**Registered number: 2502427 Charity number: 1002373**
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
**REVISED TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2023**
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the Charity, its Trustees and advisers**|1|
|**Trustees' report**|2 – 6|
|**Trustees' responsibilities statement**|7|
|**Annual report**|8 - 18|
|**Independent auditors' report on the financial statements**|19 – 22|
|**Consolidated statement of financial activities**|23|
|**Consolidated income and expenditure account**|24|
|**Consolidated balance sheet**|25 – 26|
|**Charity balance sheet**|27 - 28|
|**Consolidated statement of cash flows**|29|
|**Notes to the financial statements**|30 - 49|
## **STATEMENTS IN RESPECT OF THESE REVISED ACCOUNTS**
- The revised accounts replace the original annual accounts for the year ended 31 December 2023;
- The revised accounts are now the statutory accounts of the Group for that financial year;
- The revised accounts have been prepared as at the date of the original accounts and not as at the date of revision and accordingly do not deal with events between those dates;
- The accounts did not comply with the requirements of the Charities SORP (FRS 102) in terms of the allocation of expenditure; and
- As a consequence of remedying these defects, expenditure on raising funds has reduced to £134k, on charitable activities has increased to £875k and governance costs have reduced to £31k. Designated funds and revaluation reserve have been stated on the Balance Sheet.
**(A company limited by guarantee)**
## **THE MAGDALEN ENVIRONMENTAL TRUST**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023**
|**Trustees**|Gillian Rowe, Chair|
|---|---|
||Martin Biss, Trustee|
||William Davies, Treasurer|
||Rupert Farthing, Trustee|
||Sarah Gleadell, Trustee|
||Hilary Habberfield, Trustee|
||Stephen Miller, Trustee|
||Gill Spence, Trustee|
||Caroline Walker, Trustee|
|**Company registered**||
|**number**|2502427|
|**Charity registered**||
|**number**|1002373|
|**Registered office**|Magdalen Farm|
||Winsham|
||Somerset|
||TA20 4PA|
|**Company secretary**|Gillian Rowe|
|**Chief executive officer**|Giles Aspinall|
|**Independent auditors**|Xeinadin Audit Limited|
||Chartered Accountants|
||Statutory Auditors|
||Wadebridge House|
||16 Wadebridge Square|
||Poundbury|
||Dorchester|
||Dorset|
||DT1 3AQ|
|**Bankers**|Triodos Bank NV|
||Deanery Road|
||Bristol|
||BA1 5AS|
|**Solicitors**|McPhersons|
||The Long Barn|
||Winchester Road|
||King's Somborne|
||Hampshire|
||SO20 6NZ|
1
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023**
The trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 December 2023.
## **Structure, Governance and Management**
The Magdalen Environmental Trust is a company limited by guarantee governed by its Memorandum and Articles of Association dated 16 May 1990 and amended by special resolutions dated 12 June 1990, 22 June 1990 and 22 March 1991, as amended by certificate of incorporation on change of name dated 19/07/2011. It is a registered charity with the Charity Commission.
The directors of the charitable company are its trustees for the purposes of charity law and throughout this report are collectively referred to as trustees. The trustees serving during the year and since the year end are set out on page 1. The liability of the members in the event of the charity being wound up is limited to £1.
The charity’s overall strategic direction and policy decisions are determined by the board of trustees, who meet quarterly. The board delegates the translation of the strategic goals into the achievements of operational aims to the Chief Executive, Giles Aspinall, and staff team, who manage the charity’s resources to achieve its goals most effectively. The Chief Executive reports directly to the board at their meetings, providing up to date reports for the trustees’ scrutiny and query.
Two sub committees, the Finance Advisory Group and the Farm & Land Advisory Group, each including a mixture of trustees and staff, make recommendations and report directly to the board at their meetings.
The pay of key management personnel is set by the Board of Trustees.
## **Legal company structure**
The Magdalen Environmental Trust is a registered charity and a company limited by guarantee. It is the sole owner of two trading subsidiaries, Magdalen Farm Ltd and Magdalen Events Ltd.
The Upper Axe Community Interest Company is a not-for-profit enterprise that, while not owned by the Trust, is effectively 100% controlled by the Trust during the accounting period. This is because the company Directors are The Magdalen Environmental Trust, and Giles Aspinall, the Trust’s Chief Executive Officer. It is deemed possible, perhaps likely, that the Upper Axe CIC will not be wholly controlled by the Trust in the future as its membership and work develop.
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## **THE MAGDALEN ENVIRONMENTAL TRUST**
## **(A company limited by guarantee)**
## **Future plans**
The charity and its subsidiaries continue to follow the objectives for “Quality and Resilience” as specified in the Strategic Plan.
