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2023-03-31-accounts

ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Registered Charity No 504302 Registered Company No 00395954

MESSAGE FROM OUR CHAIR

Welcome to the 2023 annual report of the trustees of York Conservation Trust. The Trust has always been committed to working with the historic buildings in York and the year has seen the continued progression of this aspiration.

Income from our heritage and investment assets has remained steady and on target throughout the year which has been buoyed by a focus on improving rental income. This has been offset to an extent with an increasing number of vacant properties, particularly in the residential sector, due to properties awaiting refurbishment when funding becomes available.

There has been a continued programme of building condition surveys across the portfolio which enables us to better understand and budget for the conservation work involved to bring the property to the required standard. The necessary expenditure will be met in part with the sale of some targeted property as our rental income is not sufficient to meet the demands presented by the condition surveys. Disposal activity began and will continue over the next period which is aligned to the strategic plan approved by the Trustees. In addition, we are looking at alternative income streams, which to date the Trust has not considered, including fundraising and/or grants.

Since the Trust was founded all members of the Board of Trustees have been related to the founders and now the decision has been made to look externally for new trustees with related experience in, but not limited to, conservation, finance, fundraising and commercial property. This should broaden the experience and knowledge base of the Trustees, taking the Trust forward for what is its next chapter. The Trustees would also like to extend their thanks to John Bowes Morrell who is a grandson and namesake of the founder, who joined the Board of Directors in 1979, serving as Chair from 2012 to 2020 prior to my own appointment. He resigned in 2022 to spend more time with his family and tend to his beloved garden.

Conservation projects of significance undertaken during the year included the Assembly Rooms which have had extensive repairs to the south anteroom including the roof which now allows the room to be used as a function room. Residential apartments on St Saviourgate have also been refurbished as part of a continuous scheme across the portfolio which results in improved rental demand and yield for such property. Finally, perhaps of most significance to the visual landscape of York are the repairs to De Grey Rooms and De Grey House for which the latter will be occupied as the head office for the Trust from May 2023. De Grey Rooms will also be occupied by St Michaels Le Belfrey while its own Anglican church is restored. It will also be available for community activity which the Trust believes is so important for these old and significant York buildings.

Finally, I would like to thank the staff for their continued efforts, diligence and determination in moving the Trust forward. We also say goodbye to our CEO Jonathan Bryant who will leave the Trust in 2023 after five years at the helm. The Trust has benefitted from his experience and leadership tremendously over this period and, in particular, we are grateful to him for navigating the Trust through the pandemic with a clear and steady hand in what was a very turbulent and uncertain time. We all wish him well in his future endeavours.

James Morrell, Chair, July 2023

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TRUSTEES ANNUAL REPORT FOR THE YEAR TO MARCH 2023

The trustees present their report and the audited financial statements of the charity for the year ended 31 March 2023. 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 applying 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

During the year the Charity Commission approved a proposed restatement of objects. This was considered necessary in the interests of clarity and to reflect the Trust’s broader public benefit work in the buildings conservation sector.

The restated objects are;

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, to engage the public in that activity and to promote the development of building conservation skills and knowledge.

In determining our aims we have considered Charity Commission guidance on public benefit. We believe that by conserving and maintaining buildings of

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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.

ACTIVITIES & ACHIEVEMENTS

Activities during the year focussed on three areas of achievement;

Safeguarding historic buildings

Phase I repairs to The Assembly Rooms’ roofs included recovering 20% of the external surface in natural Welsh slate, the conservation of internal ceiling plaster work in the south anteroom and removal of asbestos in associated voids. The opportunity was also taken to replace an adjacent valley gutter and main sump which had been prone to flooding particularly so in the heavier, flash rain storms that York experiences in today’s patterns of weather. Water damaged gypsum plaster was replaced with lath & lime plaster while new lime plaster to the anteroom semi-dome was hand run to ensure it precisely followed the original profile.

In the year we completed phase II repairs to premises at 23 Stonegate, the building most recently acquired (2018) and home to York Medical Society since 1944. The works comprised mostly external conservation repairs including windows, doors, masonry, render and rainwater goods; also upgrading of shared internal areas and fire doors. Phase III is planned for 2024.

Attention to important properties on St Saviourgate commenced in 2020 following the departure of a long term commercial tenant from No 31. A moderate programme of overhaul prepared the premises for re-letting but the intended tenant’s plans changed and not until 2022 was occupancy reestablished by leasing to The York Ghost Merchants for craft workshop, showroom and office purposes. This remarkable York business, its discretely positioned brand, use of space and internal decoration are ideally suited for this historic property.

