Hon. Treasurer's Report for the year ended 30th April 1987 - Trust Annual Report 1987
The twelve months ending 30th April 1987 resulted in an excess of expenditure over income of £3,475 which was made up as follows:
| Trust - excess expenditure | £ ( 874) |
| Heritage Centre - excess expenditure | £ (3285) |
| Heritage Centre Shop - excess income | £ 684 |
However, it should be pointed out immediately that this "loss" was brought about almost entirely by extraordinary items. In the case of the Trust expenses, these include further costs towards the establishment of the permanent exhibition in the Heritage Centre of £1,355. Without this there would have been surplus income of £504. The expenses of the Heritage Centre include £2,363 being the costs of the audio-visual presentation which have been written off in the year in which the expenditure occurred. Without this expense the excess expenditure would have been reduced to £921 which after the profit of £684 achieved at the Shop would have resulted in a much more modest excess of expenditure or "loss" of £237.
At the end of this Report are given an extract from our statutory and management accounts comprising our consolidated balance sheet, and the income and expenditure accounts for the Trust, the Heritage Centre and the Heritage Centre Shop. The balance sheet shows net assets of £37,937, a reduction over the 1985/86 accounts as a result of debiting the excess of expenditure over income to the Accumulated Fund. The Trust's fixed assets have increased by £4,215 which represents the audio-visual equipment now installed in the Heritage Centre. At the same time it should be pointed out that the value of 24 Canon Street will be re-appraised next year in accordance with the policy of five year reviews and it can be confidently expected that there will be a significant increase to the surplus on revaluation of the property. Complete copies of the statutory and management accounts are available for the inspection of members in the Heritage Centre.
It is pleasing to note that, excluding the extraordinary items mentioned above, the Trust's administration expenses were at a similar level to last year and the budgetary control exercised by the Hon. Secretary and Committee Chairmen is to be applauded. However, it will be seen that only 46% of these essential expenses are covered by subscription income. Indeed, it is disappointing to note that subscriptions rose by £127 only in the year. Whereas the introduction of covenanted subscriptions will increase this amount, there is no substitute for a large increase in membership. Should this not be achieved then there will be little alternative but to increase the level of subscriptions. Interest was lower during the year as a result of the loan to the Heritage Centre and the lower levels of interest prevailing in the market.
The account for the Heritage Centre shows considerable increases in rates which rose by £569 (which includes unpaid water rates for 3 years). Against this there was a saving of £400 on repairs and renewals. In the last financial year it was agreed that the fixtures and fittings in the Heritage Centre would be written off. Whereas there was no depreciation this year that will return next year as the audio-visual equipment is to be written off over five years. As already stated, the costs of the actual presentation less grants received, have been written off this year. It should also be mentioned that the cost of both the presentation and the equipment have been partly funded by a loan from the Trust which, at the end of the financial year, amounted to £5,800.
Shop sales increased by 40% to £1,193 and, after purchases and only modest expenses of £67, resulted in excess income of £684. The contribution of the Shop is quite apparent in the context of the paucity of operating income.
Taken as a whole, the financial affairs of the Trust remain sound, and whereas there has been heavy excess expenditure this year, it has been of an extraordinary nature and the impact on total resources has already been absorbed. However, the future financial health of the Trust does depend to a very great extent on a rapid expansion of membership. This must be an important priority with all present members.
