BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **BRIDGE ESTATE** 


## **ANNUAL REPORT** 

## **for the year ended 31 March 2022** 

**Registered Charity Number: 220716** 

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BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **CONTENTS** 

## **Page Details** 

- 3 Report of the Trustees for the year ended 31[st] March 2022 

- 3 Objectives and activities for the public benefit 

- 4 Strategies adopted in the management of the property portfolio 

- 5 Achievements and Performance 

- 6 Financial Review 

- 7 Plans for future periods 

- 8 Structure, Governance and Management 

- 11 Reference and administrative details 

- 12 Responsibilities of the Trustees 

- 13 Statement of Financial Activities 

- 14 Balance Sheet 

- 15 Notes to the financial statements 

- 24 Independent Auditor’s Report 

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BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2022** 

The trustees present their annual report and financial statements of the charity for the year ended 31st March 2022.  The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s trust deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland. 

## **OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT** 

The maintenance and repair of Trent Bridge and approaches remains the primary objective of the charity. Trent Bridge is the major vehicle communication route from the south of the City and is critical in bringing economic benefit to the City. This is increasingly important in light of the downturn in the global and national economy. The bridge is open to the public at large, assuring public benefit on an open access basis. There are no restrictions regarding the members of the public who may use the bridge and no fees are charged. 

The Trustees’ Annual Report for the year ending 31 March 2022 confirms that any residual income is applied to the Trust’s charitable objectives as defined below, this includes the improvement of the City of Nottingham in support of the Council’s aims and objectives, as set out in the Council Plan and Medium Term Financial Strategy. This is delivered through the maintenance and protection of the Trust’s portfolio of income producing assets. 

A proportion of the surplus income generated by the charity is transferred to Nottingham City Council’s (NCC) General Fund and is used for the benefit of the citizens of Nottingham. As referred to above, the surplus contributes directly to the delivery of Nottingham’s priorities as set out in the Council Plan and enables the Council to provide the citizens of Nottingham with effective and efficient services. Further surplus income has been retained in the Trust for investment in its portfolio. 

The Bridge Estate fixed asset portfolio will be actively managed to secure new investment properties, increase income and reduce risk in an uncertain market. 

The Bridge Estate’s transfer to NCC’s General Fund also represents an equivalent saving for Nottingham citizens who pay council tax on a Band D property of £14.81 (£18.29 2020/21). 

The trustees confirm that they have referred to the Charity Commission’s guidance on public benefit when reviewing the Trust’s aims and objectives. 

## **Objectives** 

The initial sole objective of the Bridge Estate was the provision of funds for the maintenance and repair of Trent Bridge.  However, by the late nineteenth century the income generated by the Estate was in excess of that required for maintenance of Trent Bridge and consequently the objectives of the Estate were extended by virtue of section 78 of the Nottingham Corporation Act 1882. 

The Bridge Estate’s charitable objectives are now threefold: 

1. To provide for the efficient maintenance and repair of Trent Bridge and the approaches to it. 

2. To provide a contingency fund for the possible construction of such new bridge or bridges over the River Trent as may be found necessary or desirable. 

3. To apply the residue of any income as the trustees thinks best for the improvement of the City of 

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Nottingham and the public benefit of its inhabitants. 

## **Main objectives for the financial year 2022/23 -** 

1. To ensure the necessary financial provision is available if required to provide a vehicle and pedestrian communication link for the City of Nottingham via Trent Bridge. 

2. The continued development of the Trust’s property portfolio with a view to minimizing the risk of exposure to adverse economic conditions and protecting and increasing its income and capital value of its assets. 

3. Surplus revenue generated by the Charity to be invested through NCC to support the City Council’s aims and objectives for the city as set out in the Council Plan and the Medium Term Financial Strategy. 

## **Strategies adopted in the management of the property portfolio** 

The Bridge Estate’s stated objectives of setting up a contingency fund for the maintenance and repair of Trent Bridge and to accumulate a fund to build a new bridge, should this be necessary, is effectively met by the management of the property portfolio.  In practice, although properties could either be sold or mortgaged to fund such expenditure, the current local government context means that there are more efficient and effective ways of raising the funds required to maintain or to replace Trent Bridge.  NCC is able to earmark funds from the Local Transport Plan for this purpose and substituting Bridge Estate funds would unnecessarily run down the value of the portfolio.  Trent Bridge forms part of the adopted highway network, with maintenance and repairs overseen by the Highway Authority, with the Bridge Estate providing funds as necessary for the carrying out of these works. 

Funds generated by the Bridge Estate holding, either through day-to-day operations or sale/mortgage would, in this context, only be applied where other funding routes have been exhausted.  For the latter option, Trustees recognise that the ability to generate the level of sales required to replace the Trent Bridge would be difficult to achieve in the short-term and in any case could not meet the full cost of replacing the structure – further confirming the need of working, where possible, within the current local government financial context. There is a further restriction on the ability to generate funds in this way through the possibility that historic restrictions on the disposal of specific ‘endowed’ properties may exist. 

The property portfolio includes a number of commercial properties including: retail; office; industrial; ground leases; agricultural holdings; and a miscellaneous range of other properties. 

Investment risk whilst held in a single investment class (except money held on interest awaiting reinvestment) is in effect spread through the diverse range of property type, location and tenure. 

To maximise return on investment, the Charity is obliged to let properties at full market rent and lettings on full repairing and insuring terms where it is practical to do so.  In the case of multi occupied premises where the landlord is responsible for external repairs, heating, cleaning common parts, insurance etc., the costs are generally recovered by way of additional service charge. 

The rents of properties leased for a term of years are reviewed in accordance with the terms of the agreement and current market conditions and short term ‘periodic’ tenancies are generally reviewed every 3 years.  In the case of expiring leases, these are either renewed on negotiated terms or marketed for re-letting where the original lessee does not wish to continue.  In all cases, terms will be negotiated to secure the best outcome for the Charity including where possible an increased rent unless there are other objectives that the Trustees wish to secure. 

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BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **ACHIEVEMENTS and PERFORMANCE** 

The sole activity of the Bridge Estate is investing, through property ownership, to generate income that is utilised for the objectives of the Charity and to increase rental income and to grow the capital value of its assets, to further the charitable purposes to maintain Trent Bridge and for the benefit of the citizens of Nottingham. Strategic Assets and Property, a division of NCC’s Development and Growth Department, manage the property portfolio on behalf of Bridge Estate. A dedicated Chartered Surveyor is assigned to this role. 

In summary, the following has been undertaken over the past 12 months: 

- Unit 25 Whitemoor Court – completion of a new lease for a term of 6 years 

- 140 Vernon Road – completion of a new short-term lease 

- Dragon Court, Part of Building 3, Woolsthorpe Depot, WOolsthorpe Close – completion of a 9 year licence agreement 

- Part of Building No. 2, Woolsthorpe Depot, Woolsthorpe Close – completion of a 5 year licence agreement 

- Alexander Fleming Building – completion of a new 3 year lease agreement 

- Governors House & Judges Retiring Rooms, High Pavement –  refurbishment works remain ongoing and terms for lease have been agreed with a prospective tenant with completion on both matters expected mid 2022/23 

- Trent Bridge – provision for the allocation of additional funds for undertaking a further programme of maintenance and refurbishment works 

There is an ongoing strategic review of the portfolio to identify assets held by the Trust which could be sold and generate investment capital. Should disposals be approved by the Trustees, total capital reserves will provide the Trust with the opportunity to secure positive reinvestment in the portfolio, either through the acquisition of new assets or the improvement or refurbishment of existing properties. The policy remains to achieve market rates for rental, ensuring the charity receives value for money across its asset base. 

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BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **FINANCIAL REVIEW** 

The financial statements of the Bridge Estate are included in the following pages.  The statements include comparative figures for the previous year and consist of the following: 

- **Statement of Financial Activities (SoFA)** is a single accounting statement with the objective of showing all incoming resources and resources expended by the charity in the year on all its funds. 

- **Balance Sheet** setting out the assets, liabilities and funds of the Trust; 

- **Notes to Financial Statements** explaining the accounting policies adopted and explanations of information contained in the Financial Statements. 

The Trustees confirm that the Trust’s assets are available and adequate to fulfill the obligations of the Trust. Nottingham City Council is required to publish International Financial Reporting Standards (IFRS) compliant accounts.  The Bridge Estate forms part of NCC’s Group Accounts, and therefore the accounts have been consolidated on this basis.  No adjustments were required to these accounts upon consolidation. 

## **Covid-19 Pandemic** 

The Government declared a public health emergency on 16th March 2020 and enacted legislation to regulate society and help the country weather the impact of the pandemic and lead to recovery.  2021/22 saw the gradual easing of restrictions with the eventual end to restrictions altogether toward the end of this period on 21[st] February. 

## **Policy on reserves** 

The Charity may hold reserves or funds to even out the financial impact of significant costs for any particular year.  The Charity’s objectives state that any residue of any income should be used for the improvement of the City of Nottingham and the public benefit of its inhabitants, therefore any remaining net income over what is required to be set aside for prudent asset management is transferred to NCC’s General Fund. 

The actual Surplus transferred was £1,000,000 for 2021/22 (£1,545,000 2020/21).  Further details on reserves can be found in the notes to the accounts. 

## **Investment Policy** 

The Investment Policy is to seek to achieve an absolute return over the long term in order to meet increases in expenditure and maintain the Trust’s fund in real terms. Any funds generated by the sale of property are temporarily invested until a new investment opportunity is identified by the property manager, in consultation with the Trusts and Charities Committee. When investing Bridge Estate Funds, NCC adhere to their Investment Strategy which complies with the Local Government Act 2003 in support of obtaining the best yield for the Trust. 

## **Risk Management** 

The Bridge Estate adopts the NCC’s Risk Management Policy, tailored as appropriate for the Trust. The Trustees 

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are committed to a programme of risk management to protect the Charity’s assets.  A  Risk Register is held which identifies the key risks and the measures in place to mitigate such risks. Procedures are also in place to ensure that appropriate advice and support is provided to Trusts and Charities Committee as and when required. 

## **Review of financial position** 

Below is a summary of the income generated and resources expended: 

||**2021/22**|**2020/21**|
|---|---|---|
||**(£)**|**(£)**|
|**INCOMING RESOURCES**|**(1,835,992)**|**(2,147,027)**|
|**RESOURCES EXPENDED**|||
|Surplus transferred to NCC General Fund|1,000,000|1,545,000|
|Raising Funds|213,964|127,258|
|Charitable Activities|151,200|835,081|
|Other|55,978|60,844|
|Increase / (Decrease) in Loss Allowance|(104,734)|121,603|
|Net Contribution to /(from)reserves|519,584|(542,759)|
||**1,835,992**|**2,147,027**|



## **PLANS FOR FUTURE PERIODS** 

A property investment portfolio is a dynamic resource and needs to be actively managed if it is to develop and resist the effects of economic change. The principal focus should be on proactive management of the portfolio’s income profile, maximising income from existing properties, acquiring prime assets in favour of secondary stock where possible and developing a mix of investments aimed at creating stability, secure income, capital and revenue growth and minimised risk. 

The current portfolio includes some of these elements: 

- A diverse range of assets offering some security against the decline of a specific market sector 

- Revenue supported by a range of income generating investments including the modern industrial units, some quality office and retail space 

- Secure ground lease investments providing strong capital growth and strategic control of land use. 

- An opportunity to buy in leases  within its own assets, securing the benefit of marriage value 

In recent years the Portfolio has been partially rebalanced with the disposal of a number of management intensive, low income producing assets and the acquisition of two prime investments. In times of economic recession, the portfolio will still be susceptible to loss of income through a stagnated rental market and the risk of voids but the range of investments helps to mitigate this risk. 

The Trust holds some good quality assets evidenced by the Alexander Fleming Building at the Nottingham Science Park, retail premises on Lister Gate/Wheeler Gate and offices at Century House on Chapel Bar and Castle Marina. 

