**Charity registration number 235256**
**THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK**
**1944 CHARITABLE TRUST**
**ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
**THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST CONTENTS**
||**Page**|
|---|---|
|Legal and administrative information|1 - 2|
|Trustee's report|3 - 6|
|Statement of Trustee's responsibilities|7|
|Independent examiner's report|8|
|Statement of financial activities|9 - 10|
|Statement of financial position|11|
|Statement of cash flows|12|
|Notes to the financial statements|13 - 28|
**THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST LEGAL AND ADMINISTRATIVE INFORMATION**
## **Trustee**
The Company of Merchant Adventurers of the City of York
|**Board of the Trustee**|Mr A J Barron||
|---|---|---|
||Mr J J W Boddy|(Resigned 8 April 2022)|
||Mr P A Guest|(Resigned 8 April 2022)|
||Mr T P Marks||
||Mr P M Shepherd||
||Dr P A Thake||
||Dr A Suggett||
||Dr D J Tomlin||
||Mr R B Vernon|(Resigned 8 April 2022)|
||Mr J D Barstow||
||Mr F H Brown|(Resigned 8 April 2022)|
||Mr J B Horsley||
||Mrs E Woods||
||Mrs R Thompson||
||Mr R Smyth||
||Mr A Green||
||Mr R Menage||
||Mrs J Bartram||
||Mr M Vander Weyer||
||Mrs J Murray|(Appointed 8 April 2022)|
||Mr R A Shaw|(Appointed 8 April 2022)|
||Mr N A Sampson|(Appointed 8 April 2022)|
||Mr W J P Derby|(Appointed 8 April 2022)|
|**Charity number**|235256||
|**Governor**|Mr A J Barron|(Resigned 8 April 2022)|
||Dr D Tomlin|(Appointed 8 April 2022)|
|**Honorary Chamberlain**|Mr J W Machin FCA||
|**Clerk to the Company**|Brigadier J E Richardson||
|**Key Management Personnel**|Miss L E Marshall||
||Brigadier J E Richardson||
||Major (Rtd) R Haigh||
|**Principal address**|Merchant Adventurers' Hall||
||Fossgate||
||York||
||YO1 9 XD||
|**Independent examiner**|N Clemit ACA, FCCA||
||JWPCreers LLP||
||Chartered Accountants||
||Genesis 5||
||Church Lane||
||York||
||YO10 5DQ||
- 1 -
**THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST LEGAL AND ADMINISTRATIVE INFORMATION**
**Bankers** CAF Bank Limited 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ **Solicitors** Harland & Co 18 St Saviourgate York YO1 2NS **Investment advisors** Sarasin & Partner LLP 100 St Paul's Churchyard London EC4M 8BU
- 2 -
## **THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST TRUSTEE'S REPORT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
The Company of Merchant Adventurers of the City of York is incorporated by a Royal Charter of 1581 from Queen Elizabeth I and is the sole Trustee of the registered charity numbered 235256, Trust Property Administered in Connection with The Company of the Merchant Adventurers of the City of York. The Company owns the Merchants’ Hall which is not part of the Charitable Trust. The working name of the registered charity numbered 235256 is The York Merchant Adventurers’ 1944 Trust. The Company as Trustee, through its Court of Assistants, presents its report along with the financial statements of the charity for the year ended 31 December 2022. The Trustee has adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the charity.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charitable Trust'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 published in October 2019".
The legal and administrative information page forms part of this report.
## **Objectives and activities**
The 1944 Trust has as its objects: (i) the maintenance of the Hall and Chapel so as to be available for the education of the visiting public who wish to study its history and architecture and (ii) the relief of poverty among persons within certain defined categories.
The Trust maintains the Hall, Chapel, archive and collections to the highest standard regardless of cost. The Hall and Chapel are open 7 days per week for visitors, except for the Christmas and New Year period. Educational visits for schools are organised in conjunction with York Archaeological Trust.
The Trust has a small group of pensioners who were involved in trade in the area of benefit and who have fallen on hard times through whatever cause, maintaining the centuries-old tradition of the Company. The Trust pays small pensions to these individuals and the Wardens of the Company also visit twice per annum. In addition, an annual tea party is also held for these and other pensioners from within the area of benefit.
The Trustee has paid due regard to guidance issued by the Charity Commission in deciding what activities the Charitable Trust should undertake.
## **Achievements and performance**
## **Maintenance of the Hall and Chapel**
The Hall is in year 2 of its Quinquennial inspection programme. All urgent work was completed in year 1 (2021) with routine work completed in year 2 (2022). There are no outstanding recommended works or repairs outstanding.
The Hall remained closed for a 10 day period at the outset of the year to enable periodic maintenance that is not possible when the Hall opens every day. All wooden floors were treated and protected. Furniture and Treen was inspected cleaned and polished. Undercroft walls were inspected and, where needed, repainted with lime wash.
Following a report on conservancy and protection of the collection all windows have been lined with low Ultra Violet (UV) filters reducing the received UV levels by 80%. A programme to replace all filament bulbs with LED replacements has been completed where the fittings are compatible. A further lighting project in 2023 will address the remaining none-LED lights.
## **Gardens**
The Hall’s gardens are maintained to a high standard as a peaceful public refuge at the heart of the busy city. The garden escaped damage as a result of leather jacket larvae over winter 21/22 which attracts feeding corvids causing damage to the grassed areas. However, damage has been caused towards the end of 2022. This will be repaired and addressed in 2023.
Throughout the summer the garden was presented in pristine condition with much effort undertaken to replant bare borders, thin out invasive planting and create a pleasant and relaxing environment for the outside café to thrive and attract custom.
As part of the strategic plan to develop the garden a stone pinnacle, previously part of York Minster, was installed in the garden and dedicated to Her Late Majesty’s Platinum Jubilee. It was unveiled by the Lord Mayor and Governor as part of a well-attended summer garden party.