No aspect of our work is excluded from development and improvement, but in particular, specific attention is to be given next year to:
- Nature conservation and habitat creation on Magdalen Farm
- The successful launch and delivery of the new Just Act Natural strategic programme for families with a disabled child
- The continuing delivery of other existing programmes
- The consideration of accommodation and visitor facilities on site, where they can be enhanced and increased, and what benefits that would bring.
## **Financial review**
This is the first set of consolidated group accounts for 10 years, reflecting the growth in income over the £1million threshold for the Trust and its subsidiaries.
Significant jumps in income and expenditure occur in funding for nature conservation. 2023 is the first year of two Defra-funded, 2-year investment programmes in habitat creation; the Countryside Stewardship agreement on Magdalen Farm, and the Development Phase of the Axe Landscape Recovery project. These projects, each of them significant in relation to Magdalen’s operations budget, have started simultaneously, and are scheduled to conclude at the end of 2024.
While the Trust is proud to host and deliver these works, which contribute to charitable aims and are vital in their own right for environmental gain, they are separate from the environmental education and care farming that is traditionally the Trust’s core function. Accounting notes 5, 15 and 21 illustrate that the increase in income for the charity’s core work with people, (labelled education and learning in note 5), is proportionate to the increased numbers of beneficiaries, and similar to the increase in 2022. It represents a position of stability and incremental improvement.
The Magdalen Environmental Trust Group made a surplus of £238,239 during the year, due in large part to the receipt of nature conservation grants that are carried into next year as restricted funds. Despite significant increases in income and expenditure in 2023, the charity’s available funds and resources for its core work with people remain effectively unchanged from one year to the next.
This year’s accounts, unlike those of previous years, contain income and expenditure for the trading subsidiary Magdalen Farm ltd, and the Upper Axe C.I.C. This Community Interest Company was set up specifically to run the aforementioned Axe Landscape Recovery project, and associated works. Because the C.I.C. is currently wholly controlled by The Magdalen Environmental Trust (including Trustees and employees), its trading is consolidated within these accounts. In the future, it is intended that other stakeholders will become members and directors of the Company, at which time the C.I.C. will no longer be wholly controlled by the Trust, and so its accounts will no longer form part of the Magdalen Environmental Trust’s consolidation.
## **Reserves policy**
The Trust’s Reserves Policy is specified in the Financial Policy as follows:
_It is our responsibility to safeguard the financial future of the charity. To achieve this we will maintain unrestricted free reserves approximately equivalent to three months operating costs, including salaries, unless these reserves must be drawn upon for pressing needs to further the charity’s aims and growth._
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## **THE MAGDALEN ENVIRONMENTAL TRUST**
## **(A company limited by guarantee)**
The Group has reserves of £3.0m. After excluding fixed assets and long-term loans held by the Charity, amounts owned by trading subsidiaries and amounts restricted for spending on specific ongoing projects, the unrestricted funds which are available to the Charity meet this definition of approximately 3 months of operating costs, though the Trustees have exercised their right to designate the bulk of these funds for capital works to further the charity’s aims and growth, as per the policy. The Trust’s cash balance is bolstered by borrowed funds that will be in the Trust’s best interest to invest or return once they have been used to manage cash flow through 2024 and the significant investments in habitat creation in that year.
## **Governance**
In 2023 we have:
- Continued to deliver the charity’s aims and extended our offer to various groups
- Made considerable investments on the estate at Magdalen Farm, for the greater long term benefit of wildlife
- Supported the growth and early success of the Upper Axe CIC, and the Axe Landscape Recovery project that is managed and delivered locally, for the benefit of wildlife and the local farming community
- Re-costed all our operations and adjusted pricing (up and down) to assure full cost recovery, and notfor-profit operations.
## **Appointment of trustees, induction and training**
New trustees can put themselves forward for election or can be proposed by any member of the existing board or by the Chief Executive. If the board accepts the nomination, a potential trustee is invited to attend one of their quarterly meetings as a guest, prior to accepting appointment to it. At the end of the meeting, if the board and candidate are in agreement, the potential candidate is formally appointed as a trustee.
Trustees are chosen for their professional abilities and experience and commitment to the Trust’s aims.
The Trust’s DEED provides for a minimum of three trustees, but there is no maximum. One third of the trustees shall retire by rotation annually at the annual general meeting, being those who have held office the longest since their last appointment or reappointment, but they can apply for re-election. The chairman is appointed by the board and serves for a period of one year, after which they may put themselves forward for re-election.
