**Draft Financial Statements** **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 2023** **Draft Financial Statements 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 - 29| **Draft Financial Statements 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|The Company of Merchant Adventurers of the City of York| |---|---|---| |**Board of the Trustee**|Mr A J Barron|| ||Mr T P Marks|| ||Mr P M Shepherd|| ||Dr P A Thake|| ||Dr A Suggett|(Resigned 14 April 2023)| ||Dr D J Tomlin|| ||Mr J D Barstow|| ||Mr J B Horsley|| ||Mrs E Woods|(Resigned 14 April 2023)| ||Mrs R Thompson|(Resigned 14 April 2023)| ||Mr R Smyth|(Resigned 14 April 2023)| ||Mr A Green|| ||Mr R Menage|| ||Mrs J Bartram|| ||Mr M Vander Weyer|| ||Mrs J Murray|| ||Mr R A Shaw|| ||Mr N A Sampson|| ||Mr W J P Derby|| ||Prof S Brown|(Appointed 14 April 2023)| ||Mr C Fordy|(Appointed 14 April 2023)| ||Ms S Palmer|(Appointed 14 April 2023)| ||Mr D Terry|(Appointed 14 April 2023)| |**Charity number**|235256|| |**Governor**|Mr J Horsley|(Appointed 14 April 2023)| ||Dr D Tomlin|(Resigned 14 April 2023)| |**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**|Frances Howard FCA|| ||Fortus North Limited|| ||Business Advisors and Accountants|| ||Equinox House|| ||Clifton Park|| ||Shipton Road|| ||York|| ||YO30 5PA|| - 1 - **Draft Financial Statements 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 - ## **Draft Financial Statements THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST TRUSTEE'S REPORT** ## _**FOR THE YEAR ENDED 31 DECEMBER 2023**_ 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 2023. 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 inviting them to attend the Hall with friends up to 12 times per year. The practise of visiting pensioners in their homes has ceased. 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 3 of its Quinquennial inspection programme. All urgent work was completed in year 1 (2021) with routine work completed in year 2 and 3 (2022/3). There are no 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. A project to fit food safe panelling was completed in the kitchen. A project to repair and improve toilet facilities was completed. A small infestation of woodworm was identified and treated. This will be monitored to ensure the effective treatment. The treatment was overseen by the Honorary Curator of Wood and Treen. ## **Gardens** The Hall’s gardens are maintained to a high standard as a peaceful public refuge at the heart of the busy city. Winter 22/23 saw the re-emergence of leather jacket larvae which attracts feeding corvids causing damage to the grassed areas. This has been treated with some success that did not need a significant re-turfing as other outbreaks have required. Throughout the summer the garden was presented in pristine condition with much effort undertaken to replant borders with specific priority given to the North bed adjacent to the path down the side of the Hall. This created a pleasant and relaxing environment for the outside café to thrive and attract custom. In preparation for a new project to develop the riverside garden area, the river bank was cleared of weed and windblown shrubs and trees. It is expected a project will develop the garden space in 2024/5. - 3 - **Draft Financial Statements THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST TRUSTEE'S REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_ ## **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 with a lease change at No 42 causing unexpected fire prevention work. Routine and statutory work and inspection has kept the remaining properties in a fit standard and fully let. The fire work caused an overspend in the budgeted repair allocation. The Bookshop at No. 36 Fossgate, ended its lease at the end of January 2023 with a grace period to end of February to empty the shop. The Company has needed to organise several contracts; to remove or encapsulate asbestos. A survey to assess roof strength and conduct repairs to make the building watertight. Each step, because of Grade II listed status, has required permission. This has proven slow and cumbersome. Our Heritage Architects and Engineers have developed plans to allow us to use this building as an office and rest space, linking the building to the new, 1949, extension of the Hall. All other properties are in lease and will receive a rent increase in April 2024. The Hairy Fig at No. 38 & 39 has been sold as a business with a new lease at revised value from January 2024. ## **The Company’s Pensioners** The death of one of our remaining 5 pensioners prompted action to recruit new Company pensioners. A further 7 will be recruited to start in early 2024. The Alms Committee, recognising the current cost-of-living difficulties, recommended an uplift of the annual pension. The Court agreed and an increase to £500 per annum will now be paid in 2 instalments in summer and winter. 