- 3 -
**THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST TRUSTEE'S REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **The Fossgate Properties**
These 19th Century, and earlier, properties are all listed either Grade II* or II and are owned primarily to protect the curtilage of the Hall and listed as heritage assets rather than investment properties.
Routine repairs and servicing took place throughout the year. The current lease of No. 36 Fossgate will end at the end of January 2023 when we will take back the property and fully refurbish. This property has not had any major work, beyond repairs, for the last 30 years. An additional £5,000 transfer has been made to the Fossgate Property fund to bring it to £100,000 to fund the refurbishment in 2023.
The Designer Dress shop at No. 42 Fossgate was sold as a business and had a new lease accepted by the new business owners. Minimal work was required as the business continued in its same guise. All other properties are in lease and with the exception of the Hairy Fig at No. 38 & 39 will have new rents applied early 2023. The Hairy Fig owners are not keeping to their terms of their lease, we are currently holding over and taking legal action to rectify the unsatisfactory position.
## **The Company’s Pensioners**
Our current and remaining 5 pensioners continued to be supported throughout the year with summer and winter visits and pension payments. The Alms Committee, recognising the current cost-of-living difficulties, recommended an additional payment to be made to each pensioner. The Court agreed and an additional £500 per pensioner was paid in late summer.
In absence of our full complement of 13 pensioners the Alms Committee continued to recommend the alleviation of poverty through support to local charities. A grant of £10,000 was awarded, £5,000 each, to two York based charities looking after the needy of the City. The Charity ‘York Neighbours’ who were centrally supported, are being asked to identify, exercising due diligence, further pensioners who would be classed as needy whom the Company would establish as a pensioner. This project will develop over 2023.
## **The Museum**
**Accreditation.** The museum enjoys the status of an Accredited Museum under the scheme administered by Arts Council England.
**Exhibits.** The museum commissioned its first temporary exhibition, to run for a full year, examining and celebrating the relevance of York’s 2 rivers. This has been well received with many visitors accessing the on-line content and following the Hall trail. A full season of providing children’s period costumes has been well received and will be continued through 2023 during school holiday periods.
**Visitor Numbers and Income.** Operating in our first full year since the Covid 19 Pandemic visitor numbers have substantially recovered with the last quarter of the year being the best recorded. This recovery is expected to continue as a full programme will be undertaken in 2023 whereas some early and large scale events such as the Viking festival did not take place in the Hall as normal. Income performed slightly better than budget by 4.6%. Noticeably the international tourist market has resumed interpreted as a recovery of travel opportunities and the relative weakness of sterling to other currencies.
**Hall Hire Income.** Income from Hall Hire has fully recovered bettering budget by 7.16%. All but 1 of the postponed events from the Covid shutdown have either taken place or been refunded in line with our refund policy. Activity and future bookings out to 2024 give optimism for continued strong Hall Hire performance.
**Coffee Shop.** As mentioned in the Garden report the Café has been able to operate for a full year. The café now operates 7 days per week closing only when the Hall is booked for a private hire or being used for a Company event. The Café performed 3% better than budget, a target now 33% higher than the pre-covid budget aspiration. Rationalisation of supply has enabled the café to post a creditable operating surplus as well as providing an outstanding facility for members, visitors and the citizens of York who regularly frequent the facility.
**Gifts and Grants.** The Company has been informed of an unrestricted legacy of £100,000 from the estate of former Governor Darrell Buttery: probate is outstanding and hopefully will be received in 2023. The Court plan to allocate these welcome funds to support both the 1944 and 1988 Charitable Trusts. No legacies were received in year.
**Non-charitable activities.** A full Company programme of activity has been enjoyed by the members. The Clerk arranged a number of well supported visits to military establishments. A business breakfast programme has restarted in cooperation with the University of York. A member's talk followed by casual supper attracted a good audience from the Company and this successful format will be repeated in 2023. As previously highlighted, a summer garden party, a full Michaelmas Feast event and a full Venison Feast were held. Most of our formally invited guests were able to attend hosted by the Company and the membership.
## **Financial review**
The financial results for the year are set out in the accounts. Income from members’ donations continue to be a central pillar of the financial stability of the Company. This, along with the rental stream from lettings, strong visitor number and Hall hire backed up by a busy and vibrant café has produced a better than budget operational result for the Company.
- 4 -
**THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST TRUSTEE'S REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **Reserves policy**
The Trustee has considered the level of reserves the charity will require to sustain its operations in the future, excluding those funds represented by fixed assets. A policy has been established that the 1944 Trust should maintain a Designated Building Fund of £565,000. This figure will be reviewed in 2024. The Designated Fund for Fossgate Property Maintenance is being built up to provide funding for major repairs and upgrading of the Trust’s heritage properties in the future and a further £5,000 has been allocated in this financial year. The Hall Development Designated Fund has provided funding for the development of the Museum and specifically the commissioning of the Two Rivers exhibition. The Designated Building Fund stands at £565,000, the Fossgate Maintenance Fund stands at £100,000, and the Hall Development fund at £17,258. An Unrestricted and Undesignated free reserve of a minimum of £300,000 is maintained to meet at least 6 months’ routine expenditure in the event of an uninsured loss of income. This level and the reserves policy was reviewed in 2022 and agreed fit.
All routine expenditure is met from normal income.
The level of the free reserves at 31 December 2022 was £686,911 (2021: £849,146). See note 24.
## **Staff**
The largest single element of the Trust’s expenditure remains staff costs. Recruitment of a Retail and Café manager has borne dividends. Stability of Café staff continues to provide a challenge as we seek to both employ young students seeking hospitality type employment as well as more senior, more stable, members of staff. Although we mis-booked the cost of employer NIC during the year the collective result was on budget. This is despite holding a redundancy programme which has slimmed down and rationalised the Hall Keeper workforce.
## **Restricted Fund**
The Archive Restricted Fund,created to produce a digital catalogue of the archive which is suitable for publication on-line for the convenience of scholars and archivists, has not been used. As the Company plans to move its archive to the Borthwick Institute it will reconsider this Restricted Fund and put to useful use in an archive type project.
