Sion Mills Buildings Preservation Trust (A company limited by guarantee) Trustees, report and financial statements for the year ended 30 September 2023 Registration number: N1036935 Iyorthern Ireland Charity number: NIC103552 MeFarlan(l Arnold & Co Chartered Accountants
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Contents for the year ended 30 September 2023 Page Legal aiid administrative infoliatIOn Trustees, report Auditors, report to the trustees Statement of financial activities io Balance Sheet Notes to the financial stalemenls
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Legal and administrative information for the year ended 30 September 2023 Legal status The company is a private limited company, limited by guaranlee, which was incorporated under the Companies (Northei'ii li'eland) Oi-dei. 1986 under Registi'ation Number N1036935. It is also recognised as a charity by the HM Revenue & Customs under Reference Nuinber XN 33087. The coinpany 15 a registered charity with the Charily Commission for Northern Ireland since l O February 2016 under registration number NICI 03552. Registralion number N1036935 Business address 120A Melniount Road Sion Mills Co Tyrone BT82 9ET Secretary Mr Graham Robinson {resign¢d 22 May 2024) Mr Francis Cassidy (appointed 22 May 2024) Trustees Mr Francis Cassidy (appointed 17 October 2022) Mr Nigel Collins Mr Stephen Devine (resigned 17 May 2023) Mi's C¢lia F¢rguson Canon William George Irwin Dr Kiei'an Kennedy (appointed 22 May 2024) Ms Judith McGaffin (appointed 22 May 2024} Mr Graham Robinson (resigned 22 May 2024) Mi. Aiidrew Sheen Ms Judith Walker (appointed 22 May 2024) Mi. Andrew Wl)ite Auditors McFai'land Arnold & Co 8 Main Sti'eet Newtownstewart Omagh Co Tyi'one BT78 4AA Bankers Bank of li'eland 25 Campsie Road Oinagh Co Tyrone BT79 OAE Solicitors Mccay Legal l John Wesley Sti'e¢t Sti'abane Co Tyi'one BT82 8RJ Page
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Trustees, report for the year ended 30 September 2023 The Irustees pi'esent tl)eii' i'eport and the financial statements for the year ended 30 September 2023, Directors Officeis of ihe conipany, known as dii'ectors for the purpos¢ of company law and trustees for the purpose of charily law, who served during the year and up to the date of this I'eport are sel out on page l of the financial statements. MenibeiB of the charitable coinpany guai'antee to contribute an amount not exceeding £ I to the assets of the rharitable coinpany iii the event of winding up. Charitable objects Th¢ pi'incipal activities of the charitable coinpany are to presei've, prolect and improve buildings or slYuclur¢s of paiticular beauty oi. of historic, envii'onmental, architectural, industi'ial, constriictional merit or interest in the Sion Mills area for the public beiiefit and to i'estore, I'enovate, and conserve gardei)s, parkland, landscapes and estat¢s directly related to sucli buildings or sti-uctui'es, and to stiinulate and educat¢ theii. intei'est therein. Sion Mills Buildings Pi'eservation Ti'ust is a registered charity with the Charity Cominission for Northern Ii'eland since l O February 2016, ui)der registration nuinber NIC103552. Organisational structure The day to day management of the charitable company is carried out and overseen by the trustees on a voluntary ba515. The tt-ustees meet regularly to administer the chai'itable company's affairs and to make all policy decisions. In accordance with the Articles of Association the number of trustees shall be the Herdmans Irustee and at least five and not more than twelve other individuals. One third of the trustees are i'equired to i-etii'e each year at ihe Annual General Meeting. Retiring trustees al'e eligible foi. re-election. Revieiv of activities and achievements Dui'ing the year the Trust availed of grants from Derry City and Sti'abane Dislrict Council in relation to The Hei'ilage Aniination and Visitor Servicing Fund which covered digital coordinator costs and Inuseum costs. The Ti'ust has a lease for the operation of Sion Stables from HEARTH. The reslaui'ant, shop and museum/¢ducation centi-e continue to operate although the restaurant tenants vacated th¢ pi'emises in March 2022 and it was vacant until new tenant commenced in February 2023. The project costs for the Stables are still being finalised by HEARTH and the Ti'ust has a liability for any shortfall but this has iiot yet been quantified. The initial amount invoiced to the Trust of £9,333 n¢t, in relation to this is included in ci'editors under oihei. acci'uals and iio fuitliei. amoui)ts have been pi'ovided for. Page 2
