Registered number.. 01630237 Charity number.. 515526 THE ARKWRIGHT SOCIETY LIMITED IA company limited by guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 THE ARKWRIGHT SOCIETY LIMITED IA company limited by guarantee) CONTENTS Page Refeien¢e and admlnlstrative detai15 of the cofflpanytr ItsTrustees and advlsei$ Chairman's statement Trustees, report 3-12 Independent audltor's report on the financial statements 13-16 Consolldated statement of financlal activltSes 17-18 Consolldated balance sheet 19-20 Company balance Sheet 21-22 Consolidated statement of cash flows 23 Notes to the financial Statements 24-52 THE ARKWRIGHT SOCIETY LIMITED IA company limlted by 8uaranteel REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2025 Trustees J River5, Chair M Atkinson (resigned 31 December 20231 H Bishop V Dawson (appointed 24 May 20231 C Feelv Dr R Gaunt Iresigned 31 October 20221 P Holt (appointed 21 June 20231 G Lewins J Phipps lappointed 24 May 20231 G Pickup (resigned 28 February 20231 A Rawlings N Riddle L Summers Iresi8ned 28 February 20231 WJ Tracey (resigned 31 December 20231 Company registered number 01630237 Charlty reglstered number 515526 Re8lstered office Cromford Mill Road Cromford Matlock Derbyshire DE4 3RQ hlef Executlve Offlcer Éllis Scott Pre51dent The Duke of DeVOnsh￿re KCVO CBE DL Independent audltor BHPLLP Chartered Accountants 2 Rutland Park Sheffield SIO 2PD Bankers Lloyds TSB plc Compton Ashbourne Derbyshi DE6 IDY Sollcltors Geldards LLP Number One Price Place Pride Park Derbv DE24 8QR Page I THE ARKWRIGtrtTSOCIETY LIMITED IA company limited byguaranteel CHAIRMAN'S STATEMENT FOR THE YEAR ENDED31 MARCH 2023 The chairman presents his statement for the year. Our financial year 2022123 and the ensuing twelve rnonths have seen a considerable reconstruction of the Board of Trustees and the Senior Leadership Team. Changes in Trustees include the resignations of Mike Atkinson. Wendy Tracey, Greg Pickupi Laura Summers and Richard Gaunt but we have welcomed Vicky Dawson, Paula Holt and Jon Phipps as new Trustees. These changes bring valuable ski115 to the Society. as indeed have a series of new appointments to the Senior Leadership Tearn, including Clare Harri5 as CFO, Richard Crowder as Operations Manager. Dr Eli28beth Woledge as Head of Engagernent, Robert Williams a5 Catering Manager and Joanne Williams as Development Manager, with the particular task of le3dinE and growin8 our fundraising campaigns. These appointments ar& necessary to boost our income and improve the Society's trading p051tion. A5 you can see from the Accounts, the Society continues to struggle for profitable growth in the face of rising cost5 driven by inflation and the tripling of energy costs primarily due to the w8r in Ukraine. Our iommercial activities almost solely enable us to remain in existence and carry out our prime purpose and responsibility. This is to care for our historic buildin85 and refurbish them 50 that they can be brought back into economic use for the benefit of our community and the Satisfaction of our many supporter5 who value our industrial heritage. It Is not always appreciated that grants from public bodies and charitable tru5t5 do not generally sups)ort commercial activities or operatin8 Costs, which amount to over £4.000 per day. and our ability to prosper primarily rests with ourselves. A5 the Report shows, we continue to benefit and are extremely grateful to Historic England for the c3Pltal grants for essential repair 8nd maintenance work on Building l and 'The First Mill, and to the National Lottery Heritage Fund for funding of several projects includine a new Strategic 8usiness Plan and masterplan for Cromford Mills. Our p3rticular thank5 also goes to fynders of the Water Wheel Project,, includin8 the Green Entrepreneurs, Fund and Severn Trent Community Fund, which celebrates the return of water power to Cromford Mills. We clearly enjoy the continuing confidence of major funders and we are also bein8 well supported during these problematic times by our banker, Lloyds. This degree of confidence matters greatly as we develop our plan5 to restore and bring back Building l into full economic use and provide us with a bi8ger restaurant. and function suite. Thi5 projKt is crucial to the continuing success of the Arkwright Society and its ability to attract and cater for increasing numbers of visitors and stren8thening the Societ¢s commercial resilience. The Trustees appreciate the leadership and commitment ol Éllis Scott, our CEO, but we are dependent for our success on the efforts and hard work of all our Staff and volunteers,. their contribution has been invaluable and will remain so. Date.. Page 2 THE ARKWRIGHT SOCIETY LIMITED IA company limited byguaranteel TRUSTEES, REPORT FOR THE YEAR EJVDED 31 MARCH 2023 The Tru5tee5 present their annual report together with the audited financial statements of the group for the year ended 31 March 2023. The Trustees, report serves the purposes of both a Tru5tees' report and a Directors, report under cornpany 13w. The Trustees confirm that the Tru5tees' report and financial statements of the charitable company comply with the current statutory requirement5, the requirements of the charitable cornpany's governing document and the provisions of the Statement of Recornmended Practice ISORPI applicable to charities preparin8 their account5 in accordance with the Financial Reporting Standard applicable in the UK and Republic ol Ireland IFRS1021 (effective I January 20191. Since the group and the company qu6lify as small under section 383 of the Companies Act 2006, the Group Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors, Report) Regulations 2013 has been tsrnitted. Objectlves and octivities a. Pollcles and oblectlves The Society ha5 adopted the following mission statement in respect of its work on the Cromford Mills site much of which applies to the Societ¢5 work in general.. The Arkwright Society is cornrnitted to the regeneration of the Cromford Mills site and to the reuse of the buildings in ways that will provide them with a 5UStainable future. and which offers year-round employrnent that will contribute positively to the local economy. At the Same time. the Society is aware of the international significance of the historic buildings in its care and in dealing with them. is conscious of its obligation to use the highest standards of repair and conservation pracrlce. The Society acknowledges that monuments ol such universal importance, inscribed by UNESCO. attract widespread interest which those who enjoy the stewardship ol such heritage must respect. by providing interpretation of the highest quality and extensive public acces5. The Society also has educational. social, accessibility and environmental a8endas, which commit 5t to the provision of educational engagement. training, work experience opportunity whilst developing accessibility and green ener£v initiative5, as well as the recycling of materia15 and a 5U5tainable tran590rt policy. These aspirations will inform the delivery of its conservation and educational programrnes. b. Actlvltles undertaken to zchieve obJec¢lves The Society delivers its charitable objects through a range of acrivities many of which are long established. It5 principal educational provision 15 made through the delivery of primary, secondary school and higher educarional vi51ts. The Society continue5 to support various heritage talks, often led by volunteers. and continues to pèrticipate in educational initiatives delivered by the Derwent Valley World Heritage Site IDVMWHSI management tearn, including the DVMWHS Re5e3rch days. The Society hosts work placements for students to develop their skills within the workplace and gain deeper understandin8 of the Charity and its objectives. Throughout the year. tours of the Cromford Mills are provided for visitors and booked parties and informal learning opportunitie5 are promoted to visitors, especially families. during the school holidays. The Society's conservation objectives are met primarily through the ongoing repair and maintenance of Cromford Mills and the wider estate. Resource allocation is managed by the maintenance team, focusing on regular maintenance and specific repairs. Decisions are guided by condition assessments and expert recomrnendations. Page 3 THE AR¥WRIGHT SOCIETY LIMITED IA company limited byguaranteel TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Oble¢tlves and attlvlties lcontifiuedl ¢. Volurbteers Volunteering is open to all, and volunteers can work on a wide range ol activities and in addition provide professional advice and guidance at various levels ol the Society. The Head of Engagement, in consultation with the Volunteer Coordinator, staff and volunreer representatives. will identify volunteering opportunities and define those roles through role profile5. Some volunteers have supported the Society for many years. working regularly or for specific time periods. The Arkwright Society's volunteer policy is to Ensure that volunteer5 feel valued. Establish an active management system to enable volunteers to feel like an ellective member of the team. Ensure all volunteers know who their point of contatt is and where they slt in the organisational structure. Ensure effective, regular two-way communication with all volunteers so that all staff and volunteers work positivelv together 8nd, where appropriate, actively seek to involve e8ch other in their work. Effectively match the needs of the organi$3tion with the skills. experience. and knowledge of the volunteer. Have an up-to-date business plan for volunteers to implement thi5 policy. Foster a friendly and supportive atmosphere aiming ro make volunteering a fun and pleasant experience of mutual gain. d. Main activltles undertaken to further the company's purposes for the public benefit The Trustees confirm that they have given careful consideration to the Charity Commission's general guidance on public benefit. The public benefits derived from the Society's artivitie5 include.. The advancement of education and specifically the provision of guided tours for the site and village, as well as adult and school parties throughout the year. The provision of heritage interpretation within the visitor centre and Ihrough industrial heritage and local history literature, the development of archive material to assist educational research, the provision of pro8ramrnes ol lectures, visits, and events on and to sites of hi5tOfical interest. The advancement of arts. heritage. and culture specifically the Society's commitment to the regeneration of the Cromford Mills site and to the reuse of buildings in ways which will provide them with a sustainable future.. public access to the Society's main sites for their enjoyment of these sites," membership of and support of the Derwent Valley Mills World Heritage Site Partnership and its attendant committees on which the Society is represented.. the Society's membership and promotion of the European