Sion Mills Buildings Preservation Trust (A company limited by guarantee) Trustees, report and financial statements for the year ended 30 September 2022 Registration number: N1036935 Northern Ireland Charity number: NIC103552 McFarland Arnold & Co Chartered Accountants
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Contenrts for the year ended 30 Jeptember 2022 Page Legal and administi'ative information Trustees, report Auditoi's, repoit to the ti'usle¢s Stateinent of financial activities Balance Sheet Note5 to the financial statements 10- 19
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Legal and administrative information for the year ended 30 September 2022 Legal status The company 15 a private limited company, limited by guai'antee, which was incorpoi'ated undei. the Compani¢s (Northern Ireland} Oi'dei. 1986 under Registi'ation Number N1036935. It is also recognised as a cliai-ity by the HM Reveiiue & Customs under Reference Numbei. XN 33087. The company is a registered charity with the Charity Commission for Northei'n Ireland since l O Febi'uary 2016 under registi'ation niimber NIC103552. Registration number N1036935 Business address 120A Melmoiinl Road Sion Mills Co Tyrone BT82 9ET Secretary Mi. Graham Robinson Trustees Mr Fi'ancis Cassidy (appointed 17 October 2022) Mi. Nigel Collins Mr Stephen Devine (resigned 17 May 2023) Mrs Celia Ferguson Canon William George Irwin Ms Stella Mccl'ea (resigned 13 December 2021) Mr Eunan Moran (I'esigned 27 October 2021) Mr Graham Robinson Mr Andi'ew Slieen Mr Andi'ew White (appointed 27 October 2021) Auditors McFarland Arnold & Co 8 Main Street Newtownslewart Omagh Co Tyroiie BT78 4AA Bankers Bank of Ireland 25 Campsie Road Oniagh Co Tyrone BT79 OAE Page
Sion Mills Buildings Preservation Trust (A Company limited by guarantee) Trustees, report for the year ended 30 September 2022 The Irustees present their report and the financial slat¢ments for the yeai. ended 30 September 2022. Directors Officers of the company, known as dii'ectors for the purpose of company law and trustees for the purpose of chai'ity law, who sei'ved during the year and up to the date of this report are set out on page l of the financial staleinents. Membei's of the charitable company guai-antee to contribute an amount not exc¢eding £1 to the assets of the charitable company in the event of winding up. Charitable objects The principal activities of the charitable company are to pi'esei've, protect and impi'ove buildings or structures of particular beauty oi. of historic, ei)vironinental, ai'chiteclural, iiidusli-ial, constructional merit or interest in the Sion Mills area foi. the public benefit and to I'estore, I'enovate, and consei've gardens, pai'kland, laiidscapes and estates dii'ectly related to such buildings or sti'uctures, and to stimulate and educate theii. interest therein. Sion Mills Buildings Preservation Trust is a registered charity with the Charity Commission for Northern Ireland since 10 February 2016. uiider I'egistration number NIC103552. Organisational slructure The day to day management of the charitable company is carried out and overs¢en by the trustees on a voluntary ba51S. The ti'ustees meet regularly to administei- tlie charitable company's affaii's and to Inake all policy decisions. In accordance with ihe Articles of Association the number of trustees shall be the Herdinans Érustee and at least five and not more than twelve other individuals. One third of the trust¢e5 are i-equired to retire each year al the Annual General Meeting. Retiring trustees al'e eligibl¢ for i'e-election. Revieiv of activities and achievements During the yeai. the Trust availed of a grant froin Derry City and Strabane Disti'ict Council in relalion to The Heritage Anin)ation and Visitor Servicing Fund which covered digital coordinator costs, museum stoi'y telling, inteiyctive screen content and a progi'amme of talks. Also dui'ing this year Ulslei. Gai'den Villages Limited confirm¢d that their loan to the Trust was converted to a gi'ant and no repayinent would be requii'ed. The Ti'usi has a lease for the operation of Sion Stables from HEARTH. The restaurant, shop and museuinleducation centre continue to operate although the restaui?nt tenants i'acated the premises in March 2022 and it was vacant until new teiiants commenced in Febi'uary 2023. The pi'oject costs for the Stables are still beiiig finalised by HEARTH and the Ti'u5t has a liability for any shortfall but this has not yet beeii quantified. The initial ainount invoiced to the Trusl of £9,333 net, in relalion to this is included in ci'editors under other a¢ci'uals and no further ainoui)Is have been provided for. Page 2
