## **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE** REGISTERED NUMBER 869736 CHARITY NUMBER 258440 UNAUDITED ANNUAL REPORT YEAR ENDED 31 MARCH 2022 **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE ANNUAL REPORT YEAR ENDED 31 MARCH 2022** ## **CONTENTS:** ||**Page**| |---|---| |LEGAL AND ADMINISTRATIVE INFORMATION|1| |TRUSTEES’ REPORT|2 -5| |INDEPENDENT EXAMINERS REPORT|6| |STATEMENT OF FINANCIAL ACTIVITIES|7| |BALANCE SHEET|8| |NOTES TO THE FINANCIAL STATEMENTS|9 – 19| |SUPPLEMENTARY NOTES TO THE FINANCIAL STATEMENTS|20-22| **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE LEGAL AND ADMINISTRATIVE INFORMATION DIRECTORS, OFFICERS AND REGISTERED OFFICE** The governing body presents their report together with the financial statements for the year ended 31 March 2022. The registered charity number is 258440 The company registration number is 869736 ## **CHAIRMAN** Mr S J Earl MBE (from 11 May 2021) Councillor K Maguire (to 11 May 2021) ## **TRUSTEES** Mr J S Bremner (appointed 28 September 2021) Councillor G P Harris (appointed 28 September 2021) Mr P Watson (resigned 11 September 2022) Councillor J Lubbock Councillor K Maguire (to 11 May 2021) Mr R E N Quinn Mr S J Earl MBE Mr D Raby Mr R G Rose Councillor M Stonard (to 28 September 2021) Mrs J King Councillor E G Jones (appointed 28 September 2021) ## **SECRETARY & TREASURER** Mrs L C A Tarabay BCom CPFA ## **REGISTERED OFFICE AND PRINCIPAL ADDRESS** 63, Colegate Norwich Norfolk NR3 3AS ## **SOLICITORS** Mills & Reeve LLP 1 St James Court Whitefriars Norwich NR3 1RU ## **BANKERS** The Co-operative Bank plc 69 London Street Norwich Norfolk NR2 1HT ## **INDEPENDENT EXAMINER** Joanne Fox FCA Larking Gowen LLP King Street House 15 Upper King Street Norwich NR3 1RB - 1 - ## **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE REPORT OF THE TRUSTEES YEAR ENDED 31 MARCH 2022** The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the financial statements of Norwich Preservation Trust Limited (the Company) for the year ended 31 March 2022. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). ## **Structure, Governance and Management** ## **Governing Document** The Company is a charitable company limited by guarantee, incorporated on 25 January 1966 and registered as a charity on 18 April 1969. The company was established under a Memorandum of Association defining the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £10.00 (ten pounds). ## **Recruitment and Appointment of the Board** The directors of the company are also charity trustees for the purposes of charity law. Under the company’s Memorandum and Articles of Association there is a maximum number of eleven of whom four or such lesser number as the Norwich City Council may prescribe are nominated by the Norwich City Council and three are to be nominated by the Norwich Society. Under the requirements of the Memorandum and Articles the members of the Council of Management retire by rotation with one-third of the members retiring each year and able to offer themselves for re-election at the Annual General Meeting. Appointments are made from nominees of the Norwich City Council and the Norwich Society. The company is independent of the two nominating bodies and neither has direct control over the administration of the trust. ## **Trustee Induction and Training** Those trustees appointed are normally already experienced with the work of charities and in addition bring an appropriate interest and skill to the Governing Body. The Memorandum and Articles of Association are made available together with advice on the dual role of member and trustee. The nature of the Company as a Building Preservation Trust and its operation as a rolling fund Trust is explained together with a current report on projects in hand and planned with a financial summary and an outline of sources of funding. New trustees will be provided with Charity Commission booklets CC3 and CC3a. - 2 - **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE REPORT OF THE TRUSTEES (continued) YEAR ENDED 31 MARCH 2022** ## **Risk Management** The records of the Company are held at the Company’s Registered office and at the home address of the Company Secretary. The majority are held on computer, and these are continually backed up to a Cloud storage system to minimise the risk of data loss. Financial payments are predominantly made by internet banking, with cheques now only rarely used, there are no cash payments. Payments are only made after authorisation by two of the Trust’s authorised signatories. Risk in undertaking projects is managed in the careful selection of professional teams experienced in historic building conservation with the client interest being represented by an experienced project organiser. A comprehensive risk management assessment is regularly reviewed by the Trustees. ## **Objectives and Activities** The company’s primary object is to preserve for the benefit of the City of Norwich and of the Nation, the historical, architectural and constructional heritage that may exist in and around the City of Norwich (including any structure or erection, and any part of a building as so defined) of particular beauty or historical, architectural or constructional interest. The company achieves its objects by working with the local authorities, statutory bodies, grant and loan giving agencies to take on, restore, repair and refurbish buildings at risk to bring them back into beneficial use. In this the Trustees