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 Museum** **Accreditation.** The museum enjoys the status of an Accredited Museum under the scheme administered by Arts Council England. **Exhibits.** The museum continued its first temporary exhibition which ran for a full year ending in April 2023. The exhibition examined and celebrated the relevance of York’s two rivers. This was well received with many visitors accessing the on-line content and following the Hall trail. The museum has created a children’s trail to encourage interaction with younger visitors. A full season of providing children’s period costumes has been well received and will be continued through 2024 during school holiday periods. **Archive.** The Company has entered a 10 year (renewable) contractual agreement with the Borthwick Institute to store, care, develop and exploit the Company Archive. Early results are excellent as the catalogue is now available online and the university is making much use of the primary historical source. **Visitor Numbers and Income.** The Hall welcomed a record number of visitors in 2023, some 10% better than the previous, precovid, performance. Noticeably, the international tourist market has resumed reflecting the recovery of travel opportunities and the relative weakness of sterling to other currencies. The Viking Festival was able to re-start which delivered a very busy period for Hall visitors and café usage. **Hall Hire Income.** Hall Hire activity has also reached a record, with the availability of dates almost saturated, while achieving a balance of time available for public opening. **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 marginally better than budget, a target now 33% higher than the pre-covid budget aspiration. Rationalisation of supply has enabled the café to support a varied and frequently changing menu. The café provides 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 £60,000 from the estate of former Governor Darrell Buttery. Probate is nearing completion and hopefully will be received in 2024. The Court has allocated the legacy to a purpose and made a Designated fund. No legacies were received in the 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 local military and Guild establishments. A member's talk followed by a casual supper attracted a good audience from the Company and this successful format will be repeated in 2024. The Company hosted HRH Duke of Gloucester and guests, from York and New York, to a special event marking the cementing of civil and civic relations between the two cities. This initiative will culminate with a return visit to New York in 2024. 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 numbers and Hall hire, backed up by a busy and vibrant café, has produced an on-budget operational result for the Company. - 4 - **Draft Financial Statements THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST TRUSTEE'S REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_ ## **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 has been built up to provide funding for major repairs and upgrading of the Trust’s heritage properties in the future. This will be drawn down during 2024 to fund the No36 refurbishment. 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 2023 and agreed fit. All routine expenditure is met from normal income. The level of the free reserves at 31 December 2023 was £731,153 (2022: £686,911). See note 25. ## **Staff** The largest single element of the Trust’s expenditure remains staff costs. Stability of Café staff has been much better as we seek to achieve a mix of young students seeking hospitality type employment as well as more senior, more stable, members of staff. We have fully recruited the Hall Keeper position to Full Time Equivalent (FTE) of 2.5 employees. They are engaged on a more flexible contract performing core duties but also assisting other operational areas when the Hall is busy. ## **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 has improved this year following a loss of value equal to 9.9% in 2022. 