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ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Registered Charity No 504302 Registered Company No 00395954

YORK CONSERVATION TRUST LIMITED

MESSAGE FROM OUR CHAIR

Despite several waves of Covid related restrictions our main source of income, rents, has held up reasonably well during the year and our focus on related operational improvements continues to prove successful. In November 2021 we were able to hold our first in person meeting of trustees for two years. Though our investment in IT has permitted trustees and staff to communicate well during a difficult period there is no substitute for personal interaction on as regular a basis as possible.

Of most significance during the period, we completed our forward planning process and adopted the resulting strategic plan at the November 2021 board. That plan draws to a temporary close a period of significant growth in the number of freehold buildings for which we are responsible. Our ongoing programme of building condition surveys, the first batch of which focussed on the most historically important structures in our care, has revealed the extent of conservation works required in future years to maintain the buildings and ensure their continued viable occupation and use. Increasingly rigorous compliance obligations including fire prevention, power distribution and energy consumption adds to the scale and complexity of the work.

Rising to these challenges means we have to increase annual expenditure on repairs, maintenance and conservation works to levels that income from rents alone cannot currently support. To fund this in the short term, we have resolved to sell some properties of lesser conservation significance. We have also determined to pursue potential partnership opportunities and to develop relationships with both grant giving bodies and prospective private donors. To support such initiatives a clearer public profile will be essential and our web site project that was put on hold in 2020 is to be restarted.

I must record the trustees’ thanks to Ian Daniells who retired as former Property Manager at the end of March 2022 after thirteen years service. Since we separated responsibility for tenant services and rent collection from building and conservation works, Conservation Architect, Guy Bowyer, has been leading our small buildings team. Tony Leonard joined this as Buildings Manager at the end of 2021 and Richard Fearnley as Assistant Buildings Manager at the beginning of April 2022. After eight years service as the Trust’s joiner / tradesman and latterly supporting the operations function, Josh Redhead left the Trust’s employment at the end of February 2022 to pursue his trade as an independent joiner. We were pleased that during his time with us Josh developed experience and skills that will serve him well during this next stage of his career.

At five full time and one part time member of staff our executive team remains compact. I thank them for their diligence and resolve during what has been a difficult period and for their determination to support trustees in meeting the challenges ahead. I would also like to thank our professional consultants and those tradesmen, specialists and contractors who carry out repairs, maintenance and conservation works at each of our buildings. Most of these are local and we are pleased that our work has a positive impact on the economy and conservation trades reputation of York and its region.

James Morrell, Chair July 2022

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YORK CONSERVATION TRUST LIMITED

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022

The trustees present their report and the audited financial statements of the charity for the year ended 31 March 2022. They have adopted the provisions of the Statement of Recommended Practice, Accounting and Reporting by Charities, in preparing their annual report and financial statements.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts. They comply with the charity’s governing document, the Charities Act 2011 and Accounting & Reporting by Charities: Statement of Recommended Practice that applies to charities preparing their accounts in accordance with financial reporting standards applicable in the UK and Republic of Ireland, published October 2019.

Since the charitable company qualifies as small under section 383 of the Companies Act 2006, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013, has been omitted.

OBJECTS

The objects of the Trust are to;

Preserve for the benefit of the townspeople of the City of York in the County of North Yorkshire together with the extended area of the County of North Yorkshire but more particularly those areas with a YO postcode, and the nation at large, whatever of the English historical, architectural and constructional heritage may exist in and around the City of York together with the extended area of the County of North Yorkshire but more particularly those areas with a YO postcode aforesaid in the form of buildings (including any building defined in section 290(1) of the Town & Country Planning Act 1971) of particular beauty or historical or constructional interest.

The Charity Commission is considering a proposed amended statement of objects which trustees have submitted in the interests of providing a clearer picture as to the charity’s purpose and the public benefit it delivers. It is anticipated that this will be approved during 2022.

STRUCTURE

The Trust was incorporated by shares and registered as Ings Property Company Ltd in June 1945. Following reviews and amendments to the Articles of Association in April 1975, it became a registered charity from October of that year.

The directors of the charitable company are the trustees of the charity for the purpose of charity law. Throughout this report they are referred to as trustees.

Through our activities we aim to;

Be responsible custodians of a financially sustainable portfolio of significant historic buildings
Participate proactively in programmes that further the interests of built environment conservation in York
Pursue appropriate programmes of educational activity and public engagement with the conservation of our buildings

In determining our aims we have considered Charity Commission guidance on public benefit. We believe that by conserving and maintaining buildings of architectural & historic significance and making them available to the public through residential and commercial tenancies, we contribute to a community that values its history and takes pride in its future.

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ACTIVITIES & ACHIEVEMENTS

While continuing to take appropriate Covid related precautionary measures to minimise health risk for trustees, staff, tenants, trades contractors and other suppliers we have successfully progressed a number of work streams judged critical to the future sustainability of the Trust’s historic assets and conservation principles.

Strategic planning

Results from our buildings condition survey have proved the need to increase annual expenditures on repairs, maintenance and conservation overhauls of historic structures. To determine the optimum ways to achieve this we undertook a forward planning process commencing late 2020 which completed with trustees’ approval of the strategic plan in November 2021.

Michael Day MVO was invited to support our forward planning as an independent professional in the heritage assets field having extensive experience of working across a broad range of charitable organisations in both executive and non executive roles. Mr Day consulted all trustees on an individual basis, prepared a comprehensive ‘current position report’ that trustees fully endorsed and led a planning workshop for the Trust’s nominated strategy sub group comprising four trustees and three members of staff.

That sub group considered a broad range of horizon scanning data including a conservation time line illustrating how statutory protection of, and attitudes to, historic buildings have developed over two centuries; conservation principles; the property market in York; high street data; climate change; fund raising; charity investments and the Charity Governance Code. The group then developed a spectrum of planning scenarios which were informed by earlier work on a pyramid model of building types, long term cost of ownership and rents achievable.

The full board of trustees approved the strategy sub group’s recommended scenario the key features of which were;

Clearer articulation of public benefit, through the Trust’s articles of association and a more proactive public profile
Annual allocation of significantly more resource to buildings repair, maintenance, compliance and periodic conservation project overhauls
Disposal of buildings of lower significance, to fund increased expenditure on more important buildings over the next five years
Pursue opportunities for partnership arrangements that support the conservation overhaul of larger buildings such as Thomas Herbert House, much of which is currently unoccupiable
▪ Reduce bank lending
Secure grants and donations towards the costs of conservation projects from public bodies, charities and where appropriate private donors. Trustees do not currently intend to seek support from the general public through a fundraising campaign

York Theatre Royal

The theatre is one of the Trust’s most important buildings, historically and in terms of its communal value to the City of York, its residents and visitors. The investment we made in 2020 to facilitate regular statutory ceiling inspections by our occupier and partner York Citizens Theatre Trust is now bearing fruit. We remain responsible for the structure of this building while the theatre trust is responsible for interiors, fit out and equipment. Layer Nine, Opening Doors is a new joint project, planning for which started in 2021 with implementation scheduled over the next three years. The project includes both conservation works to the Tate Wilkinson building, an C18th townhouse with some C13th fabric that lies within the theatre company’s demised area, and a range of internal improvements designed to improve the accessibility of theatre facilities for show

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casts with mobility difficulties. Tate Wilkinson (1739 to 1803) was an actor and theatre manager who bought a royal patent for York’s theatre in 1769. Initial investigations for the Layer Nine, Opening Doors project revealed that we are also the proud custodian of a 1935 grade II listed K6 telephone box designed by Sir Giles Gilbert Scott; the project has been extended to include the conservation of this classic but now rare feature of our streetscapes and its continued beneficial use as a defibrillator point.