The strategy is based on the following principles: 

- All assets in the portfolio to be rated on their potential for retention or disposal with a view to actively pursuing early disposal in selected cases. 

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BRIDGE ESTATE ANNUAL REPORT 2021/22 

- That specific opportunities be identified for using additional investment resources for the improvement of existing assets where it can be demonstrated the investment will generate increased income or maintain income otherwise at risk. This might include the refurbishment of offices or workspace or buying in leasehold interests to provide an asset that is more attractive to a potential tenant. 

- That opportunities for strategic acquisitions be brought to future committees for consideration where it can be demonstrated they will: 

   - Secure income generation 

   - Good potential for rental growth 

   - Resilience to changing economic conditions 

- An annual review of the policy for disposals and acquisitions looking at projections for the forthcoming year and the influence of opportunities secured in the previous year. 

- The exploration of opportunities within the portfolio where value can be secured through strategic acquisition of third party interests, securing planning consent where it is beneficial and is considered to add value to potential disposals 

- Maintaining and developing existing income through selective investment in assets identified for retention. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Organisational structure of the charity** 

Bridge Estate is a charity of which NCC elected members are representing the Council as sole trustee of the Bridge Estate Charity. 

All transactions relating to the Bridge Estate are subject to the same Financial Regulations and procedures as those relating to land and property held by NCC. The Annual Report and Financial Statements are reported to and approved by Councillors of the Trusts and Charities Committee each year. 

## **Governing document** 

Royal Charter Dated 21 February 1551. 

The earliest mention discovered of the Bridge Estate is in 1302.  From that date various bequests of land and property were made, the income from which was devoted to the maintenance of bridges over the River Trent. 

In 1550, Edward VI made a grant by charter of the “lands, tenements and hereditaments” of two monasteries which had been dissolved by his father Henry VIII.  The grant was made to the “Mayor and Burgesses of the town of Nottingham, and to their successors for ever”, and was stated to be to fulfill a promise of Henry VIII “in consideration of the great charges and expenses daily sustained by his well-beloved the Mayor and Burgesses of his town of Nottingham in and about the mending, sustaining and repairing of their bridges over 

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the water of Trent". 

Bridge Estate was thus created by Royal Charter on 21 February 1551 with the then Corporation as sole trustee. 

It was established in 1945 that Bridge Estate was and had from the beginning been a Charity.  Consequently, the property of the Estate and the Council elected members as Trustees, are subject to the law affecting charitable trusts, the jurisdiction of the Charity Commissioners and the provisions of the Charities Act 2011, various statutes and the provisions of Charity Law. 

## **Trustees’ selection methods** 

Nottingham City Council (NCC) elected members are the Council’s representatives for the Bridge Estate. 

NCC has elected members who are elected on a 4 year cycle. The following table details the councillors / trustees for the financial year 1 April 2021 to 31 March 2022 and also includes any post year trustee movements: 


**----- Start of picture text -----**<br>
Councillor Adele Williams  Councillor Leslie Ayoola<br>Councillor AJ Matsiko  Councillor Linda Woodings<br>Councillor Andrew Rule  Councillor Maria Joannou<br>Councillor Angela Kandola  Councillor Maria Watson<br>Councillor Angharad Roberts  Councillor Merlita Bryan<br>Councillor Anne Peach  Councillor Michael Edwards<br>Councillor Audra Wynter  Councillor Mohammed Saghir<br>Councillor Audrey Dinnall  Councillor Nayab Patel (elected October 21)<br>Councillor Azad Choudhry Councillor Neghat Khan<br>Councillor Carole McCulloch  Councillor Nick Raine<br>Councillor Cate Woodward  Councillor Nicola Heaton<br>Councillor Chantal Lee (resigned) Councillor Patience Ifediora<br>Councillor Cheryl Barnard  Councillor Pavlos Kotsonis<br>Councillor Corall Jenkins (elected October 21) Councillor Phil Jackson<br>Councillor Dave Liversidge  Councillor Rebecca Langton<br>Councillor David Mellen  Councillor Roger Steel<br>Councillor David Trimble  Councillor Rosemary Healy<br>Councillor Ethan Radford  Councillor Sajid Mohammed<br>Councillor Eunice Campbell-Clark  Councillor Sally Longford<br>Councillor Georgina Power  Councillor Salma Mumtaz<br>Councillor Graham Chapman  Councillor Sam Webster<br>Councillor Gul Khan  Councillor Samuel Gardiner<br>Councillor Hassan Ahmed  Councillor Shuguftah Quddoos<br>Councillor Jane Lakey Councillor Steve Battlemuch<br>Councillor Jawaid Khalil  Councillor Sue Johnson<br>Councillor Jay Hayes  Councillor Toby Neal<br>Councillor Kevin Clarke  Councillor Wendy Smith<br>Councillor Kirsty Jones  Councillor Zafran Khan<br>Councillor Lauren O'Grady (resigned)<br>**----- End of picture text -----**<br>


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BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **Trusts and Charities Committee** 

Councillors are appointed to membership of the Trusts and Charities Committee by full Council to fulfil the Council’s responsibilities as Trustees. The Constitution allows that where in-year changes are required to memberships, either at the request of the relevant political group or because a member has resigned or ceased to be eligible for membership, the Corporate Director of Finance and Resources has the authority to action those changes subject to political balance being preserved where applicable and to the changes made being reported to the next meeting of Council.  Details of membership will be updated and published on the Council’s website on an ongoing basis. The following is the current list of the Trusts and Charities Committee appointed members who approve the Annual Report and financial statements for the financial year 1 April 2021 to 31 March 2022: 

Councillor Angharad Roberts (Chair) Councillor Sam Gardiner Councillor Rosemary Healy Councillor Sue Johnson Councillor Anne Peach Councillor Ethan Radford Councillor Sajid Mohammed Councillor Audra Wynter Councillor Andrew Rule 

## **Induction and training of Trusts and Charities Committee** 

Following appointment, councillors are invited to attend an induction which includes training on their role and responsibilities on behalf of the Trustees, with particular regard to the public benefit requirement. The historical background, policies and procedures of Bridge Estate are also covered and the councillors receive copies of Charity Commission published guidance. 

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BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **REFERENCE AND ADMINISTRATIVE DETAILS** 

|**Charity Name**|Bridge Estate|
|---|---|
|**Charity Number**|220716|
|**Registered Address**|Nottingham City Council|
||Loxley House|
||Station Street|
||Nottingham|
||NG2 3NG|
|**Charity’s Trustees**|Councillors of Nottingham City Council|
|**Day to Day Management**|Director of Economic Development & Property<br>Directorate|
||Loxley House|
||Station Street|
||Nottingham|
||NG2 3NG|
|**Auditors**|Rogers Spencer|
||Newstead House|
||Pelham Road|
||Nottingham|
||NG5 1AP|
|**Financial Advisor**|Corporate Director of Finance ad Resources|
||Nottingham City Council|
||Loxley House|
||Station Street|
||Nottingham|
||NG2 3NG|
|**Bankers**|Lloyds Bank|
||Parliament Street Nottingham|
||12-16 Lower Parliament Street|
||Nottingham|
||NG1 3DA|



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BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **RESPONSIBILITIES OF THE TRUSTEES** 

## **The Trustees’ Responsibilities** 

The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities 2019 SORP (FRS 102); 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the governing document. 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 confirm, so far as they are aware, that: 

- there is no relevant audit information of which the charity’s auditors are unaware; and 

- we have taken all the steps that we ought to have taken as trustees in order to make ourselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information. 

Approved by the Trusts and Charities Committee and signed on behalf of Nottingham City Council by: 

Date: 11/11/2022 


Cllr Angharad Roberts (Chair), Signed for the Trustees 

The notes form part of these accounts. 

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BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **Statement of Financial Activities for the year ending 31 March 2022** 


**----- Start of picture text -----**<br>
2021/22  2020/21<br>Unrestricted  Endowment  Unrestricted  Endowment<br>Funds  Funds  Total Funds  Funds  Funds  Total Funds<br>£  £  £  £  £  £<br>Income and endowments from:<br>Other Trading Activities  (1,832,829)  -  (1,832,829)  (2,124,020)  -  (2,124,020)<br>Investments  (3,163)  -  (3,163)  (1,017)  -  (1,017)<br>Other  -  -  -  (21,990) -  (21,990)<br>Total  (1,835,992) -  (1,835,992) (2,147,027) -  (2,147,027)<br>Expenditure on:<br>Raising Funds  -  213,964  213,964  -  127,258  127,258<br>Charitable Activities  56,740  94,460  151,200  50,220  784,861  835,081<br>Charitable Activities - Transfer to NCC  1,000,000  -  1,000,000  1,545,000  -  1,545,000<br>Increase / (Decrease) in Loss<br>Allowance  (104,734)  -  (104,734)  121,603  -  121,603<br>Other  -  55,978  55,978  -  60,844  60,844<br>Total   952,006  364,402  1,316,408  1,716,823  972,963  2,689,786<br>Net (income) /expenditure  (883,986) 364,402  (519,584) (430,204) 972,963  542,759<br>Transfer between Funds  594,355  (594,355)  -  1,033,058  (1,033,058)  -<br>Other Recognised (Gains)/Losses<br>(Gains)/losses on Revaluation of<br>-  (1,997,933)  (1,997,933)  -  311,179  311,179<br>Investment Properties<br>(Gains)/losses of following Fair Value<br>-  (81,223)  (81,223)  -  (123,686)  (123,686)<br>assessment of Financial Investments<br>Other (gains)/losses  526  -  526  -  -  -<br>Net Movement in Funds  (289,105) (2,309,109) (2,598,214) 602,854  127,398  730,252<br>Reconciliation of Funds<br>Total Funds Brought Forward  (373,464) (28,410,313) (28,783,777) (976,318) (28,537,711) (29,514,029)<br>Total Funds Carried Forward  (662,569) (30,719,422) (31,381,991) (373,464)  (28,410,313) (28,783,777)<br>**----- End of picture text -----**<br>


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BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **Balance Sheet as at 31st March 2022** 


**----- Start of picture text -----**<br>
Note  2021/22  2020/21<br>(£) (£)<br>Fixed Assets<br>Property Investments  6  31,865,896  29,818,293<br>Investments at Fair Value through Statement of Financial  7  732,310  651,087<br>Activities<br>Total Fixed Assets  32,598,206  30,469,380<br>Current Assets<br>Debtors (net of Bad Debt Provision)  8  991,456  927,800<br>Cash at Bank  8  2,026,775 495,641<br>Total Current Assets  3,018,231  1,423,441<br>Liabilities<br>Creditors - Amounts falling due within one year  9  (2,390,739)  (1,085,055)<br>Net Current Assets  627,492  338,386<br>Total Assets Less Current Liabilities  33,225,698  30,807,766<br>Creditors - Amounts falling due after one year  9  (40,879)  (40,879)<br>Long Term Borrowing  9  (1,802,828)  (1,983,110)<br>NET ASSETS  31,381,991  28,783,777<br>The Funds of the Charity<br>Endowment Fund  (30,719,422)  (28,410,313)<br>Unrestricted Funds  (662,569)  (373,464)<br>TOTAL CHARITY FUNDS  (31,381,991)  (28,783,777)<br>**----- End of picture text -----**<br>


Approved by the Trusts and Charities Committee and signed on behalf of Nottingham City Council by: 


Date:  29/11/2022 

Clive Heaphy - Corporate Director of Finance and Resources 


Date: 11/11/2022 

Cllr Angharad Roberts (Chair), Signed for the Trustees 

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BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **1.  Accounting Policies** 

## **General Principles** 

The Annual Report summarises the Bridge Estate transactions for 2021/22 financial year together with its financial position at 31 March 2022. 

This section explains the accounting policies applied in producing the Annual Report for the Bridge Estate. Accounting policies are the principles, bases, conventions and rules by which transactions are recognised, measured and presented in the accounts. 

## **Basis of preparation and assessment of going concern** 

The accounts have been prepared in accordance with the charity's governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and UK Generally Accepted Accounting Practice. The trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern. 