Route of Industrial Heritage for which Cromford Mill is a designated anchor point.. participation in the Heritage Open Days programme and Ioc311y in the Derwent Valley Mi115 heritage activities. and delivery of an extensive annual events pro8Tamme promoting art5, culture. herita8e and wider eng3gement. The advancement, protection and improvement of the natural environment including the management of Dunsley Meadows designated as Derbyshire Dale5 first Local Nature Reserve, areas of Slinter Woodland5 an est8blished Site of Specific Interest ISSSI- Natural England designationl and a Special Area of Conservation (SAC- European Union designation), the management ol Lumsdale, a bequest to the Society and a valley of outstanding natural beauty and industrial heritage interest on the north side of Matlock. and Church Walk, adjacent to Cromlord Mills. Pa8e 4 THE ARKWRIGHT socIErY LIMITEO IA company Ilmited byguaranteel TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR EMDED 31 MARCH2023 Achievements andperftirmance a. Key performance Indlcators Notes 4 to 8 detail income which totals £1,502k12022.. £1,544kl. Within these.. Income from other trading activities increased by £46k to £651k12022.. £605kl. Income from charitable activities decreased by £23k to £540k12022.. £563kl. Other incoming resources totalled £67k12022.. £321kl reflecting government grants received during the year. Income from donations and legacies increased by £190k to £244k12022.. £55kl. Notes 9 and 10 detail costs of raising lund5 and charitable attivities which total £1.869k12022.. £1,599k a5 restated). Within these.. Governance costs total £22.98312022.. £17.6101. The net deficit for the year ttstalled £367k12022= £59k as restated after a tax charge of £4kl. This wa5 made up of a deficit of £440k on unrestricred funds12022,. £134k surplus) and a surplus of £73k on restricted funds12022.. £193k deficit). At the year-end reserves consisted of restricted funds of £2,345k12022.. £2,272k as restated) and unrestricted fund5 of £1,542k12022.. £1.982kl. a total of f 3,887k12022.. £4,254k as re5tatedl. b. Revtew of actlvhles The Arkwright Society continues to develop and progress with it5 objective of further development of the Cromford Mills site, bringing back in to use those buildings not currently fully utilised and so rernovin8 them from the Historic England's National Heritage at Risk Register. Throughout the year, the S(Kiety has made important steps forward, thanks to a generous grant of £249,599 from the National Heritage Lottery Fund. which has bolstered it5 resilience. Additionally, Support from the Duke of Devonshire Charitable Trust has enabled rhe commissioning of a 10 year strategic business plan and masterglan. These plan5 are crucial lor prioritising future regeneration efforts and determining the sequencing of major projects. prowdin8 a solid framework for the Societ￿5 continued progress. Despite enduring challenges stemming from the pandemic and unforeseen external factors, including the significant increases in utility costs and economic uncertainties, the society remains steadfast in its commitment to growth. While these challenge5 have posed obstacles, they have also underscored the importance of collabtsration with key stakeholders and partner5. The Society remains optimistic about its ability to Strengthen and become more resilient, ultimately fulfillin8 it5 prirnary objectives for the regeneration of Cromford Mills. Page 5 THE ARKWRIGHT SOCIETY LIMITED IA company limited by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCII 2023 Achievements and performance Icontinuedl Property & Site Operations Demand for office and retail space remains robust, with a particularly strong demand for single office spaces. Revenue from this demand has met expectations and shows promisin8 signs for the short to medium term. The Cromford water power project secured capital funding durin8 the financial year from multiple sources including.. Green Entrepreneurs Fund (Derbyshire County Councill, Severn Trent Community Fund, and additiofial support from The work proeram primarily takes place during the 2023 calendar year. During 2023, a successful crowd funding campaign has also supported the lundingi including a generous contribution from Gilbert Gilkes and fjordon Ltd. It 15 estimated that the electricity generated will account lor up to 20-25% of the site's elertricity consumption. This a55UrnPtion will be tested during the full calendar year. The scheme includes the followin8 components.. Refurbishment and installation of a 1957, 15kW Gilkes hydro turbine sourced from Wale5. Reinstatement of a 6m diameter waterwheel generating 2kW. Implementation of a water source heating systern Establishment of a closed-loop waterflow control system to optimize power generation and rnaintain water levels in the Cromlord Canal. Funded by the Wolf50n Foundation. a community scheme is being progressed to refurbish the exisiing hydro-turbine located at the Corn Mill in Cromford Village. The objective is to generate eleCtr￿CItY and Sell it back to the grid to raise funds for local community projects. Herltage, Vlsltors & Volunteering The Heritage offer, which encornpasse5 heritage tours, the visitor centre. and heritage talks, remains steadfastly delivered by our committed staff and volunteers. Although visitor numbers have yet to fully rebound to pre-pandemic levels, there is optimism in strengthenin8 this offer. Our volunteer teams. including corporate volunteers and work experience placements, provide crucial support for our initiatives. The wealth of knowledge and experience among our volunteers significantly enrich the vi51tor experience. Volunteers continue to play an active role in preserving the natural environment and managing the estate throughout the year. Notably, lumsdale relies heavily on volunteer a551Stance for fundraising effort5 and various works, including heritage tours, tree and woodland management. Following the closure o18elper North Mill Museum, collaborative efforts are underway with the Belper North Mill Trust and Belper Volunteers to ensure the continuity of the Belper story. These initiatives aim to sustain educational outreach and foster closer cooperation between volunteers and organi5ations. thereby strengthening the Derwent Valley Mi115 World Heritage Site northern gateway. To support these endeavours, a joint volunteer coordinator position was e5tabli5hed in March 2023 for a two-year term, with funding provided by the National Lottery Heritage Fund INLHFI and the Belper North Mill Trust. Edvcatlon and Learnln8 The revenue from education61 vi51ts has returned more strongly than anticipated p05t pandemic levels with continued interest from primary schools IKey Stage l & 21. The joint iniriatives with the Derwent Valley Mills World Heritage site team and the proactive work of the Learning team continue to develop the educational offer and school bookings have been strong and include a wider uptake from schools in areas of need. A renewed partnership approach is being developed with the Univer51ty of Oerby to explore various initiatives around student engagement. A post graduate studv on eKpanding the Society's higher education offer has been produced. io be developed further over the coming year. Page 6 THE ARKWRIGHT SOCIETY LIMITED IA company limited by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Achievements and performance Icontinuedl Conferenclng & Events Events have been a key driver in encouraging increased vi51tor nurnber5 to Crornlord Mills. Thi5 has financial benefits with increased secondary spend and is targeting new audiences and widening engagement. The developrnent of markets during the year.. artisan and antiques in particular ha5 continued, with enhanced focus on Christmas markets and our Christrnas offer. The markets also help engage and support new creative businesses in the local area. "The Shine a Light evenr was held for the second year in October 2022, a joint initiative with Derbyshire County Council. Whilst this was not profitable, it brought positive visitor numbers and showcased the mill as a cultural venue. Developing our annual events and activitie5, including the dog show and Comicon is embracin8 a broader programme, beyond the more traditional heritaee oller. Thi5 15 proving successful with the added benefit of stren8thenins volunteer en8agement for those who wish to get involved in events delivery. The conferencing market has shown some signs of return with bookings for both the Gothic Wharf and Cromford Creative. Th￿S remains an area for developrRent. Renewed engagement with East Midlands Chamber and local organisations and businesses have increased bookings Wlthin Cromford Creative and the Gothic Wharf. Membership Arkwri8ht Society membership has remained constant and the support of the loyal base of member5 Wlth membership numbers sustained. Crgmford Mlll Ltd The Arkwright SocietV'5 trading arm is the catering and retail offer. Catering income has grown over the year. and remains the highest proptsrtion of income generation for both the trading arm and Society. However. the challen8e5 have been significant with several external factors affettin8 sales. These are.. unpredictable weather irnpacting on general visitor numbers, shortages in Staff recruitment la national problem driven by changing working patterns and the possible impact of Brexit on the labour rnarketl. inflation, si8nificantly hi8her utility costs. and cost of living impacts. Retail sales through the mill shop have faced similar challenges. Despite some income growth, this is not proved profitable. Changes were made to improve the visitor experience offer and support the delivery of the heritage tours through the visltor experience team. c. Fundralsln8 activities and income generation Fundraising through normal tradin8 activitie5 has increased this year in comparison to 2021122. This has been bolstered with staff training in 'making the ask,. which has been most effective at events. The NLHF grant has supported ways to improve fundraising and income generation, includin8 provision of on-site donation boxe5. This work continues throu8h 2023. Notably several ticketed events, like Shine a Light and vi51t5 Wlth Father Christma5 have been introduced, with plans to further refine and expand these offerings while maintaining free entry to the site, and balancing allordability with the need to generate income. Page 7 THE ARKWRIGHTSOCIETY LIMITED IA company limited by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Flnunclol revlew a. Going concern The Group'5 Ios5 lor the year of £367.074 con51St5 of a surplus in Testrieted funds ot £72.974 and105s in unrestricted funds of £440,048. Net current liabilities are £49.265. These figures reflect the challenging trading conditions and the nurnerous external facrors the Society faces. Despite lacking core funding, the Society has successfully secured capital and funding for the delivery of activities. from the