A project at 29 St Saviourgate completed early April 2023. Following condition survey, this included minor external repairs, attention to shared areas and overhaul of apartment two at first floor level. Much of the improvement work focussed on compliance factors including fire door upgrades, new fire alarm system and complete rewiring of electrical distribution. This and a new scheme of decoration has made a huge improvement to what is now very presentable accommodation with good views of York Minister. It has let immediately for a 120% increase in rent. In our plan for the current year, we have a similar residential overhaul scheduled at adjacent 27 St Saviourgate.

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Our largest projects and financial commitment in the year were the phase I scheme of works at De Grey Buildings, St Leonard’s Place; these had been vacated by York Citizens’ Theatre Trust as its business model changed just before, and then again during the Covid pandemic. The theatre company remains occupier of our adjacent York Theatre Royal premises and has recently completed its own scheme of tenant improvements to the garden area between the theatre and De Grey House. Our scope of fabric repairs at the original town house embrace a strong commitment to our ‘war on woodchip’ in most public areas. Compliance related improvements have also featured prominently throughout the building which provides office accommodation and shared use space for our own small team, the Council for British Archaeology, rehearsal space for York Citizens’ Theatre Trust, meeting rooms for hire and three offices for flexible short term lets.

Adjacent De Grey Rooms and its two hundred capacity function room at first floor level has also been upgraded to accommodate the congregation of St Michael le Belfry while its church premises in the Minster Yard are undergoing a scheme of conservation and reordering over the next few years.

The exteriors of both De Grey House and De Grey Rooms have been painstakingly cleared of inappropriate modern alkyd paints, a process that revealed much about earlier colour schemes, and detailed consideration given to the colour of replacement breathable exterior finishing paint. White has been avoided; a warmer tone, with fawn highlight better reflects the original colour.

A surprise discovery in the main entrance hall of De Grey House, was an impressive though damaged inlaid linoleum floor of 1911; this had been hidden under layers of municipal carpet, it has been conserved and will serve the building well during the next phase of its life. We moved the Trust office to De Grey House at the end of May 2023.

One half of our conservation expenditure requires listed building consent and local authority resourcing issues now results in lengthening delays to securing these. York City Council has the equivalent of just two full time conservation officers which is insufficient for 2,000 listed buildings in the City. In response we are having to plan much further ahead than we would choose to given the limited resource available to us.

During the year we made significant progress towards full compliance of all occupiable property. Additional private rented sector regulations introduced in 2020 require EICR electrical certification in all residential properties though the immediate necessity was relaxed due to the Covid pandemic when access to people’s home became problematic. They are also required for commercial premises. Fire risk assessment is another crucial area for regular review and up to date documentation. Other mandatory considerations are gas safety certification, asbestos management and legionella disease preventative measures. Our approach to compliance and systems that support it are robust with policies for each of the key areas in final draft form.

Increasing capacity

During the year the decision was taken to appoint additional trustees with skills and experience relevant to the future work of the Trust. This is likely to require

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further amendments to the Articles of Association. A number of recruitment methods have been considered and the preferred plan is to be implemented over the next two years.

With the appointment of Richard Fearnley to the buildings team, 2022/23 was the first full year of a new staff structure planned to improve our ability to manage the portfolio of buildings, increase the volume of repairs, maintenance and conservation work undertaken and ensure these are executed to appropriate standards. As part of Richard’s induction he attended the 2022 Building Conservation Summer School at Cirencester’s Royal Agricultural University.

To fund higher expenditure on our most important buildings, some of less significance were sold during the year, four properties passing to new owners in two separate transactions. The new owner of our former office building at 92 Micklegate is planning to return the premises to its original residential use. Mixed use property at 11, 12 & 13 Saviour’s Place was sold to one purchaser who has invested in a programme of refurbishment which the buildings needed but was beyond the current resources of the Trust.

Trustees are considering the role that charity fund raising may have in its future operating model and a professional assessment of the potential is to be made. The results will inform decisions regarding the appointment of trustees with fund raising experience.

Two partnership projects requiring significant funding in due course are at an early planning stage with York Civic Trust and York Citizens’ Theatre Trust, at Fairfax House and York Theatre Royal respectively.

Fixing Fairfax is a long term plan covering both landlord responsibilities to the structure and tenant aspirations for improved facilities in future years. The starting point is the conservation management plan now at final draft stage and in a readily accessible format that will serve multiple uses as the project progresses.

Layer Nine ; Opening Doors similarly scopes out both landlord and tenant elements of a long term plan to safeguard the historic structures of the York Theatre Royal buildings and improve their accessibility for performers and audiences alike.

