AHF
Transforming
Heritage
Trustees, Annual
Report and
Accounts
Year ended 31st March 2023
The Architectural Heritage Fund
Company Number."1150304
Chanty Nurnber." 26678D
Scolli8h.-hanly NurnLEr. SC043840

## Annual Report 2022/23 

|Who we are and what we do|1|
|---|---|
|Chair’s introduction|2|
|Chief Executive’s highlights from the year|3|
|Our objectives|4|
|Our impact: Progress against our strategy||
|Objective One||
|Objective Two||
|Objective Three||
|Objective Four||
|Our portfolio – case studies from across the UK|12|
|Financial review|22|
|Financial overview||
|Remuneration||
|Reserves||
|Investment policy||
|Going concern||
|Plans for the future|27|
|Governance statement|28|
|The AHF’s charitable objectives and public benefit||
|Our values||
|Principal risks and uncertainties||
|Equality, diversity and inclusion||
|Structure, governance and management||
|Board of Trustees||
|Benefactors and Friends|38|
|Statement of Trustees’ Responsibilities|39|
|Independent Auditor<br>Report|40|
|Financial statements|44|





## 1. Who we are and what we do 

The AHF is a registered charity, founded in 1976 to promote the conservation and sustainable reuse of historic buildings for the benefit of communities across the UK, particularly in economically disadvantaged areas. 

## Purpose 

The AHF exists to help communities find enterprising ways to revitalise the old buildings they love. We help them with advice, grants and loans. Our support acts as a catalyst for putting sustainable heritage at the heart of vibrant local economies. 

For over 45 years, we’ve been the leading social investor in creating new futures for historic buildings. 



Chairfs introduction
l am delighted to be introducing my first Annual Review as Chair of the AHF. It has been a
hugely interesting first year in the role and one in which I have been able to properly appreciate the
extent of the AHF'S work across the UK.
It has been incredibly useful meeting key partners and stakeholders and also making visits to some of
the projects we hève supported. A trip to Scotland over the summer included a vislt to 8 number of
hugely impressive projects, including Above Adventure in Kilmarnock. This project, supported by
the AHF with all three core elements of its support
grants. loans and advice
has seen the
rescue of Grange Free Church from derelirtion and turn it into a popular, accessible climbing hub.
This is very much an AHF project through and through.. working within a deprived community to
help bring forward an ambitious social enterprise led project for a redundant historic building.
The creation of this new asset is also helping efforts to bring more footfall into the town centre
and which demonstrate5 the wider impact projects like thi5 can have.
It's also been a pleasure to meet so many of our stakeholders and partners. Our partners are
critical supporters and funders of our work and we continue to benefit from hugely important
relationships across the heritage and social investment settors. I would like to thank all our funders
for their new and ongoing investments over the course of the year, including the Department for
Digital, Culture, Media and Sport, and the Statutory agencies acros5 the UK, the Department for
Communities Northern Ireland, Historic England, Historic Environment Scotland and Cadw. We're a150
immensely grateful for the ongoing sUPPOrt from foundation and trust supporters, including the
Garfield Weston Foundation, Pilgrim Trust and William Grant FoLJnd3tion.
I have been an admirer of the AHF for many years, but in the last year I have really understood
the crucial role that it plays and the opportunities that exist for it to contribute yet more widely.
Matthew and the team at the AHF do an amazing job 5UPPOrtinB communitie5 around the UK
to realise their ambitions and I have been incredibly impressed by the quality of the work they
deliver.
I want to Say a thank you to my fellow trustees who have all made me feel immensely welcome. We
were sad to see Carole Anne-Davies retire from the Board during the year, but we have been lucky
to replace her with such an experienced new trustee for Wales in Menna lones. I look forward
to working with Menna and the entire Board a5 we implement our new Strategy during the next year.
Ros Kerslake CBE
Chair

## 3 Chief Execu"ve’s highlights from the year 

One of the big pieces of work we undertook this year was the interim evaluation of our 2020-23 strategy. This was a very positive piece of independent research for the organisation, with the scoring highly across a range of metrics from our grant recipients and loan clients. One of those metrics was a rating of the support they had received from the AHF, on a scale of 0 to 100, with the average score coming out at 92/100. We see this as a strong endorsement not only for the work we do, but also of how we do it, and this underlines why we are signatories of the Institute of Voluntary Action Research’s ‘Flexible Funder’ commitments that aim to keep funders committed to ‘open and trusting’ funding practices. 

The evalua%on also highlighted areas of work where we need to develop our approach. This includes more intelligence-led targe%ng of areas and communi%es that have not, for whatever reason, bene!'ed from previous AHF investment. We have also undertaken work to re-develop our grant and loan assessment criteria to ensure decision-making be'er re"ects considera%ons of Equality, Diversity and Inclusion, and this was launched in %me for our new funding awards, from April 2023 onwards. We also con%nue to work with partners to look at ways we can support the capacity of less well-resourced organisa%ons to bring forward applica%ons, par%cularly at the early stage. 

Our £15.4m high streets programme, Transforming Places through Heritage, closed in March 2023. Despite the difficulties of delivering a programme like this during a pandemic, the evaluation of the programme has been very encouraging. The – which awarded 338 grants to 239 organisations focused on high street heritage-led regeneration  – was found to have delivered significant value in town centres where the market is not working and where investment in social and community enterprise-led projects can make a real difference. We continue to make the case to government and other funders that this type of investment is both still very much needed across the UK and also delivers clear heritage, community and regeneration impacts. 

That need for ongoing investment is one of the reasons we were so delighted to receive news of a new £5m grant from the Na%onal Lo'ery Heritage Fund to award to a further cohort of Heritage Development Trusts. The Heritage Development Trust pilot formed part of our Transforming Places through Heritage Programme and included investment in seven organisa%ons across England. These organisa%ons are all ac%vely involved in developing por$olios of heritage assets within town centre and high street loca%ons, !lling gaps that are o#en le# by the private and public sectors. We are very grateful to the Heritage Fund for this award and look forward to expanding the programme to Scotland, Wales and Northern Ireland during the next year. 

Our new Strategy for 2023-28 sets out our ambi%ons to increase funding and support to chari%es and social enterprises to deliver across a range of priori%es – from place-making to improving the energy e"ciency of historic buildings. And despite all the challenges the UK currently faces, we remain optimistic about the role heritage-led regeneration can continue to play in communities across the UK. 



- 4 Our objectives 

## 1. Our impact: Progress against our strategy 

Below we provide an assessment of our progress over the course of the year of delivering against our four strategic aims: 

## Aim One 

Generate and distribute increased levels of investment and funding to support the sustainable reuse of historic buildings. 

## Aim Two 

Support community-led heritage regenera%on by assis%ng chari%es and social enterprises to take ownership of, develop and sustain new uses for historic buildings. 

## Aim Three 

Increase the e!ec%veness and impact of the AHF, ensuring we con%nue to deliver value for funders and the organisa%ons and projects we invest in. 

## Aim Four 

Promote the impact and bene!ts of community-led regenera%on and ownership of historic buildings, to Government, communi%es and funders. 



Objective 1: Generate and distribute increased levels of investment and funding to support the sustainable reuse of historic buildings. 

Fig 1. 

|||
|---|---|
|KPI|Result|
|||
|Grant programme spend targets met|Met.|
|Fully commit HIF and endowment<br>funds|Par%al achievement. Both funds were near to full<br>commitment at year end: (Endowment: 816k unallocated.<br>HIF: 442k unallocated).|
|Fundraising strategy targets achieved|Par%al achievement. New £5m HDT programme and new<br>England grant funding agreed. New loan!nance was<br>delayed by BoE rate rises.|



During the past year, the AHF made 17 loan offers (including extensions) totalling £4,251,218. We also awarded 133 project grant offers totalling £2,435,172, and two sector partner grants totalling £28,333. 

A total of 53 grant offers were made in England under the Transforming Places through Heritage Programme during its final year of delivery. In total we have awarded £13,893,006 under this programme since 2019, to more than 2 projects. There is still strong demand for town centre and high street focused investments, and this is a fundraising priority we are taking forward into our new strategy for 2023-28. 

Fig 2. Loan offers (including extensions) 22/23 

|Organisa"ons|Buildings|Loan O!er(£)|
|---|---|---|
|England|||
|Bourne Town Hall Trust|Bourne Town Hall|£<br>30,000.00|
|House of Illustra%on(extension)|New River Head|£<br>1,004,624.00|
|Harwich Electric Palace Trust<br>(extension)|Harwich Electric Palace|£<br>70,000.00|
|Cultura Trust(extension)|Warwick Bridge Corn Mill|£<br>224,503.00|
|CEDE Founda%on|Former St Igna%us Church|£<br>50,000.00|
|Heritage Lincolnshire(extension)|Old King’s Head|£<br>200,000.00|
|Romsey& District BPT(extension)|Bargain Farmhouse|£<br>300,000.00|
|Delapre AbbeyTrust|Delapre Abbey|£<br>200,000.00|
|Romsey& District BPT|Bargain Farmhouse|£<br>75,750.00|
|Sub-total||£<br>2,154,877.00|
|Northern Ireland|||
|ConwayMill(extension)|ConwayMill|£<br>396,438.00|
|Sub-total||£<br>396,438.00|
|Scotland|||
|David Livingstone Trust(extension)|Shu'le Row|£<br>500,000.00|
|North East Scotland Preserva%on Trust|Cash"ow loan|£<br>76,500.00|
|Willow Tea Rooms Trust(extension)|Willow Tea Rooms|£<br>73,530.00|
|Sub-total||£<br>650,030.00|





|Wales|||
|---|---|---|
|Spital!elds Historic Buildings Trust|Caerwent House|£<br>150,000.00|
|Cardigan BPT(extension)|Market Hall|£<br>199,873.00|
|Spital!elds HBT(extension)|Caerwent House|£<br>550,000.00|
|Sub-total||£<br>899,873.00|
|O!ers notproceeding|||
|Falkland StewardshipTrust|Moncrie!House|£<br>150,000.00|
||TOTAL OFFERS|£<br>4,251,218.00|



Fig 3. Loan offers (including extensions) by country 


**----- Start of picture text -----**<br>
Loan Offer (£)<br>£899,873.00<br>£2,154,877.00<br>England<br>Northern Ireland<br>£800,030.00<br>Scotland<br>Wales<br>£396,438.00<br>**----- End of picture text -----**<br>


To continue to enable us to meet some ongoing demand in England, we were very pleased to be awarded a grant from Historic England, to begin in 2023/24. This grant of £417,151 provides for a support and advisory team and also an early-stage grants budget. 

In Wales, we continued our new funding arrangement with Cadw which, together with funding from The Pilgrim Trust and the Garfield Weston Foundation, has seen our grants programme expand to more than £350,000 in this year. We are extremely grateful to Cadw, The Pilgrim Trust and the Garfield Weston Foundation, whose partnership made possible our Heritage Transformed in Wales programme. From 23/24 onwards, this programme will be funded exclusively by Cadw. 

During the 22/23 year, the Garfield Weston Foundation, The Pilgrim Trust, and the Department for Communities Historic Environment Division (NI) also supported the delivery of Heritage Transformed in Northern Ireland. This programme sat alongside the Village Catalyst partnership scheme, funded by the Department for Communities and the Department for Agriculture, Environment and Rural Affairs. Over the last two years, the delivery of these programmes alongside each other has led to a significant increase in funding awards across Northern Ireland, and we continue to develop a pipeline of projects to meet the funding opportunities currently available. 

The William Grant Foundation has been a partner of the AHF for a number of years now; it was therefore fantastic to receive the news that they were awarding us a further £220,000 for two more years from 23/24, in support of the Tailored Support Fund in Scotland. This fund enables us to fund elements of projects that some of our restricted funding does not allow for, or for projects where the building’s 



community significance has not yet been recognised by statutory listing. Borrowdale School is a good example of a historic but currently unlisted building that the fund has enabled us to support, as the local community seeks to convert it into environmentally sustainable, affordable housing. 

For the past couple of years, AHF’s Investment Team has been seeking new loan finance to help us meet growing demand from organisations, and last year saw the near completion of a deal with an ethical bank to bring in new debt finance to the Heritage Impact Fund. Unfortunately, the increasing cost of borrowing debt finance meant we had to pause those negotiations. Despite this, we still intend to grow the HIF and, subject to the finance being affordable, the demand from projects certainly continues. We hope to negotiate alternative HIF funding over the next couple of years, and at the same time we have begun a number of conversations with funders around a new blended finance fund and also funding for energy efficiency investments. 

The AHF’s support and funding has again been demonstrated to be instrumental in assisting organisations to win funding from the UK Government’s Community Ownership Fund (COF). Around 25% of successful COF projects to date had received early-stage funding from the AHF. The AHF is now a specialist partner in the consortium advising organisations on their Community Ownership Fund applications. 

## Objective 2: Support community-led heritage regeneration by assisting charities and social enterprises to take ownership of, develop and sustain new uses for historic buildings. 

Fig 4. 

|||
|---|---|
|KPI|Result|
|||
|Deliver high-quality advice and support to chari%es and social<br>enterprises developing historic building projects (UK wide).|Met. All funding recipients report<br>either Sa%sfac%on or High<br>Sa%sfac%on with our support.|
|Re-Plan: A minimum of eight organisa%ons supported during<br>22/23.|Met. Eight organisa%ons supported<br>during 22/23.|



It was another year of seeing incredibly ambitious and varied projects come forward for funding. 

With much of the AHF’s loan capital committed, fewer new loan offers were made in 2022/23 than in recent years – however, a number of new loans were offered, and some projects required increases or extensions to existing loans. New Heritage Impact Fund loans included £200,000 for Delapre Abbey in Northamptonshire. The loan will support the cash-flow requirements of the charity as it develops the capital works to re-purpose the 19[th] - century Stables, Gardener’s Co'age and Lodge at Abbey into 16 individual units to be let out to well-being organisa%ons. The project had also been supported by an earlier AHF development grant, which funded a masterplan for the site. 

We also supported North-East Scotland Preservation Trust with a working capital loan, through the endowment fund, for just over £75,000 as that organisation further develops a number of projects in the region. These include the recently completed capital project at the former John Trail Bookshop, which is now a hotel, The Stag and Thistle. 



Elsewhere in Scotland, Clydesdale Rowing Club completed the capital phase of the West Boathouse project in Glasgow. Following the completion of conservation works, they drew down their working capital loan of £100,000, which will assist them in developing a sustainable future for the building as a new rowing hub for the city. The elegant Grade A-listed Port House in Jedburgh also completed its capital phase, which had been supported by a development grant and loan investment of £100,000. 

In Northern Ireland, the Village Catalyst scheme, focused on the revival and repurposing of historic buildings in rural communities to tackling rural poverty and social isolation, wrapped up its four pilot projects (now operational) and continued to make new awards. These included early-stage grants to a range of buildings, from banks to memorial halls, to enable them to play a renewed role in their rural communities once again. There was a total of eleven awards to Village Catalyst schemes in 2022/23. 

We were also pleased to see the award of £464,000 from The Na%onal Lo'ery Heritage Fund to the hugely exci%ng Riddel’s Warehouse project in Belfast. The AHF has supported this project since 2014, awarding Hearth Historic Buildings Trust four early-stage grants, a Heritage Impact Fund loan and, most recently, a Capital Works Grant towards urgent conserva%on work. This funding will assist essen%al repairs that should ensure the building is no longer at risk of loss. 

Scotland saw a raft of new grant awards thanks to our ongoing partnerships with Historic Environment Scotland and the William Grant Foundation. These included awards to the Dalbea(e Community Ini%a%ve to advance plans to transform the former Dalbea(e Primary School into ‘Rocks and Wheels’, an exci%ng new £5m Ac%vity Centre and 60-bed hostel. We also made a £15,000 award to the Ridge CIC in Dunbar for 86-88 High Street in the centre of the town. That project will provide further training opportuni%es for the charity’s award-winning skills programme and lead to the crea%on of new a!ordable housing and le'able holiday "ats, along with a workspace on the ground "oor. 