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Trustees, report for the year ended 30 September 2023 In 2008, the Trust secured a 99 year lease of tl)e Workspace premises from Herdmans Holdings Limited. The Trust ¢oinpleted their woi'kspace units in 201 O howevei- the units I'emain unoccupied. Herdmans Holdings Limited went into receive13hip on 29 June 201 l and the lease was then taken ovei. by the purchaser of the pi'operty which has changed hands several times since. The Trust instigated legal proceedings with the new owners regai'ding the lease obligations and the future of the woi'kspace units. Following the gi'ant of a repossession ol'der dated 20 September 2016, the Ti'ust has taken Possession of the workspace ui)its whicli al'e in a dilapidated state. The Couit Oi'dei. also pi'ovided for the Trust to seek enforcement of ils outstanding rent and resloi'ation costs of the units however at a hearing on 3 February 2020, the oi'iginal judgement was set aside with tlie judge stating that a Jiidgment in Default should not stand and that the defendant should have theii. case h¢ard. The pandemic then meant that all Inatters were delayed and in the meantime ownei'ship of th¢ pi'operiy had changed again. This was then furiher coniplicated by the death of Mrs Margai'et Loughi'ey in September 2021 {one of the pai'ties to the transaction). The late Mrs Loughrey was sole dii'ector of her company Rey Mill Ltd and her entire estate entered probate at the end of 2021. The Ti'ustees al'e advised that pi'obate has now been finalised and the legal team for the trustees have reached a settl¢ment with the late Mrs Lougl)rey's legal team whi¢h 15 to pass title of the property known as the Old Mill, to the Trust, together with £50,000 in lieu of outstanding l-ent. The Trust have a liabi lity foi. l¢gal fees in I'elation to this case of £41,275 plus V A T, which is shown as expenditure in this year. At tl)e date of this report the tei'ms of the settlenient have not been fulfilled Iherefoi-¢ no asset or debtor has be¢n included foi- this settlement. In accoi'dance with FRS 102 Section 16 (FRS 102 'The Financial Repoiting Siandard applicabl¢ in the UK and Republic of Ii'eland,), the workspace uiiits are i'evalued to fair value as set out in the notes to the financial statements. The trustees al'e aware that the lack of free reserves, tog¢ther with the economic backdrop, the aftermath of the coi'onavirus pandemic and the cost of living crisis, will provide a Challenging eiivironment in the yeai. to come. Reserves Tl)e Stateinent of Financial Activities on page 8 of the financial statements sets out the results for the year. The puiyose of the funds are outlined in the notes to the financial statements. Statement of trustees, responsibilities The Trustees al'e responsible for preparing the Truste¢s' Report and the financial statements in accordance with applicable law and regulations. Company law and charity law i-equii'es the Ti'ustees to prepai'e financial stateinents for each financial year. Under that law the Trustees have elected to prepai'e tlie financial statemeiits in accoi'dance with applicable law ai)d United Kingdom Accounting Standai'ds (United Ilingdom Generally Accepted Accounting Pi'acti¢¢) including 'Accounting and Reporliiig by Charities.. Stateinent of Recommended Practice, (FRS 102 'The Financial Repoi'ting Stai)dai-d applicable in the UK and Republic of li-eland,). Undei. company law the Ti-ustees Inust not approve the financial statements unles5 they are Satisfied that tliey give a true and fair view of the slate of affairs of the company and of the profit or loss of the company for thal year. In prepai'ing these financial statenients, the Ti'ustees are I'equired to: select suitable accounting policies and then apply them consistently,. make judgements and estimates that are ieasonable and prudent. state whether applicable accounting standards and statements of I'ecoiT]mended practice have beei) followed subject to any departures disclosed and explained in the financial statements; and prepai'e the financial slaleinents on the going conceri) basis unless it is inappropriate to presunie that the charity will continue in business. Page 3
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Trustees, report for the year ended 30 September 2023 The Trustees al-e responsible for keeping adequate accounting i'ecords that are sufficient to show and ¢xplain the oinpany's transactions and disclose with i'easonable accuracy at any time Ihe financial position of the company and eiiable them to ensure that the financial stateinents comply wilh the Companies Act 2006 and with the Charities Act (Nl) 2008. They are also responsible for safeguai'ding the assets of the company and hence foi. taking reasonable steps for the pi'evention and detection of fraud and other ii'regularities. Statement of disclosui'e of information to auditors So far as each of the ti'ust¢es in office at the date of approval of these financial statements are aware: there is iio relevant audit information of which the company'5 auditoi's are unaware, and the trustees have taken all the steps that they ought lo have taken lo make themselves awai'e of any relevant audit infoimation aiid io eslablish that th¢ company's audito13 are aware of that information. Auditors Although the coinpany qualifies for audit exemptioii the ti'ustees i'equire an audit to be carried out. In accordance with Section 485 of the Companies Act 2006, a resolution proposing that McFarland Arnold & Co be i'eappoinled as auditoi's of the charity will be put to the Annual General Meeting. Special provisions relating to small companies This i'epoi't has been prepared in accoi'dance with the Statement of Recommended Practice: Accounting and Reporting by Chai'itie5 (FRS 102 'The Financial Reporting Standard applicable in tlie UK and R¢public of Ireland,) and in accordance with the special provisions of Part 15 of the Companies Act 2006 I'elating to small companies. Thi5 reporl was appi'oved by the Irustees on .Jo 202+ and signed on its behalf by Signature: Name (in blocli capitals): Trustee Page 4