A feature common to both projects is the respective ability of both partner tenants to engage and deliver stimulating activity to diverse audiences. This is a standard condition of grant for many public and charitable sources of grant assistance.

Public engagement and the development of building conservation skills

Our redesigned website went live in December 2022. It features freshly commissioned photography and a broader approach to communications about the work we do, the buildings we care for, stories about them and the part they play in the history of the City. We are grateful to volunteer Peter Brown for his work on this project which included twenty-three property profiles at launch with another being added each month. In tandem with a ‘news and stories’ function of the website, Instagram and Facebook channels have been instigated to create more frequent and broader public interest.

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To support the development of building conservation skills, among young people particularly, the Trust provided a grant of £5,000 to York Foundation for Conservation and Craftsmanship which runs an annual bursary award scheme with an established process for promoting bursaries, assessing applications and making awards across a wide range of conservation interests. The Foundation invited trustee Ruth Morrell to join its assessment panel both to assist deliberations across all areas of conservation interest and to ensure the Trust’s grant was applied specifically to applicants engaged in historic building related conservation. Tom Bardwell, an architectural conservator was awarded £750 towards the cost of a specialist brickwork course; Steve Hogath, a qualified abseiler who intends to widen the range of conservation services he can offer by rope access was awarded £1,000 towards SPAB fellowship course fees; David McFerran a heritage carpenter and joiner was also given £1,000 toward SPAB fees; Bella Romaine, a plasterer and passionate advocate of lime plaster techniques, is undertaking an MSc in building conservation at the Weald & Downland Museum and received £1,000; Daahir Mohamed, also a lime plasterer undertaking a SPAB fellowship and was awarded £1,000 towards fees.

During the year we also awarded two dissertation prizes of £500 to students at the University of York’s Department of Archaeology, for submissions connected with historic buildings. One prize went to an undergraduate in support of course fees for continued study, the other to a student who has completed an MA in Historic Building Conservation. Allyson Butler won the MA student prize for Keeping up with the Wilkinsons: public and domestic spaces in the 18[th] century. Tate Wilkinson House is the grade II listed Georgian house within the demise of the Trust’s York Theatre Royal building, once home to the theatre manager and today providing office space for the current theatre company. William Plant won the other prize for his work on recommendations for conservation of a trackside building on the Pickering to Whitby line, now the North York Moors Railway.

FUTURE PLANS

As part of its long term sustainability planning, trustees are considering options for the future size and composition of its portfolio of historic buildings. Also, whether a ‘conservation fund’ would allow the Trust to pursue meaningful areas of public benefit in the buildings conservation sector beyond the ownership of freehold assets.

With this in mind trustees have approved the acceleration of building condition survey work across the estate; outputs from the intended fundraising study will help inform those decisions.

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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 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 2023 was £147m (2022 £134m) and the total sum insured was £180m (2022 £165m).

Over the year we returned a net surplus of £1.7m (2022: £463k) before investment gains of £163k (2021: £292k). The surplus was generated because we disposed of a number of properties including 92 Micklegate, 11-13 St Saviourgate and 64 Aldwark, all located in York. Without net gains on the disposals of these heritage properties of £2.0m, we would have returned a deficit of £(276)k.

While we recognise that we cannot keep generating deficits into the long term , 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 selfsustaining. Going forward we are not complacent about our financial strength.

The balance held as unrestricted funds as at 31 March 2023 was £29.9m (2022: £28.1m). This figure reflected all known liabilities as at the balance sheet date and there are no material uncertainties. This sum comprised assets totalling £33.9m (2022: £32.9m) and creditors totalling £4.0m (2022: £4.8m). Of the assets, £1.1m (2022: £560k) was held as free reserves. Of these free reserves, £518k (2022: £81k) was committed to material conservation projects.

Investment powers and policy

Our investment powers and policy are governed by the Articles of Association which permit funds to be deposited or invested. Decisions on our investment strategy and management are taken by the full board of trustees.

Our investments, and our approach to investment, are integral to supporting the Trust’s objects. We seek out investments which:

We hold the following types of investment:

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We manage risk in several ways:

At the year end, within our investment property portfolio we held 14 residential units and one furnished guest letting unit with a combined value of £3.8m (2022: £3.7m). We also held cash on deposit (including our working cash balance) of £2.4m (2022: £893k).

We review the performance of our investment properties on an annual basis to ensure that we are achieving returns in line with the market, allowing for the fact that we do not incur external management costs. In the year, we made a capital return on our investment properties of 4.5% (2022: 8.5%) and an income return of 2.1% (2022: 1.4%). We keep the interest rates achieved on our cash deposits under constant review to ensure that we achieve the best returns available subject to our investment criteria.

