ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER 2013

Transcription

1 ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDING 31 DECEMBER 2013 REGISTERED CHARITY NUMBER:

2 The Co-operative Heritage Trust Report for the year ending 31 December 2013 Chair s introduction Reference and the Administrative Information The Co-operative Heritage Trust was founded in 2007 and was registered with the Charity Commission under charity number in September of that year. Legal and administrative details Registered charity number: Registered Offices: Co-operative Heritage Trust Governance 1 Angel Square Manchester M60 0AG The Trustees, Officers and Advisors Trustees: Professor Stephen Yeo (Chair) Ms Karen Froggatt Dame Pauline Green Mr Ian Snaith Mr Robin Stewart Mr Mervyn Wilson The day to day responsibility for operations of the Trust is delegated to the Co operative College Trust via a Management Agreement. Secretary: Clare Oakley Co-operative Heritage Trust Governance 1 Angel Square Manchester M60 0AG Principal Advisors Bankers: Co-operative Bank Plc Balloon Street Manchester M60 4EP Auditor: KPMG LLP Chartered Accountants Registered Auditor St James Square Manchester M2 6DS Internal Auditor: Slade and Cooper Ltd Chartered Certified Accountants Green Fish Resource Centre Oldham Street Manchester M4 1LE 2013 marks another important milestone in the development of the Co-operative Heritage Trust. In the first full year of operation of the Rochdale Pioneers Museum following its substantial refurbishment we received over 13,500 visitors, considerably more than we had predicted to achieve after three years operation. The achievements at the Museum, which continues to receive visitors from many countries as well as co-operatives and other organisations throughout the UK, was supplemented by a wide ranging outreach programme. All of this was made possible through the continuation of the Heritage Lottery funded ROCHDALE project, together with support from the Esmée Fairbairn Foundation, the JP Getty Jnr Charitable Trust, the Barry Amiel and Normal Melburn Trust, Pilsworth Environmental Company and Rochdale Borough Council to whom we record our sincere thanks. As part of the ROCHDALE project conservation work and repackaging work on parts of the Archive and Museum collections continued, helping safeguard the collections for the benefit of future generations. The Trust also worked with the Co-operative College to develop a range of online resources, making parts of the Archive collection more accessible. These are available on the website. The Trust worked closely with the Co-operative Group for its 150th anniversary, including a temporary exhibition at the Rochdale Pioneers Museum, support for a major exhibition at the People s History Museum and support for researchers working on the publication Building Co-operation A Business History of the Co-operative Group, A key priority of the Trust has been to widen the donor base to ensure that the achievements through the ROCHDALE project become fully sustainable. We particularly thank the Central England Co-operative Society (formally Midlands Co-operative Society) for becoming a New Pioneer a major donor, and other co-operative societies that have also become donors. Wider donor initiatives include making it easier for individuals to become regular donors to the Museum and the encouragement of supporters of co-operative heritage to leave legacies to the Trust. We urge all supporters to consider contributing to the ongoing work of the Trust through these mechanisms. Finally I record special thanks to the staff and the wonderful team of volunteers at the Rochdale Pioneers Museum and National Co-operative Archive for their work, and to the Co-operative College which manages the Museum and Archive on behalf of the trust. Stephen Yeo Chair of the Co-operative Heritage Trust 11 April 2014

3 Structure, Governance and Management Trustees Report for the Year Ending 31 December 2013 The Co-operative Heritage Trustees present their Report for the year ending 31 December 2013 under the Charities Act 2011, together with the audited accounts for the period, and confirm that the latter comply with the requirements of the Act, the Trust Deed and the Charity Statement of Recommended Practice Governing Document The charity is governed by a Trust Deed dated 18 September Recruitment and Training of Trustees The founders of the Co-operative Heritage Trust are the Co-operative Group, Co-operatives UK and the Co-operative College. The Trustees were appointed by the respective organisations based on their expertise in co-operative heritage and charitable organisations. The Trustees have received an appropriate induction and ongoing training support is kept under review by the Trustees. Organisational Management The day to day operational management of the trust is delegated to the Co-operative College Trust (registered