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THE CITY OF WINCHESTER TRUST LIMITED
REPORT OF THE COUNCIL AND FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 MARCH 2006

Chairman's Report

This annual report comments on projects and activities for which budgetary provisionwas made during the ?nancial year. Inevitably there are some items which did not reach completion and will be carried forward. In addition the report contains the necessary statutory disclosures.

Projects

Activities

Plans for the future

None of the projects and activities listed could have been undertaken without the work put in by those who participated in diverse ways. There are others who have contributed much to the day to day operations: Peter Radcliffe, our provident and meticulous Hon. Treasurer, Robin Merton, Iain Patton and Michael Carden the Vice Chairmen who all give so generously of their time and talents and our President Sir Peter Ramsbotham who gives us all encouragement and wise guidance.

By the time this report is circulated, Rolly Thomas our Secretary will have left us, but, together with all good wishes for the future, it is appropriate to record the thanks of the Trust for the very professional service she has given to the work of the Trust over the past 8 years.

GOVERNING DOCUMENT

The City of Winchester Trust Ltd. (the Trust) was founded in I957 and incorporated as a company limited by guarantee in 1958. As such it has no share capital. The liability of individual members is limited to a sum not exceeding five pence.

It is governed by its Memorandum and Articles of Association, which was last amended in 2000. The Trust is registered as Company number 00609812 and Charity Number 251798.

ORGANISATIONAL STRUCTURE

The Council has responsibility for the management and control of the Trust. However certain financial functions are delegated to the Finance and Resources Committee, and other panels and groups are formed and their leaders appointed by Council for specific purposes, projects and continuing activities. Council members are elected for three years at the Annual General Meeting but may stand for re-election at the end of their term.

Council members act as trustees of the charity and directors of the company limited by guarantee.

THE OBJECTS OF THE TRUST

The Trust’s objects are fully described in the Memorandum of Association. They can be summarised as follows:

To seek to conserve the character of the City of Winchester and its surrounding area by:

INVESTMENT POWERS AND POLICIES

The investment powers of the Council are given by the Memorandum and Articles of Association.

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. Monetary investments are managed by an independent advisor within policies set out by the Council.

PROPERTY REVALUATION POLICY

The Trust adopts the policy of revaluing its property every five years, commencing 31 March 2003.

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.

RISK MANAGEMENT

The Council has reviewed the major risks to which the Trust is exposed, as identified by the Council, and is satisfied that systems are in place to mitigate those risks.

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:

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 VII of the Companies Act, 1985 relating to Small Companies.

On behalf of the Council

signed Mrs P Edwards
Chairman
4th July 2006