give due regard to the Charity Commissioners guidance on securing public benefit. On completion of the project the restored buildings are either sold on or let with sale receipts or loans secured by rental income forming the revolving fund by which the company maintains its facility to continue its work. ## **Achievements and Performance** The Trust has undertaken and completed some twenty restoration projects, the projects have all been buildings at risk and have involved partnerships with other interests including the Norwich City Council and commercial organisations. The projects have provided both residential accommodation and business premises from formerly derelict buildings. In March 2020 the Trust completed restoration works on a residential town house at 16 Elm Hill. The property was sold on a 125-year lease on 30 April 2021, the sale having been delayed due to the Covid-19 pandemic. A viability study has been completed with the assistance of grant funding from the Architectural Heritage Fund on the works needed to bring 6-9 Ninham’s Court back into use. The Trust is also in discussion with the Norwich City Council on possible co-operation on further properties currently in the stewardship of the Council. ## **Going Concern** The Trustees have reviewed forecasts of income and expenditure for the two years following the date of this report. Whilst future rental income is less certain given the current level of empty properties, the Trust has sufficient cash balances following the sale of 16 Elm Hill to meet operating expenses until the properties are relet. The Trustees therefore consider it appropriate to prepare the financial statements on the going concern basis. - 3 - **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE REPORT OF THE TRUSTEES (continued) YEAR ENDED 31 MARCH 2022** ## **Financial Review** With the pressure being exerted on Historic England, The National Lottery Heritage Fund and local authority resources it has become increasingly difficult to source funding for historic buildings other than those classified as being of exceptional quality. There is some relief in that the Architectural Heritage Fund is offering grants and short-term loans. The Covid-19 pandemic led to the closure of all commercial tenants’ businesses for periods during the financial year. Three tenants have either retired or ceased trading and a significant tenant at Augustine Steward House has relocated elsewhere within the City of Norwich. A new tenant began trading at The Briton’s Arms in November 2021 with a substantial improvement in rental income compared to the previous tenancy. Arrangements are in hand to secure new tenants for the other properties. This level of empty properties has had a significant impact on the Trust’s cashflow as the net income from the tenanted properties is not sufficient to meet the day-to-day operating expenses. However, this is a short-term impact, the Trust is using accumulated cash reserves to update and renovate the properties and the expectation is that this will be reflected in improved rental income upon re-letting. Following the lifting of the requirement to work from home during the pandemic, the Trust re-established an office in Norwich at the smallest of the vacant properties at 63 Colegate during May 2022. ## **Principal Funding Sources** To date these have included grants from Norwich City Council, Historic England, the Architectural Heritage Fund, proceeds of sales, loans secured on property and an annual rental income in the order of £51,000. In 2017 the Trust took out a ten-year loan of £150,000 at 4% from the Norwich City Council secured by a floating charge over the following properties: 63 Colegate, Norwich 23-25 St Augustine’s Street, Norwich 2-4 St Andrew’s Hill, Norwich The Briton’s Arms, Elm Hill, Norwich Augustine Steward House, 14, Tombland, Norwich In March 2020 the Trust took out a one-year unsecured loan of £50,000 at 8% from the Architectural Heritage Fund to provide cash-flow support in the period following completion of restoration works at 16 Elm Hill. The loan was repaid following the sale of the property on 30 April 2021. In October 2020 the Trust took out a six-year Government supported Bounce Back Loan from the Co-operative Bank of £16,175. The loan is interest free for the first 12 months and then at 2.5%. ## **Investment Policy** The company can invest moneys not immediately required for its immediate purposes in or upon such investments, securities or property as may be thought fit subject to conditions or consents as may for the time being be imposed or required by law. The order of moneys held in an interest earning bank deposit account is currently £161,000 after receipts of the proceeds of the sale of 16 Elm Hill. - 4 - **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE REPORT OF THE TRUSTEES (continued) YEAR ENDED 31 MARCH 2022** ## **Reserves Policy** The company has reviewed its past requirements and based on that review has adopted a policy to aim to hold in the order of one year’s operating costs, currently around £32,000, as a reserve to cover those periods when there are no active projects providing income over and above its rental income. Current unrestricted funds are £891,406 of which £155,356 is regarded as free reserves after allowing for funds tied up in investment properties. Free reserves are committed to maintaining the investment properties and towards future property restoration projects. Restricted