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2021-03-31-accounts

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Company registration number: 01444058 Charity registration number: 509133

TYNE AND WEAR BUILDING PRESERVATION TRUST LIMITED

(A company limited by guarantee)

Annual Report and Financial Statements

for the Year Ended 31 March 2021

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 7
Independent Auditors' Report 8 to 11
Statement of Financial Activities 12
Statement of Financial Activities 13
Balance Sheet 14
Statement of Cash Flows 15
Notes to the Financial Statements 16 to 36

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited Reference and Administrative Details

Trustees S Alexander
M Bozic
I M Burns
R D Clark
B L Clelland
J M Daniels
S Dyer
N A Hamza
M Murphy
K Sussams
J Thompson
M R Thompson
G Underwood
A M Watson
F A P Spaven (appointed 26 January 2021)
Secretary M Hulse
Key Management Personnel Martin Hulse,
Kari Vickers,
Principal Office John Marley Lodge
John Marley Centre
Muscott Grove
Newcastle Upon Tyne
NE15 6TT
Registered Office Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS
The charity is incorporated in England and Wales.
Company Registration Number 01444058
Charity Registration Number 509133
Solicitors Weightmans
1 St James Gate
Newcastle upon Tyne
NE1 4AD
Bankers Lloyds Bank plc
32 Gosforth Centre
Gosforth
Newcastle upon Tyne
NE3 1JZ
Auditor Ryecroft Glenton
Chartered Accountant and Statutory Auditor
32 Portland Terrace
NE2 1QP

1

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 March 2021.

Structure, governance and management

Nature of governing document

The company is limited by guarantee and its governing document is its Memorandum and Articles of Association, last amended on 5th November 1991. It is incorporated in England and Wales - number 01444058 and is also a registered charity - number 509133.

The members of the Council hold no shares in the company but each member is a guarantor of the company to an amount not exceeding £1 in the event of the company winding up.

Recruitment and appointment of trustees

The governing body of the Trust is a Council of Management which meets on a quarterly basis to decide overall financial and policy matters. The day to day issues are handled by the Secretary and Technical Advisor in consultation with the Chairman, Vice Chairman and Hon. Treasurer. Where more urgent matters require further and ongoing attention, then the Council of Management appoint a small working group of three to four members who take on board the matter and report back their findings.

New members of the Council of Management are elected by the established Council of Management or by the members of the Trust in General Meetings.

The Council of Management maintain a well mixed skill base of expertise and ensure that where members resign, suitable candidates are sought.

Induction and training of trustees

Most members are already familiar with the practical work and objectives of the charity bringing their own relevant and unique skills.

Members are actively encouraged to attend the regular Council of Management meetings to ensure that they are always up to date with the latest activities of the Trust.

Objectives and activities

Objects and aims

The Trust is governed by its constitution and its main objective is to preserve for the benefit of the public generally and especially for the inhabitants of the County of Tyne and Wear, buildings(including artefacts and land) which are of special historic, architectural, or townscape interest.

The preservation of some buildings is achieved by conversion to commercial use from which an income is derived.

Fundraising disclosures

The charity is required to report how it deals with fundraising from the public. The charity does not use a professional fundraiser or commercial participator to raise funds. Any monies raised direct from the public follows all guidelines set out by the Charity Commission and UK law in every respect. We respect the privacy and contact preferences of all public donors.

2

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Trustees' Report

Public benefit

The properties preserved by the trust with the regime of Tyne and Wear are for the benefit of the public generally. These preserves properties continue to provide the public with an insight into the specific historic, architectural or townscape interests that could otherwise be lost from the region. It is for these reasons that the trustees consider the charity provide a public benefit.

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Risk Management

The Council of Management have assessed the major risks to which the charity is exposed, in particular those relating to the operations and finances of the charity, and are satisfied that systems are in place to mitigate the exposure to the major risks.

3

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Trustees' Report

Achievements and performance

The year has been dominated by the sale of Alderman Fenwick’s House and the undertaking of the Phase 1 works at High St West Sunderland. TWBPT are also operating as one of four pilot Heritage Development Trusts (HDT) in England to promote increased activity in heritage regeneration. These achievements were all delivered during the Covid 19 crisis.

Alderman Fenwick’s in Newcastle was an early project for the Trust with a lease of the ruin agreed in 1982. Restoration over four key phases was undertaken for the next 15 years with the building finally being opened in 1997. Since then the Trust has based its office function in the building and for the past ten years it has operated it as a small business centre. The sale of the building allowed us: to undertake extensive repairs to the building; to create an investment vehicle to provide a long-term return for the Trust; and to prepare the organisation for future complex restoration projects.

Following the sale, the Trust has moved the office function to the John Marley Centre in Scotswood and we are working with Newcastle City Council to transfer the operation and refurbishment of the entire complex to TWBPT on a long leasehold. The creation of an investment vehicle and the delivery of John Marley is part of the Trust’s Business Plan to become a heritage development trust and reduce our reliance on grant funding to support core costs.

170-175 High Street West Sunderland is a long-term project that will be delivered over a number of phases. The completion of Phase 1 has allowed the Trust to restore the shells of the main building and bring the ground floor spaces back into operation. Funding has been attracted to the project due to its ability to meet national funding objectives due to its location on the High Street and within a Heritage Action Zone.

