the HORTON ARTS CAFÈ HERITAGE Horton Chapel Arts & Heritage Society Registered Charity 1167510 Annual Report and Accounts for 2021-22 Horton Cha el Arts and Herita e Societ Contents of the Flnanclal SLitements lor the Yèar Ended 28 F•brua 2022 Page Reference and Administrative Details R¥port of th• Tru81••8 2 to 14 Indèpèndènt Examln•fs Report 15 ststement ol Flnanclal Actlvltles 16 Balance Sheet 17 Cash Flow Stat•m•nt 18 Notes to th• Financial Staterngnts 19 to 2S Horton Cha el Arts and Herlta Socle Rfrfèroneè and Administrativè Dètails for the Year Ended 28 Februa 2022 TRUSTEES l Reeves R Salmon -Secr8lary K Amould M Reeves (resigned 22.6.21) P Humphrey {resigned 9.4.211 G Saunders Y Mokuolu (resigned 14.6.22> S Kelly IresKJned 22.4.211 G C Young S Wiles - Chair H van Maasakkers (appointed 31.8.21) S R Trimm (appointed 16.3 221 Mrs K Appadoo lappointed 16.3.221 PRINCIPAL ADDRESS Haven Way Ep50m Surrey KT19 8NP REGISTERED CHARITY NUMBER 1167510 INDEPENDENT EXAMINER Bates Weston LLP Chartered Accountants The Mills Canal Street Derby DE12RJ BANKERS Metrobank 91a High Street Ep50m KT19 8DR Page 1 Objectives and activities The Horton Chapel Arts & Heritage Society ("the Society , we" or 'HCAHS") was established as a Charitable Incorporated Organisation in January 2016. We are governed by our Constitution which sets out our aims as being: To preserve The Horton Chapel in Epsom, a Grade11 listed building. for the benefit of the public and the heritage of the local area, by establishing a not-for-profit community arts centre within the building and its associated grounds: and To promote education in and appreciation of the arts, local history and creative activities that promote well-being, for the public benefit of all ages of people living, working and studying in the borough of Epsom and Ewell and its surrounding areas. In addition to our formal name, we have used The Horton Chapel Project as a name to describe the redevelopment phase of the project. The building has now opened as a venue for arts, heritage and events with the name The Horton, which is our primary brand. Between 2016 and 2018 we received start-up grants of £10,000 from the National Lottery Heritage Fund ("NHLF") and £25,000 from the Architectural Heritage Fund, followed by a Development Grant from the HLF for a maximum of £300,900. In June 2018 our application for a Heritage Enterprise Delivery Grant from the Heritage Lottery Fund (now known as the National Lottery Heritage Fund, NLHF) for £1.44m was approved. This award unlocked guaranteed funding of a further £1.45m from Section 106 funds held by Epsom & Ewell Borough Council (EEBC). In January 2019 we were granted a 125-year operational lease on the building, which is owned by EEBC, for a peppercorn rent. A licence for works was also agreed with EEBC to enable us to undertake the restoration and redevelopment works on the building and site. Work on the site commenced in 2020 but was significantly interrupted by the global coronavirus pandemic and the collapse into administration of the main construction contractor, Armfield Construction Ltd, in early 2021. Annual Report and Accounts- 2021-22 Activities Summary During the period covered by this report (March 2021 to February 2022), we reached a major milestone in completing the main construction work for the refurbishment and restoration of the chapel building and site- a significant step towards achieving one of primary charitable aims. This work included: Access ramp installation Damp proofing Café and kitchen fit-out completion Secondary glazing Custom blinds and window coverings Automatic doors Restoration and re-installation of memorial plaques Restoration and re-installation of decorative organ pipes Installation of services including telephone, wifi, alarms and CCTV Commissioning service of access lift to mezzanine floor Procurement of fixtures and fitting5 Installation of sound and lighting equipment Final decoration ua-oq Annual Report andAccounis- 2021-22 We also entered into service agreements and maintenance contracts for the ongoing management of the building, including: electricity, telephone, broadband, security, fire alarms and waste management. In addition to this capital work, HCAHS carried out activities which fulfilled its second