The cash flow statement forms part of the Nottingham City Council's group accounts. 

The Trust constitutes a public benefit entity as defined by FRS102. 

The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £1. 

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. 

## **Income Recognition** 

Income receipts are accrued and accounted for in the period to which they relate.  Payments received in advance are recognised as a liability on the balance sheet within creditors. 

Rental income is recorded when the invoices are raised and become due for payment. 

## **Expenditure Recognition** 

All expenditure is accrued and accounted for in the period during which they are consumed or received. Accruals have been made for all material sums unpaid at the year-end for goods or services received or work completed. Receipts received in advance are recognised as an asset on the balance sheet within debtors. Expenditure is classified under the following activity headings: 

## Raising Funds 

Costs of raising funds includes premises expenses, which includes day to day maintenance, insurance and external audit fees.  These are initially charged against the Endowment Fund in the SoFA, as recommended in the Charities SORP, but transferred to Unrestricted Funds within Gross Transfer between Funds. 

## Charitable Activities 

The costs of governance arrangements, which relate to the general running of the charity, as opposed to direct management functions inherent in generating funds, service delivery and programme.  These activities provide the governance infrastructure, which allows the charity to operate and to generate the information required for public accountability. 

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BRIDGE ESTATE ANNUAL REPORT 2021/22 

## Charitable Activities – Transfer to NCC 

The net expenditure or income of the Bridge Estate is transferred to NCC’s General Fund for the benefit of the citizens of Nottingham. 

## Other 

Expenditure which does not fall into any of the above categories. 

## **Irrecoverable VAT** 

Irrecoverable VAT is charged against the expenditure heading for which it was incurred. 

## **Other recognised Gains/(losses)** 

The gains/(losses) on investment assets, represents the differences between proceeds received on disposals and their market value at the beginning of the year. 

The gains/(losses) on revaluation of investment assets represents material changes in property valuations. 

## **Fixed Assets** 

## Investment properties 

Investment properties are those used solely to earn rentals and/or for capital appreciation for the Bridge Estate.  Investment properties are measured initially at cost. They are not depreciated but are revalued annually according to market conditions at year-end. 

The 2021/22 valuations have been carried out in accordance with current RICS. Gains and losses on revaluation and on disposal are shown within the SOFA. However as revaluation and disposal gains and losses are not allowed by statute to impact on the financial activities of the Bridge Estate, they do not form part of the income and expenditure totals, but provide details within the SOFA of the movement on the Endowment Fund.  Any sale proceeds are posted to the Endowment Fund. 

Rental income from investment properties is credited to investment income within the SOFA. 

Where land or property is held as a community asset, dedicated for the enjoyment of the public in perpetuity they are given a value of £NIL. 

## Other investments 

Other investments are included in the Balance Sheet at market value and include loans and government stocks. 

## **Accruals of Expenditure and Income** 

The accounts of the Bridge Estate are maintained on an accruals basis. This means that sums due to or from the Bridge Estate during the year are included whether or not the cash has actually been received or paid in the year.  Where income and expenditure has been recognised but cash has not been received or paid, a debtor or creditor for the relevant amount is recorded in the balance sheet. Cash received or paid and not yet recognised as income or expenditure is shown as a creditor (receipt in advance) or debtor (payment in advance) in the balance sheet and the SOFA adjusted accordingly.  Fees, charges and rents due from customers are accounted for as income at the date that the Bridge Estate provides the associated goods or services. 

This policy is not followed for certain quarterly payments, including gas and electricity, where expenditure is recorded at the date of meter reading rather than being apportioned between financial years. This policy is 

16 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

consistently applied each year and, therefore, does not have a material effect on the year's accounts. 

Where it is doubtful that a debt will be settled, the balance of debtors is written down and a charge made to the SoFA for the income that might not be collected. This bad debt provision is offset against the debtor balance on the balance sheet. 

## **Cash** 

Cash is represented by deposits held within the Bridge Estate bank account. 

## **Funds of the Charity** 

## Endowment fund 

The capital of the Bridge Estate is held as a permanent endowment fund. There is no power to convert the capital into income; the fund must generally be held indefinitely. 

## Unrestricted income fund 

This fund has been established so that the cost of repairing Trent Bridge was spread out and does not impact on the finances of the Charity in a particular year. In 2006/07 an additional Renewal and Repairs Fund was set up to meet the cost of repairs to the housing stock held by the Bridge Estate. Annual contributions are made to the fund and repairs costs are charged to the SoFA in the year they are carried out, with transfers being taken from the fund. 

The income from the fund is unrestricted income but it is expendable at the discretion of the active trustees in the furtherance of the charity’s objectives. 

## **2. Tax status of the Bridge Estate** 

Bridge Estate is a registered charity and is therefore exempt from income tax and capital gains tax on income and gains falling within S531 ITA 2007 and S256 CGA 1992.  Nottingham City Council is the sole trustee of the Bridge Estate and, in accordance with VAT notice 749, is entitled to recover VAT incurred on the expenditure of the Bridge Estate under section 33 of the VAT Act 1994. 

## **3. Summary of Fund Movements** 

|**3. Summary of Fund**|**Movements**|
|---|---|
||**2021/22**<br>**2020/21**<br>**Endowment**<br>**Fund**<br>**Unrestricted**<br>**Funds**<br>**TOTAL**<br>**Endowment**<br>**Fund**<br>**Unrestricted**<br>**Funds**<br>**TOTAL**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**|
|**Balance B/fwd**<br>Incoming<br>Resources<br>Outgoing<br>Resources<br>Transfers<br>Gains and Losses<br>**Balances C/fwd**|(28,410,313)<br>(373,464)<br>**(28,783,777)**<br>(28,537,711)<br>(976,318)**(29,514,029)**<br>-<br>(1,835,992)<br>**(1,835,992)**<br>-<br>(2,147,027)<br>**(2,147,027)**<br>364,402<br>952,006<br>**1,316,408**<br>972,963<br>1,716,823<br>**2,689,786**<br>(594,355)<br>594,355<br>**-**<br>(1,033,058)<br>1,033,058<br>**-**<br>(2,079,156)<br>-<br>**(2,079,156)**<br>187,493<br>-<br>**187,493**<br>**(30,719,422)**<br>**(662,569)**<br>**(31,381,991)**<br>**(28,410,313)**<br>**(373,464)(28,783,777)**|



## **Incoming Resources** 

As a general rule, incoming capital resources to the Bridge Estate are generated by the sale of investment properties or the payment of premiums in respect of the re-gearing of long leaseholds.  The Bridge Estate capital fund is a permanent endowment fund which means that it cannot usually be spent as income.  Thus, 

17 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

any income generated by the sale of freehold land or buildings, or the re-gearing of long leaseholds on payment of a premium, must be reinvested in the purchase or improvement of freehold land and buildings. 

At the discretion of the Charity Commission, funds may be spent on infra-structure assets but any sum spent will have to be recouped and the capital fund replenished. 

## **Other Recognised (Gains)/Losses** 

The annual revaluation of the property portfolio has been completed in 2021/22 resulting in a net gain on revaluation of assets of £1,997,933. 

## **Unrestricted income fund** 

During 2021/22 the Bridge Repairs Fund received a contribution of £104,537 which is set aside for future works to the Bridge (£590,463 drawdown 2020/21), while the unrestricted funds had a contributions of £346,737 (£47,702 2020/21). 

## **4. Income and Expenditure Detailed Analysis** 


**----- Start of picture text -----**<br>
2021/22  2020/21<br>£  £<br>INCOME<br>Rent (net of movement in Loss Allowance)  (1,880,421) (1,903,994)<br>Service Charges  (57,142) (98,423)<br>Interest Received  (3,163) (1,017)<br>Other  - (21,990)<br>(1,940,726) (2,025,424)<br>EXPENDITURE<br>Raising Funds<br>  Agency and Contracted Services<br>    Cleaning  97 597<br>    Grounds Maintenance  (7,955) 18,365<br>  Investment Management Costs<br>    Business Rates  153,348 17,708<br>    Energy Costs & Water  (455) 47,624<br>    Insurance  (20,760) 20,760<br>    Property Maintenance (inc Bridge)  (1,291) 1,095<br>    Rent Collection  22,534 27,428<br>    Supplies and Services  68,446 34,641<br>Charitable Activities<br>   Surplus transferred to NCC General Fund  1,000,000 1,545,000<br>-<br>   Property Repairs (inc Bridge)  624,772<br>   Audit Costs  10,650 10,150<br>   Support Costs<br>    Management and Administration  140,550 159,200<br>Other<br>   Interest Payable  55,978 60,845<br>Movement to Funds<br>Contribution to / (from) Repairs Fund  104,537 (590,463)<br>Contribution to / (from) Unrestricted Fund  415,047 47,702<br>1,940,726 2,025,424<br>**----- End of picture text -----**<br>


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BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **5. Allocation of governance and support costs** 

The breakdown of Charitable Activity support costs and how these were allocated between governance and other costs is shown below: 


**----- Start of picture text -----**<br>
2021/22<br> Governance   Other<br> Total   Basis of Apportionment<br>Related (*)  Support Costs<br> £    £    £<br>Audit Fees  10,650  10,650  -  External Provider's Annual Fee<br>Computer Costs  17,100  -  17,100  Software Usage<br>Recharged Staff Costs  55,140  23,548  31,592  Staff Time<br>Property Services Costs  68,310  22,542  45,768  Asset Valuation Costs/Staff Time<br>151,200  56,740  94,460<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
2020/21<br> Governance   Other<br> Total   Basis of Apportionment<br>Related (*)  Support Costs<br> £    £    £<br>Audit Fees  10,150  10,150  -  External Provider's Annual Fee<br>Computer Costs  17,100  -  17,100  Software Usage<br>Recharged Staff Costs  55,140  23,548  31,592  Staff Time<br>Property Services Costs  86,960  16,522  70,438  Asset Valuation Costs/Staff Time<br>169,350  50,220  119,130<br>**----- End of picture text -----**<br>


(*) Governance Related Costs are met entirely from Unrestricted Funds. 

## **6. Investment Property** 

Investment property represents assets owned by the Bridge Estate, primarily property and buildings all situated in the United Kingdom.  The portfolio of property is mainly investment properties which are valued by Nottingham City Council Property Service Chartered Surveyor (member of the Royal Institution of Chartered Surveyors) and in accordance with the Royal Institute of Chartered Surveyors Appraisal and Valuation Standards Manual (the Red Book).  Properties held by the Bridge Estate are non-operational properties and as such, the valuation is on the basis of open market value.    This area is managed by the Director of Economic Development and Property. 

Investment properties in the portfolio are valued at market value in accordance with the Charities SORP.  Some properties have a de-minimis value of £NIL as they are community assets, dedicated for the enjoyment of the public in perpetuity. 

Assets that are sold are re-valued pending sale and written out of the accounts at this value. 

