REGISTERED CHARITY NUMBER: 1183526 Har enden & District Local Histo ort of the Trustees and Financial Statements for the Year Ended 31st De￿rnber 2023 Socie Harpenden & District Local Hlstory Soclety Contents of the Financial Statements foi th8 Y•ar Endod 31st December 2023 Page Report of the Twstees Report of the Independent Examiner 13 Slalement of Financial Activities 14 Statement of Financial Position 15 Notes to the Financial Ststemenls 16 Harpenden & Dlstrict Lo¢al History Society- Chaflty No 1183526 Report of the Trustees for the Yoar Ended 318t Decern￿r 2023 The Trustees present their report with the financial statements of trte charity for the year ended 31st December 2023. The Trustees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their a¢¢ounts in ac¢ordance wrth the Financial Reporting standard appI￿able in the UK and Republic of Ireland IFRS 102) (effective 1 January 20151. OBJECTWES The Society's objects as sel out in its constituth)n are to educate the public in the local history of Harpenden and disth"¢t and to undertake research into the origins and development of building5. organisations, crafts. trades and other aspects of historical interest and to publish the resulis of such research. The Sctiety's key objective has been. since losing its former museum premises attached to Harpenden Hall in 2003, to open a permanent Harpenden Museum. The Scciety holds a collection of artefacts and documents relating to Ha￿enden'S history lotalling 1000s of dccumenls", 1 OOS of OS maps of different dates and scales.. 1000s of artefacts. lafge and small-, well over 16000 photos and over 100 onginal paintings. Many of these items were collected for a fvture museum of Harpenden from the early 19C￿5.ThIS collectson is growing and may well develop further now that the Hary)enden Museum has opened. The Society ente￿ into a 25-year lease wth St Albans Cty & District Council for rooms on the lower floor of the Eric Morecambe Centre in Rothamsted Park. Harpenden at a renl currently of £17.5k pa. plus service charge. After fitting out, at the cost of the Society, now completed, provKles a Museum and Archive R￿m, which first opened lo the public in Decemkr 2023. This is a major opportunty to increasing access to our colledion. thereby providing a greater knowledge of local history. The Sooiety's aims, supplementing its objects. have not materially ¢hanged since the 2019 report and can be summarised (though this is not an order of priority) as.. Alm 1: To make a valuable contribution lo Ihe cuttural life of Harpenden and the surrounding area Aim 2: To pro¥￿e an accessib￿ facilty for local history available lo all. Alm 3.. To promote the Harpenden History wEbsrte as a source for all types of leaming for schools. groups. families and individuals Alrn 4: To encourage users to explore the archives for research. This will be greauy enhanced wrth the opening, of the museum Alm 5: To en￿Urage members and the publ￿ to be acbvely invol¥Ed in all the Society's activilies Alm 6: To recruit and train volunteers to assist T￿￿teeS in achieving the Sccbety's aims, part￿UlartY helping run the Museum and its archives Alm 7: To contr'nue to care for, preserve, add to and dc¢ument the collection, to develop a digital version of significant ilerns in the colle¢bon and to publish articles and phoios on the Society's website and in the Society's Newsletter. Alm 8: To maintain long-temi financial sustainabilty Page 3 ACTIVITIES and PERFORMANCE Museum and archive The main tsngible activity of 2023 has been p￿parIng for the fitting out of the Hafpenden Museum and archive in the Eric Moreeambe Centre. David Keen, our curator. led the work on commissioning contractors to fit out the Museum, cataloguing and transferring artefacts from storage and arrangin9 them for display. Rosemary Ross led volunteers on moving archives from Park Hall lo the Les Casey Archive Room alongside the Museum. We have conlinued our programme of monthly meeting5 talks and also our three times a year newsletter. Our website remains an admired source of local knowledge and our archives ofler great potential for study. The Society's long-lenn Business Plan ¢entres on the development of a museum and archive now open lo the public in the Eric Morecambe Centre. The legaey receipt of £673k in 2019 from the estate of the late Leslie Casey nderpins the fi'nancial requirements of the Museum. The Society signed a 25-year lease in late 2021 with Sl Albans District Council for the museum and archive space in the Eric Morecambe Centre. £207k has been spent on the fit out and start-up expenses. The ba58nce will be available, as required, to fund the operation of the Society. the rent and service charges being, by far, the most significant expense. (see Financial