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 and was reviewed and found fit for purpose in December 2023. ## **Financial Management** Quarterly management accounts and cash flow forecasts are produced by the Clerk using Xero accounts software. Management accounts and cash flow forecasts are scrutinised by the Honorary Chamberlain and the Company’s Officers and quarterly by the Court of Assistants - 5 - **Draft Financial Statements THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST TRUSTEE'S REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2023**_ ## **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 both the figurative and physical sense. 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 will continue to support local business and enterprise as opportunities arise. The Riverside Garden will be developed to provide more hospitality space in the Garden close to the river. This will also support Company events and Hall bookings as well as broaden the appeal of the garden, especially during summer. A project to review and renew the exterior lighting is part delivered and will continue. The aspiration to move the Office out of the ancient Hall is still being pursued with opportunity of using the vacated No. 36 as explained earlier. ## **Relief of Poverty** The Alms Committee has successfully recruited a further 7 new pensioners bringing the total to 11. The value of the pension has been raised to £500 per annum paid in 2 instalments. Two grants, totalling £10,000, were distributed to local charities for the alleviation of poverty in 2023. With the complement of pensioners this grant making will be reduced to £5,000 in 2024 and possibly zero if the pensioners become fully recruited in future years. ## **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 the last 3 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 ......................... and signed on behalf of the Trustee. .............................. Mr J B Horsley Governor .............................. Mr J W Machin Chamberlain - 6 - ## **Draft Financial Statements THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST STATEMENT OF TRUSTEE'S RESPONSIBILITIES** ## _**FOR THE YEAR ENDED 31 DECEMBER 2023**_ 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 - **Draft Financial Statements 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 2023. ## **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 in England and Wales, 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. ## **Frances Howard FCA** Fortus North Limited Business Advisors and Accountants Equinox House Clifton Park Shipton Road YO30 5PA York Dated: ......................... - 8 - ## **Draft Financial Statements 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 2023**_ ## **CURRENT FINANCIAL YEAR** |**Unrestricted**
**Unrestricted**
**Restricted**
**funds**
**funds**
**funds**
**general**
**designated**
**2023**
**2023**
**2023**
**Notes**
**£**
**£**
**£**
**Income**
Donations and legacies
**2**
139,375
-
11
Charitable activities
**3**
376,484
-
-
Other trading activities
**4**
211,793
-
-
Investments
**5**
41,042
-
-
**Total income**
768,694
-
11
**Expenditure**
Raising funds
**6**
208,901
-
-
Charitable activities
**7**
496,198
41,918
9,550
**Total expenditure**
705,099
41,918
9,550
Net gains/(losses) on investments
**12**
64,038
-
-
**Net income/(expenditure) before transfers**
127,633
(41,918)
(9,539)
Gross transfers between funds
(32,364)
26,703
5,661
**Net movement in funds**
95,269
(15,215)
(3,878)
Fund balances at 1 January 2023
693,185
1,981,794
3,878
**Fund balances at 31 December 2023**
788,454
1,966,579
-|**Total**
**2023**
**£**
139,386
376,484
211,793
41,042
768,705
208,901
547,666
756,567
64,038
76,176
-
76,176
2,678,857
2,755,033|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| |---|---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities. - 9 - ## **Draft Financial Statements 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 2023**_ ## **PRIOR 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 gains on investments
**12**
(158,252)
-
-
**Net income/(expenditure) 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| |---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities. - 10 - ## **Draft Financial Statements THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST STATEMENT OF FINANCIAL POSITION** ## _**AS AT 31 DECEMBER 2023**_ |**Notes**
**Fixed assets**
Tangible assets