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Trustees, report for the year ended 30 September 2022 The Trust completed their workspace units in 201 O however the units remain unoccupied. Herdmans Holdings Limited went into receivei'sl)ip on 29 June 2011 and the lease was then taken ovei. by the purchaser of the property which has changed hands several time5 since. The Trust instigated legal pi'oceedings with the new owners regarding the lease obligations and tlie fulure of the workspace units. Following Ihe gi'ant of a repossession order dated 20 September 2016, the Trust has taken possession of the workspace units which al-e in a dilapidated state. The Court Order also provided for the Trust to seek enfoi'cemenl of its outstanding I'enl and restoration costs of the units however at a heal'ing on 3 February 2020, the original judgement was set aside with the judge stating that a Judgment in Default should not stand and that the defendant should have their case heai'd. The pandemic then Ineant that all mattels were delayed and in the meantime ownership of the pi'opeity is in Ihe process of ohanging again. This is now furtlier complicated by the death of Mrs Margaret Loughrey in Sept¢mbei' 2021 (one of the paities to the transaction). The late Mrs Loughrey was sole director of her company Rey Mill Ltd and her entii'e estate entered pi'obate at the end of 2021. The Ti'ustees were led to believe that probate would be satisfied around Eastei. 2023 but, to dale, this has nol happened. The legal team of the trustee5 al'e in ongoing discussions with the late Mrs Loughrey's legal team in anticipalion of negoliated agreement on the way forward. In accordance with FRS 102 Section 16 (FRS 102 'The Financial Reporting Standai-d applicable in the UK and Republic of li'eland,), the workspace units have been revalued to fair value as set out in the notes to the financial statements. Tlie trustees are aware Ihat the lack of free I'eserves, logethei. with the economic backdrop, the aftermath of the coronavirus pandemic and the cost of living crisis, will provide a challenging environment in the yeai. to come. Reserves The Statement of Financial Activities on page 8 of the financial statements sets out the results for the year. Th¢ purpose of the funds are outlined in the notes lo the financial stalemenls. Statement of trustees, responsibilities The Ti'uste¢s are responsible foi. pi'eparing the Trustees, R¢port and the financial statemenls in accordance with applicable law and regulations. Company law and charity law requires the Truslees lo prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial stat¢m¢nts in accordance with applicable law and United Kingdom Accounting Standai'ds (United Kingdom Generally Accepted Accounting Practice) including 'Accounling and Reporling by Charities.. Stateinent of Recommended Practice, (FRS 102 'The Finai)cial Reporting Standard applicable in the UK and Republic of Ireland,). Under company law the Ti'ustees must not approve the financial statements unless they are satisfied that they give a true and fail. view of the slate of affaiiE of the company and of the proftt or loss of the company for that yeai.. In preparing these financial statements, Ihe Trustees are required to- select 5Ultable accounting policies and tl)en apply them con51Stently' make judgements and estimate5 that are reasonable and prudent. state wheih¢i' applicable accounting standards and stal¢m¢nls of i'ecommended practice have been followed subject to any departui-e5 disclosed and explained it) tlie financial statements- and PIEpai'e the financial statements on the going concern basis unless it is inappropriate to presuine that the chai'ity will continue in business. Page 3
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Trustees, report for the year ended 30 September 2022 The Trustees are responsible for keeping adequate accounting records that are sufficienl to Show and explain the company's ti'ansactions and disclose with I'easonable accuracy at any time the financial position of the company and enable them to ensui'e that ihe fiiiancial statements comply with the Companies Act 2006 and with the Chai'ities Act (Nl) 2008. They are also responsible foi. safeguai-ding the assets of the company and hei)ce for taking reasonable steps for the prevenlion and detection of fraud and other irregulai'ities. Statement of disclosure of informalion to auditors So fai. as each of the ti'ustees in office at the date of appi'oval of these financial statements are aware.. there is no relevant audit inforination of which the compangs auditoi's are unaware, and the trustees have taken all the steps that they ought to have taken to make themselves awai'e of any i'elevant audit information and to establish that the company's audito;'s are aware of that information. Auditors Although the company qualifies for audit exemption the ti'ustees i'equii'e an audit lo be carried out. In accoi'dance with Section 485 of the Companies Act 2006, a i'esolution proposing that McFarland Arnold & Co be reappointed as audilors of the charity will be put to the Annual General Meeting. Special provisions relating to small companies This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'} and in accordance with the special pi'ovision5 of Part 15 of the Companies Act 2006 relating io small companies. This report was approved by the trustees on /¢ _t)tt Ié," ai9.3 and signed on its behalfby Signature: Name (in block capitals): Trustee Page 4