Review below) 2023 was the Soth anniversary of the founding of the Society. and the Sooiely has produced an account of the First 50 Years History of the Society written by Gavin Ross. Govefnan¢o roview Roger Butterworth, a former local eoun¢illor with useful contacts and experience, was appointed as a new trustee and as Chairman mid-way through 2023. With the Society being on the verge of opening the new Museum, the Trustees took the opportunity, led by the new Chairman, to conduct a thorough review over a period of months of governance comprising.. Acknowledgement that the loss of the first museum 20 years ago and since then the lack of an adequate base for public access has been a handicap, as was the pandemic, that it is no mean feat that the Society. with its artefacts and archive. has been kept intact over the 20 years and that, thanks to the generosity of the late Les Casey, the Soeiely now has a Museum again, which underlines the imperative for the Society now to make the most of ils opportunities.. Strengthen the Trustee body, and ils effectiveness with expanded operations, bringing in relevant experience and further enlhu5Iasm for research, expand opportunities for netmorking in the local community and raise the profile of the Society.. Review of longevity of Trustees and offi'ces held- succession planning., Review of skills and expett'se of Trustees or key volunteers.. Appointment as a Trustee of Jeff Phillips, chaimian of the Harpenden Society.. Adopting criteria for appointment of Trustees, in essence being team players with complernentary skills and experienee, each with the ability to share in the overall govemance role in relation lo duties and ￿SponSibl11t1eS of a charity Iruslee and contributing towards having a fully functioning core team of Trustees", Consequently, appointment of three further Trustees., Review of the Conslitulion, with a small number of technical changes having been adopted, with more extensive changes proposed for 2024 AGM, lo which, to the extent necessary. the Charity Commission have given their approval., Page 4 The changes made enabling the Society to have invrted Annie Brewster, High Sheriff of Hertfordshire in Nomination 2024-25 to be Patron and Fiona Gaskell. Mayor of Harpenden 2023-24 to be Honorary PresTrdent, each of which having accepted such position- it is proposed that the position of Honorary President will be hekl by the Town Mayor from year to year.. and wrth the expanded Trustee bc>Jy, the opportunty has been taken to create an Audit. Finance and Risk Committee. to include Investment. Compliance and Insurance, to 5UPPOrt the Treasurer and balancing Ihe desire for good governan￿ need for pragmatism appropriate to a srnall charity.. The Trustees reexplored its eharitsble object and its principal aim - namely. taking the essenee of the object, 'to odueate the publlc in the local history of Harpenden and distiicf and of Aim 1 "To make valuable contribution to the culturnl Ilfe of Hary)enden and the surroundlng area". and in fvrtherance of those". Accepting that the opening of the Museum should not be seen as an end in itself., the Society needs to plan, nol only how to make the best of the Museum and archfjve. but also what more can be done by the Society and what should be done drflerendy.. and A¢cordingiy, the Tfustees are relaunching the Sc£iety, in essence, to become more proactive in reaching out to the public and re-energising and extending the depth and range of our aotivilies to benefft the communty. and Though advances are [￿eSSarilY dependent of surtably experienced volunteers coming forward, the Trustees have begun reviewing the operab.ons of the Sc¢iety seeking improvements and efficiencies in line with developments ol best practi¢e, including in IT and cOmmun￿bOn$ (website and social medial. The Society has become a member of The National Counul for Voluntary Organisations and has adopted the Code of Ethics for Museums of the Museums ASSc￿￿￿t*)n. Local Hlstory Open Day - 20 April 2024 In the autumn of 2023, extensive planning had begun for an official opening of the Mu5evm on 20 April 2024, when, with the kind permission of the Eric Morecambe Centre management, the Society will be ublising the entire EMC in Rothamsted Park as a Local History Open Day, to annouTr￿ the presence of the Sociely. including that of the Museum and archive. to ￿$￿Ients and to broadcast the breadth of acts"vibes available to engage with our local history. The official opening will be conducted by Annie Brewster, HwJh Sheriff of HertfcKdshire in Nomination. We aim lo include activities encompassing a competition for children, exhibitions of historical artefacts. plans and documents, from a range of exhibitors, both the Society and other organisations, and