The Chief Executive oversees the management of the Trust, supported by the Senior Management Team.
## **Objectives and activities**
## **Aims**
Our visitors feel the connection between their wellbeing and nature
We all consider and understand our environmental choices
The recovery of wildlife
Inclusion and inspiration for all
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## **THE MAGDALEN ENVIRONMENTAL TRUST**
## **(A company limited by guarantee)**
Through our 132 acres of diverse habitats, residential accommodation, interpretation materials, workshops and courses, the foundation offers visitors the opportunity to develop an understanding of sustainability, their environment and a greater responsibility towards it. The charity aims to make learning an adventure, through hands-on inspirational activities and imaginative teaching styles and resources. We take an holistic approach to our work, integrating ideas about education and sustainability and supporting best environmental practice at all times.
In pursuance of its charitable objectives the charity provides a range of residential and one-day educational activities, courses and services aimed at school groups, other children and adults seeking environmental education, and people whose wellbeing can be improved by spending productive time in nature. The 132 acre farm with its diverse environment provides the setting for many of our activities and courses.
These services can be grouped together as:
- Environmental education for children and adults
- Care Farming – improved quality of life and personal development
## **Risk Management**
In line with our health and safety policy, risks stemming from project activities, management and facilities are subjected to risk assessments, updated annually. This is overseen by our Health & Safety Officer (Centre Manager), with the support of the Chief Executive. Trained staff update the risk assessments relevant to their roles.
All our activity risk assessments and health and safety procedures are documented and discussed at regular staff and trustees meetings.
To manage financial risks, our Treasurer chairs the Finance Advisory Group, analysing data which we have restructured for maximum transparency. Financial risks beyond the immediate control of the charity are covered by Contingent Liability Insurance policies.
## **Volunteers**
The charity greatly benefits from the ongoing involvement and commitment by volunteers, whose contribution is hugely appreciated.
We would like to thank
- Volunteers from the local community, who have tirelessly given their time and effort for the improvement of the quality of service we provide.
- Volunteers from across the world who have stayed in our accommodation for weeks or months, contributing both skills and strong backs to work on site
- Employee Volunteers from the private sector, who contribute enormous volumes of work condensed into single, very exciting days.
Without all of these volunteers, Magdalen would not be so able to meet the needs of schools and communities, or support so many wild plants and animals.
## **Public Benefit**
It can be seen from our achievements detailed in this report that the charity has complied with section 17(5) of the 2011 Charities Act to have due regard to guidance published by the Charity Commission in respect of public
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## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
benefit.
As well as being a leading provider of environmental education, Magdalen is a prominent member of Social Farms and Gardens, and is one of the foremost care farms in Britain.
## **Investment powers and policy**
Under the Memorandum and Articles of Association, the charity has the power to invest in any way consistent with the aims and objects of the charity.
## **Fundraising standards information**
The Trust does not carry out significant fundraising activities directly to the public.
## **Trustees**
The trustees who served during the year were:
Gillian Rowe, Chair Martin Biss, Trustee William Davies, Treasurer Rupert Farthing, Trustee Sarah Gleadell, Trustee Hilary Habberfield, Trustee Stephen Miller, Trustee Gill Spence, Trustee Robert Shearer, Trustee (resigned 14 October 2024) Caroline Walker, Trustee
## **Small Company**
This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
## 04 Apr 2025
Approved by the Trustees on ………………………………………………………
and signed on their behalf by:
……………………………………………..............
## **William Davies**
Trustee
6
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023**
The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, 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 Group will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
- there is no relevant audit information of which the company’s auditors are unaware; and
- the trustees have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.
Approved by order of the members of the board of Trustees on:
04 Apr 2025
………………………………………………………
and signed on their behalf by:
## [bbafo
……………………………………………..............
## **William Davies**
Trustee
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## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023**
## **Outcomes for People and Outcomes for Nature**
## **The annual report and accounts look different this year.**
2023 has been an amazing year at Magdalen – another huge year for environmental education and respite / therapeutic visits for people from all walks of life, maintaining last year’s record-breaking numbers of beneficiaries, and also the start of two long term nature conservation initiatives that both dwarf anything we have ever done to date.
The changes have been so profound, and so encouraging for the future, that those changes are reflected in how we present our annual report and accounts. We are specifically segregating Outcomes for People from Outcomes for Nature. In practice, this is not a clean separation as there is so much cross-over in our work. For instance, the flagship Environmental education programme is listed in Outcomes for People, though obviously we expect long term environmental benefits through behaviour change to be a result.