Reserves policy

Historically, our income has been obtained primarily from property rentals and furnished guest lets. In the past, our expectation has been that, in a typical year, our income will not only cover new property purchases and the routine maintenance of our properties and our overheads but also that it will contribute towards the demanding restorative requirements of some of our heritage properties.

However, as the challenges around conservation have increased over time along with related costs, it has become increasingly clear that that we cannot fund this work from operational income alone. In the short term we are plugging the gap through the sale of some of our properties but this approach is not sustainable in the long term. Therefore, to the extent that there is a deficit in the funding for our conservation work, we need to look for support from grant makers and donors, both alone and in partnership with other charities, to fund this work.

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Generally we can plan for a scheme of conservation works, addressing the specific financial challenges over time. To the extent that we anticipate a financial deviation between our aspirations and our ability to deliver on such works, they will be postponed until such time as we can afford to carry them out although, inevitably, there is a cost to such delays, either through lost income or additional expense.

In addition to planned deficits, we recognise that there will also be times when we are unexpectedly financially exposed in the short term, either because our income streams fall or our expenditure is higher than predicted. For example, we occasionally experience unexpected calls on our funds due to unforeseen and complex emergency repairs to our properties (which is in the nature of managing heritage properties).

We consider that the Trust should maintain sufficient reserves as will allow it to ride out these unexpected variances in income and expenditure. Our view is that a cash reserve of £200k should provide sufficient cover against such contingencies until the Trust is able to reorganise its finances.

Going concern

We recognise 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. If these sales are delayed, we will modify the timing of our programme of conservation works. This strategy, combined with our existing cash reserves, gives 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 resolutions 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 19 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 charitable 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

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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.

Risk management

Trustees are responsible for the management of the risks faced by the Trust. We have a formal risk management process to assess the risks and implement risk management strategies. This involves identifying the 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 two formal risk registers, a strategic risk register and an operational risk register, which are updated at least annually. A trustee risk committee oversees this process and makes recommendations to the board.

We recognise, however, that we can only manage risk, we cannot eliminate it. We consider that the two greatest risks currently facing us are:

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 the articles of association and applies to all trustees and staff members. Related party transactions are disclosed in note 19 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:

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:

James R Morrell, Chair of trustees

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REFERENCE & ADMINISTRATIVE INFORMATION

Company registration no 00395954
Charity registration no 504302
Registered office De Grey House
St Leonard’s Place
York
YO1 7HE
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
Solicitors 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 CONT’D

Trustees Charles H E Butler Appointments committee
Patricia A Butler
Vanessa R M Butler Risk committee
James R Morrell Chair & Appointments committee
Jeremy S Morrell
John Morrell (retired 1 June 2022)
Margaret A Morrell Appointments committee
Nicholas C Morrell Risk committee
Olivia H Morrell Appointments committee
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 2023 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:

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.

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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, 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:

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:

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

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

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

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

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.

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-andassurance/Standards-and-guidance/Standards-and-guidance-forauditors/Auditors-responsibilities-for-audit/Description-of-auditorsresponsibilities-for-audit.aspx.

This description forms part of our auditor’s report.

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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.

Laura Masheder (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

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STATEMENT OF FINANCIAL ACTIVITIES AND INCOME & EXPENDITURE ACCOUNT FOR YEAR ENDED MARCH 2023

Note
Income from
Donations & legacies
2
Charitable activities
2
Investments
2
Other
2
Net gains on disposal
of heritage assets
2
Total income
Expenditure on
Raising funds
3
Charitable activities
3
Total expenditure
Net income/
(expenditure) before
gains on investments
5
Gains on investments
9
Net income/
(expenditure)
Transfers between
funds
15
Net movement in
funds
Reconciliation of
funds
Total funds brought
forward
Total funds carried
forward		 Unrestricted
undesignated
£
40
2,218,839
179,328
42,033
1,973,594
4,413,834
71,162
2,514,143
2,585,305
1,828,529
162,684
1,991,213
(1,365,347)
625,866
5,070,285
5,696,151		 Unrestricted
designated
£
-
-
-
-
-
-
-
131,267
131,267
(131,267)
-
(131,267)
1,365,347
1,234,080
23,003,374
24,237,454		 Restricted
£
1,500
-
-
-
-
1,500
-
1,680
1,680
(180)
-
(180)
-
(180)
5,405
5,225		 Total funds
2023
£
1,540
2,218,839
179,328
42,033
1,973,594
4,415,334
71,162
2,647,090
2,718,252
1,697,082
162,684
1,859,766
-
1,859,766
28,079,064
29,938,830		 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

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

The notes on pages 24 to 40 form part of these financial statements.