## **Designated Funds**
The Designated Funds are shown separately. The Building Fund has been designated primarily for substantial maintenance, improvements or repairs which may arise and cannot be funded from normal income. The Collection Fund represents the value of the museum collection. The Fossgate Property Maintenance Fund is designated as a provision against future work required in the Trust’s heritage properties, in particular No. 36 Fossgate, mentioned earlier in this report. Residual funds have been carried forward to help fund the planned Museum Interpretation Project.
## **Investment policy**
The policy is to maintain the real value of the Designated Building Fund to provide security for the future of the Hall and the Charity’s activities; the investment risk is commensurate with this. The Trust’s investments have been managed by Sarasin & Partners LLP since 2014. Performance this year has not been as good as the Charity Fund benchmark losing a value of 9.9% of stock value in the year. This follows a growth of the invested fund of 10.25% in 2021. The Investment Committee are now examining other options as it feels the inflexibility of the Sarasin CAIF platform is limiting performance. There is no immediate foreseen requirements for these funds and they underwrite the future security of the Hall and Chapel.
## **Risk management**
The Trustee has conducted a review of the major risks to which the charity is exposed. Where significant risks were identified, systems have been established to mitigate those risks. The principal risks facing the Trust are:
- The relative vulnerability and fragility of the ancient fabric of the Hall in the Trustee’s care; mitigated by the vigilance of the staff, comprehensive insurance and quinquennial inspections by the Trustee’s appointed structural engineer.
- The safety of the public using the Hall and gardens; mitigated by good management of risks on site and good signage.
- Exposure of the invested reserves to the risks of the financial markets: mitigated by a diversified portfolio, a low-risk investment policy and pro-active management by a reputable fund manager well-versed in the management of charity portfolios.
A comprehensive risk register is maintained by the Clerk and the Company’s Officers.
## **Financial Management**
Monthly management accounts and cash flow forecasts are produced by the Clerk using Xero accounts software. Management accounts and cash flow forecasts are scrutinised monthly by the Honorary Chamberlain and the Company’s Officers and quarterly by the Court of Assistants.
- 5 -
**THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST TRUSTEE'S REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **Plans for future periods**
The Company published its new 5-7 year strategy on 23 May 2021. The Company seeks to promote its relevance across all stakeholder communities whilst becoming increasingly more prominent in the both a figurative and physical sense. Early activity in supporting the York business community, supporting the Council through hosting of business positive events and hosting York tourist initiatives has added to the increased footfall and use of the Hall as a venue and facility.
The Company has established a new sub-committee of the Court of Assistants. The Environment and Sustainability Committee will direct and lead initiatives to both improve the environment of the Hall, Garden and the River Foss whilst addressing energy efficiency with an aim to support York’s strategic ambition of becoming carbon neutral by 2030.
A project to review and renew the exterior lighting is underway as is a project to develop the riverbank within the garden. The aspiration to move the Office out of the ancient Hall is still being pursued with opportunity of either using the vacated No. 36 or perhaps, if the lease difficulties with the Hairy Fig persist, through taking back that property for Company use.
## **Relief of Poverty**
With the ever-increasing difficulty of finding qualified individuals who are in need of support as Company pensioners the Trustee has reviewed how this remit, placed by the Trust Deed, can best be discharged. An Alms Committee now has delegated authority to grant funds for the relief of poverty within the area of benefit. The first grants totalling £10,000 were distributed in late 2021 and again in 2022.
## **Structure, governance and management**
The charity was formed by a Deed of Trust dated 5 April 1944. The scheme was amended on 29 March 2011 and 6 July 2015. The Court of Assistants, which meets four times per year, administers the charity. It is advised by more frequent, regular meetings of the Officers of the Company. There is a sub-committee of the Court of Assistants advising on investments and a separate audit subcommittee. The Clerk is appointed by the Trustee to manage the day to day operations of the charity. The control and management of the Company is vested in the Governor and Court of Assistants who are elected annually by the members of the Company.
The Court of Assistants consists of 20 members of the Company elected to support the Governor in accordance with the Royal Charter of 1581. These members are elected annually at the Company's Charter Day Court, held in April, and they are the charity Trustees of The Company of Merchant Adventurers of the City of York as defined in the Charities Act 2011.
On being invited to stand for election, new members of the Court receive a detailed letter explaining the responsibilities of each elected member and copies of the minutes of meetings held in the previous year. All newly elected members attend a detailed briefing by the Governor of the Company as Chairman of the Court of Assistants, assisted by the Clerk to the Company, prior to their first meeting.
Remuneration of Company Staff is first considered by the Officers’ group who make a recommendation to the Court of Assistants. In 2 of the most recent years, notification of a rise in the statutory Minimum Wage has set the base level from where all remaining hourly paid staff are calculated. In addition, the Clerk produces a paper for consideration examining the current salaries and pay awards in the private hospitality and tourism sectors. This recommendation is presented as a percentage increase for salaried staff. The resultant budget effects are considered at the same time by the Officers, then the Court before approving both the overall Company budget and staff remuneration. The Clerk is appraised by the Governor and Immediate Past Governor against his responsibilities and objectives. After satisfactory performance the Clerk is awarded the same percentage increase received by salaried staff.
The Trustee's report was approved by the Trustee on 13 March 2023 and signed on behalf of the Trustee.
Dr D J Tomlin Governor
Mr J W Machin Chamberlain
- 6 -
## **THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST STATEMENT OF TRUSTEE'S RESPONSIBILITIES** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
The Trustee is responsible for preparing the Trustee's 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 and Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charitable Trust and of the incoming resources and application of resources of the Charitable Trust for that year.
In preparing these financial statements, the Trustee is required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- 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; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustee is responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Charitable Trust and enable it to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. It is also responsible for safeguarding the assets of the Charitable Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
- 7 -
## **THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEE OF THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK**
I report to the Trustee on my examination of the financial statements of The Company of Merchant Adventurers of the City of York (The Charitable Trust) for The year ended 31 December 2022.