charity ). Internal Control The Trustees are ultimately responsible for the Trust s system of internal control and for reviewing its effectiveness. However, such a system is designed to manage rather than eliminate the risk of failure to achieve the charity s business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss. The Co-operative College Trust, which manages the Co-operative Heritage Trust s work through a management agreement, has elected to work within the Co-operatives UK Corporate Governance Code of Best Practice, revised 2013, where applicable. Key procedures have been established, providing effective internal financial control. These include: Clearly defined lines of responsibility and delegation. Operation within approved financial regulations. Budget setting and approval. Regular review of performance and forecasts against the budget approved by the Trust. Reporting to and review by the Trustees on a regular basis. Risk Management Under the terms of the management agreement, the Co-operative College has a clear responsibility for: Identifying risks facing the Trust. Putting in place actions and procedures to mitigate and control risks. Monitoring risks. The Co-operative College Trust s management regularly reviews and updates the risk register for the Co-operative Heritage Trust and plans to manage risks identified through its planning cycle. The Co operative College Audit Committee has regularly reviewed the register and reported to the Trustees on actions by the College management to control risks. 4 CO-OPERATIVE HERITAGE TRUST ANNUAL REPORT 2013 CO-OPERATIVE HERITAGE TRUST ANNUAL REPORT

4 Objects, Aims Objectives and Activities Charitable Objectives The objects of the Charity as defined in the Trust Deed are as follows: The preservation, protection and improvement for the public benefit on behalf of the co operative movement of 31 Toad Lane, Rochdale (known as the Rochdale Pioneers Museum) and any ancillary buildings as shall or may at any time be vested in the charity or in respect of which the charity shall have any interest. The preservation, protection and improvement for the public benefit on behalf of the co operative movement of all furniture, pictures, historical records, books, manuscripts, films, photographs, objet d art and other chattels or items of historic interest associated with the co-operative movement that form the National Co-operative Archive and the collections of the Rochdale Pioneers Museum or that may, at any time, be vested in the charity or in respect of which the charity shall have any interest. The encouragement of the provision of access to and the study of such buildings, land, furniture, pictures, historical records, books, manuscripts and other chattels or items that comprise the National Co-operative Archive and the Rochdale Pioneers Museum by members of the general public. Such other charitable objects as the Trustees from time to time determine subject to the prior consent of the founder and the charity commission. Mission To inspire people within and beyond the co-operative movement about the origins, development and contemporary relevance of co operation by collecting, safeguarding and making accessible artefacts and documentation through lifelong learning and research. Strategic Objectives and Achievements during 2013 A major development during the year, which had an effect on all of the strategic objectives of the Co-operative Heritage Trust was the work on the ROCHDALE (Renewing Our Co-operative Heritage, Developing the Archive and Learning Experiences) Project. The Museum was visited by a group of Greater Manchester Mayors in May, led by the Mayor of Rochdale, Councillor James Gartside. Strategic Objective 1 To develop the Museum and Archive collections as lifelong learning resources. Developing learning resources from Archive collections through the ROCHDALE project and making them available through the Archive s website at Working with schools, including the growing network of co-operative schools using Archive and Museum materials. The development of workshops and activities for schools using the Museum s Learning loft or through outreach. A series of family friendly activities at the Museum during school holidays and trails and activities for very young visitors. The first temporary exhibition at the Museum on the 150th anniversary of The Co operative Group Working with universities through events, the provision of learning materials and access and support to research projects and proposals. Maintaining links with the Arts Council and Visit England and renewal of the VAQAS (Visitor Attraction Quality Assurance Scheme) status for the Museum. Strategic Objective 2 To ensure that the documentary and material evidence for the story of the movement is preserved and made available for present and future users. Collecting new material in accordance with the Acquisitions