Registèred Company number 02182687 (England & Wales) Registered Charlty Number 519521 THE SILK HERITAGE TRUST LINKED REPORT AND ACCOUNTS FOR THEYEAR ENDED 31ST MARCH 2024 BRIGHT PARTNERSHIP LIMITED CHARTERED ACCOUNTANTS THE SILK HERITAGE TRUST Financlal Staloments for th6 year ended 31 March 2024 Contents Page Legal and Admlnistr81ive Informalion Report of the Trustees Ind8pend&nl Auditor Report 10-12 statem&nl of Financial Activities 13 Ba18nce Sheel 14 Noles fortning part of thg financial slalemenls 15-25 The Sllk Herltage Trust Trustees Report for the Year Ended 31" March 2024 Legal and Administratlve Informatlon Company Name The Silk Heritage Trust Registered Office The Heritage Centre Roe street Macclesfleld Cheshire SKII 6UT Reglslered Charitv No 519521 Company Registration No 2182687 Governlng Document Articles of Association Dlrectors and Trustees Mr John Varney (Chairl Mr Nicholas Hynes (Resigned 7th December 2023) Mr Roy Pownall Ms Deborah Jones (Appointed 30 January 20241 Ms Rebecca Medcalf (Appointed 30 January 2024) th Ih Cllr Lesley Smetham IResi8ned 26 October 20231 Cllr Janet Jackson (Frlends of Macclesfield Silk Heritage nomineel Ms Hannah Wllliam50n Cllr Elizabeth Braithwaite {Resigned 26" October 2023, appolnted I" May 2024) Mr Philip Cole Ms Joanna Hayward Ms Julie Grifflths Mr Mike Ward Museum Dlrector Emma Anderson Company Secretary Emma Anderson Page I The Sllk Heritage Trust Trustees Report for the Year Ended 31 March 2024 st Independent Auditors Bright Partnership Limited Chartered Accountants & Registered Auditors I Park Street Maccle5field Cheshire SKII 6SR Payroll Consultants Bright Partnership Limited Bankers rhe Co-operative Bank l Balloon Street Manchester M60 4EP Royal 8ank of Scotland 36 St Andrews Square Edinburgh EH2 2Y8 National WestmSnster Bank PO Box 65 2 Chestergate Matclesfield Skll 6BA Page 2 The Silk Heritage Trust Trustees Report for the Year Ended 31" March 2024 The full name of the Charity is the Silk Heritage Trust. Its registered office and principal operatin8 addre55 is The Heritage Centre, Roe Street, Macclesfield, Cheshire, SKII 6UT. Constitution The Company (The. Trust) was incorporated on 23 October 1987 and is limlted by guarantee with charitable statu5, and accordingly no distributions are allowed. The Trust, formerly known as the Macclesfield Museums Trust, w35 granted a uniting direction on 10 December 2008 whlch had the effect of unitln8 the Macclesfield Museum5 Trust with the Silk Herltage Trust Endowed Charity, formerly the Macclesfield Sunday School Heritage Centre Trust, A new body of trustees was formed whlch also serves corporately as the Trustees for the Endowed Charity. th The Trust Is governed by the Articles of Association dated 10 September 2012, which replaced the Ih Memorandum and Article5 dated 10 December 2008. The Board of Trustees sh311 consist of no le55 than nine and not more than eighteen member5, unless the Members pass a Special Resolution to change these numbers. The Trustees have the power to appoint any person to be a Trustee, but the total number of Trustees shall not exceed the maximum of eighteen. The Trustees, who are also Directors under Company law, who served durSng the year and subsequently are shown on page l. None of the Trustees have any financial interest in the Company. Trustee Induction and Training New Trustees are given an Induction Pack which contains a briefin8 on their legal obllgatlons under Charlty and Company law, the Articles of Association, the committee and decision-maklng processes, the Busine55 Plan and recent financial performance of the Company. Familiarisatlon visits are arranged, and Trustee tralning events are held, a5 necessary, to facilitate the undertaking of their role. Organisation The Board of Trustees administers the Charity. A Museum Director is appointed by the Trustees to manage the day-to-day operatlons of the Charity. The Board meets four times per annum, and the following sub-committees meet as shown: Strateglc Programme Board Meets monthly to receive updates from the Director and progress reports from the Project Management team regarding the major grant funded projects. It submits quarterly reports to the Board of Trustees. Page 3 The Sllk Heritage Trust Trustees Report for the Year Ended 31. March 2024 Objectlves and A. Operationally The Silk Heritage Trust made a surplus of £110,41912023 deficit of £53,613). The reason for the surplus was grant funding recelved from NHMF of £152,113 in order to buy the Paradise Mill property lease, the expenditure for this is shown under fixed assets In the balance sheet. Without this. the unrestricted positlon of the Silk Museum at the end of the year would have been a deficit of £41,694. The Heritage Centre Trust made a surplus of £21,62412023 deficit of £10.8091. The Sllk Heritage Trust fulf illed many restricted responsibilities resulting in restricted funds caTried forward to £27,558. PriorStie5 for the Trust golng forward are to create a 5U5tainable balance Sheet with net reserves whlch will provide operational 5tablllty. The Net Assets on the Balance Sheet were intreased from E 1,357,346 to £1,513,212 being bullt up again through careful cost management and a proactive pproach to diversifying income. Princlpal Risks and UncertalntiES The Trustees have revlewed the major risks to which the Charity is exposed, particularly those related to the operations and flnances of the Trust. The Trustees have given consideratlon to the appropriate policie5, procedures and system5 to mitl8ate the Charity's exposure to the major risks. The principal financial risk facing the Charity is the ability to generate sufficient income from charitable activities and external funding to cover expenditure incurred in fulfilling the oblectlves of the Charlty. Investment Powers and Poll¢v The Article5 of Association of the Charity permit the Trustees to invest the moneys of the