This year, our accounts have been subject to audit, rather than independent examination. This is because while financial turnover for Outcomes for People remains stable, but the investment in Outcomes for Nature has increased five-fold, lifting the charity (and the CIC it controls) over the £1million threshold.
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em
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## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **Outcomes for People**
When it comes to our work with people, if you think of this year as being similar to last, you won’t go far wrong.
It has been another bumper year for our work with people, proving that the previous year was not a blip, but a step change in our provision.
## Total numbers of People engaged with the charity
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6000
5000
4000
3000
2000
1000
0
2019 2021 2022 2023
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This chart shows the total number of people whom we have engaged with (in person and on site, not including on-line engagement).
The year 2020 is not included as our work was so significantly curtailed and altered by meeting the community’s needs in the Covid Pandemic. The chart shows a dip in the wake of the Pandemic but a significant and sustained increase over pre-covid numbers. 2019 was, at the time, a record breaking year.
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## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
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People living with disabilites or in signifcant
disadvantage
3000
2500
2000
1500
1000
500
0
2019 2021 2022 2023
**----- End of picture text -----**
These charts demonstrate that, while the volume of the charity’s work with people has remained steady, the needs of the groups visiting us this year have shifted in emphasis, with an even greater focus on meeting the emotional, psychological and respite needs of people who live with disabilities or in significant disadvantage.
People coming to us for Environmental Educaton
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5000
4000
3000
2000
1000
0
2019 2021 2022 2023
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## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
**----- Start of picture text -----**
– - -
Overall Busyness person days and person nights
15000
10000
5000
0
2019 2021 2022 2023
| Person-days | Person-nights
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This chart shows something different to the previous ones, as it gives an indication of the increase in overall engagement, rather than the more blunt tool of looking at numbers of people. The chart shows that while there is fluctuation between this year and last year (fewer day-visits, longer stays for those using the residential facilities), performance remains consistently greater than before the Pandemic.
## **Environmental Education for primary school children**
This is core to the Magdalen mission. We are proud to have worked with schools from across the breadth of the country, serving
children both from affluent and deprived communities, and everywhere in between. We have welcomed back old friends, and made some great new partnerships. The benefits to the children are multi-faceted, including personal development, confidence building, new experiences and a greater understanding and appreciation of where food comes from, and how that interacts with the natural world. Children are the decision makers of the future, and it is crucial they should be well informed about how their choices affect the natural world. It is essential they are given the chance to fall in love with it.
## **Experiential learning outside the classroom**
This year, we have focused our Forest School Transitions programme on children living in pressured conditions in Bridgwater, an acute hotspot of socio-economic disadvantage in Somerset.
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## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
We have also provided regular learning opportunities for individual children who cannot successfully attend school, and for those who need more variety of learning environments in their week than a school can provide.
## **Outdoor Learning for some of England’s most deprived children**
Once again, and thanks to the generosity of our funders, we have worked with schools serving communities experiencing acute deprivation. Children attending these schools tend to live in effective isolation from nature due to a lack of appropriate green open space in their home communities. No child should grow up without nature, and we are proud to help redress the balance for as many children as we can. The impact on these children of a stay at Magdalen Farm is profound.
## **Children with disabilities, and their families**
This has been the final year of our long term funding from the National Lottery Community Fund, providing a programme of opportunities for families with children who are disabled. It has been a high success and a mainstay of Magdalen for many years. We are applying to continue and expand the work in future!
In our wider work, we have fostered new partnerships right across the country, including families whose children have Down’s Syndrome from East Anglia.
## " (aa **Growing independence** ~~a~~ =
The trusting, supportive relationships we have built over the years with children who have a disability give us a unique opportunity to give them a better chance of semi-independence as adults. The Growing Independence courses we run help them learn the basics – cooking, cleaning and looking after themselves. The young people learn from trusted professionals without embarrassment, more comfortably and more effectively than they might learn from their parents.
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## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **Trafficked children and unaccompanied young asylum seekers**
Magdalen's role is to provide meaningful interventions through which children can express themselves, feel valued and useful, and can forge friendships and a peer-support network. Unaccompanied trafficked children feel welcome here, and feel accepted, which can have a profound psychological value to them.
We are very pleased to have continued our partnerships with both ICN and the British Refugee Council. Every time we welcome trafficked children on site, we are amazed by the resilience and warmth they show to each other, and to a wider world that has been so unkind to them.
## **Refugee families**
For several years, we have been pleased to offer opportunities to families who have fled persecution in Syria and Afghanistan.