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 2023 Opinion We have audited the financial statements of Sion Mills Buildings Presei'vation Trust for the year ended 30 Septeinber 2023 which Comprise the statement of financial activities, the balance sheet and notes to the financial statements, including a summary of significant accounting policies. The financial repoiting framewoi'k Ihat has been applied in their prepai'ation is applicable law and United Kingdoin Accoui)ling Standards (United Kingdom Gei)ei-ally Accepted Accounling Practice) including 'Accounting and Repoiting by Charities.. Statement of Recommended Pi-aclice, (Financial Repoi1ii)g Standard 102 'The Financial Reporting Standard applicable in the Ul< and Republic of Ii'eland,). In our opinion tl)e financial statements.. give a true and fair view of the state of the charitable company's affairs as at 30 September 2023 and of ihe incoming resources and application of resources, including its income and expenditiire, for the yeai. then ended,. have been propei'ly prepared in accoi'dance with United Kingdoin Generally Accepted Accounting Practice including 'Accounting and Reporting by Charities: Statement of Recommei)ded Pi-aclice, (Financial Reporting Standard 102 'The Financial Repoiting Standard applicable in the UK and Republic of Ireland')- have been pi'epai-ed in accordance wilh the I'equirem¢nts of the Companies Act 2006. Basis for opinlon We conducted our audit in accordance with Intei'national Standai'ds on Auditing (UK) (ISAS (UK)) and applicable law. Our i-esponsibililies under those standards are further described in the Auditor's responsibilities foi. Ihe audit of the financial statements section of our i-eport. We are independent of the chai'itable company in accoi'dance with th¢ ethical requii'emeiits that al'e I'elevant 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 thes¢ requirements. We believe that the audit evidence we have obiained is sufficient and appropriate to provide a basis for our opinion. Material uneertainty relating to going Concern We di'aw attention lo notes 16, 17 and 18 in the financial statements, which set out the disclosui'es regarding the revaluation of the workspace units, the potential sl)ortfall on the Stables and the liability for legal fees incuri'ed on the seltleinent of the case relating to the workspaoe units. These matters indicate that Inaterial uncertainty exists that casts significant doubt on the company's ability to continue as a going concern. Oui. opinion is not modified in respect of these matters. Other information The other infonnation comprises the information included in the annual report, other than the financial statenients and our auditor's report thereon. The trustees are responsible for the other infoiThation. Our opinion on the financial statements does not cover the othei- infoi'mation and, except to the extent otherwise explicitly stated in oiir report, we do not express any form of assurance Conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the othei. infoi'mation and, in doing so, considei. whether the other inforination is Inatei'ially inconsistent with the financial staten)ents or our knowledge obtained in the audit or otherwise appeal's to be materially misstated. If we identify such material inconsistencies oi. appai'ent material misstatements, we al'e I'equired to detei'inine whether there is a material misstatement in the financial statements or a Inaterial misstatement of the othei. information. If, based on the work we have perfoi'med, we conclude that thei'e 15 a material misstatement of this othei- informalion, we are i'equii'ed to repoit that fact. We have nothing to report in this I'egard. Page 5
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 2023 Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the woi'k und¢rtak¢n ii) the coui'se of the audit.. the infoi'mation given in the dii'ectors, I'¢port for the financial year for which the financial statements al'e prepared is consistent with the financial slatemenls. and the tl-U5tee's report has been prepared in accordance with applicable legal requirements. Malters on which we are required to report by exception In tl)e light of the knowledge and understanding of the chai'itable company and ils environment obtained in the course of the audit, w¢ have not idenlified material misstatements in th¢ ti'uste¢s' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:_ adequate accountiiig I'ecoi'ds have iiot been kept, or retui'ns adequate for our audit hav¢ not been received from branches not visited by us; or the financial statements are not in a81'eement with ihe accounting recoi'd5 and returns- or certain disclosui'es of truslees, remuneration specified by law al'e not made- oi. we have not received all the infoi'mation and explanations we require for our audit; or the trustees were not eiititled to prepare the financial statements in accoi-dance with the small companies regime and take advantage of th¢ sinall companies, exemption from the requirement to prepare a slrategic report. Responsibilities of the trustees As explained Inore fully in th¢ statement of trustees responsibilities (set out on page 3), the trustees are responsibl¢ foi. the pi'epai'ation