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BRIDGE ESTATE ANNUAL REPORT 2021/22 

|**Analysis of the movement in Investment Property**|**2021/22**<br>**2020/21**<br>**(£)**<br>**(£)**|
|---|---|
|Carrying value (market value) at beginning of year<br>Add: Capital Expenditure Incurred<br>Add/deduct: Net gains/(losses) on revaluation<br>**Carrying value (market value) at end of year**|29,818,293<br>29,952,336<br>49,670<br>177,136<br>1,997,933<br>(311,179)|
||**31,865,896**<br>**29,818,293**|



The following properties whose value is greater than £1m, are considered to be material in the context of the investment property list: 

|**Property**|**Value**<br>**2021/22**<br>**Value**<br>**2020/21**<br>**£**<br>**£**|
|---|---|
|Century House, 8-18 Chapel Bar<br>Woolsthorpe Close, Off Wigman Road, Bilborough<br>Eastcroft Depot, London Road<br>The Alexander Fleming Building, Nottingham Science and Technology Park,<br>University Boulevard<br>Land: 3 Acres at Bull Close Road, Lenton Lane Industrial Estate, Nottingham<br>Castle Gate House, 24-30 Castle Castle, Nottingham<br>34-38 Lister Gate<br>Units 21-29,Whitemoor Court,Nuthall Road|1,519,743<br>1,501,632<br>3,842,184<br>3,655,902<br>3,150,000<br>2,900,000<br>1,913,000<br>2,000,000<br>1,076,500<br>900,500<br>1,125,000<br>997,000<br>1,670,000<br>1,795,000<br>3,567,000<br>3,458,353|



## **7. Other Investments** 

||**2021/22**|**2020/21**<br>**£**|
|---|---|---|
||**£**||
|Government Stocks<br>COIF Accumulation Units|1,385|1,385<br>649,702|
||730,925||
||**732,310**|**651,087**|



|**Analysis of the movement in Other Investments**|**2021/22**|**2020/21**<br>**£**|
|---|---|---|
||**£**||
|Carrying value (market value) at beginning of year<br>Add/deduct: Net gains/(losses) on revaluation<br>**Carrying value (market value) at end of year**|651,087|527,401<br>123,686|
||81,223||
||**732,310**|**651,087**|
||||



20 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **8. Analysis of current assets** 

|**8. Analysis of current assets**|||
|---|---|---|
|**Debtors**|**2021/22**|**2020/21**<br>**£**|
||**£**||
|Trading Activities<br>Amounts due from subsidiary and associated undertakings|677,497|370,685<br>557,115|
||313,959||
||**991,456**|**927,800**|



|**Cash**|**2021/22**|**2020/21**|
|---|---|---|
||**£**|**£**|
|Cash at bank|2,026,775|495,641|



## **9. Analysis of current liabilities and long term creditors** 

|**9. Analysis of current liabilities and long term creditors**|||
|---|---|---|
|**Current Liabilities**|**2021/22**|**2020/21**<br>**£**|
||**£**||
|Amounts due to subsidiary and associated undertakings<br>(including subsidiary Receipts in Advance)<br>Other creditors<br>Receipts in Advance|(1,823,045)|(713,589)<br>(153,728)<br>(217,738)|
||(185,898)||
||(381,796)||
||**(2,390,739)**|**(1,085,055)**|
||||
||||
|**Long Term Creditors**|**2021/22**|**2020/21**<br>**£**|
||**£**||
|Rent Bonds<br>Long Term Borrowing|(40,879)|(40,879)<br>(1,983,110)|
||(1,802,828)||
||**(1,843,707)**|**(2,023,989)**|
||||



## **10. Analysis of Lessor Operating Leases** 

||**2021/22**|**2020/21**<br>**£**|
|---|---|---|
||**£**||
|Not later than one year<br>Between one and five years<br>Later than five years<br>**Total**|959,314|1,115,530<br>1,858,536<br>11,503,029|
||1,985,399||
||11,297,809||
||**14,242,522**|**14,477,095**|
||||



21 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **11. Analysis of net assets between funds** 

|**11. Analysis of net assets between funds**||
|---|---|
||**2021/22**<br>**2020/21**<br>**Endowment**<br>**Fund**<br>**Unrestricted**<br>**Funds**<br>**Endowment**<br>**Fund**<br>**Unrestricted**<br>**Funds**<br>**£**<br>**£**<br>**£**<br>**£**|
|Investment Properties<br>Other investments<br>Debtors (net of Bad Debt Provision)<br>Cash at Bank<br>Creditors - Amounts falling due within one year<br>Creditors - Amounts falling due after one year<br>Long Term Borrowing|31,865,896<br>-<br>29,818,293<br>-<br>732,310<br>-<br>651,087<br>-<br>-<br>991,456<br>-<br>927,800<br>104,327<br>1,922,448<br>104,326<br>391,315<br>(180,283)<br>(2,210,456)<br>(180,283)<br>(904,772)<br>-<br>(40,879)<br>-<br>(40,879)<br>(1,802,828)<br>-<br>(1,983,110)<br>-|
||**30,719,422**<br>**662,569**<br>**28,410,313**<br>**373,464**|



22 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **12. TRANSACTIONS WITH RELATED PARTIES** 

NCC elected members are representing the Council as sole trustees of the Bridge Estate and any related party transactions must be disclosed in accordance with Charity SORP. 

A loan of £3,922,881 was approved in 2012/13 to assist in the purchase of an investment property, this loan is for a period of 20 years and for accounting purposes is treated as long term borrowing.  The payment started annually on the 31 March 2014. The payments will be made up of £180,283 principal and 2.70% pa interest on the average loan balance in the year.  In 2021/22 the Bridge Estate paid £55,978 interest (£60,845 2020/21), which is shown within the SoFA under Other Expenditure and short term creditors, while the outstanding long term borrowing at the 31 March 2022 is £1,802,828 (£1,983,110 2020/21) which is shown in the balance sheet. 

Monies due from NCC and other group entities (Robin Hood Energy and Nottingham City Homes) at the end of the financial year to the Bridge Estate was £313,959 (£557,115 2020/21). Monies owed to NCC and group entities was £1,823,045 (£713,589 2020/21). 

In addition to transactions involving investments and cash balances, there are other transactions between the Charity and the City Council in respect of the day-to-day operations of the Charity. 

In the year to 31 March 2022 various City Council departments and other Council group entities paid a sum of £407,632 (£627,370 2020/21) in respect of investment properties let by the Charity at current market rents subject to periodic reviews and related service charges.  This income is included in the SoFA. 

NCC charged the Bridge Estate £140,550 in the year to 31 March 2022 (£159,200 2020/21) in respect of officers’ time and management and maintenance of properties.  Of this total it is estimated that £46,090 (£40,070 2020/21) is attributable to the governance of the Charity.  These costs relate to the preparation of the final accounts, valuation fees, legal fees and attendance and preparation for the Trusts and Charities Committee meetings. 

The Charity had a credit of £7,858 (charge of £18,962 2020/21) for grounds maintenance and contract cleaning, while insurance was a credit of £20,760 (charge of £20,760 2020/21) with to NCC.  These transactions are shown within Raising Funds in the SoFA. 

Surplus of income over expenditure during the year is transferred to NCC’s General Fund for the improvement of the City of Nottingham and the public benefit of its inhabitants £1,000,000 (£1,545,000 2020/21). 

During the current financial year, trustees received remuneration of £nil (£nil 2020/21) and had expenses reimbursed of £nil (£nil 2020/21). 

23 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **BRIDGE ESTATE** 


## **ANNUAL REPORT** 

## **for the year ended 31 March 2022** 

**Registered Charity Number: 220716** 

1 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **CONTENTS** 

## **Page Details** 

- 3 Report of the Trustees for the year ended 31[st] March 2022 

- 3 Objectives and activities for the public benefit 

- 4 Strategies adopted in the management of the property portfolio 

- 5 Achievements and Performance 

- 6 Financial Review 

- 7 Plans for future periods 

- 8 Structure, Governance and Management 

- 11 Reference and administrative details 

- 12 Responsibilities of the Trustees 

- 13 Statement of Financial Activities 

- 14 Balance Sheet 

- 15 Notes to the financial statements 

- 24 Independent Auditor’s Report 

2 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2022** 

The trustees present their annual report and financial statements of the charity for the year ended 31st March 2022.  The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s trust deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland. 

## **OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT** 

The maintenance and repair of Trent Bridge and approaches remains the primary objective of the charity. Trent Bridge is the major vehicle communication route from the south of the City and is critical in bringing economic benefit to the City. This is increasingly important in light of the downturn in the global and national economy. The bridge is open to the public at large, assuring public benefit on an open access basis. There are no restrictions regarding the members of the public who may use the bridge and no fees are charged. 

The Trustees’ Annual Report for the year ending 31 March 2022 confirms that any residual income is applied to the Trust’s charitable objectives as defined below, this includes the improvement of the City of Nottingham in support of the Council’s aims and objectives, as set out in the Council Plan and Medium Term Financial Strategy. This is delivered through the maintenance and protection of the Trust’s portfolio of income producing assets. 

A proportion of the surplus income generated by the charity is transferred to Nottingham City Council’s (NCC) General Fund and is used for the benefit of the citizens of Nottingham. As referred to above, the surplus contributes directly to the delivery of Nottingham’s priorities as set out in the Council Plan and enables the Council to provide the citizens of Nottingham with effective and efficient services. Further surplus income has been retained in the Trust for investment in its portfolio. 

The Bridge Estate fixed asset portfolio will be actively managed to secure new investment properties, increase income and reduce risk in an uncertain market. 

The Bridge Estate’s transfer to NCC’s General Fund also represents an equivalent saving for Nottingham citizens who pay council tax on a Band D property of £14.81 (£18.29 2020/21). 

The trustees confirm that they have referred to the Charity Commission’s guidance on public benefit when reviewing the Trust’s aims and objectives. 

## **Objectives** 

The initial sole objective of the Bridge Estate was the provision of funds for the maintenance and repair of Trent Bridge.  However, by the late nineteenth century the income generated by the Estate was in excess of that required for maintenance of Trent Bridge and consequently the objectives of the Estate were extended by virtue of section 78 of the Nottingham Corporation Act 1882. 

The Bridge Estate’s charitable objectives are now threefold: 

1. To provide for the efficient maintenance and repair of Trent Bridge and the approaches to it. 

2. To provide a contingency fund for the possible construction of such new bridge or bridges over the River Trent as may be found necessary or desirable. 

3. To apply the residue of any income as the trustees thinks best for the improvement of the City of 

3 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

Nottingham and the public benefit of its inhabitants. 

## **Main objectives for the financial year 2022/23 -** 

1. To ensure the necessary financial provision is available if required to provide a vehicle and pedestrian communication link for the City of Nottingham via Trent Bridge. 

2. The continued development of the Trust’s property portfolio with a view to minimizing the risk of exposure to adverse economic conditions and protecting and increasing its income and capital value of its assets. 

3. Surplus revenue generated by the Charity to be invested through NCC to support the City Council’s aims and objectives for the city as set out in the Council Plan and the Medium Term Financial Strategy. 

## **Strategies adopted in the management of the property portfolio** 

The Bridge Estate’s stated objectives of setting up a contingency fund for the maintenance and repair of Trent Bridge and to accumulate a fund to build a new bridge, should this be necessary, is effectively met by the management of the property portfolio.  In practice, although properties could either be sold or mortgaged to fund such expenditure, the current local government context means that there are more efficient and effective ways of raising the funds required to maintain or to replace Trent Bridge.  NCC is able to earmark funds from the Local Transport Plan for this purpose and substituting Bridge Estate funds would unnecessarily run down the value of the portfolio.  Trent Bridge forms part of the adopted highway network, with maintenance and repairs overseen by the Highway Authority, with the Bridge Estate providing funds as necessary for the carrying out of these works. 

Funds generated by the Bridge Estate holding, either through day-to-day operations or sale/mortgage would, in this context, only be applied where other funding routes have been exhausted.  For the latter option, Trustees recognise that the ability to generate the level of sales required to replace the Trent Bridge would be difficult to achieve in the short-term and in any case could not meet the full cost of replacing the structure – further confirming the need of working, where possible, within the current local government financial context. There is a further restriction on the ability to generate funds in this way through the possibility that historic restrictions on the disposal of specific ‘endowed’ properties may exist. 

The property portfolio includes a number of commercial properties including: retail; office; industrial; ground leases; agricultural holdings; and a miscellaneous range of other properties. 

Investment risk whilst held in a single investment class (except money held on interest awaiting reinvestment) is in effect spread through the diverse range of property type, location and tenure. 

To maximise return on investment, the Charity is obliged to let properties at full market rent and lettings on full repairing and insuring terms where it is practical to do so.  In the case of multi occupied premises where the landlord is responsible for external repairs, heating, cleaning common parts, insurance etc., the costs are generally recovered by way of additional service charge. 

The rents of properties leased for a term of years are reviewed in accordance with the terms of the agreement and current market conditions and short term ‘periodic’ tenancies are generally reviewed every 3 years.  In the case of expiring leases, these are either renewed on negotiated terms or marketed for re-letting where the original lessee does not wish to continue.  In all cases, terms will be negotiated to secure the best outcome for the Charity including where possible an increased rent unless there are other objectives that the Trustees wish to secure. 