Company not immediately required for its objects in or upon such investments, securities or property as be thought fit, The Trust's Investrnents are currently restrlcted to UK banks and 8overnment bonds. Reserves Pollcy The Trustees aspire to retain three month's operating costs in reseive. As at 31, Ma rch 2024, the Charitrfs frLbe reserves, as def ined as unrestricted ftsnds not represented by flxed assets had reached this amount only when including the reserves of the Endowed Trust Fund. Page 4 The Silk Heritage Trust Trustees Report for the Year Ended 31 March 2024 si Chalr's Report 2023-2024 l am pleased to dellver Ihe Trustees, report for the year 2023- 2024. The Trust achieved a great deal in this period - resolving some long-standing issues that had held back development and proving successful with several substantial grant applications, further strengthening our ability to drive development of our offeylng. At the same time, the Trust faced the same challenges as those experienced across cultural and heritage sector, many of which are still a hangover from the pandemic period exacerbated by cost-of living challenges- notably that visitors are still slow to return. The Board has kept Its focus on managing these challenges, building revenue streams, and ensuring that the museums deliver our purpose of reflecting the social and industrial heritage of Macclesfield. Our focus golng into the year was on rebuilding income, reserves and audlenc,es while recognislng we had work to do on branding, communications, marketing, and our retail offering. We also had to address some significant challenges of our colleGtions and buildlngs. The work that the Trust had undertaken in clarlfylng our purpose and vision for our venues transformed our work, stream-lined the role and responsibilities of Trustees, and fed into our fundraising arribitions. The Trust continued to secure a range of grant investments from Trusts and Foundations, and to focus on the delivery of ¢omplex projects. Governance There were several changes to our Board during the year. Following a review by CheshSre East Council ol Councillor representation on Boards, Lesley Smetham stepped down after many years representing the Council. And we thank hei for her long-standing support and commltment to the Board. Additionally, Brendan Flanagan retired from Chesire East Councll and therefore his presence at the Board ceased. The Trustees thank him for hls invaluable work in supportlng the Trust. We Welcomed Deborah Jones, Rebecca Medcalfe and Cllr James Barber as new Trustees, bringlng valuable legal and retail exporlence, important skills, and a strong conneclion to Macclesfield Town CoLJncil, all supporting us as the Trust expands its ambitions. Carole Hyde, Head of Rural and Cultural Economy, CEC, lolned the Board, representlng the Councll As Vlce Chair, Hannah Williamson has continued to make an invaluable contributlon in our work towards Full Accredltation, as well as sharing best practlce in collections and audience developmenl. Working with fellow-Trustee Joanne Hayward and the Museum team, the Trust finally achieved Accreditation in November 2023, sornething we had been worklng lowards for many years. The Strategic Programme Board was established and operates with delegated powers to oversee the delivery of major projects. Chaired by Philip Cole, supported by Michael Ward and Roy Pownall, Ihis group has provided Invaluable guidance lo the Director in delivering our varied programme. Page 5 The silk Herltage Trust Trustees Report for the Year Ended 31 March 2024 The Trust continued to focus on strengthening Diversity in its make-up, operations, and activities, recogni5ing the need to reflect the audiences and communities we senie. Our partner organlsations in The Old Sunday School, particularly Pinc College and SUSO, continue to deliver vital creative education to neuro-diverse young people and to adult5 With multiple needs. The Silk Museum is establishing a close partnership with East Cheshire Eye Society to help Inform how we develop our buildings, operations and offer. The Museum team are working with the local LGBTQ+ community and starting to develop links with Refugees Welcome. l am grateful to our President, David Rutley, MP for Macclesfleld up to the 2024 General Election, for his engagEment and support of our work, our development plans and recognition of the Trust's key role in the town's recovery. Financlal management Despite our ambitlons and for the reasons mentioned in my introduttion, management and monitoring of the Trust's financia I position has been challenging through this period, due to the lo55 of substantial income streams. We are very grateful to our Accountants Heywood Shepherd for guidance and support In a series of ambitious funding applications and the development of our enterprises, We have recognised the need to rebuild our financial strength and stability, and the Board has made a number of difficult decisions to protect its reserves, where possible. Despite our ambitlons and for the reasons mentioned In my introduction, management and monitoring ol the Trust's financlal position has been challenging through this period, due to the loss of substantlal vlsltor Income streams and the financial issues laced by our partners and tenants in the Old Sunday School. We are very grateful to our Accountants Bright Partnership for support In a series of ambltlous funding applications and for securing Exhibition Tax Rellef. We have recognised the need to rebulld our finanGial strength and stability, and the Board has made dlfficult decisions to protect Its reserves, where possible. The Trust has benefltted from external lundraising support that has helped reposition the organlsation's work with national lunders and on behalf of the Board of Trustees, I would like to thank the Director and her team, who worked incredibly hard to secure grant funding