The Assembly Rooms

A very significant building and second in volume of public use and enjoyment, after York Theatre Royal. Occupier Ask Italian Restaurants offers a memorable family experience within the spaces created by Lord Burlington’s C18th version of an ancient Egyptian Hall. Opened during race week in 1732 the building marked the first application of Palladian style in the UK and became the model for formal reception rooms throughout the country. In the first Covid lockdown, when all restaurants were forced to close, we took the opportunity to undertake a scheme of conservation works to the Rotunda Dome. Over the last year we continued ceiling repair works to bring the Gentlemen’s Retiring Room back into use. We also prepared, in house, a full and detailed schedule for a programme of roof works over the next four years and secured an unconditional listed building consent for these.

45 Goodramgate

A long standing occupier of this building retired during the year having run a popular restaurant in this timber framed property for over twenty five years. We took the opportunity of a subsequent vacant period to undertake a short programme of works to prepare the premises for the next occupier who, coincidentally had worked for the retiree in the same building over ten years ago. Our works drew a strategic line between conservation and compliance of the building and specialist restaurant kitchen fit out which we obliged the new occupier to be responsible for; that fit out is subject to listed building consent and we have sought to provide the incoming tenant with appropriate advice and guidance. This project raised a number of long term considerations about matching various lease types to likely future conservation requirements of historic buildings. We are currently planning a major overhaul of another timber framed building in the centre of York and have related challenges to deal with on that project.

Supporting Conservation

During the year we continued to support the development of skills in building conservation through the York Consortium for Conservation & Craftmanship annual bursary programme. Three students were assisted in 2021; Oliver Barton a joiner who secured a William Morris Craft Fellowship with the Society for the Protection of Ancient Buildings; Victoria Hellewell a carpenter / conservator undertaking a conservation studies MA at the University of York; Eugenia Mompo, a conservation architect who took a specialist course in Hygrothermal Risk Assessment at the Dublin School of Architecture. Over the next three years we will consider supporting an appropriate apprenticeship programme. During 2021 we also awarded a dissertation prize to Emily Kostanecki an MA conservation student at the University of York’s Department of Archaeology for her work on the challenges of adaptive reuse of the bars of York City Walls.

Condition surveys

Condition surveys commenced in 2018 with a scoping, rapid assessment of all properties to establish priorities for the full survey programme. We selected those buildings likely to be in greatest need of remedial conservation works for detailed survey during the early years of the programme. We are now approximately 30% through all surveys and the resulting schedules of remedial work were an important consideration during the 2021 forward planning process. We were very pleased to involve MA students at the University of York in the early scoping study and jointly funded a professional conservation surveyor to lead that project. The detailed surveys are

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undertaken by experienced surveyors largely through smaller conservation firms on our panel of professional consultants. We are targeting six detailed surveys a year with the intention of undertaking the resulting schedules of work within a two or three year period of each completed survey.

Buildings compliance

Despite complications arising from Covid we have made progress over the year in improving both our properties and processes across all areas of compliance; fire risk & safety, gas safety, electrical safety, energy performance, asbestos and legionnaires disease; we brought in additional expertise to accelerate our programme of improvement. On the residential side, compliance overhauls of any significance require the property to be empty and when a tenancy ends we do not relet until the necessary work can be specified, contracted for, professionally supervised and completed to appropriate standards. Commercial occupiers are responsible for their own annual fire risk assessments but some smaller businesses have struggled to carry these out to consistent or adequate standards. During the year we supported such businesses to improve their assessments and have now have in place a disciplined approach to monitor these year on year.

Climate change

The Trust is determined to make a tangible contribution to the national discourse on historic buildings and carbon consumption; leading on this is Conservation Architect, Guy Bowyer. Listed buildings in England represent around 1.4% of total building stock so their role in meeting UK carbon targets is limited but inaction risks creating a problematic legacy with future generations’ attitudes towards the historic built environment turning negative. To maintain historic buildings’ relevance and future viability, conservation interests must be proactive and York’s 2,000 listed properties within a resident population of 210,000 offer many opportunities for exemplar projects not least because York’s high proportion of Grade I and Grade II* listed buildings account for the top 8% of the most important buildings in England. Good conservation is the process of sensitive change management and changes are certainly required in this area. During the year we undertook masonry repairs, timber frame repairs and replaced external lime render at 60 Goodramgate; we also secured listed building consent for our first air source heat pump in a concealed location at this property. Over the coming year we plan to complete works at 60 Goodramgate with internal fit out with a range of carbon consumption reduction measures, including breathable roof insulation, internal insulating lime plasters, conservation draft proofing to windows and doors and installation of the air source heat pump system.

Disposals

Following a competitive bid process managed by an independent, professionally qualified surveyor, we agreed heads of terms for the sale of two properties during the last month of the year and a third during May 2022. These are our current office building at 92 Micklegate, 4 Walmgate comprising a shop with two flats above and a mixed use group of buildings and land in St Saviour’s Place. In all cases the highest offer was preferred, though one was subsequently withdrawn and a lower offer accepted. Completion of all three transactions is expected during the first half of 2022/23. Net sales proceeds of these properties will significantly exceed the value at which they have been held in our fixed asset register.

As part of the sales agreement our office is to remain at 92 Micklegate until March 2023 under the terms of a lease with the new freeholder. We then plan to move to one of our existing historic buildings, De Grey House, which had previously been occupied as a whole by York Citizens Theatre Trust. We intend to occupy a relatively small area of that building and will let others to a range of businesses through leases and shorter term licences with some rooms allocated for hire by the day.

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Developing our organisation

We have continued to take every practical opportunity to develop our team, its experience and skills across both staff and trustees. Last year’s roll out of the trustee IT project facilitates focussed weekly updates on headline financials, the conservation work itself and the Trust’s evolving relationships with other organisations in the heritage and conservation sectors. Advantage has been taken of one positive outcome of Covid, namely ready availability of free online webinars by reputable professional firms active in the charity sector. The IT project has also made substantial improvements in the ready availability of information to the board of trustees. Minutes and board papers from inception in 1945 to the most recent discussion or formal meeting are readily available online to assist trustees in the execution of their responsibilities.

We are proud to be part of an active conservation community and the team in York continues to expand its knowledge of and approach to both conservation and the evolving business of conservation across its many dimensions. We learn from other projects, specialist trades, professional contacts and experienced contractors and are considering ways in which additional skills and experience can be introduced to the charity in a non executive capacity.

We resist the temptation to be first adopters, in the field of climate change particularly, because too early a full commitment to any particular solution is inherently risky. We prefer to learn incrementally and make judgements based on direct experience with the historic structures that are our principal asset and cause.