funds amount to £7,426. ## **Plans for Future Periods** The future of the Trust as a revolving fund building preservation trust is always focussed on finding funding and properties in need of repair and refurbishment. This is expected to be more certain with the likelihood of a positive outcome to the current discussions whereby the Trust would take ownership of some Norwich City Council properties in need of repair and refurbishment. ## **Responsibilities of the Trustees** The Trustees (who are also directors of Norwich Preservation Trust Limited for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to: select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgments and accounting estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by Section 415A of the Companies Act 2006. Approved by the trustees/directors on …………………………………… and signed on their behalf by: **----- Start of picture text -----**
…………………………………………….(Trustee)
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- 5 - **INDEPENDENT EXAMINER’S REPORT FOR THE YEAR ENDED 31 MARCH 2022** ## **Independent examiner’s report to the Trustees of Norwich Preservation Trust Limited (the ‘company’)** I report to the charity trustees on my examination of the accounts of the company for the year ended 31 March 2022 which are set out on pages 7 to 19. ## **Responsibilities and basis of report** As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’). Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner’s statement** 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: 1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 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 accounts to be reached. This report is made solely to the company’s Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the company’s Trustees those matters I am required to state to them in an Independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the company and the company’s Trustees as a body, for my work or for this report. Joanne Fox BA FCA Larking Gowen LLP King Street House 15 Upper King Street Norwich NR3 1RB - 6 - Date ## **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE** ## **STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022** |**Notes**
**Restricted**
**funds**
**£**
**Unrestricted**
**funds**
**£**
**Income from:**
Grants and donations
**2**
**12,000**
**-**
Investments
**4**
**-**
**155**
**Charitable activities:**
**3**
Rental income
**-**
**51,310**
**_______**
**_______**
**Total income**
**12,000**
**_______**
**51,465**
**_______**
**Expenditure on:**
Charitable activities
**5**
**12,000**
**101,423**
**______**
**______**
**Total expenditure**
**12,000**
**______**
**101,423**
**______**
**______**
**______**
**Net incoming resources before**
**transfers**
**-**
**______**
**(49,958)**
**______**
Transfers between funds
**-**
**-**
**______**
**______**
**Net incoming resources before**
**other recognised gains and losses**
**-**
**______**
**(49,958)**
**______**
Revaluation surplus on
investment property
**10**
**-**
**______**
**66,050**
**______**
**Net movement in funds**
**-**
**16,092**
**______**
**_______**
**Reconciliation of funds**
Total funds brought forward
**7,426**
**875,394**
Net movement in funds
**-**
**16,092**
**______**
**_______**
**Total funds carried forward**
**14,15**
**7,426**
**891,486**
**______**
**_______**|**2022**
**Total**
**funds**
**£**
**12,000**
**155**
**51,310**
**_______**
**63,465**
**_______**
**113,423**
**_______**
**113,423**
**______**
**______**
**(49,958)**
**______**
**-**
**______**
**(49,958)**
**______**
**66,050**
**______**
**16,092**
**_______**
**882,820**
**16,092**
**______**
**898,912**

**_______**|2021
Total
funds
£
16,790
74
55,472
_______
72,336
_______
58,767
_______
58,767
______
______
13,569
______
-
______
13,569
______
69,000
______
82,569
| |---|---|---| |||_______
800,251
82,569
______
882,820
_______| The Statement of Financial Activities includes all gains and losses in the year. All incoming resources and resources expended derive from continuing activities. - 7 - ## **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE** ## **BALANCE SHEET AS AT 31 MARCH 2022 COMPANY REGISTRATION NUMBER - 869736** |**Notes**
**£**
**Fixed assets**
Investment Property
**10**
**Current assets**
Work in progress
**11**
**46,161**
Debtors
**12**
**67,330**
Cash at bank and in hand
**167,171**
**_______**
**280,662**
**Creditors**
Amounts falling due within one year
**13**
**31,105**
**_______**
**Net current assets / (liabilities)**
**Total assets less current liabilities**
**Creditors**
Amounts falling due after one year
**13**
**Net assets**
**Charity Funds**
Restricted fund
**14**
Unrestricted Funds
**14**
**Total funds**|**2022**
**£**
**£**
**736,050**
43,706
5,322
67,124
_______
116,152
115,058
_______
**249,557**
**_______**

**985,607**
**_______**
**86,695**
**_______**
**898,912**
**_______**
**7,426**
**891,486**
**_______**
**898,912**
_______|**2021**
**£**
986,435
1,094
**_______**
987,529
_______
104,709
_______
882,820
|**2021**| |---|---|---|---| |||_______
7,426
875,394
_______
882,820