from a wide range of sources. Tho following grants secured, completed, or belng delivered during 2023-24 are enabling the Trust to undertake a wide range of activity that would have otherwise been impossible: National Heritage Memorial Fund: Covid Recovery Grant - grant uplift received, representing a total award of £339,133 Arts Council England Gapilal Investment Programme Grant- to significantly expand work on our Pattern Books store and create a Jacquard Studio, increasing public access to these outstanding collections - £165,000 Radcliffe Trust Grant- to establish a Placement Programme to preserve heritage skills in Jacquard Handloom weaving, the conservation of industrial collections and develop public engagement - £5,000 High Sheriff Fund- secured by the Friends of Macclesfield Silk Heritage in order to deliver a programme of free summer aclivities for families - £2,569. Macclesfield Town Councll- two small grants towards the development of the Tunnicliffe Garden and for outreach work wlth Ashgrove Primary School. Totalling £2,220; plus, an agreement to provide 3 year's revenue funding to support the Trust's development- £20,000 per year Herltage Cornpass- to develop contactless giving in the Museum and Mill - £5,000 The Trust also conlinued diversc fundraising through on-line donations, bookings and benefitting from small bequests. Page 6 The Silk Heritage Trust Trustees Report for the Year Ended 3151 March 2024 Partnerships Our strong relaticnship with Cheshire East Council conlinues to deliver a successful partnership and, as always, we are grateful for essential, ongoing revenue funding to support our work with the West Park collections and engaging local communities. The Friends of Macclesfield Silk Heritage have remained an important source of support for the museum, particularly in providing match funding for grant applications and we thank them for their partnership. We have worked to raise the profile of the Friends through our new website. Operatlons The Old Sunday School The Trust continues to develop its role as a landlord for the partners and tenants who occupy the spaces, ensuring that the entire properly and Indlvidual partners, spaces in the building, help the Trust achieve the building's orlginal social and educational purpose. The Trust worked with Pinc College and Scoop & Scales to expand and consolidate their work, and to provide a crucial role for local people. The Trust Lontinued to support the operations of our key partner Cinemac as it experlenced the challenges of reduced cinema audiences and limited film production globally. The Director, Chair and the Trust's Accountant worked very closely wlth Cinemac to restructure its outstanding debt, and the organisation was able to repay this debt by Ihe end of the financial year. This roflects a rebuilding of Cinemac's business model to programme live music and comedy events, however, we recognise Ihat this is a fraglle part ol the overall UK economy, with significant local factors. The Silk Museum and Paradise Mlll The blggest challenge for us was the closure of Paradise Mill for an extended period of time, whilst the extensive work was carfied out on the Toof, the passenger lift was reinstated, and new alarm systems were installed. As the cenlral part of our visitor offer, thls had a significant Impact on audience numbcrs and visitor spend. We reconfigured the visitor offer in the Silk Museum to continue to provide visitors with insight into silk industry in the town. Thls helped to maintain numbers, and across the year we attracted 12,000 visitors- a modest increase on the previous year, although there was a 14% reduction in school visits. It has resulted in Ihe Trust acquiring a 125-year lease for the 31d floor of Paradise Mlll, and in turn this meant that the Trust could finally be awarded full Accredited status from Arts Council England. The Trust Is grateful to Stormguard Limited Ilandlords of Paradlse Milll for the high quality of the work carried out on the building. The Trust was supported in this work by Project rnariagers Creative Heritage, working with Cymes heritage architect5. The Mill reopened to the public in February 2024, with a very successful launch event and signlflcant press coverage. This ralsed the profile of the Mill, and we saw an immediate increase in visitors and group tours, with nearly 3,000 in two months. Grant funding from the Radcliffe Trust will enable the Trust to bring Paradlse Mill back to life as a working mill preserving the endangered craft of silk weavlng, through opening up opportunlties for young textile artlsts an(J volunteers to learn skills. preserve historic machlnery and produce new creative work. Page 7 The Silk Herltage Trust Trustees Report for the Year Ended 31" March 2024 The Silk Museum's gallery spaces were closed to the public whilsl we decanted the Pattern Book collections and undertook surface cleaning, up to January 2024. The Books were subsequently moved for short-term storage at the Old Sunday School, and this released the gallery spaces for local exhlbltlons. This reinstated exhibition space has proved transformational in engaging with local artists and groups. We started the exhibition programme with a Spider Man exhibition, on loan from Kendal Comic Fest and presented by MaccPow. We saw a tremendous public response to this evenl, with over 1,000 visitors in two weeks, and also made connections with the University of Sheffield to explore spider silk. West Park The decant of collections was completed and all work5 were moved to Improved storage, following surface cleaning, and wrapping. Ttrie Trust submitted a Notlce to end the lease wlth Cheshire East Council for the West Park Museum buildlng. Staff & Volunteers The Museum has benefitted from an Increase in volunteerlng. The Machines and Memories project was concluded and revealed a range of stories about our industrial collections. History