In England, the !nal grant and community shares commitments were made under the Transforming Places through Heritage programme. Nearly £14m in grants have been commi'ed since the programme launched in 2019, and grants this year included those to Selsey Pavilion in West Sussex, which will become a cultural hub, cinema and performance space. The Pavilion was recently awarded a major NLHF grant, once again demonstra%ng the role of our early-stage funding in helping organisa%ons make bids for larger funding pots. Redruth Former Library CIC was also awarded a grant of £33,345 to help turn the library building into a cultural hub, with a plan to house training services for young people, a communityrun café, performance and residency spaces. A number of capital projects also opened their doors for the !rst %me during the year, including the Lancashire and Yorkshire Bank in Bacup, a project that we have funded since acquisi%on. The building, which was been developed by Valley Heritage, a Heritage Development Trust, opened in October 2022 as a new workspace with four a!ordable "ats for local young people. 

Over in Wales, a number of Capital Works Grants were awarded thanks to funding from Cadw. These included an award to Machynlleth Town Council for the Old Stables and Coach House project, which will see the building, formerly part of an estate owned by the Marquess of Londonderry, conserved and adapted into accommoda%on and facili%es for mountain bikers, walkers and other outdoor enthusiasts – a fast growing contributor to the local economy. Another high street and cultural facility funded during the year was Theatr Soar in Merthyr Tyd!l, which is seeking to expand on its successful model by adding more youth-focused ac%vi%es. Our development grant helped that charity to appoint a professional team to further their plans for its expansion. 



Objective 3: Increase the effectiveness and impact of the AHF, ensuring we continue to deliver value for funders and the organisations and projects we invest in. 

Fig 5. 

|||
|---|---|
|KPI|Result|
|||
|Develop new AHF Strategy 2023-28|Met. Signed o!in<br>March 23.|
|Recruitment of new Chair|Met. Ros Kerslake<br>appointed in<br>September 2022.|



Governance changes during the year included the arrival of Ros Kerslake CBE as Chair in September 2022. Ros brings an enormous amount of experience in heritage-led regeneration, property, and public, private and third-sector funding, and has helped shape the organisation’s new Strategy for 2023-28. 

Carole-Anne Davies, our trustee for Wales, stepped down during the year, and we are very grateful to her for the support she gave to the AHF’s work, not only in Wales but across the UK. To replace CaroleAnne, we appointed Menna Jones as our new Trustee for Wales. Menna has worked in the social enterprise sector for the last 30 years and was formerly Chief Executive of Antur Waunfawr, a social enterprise in North-West Wales for 27 years, until joining Bardsey Island Trust as the Development Manager for the island. Menna’s experience in managing and leading social enterprises, as well significant development experience in projects involving historic buildings, will be immensely beneficial to the organisation. 

One of the major pieces of work during 2022/23 was the interim evaluation of the AHF’s progress in delivering its 2020-23 Strategy, which helped inform the new strategy for the organisation. The evaluation evidenced very high applicant satisfaction ratings and attributed significant impacts to the role played by AHF advice and funding in advancing historic building projects. The evaluation also looked at the AHF’s work from the perspective of Equality, Diversity and Inclusion (EDI), with one of the significant developments out of that process being the development of new assessment criteria for grant and loan applications. This, for the first time, assesses applicants in terms of their proposal’s impact on EDI outcomes. We also signed up to the Diversity Forum’s Diversity Manifesto and joined the Forum’s Steering Group. This commits to us to proactively engaging with several priorities for the social investment sector that build on the five EDI commitments we agreed back in 2021. 



Objective 4: Promote the impact and benefits of community-led regeneration and ownership of historic buildings, to government, communities and funders. 

Fig 6. 

|||
|---|---|
|KPI|Result|
|||
|Deliver interim evalua%on, including EDI evalua%on, of the AHF’s 2020-<br>23 Strategy|Met. Completed in<br>September 2022.|
|Publish Year 3 Transforming Places evalua%on report, including HDT<br>pilots evalua%on|Met. Completed in<br>November 2022.|



During the year we published, alongside the Department of Communities, a research report, on the potential for the increased utilisation of ‘heritage-enabled’ regenera%on in Northern Ireland’s ‘midsized’ towns. The report, produced by Ruth Flood Associates, examined the specific needs as well as the potential for heritage-enabled regeneration to drive new approaches to revitalising Northern Ireland’s towns through the adaptation, reimagination and locally driven reuse of historic buildings. We are using the findings to make the case for new programmes within Northern Ireland that focus on this scale of settlement and some of the approaches recommended by the report, including increasing funding for housing schemes that involve the reuse of historic buildings. 

The interim evaluation of the Transforming Places through Heritage programme was also produced to coincide with the end of the programme, the findings of which have been very encouraging. At the same time as evidencing the effective delivery of the programme by the AHF, the report found that the programme had already delivered significant impacts for high street and heritage-led regeneration. The report also provides evidence for the economic benefits of investing in charity and social enterprise-led projects, with the programme producing an economic benefit cost ratio of 1.92 (i.e. for every £1 invested in the programme, it returned £1.92) and a total benefit cost ratio of 3.3 . We will be using these positive findings to make the case to government for further funding into programmes like Transforming Places through Heritage, particularly as the challenges facing heritage assets and high streets remain evident across the country. 

We also reached the mid-point of delivering the Heritage Impact Fund, which launched in 2019. Despite the significant challenges brought about by the pandemic, the fund has delivered well against its Key Performance Indicators and is on track to deliver in full over the lifetime of the fund. 

Fig 7: Headline HIF KPIs 

|KPI|Performance|
|---|---|
|A minimum of 5 loan offers in any 12-month<br>period (April to March)|Achieved in excess of target over first two years,<br>the pandemic having affected the last two years:<br>Year1 – 16 offers; Year 2 – 8; Year3 – 4; Year4 – 3.|





||For Year 5 (from April 23) – two new loan offers<br>made to date.<br>Status: On Track|
|---|---|
|A minimum of 40-50 loan offers made by the<br>end of the fifth year of the fund (to be<br>extended by 12 months due to the<br>pandemic) )|33 offers made to date.<br>Status: On Track|
|Applicable write-off rate of 20% not<br>exceeded|Currently 0%<br>Status: On Track|



Fig 8: Project level KPIs 

|HIF KPIs|Achievements as at<br>March 2023|
|---|---|
|Organisa%ons which have acquired long-term rights in historic buildings|17|
|Historic buildings repaired and re-used by not-for-pro!t organisa%ons|15|
|New FTE jobs created|64|
|New training opportuni%es created|276|
|New volunteering opportuni%es created|541|
|Commercially run and not-for-pro!t businesses opera%ng from re-used<br>historic buildings|11commercially run<br>organisa%ons<br>6non-pro!t<br>organisa%ons|
|Organisa%ons have greater con!dence in their organisa%on|16|
|Number of clients having received RePlan support service|27|





## 5 Our portfolio – case studies from across the UK 

## Maeno!eren Slate Mills 

## Blaenau Ffes"niog, Gwynedd, Wales 

## Slate Heritage Interna"onal 

## Grade II* 

## Mul -use future for former slate mills 

The twin slate mills on the Maeno!eren level form part of a major slate quarry near the town of Blaenau Ffes%niog. The mills are Grade II*-listed: an excep%onal survival of a largely unaltered slab mill built between 1870 and 1897. Originally water-powered, the mills were converted to electric power in 1906. For genera%ons, they were a centre of employment and prosperity for the local community. Later in the 20[th] Century, the buildings were withdrawn from use and fell into disrepair. 

Slate Heritage Interna%onal plans a mixed-use approach to the restored slate mills which embrace the site’s industrial heritage to include tradi%onal skills employment, visitor des%na%on, tours, and accommoda%on. Project plans include recommencing slate-dressing on site and crea%ng bespoke tours in partnership with other sites that make up the Slate Landscape of Northwest Wales World Heritage Site to improve access and understanding of this unique history. The project team also hopes to work with Zip World to expand the provision of adventure ac%vi%es available locally, and with Plas Weunydd to add to the range of local tourist accommoda%on. 

In 2021, an AHF Project Viability Grant explored a range of possible future uses for the mills before determining the preferred, mixed-use plans detailed above would likely form a viable business. A Project Development Grant, awarded in March 2023, is currently suppor%ng the organisa%on to strengthen its governance, as well as commission specialists to oversee the ini%al capital works on site. 

## AHF Funding 

Project Viability Grant - £7,500 (2021) 

Project Development Grant - £19,439 (2023) 

## New Galloway Town Hall 

## New Galloway, Dumfries and Galloway, Scotland 

## Local Ini"a"ves in New Galloway 

## Category B 

## Community hub in historic town hall 

Since the 17[th] century, New Galloway Town Hall has been at the centre of civic life in what was once the smallest Royal Burgh in Scotland. The Town Hall was rebuilt in Victorian %mes and stands on the High Street; an imposing, elegant white building with a tall clock tower complete with chiming clock. Internally, a large upper hall bene!ts from a high vaulted ceiling and features a series of Victorian moral maxims, which run around the top of wood panelling. The Hall was formerly the seat of local government 



and was held under ‘common good’ for this purpose. However, since the restructuring of local government, the local authority was less able to con%nue upkeep of the building. 

When the Hall was boarded up, a community-led group, Local Ini%a%ves in New Galloway (LING), took on responsibility for its opera%on as a space for community ac%vi%es. Having run the building for a few years, LING was able to make a case for acquisi%on under the asset transfer process. The group took ownership in 2022, the %ming being in"uenced by receipt of an o!er of capital funds from the Community Ownership Fund (COF) – this was one of the earliest projects in Scotland to receive COF funding. However, community use of the building was compromised by poor hea%ng and access issues. With ownership of the building secured, therefore, LING turned its a'en%on to repairing and improving the Hall. 

The AHF !rst supported this project in 2018, awarding LING a Project Viability Grant towards a feasibility study. In 2022, the AHF also provided cri%cal support to help with capacity – a part-%me Project Manager was able to drive the project forward in the necessary %mescale. External repairs, a hea%ng upgrade and the installa%on of a new li# were all completed in the summer of 2023, securing the building’s future as a "exible hub for community ac%vi%es in this rural area. 

## h'ps://newgallowaytownhall.com/ 

## AHF Funding 

Project Viability Grant - £5,000 (2018) 

Project Development Grant - £10,000 (2022) 

Project Development Grant - £5,000 (2022) 

## West Boathouse 

## Glasgow Green, Glasgow, Scotland 

## Glasgow Building Preserva"on Trust and Clydesdale Amateur Rowing Club 

## Category B 

## Edwardian boathouse on the River Clyde repaired and adapted for enhanced future use 

The Category B-listed West Boathouse was designed and built as a %mber-framed structure by Glasgow Corpora%on Architect, A.B. MacDonald. Clydesdale Amateur Rowing Club and Clyde Amateur Rowing Club have occupied the boathouse since it was built in 1905. Both rowing clubs have been holding rega'as and training events on the River Clyde for over 150 years, as well as providing training facili%es for rowing teams and champions, including Olympic medal winners. Despite remaining in ac%ve use by the rowing clubs, by the 2010s the boathouse was in poor condi%on. 

Glasgow Building Preserva%on Trust and Clydesdale Amateur Rowing Club have been working on a project to repair and adapt West Boathouse from broader community uses. As part of the full restora%on of the building, substan%al works were undertaken, including rebuilding the !rst-"oor balcony, inser%ng new concrete founda%ons, installing the new cladding and using state-of-the-art conserva%on techniques to ensure the longevity of the delicate %mber structure. Works were also undertaken to increase accessibility within the boathouse, including the addi%on of a li# and accessible changing facili%es. Further, a new gym, rowing training facility and mul%-use spaces have been developed within the building. 



Ini%al viability and development phase work for this project, including a heritage appraisal, business case, condi%on survey, consultant fees, and conserva%on reports, was supported by Project Viability and Project Development Grants from the AHF. Once conserva%on work had been completed, the AHF also provided loan investment to support Clydesdale Amateur Rowing Club with !t-out as they moved back into the boathouse. West Boathouse re-opened in May 2023, with both the Clydesdale and Clyde Amateur Rowing Clubs moving back into the building alongside the Strathclyde University Rowing Club, o!ering enhanced facili%es and a new programme of opportuni%es for local people to engage with the River Clyde. 

Home - Clydesdale Amateur Rowing Club (clydesdalearc.org.uk) 

## Home (gbpt.org) 

## AHF Funding 

Project Viability Grant - £3,000 (2015) 

Project Development Grant - £13,000 (2016) 

Endowment Loan - £100,000 (2020) 

## The Chester Hydro Electric Building 

## Chester, England 

## Chester Heritage and Sustainability Enterprises CIC (CHASE) 

## Grade II 

## To convert a disused hydroelectric sta on into use as an environmental educa onal hub 

The hydroelectric sta%on was constructed on the site of the 13[th] -century Dee Mills. Built in 1913 in red sandstone as a neo-gothic structure to match the Dee Bridge and located between two main shopping streets in Chester city centre, it is the only hydroelectric plant in England that has generated power with both %dal and headwaters. The Chester Hydro stopped producing power in 1951. It is currently owned by Cheshire West and Cheshire Council, with a long lease held by United U%li%es, which has not occupied the building since 2015. 

Cheshire Historic Buildings Preserva%on Trust ini%ally applied for a grant from the AHF to help them explore the possibili%es around a response to the climate emergency as a role for the Hydro. They carried out a viability study, also supported with funding from the local council. They also looked at the condi%on of the building, established es%mated costs, carried out a community consulta%on, and did an op%ons appraisal of various end uses of the hydro, developing an ini%al business case to see if the project could become self-sustaining in the long term. The study concluded that the project had the poten%al to be sustainable, and the Trust then took the decision to create a separate organisa%on to move the project forward. They brought together a range of suitable and enthusias%c individuals and stakeholders to form Chester Heritage and Sustainability Enterprises CIC (CHASE). 

CHASE intends to convert the building into a careers, educa%on and heritage a'rac%on to enable residents and visitors to learn about both the history of the site and the River Dee and the future of lowcarbon industry. The turbine hall will become the hub of the centre with a range of interpre%ve and interac%ve displays and educa%onal resources. A new-build glazed structure on the roof, meanwhile, will house a mul%-purpose room for seminars, events and pop-up hospitality. CHASE is presently looking at 



the prospects of re-introducing an element of hydro power genera%on for the project while progressing discussions to enable CHASE to take over the building and deliver the project with support from a range of partners. 

The project viability reported considered di!erent opera%ng models, ul%mate sugges%ng that a mix of charges for services would be most e!ec%ve to secure the long-term future of the Hydro. CHASE are working with key stakeholders, including the University of Chester, industry and learning and skills providers to make this poten%al a reality. 

Website: www.hydro-hub.uk 

## AHF Funding 

Project Viability Grant - £ 14,550 (2020) 

Project Development Grant - £39,960 (2022) 

## Delapré Abbey 

## Northampton, Northamptonshire, England 

## Delapré Abbey Preserva"on Trust 

Grade II*. 

## Historic Northampton site opens to the public 

Delapré Abbey is a historic house and park. The main house is largely 16[th] -century but incorporates the remains of the 12[th] -century Abbey of St Mary de la Pré. The site itself is important as the loca%on of a major ba'le in the Wars of the Roses, the Ba'le of Northampton (1460). During the Reforma%on, the Abbey was surrendered to the Crown and became a grand home. By the 1950s, the building was owned by Northampton Corpora%on, disused and under threat of demoli%on, but a#er a successful fundraising and poli%cal campaign, the building was saved and to the Northamptonshire Record O"ce relocated here. 

In 2006, Delapré Abbey Preserva%on Trust was formed to restore and open the Abbey to the public. A#er a period of restora%on, the Abbey began welcoming visitors in 2018. As well as the house itself, the site includes gardens, a park, and numerous outbuildings. The Trust runs a varied programme of well-being, educa%onal, and cultural events and ac%vi%es. 

