THE CITY OF WINCHESTER TRUST LIMITED
REPORT OF THE COUNCIL AND FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 MARCH 2003
Extracts from the Trust’s Accounts
for the year 2002 - 2003
Annual Report of the Council
The Trust continues to develop those projects and activities which support its aims while also seeking to improve its administrative performance. This year we have distinguished between projects and activities while recognising that there may be some overlap. The purpose of this separation is to enable the Trust to examine on a regular basis the performance of particular projects and activities, and to assess the allocation of resources to them. Each project has a specific budgeted sum for the year.
Projects
Listed during the year to 31st March 2003:
- Policy Group - Friarsgate Development - response to WCC draft Brief;
- Policy Group - PPG3 - preparing the Trust’s response to its implementation;
- Winchester District Local Plan - monitoring progress, contributing to shopping survey and registering objections;
- Neighbourhood Studies - preparation for publication;
- Rationalising membership records;
- Roger Brown Model - finding a home;
- Hockley Viaduct - obtain listing;
- Preparation of pamphlet on West Hill Cemetery; Preparation for the publication of Andrew Rutter's book on Winchester;
- In partnership with the City Council, obtaining consent and grants for restoration of railings in Eastgate Street.
Some of these projects are being progressed with other bodies and therefore the final cost and completion date are not always controllable by the Trust. We are very careful to ensure that we are not committed to anything beyond our capacity.
The two projects of major significance for the Trust are the development of the Friarsgate/Broadway site and the impact of PPG3 on the City and its suburbs. Apart from expenditure on the shopping survey, the costs of these two projects to date have been absorbed in the general administration of the Trust. However, it is anticipated that further costs will be incurred in promoting this work and seeking support for our comments on PPG3.
Activities
Listed during the year to March 31st 2003:
- Development Control - weekly monitoring of planning applications in the City area;
- Summer walks;
- Publicity Group - responsible for press releases and monitoring of local press, our website, publications, exhibitions and the sale of books and cards;
- Reference Collection - updating;
- Members’ meetings;
- Reciprocal visits with other organisations.
Membership
The major review of the membership continued and should be completed during the next financial year. A great deal of effort has been put into trying to establish personal contact with those members whose subscription records were inaccurate. This was mainly caused by their not responding to the increase in membership fees. Some were not paying the correct sum and a few were paying too much. As a result of the exercise many members have brought their subscriptions up to date but those who still failed to respond have been put into a category of Suspended Membership.
The overhaul has resulted in a reduction of sixty-five members. Most of those who left were members who had not paid for some time and whose lapsed membership was shown up by the review. A number of members generously continue to make payments which are in addition to their subscriptions. This year thirty-two new members have joined the Trust. Within this financial year we show two years of Gift Aid recovery. The extra time spent in establishing this valuable addition to our revenue has led, in the short term, to an increase in salary payments for the overtime required. A drive to increase membership is planned for the future.
Investments
Listed lnvestments
Thanks to the wise advice of the Trust’s financial advisors, the Trust's listed investments of stocks, shares and bonds have largely withstood the falling prices on the Stock Exchange since 2000. As this fall has spread into all investment sectors, the valuation of the Trust’s listed investments has dropped by £21,300. The loss is only on paper as the Trust has not sold any investment as it continues to maintain a strong cash position.
The Heritage Centre
Previous accounts have shown that in 1998 the Trust bought a 99-year lease of the Heritage Centre. This is a property in the centre of Winchester, which provides the Trust’s office, meeting rooms and two flats. The flats are an essential part of the Trust’s investment income.
The sum expended on the purchase of the lease was capitalised for the purpose of composing the accounts. The concurrent grant of £20,000 received from Winchester City Council was not included in this exercise as it was a gift and did not represent any money or investment then owned by the Trust. The sum invested in the building is depreciated at the rate of 1% per year.
This year the Council of the Trust decided to revalue the property and took the opinion of two local estate agents who have experience of this type of property. Each advised separately that a sale should achieve in the region of £400,000. The Council has thought it prudent to revise this figure downwards by 10% and to allow for selling expenses of £10,000. This produces the sum of £350,000. This is again a paper exercise but it is comforting to know that the increase in value more than offsets the potential losses on the listed investments.
Investment Policy
Property investment is either used for charitable purposes or to produce income to fulfil those charitable purposes. This means that the Heritage Centre is used for the operation of the Trust, and the two small flats are let to provide income for the Trust because membership subscriptions alone would not generate enough income to enable the Trust to carry out all its projects and activities.
Monetary investments are invested in listed investments. The policy applicable to equity-based investment is designed to produce income while seeking capital growth and longer-term security for the Trust’s investments.
The policy applicable to fixed interest and variable interest investment is to produce the greatest income whilst ensuring that there is no loss of capital.
Reserves Policy
The annual accounts show the assets and liabilities attributable to the funds by type and which are approved by the Council. The Council plans its expenditure within available resources whilst maintaining reserves which gives the Trust flexibility to achieve its aims.
Property Revaluation Policy
The Trust adopts the policy of revaluing its property every five years. This year has seen the revaluation set out in these accounts.
Accounting Policies
Within its accounting policies the Trust now defines its various funds as follows:
Restricted Funds are funds subject to specific conditions within the objects of the charity.
Unrestricted Funds are funds where no restrictions are placed on the use by the charity upon either the capital or the income. The unrestricted funds are divided between:
- Designated funds:
Tangible fixed assets fund - representing funds invested in the Trust’s leasehold property and other fixed assets.
Investment fund - representing investments arising from a legacy, which the Council’s policy is to retain for the longer term in order to provide income to support the Trust’s projects and activities. - Undesignated funds:
Revenue fund - to provide the Trust’s working capital.
Council Responsibilities
It is a requirement of company law for the Council to prepare financial statements for each accounting period. They must give a true and fair view of the state of affairs of the Trust and of the surplus or deficit for that period. The Council must:
- Prepare the financial statements on the basis that the Trust is a going concern;
- Select appropriate accounting policies and apply them consistently;
- Make judgements and estimates that are prudent and reasonable;
- Disclose whether any material departures have been made from these Policies.
The Council is responsible for keeping proper accounting records which should be able to disclose at any time the financial position of the Company and enable the Council to ensure compliance with the Companies Act 1985. The Council is also responsible for safeguarding the assets of the Trust and for taking reasonable steps for the prevention and detection of fraud and other financial irregularities.
Accountants
Butler & Co have been appointed as Reporting Accountants and will be proposed for re-appointment.
Small Company Status
This Report has been prepared in accordance with the special provisions of Part Vll of the Companies Act, 1985 relating to Small Companies.
By Order of the Council
signed by R Thomas
Secretary
Dated 17th September 2003
32 Upper Brook Street,
Winchester,
Hampshire, SO23 8DG