tslks on loeal history topics. The event, requiring a Sot of organising, is a challenge for the Tnjstees and will only be a success wrth extensive volunteer help from members and othefs. In addrtion to going towards the obiectNe of educating the public, it is hoped that the event will lead to significantly increased number of members. Medium terni oblo¢tlves Apart from Ihe opening of the Museum, free to the public, and steps towards the 20 April Open Day, enhancements In the Society's regular activities may have to wait until after the 20 Apn"l Open Day. but the Trustees aspire over the next years to". Usual. or possibly enhanced, monthly talks- Oulreach to school chiklren." Out of town visrts: Augmenting our publicationslleafietslbookfets: Page S Use of video recordings,. Enhance(I navigation of our website, lo include more current activities, and use of social media.. Improved liaison with other Town societies, for example, Harpenden Society. TASHA and TASHE, as well a5 Rothamsted Research., Improved I￿lSOn with OUt￿f-TOwn sccielies, for example, Wheathampstead Local History S(Kiely and Redbourn Museum,. and Ideally, our own High Street guided walks, as cur￿n11Y led by St Albans Guided Walks team, in addition, rt is hoped, lo significantly increased number of members. research8rs and volunteers. Longer torm oblgctlves Include: Working towards regaining fom)al museum accredilalion., Developing sponsorships as a source of income.. Further Objects lo be developed after, and in the light of, the 20 April Open Day Charltablo Status Ind publlc b8n&fll The So¢iely is a charitable incorporated organlsalion ICIOI registered on 22nd May 2079 with limited liability in England and Wales with the Charity Commission under the Charities Act 2011 with charity number 1183526. Its website 1$,. w -hi The Society provides opportunities for the wider community lo secure greater knowledge of local history, and the publtc outreach will extend as a key part of our educational and hentage-understsnding role The Trustees confirm that they have referred lo the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the chanly's aims and objectives and in planning fvture activities. The Trustees consider that the Sooiely is charitable both in rts intention and practice and provides subslanlial public benefit lo the local community and the public. Mernber8hlp Al the end of 2023, there were 24012022 - 2361 members at 189 addresses12022-186 addresses) - joint memberships being at a common address, 70 members attended the AGM in November 202312022- 44). 11 is proposed in 2024, and beyond, lo hold the AGM earlier in the calendar year than previously. The Trustees believe that the annual membership fee for 2024 al £15 for an individual and £20 for joint members, represents excellent value for money for the evening meeting talks and newsletter and, of course, membership income goes towards funding the Society., the Museum and website being available to the public without charge. The Society does not have any employees. so it wholly dependent on its Trustees, members and other volunteers. FINANCIAL REVIEW Flnanclal po$itlon The financial results for the year are shown on pages 13 to 22. Having converted to a CIO and, although gr05s income has not exceeded £250k in the year, Trustees have Chosen to continue lo prepare the a¢¢ounls for the C￿￿ent year on an accruals basis. AS the Society is no longer a 'larger charity. (income over £SOOk), annual accounts are accompanied by this Trustees Annual Report, bul not a cash flow slalemenl as this Is not required. The a¢¢ounts have been independently examined, bul no audit is required. Page 6 Totsl Income for the year amounted to £21,04312022 - £17.577) of which., £15.238 (2022 - £14,273) was generated by investment income (see note 41 and £5.536 from membership subs¢riplions12022 - £3,170). Realised gains on disposal of investments were £Nil dunng the year {2022- £1,258) which, with the surplus on fevalualion of investments al 3151 December 2023 of £22,63012022 - deficit of £72,389), resulted in an overall net surplus on investments of £22,63012022 - deficit of £71.1311 as shown on the Slalemenl of Financial Actsvities. Overall unrestricted expenditure for the year amounted lo £36.64012022 £14,365). Of this total, £3,534 12022 £3,744) related lo investment management fees, £20,941 to the museum operating costs. including rent and service charges12022- £4,647) and £7,351 to the depreciation of Museum assets12022- £2,572). See Notes 6 and 7 for a fsjrther breakdown of Gosts expended. Trustees ackn¢jw￿ge the impacts of continuing global and national economic pressures and, more significantly, the commencement of rental and service charyes under the lease of the Museum and note that