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2021-03-31-accounts

The Cornwall Buildings Preservation Trust

A Charitable Company Limited by Guarantee

Charity No. 266880

Company No. 01149012

Trustees' Report and Unaudited Accounts

31 March 2021

Cornwall Community Accountancy Service The Elms, 61 Green Lane Redruth Cornwall TR15 1LS

The Cornwall Buildings Preservation Trust CONTENTS

Pages
Trustees' Annual Report 3 to 7
Independent Examiner's Report 7
Statement of Financial Activities 8
Balance Sheet 9
Notes to the Accounts 10 to 16

Page 1

The Cornwall Buildings Preservation Trust TRUSTEES ANNUAL REPORT

REFERENCE AND ADMINISTRATIVE DETAILS

Company No. 01149012

Charity No. 266880

Registered Office

Truro Community Library Union Place Truro TR1 1EP

Directors and Trustees

The Directors of the charitable company are its Trustees for the purposes of charity law. The following Directors and Trustees served during the year:

Eric Berry Nicholas Cattaneo (Appointed 29 December 20) Georgina McLaren Keri Parkinson Karen Pritchard Daniel Ratcliffe Kirsty Worden (Appointed 29 December 20)

Accountants

Cornwall Community Accountancy Service The Elms, 61 Green Lane Redruth Cornwall TR15 1LS

Bankers

Barclays Bank Plc 14 King Street Truro Cornwall TR1 2RB

Investments

COIF Charities funds 85 Queen Victoria Street London EC4V 4ET

Page 2

The Cornwall Buildings Preservation Trust TRUSTEES ANNUAL REPORT

The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the unaudited financial statements of the charity for the year ended 31 March 2021.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The trustees have complied with the duty in Section 4 of the Charities Act 2006 and have had due regard to public benefit guidance published by the Charity Commission in setting the activities required to meet its objects.

The objective of the Charity continues to be the preservation and restoration of buildings of interest in Cornwall and the Isles of Scilly. The Trust may acquire buildings of architectural or historic interest which have fallen into disrepair that are usually vacant, with the object of sensitive restoration to a beneficial use for resale or retention. In general, the Trust has acquired buildings in the past which other developing agencies have not been prepared to salvage. For the future, the Trustees envisage working more particularly in a facilitation role in close liaison with Cornwall Council and Historic England.

Strategies

The Trustees regularly meet to discuss a range of possible properties for renovation, having obtained details from Cornwall Council and other agencies such as Cornish Buildings Group.

Grant making

The Board of Trustees has the power to grant loans or to make grants for charitable purposes in any way connected with the purposes of the Charity or calculated to further its objectives. The Trust does not currently have sufficient reserves to actively promote grant applications.

Volunteers

Without the efforts of the Trustees who are volunteers and who give their time free of charge, the Charity would be unable to operate.

ACHIEVEMENTS AND PERFORMANCE

Trustees' Statement

The Board of Trustees met 11 times during the year. Due to Coronavirus, all meetings were conducted remotely by tele conference or video conference.

We were pleased to welcome two new Trustees on to the Board in December 2020 – Nicholas Cattaneo and Kirsty Worden.

The Trust is currently operating with 7 Trustees and no formal Chair. In the absence of a Chair or Secretary, the Trustees work collectively to ensure proper day to day administration.

Truro City Council kindly continues to host the Trust at no charge at its temporary office in Truro Library, whilst Municipal Buildings undergoes refurbishment. However, access to our hard copy records and correspondence there has been limited on account of Coronavirus.

Page 3

The Cornwall Buildings Preservation Trust TRUSTEES ANNUAL REPORT

The increased number of Board meetings reflects the fact that it has been a challenging year for the Trust, with Covid a major factor. In April 2020 we faced with 3 key issues: (i) restoring administrative and financial systems disrupted by the recent death of our lead Trustee; (ii) the closure of our sub-tenant’s business at Old Duchy Palace due to Covid and subsequent non-payment of rent; (iii) dealing with an outbreak of dry rot at Old Duchy Palace.

Our sub-tenant was obliged to close her ‘non-essential’ business due to Coronavirus in March 2020; she then stopped paying the rent that is our principal source of income. Eventually she gave notice and moved out in October 2020. Old Duchy Palace remained closed for the whole of 2020-21 with no rental income and from October the responsibility for utility payments reverted to the Trust. In December 2020 the undercroft flooded when the River Fowey burst its banks; the Trust also had to deal with the consequences of this incident.