Hunters contlnued to document and explore the peoplv storles in our Archives and textiles collectlons. The Art Society volunteers continued to work on the Jacquard point paper deslgns. The creation of the Tunnicliffe Garden was the work of a committed group of volunteers and also involved servico users from Reach Out and Recover (FIOAR) Macclesfield. The Garden how forms a key part of Macclesfield's Britain In Bloom displays. The Museum and Mill continue to operate with a very small leam of contracted staff plus the casual Education team and Mill Guides. Their commltment, dedication and enthuslasm for Macclesfield's heritage is one of the Trust's greatest assets and I would Ilke to express my sincere thanks to the Director, Emma Ander50n, her team, and gveryone involved in contlnuing to make our museum an extraordinary asset to Macclesfield and beyond, Looking forward, there are some changes in the next year, I will be stopping down from the Board In March 2025 after 9 years, as is good practice, but will be remalning a close friend of the Trust. Emma has also announced her inlention to retire frorn the Trust during 2025 after 7 years of dedlcated service to the work of the Museum. During this time, she has expandèd our horizons and brought an enthusiasm and professionalism Ihat has rebuilt the foundations of the Silk Her5tage Trust. As this is my last annual report, I would like to thank her for her dedication, drive and determination, and for her support of myself and the Board of Trustees durlng some challenging but rewarding times. The Trust will Gontinue to grow and prosper and to mount engaging exhibltlons and experlences guided by a strong Board of Trustees and delivered by our outstandlng staff, volunteers and partners. Page 8 The Silk Heritage Trust Trustees Report for the Year Ended 31 March 2024 St Statement of Trustees. Responslbllltles The Trustees (who are also Directors of the Charity for the purposes of Company law) are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounti ng Practice). Company law requires the Trustee5 to prepare financial statements for each financial year whlch give a true and fair view of the state of affairs of the Charitable Company, and of the incoming resources and application of resources, including the income a nd expenditure, of the Charitable Company for that period. In preparing these financial statements, the Trustees are required to: Select suitable accounting policies and then apply them consistently Observe the methods and principles in the Charities SORP Make judgements and estlmates that are reasonable and prudent State whether applicable UK Accounting Standards have been followed Prepare the flna nclal statements on the going concern basis unless it is inappropriate to presume that the Charity Company will continue in business. The Trustees are responsible for keepi n8 adequate accounti ng records that disclose with reasonable accuracy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and Integrity ofthe corporate and financial information included on the Charitable Company's website. Legislation in the United Kingdom governing the preparation and dissernination of financial statements may differ from legislation in other jurisdictions. This report has been prepared in accordance with the Special Provisions of part 15 of the Companies Act 2006 relating to small companies. The Trustees, Report was approved by the Board and signed on its behalf bv: John Varney Chair, Macclesfield Silk Heritage Trust. th 29 Oecember 2024 Page 9 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE SILK HERITAGE TRUST Linkad Flnanclal Statements for Ihe year ended 31 March 2024 Oplnlon We have audited the financial stalemenls of the Silk Heritage Trust for the year ended 31 March 2024 which comprise the Statement of Fin8ncial Activities, the Balance Sheet and notes to the financial Statements including a SLtmmary of significant accounting policies. The fin8ncial reporting fratnework Ihat has been applied in their preparation is applicable law and United Kingdom Accounting Slandards (Uniled Kin9dom Generally Accepted Accounting Practice). In our opinion Ihe financial statements.. giva a Irue and fair view of tha state of the charitable company's affairs as al 31 March 2024 and of its incoming resources and application of resources, including ils result, for Ihe year then ended., hav8 been properly prepared in accordan￿ with United Kingdom Generally Accepted Accounting Practice., and hav8 been preparèd in accordance with the requirements ofthe Companies Act 2006. Basls for oplnlon We conducted our audit in accordance wilh International Standards on Audlting (UK) (ISAS (UK)) and applicable law. Our r6sponsibililies under those stsndards are further describ8d in the Auditors responsibilities for the audit of the flnancial statements section of our report. We are independent of the charitable company In accordance with the ethical requirements that are relevant to our audil of the financial statements in the UK Includlng Ihe FRC'S Ethical Standard, and we havo fulfilled our other ethical responsibllilies in accordance with these requirements, We believe thal Ihe audit evldence we have obtained is sufficlent and appropriale to provlde a basis lor our opinlon. Concluslons relatlng to golng concèm In audillng the financial statements, we have concluded that the trustees, use of the going concern basis of accountlng in the preparatlon of the financial statements Is approprlale, 8888d on the work we have performed, we have not idéntlfied any Material uncertainties relating to events or conditions that, Individually or collectively. may cast signlflcant doubt on the charitable company's ability lo conlinue as a going concern for a period of at least twelve months from when the financlal statements are auihorised for issue. Our responslbilities and the responsibllities of the trustees