Sion Mills Buildings Preservation Trust (A company limited by guarantee) Trustees, report and financial statements for the year ended 30 September 2024 Registration number: N1036935 Northern Ireland Charity number: NIC103552 McFarland Arnold & Co Chartered Accountants
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Contenls for the year ended 30 September 2024 Page Legal and administrative infoiination Trustees, report Independent examiners, report Slatement of financial activities Balance Sheet Notes to the financial statements 9-17
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Legal and administrative information for the year ended 30 September 2024 Legal status The company is a private liinited company) limited by guarantee, which was incorporated under the Companies (Northern Ireland) Order 1986 undei. Registration Number N1036935. It is also recognised as a chai'ity by the HM Revenue & Customs under Ref¢i'¢nce Number XN 33087. The company is a i'egislered charity with th¢ Charity Commission for Northern Ii'eland since 10 February 2016 under registration number NIC103552. Registration number N1036935 Business address 120A Melmount Road Sion Mills Co Tyrone BT82 9ET Secretary Mr Graham Robinson (resigned 22 May 2024) Mr Francis Cassidy (appointed 22 May 2024) Trustees Mr Francis Cassidy Mr Nigel Collins Mrs Celia Ferguson Canon William George Irwin Dr Kieran Kennedy (appointed 22 May 2024. resigned 9 April 2025) Ms Rebecca Kennedy {appointed 27 June 2024. I'esigned 9 April 2025) Ms Amie Mccay (appointed 27 June 2024. resigned 9 April 2025) Mr Eamon Mccay (appointed 27 June 2024. resigned 9 April 2025) Ms Judith McGaffin (appointed 22 May 2024. resigned 8 April 2025) Mr Graham Robinson (resigned 22 May 2024) Mr Andrew Sheen Ms Judith Walker (appointed 22 May 2024) Mr AndiEw White Accountants McFarland Arnold & Co 8 Main Street Newtownstewart Oinagh Co Tyrone BT78 4AA Bankers Bank of Ireland 25 Campsie Road Oinagh Co Tyrone BT79 OAE SolAeitors Mccay Legal l John Wesley Street Stt"abane Co Tyrone BT82 8RJ Page I
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Trustees, report for the year ended 30 September 2024 The trustees present th¢ii' report and Ihe financial statemenls for the year ended 30 September 2024. Directors otyicers of the company, known as dii'ectors for the purpos¢ of company law and trustees for the purpose of charity law, who s¢rved during th¢ yeai. and up to the date of this I'epoit are set out on page l of the financial statements. Members of the charitable company guarantee to contribute an amount not exceeding £1 to the assets of the charitable company in the event of winding up. Charitable objects The principal activities of the chai'itable company are to preserve, protect and improve buildings or structures of particular beauty or of histoi'ic, environmental, architectural, industrial, constructional merit oi. interest in the Sion Mills ai'ea for the public benefit and to restore, renovate, and conserve gardens, pai'kland, landscapes and estates directly related to such buildings or structures, and to stimulate and educate their interest therein. Sion Mills Buildings Pi'eservation Ti'ust is a registei'ed charity with Ihe Charity Conimission for Northern Ireland since l O Februaiy 2016. undei. registration number NIC103552. Organisational structure The day to day management of the charitable company is carried out and overseen by the Irustees on a voluntary basis. The trustee5 meet r¢gularly 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 ti'ustee and at least five and not more than twelve other individuals. One third of the trustees arc requii'ed lo i'etii'e each year at the Annual Gen¢i'al Meeting. Retiring ti'ustees are eligible for i'e-election. Review of a¢tivities and achievements During the year the Ti'ust availed of gi'ants from Deny City and Sirabane Districl Council in relation to The Heritage Animation and Visitor Servicing Fund which covered digilal Coordinatoi. cosls and museum costs. The Trust has a lease for the operation of Sion Stables froin HEARTH. The reslaurant, shop and museumleducation cenlre continued to operate throughout the full year. The project costs for the Stables are still being finalised by HEARTH and the Trust has a liability for any shortfall but this has not yet been quantified. The initial amount invoiced to ihe Trust of £9,333 net, in relation lo this is included in creditors under other accruals and no furthei. amounts have been provided for. Page 2