In Gateshead we are working in partnership with Gateshead Council to deliver on three sites in Dunston. The Staiths where we are working in collaboration with the National Trust to deliver a long-term strategy; the Car Park where we are developing a small complex to support the operation of the Staiths; and the Parish School where we are proposing to rescue this very early listed school. The year saw a further act of arson at Dunston Staiths which has increased our determination to find a more sustainable solution to its operation.

The sale of the Trust office and subsequent move has required significance resources from the staff team and led to reduced operations in North Tyneside, South Tyneside, County Durham and Northumberland. Covid 19 has also required a great deal of time and we are grateful for the support of the Heritage Lottery, Historic England and the Architectural Heritage Fund to fund initiatives for the Trust and our tenants to respond to the crisis.

4

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Trustees' Report

Financial review

The financial position for the year shows a surplus of £249,264 (2020: £75,957).

The funds of the charitable company amount to £2,282,216 as at 31st March 2021 including restricted funds of £159,177. However, as further described below, the unrestricted reserves include designated amounts totalling £2,029,224 and fixed assets of £4,584 meaning that the Trust carries forward free reserves of £89,231. The trustees consider the financial position to be satisfactory.

Policy on reserves

The Council of Management have reviewed the reserves of the Trust. This review encompassed the nature of the income and expenditure streams, the need to match variable income and fixed commitments and the nature of the reserves.

The Council of Management have identified that the unrestricted reserves need to be designated in respect of future projects and against various properties where they have identified the need to maintain these properties on an on-going basis. The balance of unrestricted reserves forms the general unrestricted funds.

The Council of Management continue to make the following designations:

Unrestricted funds amounted to £2,123,039, and taking account of the above designated unrestricted funds, which total £2,029,224, the general unrestricted fund amounts to £93,815. However, of this amount the free reserves of the charity (including those designated but not those which are not invested in fixed assets, nor long term liabilities) amounted to £89,231. The trustees considered it appropriate to hold the equivalent of between six to nine months unrestricted costs, which would equate to holding between £86k - £129k in free reserves. It is considered that these free reserves are sufficient to meet the Trust's objectives.

5

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Trustees' Report

Properties

In April and May 2006 the three Leasehold Properties and the Buildings and Structures in the Course of Preservation were revalued by Storey Sons and Parkers, who are regulated under RICS, on a market value basis assuming full vacant possession. A further revaluation was carried out in October 2012 by Lambert Smith Hampton). In October 2015 a valuation was carried out by Lambert Smith Hampton, who are regulated under RICS, on Buttress House and Blackfell Hauler House. In October 2016 a valuation was carried out by Lambert Smith Hampton, who are regulated under RICS, on Alderman Fenwick's House, Buttress House, Blackfell Hauler House and Old Low Light. The trustees consider that this most recent valuation represents the market value of the Leasehold Properties and the Buildings and Structures in the Course of Preservation. In September 2016 a valuation was performed by an external valuer on St Hilda's Pit Head in South Shields.

During the year Alderman Fenwick's House was sold with the sale completing on 30 December 2020.

Principal funding sources

The principal sources of funding are grants and rental income.

Key Management Personnel

The board, who give their time freely and no trustees received remuneration in the year, have considered who the Key Management Personnel (KMP) of the charity, as noted in the Reference and Administration section. Together with the board, these KMP are those in charge of directing and controlling, running and operating the activities of the charity on a day to day basis. The pay of the KMP is reviewed annually and normally increased in accordance with average earnings. The trustees benchmark against pay levels of other charities and similar organisations within the sector and the region. Pay levels are set using this information together with the budget and forecast information, ensuring that the charity can afford any proposed increases. The board then agree any uplift to remuneration.

Plans for future periods

Plans for future periods is covered within the achievements and performance section of the trustee report.

Going concern

The charity’s forecasts and projections for the next twelve months show that the charity should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance. The charity has strong positive cash balances and fixed asset investments and is forecasting for this to continue to be the case. The trustees have stress tested their forecasts, taking into account various scenarios, and remain confident that the uncertainties do not cast significant doubt on the company’s ability to continue as a going concern.

6

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Trustees' Report

Statement of Trustees' Responsibilities

The trustees (who are also the directors of Tyne And Wear Building Preservation Trust Limited for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

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 its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:

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

Disclosure of information to auditor

Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditor

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Ryecroft Glenton as auditors of the charity is to be proposed at the forthcoming Annual General Meeting.

Small companies provision statement

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

The annual report was approved by the trustees of the charity on 20 December 2021 and signed on its behalf by:

......................................... S Alexander Trustee

7

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Independent Auditor's Report to the Members of Tyne And Wear Building Preservation Trust Limited

Opinion

We have audited the financial statements of Tyne And Wear Building Preservation Trust Limited (the 'charity') for the year ended 31 March 2021, which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (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 charity 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 charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements were 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.

8

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Independent Auditor's Report to the Members of Tyne And Wear Building Preservation Trust Limited

Other information

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

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

We have nothing to report in this regard.

Opinion 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 our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities (set out on page 7), the trustees 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.