## **Responsibilities and basis of report**
As the Trustee of The Charitable Trust you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the Charitable Trust’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Since the Charitable Trust’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the Charitable Trust as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
## **N Clemit ACA, FCCA**
JWPCreers LLP Chartered Accountants Genesis 5 Church Lane York YO10 5DQ
Dated: 16 March 2023
- 8 -
## **THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **CURRENT FINANCIAL YEAR**
|**Unrestricted**
**Unrestricted**
**Restricted**
**funds**
**funds**
**funds**
**general**
**designated**
**2022**
**2022**
**2022**
**Notes**
**£**
**£**
**£**
**Income**
Donations and legacies
**2**
144,164
3,350
1,000
Charitable activities
**3**
362,684
-
-
Other trading activities
**4**
208,592
-
-
Investments
**5**
34,370
-
-
**Total income**
749,810
3,350
1,000
**Expenditure**
Raising funds
**6**
181,679
-
-
Charitable activities
**7**
469,494
45,537
1,200
**Total expenditure**
651,173
45,537
1,200
Net (losses)/gains on investments
**12**
(158,252)
-
-
**Net (expenditure)/income before transfers**
(59,615)
(42,187)
(200)
Gross transfers between funds
(99,151)
99,151
-
**Net movement in funds**
(158,766)
56,964
(200)
Fund balances at 1 January 2022
851,951
1,924,830
4,078
**Fund balances at 31 December 2022**
693,185
1,981,794
3,878|**Total**
**2022**
**£**
148,514
362,684
208,592
34,370
754,160
181,679
516,231
697,910
(158,252)
(102,002)
-
(102,002)
2,780,859
2,678,857|Total
2021
**£**
255,454
264,858
155,075
33,319|
|---|---|---|
|||708,706|
|||123,013
434,709|
|||557,722|
|||83,741|
|||234,725
-|
|||234,725
2,546,134|
|||2,780,859|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derives from continuing activities.
- 9 -
## **THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **PRIOR FINANCIAL YEAR**
|**Unrestricted**
**Unrestricted**
**Restricted**
**funds**
**funds**
**funds**
**general**
**designated**
**2021**
**2021**
**2021**
**Notes**
**£**
**£**
**£**
**Income**
Donations and legacies
**2**
254,454
-
1,000
Charitable activities
**3**
264,858
-
-
Other trading activities
**4**
155,075
-
-
Investments
**5**
33,319
-
-
**Total income**
707,706
-
1,000
**Expenditure**
Raising funds
**6**
123,013
-
-
Charitable activities
**7**
400,605
33,504
600
**Total expenditure**
523,618
33,504
600
Net gains on investments
**12**
83,741
-
-
**Net (expenditure)/income before transfers**
267,829
(33,504)
400
Gross transfers between funds
(20,000)
20,000
-
**Net movement in funds**
247,829
(13,504)
400
Fund balances at 1 January 2021
604,122
1,938,334
3,678
**Fund balances at 31 December 2021**
851,951
1,924,830
4,078|**Total**
**2021**
**£**
255,454
264,858
155,075
33,319|
|---|---|
||708,706|
||123,013
434,709|
||557,722|
||83,741|
||234,725
-|
||234,725
2,546,134|
||2,780,859|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derives from continuing activities.
- 10 -
## **THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST STATEMENT OF FINANCIAL POSITION**
## _**AS AT 31 DECEMBER 2022**_
|**Notes**
**Fixed assets**
Tangible assets
**13**
Heritage assets
**14**
Investments
**15**
**Current assets**
Stocks
**16**
Debtors
**17**
Cash at bank and in hand
**Creditors: amounts falling due within one year**
**18**
Net current assets
**Total assets less current liabilities**
**Creditors: amounts falling due after more than**
**one year**
**19**
**Net assets**
**Income funds**
Restricted funds
**21**
Unrestricted funds - designated
**22**
Unrestricted funds - general|**2022**
**£**
12,976
46,509
371,533
431,018
(86,811)|**£**
45,217
1,155,132
1,143,489
2,343,838
344,207
2,688,045
(9,188)
2,678,857
3,878
1,981,794
693,185
2,678,857|**2021**
**£**
11,319
40,921
330,428
382,668
(79,777)|**£**
63,761
1,151,782
1,268,913
2,484,456
302,891
2,787,347
(6,488)
2,780,859
4,078
1,924,830
851,951
2,780,859|
|---|---|---|---|---|
The financial statements were approved by the Trustee on 13 March 2023 and signed on behalf of the Trustee.
Dr D J Tomlin Governor
Mr J W Machin Chamberlain
- 11 -
## **THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST STATEMENT OF CASH FLOWS**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**Notes**
**Cash flows from operating activities**
Cash generated from operations
**29**
**Investing activities**
Purchase of tangible fixed assets
Movement in cash held within investment portfolio
Purchase of other investments
Proceeds on disposal of other investments
Investment income received
**Net cash (used in)/generated from investing**
**activities**
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2022**
**£**
(4,151)
(16,854)
(15,999)
25
34,370|**£**
43,714
(2,609)
-
41,105
330,428
371,533|**2021**
**£**
-
-
(33,131)
43
33,319|**£**
114,030
231
-|
|---|---|---|---|---|
|||||114,261
216,167|
|||||330,428|
- 12 -
**THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
## **Charity information**
The Company of Merchant Adventurers of the City of York is a charity registered with the Charity Commission for England and Wales.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the Charitable Trust's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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)" (effective 1 January 2019). The Charitable Trust is a Public Benefit Entity as defined by FRS 102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the Charitable Trust.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the Trustee has a reasonable expectation that the Charitable Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustee continues to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the Trustee in furtherance of their charitable objectives.
Designated funds are unrestricted funds set aside by the Trustee for specific future purposes or projects.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Charitable Trust.
## **1.4 Income**
All income is included in the SOFA when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Where a funder specifies that income must be used in future accounting periods, it is carried forward as deferred income.