FUTURE PLANS

We are fully focussed on implementing the strategic plan of November 2021 which commits considerably more resource to maintenance, repairs and periodic overhaul of the most important historic buildings in our portfolio; also to reducing bank debt and developing a clearer public benefit profile that will assist future applications for grants and donations towards the cost of conservation works. In the short term a number of lesser properties are to be sold to release resource for those of more conservation significance.

The Charity is considering ways in which its governance model should develop to ensure that the board of trustees has relevant skills and experience available to it; trustees are mindful that the landscape of building conservation is dynamic with both demands and opportunities changing over time. Trustees have considered the merits of securing alternative future income streams and resolved to keep options for that under review.

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YORK CONSERVATION TRUST LIMITED

FINANCIAL REVIEW

In our financial statements we account for heritage assets at purchase cost together with any restoration or building costs identified prior to first let, subject to a cap of market valuation on completion of this work. One impact of our method of accounting for our heritage properties is that their market value is considerably in excess of the figure shown in the financial statements. In view of the particular nature of the Charitable Company's heritage properties, we are not able to give a realistic estimate of that value. However, the total value of the heritage properties for insurance purposes as at 20 March 2022 was £134m (2021 £124m), and the total sum insured was £165m (2021 £149m).

Over the year we returned a net surplus of £463k (2021: £422k) before gains/losses on investments and investment gains of £292k (2021: £146k).

While we recognise this was a healthy surplus, we are also conscious of the material demands we face for ongoing conservation works on some of our larger heritage properties which are not financially self-sustaining. Going forward we cannot be complacent about our financial strength.

At the year end our reserves were £28.1m (2021: £27.3m).

Investment powers and policy

Our investment powers and policy are governed by the Articles of Association which permit funds to be deposited or invested.

Traditionally we have invested through property, enabling us to take advantage of our specialist knowledge of the lettings market. We own 15 residential units and furnished guest letting units within our investment property portfolio with a combined value of £3.7m (2021: £3.4m). We manage all the residential units ourselves. We also hold £100k on short term deposit (2021: £100k).

Reserves policy

Our aim is that our income, obtained primarily from property rents and furnished guest lettings, should be sufficient to cover the routine maintenance of our properties, our overheads and our debt servicing requirements.

Nevertheless, we recognise that there will be times when our cash outflows exceed our cash inflows. For example, we had an unexpected drop in our property rental income and furnished guest lets resulting from Covid 19. Similarly, we occasionally experience unexpected calls on our funds due to unforeseen and complex emergency repairs to our heritage properties and unanticipated operational costs that may arise if a member of staff takes sick leave.

We consider that the Trust should maintain sufficient reserves as will allow the Trust to ride out these unexpected variances in income and expenditure. Our view is that a free cash reserve of £100k should provide sufficient cover against such contingencies until the Trust is able to reorganise its finances, if necessary, by selling one or more of its properties.

In addition, we recognise that, due to the particularly demanding conservation requirements of some of the heritage properties the Trust owns, we will need to finance, on an ongoing basis, material programmes of work that cannot be met by future income alone. Our expectation is that such excess costs may exceed £1m per annum for at least the next five years. Given that scale of expenditure it is unrealistic to expect to meet it out of our free cash reserves. To this end, such expenditure will be put on hold except to the extent that the Trust has surplus funds, can raise grant funding or finance is available via bank loans and overdrafts which can be serviced within our means.

The balance held as unrestricted funds as at 31 March 2022 was £28.1m (2021: £27.3m). This figure reflected all known liabilities as at the balance sheet date and there are no material uncertainties. This sum comprised of assets totalling £32.9m (2021: £32.4m) and creditors totalling £4.8m

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(2021: £5.1). Of the assets, £560k (2021: £331k) was held as free reserves. Of these free reserves, £81k (2021: £212k) was committed to material conservation projects.

Going concern

We recognise then when preparing our financial statements on a going concern basis, we must make our own assessment of the Trust’s ability to continue as a going concern to assure ourselves of the validity of this assumption. Such an assessment is part of our ongoing oversight process that takes place throughout the year. To this end, we have adopted a robust reserves policy which we carefully monitor. We also expect that, in addition to its routine reporting to the board on income and expenditure, our management team will provide us with projected cashflow and any other relevant information about the future which covers at least the next 24 months.

Over the next few years we face significant costs associated with our required programme of conservation works. To the extent that these exceed our projected income from rents, we have put in place a timetable for the disposal of some properties of lesser conservation significance, some of which we anticipate selling in the next financial year. These sales, combined with our existing cash reserves, give us confidence in the Trust’s ability to continue as a going concern beyond the next 12 months.

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GOVERNANCE & MANAGEMENT

Appointment & recruitment of trustees

The directors of the charitable company are the trustees of the charity so conditions regarding appointments as set out in the written resolution apply to both. Members of the company are eligible to hold office as a trustee / director but a person may be appointed subject to becoming a member within two months of that appointment. Any person so appointed may act as a director pending becoming a member. Directors must be at least eighteen years of age as at the date of appointment. Each trustee / director can hold office for a term of three years following which they must retire but may offer themselves for reappointment. The maximum number of directors of the company is twelve and the minimum three.

Trustees give their time and expertise on a wholly voluntary basis and receive no benefits from the Trust other than personal satisfaction from the public benefit achieved through its areas of activity.

Details of reimbursed expenses incurred by trustees in the course of fulfilling their duties are set out in note 17 to the financial statements.

All trustees are related directly or indirectly to the founders though this is not an eligibility requirement.

Members

No dividend or any other form of distribution has been or will be declared or paid on any or all of the shares of the company. If on winding up or dissolution there remains, after satisfaction of all liabilities, any property whatsoever, it will be given or transferred to a charitable institution, or institutions, having objects similar to the objects of the company. Under no circumstance can or will, property be given or distributed to the members of the company.

Trustees’ induction & training

Prior to and following appointment, trustees are familiarised with the objects, policies and processes of the Trust including their responsibilities in respect of both company and charity compliance obligations. Trustees are encouraged to participate in relevant seminars / training sessions and to broaden their knowledge of conservation management in the historic built environment sector. They seek to learn from the experience of other heritage and conservation bodies and to contribute to the shared pool of knowledge and best practice.

Organisation

Trustees determine the policies of the Trust and delegate day to day management of both assets and activities to a chief executive officer who is also company secretary. The chief executive supports the trustees in establishing policy and the development of it over time. Trustees are kept regularly up to date by the chief executive and encouraged to discuss areas of both substance and general interest in between formal meetings through a Teams platform put in place during the Covid-19 lockdown period. Board decisions are made on the basis of a simple majority. If a majority cannot be established then the chair has a second and casting vote.

Staff remuneration

Trustees’ review staff remuneration annually on the basis of individual and collective contributions to the objects and work of the Trust. An appraisal system has been established to assess staff contribution and performance in respect of specific personal goals that are set out on an annual basis.

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Risk management

Trustees are responsible for the management of the risks faced by the Trust. We have a formal risk management process to assess business risks and implement risk management strategies. This involves identifying the types of risks we face, categorising them in terms of potential impact and likelihood of occurrence, and identifying means of mitigating the risks. Our findings are documented in a formal risk register which is updated at least annually. This year we have established a trustee risk committee to oversee this process. We recognise, however, that we can only manage risk, we cannot eliminate it.