of the financial slatements and for being satisfied that they give a true and fair view, and for such internal conti'ol as the trustees determine is necessary to ¢nable the prepai'ation of financial statements that al-e fi'e¢ from matei'ial misstateinent, whether due to fraud or ei'i'oi-. In preparing ihe financial statements, th¢ trustees al'e responsible for assessing the charitabl¢ company's ability to continue as a going concern, disclosing, as applicable, Inatters related to going concern and using the going concei'n basis of accounting unless the trustees either intend to liquidate the chai'itablc company or to c¢ase operations, oi. have no realistic alteriiative but to do so. Auditor's responsibilities for Ihe audit of the financial statements Our objectives al'e to obtain reasonable assurance about whether Ihe financial statements as a whole are free fi'om Inaterial Inisslatement, whetl)ei' due to fi'aud or eri'or, and to issue an auditoi s repoit that includes our opinion. Reasonable assurance is high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstateinent when il exists. Misstateinents Can arise fi'om fraud or errol. and are considered matei'ial if, individually or in the aggregate, they could i'easonably be expected to influence the ecoiiomic d¢cisions of usei's taken on the basis of these financial stateinenls. li'i'egularities, including fraud, are instances of non-conipliance with laws and regulations. We design procedur¢s in line with oui. i'esponsibilities, outlii)ed above, to detect Inatei'ial misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting ilT¢gularities, including fraud 15 detailed below.. 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 2023 n identifying and assessing i'isks of n)aterial misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we coiisidered the following.. the nature of the industiy and sector, control environment amd business perfoi'mance. results of oui. enquii'i¢s of manageinent about their own idenlification and assessment of the i-isks of irregularities. any matters we identified having obtained from managemeiit whether they were aware of any instances of non- compliance and whether they have knowledge of any actual, suspe¢t¢d or alleged fi'aud; and th¢ matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicatoi's of fraud. As a I'esult of these procedures, we identified the greatest potential for fraud in the areas in which management is required to exercise significant judgement. In comnion with all audits under ISAS (UK), we al'e also required to perfoi'm specific pi'ocedures to respond to lh¢ risk of management override. We also obtained an understanding of the legal and i'egulatoiy fi'amewoi'k that the charitable company operates in, focusing on provisions of those laws and regulations that had a direct effect on the detemiination of material amounts and disclosui'es in the financial statements. In addilion, we considered provisions of other laws and regulations that do not have a dii'ect effect on the financial statements but compliance witl) which may be fundamental to the chai'itable company's ability to operate or to avoid a mal¢rial penalty. These included data proteclion, employinent, environmenlal and health and safety regulations. As a result of pei'fonning the above, we identified Ihe potential for inanagement oveiTide of the controls as a key audit matter related to the potential risk of fraud. Our pi'ocedure5 to respond lo the risk5 identified included the following: reviewing the financial stateinent disclosures and testing to supporting documentation to assess compliance with provisions of rel¢vant law5 and regulations described as having a dii'ect effect on the financial stal¢ments' enquii'ing of management concei'ning actual and potential litigation and claiiT)S' perfoi'ining analytical pi'ocedures to identify any unusual or unexpected relationships that may indicate risks of material misslatement due to fi'aud. reading miiiutes of meetings of those charged with govei'nance; and in addressing the I'isk of fi'aud ihrough manag¢ment override of controls, testing the appropriateness of journal entries and other adjustinents; assessing whether the judgements made in making accounting estimates al'e indicative of a potential bias; and evaluating the business I'ationale of any significant Iransactions that are unusual or outside the noi'mal course of business. We also conimunicated i'elevant identified laws and regulations and potential fraud risks to all engagein¢nt team Inembers and remained alert to any indications of fi'aud or non-compliance with laws and regulations throughout the audit. A furtlier description of our responsibilities for the audit of the financial slalemenls is located on the Financial Reporting Council's website al www.frc.org.uk. This description foi'ms part of our audiloi s I'eport. We have undertakeii Ihe audit in accordance with the requirements of Auditii)g Pi'a¢li¢es Boai'd's {APB's) Ethical Stai)dards for AuditoiE; including APB Ethical Standai'ds - Provisions Available for Small Entities as stated below.. In common with many othei. businesses of the charitable company siz¢ and nature we as auditoi's assist the charitable company with the preparation of the financial statements. and We provide tax advice to the charitable rompany as and when required, and where necessary, will represent the charitable company at tax tribunals. Page 7