Sion Mills Buildingts Preservation Trust (A company limited by guarantee) Independent auditors, report to the members of Sion Mills Buildings Preservation Trust for the year ended 30 September 2022 Opinion We have audited the financial statements of Sion Mills Buildings Preservation Trust for the year ended 30 September 2022 which comprise the statement of financial activities, the balance sheet and notes to the financial statements, including a suminary of significant accounting policies. The financial I'eporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accouiiting Pra¢li¢e) including 'Accounting and Reporting by Chai'ilies: Statement of Recommended Pi'actice, (Financial Reporting Standai-d 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,). In our opinion the financial statements: give a true and fair view of the state of the charitable company's affairs as at 30 September 2022 and of the incoming resoui'ces and application of resources, including its income and expenditure, for the year then ended. have been properly prepai'ed in accordance with United Kingdoin Generally Accepted Accounting Practice including 'Accounting and Reporting by Charities.. Statement of Recommended Practice, (Financial Reporting Standard 102 'The Financial Reporting Standai'd applicable in the UK aiid Republic of Ireland,). have been prepared in accordance with the requireinents of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our I'esponsibilities under those standards al'e fui'ther described li) the Auditor's responsibilities for the audit of the financtal statements section of our I'eport. We al'e independent of the cliaritable coinpany in accordance with the ethical requir¢ments that are relevant to our audit of the financial statements in the UK, including ihe FRC'S Ethical Standard, and we have fulfilled our othei. ethical responsibilities in accordance with these I'equirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material uncertainty relating to going concern We draw attention lo notes 16, 17 and 18 in the financial stalemenls, which set out Ihe disclosures regarding the revaluation of the woi-kspace units and with the potential shortfall on the Stables. These matters indicate that material uncertainty exists that casts significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of these matlers. Other information The other infoiThation comprises the ii)formation included in the annual report, other than the financial statements and our auditor's report thei'eon. The ts'ustees are responsible foi. the other information. Our opinioii on the financial statements does not cover the othei. information and, except to the extent otherwise explicitly staled in oui. repoit, we do not express any form of assui'ance conclusion thei'eon. In connection with our audit of the financial statem¢nts, our responsibility is to read the other infoi'ination and, in doiiig so, considei. whether the other information is materially inconsistent with the financial statements or oui. knowledge obtained in the audit oi. oihei'wise appears to be Inaterially Inisstated. If we identify such malei'ial inconsistencies oi. apparent material misslalements, w¢ are i'equired to determine whether tl)ere is a Inaterial misstatement in the financial statements or a material misstatemei)t of the other infomiation. If, based on the woi'k we have perfoi'med, we conclude that there is a material misstatement of this othei. information, we are required to I'eport that fact. We have nothing to I'eport in this regard. Page S
Sion Mills BuAldings Preservation Trust (A company limited by guarantee) Independent auditors, report to the members of Sion Mills Buildings Preservation Trust for the year ended 30 September 2022 Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the woi'k undertaken in the course of the audit.. the infomiation given in the directors, reporl for the financial year for which the financial statements al'e prepai'ed 15 consistent with the financial statements. and Ihe trustee's I'epoit has been prepai'ed in accordance with applicable legal I'equirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the chai'ilabl¢ company and it5 environment obtained in the course of the audit, we have not identified material misstalements in the trustees, report. We have nothing to I'eport in respect of the following maltei's in i'elation to which the Companies Act 2006 requir¢s us to report