with respect to going concern are described in the relevant sections of thls report. oth&r Informatlon Th8 trustees are responsible foi Ihe other information, The other informalion comprises the information included in the annual report, other than the financial slatements and our Report of the Independent Auditors thereon. Our opinion on the financlal statements does not cover the other informallon and, except to thè exlenl othewis8 explicitly slated In our report, we do not express any form ofassurance concluslon Ihereon. In conneclion with our audil of the financial statements, our responsibility is lo raad the other information and, in doing so, consider whether the other informalion is materially inconsistent with the financial statements or our knowledge obtained In the audit or olherwise appears to be materially misslaled. sf we idenlify such material Inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement ofthe other Information. If, based on Ihe work we have performed, we conclude that there is a material misslatemenl of this other information, we are requlred to report that fact. We have nolhing to report in this regard. Oplnlon on other matters pre8crlbed by the Companles Act 2006 In our opinion, based on the work under18ken in the course of Ihe audit.. the information given in the Report of the Trustees for the financial year for which the financial slatemenls are prepared is consislent wilh the financial statements; and the Report of the Truslees has been prepared in accordance with applicable legal requirements. Pag¢ 10 REPORT OF THE INDEPENDENT AUDITORS TO THE MENBERS OF THE SILK HERITAGE TRUST Llnked Flnanclal Statements for the yèar ended 31 March 2024 Maflers on which wè are requlred to report by exceptlon In the light of the knowledge and understanding of Ihe charilable company and its environm&nt obtained in the course of Ihe audil, we have not identified material misstalemenls in the Report of the Trustees. We have nothing to report in respect of the followlng matlers where the Companles Act 2006 requires us to report to you if. in our opinion.. adequate accounting records have not been kept or returns adequate for our audit have nol been recelved from branches not vlsiled by us- or Ihe financial stalements are not in agreement wilh the accounting records and returns. or certain disclosures of trustees, remuneratlon specified by law are not made; or we have not received all the information and explanations we require for our audit. Responslbllltles of trustees As explained more fully in the Statement of Trustees Responsibililles, the trustees (who are al80 th8 directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial slatemonts and for being satisfied (hal they give a true and f8ir view, and lor such Int6rnal control as the trustees determine is necess8ry to ènable the preparation of financial statements that are free from material misstaternent, whether due lo fraud or error. In preparing th8 financi81 slatemenls, thé tru8tee5 are respons5blÈ for assessing Ihe charltable company's ability to continue as a going concern, disclosing. as applicabl8. matters related to golng concern and using the going concern basis of accounting unless the trustees eilher intend to Ilquidate the ch8ritable company or to cease operation5, or have no r681istic alternative but to do so. Audltors responslbllllles for Ihe audlt of the flnanclal statements Our objecllves are lo obtain reasonable assurance about whelher the financlal s181emenls as a whole are free from material misslalement, whether due to fraud or error, and to Issue 8 Report of the Independent Auditors that includes our oplnion. Reasonable assurance is a high level of assurance bul is not a guarantee that an audit eonducled in accordance wllh ISAS (UK) will always detect a malerial misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, Individually or in Ihe aggregale, they could reasonably be expected lo influence the economic decisions of users laken based on these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulatlons. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularilies, Including fraud. The extent to whlch our procedures are capable of detecting irregularities. including fraud, are detailed bèlow: Our approach to identlfying and assessing thc rfsks of materlal misslatements in respecl of irregularities, induding fraud and non-complianco with laws and regulations, was as follows.. • The engagement partner ensured that the engagément team collectively had the appropriate competence, capabilities and ski118 to identify or r6cognis6 non-compliance wlth applicable laws and regulations. We identified Ihe laws and regulations applicable to the company Ihrovgh dlscussSons with trustees and management, and from our knowledge and experience of th2 charily sector; We focused on specific laws and regulallons which we considered may have a direct material effecl on the financial statements or th& operations of the company, Includlng th8 Companies Ac.t 2006. Ch8rilies SORP FRS102, taxatlon legislation, data proleclion, anll-bribery, employrnent, environmental and hoallh and salety leglslation)., We assessed the extent of compliance wlth the laws and regulations Identlfied above through making enquiries of management and inspecting correspondence: and Identified laws and regulations were communicated within the audil team regularly and the team remained alert to instances of non-compliance throughoul the audit. Page 11 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE SILK HERITAGE TRUST Linked Financial Statements for the year ended 31 March 2024 We assessed the susceptibilily of the company's financial staternents lo material misstatements, including obtaining an understanding of how fraud might occur. by.. Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud. Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override controls, we.. • Performed analylical procedures to identify any unusual or expected relationships. Investigate the rationale behind significant or unusual transactions. In response to the rlsk of Irregularitles and ncn-compliance with laws an(f regulations, we designed procedures which included, but were not limited to.. agreeing financial statement disclosures to underlying supporting documentation. reading minutes of meetings of those charged with governance., enquiring of management as to actual potential litigation and claims., There are inherent limitations in our audit procedures descrlbed above. The more removed that laws and regulations are from financial transactions. the less likely il is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other managemenl and the inspection of regulatory and legal correspondence, if any. Material misslatements that arise due to fraud can be harder to detect than those that 8ris8 from errors as they m8y involve deliberate concealment or collusion, A further description of our responsibilities for the audit of the financial stateménts is located on the Financial Reporting Council's website al www,frc,org.uklauditorsresponsibilitiÈs. This description forms part of our Report of the Independent Auditcrs. Use of our report This report is made solely to the charitable comp8ny's members, as a body, in 8ccordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors, report and for no other purpose. To the fullest extent permilted by law. we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report. or for the opinions we have formed. Mr M Senior FCA (Senior Statutory Auditor) for and on behalf of Eright Partnership Limited Statutory Auditor 1 Park Street Macclesfield SK116SR Date: 291h December 2024 PAg¢ 12 THE SILK HERITAGE TRUST Balance Sheet as at 31 March 2024 Sllk Herllage Tru$t Sllk Horltag• Endowed Trust Charlty 2024 Silk Henlage Trust Endow&d Gl)8rity 2023 Silk Heritage Trust Total Tolal 2024 2024 2023 2023 No¢• Flxèd Assets Tangible assets Investments 12 13 1,172,030 140,608 202 140,810 1,312.638 202 1,312,840 1.030,630 144,558 202 1.030,630 144,760 1,175, 188 202 1, 175.JYU 1,172.030 Cufrènl Assets Stock Dcbtors Cash at bank and in hand 14 15 3,751 15,411 126,821 145,983 3,751 75,922 240,645 320,318 3,890 26.543 99,367 89.168 63, 152 119,601 162,513 3,890 125,904 152,320 282, 114 60,511 113.824 174.335 Creditors.. amounts falling due within one year 16 113.871 6.075 119,94fj 80.330 19,828 100,158 Net Cuvr•nt Assets 32,112 168,260 200.372 39,271 142,685 181,956 Total Assets Le¥9 Current Llabllltles 1.204.142 309,070 1.513,212 1,069,901 287,445 1,357,346 Not Agsetg 1204 142 I S13212 1069 901 287 445 135T 346 Charlty Fund8 Unr•8trl¢ted lund8 1,176,554 309,Q70 1,48&824 1,086, 135 287,445 1,353,580 Re8trl¢ted fund8 27,58a 27.588 3, 766 3.766 Total Funds 1B&19 1204 142 309 070 1513212 1 069 901 287 445 1 357 346 These financial 8taternents have been prepared in accordance with th8 provisions applicable 10 small companles subject to the small companles reglme 8nd in accordanGe wilh FRS 102 SORP. The fin8nclal statements wer8 approved and aulhori58d for issue by the trus18es on the 29th December 2024 8nd signed on their behalf by: John Varney- Trustee The notes on pages 15 to 25 form part of thÈse attwnts. Page 14 THE SILK HERITAGE TRUST Notes to the accounts lor the ear ended 31 March 2024 1. ACCOUNTING POLICIES a) Basls of preparallon and assessment of golng concern The financial stalements of the charilable company. which Is a public benefit entity under FRS102, have been prepared in accordance with Accounting and Reporting by Charities.. Staiernent of Recommended Practice applicable lo charilies preparing Iheir accounts in accord8nce with the Financial Reporting Slandard applicable in the UK and Republic of Ireland (Charilles SORP FRS102 - effective 1 January 2019), the Financial Reporling Standard appllcsble in the UK and Republic ol Irelan(f (FRS102) and Ihe Companies Act 2006. The financial statements have been prepared under the historical cost convention wilh Iha exceplion of nvestments, which are included al markel value 85 modified by the revaluation of certain assets. The Silk Heritage Trust. formally known as Macclesfiéld Museums Trust has begn granted a Unlting Direction by the Charities Commission The effecl of this is that these accounls must also report on the financial activities of The Silk Heritage Endowed Charily, formerly known as Macclesfield Sunday School Heritage Centre Trust. The Trustees are of a view that there are no m8terial uncertainties about the Trust's ability lo contlnue as going concern. The twst received governmeni grants totslling £106,000 in th& yeai towards the provision of Museum Services. The financial statements are prepared in sterling which ig also the functional currency of the trust, roundéd to the nearest pound. b) Company status The trust Is a company limitèd by guaranteè and therefore has no share capit81 and was incorporated In England and Wales. c) Fund accountlng General funds are unrestricted funds which are available for use at the discretion of thé trustees in furtherance of the general obleclives of the trust and which h8ve not been design8led for other purposes. Restricled funds are fuT)ds which are to be used in accordance with specific reslrictions irnposed by donors or whlch have been raised by the trust for particular purposes. The aim and use of each restricted fund Is 88t out in Ihe notes to Ihe financi81 statemenls. d) IrAcomlng resources and debtors All Incoming resources are recognised once the chariiy has entitlement lo the resources. il is probable that the resources will be received 8nd Ihe monetary value of incoming resources can be measured reliably. Income from granls Is recognised when the charity has entitlement lo Ihe funds, conditions have been mel, is probable lo be received and can be measured reliably. Trade and