Gifts in kind are included at the trustee's estimate of their value at the time of donation.
## **1.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
- 13 -
**THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
## **(Continued)**
All expenditure is accounted for on an accruals basis and is classified under headings that aggregate all costs related to the category. Expenditure includes any VAT which cannot be fully recovered as part of the expenditure to which it relates.
Raising funds comprise the costs associated with attracting donations and legacies.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the independent examination fees and costs linked to the strategic management of the charity.
All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly; others are apportioned on an appropriate basis as set out in note 9.
## **1.6 Tangible fixed assets**
All assets costing more than £1,000 are capitalised.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Hall improvements 15 years straight line Equipment 10% to 25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
## **1.7 Heritage assets**
The original cost of the Museum Collection cannot be established. The Collection was first included in the accounts in the year ended 31 December 2002 at replacement cost for insurance purposes.
Acquisitions are made by purchase or donation. Purchases since 2002 have been recorded at cost and donations are recorded at current value as determined by the Trustee.
Depreciation is not charged on heritage assets which have an indefinite useful life.
All properties are included at purchase cost. Any further preservation costs are released through the statement of financial activities when they are carried out.
Heritage properties comprise several properties in Fossgate, York which protect and enhance the environs at one of the entrances to the historic Merchant Adventurers' Hall. These properties are listed buildings in their own right and let to provide a rental yield which supports their maintenance and contributes to the preservation of the Hall and its grounds. These properties are not held as investments, but play an important role in enhancing the visitor experience by preserving the historical context and setting of the Hall.
The total insured value of the properties during the period was £4,465,051.
The Clerk maintains a ledger of Heritage Assets and the Museum Director maintains an electronic record of assets and accessions. The ledger is maintained with restricted access controlled by the Museum Director. The items on the ledger are briefed to the Court for any discussion on accession or de-accession of property.
## **1.8 Fixed asset investments**
Listed investments are stated at market value at the balance sheet date. The statement of financial activities includes the net gains and losses arising on revaluations and disposals throughout the period.
## **1.9 Stocks**
Stock is valued at the lower of cost and net realisable value after making due allowance for any obsolete or slow-moving items.
## **1.10 Cash and cash equivalents**
Cash and cash equivalents include cash in hand and deposits held at call with banks.
- 14 -
## **THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
## **(Continued)**
## **1.11 Financial instruments**
The Trust only has financial assets and financial liabilities of a kind that qualify as basic instruments. Basic financial instruments are recognised at transaction value.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
## **1.12 Taxation**
The charity is VAT registered and subject to partial exemption rules. VAT which is irrecoverable is shown as an expense.
## **1.13 Employee benefits**
The Charity makes contributions to a group personal pension plan. Contributions are charged as expenditure in the year in which they are incurred.
Redundancy costs are recognised as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **2 Donations and legacies**
|**Unrestricted Unrestricted Restricted**
**funds**
**funds**
**funds**
**general**
**designated**
**2022**
**2022**
**2022**
**£**
**£**
**£**
Donations and gifts
2,264
3,350
1,000
Legacies receivable
-
-
-
Grants receivable
6,763
-
-
Members' annual donations
104,603
-
-
Gift aid receivable
30,534
-
-
144,164
3,350
1,000
**Grants receivable for core**
**activities**
HMRC Job retention scheme
-
-
-
COVID-19 grants
96
-
-
City of York Council grants
6,667
-
-
6,763
-
-|**Total**
Unrestricted
Restricted
funds
funds
general
**2022**
2021
2021
**£**
£
£
6,614
978
1,000
-
15,000
-
6,763
93,223
-
104,603
116,091
-
30,534
29,162
-
148,514
254,454
1,000
-
50,162
-
96
249
-
6,667
42,812
-
6,763
93,223
-|Total
2021
£
1,978
15,000
93,223
116,091
29,162|
|---|---|---|
|||255,454|
|||50,162
249
42,812|
|||93,223|
- 15 -
## **THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **3 Charitable activities**
||**Unrestricted**|**Unrestricted**|
|---|---|---|
||**funds general**|**funds general**|
||**2022**|**2021**|
||**£**|**£**|
|Hall visitors|90,433|58,138|
|Hall hire|149,662|88,432|
|Rent receivable on heritage property|122,589|118,288|
||362,684|264,858|
## **4 Other trading activities**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**general**|general|
||**2022**|2021|
||**£**|£|
|Shop income|23,144|14,225|
|Coffee shop income|185,448|140,850|
|Other trading activities|208,592|155,075|
|**Investments**|||
||**Unrestricted**|Unrestricted|
||**funds**|funds|
||**general**|general|
||**2022**|2021|
||**£**|£|
|Equity investment income|32,868|33,133|
|Interest receivable|1,502|186|
||34,370|33,319|
## **5 Investments**
- 16 -
**THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **6 Raising funds**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**general**|general|
||**2022**|2021|