and Disposals Policy. Continuing work on conservation and archive packaging projects, funded through the ROCHDALE Project. Assisting researchers visiting the Archive and Museum and those making enquiries by post, and telephone. Applying for the renewal of the Accredited Museum status achieved in 2008 and maintaining the Designated Collection status achieved for the Archive. Working with The Co-operative Group on the development of materials for the 150th anniversary celebrations. Regularly updating the Archive and Museum websites. Strategic Objective 3 To take a lead role in developing and maintaining a partnership of archive repositories and other custodial institutions which have records or artefacts relating to the co-operative movement in order to establish a network of information and resources on the history of the movement. Working with partners on the CoopRoute project to link significant co operative sites across Europe. Developing knowledge of archives and museums of the co-operative movement internationally, particularly in Europe and with African co-operative colleges. Working with archives and museums with co operative collections in the UK. A choir procession with over 200 participants was held to celebrate Museums at Night. The Museum s Learning Loft ready for an awards lunch. 6 CO-OPERATIVE HERITAGE TRUST ANNUAL REPORT 2013 CO-OPERATIVE HERITAGE TRUST ANNUAL REPORT

5 Strategic Objective 4 To enable the material to be used to inform the content of appropriate learning programmes. Making materials available to those developing courses within the Co-operative College. Working with school teachers on the development of learning resources. Developing activities and resources for use with community groups with the outreach team through the ROCHDALE Project. Strategic Objective 5 To make the collections of the Museum and Archive widely accessible through full cataloguing, proper storage and retrieval facilities and digitisation of appropriate elements. Maintaining good storage conditions for archive materials. Completing archival catalogues and making them accessible through the Archives Hub and the Archive s own website, including: Papers of A V Alexander, Earl Alexander of Hillsborough. Correspondence of James Rigby. Papers of Joseph Reeves. Increasing the number of user guides available for collections. Review of Achievement and Performance in the Period The Museum continued to develop during the year, with the final completion of the displays. During 2013, the first full year since reopening, the Museum welcomed 13,535 visitors and hosted a wide range of activities and events. The Archive received 199 research visits and answered 390 enquiries by , telephone and post. Media interest was high during the year, with the Museum being filmed on several occasions. These included a segment in the Great British Railway Journeys programme broadcast on BBC2 in January 2014 and a tour for a Korean television Visit of Chuka Umunna, Shadow Secretary of State for Business, Innovation & Skills, to the Museum with Simon Danczuk, MP for Rochdale programme. The Museum s Learning Loft also hosted an edition of BBC Radio 4 s Gardeners Question Time. The Museum featured on the advertising for opening of the new tram line to Rochdale and activities were regularly covered by the local newspapers. The Community Outreach Officer working on the ROCHDALE project with funding from JP Getty Jnr Charitable Trust and The Esmée Fairbairn Foundation continued to engage with community groups in projects and develop resources and activities for use with a range of audiences visiting the Museum or using the websites. In partnership with Touchstones Rochdale, the arts and heritage centre, Museums at Night was celebrated with a choir procession through Rochdale involving over 200 people. The websites for the Archive and Museum are updated regularly and used with Twitter and Facebook to publicise events and activities and to highlight items in the collections. The Co-operative Group project to assess heritage materials coming to light during the move to new premises in Angel Square was extended to the end of The project identified around 1,000 boxes of archive material, over 3,500 plans and many artefacts. These materials were used by researchers and used in a series of exhibitions in meeting rooms and public spaces in the Angel Square building. During the year, the conservation and packaging work has progressed with fragile items from the Archive s collections being conserved, rebinding of some volumes with many of the collections repackaged to protect them. The Banner Conservation Studio at the People s History Museum began work on some of the banners in the Museum s collections funded through the ROCHDALE project. Archive staff have been involved in conferences and giving talks to community groups and to international delegations and individuals. Articles