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 2023 Purpose of our audit work and to Ivhom we oive our responsibilities This report is made solely to the charitable coinpany's membei's, as a body, in accordance with the Companie5 Act 2006. Our audit work has been undertaken so that we might stale lo the charitable company's niemb¢rs those Inalters we are requii'ed to state to them in an auditor's report and foi. no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone othei- than the charity and the chai'ity's membei's as a body, for oui. audit woi'k, for Ihis report, or for the opinions we liave formed. Mrs Kate MeFarland (senior statutory allditor) For and on behalf of Mevarland Arnold & Co Chartered Accountants & Statutory Auditors Dated: McFarland Arnold & Co Chartered Accountants 8 Main Street Newtownstewart Omagh BT78 4AA Page 8
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 2023 Unresti'icted Restricted funds funds 2023 Total 2022 Total Notes Incoming resources Incoming resoui'ces from generating funds.. Grant income Other incoming resources 10,678 10,678 28,715 16.586 17,484 28,715 Total incoming resources 28,715 10,678 39,393 34,070 Resources expended Hei'itage Animation project Museum expenses Computer costs Rent Rates and water l-ates Electricity and gas Repairs and maintenance Bad debts Subscriptions Insurance Telephone Accountancy fees Audilors, remuneration Legal and professional fees Depreciation & impairment Revaluation of investm¢nt property CFI loan interest Bank Charges Sundry expenses 3,056 11,400 180 1,000 383 6,318 6,080 3,056 11,400 180 1,000 383 6,318 6,080 6,600 4,122 1,000 610 9,093 1,132 4,036 73 370 487 1,300 1,650 463 342 789 ,325 ,700 41,275 463 342 789 1,325 1,700 41.275 14 1,061,917 703 87 407 1,567 37 451 1,567 37 451 Total resources expended 76,377 76,377 ,093,601 Net incoming resources before transfers Ti'ansfers between funds (47,662) 10.689 10,678 (10,689) (36,984) (1,059,531) Net movement in funds for the year (36,973) ( 11) (36,984) (1,059,531) Total funds brought fonvard {62,598) 300,054 237,456 1,296,987 Total funds carried fonvard (99,571) 300,043 200,472 237,456 The notes on pages I I to 19 form an integral parl of these financial statements Page 9
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Balance Sheet as at 30 September 2023 2023 2022 Notes Fixed assets Tangible assets Investments 300,043 250 300,054 250 300,293 300,304 Current assets Debtoi's Cash at bank and in hand 10 2,872 10,984 2,022 3,908 13,856 5,930 Ci'editors: amouiits falliiig due ivithin one yeai. (66,164) (23,293) Net current liabilities (52,308) (17,363) Total assets less current liabilities Creditors: amounts falling due after more than one year 247,985 282,941 12 {47.513) (45,485) Net assets 200,472 237,456 Funds Restricted income funds Unresti'icled income funds 13 300,043 (99,571) 300,054 (62,598) Total funds 200,472 237,456 The company is registered as a private limited company in Northern Ireland under Registration Number Nl 036935, The financial statements al'e prepared in accordance with Stateinent of Recommended Pi'actice.. Accounting and Repoi'ting by Chai'ilies (FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,) and in accordance with the special pi'ovisions of Pai't 15 of the Compani¢s Act 2006 relaling to small enliti¢s. The financial statements were approved by the Board on lLJ,E 2DiLk and signed on ils behalf by Signature: Name (ID block capitals): bjllifc Trustee Trustee The notes oil pages I I to 19 form an integral part of these finaneial statements Page 10
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the finaneial statements for the year ended 30 September 2023 General information The conipany is a private limited Company, liinited by guai'anlee, whicl) was incorpoi'ated under the Companies (Northei-n Ireland) Order 1986 undei. Registi'atioii Number N1036935. It is also I'ecognised as a chai'ity by the HM Revenue & Custoins under Reference Number XN 33087. The company is a registered charity with the Cl)ai'ity Commission for Northeim Ireland sii)ce l O Febi'uary 2016 undei- registration number NIC103552. The address of the registered Ol¢e is 120A Melmount Road, Sion Mils, Co Tyrone, BT82 9ET. Statement of compliance Tliese finaiicial statements have been prepared in compliance with Accounting and Reporting by Charities: Statement of Recommended Pi'actice (FRS 102, 'The Fiiiancial Repoiting Standard applicable in the UK and the Republic of Ireland,) and in accoi'dance with the Companies Act 2006. Accounting policies Basis of preparatioii The financial statements al'e prepared undei. the historical cost convention and in accordance witl) Accounting and Reporting by Charities: Statenient of Recominended Practice (FRS 102, 'The Financial Repoiting Standard applicable in the UK and the Republic of Irelaiid,) The charity has taken advantage of the exemption in FRS 102 Section IA from the requirement to produce a cashflow statement because it is a small charity. The presentation currency of these financial statements is sterliiig. 