4 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **ACHIEVEMENTS and PERFORMANCE** 

The sole activity of the Bridge Estate is investing, through property ownership, to generate income that is utilised for the objectives of the Charity and to increase rental income and to grow the capital value of its assets, to further the charitable purposes to maintain Trent Bridge and for the benefit of the citizens of Nottingham. Strategic Assets and Property, a division of NCC’s Development and Growth Department, manage the property portfolio on behalf of Bridge Estate. A dedicated Chartered Surveyor is assigned to this role. 

In summary, the following has been undertaken over the past 12 months: 

- Unit 25 Whitemoor Court – completion of a new lease for a term of 6 years 

- 140 Vernon Road – completion of a new short-term lease 

- Dragon Court, Part of Building 3, Woolsthorpe Depot, WOolsthorpe Close – completion of a 9 year licence agreement 

- Part of Building No. 2, Woolsthorpe Depot, Woolsthorpe Close – completion of a 5 year licence agreement 

- Alexander Fleming Building – completion of a new 3 year lease agreement 

- Governors House & Judges Retiring Rooms, High Pavement –  refurbishment works remain ongoing and terms for lease have been agreed with a prospective tenant with completion on both matters expected mid 2022/23 

- Trent Bridge – provision for the allocation of additional funds for undertaking a further programme of maintenance and refurbishment works 

There is an ongoing strategic review of the portfolio to identify assets held by the Trust which could be sold and generate investment capital. Should disposals be approved by the Trustees, total capital reserves will provide the Trust with the opportunity to secure positive reinvestment in the portfolio, either through the acquisition of new assets or the improvement or refurbishment of existing properties. The policy remains to achieve market rates for rental, ensuring the charity receives value for money across its asset base. 

5 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **FINANCIAL REVIEW** 

The financial statements of the Bridge Estate are included in the following pages.  The statements include comparative figures for the previous year and consist of the following: 

- **Statement of Financial Activities (SoFA)** is a single accounting statement with the objective of showing all incoming resources and resources expended by the charity in the year on all its funds. 

- **Balance Sheet** setting out the assets, liabilities and funds of the Trust; 

- **Notes to Financial Statements** explaining the accounting policies adopted and explanations of information contained in the Financial Statements. 

The Trustees confirm that the Trust’s assets are available and adequate to fulfill the obligations of the Trust. Nottingham City Council is required to publish International Financial Reporting Standards (IFRS) compliant accounts.  The Bridge Estate forms part of NCC’s Group Accounts, and therefore the accounts have been consolidated on this basis.  No adjustments were required to these accounts upon consolidation. 

## **Covid-19 Pandemic** 

The Government declared a public health emergency on 16th March 2020 and enacted legislation to regulate society and help the country weather the impact of the pandemic and lead to recovery.  2021/22 saw the gradual easing of restrictions with the eventual end to restrictions altogether toward the end of this period on 21[st] February. 

## **Policy on reserves** 

The Charity may hold reserves or funds to even out the financial impact of significant costs for any particular year.  The Charity’s objectives state that any residue of any income should be used for the improvement of the City of Nottingham and the public benefit of its inhabitants, therefore any remaining net income over what is required to be set aside for prudent asset management is transferred to NCC’s General Fund. 

The actual Surplus transferred was £1,000,000 for 2021/22 (£1,545,000 2020/21).  Further details on reserves can be found in the notes to the accounts. 

## **Investment Policy** 

The Investment Policy is to seek to achieve an absolute return over the long term in order to meet increases in expenditure and maintain the Trust’s fund in real terms. Any funds generated by the sale of property are temporarily invested until a new investment opportunity is identified by the property manager, in consultation with the Trusts and Charities Committee. When investing Bridge Estate Funds, NCC adhere to their Investment Strategy which complies with the Local Government Act 2003 in support of obtaining the best yield for the Trust. 

## **Risk Management** 

The Bridge Estate adopts the NCC’s Risk Management Policy, tailored as appropriate for the Trust. The Trustees 

6 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

are committed to a programme of risk management to protect the Charity’s assets.  A  Risk Register is held which identifies the key risks and the measures in place to mitigate such risks. Procedures are also in place to ensure that appropriate advice and support is provided to Trusts and Charities Committee as and when required. 

## **Review of financial position** 

Below is a summary of the income generated and resources expended: 

||**2021/22**|**2020/21**|
|---|---|---|
||**(£)**|**(£)**|
|**INCOMING RESOURCES**|**(1,835,992)**|**(2,147,027)**|
|**RESOURCES EXPENDED**|||
|Surplus transferred to NCC General Fund|1,000,000|1,545,000|
|Raising Funds|213,964|127,258|
|Charitable Activities|151,200|835,081|
|Other|55,978|60,844|
|Increase / (Decrease) in Loss Allowance|(104,734)|121,603|
|Net Contribution to /(from)reserves|519,584|(542,759)|
||**1,835,992**|**2,147,027**|



## **PLANS FOR FUTURE PERIODS** 

A property investment portfolio is a dynamic resource and needs to be actively managed if it is to develop and resist the effects of economic change. The principal focus should be on proactive management of the portfolio’s income profile, maximising income from existing properties, acquiring prime assets in favour of secondary stock where possible and developing a mix of investments aimed at creating stability, secure income, capital and revenue growth and minimised risk. 

The current portfolio includes some of these elements: 

- A diverse range of assets offering some security against the decline of a specific market sector 

- Revenue supported by a range of income generating investments including the modern industrial units, some quality office and retail space 

- Secure ground lease investments providing strong capital growth and strategic control of land use. 

- An opportunity to buy in leases  within its own assets, securing the benefit of marriage value 

In recent years the Portfolio has been partially rebalanced with the disposal of a number of management intensive, low income producing assets and the acquisition of two prime investments. In times of economic recession, the portfolio will still be susceptible to loss of income through a stagnated rental market and the risk of voids but the range of investments helps to mitigate this risk. 

The Trust holds some good quality assets evidenced by the Alexander Fleming Building at the Nottingham Science Park, retail premises on Lister Gate/Wheeler Gate and offices at Century House on Chapel Bar and Castle Marina. 

The strategy is based on the following principles: 

- All assets in the portfolio to be rated on their potential for retention or disposal with a view to actively pursuing early disposal in selected cases. 

7 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

- That specific opportunities be identified for using additional investment resources for the improvement of existing assets where it can be demonstrated the investment will generate increased income or maintain income otherwise at risk. This might include the refurbishment of offices or workspace or buying in leasehold interests to provide an asset that is more attractive to a potential tenant. 

- That opportunities for strategic acquisitions be brought to future committees for consideration where it can be demonstrated they will: 

   - Secure income generation 

   - Good potential for rental growth 

   - Resilience to changing economic conditions 

- An annual review of the policy for disposals and acquisitions looking at projections for the forthcoming year and the influence of opportunities secured in the previous year. 

- The exploration of opportunities within the portfolio where value can be secured through strategic acquisition of third party interests, securing planning consent where it is beneficial and is considered to add value to potential disposals 

- Maintaining and developing existing income through selective investment in assets identified for retention. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Organisational structure of the charity** 

Bridge Estate is a charity of which NCC elected members are representing the Council as sole trustee of the Bridge Estate Charity. 

All transactions relating to the Bridge Estate are subject to the same Financial Regulations and procedures as those relating to land and property held by NCC. The Annual Report and Financial Statements are reported to and approved by Councillors of the Trusts and Charities Committee each year. 

## **Governing document** 

Royal Charter Dated 21 February 1551. 

The earliest mention discovered of the Bridge Estate is in 1302.  From that date various bequests of land and property were made, the income from which was devoted to the maintenance of bridges over the River Trent. 

In 1550, Edward VI made a grant by charter of the “lands, tenements and hereditaments” of two monasteries which had been dissolved by his father Henry VIII.  The grant was made to the “Mayor and Burgesses of the town of Nottingham, and to their successors for ever”, and was stated to be to fulfill a promise of Henry VIII “in consideration of the great charges and expenses daily sustained by his well-beloved the Mayor and Burgesses of his town of Nottingham in and about the mending, sustaining and repairing of their bridges over 

8 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

the water of Trent". 

Bridge Estate was thus created by Royal Charter on 21 February 1551 with the then Corporation as sole trustee. 

It was established in 1945 that Bridge Estate was and had from the beginning been a Charity.  Consequently, the property of the Estate and the Council elected members as Trustees, are subject to the law affecting charitable trusts, the jurisdiction of the Charity Commissioners and the provisions of the Charities Act 2011, various statutes and the provisions of Charity Law. 

## **Trustees’ selection methods** 

Nottingham City Council (NCC) elected members are the Council’s representatives for the Bridge Estate. 

NCC has elected members who are elected on a 4 year cycle. The following table details the councillors / trustees for the financial year 1 April 2021 to 31 March 2022 and also includes any post year trustee movements: 


**----- Start of picture text -----**<br>
Councillor Adele Williams  Councillor Leslie Ayoola<br>Councillor AJ Matsiko  Councillor Linda Woodings<br>Councillor Andrew Rule  Councillor Maria Joannou<br>Councillor Angela Kandola  Councillor Maria Watson<br>Councillor Angharad Roberts  Councillor Merlita Bryan<br>Councillor Anne Peach  Councillor Michael Edwards<br>Councillor Audra Wynter  Councillor Mohammed Saghir<br>Councillor Audrey Dinnall  Councillor Nayab Patel (elected October 21)<br>Councillor Azad Choudhry Councillor Neghat Khan<br>Councillor Carole McCulloch  Councillor Nick Raine<br>Councillor Cate Woodward  Councillor Nicola Heaton<br>Councillor Chantal Lee (resigned) Councillor Patience Ifediora<br>Councillor Cheryl Barnard  Councillor Pavlos Kotsonis<br>Councillor Corall Jenkins (elected October 21) Councillor Phil Jackson<br>Councillor Dave Liversidge  Councillor Rebecca Langton<br>Councillor David Mellen  Councillor Roger Steel<br>Councillor David Trimble  Councillor Rosemary Healy<br>Councillor Ethan Radford  Councillor Sajid Mohammed<br>Councillor Eunice Campbell-Clark  Councillor Sally Longford<br>Councillor Georgina Power  Councillor Salma Mumtaz<br>Councillor Graham Chapman  Councillor Sam Webster<br>Councillor Gul Khan  Councillor Samuel Gardiner<br>Councillor Hassan Ahmed  Councillor Shuguftah Quddoos<br>Councillor Jane Lakey Councillor Steve Battlemuch<br>Councillor Jawaid Khalil  Councillor Sue Johnson<br>Councillor Jay Hayes  Councillor Toby Neal<br>Councillor Kevin Clarke  Councillor Wendy Smith<br>Councillor Kirsty Jones  Councillor Zafran Khan<br>Councillor Lauren O'Grady (resigned)<br>**----- End of picture text -----**<br>


9 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **Trusts and Charities Committee** 

Councillors are appointed to membership of the Trusts and Charities Committee by full Council to fulfil the Council’s responsibilities as Trustees. The Constitution allows that where in-year changes are required to memberships, either at the request of the relevant political group or because a member has resigned or ceased to be eligible for membership, the Corporate Director of Finance and Resources has the authority to action those changes subject to political balance being preserved where applicable and to the changes made being reported to the next meeting of Council.  Details of membership will be updated and published on the Council’s website on an ongoing basis. The following is the current list of the Trusts and Charities Committee appointed members who approve the Annual Report and financial statements for the financial year 1 April 2021 to 31 March 2022: 

Councillor Angharad Roberts (Chair) Councillor Sam Gardiner Councillor Rosemary Healy Councillor Sue Johnson Councillor Anne Peach Councillor Ethan Radford Councillor Sajid Mohammed Councillor Audra Wynter Councillor Andrew Rule 

## **Induction and training of Trusts and Charities Committee** 

Following appointment, councillors are invited to attend an induction which includes training on their role and responsibilities on behalf of the Trustees, with particular regard to the public benefit requirement. The historical background, policies and procedures of Bridge Estate are also covered and the councillors receive copies of Charity Commission published guidance. 