**14**
Heritage assets
**15**
Investments
**16**
**Current assets**
Stocks
**17**
Debtors
**18**
Cash at bank and in hand
**Creditors: amounts falling due within one year**
**19**
Net current assets
**Total assets less current liabilities**
**Creditors: amounts falling due after more than**
**one year**
**20**
**Net assets**
**Income funds**
Restricted funds
**22**
Unrestricted funds - designated
**23**
Unrestricted funds - general|**2023**
**£**
19,972
63,329
351,684
434,985
(109,968)|**£**
34,904
1,162,252
1,241,780
2,438,936
325,017
2,763,953
(8,920)
2,755,033
-
1,966,579
788,454
2,755,033|**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| |---|---|---|---|---| The financial statements were approved by the Trustee on ......................... and signed on behalf of the Trustee. .............................. .............................. Mr J B Horsley Mr J W Machin Governor Chamberlain - 11 - ## **Draft Financial Statements THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST STATEMENT OF CASH FLOWS** ## _**FOR THE YEAR ENDED 31 DECEMBER 2023**_ |**Notes**
**Cash flows from operating activities**
Cash (absorbed by)/generated from operations
**30**
**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 investing activities**
**Net cash used in financing activities**
**Net (decrease)/increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2023**
**£**
(9,383)
(34,253)
-
-
41,042|**£**
(17,255)
(2,594)
-
(19,849)
371,533
351,684|**2022**
**£**
(4,151)
(16,854)
(15,999)
25
34,370|**£**
43,714
(2,609)
-
41,105
330,428
371,533| |---|---|---|---|---| - 12 - **Draft Financial Statements THE COMPANY OF MERCHANT ADVENTURERS OF THE CITY OF YORK 1944 CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS** ## _**FOR THE YEAR ENDED 31 DECEMBER 2023**_ ## **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 - ## **Draft Financial Statements 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 2023**_ ## **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 £5,634,491. 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 - ## **Draft Financial Statements 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 2023**_ ## **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 Restricted**
**funds**
**funds**
**general**
**2023**
**2023**
**£**
**£**
Donations and gifts
12,423
11
Grants receivable
-
-
Members' annual donations
102,296
-
Donated goods and services
2,000
-
Gift aid receivable
22,656
-
139,375
11
**Grants receivable for core**
**activities**
COVID-19 grants
-
-
City of York Council grants
-
-
-
-|**Total**
Unrestricted
Unrestricted
Restricted
funds
funds
funds
general
designated
**2023**
2022
2022
2022
**£**
£
£
£
12,434
2,264
3,350
1,000
-
6,763
-
-
102,296
104,603
-
-
2,000
-
-
-
22,656
30,534
-
-
139,386
144,164
3,350
1,000
-
96
-
-
-
6,667
-
-
-
6,763
-
-|Total
2022
£
6,614
6,763
104,603
-
30,534| |---|---|---| |||148,514| |||96
6,667| |||6,763| - 15 - ## **Draft Financial Statements 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 2023**_ ## **3 Charitable activities** ||**Unrestricted**|**Unrestricted**| |---|---|---| ||**funds general**|**funds general**| ||**2023**|**2022**| ||**£**|**£**| |Hall visitors|108,558|90,433| |Hall hire|150,821|149,662| |Rent receivable on heritage property|113,718|122,589| |Other income|3,387|-| ||376,484|362,684| ## **4 Other trading activities** ||**Unrestricted**|**Unrestricted**| |---|---|---| ||**funds**|**funds**| ||**general**|**general**| ||**2023**|**2022**| ||**£**|**£**| |Shop income|23,807|23,144| |Coffee shop income|187,986|185,448| |Other trading activities|211,793|208,592| |**Investments**||| ||**Unrestricted**|**Unrestricted**| ||**funds**|**funds**| ||**general**|**general**| ||**2023**|**2022**| ||**£**|**£**| |Equity investment income|34,472|32,868| |Interest receivable|6,570|1,502| ||41,042|34,370| ## **5 Investments** - 16 - **Draft Financial Statements 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 2023**_ ## **6 Raising funds** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**general**|general| ||**2023**|2022| ||**£**|£| |Hall hire and visitors' publicity|11,631|7,015| |Fundraising and publicity|11,631|7,015| |Shop purchases with stock movement|14,293|9,855| |Coffee shop expenditure|182,758|164,769| |Trading costs|197,051|174,624| |Investment management|219|40| ||208,901|181,679| - 17 - ## **Draft Financial Statements 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 2023**_ ## **7 Charitable activities** |**Maintenance**