National Heritage Lottery Fund. Historic England and the Pilgrim Trust for expenditure spanning 2023-2025. This significant SUPPOrt from funders reflecrs iheir acknowledgement of the Society's needs and their confidence in it5 capacitv to execute projects and progress. Moreover, the Society has maintained 5tron8 SUPPOrt from its lenders with the AHF granting capital repayment holidays during the recovery period and con515tent capital repayments to the Charity Bank and Lloyds. The Trustees have prepared forecasts of income and expenditure and cash flow for a period of 12 months from approval of these financial statements which show that they will be able to operate within the facilities available to them. The Trustees recognise the facilities include increased grants and donations and have appointed a Development Manager, as fundraiser to support this initiative a5 priority. The Trustees acknowledge there is some uncertainty surrounding the funrlraising targets, however, these have been subjecied to sensitivity analysis which take5 a prudent view. The resulting forecasts and cash flow referred to above show the facilities to be sufflcient and therefore, the Trustees belleve that it is appropriate to prepare the accounts on a going concern basis. The financial statements do not include the adjystments that might be required should this not be the case. b. Resetrves poll¢v The Trustees have considered the reserves held by the Arkwright Society as of 31 March 2023. The Society needs reserves to enable it to develop ils long term aims as well as ensuring the continuation of current activities. It is the Trustee5' ambition to hold free reserves in cash which will be sufficient to cover three months operating costs. In order to meet Iheir responsibilities, the Trustees have reviewed the requirements and risks faced by the Society both in the short and medium term. Total funds at the year-end stood at £3,887k 12022.. £4.255k a5 re5tatedl of which £1,542k 12022.. £1.982kl were unrestricted funds. The unrestricted reseNes are £1,542k but as shown in the aciounts the unrestricted reserves already invested in the tangible fixed assets are in excess of this figure. Accordinglyi the free reseNes of the charity* being those reserves available to the Trustees for future commitment can be seen to be negative. Net current liabilities are £49,265 represented by unrestricted funds of £570,033 and therefore there are net current assets relating to restricted funds of £520,768. This recognise5 thai the mill site was originally acquired with long term loan5 that are still being repaid. It is the Trustees, long term aim to establish f￿e reserves sufficient to enable a sustainable operation of the mill but until the restoration of the site is complete, that level cannot be quantified. Page 8 THE ARKWRIGHT SOCIETY LIMITED IA company limited by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH2Q23 c. Prln¢lpal ilsks and uncertainties Trustees and mana8ement have reviewed potential risks and challenges the organi5ation could face in light of these challenging and uncertain times and produced an updated Risk reBlSter for the organi5ation. which is reviewed by Trustees on a quarterly ba51S. Structurei governonce otrJdmonugement a. Constitution The Arkwright Society Limited is registered a5 a charitable company limited by guarantee and was Set up by a Memorandum of Association. The company and the group are constituted under a Mernorandum of Association and has a registered charity number 515526. b. Method5 of appointment or electlon of Trustees Trustee5 are appointed on the basis of an analysis of the current skills of the Board and the need to strengthen its ability to direct the allairs of the Sociery. and the individual ability of any nominee to meet any perceived gap in skills and other qualities they may bring to the Society. c. Organls8tlonal structure and decision-mzking policies At present the Society is managed by irs Trustee body, the Board of Trustees. This body meets up to ten tirnes each year and has up to 12 members. Within the Board of Trustees there are three sub committees.. Nominations, Audit and Risk and Remuneration Committee5 which meet as required. In April 1994 the then Council ol hA3nagement established a trading company, Cromford Mill Limited, and appointed Directors to manage it. These meet on a regular basis and from time to time report to the Board of Trustees. d. Pollcles adopted for the induction and trainlng of Trustees The charity recognises its responsibility to ensure all new Trustees are given a Trustee Induction pack prior to appointment and meet with the Chair and CEO to clarify the responsibilities undertaken as a Trustee. Trustees also artend available external training courses. e. Terms and Conditions of Employment The Board of Directors of The Arkwright Society. who are the Society's Trustees. and the Senior Leadership Team comprise the key management personnel of the charity in charge of directing and controlling. running and operatlng the Society on a day to day basis. All Directors give their time freely and nts Director received ￿muneratIon in the year. Details of Directors, expenses are dlsclosed in note 16 to the account5. Page 9 THE ARKWRIGHT SOCIETY LIMITED IA company limited by guzranteel TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Structure, 8¢)vernance and management l¢ontlnuedl The Terms and Conditlons of all staff are reviewed annually, usually in March. by the Remuneration Committee whollv made up of Trustees. The Cornrnittee operates within the framework of the following principles: Ability to attract staff of the right talibre and experience Ability to retain such staff Allordability within the Societ¢s financial resources Salarie5 and conditions are considered in the context of the local rnarket. having re88rd to the particular skills and knowledge required to manage a substantial building preservation trust in the charitable sector and in a commercial environment. Whilst there is an annual review, there 15 no comrnitment to increase salaries or improve conditions, balancing affordability and the need to remain competitive. f. Flnanclal rlsk mana8ement The Trustee5 have a risk management strategy which comprise5'. a Risk Re8lSter which sets out the principal risks and uncertainties that the charity and its subsidiary Cromford Mill Limited face, Thi5 15 reviewed by the Senior Leadership Team and Trustees on a quarterly basis. the establishment ol policies. systems and procedures io mirigate those risks identified in the review5.' and the implementation ol procedures designed to minimise or manage any potential impact on the charitv should those risks materialise. As in prior years. this work ha5 identified that financial sustainability is the major financial risk for both the charity and its subsidiary. A key element in the management of financial risk is a regular review of available liquid funds to settle debts as they fall due, regular liaison with the bank and key funders. and 3rtive management of trade debttsts and creditors balances. to ensure sufficient working capital by the Society and its subsidiary company. Attention is focussed on non-financial risks arising from fire, health and safety. and food hygiene. These risks are managed by ensuring accreditation is up to date, having robust policies and procedures in place, and regu18r awarene55 training lor staff working in these operational areas. Health and Safety reports are tabled at each Trustee meeting. g. Internal control The Trustees have overall responsibility for ensuring that the charity has an 3ppropriate system of financial management and other necessary contro15. This is detailed in the Internal Control Manual. They are also responsible for Safeguarding the assets of the charity and to this end must ensure that ￿asonable steps are taken lor the prevention and detection of fraud and any other irregularities. The Tru5tee5 accept that it is their responsibility to ensure that proper records are maintained, and accurate financial information is collected and retained and that the charity complies with the relevant laws and regulations. The charity's Trustees recognise that whatever system is in place must be seen as managing rather thall eliminating the risk of failure tts achieve the charity's objectives and can only provide reasonable rather than absolute reassurance in these matters. Page 10 THE ARKWRIGHT SOCIETY LIMITED IA company limSted by 8uaranteel TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 plans lor future perlods Future development5 The Society's locus for 2023-2024 has been centered on restorin8 a more stable trading pattern while advancing the commissioning of the Strategic 8usine55 Plan and a refreshed masterplan. This strategic effort places priority on the restoration and repurposing of Building I, with the need to expediate the acouisition of significant capital f(Jnding to esrablish a sustainable long-term income stream for the Society. Grants from Historic England and The Pilgrim Trust will facilitate an interim repair solution for the First Mill. This solution will include decontamination ol the third floor, urgent high-level repairs and the replacement of the part asbestos roof with 3 lightweight alternative. This will ensure the building is watertight and stable until a permanent solution is realised. Furthermore, 8rant aid from Historic England has asso been secured for urgent repair5 to part of Building I rendered elevation. During 2024, the Arkwri8ht Society plans to host a temporary exhibition on Florence Nightin8ale in collaboration with the Florence Nightingale Museum Trust. Additionally, the 5Ite will welcome several historic objects from the former Belper North Mill Museum, showcasing them in the visitor centre as part of the broader interpretation of the Derwent Valley's historical and technological significance. Information on fundr3i51ng practlces The charity raises funds through its commercial activities, donations, legacies and membership. Funds raised through these activitie5 are allocated to general funds, unless specifically agreed with an individual or organization. Funding for specific projects may be sought via sponsorship, donations, crowd fundin& local fundr3i5ing activities and event5. The allocation and purpose of those funds is made clear to donors and funders at the time of contribution. A Development Manager has been appointed to take forward fundraising activities and grant applications for the Society. Their responsibility includes upholding the Societls commitment to ethical practices throughout all fundraising endeavour5. The Arkwright Society does not use external, professional fundraising organisations or individua15 to raise funds on it5 behalf. It ensures no fundraising activities it undertakes will exploit vulnerable individuals or intrLJde into an organi5ations' or individu31s' privacy. The Trustees and Senior Leadership Team have received no complaints in relation to fundraising or expenditure of its funds and ensures the use of all fund5 IS transparent and clearly allocated. Page 11 THE ARKWRIGHT SOCIETY LIMITED IA company lirnited byguaranteel TRUSTEES, REPORT ICONTINUEDI FOR TrIE YEAR ENDED 31 MARCH 2023 Statement of Trustees, responsibilities The Trustees Iwho are also the Directors of the company lor the purposes ol company lawl are responsible lor preparing the Trustees, report and the financial statements in accord8nce with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practicel. Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statement5 unless they are satisfied that they give a true and fair wew of the State of affairs of the grtsup and the parent charitable company and of their incoming resources and application of re50ur£es. including their income and expenditure. for that period. In preparing these financial Statements, the Trusiees are required to.. select suitable accounting policies and then apply them consistentlv., observe the rnethods and principles of the Ch8rities SORP 2019 IFRS 1021,. make judgements ?nd accounting estimates that are reasonable and prudent.. state whether applicable UK Accounting Standard5 IFRS 1021 have been followed, subject to any material departures disclosed and explained in the financial statements,. prepare the financial statements on the going concern basis unless it is inappropriate to presurne that the group will continue in operation. The Trustees are re5POn5ible lor keeping adequate accounting records rhat disclose with reasonable accuracy at any tirne the financial position of the group and the parent 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 group and the parent charitable company and hence lor taking reasonable steps lor the prevention and detection of fraud and otheT Dlsclosure of information to auditor In so far as the Trustees are aware.. there is no relevant audit information of which the charitable company's auditor is unaware. and the Trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish th8t the aLiditor is aware of that information. Auditor The auditor, BHP LLP. has indicared their willingness to continue in office. The Trustees will propose a motion reappointing the auditor at a meeting of the Trustees. In approving the Tru5tee5' report, we also approve rhe Directors. report included therein. in our capacity a5 company directors. This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exernption. Approved by order of the members of the Board of Trustees and signed on their behalf by.. ers Date.. kn. Page 12 THE ARKWRIGHT SOCIETY LIMITED IA company Ilmlted by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ARKWRIGHT SOCIETY LIMITED We have audited the financial statements of The Arkwright Society Limited Ithe 'parent charitable company'l and its subsidiaries (the 'group'l for the year ended 31 March 2023, which comprise the consolidated statement of financial activities. the consolidated balance sheet, the company balance sheet, the consolidated statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework th81 has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporring Standard 102 The Financial Reportine Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements- glve a true and fair view ol the state of the 8rtsup's and parent charitable companls affairs as at 31 March 2023, and of the group's incorning resources and application of resources, includin8 Its income and expenditure, for the year then ended,. have been properly prepared in accordance with United KinEdom Generally Accepted Accountin8 Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon We conducte(5 our audit in accordance with International Standards on Audlting IUKI IISAS IUKII and applicable law. Our responsibilities under thtsse standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group and p8rent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statemenis in the UK. including the FRC'S Ethic31 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. Material uncertainty related to 8oln8 toncern We draw attention to nore 2.2 in the fiNancial statements. which indicates the events and conditions that may cast Significant doubt on ihe Group's ability to continue as a going concern. As stated in note 2.2. these events or conditions, along with the other matters as set forth in note 2.2, indicate rhat a material uncertainty exists. In forming our opinion, which is not modified, we have considered the adequacy ol the disclosures made in note 2.2 of the financial statements concerning the group and parent charitable company's abiliry ro continue as a going concern. The group incurred a net deficit of £367.074 during the year ended 31 March 2023 and as at that date the group has negative free reserve5 of £570.033. These conditions, along with the other matter5 explained in note 2.2 to the financial statements indicate the existence of a material uncertainty which may cast significant doubt on the group'5 and parent charitable company's ability to continue as a going concern. The financial 5taternents do not include the adjustments that would result if the group and parent charitable company was unable to continue as a going concern. Our responsibilities and the resFK)nsibilities of the Trustees with respett to 80in8 concern are described in the relevant sections of this report. Other tnformatlon The other information cotnpri5es the information included in the Trustees, report, other than the financial starements and our auditorfs report thereon. The Trustees are responsible for the other information. Our oplnion on the financi31 statements does not cover the other information and, except to the extent otherwise e¥plicitly stated in our report. we do not express any form of 35surance conclusion thereon. Our re5pon5ibility is to read the other information and, in doing $0. consider whether the other inforrnation is materially inconsistent with the financial 5tatement5 or our knowled8e obtained in the course ol the audit or otherwise appears to be materially mi5Stated. If we identify such material Page 13 THE ARKWRIGHT SOCIETY LIMITED IA company limited by guarantee) INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF THE ARKWRIGHT SOCIETY LIMITED inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material missiatement in the financial statement5 themselves. If, based on the work we have performed, we conclude that there is material misstatement ol this other information, we are required to report that fact. We have nothing to report in thi5 regard. Opin40ns on other matters prescribed by the Companies Act 2006 In our opinion. based on the work undertaken in the course ol the audit.. the information given in the Trustee5' report. which include5 the Directors. report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements,. and the Directors. report included within the Trvstees. report has been Prepared in accordance with applicable legal requirements. Matters ort which wè are required to report by exception In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified rnaterial misstatements in rhe Directors, report. We have nothing to report In respect of the followin8 matters in relation to which the Companies Act 2006 req(Jires us to report to you if. in our opinion.. adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by u5., or the parent charitable companls financial statements are not in agreement with the accounting records and returns.. or certain disclosures of Directors. remuneration specified by law are not made., or we have not received all the information and explanation5 we require lor our audit,. or the Trustees were not entitled to prepare the financial Statements in accordance with the small cornpanies. re8ime and take advantage of the small companies, exemptions in preparing the Directors, report and from the requ1￿ment to prepare a strategic report. Respon$lbillties of Trustees As explained more fully in the Trustees, responsibilities statement, the Trustees (who are also the Oirectors of the parent charitable company lor the purposes of company lawl are responsible for the preparation ol the financial statements and lor 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 a55e55ing the group and parent charitable compan¢s 3bility 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 group or parent charitable company or to cease operations, or have no realistic alternètive but to do so. Page 14 THE ARKWRIGHT SOCIETY LIMITED IA company Ilmited by guarantee) INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OFTHE ARKWRIGHTSOCIETY LIMITED ICONTINUEDI Auditor responslbllltles for the audit of the finarbcial statement5 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 8u)rantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exist5. Mi55tatements can arise from fraud or error and are considered material if, individually or in the a8gre8ate, they could reasonably be expected to influence the economic deci5ion5 of users taken on rhe basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We desien procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures ère capable of detecting irregularities. including fraud is detailed below.. the engagement partner ensured that the en8agement team collectively had the appropriate cornpetence. capabilities and skills to identify or recognise non-cornpliance with applicable laws and regulations,. we identified the laws and regulatlOn5 applicable to the entity through discussions with Trustees and other managernent. and from our knowledge and experience ol the 5ector.' we focused on Specific laws and regulations which we considered may have a direct materi31 effect on the financial 5taternent5 or the operations of the group and parent entity, including safeguarding legislation, health and s3lety requirements including fire safetyi food hygiene. data protection laws. the Charities Act 2011 and the Companies Act 2006,. we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting leg31 correspondence., and we ensured identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audlt. We assessed the susceptibility of the entity's financial statements to material misstatement, including obtaining an understandin8 of how fraud might occur. bv.. making enquirie5 of management as to where they considered the￿ was susceptibility to fraud, their knowledge of acrual, suspected and alleged fraud,. and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To addres5 the risk ol fraud through management bia5 and override of controls. we performed analytical procedures to identify any unusual or unexpected relationship5.' tested journal entries to identify unusual transactions,. assessed whether judgernents and assumptions made in determinin8 the accountin8 estimates were indicative of potential bia5,' and investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedure5 which included. but were not limited to.. a8reeing financial statement dlsclosures to undeTlying