||**£**|£|
|Hall hire and visitors' publicity|7,015|4,370|
|Fundraising and publicity|7,015|4,370|
|Shop purchases with stock movement|9,855|5,578|
|Coffee shop expenditure|164,769|113,019|
|Trading costs|174,624|118,597|
|Investment management|40|46|
||181,679|123,013|
- 17 -
## **THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **7 Charitable activities**
|**Maintenance**
**of Hall &**
**Chapel**
**Maintenance**
**of heritage**
**assets**
**Relief of**
**Poverty**
**CURRENT FINANCIAL YEAR**
**2022**
**2022**
**2022**
**£**
**£**
**£**
Depreciation
22,695
-
-
Pensioners' visits and events
-
-
3,500
Establishment expenses
43,198
-
-
Hall maintenance and improvements
7,441
-
-
Staff costs
347,882
-
-
Maintenance of heritage assets
-
6,277
-
Museum
17,809
-
-
Garden costs
3,412
-
-
Insurance
28,244
-
-
Irrecoverable VAT
2,295
-
-
472,976
6,277
3,500
Grants payable (see note 8)
-
-
10,000
Share of support costs (see note 9)
17,408
-
-
Share of governance costs (see note 9)
6,070
-
-
496,454
6,277
13,500
**Analysis by fund**
Unrestricted funds - general
459,717
6,277
3,500
Unrestricted funds - designated
35,537
-
10,000
Restricted funds
1,200
-
-
496,454
6,277
13,500
**Maintenance**
**of Hall &**
**Chapel**
**Maintenance**
**of heritage**
**assets**
**Relief of**
**Poverty**
**PRIOR FINANCIAL YEAR**
**2021**
**2021**
**2021**
**£**
**£**
**£**
Depreciation and impairment
23,504
-
-
Pensioners' visits and events
-
-
1,000
Establishment expenses
33,896
-
-
Hall maintenance and improvements
9,450
-
-
Staff costs
303,454
-
-
Maintenance of heritage assets
-
4,350
-
Museum
2,217
-
-
Garden costs
703
-
-
Insurance
26,194
-
-
Irrecoverable VAT
(2,356)
-
-
397,062
4,350
1,000
Grants payable (see note 8)
600
-
10,000|**Total**
**2022**
**£**
22,695
3,500
43,198
7,441
347,882
6,277
17,809
3,412
28,244
2,295
482,753
10,000
17,408
6,070
516,231
469,494
45,537
1,200
516,231
**Total**
**2021**
**£**
23,504
1,000
33,896
9,450
303,454
4,350
2,217
703
26,194
(2,356)
402,412
10,600|
|---|---|
- 18 -
## **THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **7 Charitable activities**
## **(Continued)**
|Share of support costs (see note 9)
Share of governance costs (see note 9)
**Analysis by fund**
Unrestricted funds - general
Unrestricted funds - designated
Restricted funds|13,791
7,906
419,359
395,255
23,504
600
419,359|-
-
4,350
4,350
-
-
4,350|-
-
11,000
1,000
10,000
-
11,000|13,791
7,906|
|---|---|---|---|---|
|||||434,709|
|||||400,605
33,504
600|
|||||434,709|
## **8 Grants payable**
|**Relief of**
**Poverty**
**2022**
**£**
Grants to institutions:
The Latin Project
-
Refugee Action York
5,000
Kitchens for Everyone York
-
York Neighbours
5,000
10,000
**Support costs**
**2022**
**Support costs**
**Governance**
**costs**
**£**
**£**
Office costs
7,013
-
Bank charges
7,012
-
IT costs
3,383
-
Independent examiner's fee
-
3,050
Legal and professional fees
-
2,120
Accountancy fees
-
900
17,408
6,070
Analysed between
Charitable activities
17,408
6,070|**Total**
**2022**
Maintenance of
Hall & Chapel
Relief of Poverty
2021
2021
**£**
£
£
-
600
-
5,000
-
5,000
-
-
5,000
5,000
-
-
10,000
600
10,000
2021
**2022**
Support costs
Governance
costs
**£**
£
£
7,013
5,878
-
7,012
5,041
-
3,383
2,872
-
3,050
-
2,950
2,120
-
3,807
900
-
1,149
23,478
13,791
7,906
23,478
13,791
7,906|Total
2021
£
600
5,000
5,000
-|
|---|---|---|
|||10,600|
|||2021
£
5,878
5,041
2,872
2,950
3,807
1,149|
|||21,697|
|||21,697|
## **9 Support costs**
Accountancy fees includes payments to the independent examiner for tax advisory services of £900 (2021: £500) and other financial services of £nil (2021: £450).
- 19 -
## **THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **10 Trustee**
No member of the Court of Assistants or any person connected with it received any remuneration or reimbursement of expenses during the year.
## **11 Employees**
|||**2022**|**2021**|
|---|---|---|---|
|||**Number**|**Number**|
||Total|19|19|
||**Employment costs**|**2022**|**2021**|
|||**£**|**£**|
||Wages and salaries|389,829|368,980|
||Social security costs|29,425|25,464|
||Pension costs|8,680|7,195|
||Insurance premiums|1,797|1,797|
||Redundancy costs|20,000|-|
|||449,731|403,436|
||The total paid to key management personnel during the year was £153,361 (2021: £147,483).|||
||The number of employees whose annual remuneration was £60,000 or more were:|||
|||**2022**|**2021**|
|||**Number**|**Number**|
||£60,000 - £70,000|1|1|
|**12**|**Net gains on investments**|||
|||**Unrestricted**|Unrestricted|
|||**funds**|funds|
|||**general**|general|
|||**2022**|2021|
|||**£**|£|
||(Loss)/gain on investment assets|(158,257)|83,732|
||Gain on sale of investments|5|9|
|||(158,252)|83,741|
- 20 -
## **THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **13 Tangible fixed assets**
|**Hall**
**improvements**
**Equipment**
**£**
**£**
**Cost**
At 1 January 2022
423,145
91,159
Additions
-
4,151
At 31 December 2022
423,145
95,310
**Depreciation**
At 1 January 2022
363,723
86,820
Depreciation charged in the year
17,721
4,974
At 31 December 2022
381,444
91,794
**Carrying amount**
At 31 December 2022
41,701
3,516
At 31 December 2021
59,422
4,339|**Total**
**£**
514,304
4,151|
|---|---|
||518,455|
||450,543
22,695|
||473,238|
||45,217|
||63,761|
## **14 Heritage assets**
|**Heritage assets**||
|---|---|
|**Properties**
**Collection**
**£**
**£**
At 1 January 2022
435,606
716,176
Donated assets
-
3,350
**At 31 December 2022**
435,606
719,526|**Total**
**£**
1,151,782
3,350|
||1,155,132|
Heritage assets acquired prior to 31 December 2002 have been included at replacement value of £607,425 for insurance purposes at that date. Subsequent additions of £547,707 have been capitalised at cost or valuation.
