COMPANY REGISTRATION NUMBER.. N1616033 CHARITY REGISTRATION NUMBER; NIC100106 Inner City Bulldings Preservation Trust Company Limited by Guarantee Financial Statements 31 March 2023 FERGUS MCATEER & CO Chartered accountants & statutory auditor 31133 Clarendon Street Derry BT48 7ER Inner City Buildings Preservatlon Trust Company Llmlted by Guarantse Flnanclal Statsments Year ended 31 March 2023 Page Trustees, annual report (incorporating the directorfs report) Independent auditor's report to the members Statement of financial activities (including income and expenditure account) Balance sheet 12 13 Notes to the financial statements 14 Tho followlng pages do not form part of the flnanclal statements Detailed statement of financial activities 22 Notes to the detailed statement of financial activities 23 Inner City Buildings Preservation Trust Company Limltsd by Guarantse Tru8tees' Annual Report (Incorporatlng the Dlrector'8 Report) Year ended 31 March 2023 The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 March 2023. Roferenco and admlnl•tratlv• dotall8 Ro918tered charlty nam• Inner City Buildings Preseprfats'on Trust Charlty ro918tratlon number NIC100106 Company r8gl8tratlon number NI816033 Prlnclpal office and r•gl•t•r•d 31-33 Shipquay Street offlce Derry BT48 6DL The Tru8t•e8 Mr Patrick Walsh Mr Williarn McBride Mr John Meehan Mr William Mclvor Company •ecrotary Helen Quigley Audltor Fergus McAieer & Co Chartered accountants & statutory auditor 31133 Clarendon Street Derry BT48 7ER Banker• First Trusl Bank Meadowbank House Strand Road Derry BT48 7TN Sollcltorn Brendan Kearney & Co Clarendon House 4 Clarendon Street Derry BT48 7EX Inner City Buildings Preservation Trust Company Llmlted by Guarantee Tru8toe8' Annual Report (Incorporating the Dlrector'8 Report) (contlnu•d) Year ended 31 March 2023 Stru¢turei governance and management The Directors are pleased to present their annual report tO9ether with the financial statements of the Charity for the year ending 31 March 2023 which are also prepared to meet the requirements for Directors, report and accounts for Companies Act purposes. The financial statements comply with the Charities Act (NII 2008, the Charities (Accounts and Reports) Regulations INI} 2015, Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities. Statement of Recommended Practise applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 (effective 1 January 2019.) Directors and Trustees The Directors of the charitable company (the charity) are the Trustees for the purpose of charity law. The Trustees during the year and at the 31 March 2023 were as follows.. William McBride William Mclvor John Meehan Patrick Walsh Related Parties Londonderry Inner City Trust is the sole member of Inner City Buildings Preservation Trust and is also a related party by virtue of the fact that some of its directors are also directors in Inner City Buildings Preservation Trust. ObJe¢tlves and actlvltl08 The company's objects as set out in the ArtIGles of Association are.. 1. To secure by such means as are available for the public benefit the preservation, protection and improvement of buildings, parts of buildings or structures of particular beauty, or of historic, environmental, architectural or constructional merit or interest in the Inner City area of Derry City and to stimulate and educate public interest therein. 2.. To advance the education and vocational skills of the public in building preservation. restoration, refurbishment, traditional and general construction and related areas of work with the object of enhancing their employment prospects. 3. To promote such other exclusively charitable purposes in accordance with the law of charity in Northern Ireland as may from time to time be determined. Inner City Buildings Preservation Trust Company Llmitsd by Guarantee Tru8tee8' Annual Report (Incorporating the Dlrector's Raport) f¢onllnu•d) Year ended 31 March 2023 Achlevements and performanc• Overall, the year 2022-23 has seen the further recovery from the difficulties associated wilh COVID and Brexit. The income is recovering, and the Trust will move forward cautiously. We will continue to work with the tenants to ensure that the financial strength of the Trust is rebuilt to enable us to underpin our slrategic approach. The Trust's strategic approach is fvndamentally about the identification, acquisition and restoration of listedlhistoric buildings and increasing the level of skills awareness and education in the field of heritage. By implementing this approach in a systematic way. the Trust can breathe new life into old buildings and ensure that the restored assets positively contribute to the regeneration of the city of DerrylLondonderry over short, medium and long-term timescales. Furthermore, the restored buildings not only animate the urban landscape, but also generate income to be used in further investment in capital projects and In skills and awareness programmes. We believe that to effectively restore and utilize our listed built environment we need to be a patient capital investor over the longer term. This, in turn. enables the Trust to serve the widest public benefit. Over the last year the Trust continued to invest in maintaining the fabric of its assets to ensure that they remained in good structural condition and to protect them for future generations. The remainder of the Trust's income, i.e that element not re-invested to secure the Immediate advancement of its objectives, is retained to build up a sufficient capital ￿SerVe. The purpose of this retention is to enable the Trust to invest in future projects that requi￿ finances and patient restoration. This is particularly important given that grant aid for such projects is becoming harder to secure. whilsl the inflationary cost pressure5 On these projects continue to rise. Financlal revlew The year to 31st March 2023 saw the Trust report nel income of {£472.651) {2022.. £76,704) and reduction