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Trustees, report for the year ended 30 September 2024 In 2008, the Trust secured a 99 year lease of the Workspace premises from Herdmans Holdings Limited. Tlie Trust completed their workspace units in 201 O howevei. the units i'emain unoccupied. Herdinans Holdings Liinited went into receivership on 29 June 2011 and the lease was then taken over by Ihe purchaser of the property which has changed hands several times since. The Trust instigated legal proceedings with the new owners regarding the lease obligations and the future of the woi'kspace units. Following the grant of a repossession order dated 20 September 2016, the Trust has taken possession of th¢ workspace units which ai'¢ in a dilapidated state. The Court Order also provided for the Trust to seek enforcement of its outstanding rent and restoration costs of the unils however at a hearing on 3 February 2020, Ihe original judgeinent was set aside wilh the judge stating that a Judgment in Default should not stand and that the defendant should have their case heard. The pandemic then meant that all matters were delayed and in the meantime ownership of the property had changed again. This was then further complicated by the death of Mrs Margaret Loughrey in September 2021 (one of the parties to the transaction). The late Mrs Loughrey was sole director of her company Rey Mill Ltd and her entii'e estate enter¢d probate at th¢ end of 2021. The Trustees are advised that probate has now been finalised and the legal team for the trustees have reached a settlement wtth lh¢ late Mrs Loughrey's legal team which is to pass title of the property known as the Old Mill, to the Trust, together wilh £50,000 in lieu of outstanding rent. The Trust have a liability for legal fees in relation to this case of £41,275 plus VAT, which has been included within creditors.. amounts falling due within one year. At the date of this report the terms of tlie settlement have not been fulfilled therefore no asset or debtor has been included for this settlement. In accordance with FRS 102 Section 16 (FRS 102 'The Financial Reporting Standard applicable in Ihe UK and Republic of Ir¢land'), Ihe workspace units are revalued to fair value as set out in the notes to ihe financial statements. The trustees are aware that the lack of free reserv¢s, together with the economic backdrop) the aftermath of the coronavirns pandemic and the cost of living crisis, will provide a challenging environment in the year to come. Reserves The Statem¢nt of Financial Activities on page 6 of the financial statements sets out the results for th¢ year. The purpose of the funds are outlined in the notes to the financial statements. Statement of trustees, responsibilities The Trustees are responsible for prepai'ing the Trusl¢¢s' Report and the financial statemenls in accordance with applicable law and regulations. Company law and charity law requires the Trustees to prepare financial stateinents for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accouiiting Standards (United Kingdom Generally Accepted Accounting Practice) includtng 'Accounting and Repoiting by Charities.. Statement of Recommended Practice, (FRS 102 'The Financial Repoiting Standard applicable in the UK and Republic of Ireland,). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affaii's of the company and of the profit or loss of the company for that year. In prepai'ing these financial stateinents, the Ti'ustees are required to.. select suitable accounting policies and then apply them consistently. make judgements and estimates that are reasonable and prudent. state wh¢thei' applicable accounting standards and statements of recommended practice have been followed subject to any depaitui'es disclosed and explaii)ed in the financial statements. and prepai'e the financial statement5 on the going concern basis unless it is inappropriate to pi'esume 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 2024 The Trustees are responsible for keeping adequate accounting I'ecords that are sufficient lo show and explain the company's transactions and disclose with reasoi)able accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006 and with the Charities Act (Nl) 2008. They are also responsible for safeguarding the assets of the company aiid hence for taking reasonable steps for the prevention and detection of fraud and other irj'egularities. Statement of disclosure of information to accountants So far as each of the trustees in office at the date of approval of these financial statements are aware: there is no relevanl accounting infonnation of which the company's accountants are unaware, and the ti'ustees have taken all the steps that they ought to have taken to make themselves aware of any relevant accounting informalion and to establish that the company's accountants are aware of that inforniation. Special provisions relating to small companies This I'eport has been prepared in accoydance with the Statement of Recommended Practice: Accounting and Reporting by Chai'ities (FRS 102 'Th¢ Financial Reporting Standai'd applicable in the UK and Republic of Ireland,) and in accordanc¢ with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. This report was approved by the trustees on I s T. and signed on its behalf by Signature: Name (in block capitals): Trustee Page 4