9

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited Independent Auditor's Report to the Members of Tyne And Wear Building Preservation Trust Limited

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:

• 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 Charity through discussions with the charity’s accountants Tait Walker and with management, and from our commercial knowledge and experience of this sector;

• 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 Charity, including relevant legislation such as the Companies Act 2006, Charities Act 2011 et seq., the Charities (Protection and Social Investment) Act 2016 and Charity Commission regulation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• we ensured that the identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

10

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Independent Auditor's Report to the Members of Tyne And Wear Building Preservation Trust Limited

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

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Use of our report

This report is made solely to the charitable company's trustees, 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 charity's trustees 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 its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

...................................... Detlev Anderson FCA (Senior Statutory Auditor) For and on behalf of Ryecroft Glenton Chartered Accountant and Statutory Auditor 32 Portland Terrace Newcastle upon Tyne NE2 1QP

Date: 21 December 2021

11

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Statement of Financial Activities for the Year Ended 31 March 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Other income
5
Total Income
Expenditure on:
Charitable activities
6
Total Expenditure
Gains/losses on investment
assets
Net income
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
21		 Unrestricted
£
26,639
158,030
82,105
266,774
(184,265)
(184,265)
(2,776)
79,733
155,235
234,968
1,888,071
2,123,039		 Restricted
£
805,625
-
-
805,625
(636,094)
(636,094)
-
169,531
(155,235)
14,296
144,881
159,177		 Total
2021
£
832,264
158,030
82,105
1,072,399
(820,359)
(820,359)
(2,776)
249,264
-
249,264
2,032,952
2,282,216		 Total
2020
£
347,038
189,221
-
536,259
(460,302)
(460,302)
-
75,957
-
75,957
1,956,995
2,032,952

All of the charity's activities derive from continuing operations during the above two periods.

12

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Comparative Statement of Financial Activities for the Year Ended 31 March 2020 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Recognised Gains and Losses)
Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Total income
Expenditure on:
Charitable activities
6
Total expenditure
Net income
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
21		 Unrestricted
£
25,838
186,821
212,659
(167,780)
(167,780)
44,879
2,916
47,795
1,840,276
1,888,071		 Restricted
£
321,200
2,400
323,600
(292,522)
(292,522)
31,078
(2,916)
28,162
116,719
144,881		 Total
2020
£
347,038
189,221
536,259
(460,302)
(460,302)
75,957
-
75,957
1,956,995
2,032,952

13

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

(Registration number: 01444058) Balance Sheet as at 31 March 2021

Note
Fixed assets
Tangible assets
13
Heritage assets
14
Investments
15
Current assets
Debtors
16
Cash at bank and in hand
17
Creditors: Amounts falling due within one year
18
Net current assets
Net assets
Funds of the charity:
Restricted income funds
Restricted general fund
21
Unrestricted income funds
Unrestricted
Total funds
21		 2021
£
4,584
972,000
947,224
1,923,808
110,243
319,480
429,723
(71,315)
358,408
2,282,216
159,177
2,123,039
2,282,216		 2020
£
7,108
1,782,000
-
1,789,108
118,783
228,270
347,053
(103,209)
243,844
2,032,952
144,881
1,888,071
2,032,952

The financial statements on pages 12 to 36 were approved by the trustees, and authorised for issue on 20 December 2021 and signed on their behalf by:

......................................... S Alexander Trustee

14

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited Statement of Cash Flows for the Year Ended 31 March 2021

Note
Cash flows from operating activities
Net income
Adjustments to cash flows from non-cash items
Depreciation
Impairment of heritage assets
Profit on disposal of heritage assets
Revaluation of investments
Working capital adjustments
Decrease/(increase) in debtors
16
Decrease in creditors
18
Net cash flows from operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
13
Purchase of heritage assets
14
Sale of heritage assets
Purchase of investments
15
Net cash flows from investing activities
Cash flows from financing activities
Repayment of loans and borrowings
18
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March		 2021
£
249,264
2,667
465,847
(75,935)
2,776
644,619
8,540
(31,894)
621,265
(143)
(625,354)
1,045,442
(950,000)
(530,055)
-
91,210
228,270
319,480		 2020
£
75,957
3,181
-
-
-
79,138
(46,067)
(3,967)
29,104
-
-
-
-
-
(7,175)
21,929
206,341
228,270

All of the cash flows are derived from continuing operations during the above two periods.

15

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

1 Charity status

The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

The address of its registered office is: Bulman House, Regent Centre, Gosforth, Newcastle upon Tyne, NE3 3LS

The principal place of business is: John Marley Lodge, John Marley Centre, Muscott Grove, Newcastle Upon Tyne, NE15 6TT

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

Tyne And Wear Building Preservation Trust Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

These financial statements are prepared in sterling which is the functional currency of the entity.

Going concern

The charity’s forecasts and projections for the next twelve months show that the charity should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance. The charity has strong positive cash balances and fixed asset investments and is forecasting for this to continue to be the case. The trustees have stress tested their forecasts, taking into account various scenarios, and remain confident that the uncertainties do not cast significant doubt on the company’s ability to continue as a going concern.

16

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

Estimation uncertainty and judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

Heritage Asset valuations. The assets valuations are considered annually in accordance with the requirements under FRS102 and any change in the value of the assets are reflected within the financial statements.

The conservation valuation given on High Street West was between £80k and £97k. The trustees have impaired the NBV to £90,000 as a result of ongoing works.

