
Increase in DB pension liability
(66,000)
514,000
(Increase)/decrease in stock
65
1,012
(Increase)/decrease in debtors
624,798
(927,257)
Increase/(decrease) in creditors
(85,058)
512,073
431,739
212,300
**22.**
**Reconciliation of net debt**
**At 1 April**
**Cash**
**2021**
**flows**
**£**
**£**
Cash
627,254
424,998|**Charity**
**2021**
**£**
108,993
257,705
-| |---|---| ||366,698| ||**At 31 March**
**2022**
**£**
1,052,252| Page 35 **Royal Borough of Greenwich Heritage Trust** ## **Notes to the financial statements (continued) For the year ended 31 March 2022** |**23.**
**Comparative Statement of Financial Activities**
**Income and endowments from**
Donations and legacies
Charitable activities
Other trading activities
Other
**Total income**
**Expenditure on**
Raising funds
Charitable activities
Governance costs
**Total expenditure**
**Net surplus before other recognised gains and losses**
**Other recognised gains and losses**
Re-measurement losses on defined benefit pension
schemes
**Net income and net movement in funds for the year**
**Reconciliation of funds**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**2021**
**2021**
**2021**
**£**
**£**
**£**
154,987
117,459
272,536
697,767
-
697,767
23,788
-
23,788
541,000
-
514,000| |---|---| ||1,390,542
117,549
1,508,091| ||(34,547)
-
(34,547)
(804,974)
(98,721)
(903,695)
(30,466)
-
(30,466)| ||(869,987)
(98,721)
(968,708)| ||520,555
18,828
539,383| ||(432,000)
-
(432,000)
88,555
18,828
107,383| ||301,567
43,374
344,941| ||390,122
62,202
452,324| Page 36