Perhaps unsurprisingly, this has been the biggest year so far for our work with refugee families. As well as supporting families whose lives have been turned upside down by the Taliban, we have been pleased to offer opportunities throughout the year for refugees from Ukraine, in order to reduce social isolation and relieve pressure in homes shared with Sponsor families. The humanitarian response to the Ukraine war from our region, particularly from Somerset, has been heart warming, and we are proud to have played our part.
## **Adults with, and recovering from mental illness**
This year, we have been pleased to provide a programme of weekly session for local people who experience mental illness, working with the WATCH group.
We were also delighted to engage with a new London-based partner, CHT (Community, Housing and Therapy), who spent a few days with us on a residential stay. We are pleased to say that we will work with both again next year, as well as our old friends at the Mosaic Clubhouse.
13
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **Young Carers and children growing up in care**
Young carers are children with inappropriate caring responsibilities at home. Children growing up in local authority care all have to manage the emotional transition away from a “normal” family life.
They face common challenges as they grow into adulthood. They come to us to improve:
5~
- Social skills and communication with others
- Emotional resilience
- Physical health
## **Families overcoming their problems**
We have been very happy to work with Dorset Council to help parents give their children opportunities that would otherwise be very difficult to provide.
Some families are affected by low incomes and food poverty, others by social and circumstantial pressures that make life very difficult.
We are proud to provide important interventions that contribute to wider programmes of support.
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## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **Outcomes for Nature**
## **On Magdalen Farm**
Magdalen Farm is an oasis of unimproved neutral grassland (now one of England’s rarest habitats), interspersed with a mosaic of woodland, wetland, hedgerows and scrub. This diversity makes it a fabulous resource for wildlife.
100 acres, including a Site of Nature Conservation Interest, are now managed with the recovery of wildlife as the overriding objective.
The conservation strategy for Magdalen Farm is defined and described by two documents:
- The Bioresilience Framework, which gives details of the overall strategy, including the new conservation grazing regime and pulse- grazing zones.
- The Higher Tier Countryside Stewardship Agreement
We entered into the Higher Tier Countryside Stewardship Agreement on January 1[st] , so this has been our first year in the scheme. A great deal has been done in this first year to restructure the farm for conservation grazing, and for habitat development. Some of the most visual and appealing changes are the 63 semi-mature trees that have been planted throughout the mid-part of the site, protected from stock and deer by parkland tree guards. A further 87 will be planted In 2024. Elsewhere, fences have been erected, dismantled and re-routed, deer enclosures established, and whips planted by the hundred. Nest boxes have been built by our visitors and staff team, for bats, dormice and kestrels.
Speaking of kestrels… We have already seen the first impacts of the change in land use. Kestrels, which have been absent for a decade, now hunt daily over the tall grasses, predating on the greatly increased small mammal population.
Speaking of small mammals…
We are delighted to welcome back the water vole! These secretive animals were last identified for certain on site 12 years ago. We have seen signs they might be here over the years, but not enough to be certain. This summer, a watervole sniffer dog confirmed our suspicions with a range of definite finds of water vole both in the river channel, and in our water vole ponds, dug 13 years ago specifically to provide habitat for them. The surveys of 2022 missed these water voles, so have they come to live here over the last year, or were they just keeping a low profile? Who knows?
15
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **Landscape Recovery across the River Axe Catchment**
2023 saw the start of the first 22 Landscape Recovery projects across England. One of them is based right here in the river Axe, and Magdalen is knee deep in it.
## The relationship between Magdalen and the Landscape Recovery Project:
Working with partners in the conservation sector, we secured a successful Landscape Recovery bid to Defra in 2022. Magdalen was the lead partner. Once funds were secured, we created a not for profit company to run the project, called the Upper Axe CIC. The CIC, and therefore the Landscape Recovery project, are based at Magdalen Farm. There are co-staffing arrangements in place, and we are very proud to host and support this extraordinary initiative. Magdalen Farm is one of 32 holdings that are a part of the project.
## What is the Landscape Recovery project for?
The River Axe used to be a very special river.
It is one of very few English Rivers to have a SAC (Special Area of Conservation) and SSSI (Site of Special Scientific Interest).
The name ‘axe’ comes from a Celtic word, meaning abundant in fish – a name that nowadays seems like a sick joke to anyone familiar with the river whose salmon population is almost gone, and whose trout population is propped up by the tireless work of community volunteers hatching and rearing young fish, and introducing them to the river at the end of the alevin stage.
The river flows a chocolate brown for much of the year, laden with silt, agricultural runoff and at times bloated with algal blooms.
The channel has become deeply incised into the earth, causing the rupture of the peri-glacial moraine riverbed in places, and undermining the soft loamy banks, which form vertical cliffs 2 metres high that collapse in times of spate. Marginal habitats are hard to find.