operational financial status of the Society has deteriorated during 2023 with an operating deficit for the year of £15,59712022- surplus of £3,212). Membership income has improved markedly primarily as a result of member donations in support of the opening of the new Museum with little membership loss. Expenditu￿ has risen markedly {and as expe¢tedl by £22,275 due lo the commencement of propety cost payments and depre¢iation as a result of entering into the new lease for the Museum (see Note 61. Such deficits are in line wrth the Society's recently revised longer-tem) finance plan. Most importantly, and in line with the global reductions in investment valuations, our long-tem investments have recovered some of the deficit experienced in 2022 and Tnjstees are monitoring the position regularly while market conditions remain highly volatile. It is to be noted that to dale, investment income generated by the longer-temi portfolios has been re-invested but, by Spring 2024, the Society will need to drawdown this income lo help pay for the fixed costs of the Museum. Additionally, small and manageable amounts of capital will need lo be drawn down lo ensure that the new expenditures can be financed. Sarasin are comfortable with these underlying assumptions which will be embodied in a new long-lerm finance plan lo be discussed by Trustee5 in the early part 012024. The overall surplus for the year was £7,03312022- deficit £67,918). Ro$er•es poll¢y The Society's Financial Reserves Policy deals with the unrestrirted General Fund. Other Funds, detailed in these accounts, bul which do not form part of Reserves for purposes of measurement of the Financial Reserves Policy below are.. Museum Development Fund IDesignated} Balance5 and movements (including Iransfersl on all these Funds are shown in Note 18. Goneral Fund As a charity with a range of activities, the Society aims to hold sufficient liquid reserves in the unreslricled General Fund lo cover up to six month's expendfgure of a non-discretionary nature (excluding depreciation). Any SIgn￿rICant reduction in gross income, that the Twstees considered likely lo be pemianent, will activate cost reduction measures. Trustees remain comfortable with a policy Ihat establishes a range of cover behveen 25V/o and 50Yo of the annual expenditure levels as defined above. In framing this policy, Trustees are mindful of establishing the ¢orrect balance betsveen financial pwdence and properly expending fvnds raised for the Society's charitable objectives. Forward forecasting is very difficult at present due to ongoing global uncèrtainties bul the Society is cU￿ently, as mentioned above. preparing a new longer-lerm finance plan which TrLtslees are confident will show that the Society is more than capable, by using its considerable reserves, of ensuring that the forward liabilities under the new MLsseum lease can and will be satlsfied. Page 7 At 31 December 2023. the unrestricted General Fund balance (after transfetsl al £29,472 (see note 181. is in line with that required by the Financial ReseNes Policy with no requirement this year to transfer funds to the General Fund from the Museum Development Fund. De8lgnatod Funds As mentioned above. the Society opened rts new modem and excib'ng museum in the new Enc Morecambe Centre. Al 31st December 2023. the Society has circa £500.301 {2022 - £522,388) of longer-tem investments, short te liquid investments and free cash reserves, having expended £36.5065 on the acquisition of tangible fixed ass9ts during the year. The support of the museum community, such as Herts Association of Museum$ and the St Abans Museum Service, will be important in assisting the Society in the process of establishing the mu¥eum. The grant of a 25-year lease from 24th November 2021 from Si Albans Distnct cour￿11 ensures protection ol the Society's capital investment and the ongoing servKe provision lo the Town. Ongolng i•vfrnuo fundlng As mentioned above, the now agreed property costs for the museum reflect the'community value, of the new facility and the Society is confident in committt'ng to such a level of annual charges by utslising the Museum Development Fund. Crucially, the balance of reSOu￿e$ from the 2019 Wcy prompted the introductson of an Investment Policy. Annual returns in the region of 3 25% (gross of charges) are anlicipaled in the longer term from the remaining investments having paid for the Museum Frt-out. 11 Is believed that Ihis is realislic based on targets agreed with our investment managers. Inv•8tment Poll¢y The bequeathed fvnds have now been invested and their application has been needed in 2023 and onwards to finance the remaining initial caprtal costs of developing the Museum but also funding the ongoing additional revenue obligations