Income and endowments

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Deferred income

Income is deferred and released to incoming resources in the future period for which it has been received.

Investment income

Investment income is recognised on a receivable basis.

Charitable activities

Incoming resources from charitable activities includes income received under contract for those properties of the Trust which are formally let. The income includes both rent and the recharge of service charges incurred for the running of the let property.

Rent receivable is recognised in the SOFA when the charity is legally entitled to the income and is considered appropriate to be classified as incoming resources from charitable activities rather than investment income.

17

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs

Support costs have been allocated to activity cost categories on a basis consistent with the time spent by the employees on each activity and on those activities necessary to properly govern the charity. Governance costs are also included within support costs and are those costs incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.

Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Tangible fixed assets

The trustees do not have a set de-minimis below which expenditure of a capital nature are not capitalised. All such expenditure is reviewed and capitalised where necessary.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class

Fixtures and Fittings

Depreciation method and rate 15% straight line

18

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

Fixed Assets - Preservation Schemes - Restricted Funds

The Trust, a company limited by guarantee, having as its primary charitable purpose the preservation of historical buildings (including artefacts and land) holds such assets and incurs necessary expenditure on them, often financed by grants that can only be used for such expenditure.

The Trustees consider that the following policies are required to satisfy their obligations under Company and Charitable Law.

(i) Expenditure incurred on preservation schemes where the Trust has a legal interest whether leasehold or freehold, is capitalised.

(ii) Grant and assistance received specifically to finance the expenditure is credited to a restricted fund.

(iii) Properties, when let, would normally be considered by Accounting Standards as investment properties requiring annual revaluation or depreciation. The Council of Management reviews each property to ascertain if revaluation is appropriate and where necessary undertakes to ascertain a market value.

Heritage assets

The charity holds heritage assets, which are tangible fixed assets of historical, artistic, scientific, technological, geophysical or environmental importance that are held to advance preservation and conservation objectives of the charity. Newly purchased heritage assets are capitalised and included at cost including any incidental expenses of acquisition.

Properties purchased using grants received are shown as unrestricted assets and their NBV designated, as the conditions of the grant were satisfied upon the purchase of the property.

Where heritage assets were acquired in past accounting periods and not capitalised, it can be difficult or costly to attribute a cost or value to them. In such cases, these assets are excluded from the balance sheet if reliable cost information is not available and conventional valuation approaches lack sufficient reliability or significant costs are involved in the reconstruction or analysis of past accounting records or in valuation, which are onerous compared with the additional benefit derived by users of the accounts in assessing the trustees' stewardship of the assets.

The very long expected lives of heritage assets, due to their nature, value and need to be protected and preserved means that depreciation is not material and is, therefore, not provided.

Impairment of fixed assets and heritage assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

19

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

Fixed asset investments

Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.

Trade debtors

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

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

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.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Operating leases

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 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 Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

20

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

Financial instruments

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Debt instruments are subsequently measured at amortised cost.

3 Income from donations and legacies

Donations
Government grants - CJRS
Grants		 Unrestricted
General
£
17,950
3,689
5,000
26,639		 Restricted
£
-
-
805,625
805,625		 Total
2021
£
17,950
3,689
810,625
832,264		 Total
2020
£
5,703
-
341,335
347,038

The grants were received as follows for the 2021 year:

Grant Awarded Unrestricted
Funds		 Restricted
Funds		 Total 2021
£ £ £
Heritage Lottery Fund - 38,700 38,700
Architectural Heritage Fund 362,068 362,068
Sunderland City Council - 244,105 244,105
Newcastle City Council 5,000 12,100 17,100
Heritage Lottery Fund administered
by Groundwork UK		 97,832 97,832
Historic England - 22,035 22,035
EU Grant 28,785 28,785
Total 2021 5,000 805,625 810,625

21

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2021

4 Income from charitable activities

Miscellaneous Income
Old Low Light
Alderman Fenwick's House
Buttress House
Contribution towards insurance Old Low Light
Contribution towards Buttress House costs
Blackfell
St Hilda's
Miscellaneous Income
Old Low Light
Alderman Fenwick's House
Buttress House
Contribution towards insurance Old Low Light
Contribution towards Buttress House costs
Blackfell
St Hilda's		 Unrestricted
funds
General
£
3,656
8,758
54,708
78,140
1,142
1,659
5,502
4,465
158,030
Unrestricted
funds
General
£
8,145
10,996
81,813
76,784
1,131
1,665
5,000
1,287
186,821		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
Restricted
funds
£
2,400
-
-
-
-
-
-
-
2,400		 Total
2021
£
3,656
8,758
54,708
78,140
1,142
1,659
5,502
4,465
158,030
Total
2020
£
10,545
10,996
81,813
76,784
1,131
1,665
5,000
1,287
189,221

5 Other income

Buttress House insurance claim
Gains on sale of tangible fixed assets for charity's
own use		 Unrestricted
funds
General
£
6,170
75,935
82,105		 Total
2021
£
6,170
75,935
82,105		 Total
2020
£
-
-
-