supporting documentation,. reading the minutes of meetings of those charged with governance., and enquiring of management as to actual and potential litigation and claims. Because of the Inherent limitations ol an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the lin3ncial statements or non-compliance with regulation. This risk increase5 the Pa8e 15 THE ARKWRIGHT SOCIETY LIMITED IA company Ilmlted byguaranteel INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ARKWRIGHT SOCIETY LIMITED ICONTINUEDI more that compliance with a law or regulation is rernoved from the events and transactions reflected in the financial statements. as we will be les5 likely to become aware of instances ol non-compliance. The risk is a150 greater regarding irreeularities occurring due to fraud rather than error, as fraud involve5 intentional concealment. foreery, collusion. omission or misrepresentation. A further description of our respon5ibilitie5 is available on the FRC'S website at.. www.frc.org.uvauditorsresponsibilities. This description forms part of our auditorf5 report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's member5 those rnatters 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 coinpanws members as a body. for our audit work, for thi5 report, or lor the opinions we have formed. Signer ID AV3MHV6Q7Z.. Jane Marshall Isenior statutory auditor) for and on behalf of BHP LLP Chartered Accountant5 Statutory Auditor 2 Rutland Park Sheffield SIO 2PD Date.. 2710312024 GMT Page 16 THE ARKWRIGHT SOCIETY LIMITED IA company limited by guafanteel CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 MARCH 2023 As restated Tot81 funds 2022 Unrestricted funds 2023 Restricted fund5 2023 Totsl funds 2023 Note Income from: Donation5 and legacies 23,325 220,775 244,1(Kl 54.544 504,673 650,767 1,035 35.306 539,979 650,767 1.035 562,722 604,957 15 Other trading activities Investments Other income 66.044 66,044 321,328 Total lficome I,Z45,844 256,081 1,501.925 1,543,566 Expendlture on: Raising funds Charitable activities 581,845 1,112,543 581.845 1,287,154 487,092 1,111,617 io 174,611 Totsl expendlture 1,694,388 174,611 1,868,999 1,598,709 Net lexpenditurellincome before taxatlon Taxation 1448,5441 81,470 1367,0741 155,1431 13,6731 Net lexpendlturelllncome after taxation Transfers between fund5 1448,5441 8,496 81,470 18,4961 1367,0741 158,8161 26 Net movement in funds 1440,0481 72,974 1367,0741 158,8161 Reconciliation of funds: Total funds brought forward a5 previously stèted 1,982,261 2,236,221 36,054 4.218,482 36,054 4,313,352 Prior year adjustrnent 25 Total funds brought forward as restated Net movement in funds 1,982,261 1440,¢)481 2,272,275 4.254,536 1367,0741 4,313,352 158,8161 72,974 Tgtal funds carrled forward 1.542,213 2,345,249 3,887,462 4,254,536 Page 17 THE ARKWRIGHT SOCIETY LIMITED IA company Itmited by guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES IINCORPORATING INCOME AND EXPENDITURE ACCOUNT) ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 The consolidated statement of financial activities complies with the requirements for an income and expenditure account under the Companies Act 2006 and includes a11 gains and losses recognised in the year. All income and expenditure derive frorn continuing activities. Page 18 THE ARKWRIGHT SOCIETY LIMITED IA company Ilmlted byguaranteel REGISTERED NUMBER.. 01630237 CONSOLIDATED BALANCE SHEET AS A T31 fvIARCH 2023 As rest3ted 2022 2023 Note Flxed asset$ Tangible a55et5 Heritage assets 17 950,028 3.925,164 957,184 3,925,164 18 4.875,192 4,882,348 Current assets Stocks 20 21,228 117,282 350.749 14.048 Debtors 21 67.878 734,875 Cash at bank and in hand 489,259 816,801 Creditors.. amounts falling due within one year 22 1538,5241 1437,1451 Net cuNent Iliabi1Stlesl l assets 149,2651 379,656 Total assets less current liabllltles 4,825,927 5,262.004 Creditors.. amounts falling due after more than one year 23 1913,7671 124,6981 1980,5471 126.9211 Accruals and deferred incorne 24 Total net assets 3.887,462 4,254.536 Charlty funds Restricted funds (includes revaluatlon reserve of £24,90112022.. £24,90111 Unrestricted funds (includes revaluation reserve of £2,007,75012022.. £2,007,75011 26 2,345,249 2,272.275 26 1.542,213 1,982,261 Total funds 3,887,462 4,254.536 Page 19 THE ARKWRIGHT SOCIETY LIMITED IA ctsmpany limited by guarantee) REGISTERED NUMBER.. 01630237 CONSOLIDATED BALANCE SHEET ICONTINUEDI ASA T31 MARCH 2023 The trustees acknowledge iheir responsibilities for cornplying with the requirements of the Act with ￿SpeCt tts accounting records and preparation of financial statements. The financial 5tBtements have been prepared in accordance with the provisions applicable to entities subject to the small companie5 regime. The financial Statements were approved and authorised for issue by the Trustees and signed on their behalf by.. Date.. The note5 on pages 24 to 52 form part ol these financial statements. P3ge 20 THE ARKWRIGHT SOCIETY LIMITED IA company Ilmlted byBuaranteel REGISTERED NUMBER.. 01630237 COMPANY BALANCE SHEET ASA T31 MARCH2025 As restated 2022 2023 Note Foxed assets Tangible assets Heritage assets Investments 17 846,544 3,925,164 847,533 3.925,164 18 19 4,771,710 4.772.699 Current assets Debtor5 21 111.005 306A31 91,675 590,942 Cash at bank and in hand 417.836 682.617 Creditors.. amounts falling due within one year 22 1438,7341 1341,1701 Net current assets 120,8981 341,447 Totsl assets less current liabilities 4,750,811 5,114,146 Creditors.. amounts falling due alter more than one year 23 1879.7861 1917.2411 Total net assets 3.871.026 4,196,905 Charlty funds Restricted funds linclude5 revaluation reseNe of £24,90112022.. £24.90111 Unrestricted lund5 lincludes revaluation reserve of £2,007.75012022.. £2,007,75011 26 2.345,249 2,272,275 26 1,525,777 1,924,630 Total furbd5 3,871.026 4,196,905 Page 21 THE ARKWRIGHT SOCIETY LIMITED IA company limited byKuaranteel COMPANY BAIANCE SHEETICONTINUEDI A5 Af31 MARCH 2023 The company has taken advantage of the exemption allowed under section 408 of the Companie5 Act 2006 and ha5 not presented its own statement of financial activities. The company's net movement in funds lor the year was £1325,8791 12022 1£123.8871 a5 re5tatedl. The Trustees acknowledge their responsibilities for complying with the requirement5 01 the Act with respect to accounting records and preparation of financial statements. The financial 5taternents have been prepared in accord3nce with the provisions applicable to entitie5 subject to the small companie5 regime. The financial statement5 were approved and authorised lor issue by the Trustees and signed on their behalf by.. Date.. The notes on pages 24 to 52 form part of these financial statements. Page 22 THE ARKWRIGHT SOCIETY LIMITED IA cornpany Ilmlted by guarantee) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023 2023 2022 Note Cash flows from operatlng artlvltles Net cash (used inl/provided by operating activities 29 1253,5781 80.125 Cash flows from investing activltles Proceeds from the sale of tangible fixed assets Purchase ol tangible fixed assets Tax paid 195 123,1611 13,56ZI 118.6371 Net cash used In investing activities 126,7231 118,4421 Cash flows from financlng a¢tl¥ltles Repayments of borrowing Interest paid 190,8431 112,98ZI 149.5531 148,5731 Net cash vsed In finan¢ln% activltres 1103.8251 198,1261 Change in cash and cash equlvalents In the year Cash and cash equivalents at the besinnin8 of the year 1384,1261 136.4431 734,875 771,318 Cash and ¢ash equfvalent5 at the end of the year 30 350,749 734.875 Page 23 THE ARKWRIGHT SOCIETY LIMITED IA company Ilmited byguaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 General Informatlon The company is a company limited by guarantee. The members of the company are the Trustees named on p88e l. In the event of the company being wound up, the liability in respect ol the guarantee is limited to £1 per member of the company. Accountln8 poll¢les 2.1 Bu5is oApreporotion offinonciolstutements The financial statements have been prepared in Bccordance with the Charities SORP IFRS 1021 Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charitie5 preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (issued in October 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. The Arkwright Society Limited wneets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unle55 Otherwise stated in the relevant accounting policy. The financial siatements are prepared on a going concern basis under the historical cost convention, modified to include certain items and fair value. the financial staternents are presented in sterlin& which is the functional currency of the Char￿tY and rounded to the nearest £1. The consolidated statement of financial activities ISOFAI and consolidated l)alance sheet consolidate the financial 5tatement5 of the group and it5 5ub5idiary undertaking. The results of the subsidiary are consolidated on a line by line basis. The group has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of financial activities in these financial statemenrs. 2.2 Going concern The Group's loss for the year of £367,074 consists of a surplu5 in restricted funds of £72.974 and 105$ in unrestricted funds of E440,048. Net current liabilities are £49.265. These fi8ures reflect the challenging trading conditions and the numerou5 external factors rhe Society lace5. Despite lacking core fundin& the Society ha5 successfully secured capital and funding for the delivery of activities. from the National Heritage Lottery Fund. Historic England and the Pilgrim Trust for expenditure spanning 2023-2025. This significant supporr from funders reflects their acknowledgement of the Societrfs needs and their confidence in its capacity to execute project5 and progress. Moreover, the Society has maintained strong support from its lenders with the AHF granting capital repayment holidays during the recovery period and consistent capital repayments to the Charity Bank and Lloyds. The Trustees have prepared forecast5 of incorne and expenditure and cash flow for a period of 12 months from approval of these financial statements which show that they will be able to operate within the facilities available to rhem. The Trustees recognise the facilities include increased grants and donations and have appointed a Development Manager, as fundraiser to support thi5 initiative as priority. The Trustees acknowledge there is some uncertainty surrounding the fundraising targets, however, these have been subjected to sensitivity analysis which takes a prudent view. The resulting forecasts and cash flow Page 24 THE ARKWRIGHT SOCIETY LIMITED IA company limited byguaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Ac¢ountlng policie5 Icontlnuedl 2.2 fjolng concern Icontinuedg referred to above show the facilities io be sufficient and therefore, the Trustees believe that it is appropriate to prepare the accounts on a going concern basis. The financ￿al 5tatemenrs do not include the adjustments that might