Sion Ivlills Buildings Preservation Trust (A Company limited by guarantee) Independent examiner's report on the unaudited financial statements to the trustees of Sion Mills Buildings Preservation Trust for the year ended 30 September 2024 We repoit on the financial staten)ents of Sion Mills Buildings Preservation Trust for the year ended 30 September 2024 which are set out on pages I to 17. Respeclive responsibilities of trustees and examiner As described in the statement of trustees, i'esponsibilities the company's trustees (who also act as directors for lh¢ charitable activities of Sion Mills Buildings Pi'eservation Trust) are i-esponsible for the preparalion of the financial statements in accordance with the Companies Act 2006 and with the Charities Act (Northern Ii'eland) 2008. It is our responsibility to:_ examin¢ the financial statements under secti01165 of ihe Charities Act follow the procedures laid down in the general Directions given by the Commission under section 65(9)(b) of ihe Charities Act state whether particular matters have come to our attenlion. Basis of independent examiner's report We have examined your chai'ity financial statements as required under section 65 of the Charities Act and our examination was cari'ied out in accordance with the general Directions given by the Charity Commission foi. Northern Rreland under section 65(9}(b) of the Charities Act. Our examination included a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also included consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as Charity trustees concerning any such matters. Our role is to state whether any matei'ial matters have come to our attention giving us cause to believe.. l. That accounttng records were not kept in accordance with section 63 of the Chai'ities Act 2. That the financial statements do not accord with those accounting records 3. That ihe financial statements do not comply with the accounting I'equirements of the Charities Act 4. That there is further information n¢¢ded for a propel. understanding of the financial statem¢nts to be r¢ached. Independent examiner's statement We have completed our examination and have no concerns in respect of the malters (l) to {4) listed above and, in connection with following the Directions of the Charity Commission for Northern Ireland, we have found no matters that require drawing to your attention. LdkQ Chartered Aceountants Date: l McFarland Arnold & Co Chartered Accountants 8 Main Street Neivtownstewart Omagh BT78 4AA Page 5
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 2024 Unrestrieted Restricted funds funds 2024 Total 2023 Total NoÉ¢s Incoming resources Incoming resource5 from generating funds.. Grant incoine oihei. incoming resources 5,210 5,210 20,245 10,678 28,715 20,245 Total incoming resources 20,245 5,210 25,455 39,393 Resources expended Hei'ilage Animation project Museum expenses Computer costs Rent Rates and water rates Eleclricity and gas RepaiiB and maintenance Subs¢i'iption5 Insurance Telephone Accounlancy fees Auditors, iemuneration Legal and professional fees Deprecialion & impairinent CFI loan interest Interest on overdue taxation Bank charges Sundry expenses 2,450 960 180 1,000 763 10,168 3,511 313 342 890 2,430 2,450 960 180 1,000 763 10,168 3,511 313 342 890 2,430 3,056 11,400 180 1,000 383 6,318 6,080 463 342 789 1,325 1,700 41,275 1,992 1,992 1,567 96 550 96 550 37 451 Total resources expended 25,659 25,659 76,377 Net incoming resources before transfers Transfei's between funds (5,414) 305,219 5,210 (305,219) (204) (36,984) Net movement in funds for the year 299,805 (300,009) (204) (36,984) Total funds brought forward (99,571) 300,043 200,472 237,456 Total funds carried fonvard 200,234 34 200,268 200,472 The notes on pages 9 to 17 form an inlegral part of these financial stalements Page 6