to you if, in our opinion:_ adequate accounting records have not been kept, or returns adequate for our audit have not beeii received fi'om bl'anches not visited by us; or the financial statenienls are not in agreement wilh the accounting i'ecords and I'etuims. or certain disclosures of trustees, remuneration 5pe¢ified by law are not made; or we have not received all the infoiination and explanations we require for our audit- or Ihe tl-U5tees were not entitled to prepare the financial statements in accordance with the small coinpanies regime and take advantage of the small companies, exemption fi'om the requiremenl lo prepare a strategic i'epoit. Responsibilities of the trustees As explained more fully in th¢ stateinent of trustees I'esponsibilities (set out on page 3), the trustees are responsible for the prepai'ation of the financial statements and foi- being satisfied that they give a true and fair view, and for such ii)teriial conti'ol as the trustees determine is necessary to enable the pi'eparation of financial statements that are free fi-oin Inaterial misstatement, whether due to fraud or eii'or. In preparing the financial statemenls, the ti'ustees are responsible for assessing the chai'itable company'5 ability to continue as a going concern, disc105ing, as applicable, matters related to going Concern and using the going concern basis of accounting unless the Irustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives al'e to obtain reasonable assui'an¢e about wl)ether the financial statements as a whole are fi'ee from material misstatement, whether due to fraud oi. en'oi., and to issue an auditor's report that includes our opinion. Reasonable assurance is high level of assurance, but is not a guai'antee that an audit conducted in accordance with ISAS (UK) will always detect a material misstateinent when il exists. Misstatements can arise froin fraud oi- error and al'e considered material if, individually oi. in the aggregate, tl)ey could i'ea50nably be expected to influence the econoinic decisions of users taken on the basis of these financial slalements. A further description of our I'esponsibilities foi. Ihe audit of the financial statemenls is located on the Financial Reporting Council's website at www.frc.org.uk. This description forms part of oiir auditor's I'eport. Page 6
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Independent auditors, report to the members of Sion Mills Buildings Preservation Trust for the year ended 30 September 2022 We have iindertaken the aiidit in accordance with the requirements of Auditing Practices Board's (APB'S) Ethical Standards for Auditors; including APB Ethical Standards - Pi'ovisions A vailable for Small Entities as stated below.. In common with many other businesses of the charitable company size and nature we as auditors assist the charitable company with the preparation of the financial stateinents. and We provide tax advice to the chai'itable coinpany as and when required, and where necessai'y, will represent the charitable company at tax ti'ibunals. Purpose of our audit work and to whom we owe our responsibilities This I'eport is made solely to the charitabl¢ company's membei's, as a body, in accordance with the Companies Act 2006. Our audit work has been undertak¢n so ihat we Inight state to the chai'itable coinpany's Inembers those matters we are requii'ed to state to them in an auditoi's report and for no oth¢r purpose. To the fullest extent permitted by law, we do not accept or assume I'esponsibility to anyone other than the charity and the chai'ity's members as a body, for our audit work, for this report, or for the opinions we have formed. Mrs Kate McFarland (senior statutory auditor) For and on behalf of McFarland Arnold & Co Chartered Accountants & Statutory Auditors Dated: //A .f£i?tt£< -4er Joa. MeFarland Arnold & Co Charlered Accountants 8 Main Street Newtownstewart Omagh BT78 4AA Page 7
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Statement of financial activities (incorporating the income and expenditure account) for the year ended 30 September 2022 Unreslricted Restricted funds funds 2022 Total 2021 Total Notes Incoming resources Incoming resources fi'om generating funds: Grant income Otlier incoming resources 16,586 16,586 17,484 25,206 15,077 17,484 Total incoming resources 17,484 16,586 34,070 40,283 Resources expended Heritage Animation project Cultural venues pi'oject Computei. costs Rent Rates and water rates Electi'icity and gas Repaii's and Inaintenance Bad debts Subscriptions Insurance Telephone Accountancy fees Auditors, I'emuneralion Depreciation & impairinent Revaluation of investment property Loss on disposal of tangible a55ets UCIT loan interest Bank charges Sundry expenses 6,600 6,600 7,968 17,238 173 1,000 474 5,983 6,342 4,122 1,000 610 9,093 1,132 4,036 73 370 487 1,300 ,650 14 33,756 4,122 1,000 610 9,093 1,132 4,036 73 370 487 1,300 1,650 14 1,028,161 1,061,917 293 313 515 1,180 1,100 15,617 54 553 85 703 87 407 703 87 407 Tolal resources expended 65,440 1,028,161 1,093,601 58,888 Net incoming resources before transfers Transfer5 between funds (47,956) (1,011,575) (1,059,531) 16,586 (16,586) (18,605) INet movement in funds for the year (31,370) (1,028,161) (1,059,531) (18,605) Total funds brought foi'ward (31,228) 1,328,215 1,296,987 1,315,592 Total funds carried forward (62,598) 300,054 237,456 1,296,987 The notes on pages 10 to 19 foi'm an integral part of these financial 5tatementS Page 8