of the Museum. The r￿elpt of Ihese funds in 2019 requi￿￿ the So¢￿ty lo develop an Investment Policy to secure appropriate retums on the capital not Immediately required but with a $imilarfy appropriate level of investment risk. The developed and approved policy is as foll¢)wJ'. Under the constitution of the Society the Trustees have the power to.. - deposit or invest funds. omploy a professional fund manager,. and arrange for investments or other propety of the charity to be held in the name of a nominee. The basic prineiple goveming Trustees. decisions about Invests"ng the Society's funds is that a prudent approach musl be taken and that Trnstees seek to sth'ke the nghl balance bets¥een'. - 1. providing an income lo help the Society to carry out rts purposes effecb.vely in the short temi to medium lemi and maintaining and, if possible. enhancing. the value of Ihe invested fiJnd$. $0 a$ to enable the Society lo effectively carry out its purposes In the bnger temi. The approved Investment poI￿Y seeks lo address the following consKlerations.' - 1. the need for enough resour¢e$ for the Sedety to carry out its present and future actiV￿.e5 effectively,. 2. the level of acceptable nsk and how to manage it. Page 8 The Society wishes to maintain financial resources that provKJe a stable foundabon for its current and future operational activities and support the related cash flow requirements. In addrtion. the Society has requirements from time to time for capital for ad-hoc projects that fall within rts strategic objectives. 11 is lo be rK)ted Ihal the Society entered into a discretionary client agreement with Sarasin Partners in July 2019 to appoint Sarasin lo manage the bulk of the Scciety's investments in accordance this investment poI￿y, Trustees undertake regular r&views wth Sarasin to ensure that the agreed investment parameters are bein9 met over the longer lem. Financial resources shouhd be maintained in cash or equivalents at a level equNalent to the working capital required for the C￿￿ent year. The Treasurer will prepare a ￿Venue1captsI budget and cash fftNI calculation in December prior to Ihe start of each financial year, based on relevant operational and financial infomatson developed by the Trustees." wilh due regard to any higher risk forecast cash flows. This calculation wll cover unre5tr¢ted (including designaledl activities for the period. As mentioned above. a new long-lemi finance plan has been prepared and does not expose any material financial fisks that cannot be adequately ¢overed by the Society's existing financial ￿ourCes. The Society holds £6.200 of b8nk deposrts at 31st December 202312022 - £62,677). See notes 13 and 15. Funds required for thè medium-tem is to be held primarily in bOnd￿gl1ts or investment vehicles designed to hold medium lemi fund¥. The medium-tem requirements are to be reviewed on al least an annual basis by Trustees to ensure th* sufficient funds ar• in place to meet strategic plans and lo ensure a level of buffer lor nsks considered by the Society as part of ils regular review of risks. £225,000 of the monies recewed from the estsle ol the laie Le51￿ Casey were placed, in August 2019. into the Sarasin Income and ReseThes Fund, wh￿h has investment parameters matching those outlined above. Current inveslmenl value £174,891131* December 2022- £ 165,861 )- see note 12. After a material drop in inveslmenl value in 2022, this improvement is welcome but the kinger-lerm trend rellects what is haP￿nITrg in the global bjnd markets and this is being very closely monitored by Trustee8. fun Remaining financial resources should be invested in a spread of asset classes (primarily equities) lo general8 an incorne for the Society plus a level of capital appreciation in the temi. These financial reserves would be exposed lo volati1￿ in the financial markets However, as they would not be required in the short to medium-lem. the Society will not be forced into a sale in a drfficutt market. £225,000 ol the monles received from the estate of the late Leslie Casey was placed, in August 2019, into the Sara5in Endowment Fund which has inveslmenl parameters matching those outlined above. The current investment value is £319,210 (3111 Oecember 2022 - £293.8501-see note 12. this Improvement is welcome. Page 9 STRUCTURE, GOVERNANCE AND MANAGEMENT Govornlng document The charity is governed by its constitution as a CIO last amended on 28 November 2023, available at https.'