on co-operative heritage have been produced for The Co-operative Group pension scheme s Evergreen magazine. During the year, Building Co-operation: A Business History of The Co-operative Group was published by Oxford University Press following a three year research project. The Archive team was also involved in providing information and support for The Co operative Group 150th anniversary celebrations including a website, the temporary exhibition at the People s History Museum and events. Items from the Trust s collections were loaned for the temporary exhibition. The Museum Team took part in publicity to celebrate the arrival of the first Metrolink trams in Rochdale. A workshop on handling and cleaning banners was held for staff and volunteers. Workshops for schools on a range of subjects including Pioneer Experience, Shopping, Fair Trade and a Co-operative Christmas have proved popular at the Museum. The Museum s first temporary exhibition From Jumbo Farm to Jam Factory showed the importance of Middleton to the story of The Co-operative Group. The exhibition stimulated great interest and was launched with tea parties in Middleton. A Rochdale Co-operatives Day was held to launch Co-operative Fortnight and involved the Co-operative Heritage Trust and the Co operative College working with Rochdale Council, Touchstones, the Arts and Heritage Centre and co-operatives such as Rochdale Hornets Rugby League Club. The Heritage Team worked with colleagues in the Co-operative College to develop a range of electronic learning resources - archive - making the collections more accessible. Resources include: Trading with the World; A Colossus of Commerce; From Factory Floor to Front Line; Common Roots; and Politics for the People. All are on the Archive s website at The Archive hosted placements from three students undertaking archival and librarianship postgraduate qualifications and others planning 8 CO-OPERATIVE HERITAGE TRUST ANNUAL REPORT 2013 CO-OPERATIVE HERITAGE TRUST ANNUAL REPORT

6 Celebrating the work of the volunteers Fundraising to become archivists or interested in exploring activities with heritage materials. Volunteers at the Rochdale Pioneers Museum are involved in a range of activities including welcoming visitors and work with collections and are joined by placement students from postgraduate museum courses. At the end of the year, the work of the Museum volunteers was marked with an event to celebrate the completion of the volunteers transcription of the Minute Book of the Rochdale Pioneers. The work of volunteers is much appreciated and their activities will develop further in the future. Future Plans In 2014, the Archive and Museum will: Widen and deepen the funding base by extending the range of donors. Complete the HLF funded ROCHDALE Project. Continue to develop relationships with individuals and co-operative, community and education groups leading to the development of learning resources using the collections. Continue to develop a programme of outreach activity to take place both in the new education space at the Museum and beyond. Continue to develop new learning resources and make them accessible electronically. Catalogue further collections and publish the catalogues on the National Co-operative Archive and Archives Hub websites. Develop funding bids and partnerships to further the work of the Trust. Participate in co-operative and educational events. Participate in professional archive and museum events. The Co-operative Heritage Trust, in common with many charities, needs to raise funds in order to maintain current activities and be able to expand the user base of the Archive and Museum to reach new audiences. The Co-operative Heritage Trust s major donor scheme New Pioneers was joined by the Midlands Co-operative Society (now Central England Co operative Society) which gave its commitment to preserving and making accessible the co operative movement s rich heritage. The Society s Stephen Beresford visited the Museum and Archive to meet the Heritage Team and learn more about the work of the Trust. Central England Society has now joined The Co operative Group and the Indian Farmers Fertilisers Co-operative (IFFCO) as a New Pioneer. Other co-operative societies making donations to the Trust during 2013 were: Trust Chair Stephen Yeo with Stephen Beresford and the Midland Challenge Shield at the Museum During 2013, new methods were developed to enable individuals and co-operatives to support the Trust and its activities. A Just Giving page is available for both regular support and for one off donations coopheritagetrust and a scheme to encourage supporters to leave legacies to the Trust is being developed. Co-operatives UK Midcounties Co-operative Heart of England Co-operative Society Chelmsford Star Co-operative Society The Co-operative Group The Trustees would like to express their thanks to the New Pioneers, co-operative societies and individuals who are making a valuable contribution to preserving and making accessible the heritage of the co-operative movement. Family friendly activities on Pioneer Wednesdays during school holidays. 10 CO-OPERATIVE HERITAGE TRUST ANNUAL REPORT 2013 CO-OPERATIVE HERITAGE TRUST ANNUAL REPORT