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## **THE MAGDALEN ENVIRONMENTAL TRUST**
## **(A company limited by guarantee)**
As farming is the overwhelming land-use in the catchment, it falls on farmers to address these problems – noone else can do it. The Landscape Recovery project works with famers to help them find solutions to environmental problems. It also addresses the habitat loss and geomorphological problems in the channels of the Axe and its tributaries with a series of river restoration interventions. The experimental work carried out here at Magdalen Farm in 2021 is an important piece of learning, informing how the project can best be carried out.
The project is still in its two-year Development Phase.
So far, as well as a series of works being done behind the scenes,
- 32 farmers and landowners have engaged, and chosen to remain engaged in the project.
- We have commissioned Farm Plans on the key holdings in the project area, to help us establish what will work best on each farm, and throughout the valley, to benefit nature.
- We have had 500+ hectares of land adjacent to the watercourses ecologically surveyed
- We have reassessed the scale of the project needed to truly restore the Axe and its tributaries at a scale that makes a fundamental difference to the people who love it, and to the wildlife that depends on it, and we are in conversation with Defra about just how big this thing needs to get before we can truly say we have fixed the Axe.
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**(A company limited by guarantee)**
## **THE MAGDALEN ENVIRONMENTAL TRUST**
Why is the Landscape Recovery Project included in these consolidated accounts?
We are a partner in the project, and the project’s guarantor, but as the project is run by the Upper Axe CIC, which is not owned by us or anyone else, why are the CIC’s accounts included here?
Think of Magdalen being the parent in this relationship. The Upper Axe CIC will grow and thrive and do amazing things, but it is now in its infancy. Magdalen’s role is to provide stability and security to this new company, and to lend expertise and experience as well as physical space.
At present, the governance of the CIC is wholly controlled by Magdalen, and so, (although the CIC is not an owned subsidiary), the SORP requires that the CIC’s accounts be included in Magdalen's consolidated accounts.
In the future it may be appropriate to increase the number of Directors on the company’s Board in order to ensure the continued investment and involvement of key stakeholders. Should that happen, the company may no longer be wholly or majority controlled by Magdalen, and so the company’s income and expenditure will no longer form part of the consolidated Magdalen accounts. When, if, this happens, the apparent turnover in future Magdalen accounts will drop suddenly, just as it has risen so suddenly this year, but that will have no bearing on our core operations.
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## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MAGDALEN ENVIRONMENTAL TRUST**
## **Opinion**
We have audited the revised financial statements of The Magdalen Environmental Trust (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated statement of financial activities, the Consolidated income and expenditure account, the Consolidated balance sheet, the Charity balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. These revised financial statements replace the original financial statements approved by the directors on 28 October 2024. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). The revised financial statements have been prepared under the Companies (Revision of Defective Accounts and Reports) Regulations 2008 and accordingly do not take account of events which have taken place after the date the original financial statements were approved.
In our opinion the revised financial statements:
- give a true and fair view, seen as at the date the original financial statements were approved, of the state of the Group's and of the parent charitable company's affairs as at 31 December 2023 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice seen as at the date the original financial statements were approved; and
- have been prepared in accordance with the requirements of the Companies Act 2006 as they have effect under the Companies (Revision of Defective Accounts and Reports) Regulations 2008.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the revised financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the revised financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Emphasis of matter**
We draw attention to note 30 to these revised financial statements which describes the need for revision of the Statement of Financial Activities and associated notes to correctly show expenditure split between costs of raising funds, cost of charitable activities and governance costs. The Balance Sheet has been revised to show designated funds and the revaluation reserve. The original financial statements were approved on 28 October 2024 and our previous audit report was signed on that date. We have not performed a subsequent events review for the period from the date of the previous auditor’s report to the date of this report. Our opinion is not modified in this respect.
## **Conclusions relating to going concern**
We have nothing to report in respect of the following matters in relation to which ISAs (UK) require us to report to you where:
- the trustees’ use of the going concern basis of accounting in the preparation of the revised financial statements is not appropriate; or
- the trustees have not disclosed in the revised financial statements any identified material uncertainties that may cast significant doubt on the Group's or the parent charitable company's ability to adopt the going concern basis of accounting for a period of at least twelve months from the date when the original financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
19
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MAGDALEN ENVIRONMENTAL TRUST (CONTINUED)**
## **Other information**
The other information comprises the information included in the Annual report other than the revised financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the revised financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the revised financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the revised financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinion on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees' report for the financial year for which the revised financial statements are prepared is consistent with the revised financial statements.