in net assets to £1,452,329. The main source of income is rent from the refurbished Northern Counties building, now operating independently as the Bishop's Gate Hotel. Net income from rent for the year was £123,332 {2022.. £119,687), bringing the unrestricted reserves to £632,719 12022. £509.387} The Trustees have set aside £310,000 12022.. £260,000) from this sum to meet fulure major maintenance works on its propety portfolio and are satisfied that the remaining free reserves are more than adequate to sustain operations. The balance of net assets of £819,61012022.. £1,415,594) represents funds attached to the property assets of the Trust which are part-funded by grants and therefore have restrictsons attached to them by funders. Overall, the Trustees determine that the Trust has a solid financial foundation and continues in good financial health. Inner City Buildings Preservation Trust Company Llmltsd by Guarantse Tru8tses' Annual Report (Incorporatlng the Director's Report) (contlnu•d) Year ended 31 March 2023 Pl•n• for futurè perlod8 In the coming year the Trust will continue to con501idate and improve its financial position, improve the effects'veness of our operations, and increase its positive impact in the city and in the heritage sector. Despite still recovering from deferred income and with the new pressures of inflationary increases, our audited accounts show a solid basis on which we are building back for Ihe future. We will continue our balanced approach that ensures each year we contribute positlvely to each of our stated charitable objectives. Consequently, looking forward to the 2023-24 year the TrLSSt (by our own actions and in partnership with others) will:. Continue to asset manage and invest in the Trust's t￿0 existing projects to ensure that the qu81ity of the original restoration is maintained and that any additions are congruenl with historic buildings standards, thereby enhancing the streetscape, increasing footfall and utilizing our built heritage to b008t tourism and bring prosperlty to the city. Continue to increase awareness, instil pride and educate the public on the Importance of heritage and whet can be achieved throush thoughtful restoration. Continue to implement the outcomes of the 2018 Walled City Conference and ensure their incorporation into the city's Strategic Plan and where possible the City Deal. Continue to advocate for best practice in urban regeneratlon through ttte local council, government, the National Trust. Development Trusts Nl, Locality and the Academy or Urbanism. We will also continue to showcase our existing restoration projects on Heritage Open Days and Similar publlc viewing as and when these return. Ensure that the Fashion & Textile Design Contre continues to deliver its programme of skills development, including the reviv81 of tradition81 skills. Re•erv•8 poIIcy The dlrectors review the reseNes of the Trust on an annual basis. This reserve5 review is carried out annually by the directors prior to the Trust's Annual General Meeting, which takes place in September each year. The review encompasses the nature of the income and expenditure streams, the need to rnatch variable income with fixed commitm8nts and the balance and nature of the reserves themselves. As part of this review the directors also analyse the future mandatory capital commitments placed on the Trust from the maintenance and upkeep of the properties and assets under ils stewardship, and have separately indented those material commitments within the reserves held at the year end. The Trust is also committed to certain capital projects and the associated impact on the reserves of the Trust are incorporated into its annual reserves review. As al 31st March 2021 the directors have designated £210,000 of the free reserves to meel future major maintenance and repair works on its property portfolio, nd intend to gradually increase thi8 In the coming years as and when free reserves allow. The directors have forecast the level of free reserves Ilhat is those funds not lied up in fixed assets, and designated and restricted funds) that the charity will require to sustain its operations and meet its financial obligation3 over future periods. They are satisfied that the reserves held are more than adequate for these purposes and will continue to monitor and review the funds held to ensure that the existing and future charitsble activities of the organisation can be funded from its resources Inner City Buildings Preservation Trust Company Llmlted by Guarantee Tru8tee8' Annual Report (Incorporatlng the Dlr8ctor'8 Report) (contlnu•d) Year ended 31 March 2023 R18k management The directors have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established lo enable regular reports to be produced so that the necessary steps can be taken to lessen these risks. The Trust have implemented 8 Risk Register to facilitate the identification of key risks on 8 timely basis. Committees, where appropriate, h8ve been established to cover all risk areas and these committees report regularly to the Board of Director5. Tru•te•8' r•8pon81blllt1•8 Statornont The trustees, who are also directors for the purposes of company law, are responsible for preparing the irustees, report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practlce). Company law requires the charity trustees to prepare financial statements lor each year whlch give 8 true and fair view of the state of affairs of the charitable company and the incomlng resources and application of resources, including the income and expenditure, for that period. In preparing these financlal statements, the trustees are required to: select suitable accounting pollcies and then apply them conslstently, observe the methods and principles in the applicable Charities SORP., make judgments and accounting estlmates that are feasonable and prudent., preparo the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in busines8. The