7 Financial Review and Results for the Period Accounting and Reporting Responsibilities Investment Policy and Performance against Objectives In 2013 the policy of investing in a Sustainable Diversified Fund managed by Royal London Asset Management continued. This had been undertaken in 2012 with a view to increasing returns whilst maintaining the underlying capital value of the asset. The return on investments in 2013 was 62,285, approximately 3.11%. The Trust s stated objective is 5%, determined in 2008 before the global financial crisis. Whilst the current investment strategy has not met those returns it has produced much greater returns through capital gains. At 31 December 2013 the value of the original investment of 2,000,000 had risen to 2,270,794, a gain which directly increases unrestricted funds and helps result in an overall surplus for the year. Financial Review and Results for the Period The financial statements reflect work undertaken on the ROCHDALE project primarily funded by the Heritage Lottery Fund (HLF) together with other funders. This includes substantial capital expenditure on the Rochdale Pioneers Museum together with conservation, preservation and outreach work. The revenue costs in relation to the ROCHDALE project increased in Although professional fees for the Rochdale Pioneers Museum building project have decreased as expected, there has been an increase in other activities funded through the project. The most notable of these are: The development of interactive, online learning resources increasing the accessibility of materials held in the Archive. Conservation and archive packaging work preserving and protecting a range of archive materials and collections. There was an 5.6% increase in the costs of the Archive and Museum from 2012 to This reflects a full year of staffing costs for the Museum. The Robert Owen cataloguing project completed in 2012, with no costs carrying into The Trust is now developing its long term donor strategy through its New Pioneers programme as well as seeking to engage UK co operative societies and individual donors. Reserves Policy In parallel to developing a major donor strategy the Trustees are reviewing the Reserves Policy with a view to building appropriate level of reserves over the next 10 years. Heritage Assets Under FRS 30, Heritage Assets should be valued at cost or valuation. However such assets can be exempt from capitalisation if the cost of obtaining a valuation significantly outweighs the benefit or there is no reliable cost information available. The Archive and Museum assets of the Trust fall into this category and are held by the Trust or in trust with Co-operatives UK. The assets consist of a substantial archive collection together with museum artefacts and the premises at 31 Toad Lane, Rochdale (for further details, see note 1e). Where there are costs attributed to obtaining and restoring Heritage Assets the Trust will look to capitalise them. The accounts and notes on pages 16 to 23 are hereby signed by: Stephen Yeo (Chair) Dated: 1 May 2014 Karen Froggatt Statement of Trustees Responsibilities in respect of the Trustees Report and the Financial Statements Under the Trust Deed of the Charity and charity law the trustees are responsible for preparing the Trustee s Annual Report and the financial statements in accordance with applicable law and regulations. The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of the excess of expenditure over income for that period. In preparing these financial statements, generally accepted accounting practice entails that the Trustees: Select suitable accounting policies and then apply them consistently. Make judgements and estimates that are reasonable and prudent. State whether applicable UK Accounting Standards and Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements. State whether the financial statements comply with the Trust Deed, subject to any material departures disclosed and explained in the financial statements. Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are required to act in accordance with the trust deed of the charity, within the framework of trust law. It is responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the trustees to ensure that, where any statements of accounts are prepared by it under section 132(1), the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. It has general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the financial and other information included on the charity s website. Legislation in the UK covering the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Information System Under the management agreement with the Co operative College, the Trust uses the services of Co-operative College Finance Team who provide an accounting and information service for the College. All transactions are recorded through the computerised financial ledger system. Regular actual results are produced from this system for reporting to the Trust against budget, highlighting any significant adverse or favourable variances. This also allows any remedial action to be taken as and when required. Co-operative members group visiting during Co operatives Fortnight. 12 CO-OPERATIVE HERITAGE TRUST ANNUAL REPORT 2013 CO-OPERATIVE HERITAGE TRUST ANNUAL REPORT