Sion Mills Buildings Preservation Trust (A colnpany limited by guarantee) Balance Sheet as at 30 September 2024 2024 2023 Notes Fixed assels Tangible assets Investments 300,034 250 300,043 250 300,284 300,293 Current assets Debtors Cash at bank and in hand 6,638 6,086 2,872 10.984 12,724 13,856 Creditors: amounts falling due within one year 10 (62,905) (66,164) Net current liabilitRes (50,181) (52,308) Total assets less current liabilities Creditors: amounts falling due after more than one year 250,103 247,985 (49,835) (47,513) Net assets 200,268 200,472 Funds Restricted income fvnds Unrestricted income funds 12 34 200,234 300,043 (99,571) Total funds 200,268 200.472 The company is registered as a private limited company in Northern Ireland undei. Registration Number Nl 036935. The trustees statements i'equired by Article 257B(4) are shown on the following page which fornis part of this Balance Sheet. The notes on pages 9 to 17 form an integral part of these finaneial statements Page 7
Sion Mills Buildings Preservation Trust (A eompany limited by guarantee) Balance Sheet (continued) Trustees, statements required by Section 475 (2) and (3) for the year ended 30 September 2024 In approving these financial statements as trustees of the company we hereby confirm.. (a} that for the year stated above the company was entitled to the exempiion conferred by Section 477 of the Companies Act 2006 ' (b) that no notice has been deposited at the registei'ed office of the company pursuant to Section 476 of the Companies Act 2006 requesting that an audit be conducted for the year ended 30 Sepiemb¢r 2024 and (c) that we acknowledge our responsibilities for: (l ) ensuring that the company keeps accounting recoi'ds which comply with Section 386 of the Companies Act 2006, and (2) preparing financial statements which give a true and fair view of the state of affaii's of the company as at the end of the financial yeai. and of its surplus oi. deficit for the year then ended in accordance with the i'equirements of Section 393 of the Companies Act 2006 and which othei'wise comply with the provisions of the Companies Act 2006 relating to financial statements, so fai. as applicable to the charitable company. These finaiicial statements are prepared in accordance with the Stateinent of Recommended Practice.. Accounting and Reporting by Charities (FRS 102 'Th¢ Financial Repoiting Slandard applicable in the UK and Republic of Ireland,) and in accordance with the special provisions of Pait 15 of the Companies Act 2006 applicable to companies subject to the small companies regime. The financial statements were approved by the Board on i? and signed on its behalf by Signature: Name (in block capitals): Trustee Trustee The notes on pages 9 to 17 form an integral part of these fiiianeial statemenls Page 8
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial statements for the year ended 30 September 2024 General information The company is a private limited Company, limited by guai'antee, which was incorporated under the Companies (Northei'n Ireland) Order 1986 undei- Registration Number N1036935. It is also i'ecognised as a charity by the HM Revenue & Custom5 under Reference Number XN 33087. The company is a registered charity with the Charity Commission for Northern Ir¢land since 10 Februai'y 2016 under r¢gisti'ation number NIC103552. The address of the registered office is 120A Melmount Road, Sion Mils, Co Tyrone, BT82 9ET. Statement of compliance These financial statements have been prepared in complianre with Accounting and Reporting by Charities: Statement 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 statements are prepared under the histoi'ical cost convention and in accordance with Accounting and Reporting 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 produce a cashflow statement because it is a small charity. The presentation currency of these financial slalements is sterling. 3.2. Incoming resourees All incoming resources are included in the statement of financial activities when the charity is enlitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies ar¢ applied to particular ¢ategoi-ies of income: Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable. Grants where entitlement is not conditional on the delivery of a specific perforniance by the charity, ar¢ recognised when the charity becomes unconditionally entitled to the grant. Donated services and facilities al'e included at the value to ihe charity where this can be quantified. The value of sei'vices provided by volunteers has not been included. Gifts donated for resale are included as incoming resources within activities for generating funds when they are sold. 3.3. Resoui'ces expended Expenditui-e is I'ecognised 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 which it relales. Charitable expenditure compi'ises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated dii'ectly to such activities and those costs of an indirect natui-e necessary to support them. Page 9
