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Extracts from the Accounts for the year ended 31st March 1999 - Trust Annual Report 1999

A copy of the full accounts may be viewed by appointment at the Heritage Centre

Financial Review

The accounts comprise separate but related functions. Firstly, the general account for routine receipts and payments, secondly the Trust's investments and, lastly, the Alder Bequest.

A revised recording system for specific accounts has been introduced with the advice of our auditors which should simplify these steps and be capable of being maintained by the Trust's Secretary as well as the Honorary Treasurer. It is expected that this manual system will be replaced by a computerised system in 1999/2000.

The Trust's income for the year was consistent with the prior eleven month period with the exception of the Alder bequest of £7,144 noted above. The Trust has very little direct charitable expenditure due to the nature of its work which is undertaken by members rather than through donations or direct financial support.

Certain of the Trust's investments were liquidated in the year to fund the purchase of the lease of the Heritage Centre and its partial conversion to residential accommodation. A loss was realised on the disposal of investments as a result of a sharp decrease in market values generally compared to market values at 31 March 1998. Investments at 31 March 1998 were valued at the then relatively high market value resulting in an accounting loss at the date of sale. Sale proceeds nevertheless exceeded historic cost by £34,000.

Investments

Rathbone Neilson Cobbold were appointed as Advisory Managers as well as Dealers for the £300,000 investment accounts of bonds, equities and investment cash before the stock exchange volatility of late 1998. Some investments had to be liquidated to provide cash for the purchase of a 99 year lease on the Heritage Centre, its subsequent refurbishment and conversion to include two studio flats as well as a meeting room and office for the Trust. The remaining investment portfolio was reviewed and adjusted to prosper in the changed circumstances as world markets regained some stability and the Euro was introduced into Continental Europe, whilst interest rates in the UK continued to fall. Investment purchases have been acquired in accordance with the powers available to the Trustees as laid down in the Trust's governing document.

Conversion of the Heritage Centre

The conversion work was started in January 1999 and is progressing according to schedule. Inevitably, additional work is having to be done which in some cases, increases the cost. Although the final amount will not be established until the next financial year, costs have been contained and a quality of work achieved so that revenue from and expenditure on the building will make it a sound investment for the Trust in future years.

Alder Bequest

The Executors of the late Mr Alder paid the Trust a legacy of £7,144 to endow the archival activities of the Trust. This has been invested separately, with separate accounts. The Archive Committee authorises the expenditure of this investment within Council policies.

Outlook

The change from Stock Exchange investment income introduces a degree of uncertainty both in the short and longer term. The Budget for 1999/2000 takes a realistic, if not gloomy, view of income and the amounts needed to be put aside for maintenance and a "sinking fund". Even with this, it is anticipated that all the Trust's Preservation projects will be maintained but expansions may have to be postponed.

The Council of Management confirms that the Trust's assets are available and adequate to fulfil its obligations.