Meanwhile, faced with a cost estimate well beyond our resources, we sought to resolve the dry rot outbreak on the first floor at Old Duchy Palace. Although the dry rot is attributable to design issues associated with works by our landlord (the freeholder, Re-Form Heritage Ltd.) in 2012, they declined to offer any financial assistance towards remedial measures.

During Summer 2020, with support and advice from officers at Cornwall Council and Historic England, we applied for several Covid - related grants. These focussed on 4 areas: (i) the urgent dry rot works; (ii) other costs associated with re-letting; (iii) modernising the Trust and building its future resilience and (iv) cash flow support.

We were awarded 3 separate DCMS funded Culture Recovery Fund (CRF) grants and 2 Additional Restrictions grants from Cornwall Council. These totalled £62,974 including VAT, of which over 60% was for the dry rot works. The CRF application process meant that we developed a very useful Action Plan.

The grant income in the form of some advance payments enabled the Trust to commission the dry rot remedial works, begin resilience planning and maintain cash flow without drawing on our Strategic Reserve of COIF Investment Units. Most of the associated spend will occur in 2021-22.

Expenditure at £7,947 for the year mostly comprised routine payments and utility costs at Old Duchy Palace. We continued to pay rent in full to the freeholder throughout the year.

The Trust re-joined the Heritage Trust Network.

Members have continued to report and advise on other potential projects or buildings of concern. In November the Cornish Buildings Group gave a presentation to the Board about Buildings at Risk in Cornwall.

For technical reasons the conversion to a Charitable Incorporated Organisation (CIO) was not completed and is ongoing.

The Trust continues to seek more Trustees to strengthen its Board and hopes to make more appointments in the coming financial year. There remain two unfilled seats available for Cornwall Council representatives.

FINANCIAL REVIEW

A summary of the year’s financial activities is given in the Statement of Financial Activities on page 8. This year finished with an increase in unrestricted funds to £28,542 (2020 £26,838) although overall funds were increased to £75,156 which is entirely attributable to up-front Covid grant payments which are restricted in their use.

Page 4

The Cornwall Buildings Preservation Trust TRUSTEES ANNUAL REPORT

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Cornwall Buildings Preservation Trust Limited is a charitable company limited by guarantee not having a share capital. Each member’s liability cannot exceed £10. The charity was incorporated on 3 December 1973 and is governed by its memorandum and articles of association. The charity was registered with the Charities Commission on 28 January 1974.

Induction and training of new trustees

New Trustees are provided with an information pack.

Organisational structure

The Charity delegates full powers to the Board of Trustees to run the Charity and make decisions on its behalf. The Board of Trustees must comprise a maximum of 15 members, made up of a maximum of 2 members nominated by Cornwall Council, 3 nominated by other relevant bodies and 10 others appointed by the Trust itself. At the year end the charity had 7 members of the Board of Trustees.

The Board of Trustees may elect a chairman who presides over the meetings. The Trust does not currently have a formal chair, but nominates a Trustee to act as chair at each meeting.

The meetings require a quorum to conduct business which is one third, or the nearest whole number to one third, of the total membership at the time.

Nominations for members of the Board of Trustees must be made in writing at least fourteen days prior to the Annual General Meeting and must state the name of the nominee and of the member making the nomination. The Board of Trustees have the power to elect new members of the Board to fill vacancies or to add to the Board subject to not exceeding the maximum number specified.

Risk management

The Board has previously assessed the major risks to which the Charity is exposed, especially those relating to the operations and finances of the Trust. The risks are currently seen as:

(a) Purchasing a redundant building at too high a cost price and conversion at too high a cost with no profit from the scheme or even a loss.

(b) Contractors becoming insolvent during restoration.

(c) Unforeseen repair expenses at Old Duchy Palace

(d) Uninsurable risks e.g. flooding at Old Duchy Palace.

The Board has begun work on a comprehensive Risk Review, in line with Charity Commission guidance.

Page 5

The Cornwall Buildings Preservation Trust TRUSTEES ANNUAL REPORT

STATEMENT OF TRUSTEE RESPONSIBILITIES

The Trustees are responsible for preparing the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with the United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the charitable company and of the surplus or deficit of the charitable company for that period. In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006 and in accordance with the Charities SORP (FRS 102).