The AHF awarded the organisa%on a 2020 grant from the Culture Recovery Fund supported the development of an op%ons appraisal and fundraising strategy for the disused Victorian stables to become a health and well-being hub. A Project Development Grant awarded in 2021 contributed towards a masterplan for the project, and in 2023, the AHF o!ered the Trust a loan of £200,000 to provide working capital to further develop the Stables project. 

## h'ps://delapreabbey.org/ 



## AHF Funding 

Culture Recovery Grant - £19,250 (2020) 

Project Development Grant - £8,000 (2021) 

Heritage Impact Fund Loan - £200,000 (2023) 

## The Old Cathedral School 

## Derry, Londonderry, Northern Ireland 

## In Your Space Circus 

## Grade B+ 

## Transforming a Victorian school building into a !agship circus arts venue for Derry 

Built in the Flemish Gothic style in 1891 to the designs of local architect, John Guy Ferguson, the former Cathedral Primary School is located in the Historic City Conserva%on Area and the Cathedral Quarter of Derry. With St Columb’s Cathedral as its striking backdrop, the School is one of just !ve buildings that exit directly onto the old city walls. Un%l the early 1990s, it provided a space for educa%on, social ac%vi%es and community life. However, a#er the school community merged with Carlisle Road and First Derry to form the Fountain Primary School, the building lost its use and fell into disrepair. 

In Your Space Circus (IYSC) is a circus school and performance company, which plays a key role in the cultural landscape of Derry city and the region. Both IYSC and St Columb’s Cathedral are keen to breathe life back into the former Cathedral School and regenerate it as a circus school and performance venue, o!ering a space in which young people, adults and ar%sts can learn, play and create. It is hoped that the historic building will become a "agship circus arts venue for Derry, with a key focus on circus educa%on, lifelong learning, good rela%ons, health and wellbeing, street theatre development and collabora%ve arts prac%ce. 

An AHF Project Viability Grant, awarded in 2022, funded a condi%ons survey and enabled IYSC to engage with an architect to carry out drawings and obtain overall construc%on costs. With the support of a development grant from the Na%onal Lo'ery Heritage Fund, IYSC is now working to develop organisa%onal capacity and ini%al plans needed to inform the restora%on. 

- In Your Space Circus New Home For IYSC!! (inyourspaceni.org) 

## AHF Funding 

Project Viability Grant - £8,040 (2022) 



## 30 Chapel Street 

## Bradford, West Yorkshire, England 

## Impact Hub Bradford 

Grade II 

Former merchant’s warehouse to be transformed into mul -use space for ar sts, makers and businesses 

Da%ng back to the 1870s, this former merchant’s warehouse is typical of the Li'le Germany Conserva%on Area in Bradford, which has the highest concentra%on of Grade II-listed buildings in the country. The ‘Li'le Germany’ area, named for the large number of European merchants who set up businesses there in Victorian period, is characterised by mul%-storey warehouses built in an Italianate Palazzo style during the tex%le boom between 1850-90. The Chapel Street warehouse spans four "oors, with an a'rac%ve frieze and cornice details, and retains original features such as open-plan "oor plates and basement openings. Having been vacant since the 2000s, repairs are now required to substructures and the roof, as well as internally. 

The project will bring the building back into use as a mul%-purpose facility for innovators, makers, ar%sts, designers, and community businesses. Impact Hub Bradford will provide co-working space, studios, performance facili%es, and a café, as well as space for retail and ar%sanal food o!erings, training and events. Alongside this, Impact Hub will run programmes of support, including workshops, mentoring, knowledge sharing and consultancy, to support the establishment and growth of local entrepreneurs and businesses. 

In 2018, Impact Hub Bradford was awarded an AHF Project Viability Grant to help fund a viability study. An AHF Project Development Grant, awarded in 2022, is being used towards professional fees, including architects, a surveyor, and a structural engineer, and will also fund community consulta%on to inform further development of the project. 

## h'ps://bradford.impacthub.net 

## AHF Funding 

Project Viability Grant - £7,500 (2018) 

Project Development Grant - £50,000 (2022) 

## Market House 

## Penzance, Cornwall, England 

## Penzance Regenera"on Company Limited 

## Grade I 

Landmark town centre building brought into public ownership 

Market House was completed in 1838 to the designs of Harris of Bristol. It is a large domed granite building; the dome, with its octagonal lantern, can be seen from miles around. Located on the town's main thoroughfare, Market Jew Street, the building re"ects Penzance's history as the market town for 



West Penwith (Market Jew is derived from the Cornish Margas Yow, meaning Thursday Market). The building’s size and grandeur re"ect a town which amassed signi!cant wealth expor%ng %n and copper, and which became an important trading port. In 1867, the council chambers moved to a new building, with the eastern por%on of the building being used variously to house the Penzance grammar school and then small retail units. This por%on of the building has now been vacant for over 10 years. In 1925, Lloyds moved into the west por%on of the building, where it remains today. The building was purchased by Penzance Regenera%on Company Limited (PZRC) in August 2022. 

PZRC was established to assist, promote, encourage, develop, and secure the regeneration of the social, physical and economic environment of Penzance and Newlyn. The initial activities of PZRC are to deliver the development of four specific projects, for which funding has been secured through Towns Deal and Future High Streets funds; the Market House is the landmark Towns Deal project. The project aims to renovate and bring the east side of Market House back into use, with the west occupied by Lloyds as a tenant. The first and upper floor will house a food hub accommodating three street food providers and 59 covers. The lower floor will house a town hub, including hotdesking and office space for a number of local organisations. 

In 2022, the AHF awarded PZRC a Project Development Grant, which will enable the group to develop the project to RIBA 2, thereby enabling the subsequent phases to be taken forward to the programme required by the Towns Deal spend deadline in 2026. 

## AHF Funding 

Project Development Grant - £30,000 (2022) 

## Dunoon Burgh Hall 

## Dunoon, Argyll & Bute 

## Dunoon Burgh Hall Trust 

## Category B 

## Creative arts hub in historic town hall 

Opened in 1874 to celebrate the conferring of Burgh status on the town, Dunoon Burgh Hall was built to provide the local community with a public hall, municipal offices, and the first theatre in Argyll. Over the last 150 years this Category B-listed Scottish Baronial landmark has hosted public dances, council meetings and many other local events. 

By the early 2000s, however, the Hall was at risk of being demolished, and the community came together to rescue it and take ownership. The first phase of works were urgent repairs that allowed the building to reopen for community use, while following phases gradually brought vacant spaces back into action to create a multi-functional arts hub. The Hall now provides space for live performances, community events, workshops, and artists’ talks, with an exhibition gallery and popular café. The venue is attracting touring companies and offers an annual programme of events, including dance and drama opportunities from professional theatre companies, as well as a learning programme for children and young people. 



The AHF has supported transformation of Dunoon Burgh Hall since 2010, initially through an Historic Environment Scotland (HES)-supported Project Development Grant. This was later followed by loan investment, which provided working capital, along with additional funding from the National Lottery Heritage Fund, Creative Scotland and HES, towards the £3.5m refurbishment – which together delivered enhanced facilities, such as an improved café/bar and new office accommodation. More recently, Dunoon Burgh Hall Trust have also been receiving help from Replan, the AHF’s post-investment capacity-building programme, towards business planning and outreach. In 2022, the AHF also supported the project through its William Grant Foundation Tailored Support Fund to help towards the costs of some emergency repairs and remedial capital works. 

Through the restoration of the building, Dunoon Burgh Hall Trust has created a thriving community arts hub. Over the last few years, the Trust has delivered a varied and diverse programme of activities and events, as restrictions allowed, and has consequently been able to repay its AHF loan investment. These funds can now be recycled to support more Scottish projects in achieving the same fantastic communityled regeneration and success as the Dunoon Burgh Hall Trust. 

## https://www.dunoonburghhall.org.uk/ 

## AHF Funding 

Project Development Grant - £23,000 (2010) 

Endowment Fund Loan - £175,000 (2014) 

WGF Tailored Support Fund Grant - £23,000 (2022) 

## 11 High Baxter Street 

## Bury St Edmunds, Su!olk, England 

## Bury St Edmunds Town Trust 

## Grade II 

## Bringing a grade II-listed town house back into residen al use. 

The house on High Baxter Street, located within the historic Town Centre Conserva%on Area of Bury St Edmunds, is a singular survivor of what was once a whole row of 15[th] - to 18[th] -century town houses along High Baxter Street. By the mid-twen%eth century, only number eleven remained. Number 11 was bought in the 1970s to be used as sta! accommoda%on by the Su!olk Hotel, but a modernisa%on covered up much of its historic fabric. By the 2010s, the house was in a very poor state of repair. 

Bury St Edmunds Town Trust, a longstanding building preserva%on trust, purchased the badly dilapidated house in 2019, realising its signi!cance as probably the last remaining unrestored building of medieval origin in the town centre. The Trust has undertaken numerous projects around the town to deliver preserva%on of heritage buildings for the bene!t of the local area and the community. For this project, the Trust worked to bring 11 High Baxter Street back into use, construc%ng a new brick and %mber rear extension to add addi%onal space, and reducing its carbon footprint with the installa%on of an air-source heat pump and solar panels. Conserva%on work and tradi%onal cra# skills have preserved exis%ng joinery where possible, including windows. Addi%onally, natural breathable material has been used for 



insula%on, improving the thermal e"ciency of the house. Lime plaster and renders have been returned throughout the building. 

The 11 High Baxter Street project also o!ered an opportunity to con%nue the Trust’s exis%ng partnership with a local Further Educa%on college, delivering on-site opportuni%es for architecture and construc%on students. Despite the restric%ons during the covid pandemic, the Trust con%nued to work with the college and held a number of public open days and lectures while works were underway on site. A 2018 Project Viability Grant enabled the Trust to explore the condi%on of the building and the future op%ons for its use. Through subsequent Heritage Impact Fund loan investment, the Trust was able to undertake the full restora%on project. Works to the house were completed in early 2023, and the Trust has now been able to repay the AHF loan investment, pu(ng the house up for sale as a residen%al property for a lucky future owner. 

## Bury St Edmunds Town Trust 

## AHF Funding 

Project Viability Grant - £4,076 (2018) 

Heritage Impact Fund Loan - £230,000 (2020) 

## Equatorial Observatory 

## Penllergare, Swansea, Wales 

## The Penllergare Trust 

## Grade II* 

## New future for historic astronomical observatory 

Constructed in 1846 by John Dillwyn Llewelyn, a pioneering photographer with interests in science and astronomy, the Equatorial Observatory is both a Grade II*-listed building and a scheduled ancient monument. Situated in Penllergare Valley Woods, the building consists of two rooms – the observatory and laboratory. The observatory is a cylindrical tower comprising a circular stone-built telescope chamber while the adjoining laboratory is a single-storey rectangular structure with a vaulted roof, interior terraco'a block walls and a !replace. In 1855, one of the earliest photographs of the moon was taken from the observatory by Llewelyn and his daughter, Thereza. 

The Penllergare Trust exists to conserve, restore and maintain the historic and signi!cant Penllergare Valley Woods. Working in partnership with Dark Sky Wales, the Trust plans to fully restore the Equatorial Observatory and create a planetarium in the tower. Alongside interac%ve displays highligh%ng the history of the building and its role in early photography, a programme of ac%vi%es will be curated and delivered to schools, young people, and the growing astro-tourism sector. Educa%onal visits to the observatory will link to the new na%onal curriculum in Wales, with a focus on local history and STEM subjects, including space. 

The AHF has supported The Penllergare Trust with two Project Development Grants, awarded in 2022 and 2023 respec%vely. These contributed towards sta! costs to coordinate the development phase of the project and helped the Trust to commission a team of professionals to complete inves%ga%ve surveys and a business plan. 



- Penllergare Observatory Penllergare Valley Woods 

AHF Funding 

Project Development Grant - £18,248 (2022) Project Development Grant - £19,910 (2023) 



## 6 Financial review 

## a. Financial overview 

2022/23 was the !nal year of the Transforming Places through Heritage (TPtH) programme in England. As the programme was structured to wind down, the budget was only £2m compared with £4.8m in the previous year, and this was the main factor driving the overall 42% reduc%on in income compared with 2021/22. In the rest of the UK, we secured and delivered funding for our core programmes in Scotland, Wales, and Northern Ireland, at a similar level to the previous year. 

We used a broader range of short-term deposits and investments for any cash not immediately required and this, together with the higher interest rates and bond yields, led to a 71% rise in investment income this year. Interest from our disbursed loans, our primary source of unrestricted income, also increased 13% this year. While our managed investment por$olio did realise some gains in 22/23, these were outstripped by unrealised losses in the year; we hope to recoup these losses in the future. 

The tapering ac%vity towards the end of the TPtH programme also meant a £2.86m reduc%on in grant making expenditure, which was the primary reason for the 38% reduc%on overall in charitable ac%vi%es expenditure compared with 2021/22.  However, within this overall reduc%on there was increased spend in loan-related areas, due to a net increase in the bad debt provision and £70,000 of pro bono legal fees provided to the AHF in rela%on to the Heritage Impact Fund, the la'er being included under both income and expenditure. 

There were also fewer, smaller, HIF loans disbursed this year compared with several high-value HIF loans disbursed in 21/22. Demand, however, remained strong, with just over £2m in HIF loan commitments as at the year-end (compared with £2.8m in 2022). Endowment lending activity was broadly consistent with last year with year-end commitments of £1.3m (2022: £2.1m). 

The difficult economic climate of 2022/23 also impacted our staff, and we took measures to help mitigate the cost-of-living challenges they faced. In the coming year, we will continue to manage our overheads carefully and focus on generating sufficient unrestricted income to support our core costs, which includes several staff who are not funded by external grants. 

## Income 

## Fig 9. Total income 


**----- Start of picture text -----**<br>
Total Income in 2022/23: £4.1m<br>20%<br>Restricted<br>80% Unrestricted<br>**----- End of picture text -----**<br>




Total income for the year ended 31 March 2023 was £4.1m (2022: £7.1m). This represented a decrease compared to the previous year, which was fully anticipated and due to significantly less funding being allocated to the final year of the TPtH programme. 

The £2m TPtH funding we received this year (2022: £4.8m) from the Department for Digital, Culture, Media and Sport (via Historic England) enabled the continued delivery of a wide range of grants and social investment, alongside capacity-building activities and support from our team of Programme Officers and Consultant Project Advisors. 

Additionally, £0.5m (2022: £0.5m) was received from Historic Environment Scotland and Scotland grantmaking was also further supported by £107,000 from the William Grant Foundation’s Tailored Support Fund. 

The AHF Grant programmes and Support Officers in Wales and Northern Ireland were funded by £0.7m (2022: £0.7m) from Cadw, the Historic Environment Division of the Department for Communities in Northern Ireland, the Garfield Weston Foundation, and The Pilgrim Trust. 

Unrestricted income was £143,000 higher than 21/22 due to several factors, including improved returns on our investments and cash deposits, and the £70,000 in pro bono legal services provided to the Heritage Impact Fund (HIF), which are included as a corporate donation. 

## Expenditure 

Total expenditure on charitable activities and raising funds was £4.2m (2022: £6.9m). Again, this decrease was expected due to the reduction in grant-making activity in the final year of the TPtH programme. Grant making outside England continued at a similar level to 21/22 with Northern Ireland seeing increased grant offers compared with the previous year. 

## Fig 10. Unrestricted fund expenditure 


**----- Start of picture text -----**<br>
Unrestricted fund expenditure<br>Impact<br>reporting,  Raising Funds<br>evaluation and  5%<br>communication<br>14%<br>Capacity  Lending costs<br>building £0.74m 38%<br>20%<br>Grant making<br>23%<br>**----- End of picture text -----**<br>


Unrestricted expenditure on charitable activities increased overall to £0.7m (2022: £0.6m). Several factors contributed to this increase, including a rise in staff and related costs as additional pay awards 



were made during the year, and the pro bono HIF legal fees, which are included under other loan-related activities. 

The AHF once again contributed £5,000 (2022: £5,000) towards the Heritage Trust Network’s conference. 