- the Trustees' report has been prepared in accordance with applicable legal requirements.
In our opinion, the original financial statements for the year ended 31 December 2023 failed to comply with the requirements of the Companies Act 2006 in the respects identified by the directors in note 30 to the revised financial statements.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
- the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company revised financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the Trustees were not entitled to prepare the revised financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a Strategic report.
20
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MAGDALEN ENVIRONMENTAL TRUST (CONTINUED)**
## **Responsibilities of trustees**
As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the revised financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of revised financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the revised financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditors' responsibilities for the audit of the revised financial statements**
Our objectives are to obtain reasonable assurance about whether the revised financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these revised financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We assessed the risk of material misstatement due to non-compliance with laws and regulations by:
- Obtaining an understanding of the legal and regulatory frameworks that are applicable to the Group and how it complies with those through enquires of management and those charged with governance. Laws and regulations which make have a direct material effect on the revised financial statements include the Companies Act 2006 and the Charity Act 2011. Other laws and regulations which may have a material effect on the revised financial statements include safeguarding, data protection, agricultural and health and safety laws; and
- Communicating within the audit team and maintaining professional scepticism.
Specifically in respect of fraud we discussed with those charged with governance areas in which the Group was susceptible to fraud and whether there were an instances of known, suspected or alleged fraud. We also assessed the ability of internal controls to mitigate the risk of fraud and where internal controls were lacking we performed additional audit procedures.
We assessed the risk of non-compliance with laws and regulations by:
- Making enquiries of management and those charged with governance concerning actual and potential
21
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MAGDALEN ENVIRONMENTAL TRUST (CONTINUED)**
## litigation or claims;
- Reading meeting minutes for evidence of discussions which may indicate potential litigation and claims;
- • Reviewing the company's records for evidence of legal costs which may indicate non-compliance with laws and regulations; and
- Requesting sight of any correspondence from regulators.
To address the fraud risk of management override of controls, we:
- Tested the validity of journal entries;
- Tested accounting estimates for evidence of potential bias;
- Performed analytical procedures to identify any unusual relationships;
- Sought explanations and evidence for any transactions outside the normal course of business; and
- Assessed the appropriateness of accounting policies, including in respect of revenue recognition, bearing in mind the specific requirements of the Charities SORP in respect of grant income.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the revised financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the revised financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the revised financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
We are also required to report whether in our opinion the original financial statements failed to comply with the requirements of the Companies Act 2006 in the respects identified by the trustees. The audit of revised financial statements includes the performance of procedures to assess whether the revisions made by the trustees are appropriate and have been properly made.
## **Other matters**
The comparative information in the revised financial statements is derived from the prior year financial statements of the charitable company which were not audited.
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with the Companies (Revision of Defective Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
**Mr P A Cattermole FCA (Senior statutory auditor)**
for and on behalf of
## **Xeinadin Audit Limited**
Chartered Accountants and Statutory Auditors
Wadebridge House, 16 Wadebridge Square, Poundbury, Dorchester, Dorset, DT1 3AQ Date: 04 Apr 2025
22
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023**
|**Note**
**Income and**
**endowments from:**
Donations and
legacies
4
Charitable activities
5
Other trading
activities
6
Investments
7
**Total income and**
**endowments**
**Expenditure on:**
Raising funds
8
Charitable activities
9
Governance costs
10
**Total expenditure**
**Net movement in**
**funds**
**Reconciliation of**
**funds:**
Total funds brought
forward
**Total funds carried**
**forward**|**Unrestricted**
**funds**
**2023**
**£**
**2,229**
**342,219**
**69,929**
**3,977**
|**Restricted**
**funds**
**2023**
**£**
**-**
**476,573**
**384,266**
**-**|**Endowment**
**funds**
**2023**
**£**
**-**
**-**
**-**
**-**|**Total**
**funds**
**2023**
**£**
**2,229**
**818,792**
**454,195**
**3,977**
|_Total_
_funds_
_2022_
_£_
_72_
_615,025_
_82,399_
_1,031_
_698,527_
_130,552_
_594,724_
_9,665_
_734,941_
_(36,414)_
_2,772,228_
_2,735,814_|
|---|---|---|---|---|---|
||**418,354**|**860,839**|
**-**|**1,279,193**||
||
**134,006**
**251,278**
**31,690**
|
**-**
**623,980**
**-**|
**-**
**-**
**-**|
**134,006**
**875,258**
**31,690**
||
||**416,974**|**623,980**|
**-**|**1,040,954**||
||**1,380**|**236,859**|
**-**|
**238,239**||
||
**2,703,237**
|
**32,577**|
**-**|
**2,735,814**
||
||**2,704,617**|**269,436**|
**-**|
**2,974,053**||
The Consolidated statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 30 to 49 form part of these financial statements.
