YORKSHIRE_ICON_LIMITED - Accounts

The trustees present their report and financial statements for the year ended 29 June 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

The charitable objects are to advance education for public benefit by the erection, preservation and public display of a sculpture in Rotherham as a means of appreciating and to encourage further study or enquiry about the coal and steel industries and its development and importance in the Yorkshire area.

To further develop connections with manufacturers and the technology sector, schools and other centres of learning, to assist in the development of an educational interpretation hub to include the arts and digital media, and to assist in the encouragement of apprenticeships, and provide educational grants and other activities as the trustees in their absolute discretion deem fit.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Yorkshire Icon Limited continues to promote and increase awareness of its aims and objectives but following a challenging trading year the trustees have decided to reduce activities for the time being to focus on encouraging supporters through social media and other publicity instead. The charity has continued to support the community indirectly through the Heart of Steel appeal, set up by the charity in 2014. The Heart of Steel is a fundraising sculpture that engages with and is supported by people of all ages and based at Meadowhall in Sheffield. The Heart has raised almost £700,000 for the British Heart Foundation's heart research campaign so far.

Income in the year was £24,575 (2019: £83,103). Expenditure in the year was £24,733 (2019: £32,401) resulting in net expenditure of £158 for the year (2019: net income of £50,702).

At 29 June 2020, Yorkshire Icon Limited had negative unrestricted funds of £1,740 (2019: negative funds of £1,582). Unrestricted funds excluding fixed assets were negative by £1,840 (2019: negative funds of £3,378).

The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

The Trustees will continue to develop a robust funding strategy with the aim of securing enough money to build the Steel Man, followed by a further funding round in stage 2 to build a visitor centre. A number of conversations are ongoing with potential high net worth individuals and new sponsors.

Yorkshire Icon Limited is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 19 July 2013 as amended by special resolution registered at Companies House on 24 October 2014.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

The appointment of Trustees has been carefully considered and drawn from the local business and academic community. The Trustees recognise the importance of the management of the charity, and that it is the responsibility of the Trustees, who are elected and co-opted under the terms of the trust deed, to act in a professional manner in the best interest of the charity.

The day to day operations are governed by the Trustees. Trustees are also responsible for decision making.

The trustees' report was approved by the Board of Trustees.

I report to the trustees on my examination of the financial statements of Yorkshire Icon Limited (the charity) for the year ended 29 June 2020.

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

the financial statements do not accord with those records; or

the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 29 June 2020.

The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Yorkshire Icon Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is The Gatehouse, Newburgh Works, Bradwell, Hope Valley, S33 9NT.

The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Since the year end the charity has continued to see significant income from the British Heart Foundation that adequately covers the ongoing expenses of the charity.

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in net income/(expenditure), except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in or in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Grants

Sponsorship

Printing, postage, stationery and advertising

Motor and travel

Paypal fees and bank charges

Sundry expenses

Consultancy and legal fees

Computer costs

Donation to British Heart Foundation

Repairs and maintenance

Insurance

Rent and rates

Bookkeeping costs

Historic VAT differences written off

During the year, J E Hughes received remuneration for her administration role totalling £nil (2019: £2,271). As at 30 June 2020, £nil was payable to J E Hughes (2019: £nil).

During the year, motor and travel costs totalling £258 were reimbursed to S A Mehdi (2019: £nil).

The average monthly number of employees during the year was:

During the year the charity entered into the following transactions with related parties:

S A Medhi and J E Hughes, who were trustees during the year, are also directors of Hughes-Medhi Limited (previously Steve Medhi Art Limited). During the year, the company rented out space to Yorkshire Icon Limited for a market rent of £3,400 (2019: £10,200) and charged £22,500 (2019: £7,500) for consultancy fees. An amount of £7,500 (2019: £1,700) was owed to the company as at 29 June 2020. These expenses have been approved by the board of Trustees. S A Medhi and J E Hughes are husband and wife.

The following amounts were outstanding at the reporting end date:

These financial statements are separate charity financial statements for Yorkshire Icon Limited.

Details of the charity's subsidiaries at 29 June 2020 are as follows:

The comparative financial information has been restated to show amounts paid by Yorkshire Man of Steel Limited to Yorkshire Icon Limited in the statement of financial activities. The amounts were previously shown on the balance sheet only and did not reflect the substance of the transaction.

As a result of the restatement, the 2019 statement of financial activities now includes charitable donations within income of £45,002 and the inter-company creditor has been reduced by the same amount.