3.2. Incoming resources All incoming i'esources are included in the statement of financial activities when the charity is entitled to Ihe income and ihe amouiit can be quantified with i'easonable accuracy. The following specific policies al'e applied to particular categories of income: Voluntary income is received by way of gi'ants, donations and gifts and is included in full in the statement of financial activities when receivable. Grants where entitlem¢nt is not conditional on the delivery of a specific perfonnance by the charity, are recogni5ed when the charity becomes unconditionally entitled to the grant. Donated services and facilities are included al the value to the charily wl)ere this can be quantified. The value of sei'vices provided by volunteers has not been included. Gifts donated for i'esale ai'¢ included as incoining resources within activities for generating funds when they are sold. Include here any personal guarantees given by direcloi's in respect of bori'owings by the reporting entity 3.3. Resources expended Expenditui-e is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to wl)ich it relates. Chai'itable expenditure coinprises those costs incuiTed by the charity in the delivery of its activities aiid sei'vices for its beneficiai'ies. It includes both costs that can be allocated directly to sucli activities and those costs of an indirect nature necessary to support them. Pagell
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial statements for the year ended 30 September 2023 3.4. Tangible fixed assets and depreciation Tangible fixed assets costing more than £500 are capilalised and included al their purchase costs, together with any incidental expenses of acquisitioii. Depreciation is pi'ovided at rates calculated to wi'it¢ off the cost less residual value of each asset over its expected useful life, as follows: Investment properties Fixtures, fittings and equipment Straight line over the life of the lease 200/0 I'educing balance No depreciation is chai'ged until th¢ assets are brought into use by the company. The carrying values of tangible fixed assets are i'eviewed annually foi- impaii'ment. if events oi. changes in circumstances indicat¢ the carrying value may not be i'ecovei-able. Fund accounting Unresti-icted funds I'elate to general funds which are available for use at the disci'etion of the Irustees in furthei'ance of the general objectives of the Chai'ity and which have not b¢en designated for other purposes. Restricted funds are funds which ar¢ to be used in accordance with specific restrictions imposed by donors or which have been raised by ihe charity foi. particular purposes. The cost of raising and administering such fund5 are charged against the specific fund. The aim and us¢ of ¢a¢h i'estt-irted fund is set out in the notes to tlie fii)ancial slatements. 3.6 Taxation The conipany is registered as a charity for tax pUoseS undei. reference number XN 33087. As a chai-ity, Sion Mills Buildings Pi'eservation Trust is exempi from tax on income and gains falling within Section 505 of tlie Taxes Act 1988 01. Section 256 of ihe Taxation of Chai'geable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have therefoi'e arisen for the company for the year ended 30 September 2023. Impairment A i'eview foi. indicatoi's of impairment is carried out at each I'eporting date, with the recoverable amount being estimated wliere such indicators exist. Whei'e Ihe carrying value exceeds the i-ecovei'able amount, the asset 15 impaired accordingly. Pi'ioi- ImpainentS al'e also I'eviewed for possible itversal at each I'eporting date. When it is not possible lo estimate the I'ecoverable ainount of an individual asset, an estimate is made of the recovei'able amount of tlie cash-genei'ating unit to which the asset belong5. The ca5h-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that al'e largely independent of ihe cash inflows fi'om other assets or groups of assets. Page 12
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial statements for the year ended 30 September 2023 Financial instruments A financial asset or a financi81 liability is recognised only when the company becomes a paity to the contractual provisions of the instrument. Basic financial inslruments are initially recognised at the ti'ansaclion price, unless Ihe arrangement constitutes a fiiiancing Iransaction, where it is recognised at the pi'esent value of the future payments discounted at a market rate of intei'est for a similar debt instruinent. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amoitised cost are reviewed for objective evidence of iinpairment at the eiid of each reporting date. If there is objective evidence of iinpairn)ent, an impairment loss is recognised in profit oi. loss iminediately. For all equity instruments I'egardless of significance, and other financial assets that are individually significant, these are assessed individually foi. impairment. Olhej. financial assets or either assessed iiidividually or grouped on the basis of similar credit risk chai-acteristics. Any reversals of impaii'ment are recognised in profit oi. loss iinmediately, to the extent Ihat the revei'sal does not result in a carrying amount of the financial asset that exceeds whal the carrying amount would hav¢ been had the impairment not previously been I'ecognised. Grant income Restrlcled funds 2023 2022 Deri'y City & Strabane District Counci Ulster Garden Villages 10,678 10,678 11,977 4,609 10.678 10,678 16,586 Other incoming resources Unrestrieted fuiids 2023 Total 2022 Total Sundi'y income Donatioiis Rental income- River Mourne Guides Rental Income- Hidden Pearl Rental Incom¢ - Sika by Niall 52 15,230 3,166 52 15,230 3,166 258 5,462 3,153 8,611 10,267 10,267 28,715 28,715 17,484 Page 13