Signed on behalf of the board

Keri Parkinson Trustee 28 January 2022

Page 6

The Cornwall Buildings Preservation Trust INDEPENDENT EXAMINERS REPORT

Independent Examiner's Report to the trustees of The Cornwall Buildings Preservation Trust

I report to the charity trustees on my examination of the accounts of The Cornwall Buildings Preservation Trust for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet and the related notes.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act.

Having satisfied myself that the accounts of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Debbie Risborough Association of Chartered Certified Accountants Cornwall Community Accountancy Service The Elms, 61 Green Lane Redruth Cornwall

TR15 1LS 28 January 2022

Page 7

The Cornwall Buildings Preservation Trust STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31 March 2021

Notes
Income and endowments
from:
Donations and legacies
4
Charitable activities
5
Investments
6
Total
Expenditure on:
Charitable activities
7
Total
Net gains on investments
Net income/(expenditure)
Net income/(expenditure)
before other gains/(losses)
Other gains and losses:
Net movement in funds
Reconciliation of funds:
Total funds brought
forward
Total funds carried
forward		 Unrestricted
funds
2021
£
10
4,500
-		 Restricted
funds
2021
£
-
46,976
-		 Total
funds
2021
£
10
51,476
-		 Total
funds
2020
£
10
5,100
53
4,510
7,586		 46,976
362		 51,486
7,948		 5,163
24,014
7,586
4,780		 362
-		 7,948
4,780		 24,014
38
1,704 46,614 48,318 (18,813)
1,704 46,614 48,318 (18,813)
1,704
26,838		 46,614
-		 48,318
26,838		 (18,813)
45,651
28,542 46,614 75,156 26,838

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

Page 8

The Cornwall Buildings Preservation Trust BALANCE SHEET at 31 March 2021

Company No. 01149012
Notes
2021
£
Fixed assets
Investments
8
24,434
24,434
Current assets
Debtors
9
1,227
Cash at bank and in hand
50,690
51,917
Creditors:Amount falling due within one year
10
(1,195)
Net current assets
50,722
Total assets less current liabilities
75,156
Net assets excluding pension asset or liability
75,156
Total net assets
75,156
The funds of the charity
Restricted funds
11
Restricted income funds
46,614
46,614
Unrestricted funds
11
General funds
28,542
28,542
Reserves
11
Total funds
75,156		 2020
£
19,654
19,654
-
7,454
7,454
(270)
7,184
26,838
26,838
26,838
-
-
26,838
26,838
26,838

These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

For the year ended 31 March 2021 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

Approved by the board on 28 January 2022

And signed on its behalf by:

Keri Parkinson Trustee 28 January 2022

Page 9

The Cornwall Buildings Preservation Trust NOTES TO THE ACCOUNTS

for the year ended 31 March 2021

1 Accounting policies

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

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 £.

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

Change in basis of accounting or to previous accounts

There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.

Fund accounting

Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity. These are unrestricted funds earmarked by the trustees for particular Designated funds purposes. Revaluation funds These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values. Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal.

Page 10

The Cornwall Buildings Preservation Trust NOTES TO THE ACCOUNTS

Income

Recognition of Income is included in the Statement of Financial Activities (SoFA) when the income charity becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability.

Expenditure

Expenditure
Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any
expenditure VAT which cannot be fully recovered, and is reported as part of the
expenditure to which it relates.
Expenditure on These comprise the costs associated with attracting voluntary income,
raising funds fundraising trading costs and investment management costs.
Expenditure on These comprise the costs incurred by the Charity in the delivery of its
charitable activities activities and services in the furtherance of its objects, including the making
of grants and governance costs.
Grants payable All grant expenditure is accounted for on an actual paid basis plus an accrual
for grants that have been approved by the trustees at the end of the year but
not yet paid.
Governance costs These include those costs associated with meeting the constitutional and
statutory requirements of the Charity, including any audit/independent
examination fees, costs linked to the strategic management of the Charity,
together with a share of other administration costs.
Other expenditure These are support costs not allocated to a particular activity.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Stocks

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

Page 11

The Cornwall Buildings Preservation Trust NOTES TO THE ACCOUNTS

Trade and other debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Trade and other creditors

Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Leased assets

Where the charity enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.

Leases which do not transfer substantially all the risks and rewards of ownership to charity are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the charity's policy on borrowing costs.

Assets held under finance leases are depreciated in the same way as owned assets.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term.

In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.