/kn.harpenden-hislory.org.ukJour-societyllegal-and-reporting/conslitUt￿n Oryanlsatlonal structure and management The Society's principal offi'ce and correspondence address is The Eric Morecambe Centre. Rothamsled Park. Harpenden, Herts AL5 3FR Trustees are appointed and re-appointed by the Annual General Meetsng as ￿qUired by the ¢onstilulion and behveen limes by the Trustees, Rlsk management The Trustees have a duty lo identify and review the risks lo which the chanty Is exposed and to ensure appropnate controls are in place lo provide reasonable assurance against fraud and effor. The Trustees regularly examine the principal areas of th8 Society's operations and eon5ider the major risks face(1 in each of these areas. The Society believe5 that il has addressed Ihe four key areas of risk and sustainability., Funding of the Capital and revenue costs of the new facility Succession planning for k8y pèrsonnel Volunteer development more generally Increased access lo the collection by the community without charge, particularly youngèr residents. Progress on continuing lo implement these programmes will b8 constantly monitored by Trustees. Al the Trustee meeting on 121h December 2023, il was resolved that an Audit, Finance and Risk Committee be established for ongoing financial governance with ils chairman being J Phillips. who is also chairman of th8 Harpenden Society. See below for membership of the Committee REFERENCE AND ADMINISTRATIVE DETAILS Reglsterod Charlty numbor 1183526 Prlnclpal address Harpenden & District Local History Society The Eric Morecambe Cenlre, Rothamsled Park Harpenden Herts AL5 3FR Page 10 The details of principal officers and Trustees are shown below Princlpal Offlcors Annie Brewster. Cllr Fiona Gaskell. Roger Butterworth Roger Butterworth John Bristow Patron. High Sheriff of Hertfordshire in Nomination, 2024-25 Honorary President, Mayor of Harpenden. 2023 Chairman lappointed Chairman 19th September 2023) Actin9 Secretary {appJinted Acting Secretary October 2023) Treasurer . The Patron and Honorary President are not Truslees. 11 is expected that the Mayor of Harpenden from year to year will be Honorary President, so the Honorary President would change in May of each year. Trustoes seNing durfng 2023 or up to th• date of thls report Roger Butterworth Chairman and Actsng Sec￿tary (appointed Trustee 4th July 20231 Christine Brislow John 8ristow" Pamela Doran David Keen Janet Keen David Kendall - Jeffrey Phillips - Gavin Ross Rosemary Ross Philip Smrth . John Wassell Treastsrer (appointed 12th December 20231 (deceased 3¢y October 2023) (appointed 12m December 20231 (appointed 19th September 20231 {Chaim)an to 1W Septemter 2023) {appointed 1Y 0￿mber 20231 . Member of the Audil, Finance & Risk Committee Bankers Lloyds Bank plc Business Banking BX1 1LT Investment Manage Sarasin Partners LLP Juxon House 100, St. Paul's Churchyard London EC4M 88U TRUSTEES RESPONSIBILITY STATEMENT The Trustees are ￿ponsible for preparing the Rep)rt of Ihe Trustees and the financial slatements in accordance with applicable law and Unrted Kingdom Accounting Standards {United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales, the Charities Act 2011, Chanty IAccounts and Reports) Regulations 2008 and the provisions of the constitution fequires the Tnjslees to prepare financial Statements for each financial year which give a true and fair v￿W of the state of affairs of the ¢harty and of the incoming resources and application of resources, including the income and expenditure of the charity for that period. In preparing those financial stalements. the Trustees are required to select suitable accounting w11c￿ and then apply them consistently; observe the methods and principles in the Charity SORP; make judgements and estimates that are reasonable and prudenL Page 11 prepare the financial statements on the going concem basis unless it is inappropriate lo presume that the charity will continue In business. The Trustees are responsible for keeping proper aeeountr.ng records which disclose with reasonable accuracy al any lime the financial position of the chanty and to enable them to ensure that the financial statements comply with the Charitie5 Act 2011. the Charity IAccounts and Reports} Regulatsons 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the chanty and hence for taking reasonable steps for thè prevenb.on and dete¢bon of fraud and other irwularrties. Approved by order of the Trustees 13th FebTuary 2024 and signed on its behalf by.. R H Butterworth, Chaiman Page 12 Re ort of the Indè endent Examinor to the Trusteos of 8nden and District Local Hlsto Soci I report to the trustees on my examination of the accounts of the Harpenden and District Local History Society for the year ended 31st December 2023. As the trustees of the chanty. you afe responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 20111'the Act'}. I report in respect of my examinab.on of the Society'5 accounts carried out under secb'on 145 of the 2011 Act and in carying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145151{bl