main charitable aim, including: Installation of the permanent heritage exhibition The Young Creatives project, funded in part by an #Iwill grant Heritage Open Days- welcoming visitors to an exhibition preview before The Horton was open to the public. Skills training for trustees and volunteers. Networking and partnership building with other local charities, community groups and creatives. Heritage research volunteers continued their research of local history of Epsom Hospital Cluster and the people who lived and worked there. Collaborative content development with heritage partners and curators. A premises license was applied for, and successfully granted in September 2021. First performances held including Hikapee Theatre's The Elf Factory and a concert by The Denman Street Quortet. Annual Report and Ac¢ounis- 2021-22 Evaluation 111 ;'Ii;' 111 .1 The criteria we have used to assess our success during this reporting period are set out in our Evaluation Framework. This is informed by our Vision and Values Statement and the conditions under which our grant has been awarded by our primary funder. It measures: What HCAHS set out to do The difference HCAHS made to heritage (outcomes) The difference HCAHS made to people (outcomes) The difference HCAHS made to communities (outcomes) What HCAHS delivered (outputs) How these were delivered (process) Successes, challenges and lessons learnt Legacy and Sustainability- providing a set of recommendations for the organisation, other similar projects and N LHF. We report regularly to NLHF and EE8C on our progress against milestones and benchmarks for these approved purposes. We are regularly appraised at quarterly meetings with the NLHF and an external NLHF appraiser, as well as reporting to other funders who have specific criteria. Annual Report and Ac¢ounts- 2021-22 Achievements and performance The financial year began just as Armfield Construction Ltd went into liquidation, leaving significant portions of the main refurbishment contract incomplete or not finished to appropriate standards. Trustees took legal advice over our contractual position with Armfield and its sub- contractors. Trustees ran a new procurement process for the completion of the refurbishment works that had not been finished by Armfield. This contract was won by Eden London Ltd, who were already scheduled to begin work on the café fit-out in the summer of 2021. Eden subsequently worked concurrently on the completion and fit-out works, both of which were completed towards the end of the year. Other specialist contractors were appointed for specific purposes. The management of this challenging period - at the same time as dealing with the impact of Covid-19 on labour and the global supply chain - is a demonstration of the charity's resilience and commitment of its trustees and volunteers. Ho 8t The most significant achievement during the reporting period was the completion of the main refurbishment work that has transformed the chapel from a dilapidated at-risk building into a beautiful cultural venue. Important heritage features including war memorials were restored and the eternal flame memorial torch was reconnected to power and lit for the first time in living memory. The installation of the permanent heritage exhibition was also completed in August 2021. Pieces of original furniture were customised to create innovative display units. The exhibition, which is free to access for all visitors, includes images, audio recordings and digital resources including testimonies of staff and patients from throughout the 20th century. Annual Report and A¢counis- 2021-22 Tablets were installed to show video, audio and an image library. QR codes were built into the exhibition to facilitate Covid-safe touch-free access to multimedia content. This important aspect of the charity's objectives brings to life the heritage of the site and the wider Epsom Hospital Cluster, exploring the history of approaches to mental health care and their contemporary relevance. An accompanying exhibition guide, written by trustee Kirstie Arnould, is proving a popular additional source of information to visitors. The venue's website (thehortonepsom.org) was further developed and expanded to include What's On and Visit sections as well as hosting