_______|| The company’s financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime. The Trustees consider that the company is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Act. The Trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 November 2022 …………………………………………….. Stephen John Earl MBE Trustee …………………………………………….. Trustee - 8 - The notes on page 9 to 19 form part of the financial statements. ## **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE NOTES FORMING PART OF THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022** ## **1. ACCOUNTING POLICIES** ## **(a) Basis of accounting** The financial statements have been prepared in accordance with 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) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Norwich Preservation Trust Limited meets the definition of a public benefit entity under FRS 102. The financial statements are prepared on the going concern basis. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The financial statements are presented in Sterling, which is the functional currency of the company, and rounded to the nearest pound. ## **(b) Going concern** Trustees have reviewed the Trust’s cashflow forecasts for the two years following the date of this report and in their opinion, there are no uncertainties regarding the Trust’s ability to continue as a going concern. Accordingly, the financial statements have been prepared on a going concern basis. ## **(c) Company status** The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company. The registered office is 63 Colegate, Norwich, Norfolk. NR3 3AS. ## **(d) Fund accounting** - Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity. Unrestricted funds include a revaluation reserve representing the restatement of investment properties at market values. - Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal. - Investment income, gains and losses are allocated to the appropriate fund. - 9 - **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE NOTES FORMING PART OF THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022** ## **(e)** ## **Incoming resources** All incoming resources are included in the Statement of Financial Activities when the charity is entitled to the income and it is probable that the income will be received and the amount of income receivable can be measured reliably. The following specific policies are applied to particular categories of income: - Donations are received by way of grants, donations and gifts and is included in full in the Statement of Financial Activities when receivable. When donors specify that donations and grants given to the charity must be used in future accounting periods, the income is deferred until those periods. - when donors specify that donations and grants are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable. - grants received in respect of properties have been recognised as incoming resources in the Statement of Financial Activities when the charity earns the right to consideration by its performance. - investment income is included when receivable. - incoming resources including rental income from charitable activities are accounted for when earned. - annual rentals from operating leases are included in incoming resources over the lease terms. For legacies, entitlement is taken as the earlier of the date on which either: the company is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the company has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the company, or the company is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. ## **(f) Resources expended** Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates: - costs of generating funds comprise the costs associated with attracting voluntary income; charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. 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 audit fees and costs linked to the strategic management of the charity; - all costs are allocated between the expenditure categories of the Statement of Financial Activities 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 for instance by estimated usage as set out in note 5. - 10 - **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE NOTES FORMING PART OF THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022** ## **(g)** ## **Investment Property** Properties acquired or held for rental purposes are capitalised as investment properties. Investment properties are initially capitalised at their purchase cost, together with any incidental costs of acquisition. They are then revalued with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date. Properties acquired or held for immediate resale are classified as work in progress. Fair values are determined by a professional qualified surveyor from market-based evidence. The Companies Act requires that properties are depreciated. This requirement is not complied with, as the properties are held for investment purposes and the Trustees consider that systematic annual depreciation would be inappropriate. The accounting policy adopted is therefore necessary for the accounts to give a true and fair view. ## **(h)** ## **Work in progress** Expenditure incurred on properties which the company does not intend to hold following completion of preservation work, and expenditure on preservation schemes in progress, is treated as a current asset and classified as work in progress. Work in progress is stated at the lower of cost and net realisable value. Cost includes interest on funds specifically taken out to finance preservation schemes. Where necessary, provision is made against any anticipated future losses arising on the completion of preservation work in progress. Grants received in respect of the properties within work in progress are recognised within the Statement of Financial