other debtors 8re recognised at the settlement amount due. Prepayments arè valued al the amount prepaid. Accrued income and tax recoverable is included at the best estimale of the amounls receivable at the balance sheet date. e) Resourc88 expended and creditors All exp8ndilure is accounted for on an accruals basis and has been classified under headings that aggregate all costs relaled to the category. Fundraising costs are those inGuTred in seeking voluntary contributions. Management and administration costs are those in connection wilh admlnlstration of the charity and Complian￿ with the constitutional and statutory requirements. Creditors are rocognised where the charity has a presenl obligakn'on resulting from a past event Ihal will probably result In the Iransfer of funds lo a Ihird party and the amount due to setlle the obligation can be measured or estimated reliably. Page15 THE SILK HERITAGE TRUST Notes to the accounts for Ihe ear ended 31 March 2024 - contlnued 1. ACCOUNTING POLICIES (contlnued) fj Tanglble flxed assels and depreclallon Tangible Fixed Assets are stated at cost. Depreciation is provided on Buildings and Fixtures, Fittings and Equipment on a straight line basis over the expected useful lives of the assets concerned. The rates used for this purpose are.. Period ears Fixtur8s and Fittings Bulldlngs Leasehold 10 50 Period of the lease The Museum's exhibits are not represented in the balance sheel. The d&preclalion on buildings is included al 20/0 of the difference between the current market value and the origlnal cost, Artefacts purchased by the Museum are not capltallsed but are Ireated as expendlture in the SOFA in tho poriod In which it occurred. g) Herltag6 costs The original land and buildings of the Macclesfield Sunday 8chool were transferred to Ihe Silk Heritage Trust Endowed Charity by a Irust deed dated 31 Octobor 1981. The property is a Grade 11 listed building. It was built in 1813 for the recreation and education of the local community. The Gharity uses the propety lo fulfil118 oblecthves by providing rooms for recreallonal and educational f8cilities. The property has not been capitalised as the original cost is unavailable and onerous costs would have to be incurred for tho property lo be reliably valued. It Is also owned as specie property under an Endowed Trust as 8 Historic asset. h) Stock Stock is represented by shop goods for resale which are slated at Ihe lower of cost or net realisable value. Provision has been made where it is considered that stock is obsolete or slow moving. l) Penslon costs The company operales a work place pension scheme whlch is a defined conlribullons scheme wlth Ihe Peoples Pension. Contributions payable for the year are charged to the SOFA. J) Investments Lisled inveslments are Slated al market value at the balance sheet dalo. The SOFA includes the net gains and losses arislng on revaluations and disposals throughout th& year. k) Cash at bank and In hand Cash at bank and in hand includes cash and shorl term highly liquid investments with a short maturity of Ihree months or less from the date of acquisilion or opening of Ihe deposit or similar account. Page16 00 8 8 % g) o Z L) < t th ¢4 Ilslii 12 ry WJ ) ¢Ys o) o O) * f• THE SILK HERITAGE TRUST Notes to the accounts for the ear ended 31 March 2024 - continued Sllk Heritag Silk Hefil8ge Trust Trusl Endowed Silk Heritaqe Endowed Charity Trust Charity 2024 2023 Sllk Heritage Trust 2024 2023 7. NET INCOMING RESOURCES This is slated after charging.. Oeprecialion Audit feo 10,713 1.950 3.950 1.660 10,619 1.900 1950 1.600 Other finan¢e and accountancy foes 8. STAFF COSTS AND NUMBERS Slaff costs were as follows= Salar￿$ and wagas Soclal sècuiily costs Employeis pension conlfibulions Total 117,732 3,391 1.425 122,548 25,000 128,540 4,325 1,536 134.401 25.000 25.000 25.000 The average monthly head ccunl was 18 staff {2023 - 23) and Ihe Avèrage monlhty number ol lull lime employees during thè year, was a5 follows. 2024 Number 2023 Number Manag8rn8nt and admlniglralion Fundraising Chafilable activitie8 Appioxirnalely 200A of unreslriGled slalfing cost$ relate lo the operation ol Ihe Endowed Charity- No Employees had employee benefits in excess of £60,Cx)012023 - none). Thè ft)anagemenl ol the combined Irusl Is the duty of the Irusl8e3 Yrfho are unpaid. 9. TRUSTEE REMUNERATION & RELATED PARTY TRANSACTIONS No members of the Board of Truglees IDiie¢lorsl le￿ived any remuneialion or exponses durlng the year. No Irugtee or olher p¢rson related lo Ihe charity had any personal interest in any conlfad or Iran5a¢b'on enlefed inlo by the tharSly during Ihis yeaf or Ihe p￿VIouS yeai. The Maccle5field Museum Trusl, now known as The Silk Heritage Tfust 8nd Macclesfield Sunday School Heritage C8nlfe Trust, havg begn granl@d a Uniling Dirgciion. The Endowe¢J Charily provide¥ rent flee accommodation to The Silk Heritage Trust in relum for Shared expenses. Al the year end, Ihe nel debl ovlng (rom Silk Museum 19 the HeThlage Centre was £45.19612023- £41.336} 10. TAXATION As a charily. The Silk Heritage Trust is exempl Irom 18x on income gains falling wiihin s505 of the Taxes Act 1988 or s256 ol the Taxation of Chargoable Gains Act 1992 to the eytenl that Ihe5e are applied to ils charitable objects. No tax charges have a¥isen in the Charity. Page 20 THE SILK HERITAGE TRUST Note5 to the accounts for the earended 31 March 2024 . ¢ontlnuod 11. PENSION SCHEME The trusi rnade contrib￿lIanS lo the wLYk place pensicn scheme wlh Peoples Pensron foi g employees loialling £1.33312023- £1.5361 12. TANGIBLE FIXED ASSETS The Silk Heritage Trust Flxtures, Land & Flttings & Paradiso Buildings Equipment Mill Lease Total Cosl At l April 2023 1,202.21S 122.187 f J24.402 152,113 162.113 At 31 March 2024 1.202,215 122.187 182.113 1,476,51S DÈpre¢latlon At 1 Apiil 2D23 Ch8ige lor the Year At31 March 2024 171.GOS 9,600 181 065 122,1 B7 293,772 10,713 304485 