the back-end integration of the on-site exhibition's digital resources. The first workshops, events and performances took place between September to December 2021. A classical music concert by The Denman Street Quartet was sold-out. A newly commissioned aerial theatre show from Hikapee Circus Theatre- supported by Arts Council England- attracted more than 1000 visitors over the festive period. A limited 'soft launch, period of events continued as trustees and freelance staff prepared for the regular opening of The Horton to the public in 2022. Audience at the first performance at The Horton Annual Report and Account5- 2021-22 The Horton Young Creatives project was finally able to bring young people aged 10-15 together in person - following post-covid online sessions. They developed creative skills and were consulted on their views for future programming. In a joint activity with Go Epsom {Epsom Business Improvement District) the Young Creatives contributed ideas to a public artwork project in the town centre. Over the course of the year, media coverage and publicity about the project has increased knowledge about the heritage of the site, which is of national importance in the history of mental health care. Post-covid, the charity continues to develop and refine its Business Plan for The Horton as a not-for-prof it venue for arts, heritage and events. Over the reporting period and beyond, the charity has strengthened links with existing partners and continued to develop new relationships with diverse local and regional stakeholders. These activities aimed to ensure our prospective services would not only be in line with our charitable objectives but would be popular and serve a community need. While doing this work, our Board of Trustees, who govern the Society, have had regard to the Charity Commission's guidance on public benefit. The society does not have a material financial investment strategy. Neither grant-making nor social investment form a material part of the charity's objectives. Annual Report and Accounts- 2021-22 Financial Review Grant funding from the NLHF totaling £275,172 was received during the financial year, along with S106 funding of £286,045, all of which was used for capital works, professional fees and activities associated with the completion of the refurbishment works on the building and the opening of The Horton as a cultural venue. Grant funding of £6,891 was received from Surrey County Council Members, Community Allocations for various capital items. A successful application was also made to The D'oyly Carte Trust enabled new artists to use the venue for developing creative works and £3,000 was received during the financial year, to fund activities next year. A grant of £1,000 was received from Tesco via the Federation of Groundwork Trusts to contribute to our landscaping project. A grant of £25,122 was awarded to us by Viridor Credits to go towards materials and equipment for the interior and exterior renovation. This includes acoustic paneling, garden furniture, tools and equipment for maintenance. This funding will be received in the next financial year. Private donations of £5,207 were received. The charity also had success in being selected as a Co-op Local Cause, a scheme through which shoppers can donate to charities. This ended in October 2021 and raised £1,471 for the project. The majority of costs incurred in the year were for professional fees related to the refurbishment works, and for the ongoing capital work on the chapel and its exterior, as described above. At the end of the financial year, the Charity's total net asset value was £2,632,249. Of this, £2,484,424 represents the value of the Chapel itself and other fixed assets. Cash reserves were £147,980 of which £122,135 was restricted funding, leaving £25,845 of unrestricted cash reserves, all of which has been allocated to operational requirements in the next financial year. Annual Report and Accounts- 2021-22 The charity's long-term reserves policy will aim to build cash reserves of 30% to 450h of operating costs once The Horton has opened - the target timeframe for this is within 5 years of the centre opening. There are no current uncertainties about the charity's ability to continue as a going concern. There is no fund