be required should this not be the case. 2.3 Income All incorne is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amounr receivable. Evidence of entitlement to a legacy exists when the company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death ol the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of è legacy must be recogni5ed when it is probable that it will be received and the fair value of the arnount receivable, which will generally be the expected cash amount to be distributed to the company, can be reliably measured. Where the donated good is a fixed asset, it is rnea5ured at fair value, unless It 15 irnpractical to measure this reliably, in which case the cost of the item to the donor should be used. The 8ain 15 recognised a5 income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in 8ccordance with the company's accountine policies. On receipt, donated professional services and fac11ities are recognised on the basis of the value of the gift to the company which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market,. a correspondin8 amount is then reco8nised in expenditure in the period of receipt. Income tax recoverable in relation to donations received under Gift Aid or deeds of £ovenant is recognised at the time of the donation. Income tax recoverable in relation to investment incorne is recognised at the time the investment income is receivable. The Coronavirus Job Retention Scheme income is recognised in the period in which it relates on an accruals basis. Page 25 THE ARKWRIGHT SOCIETY LIMITED IA company limited byguaranteel NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Accounting policles Itorttinuedl 2.4 Expendlture Expenditure is reco8nised once there is a 1ega1 or constructive obligation to transfer econornic benefit to 8 third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obli8ation can be measured reliably. Expenditure is classified by activity, The costs of each activiry are made up of the total of direct costs and shared costs, including 5UPPOrt costs involved in undertaking each activity. Direct £ost5 attributable to a single activity are allocated directly to that attivity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are 3PPOrtioned between those activitie5 on a ba515 consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Expenditure on raising fund5 include5 311 expenditure Incurred by the Broup to raise funds for its charitable purposes and includes c05t5 of all fundraising activities events and non-charitable tradinB. Expenditure on charirable activities is expenditure incurred on directly undertaking the activities which further the group's objectives. as well 8s any associated support costs. All expenditure is inclusive of irrecoverable VAT. 2.5 Interest receivoble Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the group.. thi5 is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. 2.6 Toxution The company is considered to Pa5S the tests set out in Paragraph I Schedule 6 of the Finance Acr 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly. the company is potentially exempt frorn taxation in respect of income or c3Pltal gains received within categories covered by Chapter 3 Part 11 ol the Corporation Tax Act 2010 or Section 256 01 the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. Tax is recognised in profit or loss except that a charge attributable to an liem of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also reco8ni5ed in other comprehensive income or direttly in eouity respectively. The current intorne tax charge is calculated on the basis of tax rates and laws that have been enacted OT substantively enacted by the balance sheet date in the countries where rhe company operates and 8enerates income. 2.7 Tongiblefixedossets ond depreclotlon Tangible fixed assets are initially recognised at cost. After recognition. under the cost model. tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to brin8 a tangible fixed asset into its intended working condition should be included in the measurement of cost. Page 26 THE ARKWRIfjHT SOCIETY LIMITED IA company Ilmited by 8uaranteel NOTESTO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 MARCH 2Q23 Accounting polides l¢ontlnuedl 2.7 Tuntyiblef￿ed 055ets und depreclutlon Icontlnuedj Depreciation is charged so as to allocate the c05t of tangible fixed a55et5 le5S their residual value over their estimated useful lives. Depreciation is provided on the following bases.. Fixtures and fittings Cromford Wheatcroft 25% reducing balance or 5 year5 Straight line 25% reducing balance Included in fixtures and fittings is a picture held at its original cost of £2.500. Thi5 asset has not been depreciated because it is of the opinion of the Trustees that the a55et is not impaired by the pa$5age of time and in consequence any element of depreciation would be irnmateriol. Freehold and long leasehold buildings and heritage assets are held at valuation. Depreciation 15 provided in order to write off the v31ue of the properties to their residual value over their useful lives. The residual value is the amount that the charity would currently obtain from disposal of an a55et, alter deductlng the estimated costs of disposal. The current resirlual values are equal to the net book value so that any element of depreciation would be immaterial. Therefore no depreciation is being provided on the properties held at valuation. The Trustees carry out annual impairment reviews to ensure the carrying value of the freehold property remains appropriate in compari50n with residual value. 2.8 Herituge assets eritage a55ets are recognised on the balance sheet and initially measured at cost when purchased or if donated, their valuation. Assets are subsequently stated at valuation less accumulated impairment losses. Acquisition5 only arise when donated to the charity or if it Is believed that they will further the charity'5 objectives. Once acquired they will be preserved by the charity in order to keep their historical. artistic. scientific. technological, geographical or environmental qualities to such a high level as to contribute to knowledge and culture. A register of all assets held by the charity is available and the 3ssets themselves are accessible to the public with prior agreernent. Heritage assets are to be held for the foreseeable future. One heritage asset had previously been held under the historical cost model however, durinB 2021 an indicator of impairrnent existed which led to a lull valuation of the asset being carried out by David Brown Commercial professional valuers on 31 March 2021. The valuation of the asset, based on future rentBI yield. was El,622,413. In the opinion of Trustees, the value of the asset has not changed since this valuation as there has been no significant capital improvements made to the asset, it has been maintained in a good state of repair and rental income achieved on the asset has not significantly changed in value. A prior year adjustment has therefore been applied to reverse the depreciation charged on the asset in the year ended 31 March 2022. Further details regarding the impact of the prior year adjustrnent can be found in note 25. Page 27 THE ARKWRIGHT SOCIETY LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AIARCH 2023 A¢¢ountlng policie5 Icontlnuedl 2.9 Investfftents Fixed a55et investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at lair value at the 8a13nce Sheet date. unless the value cannot be measured reliably in which case it is me35ured at cost less impairrnent. Investment 8ain$ and losses. whether realised or unrealised, are combined and presented as 'gainslllossesl on investments. in the consolidated statement of Investments in subsidiaries are valuefl at cost le55 provision for impairment. 2.10 Stocks Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. 2.11 DebtC*fs Trade and other debtor5 are recogni5ed at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discount5 due. 2.12 Cash ut bunk L7nd rn ht¥nd Cash at bank ènd in hand includes cash 3nd short-term highly Siquid investments Wlth a short maturity of three months or less from the date of acqui51tion or opening ol the deposit or similar account. 2.13 Liabilitles provisions Liabilities and provision5 are recognised when there 15 an obligation at the Balance Sheet date as a result of 8 past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement c8n be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the arnount it has received as advanced payment5 forthe goods or service5 It must provide. Provisions are measured at the best estimate of the amounts required tts settle the obligation. Where the ellect of the time value ol money is material, the provision 15 based on the present value of those amounts. discounted at the pre-tax discount rate that reflect5 the risk5 Specific to the liability. The UnW￿ndIng 01 the discount is recogni5ed in the consolidated statement of financial activities as a finance cost. 2.14 Flnunciol instruments The group only has financial assets and financial liabilitie5 of a kind that qualify as basic financial instruments. Basic financial instrument5 are initially recognised at transaction value and suljseouently measured at their settlement value with the exception of bank loans which are Subsequently measured at amort15ed cost using the effective interest method. Page 28 THE ARXWRIGHT SOCIETY LIMITED IA company limited by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR TIIE YEAR ENDED 31 MARCH 2Q23 Accounting policies Icontifiuedl 2.15 Operating leases Renta15 paid under operating leases are charged to the consolidated statement of financial activities on a straight line basis over the lease term. 2.16 Fund uccounting General fund5 are unrestricted funds which are available for use at the discretion of the TrLJStees In furtherance of the general objectives of the parent charity and which have not been designated for other purpose5. Restritted fund5 are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the parent charitable company for particular purpose5. The costs of raising and administering such fund5 are charged against the specific fund. The aim and use ol each restricted fund is set out in the notes to the financial statements. 