of the Act The charity's gross income did not exceed £250,000 in the penod but I can confimi that l am qualified to undertake the examination by being a qualifRd memter of the Institute of Chartered Accountants of Scotland I have completed my examinatson. I confimi that no material matters have come to my attentson in connection with the examination giving me cause to belEve that. in any material respect 1. the accounting records were r￿t kept in respect of the Swiety as required by se¢lion 130 of the Act; or 2. the accounts do not accord with those records.. or 3. the accounts do not comply wth the applicable requirements Gonceming the fom and content of accounts set out in the Charities IAccounts and RepM)rtsl Regulatsons 2008 other than any requirement that the accotsnls gNe a true and fair vmv which is not a matter considered as part of an indeFendent examinab"on. I have no concerns and have come across no other matters in connection with the examinats'on to which attention should be drawn in this repo order to enable a proper understanding of the accounts to be reached. Si9ned.' Name.. Haffy Stalker Downie Institute of Chartered Accountants of SCo￿and.. Address". 66. Easlmoor Park Harpenden. Herts AL5 1BW Page 13 AAPENPEN AIIDQISTRKT LOCAibxsfoRYsor srAIEMEIIT OF HNAfrIOALAcrr FOR THE YEAR TO 31Jt IXQM8Efl 3VIZIZ012 Totsl fvnds nth hKome•nd endoAThErt5froffl: Dw4tions ènd le831￿5 Ot￿rtradIng act￿th Inve51mntlKon* and Ir*eost Othèr S536 1170 134 14,273 15.238 Tot•1 in¢vrnlw resouices 21.043 17.577 Exp¢Nliture pn (harknble ArtNilYs chamab1eac￿tyes 14,365 T•tsi ewd4iure 14,3&5 Net IKoth*llexpendltml lof t￿?•￿￿)￿ 1155971 1212 Net g•irsll1055esl on In4*S￿nts 14 Ilet IKowlltxpendltwel ?￿35 167.9181 Recontill*tlon of Total fvThdsbwoyht loTh¥ard 69U26 162.744 T•tsifvndscaMled foNv•r The sraternent rrffiwKial actiwtie5 •118airfj k6SQ5 re(￿rISed1￿ The Dote5 4Jn p38e$ 1&22 forni￿rtra ￿se t￿￿￿￿715￿￿1effOrfs Page 14 411PENOEII AI1Dcim￿r LOCAL HIsYOAYSOO￿y 5TATEMENI OF RNANOAL POSlfK)11 T31St OEIEMNEA 2023 JVIIIIOZI Totol Uvrthikt•d tunds 3y1212022 fvthds FIKed •wets Ta￿l￿e •55•ts HeritsBÈ èssets Invè5tnwnt5 heldfty rrw y••t 197,161 168,( 12 494,101 459.711 627 717 (urrqnt DeblW5 Irr4e5tn*nt5 hEldf(rf les¥ I￿n on•ye•r Cash at bank and Ih hand 5,763 5.516 13 6,2CQ 62,677 11,963 6B,193 ￿￿110￿.. ItThJ¥ntil4llni d¥• wllhln on• y••r 17 1,366 olth•lh4rhv Lknv•#rktqd IB 701.8S9 694,826 701 Th•fln•nclal It•t•mtntlWM •ppiav•d by the Bo4rd olTiwMM l￿d i¥thorlt•d lor knw•on 13th F•bwuary 1014 w•t• *n•d on Iti b•hbff bv.. N J ￿lIt0*- Tru#e••nd Tr••wr•v The nrt•s on ￿&¢5 1&22 frrfm of ￿se finincl•l starertris Page 15 Har enden and District Local Histo Notes to the Financial Statements or the Period ended 31st December 2023 Societ 1. ACCOUNTING POLICIES Ba818 of preparlng the financlal 8tatement8 Harpenden and District Local History Society was registered with the Charity Commission of England and Wales on 22nd May 2019 as a Charitable Incorporated Organisation Association (No. 11835261 and these accounts are prepared in accordance with the Charities SORP IFRS 1021 'Accounling and Reporting by Charities.. Slalemenl of Re¢ommend8d Practice applicable to charities preparing their 8ceounl$ in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland IFRS 1021 leffeclive 1st January 20151,. Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Charities Act 2011. The financial statements have been prepared under the hisloriGal Gost convention. Harpenden and District Local History Society is a publi¢ benefit entity under FRS 102. In¢ome •nd oxpondltur• Income is a¢counled in the accounting period lo which il relates providing that any unpaid income at the end of each accounting penod is considered by Truste85 lo be fully recoverable. Income from interest and dividends is included in the accounts when certain and the amount recèivable can be measured reliably. Income from gains and losses includes any realised gains or losses on the sale of investments and any gain or loss resulting from revaluing investments lo market value al the end of the accounting period Expenditure is accounted for on an accruals basis. Income lax is ￿COVerable from the HM Revenue and Customs on Gift Aided donation5, and is accounted for on an accruals basis. Expendllure Liabilities are recognised as expenditure as 500n as there is a legal or conslruclive obligation committing the charity to that expenditure, il is probable that a Iransler of economic benefits will be required in settlement and the amount ol the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified und8r hèadings that aggregate all c051s related lo the category. Where costs cannot be directly attnbuled to particular headings they have been allocated lo activities on a basis