or subsidiary undertaking that is materially in deficit. The charity has no pension liability. nor does it hold any material financial investments. The principal risks to the charity during the financial year arose from the collapse of Armfield Construction Ltd and its impact on completion of the construction and refurbishment work according to the professional design team's specifications within the budget from available funding streams. Trustees took legal advice over the administration process, and ensured that professional project managers monitored subsequent contractors closely to ensure the quality of work. Trustees commissioned f urther reports into the viability of connecting the building's drainage to mains services for the removal of both foul and surface water. Although the current on-site water treatment design is effective for current operations, a mains connection remains a medium-to long-term ambition. However, this solution is not affordable under current funding arrangements. Trustees keep a detailed risk register, which is reviewed regularly at board meetings. Now that most of the refurbishment is complete, trustees have identified that the risk profile changes substantially, and becomes more focused on operational matters- particularly that the business plan is robust enough that revenues will be sufficient to service the maintenance and operational costs of the building. The risk of further Covid outbreaks, and the appetite of customers to gather in social spaces will be monitored closely. Annual Report and Accounts- 2021-22 io Strurture, governance and management The charity is a Charitable Incorporated Organisation, and is governed by a Constitution. The Constitution was amended by the trustees in April 2019 and again in January 2020, in accordance with the clauses enabling such changes. A Trustees, Code of Conduct sets expectations for best practice and promote good communication between trustees. New trustees are appointed by existing trustees on terms as set out in the Constitution, which allows for a maximum of 12 trustees on the Board. New trustees are given an induction which involves the provision of key documents, including: Constitution; Code of Conduct," Vision and Values statement; Business Plan and key policies such as Financial Policy and Safeguarding. No other person or external body is entitled to appoint trustees. All key strategic decisions are taken collectively by trustees, who met monthly throughout the reporting period. There was no management team in place for this period, and the Board appointed a Project Manager in an interim role to achieve two key deliverables on behalf of the Board during this period: Manage the completion works for the renovation and café fit-out, liaising with contractors, suppliers etc. on behalf of the Board. Manage the day to day running and set-up of the operations for the charity, including system design, and implementation, reporting regularly to the Chair and liaising with the Treasurer where appropriate. No staff/employees were appointed during this period. r• Annual Report and Accounts- 2021-22 li Plans for future periods The Horton official opening will be held in September 2022, marking a major milestone in the life of the project. The Trustees will now need to focus on maximising the charity's impact and outcomes in its charitable objectives whilst growing revenues to ensure the long-term sustainability of The Horton as a publicly-accessible venue. This will be a considerable shift in focus from a capital works project to setting up and running an Arts & Heritage centre. The Horton's programme will focus on creative arts, heritage and related activities that promote well-being, primarily reaching beneficiaries in the borough of Epsom and Ewell and its surrounding areas. Phased landscaping plans to enhance The Horton Gardens will create an improved amenity for local people, more creative opportunities and a sustainable green space for better well-being. Detailed 4-year cash flow forecasts have been collated to ensure that the charity's reserves will be sufficient for the organisation to remain a going concern, and support the next phase of setting up an operational business. Key Performance Indicators will be designed to ensure that each