The above gain represents the surplus in the sale of Alderman Fenwick's House

22

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2021

6 Expenditure on charitable activities

Alderman Fenwick's Running
Costs
Buttress House Running Costs
Old Low Light
HDT Base
Scheduled Monuments
St Hilda's
Heritage Open Days and Other
Direct Charitable Expenditure
Feasibility studies
Emergency Covid Funding
Blackfell Hauler House
High Street West
Governance costs
Alderman Fenwick's Running
Costs
Buttress House Running Costs
Old Low Light
HDT Base
Scheduled Monuments
St Hilda's
Heritage Open Days and Other
Direct Charitable Expenditure
Feasibility studies
Emergency Covid Funding
Blackfell Hauler House
High Street West
Support costs		 Activity
undertaken
directly
£
55,637
6,548
2,050
30,950
52,258
36,684
2,665
20,597
12,496
-
486,133
-
706,018
Unrestricted
General
£
55,637
6,548
2,050
-
-
3,024
2,665
-
-
-
-
114,341
184,265		 Activity
support
costs
£
-
-
-
-
-
-
87,369
-
-
-
-
26,972
114,341
Restricted
£
-
-
-
30,950
52,258
33,660
-
20,597
12,496
-
486,133
-
636,094		 2021
£
55,637
6,548
2,050
30,950
52,258
36,684
90,034
20,597
12,496
-
486,133
26,972
820,359
Total
2021
£
55,637
6,548
2,050
30,950
52,258
36,684
2,665
20,597
12,496
-
486,133
114,341
820,359		 2020
£
47,960
4,582
1,131
-
61,784
69,968
94,991
-
-
611
157,220
22,055
460,302
Total
2020
£
47,960
4,582
1,131
-
61,784
69,968
6,912
-
-
611
157,220
110,134
460,302

23

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2021

7 Analysis of governance and support costs

Staff costs
Communications and IT
Depreciation
Finance costs
Lease of copier
Insurance
Rates & water
Other establishment
Other office costs
Other motor/travel costs
Repairs and maintenance
Accountancy fees
Audit fees
Legal fees
Bad debt provision		 Support
costs
£
49,835
706
2,400
168
711
9,779
-
-
17,761
533
636
-
-
-
4,840
87,369		 Governance
costs
£
-
78
267
19
79
1,087
-
-
1,974
-
70
16,284
3,600
3,514
-
26,972		 Total
2021
£
49,835
784
2,667
187
790
10,866
-
-
19,735
533
706
16,284
3,600
3,514
4,840
114,341		 Total
2020
£
72,022
1,222
3,181
357
1,040
5,681
638
360
1,872
2,263
487
15,851
3,500
1,320
340
110,134

The charity allocates costs direct to activities as far as possible, then identifies the remaining costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs together with the governance costs are apportioned between the key charitable activities undertaken in the year. The basis for apportionment and the analysis of support and governance costs is set out as follows:

Direct to governance: Accountancy fees, Audit, legal and Trustee liability insurance. 10% of costs allocated as governance: Telephone, Finance costs, Depreciation, Lease costs, and other office costs. Direct to charitable activities: Salaries and pensions and all other support costs.

24

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2021

8 Net incoming/outgoing resources

Net incoming resources for the year include:

Operating leases - other assets
Audit fees
Depreciation of fixed assets
Profit on sale of heritage assets
Impairment of heritage assets		 2021
£
790
3,600
2,667
(75,935)
465,847		 2020
£
1,040
3,500
3,181
-
-

9 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

10 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2021
£
98,296
5,808
6,703
110,807		 2020
£
77,151
4,562
6,791
88,504

The monthly average number of persons (including senior management team) employed by the charity during the year:

Number of administrative staff

2021 2020
No No
3 3

No employee received emoluments of more than £60,000 during the year.

The total employee benefits of the key management personnel of the charity were £74,315 (2020 - £73,520).

11 Auditors' remuneration

2021 2020
£ £
Audit of the financial statements 3,600 3,500

25

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2021

12 Taxation

The charity is exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

13 Tangible fixed assets

Cost
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Furniture and
equipment
£
26,634
143
26,777
19,526
2,667
22,193
4,584
7,108		 Total
£
26,634
143
26,777
19,526
2,667
22,193
4,584
7,108

26

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2021

14 Heritage assets

Alderman
Fenwick's
House
£
Cost
At 1 April
2020
900,000
Additions
69,507
Disposals
(969,507)
At 31 March
2021
-
Depreciation
At 1 April
2020
-
Charge for
the year
-
At 31 March
2021
-
Net book value
At 31 March
2021
-		 Buttress
House
£
633,024
-
-
633,024
33,024
-
33,024
600,000		 Old Low
Light
£
Buildings
and
structures
in the
course of
preservation
£
462,350
53,640
-
-
-
-
462,350
53,640
327,350
1,640
-
-
327,350
1,640
135,000
52,000		 St Hilda's
£
High
Street
West,
Sunderland
£
Total
£
605,120
- 2,654,134
-
555,847
625,354
-
-
(969,507)
605,120
555,847
2,309,981
510,120
-
872,134
-
465,847
465,847
510,120
465,847
1,337,981
95,000
90,000
972,000		 St Hilda's
£
High
Street
West,
Sunderland
£
Total
£
605,120
- 2,654,134
-
555,847
625,354
-
-
(969,507)
605,120
555,847
2,309,981
510,120
-
872,134
-
465,847
465,847
510,120
465,847
1,337,981
95,000
90,000
972,000
2,309,981
872,134
465,847
1,337,981
972,000

All properties are considered to be heritage assets as follows:

Alderman Fenwick's House is a Grade I and Grade II Listed 17th Century town house in Newcastle upon Tyne which has, in the past, been a private residence, a coaching inn and a political club. The property was partially let and was disposed on 30 December 2020.