Fig 11. Unrestricted fund income and expenditure 


**----- Start of picture text -----**<br>
Unrestricted Fund<br> £900,000<br> £800,000<br> £700,000<br> £600,000<br> £500,000<br> £400,000<br> £300,000<br> £200,000<br> £100,000<br> £-<br>2021/22 2022/23<br>Income Expenditure<br>**----- End of picture text -----**<br>


## Funds 

The AHF’s total charitable funds reduced by £0.3m (2022: £0.3m increase) to £17.3m (2022: £17.6m) of which £16.6m cons%tuted the AHF’s lending resources (2022: £17m). 

## Fig 12. AHF Endowment funds for lending 


**----- Start of picture text -----**<br>
AHF Endowment funds for lending<br>Wales<br>UK-wide<br>£0.44 m<br>£0.55 m<br>£9.36m<br>Total<br>England<br>Scotland £5.57 m<br>£2.80 m<br>**----- End of picture text -----**<br>


The Endowment Fund increased by £34,000 (2022: £1.9m decrease); this figure comprises a £150,000 benefit due to the reduction in the Fund’s bad debt provision, which was eroded by £117,000 of investment losses. 

The restricted fund decreased by £429,000 (2022: £2.15m increase, including £2m fund reclassification) mostly due to the £358,000 increase in the Heritage Impact Fund (HIF) bad debt provision and £78,000 



investment losses, offset by some funding carried forward for spending in future years. Of the £5.8m held at the year-end, £5.7m represents the cumulative HIF lending funds contributed by our external partners. 

The unrestricted fund achieved a surplus of £93,000 (2022: £81,000) before investment losses of £23,000 (2022: £33,000). 

## b. Remunera"on 

## Pay 

The AHF believes in recruiting high-calibre people. We are also committed to rewarding staff fairly for the jobs that they do and fostering a positive working environment. We believe our salaries and our terms and conditions reflect this. 

Salaries, including pay awards, are set, and reviewed annually by the AHF’s Board of Trustees. The review takes account of a number of factors when determining the recommended pay award for staff. 

In April 2022, all employees were awarded a 2.7% pay increase. In October 2022, in recognition of the increased cost of living and following a review of the approaches of other organisations, all employees were awarded a further 2.3% pay increase and, also, a one-off payment of £500 was awarded to all staff except the Senior Management Team. We also introduced annual homeworking payments of £312 for all home-based and hybrid employees. 

During the year, the highest paid member of staff was in the £80,000 - £90,000 band (2022: £80,000 - £90,000 band). The ratio between the highest paid salary and the median AHF salary of £38,010 (2022: £36,200) was 2.4 (2022: 2.4). 

## Pensions 

The Charity offers employees the opportunity to join its discretionary retirement savings scheme, a Group Personal Pension Plan provided and administered by The Prudential Assurance Company Ltd on behalf of the Architectural Heritage Fund. Contributions made by the AHF to the scheme in the year totalled £64,164 (2022: £62,061). 

## c. Reserves 

The general fund constitutes the free reserves of the charity from which running costs have to be paid. To meet these needs, the Trustees aim to hold reserves of not less than one year’s expenditure, based on the average annual expenditure from unrestricted funds over the previous 3 years.  Compliance with the reserves policy was met by a year-end transfer of £34,737 from the general fund to the designated lending fund (2022: £49,545). 

## d. Investment policy 

Money not on loan is invested with an external Investment Fund Manager, Rathbone Greenbank Investments, in accordance with the Board’s Investment Policy, or kept on deposit on terms consistent with financial prudence and ready accessibility. Net losses on investments across all funds were £0.2 million (2022: £0.1 million gains) and net income from investments and bank deposits for the year amounted to £144,230 (2022: £84,192). 



## e. Going concern 

The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. 

As part of the going concern review, the Trustees reviewed detailed budgets and cash flow forecasts to 31 March 2025, taking into account the current challenges of rising interest rates, inflation, and energy costs, all of which will affect the organisations we support. 

These factors, along with the legacy effects of the pandemic have increased the risk of bad debts from borrowers and delayed fundraising plans, and continued economic pressures are expected to exacerbate these risks further, at least in the short to medium term; however, based on these forecasts and the level of reserves available, the Trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements as they do not consider there to be any material uncertainties about the charity's ability to continue. 



7 Plans for the future 

In April 2023, we launched our new AHF Strategy 2023-28. Our most immediate priorities in the delivery of the new Strategy will be: 

- The development of a new Evaluation Plan and KPIs to support the delivery of the Strategy. 

- Delivering on fundraising priorities, including securing further grant funding in England and social investment for the Heritage Impact Fund. 

- Announcement of the new cohort of Heritage Development Trusts. 

- Delivery of Year 1 support to the Thrive Fund and further work on energy resilience funding. 

Recruitment of new trustees to replace planned retirements. 



## 8 Governance statement 

## a. The AHF’s charitable objectives 

The Memorandum of Associa%on de!nes the AHF’s charitable objects as: 

- to promote the permanent preservation for the benefit of the public generally of buildings monuments or other edifices or structures of whatsoever kind and whether permanent or attaching to land or not and wheresoever in the United Kingdom situate of particular beauty or historical architectural or constructional interest; 

- to protect and conserve or promote the protection and conservation of the character and heritage of the cities towns and villages in and around which such buildings monuments or other edifices or structures exist; 

- to advance public education of and interest in the history of the United Kingdom and its people 

- and thereby to promote public taste and education in and concerning the conservation of its creative heritage and the encouragement of aesthetic standards attaching to its contemporary environment. 

## b. The AHF’s public benefit 

The Trustees confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit. As a UK-wide charity enabling not-for-private-profit organisations to save and preserve the nation’s built heritage – with capacity-building programmes as well as with financial support – the AHF’s public impact is significant both locally and nationally. 

## c. Our values 

As part of the development of our new Strategy for 2023-28, the Board agreed a new set of organisa%onal values: 

## Enabling 

We help catalyse new approaches to the adap%on, management and ownership of historic buildings. 

## Collabora"ve 

We work in partnership, helping broker new rela%onships and are open with our thinking and learning. 

## Expert 

We are specialists in the field of community-led approaches to the regeneration of historic buildings. 

## Grounded 

We are a flexible and pragmatic funder, proportionate in our approach, and empathetic to the needs of small organisations. 

## Inclusive 

We strive for the equitable distribution of our funding and advice and work closely with organisations and communities to overcome barriers to gaining our support. 



## d. Equality, diversity and inclusion (EDI) 

We describe in the report against our objectives, under Objective 3, some of what we have been doing to deliver on our EDI commitments. This year we also signed up to the Diversity Forum’s Manifesto Commitments. The Diversity Forum has been created by the social investment sector to drive inclusive social investment in the UK, through the convening of sector-wide groups, commissioning research, and knowledge sharing. 

A significant element of our interim strategy evaluation looked at how we were delivering against our EDI commitments and what further work or amendments to our approach might be needed. The consultants undertook in-depth research into a number of deprived areas and with some diverse-led organisations. Their findings included: 

- AHF’s funding was successful in attracting applications from areas with higher deprivation. The research evidenced some cold-spot areas where more might need to be done to help organisations access funding and also to undertake further outreach in areas to specific organisations. 

- The research confirmed we needed to improve our data to better understand the diversity of organisations successfully and unsuccessfully applying. Better use of mapping tools was considered an important step in addressing this priority. 

- For some organisations, capacity was considered the biggest barrier to successfully apply to the AHF and that we need to consider how we can assist organisations with this challenge. 

- Continuing to focus on representation at Board and staff level will be important to achieving lasting equality. 

- Continuing to work with partners to address the challenges and to promote funding opportunities was a further recommendation. 

Actions to address these findings have been included in the Strategy 2023-28 and the organisation’s Annual Plan for 2023/24. 

## e. Principal risks and uncertainties 

The Board is responsible for ensuring that there are effective and adequate risk management and internal control systems in place to manage the major risks to which the AHF is exposed. Our Trustees discharge this responsibility through their review of the effectiveness of the AHF’s risk management framework. This framework is designed to support informed decision-making regarding the risks that affect the AHF’s performance and its ability to achieve its objectives. The framework also provides for a consistent approach to identifying, assessing and dealing with the risks facing the AHF so as to ensure that they do not exceed the level of risk the Board is willing to assume. 

The AHF operates in a risk environment that is complex and which includes offering loan finance to organisations that cannot raise funds from elsewhere. Therefore, the framework is designed to manage, rather than to eliminate, the risks to the AHF’s objectives and to provide reasonable, but not absolute, assurance against material misstatement or loss. We aim to manage risk by anticipation and avoidance, rather than by handling the consequence after the risk has crystallised. 

The total value of the Heritage Impact Fund and AHF Endowment Fund can be affected by the failure of some of the AHF’s borrowers to repay their loan in part or in full. Bad debts are to be expected given the risks involved in the AHF’s loan investments, although the AHF seeks to minimise its potential exposure to loan losses as far as possible through its assessment and loan monitoring processes. 



Provision for bad debt is made in the AHF’s forward financial planning, and one of our objectives is to replenish and increase the value of the endowment fund through fundraising. 

It should be noted that processes in place regarding risk management and internal control include the following: 

- A comprehensive risk management framework – including a risk management policy and guidance and risk register – which addresses the Charity Commission’s guidance. This consists of different stages, from understanding the risk environment through risk identification, analysis and evaluation to risk treatment. 

- The maintenance of a risk register, which is reviewed regularly by the Senior Management Team and twice a year by the Audit & Risk Committee. The risk-management strategy forms part of the planning process, against which the Board reviews progress formally every year. The organisation also maintains risk registers for two of the most significant and AHF programmes, the HIF and TPtH (the organisation stopped maintaining a risk register on the latter at the end of the programme in March 2023). 

- As well as the risk register, the organisation also undertakes a PESTLE (Political, Economic, Social, Technological, Legal and Economic) analysis of the longer-term risks facing the organisation, to enable the Audit and Risk Committee and the Trustees to foresee and assess risk through a wider contextual framework. 

The Board reviews the key risks following the Audit and Risk Committee’s bi-annual review. 

Fig 13: Top risks currently facing the AHF 

|Risk Area|Risk Description|Risk Management|
|---|---|---|
|External|In the short to medium term our|Close contact with new and existing|
||work does not meet the needs of|grant funders is being maintained to|
||our existing or prospective|ascertain new opportunities.|
||funders; or the general funding|New grant funding has been agreed in|
||environment becomes|England but at a much lower level|
||constrained. Our grant income|than that of the last three years.|
||decreases.|Additional grant funding in England is|
|||beingsought.|
|External|Rising inflation, slowing growth|An assessment of the internal impacts|
||and the ‘cost of living’ crisis|of inflation has been undertaken and|
||significantly exacerbates the top|reviewed by the Audit and Risk|
||risks|Committee.|
|||We remain in close contact with|
|||clients, but particularly borrowers, to|
|||understand the impact of inflation on|
|||their organisation’s and theirprojects.|
|Operational|Borrowers default on loans and|Post Covid, cost of living and inflation|
||repayment of capital and interest|related challenges remain a significant|
||decreases significantly.|challenge for many borrowers. Close|
||Endowment and HIF eroded,|monitoring of pricing and project|
||rendering AHF's lending capacity|progress continues, and bad debt|
||diminished.|provisioning is being made where|
|||required.|





|Operational|Our services & products do not|As well as grant funding, new lending|
|---|---|---|
||meet the needs of our existing or|finance has been pursued in recent|
||prospective clients. Lack of|years but affected by BoE interest rate|
||funding to award, both grants and|rises. Negotiations re further debt|
||loans.|finance for the HIF have been paused|
|||but two new partner funds have been|
|||launched in the meantime.|
|Operational|We do not recruit or retain staff or|<br>The new Director of Investment has|
||consultants with sufficient|quickly become an effective member of|
||knowledge, skills and enthusiasm|the<br>SMT.<br>The<br>new<br>England|
||to undertake our operations|Programmes<br>Team<br>has<br>also|
||effectively and our services are of|transitioned into their new set up.|
||poor quality.||
|||We remain very aware of the|
|||competition for high quality staff and|
|||line managers SMT and Board are|
|||focused on sustaining the environment|
|||and<br>policies<br>that<br>support<br>staff|
|||retention.|
||||



The Trustees are sa%s!ed that appropriate systems are in place to manage risk. 

## f. Structure, governance and management 

The Architectural Heritage Fund (AHF) is incorporated as a company limited by guarantee (company number 01150304), is registered as a charity in England and Wales (number 266780) and in Scotland (number SC043840) and is governed by its memorandum and articles of association (most recently updated 30 January 2013). 

The AHF is registered with the Financial Conduct Authority for the purposes of money laundering regulation and is recorded on the Financial Services Register (number 707421). 

The registered office is 3 Spital Yard, Spital Square, London E1 6AQ. 

## g. Board of Trustees 

The governing body of the AHF is the Board of Trustees, whose members have legal responsibility as directors of the AHF as a company and as Trustees of the AHF as a charity. The Board is responsible for every aspect of the AHF's business and governance, with day-to-day management being delegated to the AHF’s executive. Board members usually serve for renewable terms of three years. Every member of the Board is also a member of the AHF as a company. The AHF has no other members. 

The Board comprises fourteen appointed Trustees, including the Chair, who contribute a diverse range of expertise and who represent the whole of the UK. 

The AHF recognises that an effective Board of Trustees is essential if the charity is to be effective in achieving its objects. The Board must seek to represent the people with whom the charity works and must have available to it all of the knowledge and skills required to run the charity. During the year the trustees reviewed the Charity Governance Code and identified several actions that the organisation is taking forward in next year’s annual plan. This includes the development of new Equality, Diversity and Inclusion commitments and an action plan to support this key area of work. 



Some members of the Board are also Directors or Trustees of, or consultants to, organisations which apply for and receive financial assistance from the AHF, or with which the AHF has an arm’s-length business relationship. In this event the member or members are required to disclose the interest at the meeting at which the application is considered, or the business is discussed, thereby taking no part in the Board's decision (in accordance with the AHF’s Conflict of Interests Policy). A register of Trustees’ interests is maintained and updated regularly. 

The Board meets at least five times a year. 

## h. Committees 

There are currently five sub-committees, the Audit & Risk Committee, the Credit Panel, the Heritage Impact Fund Credit Panel, the Grants Panel and the Nominations Committee. 

## Audit and Risk Commi ee 

Composed of up to four Board members, the duty of the Audit and Risk Committee is to consider and report to the Board on matters of financial control and performance, and to help Trustees and staff identify and assess risks to the organisation. The Audit and Risk Committee met three times during the year. 

## Nomina ons Commi ee 

The Nominations Committee is responsible for establishing protocols for the appointment of Trustees and Chair, for organising the selection criteria and running the recruitment process and recommendations for appointment to the Board. 

## Credit Panel 

The Credit Panel makes decisions on loans below £500,000 and makes recommendations to the Board on loan applications above that threshold. The Panel currently comprises five AHF Board members and the CEO. The Panel met five times during the year. 

## The Heritage Impact Fund Credit Panel 

The Heritage Impact Fund (HIF) Credit Panel was established in March 2018 to make decisions on HIF loans below £500,000 and to make recommendations to the Board on applications above that threshold. The HIF Credit Panel currently comprises five AHF Board members and the CEO. There is an Observer to the Panel, Hannah Stranger Jones, an independent consultant and formerly Head of Research and Impact for UnLtd, who advises on social impact measurement. Historic England and the National Lottery Heritage Fund are also observers to the Panel. 

## Grants Panel 

The Panel comprises six Trustees representing England, Northern Ireland, Scotland and Wales, and the Chief Executive. The Director of Programmes is its Secretary. The Panel meets quarterly. Terms of appointment are for three years but are synchronised with the serving terms of Trustee appointments. The Chair revolves around the four Trustees on a bi-annual basis. The Panel met four times during the year. 