8 Control Procedures and Monitoring In addition to the controls previously mentioned, there are clearly defined policies for capital expenditure. These include appropriate authorisation levels with larger projects requiring the Trustees approval. The College Audit Committee performs a key role in the review of the effectiveness of internal financial and other controls. The Committee met on four occasions and has been able to refer to work undertaken by internal audit. By the end of the year the Trust was compliant with the Co-operatives UK Corporate Governance Code of Best Practice 2005 D3.1 in as far as it is applicable to the Trust. Auditors KPMG LLP successfully tendered for and were appointed auditors by the Trustee in December Going Concern After making all enquiries and taking into consideration the detailed Strategic Plan and budgets, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. For this reason, it continues to adopt the going concern basis in preparing the Trust s accounts. Independent Auditors Report to the Trustees of the Co-operative Heritage Trust We have audited the financial statements of the Co-operative Heritage Trust for the year ended 31 December 2013 set out on pages 16 to 23. The financial reporting framework that has been applied in their preparation is applicable in law and UK Accounting Standards (UK General Accepted Accounting Practice). This report is made solely to the charity s trustee as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity s trustee those matters we are required to state to them in an auditor s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustee as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of trustees and auditor As explained more fully in the Statement of Trustees Responsibilities set out on page 13 the trustee is responsible for the preparation of financial statements which give a true and fair view. We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. Our responsibility is to audit, and express an opinion on, the financial statements in accordance applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board s Ethical Standards for Auditors. Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the Financial Reporting Council s website at auditscopeukprivate. Opinion on financial statements In our opinion the financial statements: give a true and fair view of the state of the charity s affairs as at 31 December 2013 and of its incoming resources and application of resources for the year then ended; have been properly prepared in accordance with UK Generally Accepted Accounting Practice; and have been properly prepared in accordance with the requirements of the Charities Act Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion: the information given in the Trustee s Annual Report is inconsistent in any material respect with the financial statements; or the charity has not kept sufficient accounting records; or the financial statements are not in agreement with the accounting records and returns; or we have not received all the information and explanations we require for our audit. Mick Davies for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants St James Square Manchester M2 6DS 14 CO-OPERATIVE HERITAGE TRUST ANNUAL REPORT 2013 CO-OPERATIVE HERITAGE TRUST ANNUAL REPORT

9 The Co-operative Heritage Trust Statement of Financial Activities for the year ended 31 December 2013 Prior Year Funds 2012 Total Funds December 2013 Restricted Funds Unrestricted Funds Notes Incoming Resources Incoming resources from generated funds Voluntary Income 56,880 62, ,710 57,854 Investment Income 62,285-62,285 62, 632 Incoming resources from charitable activities Archive and Museum 11,818-11,818 6,199 ROCHDALE Project 129, , ,594 Robert Owen Cataloguing Project ,916 Total incoming resources 260,364 62, , ,195 Resources expended Charitable activities Archive and Museum 2 296, , ,480 ROCHDALE Project 2 156, ,644 98,800 Robert Owen Cataloguing Project ,727 Governance Costs 2 2,955-2,955 2,387 Total resources expended 455, , ,395 Net movement incoming resources before other recognised gains (195,631) 62,830 (132,801) 452,799 Other recognised gains Gains on investment assets 