element of the Business Plan delivers the necessary returns to keep the charity financially stable. As part of the business plan a trading subsidiary will be established, which will allow The Horton to undertake commercial activities that are not directly related to the society's charitable objectives. Annual Report and Accounts- 2021-22 12 Reference and administrative details The charity has the registered charity number 1167510. The charity is registered as a company number CE007433 The charity's registered address is The Horton Arts Centre, Haven Way, Epsom, KT19 8NP The table below shows the individuals who were trustees during the financial year l March 2021 to 28 February 2022 as well as those in post when the report and accounts were approved. Trustee Oate Appointed Oate Resignationl Removal Kandia Appadoo Kirstie Arnould lan Reeves Rupert Salmon- Secretary (Mar 16-Presentl Graham Saunders Steve Trimm Hugo van Maasakkers Gayle Young; Treasurer {Apr 21-Present} Phil Humphrey Sean Kelly Maria Reeves Yemisi Mokuolu | Sophie Wiles- Chair IFeb 21-Sept 221 16 March 2022 25 June 2020 l March 2016 l March 2016 22 November 2018 16 March 2022 31 August 2021 28 May 2020 29 October 2018 25 June 2020 l March 2016 11 June 2019 22 July2020 09 April 2021 22 April 2021 22 June 2021 14 June 2022 7 September 2022 The charity has no corporate trustees. No trustee holds, or has held, title to property belonging to the charity. There were no employed staff during this financial year. Activities were managed, and in many cases carried out, by Trustees volunteering their professional services, supported by freelance consultants reporting to the Board. Freelance consultants and project managers were paid at market rate checked via professional bodies or guidance from organisations such as RICS and Arts Council England. Annual Report and Accounts- 2021-22 13 Volunteers have played an increasingly important role in the charity's operations, supporting the team in a number of ways, including administration, event stewarding, gardening, as heritage guides. Our volunteer bookkeeper has made a significant contribution to the charity within this period. During the financial year we continued to keep NLHF and EEBC informed of our project's development through regular progress reports and quarterly progress meetings. Other relevant organisations: Banking services: Metro Bank, 91a High Street, Epsom KT19 8DR Accountants: Bates Weston, The Mills, Canal Street Derby, DEI 2RJ Independent Review The report from the independent examiner is attached. Trustee declaration The trustees declare they have approved the trustees, report above. Signed on behalf of the charity's trustees Names: Gayle Young Rupert Salmon Position: Treasurer Secretary Date: 27 November 2022 Principal address of charity: The Horton Arts Centre, Haven Way, Epsom, KT19 8NP Annual Report and Accounts- 2021-22 14 Inde endent Examlnefs Re ort to the Trustees of Horton Cha el Arts and Herita e Societ Independent examlnerfs report to the trustees ol Horton Chapel Arts and Herltage Soclety I report lo the charity Iruslees on my examination of the accounts of Horton Chapel Arts and Heritage Society (the Trust) for th8 year ¢nd¢d 28 Fabruary 2022. Responslbllltles and basls of rèport AS the ¢harily Iruslee$ of Ihe Trust you are responsible for Ihe pffjparalion of the accounts in accordance wrth the requirements of the Charibes Act 2011 I'the Acf l- I report in resp8cI of my examination of the Trust's accounts carried ovl under section 145 of the Act an(J in carrying out my examination I have follow8d all applicable Dirgcb'ons given by the Charity Commission under SeCt￿n 14515}Ibl of the Act. Independent examiners statement Since your charity's gross income exceeded £250.OCM) your examiner musl be a member of a listed body. I can confim that l am qualffled lo undertake the examinatlon because l am a registered m8mb&r of which Is one of the listed bodies. I have completed my examination. I confim that no matedal matters have come to my attention in connection wf(h the examination giving me cause to belleve that In any material respect." accounting records were not kept in respect of the Trust as required by section 130 of the Act: or the accounts do not accord wlh those records,. or the