Trustees serving during the year and since the year end were: 

Fig 14: Trustees serving during the year and since the year end 

|Board||Board Committees|Board Committees|Board Committees|Board Committees|Board Committees|
|---|---|---|---|---|---|---|
|Trustees|Year of<br>appointment|Audit &<br>Risk|Credit<br>Panel|HIF<br>Credit<br>Panel|Grants<br>Panel|Nominations<br>Committee|
|Ros Kerslake (Chair)|2022|||||*|
|Myra Barnes|2013|*|*|*||*|
|James Bowdidge|2019||*|*|||
|Ade Alao|2018||*|*||*|
|Carole-Anne Davies<br>(resigned August 2022)|2020||||*||
|Graham Fisher<br>(Chair of Grants Panel)|2019||||*||
|David Hunter<br>(Chair of Credit Panel)|2017||*|*|||
|Roy Hodson<br>(Chair of Audit & Risk<br>Committee)|2016|*|||||
|Karen Latimer|2018||||*|*|
|Menna Jones|2023||||*||
|Elizabeth Peace (former<br>Chair, resigned September<br>2022)|2014||||||
|Greg Pickup|2020||||*||
|Suzanne Snowden|2017|*||||*|
|Neal Shasore|2020||||||
|Esther Robinson-Wild|2021|*|*|*|||
|Audrey Carlin|2021||||*||



## Trustees 

## Ros Kerslake CBE (Chair) 

Ros Kerslake was Chief Executive of the National Lottery Heritage Fund from 2016 to 2021, where she led a UK-wide team of 300 staff, responsible for the distribution of up to £400 million per annum. Her earlier roles include Chief Executive at The Prince’s Regeneration Trust, RegenCo Sandwell and Directorlevel roles at Railtrack, Booker PLC, and Gulf Oil, a UK subsidiary of Chevron Corporation. 

Ros is currently Chair of Leeds Castle Foundation, a trustee of Re-form Heritage, a member of the Community and Voluntary Services Honours Advisory Committee and a Group Board member of Sanctuary Group. Her previous non-executive roles include Senior Independent Director and Chair of the Remuneration Committee at U+I PLC, a regeneration-based property developer, Quintain Estates and Development PLC, Black Country Housing Association, and Thurrock Thames Gateway Development 



Corporation. Ros is a qualified solicitor and holds an MBA. Ros was awarded an OBE in the 2015 and a CBE in 2020 for services to heritage and holds honorary degrees from Keele and Staffordshire Universities. 

## Ade Alao 

Ade Alao leads on major real estate capital projects for the Department for Work & Pensions.  He previously worked for the Bri%sh Council and in local government with considerable exper%se in project delivery, regenera%on, housing and local economic development. He is on the board of Incommuni%es and previously held Non-Execu%ve Director appointments as Chair of Northwards Housing and ViceChair of Salix Homes – both major housing associa%ons in Greater Manchester. 

## Myra Barnes 

Myra Barnes has forty years’ experience in property and development. She has been involved in di!erent public and private sector redevelopments within the UK. She has also worked on many large masterplans and regenera%on projects. She is a Chartered Town Planner currently working as a partner in a town planning consultancy. Myra was previously Head of Planning for Na%onal Grid Property and worked at Olympia & York and London Docklands Development Corpora%on. 

## James Bowdidge 

James was principal of a Central London commercial and mixed-use property development and investment business, The Property Merchant Group, which undertook a wide range of projects in Central London, of which the £50 million refurbishment and recon!gura%on of Sir Edwin Lutyens’s One Finsbury Circus was a par%cular highlight. In a voluntary capacity, he is a Vice-President of the Game and Wildlife Conserva%on Trust and a former director of Theatre Delicatessen, an important meanwhile occupier of major buildings, suppor%ng over 11,000 ar%sts. 

## Audrey Carlin 

Audrey Carlin is an experienced leader in the delivery of heritage and regenera%on projects. A Town Planner by profession, she has over 31 years of professional experience, delivering over £50m of regenera%on focused ac%vity in Scotland in this %me, while working with a number of local authori%es then with two of Scotland’s !rst Urban Regenera%on Companies – Clydebank Rebuilt and Clyde Gateway. Audrey currently leads Wasps, Scotland’s largest provider of a!ordable high-quality studio, o"ce and working space to the crea%ve sector, as Chief Execu%ve O"cer. Wasps supports 1000 ar%sts, crea%ve industries and cultural tenants in 20 loca%ons across Scotland, from the ci%es, rural areas, and Islands. Audrey is an ac%ve supporter of the arts and was appointed to the Board of the Na%onal Galleries of Scotland, in 2018. Audrey is also Chair of the Major Capital Projects Commi'ee of this Board, overseeing na%onally signi!cant development projects. 

## Graham Fisher (Chair of the Grants Panel) 

Graham Fisher is Chief Execu%ve of Letchworth Garden City Heritage Founda%on, a place-based founda%on that is the custodian of Letchworth Garden City, the world’s !rst Garden City. Prior to joining the Founda%on, Graham was Chief Execu%ve of Toynbee Hall an an%-poverty charity based in the East End. Graham’s career combines leadership roles in the voluntary sector, local and na%onal Government, including as Chief Execu%ve of MLA London, the strategic regional development agency for museums, libraries and archives and Director of London Libraries Development Agency, the strategic regional development agency for public libraries. 



## Roy Hodson (Chair of Audit & Risk Commi'ee) 

Roy Hodson joined the Board in April 2016. He brings considerable !nancial exper%se to the Board having been a partner at PwC for 26 years, including serving clients in the property, construc%on and !nancial services sectors. Roy is a Chartered Accountant (ICAEW) and also Director of a number of commercial companies. He mentors at the School for Social Entrepreneurs and the University of Manchester. 

## David Hunter (Chair of the Credit Panel) 

David Hunter is a professional Non-execu%ve Director and Strategic Adviser focused principally on UK and Interna%onal real estate. He is currently Chairman of two UK REITs. David is an Honorary Professor of Real Estate at Heriot-Wa' University and is Honorary Swedish Consul to Glasgow. 

## Menna Jones 

Menna Jones has worked in the social enterprise sector for the last 30 years and was Chief Execu%ve of Antur Waunfawr, a social enterprise in North West Wales for 27 years un%l joining Bardsey Island Trust in her current role as Development Manager in 2022. She previously worked as Development Coordinator for Cymdeithas Tai Eryri housing associa%on and for Dafydd Wigley, MP for Caernarfonshire. She has been involved with the social enterprise and community sector in Wales at all levels including voluntary roles, spearheading heritage, recycling and care projects, and contribu%ng to Social Enterprise Strategies in Wales. Menna is passionate about the language, culture, environment and heritage in Wales, and is a Board member of Yr Urdd (Na%onal Youth Organisa%on of Wales), and  Canolfan Iaith Nangwrtheyrn (Welsh Language Centre). 

## Karen La"mer OBE 

Karen La%mer is a library buildings consultant and Chief Adviser to UK Designing Libraries. In parallel with her professional career, she has over 35 years’ experience in the architectural heritage sector in Northern Ireland and is currently on the Board of Hearth Historic Buildings Trust, The Boomhall Trust and the Irish Architectural Archive (Chair of the Collec%ons Commi'ee), and is Publica%ons Editor for the Ulster Architectural Heritage Society. 

## Suzanne Snowden 

Suzanne Snowden is a Director at Message Consul%ng Limited, a marke%ng and communica%ons consultancy. Previously Director of PwC Global Thought Leadership programme, where she led the !rm’s research, marke%ng and insights genera%on ac%vi%es, Suzanne brings experience advising on brand posi%oning, thought leadership and social media marke%ng. 

## Neal Shasore 

Neal Shasore is an architectural historian and Head of School at the London School of Architecture, based in Hackney, East London. He is passionate about equality, diversity and inclusion in the built environment. He has published on architectural culture in early twen%eth Britain and is also a trustee of the Twen%eth Century (C20) Society. 

## Greg Pickup 

Greg Pickup is Chief Execu%ve of the Churches Conserva%on Trust, a charity charged with the care of over 350 historic churches and dedicated to using these to support and regenerate communi%es. Previously he was the CEO of Heritage Lincolnshire, a heritage development trust with whom AHF has worked on a number of projects. Greg has also worked for the Na%onal Lo'ery Heritage Fund, as Fund Manager for the £20m Derby Enterprise Growth Fund, as well as on a range of projects during a period running his own consultancy, including Townscape Heritage and LGBTQ history projects. In addi%on to 



serving on the board of AHF he is a former Trustee of the Arkwright Society, custodians of Richard Arkwright's Cromford Mills complex in the heart of Derbyshire's Derwent Valley Mills World Heritage Site. 

## Esther Robinson Wild 

Esther Robinson Wild is a Historic Environment Consultant with extensive experience of working on a wide range of projects in all areas of the historic environment including listed buildings, historic buildings and places, conserva%on areas and archaeology. She has a background in !nance and real estate having worked for over ten years as an Analyst in various City of London-based !nancial ins%tu%ons. She is a member of the Board of Directors of the Chartered Ins%tute for Archaeologists (CIfA) and a Trustee of the Founda%on for Jewish Heritage. Esther has a MA in the Archaeology of Buildings from the University of York. She is also a Fellow of the Society of An%quaries of London. 

## i. Executive 

The organisa%on primarily comprises two teams: Programmes and Impact, and Investment. The AHF Programmes Team runs our advice service and grants programmes, evalua%on and communica%ons ac%vi%es. The AHF Investment Team manages our lending func%on. Both teams support the Chief Execu%ve in raising new funding. 

The Senior Management Team comprises the Chief Execu%ve, the Director of Finance, the Director of Programmes and Director of Investment. 

## j. The AHF’s employees 

Ma'hew Mckeague – CEO 

Oliver Brodrick-Ward – Execu%ve Assistant and Team Administrator 

## Finance Team 

Fiona Hollands – Director of Finance 

Umedha de Zoysa – Finance O"cer 

## Investment Team 

Asha Karbhari – Director of Investment 

Madeleine Blyth – Investment Manager 

Andrew Hitches-Davies – Investment Manager 

Emily Greenaway – Investment O"cer 

## Grants Team 

Kelcey Wilson-Lee – Director of Programmes 

Gavin Richards – Heritage Development Trusts Programme Manager 

Laura Williams – Development Manager (England and Lead East of England) 

Gordon Barr – Development Manager (Scotland) 



Jo Robertson – Support O"cer (Scotland) 

Adam Hitchings – Development Manager (Wales) 

Rita Harkin – Development Manager (Northern Ireland) 

Josephine Brown - Programme O"cer (South West England) 

Louise Stewart – Programme O"cer (London and South East England) 

Mandy Hall – Programme O"cer (Midlands) 

Annoushka Deighton – Programme O"cer (North) 

## Communica"ons 

Tia Jackson – Communica%ons O"cer 

## k. Professional Advisers: 

Solicitors: 

- Thorntons, Citypoint, 3rd Floor, 65 Haymarket Terrace, Edinburgh EH12 5HD Bates Wells 10 Queen Street Place, London EC4R 1BE 

- Brechin Tindal Oatts, 48 St Vincent Street, Glasgow G2 5H 

- Morton Fraser, Quartermile Two, 2 Lister Square, Edinburgh EH3 9GL Farrer and Co LLP, 66 Lincoln's Inn Fields, London WC2A 3LH 

- Cleaver Fulton Rankin, 50 Bedford Street, Belfast, BT2 7FW TLT LLP, 20 Gresham St, London EC2V 7JE 

## Auditors: 

Moore Kingston Smith LLP, 9 Appold Street, London EC2A 2AP 

Insolvency Advisor: 

BM Advisory LLP, 82 St John Street, London EC1M 4JN 

Bankers: 

Barclays Bank plc, 167 High Street, Bromley BR1 1NL 

Accounts were also held with Na%onal Westminster Bank plc un%l 15 December 2021 

Investment Manager 

Rathbone Greenbank Investments, 8 Finsbury Circus, EC2M 7AZ 



## 9 Benefactors and Friends 

The AHF enjoys the support of a steadfast group of major ins%tu%onal funders, as well as like-minded individuals who support our core work. Together, these Benefactors and Friends enable us to work with communi%es across the UK to safeguard and enliven beloved historic buildings. We are extremely grateful for the support during 2022-23 of the following. 

## Benefactors (£20,000 or more per annum) 

- UK Government 

- Department for Digital, Culture, Media and Sport Historic England 

- Historic Environment Scotland Cadw 

- Department for Communities Northern Ireland 

- National Lottery Heritage Fund 

- Garfield Weston Foundation 

- The Pilgrim Trust 

- William Grant Foundation 

## Friends (£120 or more per annum) 

- Simon Back 

- Dr DK Robinson 

- S Snowden 

- Paul Tomlinson 

- Nigel Waring 

- A Alao 

- F Hollands 

- J Bowdidge 

- K Wilson-Lee 

- M Mckeague 

- R Hodson 

- K Latimer 

- M Barnes 

- A Karbhari 

- Andrew Dunbar-Nasmith 

## Pro bono support 

Shearman & Sterling Solicitors – which contributed £69,623 of pro bono support to the Heritage Impact Fund. 



## The Architectural Heritage Fund Statement of Trustees' Responsibilities 

## Statement of Trustees Responsibilities 

The members of the Board (who are the trustees, and also directors of The Architectural Heritage Fund 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), including FRS 102 'The Financial Reporting Standard Applicable in the UK and Ireland'. 

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of The Architectural Heritage Fund ("AHF") and of the incoming resources and application of resources, including the income and expenditure, of the AHF for that year. In preparing these financial statements, the Board is required to: 

- select suitable accounting policies and then apply them consistently; 

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

- make judgements and 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; and 

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

The Board is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the AHF, and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the AHF and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

In so far as the trustees are aware: 

- there is no relevant audit information of which the charitable company's auditor is unaware; and 

- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website.  Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

This Report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006. 

Signed on behalf of the Board: 


Ros Kerslake Chair 

27 September 2023 



## INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE ARCHITECTURAL HERITAGE FUND 

## Opinion 

We have audited the financial statements of The Architectural Heritage Fund (‘the company’ for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’ (United Kingdom Generally Accepted Accounting Practice). 

## In our opinion the financial statements: 

- give a true and fair view of the state of the charitable company’s affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 (as amended), Regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011. 

## Basis for opinion 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of financial statements section of our report. We are independent of the Corporation in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## Conclusions relating to going concern 

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. 

## Other information 

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 



## INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE ARCHITECTURAL HERITAGE FUND 

## Opinions on other matters prescribed by the Companies Act 2006 

In our opinion, based on the work undertaken in the course of the audit: 

- the information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and the trustees’ annual report been prepared in accordance with applicable legal requirements. 

## Matters on which we are required to report by exception 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. 

We have nothing to report in respect of the following matters where the Companies Act 2006, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011 require us to report to you if, in our opinion: 

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or certain disclosures of trustees’ remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit; or the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the Trustees’ Annual Report and from preparing a Strategic Report. 

## Responsibilities of trustees 

As explained more fully in the trustees’ responsibilities statement set out on page 39, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 

## Auditor’s responsibilities for the audit of the financial statements 

We have been appointed as auditor under Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, the Companies Act 2006 and Section 151 of the Charities Act 2011 and report to you in accordance with regulations made under those Acts. 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also: 



## INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE ARCHITECTURAL HERITAGE FUND 

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charitable company’s internal control. 

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. 

- Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern. 

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 

## Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. 

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company. 

Our approach was as follows: 

- We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 (as amended), regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council and UK taxation legislation. 

- We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance. 



## INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE ARCHITECTURAL HERITAGE FUND 

- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance. 

- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. 

- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. 

## Use of our report 

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006; and to the charity’s trustees, as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, and in respect of the consolidated financial statements, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters which we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company, the charitable company’s members, as a body, and the charity’s trustees, as a body for our audit work, for this report, or for the opinion we have formed. 


Luke Holt (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor 

Devonshire House 9 Appold Street London EC2A 2AP 

Date 


Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006. 