We consider that the principal risk to the Trust is that of not doing justice, with limited reserves, in fulfilling our charitable objects. Failure to take full advantage of the opportunities afforded to us would be damaging to our potential beneficiaries and our reputation would be put at risk. To mitigate this risk we periodically carry out a strategic review which allows us to evaluate our current position and work through change by focusing on the big external and internal challenges. The latest strategic review was completed in November 2021.

We also face financial risk due to the complex and extensive restoration demands of some of our bigger properties which effectively mean they cannot be self-financing and require subsidy. To mitigate this risk, we look for grant funding where appropriate and maintain strict financial control over other areas of our work to free up funds.

Internal controls are reviewed on an ongoing basis as part of the day-to-day risk management process within the Trust.

Conflicts of interest & related party transactions

The Trust has a conflict of interest policy which is written into our Trust deed and applies to all trustees and staff members. Related party transactions are disclosed in note 17 to the financial statements.

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STATEMENT OF TRUSTEES’ RESPONSIBILITIES IN RESPECT OF THE TRUSTEES’ ANNUAL REPORT AND THE FINANCIAL STATEMENTS

The trustees (who are also directors of York Conservation Trust Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

Select suitable accounting policies and then apply them consistently
Observe the methods and principles in the Charities SORP 2019 (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
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation

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

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.

Disclosure of information to the auditors

We, the directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that;

There is no relevant audit information of which the company’s auditors are unaware
We have taken all the steps that we ought to have taken as directors in order to make ourselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information
Approved by trustees on 20 July 2022 and signed on their behalf by;

James R Morrell Chair of trustees

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REFERENCE & ADMINISTRATIVE INFORMATION

Company registration no	00395954
Charity registration no	504302
Registered office	92 Micklegate
	York
	YO1 6JX
Bankers	CAF Bank Ltd	Virgin Money UK plc
	25 Kings Hill Avenue	30 St Vincent Place
	Kings Hill	Glasgow
	West Malling	G1 2HL
	Kent
	ME19 4JQ
Deposit Holder	Epworth Investment
	9 Bonhill Street
	London
	EC2A 4PE
Solicitor	Drivers Solicitors	Hempsons
	56A Bootham	100 Wood Street
	York	London
	YO30 7XZ	EC2V 7AN
	Andrew Jackson Solicitors LLP
	Foss Islands House
	Foss Islands Road
	York
	YO31 7UJ
Auditor	BHP LLP
	Rievaulx House
	1 St Mary’s Court
	Blossom Street
	York
	YO24 1AH

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REFERENCE & ADMINISTRATIVE INFORMATION

Trustees	Charles H E Butler
	Patricia A Butler
	Vanessa R M Butler	Risk committee
	James R Morrell	Chair
	Jeremy S Morrell
	John B Morrell
	Margaret A Morrell
	Nicholas C Morrell	Risk committee
	Olivia H Morrell
	Peter S Morrell
	Ruth I Morrell	Risk committee
Staff	Guy F J Bowyer	Conservation architect
	Jonathan A Bryant	Secretary / chief executive
	Richard T Fearnley	Assistant building manager
	Tony S Leonard	Buildings manager
	Lizzie C Taylor	Operations manager
	Jackie L Turpin	Finance manager

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS & TRUSTEES OF YORK CONSERVATION TRUST LIMITED

Opinion

We have audited the financial statements of York Conservation Trust Limited (the ‘charitable company’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of 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 2021, 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

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 the financial statements section of our report. We are independent of the charitable company 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 charitable 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 trustees 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 trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the trustees’ annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. If,

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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.

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' report (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors’ report has 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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires 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 directors’ 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’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 12, 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

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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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YORK CONSERVATION TRUST LIMITED

misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the charitable company through discussions with management and trustees, and from our knowledge and experience of this organisation;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charitable company, including the Charities Act 2011, the Companies Act 2006, data protection, health & safety, building regulations and employment law;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and trustees;
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit of the charitable company.

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

making enquiries of management and trustees as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risks of fraud through management bias and override controls, we:

performed analytical procedures to identify any unusual or unexpected variances;
tested journal entries to identify unusual transactions;
assessed whether judgments and assumptions made in determining the accounting estimates set out in note 1e were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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YORK CONSERVATION TRUST LIMITED

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-andguidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Descriptionof-auditors-responsibilities-for-audit.aspx.

This description forms part of our auditor’s report.

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. Our audit work has been undertaken so that we might state to the charitable company’s members those matters 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 anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Jane Marshall (Senior statutory auditor), for and on behalf of

BHP LLP Chartered Accountants, Statutory Auditor Rievaulx House 1 St Mary's Court Blossom Street York YO24 1AH 22 July 2022

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YORK CONSERVATION TRUST LIMITED

STATEMENT OF FINANCIAL ACTIVITIES AND INCOME & EXPENDITURE ACCOUNT FOR YEAR ENDED 31 MARCH 2022

Note Income from: Donations & legacies 2 Charitable activities 2 Other trading activity 2 Investments 2 Other 2 Total income Expenditure on: Raising funds 3 Charitable activities 3 Total expenditure Net income/ (expenditure) before gains on investments 5 Gains on investments Net income / (expenditure) Transfers between funds 15 Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward	Unrestricted undesignated £ 160 2,145,279 - 141,427 61,686 2,348,552 121,953 1,660,590 1,782,543 566,009 292,520 858,529 (408,493) 450,036 4,620,249 5,070,285	Unrestricted designated £ - - - - - - - 102,617 102,617 (102,617) - (102,617) 408,493 305,876 22,697,498 23,003,374	Restricted £ - - - - - - - 469 469 (469) - (469) - (469) 5,874 5,405	Total funds 2022 £ 160 2,145,279 - 141,427 61,686 2,348,552 121,953 1,763,676 1,885,629 462,923 292,520 755,443 - 755,443 27,323,621 28,079,064	Total funds 2021 £ 158,125 1,725,619 554 114,725 66,951
					2,065,974
					31,611 1,612,671
					1,644,282
					421,692 145,986
					567,678 -
					567,678 26,755,943
					27,323,621

The statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 22 to 35 form part of these financial statements.

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YORK CONSERVATION TRUST LIMITED

BALANCE SHEET AS AT 31 MARCH 2022

Note Fixed assets Heritage assets 7 Tangible assets 8 Investment assets 9 Current assets Debtors 10 Short term deposits Cash at bank and in hand 11 Creditors Amounts falling due within one year 12 Net Current Assets Total assets less current liabilities Creditors Amounts falling due after more than one year 13 Total net assets Capital and reserves Share capital 14 Unrestricted designated fund 15 Unrestricted revaluation reserve 15 Unrestricted income and expenditure account 15 Restricted funds 15	2022 £ 567,922 100,000 893,130 1,561,052 1,185,523	2022 £ 27,037,398 627,388 3,678,520 31,343,306 375,529 31,718,835 3,639,771 28,079,064 130,000 23,003,374 2,394,135 2,546,150 5,405 28,079,064	2021 £ 648,021 100,000 545,265 1,293,286 1,136,688	2021 £ 27,045,398 690,645 3,386,000
				31,122,043 156,598
				31,278,641 3,955,020
				27,323,621
				130,000 22,697,498 2,101,615 2,388,634 5,874
				27,323,621

The financial statements were authorised for issue and approved by the board on 22 July 2022 and signed on its behalf by:

James R Morrell Director & trustee

Ruth I Morrell Director & trustee

The notes on pages 22 to 35 form part of these financial statements.