**of Hall &**
**Chapel**
**Maintenance**
**of heritage**
**assets**
**Relief of**
**Poverty**
**CURRENT FINANCIAL YEAR**
**2023**
**2023**
**2023**
**£**
**£**
**£**
Depreciation
19,696
-
-
Pensioners' visits and events
12,022
-
2,384
Establishment expenses
63,080
-
-
Hall maintenance and improvements
15,301
-
-
Staff costs
331,268
-
-
Maintenance of heritage assets
-
12,011
-
Museum
6,994
-
-
Garden costs
3,699
-
-
Insurance
30,566
-
-
Irrecoverable VAT
14,011
-
-
Recharges
2,550
-
-
499,187
12,011
2,384
Grants payable (see note 8)
-
-
10,200
Share of support costs (see note 9)
18,122
-
-
Share of governance costs (see note 9)
5,762
-
-
523,071
12,011
12,584
**Analysis by fund**
Unrestricted funds - general
481,803
12,011
2,384
Unrestricted funds - designated
31,718
-
10,200
Restricted funds
9,550
-
-
523,071
12,011
12,584
**Maintenance**
**of Hall &**
**Chapel**
**Maintenance**
**of heritage**
**assets**
**Relief of**
**Poverty**
**PRIOR FINANCIAL YEAR**
**2022**
**2022**
**2022**
**£**
**£**
**£**
Depreciation and impairment
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|**Total**
**2023**
**£**
19,696
14,406
63,080
15,301
331,268
12,011
6,994
3,699
30,566
14,011
2,550| |---|---| ||513,582
10,200
18,122
5,762| ||547,666| ||496,198
41,918
9,550| ||547,666| ||**Total**
**2022**
**£**
22,695
3,500
43,198
7,441
347,882
6,277
17,809
3,412
28,244
2,295| ||482,753| - 18 - ## **Draft Financial Statements 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 2023**_ |**1944 CHARITABLE TRUST**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
**_FOR THE YEAR ENDED 31 DECEMBER 2023_**||||| |---|---|---|---|---| |**7**
**Charitable activities**
Grants payable (see note 8)
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
**8**
**Grants payable**|-
17,408
6,070
496,454
459,717
35,537
1,200
496,454|-
-
-
6,277
6,277
-
-
6,277|**(Continued)**
10,000
10,000
-
17,408
-
6,070
13,500
516,231
3,500
469,494
10,000
45,537
-
1,200
13,500
516,231|| |||||516,231| |||||469,494
45,537
1,200| |||||516,231| |||||| ||**Relief of**|**Relief of**| |---|---|---| ||**Poverty**|**Poverty**| ||**2023**|**2022**| ||**£**|**£**| |Grants to institutions:||| |Yorkshire Association of Voluntary Guides|200|-| |Refugee Action York|5,000|5,000| |York Neighbours|5,000|5,000| ||10,200|10,000| - - 19 - ## **Draft Financial Statements 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 2023**_ ## **9 Support costs** |**2023**
**Support costs**
**Governance**
**costs**
**£**
**£**
Office costs
7,066
-
Bank charges
7,149
-
IT costs
3,907
-
Independent examiner's fee
-
3,265
Legal and professional fees
-
1,464
Accountancy fees
-
1,033
18,122
5,762
Analysed between
Charitable activities
18,122
5,762|2022
**2023**
Support costs
Governance
costs
**£**
£
£
7,066
7,013
-
7,149
7,012
-
3,907
3,383
-
3,265
-
3,050
1,464
-
2,120
1,033
-
900
23,884
17,408
6,070
23,884
17,408
6,070|2022
£
7,013
7,012
3,383
3,050
2,120
900| |---|---|---| |||23,478| |||23,478| Accountancy fees includes payments to the independent examiner for tax advisory services of £1,033 (2022: £900) and other financial services of £nil (2022: £nil). ## **10 Trustee** No member of the Court of Assistants or any person connected with it received any remuneration or reimbursement of expenses during the current and prior year. ## **11 Employees** |Total
**Employment costs**
Wages and salaries
Social security costs
Pension costs
Insurance premiums
Redundancy costs
The total paid to key management personnel during the year was £164,498 (2022: £153,361).
The number of employees whose annual remuneration was £60,000 or more were:
£60,000 - £70,000
£70,000 - £80,000|**2023**
**Number**
19
**2023**
**£**
405,786
29,526
9,898
1,628
-
446,838
**2023**
**Number**
-
1|**2022**
**Number**
19| |---|---|---| |||**2022**
**£**
389,829
29,425
8,680
1,797
20,000| |||449,731| |||**2022**
**Number**
1
-| - 20 - ## **Draft Financial Statements 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 2023**_ ## **12 Net gains on investments** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**general**|general| ||**2023**|2022| ||**£**|£| |Gain / (loss) on investment assets|64,038|(158,257)| |Gain on sale of investments|-|5| ||64,038|(158,252)| ## **13 Taxation** The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. ## **14 Tangible fixed assets** |**Hall**