## The Architectural Heritage Fund 

Statement of Financial Activities for the year ended 31 March 2023 (incorporating the income and expenditure account) 

|Note<br>Income and endowments from:<br>Donations and legacies<br>Donations and legacies from individuals and corporations<br>3<br>Government grants<br>4<br>Other grants<br>5<br>Charitable activities<br>Investments<br>Bank Interest/Dividends receivable<br>Interest receivable - on loans disbursed<br>Rent receivable<br>Total income<br>Expenditure on:<br>Raising funds<br>Generating voluntary income<br>Investment management - financial<br>Investment management - property<br>Charitable activities<br>Loan and grant<br>(Decrease)/Increase in the loan bad debt provision<br>6<br>Other loan-related activities<br>Grant making<br>Development and advocacy<br>Capacity building<br>Impact reporting, evaluation and communications<br>Research<br>Contribution to the Heritage Trust Network<br>Total expenditure on charitable activities<br>7<br>Net gains/(losses) on investments<br>13<br>14<br>Net income/(expenditure)<br>Transfers between funds<br>22<br>Net movement in funds<br>22<br>Reconciliation of funds<br>Balances at 1 April 2022<br>Balances at 31 March 2023<br>22<br>Total expenditure before gains/(losses) on investments<br>Net loss on disposal of investment property|Endowment<br>fund<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>(150,416)<br>-<br>-<br>(150,416)<br>-<br>-<br>-<br>-<br>-<br>(150,416)<br>(150,416)<br>(116,746)<br>33,670<br>33<br>33,703<br>9,325,787<br>9,359,490|Restricted<br>fund<br>£<br>-<br>3,088,512<br>213,668<br>3,302,180<br>-<br>-<br>-<br>-<br>-<br>3,302,180<br>-<br>-<br>-<br>-<br>358,185<br>124,558<br>2,984,055<br>3,466,798<br>127,130<br>18,161<br>11,313<br>-<br>156,604<br>3,623,402<br>3,623,402<br>(77,830)<br>-<br>(399,052)<br>(29,503)<br>(428,555)<br>6,225,344<br>5,796,789|Unrestricted<br>fund<br>£<br>71,666<br>-<br>-<br>71,666<br>27,854<br>27,854<br>144,230<br>592,999<br>-<br>737,229<br>836,749<br>5,820<br>34,172<br>-<br>39,992<br>37,285<br>241,540<br>171,037<br>449,862<br>149,970<br>99,076<br>-<br>5,000<br>254,046<br>703,908<br>743,900<br>(22,815)<br>-<br>70,034<br>29,470<br>99,504<br>2,070,050<br>2,169,554|2023<br>total<br>£<br>71,666<br>3,088,512<br>213,668<br>3,373,846<br>27,854<br>27,854<br>144,230<br>592,999<br>-<br>737,229<br>4,138,929<br>5,820<br>34,172<br>-<br>39,992<br>245,054<br>366,098<br>3,155,092<br>3,766,244<br>277,100<br>117,237<br>11,313<br>5,000<br>410,650<br>4,176,894<br>4,216,886<br>(217,391)<br>-<br>(295,348)<br>-<br>(295,348)<br>17,621,181<br>17,325,833|2022<br>total<br>£<br>1,643<br>6,285,521<br>106,664<br>6,393,828<br>67,664<br>67,664<br>84,192<br>522,462<br>18,074<br>624,728<br>7,086,220<br>4,570<br>25,797<br>16,562<br>46,929<br>117,804<br>273,728<br>6,011,582<br>6,403,114<br>255,766<br>110,632<br>35,893<br>5,000<br>407,291<br>6,810,405<br>6,857,334<br>110,824<br>(15,065)<br>324,645<br>-<br>324,645<br>17,296,536<br>17,621,181|
|---|---|---|---|---|---|



All amounts relate to continuing activities. 

All recognised gains and losses are included in the Statement of Financial Activities. 

The notes on pages form part of these financial statements. 



The Architectural Heritage Fund Balance Sheet as at 31 March 2023 


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2023 2022<br>£ £ £ £<br>Fixed assets<br>Investments 13 6,391,126  4,332,888<br>Tangible assets 15 6,379  7,150<br>Intangible assets 16 14,400  -<br>Programme related investments:<br>Loans disbursed for preservation projects 17 9,540,707  9,919,932<br>Total fixed assets 15,952,612  14,259,970<br>Current assets<br>Debtors:<br>Loan interest receivable 231,295  383,392<br>Government grants receivable 988,585  1,382,402<br>Other accrued income and prepayments 73,687  53,185<br>1,293,567  1,818,979<br>Cash at bank and in hand  5,256,826  9,410,655<br>6,550,393  11,229,634<br>Creditors: amounts falling due within one year 18 (5,172,172) (7,863,423)<br>Net current assets 1,378,221  3,366,211<br>Provision 20 (5,000) (5,000)<br>Net assets 17,325,833  17,621,181<br>Funds 21,22<br>Endowment fund 9,359,490  9,325,787<br>Restricted fund 5,796,789  6,225,344<br>Unrestricted funds<br>Designated lending fund 1,537,581  1,502,844<br>General fund 631,973  567,206<br>2,169,554  2,070,050<br>Total funds 17,325,833  17,621,181<br>**----- End of picture text -----**<br>


The financial statements were approved by the Board and authorised for issue, on 27 September 2023 and signed on their behalf by: 



Ros Kerslake Chair Date 27 September 2023 

Roy Hodson Chai of the Audit & Risk Committee Date 27 September 2023 


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The Architectural Heritage Fund<br>**----- End of picture text -----**<br>


Company limited by guarantee registration number 01150304 



## The Architectural Heritage Fund Statement of Cash Flows for the year ended 31 March 2023 

|Net cash provided by/(used in) operating activities<br>Cash flows from investing activities:<br>Interest and rents from investments<br>Purchases of investments<br>Proceeds from investment disposals<br>Proceeds from fixed asset investments<br>Purchases of fixed assets<br>Purchases of intangible assets<br>Change in long term cash deposits held in the investment portfolio<br>Net cash provided by investing activities<br>Increase/(decrease) in cash and cash equivalents in the year<br>Cash and cash equivalents at the beginning of the year<br>Total cash and cash equivalents at the end of the year<br>Analysis of cash and cash equivalents<br>Cash at bank and in hand<br>Cash held in investment portfolio<br>Total cash and cash equivalents<br>Analysis of changes in net debt<br>Cash at bank and in hand<br>Cash held in investment portfolio<br>Total|Note<br>23<br>13<br>As at 1 April<br>2022<br>£<br>9,410,655<br>1,069,071<br>10,479,726|2023<br>£<br>(2,598,226)<br>737,229<br>(4,726,125)<br>573,473<br>-<br>(2,803)<br>(14,400)<br>900,000<br>(2,532,626)<br>(5,130,852)<br>10,479,726<br>5,348,874<br>2023<br>£<br>5,256,826<br>92,048<br>5,348,874<br> <br>Cash flows<br>£<br>(4,153,829)<br>(977,023)<br>(5,130,852)|2022<br>£<br>(1,238,622)<br>624,728<br>(246,145)<br>1,396,482<br>530,000<br>(10,726)<br>-<br>(145,000)<br>2,149,339<br>910,717<br>9,569,009<br>10,479,726<br>2022<br>£<br>9,410,655<br>1,069,071<br>10,479,726<br>As at 31 March<br>2023<br>£<br>5,256,826<br>92,048<br>5,348,874|
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## The Architectural Heritage Fund Notes to the Financial Statements for the year ended 31 March 2023 

- 1 Company status 

The charity is a company limited by guarantee domiciled and incorporated in England and Wales. The registered office is 3 Spital Yard, Spital Square, London, E1 6AQ. The members of the company are the trustees named in Section 13 'Reference and administrative information'. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. 

## 2 Accounting policies 

## Basis of preparation 

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity's governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) published on 16 July 2014. The charitable company is a public benefit entity for the purposes of FRS 102 and therefore the charity also prepared its financial statements in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable in the UK and Republic of Ireland effective 1 January 2015 (Charities SORP (FRS 102) including Updated Bulletin 2, the Companies Act 2006, the Charities Act 2011 and Charities Accounts (Scotland) Regulations 2006 as amended by The Charities Accounts (Scotland) Amendment (No.2) Regulations 2014. In accordance with the provisions of the Companies Act the charity has adapted the format of the accounts to reflect the special nature of the charity's activities. Additional information has been provided where this increases understanding of the figures. 

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound. 

The following accounting policies have been applied consistently during the current and previous year except as defined below: 

## Going concern 

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. 

As part of the going concern review the trustees reviewed detailed budgets and cash flow forecasts, taking into account the legacy effects of the Covid-19 pandemic on the company's income and expenditure streams and the current challenges of rising interest rates, inflation and energy costs, all of which will affect the organisations we support. 

The aftermath of the pandemic continues to increase the risk of bad debts from borrowers, and the worsening economic climate will, unfortunately, have a detrimental affect on our loan and grant clients and their financial sustainability.  Nevertheless,  based on these forecasts and the level of reserves available, the trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements as they do not consider there to be any material uncertainties about the charity's ability to continue. 

## Income 

All income is included in the Statement of Financial Activities when the Architectural Heritage Fund is legally entitled to the income and the amount can be measured reliably and receipt is probable. For legacies, entitlement is the earlier of the charity's being notified of an impending distribution or the legacy being received. Income from charitable activities includes loan arrangement fees. 

Government grant income is recognised when the AHF is entitled to the grant income, it is probable that the economic benefit associated with the grant will be received and the monetary value can be measured reliably. 

Where grant income relates to a period specified by the donor, any of the income not received in the appropriate financial year is accrued; where any of the income is received in advance of the appropriate financial year, it is deferred. 

Where goods and services that would normally be purchased from suppliers are provided to the Charity as a donation,  this donation is included in the financial statements as an estimate based on the value of the contribution to the Charity. 

## Loans 

The Architectural Heritage Fund makes loans in furtherance of its objects. The terms of repayment and the rate of interest are laid down by the Board and embodied in a legal agreement for each loan. 



## The Architectural Heritage Fund Notes to the Financial Statements for the year ended 31 March 2023 

## 2 Accounting policies (continued) 

## Loans (continued) 

Loans are disbursed and recorded in the financial statements when the borrower fulfils certain conditions. Some loans are disbursed by instalments. The undisbursed balance of contracted loans is recorded with offers of loans for which a contract has not been made, as a future commitment (see note 12). The timing of the payment of such amounts depends on the fulfilment of certain conditions by the borrower and cannot be estimated with any reasonable accuracy by the Architectural Heritage Fund. 

The financial statements include interest accrued on the outstanding loans at the balance sheet date. 

## Bad debt expense 

Based on the latest detailed portfolio analysis, the total capital bad debt provision required is estimated at 18% for the loans falling under the Heritage Impact Fund activities; the capital bad debt provision for the Charity's Endowment Fund activities is estimated at 9 %. 

Bad debt expense incurred on the capital element of a loan as part of the Heritage Impact Fund is taken against each charitable fund, consistent with each funds' contribution to this lending fund.  Any other bad debt expense required is taken against the endowment fund. 

Where there is a change in the bad debt on loan interest receivable for the year, the impact on the unrestricted fund is limited to 8.3% of loan interest income recognised in the year. Any remaining expense is taken against each charitable fund, consistent with each funds' contribution to the lending fund. 

## Grants 

The Architectural Heritage Fund makes non-refundable grants in furtherance of its objects. 

Non-refundable grants offered are accounted for on an accruals basis and are disbursed when the recipient has fulfilled certain conditions that are individual to the particular case. Where the timing of the disbursement of grants cannot be reliably estimated all non-refundable grants offered but not yet disbursed at the balance sheet date are included in the balance sheet as Creditors: amounts falling due within one year. 

## Expenditure 

All expenditure is accounted for on an accruals basis and has been classified in the Statement of Financial Activities under headings that aggregate all relevant costs. Irrecoverable VAT is included with the expense to which it relates. 

Charitable activities include all costs relating to the provision of loans and grants in furtherance of the objects of the Architectural Heritage Fund. It also includes costs relating to the support, development and distribution of information relating to the Architectural Heritage Fund and advice and guidance to charities and social enterprises developing heritage led regeneration projects. 

Costs of raising funds are those incurred in seeking voluntary contributions. These do not include the costs of disseminating information in support of charitable activities. 

Support costs are indirect costs incurred to facilitate the charity's activities. Where such costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources. Support costs including premises, staff and overhead costs are allocated to activities by reference to the time spent by staff. 

Governance costs, included within support costs, are those incurred in connection with the governance of the Architectural Heritage Fund and in complying with constitutional and statutory requirements. 

## Fixed asset investments 

Listed investments are stated at market value at the year end. The SOFA includes any realised and unrealised gains and losses during the year. 



## The Architectural Heritage Fund Notes to the Financial Statements for the year ended 31 March 2023 

## 2 Accounting policies (continued) 

## Tangible fixed assets 

Expenditure of more than £2,000 on a tangible fixed asset (including any incidental expenses of acquisition) is initially capitalised at cost and subsequently measured at cost less depreciation. Depreciation is calculated to write off the cost, less estimated residual value, of all tangible fixed assets on a straight line basis over their estimated useful lives as follows: 

Computer equipment 3 years 

## Intangible fixed assets 

Intangible fixed assets are capitalised when expenditure is more than £2,000. They are initially capitalised at cost and subsequently measured at cost less amortisation.  Amortisation is provided at rates calculated to write off the cost, less estimated residual value, of all intangible fixed assets on a straight line basis over their estimated useful lives as follows: 

Database Development 5 years 

## Programme related investments 

Loans disbursed for charitable preservation projects of the AHF's beneficiaries are initially recognised and measured at the amount paid. The carrying amount is adjusted in subsequent years to reflect repayments, and a provision is made for any estimated irrecoverable amounts. Provisions are estimated on the basis of the fair value of any amounts pledged to the AHF and are reassessed at each reporting date. Any resulting gains and losses are recognised in the Statement of Financial Activities in the year in which they arise. An additional general provision is made where the trustees consider it appropriate, based on historic bad debt performance. 

## Cash and cash equivalents 

Cash and cash equivalents include cash in hand, deposits held at call with banks, deposits held within the investment portfolio and other short-term liquid investments with original maturities of 90 days or less. Cash held within the investment portfolio is classified within fixed asset investments. 

## Provision 

A provision is defined as a liability of uncertain timing or amount. Provisions are recognised in accordance with FRS 102 when the charitable company has a legal or constructive obligation as a result of a past event, a reliable estimate of that obligation can be made and it is probable an outflow of economic benefits will be required to settle the obligation. Where the effect of the time value of money is material provisions are recognised at a discounted rate. 

## Financial instruments 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. 

The AHF only has financial assets 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 amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. 

## Taxation 

The charitable company is exempt from tax on income and gains falling within section 505 of the Taxes Act 188 to the extent that these are applied to its charitable objects. 

## Employee benefits 

The costs of short term employee benefits are recognised as a liability and an expense. 

Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed. 

## Retirement benefits 

Payments to defined contribution retirement benefit schemes are charged as an expense to the Statement of Financial Activities as they fall due (see note 10). 

## Leases 

Operating lease costs are charged to the Statement of Financial Activities as incurred, on a straight line basis over the term of the lease term. 



## The Architectural Heritage Fund 

## Notes to the Financial Statements for the year ended 31 March 2023 

## 2 Accounting policies (continued) 

## Fund accounting 

## Endowment fund 

Contributions received for lending to preservation projects constituting a capital fund which cannot be expended, other than by loans. 

## Designated lending fund 

Resources allocated by the Board from the AHF's unrestricted funds to be available for lending and to constitute a reserve for bad debts on loans and for any loan-related expenditure which cannot be met from annual income. 

## General fund 

The general fund constitutes the free reserves of the charity from which running costs and non-refundable grants have to be paid. 

## Restricted funds 

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donor. The aim and use of each restricted fund is set out in the notes to the financial statements. 

## 3 Judgements and key sources of estimation uncertainty 

In the application of the charitable company's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. 

## Critical judgements 

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. 