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YORK CONSERVATION TRUST LIMITED

STATEMENT OF CASH FLOWS AS AT MARCH 2022

Notes Cash flows from operating activities Net cash provided by operating activities 16 Cash flows from investing activities Net rents and interest from investments 2 Purchase of property, plant and equipment 8 Net cash provided by investing activities Cash flows from financing activities Repayments of borrowing Net cash provided by financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period 11	2022 £ 517,326 141,427 (4,771) 136,656 (306,117) (306,117) 347,865 545,265 893,130	2021 £ 308,398
		114,725 (15,053)
		99,672
		(1,197,180)
		(1,197,180)
		(789,110) 1,334,375
		545,265

Charity law requires separate administration of the cash flows of endowed and other restricted funds of the charity. This constraint has not adversely affected the cash flows stated above.

The notes on pages 22 to 35 form part of these financial statements.

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YORK CONSERVATION TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES

a. Organisation address and country of registration

York Conservation Trust Limited is a company limited by shares (00395954) registered in England and Wales, and a registered charity (504302). The address of the registered office and principal place of business is 92 Micklegate, York, YO1 6JX. In these notes to the financial statements, the charitable company is referred to as the charity.

b. 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 issued in October 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

c. Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

d. Going concern

We consider that there are no material uncertainties about the charity’s ability to continue as a going concern and therefore it is appropriate to prepare the financial statements on a going concern basis.

Our long term loan facilities are renewed annually. We are not aware of any circumstances which might adversely affect the renewal of these facilities.

We have considered the impact of Covid 19 and forecast that any effect on rental income can be mitigated by managing expenditure and, if necessary, drawing on reserves.

e. Key judgments and estimates

In applying the financial reporting framework, we have made some subjective judgments, for example in respect of significant accounting estimates. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of estimation means the actual outcomes could differ from those estimates. Any significant estimates or judgments affecting these financial statements are detailed within the relevant accounting policy below.

Key judgments that the charity has made which have a significant impact on the financial statements include the valuation of heritage properties at cost together with any restoration or building costs identified prior to first let, subject to a cap of market valuation on completion of this work. We consider that this approach is likely to significantly understate the market value of our property portfolio.

We do not consider that there are any other material sources of estimation uncertainty at the reporting date which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the reporting period.

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f. Income

Grants received for restoration work are matched against the project costs in the year that the expenditure is incurred. Retail, hospitality and leisure grants made available to the charity by the Government are recognised in the year to which the relief relates. All other income, including bank interest, is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured reliably. Rental income invoiced in the year to 31 March 2022 which relates to future periods has been deferred in the financial statements.

g. Expenditure
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
Raising funds: includes the direct costs relating to the rental of, and provision of furnished guest accommodation through, our investment properties together with an allocation of support costs including staff costs based on these direct costs and an allocation of loan interest based on the historical cost of our investment properties.
Charitable activities: includes the direct costs relating to the rental of, and provision of furnished guest accommodation through, our heritage properties together with an allocation of support costs including staff costs based on these direct costs and an allocation of loan interest based on the historical cost of our investment properties.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h. Allocation of support costs

Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit, governance, related legal and professional costs and Trust meetings together with an apportionment of overhead and support costs.

Governance costs and support costs have been allocated to raising funds and charitable activities in proportion to their related direct costs.

i. Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes the costs directly attributable to making the asset capable of operating as intended.

Generally depreciation is provided on all tangible fixed assets in use at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life as follows:

Plant and equipment: 5 years straight line
Fixtures and fittings: 5 years straight line

Due to their exceptional nature, the costs of refurbishing York Theatre Royal incurred in 2016 are being written off over 20 years straight line.

j. Heritage assets

The charity holds 78 freehold properties or groups of properties dating from the C14th. Details can be found on the Trust’s website www.yorkconservationtrust.org

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YORK CONSERVATION TRUST LIMITED

All properties are included at purchase cost together with any restoration or building costs identified prior to first let, subject to a cap of market valuation on completion of this work. Any further preservation costs are released through the Statement of Financial Activities when they are carried out.

Due to the historic nature of the land and buildings, they are deemed to have indefinite lives and therefore the charity values the assets at full cost with no depreciation.

The charity holds historic artefacts which were purchased with the Assembly Rooms. They were professionally valued on purchase. They are not depreciated because they are classified as heritage assets with indefinite lives.

k. Investments

All four investment properties are freehold. They comprise of 15 residential units and one unit which is used to provide serviced guest accommodation. They are included on the balance sheet at fair value (market value) at the balance sheet date. Valuations were originally carried out with a month of the 31 March 2021 year end by reputable local estate agents and these have been uplifted for inflation using the UK Land Registry House Price Index index. Gains and losses are reflected in the Statement of Financial Activities and allocated to the appropriate funds.

l. Impairment

Assets not measured at fair value are reviewed at the balance sheet date for any indication that the asset may be impaired. If such indication exists, the recoverable amount of the asset is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the Statement of Financial Activities unless the asset has been previously written down in value by an amount exceeding the current impairment estimate.

m. Debtors

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

n. Short term deposits, bank and cash in hand

Short term deposits represent amounts held on deposit with a maturity date of between three months and one year. Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity date of three months or less from the date of acquisition or opening of the deposit or similar account.

o. Creditors and provisions

Creditors and provisions are recognised where a 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.

p. Funds structure

Unrestricted funds are funds which are available for use or retention at our discretion in accordance with the charity’s objects. Designated funds represent the written down value of land and building less the outstanding loans charged on the properties and related creditors. Restricted funds are funds where the income can only be used for a specific purpose. The aim and use of each restricted fund is set out in the notes to the financial statements.

q. Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction date and subsequently measured at their settlement value except for bank loans which are subsequently measured at amortised cost using the effective interest method.

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YORK CONSERVATION TRUST LIMITED

r. Pension scheme

The charity operates a defined contribution pension scheme for all staff members. The assets of the scheme are invested and managed independently of the finances of the charity. The charge for pension costs represents the employer contributions payable by the charity in the period.

s. Taxation

The charity is considered to pass the tests set out in Schedule 6, Paragraph 1 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Part 11, Chapter 3 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income and gains are applied exclusively to charitable purposes.

t. Related party transactions

Transactions with related parties are disclosed in the notes to these financial statements. The Trust’s policy is for trustees, staff and advisors to declare an interest and exempt themselves from all relevant discussions and decisions which may involve a transaction with a related party or in which they may have a conflict of interest.

u. Employee benefits

When employees have rendered service to the charity, short term employee benefits to which the employees are entitled are recognised at the undisclosed amount expected to be paid in exchange for that service.