Activities. Where a long lease on a property is granted to the charity, this is included within work in progress at the estimated value of the lease. ## **(i) Stock** Stock is stated at the lower of cost and net realisable value. ## **(j) Interest capitalised** Interest incurred on borrowings to finance specific project development is capitalised net of any tax relief. ## **(k)** ## **Debtors** Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. ## **(l) Cash at hand and in bank** Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. - 11 - **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 MARCH 2022** ## **(m)** ## **Liabilities and provisions** Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount the company anticipates it will pay to settle the debt or the amount it has received as advance payment for the goods or services it must provide. ## **(n)** ## **Financial instruments** The company only has financial instruments and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. ## **(o)** ## **Operating leases** Rental income and expenditure under operating leases are bought into the Statement of financial activities incorporating income and expenditure account on a straight-line basis over the lease term. ## **2 Income from donations and legacies** ||**Restricted**|**Unrestricted**|**Total**|Total| |---|---|---|---|---| ||**Funds**|**Funds**|**Funds**|Funds| ||**2022**|**2022**|**2022**|2021| ||**£**|**£**|**£**|£| |Grants & donations|**12,000**|**-**|**12,000**|6,790| |Covid Small Business Grant|**-**|**-**|**-**|10,000| ||______|______|______|______| |**Total donations and legacies**|**12,000**|**-**|**12,000**|16,790| ||______|______|______|______| ||______|______|______|| |Total 2021|6,790|10,000|16,790|| ||______|______|______|| |**come from charitable activities**||||| ||**Restricted**|**Unrestricted**|**Total**|Total| ||**Funds**|**Funds**|**Funds**|Funds| ||**2022**|**2022**|**2022**|2021| ||**£**|**£**|**£**|£| |Rental income|**-**|**51,310**|**51,310**|55,472| ||______|______|______|______| |**Total income from charitable activities**||||| ||**-**|**51,310**|**51,310**|55,472| ||______|______|______|______| ||______|______|______|| |Total 2021|-|55,472|55,472|| ||______|______|______|| - **3 Income from charitable activities** - 12 - ## **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 MARCH 2022** ## **4 Investment income** ||||**Restricted**|**Restricted**|**Unrestricted**|**Unrestricted**|**Total**|Total|Total| |---|---|---|---|---|---|---|---|---|---| ||||**Funds**|||**Funds**|**Funds**|Funds|| |||||**2022**||**2022**|**2022**|2021|| |||||**£**||**£**|**£**||£| |Interest on bank deposits||||**-**||**155**|**155**||74| ||||______||______||______|______|| |**Total investment income**||||**-**||**155**|**155**||| ||||______||______||______||| |Total 2021||||-||74|74||| ||||______||______||______||| |**Analysis of expenditure**|||||||||| ||**Basis of**|**Rental**||**Govern-**|**2022**|Rental||Govern-|2021| ||**Allocation**|**income **|**Property**|**ance**|**Total**|income|Property|ance|Total| |||**£**|**£**|**£**|**£**|£|£|£|£| |**Costs directly allocated**|||||||||| |**to activities**|||||||||| |Loan interest|Direct|**3,012**|**-**|**-**|**3,012**|(2,329)|-|-|(2,329)| |Property maintenance|Direct|**35,076**|**-**|**-**|**35,076**|12,719|-|-|12,719| |Impairment of 16 Elm|||||||||| |Hill following renovation|Direct|**-**|**17,925**|**-**|**17,925**|-|12,427|-|12,427| |Management & letting|||||||||| |fees|Direct|**28,545**|**-**|**-**|**28,545**|5,522|-|-|5,522| |Retainers & employee|||||||||| |costs|Usage|**8,821**|**- 14,563**||**23,384**|11,165|-|9,736|20,901| |Preparation of accounts|||||||||| |& Independent|||||||||| |Examiner’s fees|Direct|**-**|**-**|**3,974**|**3,974**|-|-|3,152|3,152| |**Support costs allocated**|||||||||| |**to activities**|||||||||| |General office costs|Usage|**-**|**-**|**1,507**|**1,507**|-|-|6,375|6,375| |||______|______|______|______|______|______|______|______| |**Total resources**|||||||||| |**expended**||**75,454**|**17,925**|**20,044 **|**113,423**|27,077|12,427|19,263|58,767| |||______|______|______|______|______|______|______|______| **5 Analysis of expenditure** Unrestricted funds expended were £101,423 in 2022 and £58,767 in 2021. - 13 - ## **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 MARCH 2022** ## **5 Analysis of expenditure on charitable activities** |**Summary by fund type**|**Restricted**|**Unrestricted**|**Total**|Total| |---|---|---|---|---| ||**Funds**|**Funds**|**Funds**|Funds| ||**2022**|**2022**|**2022**|2021| ||**£**|**£**|**£**|£| |Rental income|**12,000**|**63,454**|**75,454**|27,077| |Governance|**-**|**20,044**|**20,044**|19,263| |Property|**-**|**17,925**|**17,925**|12,427| ||______|______|______|______| |**Total expenditure on charitable activities**|**12,000**|**101,423**|**113,423**|58,767| ||______|______|______|______| |Total 2021|-|58,767|58,767|| ||______|______|______|| ## **6 Trustee remuneration** The trustees were not paid or reimbursed for expenses during the year. The company’s directors do not receive emoluments. During the year the company had 1 employee (2021: 1). ## **7 Staff Costs** Staff costs are as follows |Wages and salaries
Social security costs
Pension costs
**_**
Total staff costs|**2022**
**£**
**23,909**
**-**
**521**
**______**
_
**24,430**
**_**|2021
£
20,784
-
426
______
21,210