Statement of cash flows

The charity is exempt from preparing a statement of cash flows on the grounds that it is a small charity

2 Company status

The company is a private company limited by guarantee and consequently does not have share capital.

Page 12

The Cornwall Buildings Preservation Trust NOTES TO THE ACCOUNTS

3 Statement of Financial Activities - prior year

Income and endowments
from:
Donations and legacies
Charitable activities
Investments
Total
Expenditure on:
Charitable activities
Total
Net gains on investments
Net income
Net income before other
gains/(losses)
Other gains and losses:
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried
forward
4
Income from donations and
legacies
Individual Donations		 Unrestricted
funds
2020
£
10
-
53
63
18,914
18,914
38
(18,813)
(18,813)
(18,813)
45,651
26,838
Unrestricted
£
10
10		 Restricted
funds
2020
£
-
5,100
-
5,100
5,100
5,100
-
-
-
-
-
-
Total
2021
£
10
10		 Total
funds
2020
£
10
5,100
53
5,163
24,014
24,014
38
(18,813)
(18,813)
(18,813)
45,651
26,838
Total
2020
£
10
10

Page 13

The Cornwall Buildings Preservation Trust NOTES TO THE ACCOUNTS

5 Income from charitable activities

Grant Income
Cornwall Council
Architectural Heritage
Historic England
Cultural Recovery
Primary Purpose Trading
Duchy Palace Income
6
Income from investments
7
Expenditure on charitable
activities
Support Costs
Rent & rates
Light, heat and power
Insurance
Repairs & renewals
Printing, postage and
stationary
Subscriptions
Equipment Hire
sundry expenses
Cleaning
Marketing and promotion
Governance costs
Accountancy fees
Independent examination
of the charity's accounts		 Unrestricted
£
4,500
-
-
-
-
4,500
Unrestricted
£
2,400
1,518
1,781
1,205
2
-
-
72
-
-
13
595
7,586		 Restricted
£
-
6,000
4,256
36,720
-
46,976
Restricted
£
-
-
-
262
-
100
-
-
-
-
-
-
362		 Total
2021
£
4,500
6,000
4,256
36,720
-
51,476
Total
2021
£
-
-
Total
2021
£
2,400
1,518
1,781
1,467
2
100
-
72
-
-
13
595
7,948		 Total
2020
£
-
-
-
-
5,100
5,100
Total
2020
£
53
53
Total
2020
£
3,600
2,241
1,947
-
-
-
862
14,181
488
120
150
425
24,014

Page 14

The Cornwall Buildings Preservation Trust NOTES TO THE ACCOUNTS

8 Investments

8
Investments
Cost or revaluation
At 1 April 2020
Additions
At 31 March 2021
Net book values
At 31 March 2021
At 31 March 2020
9
Debtors
Prepayments and accrued income
10 Creditors:
amounts falling due within one year
Trade creditors		 2021
£
1,227
1,227
2021
£
1,195
1,195		 Other
investment
s - Listed
£
19,654
4,780
24,434
24,434
19,654		 Total
£
19,654
4,780
24,434
24,434
19,654
2020
£
-
-
2020
£
270
270

Page 15

The Cornwall Buildings Preservation Trust NOTES TO THE ACCOUNTS

11 Movement in funds

Restricted funds:
Restricted income
funds:
Architectural Heritage
National Heritage Lottery
Historic England
Total
Unrestricted funds:
General funds
Revaluation Reserves:
Total funds		 At 1 April
2020
-
-
-
-
26,838
26,838		 Incoming
resources
(including
other
gains/losses)
£
6,000
36,720
4,256
46,976
9,290
56,266		 Resources
expended
£
-
(100)
(262)
(362)
(7,586)
(7,948)		 At 31
March
2021
£
6,000
36,620
3,994
46,614
28,542
75,156

Purposes and restrictions in relation to the funds:

Restricted funds: Architectural Heritage Funded through the Department for Digital, Culture, Media and Sport National Heritage Lottery Funded through the Department for Digital, Culture, Media and Sport Historic England Development, repair or other maintenance work at Old Duchy Palace

Analysis of net assets between 12 funds

Investments
Net current assets		 Unrestricted
funds
£
24,434
4,108
28,542		 Restricted
funds
£
-
46,614
46,614		 Total
£
24,434
50,722
75,156

13 Related party disclosures

Controlling party

The company is limited by guarantee and has no share capital; thus no single party controls the company.

Page 16