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial statements for the year ended 30 September 2024 3.4. Tangible fixed assets and depreciation Tangible fixed assets cosling more tlian £500 are capilalised and included at their purchase costs, together with any incidental expenses of acquisition. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows: Fixtures, fittiiigs and equipment 200/0 reducing balance No depreciation is charged until the assets are brought into use by the company. The carrying values of tangible fixed assets are r¢viewed annually for impairment, if events or changes in circumstanc¢s indicate the can'ying value may not be recovei'able. 3.5. Fund accounting Unrestricted funds relate to general funds which are available for use at the discretion of the truslees in furtherance of Ihe general objectives of the charity and which have not been designated for other purposes. 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 paiticular purposes. The cost of raising and administering such funds are charged againsi ihe specific nd. Tlie aim and use of each restri¢t¢d fund is set out in the notes to the financial statements. 3.6 Taxation The company is registered as a charity for tax purposes under reference nuinber XN 33087. As a cl)arity. Sion Mills Buildiiigs Preservation Trust is exempt from tax on income and gains falling wiihin Section 505 of the Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to ihe extent that these al'e applied to ils charitable obj¢¢ts. No lax charges have therefoi'e arisen for the company for the year ended 30 September 2024. Impairment A review for indicators of impairment is can'ied out at each reporting date, with the i'ecoverable amount being eslimated whei'e such indicators exist. Where the canying value exceeds the i'ecoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each i-epoiting date. When it is not possible to estiinate the i'ecoverable amount of an individual asset, an estimate is made of ihe recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independ¢nt of the cash inflows from othei. ass¢ts or gi'oups of assets. Page 10
Sion Mills Buildings Preservation Trust (A conipany limited by guarantee) Notes to the financial statements for the year ended 30 September 2024 Financial instruments A financial assel or a financial liability is recognised only wl)en the company become5 a party lo the contractual provisions of the instrument. Basic financial instruments are initially recognised at the ti'ansaction price, unless the arrangement constitute5 a financing transaction, where it is recognised at the present value of the future payments discounted at a Inarket rate of interest for a similai. debt instt-ltment. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective ¢vid¢nce of impairnient at the end of each I'eporting date. If there is objeclive evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments I'¢gai'dless of significance, and other financial assets that are individually significant, these are assessed individually for impaiment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in pi'ofit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amouiit would have been had the impainnent nol pi'¢viously been i'ecognised. Crant income Restricted funds 2024 2023 Derry City & Strabane District Council 5,210 5,210 10,678 5,210 5,210 10,678 Other incoming resources Unrestricted funds 2024 Total 2023 Total Sundry income Donations Rental income- River Mourne Guides Rental Income - Stka by Niall Rental Income - Maiy D's Restaui'anls Ltd 175 403 3,200 15,467 1,000 175 403 3,200 15,467 1,000 52 15,230 3,166 10,267 20,245 20,245 28,715 Pagell
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial statements for the year ended 30 September 2024 Net outgoing resources for the year 2024 2023 Nel outgoing resources is staled after charging.. Depreciation and other amounts written off iangible fixed assets Auditors, remunei'ation 1,700 Employees Number of employees The average monthly numbers of employees (including the ti'uste¢s) during the year. 2024 Number 2023 Number 12 Page 12