**_**| |---|---|---| No employee received remuneration greater than £60,000 in either year. ## **8 Independent Examiner’s remuneration** The Independent Examiner’s remuneration amounts to £2,260 (2021 - £2,140). ## **9 Taxation** No provision is made for taxation as the company is a charity entitled to the various exemptions afforded by the Corporation Tax Act 2010. - 14 - ## **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 MARCH 2022** ## **10 Investment property** |**nvestment property**|||| |---|---|---|---| ||**Long leasehold land**|**Freehold land**|**Total**| ||**and buildings**|**and buildings**|| ||**£**|**£**|**£**| |At valuation as at 31 March 2021|**836,935**|**149,500**|**986,435**| |Sales in year|**(365,000)**|**-**|**(365,000)**| |Additions in year|**66,490**|**-**|**66,490**| |Revaluation|**110,500**|**(44,450)**|**66,050**| |Impairment|**(17,925)**|**-**|**(17,925)**| ||______|______|______| |**Total at 31 March 2022**|**631,000**
______|**105,050**
______|**736,050**
______| The properties are all investment properties and are held for direct charitable purposes. The properties were independently revalued by an Arnolds Keys LLP as at 31 March 2022 based on estimated open market values. 16 Elm Hill was sold on a 125-year residential long lease on 30 April 2021, a premium of £47,525 was paid to the superior landlord Norwich City Council and the balance of sales proceeds is available as unrestricted funds to support the future work of the Trust. On the historical cost basis the investment properties would have been included at a cost of £1,032,884 (2021 £1,361,746) ## **11 Work in progress** |**Work in progress**||| |---|---|---| |Work in progress 1 April 2021
Expenditure in year
26-30 Elm Hill project
Ninham’s Court project
Work in progress at 31 March 2022
**Debtors**
Trade debtors
Prepayments
Value Added Tax
Other debtors
**_**|**_**
**2022**
**£**
**2,327**
**2,606**
**3,769**
**58,628**
**______**
_
**67,330**
**_**|**2022**
**£**
**43,706**
**1,704**
**751**
**______**
**46,161**
**_**| |||2021
£
3,118
2,204
-
-
______
5,322
**_**| ## **12 Debtors** - 15 - ## **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 MARCH 2022** ## **13 Creditors** |(a) amounts falling due within one year
Trade creditors
Short term loans (note 12(b))
Interest Payable
Accruals and deferred income
Value Added Tax
Other creditors
(b) short term loans are made up as follows:
2.5% Bounce Back Loan (Co-operative Bank)
4% loan from Norwich City Council
8% loan from The Architectural Heritage Fund
(c) amounts falling due after more than one year
2% Bounce Back Loan (Co-operative Bank)
4% loan from Norwich City Council
Included within creditors above are amounts repayable by
instalments falling due as follows;
Between one and two years
Between two and five years
After more than five years
||**2022**
**£**
**7,927**
**18,014**
**-**
**4,696**
**-**
**468**
**______**
**31,105**
**______**
**3,108**
**14,906**
**-**
**______**
**18,014**
**__ ____**
**11,795**
**74,900**
**______**
**86,695**
**______**
**18,690**
**59,023**
**8,982**
**______**
**86,695**

**_ ____**|2021
£
11,713
65,596
4,055
21,786
661
11,247
______
115,058
______
1,272
14,324
50,000
______
65,596
______
14,903
89,806
______
104,709
______
18,013
58,243
28,453
______
104,709
__ ____| |---|---|---|---| ||

||| The Norwich City Council loans are secured with a charge over five properties, 63 Colegate, 23-25 St Augustine’s Street, 2-4 St Andrew’s Hill, The Briton’s Arms, Elm Hill and Augustine Steward House, Tombland. The Co-operative Bank Bounce Back Loan and the Architectural Heritage Fund loan are unsecured. - 16 - ## **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 MARCH 2022** ## **14 Statement of funds – current year** |**Restricted funds**|**At 1 April**|**Income**|**Expend-**|**Transfers**|**Re-**|**At 31**| |---|---|---|---|---|---|---| ||**2021**||**iture**|**between**|**valuation**|**March**| |||||**funds**||**2022**| ||**£**|**£**|**£**|**£**|**£**|**£**| |Donations|**636**|**12,000**|**(12,000)**|**-**|**-**|**636**| |Grants|**6,790**|**-**|**-**|**-**|**-**|**6,790**| ||**_______**|_______|_______|______|_______|**_______**| ||**7,426**|**12,000**|**(12,000)**|**-**|**-**|**7,426**| ||**_______**|_______|_______|______|_______|**_______**| |**Unrestricted funds**|**875,394**|**51,465**|**(101,423)**|**-**|**66,050**|**891,486**| ||_______|_______|_______|______|_______|_______| |Total funds|**882,820**|**63,465**|**(113,423)**|**-**|**66,050**|**898,912**| ||_______|_______|_______|______|_______|_______| |**Statement of funds –**|**prior year**|||||| |**Restricted funds**|**At 1 April**|**Income**|**Expend-**|**Transfers**|**Re-**|**At 31**| ||**2020**||**iture**|**between**|**valuation**|**March**| |||||**funds**||**2021**| ||**£**|**£**|**£**|**£**|**£**|**£**| |Donations|**636**|**-**|**-**|**-**|**-**|**636**| |Grants|**-**|**6,790**|**-**|**-**|**-**|**6,790**| ||_______|_______|_______|______|_______|**_______**| ||**636**|**6,790**|**-**|**-**|**-**|**7,426**| ||_______|_______|_______|______|_______|**_______**| |**Unrestricted funds**|**799,615**|**65,546**|**(58,767)**|**-**|**69,000**|**875,394**| ||_______|_______|_______|______|_______|_______| |Total funds|**800,251**|**72,336**|**(58,767)**|**-**|**69,000**|**882,820**| ||_______|_______|_______|______|_______|_______| ## **Donations** Donations were received in 2022 from the Paul Bassham Trust towards emergency repairs at Augustine Steward House. Past donations were received from Norwich Town Close Estate Charity and the Paul Bassham Charitable Trust