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BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **REFERENCE AND ADMINISTRATIVE DETAILS** 

|**Charity Name**|Bridge Estate|
|---|---|
|**Charity Number**|220716|
|**Registered Address**|Nottingham City Council|
||Loxley House|
||Station Street|
||Nottingham|
||NG2 3NG|
|**Charity’s Trustees**|Councillors of Nottingham City Council|
|**Day to Day Management**|Director of Economic Development & Property<br>Directorate|
||Loxley House|
||Station Street|
||Nottingham|
||NG2 3NG|
|**Auditors**|Rogers Spencer|
||Newstead House|
||Pelham Road|
||Nottingham|
||NG5 1AP|
|**Financial Advisor**|Corporate Director of Finance ad Resources|
||Nottingham City Council|
||Loxley House|
||Station Street|
||Nottingham|
||NG2 3NG|
|**Bankers**|Lloyds Bank|
||Parliament Street Nottingham|
||12-16 Lower Parliament Street|
||Nottingham|
||NG1 3DA|



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BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **RESPONSIBILITIES OF THE TRUSTEES** 

## **The Trustees’ Responsibilities** 

The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities 2019 SORP (FRS 102); 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the governing document. 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 confirm, so far as they are aware, that: 

- there is no relevant audit information of which the charity’s auditors are unaware; and 

- we have taken all the steps that we ought to have taken as trustees in order to make ourselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information. 

Approved by the Trusts and Charities Committee and signed on behalf of Nottingham City Council by: 

Date: 11/11/2022 


Cllr Angharad Roberts (Chair), Signed for the Trustees 

The notes form part of these accounts. 

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BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **Statement of Financial Activities for the year ending 31 March 2022** 


**----- Start of picture text -----**<br>
2021/22  2020/21<br>Unrestricted  Endowment  Unrestricted  Endowment<br>Funds  Funds  Total Funds  Funds  Funds  Total Funds<br>£  £  £  £  £  £<br>Income and endowments from:<br>Other Trading Activities  (1,832,829)  -  (1,832,829)  (2,124,020)  -  (2,124,020)<br>Investments  (3,163)  -  (3,163)  (1,017)  -  (1,017)<br>Other  -  -  -  (21,990) -  (21,990)<br>Total  (1,835,992) -  (1,835,992) (2,147,027) -  (2,147,027)<br>Expenditure on:<br>Raising Funds  -  213,964  213,964  -  127,258  127,258<br>Charitable Activities  56,740  94,460  151,200  50,220  784,861  835,081<br>Charitable Activities - Transfer to NCC  1,000,000  -  1,000,000  1,545,000  -  1,545,000<br>Increase / (Decrease) in Loss<br>Allowance  (104,734)  -  (104,734)  121,603  -  121,603<br>Other  -  55,978  55,978  -  60,844  60,844<br>Total   952,006  364,402  1,316,408  1,716,823  972,963  2,689,786<br>Net (income) /expenditure  (883,986) 364,402  (519,584) (430,204) 972,963  542,759<br>Transfer between Funds  594,355  (594,355)  -  1,033,058  (1,033,058)  -<br>Other Recognised (Gains)/Losses<br>(Gains)/losses on Revaluation of<br>-  (1,997,933)  (1,997,933)  -  311,179  311,179<br>Investment Properties<br>(Gains)/losses of following Fair Value<br>-  (81,223)  (81,223)  -  (123,686)  (123,686)<br>assessment of Financial Investments<br>Other (gains)/losses  526  -  526  -  -  -<br>Net Movement in Funds  (289,105) (2,309,109) (2,598,214) 602,854  127,398  730,252<br>Reconciliation of Funds<br>Total Funds Brought Forward  (373,464) (28,410,313) (28,783,777) (976,318) (28,537,711) (29,514,029)<br>Total Funds Carried Forward  (662,569) (30,719,422) (31,381,991) (373,464)  (28,410,313) (28,783,777)<br>**----- End of picture text -----**<br>


13 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **Balance Sheet as at 31st March 2022** 


**----- Start of picture text -----**<br>
Note  2021/22  2020/21<br>(£) (£)<br>Fixed Assets<br>Property Investments  6  31,865,896  29,818,293<br>Investments at Fair Value through Statement of Financial  7  732,310  651,087<br>Activities<br>Total Fixed Assets  32,598,206  30,469,380<br>Current Assets<br>Debtors (net of Bad Debt Provision)  8  991,456  927,800<br>Cash at Bank  8  2,026,775 495,641<br>Total Current Assets  3,018,231  1,423,441<br>Liabilities<br>Creditors - Amounts falling due within one year  9  (2,390,739)  (1,085,055)<br>Net Current Assets  627,492  338,386<br>Total Assets Less Current Liabilities  33,225,698  30,807,766<br>Creditors - Amounts falling due after one year  9  (40,879)  (40,879)<br>Long Term Borrowing  9  (1,802,828)  (1,983,110)<br>NET ASSETS  31,381,991  28,783,777<br>The Funds of the Charity<br>Endowment Fund  (30,719,422)  (28,410,313)<br>Unrestricted Funds  (662,569)  (373,464)<br>TOTAL CHARITY FUNDS  (31,381,991)  (28,783,777)<br>**----- End of picture text -----**<br>


Approved by the Trusts and Charities Committee and signed on behalf of Nottingham City Council by: 


Date:  29/11/2022 

Clive Heaphy - Corporate Director of Finance and Resources 


Date: 11/11/2022 

Cllr Angharad Roberts (Chair), Signed for the Trustees 

14 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **1.  Accounting Policies** 

## **General Principles** 

The Annual Report summarises the Bridge Estate transactions for 2021/22 financial year together with its financial position at 31 March 2022. 

This section explains the accounting policies applied in producing the Annual Report for the Bridge Estate. Accounting policies are the principles, bases, conventions and rules by which transactions are recognised, measured and presented in the accounts. 

## **Basis of preparation and assessment of going concern** 

The accounts have been prepared in accordance with the charity's governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and UK Generally Accepted Accounting Practice. The trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern. 

The cash flow statement forms part of the Nottingham City Council's group accounts. 

The Trust constitutes a public benefit entity as defined by FRS102. 

The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £1. 

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. 

## **Income Recognition** 

Income receipts are accrued and accounted for in the period to which they relate.  Payments received in advance are recognised as a liability on the balance sheet within creditors. 

Rental income is recorded when the invoices are raised and become due for payment. 

## **Expenditure Recognition** 

All expenditure is accrued and accounted for in the period during which they are consumed or received. Accruals have been made for all material sums unpaid at the year-end for goods or services received or work completed. Receipts received in advance are recognised as an asset on the balance sheet within debtors. Expenditure is classified under the following activity headings: 

## Raising Funds 

Costs of raising funds includes premises expenses, which includes day to day maintenance, insurance and external audit fees.  These are initially charged against the Endowment Fund in the SoFA, as recommended in the Charities SORP, but transferred to Unrestricted Funds within Gross Transfer between Funds. 

## Charitable Activities 

The costs of governance arrangements, which relate to the general running of the charity, as opposed to direct management functions inherent in generating funds, service delivery and programme.  These activities provide the governance infrastructure, which allows the charity to operate and to generate the information required for public accountability. 

15 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

## Charitable Activities – Transfer to NCC 

The net expenditure or income of the Bridge Estate is transferred to NCC’s General Fund for the benefit of the citizens of Nottingham. 

## Other 

Expenditure which does not fall into any of the above categories. 

## **Irrecoverable VAT** 

Irrecoverable VAT is charged against the expenditure heading for which it was incurred. 

## **Other recognised Gains/(losses)** 

The gains/(losses) on investment assets, represents the differences between proceeds received on disposals and their market value at the beginning of the year. 

The gains/(losses) on revaluation of investment assets represents material changes in property valuations. 

## **Fixed Assets** 

## Investment properties 

Investment properties are those used solely to earn rentals and/or for capital appreciation for the Bridge Estate.  Investment properties are measured initially at cost. They are not depreciated but are revalued annually according to market conditions at year-end. 

The 2021/22 valuations have been carried out in accordance with current RICS. Gains and losses on revaluation and on disposal are shown within the SOFA. However as revaluation and disposal gains and losses are not allowed by statute to impact on the financial activities of the Bridge Estate, they do not form part of the income and expenditure totals, but provide details within the SOFA of the movement on the Endowment Fund.  Any sale proceeds are posted to the Endowment Fund. 

Rental income from investment properties is credited to investment income within the SOFA. 

Where land or property is held as a community asset, dedicated for the enjoyment of the public in perpetuity they are given a value of £NIL. 

## Other investments 

Other investments are included in the Balance Sheet at market value and include loans and government stocks. 

## **Accruals of Expenditure and Income** 

The accounts of the Bridge Estate are maintained on an accruals basis. This means that sums due to or from the Bridge Estate during the year are included whether or not the cash has actually been received or paid in the year.  Where income and expenditure has been recognised but cash has not been received or paid, a debtor or creditor for the relevant amount is recorded in the balance sheet. Cash received or paid and not yet recognised as income or expenditure is shown as a creditor (receipt in advance) or debtor (payment in advance) in the balance sheet and the SOFA adjusted accordingly.  Fees, charges and rents due from customers are accounted for as income at the date that the Bridge Estate provides the associated goods or services. 

This policy is not followed for certain quarterly payments, including gas and electricity, where expenditure is recorded at the date of meter reading rather than being apportioned between financial years. This policy is 

16 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

consistently applied each year and, therefore, does not have a material effect on the year's accounts. 

Where it is doubtful that a debt will be settled, the balance of debtors is written down and a charge made to the SoFA for the income that might not be collected. This bad debt provision is offset against the debtor balance on the balance sheet. 

## **Cash** 

Cash is represented by deposits held within the Bridge Estate bank account. 

## **Funds of the Charity** 

## Endowment fund 

The capital of the Bridge Estate is held as a permanent endowment fund. There is no power to convert the capital into income; the fund must generally be held indefinitely. 

## Unrestricted income fund 

This fund has been established so that the cost of repairing Trent Bridge was spread out and does not impact on the finances of the Charity in a particular year. In 2006/07 an additional Renewal and Repairs Fund was set up to meet the cost of repairs to the housing stock held by the Bridge Estate. Annual contributions are made to the fund and repairs costs are charged to the SoFA in the year they are carried out, with transfers being taken from the fund. 

The income from the fund is unrestricted income but it is expendable at the discretion of the active trustees in the furtherance of the charity’s objectives. 

## **2. Tax status of the Bridge Estate** 

Bridge Estate is a registered charity and is therefore exempt from income tax and capital gains tax on income and gains falling within S531 ITA 2007 and S256 CGA 1992.  Nottingham City Council is the sole trustee of the Bridge Estate and, in accordance with VAT notice 749, is entitled to recover VAT incurred on the expenditure of the Bridge Estate under section 33 of the VAT Act 1994. 

## **3. Summary of Fund Movements** 

|**3. Summary of Fund**|**Movements**|
|---|---|
||**2021/22**<br>**2020/21**<br>**Endowment**<br>**Fund**<br>**Unrestricted**<br>**Funds**<br>**TOTAL**<br>**Endowment**<br>**Fund**<br>**Unrestricted**<br>**Funds**<br>**TOTAL**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**|
|**Balance B/fwd**<br>Incoming<br>Resources<br>Outgoing<br>Resources<br>Transfers<br>Gains and Losses<br>**Balances C/fwd**|(28,410,313)<br>(373,464)<br>**(28,783,777)**<br>(28,537,711)<br>(976,318)**(29,514,029)**<br>-<br>(1,835,992)<br>**(1,835,992)**<br>-<br>(2,147,027)<br>**(2,147,027)**<br>364,402<br>952,006<br>**1,316,408**<br>972,963<br>1,716,823<br>**2,689,786**<br>(594,355)<br>594,355<br>**-**<br>(1,033,058)<br>1,033,058<br>**-**<br>(2,079,156)<br>-<br>**(2,079,156)**<br>187,493<br>-<br>**187,493**<br>**(30,719,422)**<br>**(662,569)**<br>**(31,381,991)**<br>**(28,410,313)**<br>**(373,464)(28,783,777)**|



## **Incoming Resources** 

As a general rule, incoming capital resources to the Bridge Estate are generated by the sale of investment properties or the payment of premiums in respect of the re-gearing of long leaseholds.  The Bridge Estate capital fund is a permanent endowment fund which means that it cannot usually be spent as income.  Thus, 

17 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

any income generated by the sale of freehold land or buildings, or the re-gearing of long leaseholds on payment of a premium, must be reinvested in the purchase or improvement of freehold land and buildings. 