7 270, ,794 - Net movement in funds 10 75,163 62, , ,799 Reconciliation of funds Total funds brought forward ,333 3,082,375 3,502,708 3,049,909 Total funds carried forward ,496 3,145,205 3,640,701 3,502,708 The Co-operative Heritage Trust Balance Sheet as at 31 December 2013 Notes 31 December December 2012 Fixed Assets Tangible assets 5 1,503,351 1,496,550 Investments 7 2,270,794 2,000,000 Heritage assets 6 1,121 1,121 Total Fixed assets 3,775,266 3,497,671 Current Assets Debtors & prepayments 8 97, ,230 Stock 8 3,264 1,055 Cash at bank and in hand 13 23, ,259 Total current assets 124, ,544 Liabilities Creditors: Amounts falling due within one year 9 (258,565) (238,507) Net current assets or liabilities (134,566) 5,038 Total assets less current liabilities 3,640,701 3,502,708 Net assets or liabilities 3,640,701 3,502,708 The funds of the charity Restricted funds 10 3,145,205 3,082,375 Unrestricted funds , ,333 Total Charity funds 3,640,701 3,502,708 The Co-operative Heritage Trust Cashflow Statement for year ended 31 December 2013 Notes 31 December December 2012 Net cash (outflow) / inflow from operating activities 12 (129,262) 465,239 Return on investments and servicing of finance 12 62,285 62,632 Capital expenditure 12 (22,747) (943,033) Reconciliation of net cash flow to movement on net funds: Decrease in cash (89,724) (415,162) Net funds at 1 January , ,421 Decrease in cash 13 (89,724) (415,162) Net funds 23, , CO-OPERATIVE HERITAGE TRUST ANNUAL REPORT 2013 CO-OPERATIVE HERITAGE TRUST ANNUAL REPORT

10 Notes to the Accounts 1. Statement of Accounting Policies a. Basis of accounting The accounts have been prepared an historical cost accounting basis for the year ended 31 December 2013, together with the comparative figures for the year to 31 December The accounts are prepared in accordance with applicable accounting standards and the Statement of Recommended Practice Accounting and Reporting for Charities issued in March 2005, and the Charities Act. The presentation of the accounts complies with the Charities Act requirements under the Charities SORP. After making enquiries the Trustees have a reasonable expectation that the Co-operative Heritage Trust has adequate resources to continue its activities for the foreseeable future. Accordingly they continue to adopt the going concern basis in preparing the financial statements. b. Incoming Resources All income is recorded exclusive of VAT and is accounted for in the SOFA when the Co-operative Heritage Trust is legally entitled to the income and the amount can be quantified with reasonable accuracy. Grants are recognised when received or in accordance with the conditions set by the funding provider. Project income is recognised on actual work completed to the end of December c. Resources expended Expenditure is recognised on an accruals basis and is spent in line with the appropriate income, or in the case of core costs (staffing, rent etc) in line with invoices and contracts of employment. Charitable activities expenditure enables the Co-operative Heritage Trust to meet its charitable objective. Governance costs are associated with the governance agreements of the charity and relate to the general running of the charity. These costs include external and internal audit, legal advice for the Trustees and costs associated with meeting constitutional and statutory requirements such as the cost of Trustee meetings and preparation of the statutory accounts. Any irrecoverable VAT is shown as part of the cost in the area to which it relates. The amount suffered is disclosed in note 2. d. Fund accounting i. Unrestricted funds these are funds that can be used in accordance with the Co-operative Heritage Trust s charitable objectives at the discretion of the Trustees. ii. Restricted funds these are funds received for undertaking an activity specified by the donor. e. Tangible fixed assets Tangible fixed assets are stated at cost less the accumulated depreciation. Depreciation is calculated in equal monthly amounts based on cost. After review to take into account the nature of assets following the Museum refurbishment, the following minimum rates are applied: Plant, Fixtures & Fittings Information Technology Equipment 6.67% per annum 50% per annum The assets held under buildings relates to the Rochdale Pioneers Museum at 31 Toad Lane, Rochdale. The building has undergone substantial refurbishment as part of the ROCHDALE project funded by the Heritage Lottery Fund, Pilsworth Environmental Company and The Barry Amiel and Norman Melburn Trust. f. Investments Investment income is recognised on an accruals basis. Fixed Asset Investments are managed by the Royal London Asset Management and are invested in a Sustainable Diversified Fund. g. ROCHDALE project funders In 2013 the Trust received the following grants and funding; Revenue Capital Heritage Lottery Fund 127,428 42, , Charitable expenditure Analysis of total resources expended Staff Cost Support Costs Total Other Direct Costs Total 2013 Total 2012 Charitable Activities Archive and Museum 167,100 52,966 76, , ,480 ROCHDALE Project 22,760 27, , ,644 98,800 Robert Owen Project ,727 Governance - 2,955-2,955 2, ,860 83, , , ,395 Analysis of support costs Archive and Museum ROCHDALE Project Governance Total 2013 Total 2012 Travel 5,332 1,109-6,441 2,423 VAT 10,265 2,439-12,704 18,024 Misc 2, ,328 6,556 Management Fee 36, ,000 - Audit Fees - audit work - - 2,955 2,955 2,387 Professional Fees (959) 23,729-22, ,884 52,966 27,277 2,955 83, , CO-OPERATIVE HERITAGE TRUST ANNUAL REPORT 2013 CO-OPERATIVE HERITAGE TRUST ANNUAL REPORT