21

BALANCE SHEET AS AT 31 MARCH 2023

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 fund
15
Unrestricted income and expenditure
account
15
Restricted funds
15		 2023
£
532,654
-
2,407,693
2,940,347
1,370,514		 2023
£
26,599,927
569,535
3,841,204
31,010,666
1,569,833
32,580,499
2,641,669
29,938,830
130,000
24,237,454
2,556,819
3,009,332
5,225
29,938,830		 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

The financial statements were authorised for issue and approved by the board on 21 July 2023 and signed on its behalf by

James R Morrell Ruth I Morrell Director & trustee Director & trustee

The notes on pages 24 to 40 form part of these financial statements.

22

STATEMENT OF CASH FLOWS AS AT MARCH 2023

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		 2023
£
83,910
179,328		 2022
£
517,326
141,427
(4,771)
Net proceeds from sale/(purchase) of fixed assets
7		 2,411,065
Net cash provided by investing activities
Cash flows from financing activities
Repayments of borrowings
13
Net cash provided by financing operations
Change in cash and cash equivalents in the reporting
period
11
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the reporting
period		 2,590,393
(1,159,740)
(1,159,740)
1,514,563
893,130
2,407,693		 136,656
(306,117)
(306,117)
347,865
545,265
893,130

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 24 to 40 form part of these financial statements.

23

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023 1 ACCOUNTING POLICIES

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 De Grey House, St Leonard’s Place, York, YO1 7HE. In these notes to the financial statements, the charitable company is referred to as the charity.

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

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.

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 below:

A key judgment which the charity has made that has a significant impact on the financial statements is the valuation of heritage properties. They are valued 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 heritage properties.

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 our assets and liabilities within the reporting period.

24

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023 1 ACCOUNTING POLICIES CONT’D

f. Income

Grants and other monies received for specific 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 2023 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:

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

h. Allocation of support costs

Staff costs have been apportioned between property management, governance and support costs based on staff time working in these areas. The split of property related staff costs between the cost of raising funds and charitable activities is allocated in proportion to their respective property management costs.

Support costs, primarily staff costs, office costs and general legal costs, have been allocated between the cost of raising funds, charitable activities and governance in proportion to their related costs.

Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include staff costs and other costs related to statutory audit, governance related legal costs and Trust meetings together with an apportionment of support costs. Governance costs have been allocated to raising funds and charitable activities in proportion to their related costs.

25

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023 1 ACCOUNTING POLICIES CONT’D

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:

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 71 freehold heritage properties dating from the C14th which are let commercially, residentially or as furnished guest accommodation.

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.

In addition, the Trust owns the Thompson Mausoleum, Little Ouseburn, North Yorkshire, which was donated to the charity in 2010.

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

Details of our heritage properties can be found on the Trust’s website www.yorkconservationtrust.org.

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 groups of our investment properties are freehold. They are let residentially or as furnished guest accommodation.

They are included on the balance sheet at fair value (market value) at the balance sheet date. Valuations were originally carried out within a month of the 31 March 2021 year end by reputable local estate agents and have subsequently been uplifted for inflation using the UK Land Registry House Price Index. Gains and losses are reflected in the Statement of Financial Activities and allocated to the appropriate funds.

Details of our investment properties can be found on the Trust’s website www.yorkconservationtrust.org.

26

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023 1 ACCOUNTING POLICIES CONT’D

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.

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.

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.

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 our heritage buildings less the outstanding loans charged on our properties and taken out to finance conservation works on our heritage properties, and related creditors, together with any material expenditure commitments at the year end. 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.

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.

27

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023 1 ACCOUNTING POLICIES CONT’D

r. Pension scheme

The charity contributes to defined contribution pension schemes on behalf of all staff members and operates an auto-enrolment scheme with NEST. The assets of the NEST scheme are invested and managed independently of the finances of the charity. The charge for pension costs included in the financial statements represents the employer contributions payable by the charity in the period.

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.

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.

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

28

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

2 INCOME AND ENDOWMENTS

Donations and legacies
Grants: restricted
Other donations
Charitable activities
Rental income
Recharges
Furnished guest accommodation
Investments
Rental income
Recharges
Furnished guest accommodation
Bank interest
Other
Grants: unrestricted (2022: Covid 19 related)
Dilapidations
Sundry income
Net gains on disposal of heritage assets (note 7)
Total income		 2023
£
1,500
40
1,540
1,975,328
101,220
142,291
2,218,839
108,007
-
33,138
38,183
179,328
5,000
36,800
233
42,033
1,973,594
4,415,334		 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

Other than the restricted grants in donations and legacies noted above, all the above income was unrestricted.