tru8tees ar6 responsible ft)r keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities, Each of the persons who is a trustee at the date of approval of this report confims that: so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware, and they have taken all steps Ihal they ought lo have taken as a trustee to make themselves aware of any relevant audil information and lo establish that the charity's auditor is aware of that information. The audilor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006. Inner City Buildlngs Preservatlon Trust Company Llmltsd by Guarantee Tru8tee8' Annual Report (Incorporatlng the Dlrector'8 Report) (contlnued) Year ended 31 March 2023 Small company provl8lon• This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption. The truste6s' annual report was approved on 22no June 2023 and signed on behalf of the board of trustees by.. Mr John Meehan Trustee Inner City Buildings Preservation Trust Company Llmlted by Guarantee Indapandent Audltorfs Report to the Members of Inner Clty Building8 Preservation Tru8t Year ended 31 March 2023 Oplnlon We have audlted the flnancial statements of Inner City Buildings Preservation Trust {the 'charity'l for the year ended 31 March 2023 which comprise the statement of financial activities {including income and expenditure account). balance sheet and the related notes, including a summary of significant accoLsnting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Slandard applicable in the UK and R8public of Ireland (United Kingdom Generally Accepted Accounting Practice) In our oplnion the flnanci81 statements.. give a true and fair view of the state of the charity's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended.. have been properly prepared In accordance with United Kingdorn Generally Accepted Accounting Practice; have been prepared in accordance wilh the requirernents of the Companies Act 2006. Ba•ls for oplnlon We conducted our audlt in accordance wlth International Standards on Auditing IUKI IISAS (UK)) and applicable law. Our responsibilities under those standards are further described In the auditor's responsibilities for the audit of the financial Statements sectlon of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. W8 believe that the audit evidence we have obiained is 8uffi¢ient and appropriate to provide a basis for our opinion. Conclu8lons relatlng to golng concem In audlting the financial statements, we have concluded that the trustees, use of the going Concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed. we have not ￿dentifIed any material uncertainties relating io events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least ￿e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Inner City Buildings Preservation Trust Company Llmlted by Guarantee Independent Audltor'8 Report to the Member8 of Inner Clty Bulldlngs Preservatlon Trust (contlnu•dJ Year ended 31 March 2023 Other Infomiatlon The other information cornprlses the informatlon included in the annual report, other than the financlal statements and our auditor's report thereon. The trustees are responsible for the other infomation. Our opinion on the financial statements does not cover the other information and, except to the extent otheNiise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connèction with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in Ihe financial statements or a material misstatement of Ihe other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Oplnlon• on other mott•r• pr88crlbod by the Compan1•• Act 2006 In our oplnion, based on the work undertaken in the course of the audit.. the information given in the trustees, report for the financial year for which the financial statements are prepared is consisienl with the financlal 8tatement8', and the trustees, report has been prepared in accordance with applicable legal requirements, Matt•rn on whlch wo ar• r•qulred to roport by •xceptlon In the light of the knowledge and understanding of the charity and ils environment obtained in the course of the audit, we have not identified m8ierial misstatements in the trustees, report. We have nothing to report in respeci of the following matter8 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and retums; or certain disclosures of trust8es' remuneration specified by law are not made, or we have not received all the information and explanations we require for our audit., or the trustees were not entltled to prepare the financial statements In accordance with the small companies regime and take advantage of the small companies, exempts'ons in preparing the directors, report and from the requiremenl to prepare a strategic report. Inner City Buildings Preservation Trust Company Llmlted by Guarantse Independent Audltor'8 Report to tho Membern of Innor City Buildings Preservatlon Trust {contlnu•d) Year ended 31 March 2023 Re8pon81bllltle• ol tru8tee• As explained more fully in the trust8es' responsibilities statement, the trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial ststements that 8re free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees 8re responsible for assessing the charity's ability to continue as a going concern. disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either iniend to liquidate the charlty or to cease operations, or have no realistic alternative but to do so. AudltoV• re•pon•lbllltlM for the audlt of th• Ilnanclal •tatom•nt• Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from materlal misslatement, whether due to fraud or error, and to issue an auditor's report that includes our opinlon Reasonable assurance is a high level of assurance, but 18 not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect 8 material misstatement when it exists Misstatements can arise from fraud or error and are considered material if. Individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularitles, Includlng fraud, are Instances of non