a¢¢ounl$ do not Comply with the applicable requirements wicerning the form and ¢onlenl of accounts sel oul in the Charities (Accounts and Reports) Regulations 2008 olh8r than any requirement that the accounts give a true and fair view which is not a matter consKlered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attents'on should be drawn in this report in order lo enable a proper understanding of the accounts to be reached. Wayne Thornas ACA 8ates Weston LLP Chartered Accountsnls The Mills Canal Street Derby DE12RJ Date.. 30 November 2022 Annual Rewrt arKJ Accounts - 2021-22 15 Horton Cha el Arts and Herlt e Socle fFln for the Year Ended 28 Februa 2022 2022 Total funds 2021 Total funds Unrestn'cted Reskn'cted ftjnd funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies 10,678 568,108 578.786 1,178,507 Olher tradiThJ actNilies Investment income 18,074 18.074 Total 568,108 596,914 1.178511 EXPENDITURE ON Raising funds 11.630 11.630 Charltable acllvlties Preseryation of The Horton Chapel 122,179 122.179 31.9 Total 11.630 122.179 133.809 31.9CQ NET INCOME 17.176 445,929 463.105 1.146.611 Trnnsfèrs between funds Not M0￿M0Tht In fund8 15.616 447,489 463.105 1.146.611 RECONCILIATION OF FUNDS Total funds brought forward 6,840 2,162,304 2,169.144 1.022.533 TOTAL FUNDS CARRIED FORWARD 22 456 2 609 793 2 632 249 2 169 144 The notes form part of these financial statements Annual Re￿t and A¢¢ounls - 2021-22 16 Horton Cha l Arts and Herlta e Socle Balance Sheot 28 Februa 2022 2022 Total funds 2021 Total funds Unrestricted Restricted fund funds Notes FIXED ASSETS Tangible assets 2,484,424 2,484,424 2,055.653 CURRENT ASSETS Debtors Cash al bank 10 36,505 122 135 36,505 147,980 16,081 111,148 25,845 25.845 158.640 184,485 127.229 CREDITORS Amounts falling due within one year 11 13,3891 133,271) 136.660) 113,7381 NET CURRENT ASSETS 22,456 125,369 147,825 113,491 TOTAL ASSETS LESS CURRENT LIABILITIES 22,456 2,609,793 2,632,249 2,169,144 NET ASSETS 22,456 2 609 793 2,632.249 2,169,144 FUNDS Unreslricled funds Restricled funds: Chapel renovation fvnd Chapel renovation capttal fund 12 22,456 6,840 125.369 2,484.424 106,651 2 055,653 2,609,793 2.162,304 TOTAL FUNDS 2,632.249 2,169,144 The financial slalemenls were approved by the Board of Trusiees and aulhorised for issue on 27 November 2022 and were swnad on its bèhalf by= G Y¢)ung- Trustee R Salmon - Trustee The notes form part of these financial statements Annual Report and AC￿￿nIS - 2021-22 17 Horton Cha el Arts and Herrta Socie Cash Flow Statoment h Year Ended 28 Februa 2022 2021 Notes Cash flows from operatlng actlvltles Cash generated from operations 15 1 150 144 Nel cash provided by operating actNi1￿$ 466.985 1.150,144 Cash flows from Investlng actlvltles Purchase of tsngible fixed assels Inlefest received {430,207} 11,089,485) Net cash used in investing acliviti8S 430 1531 10894811 Chang• In cash and cash equlvolonts in thg rnporting period Cash and cash equivalents at the beglnnlng of the reportlng perlod 36.832 60,663 111.148 50,485 Cash and cash equivalents at the end of tho r8POrtlng porlod 147,980 111,148 The notes fomi part of these financial statements Annual Report and Ac¢ounl$ - 2021-22 18 Horton Cha el Arts and Herita e Socie Not99 to the Financial Staternents for the Year Ended 28 Februa 2022 ACCOUNTING POLICIES Basls of preparlng thè financlal statements The financial slalemenls of the ¢harity, which is a publt b&nefil entity under FRS 102, have been prepared in accordance with the Charitses SORP IFRS 1021 'Accounting and Rewfyrting by Charities= Stslement of Recommended Practi￿ applicable lo charities preparing their accounts in accordance Wtth the Financial ReForting Standard applicable in the UK and Republic of Ireland {FRS 102) {effective 1 January 20191,, Financial ReF 22.456 Rgstricted funds Chapel renovation fund Chapel renovation capital fund 106.651 2 055.653 426,382 1407.6641 125.369 2.484.424 2.162,304 445,929 1.560 2.609.793 TOTAL FUNDS 2.169,144 463,105 2.632,249 Annual RerM)rt and Accl￿n1$- 2021-22 22 Horton Cha el Arts and Herlts e Socle to tho Financial Statements - for the Year Ended 28 Februa ntin 2022 12. MOVEMENT IN FUNDS - ¢ontlDuod Nel movement in funds. included in the al)ove a￿ as follows.. InccThing resources Resources ex￿nded Movement in funds Unrestricted funds General fund 28,806 {11.630} 17.176 Restricted funds Chapel renovation fund Chapel renovation capital fund 551,073 17,035 {124.6911 2,512 426,382 19,547 568.108 122,1791 445,929 TOTAL FUNDS 596 914 133 809} 463.105 Comparotlvgs for mov•menl In fvnd$ Net movement n funds Transfers be￿een funds At 28,2.21 At 1.3.20 Unrestrlctod funds Gener81 fund 3.930 2,910 6,840 Re$trl¢tod funds Chapel renovation fund Chapel renovabon capital fund 1.018.603 1,143,701 12.055,653> 2 055 653 106,651 2,055,653 1018 603 1.143.701 TOTAL FUNDS 1,022,533 1. 