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial statements for the year ended 30 September 2023 Net outgoing resources for the year 2023 2022 Net outgoing i'esources is stated after charging.. Depreciation and other ainounls wi'itten off tangible fixed assets Auditors, remuneration 14 1.650 1,700 Employees Number of employees The average monthly nuinbers of employe¢s (including the trustees) during the year. 2023 Number 2022 Number Auditors, remuneration 2023 2022 Audilors, remuneration audit of the financial statements 1,700 1,650 Page 14
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial statements for the year ended 30 September 2023 Fixtures, Investment fittings and property equipment Tangible fixed assets Total Cost or valuation At l October 2022 and At 30 Septeinber 2023 300,000 3,832 303,832 Depreciation At l Octobei. 2022 Charge for the year 3,778 3,778 At 30 September 2023 3,789 3,789 Net book values At 30 September 2023 At 30 September 2022 300,000 43 300,043 300,000 54 300,054 The investment property which is unoccupied and is now in a dilapidated state because of the ¢ii'cumstanc¢s set out iii Note 16, was revalued to fair value by an independent valuei. on I I September 2023 and impairment was recoi'ded in the financial statements for the yeai. ended 30 Septeinber 2022. Capital grants shown as reslricted funds which were previously being released in line witli depreciation policy over the 99 years teiTh of the lease are i)ow released in line with the i-evaluation of the investment propeity. 10. Debtors 2023 2022 Prepayments and acci'ued income 2,872 3,008 2,872 3,008 11. Creditors: amounts falling due iyithin one year 2023 2022 CFI Loan (see note 12) Other accruals aiid deferred income 360 65,804 ,068 22,225 66,164 23,293 Page 15
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial statements for the year ended 30 September 2023 12. Creditors: amounts falling due after more than one year 2023 2022 CFI Loan Loan fi-om Trustees 25,984 21,529 23,956 21,529 47,513 45,485 Loans R¢payable in one year or less, or on demand (Note I l ) Repayable between two and five years Repayable in five years or inoi'e 360 22,971 24,542 1,068 25,802 19,683 47,873 46,553 Due to financial difficulty, CFI (formerly UCIT) loan repayments previously had been deferred, however in 2017 the Ti'ust had made an agreeinent lo pay £140 pei. nionth to cover interest charged and a contribution lowai'ds loan repaynieiit. Repayinents to CFI ceased on 20 June 2022 aiid have not yet i'ecommenced. The loans from the Truste¢s will be repaid when the cashflows become availabl¢, but not within th¢ n¢xt tw¢lve months. 13. Analysis of net assets between funds Unrestricted Restricted funds fund5 Total fuJid5 Fund balances at 30 September 2023 as repr¢sent¢d by.. Tangible fixed assets Investment assets Cuii'ent assets Current liabililies Long-term liabilities 300,043 300,043 250 13,856 (66,164) (47,513) 250 13.856 (66,164) (47,513) (99,571) 300,043 200,472 Reslricled funds i'elate to grants receivable in respect of capital expenditui'e and grants receivable in advance for a specific pui'pose or for future I'unning costs of the company and ils activities. Page 16
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the fAnaneial statements for the year ended 30 September 2023 At At October 2022 Incoming Outgoing Transfers 30 September 2023 14. Unrestricted funds General fund (62,598) 28,715 (76,377) 10,689 (99,571) (62,598) 28,715 (76,377) 10,689 (99,571) Pllrpose of unrestricted funds Unrestricted funds relate to general funds which are available for use at the disci'etion of the trustees in furtherance of the general objectives of the chai'ity and which have not been designated for other purposes. 15. Restricted funds AÉ l October Ineoming Traiisfers At 30 September 2022 2023 Long leasehold property Derry City & Strabane District Council 300,054 (I i) (10,678) 300,043 10,678 300,054 10,678 (10,689) 300,043 Purpose of restricted funds Restricted funds are funds which are to be used in accordaiice with specifsc restrictions imposed by donors or whicli have been raised by the charity for pai1icular purposes. The cost of I'aising and administering such funds are charged against the specific fund. Restricted funds mainly I'elate to the costs of building restoration and purchasing equipment for the Ti'ust. A number of grants were received towai'ds the project and clauses are retlecled in the letlers of offer from the major funding bodies restricting the disposal of buildings and equipment. Grants have be¢n released in line with the revaluation 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 2023 16. Capital commitments In 2008, the Trust secui'ed a 99 year lease of the Workspace preinises fi'om Herdmai)s Holdings Limited. The Trust completed their woi'kspace units in 2010 however the units remain unoccupied. Herdinans Holdings Limited went inlo receivei'ship on 29 Julie 201 l and the lease was then taken ovei. by tlie piirchaser of the pi'opei'ly which