2.17 Employee benellts When ernployees have rendered service to the charityi short-term employee beneflts to which the employees are entitled are recognised at the undiscounied amount expected to be paid in exchange for that service. The charity operates a defined contribution plan for the benefit of its employees. ContribLJrions are expensed as they become payable. Redundancy benefits are payable when employment is terminated before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The charitable company recognises redundancy benefits when it is committed to terminating the employment of current employees according to a detailed form31 plan without possibility of withdrawal. Crltical accountin8 estimates and areas of ludgemerbt Estimates and judgements 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. Critlcal accounting estimates and assumptions.. The company makes estimates and assumptions concerning the future. The resulting accountin8 estimates and as5UrnPtions will. by definition, seldom equal the related actual results. Freehold and long leasehold buildings and heritage assets are held at valuation. The valuations are carried out on a periodic basis by an independent qualified valuer. Page 29 THE ARKWRIGHT SOCIETY LIMITED IA company limlted by guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Income from donations and legacies Unre￿ricted funds 2023 Restritted funds 20Z3 Total funds 2023 Total funds 2022 Oonations and gifts received Grants receivable 23.32S 21.591 199.184 44.916 17,254 199,184 37,290 23.325 220,775 244,100 54,544 Total 2022 53.602 942 54,544 Income from charltable a¢tlvltles Unre5trirted fund$ 2023 Restrlcted funds 2023 Totsl funds 2023 Total funds 2022 Property serwices Visitor services 374,239 74,469 55.965 15.000 14.589 5.717 389,239 89,058 61,682 390,029 129,325 43,368 Education and tours Tota12023 504,673 35,306 539,979 562,722 Total 2022 426,885 135,837 562.722 Page 30 THE ARKWRIGHT SOCIETY LIMITED IA comparry limited by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Income Irom other trading actlvltles Income from non Charitable tiading activlties Unrestrl¢ted funds 2023 Total flbnds 2023 Total funds 2022 Fundraising events Cromford Mill Limited sales 7,391 643,376 7.391 643.376 6,260 598,697 650,767 650.767 604,957 Total 2022 604,957 604,957 Investment iThcome Unrestrl¢ted funds 2023 Total funds 2023 Total funds 2022 8ank interest receivable 1,035 1,035 15 Total 2022 15 15 Page 31 THE ARKWRIGHT 50CIEfY LIMITED IA company Ilmlted by8uaranteel NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2923 other Income Unrestricted funds 2023 Restricted funds 2023 Total funds 2023 Total funds 2022 Car park income Insurance claims 65.544 500 65,544 500 57.941 Other government covid support CJRS income 261,929 1.458 66,044 66.044 321,328 Total 2022 59.927 261.401 321,328 Expenditure on raising funds Dlrectcost5 Unrestricted fund$ 2023 Total fund5 2023 Total funds 2022 Cromford Mill Limited- other ctssts Cromlord Mill Limited- wages and salaries Cromlord Mill Limited- Nl 277.207 283,457 15,763 5,418 Z77,207 283,457 15,763 5,418 244,435 226,978 11,497 4,182 Cromford Mill Limited- pension cost5 581,845 581.845 487.092 Total 2022 487,092 487,092 Page 32 THE ARKWRIGHT SOCIETY LIMITED IA company Ilmlted byguaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2Q23 io. Anaty5is of expendlture on charitable aciivitles Summary byfund type Unrestricted funds 2023 Restritted fijnds 2023 As restated Ttstal 2022 Total 2023 Visitors seNices 350,970 378,772 227,413 132,405 22.983 29,357 137,225 3,161 4.868 380,327 515,997 259.129 412,311 303,578 Property services Heritage site management Building 17 Governance (note 131 230.574 137,273 22,983 118.989 17,610 1,112,543 174.611 1,287,154 1,111.617 Total 2022 las restated) 844,880 266.737 1,111,617 ii. Analysls of expenditure by adlvltles Activitles undertaken directly Support costs 2023 2023 As restated Total funds 2022 Total fund5 2023 Visitor5 services 349,765 411,870 107,966 30,562 104,127 122,608 380,327 515,997 230,574 137,273 22,983 259.129 Property services Heritage site management Building 17 Governance (note 131 412,311 303,578 137,273 118,989 17,610 22,983 1,006,874 280,280 1,287,154 1,111,617 Total 2022 las restated) 903.335 208,282 1.111,617 Page 33 THE ARKWRIGHT SOCIETY LIMITED IA company Ilmited byguaranteel NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED31 MARCH 2023 ii. AnaFysis of txpendlture by adlvltles Icontinuedl Analysis of support costs Total funds 2023 Total funds 2022 Staff costs 245,217 12,080 22,983 181,802 8,870 17.610 Payroll and bookkeeping fees Governance c05t5 (note 131 280,280 208,282 Support costs are allocated based on a % of time spent. 12. Net incomellexpenditurel This is stated after charging.. A5 restated 2022 2023 (Profitllloss on disposal of tangible fixed assets Depreciatitsn of tan8ible fixed assets owned by the group 34 30,317 59,781 13. Governance cost5 Unrestficted funds 2023 Total funds 2023 Total funds 2022 Audit and accountancy fees 22,983 22.983 17,610 Total 2022 17,610 17,610 Page 34 THE ARKWRIGHT SOCIETY LIMITED IA company Ilmlted by 8uafanteel NOTES TO THE FINANCIAL5TATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 14. Auditor'5 remuneration 2023 2022 Fee5 payable to the group's auditor for the audit of the annual accounts 17,720 17.480 Fees payable to the group's auditor in respect of.. All non-audit services not included above 5,250 580 15. Staff costs Group 2023 Group 2022 Companv Company 2022 2023 Wages and salaries Social security costs Contribution to defined contribution pension schemes 789.410 53,961 645.021 41.696 505,953 38,198 418.043 30,199 19,616 14,187 14,198 10,005 862,987 700,904 558,349 458,247 The average number ol persons employed by the group durin8 the year was as follows.. Groyp Group 2022 2023 No. Tourism and vi51tor service5 io Site maintenance Catering and retail Administration and sUPPOrt 21 26 io 46 47 Page 35 THE ARKWRIGHT SOCIETY LIMITED IA company limited by 8uaranteel NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 15. Staff costs Icontlnuedl The average headcount expressed as full-time equivalents was.. Group Group 2022 No. 2023 No. Tourism and visitor services Site maintenance Catering and retail Administration and 5UPPOrt 14 13 34 29 No employee received rernuneration amountin8 to more than £60,000 in either year. The total amount of employee benefits received by key rnana8ement personnel including Employers National Insurance and Pension Contributions is £206,14312022.. £179,078). The Trustees consider5 Its key management personnel comprise the Chief Executive Officer, Chief Finance Officer, Operations Director, Head ol Catering and Head of Engagernent. 16. Tru5tees' remuneratlon and expenses During the year, no Trustees received any remuneration or other benefit512022- £NILI. During the year ended 31 March 2023, no Trustee expenses have been incurred12022 £NILI. Page 36 THE ARKWRIGHT SOCIETY LIMITED IA company limited byguaranteel NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED31 MARCH 2023 17. Tangible fixed assets Group Freehold propertv valuatlon Leasehold property valuation Cromford Wheattroft cost Flxtures and tOS1 Total Cost or vtsluation At l April 2022 Additions 393,000 385,000 153A96 210,826 23,161 1.142,322 23,161 Al 31 March 2023 393,000 385,OlXI 153,496 233,987 1.165,483 Depreciation At l April 2022 Charge for the year 51.829 7,674 133.309 22,643 185,138 30,317 At 31 March 2023 59.S03 155,952 215,455 Net book ￿l￿e At 31 March 2023 393,000 385,000 93,993 78,035 950,028 At 31 March 2022 393.0(K) 385,0(K) 101,667 77.517 957,184 Pa8e 37 THE ARKWRIGHT SOCIETY LIMITED IA company limited by guarantee? NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR EJVDED 31 MARCH 2Q23 17. Tan8ible fixed assets Icontinuedl Company FreÈhold propertv valuatloTh leasehold property Flxture5 and flttings CDSt Totsl CDSt or valuotion At l April 2022 Additions 393,000 385,0(Kl 193,506 18,926 971,506 18.926 At 31 March 2023 393,000 385,000 212A32 990.432 Depreciation At l April 2022 Charge for the year 123,973 19.915 123,973 19,915 At 31 March 2023 143,888 143A88 Net book volue At 31 March 2023 393.000 385,000 68.544 846,544 At 31 March 2022 393,0(M) 385,000 69,533 847,533 The group has adopted a policy of revaluation for tangible fixed assets. Had these assets been measured at historic cost. the carrying values would have been a5 follows.. Group Group 2022 2023 Freehold property Long-term leasehold property 135.500 197,599 135,51XJ 197,599 333,099 333,099 Page 38 THE ARKWRIGHT SOCIETY LIMITED IA company limited byKuaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 17. Tangible fixed assets Icontinuedl Freehold property consists of Grace Cottage, Cromford Lock Up, Woodlands at Slinter, Lumsdale Valley, Dunsley Meadows and the car park. Leasehold property consists of Cromford Wharf and Crornlord Station. The freehold Bnd leasehold propertie5 were revalued on 13 July 2021 and the financial statements have been updated to reflect thi5 valu&tion. The valuation was carried out externally and independently by David Brown BSC MRICS RICS. In the Trustees opinion this valuation reflects the values as at 31 March 2023. 18. Heritage assets Group und Compuny Assets held at valuatlon Building 17 Cromford Mill 2023 2023 Total 2023 Carrying value at l Aprll 2022 las restatedl 1,622,414 2,302,750 3,925.164 Carrying value at 31 March 2023 1.622,414 2,302,750 3,925.164 Page 39 THE ARKWRIGHT SOCIETY LIMITED IA company limited bvRuaranteel NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 18. Heritage assets Icontinuedl Analysis of herltage 355et transa¢tlons Group tsnd Compony as restated 2022 2023 Z021 2020 2019 Purchases Heritage assets- at cost 1.392 Totul #ddltlons 1,392 Chorgelordepreciotlonl Impoim?ent Depreciation- herltage assets at cost la5 restated) Impairment- heritage assets at cost 188,2411 188.2431 188.2981 12,349,197) TotulchGrgefor imp#lrment 12.437,4381 188,2431 188,2981 Heritage assets comprise the industrial buildings at Cromford Mill including Buildin8 17 which has undergone a substanti31 renovation completed during 2016. The oldest buildings date back to the second half of the 18th century. The heritage assets were revalued on 13 July 2021 and the financial statements have been updated to reflect this valuation. The valuation was carried out externally and independently by David Brtswn BSC MRICS RICS. In the Trustees opinion this valuation reflects the values as at 31 March 2023. Page 40 THE ARKWRIGHT SOCIETY LIMITED IA company Ilmlted by 8uaranteel NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 3J MARCH 2Q23 19. Fixed asset Investments Investment5 In subsldlory mpanles Compuny Costor voluotlon At l April 2022 At 31 March 2023 Net bt70k value At 31 March 2023 At 31 March 2022 The investment comprise5 100% of the share capital of Cromford Mill ￿mIted, the charity's trading subsidiary. The sults of that company are disclosed in note 35. Transactions during the year with the subsidiary are disclosed in note 34. 