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Balance Sheet as at 30 September 2022 2022 2021 Note5 Fixed assets Tangible assets Investments 300,054 250 ,361,985 250 300,304 1,362,235 Current assets Debtors Cash at bank and in hand 10 2,022 3,908 2,606 894 5,930 3,500 Creditors: amounts falling due within one year (23,293) (22,882) Net current liabilities (17,363) (19,382) Total assets less current liabilities Creditors: amounts falling due after more than one year 282,941 1,342,853 12 (45,485) (45,866) Net assets 237,456 1.296,987 Funds Restricted income funds Unrestricted ii)come fui)ds 13 300,054 (62,598) 1,328,215 (31,228) Total funds 237,456 1,296,987 The company is regist¢r¢d as a private limited company in Noitl)ern Ireland undei. Registration Numbei. Nl 036935. The financial stat¢ments ar¢ prepared in accordance with Statement of Recommended Practice.. Accounting and Reporting by Chai'ities (FRS 102 'The Fii)ancial Repoiting Standai'd applicable in Ihe UK and Republic of Ireland,) and in accordance with the special pi'ovisions of Pait 15 of the Companies Act 2006 I'elating lo small entities. The financial statements were approved by the Board on *w/JÉrao3 and signed on its behalf by Signalure: Name (in block capitals): Trustee Trustee The notes on pages 10 to 19 form an integral part of these financial statement5 Page 9
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial statements for the year ended 30 September 2022 Ceneral information The company is a private limited company, liinited by guarantee, which was incorporated under the Companies (Noi'theim Ireland) Ol'der 1986 uiidei. Registralion Numbei. N1036935. It is also recognised as a charity by the HM Revenue & Customs under Reference Number XN 33087. Tl)e company is a registei'ed charity with the Chai'ity Commission for Noi'ihei'n Ireland since l O Februaiy 2016 under registration number NIC103552. The address of the registei'ed office is 120A Melmount Road, Sion Mils, Co Tyi'one, BT82 9ET. Statement of compliance These financial statements have been prepared in compliance with Accounting and Reporting by Charities: Stateinent of Recommended Practice (FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland,) and in accordance with the Companies Act 2006. Accounting policies 3.1. Basis of preparation The financial stateinent5 are prepared undei- the Iiislorical cost convention and in accordance with Accounling and Repoi'ting by Charities.. Statement of Recommended Practice (FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland,) The charity has taken advantage of the exemption in FRS 102 Section IA from the requirement to pi'oduc¢ a cashflow statement because it is a sniall charity. The presentation currency of thes¢ financial statements is sterling. 3.2. Incoming resources All incoming i'esources are included in ihe stalemenl of finaiicial activities when ihe charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular cat¢goi-ies of income.. Voluntaiy income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when I'eceivable. Gi'ants where entitlement is not conditional on the delivery of a specific performance by the chai'ity, are recognised when th¢ charity becomes unconditionally entitled to the grant. Donated services and facilities are included at the value to the charity where this can be quantified. The value of sei'vices provided by volunteers has not been included. Gifts donated for i-esale are iiicluded a5 incoming resources within aclivilies for geiieraling funds when they are sold. Include here any pei'sonal guarantees given by dii'ectors in respect of boiTowings by the I'epoiting entity 3.3. Resources expended Expenditui'e is recognised on an a¢ci'ual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure lo whicli it relates. Charitable expenditure comprises those costs incurred by the chai'ity in the delivei'y of its activities and services for its beneficiai'ies. It includes both costs that can be allocated dii-ectly to such activities and those costs of an indii'ect nature necessary to suppoi'l Ihem. Page 10