Buttress House is offices, associated with the former Brenkley Colliery at Seaton Burn, North Tyneside. The property is fully let.

The Old Low Light is a Grade II listed Building situated within the Clifford's Fort Scheduled Ancient Monument on the North Shields Fish Quay. The building was originally used to house a navigation light and in later years was used as a alms houses and then as a fish processing plant. The property is fully let.

27

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

Dunston Staiths are a scheduled Ancient Monument and Grade II listed building. They were constructed in the late 19th Century and were used to load coal onto seagoing colliers on the river Tyne at Dunston, Gateshead. They are included in the financial statements at a nil value, as the only current income is a nominal sum for the Dunstan Staiths substation.

Whinfield Coke Ovens at Rowlands Gill, Gateshead and the Bottle Kilns at Corbridge are both Scheduled Ancient Monuments. Both these properties are included at cost; a valuation has not been attempted as significant costs would be incurred in obtaining a valuation which would be considered to be onerous when compared to the additional benefit achieved.

St Hilda's Pit Head is a Grade II listed building in South Shields. The restoration of St Hilda's Pit Head was funded and undertaken with the full understanding that there was a large conservation deficit. The property is let.

In October 2016 Lambert Smith Hampton, who are regulated by RICS, valued Blackfell Hauler House, Alderman Fenwick's House, Old Low Lights and Buttress House based on an open market basis.

On 6th February 2018, the buildings at 170-175 High Street West, Sunderland, were transferred to the trust from The Council of the City of Sunderland for the nominal amount of £1. 170-175 High St West Sunderland are a terrace of three traditional houses that were converted on the ground floor for commercial use soon after they were built. Given the condition of the properties on transfer, the work initialily incurred was being expensed until the structure was made stable. Subsequently in the 2020/21 year, works have commenced with the view of bringing the properties back into use. A valuation was performed at the year end in which it was determined that the properties when restored would hold a value of between £80k to £95k. The trustees have applied a value of £90,000 as at the year end 2021. This is on the basis of the ground floor of each property being brought back into use with the upper floors requiring further works. The restoration of High Street West was funded and undertaken with the full understanding that there was a large conservation deficit.

A conservation deficit is a situation which applies to historic buildings where the cost of converting them to a new use is greater than the value they would have on completion of the works. The conservation deficit is the amount that is the difference. It needs to be covered by some form of injection of funding in order for the development to be viable.

All these Heritage Assets, with the exception of Dunston Staiths have been the subject of Preservation Schemes and are either generating rental income or recovery of costs. Where possible, access to the buildings for the public is made available.

At the year end, the board reviewed the valuation of the heritage assets and concluded the valuation remained appropriate for the assets held.

28

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

Summary of transactions
Purchases and additions
Buildings
Charge for impairment
Buildings
Disposals
Buildings
15 Fixed asset investments
Other investments
Other investments
Cost or Valuation
Additions
Revaluation
At 31 March 2021
Net book value
At 31 March 2021		 2021
£
625,354
465,847
969,507		 2020
£
-
-
-		 2019
£
427,190
427,190		 2019
£
427,190
427,190		 2018
£
177,930
82,930		 2017
£
2,000
1,640
- - -
2020
£
-
Total
£
950,000
(2,776)
947,224
947,224

The listed investment portfolio is held with Barclays Bank UK Plc and represents units held within the discretionary investment portfolio charity fund.

The investment balance includes both monies invested and cash held waiting to be invested.

16 Debtors

Trade debtors
Prepayments
Accrued income
VAT recoverable
Other debtors		 2021
£
35,735
11,199
37,456
25,666
187
110,243		 2020
£
101,343
10,097
2,487
4,669
187
118,783

Trade debtors includes a provision of £10,180 (2020: £5,340).

29

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

17 Cash and cash equivalents

17 Cash and cash equivalents
Cash at bank
18 Creditors: amounts falling due within one year
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 April 2020
Resources deferred in the period
Amounts released from previous periods
Deferred income at year end		 2021
£
319,480
2021
£
20,419
913
-
49,983
71,315
2021
£
22,740
19,003
(22,740)
19,003		 2020
£
228,270
2020
£
15,589
2,016
4,060
81,544
103,209
2020
£
22,150
22,740
(22,150)
22,740

Deferred income relates to quarterly rental income received in advance.

19 Obligations under leases and hire purchase contracts

Operating lease commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

Other
Within one year		 2021
£
-		 2020
£
590

20 Pension and other schemes

Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £6,703 (2020 - £6,791).