20. Stocks GTOIIP Group 2022 2023 Finished goods and goods for resale 21,228 14,048 Page 41 THE ARKWRIGHT SOCIETY LIMITED IA company limited by 8uaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 zi. Debtors Group Group 2022 Company Companv 2022 Z023 2023 Trade debtors 62,228 17,827 62,ZZ8 17,827 24.402 249 Amounts owed by group undertakings Other debtors 432 249 289 Prepayments and accrued income 54,622 49.802 48.488 49,197 117,282 67,878 111,005 91,675 22. Credltors: Amounts falling due withtn one year Group 2023 Group 2022 Compahy 2023 Company 2022 Bank loans 76,143 12,743 233,249 93.119 19.830 154,859 46.819 65,620 19,830 129.655 Architectural Heritage Fund loan Trade creditors 12.743 203,670 810 Amounts owed to Broup undertakings Corporation tax Other taxation and social securitv Other creditors 3,562 31,790 68,264 65,721 42,653 54,748 118,988 23.775 51,150 99,767 20,051 64,576 41,438 Aciruals and deferred income 538,524 437,145 438.734 341,170 DeferTed incorne represents market income received in advance for market stalls and room hire during 2023124. Group Group 2022 2023 Deftrred Income Deferred income at l April 2022 Resources deferred durin8 the year Amounts released from previous periods 4,024 6,107 14,OZ41 4,024 6,107 4,024 Page 42 THE ARKWRIGHT SOCIETY LIMITED IA company limlted byguaranteel NOTES TO THE FINANCIAL STATEMENTS FOR fHE YEAR ENDED 31 MARCH 2023 23. Creditors: Amounts lalllng due after more than one year Group Group 2022 Company Company 2022 2023 2023 Bank loans 465,259 448,508 521,397 459,150 431278 448.508 458,091 459,150 Architectural Heritage Fund loan re Building 17 913,767 980,547 879,786 917,241 Bank loans and overdrafts totalling £541.40212022.. £614.5161 are secured on a55ets of the charity as follows:. - A 1st leg81 charge over cornrnercial freehold property known as Old Trout Farm (Excl No 101. Cromford Mill, Cromford Matlock. Derbyshire dated 2311111988. - A 1st legal charge over comrnercial freehold property known as Cromford Colour Mi115. Cromford, Derbyshire- dated 1811111988. A 1st legal charge over residential property known as Grace Cottage, Station Rd. Cromford, Matlock, Derbyshire dated 1610212018. - A 1st legal charge over commercial freehold property known &s 10 Crornford Mill, Mill Road, Cromford, dated 1610212018. - A 2nd legal charge over commercial freehold property known as 10 The Old Trout Farm, Cromlord Mill, Cromford, Matlock. Derbyshire dated 1911011994. - A 2nd legal charge over commercial freehold property known as Cromford Colour Mills, Cromford, Derbyshire dated 1811111988. A 2nd legal Iharge over commercial freehold property known as 10 Crornford Mill. Mill Road, Cromford, dated 1911011994. - A 2nd legal charge over residential property known as Grace Cottage, Station Rd, Cromford. Matlock. Derbyshire dated 2810511999. - An unlimited debenture dated 1911212001 incorporating a fixed and floatin8 charge5 over the assets of the societv. An unlimited debenture dated 1610212018 incorporating a fixed and floating charges over the assets of the societv. The bank loan of Cromford Mill Limited is secured on the fixed and floating assets of the company and subject to interest at a rate of 6.5% per annum. The loan is due to be repaid in full by May 2025. The Arkwright Society is guarantor for the 5oan. Page 43 THE ARKWRIGHT SOCIETY LIMITED IA Company limited by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 24. Accruals and deferred Income Group 2023 Group 2022 Grants 24,698 26.921 Deferred income represents government grants in respect of the renovation ol leasehold property in Cromlord Mill Limited and is being released in line with the depreciation policy of the leasehold property. 25. Pfior year adjustments The comparative figures have been restated to reverse depreciation char8ed on a heritage asset which is now held at Valuation, based on a valuation as at 31 March 2021. More details on this can be found in note 2.8. The impact on the consolidated balance sheet as at 31 March 2022 is to increase the value of heritage assets, net assets and restricted fund balances by £36,054. The impact on the statement of financial activities is to reduce restricted expenditure in the prior year by £36.054. 26. Statement of funds Statement of funds- Current year As re5wed Balance at I Aprll 2022 Transfers Inlout Balance at 31 Marth 2023 Income Expendiiure Unrestrlctedlunds General Funds- charitv General Funds- subsidiary 1,924,630 57,631 598,391 647,453 11.063,3931 1630,9951 66,149 157,6531 1.525.777 16,436 1,982,261 1.245,844 11,694,388) 8,496 1,542,Z13 Restrictedfunds Building 17 development & project fund Lumsdale project Cromlord Station 1,956,140 3,466 139.438 15.000 2,643 14,8681 11,2141 1,966.272 4,945 139,438 56,967 30,000 79,582 1224 50 Dunsley Meadows Slinter Woodlands Cromford hydro scheme Sundry projects 57,135 30,000 18,1151 2,554 628 17961 179,184 199,IX181 11021 7.521 11,2281 Page 44 THE ARKWRIGHTSOCIETY LIMITED IA company limited byguaranteel NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 26. Statement of funds Icontinuedl Stotement offvnds- current yeor fcontinuedl As resiated Balance ai i Aprll 2022 TransfÈTS Inlout Balance at 31 Marth 2023 Income Expendlture D of D DDCT Grant 20,1)00 20,000 Arkwright's books and artefacts Slinter Woodland project Guide resources fund 4,008 2,252 1.709 3,064 13,278 4,008 2,252 1.709 2,045 Education materials 11,0191 116,7591 14.5201 Resilience fund 18,320 114,8391 DV Tours Project Cromford Mill goes Digitall NLHF Emergency Grants Meeting Point DE-Carbonise Grant 4,835 620 16,581 16,896 620 13.320 5.000 18,631 24,940 17.9421 14.6191 13,0741 129A401 11,2501 5,378 381 15,557 14,5001 2,475 B18 project development Reset & Recovery Grant Fund 3,725 2,272,275 156,081 1174,6111 18,4961 2,345,249 Totol ofAunds 4,254,536 1,501,925 11,868,999) 3,887,462 Statement of funds. prior year A5 restated Balance at 31 March 2022 Balance at l April 2021 As restated Expenditure Transfers in/out Income Unrestrictedlunds General Funds- charity General Funds- subsidiary 1,855,500 17,4401 476,606 668.780 1731,9361 1603,7091 324.460 1.924.630 57,631 1,848,060 1,145.386 11.335.6451 324,460 1.982,261 Page 45 THE ARKWRIGHT SOCIETY LIMITED IA company limlted byguaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 26. Ststement of funds Icontinuedl Restrktedfvnds 8uildin8 17 development & projecr fund Lumsdale project Cromford Station 1,994.421 2.579 139.438 56,571 138,2811 13,8291 1.956,140 3,466 139,438 S7.135 30,000 18,1151 1,649 905 1,816 2.900 Dunsley Meadows Slinter Woodlands Crornford hydro scheme Sundry projects Srutt Film (Aim Biffal Arkwright's books and artefacts Slinter Woodland project Guide resources fund Education materials 564 30,000 1.272 1,554 112,6511 4,008 17,742 loo 127,1291 62,194 148.6381 4,008 2.252 1,709 3,064 13,278 4.835 620 2.252 1.731 3,554 35,700 11.582 26.225 161,717 12,000 16,6611 1221 14901 17,1451 17,1111 127,7781 186,2591 17.(K)01 111,0501 12,0001 Resilience fund 115,2771 DV Tours Project Cromlord Mill goes Digitall NLHF Ernereency Grants Meeting Point DE-Carbonise Grant 364 2,173 261,401 1323.5391 13,320 5,000 18,631 24.940 24,886 26.940 11,456 B18 project development 2,465,292 398.180 1266.7371 1324,4601 2.272,275 TotuloAfund5 4.313,352 1.543,566 11,602.3821 4,254,536 Page 46 THE ARKWRIGHT SOCIETY LIMITED IA cornpany Ilmlted byguaranteel NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 26. Statement of funds Icontinuedl The restiicted funds represeni monies donated or raised for a specific project of the charity. The purposes of the main restricted funds are given below. The 8uilding 17 development & project fund aims to develop a World Heritage Site and Gateway. The Lumsdale project funds are for the continued preservation and archaeological works in Lumsdale. Cromlord Station is now cornpletely refurbished and tenants in situ. The Dunsley Meadows fund is for the acqui51tion and management of Dvnsley Meadows, an ancient hay meadow local Nature Reserve. Slinter Woodlands of £30,000 remains following the sale of Slinter Cottage. The Cromford Hydro Scheme aims to explore the possibility of renewable energy at the site by the installation of technology in order to generate hydro-electricity. The D of DDCT Grant Fund The Commissioning of a Strategic and Sustainable Business Plan and Masterplan for CroTnford Mill. The Arkwri8ht'5 book5 and arrefacts fund is an asset fund representing grants awarded to purchase Arkwright related purchases for display. The Slinter Woodland project fund represents the funds obtained and expended in the continued rnanagement of the Slinter Woodland site as a'site of Specific Interest, 5SSI. The Guide Resources fund represents donations awarded to volunteer tour guides which can be spent to enhance tour guide knowledge and experience. The Education Materials fund is primarily income awarded under the Sandford Fund which can be used to promote the Educational oller at Cromford. The resilience fund aims to support the development of the World Herita8e site. The DV Tours project represents funding received from Derbyshire County Council's Great Place scheme for an entrepreneurial venture with Belper North Mill Trust to provide guided tour5 of the Derwent Valleyj Iocus5ing on the Derwent Valley Mills World Heritage Site and other nearby visitor attractions. Cromford Mills goes Digitall is a COVIDIg re5wnse project awarded by Historic England helping to create a greater digital presence both online and on site. The NLHF Ernergency grant5 were awarded by National Lottery Heritage Fund who were adrninistering fund5 under the Heritage Emergency Fund and subsequently under Culture Recovery Fund for Heritage. The Meeting Point programme will lead to the commissioning of an artist project at Cromford Mills, awarded bv Arts & Heritage. Page 47 THE ARKWRIGHT 50CIEtY LIMITED IA company Ilmlted byguaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED31 MARCH 2023 26. Statement of funds Icontinuedl The DE-Carbonise Grant provides a551Stance to reduce carbon emissions through upgrading lighting in the Cromford Creative building and also replacing 4 non. PageS1 THE ARKWRIGHT SOCIETY LIMITED IA company Ilmited by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR fHE YEAR ENDED 51 MARCH 2023 34. Related partytransactions During 2013 the Duke ol Devonshire. the President ol the charitV* made a loan to the charity of É35.000. £10.000 remained payable as at 31 March 2023 and 2022. The loan is interest free. The company has a wholly owned subsidiary. Cromford Mill Limited. as detailed in note 35. During the year, The Arkwright Society Limited charged the subsidiary rent and service charges of £nil 12022.. £28,000) managernent and administration lees of £nil 12022.. £57,600) and loan interest of £nil 12022.. £6471. During the year the subsidiary rnade sales ol £1.854 12022.. £66,387) to The Arkwright Society Limited and purchases from The Arkwright Society Limited of £40.21612022.. £18.8161. At 31 March 2023, the subsidiary was owed £810 by The Arkwright Society Limited 12022.. £24,402 debtor). Included within thi5 balance in the prior year 15 a loan repayable on demand. with interest calculated at bank base rate plu$ 2%. secured on the sto£k held by Cromford Mill Limited. Thi5 loan wa5 repaid durin8 the current year. 35. Principal subsldlaries The following wa5 a subsidiary undertaking of the company.. Name Company number Class of shares Holdbng Cromlord Mill Limited 02913429 Ordinary loo% The financial results of the subsidiary lor the year were.. Name Incorne Expendlture Proflt larthe year Net assets Cromlord Mill Limited 647,453 1630,9951 16,458 16.438 Page 52