## (i) Bad debt provision 

The charitable company makes an estimate of the recoverable value of loan debtor balances. When assessing impairment of these, management considers factors including the current credit rating of the debtor, their financial performance, the payment profile, the general economic environment and historical experience. The Coronavirus pandemic and the current economic environment both continue to have an adverse impact on the financial and trading pressures of the heritage and community sector which the Architectural Heritage Fund serves through its loans portfolio. As a result, the effective general capital bad debt provision (excluding restricted activities in relation to the Heritage Impact Fund) has only reduced slightly, to 6.0% (2022: 6.5%). See note 6 for details of the impairment provision made. 

## (ii) Donated goods and services 

Donated goods and services are based on an estimate of the value of the contribution to the Charity as per the accounting policy above.  During the year the Charity received pro bono legal services from Shearman & Sterling (London) LLP in connection with a potential loan facility for the HIF.  These services were valued at £69,623 and the income is included in £71,666 Donations and legacies from individuals and corporations  on the SOFA. 



The Architectural Heritage Fund Notes to the Financial Statements for the year ended 31 March 2023 

|4<br>Analysis of government grants receivable<br>Historic England : Transforming Places Through Heritage<br>Historic England: Capacity Building<br>National Lottery Heritage Fund: Replan<br>Historic Environment Scotland<br>Cadw: Welsh Historic Environment service<br>Dept for Communities Northern Ireland: Heritage Impact Fund<br>Dept for Communities Northern Ireland|Endowment<br>fund<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|Restricted<br>funds<br>£<br>1,978,010<br>33,394<br>42,158<br>464,000<br>350,000<br>-<br>220,950<br>3,088,512|2023<br>total<br>£<br>1,978,010<br>33,394<br>42,158<br>464,000<br>350,000<br>-<br>220,950<br>3,088,512|2022<br>total<br>£<br>4,848,407<br>80,000<br>34,664<br>464,000<br>350,000<br>250,000<br>258,450<br>6,285,521|
|---|---|---|---|---|



|5<br>Other grant income<br>William Grant Foundation<br>Garfield Weston<br>The Pilgrim Trust|Endowment<br>fund<br>£<br>-<br>-<br>-<br>-|Restricted<br>funds<br>£<br>107,000<br>58,336<br>48,332<br>213,668|2023<br>total<br>£<br>107,000<br>58,336<br>48,332<br>213,668|2022<br>total<br>£<br>-<br>58,332<br>48,332<br>106,664|
|---|---|---|---|---|



- 6 Losses on loans and adjustments to the bad debt provision 

|Increase/(decrease)  in the loan bad debt provision:<br>Loan capital specific<br>Loan capital general<br>Loan interest specific<br>Loan interest general<br>Increase/(decrease)  in the loan bad debt provision:<br>Loan capital specific<br>Loan capital general<br>Loan interest specific<br>Loan interest general|Endowment<br>fund<br>£<br>(89,481)<br>(65,682)<br>6,363<br>(1,616)<br>(150,416)<br>Endowment<br>fund<br>£<br>13,531<br>(9,261)<br>-<br>-<br>4,270|Restricted<br>funds<br>£<br>500,139<br>(180,480)<br>51,643<br>(13,117)<br>358,185<br>Restricted<br>fund<br>£<br>-<br>50,235<br>-<br>-<br>50,235|Unrestricted<br>funds<br>£<br>89,758<br>(66,713)<br>19,089<br>(4,849)<br>37,285<br>Unrestricted<br>funds<br>£<br>-<br>20,000<br>(9,533)<br>52,832<br>63,299|2023<br>total<br>£<br>500,416<br>(312,875)<br>77,095<br>(19,582)<br>245,054<br>2022<br>total<br>£<br>13,531<br>60,974<br>(9,533)<br>52,832<br>117,804|
|---|---|---|---|---|



In recognition of the risk that funds may not be recoverable in full, despite the AHF’s best efforts, the AHF's trustees are of the opinion that it is prudent to carry a general bad debt provision against outstanding loan balances not specifically provided for. 

In 2019/20, detailed portfolio analysis indicated that an 11% general bad debt provision was appropriate (increased from 8.3% in 2018/19) against endowment loan balances outstanding not specifically provided for, reflecting difficult financial and trading conditions due to the impact of the Coronavirus pandemic. In 2021/22 a general bad debt provision of 6.5% was considered appropriate.  The latest portfolio analysis indicates that a general bad debt provision of 6.0% is appropriate against endowment loan balances not specifically provided for in 2022/23. 

A 8.3% general bad debt provision was carried against Heritage Im act Fund loans outstanding before 22/23, when the fund was relatively new; this was based on a long term average of historical bad debt charged to the AHF endowment fund.   The latest HIF portfolio analysis indicates that a specific bad debt provision is required in respect of two HIF loans at the 22/23 year end and only a m nimal general bad debt provision (<1%) is carried against the outstanding loan balances not specifically provided for. 

Loans disbursed and loan interest receivable are stated after provisions for impairment amounting to £1,490,251 (2022: £1,521,478). 



The Architectural Heritage Fund Notes to the Financial Statements for the year ended 31 March 2023 


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Support costs<br>7 Analysis of total resources expended Staff costs Grants Direct costs Publication Heritage  Premises Depreciation Other 2023 2022<br>(Note 10) (Note 8) costs Trust Network costs costs Total Total<br>£ £ £ £ £ £ £ £ £ £<br>Resources expended<br>Costs of generating funds (unrestricted) -  -  -  -  - 2,596  277  37,119  39,992  46,929<br>Loan-related activities 210,738  - 88,185 -  -  6,178 646  305,405  611,152  391,532<br>Grant making 516,632  2,144,155  397,195  -  -  12,355 1,361  83,394  3,155,092  6,011,581<br>Capacity building 170,049  -  -  -  -  10,811 1,182  95,058  277,100  255,766<br>Impact reporting, evaluation and communications 101,623  -  -  4,818  - 1,544 110  9,142  117,237  110,632<br>Research -  -  11,313  -  -  -  -  -  11,313 35,893<br>Net contribution to the Heritage Trust Network -  -  -  -  5,000  -  -  -  5,000  5,000<br>2023 total 999,042  2,144,155  496,693  4,818  5,000  33,484  3,576  530,118  4,216,886  6,857,334<br>2022 total 943,797  5,080,062  414,342  5,703  5,000  32,731  3,576  372,123  6,857,334<br>Loan-related activities include a net increase of £245,054 (2022: £117,804) in the provision for bad debts, as detailed in Note 6.<br>Other support costs include:<br>2023 2022<br>£ £<br>General office and administration 59,610 55,277<br>Accommodation, travel & subsistence 24,795 17,799<br>Increase in the provision for bad debts 245,054 117,804<br>Investment property management (external) -  14,650<br>Investment management fees (external) 27,966 23,885<br>Regional support initiative 34,240 34,454<br>Other costs 120,686 64,866<br>Governance costs 17,767 43,388<br>530,118 372,123<br>**----- End of picture text -----**<br>


Expenditure on charitable activities was £4,176,894 (2022: £6,810,405) of which £(150,416) (2022: £4,270) was attributable to endowment funds, £3,623,402 (2022: £6,239,621) to restricted funds and £703,908(2022: £566,514 ) to unrestricted funds. 



## The Architectural Heritage Fund 

Notes to the Financial Statements for the year ended 31 March 2023 

## 8 Grants 

|Offered<br>£<br>Project grants:<br>England<br>Transforming Places through Heritage (DCMS)<br>Project viability<br>183,362<br>Project development<br>1,182,139<br>Transformational project (incl HDT capital)<br>Crowdfunding challenge<br>50,000<br>Emergency support grants<br>Growing Community Enterprise through Heritage (DCMS)<br>Project viability<br>16,362<br>Project development<br>National Capacity Building - HE<br>Project viability<br>Project development<br>Cultur<br>Recovery Fund<br>Recovery grants<br>Scotland<br>Main Scotland (HES)<br>Project viability<br>110,832<br>Project development<br>219,270<br>Emergency support grants<br>William Grant Foundation<br>Project viability<br>37,215<br>Project development<br>63,765<br>Wales<br>Project viability<br>46,832<br>Project development<br>162,735<br>Capital works<br>150,000<br>Northern Ireland<br>Project viability<br>15,240<br>Project development<br>27,420<br>Capital works<br>Village Catalyst<br>Project viability<br>50,000<br>Project development<br>120,000<br>Total project grants<br>2,435,172<br>Grants to sector partners:<br>HTN<br>28,333<br>Total<br>2,463,505<br>Number of grants:<br>Project viability<br>Project development<br>Transformational project & capital<br>Recovery grants<br>Emergency support grants<br>Other|Withdrawn<br>£<br>(86,983)<br>(159,097)<br>(5,328)<br>(10,277)<br>(27)<br>(6)<br>(49)<br>(12,669)<br>(11,831)<br>(1,128)<br>(363)<br>(25,203)<br>(2,524)<br>(2,325)<br>(1,540)<br>(319,350)<br>0<br>(319,350)|2023<br>Net charge<br>£<br>96,379<br>1,023,042<br>-<br>44,672<br>(10,277)<br>-<br>16,362<br>-<br>-<br>(27)<br>(6)<br>-<br>(49)<br>-<br>-<br>98,163<br>207,439<br>-<br>-<br>37,215<br>62,637<br>-<br>46,469<br>137,532<br>150,000<br>-<br>12,716<br>25,095<br>-<br>-<br>48,460<br>120,000<br>2,115,822<br>28,333<br>2,144,155<br>2023<br>53<br>74<br>4<br>-<br>-<br>4<br>135|2022<br>Net charge<br>£<br>344,622<br>1,462,921<br>2,183,489<br>90,000<br>15,000<br>-<br>(8,111)<br>(8,251)<br>-<br>41,866<br>33,486<br>-<br>49<br>-<br>-<br>109,083<br>203,646<br>-<br>-<br>58,600<br>41,400<br>-<br>34,854<br>148,146<br>151,000<br>-<br>9,929<br>20,000<br>-<br>-<br>70,000<br>50,000<br>5,051,729<br>28,333<br>5,080,062<br>2022<br>88<br>91<br>16<br>1<br>1<br>4<br>201|
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Restricted grant making expenditure of £2,9 and grant related overheads. 

(2022: £5,910,333) in the Statement of Financial Activities also includes Support Officer costs 



## The Architectural Heritage Fund 

Notes to the Financial Statements for the year ended 31 March 2023 

|9<br>Net movement in funds<br>2023<br>£<br>Net movement in funds is arrived at after charging:<br>Auditors' remuneration - current year audit<br>22,000<br>Auditors' remuneration - prior year audit<br>1,275<br>Auditors' remuneration– non-audit services<br>8,148<br>Operating lease charges - land and buildings<br>25,010<br>Operating lease charges- office equipment<br>3,184<br>10<br>Employees<br>2023<br>number<br>Average monthly number of employees during the year<br>21<br>The number of employees whose remuneration exceeded £60,000 was:<br>£60,000-£69,999<br>1<br>£70,000-£79,999<br>1<br>£80,000-£89,999<br>1<br>Staff costs comprise:<br>2023<br>£<br>Salaries<br>822,139<br>Social security costs<br>87,322<br>Pension contributions<br>64,164<br>Other staff costs<br>25,417<br>999,042<br>Key management comprises the trustees, the chief executive and the senior management team. Total key management personnel rem<br>£349,168 (2022: £334,306).|2022<br>£<br>19,075<br>-<br>13,902<br>27,142<br>2,797<br>2022<br>number<br>20<br>2<br>1<br>1<br>2022<br>£<br>783,305<br>83,178<br>62,061<br>15,253<br>943,797<br>uneration was|
|---|---|



The AHF operates a defined contribution pension scheme.  The assets of the scheme are held separately from those of the AHF in an independently administered fund. At 31 March 2023 no pension contributions were outstanding (2022: £Nil) . 

## 11 Members of the Board 

Some of the Members of the Board are also directors or trustees of, or consultants to, organisations that receive financial assistance from the AHF or with which the AHF has an arm's length business relationship.  In those circumstances, the Member is required to disclose his or her interest at the meeting at which the application is considered and takes no part in the Board's decision on the application.  Any financial assistance is given in the ordinary course of the AHF's activities. The following Members of the Board are involved with organisations which have received financial assistance from the AHF during the year:  Menna Jones, Gregory Pickup, Ros Kerslake and Karen Latimer . 

During the year, 9 Members (2022 - 6) of the Board incurred expenses for travel, accommodation and subsistence amounting to £3,610 (2022: £1,763); none received any remuneration from the AHF. 

## 12 Commitments 

|Loan commitments<br>The AHF had the following loan commitments at the year end:<br>Contracted but not yet fully disbursed<br>Offered but not yet contracted<br>Total Commitments|2023<br>£<br>839,179<br>2,425,750<br>3,264,929|2022<br>£<br>1,439,378<br>3,470,000<br>4,909,378|
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## The Architectural Heritage Fund 

## Notes to the Financial Statements for the year ended 31 March 2023 

## 12 Commitments (continued) 

## Operating leases 

At 31 March 2023 the total of the AHF's future minimum lease payments under non-cancellable operating leases was: 

|Amounts payable:<br>Amounts due within one year<br>Amounts due between two and five years|2023<br>£<br>28,134<br>44,546<br>72,680|2022<br>£<br>20,958<br>1,448<br>22,406|
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In the year ended 31 March 2021 the charity entered into a sublease agreement to rent out office space in relation to its lease at 15 Whitehall, London.  There were no amounts receivable at 31 March 2023 and the lease ended on 18 June 2023. 

|13<br>Fixed asset investments<br>2023<br>£<br>Listed investments<br>Market Value at 1 April 2022<br>2,363,817<br>Additions<br>4,726,125<br>Disposal proceeds<br>(573,473)<br>Unrealised gains/(losses)<br>(258,484)<br>Realised gains/(losses)<br>41,093<br>Market Value at 31 March 2023<br>6,299,078<br>Historical cost of investments at 31 March 2023<br>6,350,086<br>Additions include £3,289,676 Treasury 0% T-Bills 11/04/2023.<br>Analysis of investments<br>Listed equities<br>2,560,718<br>Treasury bills<br>3,297,410<br>UK investment grade bonds<br>440,950<br>6,299,078<br>Cash held in the investment portfolio<br>92,048<br>12 Month cash deposits<br>Market Value of investments at 31 March 2023<br>6,391,126<br>Reconciliation of net (losses)/gains in the Statement of Financial Activities<br>2023<br>£<br>Unrealised (losses)/gains<br>(258,484)<br>Realised (losses)/gains<br>41,093<br>Net (losses)/gains as per Statement of Financial Activities<br>(217,391)<br>Significant investment holdings based on market value at 31 March 2023 were:<br>Market Value (£)<br>RATHBONE UNIT TRUST MGMT High Quality Bond S Dist<br>471,500<br>Treasury 0% T-Bill 11/04/2023<br>3,297,409|2022<br>£<br>3,438,140<br>246,145<br>(1,396,482)<br>(66,079)<br>142,093<br>2,363,817<br>3,217,846<br>1,892,317<br>-<br>471,500<br>2,363,817<br>1,069,071<br>900,000<br>4,332,888<br>2022<br>£<br>(31,269)<br>142,093<br>110,824<br>Cost (£)<br>501,332<br>3,289,676|
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## Market risks 

The AHF’s exposure to market risks is in line with its investment objective of achieving a real return target of CPI + 2% and improving the long term returns of the assets when compared to cash.  To achieve this aim, the AHF maintains a diversified portfolio invested across asset classes. 

|14<br>Investment property<br>Friars Walk, Market Place, Burton upon Trent, Staffordshire:  market value at year end<br>Fair Value<br>At 1 April 2022<br>Disposal<br>At 31 March 2023|2023<br>£<br>-|2022<br>£<br>530,000<br>(530,000)<br>-|
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Following a strategic review in March 2021, the board decided to proceed with the sale via auction of Friars Walk but as a tenanted property, as this was considered the best means of achieving a sale. On 3 September 2021, following the sale of the property, the charity realised a loss on disposal of £15,065. 