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial statements for the year ended 30 September 2024 Fixture5, Investment fittings and property equipment Tangible fixed assets Total Cost or valuation At l Octobei. 2023 and At 30 September 2024 300,000 3,832 303,832 Depreciation At l October 2023 Charge for the year 3,789 3,789 At 30 September 2024 3.798 3,798 Net book values At 30 September 2024 300,000 34 300,034 At 30 September 2023 300,000 43 300,043 The investment property which is unoccupied and is now in a dilapidated state becaus¢ of the circumstanres set out in Note 15, was revalued to fair value by an independent valuer on 13 January 2025. Capital grants in relation to the investment properly, shown as I'estricted funds, which were previously being I'eleased in line with depreciation policy over the 99 years term of the lease have now been released in full in the year ended 30 September 2024. Debtors 2024 2023 Prepayments and accrued incomc 6,638 2,872 6,638 2,872 10. Creditors: amounts falling due within one year 2024 2023 CFI Loan (see note I l ) Other accruals and deferred income 360 65,804 62,905 62,905 66,164 Page 13
Slon Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial statements for the year ended 30 September 2024 11, Creditors: amounts falling due after more than one year 2024 2023 CFI Loan Loan from Trustees 28.306 21,529 25,984 21,529 49,835 47,513 Loans Repayable in one year or less, or on demand (Note 10) Repayabl¢ between two and five years Repayable in five years or more 360 22,971 24,542 21,529 28,306 49,835 47,873 Due to financial difficulty, CFI (fomierly UCIT) loan repaymeiits pi'eviously had been deferred, however in 2017 the Trust had made an agreement to pay £140 per month lo cover interest charged and a contribution towards loan repaymenl. Repayments to CFI ceased on 20 June 2022 and have not yet recommei)ced. The loans from the Trustees will be repaid when the cashflows become available, but not within th¢ next twelve months. 12, Analysis of net assets between funds Unrestricted Restricted funds funds Total funds Fund balances at 30 September 2024 as represented by.. Tangible fixed assets Investment assets Cun'ent assets Cun'ent liabililies Long-term liabilities 300,000 250 12,724 (62,905) (49,835) 34 300,034 250 12,724 (62,905) (49,835) 200,234 34 200,268 Restricted funds relate to grants receivable in r¢spect of capital expenditure and granls receivable in advance for a specific purpose or for future running cost5 of the company and its activities. Page 14
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the fjnancial statements for the year ended 30 September 2024 At At l October 2023 Incoming Outgoing Transfers 30 September 2024 13, Unrestricted funds General fund (99,571) 20,245 (25,659) 305,219 200,234 (99,571) 20,245 (25,659) 305.219 200,234 Purpose of unrestricted fund5 Unrestricted funds relatc to general funds which are available for use at the discretion of the truste¢s in furtherance of the general objectives of the chai'ity and which have not been designated for othei. puiyoses. 14. Restricted funds At l October 2023 Incoming Transfers At 30 September 2024 Long leasehold property Derry City & Slrabane District Council 300,043 (300,009) (5,210) 34 5,210 300,043 5,210 (305,219) 34 Purpose of restricted funds Restricted funds are funds which are to be used in accordance with specific reslrictions imposed by donors or which have been raised by the charity for particular purpos¢s. The cost of raising and adminislering such funds are charged against the specific fund. Restricted funds mainly relate to the costs of building restoration and purchasing equipment for the TSt. A number of grants were received towards the project aiid clauses are reflected in the letters of offer froin Ihe major funding bodies restricting the disposal of buildings and equipment. Grants in relation to the inveslment propelty have been released in full in the year ended 30 September 2024. Page 15
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial statements for the year ended 30 September 2024 15. Capital commitments In 2008, Ihe Trust secured a 99 year lease of the Workspace premises from Herdmans Holdings Limit¢d. The Trust Completed their workspace units in 2010 however Éhe iinits remain unoccupied. Herdmans Holdings Limited went into receivership on 29 Jun¢ 2011 and the lease was Ihen taken over by the pui'chasei. of the property which has changed hands several tiines since. The Ti'ust instigated legal proceedings with the new owners I'egarding the lease obligations and the future of the workspace units. Following ihe grant of a repossession order dated 20 September 2016, the Ti'ust has taken possession of the workspace units which are in a dilapidated state. The Couit Order also provided foi. the Trust to seek enforcement of its outstanding rent and restoration costs of the units howevei. at a hearing on 3 February 2020, the original judgement was set aside wilh the judge stating that a Judgment in Default should not stand and that the defendant should have their case heard. The pandemic then meant that all matters were delayed and in the Ineantime ownership of the propeity had changed again. This was then further complicated by Ihe death of Mrs Margaret Loughrey in Septembei. 