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YORK CONSERVATION TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022

2. INCOME AND ENDOWMENTS

Donations and legacies Grants - restricted Other donations Charitable activities Rental income Recharges Furnished guest accommodation Other trading activities Property management Investments Rental income Recharges Furnished guest accommodation Bank interest Other Grants: unrestricted – Covid 19 related funding Dilapidations Sundry income Total income	2022 £ - 160 160 1,911,141 83,614 150,524 2,145,279 - 102,659 38 38,151 579 141,427 42,668 18,731 287 61,686 2,348,552	2021 £ 136,651 21,474
		158,125
		1,686,130 10,308 29,181
		1,725,619

		554
		105,325 72 7,221 2,107
		114,725
		45,081 20,662 1,208
		66,951
		2,065,974

Other than the restricted grant income noted above, all the income was unrestricted.

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YORK CONSERVATION TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022

3. ANALYSIS OF EXPENDITURE

Cost of raising funds £ Charitable activities £ Governance costs £ Support costs £ Total 2022 £ Total 2021 £ 89,244 1,143,308 - - 1,223,038 820,605 - 469 - - 469 137,130 19,238 255,040 11,173 30,484 315,935 287,663 - 49.957 2,086 9,514 61,557 79,819 - - 10,575 - 10,575 9,975 - - 5,540 76,307 91,361 63,807	Cost of raising funds £ Charitable activities £ Governance costs £ Support costs £ Total 2022 £ Total 2021 £ 89,244 1,143,308 - - 1,223,038 820,605 - 469 - - 469 137,130 19,238 255,040 11,173 30,484 315,935 287,663 - 49.957 2,086 9,514 61,557 79,819 - - 10,575 - 10,575 9,975 - - 5,540 76,307 91,361 63,807	Cost of raising funds £ Charitable activities £ Governance costs £ Support costs £ Total 2022 £ Total 2021 £ 89,244 1,143,308 - - 1,223,038 820,605 - 469 - - 469 137,130 19,238 255,040 11,173 30,484 315,935 287,663 - 49.957 2,086 9,514 61,557 79,819 - - 10,575 - 10,575 9,975 - - 5,540 76,307 91,361 63,807	Cost of raising funds £ Charitable activities £ Governance costs £ Support costs £ Total 2022 £ Total 2021 £ 89,244 1,143,308 - - 1,223,038 820,605 - 469 - - 469 137,130 19,238 255,040 11,173 30,484 315,935 287,663 - 49.957 2,086 9,514 61,557 79,819 - - 10,575 - 10,575 9,975 - - 5,540 76,307 91,361 63,807	Cost of raising funds £ Charitable activities £ Governance costs £ Support costs £ Total 2022 £ Total 2021 £ 89,244 1,143,308 - - 1,223,038 820,605 - 469 - - 469 137,130 19,238 255,040 11,173 30,484 315,935 287,663 - 49.957 2,086 9,514 61,557 79,819 - - 10,575 - 10,575 9,975 - - 5,540 76,307 91,361 63,807
- 68,028 - 8,000 4,049 102,617	- - -	- 68,028 123,919 - 8,000 - - 106,666 121,364
112,531 1,627,419 29,374 116,305 1,885,629 1,644,282
7,397 106,977 1,931 (116,305)			-	-
119,928 1,734,396 31,305		- 1,885,629 1,644,282
2,025 29,280 (31,305) - - -
121,953 1,763,676	-	- 1,885,629 1,644,282
31,611 1,612,671 - - - 1,644,282

Cost of raising Funds £ Charitable activities £ Governance costs £ Support costs £ Total 2021 £ 17,501 803,104 - - 820,605 - 137,130 - - 137,130 4,973 228,179 11,284 43,227 287,663 741 72,434 - 6,644 79,819 - - 9,975 - 9,975 - - 1,367 62,440 63,807	Cost of raising Funds £ Charitable activities £ Governance costs £ Support costs £ Total 2021 £ 17,501 803,104 - - 820,605 - 137,130 - - 137,130 4,973 228,179 11,284 43,227 287,663 741 72,434 - 6,644 79,819 - - 9,975 - 9,975 - - 1,367 62,440 63,807	Cost of raising Funds £ Charitable activities £ Governance costs £ Support costs £ Total 2021 £ 17,501 803,104 - - 820,605 - 137,130 - - 137,130 4,973 228,179 11,284 43,227 287,663 741 72,434 - 6,644 79,819 - - 9,975 - 9,975 - - 1,367 62,440 63,807
- 123,919 5,518 115,846	- -	- 123,919 - 121,364
28,733 1,480,612 22,626 112,311 1,644,282
2,284 104,842 5,185 (112,311) -
31,017 1,585,454 27,811 594 27,217 (27,811)		- 1,644,282 - -

31,611 1,612,671	-	- 1,644,282

Other than the property management costs – restricted noted above, all the expenditure was unrestricted.

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YORK CONSERVATION TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022

4. STAFF COSTS

. STAFF COSTS
Total cost of all paid staff Gross salaries and wages Employer’s national insurance Employer’s pension contributions	2022 £ 270,793 25,171 19,971 315,935	2021 £ 252,987 16,800 17,876
		287,663

None of the trustees received any remuneration during either year.

One employee earned between £90,000 and £99,999 during the year (2021: one).

Average weekly number of employees during the year Administration Higher paid employees receiving benefits Accruing benefits under a money purchase pension scheme	2022 No 6 2022 No 1	2021 No 6 2021 No 1

The key management personnel of the charity are the chief executive officer, the conservation architect and the finance manager. The total employee emoluments, including employer’s national insurance and pension of the key management personnel were £211,910 (2021: £207,648).

5. NET INCOME

This is stated after charging Auditor’s remuneration	2022 £ 10,575	2021 £ 9,975

6. AUDITOR REMUNERATION

. AUDITOR REMUNERATION
Audit of the financial statements Other services	2022 £ 10,575 1,440 12,015	2021 £ 9,975
			-
		9,975

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YORK CONSERVATION TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022

7. HERITAGE FIXED ASSETS

. HERITAGE FIXED ASSETS
Cost or valuation 1 April 2021 Additions Disposals 31 March 2022 Impairment 1 April 2021 Provision for the year 31 March 2022 Net book values 31 March 2022 31 March 2021 Valuation Cost inc restoration charges and after impairment charge Total	Historic artefacts £ 82,870 - (8,000) 74,870 - - - 74,870 82,870 57,000 17,870 74,870	Freehold properties £ 27,782,141 - - 27,782,141 819,613 - £819,613 26,962,528 26,962,528 - 26,962,528 26,962,528	Total £ 27,865,011 - (8,000)
			27,857,011
			819,613 -
			£819,613
			27,037,398
			27,045,398
			57,000 26,980,398
			27,037,398

The charity owns 78 freehold properties or groups of properties of which there are 75 commercial units, 70 residential units, 5 furnished guest accommodation units, a mausoleum and an administrative unit with preservation and conservation interest dating from the C14th. Details of the properties can be found on our website www.yorkconservationtrust.org

The Thompson Mausoleum was donated to the charity in 2010. Due to the nature of the property, it has been deemed to have no market value. The building was insured for £658k at the year end (2021: £582k).