The Architectural Heritage Fund Notes to the Financial Statements for the year ended 31 March 2023 

|15<br>Other tangible assets<br>Cost<br>At April 2022<br>Additions<br>Disposals<br>At 31 March 2023<br>Depreciation<br>At April 2022<br>Charge<br>Disposals<br>At 31 March 2023<br>Net book value<br>At 1 April 2022<br>At 31 March 2023<br>16<br>Intangible assets<br>Cost<br>At April 2022<br>Additions<br>Disposals<br>At 31 March 2023<br>Amortisation<br>At April 2022<br>Charge<br>Disposals<br>At 31 March 2023<br>Net book value<br>At 1 April 2022<br>At 31 March 2023|Computer<br>equipment<br>£<br>15,746<br>2,803<br>18,549<br>8,596<br>3,574<br>12,170<br>7,150<br>6,379<br>Database<br>£<br>-<br>14,400<br>14,400<br>-<br>-<br>-<br>-<br>14,400<br>-<br>-<br>-<br>-|
|---|---|



During the year, database development costs were incurred, to develop a single application interface.  This work was in progress at the year and  a further £9,000 was committed to complete the project, which was finished in May 2023. 

|17<br>Loans disbursed for preservation projects<br>Loan capital<br>Loan capital bad debt provision|2023<br>£<br>10,836,460<br>(1,295,753)<br>9,540,707|2022<br>£<br>11,278,153<br>(1,358,221)<br>9,919,932|
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Programme related investments are stated net of provisions of £1,295,753 (2022: £1,358,221) and include £6,468,760 in loans outstanding which are due for repayment after more than one year (2022: £8,012,867). AHF Endowment loan capital outstanding is £7,275,660 (2022: £7,405,872) against which there is a £654,809 (2022: £1,036,822) bad debt provision. Heritage Impact Fund loan capital outstanding is £3,560,800 (2022: £3,872,281 ) against which there is a £640,944 (2022: £321,399) bad debt provision. 

|18<br>Creditors<br>Outstanding non-refundable grant offers<br>William Grant Foundation - grant programme deferred income<br>Historic England - Challenge fund advance<br>Garfield Weston - Support officer and grants programme deferred income<br>Trade creditors<br>Tax and social security<br>Accruals and deferred income<br>Deferred income<br>Deferred income as at 1 April 2022<br>Amount added<br>Income released in the year<br>Deferred income as at 31 March 2023|2023<br>£<br>4,936,868<br>110,000<br>-<br>-<br>37,616<br>23,048<br>64,640<br>5,172,172<br>63,660<br>110,000<br>(63,660)<br>110,000|2022<br>£<br>7,414,147<br>-<br>200,000<br>58,336<br>67,274<br>23,081<br>100,585<br>7,863,423<br>119,268<br>4,024<br>(59,632)<br>63,660|
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Income deferred in the year relates to grant and other income specifically for future periods. 

- 19 Creditors greater than 1 year 

In February 2019, the company entered into a secured loan facility giving the company the option to draw down on funds of up to £2,000,000. Any funds drawn down will be repayable on demand and in full, with accrued interest, on or before 30 November 2023. Interest accrues on the loan at a rate of 1.75% above the published base rate of Barclays Bank Plc. The loan is secured over the fixed asset investments of the company including cash deposits, shares, bonds and securities of any other kind. During the year and up to the date of signing this report there was no draw down on the loan facility (2022: £Nil). The company remains compliant with its loan covenants. 



The Architectural Heritage Fund 

Notes to the Financial Statements for the year ended 31 March 2023 

20 Provision 

|Provision<br>Balance as at 1 April 2022<br>Balance as at 31 March 2023|2023<br>£<br>5,000<br>5,000|2022<br>£<br>5,000<br>5,000|
|---|---|---|



In 2015, we assigned the lease of our office premises at 15 Whitehall to a new tenant. This tenant went into administration during the year ended 31 March 2019 and due to our automatic guarantee agreement with the landlord, and the fact that no other tenant had been found, we were required to provide for our obligations until the lease ends in June 2023. In July 2020 we secured a new tenant and the provision was updated to reflect our latest estimated obligations until the end of the lease. 

## 21 Analysis of net assets by fund 

|Fund balances at 31 March 2023 represented by:<br>Fixed assets - programme related investments<br>Fixed assets - investments<br>Fixed assets - computer equipment<br>Fixed assets - database<br>Current assets<br>Current liabilities<br>Provision<br>Total net assets<br>Fund balances at 31 March 2022 represented by:<br>Fixed assets - investment property<br>Fixed assets - programme related investments<br>Fixed assets - investments<br>Current assets<br>Current liabilities<br>Non current liabilities<br>Provision<br>Total net assets|Endowment<br>Funds<br>£<br>7,078,851<br>1,512,144<br>-<br>768,495<br>-<br>9,359,490<br>Endowment<br>Funds<br>£<br>-<br>6,809,050<br>858,028<br>-<br>1,658,709<br>-<br>-<br>-<br>9,325,787|Restricted<br>Funds<br>£<br>2,153,856<br>4,438,032<br>-<br>4,251,769<br>(5,046,868)<br>-<br>5,796,789<br>Restricted<br>Funds<br>£<br>-<br>3,030,882<br>2,000,000<br>-<br>8,908,605<br>(7,714,143)<br>-<br>-<br>6,225,344|Unrestricted<br>Funds<br>£<br>308,000<br>440,950<br>6,379<br>14,400<br>1,530,129<br>(125,304)<br>(5,000)<br>2,169,554<br>Unrestricted<br>Funds<br>£<br>-<br>80,000<br>1,474,860<br>7,150<br>662,320<br>(149,280)<br>-<br>(5,000)<br>2,070,050|Total Funds<br>2023<br>£<br>9,540,707<br>6,391,126<br>6,379<br>14,400<br>6,550,393<br>(5,172,172)<br>(5,000)<br>17,325,833<br>Total Funds<br>2022<br>£<br>-<br>9,919,932<br>4,332,888<br>7,150<br>11,229,634<br>(7,863,423)<br>-<br>(5,000)<br>17,621,181|
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22 Analysis of funds 

|Balance at 1 April 2022<br>Net movement of funds for the year:<br>Loan bad debt write-offs and provisions<br>Surplus/(deficit) for the year<br>Gains/(losses) on investments<br>Transfers between funds<br>Balance at 31 March 2023|Designated<br>lending<br>fund<br>£<br>1,502,844<br>-<br>-<br>-<br>34,737<br>1,537,581<br>Unrestri|General<br>fund<br>£<br>567,206<br>(37,285)<br>130,134<br>(22,815)<br>(5,267)<br>631,973<br>cted funds|Restricted<br>fund<br>£<br>6,225,344<br>(358,185)<br>36,963<br>(77,830)<br>(29,503)<br>5,796,789|Endowment<br>fund<br>£<br>9,325,787<br>150,416<br>-<br>(116,746)<br>33<br>9,359,490|Total<br>£<br>17,621,181<br>(245,054)<br>167,097<br>(217,391)<br>-<br>17,325,833|
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## Transfers between funds 

As a result of additional funding received in the year from the Department for Communities (NI) towards administration costs associated with HIF lending in Northern Ireland since 2019, a transfer of £29,503 was made from the restricted fund to the unrestricted fund . 

In order to maintain general reserves of not less than one year's expenditure on core costs and initiatives, based on the average annual expenditure from unrestricted funds over the three year period ended 31 March 2023, £34,737 (2022: £49,545) was transferred from the general fund to the Designated lending fund. £33 (2022: £4,648) was transferred from the general fund to the endowment fund in agreement with Historic England, being the reallocation of certain withdrawn grant offers. 



The Architectural Heritage Fund Notes to the Financial Statements for the year ended 31 March 2023 

22 Analysis of funds (continued) 

|Endowment fund<br>Geographical<br>Source<br>area<br>Restricted for lending in geographical areas<br>Historic England<br>The Department for Digital, Culture, Media & Sport (DCMS)<br>England<br>Historic Environment Scotland<br>Scotland<br>Cadw: Welsh Historic Environment service<br>Wales<br>Not geographically restricted<br>UK Government<br>UK-wide|2023<br>£<br>5,136,821<br>435,000<br>5,571,821<br>2,797,489<br>443,126<br>547,054<br>9,359,490|
|---|---|



|Endowment funds restricted by source: analysis of movemen<br>Balance at 1 April 2022<br>Loan capital bad debt provisions - specific<br>Loan capital bad debt provisions -  general<br>Loan interest bad debt provisions - specific<br>Loan interest bad debt provisions - general<br>(Losses)/Gains on investment<br>Transfer of funds<br>Balance at 31 March 2023|t during the year<br>England<br>£<br>5,508,111<br>89,481<br>47,897<br>(6,363)<br>1,616<br>(68,954)<br>33<br>5,571,821|Scotland<br>£<br>2,819,652<br>-<br>13,135<br>-<br>-<br>(35,298)<br>-<br>2,797,489|Wales<br>£<br>446,636<br>-<br>2,081<br>-<br>-<br>(5,591)<br>-<br>443,126|UK-wide<br>Total<br>£<br>£<br>551,388<br>9,325,787<br>-<br>89,481<br>2,569<br>65,682<br>-<br>(6,363)<br>-<br>1,616<br>(6,903)<br>(116,746)<br>-<br>33<br>547,054<br>9,359,490|
|---|---|---|---|---|



Restricted funds 

|Grants in support of core initiatives:<br>Historic England: Transforming Places Through Heritage<br>Historic England: Capacity Building<br>Historic Environment Scotland<br>Cadw: Welsh Historic Environment Service<br>Dept for Communities Northern Ireland (NI)<br>Dept for Communities NI Village Catalyst<br>Dept for Communities NI: Heritage Impact Fund<br>Historic England: Heritage Impact Fund<br>Historic Environment Scotland: Heritage Impact Fund<br>Cadw:  Heritage Impact Fund<br>National Lottery Heritage Fund: Heritage Impact Fund<br>DCMS GCETH<br>Garfield Weston<br>The Pilgrim Trust<br>Reclassified England lending funds<br>Reclassified Scotland lending funds<br>Grants in support of the Tailored Support Fund<br>William Grant Foundation<br>Restricted funds total|Balance at<br>1st April<br>2022<br>£<br>-<br>-<br>-<br>-<br>19,178<br>-<br>912,000<br>316,000<br>447,304<br>317,000<br>2,160,000<br>16,362<br>37,500<br>-<br>1,000,000<br>1,000,000<br>6,225,344<br>-<br>6,225,344|Income<br>£<br>1,978,010<br>33,394<br>464,000<br>350,000<br>-<br>177,450<br>43,500<br>-<br>-<br>-<br>42,158<br>-<br>58,336<br>48,332<br>3,195,180<br>107,000<br>3,302,180|Balance at<br>Expenditure<br>Gains/(losses)<br>Transfers<br>31st March<br>2023<br>£<br>£<br>£<br>(1,929,433)<br>-<br>-<br>48,577<br>82<br>-<br>(33)<br>33,443<br>(464,000)<br>-<br>-<br>-<br>(350,000)<br>-<br>-<br>-<br>(19,178)<br>-<br>-<br>-<br>(173,460)<br>-<br>-<br>3,990<br>(54,960)<br>-<br>(29,470)<br>871,070<br>(187,521)<br>-<br>-<br>128,479<br>(26,249)<br>-<br>-<br>421,055<br>(14,386)<br>-<br>-<br>302,614<br>(139,174)<br>-<br>-<br>2,062,984<br>(16,362)<br>-<br>-<br>-<br>(93,576)<br>-<br>-<br>2,260<br>(48,332)<br>-<br>-<br>-<br>(38,915)<br>961,085<br>(38,915)<br>961,085<br>(3,516,549)<br>(77,830)<br>(29,503)<br>5,796,642<br>(106,853)<br>-<br>-<br>147<br>(3,623,402)<br>(77,830)<br>(29,503)<br>5,796,789|
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## The Architectural Heritage Fund Notes to the Financial Statements for the year ended 31 March 2023 

## Purpose of Restricted Funds 

Grants in support of core initiatives fall into the following categories:  the AHF's Project Viability Grants, Project Development Grants, Crowdfunding Challenge Grants and Capital Grants, as well as general funding in support of these schemes and related aspects of the AHF's core aims and objectives. 

The Heritage Impact Fund launched in early 2019 and has been offering loan finance from the early part of 2019/20 for up to five years. The HIF is a joint initiative with funding contributions from the National Lottery Heritage Fund, Historic England, Historic Environment Scotland, Cadw, Department for Communities Northern Ireland and the Architectural Heritage Fund itself. Additionally, Rathbone Greenbank Investments is associated by providing loan facilities to the AHF. This provision of social investment supports applicants across the UK who are undertaking a heritage capital project or are looking to build upon or scale-up an existing enterprise. Alongside the Heritage Impact Fund is our business support service: RePlan.  This launched in the Autumn of 2019 and is assisting community and social enterprises accessing finance through the Fund to develop stronger governance and impact and business models. 

The Heritage Impact Fund restricted fund balances carried forward at 31 March 2023 primarily comprise lending funds. These funds will not be expended through the Statement of Financial Activities other than through movements in the bad debt provision or any future amounts repayable to funders. 

Transforming Places through Heritage awarded its first grants in September 2019; the programme ran until March 2023. The programme focused on supporting projects in town centre and high street locations across England, with provision for Project Viability and Development Grants, Crowdfunding Challenge Grants, Transformational Capital Grants and a suite of affiliated activities including a Community Shares equity offering being managed by Cooperatives UK and a Capacity Building Workshop series being led by the Heritage Trust Network and Locality. 

The AHF's grant programmes offer advice and guidance alongside and sometimes in lieu of grant funding, across England, Scotland, Wales and Northern Ireland. This support aims to assist local communities seeking to rescue and re-utilise a historic building which they value. The AHF places particular emphasis on targeting help towards supporting community enterprises that wish to set up and/or grow their businesses in historic buildings, particularly those that are at risk and/or transferred from public ownership. Programmes in each of the four nations are led by a Development Manager, with Support Officers working under the Manager in England and Scotland. 

During 2021/22, there were four withdrawals from grants made during 2019/20, which were themselves awarded using funding withdrawn from grants originally offered during the 2016-19 Growing Community Enterprise through Heritage programme funded by DCMS. These grants were to offer early-stage support towards heritage regeneration projects. One PVG was awarded in 2021/22, and by agreement with Historic England the remaining funding was rolled over to be awarded during 2022/23, when two additional grants were awarded, fully expending the funding available. 

Following the completion of the Village Catalyst pilot programme in 2021, the DfC and Department for Agriculture and Rural Affairs affirmed their commitment to this scheme by expanding it to run over four years, with the AHF continuing to offer support to build the capital pipeline with PVGs and PDGs, as well as advice. 

A new grant fund was launched in Scotland in 2018/19, the ‘Tailored Support Fund’, thanks to funding from the William Grant Foundation (WGF), which has committed £100,000 in grants per annum since, renewed in bi-annual tranches, with 7% overhead support. 

23 Reconciliation of net income/(expenditure) to net cash inflow/(outflow) from operating activities 

|Net income/(expenditure) for the year<br>Adjustments for:<br>Depreciation<br>Net losses/(gains) on investments<br>Interest and rents from investments<br>(Increase)/decrease in debtors<br>Increase/(decrease) in creditors<br>(Decrease)/increase in provisions<br>Net cash provided by/(used in) operating activities|2023<br>£<br>(295,348)<br>3,574<br>217,391<br>(737,229)<br>904,637<br>(2,691,251)<br>-<br>(2,598,226)|2022<br>£<br>324,645<br>3,576<br>(76,014)<br>(624,728)<br>(584,427)<br>(281,674)<br>-<br>(1,238,622)|
|---|---|---|





The Architectural Heritage Fund ahfund.org.uk Tel: 020 7925 0199 Email: ahf@ahfund.org.uk The Architectural Heritage Fund Company Number:1150304 Charity Number: 266780 Scottish Charity Number: SC043840 Financial Services Register number: 707421 

AHF Trustees' Annual Report and Accounts