has changed hands sevei'al times since. The Ti'ust ii)stigated legal pi'oceedings with the new owners regai'ding the lease obligations and the futui'e of the workspace UE]its. Following the grant of a repossession order dated 20 September 2016, the Ti'ust has laken possession of the woi'kspace units which are in a dilapidated slate. The Couit Order also pi'ovided for the Trust to seek enfoi'cement of its outstanding rent and restoration costs of the units however at a heal'ing on 3 Febi-uary 2020, the oi'iginal judgement was set aside with the judge stating that a Judginent in Default should not stand and that the defendant should have theii. case heai'd. The pandemic then Ineant that all matters wei'e delayed and in the meantime ownership of the pi'operty had changed again. This was tl)en fuiiher complicated by the death of Mrs Mai'garet Louglii'ey in Sepiembei. 2021 (one of the parlies lo the transaction). The late Mrs Loughrey was sole dii-ector of her company Rey Mill Ltd aiid her entire estate entei'ed pi'obate at tlie end of 2021. The Truslees are advised that probate has now been finalised and the legal tean) for the trustees have reached a settlement with tl)e late Mrs Loughrey's legal team which is to pass title of the property known as the Old Mill. to tl)e Trust, logether with £50,000 in lieu of outstanding rent. The Trust have a liability for legal fees in i'elation to this case of £41,275 plus VAT, which is shown as expenditui'e in ihis year. At the date of this I'eport the terms of the settlement have not been fulfill¢d therefoi'e no asset or debior has been included for this s¢t¢lement. In accoi'dance with FRS 102 Section 16 (FRS 102 'The Fiiiancial Reporting Standard applicable in the UK and Republic of li'¢land'), the workspace units have beeii I'evalued to fail. value as set oul in Not¢ 9 to the financial statements. The trustees anticipate that funding can be secui'ed to i-estore the woi'kspace units into useable premis¢s. The Trust and HEARTH wei'e in paitiiership for the restoi'ation of the Stables. Part funding was obtained for tliis project from the Departinent of Agriculture and Rural Developinent (DARD) undei. ARC Rural Development Grant, thei'efore DARD have registered a chai-ge over the pi'opeity with Compaiiies House. The Trust secured a 25 year lease from HEARTH Revolving Fund commencing on l Decembei. 2013 for the Stables at 120A Melmount Road, Sion Mills al a l'ent of £1,000 per annuin. At 30 September 2023, commitments undei. this lease remain at £16,000. The pi'oject costs are still being finalised by HEARTH and the Trust has a liability for any shoitfall but this has not yet been quantified. The initial amount invoiced to the Ti'ust of £9,333 n¢t is included in creditoi's undei. othei. accruals and no further amounts have been provided for. Page 18
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Iyotes to the financial statements for the year ended 30 September 2023 17. Material uncertainty relating to going concern Disclosures relating to the senlement of the case I'egai'diiig the workspace units are set out in Note 16. The write off of the debtoi. for the rent of the workspace units in the year ended 30 Sepiembei. 2019, previously ii)cluded in the financial statements at an amount of £94,839, together witli Ihe i-evaluation of the investment propei'ty it) the year ended 30 September 2022 and Ihe liability for legal fees leaves the Trust with negative I'eserves on unreslricted funds. The Balance She¢t i-emains positive and the trustees believe Iliat, with tl)e continued support of their main creditors (Mccay Legal and CFI forinerly UCIT), the ti'ustees and funders (HEARTH) that the ti'ust will be able to meel its obligations foi. the foi'eseeable future. The Trustees anticipate that funding can be secured to restore ihe workspace units into useable premises. The ti'ustees al'e awai'e that tl)e lack of free I'eserves, together with the econoinic backdrop, the aftei'math of the coronavirus pandemic and the cost of livii)g ci'isis, will provide a challenging environment in the year to coine. The ti'ustees still consider that it is appi-opi'iate for the financial statements to be prepared on a going concern basis. 18. Transactions with trustees The trustees attend Ineetings and cany out the business of the company on a voluntary basis. During the yeai. the Irust purchased goods and services from Irustees and theii. close family membei's totalling £3,350 (2022 - £6,600). Creditoi's, amounts falling due after mol'e than one year, includes loans from foul. trustees lotalling £21,529 (2022- £21,529), to be repaid when the Company has sufficient funds to do so. 19. Company limited by guarantee Sion Mills Buildiiigs Presei'vation Trust is a company liinited by guai'antee and accordii)gly does not have a share capital. Every inember of the company undertakes to contribute such aniount as may be required nol exceeding £1 lo the assets of the charitabl¢ coinpany in the event of its being wound up while he or she is a member, or withii) one yeai. after lie oi. she ceases to be a Inember. 20. Charity Commission for Northern Ireland Sion Mills Buildings Pi'esei'valion Ti'ust is a regislered charity wilh the Chai'ity Coinmission foi. Noithern Ireland since 10 Februai'y 2016, under registi'ation number NIC103552. Page 19