The charity obtained historic artefacts with the purchase of the Assembly Rooms. The artefacts were professionally valued at £115,000 in 2003 as part of the purchase arrangement. Since then, a number of disposals have been made.

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YORK CONSERVATION TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022

Five year financial summary of heritage asset transactions

2021 £ - - - - - - - - -	2020 £ 380,999 - 380,999 - - - - - -	2019 £ 831,447 - 831,447 - - - - -	2018 £ 2,128,419 -	2018 £ 2,128,419 -
			2,128,419
			- 18,495
			18,495

- -	- -	- -		- -
-	-	-		-

8. TANGIBLE FIXED ASSETS

Cost 1 April 2021 Additions Disposals 31 March 2022 Depreciation 1 April 2021 Provision for the year Written off on disposals 31 March 2022 Net book values 31 March 2022 31 March 2021	Fixtures and fittings £ 921,825 - (13,427) 908,398 256,747 52,630 (13,427) 295,950 612,448 665,078	Plant and equipment £ 65,659 4,771 (34,962) 35,468 40,092 15,398 (34,962) 20,528 14,940 25,567	Total £ 987,484 4,771 (48,389)
			943,866
			296,839 68,028 (48,389)
			316,478
			627,388
			690,645

All fixed assets are used in the furtherance of the charity’s objectives.

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YORK CONSERVATION TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022

9. INVESTMENTS

At valuation 1 April 2021 Revaluation Additions Disposals 31 March 2022	Properties £ 3,386,000 292,520	Properties £ 3,386,000 292,520
		- -
	3,678,520

The investment properties include units at Malt Shovel Court, Morrell Cottages and Morrell Yard and Trinity Cottage.

The units at Malt Shovel Court, Morrell Cottages and Morrell Yard were valued by David Beattie MNAEA of Quantum Sales and Lettings as at 25 April 2021. Their combined value was £3.0m. Trinity Cottage was valued by Rosie Crux MRICS of Barry Crux and company as at 30 March 2021. Its value was £400k. These valuations were uplifted in line with the UK Land Registry UK House Price Index as at 31 March 2022. The combined historic cost of all the investment properties was £1.3 million.

10. DEBTORS

Amounts falling due within one year Rents Prepayments Accrued income	2022 £ 360,124 192,132 15,668 567,922	2021 £ 468,278 170,485 9,258
		648,021

11. ANALYSIS OF CASH AND CASH EQUIVALENTS

Cash In hand At bank	2022 £ - 893,130 893,130	2021 £ 3 545,262
		545,265

12. CREDITORS

Amounts falling due within one year Bank loans (secured) Rents received in advance Trade creditors Other taxes and social security costs Other creditors Pension contributions Accruals and deferred income	2022 £ 315,996 308,293 233,964 48,905 223,799 2,326 52,240 1,185,523	2021 £ 306,864 306,690 245,599 49,563 204,128 4,245 19,599
		1,136,688

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13. CREDITORS

Amounts falling due after more than one year Bank loans (secured)	2022 £ 3,639,771	2021 £ 3,955,020

The loans are secured on the properties 111 Walmgate, 56 Bootham, 66 Bootham, De Grey Rooms, De Grey House, Brereton Cottage, Brereton Corner, Brereton House, 1 Museum Street, The Assembly Rooms, 14/16 Lendal, 23 Stonegate, 13/14 Fossgate, Morrell Yard and 15/16 Fossgate. They are repayable as follows;

Bank loans repayable as follows Within one year More than one year but not more than two years More than two years but not more than five years More than five years	2022 £ 315,996 323,965 1,013,842 2,301,964 3,955,767	2021 £ 306,864 315,319 999,684 2,640,017 4,261,884

The loans represent 31% of the cost (heritage) or valuation (investment) of the properties against which they are charged (2021: 34%).

14. CALLED UP SHARE CAPITAL

Allotted, called up and fully paid 130,000 Ordinary shares of £1 each	2022 £ 130,000	2021 £ 130,000

15. FUNDS

Fund balances at 31 March 2022 are represented by

Unrestricted funds Designated funds Undesignated funds Restricted funds Thompson Mausoleum	Fixed assets £ 26,962,528 4,380,778 31,343,306 - 31,343,306	Current assets/ liabilities £ (319,383) 689,507 370,124 5,405 375,529	Long term liabilities £ (3,639,771) - (3,639,771) - (3,639,771)	2022 £ 23,003,374 5,070,285 28,073,659 5,405 28,079,064	2021 £ 22,697,498 4,620,249
					27,317,747 5,874
					27,323,621

und balances at 31 March 2021 are represented by Fixed assets Current assets/ liabilities Unrestricted funds £ £ Designated funds 26,962,528 (310,010) Undesignated funds 4,159,515 460,734 31,122,043 150,724 Restricted funds Thompson Mausoleum - 5,874 31,122,043 156,598	und balances at 31 March 2021 are represented by Fixed assets Current assets/ liabilities Unrestricted funds £ £ Designated funds 26,962,528 (310,010) Undesignated funds 4,159,515 460,734 31,122,043 150,724 Restricted funds Thompson Mausoleum - 5,874 31,122,043 156,598	2021 £ 22,697,498 4,620,249
Unrestricted funds Designated funds Undesignated funds Restricted funds Thompson Mausoleum	Fixed assets £ 26,962,528 4,159,515 31,122,043 - 31,122,043
		27,317,747 5,874
		27,323,621

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YORK CONSERVATION TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022

Designated funds at 31 March 2022 are represented by

Heritage assets	Balance at 1 April 2021 £ 22,697,498	Income / expenditure £ (102,617)	Transfer £ 408,493	Balance at 31 March 2022 £ 23,003,374

Designated funds at 31 March 2021 are represented by

Heritage assets	Balance at 1 April 2020 £ 21,500,234	Income / expenditure £ (115,846)	Transfer £ 1,313,110	Balance at 31 March 2021 £ 22,697,498

Undesignated funds at 31 March 2022 are represented by

Share capital Income & expenditure Revaluation reserve Undesignated assets	Balance at 1 April 2021 £ 130,000 2,388,634 2,101,615 4,620,249	Income/ expenditure £ - 566,009 292,520 858,529	Transfer £ - (408,493) - (408,493)	Balance a 31 March 2022 £ 130,000 2,546,150 2,394,135
				5,070,285

Undesignated funds at 31 March 2021 are represented by

Share capital Income & expenditure Revaluation reserve Undesignated assets	Balance at 1 April 2020 £ 130,000 3,163,727 1,955,629 5,249,356	Income/ expenditure £ - 538,017 145,986 684,002	Transfer £ - (1,313,110) - (1,313,110)	Balance at 31 March 2021 £ 130,000 2,388,634 2,101,615
				4,620,249

The undesignated fund has remained in credit throughout the year (2021: the fund remained in credit). During the year, £408,493 was transferred from undesignated funds to designated funds (2021: £1,313,110). This figure represents the balance of the purchase cost of the heritage properties and the draw down and repayment of loans.