29

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

3 ANALYSIS OF EXPENDITURE

Current year

Expenditure
Property
management costs:
unrestricted
Property
management costs:
restricted
Staff costs
Legal and
professional fees
Auditor’s
remuneration
Office costs
Depreciation
Loss on disposal of
assets
Loan interest
Allocation of support
costs
Allocation of
governance costs
Total expenditure
2023
Total expenditure
2022		 Cost of
raising
funds
£
59,341
-
8,379
-
-
-
-
-
67,720
2,448
70,168
994
71,162
121,953		 Charitable
activities
£
2,015,026
1,680
284,729
28,531
-
-
57,853
-
131,267
2,519,086
91,044
2,610,130
36,960
2,647,090
1,763,676		 Governance
costs
£
-
-
11,906
2,022
12,885
9,817
-
-
-
36,630
1,324
37,954
(37,954)
-
-		 Support
costs
£
-
-
44,538
4,707
-
45,571
-
-
-
94,816
(94,816)
-
-
-
-		 Total 2023
£
2,074,367
1,680
349,552
35,260
12,885
55,388
57,853
-
131,267
2,718,252
-
2,718,252
-
2,718,252
-		 Total 2022
£
1,232,552
469
315,935
61,557
10,575
81,847
68,028
8,000
106,666
1,885,629
-
1,885,629
-
-
1,885,629

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

30

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023 3 ANALYSIS OF EXPENDITURE (CONT’D) Prior year

rior year
Expenditure
Property
management
costs:
unrestricted
Property
management
costs: restricted
Staff costs
Legal and
professional fees
Auditor’s
remuneration
Office costs
Depreciation
Gain on disposal
of assets
Loan interest
Allocation of
support costs
Allocation of
governance costs
Total
expenditure
2022		 Cost of
raising
funds
£
89,244
-
19,238
-
-
-
-
-
4,049
112,531
7,397
119,928
2,025
121,953		 Charitable
activities
£
1,143,308
469
255,040
49,957
-
-
68,028
8,000
102,617
1,627,419
106,977
1,734,396
29,280
1,763,676		 Governance
costs
£
-
-
11,173
2,086
10,575
5,540
-
-
-
29,374
1,931
31,305
(31,305)
-		 Support
costs
£
-
-
30,484
9,514
-
76,307
-
-
-
116,305
(116,305)
-
-
-		 Total 2022
£
1,232,552
469
315,935
61,557
10,575
81,847
68,028
8000
106,666
1,885,629
-
1,885,629
-
1,885,629

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

31

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

4 STAFF COSTS

STAFF COSTS
Total cost of all paid staff
Gross salaries and wages
Employer’s national insurance
Employer’s pension contributions		 2023
£
297,499
30,283
21,770
349,552		 2022
£
270,793
25,171
19,971
315,935

None of the trustees received any renumeration during the year (2022: none).

The average weekly number of employees during the year was six (2022: six). In both 2022 and 2023, all staff were employed in an administrative capacity.

During the year, one employee earned between £90,000 and £99,999 (2022; one) and one employee earned between £60,000 and £69,999 (2022: none).

Both higher paid employees accrued benefits under a money purchase scheme (2022: one). In the year, contributions under a money purchase scheme paid on behalf of higher paid employees totalled £13,584 (2022: £9,180).

The key management personnel of the charity are the chief executive officer, conservation architect, finance manager and operations manager. In 2022, only the chief executive officer, conservation architect and finance manager were included within this category. Total employee emoluments of the key management personnel, including employer’s national insurance and pensions, were £272,897 (2022: £211,910).

5 NET INCOME

5 NET INCOME
This is stated after charging
Auditor’s remuneration
6 AUDITOR REMUNERATION
Audit of the financial statements
Other services		 2023
£
12,855
2023
£
12,855
-
12,855		 2022
£
10,575
2022
£
10,575
1,440
12,015

32

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

7 HERITAGE FIXED ASSETS

Cost or valuation
1 April 2022
Additions
Disposals
31 March 2023
Impairment
1 April 2022
Additions
Disposals
31 March 2023
Net book values
31 March 2023
31 March 2022
Valuation
Cost including restoration charges and
after impairment charge
Total		 Historic
artefacts
£
74,870
-
-
74,870
-
-
-
-
74,870
74,870
57,000
17,870
74,870		 Freehold
properties
£
27,782,141
-
(437,471)
27,344,670
819,613
-
-
819.613
26,525,057
26,962,528
-
26,525,057
26,525,057		 Total
£
27,857,011
(437,471)		 Total
£
27,857,011
(437,471)
27,419,540
819,613
-
-
819,613
26,599,927
27,037,398
57,000
26,542,927
26,599,927

The charity owns 71 freehold heritage properties dating from the C14th and the Thompson Mausoleum, Little Ouseburn, North Yorkshire. All have conservation and preservation interest.