consislenl with the use of resources. The trustees have reviewed the disclosure of charitable activities costs in the accounts. In their opinion, the Society has only one overall activity for accounts disclosure purposes. Allocallon of costs Costs are allocated to the specific fund to which they relate. Tanglble Ilxed a88ets18•0 noto 111 Museum Leasohold Proporty The Society has entered into a long-term lease for 25 years with St Albans Distn'ct Council commencing on 241h November 2021 for 1100 square feel of space in the Eric Morecambe Centre in Rolhamsted Park, Harpenden The initial rent under this lease is £17,500 per 8nnum until the first review in November 2031 at which time the Tent will increase by a maximum of 30k. Additionally. an annual service charge is payable under the terms of the lease commencing at £2.500 wlh annual reviews linked to movements in the Consumer Price Index. Expenditure incurred, since 2021, on acquiring and improving the leasehold premises has been capilalised in the sum of £38,298. Of this amount. £24,417 represents improvements undertaken and £13,881 represents legal fees and disbursements incurred in negotiating and completing the legal documentation required. Depreciation on leasehold premises is being provided al 4% per annum on a slraight4ine basis Page 16 Har enden and Di Iricl Local Histo Notes to the Financial S ements for the Peri ended 1 Decem cie r202 1 ACCOUNTING POLICIES ICONTINUEDI Tanglbl• flxod as¥ots (contlnued) Flxtur88. flttlng8 and oqulpmont Expenditure on fixtures and fittings is being capitalised and. since 2021, a total of £158,205 has been expended on the contract lo filryout the Museum and lo install a roller racking system in the Archive Room for the Museum. This expenditure is being depreciated from the date the Museum came into use 123td February 2023110 the end the Lease on a slraight-line basis Depreciatson on expenditure on equipment is being provided at 10% per annum on a straight-lin8 basis. Taxatlon The Society's surpluses are derived from, and are applied towards, the maintenance of Charitable activities and a$ such are not subject to taxation. Fund accountlng Details of the nature and purpose of each fund 1$ set out in note 18. Invo•tment• Fixed asset inveslm8nt$ in quoted shares, traded bonds and similar investment$ are valued initially al cost and subsequently at mark8t value at the year end. Investments held for resale and cash or cash equivalents with a maturity date of le$$ than one year are listed as current asset inveslmenls. Page 17 HANPENDE14 AIID LX5TRKTiOCALIMWOftY50tEry NOTESTO THE mANOALSTAIEME14T51(OAT*IIAOI FOR YHE YEAIt TO JI# Dt(EMWtR 1021 31111110ZZ Total Lknr•#rkt• fvnds Total 2. tK)riATKIN5 AIIOIEGA(*S Mert*tship Inc￿ lax relur Glfts and donètir Leiacles received 533 435 51ft5 and Jvw JIIIv20ZZ br•rtikt•d fvnds 3. OMR TRADWG ACfMTIE5 S*lts d Ilt•Trtyr¢4nd wtlc4br 269 JVI¥2012 Total UnweJtrki•d UTrr•rtrlrted fvndi •. INVÉSTMIIIT In￿￿$1 weivaL4e on SJr•51nÉndwMnt Fund 103 S3 37 41 Inttre5t ie¢Èivat4tw 8l•cknrK* Lityidity IrKcff ank 6frF¥)sit Iweresi Oi¥hlerth ar￿ IrfftJlrrMr I￿.5•￿SIn *temilth¥s 15,021 14,1 5. OIARifAOLE ACTMrffs com Co#s Chadtable 31514 5.116 5116 The not•5 on pait$ 1&22 ftyrn Nrr of rtr*5e Page 18 IiARPENDEN AND tMSTRicf LOCAIHLSTORY500ETr NOTE5 TOIHE FINI￿0AL sfATEMEIIT5 ia)NTh4UED) FOR THE YEAR TO 31rt DE(EMOER 1023 4ViiiZ02J JVi¥Z021 unrexrlcE•d Iwids tettrlct• DIAECT COSTS OF 014RITA8LE ACIMnEs Qurn costs rvnt•rA sgrylce thary4sl Pkneurn a55ètS L*weci411on Meetings exwnses Web51te tosts Cosu of nHlntsinln4 the collecti PvWicatlon5 ctssrs Nthslttterca5ts 20,941 7.351 1.439 240 4.617 2,572 1,4?6 24K) 432 602 537 Ji 7. $WPORTO)m Sypport M4nu•rn¢Trl 456 1,534 5.126 451 TrU5TEf5' rtfNIWIERATP)N AND JEN¢FITS I￿rn **r• notrwt•d' exwn¥15 ￿ld the STAFF COSTS lbe￿wer• dwin8 th• F•rf•a IQ COWAUIWES KIR STATÉMENT OF NNIN(IALAcfpiiTYéS lun05 a￿ ill un￿li￿n¢d, cthYyr•tfv* fiiures •f¢ 5Ptt4mtsiiht f*ce st*teff*rrtof Ilna￿lI1 ir11￿tieS ato rthes on wi¢1 1&22 fm 01th15• flMrKl•l st¥ts￿r Page 19 {4ftPE14￿N AIID ThSTAKT LofJL MLSTORY50a NOIESTO THE HNANaAI STATE1￿1$ iaJm71NL￿D) FORIHE YEAR TO 31st DECEM8EA 1013 IL TA14GW FLYEOA%5ET5 Tgt E4vlprnwrt Flttlnqs C05T at 15tJanL¥ry2023 2A126 17or 327 36.179 3&5C6 at 315t Eiecomi*zoz3 207 231 DEP*EOAI*)N atistl•r￿￿ry 2023 L679 2,719 Charve lor1￿ ￿{r Isa2 1073 4746 7.351 at315tDeceth Z023 3211 2113 Iro7Q 14ET BOOK ¥ALi at315l Oecember2023 153 459 197 161 at 3ts1 Deceffthr2022 S(Kietyerrtered intoa least￿th StAt0M ￿$VICtC￿YKil ￿24th Fenc￿ll25￿r5 at an INti•i fÈnrrf£17.5 tET annurn plus èn initsal Sè￿1¢e Ihai¥ed£2.5rL). rèntsi *ill in NorfèYé*r2031 ar4 a¥ry irE•tUWmS I& RELATfDPARTyTA￿1SAC￿Ms The ntrts (x)¢¥ie$ 1&22 lorffi Pjrt of these finaNial sratenw Page 22