to cover the costs of publishing the Trust’s book “Giving the Past a Future”. ## **Grants** Grants were received from the Architectural Heritage Fund for the viability study undertaken at 6-9 Ninham’s Court. - 17 - ## **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 MARCH 2022** ## **15 Analysis of net assets between funds – current year** |||**Restricted**|**Unrestricted**|| |---|---|---|---|---| |||**Fund**|**Funds**|**Total**| |||**2022**|**2022**|**2022**| |||**£**|**£**|**£**| ||Fixed assets|**-**|**736,050**|**736,050**| ||Work in progress|**6,790**|**39,371**|**46,161**| ||Debtors|**-**|**67,330**|**67,330**| ||Cash at bank and in hand|**636**|**166,535**|**167,171**| ||Creditors|**-**|**(117,800)**|**(117,800)**| |||**_______**|**_______**|**_______**| |||**7,426**|**891,486**|**898,912**| |||**_______**|**_______**|**_______**| ||**Analysis of net assets between funds – prior year**|||| |||**Restricted**|**Unrestricted**|| |||**Fund**|**Funds**|**Total**| |||**2021**|**2021**|**2021**| |||**£**|**£**|**£**| ||Fixed assets|**-**|**986,435**|**986,435**| ||Work in progress (restated)|**6,790**|**36,916**|**43,706**| ||Debtors|**-**|**5,322**|**5,322**| ||Cash at bank and in hand|**636**|**66,488**|**67,124**| ||Creditors|**-**|**(219,767)**|**(219,767)**| |||**_______**|**_______**|**_______**| ||(Totals restated to correct error in work in progress|**7,426**|**875,394**|**882,820**| ||figure shown in 2020/21 analysis)|**_______**|**_______**|**_______**| |**16**|**Related party transactions**|||| ||||**2022**|2021| ||**Norwich City Council**||**£**|£| ||Transactions during the year:|||| ||Loan principal repayments||**14,324**|13,765| ||Interest payable||**3,953**|4,511| ||Rents payable||**3,824**|4,060| ||Creditor balances at the year end:|||| ||Outstanding loans||**89,806**|104,130| ||Rents payable||**624**|4,148| ||Contracted payments under long term lease||**322,657**|315,230| ||arrangements:|||| The Council is represented by Councillors as members of the Board of Trustees. Other transactions related to business transactions that would normally occur between a local authority and a business entity. - 18 - ## **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE NOTES FORMING PART OF THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 MARCH 2022** ## **17 Operating lease income arrangements** The company earns rental income by leasing its properties to tenants under non-cancellable operating leases. At 31 March 2022 the company had contracted with tenants to receive the future minimum lease payments: ||**2022**|2021| |---|---|---| ||**£**|**£**| |Within one year|**38,301**|3,972| |Between one and five years|**118,668**|9,004| |More than five years|**451,226**|299,384| ||**_______**|_______| ||**608,195**|312,630| ||**_______**|_______| ## **18 Operating lease expenditure arrangements** At 31 March 2022 the company had contracted with landlords to pay the future minimum lease payments: ||**2022**|2021| |---|---|---| ||**£**|**£**| |Within one year|**5,450**|3,200| |Between one and five years|**21,176**|12,800| |More than five years|**296,031**|299,230| ||**_______**|_______| ||**322,657**|315,230| ||**_______**|_______| - 19 - ## **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE SUPPLEMENTARY NOTE TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022** |**1. **|**Income and Expenditure Account for the year ended 31 March 2022**|**Income and Expenditure Account for the year ended 31 March 2022**|||| |---|---|---|---|---|---| |||**2022**||2021|| ||**Rental Income**|**£**|**£**|£|£| ||**Rack rentals**||||| ||King Street|**-**||(622)|| ||Queen Anne Yard|**2,450**||2,450|| ||23/25 St Augustines Street|**3,764**||6,000|| ||2-4 St Andrew’s Hill|**9,000**||5,625|| ||Augustine Steward House|**22,558**||26,167|| ||Briton’s Arms|**6,241**||8,601|| ||**Ground Rentals**|**2,297**||2,251|| ||**Lease Extensions**|**5,000**||5,000|| |||**______**||______|| ||||**51,310**||55,472| ||**Property Expenditure**||||| ||Rents payable|**3,824**||4,323|| ||Provision for bad debts|**1,266**||-|| ||Repairs and maintenance|**21,125**||6,213|| ||Utility services|**1,501**||792|| ||External management and legal fees|**28,545**||5,522|| ||Property insurances|**7,360**||1,391|| |||**______**||**______**|| ||||**(63,621)**||(18,241)| ||||**______**||_____| ||**Net Rental Income**||**(12,311)**||37,231| ||**Grants & Donations**||**12,000**||16,790| ||**Interest receivable**||**155**||74| ||||**______**||______| ||**Total Income**||**(156)**||54,095| ||**Overhead expenditure**||||| ||Office rent and running costs|**508**||5,473|| ||Retainers and employment costs|**23,384**||20,901|| ||General expenses|**837**||902|| ||Annual accounts preparation & examination|**2,546**||1,825|| ||General loan interest|**3,012**||(2,329)|| ||Other professional fees|**1,590**||1,327|| |||**______**||______|| ||**Total overhead expenditure**||**(31,877)**||(28,099)| ||Impairment of 16 Elm Hill on completion||**(17,925)**||(12,427)| ||||**______**||______| ||||**(49,958)**||13,569| ||Unrealised profit on property revaluation||**66,050**||69,000| ||||**_______**||______| ||**Profit for the financial year**||**16,092**
**_______**||82,569
______| This page is not subject to the Independent Examiner’s report - 20 - ## **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE SUPPLEMENTARY NOTE TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022** ## **2 Analysis of tangible fixed assets and work in progress** |**Fixed Assets**
Edmund Wood House