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial statements for the year ended 30 September 2022 3.4. Tangible fixed assets and depreciation Tangibl¢ fixed assets costing more than £500 are capilalised and included at their purchase cosls, together with any incidental expenses of acquisition. Depreciation is provided at rates calculated to write off the cost less i'esidual value of each a55et over its expected useful life, as follows: Investment properties Fixtures, fittings and equipinent Slraight line ovei. the life of the lease 200/0 reducing balance No depreciation 15 charged until ihe assets are bi'ought into use by the company. The carrying valu¢s of tangible fixed assets are r¢vi¢wed annually for impairn)ent, if events or changes in cii'cuinstances indicate the ca11.ying value may not be recoverable. Fund accounting Unrestricted funds relate to general funds which al'e available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Restrict¢d funds are funds which are to be used in accordanc¢ with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in Ihe notes to the financial statements. 3.6 Taxation The company is registered as a charity for tax purposes under reference number XN 33087. As a charity, Sion Mills Buildings Preservation Ti'ust is exempt from tax on income and gains falling within Section 505 of the Taxes Act 1988 or S¢ction 256 of the Taxation of Chargeable Gains Act 1992 to Ihe extent that these are applied to its charitabl¢ objects. No tax charges hav¢ therefoi'e arisen foi. the company foi. the year ended 30 September 2022. Impairment A review foi. indicators of impairinent is carried out at each reporting date, with the recoverable amouiit being estimated wh¢re such indicatoi's exist. Wher¢ the carrying value exceeds the recoverable ainount, tl)e asset is impaii-ed accordingly. Prioi. impairments al'e also review¢d foi. possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an eslimale is made of the recoverable amounl of the cash-generaling unit to which the asset belongs. The cash-genei'ating unil is the smallest identifiable group of assets that includes the assel and generates cash inflows that are largely independent of the cash inflows fi'om othei. assets or groups of assets. Pagell
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial statements for the year ended 30 September 2022 Financial instruments A financial asset or a financial liability is reco]sed only when the company b¢romes a party to the contractual provisions of the insli'ument. Basic financial instruments al'e initially r¢cognised at the transaction pi'ice, unless the arrangeinent coiistitutes a financing ti'ansaction, whei'e it is recognised at tl)e present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets tl)at are In¢asured at cost oi. amoitised cost are reviewed for objective evidence of impaii'ment al the end of eacli I'epoiting date. If ihere is objective evidence of impairment, ai) impaii'menl loss is recognised in profit or loss immediately. For all equity instruments regai'dless of significance, and other financial as5et5 that are individually significant, these are assessed individually for iinpairment. Other financial assets or either assessed individually or gi'ouped on the basis of similar ci'edit risk ¢haracteri5tics. Any revei-sals of impairment are recognised in pi'ofit or loss immediately, to the extent Ihat Ihe revei'sal does not result in a carrying amount of the financial asset that exceeds what the caiTying amount would have been l)ad the impaii'ment not previously been recognised. Grant income Restricted funds 2022 2021 Derry City & Sti'abane District Council Ulster Garden Villages 11,977 4,609 11,977 4,609 25,206 16,586 16,586 25,206 Other incoining resources Unrestricted funds 2022 Total 2021 Total Sale of books Sundry income Donations Rental income- River Mouime Guides Rental Income - Hidden Pearl 90 258 5,462 3,153 8,611 258 5,462 3,153 8,611 2,992 11,995 17,484 17,484 15,077 Page 12
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial statements for the year ended 30 September 2022 Net outgoing resources for the year 2022 2021 Net outgoing resources is Staled after Charging.. Depreciation and other ainounts written off tangible fixed assets Auditors, remuneration 14 1,650 15,616 1,100 Employees Number of employees The average monthly numbers of employees (including the trustees) during the year. 2022 Number 2021 Number Auditors, remuneration 2022 2021 Auditors, remuneralion - audit of the tinancial statements ,650 1,000 Page 13