**improvements**
**Equipment**
**£**
**£**
**Cost**
At 1 January 2023
423,145
95,310
Additions
9,383
-
At 31 December 2023
432,528
95,310
**Depreciation**
At 1 January 2023
381,444
91,794
Depreciation charged in the year
18,658
1,038
At 31 December 2023
400,102
92,832
**Carrying amount**
At 31 December 2023
32,426
2,478
At 31 December 2022
41,701
3,516|**Total**
**£**
518,455
9,383| |---|---| ||527,838| ||473,238
19,696| ||492,934| ||34,904| ||45,217| - 21 - ## **Draft Financial Statements 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 2023**_ ## **15 Heritage assets** |**Heritage assets**|| |---|---| |**Properties**
**Collection**
**£**
**£**
At 1 January 2023
435,606
719,526
Purchases
-
5,120
Donated assets
-
2,000
**At 31 December 2023**
435,606
726,646|**Total**
**£**
1,155,132
5,120
2,000| ||1,162,252| 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 £549,707 have been capitalised at cost or valuation. ## **Five Year Financial Summary of heritage asset transactions** ||**Purchased**|**Donations**| |---|---|---| ||**£**|**£**| |2023|5,120|2,000| |2022|-|3,350| |2021|-|-| |2020|-|2,000| |2019|-|4,000| ## **16 Fixed asset investments** ||**Investments**| |---|---| ||**£**| |**Valuation**|| |At 1 January 2023|1,143,489| |Movement in cash held within fund|34,253| |Gain on investment assets|64,038| |At 31 December 2023|1,241,780| |**Carrying amount**|| |At 31 December 2023|1,241,780| |At 31 December 2022|1,143,489| 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 2023 was £980,400 (2022: £946,148). Cash held within the investment portfolio at 31 December 2023 was £51,108 (2022: £16,855). The balance is held within listed investments. - 22 - ## **Draft Financial Statements 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 2023**_ |**1944 CHARITABLE TRUST**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
**_FOR THE YEAR ENDED 31 DECEMBER 2023_**||| |---|---|---| |**16**
**Fixed asset investments**
Investments at fair value comprise:
Fixed Income
UK Equities
Global Equities
Property
Alternative Investments
Liquid Assets
**17**
**Stocks**
Coffee shop
Shop and company regalia
**18**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments
**19**
**Creditors: amounts falling due within one year**
**Notes**
Trade creditors
Other creditors
Accruals
Deferred income
**21**
**20**
**Creditors: amounts falling due after more than one year**
**Notes**
Deferred income
**21**|**(Continued)**
**2023**
**2022**
**£**
**£**
166,296
136,496
246,963
227,004
587,372
537,385
45,215
51,766
113,148
148,035
82,786
42,803
1,241,780
1,143,489
**2023**
**2022**
**£**
**£**
1,245
1,484
18,727
11,492
19,972
12,976
**2023**
**2022**
**£**
**£**
18,861
9,032
9,845
5,841
34,623
31,636
63,329
46,509
**2023**
**2022**
**£**
**£**
11,349
12,722
28,902
28,184
17,195
5,925
52,522
39,980
109,968
86,811
**2023**
**2022**
**£**
**£**
8,920
9,188|| |||1,143,489| |||**2022**
**£**
1,484
11,492| |||12,976| |||**2022**
**£**
9,032
5,841
31,636| |||46,509| |||**2022**
**£**
12,722
28,184
5,925
39,980| |||86,811| |||**2022**
**£**
9,188| - 23 - **Draft Financial Statements 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 2023**_ ## **21 Deferred income** ||**2023**|**2022**| |---|---|---| ||**£**|**£**| |Other deferred income|61,442|49,168| |Deferred income is included in the financial statements as follows:||| ||**2023**|**2022**| ||**£**|**£**| |Deferred income is included within:||| |Current liabilities|52,522|39,980| |Non-current liabilities|8,920|9,188| ||61,442|49,168| |Movements in the year:||| |Deferred income at 1 January 2023|49,168|51,556| |Released from previous periods|(39,980)|(45,068)| |Resources deferred in the year|52,254|42,680| |Deferred income at 31 December 2023|61,442|49,168| Deferred income relates to Hall hire bookings and events received in advance. - 24 - ## **Draft Financial Statements 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 2023**_ ## **22 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**||| |---|---|---|---|---|---|---| |||**Balance at**|**Income**|**Expenditure**|**Transfers**|**Balance at**| ||**1**|**January 2023**||||**31 December**| |||||||**2023**| |||**£**|**£**|**£**|**£**|**£**| |Archive||3,878|11|(9,550)|5,661|-| ||||**Movement in funds**|||| |||**Balance at**|**Income**|**Expenditure**|**Transfers**|**Balance at**| ||**1**|**January 2022**||||**31 December**| |||||||**2022**| |||**£**|**£**|**£**|**£**|**£**| |Archive||4,078|1,000|(1,200)|-|3,878| 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. - 25 - ## **Draft Financial Statements 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 2023**_ ## **23 Unrestricted funds - designated** These are unrestricted funds which are material to the Charitable Trust's activities made up as follows: |**Balance at**