Muspole Street
Queen Anne Yard
57 St Augustines Street &
1-4 Stonemasons Court
23/25 St Augustines Steet &
1-3 Barnes Yard
Dixon’s Court
2-4 St Andrews Hill
31-37 Church Lane, Eaton
Augustine Steward House
137/143 Magdalen Street
Briton’s Arms
16 Elm Hill
Gybson’s Conduit
**Total fixed assets**
**Work in progress**
26-30 Elm Hill
9 Ninham’s Court
**Total work in progress**
**Total**|**Value at**
**31 March**
**2021**
**Additions**
**Impairme**
**nt**
**£**
**£**
**£**
**3,900**
**-**
**-**
**9,000**
**-**
**-**
**23,000**
**-**
**-**
**8,700**
**-**
**-**
**93,900**
**-**
**-**
**5,000**
**-**
**-**
**99,900**
**-**
**-**
**4,000**
**-**
**-**
**309,700**
**-**
**-**
**7,000**
**-**
**-**
**109,900**
**-**
**-**
**317,435**
**66,490**
**(17,925)**
**(5,000)**
**-**
**-**
**_______**
**______**
**______**
**986,435**
**66,490**
**(17,925)**
**_______**
**______**
**______**
**25,081**
**1,704**
**-**
**18,625**
**751**
**-**
**_______**
**______**
**______**
**43,706**
**2,455**
**-**
**________**
**______**
**______**
**1,030,141**
**68,945**
**(17,925)**
**________**
**______**
**______**|**Disposals**
**Revaluati**
**on**
**£**
**£**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**950**
**-**
**(46,400)**
**-**
**-**
**-**
**100**
**-**
**-**
**-**
**150,300**
**-**
**1,000**
**-**
**(39,900)**
**(365,000)**
**-**
**-**
**-**
**________**
**______**
**(365,000)**
**66,050**
**________**
**______**
**-**
**-**
**-**
**-**
**______**
**______**
**-**
**-**
**________**
**______**
**(365,000)**
**66,050**
**________**
**______**|**Value at**
**31 March**
**2022**
**£**
**3,900**
**9,000**
**23,000**
**9,650**
**47,500**
**5,000**
**100,000**
**4,000**
**460,000**
**8,000**
**70,000**
**1,000**
**(5,000)**
**_______**
**736,050**
**_______**
**26,785**
**19,376**
**_______**
**46,161**
**________**|**Value at**
**31 March**
**2022**
**£**
**3,900**
**9,000**
**23,000**
**9,650**
**47,500**
**5,000**
**100,000**
**4,000**
**460,000**
**8,000**
**70,000**
**1,000**
**(5,000)**
**_______**
**736,050**
**_______**
**26,785**
**19,376**
**_______**
**46,161**
**________**| |---|---|---|---|---| |||||**_______**
**26,785**
**19,376**
**_______**
**46,161**
**_______**| |||||**782,211**
**_______**| This page is not subject to the Independent Examiner’s report - 21 - ## **NORWICH PRESERVATION TRUST LIMITED BY GUARANTEE SUPPLEMENTARY NOTE TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022** |**3**|**Analysis of expenditure on 16 Elm Hill Project**|**Value at**|**Movement**|**Value at**| |---|---|---|---|---| |||**1 April**|**in year**|**31 March**| |||**2021**||**2022**| ||**Expenditure**|**£**|**£**|**£**| ||Cost of building and building works|**202,902**|**957**|**203,859**| ||Professional fees and expenses|**83,344**|**8,123**|**91,467**| ||Other costs including planning and building regulation fees|**7,583**|**7,944**|**15,527**| ||Lease premium|**-**|**47,525**|**47,525**| ||NPT overheads and interest allocated|**36,033**|**1,941**|**37,974**| ||Impairment on completion|**(12,427)**|**(17,925)**|**(30,352)**| |||**_______**|**______**|**_______**| ||**Total expenditure**|**317,435**|**48,565**|**366,000**| |||**_______**|**______**|**_______**| ||**Income**|||| ||Sales income|**-**|**(365,000)**|**(365,000)**| |||**_______**|**______**|**_______**| ||**Net project cost**|**317,435**|**(316,435)**|**1,000**| |||**_______**|**______**|**_______**| |**4 Analysis of expenditure on 26-30 Elm Hill Project**
**Expenditure**
Cost of building and building works
Professional fees and expenses
Other costs including planning and building regulation fees
NPT overheads and interest allocated
**Total work in progress**
**5 Analysis of expenditure on 9 Ninham’s Court Project**
**Expenditure**
Cost of building and building works
Professional fees and expenses
Other costs including planning and building regulation fees
NPT overheads and interest allocated
**Total expenditure**
**Historic building grants and donations**|**Value at**
**1 April**
**2021**
**Movement**
**in year**
**Value at**
**31 March**
**2022**
**£**
**£**
**£**
**-**
**-**
**-**
**18,232**
**-**
**18,232**
**751**
**6**
**757**
**6,098**
**1,698**
**7,796**
**_______**
**______**
**_______**
**25,081**
**1,704**
**26,785**
**_______**
**______**
**_______**
**Value at**
**1 April**
**2021**
**Movement**
**in year**
**Value at**
**31 March**
**2022**
**£**
**£**
**£**
**-**
**-**
**-**
**11,330**
**-**
**11,330**
**563**
**-**
**563**
**6,732**
**751**
**7,483**
**_______**
**______**
**_______**
**18,625**
**751**
**19,376**
**_______**
**______**
**_______**
**(6,790)**
**-**
**(6,790)**
**_______**
**______**
**_______**|**Value at**
**1 April**
**2021**
**Movement**
**in year**
**Value at**
**31 March**
**2022**
**£**
**£**
**£**
**-**
**-**
**-**
**18,232**
**-**
**18,232**
**751**
**6**
**757**
**6,098**
**1,698**
**7,796**
**_______**
**______**
**_______**
**25,081**
**1,704**
**26,785**
**_______**
**______**
**_______**
**Value at**
**1 April**
**2021**
**Movement**
**in year**
**Value at**
**31 March**
**2022**
**£**
**£**
**£**
**-**
**-**
**-**
**11,330**
**-**
**11,330**
**563**
**-**
**563**
**6,732**
**751**
**7,483**
**_______**
**______**
**_______**
**18,625**
**751**
**19,376**
**_______**
**______**
**_______**
**(6,790)**
**-**
**(6,790)**
**_______**
**______**
**_______**| |---|---|---| |||**_______**
**(6,790)**
**_______**| This page is not subject to the Independent Examiner’s report - 22 -