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YORK CONSERVATION TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022

Restricted funds at 31 March 2022 are represented by

Balance at	Income	Expenditure	Transfers	Balance at
1 April 2021				1 April 2022
£ Thompson Mausoleum 5,874	£ -	£ 469	£ -	£ 5,405
estricted funds at 31 March 2021 are	represented by
Balance at	Income	Expenditure	Transfers	Balance
1 April 2020				1 April 2021
£ Thompson Mausoleum 6,353	£ -	£ (479)	£ -	£ 5,874
York Citizens Theatre Trust -	112,699	(112,699)	-	-
Historic England -	23,952	(23,952)	-	-
6,353	136,651	(137,130)	-	5,874

Restricted funds at 31 March 2021 are represented by

The charity took over the assets of the Thompson Mausoleum Limited in 2010. The balance of the monies received are to be spend on the upkeep of the Thompson Mausoleum, Little Ouseburn, Yorkshire.

16. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period Adjustments for: Depreciation charges Loss on disposal of assets Returns from investments and interest Decrease in debtors Increase / (decrease) in creditors Net cash provided by operating activities	2022 £ 462,923 68,028 8,000 (141,427) 80,099 39,703 517,326	2021 £ 421,691 123,919 - (114,725) 5,182 (127,669) 308,398

17. RELATED PARTY TRANSACTIONS

No remuneration was paid to any of the trustees in 2022 (2021: £0).

During the year, travel and subsistence totalling £5,150 (2021: £0) were reimbursed to eight (2021: none) trustees and catering costs of £1,880 (2021: £0) were met on their behalf.

The chief executive officer is a member of the key management personnel and rented a flat during the year. This was an arms length transaction at market value of £6,900 per annum (2021: £6,900).

Occasionally we rent our properties or make grants to organisations with which our trustees or staff members are involved or have connections to. This is not unexpected given the nature of the heritage properties which we own and that trustees and staff are expected to bring relevant experience in the specialist area in which we work. All such conflicts are declared and managed according to our Trust Deed and our conflict of interest policy.

During the year:

John Morrell (trustee) was a Vice President of York Civic Trust. York Conservation Trust owns Fairfax House which York Civic Trust rents from it. Fairfax House is a heritage property which is valued in York Conservation Trust’s financial statements at an original cost of £2,253,810. During the year, York Conservation Trust charged York Civic Trust rent of £22,500 (2021: £22,500) and recharged it insurance costs of £4,598 (2021: £0).

Page 34 of 35

YORK CONSERVATION TRUST LIMITED

A grant of £5,100 (2021: £5,000) was made to York Foundation for Conservation and Craftsmanship of which Jonathan Bryant, chief executive officer, is a trustee. He did not and will not participate in any decisions relating to the Trust’s funding of the organisation.

18. CAPITAL COMMITMENTS

Future capital commitments not otherwise included in these accounts Contracted for	2022 £ 81,175	2021 £ 212,000

19. VOLUNTEERS

We were extremely grateful to Kelly Storrer for her able assistance in helping us review our extensive historic records. During the year she was also supported by Ruth Morrell and Margaret Morrell (trustees) who offered administrative support in addition to their governance responsibilities. Volunteer support is invaluable and we plan to broaden the scope of volunteer involvement in future years.

20. CONTINGENT LIABILITY

A contingent liability exists in respect of restricted donations totalling £2,658,068 which were received from the Arts Council of England in 2015/16 and related to the refurbishment of York Theatre Royal which was subsequently completed. As a pre-requisite of the funding, a twenty year charge was put in place by the Arts Council. At the end of the period, the charge will be revoked provided certain conditions laid out by the Arts Council have been met.

21. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES AND INCOME & EXPENDITURE ACCOUNT

Income from Donations and legacies Charitable activities Other trading activities Investments Other Total income Expenditure on Raising funds Charitable activities Total expenditure Net income/(expenditure before gains on investments Gains on investments Net income/(expenditure) Transfers between funds Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward	Unrestricted Undesignated £ 21,474 1,725,619 554 114,725 66,951 1,929,323 31,611 1,359,695 1,391,306 538,017 145,986 684,003 (1,313,110) (629,107) 5,249,356 4,620,249	Unrestricted designated £ - - - - - - - 115,846 115,846 (115,846) - (115,846) 1,313,110 1,197,264 21,500,234 22,697,498	Restricted £ 136,651 - - - - 136,651 - 137,130 137,130 (479) - (479) (479) 6,353 5,874	Total funds 2021 £ 158,125 1,725,619 554 114,725 66,951
				2,065,974
				31,611 1612,671
				1,644,282
				421,692 145,986
				567,678 -
				567,678
				26,755,943
				27,323,621

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2022-03-31-accounts

ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

MESSAGE FROM OUR CHAIR

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022

OBJECTS

STRUCTURE

ACTIVITIES & ACHIEVEMENTS

Strategic planning

York Theatre Royal

YORK CONSERVATION TRUST LIMITED

The Assembly Rooms

45 Goodramgate

Supporting Conservation

Condition surveys

YORK CONSERVATION TRUST LIMITED

Buildings compliance

Climate change

Disposals

YORK CONSERVATION TRUST LIMITED

Developing our organisation

FUTURE PLANS

FINANCIAL REVIEW

Investment powers and policy

Reserves policy

YORK CONSERVATION TRUST LIMITED

Going concern

GOVERNANCE & MANAGEMENT

Appointment & recruitment of trustees

Members

Trustees’ induction & training

Organisation

Staff remuneration

YORK CONSERVATION TRUST LIMITED

Risk management

Conflicts of interest & related party transactions

STATEMENT OF TRUSTEES’ RESPONSIBILITIES IN RESPECT OF THE TRUSTEES’ ANNUAL REPORT AND THE FINANCIAL STATEMENTS

Disclosure of information to the auditors

REFERENCE & ADMINISTRATIVE INFORMATION

REFERENCE & ADMINISTRATIVE INFORMATION

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS & TRUSTEES OF YORK CONSERVATION TRUST LIMITED

Opinion

Basis for opinion

Conclusions relating to going concern

Other information

YORK CONSERVATION TRUST LIMITED

Opinions on other matters prescribed by the Companies Act 2006

Matters on which we are required to report by exception

Responsibilities of trustees

Auditor’s responsibilities for the audit of the financial statements

YORK CONSERVATION TRUST LIMITED

Use of our report

STATEMENT OF FINANCIAL ACTIVITIES AND INCOME & EXPENDITURE ACCOUNT FOR YEAR ENDED 31 MARCH 2022

BALANCE SHEET AS AT 31 MARCH 2022

YORK CONSERVATION TRUST LIMITED

STATEMENT OF CASH FLOWS AS AT MARCH 2022

1. ACCOUNTING POLICIES

a. Organisation address and country of registration

b. Basis of preparation

c. Public benefit entity

d. Going concern

e. Key judgments and estimates

YORK CONSERVATION TRUST LIMITED

h. Allocation of support costs

YORK CONSERVATION TRUST LIMITED

k. Investments

l. Impairment

m. Debtors

n. Short term deposits, bank and cash in hand

o. Creditors and provisions

p. Funds structure

q. Financial instruments

r. Pension scheme

s. Taxation

t. Related party transactions

u. Employee benefits

YORK CONSERVATION TRUST LIMITED

2. INCOME AND ENDOWMENTS

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022

3. ANALYSIS OF EXPENDITURE

YORK CONSERVATION TRUST LIMITED