## **Five Year Financial Summary of heritage asset transactions**
||**Donations**|
|---|---|
||**£**|
|2022|3,350|
|2021|-|
|2020|2,000|
|2019|4,000|
|2018|4,288|
- 21 -
## **THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **15 Fixed asset investments**
||**Investments**|
|---|---|
||**£**|
|**Valuation**||
|At 1 January 2022|1,268,913|
|Additions|15,999|
|Movement in cash held within fund|16,854|
|Gain on investment assets|(158,252)|
|Disposals|(25)|
|At 31 December 2022|1,143,489|
|**Carrying amount**||
|At 31 December 2022|1,143,489|
|At 31 December 2021|1,268,913|
The investments consist of listed accumulation units in common investment funds specifically for charities. Income is reinvested without payment of tax.
Historical cost at 31 December 2022 was £946,148 (2021: £913,314). Cash held within the investment portfolio at 31 December 2022 was £16,855 (2021: £1). The balance is held within listed investments.
|Investments at fair value comprise:
Fixed Income
UK Equities
Global Equities
Property
Alternative Investments
Liquid Assets
**16**
**Stocks**
Coffee shop
Shop and company regalia|**2022**
**£**
136,496
227,004
537,385
51,766
148,035
42,803
1,143,489
**2022**
**£**
1,484
11,492
12,976|**2021**
**£**
117,398
257,000
666,105
51,709
129,053
47,648|
|---|---|---|
|||1,268,913|
|||**2021**
**£**
-
11,319|
|||11,319|
- 22 -
## **THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **17 Debtors**
|**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments|**2022**
**£**
9,032
5,841
31,636
46,509|**2021**
**£**
11,792
3,659
25,470|
|---|---|---|
|||40,921|
## **18 Creditors: amounts falling due within one year**
|**18**|**Creditors: amounts falling due within one year**||||
|---|---|---|---|---|
||||**2022**|**2021**|
|||**Notes**|**£**|**£**|
||Trade creditors||12,722|9,636|
||Other creditors||28,184|19,194|
||Accruals||5,925|5,879|
||Deferred income|**20**|39,980|45,068|
||||86,811|34,709|
|**19**|**Creditors: amounts falling due after more than one year**||||
||||**2022**|**2021**|
|||**Notes**|**£**|**£**|
||Deferred income|**20**|9,188|6,488|
|**20**|**Deferred income**||||
||||**2022**|**2021**|
||||**£**|**£**|
||Balance as at 1 January 2022||51,556|67,848|
||Released to income||(45,068)|(49,230)|
||Deferred in year||42,680|32,938|
||||49,168|51,556|
||Deferred income is included in the financial statements as follows:||||
||||**2022**|**2021**|
||||**£**|**£**|
||Within one year||39,980|45,068|
||Over one year||9,188|6,488|
||||49,168|51,556|
Deferred income relates to Hall hire bookings and events received in advance.
- 23 -
## **THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **21 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|||**Movement in funds**|**Movement in funds**|**Movement in funds**|||
|---|---|---|---|---|---|---|
||**Balance at**|**Income**|**Expenditure**||**Transfers**|**Balance at**|
||**1 January**|||||**31**|
||**2022**|||||**December**|
|||||||**2022**|
||**£**|**£**||**£**|**£**|**£**|
|Archive|4,078|1,000|(1,200)||-|3,878|
||4,078|1,000|(1,200)||-|3,878|
|||**Movement in funds**|||||
||**Balance at**|**Income**|**Expenditure**||**Transfers**|**Balance at**|
||**1 January**|||||**31**|
||**2021**|||||**December**|
|||||||**2021**|
||**£**|**£**||**£**|**£**|**£**|
|Archive|3,678|-||-|400|4,078|
|Latin Project|-|1,000||(600)|(400)|-|
||3,678|1,000||(600)|-|4,078|
The archive fund holds grants made by the Ian Addison Trust which were given specifically for the upkeep and digital cataloguing of the Company’s archive.
The Latin Project fund represents a grant made by the Ian Addison Trust to cover the costs of the Latin Project's publication. The transfer is in line with the donor's wishes for the surplus to be used for the benefit of the Merchants' archives.
- 24 -
## **THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **22 Unrestricted funds - designated**
These are unrestricted funds which are material to the Charitable Trust's activities made up as follows:
|**Balance at**
**1 January**
**2022**
**£**
Building
565,000
Heritage assets
1,151,782
Fossgate property maintenance
95,000
Hall development
30,100
Fixed assets
63,761
Richard Wheway Legacy
19,187
Alms Committee fund
-
Strategic projects
-
1,924,830|**Movement in funds**
**Income**
**Expenditure**
**Transfers Revaluations,**
**gains and**
**losses**
**Balance at**
**31**
**December**
**2022**
**£**
**£**
**£**
**£**
**£**
-
-
-
-
565,000
3,350
-
-
-
1,155,132
-
-
5,000
-
100,000
-
(12,842)
-
-
17,258
-
(22,695)
4,151
-
45,217
-
-
-
-
19,187
-
(10,000)
10,000
-
-
-
-
80,000
-
80,000
3,350
(45,537)
99,151
-
1,981,794|**Movement in funds**
**Income**
**Expenditure**
**Transfers Revaluations,**
**gains and**
**losses**
**Balance at**
**31**
**December**
**2022**
**£**
**£**
**£**
**£**
**£**
-
-
-
-
565,000
3,350
-
-
-
1,155,132
-
-
5,000
-
100,000
-
(12,842)
-
-
17,258
-
(22,695)
4,151
-
45,217
-
-
-
-
19,187
-
(10,000)
10,000
-
-
-
-
80,000
-
80,000
3,350
(45,537)
99,151
-
1,981,794|
|---|---|---|
|||1,981,794|
|**Balance at**
**1 January**
**2021**
**£**
Building
565,000
Heritage assets
1,151,782
Fossgate property maintenance
85,000
Hall development
30,100
Fixed assets
87,265
Richard Wheway Legacy
19,187
Alms Committee fund
-
1,938,334|**Movement in funds**
**Income**
**Expenditure**
**Transfers Revaluations,**
**gains and**
**losses**
**Balance at**
**1 January**
**2022**
**£**
**£**
**£**
**£**
**£**
-
-
-
-
565,000
-
-
-
-
1,151,782
-
-
10,000
-
95,000
-
-
-
-
30,100
-
(23,504)
-
-
63,761
-
-
-
-
19,187
-
(10,000)
10,000
-
-
-
(33,504)
20,000
-
1,924,830|**Movement in funds**
**Income**
**Expenditure**
**Transfers Revaluations,**
**gains and**
**losses**
**Balance at**
**1 January**
**2022**
**£**
**£**
**£**
**£**
**£**
-
-
-
-
565,000
-
-
-
-
1,151,782
-
-
10,000
-
95,000
-
-
-
-
30,100
-
(23,504)
-
-
63,761
-
-
-
-
19,187
-
(10,000)
10,000
-
-
-
(33,504)
20,000
-
1,924,830|
|---|---|---|
|||1,924,830|
- 25 -
**THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **22 Unrestricted funds - designated**
## **(Continued)**
Past experience shows that on an historic building, such as the Hall, large sums have to be expended from time to time, often as a matter of urgency, the amount and timing of which is unpredictable. The Building fund has been created to meet this type of contingency.