146,611 2.169,144 Comparatfve nel movement in funds. included In the aL￿e ar8 as follows.. Incoming sources Resources Movement expended in funds Unrestrlcted funds Gener81 fund 2,910 2.910 Restrlcted funds Chapel ￿n0val￿n fvnd 1.175,601 131.9)0> 1.143.701 TOTAL FUNDS 1 178511 31.￿0} 1 146.611 Annual Rew)rt and Accounts - 2021-22 23 Horton Cha el Arts and Herita e Societ Notes to the Flnanclal Statements - contlnued lor the Year Ended 28 Februa 2022 12. MOVEMENT IN FUNDS- contlnu•d A current year 12 mnths and pnor year 12 months combined Fosition is as follows.. Net movement in funds Transfers betsveen fund5 Al 28.2.22 Al 1.3.20 Unrestrlcted fund$ General fund 3.930 20,086 (1.$60) 22.456 Restrlctod funds Chapel renovation fund Chapel renovation capital fund 1,018.603 1,570,083 (2.463,317) 2 464 877 125,369 2 484 424 1.018.603 1,589,630 1,560 2.609,793 TOTAL FUNDS 1.022.533 1,609,716 2,632,249 A current year 12 months and pri￿ year 12 months comts'ned net movement in fuTrJs. included in the above are as follows". Incomir resources Resources 8xpended Movement in fur)ds Unrestrlctod funds Genwal fund 31,716 {11.630) 20,086 Rostrlctod fund$ Chapel renovation fund Chapel renovation capital fund 1,726,674 17,035 1156.591) 2.512 1,570,083 19,547 1743,709 154.079) 1589 630 TOTAL FUNDS 1,775,425 165.709) 1.609,716 Restrlctod funds Restricted income includes grants from the Herilage Lottery Fund and Section 106 grant funding. These were granted specifically lo conlribule towards the redevelopment of Horton Chapel and are therefore restricted. Al expenditure through Ihe Statement of Financial Activilies relating lo Ihe redevelopment of Horton Chapel is included within the restricted fund. Transfers between lunds The transfer belw8en the reslrScted and the reslrlcled fixed asset fund represents the net b)ok value of improvernellls to leasehold property as at the reporting date. Annual ReF¢)rt and Accounts- 2021-22 24 Horton Cha el Arts and Herlta e Socle ncial tattmènt for the Year Ended 28 Februa ntin 2022 13. CONTINGENT LIABILITIES Armfield Construction Ltd went into administralK)n in March 2021, leaving signrficant ￿rtionS of the m8in refvrbishmenl conlracl incomplete. A retention of 5% of the total wotk carried out by Armf￿ld was retained by the Charty over the course of the contract, with a final value of £70.148. The adminislralion process is ongoing. and Ihe Charity has raised a counterclaim wilh the administrators lo ￿ ramoved from Armfiald Conslruclion's outstanding d8blors due lo the incomple18 and poorly finished work. We have not had final confirmalioll from the admini51rators that this process has been Completed. and therefore il is possible that this 8mtsJnl may become payable in future. We 8nli¢ip8le Ihal the adminislralion process will be concluded within the next financial year. 14. RELATED PARTY DISCLOSURES M Reeves carried out work in capacity of project manager for Ihe charity. Whilst on the toard of Trustees work lo the value of £10.200 was invoiced wilh a further £24,600 invoiced in the linancial year after reS￿nIng as a Trustee. At the y&ar-tnd thera is £NIL owrKJ in respect of project managernenl to M Reeves. 15. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTivrriES 2022 2021 Net Income for the report5ng perlod las per the Statement of Flnanelal Actlvltles) Adjustments for: Depreciab'on charges Interest received Increase in debtors Increase in creditor5 463.105 1.146,611 1,436 iyi 120.4241 22,922 14) 14,351) 7.888 N•t cash Provid￿ by op8ration# 1,150,144 16.. ANALYSIS OF CHANGES IN NET FUNDS At 1.3.21 Cash flow Al 28.2.22 Net cash Cash at bank 111.148 111.148 36,832 147.980 Total 111,148 36,832 147,980 Annual RekN)rt and Accounts- 2021-22 25