30

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

21 Funds

Unrestricted
General
General funds
Designated
Revaluation
reserve
Old Low Light
Development Fund
Dunston Staiths
Maintenance Fund
Alderman
Fenwick's House
Service Charge
Alderman Fenwick
House
Buttress House
Other
Investments
High Street West
St Hilda's
Scheduled
monuments
Maintenance Fund
Property
Acquisition Fund
Total Unrestricted
Restricted
St Hilda's (Stage
2)
HDT Base
Scheduled
Monuments
Feasibility Studies
Emergency
Funding
High Street West
Total restricted		 Balance
at 1 April
2020
£
101,071
50,000
135,000
50,000
50,000
900,000
600,000
2,000
-
-
-
-
-
1,787,000
1,888,071
102,691
-
-
-
-
42,190
144,881		 Incoming
resources
£
266,774
-
-
-
-
-
-
-
-
-
-
-
-
-
266,774
-
50,000
98,124
35,422
38,700
583,379
805,625		 Resources
expended
£
(184,265)
-
-
-
-
-
-
-
-
-
-
-
-
-
(184,265)
(33,660)
(30,950)
(52,258)
(20,597)
(12,496)
(486,133)
(636,094)		 Transfers
£
Other
recognised
gains/(losses)
£
Balance
at 31
March
2021
£
(89,765)
-
93,815
-
-
50,000
-
-
135,000
-
-
50,000
(50,000)
-
-
(900,000)
-
-
-
-
600,000
-
-
2,000
950,000
(2,776)
947,224
90,000
-
90,000
95,000
-
95,000
10,000
-
10,000
50,000
-
50,000
245,000
(2,776)
2,029,224
155,235
(2,776)
2,123,039
(39,031)
-
30,000
-
-
19,050
-
-
45,866
-
-
14,825
(26,204)
-
-
(90,000)
-
49,436
(155,235)
-
159,177		 Transfers
£
Other
recognised
gains/(losses)
£
Balance
at 31
March
2021
£
(89,765)
-
93,815
-
-
50,000
-
-
135,000
-
-
50,000
(50,000)
-
-
(900,000)
-
-
-
-
600,000
-
-
2,000
950,000
(2,776)
947,224
90,000
-
90,000
95,000
-
95,000
10,000
-
10,000
50,000
-
50,000
245,000
(2,776)
2,029,224
155,235
(2,776)
2,123,039
(39,031)
-
30,000
-
-
19,050
-
-
45,866
-
-
14,825
(26,204)
-
-
(90,000)
-
49,436
(155,235)
-
159,177
2,029,224
2,123,039
30,000
19,050
45,866
14,825
-
49,436
159,177

31

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

Balance
Balance Other at 31
at 1 April Incoming Resources recognised March
2020 resources expended Transfers gains/(losses)
2021
£ £ £ £ £ £
Total funds 2,032,952 1,072,399 (820,359) - (2,776) 2,282,216
Balance at Balance at
1 April
Incoming		 Resources 31 March
2019
resources		 expended Transfers 2020
£ £ £ £ £
Unrestricted
General
General funds 78,276 212,659 (167,780) (22,084) 101,071
Designated
Revaluation reserve 50,000 - - - 50,000
Old Low Light
Development Fund 135,000 - - - 135,000
Dunston Staiths
Maintenance Fund 50,000 - - - 50,000
Alderman Fenwick's
House Service Charge 25,000 - - 25,000 50,000
Alderman Fenwick House 900,000 - - - 900,000
Buttress House 600,000 - - - 600,000
Other 2,000 - - - 2,000
1,762,000 - - 25,000 1,787,000
Total unrestricted 1,840,276 212,659 (167,780) 2,916 1,888,071
Restricted
St Hilda's (Stage 2) 82,499 109,360 (69,968) (19,200) 102,691
Scheduled Monuments 20,973 24,527 (61,784) 16,284 -
High Street West 13,247 186,163 (157,220) - 42,190
Heritage Open Day - 3,550 (3,550) - -
Total restricted 116,719 323,600 (292,522) (2,916) 144,881
Total funds 1,956,995 536,259 (460,302) - 2,032,952

32

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

The specific purposes for which the funds are to be applied are as follows:

Revaluation Reserve

The amount of uplift in the value of Blackfell Hauler House to its net book value of £50,000.

Old Low Light Development Fund

The trustees have provided a designation to reflect the value of the Old Low Light Property which is subject to a contingent grant repayment (as detailed in note 25) period to the year 2025. After this contingent period has elapsed the trustees intend to release the designation.

Dunston Staiths Maintenance Fund

£50,000 in respect of annual maintenance and the delivery phase of Dunston Staiths.

Alderman Fenwick's House Service Charge Fund

This fund was un-designated in the year following the sale of the property.

Alderman Fenwick's House

This fund was un-designated in the year following the sale of the property.

Buttress House, High Street West and St Hilda's

Funds have been designated in respect of the net book value of the Heritage Assets on the basis that these assets are not readily expendible and therefore are excluded from free reserves.

St Hilda's

The trustees have provided a designation to reflect the value of the St Hilda's Pit Head which is subject to a contingent grant repayment period (as detailed in Note 25). After this contingent period has elapsed the trustees intend to release the designation.

Scheduled Monuments

This fund concerns the maintenance of Corbridge Bottle Kilns, Whinfield Coke Ovens and Blackfell Hauler House. The trustees have designated £10,000 to reflect this designation.

Feasibility Studies

These include Options Appraisals and Project Development on buildings in which we do not have a legal interest. The Trust is researching the capability of these buildings becoming a viable project.

High Street West

The trustees have provided a designation to reflect the value of 170-175 High St West, Sunderland which is subject to a contingent grant repayment period (as detailed in Note 25). After this contingent period has elapsed the trustees intend to release the designation.