The heritage assets fund (formally Collection fund) represents the heritage assets held by the charity. The items in the collection were included at valuation for insurance purposes at 31 December 2002, with acquisitions and donations made since then being included at cost or valuation. There have been no disposals from this fund.
Hall improvements includes items funded under the Heritage Lottery Fund project. The transfer represents the movement of
fixed assets to the designated fixed asset fund.
The Fossgate property maintenance fund relates to designations made for the future upkeep and maintenance needs of the Fossgate heritage properties. The transfer represents additional funds designated.
The Hall development fund has been set up in order to facilitate future developments within the Hall.
The fixed asset fund represents fixed assets held by the Company.
The Richard Wheway legacy represents monies received from past Governor Richard Wheway’s estate.
An Alms Committee has been established to give oversight to care for the Company Pensioners and to distribute grants and alms payments to the needy of York.
The strategic projects fund represents reserves allocated to the Riverside Project (£40,000), Archive Protection and Access (£20,000) and Office move (£20,000).
## **23 Analysis of net assets between funds**
|**Unrestricted**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**2022**
**2022**
**2022**
**£**
**£**
**£**
Fund balances at 31 December 2022 are represented by:
Tangible assets
-
45,217
-
Heritage assets
-
1,155,132
-
Investments
578,489
565,000
-
Current assets/(liabilities)
123,884
216,445
3,878
Long term liabilities
(9,188)
-
-
693,185
1,981,794
3,878
**Unrestricted**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**2021**
**2021**
**2021**
**£**
**£**
**£**
Fund balances at 31 December 2021 are represented by:
Tangible assets
-
63,761
-
Heritage assets
-
1,151,782
-
Investments
703,913
565,000
-
Current assets/(liabilities)
154,526
144,287
4,078
Long term liabilities
(6,488)
-
-
851,951
1,924,830
4,078|**Total**
**2022**
**£**
45,217
1,155,132
1,143,489
344,207
(9,188)
2,678,857
**Total**
**2021**
**£**
63,761
1,151,782
1,268,913
302,891
(6,488)
2,780,859|
|---|---|
- 26 -
**THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **24 Free reserves**
|Unrestricted funds
Operating lease commitments
Free reserves|**2022**
£
693,185
(6,274)
686,911|**2021**
£
851,951
(2,805)|
|---|---|---|
|||849,146|
## **25 Operating lease commitments**
At the reporting end date the Charitable Trust had outstanding commitments for future minimum lease payments under noncancellable operating leases, which fall due as follows:
|Within one year
Between two and five years|**2022**
**£**
1,476
4,798
6,274|**2021**
**£**
1,247
1,558|
|---|---|---|
|||2,805|
## **26 Pensions**
Staff are eligible (if they meet the minimum level of contribution) to participate in a group personal pension scheme managed by AEGON Scottish Equitable. The assets are held separately from the charity. The Trust contributes 5% of pensionable pay.
New joiners (whose total pension contributions do not meet AEGON’s threshold) are auto-enrolled in the NEST Scheme.
Minimum levels of contribution are the same in both schemes and death in service insurance cover is given to all employees in a pension scheme.
There was £1,238 due at the year end (2021: £1,233).
## **27 Related party transactions**
The Charitable Trust is under the control of The Company of Merchant Adventurers of the City of York, as detailed on page 3.
During the year an administration charge of £1,200 (2021: £456) was received from the 1988 Charitable Trust. The 1988 Charitable Trust is also under control of The Company of Merchant Adventurers of the City of York. At the year end £2,477 (2021: £1,825) was from the 1988 Charitable Trust.
In the year, the Hall was hired by no members of the Court of Assistants of the Company (2021: no transactions).
Members of the Court of Assistants give an annual donation but no additional donations (2021: £nil) to the 1944 Charitable Trust in the year.
## **28 Funds held on behalf of others**
Cash held at 31 December 2022 of £10,626 (2021: £10,439) represents deposits held on behalf of tenants.
- 27 -
## **THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**29**
**Cash generated from operations**
**2022**
**£**
(Deficit)/surplus for the year
(102,002)
Adjustments for:
Investment income recognised in statement of financial activities
(34,370)
Gain on disposal of investments
(5)
Fair value gains and losses on investments
158,257
Depreciation of tangible fixed assets
22,695
Donations in kind of heritage assets
(3,350)
Movements in working capital:
(Increase)/decrease in stocks
(1,657)
(Increase)/decrease in debtors
(5,588)
Increase/(decrease) in creditors
12,122
(Decrease) in deferred income
(2,388)
**Cash generated from operations**
43,714|**2021**
**£**
234,725
(33,319)
(9)
(83,732)
23,504
-
3,336
1,768
(15,951)
(16,292)
114,030|
|---|---|
- 28 -