The heritage properties are let commercially, residentially or as furnished guest accommodation. The mausoleum was donated to the charity in 2010.

Due to the nature of the property, the Mausoleum is deemed to have no market value. The building was valued for insurance reinstatement purposes at £576k at the year-end (2022: £526k)

Details of these properties can be found at www.yorkconservationtrust.org

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

33

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

Five year financial summary of heritage asset transactions

Additions: purchases
and restoration
Properties
Artefacts
Total additions
Disposal costs
Properties
Artefacts
Total disposal costs
Disposals proceeds
Properties
Artefacts
Net total proceeds		 2023
£
-
437,431
-
437,431
2,411,025
-
1,973,594		 2022
£
-
-
-
8,000
8,000
-
-
-		 2021
£
-
-
-
-
-
-
-
-		 2020
£
380,999
-
380,999
-
-
-
-
-
-		 2019
£
831,447
-
831,447
-
-
-
-
-
-

8 FIXED ASSETS

FIXED ASSETS
Cost
1 April 2022
Additions
Disposals
31 March 2023
Depreciation
1 April 2022
Provision for the year
Disposals
31 March 2023
Net book values
31 March 2023
31 March 2022		 Fixtures and
fittings
£
908,398
-
(7,304)
901,094
295,950
52,457
(7,304)
341,103
559,991
612,448		 Plant and
equipment
£
35,468
-
-
35,468
20,528
5,396
-
25,924
9,544
14,940		 Total
£
943,866
-
(7,304)
936,562
316,478
57,853
(7,304)
367,027
569,535
627,388

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

34

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

9 INVESTMENTS

INVESTMENTS
At valuation
1 April 2022
Revaluation
Additions
Disposals
31 March 2023		 Properties
£
3,678,520
162,684
-
-
3,841,204

The Trust owns investment properties at Malt Shovel Court, Morrell Cottages and Morrell Yard, which are let residentially and Trinity Cottage which is let as furnished guest accommodation.

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 2023. Their combined historic cost was £1.3m.

10 DEBTORS

10 DEBTORS
2023
£
Amounts falling due within one year
Rent debtors
267,522
Prepayments
222,150
Accrued income
20,495
Other taxes
22,487
532,654
11 ANALYSIS OF CASH AND CASH EQUIVALENTS
2023
£
At bank
2,407,693
12 CREDITORS DUE WITHIN ONE YEAR
2023
£
Amounts falling due within one year
Bank loans (secured)
154,358
Rents received in advance
290,354
Trade creditors
584,378
Other taxes and social security costs
10.035
Other creditors
230,010
Pension contributions
1,725
Accruals and deferred income
99,654
1,370,514		 2022
£
360,124
192,132
15,666
-
567,922
2022
£
893,130
2022
£
315,996
308,293
233,964
48,905
223,799
2,326
52,240
1,185,523

35

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

13 CREDITORS DUE AFTER ONE YEAR

3 CREDITORS DUE AFTER ONE YEAR
2023
2022
£
£
Amounts falling due after more than one year
Bank loans (secured) 2,641,669
3,639,771

The loans are secured on the following properties: The Assembly Rooms, 56 Bootham, 66 Bootham, Brereton Corner, Brereton Cottage, Brereton House, De Grey House, De Grey Rooms, 13/14 Fossgate, 15/16 Fossgate, 14/16 Lendal, Morrell Yard, 1 Museum Street, 111 Walmgate. A loan secured on 23 Stonegate was repaid in the year. The loans 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
4 CALLED UP SHARE CAPITAL
Allotted, called up and fully paid
130,000 Ordinary Shares of £1 each		 2023
£
154,358
160,010
439,999
2,041,660
2,796,027
2023
£
130,000		 2022
£
315,996
323,965
1,013,842
2,301,964
3,955,767
2022
£
130,000

14 CALLED UP SHARE CAPITAL

15 FUNDS

Fund balances at 31 March 2023 are represented by

Unrestricted funds
Designated funds
Undesignated funds
Restricted funds
Thompson Mausoleum		 Fixed
assets
£
26,525,057
4,485,609
31,010,666
-
31,010,666		 Current
assets/
liabilities
£
354,066
1,210,542
1,564,608
5,225
1,569,833		 Long term
liabilities
£
(2,641,669)
-
(2,641,669)
-
(2,641,669)		 2023
£
24,237,454
5,696,151
29,933,605
5,225
29,938,830		 2022
£
23,003,374
5,070,285
28,073,659
5,405
28,079,064