Emergency Covid Funding

The Trust was in receipt of funds received via the Heritage Lottery to support the projects through the pandemic.

HDT Base

The Trust is one of seven pilot heritage development trusts in England and is receiving a grant, over a three year period, through the Architectural Heritage Fund to expand its activities and become a more sustainable organisation.

Property Acquisition Fund

The trustees have designated £50,000 in regards to potential acquisition of new properties by the charity.

33

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

The transfers from Restricted to unrestricted in the year of £155,235 on the High Street West project, St Hilda's Project and the Emergency Covid Funding grant relate to allowable capital spend within those projects that has been incurred and as such, the restriction has been met.

22 Analysis of net assets between funds

Unrestricted

Tangible fixed assets
Heritage assets
Fixed asset investments
Net current assets/(liabilities)
Total net assets
Tangible fixed assets
Heritage assets
Net current assets/(liabilities)
Total net assets
23 Analysis of net funds
Cash at bank and in hand
Net funds
Cash at bank and in hand
Debt due within one year
Net funds		 General
£
Designated
£
4,584
-
-
972,000
-
947,224
89,231
110,000
93,815
2,029,224
Unrestricted
General
£
Designated
£
7,108
-
12,501
1,687,000
81,462
100,000
101,071
1,787,000
At 1 April
2020
£
228,270
228,270
At 1 April
2019
£
206,341
(7,175)
199,166		 Restricted
£
-
-
-
159,177
159,177
Restricted
£
-
82,499
62,382
144,881
Financing
cash flows
£
91,210
91,210
Financing
cash flows
£
21,929
7,175
29,104		 Total funds
at 31 March
2021
£
4,584
972,000
947,224
358,408
2,282,216
Total funds
at 31 March
2020
£
7,108
1,782,000
243,844
2,032,952
At 31 March
2021
£
319,480
319,480
At 31 March
2020
£
228,270
-
228,270

34

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited Notes to the Financial Statements for the Year Ended 31 March 2021

24 Financial instruments

Categorisation of financial instruments

2021 £ Financial assets measured at fair value 947,224

The financial assets measured at fair value relate to the investments held with Barclays that are held at fair value.

25 Commitments

Capital commitments

At the year end, the Trust had no capital commitments. (2020: £nil).

The total amount contracted for but not provided in the financial statements was £Nil (2020 - £Nil).

26 Contingencies

The Old Low Light restricted income received during its restorations, created by receipt of monies from North Tyneside Council totalling £297,742, was spent as part of the refurbishment on the Old Low Light property. This restricted income was given with a twelve year clawback clause. The clawback is subject to a clause which is only enacted if the property is disposed of at greater than the Conservation Deficit Scheme value (detailed on the grant claim form) and would require repayment of a proportion of £297,742, up to the full amount dependent upon sale price at disposal. The trustees have considered this and whilst they do not intend to dispose of the property, once this twelve year period has elapsed in 2025, or if the property was disposed at a lower value, the contingent liability would cease.

A grant was received from Historic England for works at the Bottle Kilns in which, as part of the conditions of the grant, the Trust agreed to enter into a 10 year maintenance agreement. The maintenance works involved in the agreement are in line with the charitable activities of the Trust. However, should the works not be completed and reported to the grant provider within the time scales included within the agreement, then the grant may be repayable to the grant provider.

Of the High Street West Restricted income received during its restorations, an amount of £350,000 of the monies received is repayable within three years of the final payment being received (expected in November 2021) should the property be disposed. The clawback is subject to a clause which is only enacted if the property is disposed of at greater than the Conservation Deficit Scheme value (detailed on the grant claim form) and would require repayment of a proportion of £350,000, up to the full amount dependent upon sale price at disposal. The trustees have considered this and whilst they do not intend to dispose of the property, once this three year period has elapsed in 2024, or if the property was disposed at a lower value, the contingent liability would cease.

The St Hilda's restricted income received during its restoratons, created by receipt of funding from The Heritage Lottery, was given with a ten year clawback agreed within the funding agreement. The clawback is subject to a clause which is only enacted if the property is disposed of at greater than the Conservation Deficit Scheme value (detailed on the grant claim form) and would require repayment of a proportion of the grant, up to the full amount dependent upon sale price at disposal. The trustees have considered this and whilst they do not intend to dispose of the property, once this ten year period has elapsed in 2028, or if the property was disposed at a lower value, the contingent liability would cease. A charge is held over the property by the Heritage Lottery.

35

DocuSign Envelope ID: DF464E2D-DAC7-4934-A4E0-F5B1DD4853AD

Tyne And Wear Building Preservation Trust Limited

Notes to the Financial Statements for the Year Ended 31 March 2021

27 Related party transactions

During the year the charity made the following related party transactions:

MHA Tait Walker

Simon Brown, the Honorary Treasurer of the Trust is a partner with MHA Tait Walker. During the year MHA Tait Walker provided accountancy and administrative services for fees of £16,337 (2020 - £18,937).

At the balance sheet date the amount due to MHA Tait Walker was £573 (2020 - £8,458).

Trustees

During the year the Trust paid for indemnity insurance on behalf of the Trustees of an amount of £655 (2020 - £645).

At the balance sheet date the amount due to/from Trustees was £Nil (2020 - £Nil).

36