At the discretion of the Charity Commission, funds may be spent on infra-structure assets but any sum spent will have to be recouped and the capital fund replenished. 

## **Other Recognised (Gains)/Losses** 

The annual revaluation of the property portfolio has been completed in 2021/22 resulting in a net gain on revaluation of assets of £1,997,933. 

## **Unrestricted income fund** 

During 2021/22 the Bridge Repairs Fund received a contribution of £104,537 which is set aside for future works to the Bridge (£590,463 drawdown 2020/21), while the unrestricted funds had a contributions of £346,737 (£47,702 2020/21). 

## **4. Income and Expenditure Detailed Analysis** 


**----- Start of picture text -----**<br>
2021/22  2020/21<br>£  £<br>INCOME<br>Rent (net of movement in Loss Allowance)  (1,880,421) (1,903,994)<br>Service Charges  (57,142) (98,423)<br>Interest Received  (3,163) (1,017)<br>Other  - (21,990)<br>(1,940,726) (2,025,424)<br>EXPENDITURE<br>Raising Funds<br>  Agency and Contracted Services<br>    Cleaning  97 597<br>    Grounds Maintenance  (7,955) 18,365<br>  Investment Management Costs<br>    Business Rates  153,348 17,708<br>    Energy Costs & Water  (455) 47,624<br>    Insurance  (20,760) 20,760<br>    Property Maintenance (inc Bridge)  (1,291) 1,095<br>    Rent Collection  22,534 27,428<br>    Supplies and Services  68,446 34,641<br>Charitable Activities<br>   Surplus transferred to NCC General Fund  1,000,000 1,545,000<br>-<br>   Property Repairs (inc Bridge)  624,772<br>   Audit Costs  10,650 10,150<br>   Support Costs<br>    Management and Administration  140,550 159,200<br>Other<br>   Interest Payable  55,978 60,845<br>Movement to Funds<br>Contribution to / (from) Repairs Fund  104,537 (590,463)<br>Contribution to / (from) Unrestricted Fund  415,047 47,702<br>1,940,726 2,025,424<br>**----- End of picture text -----**<br>


18 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **5. Allocation of governance and support costs** 

The breakdown of Charitable Activity support costs and how these were allocated between governance and other costs is shown below: 


**----- Start of picture text -----**<br>
2021/22<br> Governance   Other<br> Total   Basis of Apportionment<br>Related (*)  Support Costs<br> £    £    £<br>Audit Fees  10,650  10,650  -  External Provider's Annual Fee<br>Computer Costs  17,100  -  17,100  Software Usage<br>Recharged Staff Costs  55,140  23,548  31,592  Staff Time<br>Property Services Costs  68,310  22,542  45,768  Asset Valuation Costs/Staff Time<br>151,200  56,740  94,460<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
2020/21<br> Governance   Other<br> Total   Basis of Apportionment<br>Related (*)  Support Costs<br> £    £    £<br>Audit Fees  10,150  10,150  -  External Provider's Annual Fee<br>Computer Costs  17,100  -  17,100  Software Usage<br>Recharged Staff Costs  55,140  23,548  31,592  Staff Time<br>Property Services Costs  86,960  16,522  70,438  Asset Valuation Costs/Staff Time<br>169,350  50,220  119,130<br>**----- End of picture text -----**<br>


(*) Governance Related Costs are met entirely from Unrestricted Funds. 

## **6. Investment Property** 

Investment property represents assets owned by the Bridge Estate, primarily property and buildings all situated in the United Kingdom.  The portfolio of property is mainly investment properties which are valued by Nottingham City Council Property Service Chartered Surveyor (member of the Royal Institution of Chartered Surveyors) and in accordance with the Royal Institute of Chartered Surveyors Appraisal and Valuation Standards Manual (the Red Book).  Properties held by the Bridge Estate are non-operational properties and as such, the valuation is on the basis of open market value.    This area is managed by the Director of Economic Development and Property. 

Investment properties in the portfolio are valued at market value in accordance with the Charities SORP.  Some properties have a de-minimis value of £NIL as they are community assets, dedicated for the enjoyment of the public in perpetuity. 

Assets that are sold are re-valued pending sale and written out of the accounts at this value. 

19 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

|**Analysis of the movement in Investment Property**|**2021/22**<br>**2020/21**<br>**(£)**<br>**(£)**|
|---|---|
|Carrying value (market value) at beginning of year<br>Add: Capital Expenditure Incurred<br>Add/deduct: Net gains/(losses) on revaluation<br>**Carrying value (market value) at end of year**|29,818,293<br>29,952,336<br>49,670<br>177,136<br>1,997,933<br>(311,179)|
||**31,865,896**<br>**29,818,293**|



The following properties whose value is greater than £1m, are considered to be material in the context of the investment property list: 

|**Property**|**Value**<br>**2021/22**<br>**Value**<br>**2020/21**<br>**£**<br>**£**|
|---|---|
|Century House, 8-18 Chapel Bar<br>Woolsthorpe Close, Off Wigman Road, Bilborough<br>Eastcroft Depot, London Road<br>The Alexander Fleming Building, Nottingham Science and Technology Park,<br>University Boulevard<br>Land: 3 Acres at Bull Close Road, Lenton Lane Industrial Estate, Nottingham<br>Castle Gate House, 24-30 Castle Castle, Nottingham<br>34-38 Lister Gate<br>Units 21-29,Whitemoor Court,Nuthall Road|1,519,743<br>1,501,632<br>3,842,184<br>3,655,902<br>3,150,000<br>2,900,000<br>1,913,000<br>2,000,000<br>1,076,500<br>900,500<br>1,125,000<br>997,000<br>1,670,000<br>1,795,000<br>3,567,000<br>3,458,353|



## **7. Other Investments** 

||**2021/22**|**2020/21**<br>**£**|
|---|---|---|
||**£**||
|Government Stocks<br>COIF Accumulation Units|1,385|1,385<br>649,702|
||730,925||
||**732,310**|**651,087**|



|**Analysis of the movement in Other Investments**|**2021/22**|**2020/21**<br>**£**|
|---|---|---|
||**£**||
|Carrying value (market value) at beginning of year<br>Add/deduct: Net gains/(losses) on revaluation<br>**Carrying value (market value) at end of year**|651,087|527,401<br>123,686|
||81,223||
||**732,310**|**651,087**|
||||



20 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **8. Analysis of current assets** 

|**8. Analysis of current assets**|||
|---|---|---|
|**Debtors**|**2021/22**|**2020/21**<br>**£**|
||**£**||
|Trading Activities<br>Amounts due from subsidiary and associated undertakings|677,497|370,685<br>557,115|
||313,959||
||**991,456**|**927,800**|



|**Cash**|**2021/22**|**2020/21**|
|---|---|---|
||**£**|**£**|
|Cash at bank|2,026,775|495,641|



## **9. Analysis of current liabilities and long term creditors** 

|**9. Analysis of current liabilities and long term creditors**|||
|---|---|---|
|**Current Liabilities**|**2021/22**|**2020/21**<br>**£**|
||**£**||
|Amounts due to subsidiary and associated undertakings<br>(including subsidiary Receipts in Advance)<br>Other creditors<br>Receipts in Advance|(1,823,045)|(713,589)<br>(153,728)<br>(217,738)|
||(185,898)||
||(381,796)||
||**(2,390,739)**|**(1,085,055)**|
||||
||||
|**Long Term Creditors**|**2021/22**|**2020/21**<br>**£**|
||**£**||
|Rent Bonds<br>Long Term Borrowing|(40,879)|(40,879)<br>(1,983,110)|
||(1,802,828)||
||**(1,843,707)**|**(2,023,989)**|
||||



## **10. Analysis of Lessor Operating Leases** 

||**2021/22**|**2020/21**<br>**£**|
|---|---|---|
||**£**||
|Not later than one year<br>Between one and five years<br>Later than five years<br>**Total**|959,314|1,115,530<br>1,858,536<br>11,503,029|
||1,985,399||
||11,297,809||
||**14,242,522**|**14,477,095**|
||||



21 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **11. Analysis of net assets between funds** 

|**11. Analysis of net assets between funds**||
|---|---|
||**2021/22**<br>**2020/21**<br>**Endowment**<br>**Fund**<br>**Unrestricted**<br>**Funds**<br>**Endowment**<br>**Fund**<br>**Unrestricted**<br>**Funds**<br>**£**<br>**£**<br>**£**<br>**£**|
|Investment Properties<br>Other investments<br>Debtors (net of Bad Debt Provision)<br>Cash at Bank<br>Creditors - Amounts falling due within one year<br>Creditors - Amounts falling due after one year<br>Long Term Borrowing|31,865,896<br>-<br>29,818,293<br>-<br>732,310<br>-<br>651,087<br>-<br>-<br>991,456<br>-<br>927,800<br>104,327<br>1,922,448<br>104,326<br>391,315<br>(180,283)<br>(2,210,456)<br>(180,283)<br>(904,772)<br>-<br>(40,879)<br>-<br>(40,879)<br>(1,802,828)<br>-<br>(1,983,110)<br>-|
||**30,719,422**<br>**662,569**<br>**28,410,313**<br>**373,464**|



22 



BRIDGE ESTATE ANNUAL REPORT 2021/22 

## **12. TRANSACTIONS WITH RELATED PARTIES** 

NCC elected members are representing the Council as sole trustees of the Bridge Estate and any related party transactions must be disclosed in accordance with Charity SORP. 

A loan of £3,922,881 was approved in 2012/13 to assist in the purchase of an investment property, this loan is for a period of 20 years and for accounting purposes is treated as long term borrowing.  The payment started annually on the 31 March 2014. The payments will be made up of £180,283 principal and 2.70% pa interest on the average loan balance in the year.  In 2021/22 the Bridge Estate paid £55,978 interest (£60,845 2020/21), which is shown within the SoFA under Other Expenditure and short term creditors, while the outstanding long term borrowing at the 31 March 2022 is £1,802,828 (£1,983,110 2020/21) which is shown in the balance sheet. 

Monies due from NCC and other group entities (Robin Hood Energy and Nottingham City Homes) at the end of the financial year to the Bridge Estate was £313,959 (£557,115 2020/21). Monies owed to NCC and group entities was £1,823,045 (£713,589 2020/21). 

In addition to transactions involving investments and cash balances, there are other transactions between the Charity and the City Council in respect of the day-to-day operations of the Charity. 

In the year to 31 March 2022 various City Council departments and other Council group entities paid a sum of £407,632 (£627,370 2020/21) in respect of investment properties let by the Charity at current market rents subject to periodic reviews and related service charges.  This income is included in the SoFA. 

NCC charged the Bridge Estate £140,550 in the year to 31 March 2022 (£159,200 2020/21) in respect of officers’ time and management and maintenance of properties.  Of this total it is estimated that £46,090 (£40,070 2020/21) is attributable to the governance of the Charity.  These costs relate to the preparation of the final accounts, valuation fees, legal fees and attendance and preparation for the Trusts and Charities Committee meetings. 

The Charity had a credit of £7,858 (charge of £18,962 2020/21) for grounds maintenance and contract cleaning, while insurance was a credit of £20,760 (charge of £20,760 2020/21) with to NCC.  These transactions are shown within Raising Funds in the SoFA. 