36

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

15 FUNDS CONT’D

Fund balances at 31 March 2022 are represented by :

Unrestricted funds
Designated funds
Undesignated funds
Restricted funds
Thompson Mausoleum
Total disposal costs		 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

Designated funds at 31 March 2023 are represented by:

Balance at
1 April 2022		 Income/
expenditure		 Transfer
Balance at
31 March 2023
£ £ £
£
Heritage assets 23,003,374 (131,267)
1,365,347
24,237,454

Designated funds at 31 March 2022 are represented by:

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

Undesignated funds at 31 March 2023 are represented by:

Share capital
Income and
expenditure
Revaluation reserve
Undesignated assets		 Balance at
1 April 2022
£
130,000
2,546,150
2,394,135
5,070,285		 Net income/
(expenditure)
£
-
1,828,529
162,684
1,991,213		 Transfer
£
-
(1,365,347)
-
(1,365,347)		 Balance at 31
March 2023
£
130,000
3,009,332
2,556,819
5,696,151

37

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

15 FUNDS (CONT’D)

Undesignated funds at 31 March 2022 are represented by:

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

The undesignated fund has remained in credit throughout the year (2022: the fund remained in credit). During the year, £1,365,347 was transferred from undesignated funds to designated funds (2022: £408,493). This year-end balance on the designated funds represents the written down value of our heritage buildings less the outstanding loans charged on our properties and taken out to finance conservation works on our heritage properties, and related creditors, together with any material expenditure commitments at the year end.

Restricted funds at 31 March 2023 are represented by:

Thompson
Mausoleum
Lord Mayor’s Own
(York) Scout Group
Restricted funds		 Balance at
1 April 2022
£
5,405
-
5,405		 Income
£
-
1,500
1,500		 Expenditure
£
180
1,500
1,680		 Balance at
31 March 2023
£
5,225
-
5,225

Restricted funds at 31 March 2022 are represented by:

Thompson
Mausoleum		 Balance at
1 April 2021
£
5,874		 Income
£
-		 Expenditure
£
469		 Balance at
31 March 2022
£
5,405

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

During the year the charity received a donation £1,500 from the Lords Mayors Own (York) Scout Group towards the maintenance of the hedge and wall adjacent to the scout hut. The funds were fully spent in the year.

38

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

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

OPERATING ACTIVITIES
Net income for the reporting period
Adjustments for:
Depreciation charges
(Gain) / loss on disposal of assets
Returns from investments and interest
Decrease in debtors
Decrease in short term deposits
Increase in creditors
Net cash provided by operating activities		 2023
£
1,697,082
57,853
(1,973,594)
(179,328)
35,268
100,000
346,629
83,910		 2022
£
462,923
68,028
8,000
(141,427)
80,099
-
39,703
517,326

17 CAPITAL COMMITMENTS

Future capital commitments not otherwise included in these accounts:

2023 2023
2022
2022
£ £
Contracted for 518,475
81,175

18 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 Arts Council England. At the end of the period the charge will be revoked provided certain conditions laid out by the Arts Council have been met.

19 RELATED PARTY TRANSACTIONS

No remuneration was paid to any of the trustees in 2023 (2022: £0).

During the year, travel and subsistence totalling £3,194 (2022: £5,150) were reimbursed to seven (2022: eight) trustees and catering and travel costs of £3,019 (2022: £1,880) 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 (2022: £6,900).

Occasionally we rent our properties or make grants to organisations with which our trustees or staff members are involved or are connected 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 articles of association and conflict of interest policy.

39

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

19 RELATED PARTY TRANSACTIONS CONT’D During the year:

20 VOLUNTEERS

We welcome the invaluable support of volunteers and plan to broaden the scope of their involvement in future years . During the year Peter Brown made a valuable contribution to the web site project and Andrea Taffs assisted in archive work.

21 COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES AND INCOME & EXPENDITURE STATEMENT

Income from
Donations and legacies
Charitable 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)
Transfer between funds
Net movement in funds
Reconciliation of funds
Total funds brought
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		 Unrestricted
designated
£
-
-
-
-
-
-
102,617
102,617
(102,617)
-
(102,617)
408,493
305,876
22,697,498		 Restricted
£
-
-
-
-
-
-
469
469
(469)
-
(469)
-
(469)
5,874		 Total funds
2022
£
160
2,145,279
141,427
61,686
2,348,552
121,953
1,763,676
1,885,629
462,923
292,250
755,443
-
755,443
27,323,621

40