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial statements for the year ended 30 September 2022 Fixtures, Inve51ment fittings and property equipment TangAble fixed assets Total Cost or valuation At l Octobei. 2021 Revaluation 1,559,922 {1,259,922) 3,832 1,563,754 (1,259,922) AI 30 September 2022 300,000 3,832 303,832 Depreciation At l October 2021 Charge for the year Revaluation 198,005 3,764 14 201,769 14 (198,005) (198,005) At 30 September 2022 3,778 3,778 Net book values AI 30 September 2022 At 30 September 2021 300,000 54 300,054 1,361,917 68 1,361,985 The investment property which is unoccupied and is now in a dilapidated state because of the cii'cumstances set out in Note 16, has this year been revalued to fair value by an independent valuer. Capilal grants shown as resti'icted funds which were pi'eviously being I'eleased in line with depreciation policy over the 99 years term of the lease are now released in line with th¢ revaluation of the investment property. 10. Debtors 2022 2021 Prepayments and accrued income 2,022 2,606 2,022 2,606 Page 14
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial statements for the year ended 30 September 2022 11. Creditors: amounts falling due Ivithin one year 2022 2021 CFI Loan (see note 12) Ulstei. Garden Villages Limited loan (see note 12) Other taxes and social secui'ity Other accruals and deferred income 1,068 1,122 543 500 20,717 22,225 23,293 22,882 12. Creditors: amounts falling due after n)ore than one year 2022 2021 CFI Loan Ulster Garden Villages Limited loan Loan from Trustees 23,956 24,550 4,066 17,250 21,529 45,485 45,866 Loans Repayable in one yeai. or less, oi. on demand (Note I l) Repayable between two and five yeai's Repayable in five yeai's oi. more 1,068 25,802 19,683 1,122 25,804 20,062 46,553 46,988 Due to financial difficulty, CFI {formerly UCIT) loan i'epayments previously had been deferred, however in 2017 the Trust had made an agreeinent to pay £140 pei- Inonth to cover interest charged and a contribution towai'ds loan I'epayment and this has been maintained. Future loan repaymenls have been allocated on this basis. The loan from Ulster Garden Villages Limited was converted from a loan to a grant during the year (see Note 4). The loans from the Truslees will be repaid when the cashflows beconie available, but not within the n¢xt twelve monihs. Page 15
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the flnancial statements for the year ended 30 September 2022 13. Analysis of net assets between funds Unrestricted Restricted fuiids funds Total funds Fund balances al 30 September 2022 as represented by.. Tangible fixed assels Investment assets Current assets Current liabililies Long-term liabilities 300,054 300,054 250 5,930 (23,293) (45,485) 250 5,930 (23,293) (45,485) {62,598) 300,054 237,456 Restricted funds I'elate to gi'anls i'eceivable in respect of capital expenditure and gi7nts receivable in advance for a specific purpose or for future running costs of the company and its activilies. At At l Oetober 2021 Incoming Outgoing Transfers 30 September 2022 14. Unrestricted funds General fund (31,228) 17,484 (65,440) 16,586 (62,598) (31,228) 17,484 (65,440) 16,586 (62,598) Purpose of unrestricted funds Unrestricled funds relate to general funds which al'e available for use at the discretion of the (rustees in furiherance of the general objeclives of the chai'ity and which have not been designated for other purposes. Page 16
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial statements for the year ended 30 September 2022 15. Restricted funds At l October Incoming Outgoing Transfers At 30 September 2021 2022 Long leasehold property De11y City & Sti'abane District Council U15ter Gai'den Villages 1,328,215 (1,028,161) 300,054 11,977 4,609 (11,977) (4,609) 1,328,215 16,586 (1,028,161) (16,586) 300,054 Purpose of restricted funds Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administei'ing such funds are charged against the specific fund. Restricted ndS mainly relate lo Ihe costs of building restoration and purchasing equipment for the Trust. A number of gi'ants were i'ec¢ived towards the pi-oject and clauses al'e i-eflected it) the lettei's of offer from the major funding bodi¢s restricting the disposal of buildings and equipment. Graiits have been released in line with the r¢valuation of the investment property. Page 17
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial statements for the year ended 30 September 2022 16. Capital commitments In 2008, the Ti'ust secured a 99 year lease of the Workspace premise5 from Herdmans Holdings Limited and then entered into two further agreements. a) An agreement to sublet lh¢ woi'kspace units to Hei'dinans Holdiiigs Limited for a 15 yeai. period. b) An agreement foi. Ihe option to purchase the premises by Herdmans Holdings Limited during the period expii-ing on the expii'ation of the sublease. The Trust completed Iheii. woi'kspace units in 201 O however the units remain unoccupied. Herdmans Holdings Limtted went into receivership on 29 June 2011 and the lease was then taken over by the purchaser of the property which has chang¢d hands several times since. The Ti'ust instigated legal pi'oceedings with the new owners regai'ding the lease obligations and the future of the workspace units. Following the grant of a repossession order dated 20 