Surplus of income over expenditure during the year is transferred to NCC’s General Fund for the improvement of the City of Nottingham and the public benefit of its inhabitants £1,000,000 (£1,545,000 2020/21). 

During the current financial year, trustees received remuneration of £nil (£nil 2020/21) and had expenses reimbursed of £nil (£nil 2020/21). 

23 



Ind•￿nd•n1 Audttorfs R•p(Kl to th• Trnsl•os of W Estat•
¢)plnlon
We have a￿￿ed tha fb*al ststemerts of Estato (the'chariv) kn the year end8d 31 IAarch 2022 whic*
comprise thè SL2tement ol Financial Actmbes. the Bal8rw Slwt 3rTrd notes to th8 financial stai8m8nts, including
a summary of dgnrfunt a¢¢ountiry FX)li¢igs. The financial retxxting fra1￿01* that has b&en applfft1 in
preparation 18 applicab￿ law arn1 United Km9￿*)) A￿untr.￿j StsrMlard$, inclwling Finan(gal Reportlng Standard
1￿2 The Finanual R6pty*rKJ Sl8ndwd 0￿￿1(￿&10 in Ihe UK and R8pubk Ireland IUnrte11 Klrydom Generaltry
Aecepted Accountlrg PracOc81.
In our oplnlon th8 flnando18l*m￿ts:
gNe a t￿￿ ond fak of the 8t8te of the thariV8 affa*8 88 at 31 March 2022. ond of Ws I￿OM¥*j
have teen preparfyl In a¢o)rdgnc• wlth lh& (equlr8menl8 ofthe Charfll8ts Act 2011.
8•Bh for oplnlon
We cOndUd￿ our audbt In ￿nc& th Inlemallon* Stsnda(ds c41 Aud￿n9 IUKI {ISAs (UKII and 8ppNc8tl8
law. Our TesF4Jnslt41ft1es und8r thoso stsndards Arn furthw d88cn.￿ in th8 AudltoeL4 respon8iblhtigs ts th& audll
01 th8 financkl 5tateff￿ts 8ectSon of our rewrt. Wè 8r8 of the dwrlty In ￿COrdanCe wlth tho othlc
requirernents that are r818V8nt to our gudlt of the ffingnoal stslemonts in the UK, the FRC'S Elh1¢81
standard. and ￿ have fU￿l￿d our 0th8r èthlcal r8spons*Jiltb&s In a¢￿18n￿ writh these requiremonts. We
bdwe Ihal the audil evidenc8 we hava ckntsin8d16 fArffi￿1 a￿1 approprtato ￿ provkle a bA818 lor our q)Inlon.
Con¢lu•lon• r•l*tlng to 9olng conc•m
In auditing the financS818tstement8. conchJJ8d thal the tru•t••8' ol the gdng rA>nc8m ba￿$ of
ac￿Un¥ng In the of the finar￿jaI 8tatsm8nts18 appToprf*.
Ba8811 on Ihe wort¢ ￿ have p8rfoftn&1. ¥** have not kJen1￿ any matsrf81 wwt81nO&8 rokqtlrYJ to 0¥￿t9 or
condllions th81, IrKlividually or Col￿th¥elY. may Gg8t styllknt do￿1 on thD thortys 8b(lty lo ¢￿tInUe 88 a golng
cortem for a p8rh)d of al k8a8t ￿￿1¥• nh)nlh¥ frun when Ihe financial stat￿nant$ ar¥ authod8od for188U8.
Our regpondblllbs and the of tho tr￿te88 rnw>Bct to golng con•n affj doxribed In th8
rdev8nl 8eclknn8 of th18 reporL
IXi•r Inforn
Th9 0th8r Informgtth coTryb*8 Iifomwkn Indudod In th• tru8ts88 annual report2, olhw than th8 finandal
8t8tem6nts and our audltorfs report thewn. Tho tW81088 arn ro$r￿thI8 for the 0th8r inform8b.on ¢onts1￿d
within the onnual repr*t. Our q)inb)n cfi Ihe fttwcbal statew￿1& does not cover th8 other rrfofmguon and. oxcepl
to the extsnt oth8Th￿0• *xplW 8t8tod In (w r•port V** ts) not exprB88 8rby I￿rn of a￿￿ee conclusion
Our responsknillty 18 to raad th8 Othér Infom)aliM and. kn doing SO. fXffi8idor whether tho ¢)1h9r Informallon 16
malerialty incongistenl the ffinarwial 8tatsm8nts or our kn¢y4A8due obtsined in th8 course of lh& audit or
otheTh*i8e aPFearB to be materlamy n￿SsIOt0d. If V*F Idonofy matorlal Incon￿$1￿￿8 or 8PP8rent m8t8rtal
mi3St3tsments, we are required to detennine wheth&r thls gfves rlse lo a m81grial m185tsternent In th9
fin8rtial statements themselves. Ir. based on the work ￿ have perforwl. we cor¢lwJe that there is a matthlal
mi88tatsmenl of tIw8 (rther Infrymatk)n. wo arg roqulrod to rwt that f•*
We h8vg r￿IhIr¥j to (vtKNt ffi this re98nJ.
Matt•rn on whl¢h w• •r• r•qulrnd to r•wl by •x¢•ptlon
We have nothlro to feport in r88pect of the fr)l￿ryj rnalt￿ In rnlatlon to vltkh ts Charllles {k(x)unt8 and
ROF￿1$) Regulthns 2008 roquir? us lo rekvJrt to y(w rf. in our opinKn.'
the Informatkn gly￿ In tha finandal ststem￿ 18 kn any matstsl rbwt V*lth fv tru$te¢8'
Tewt,. or
suTritnt a¢eounting records have Th)t been kept: c
the fln8ndal *alwnent8 aro wvjt in agTert the a￿￿tt1￿j r￿￿d$. or
we have not all t￿ informth eX￿￿ti￿9 requ￿ for our aLKlil.

Ind•p•nd•nt A￿1110￿• R•pr*t to th• Truth of &idg• Esl¥ts l¢orrbnwd)
R•8pon8lbllltl•8 Of trust••8
As gyplaSwl moro fvlty In the truslg9s' resp)ngbilths $1oleftMI set out on pwje 13, th8 trustees atg resp(￿81￿9
for the Pfeparation of financial slatements a tn* arxl frdir vb*w. for such wrtemal control as the
trustees d&temiing Is n￿SSary to enBble the preparatkm of ffin0￿1 8tatern￿ that are free from m8t8rtal
misslat8m8n¢ w￿th￿r￿U• to fr￿￿5 or ￿r[*.
In preparfThJ the lIna￿al ststem9nts. ￿ Irusteo$ arg resFQnslb￿ fc* aswsng the charity's ability lo conllnue a8
a g￿r0 concem. disclosn9. as aFWuble, matters rdated to goirKJ corKem USI￿ the goi￿ c4Jncom b38is of
accounting unloss the tn￿ dther Intend lo Ilquklgte th8 ctharlty or to Ca888 rWdUL￿S, ￿ have ￿ reB11811c
aliematNe but to do so.
Audltor'• re•pon•lbllltlM lor th• aualt ofth• flnandal 8lknnl•
We have b88n appointed as a￿d￿r uThJer $8don 144 of tha Charftsgs Act 2011 and rewrt in accordgnc• ￿th
regulations made uTrJer 88¢Xon 154 of that A
r oblectives are to otlain rea8(￿able aBsur￿￿e 8t￿￿ tha ffinaftd￿ slaiwnants a8 a arg fr98
from materlal Th￿$s1aleIr￿nt, whether due to fraud or evror. and to i8sue an 8udtto¢s report Ihat inclu¢*s o
oplnion. Rea￿nable 8s6urarKe is a ligh level of assufance bul 18 nol a guarnntsè th818n audr( conducted In
accord8nco vAth ISA8 (UK) wll 8K¥ay3 detect o rnaterial m1s9tste￿nI tknn it exists. Misstatsments can ari$9
from fraud OT error arKI are a)n8kJ8r•J matorial if, iThJiv*Jualfy or in tho ￿g￿gate, they could Teag)nobty b8
eXp￿ted to Snlluen¢e the e¢crnmic deci8*Jns of users tkn on the bastB of the88 finar￿lI Stalanenlts.
IrregularfU88, IndLK#ng fraud, are knstsrtts ol noTrtrAIwl￿ V•th *)d tsgulallons. W& 098b3n pr(Kedw•8
In line our resP￿li￿litI.05, ou111r￿d above. to de*ct material mi88tatements In re8P8cI of Irwularitie8.
In¢ludlng hud. The 6xtent to wthlch our procedLYe8 aTr capab18 of d8t8cOng )rr￿18￿￿•s. knduding fraud, 18
detslled below. whkh knclLth8 how have a886888d rtsk •)d ￿r aprrtoath lo responding to rfsk8 Idènufied:
En8urfng that lh• ALk11t Te¥m had the ¢(¥nfft￿P and capai4lNle8 to hJen¢lfy or r￿gnIse noTr
complIan￿ ¥￿th 18w8 and r8guWn8. wlth sp￿11￿ aro881•.g. rxDp8ty valu8lifffiI havlffj bèèn
OUUIn￿ al the ￿annIng stage.
Enqulry of manag8m&nt and vAth ¥round •Xu81 and tthY81 Iltwtth and cl8kn#
end fraudubnt tr9n8￿(M8.
R8vI8¥￿TrJ mI￿rte$ of megtlrvJ8 ol ch8rged ￿ govemarKe.
Rov19¥￿rrtj ffinanclal 8tstemont di8dosw arnl 1o&lng lo dc¢umontBllon Io 898888 complla
th applIca￿a law8 and regulation$.
Audkn"ng tho rf8k of monwenl o¥wrld8 ol c¢ntyol8. thioiw t￿ng loumal entrf•8 other
gdlustm8nts for app￿a19n9$s.
Becau8e of th8 Inherent lknltthn8 of ￿ S￿1￿, thw8 1$ a rffjk tw n¢X dolect al kr8gularttle8, Indudlng
Ih08e laadlng to a matsdal mlsstatem8nt in tho financial statomonts or notFcompliarrA with r8guLqtbn. This risk
Increases the mre thal com￿lance wth a 18w or wulakn 18 remove*J from the events and tran￿l￿n$
relleded In the finandal stalement6, as we wll b8 less lIke￿ to t￿cl￿O awar& of Instances of non-compllgncg.
The rt8k 18 BIBO greatsr rtyarflTrJ ITf&3ularfO88 oraxrfng due to fraud rathar Ihon wor, 88 frwd Involve8
Inlentronal conCealTh￿l. f￿gery, collusion, omwlcffl or rni6repre8entsUon.
A d88¢rfptkin of ow r8efvin8lt416tbes of th8 finarKlal Stat•m￿ 18 cm lh8 Flnandgl
RepoTUng Coundl'$ at.. %My.frc.(¥g.thla￿jItm￿8Ib1lit￿ts. This fm part of our
auditorf6 report.
of ¢)ur rwt
Th18 rgport Is mad9 soldy to thg ¢h8dty's trustees, a8 a in ac£tydance wth Part 4 of lh¥ Chèri1￿#
(Accounts and ReFQrtsl 2￿8. audlt work has uTrJort*en 80 that wo mlght $1918 10 the
chanty's trustees t￿se matters ￿ are requir&l to stalo io thèm in on audilorf• rwrt aThJ lor no oiher purpose.
To the fvllest exterrt perrnKtsd by Lqw, we do Tr)t accept ￿ as8um Teswn4billty to anyonè other the charlty
and the chari￿s tFUStoes as a body. for our audit*rrfK for thls reFtyJt. orfor the have fomiod.
Roger8 s[￿￿r
Stalutory Audit
Pglham Ro*J
Nottingh8m
NGS 1AP
1/12121
Rc￿$￿S Sp8nc8f Is to as an 8uditry in twrns of ￿l￿)n 1212 of the C(¥npanl8s kt 2006.