2021 (one of the paities to the transaction). The late Mrs Loughi'ey was sole dii'ector of her company Rey Mill Ltd and her entire estate entered probate at the end of 2021. The Trustees are advised that probate has now been finalised and the legal team for the trustees have reached a settlement with the late Mrs Loughrey's legal ieam which is to pass title of the property kiiown as the Old Mill, to the Tivst, together with £50,000 in lieu of outslanding rent. The Ti'ust have a liability for legal fees in relation to this case of £41,275 plus V A T, which is included within creditors.. amounls due within one yeai.. At the date of this repoit the terms of the setilem¢nt have not been fulfilled therefoi'e no asset or debtor has been included for this settlement. In accordance with FRS 102 Section 16 (FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ir¢land'), the woi'kspace units have been revalued to fair value as sel out in Note 8 to the financial statements. The trustees anticipate that funding can be Secured io restore the workspace units into useable premises. The Trust and HEARTH were in parlnei'ship for the restoration of Ihe Stables. Pait funding was obtained for this project from the Departinent of Agi'iculture and Rural Developmenl (DARD) under ARC Rural Development Gi'ant, Ihei'efore DARD have registered a charge over the property with Companies House. The Trust secured a 25 year lease from HEARTH Revolving Fund commencing on l December 2013 for the Stables at 120A Melmount Road, Sion Mills at a rent of £1,000 per annum. At 30 September 2024, commilments under this lease remain at £16,000. The project costs are still being finalised by HEARTH and the Trust has a liability foi. any shoitfall bul this has not yet been quantified. The initial amount invoiced to the Trust of £9,333 net is included in creditoi's under other accruals and no further ainounts have been pi'ovided foi.. Page 16
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Notes to the financial staten)ents for the year ended 30 September 2024 16. Material uncertainty relating to going concern Disclosures relating to the settlemeiit of the case regarding the workspace units are sel oul in Note 15. The write off of the debtor for the rent of the workspace units in the year ended 30 September 2019, previously included in the financial statements at an amount of £94,839, together wilh the revaluation of the investment pi'op¢rty in the year ended 30 September 2022 and the liability foi. legal fees leaves the Trust with iiegative reserves on unresti'icted funds. The Balance Sheet I'emains positive and the trustees believe that, with the Continued suppoit of their main ci'editors (Mccay Legal and CFI form¢i-ly UCIT), the ti'ustees and funders (HEARTH) that the trust will be able lo meet its obligations for Ihe foreseeable futui'e. The Trustees anticipate that funding can be secured to restore the workspace units into useable premises. The trustees are aware that the lack of free reserves, together with the economic backdrop, the aftermath of the coronavirus pandemic and the cost of living crisis, will provide a challenging environment in the year to come. The trustees still consider tl)at it is appropriate for the financial stat¢ments to be prepared on a going concern basis. 17. TransactRons with trustees The trustees attend Ineetings and caii'y out the business of ihc company on a voluntary basis. During the year the ti'ust purchased goods and services from trustees and their clos¢ fainily members totalling £3,410 (2023 - £3,350). Creditors, amounts falling due after more than one year, includes loan5 from four truste¢s totalling £21,529 (2023 £21,529), to be repaid when the compaiiy has sufficient funds to do so. 18. 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 undertakes to contribut¢ such amount as may b¢ required not exceeding £ I to the assets of the charilable company in tlie event of ils being wound up while he or she is a niember, or within one year after he or she ceases to be a member. 19. Charity Commission for Northern Ireland Sion Mills Buildings Preservation Ti'ust is a registered charity with the Charity Colnmission for Northern Ireland since l O February 2016, under registration number NIC103552. Page 17