1.213 Nel book value8 At31 March 2024 1021 130 150900 1 172030 At 31 March 2023 10.70&1 The valwe cl Land and Buiklings eansisls ol Ihe Museum al Pad( Gre8n. The ¢ovèlopmenl ol sile was funded to a large ex18nl by Ihe Nattonal lottery Heriiage Fund The conditions gf Ihè funijing Slipulaied thai if Iho by,lJing w4$ ever lo be sokl, 8 pprtenlaDe ot Ihe gfaThl gNen 011800.000 would hav• io be iepaKI. The Sllk Herllaga Tru8t Endowed Fund Flxlure$ & Flttlngs Bulldlng Total Cost At 1 Apnl 2023 Al 31 Plarch 2024 309,111 309.111 1D5,737 105 737 414,848 414 848 Depreciation At l Apnl 2023 Chaige for Ihe Year Al 31 March 2024 166.495 3,30D 169795 103,795 650 270,290 3,950 274 240 Net book values Al 31 March 2024 139,318 1,292 140.808 Al 31 March 2023 142.616 144 558 The buildi￿g rewesenls r￿￿¢V01*￿S anol a￿111(￿ to Ihe land and buildings ol Ihe Macde$lield Heriiaga Centye. The original land arKI buildngs of Iht Mac¢lesfièkJ Heriiagè Cenire were iranslÈifed LO the trust by kne Irusi Deed cjaied 31S1 Oclobei Ig81 and have not beeTr ifjcludEd In lh8 fixed assels Page 21 THE SILK HERITAGE TRUST Noles to the accounts for the ear ended 31 March 2024 . contlnued 13. INVESTMENTS 2024 Nomlnal Valu• 2024 Markèt Value 2923 Nominal Valu8 2023 Markel V81uè Sllk Herllage Twust Endowgd Charlty City of Manch6slÈr 3% 371 202 371 202 371 202 371 202 Sllk eiitage TruBt Endowod Charlty 2024 S￿k Hgrilogo Trnsl S￿k H&rilag& EndowéLI Trust Cljarily 202J Sllk Herltago Trusl 14.STOCK Total Total 21124 2024 2023 2023 Shop good& lor ie$ale 3,751 3,751 3,890 3,890 15. DEBTORS Trad8 deblors & Prapaymén18 Other deblor 9,584 5,827 15,315 24,899 5,827 45,196 16,543 10.000 49,631 66,174 10,000 41.3J6 8.394 125,904 Silk H8rilag8 Tfusl Taxalion and Social S&¢urily 45,196 41,338 8.394 99,361 15,411 60,511 75,922 26,543 16, CREDITORS: Amount8 falling due wlthln one year Trade creditors and Accru815 66,294 45,196 2,381 113,B71 5,341 71,635 45,196 3,115 119,946 34,392 41,336 4,602 80,230 19.828 54,220 41,J36 Silk Herilaga endowed trust Tayation and Social Security 734 4,602 100. 158 6,075 19, 828 17 SHARE CAPITAL The wmpany is incorpDraled under Ihe Companiès Act 2006 and is limited by guaianle8 aThl Iherefore do83 not have a shaig capilal. Page 22 THE SILK HERITAGE TRUST Notes to the accounts for the year ended 31 March 2024 - contlnued 18. STATEMENT OF FUNDS Balance al 31st March Incomlng 2023 Resources Transfor between Funds 8alanct at 3151 March 2024 Outgolng Resource5 Unrgstrlcted Funds Tlie Silk Heritage Trusl Th¢ Sllk Hoyllage Tiust Endowed Charlly Total Unrestrlcled Funds 1,066, 135 287,445 410,803 90,572 501,375 {300,3841 168.9471 1369,3311 1,176,554 309,069 1,485,623 1,353,580 Roslrlctpd Fund5 The Sllk Herltago Tru8t He¢Yley Fellowshlp AIA Reslorallon gr8nl CEC Wesl Park Heritage Compass Hlgh Sheriff Radcliffe Granl Manchester Universily Oral Hlslory grant Manchester Universily Audience Developnienl granl Tovm Council Ash Grove School MBcclesfield Town Council Garden AIM Brighter Oay CEC NHMF Malch Friends NHMF Malch 3. 766 700 5,144 17,000 4,992 2,569 5,000 1,200 2,000 1,720 soo 3,600 5,000 4,000 14,4661 15,1441 {8,7541 1150) (2,5691 8,248 4,842 5,000 11,2001 11,iooi 11.7201 15001 900 3,600 2,500 2,500 12,5001 11,SOOI Tol81 Restrlcled Fund5 3, 766 53,425 129,6031 27.588 TOTAL FUNOS 1,357,346 554,800 398,9341 1.513,211 Page 23 THE SILK HERITAGE TRUST Notes to the accounts for the year ended 31 March 2024 - continued 18 STATEMENT OF FUNDS (contlnuedl Unrestricted Funds The Silk Herltage Trust - These repre58nt Ihe accumulaled unrestricted general funds of lh8 TfUSI. The Sllk Heritage Trust Endowed Fund - These represent Ihe accumulated unrestricted genèral funds of Ihe Endowed Charity Restri¢tgd Funds During th8 financlal year 2023-24 the Silk Heritage Trust worked with reslficied funds from a range of sources:. The Headley Fellowshlps with Art Fund aims lo encourage colleclions.focused projecls by developing 8nd preserving specialist curatorial skllls and experiise in reglonal museums, enabling kno￿edge lo b8 shared as widely 83 possible 8cfDSS the sector. The Fellowship wa5 awarded lo K81hryn W8rburton. The Association for Industrial Archa801ogy. AIA, grants are been given for industrial heritage reslor81ion projects. The CEC W8St Park grant wag for the conservation work on the Wesl Park Collaclions and was exp8nsed in lh8 year. The Heiilage Compa55 grant was received to develop conlaclle5S giving in the Museum and Mill. The High Sheriff Granl was se¢ured by The Fiiends ol Macclesfield In order lo deliver Iree summ8r aclivit18s for families. The Radcliffe Grant is to be used lo es18blish 8 Placemenl Programme lo preserve heritage skllls in Jacquard Handloom weavino, conservation of industrial collecllons and develope public engagernent and is unspent. Grants Irom the University of Manchesler were awarded for an Oral History and Audience Development and have been full Maccl85field Town Coiincil made two small grants wer6 us8d for the development of the Tunniclrffe Garden and oulfeach work wilh Ashgrove Priniary SLhool. The Aim Brighter Day grant was for the developmgnt of the Chlldren'8 wear collecllons. The Cheshire East Council and Friends granls are matched funding with th8 N81ional Heritage Momorial Fund lor the proleclion of the heritage buildings. Page 24 THE SILK HERITAGE TRUST Noles to the accounts for the ear ended 31 March 2024- contlnued 19 ANALYSIS OF NET ASSETS BETWEEN FUNDS Unr•stYictBd Restficled Fund5 Fumds 2Q24 The Sllk Herltage Trust r8nsible Flxed Assets Net Current ag$et$ 1,172,Q30 4,S24 1,176,SS4 1,172.030 32.112 1,2Q4.142 27,588 27,588 The Silk Herltag& Trust Endowed Charity Tanglb18 Flxed Assels Inveslmenl5 140,608 202 140.608 202 Nel Currenl Assets 168,260 309,070 168,260 309,070 20 INTER TRUST LOAN As al the balance sheet dale the inter Irust108n outstanding was £45.196 owing to the Endow8d Charily by the Sllk Heritage TTUSI. Page 25