**1 January 2023**
**£**
Building
565,000
Heritage assets
1,155,132
Fossgate property maintenance
100,000
Hall development
17,258
Fixed assets
45,217
Richard Wheway Legacy
19,187
Alms Committee fund
-
Strategic projects
80,000
1,981,794
**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**
**£**
**£**
-
-
-
-
-
(12,022)
-
-
-
(19,696)
-
-
-
(10,200)
-
-
-
(41,918)
**Movement in funds**
**Income**
**Expenditure**
**£**
**£**
-
-
3,350
-
-
-
-
(12,842)
-
(22,695)
-
-
-
(10,000)
-
-
3,350
(45,537)|**Transfers**
**Balance at**
**31 December**
**2023**
**£**
**£**
-
565,000
7,120
1,162,252
-
87,978
-
17,258
9,383
34,904
-
19,187
10,200
-
-
80,000
26,703
1,966,579
**Transfers**
**Balance at**
**1 January 2023**
**£**
**£**
-
565,000
-
1,155,132
5,000
100,000
-
17,258
4,151
45,217
-
19,187
10,000
-
80,000
80,000
99,151
1,981,794|**Transfers**
**Balance at**
**31 December**
**2023**
**£**
**£**
-
565,000
7,120
1,162,252
-
87,978
-
17,258
9,383
34,904
-
19,187
10,200
-
-
80,000
26,703
1,966,579
**Transfers**
**Balance at**
**1 January 2023**
**£**
**£**
-
565,000
-
1,155,132
5,000
100,000
-
17,258
4,151
45,217
-
19,187
10,000
-
80,000
80,000
99,151
1,981,794| |---|---|---|---| ||||1,981,794| - 26 - **Draft Financial Statements 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 2023**_ ## **23 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). ## **24 Analysis of net assets between funds** |**Unrestricted**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**2023**
**2023**
**2023**
**£**
**£**
**£**
Fund balances at 31 December 2023 are represented by:
Tangible assets
-
34,904
-
Heritage assets
-
1,162,252
-
Investments
676,780
565,000
-
Current assets/(liabilities)
120,594
204,423
-
Long term liabilities
(8,920)
-
-
788,454
1,966,579
-
**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|**Total**
**2023**
**£**
34,904
1,162,252
1,241,780
325,017
(8,920)
2,755,033
**Total**
**2022**
**£**
45,217
1,155,132
1,143,489
344,207
(9,188)
2,678,857| |---|---| - 27 - **Draft Financial Statements 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 2023**_ ## **25 Free reserves** |Unrestricted funds
Operating lease commitments
Free reserves|**2023**
£
788,454
(57,301)
731,153|**2022**
£
693,185
(6,274)| |---|---|---| |||686,911| ## **26 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
In over five years|**2023**
**£**
16,790
22,178
18,333
57,301|**2022**
**£**
1,476
4,798
-| |---|---|---| |||6,274| ## **27 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 £1,920 due at the year end (2022: £1,238). ## **28 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 (2022: £1,200) 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 £6,062 (2022: £2,447) was from the 1988 Charitable Trust. In the year, the Hall was hired by Governor Joe Horsley, Chair of the Court of Assistants of the Company. He did this at full commercial rate. (2022: no transactions). Members of the Court of Assistants give an annual donation but no additional donations (2022: £nil) to the 1944 Charitable Trust in the year. ## **29 Funds held on behalf of others** Cash held at 31 December 2023 of £6,813 (2022: £10,626) represents deposits held on behalf of tenants. - 28 - ## **Draft Financial Statements 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 2023**_ |**30**
**Cash generated from operations**
Surplus/(deficit) for the year
Adjustments for:
Investment income recognised in statement of financial activities
Gain on disposal of investments
Fair value gains and losses on investments
Depreciation of tangible fixed assets
Donations in kind of heritage assets
Movements in working capital:
(Increase) in stocks
(Increase) in debtors
Increase in creditors
Increase/(decrease) in deferred income
**Cash (absorbed by)/generated from operations**|**2023**
**2022**
**£**
**£**
76,176
(102,002)
(41,042)
(34,370)
-
(5)
(64,038)
158,257
19,696
22,695
(7,120)
(3,350)
(6,996)
(1,657)
(16,820)
(5,588)
10,615
12,122
12,274
(2,388)
(17,255)
43,714| |---|---| - 29 -