11 3. Employee Costs The average number employed by the Trust was: Full time Part time Full Time Equivalents Trustees Remuneration The Trustees received no remuneration in the performance of their duties. 5. Tangible Fixed Assets Buildings* Plant, fixtures & fittings Total Cost 1 January ,289, ,640 1,496,550 Additions - 32,541 32,541 Disposals (9,795) - (9,795) Transfers December ,280, ,181 1,519,296 Depreciation 1 January Charge for year - 15,945 15,945 Disposals December ,945 15,945 Net Book value 1 January ,289, ,640 1,496,550 Net Book value 31 December ,280, ,236 1,503,351 *31 Toad Lane, Rochdale (the Rochdale Pioneers Museum premises). The Rochdale Pioneers Museum at 31 Toad Lane, Rochdale has undergone major development work, adding an access tower and reinstating the second floor along with conservation to the historic building. 6. Heritage Assets 1 January ,121 Additions - Disposals - 31 December , Fixed Asset Investments 1 January ,000,000 Investment Gain 270, December ,270,794 The investments represent funds placed in a Sustainable Diversified Fund with the Royal London Asset Management. 8. Debtors Trade debtors 778 1,032 ROCHDALE project debtors 47, ,943 Accrued Income 37,019 5,428 Prepayments 11,909 11,828 Stock 3,264 1, , , Creditors Trade creditors 108, ,156 Accruals 112,792 79,323 ROCHDALE project creditors 35,964 59,027 Coop Route , ,506 The works were completed in October The Trust also has a 999 year lease on the land that the access tower is sited on. 20 CO-OPERATIVE HERITAGE TRUST ANNUAL REPORT 2013 CO-OPERATIVE HERITAGE TRUST ANNUAL REPORT

12 10. Charitable funds Restricted Funds: Balance 1 January 2013 Incoming Resources Resources Expended Exceptional Item Balance 31 December 2013 Co-operative Group Fund 2,767, ,767,839 Toad Lane Museum Fund 250, ,000 New Pioneers 64,536 62, ,366 Unrestricted Funds: 3,082,375 62, ,145,205 Revenue reserves 420, ,364 (455,995) 270, ,496 Total charitable funds 3,502, ,194 (455,995) 270,794 3,640,701 Sufficient resources are held in an appropriate form to enable the funds to be applied in accordance with any restrictions imposed. Analysis of net assets between funds: Unrestricted Restricted Funds Total Funds Tangible Assets 495,496 1,007,855 1,503,351 Fixed Asset Investments - 2,270,794 2,270,794 Heritage Assets - 1,121 1,121 Current Assets - 124, ,000 Current Liabilities - (258,565) (258,565) 495,496 3,145,205 3,640, Unrestricted funds Balance at 1 January 420,333 - Surplus for year 75, ,333 Movement from Restricted Funds - - Balance at 31 December 495, , Reconciliation of net outgoing resources to net cash outflow from operating activities (Outgoing) / incoming resources before exceptional items (132,801) 452,799 Depreciation 15,945 - Decrease in debtors 29, ,015 Increase / (decrease) in creditors 20,059 (62,943) Interest allocated on funds (62,285) (62,632) Net cash (outflow) from operating activities (129,262) 465,239 Return on Investments and Service of Financing Interest received 62,285 62,632 Capital and Investments Payments to acquire tangible fixed assets (22,747) (943,033) Net Cash Inflow / (Outflow) from Operating Activities (89,724) (415,162) 13. Analysis of Net Funds At 1 January 2013 Cash flows At 31 December 2013 Cash at bank and in hand 113,258 (89,724) 23, Contingent Liabilities and Capital Commitments The Trust has no contingent liabilities or capital commitments as at the balance sheet date. 15. Related Party Transactions The following are related party transactions, as defined by Financial Reporting Standard 8, together with details of notable transactions: a. The Co-operative College The Co-operative College is one of the founding members of the Co-operative Heritage Trust. The College operates, under a management agreement, the National Co-operative Archive and Rochdale Pioneers Museum. The amount payable during the year was 289,464 ( ,376). The amount outstanding at the year end was 69, CO-OPERATIVE HERITAGE TRUST ANNUAL REPORT 2013 CO-OPERATIVE HERITAGE TRUST ANNUAL REPORT

13 The Co-operative Heritage Trust is a registered charity founded by the Co operative Group, Co-operatives UK and the Co-operative College to safeguard the movement s unique and irreplaceable heritage.