September 2016, the Ti'ust has taken possession of ihe workspace units which are in a dilapidated state. The Court Ol'der also provided for the Trust to seek enforcement of its outstanding rent and restoi'ation costs of the units however at a hearing on 3 Febi'uai'y 2020, tlie original judgement was set aside with the judge stating that a Judgment in Default should not stand and that Ihe defendant should have their case heard. The paiidemic tlien Ineant that all matters were delayed and in the meantime ownership of the property is in the pi'ocess of changing again. This is now further complicated by the death of Mi's Margaret Loughrey in September 2021 (one of the partie5 to the ti'ansaction). The lale Mrs Loughrey was sole director of her company Rey Mill Ltd and her enlii-e estate entered probate at the end of 2021. The Ti'ust¢es were led to believe that probate would be satisfied around Eastei- 2023 but, to date, this has not happened. The legal team of ihe ti'ustees are in ongoing discussions with the late Mrs Loughrey's legal team in anticipation of negotiated agreement on Ihe way fonvard. In accordance with FRS 102 Section 16 (FRS 102 'The Financial Reporting Standai'd applicable in the UK and Republic of Ireland,), the workspace units have been revalued to fair value as set out in Note 9 to the financial slalemeiits. The Irustees anticipate that funding can be secured to restore the workspace units into useable premises. The Trust and HEARTH were in partnership for the restoration of the Stables. Part funding was obtained for this pi'oject fi'om the Depaitment of Agricultui'e and Rural Development (DARD) under ARC Rural Developnient Grant, therefore DARD have i'egistered a charge ov¢r the properly wilh Companies Hous¢. The Trust secured a 25 yeai. l¢ase froin HEARTH Revolving Fund cominencing on l Decembei. 2013 for the Stables at 120A Melmount Road, Sion Mills at a renl of £1,000 pei. annum. At 30 September 2022, conimitments undei. this lease remain at £16,000. The project costs are still beii)g finalised by HEARTH and the Trust has a liability foi. any sliortfall but this has not yet beeli quantified. The initial ainounl invoiced to tlie Trust of £9,333 net is included in rediloi's under other acci'uals and no fuither ainounts have beet) pi'ovided for. 17. Contingent liability No ainount has been included foi. legal fees in relatioii to the legal work ongoing to re501ve malters set out in Note 16 as these have not been quantified. Page 18
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial statements for the year ended 30 September 2022 18. Material uncertainty relating to going concern Disc105ures i'elating to the ongoing negotiations regarding the woi'kspace units are set out in Note 16. The write off of the debtor for the relit of the woi'kspace units iii the year ended 30 Septembei. 2019, previously included in the financial slalements at an amount of £94,839, togethei. with the i-evaluation of the investment propeity leaves tl)e Ti'ust with negative resei-ves on uni-esti-icted funds. The Balance Sheet remains positive and the ti'ustees believe that, with the continued support of their main creditors (CFI formei'ly UCIT), the trustees and funders (HEARTH) that tlie trust will be able to meet its obligations for the foi'eseeable future. The Trustees anticipate that funding can be secured lo I'estor¢ the workspace unils into useable premises. The truslees al'e awai'e that Ihe lack of fvee i'esei'ves, together with the economic backdrop, the aftermath of the coronavirus pandemic and the cost of living crisis, will provide a challenging ¢nvironmenl in Ihe year to come. The trustees still consider that it is appropriate for the financial siatements to be prepared on a going concern basis. 19. Transactions with trustees The trustees attend meetings and carry out the business of the company on a voluntary basis. Dui'ing Ihe year the trust purchased goods and sei'vices from trustees and their close family members tolalling £6,600 (2021 £16,640). Creditoi's, amounts falling due after more Ihan one year, includes loans fi'om four trustees Éolalling £21,529 (2021 £17,250), to be i-epaid wlien the Qoiiipany has suffici¢nt funds to do so. 20. Company limited by guarantee Sion Mills Buildings Preservation Trust is a company limited by guarantee and accordingly does not have a share capital. Every member of the company undertak¢s to contribute such amount as may be required not exceeding £ I to the assets of the ohai'itable coinpany in the event of ils being wound up while he oi- she is a memb¢r. or witl)in one yeai. after he or she ceases to be a meinber. 21. Charity Commission for Northern Ireland Sion Mills Buildings Pi'esei'vation Trust is a i'egistei-ed charity with the Charity Commission for Norihern Ireland since l O February 2016, undei. I'egisti'ation number NIC103552. Page 19