23
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023**
|**Note**
**Gross income in the reporting period**
Less: Total expenditure
**Net income/(expenditure) for the reporting period**
The notes on pages 30 to 49 form part of these financial statements.|**Total funds**
**2023**
**£**
**1,279,193**
**(1,040,954)**
|_Total funds_
_2022_
_£_
_698,527_
_(734,941)_
_(36,414)_|
|---|---|---|
||**238,239**||
||||
24
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2023**
|**Note**
**Fixed assets**
Tangible assets
14
**Current assets**
Stocks
16
Debtors
17
Cash at bank and in hand
25
Creditors: amounts falling due within one
year
18
**Net current assets**
**Total assets less current liabilities**
Creditors: amounts falling due after more
than one year
19
**Net assets excluding pension asset**
**Total net assets**
**Charity funds**
Designated funds
21
Unrestricted funds
21
Revaluation reserve
21
Restricted funds
21
**Total funds**|**18,490**
**233,521**
**780,675**|**2023**
**£**
**2,676,861**
**2,676,861**
_30,133_
_72,703_
_346,176_
_449,012_
_(196,883)_
**591,102**
**3,267,963**
**(293,910)**
**2,974,053**
**2,974,053**
**691,619**
**212,805**
**1,800,193**
**269,436**
**2,974,053**|_2022_
_£_
_2,693,608_
_2,693,608_
_252,129_
_2,945,737_
_(209,923)_
_2,735,814_
_2,735,814_
_780,968_
_122,076_
_1,800,193_
_32,577_
_2,735,814_|
|---|---|---|---|
||**1,032,686**
**(441,584)**|||
|||||
25
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2023**
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees on:
04 Apr 2025
………………………………………………………
and signed on their behalf by:
……………………………………………..............
**William Davies** Trustee
The notes on pages 30 to 49 form part of these financial statements.
26
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **CHARITY BALANCE SHEET AS AT 31 DECEMBER 2023**
|**Note**
**Fixed assets**
Tangible assets
14
Investments
15
**Current assets**
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
**Net current assets**
**Total assets less current liabilities**
Creditors: amounts falling due after more
than one year
19
**Net assets excluding pension asset**
**Total net assets**
**Charity funds**
Designated funds
21
Unrestricted funds
21
Revaluation reserve
21
Restricted funds
21
**Total funds**|**6,539**
**204,701**
**359,646**|**2023**
**£**
**2,635,722**
**100**
**2,635,822**
_7,453_
_115,620_
_293,948_
_417,021_
_(162,890)_
**333,561**
**2,969,383**
**(271,487)**
**2,697,896**
**2,697,896**
**691,619**
**189,131**
**1,800,193**
**16,953**
**2,697,896**|_As restated_
_2022_
_£_
_2,641,084_
_100_
_2,641,184_
_254,131_
_2,895,315_
_(174,356)_
_2,720,959_
_2,720,959_
_780,968_
_107,221_
_1,800,193_
_32,577_
_2,720,959_|
|---|---|---|---|
||**570,886**
**(237,325)**|||
|||||
27
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **CHARITY BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2023**
The Charity's net movement in funds for the year was _£_ (23,063) _(2022 - £51,009)_ .
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees on:
## 04 Apr 2025
………………………………………………………
and signed on their behalf by:
……………………………………………..............
**William Davies** Trustee
The notes on pages 30 to 49 form part of these financial statements.
28
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023**
|**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
Dividends, interests and rents from investments
Purchase of tangible fixed assets
**Net cash provided by/(used in) investing activities**
**Cash flows from financing activities**
Cash inflows from new borrowing
Repayments of borrowing
**Net cash provided by/(used in) financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
The notes on pages 30 to 49 form part of these financial statements.|**2023**
**£**
**340,502**
|_2022_
_£_
_14,018_
_1,031_
_(5,627)_
**(4,596)**
_-_
_(18,140)_
**(18,140)**
**(8,718)**
_354,894_
_346,176_|
|---|---|---|
||**3,977**
**(1,118)**
||
||**2,859**
||
||**114,750**
**(23,612)**
||
||**91,138**
||
||**434,499**
**346,176**
||
||**780,675**||
||||
29
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **1. General information**
The Magdalen Environmental Trust is a charitable company incorporated in England and Wales. The registered office is The Magdalen Environmental Trust, Magdalen Farm, Winsham, Somerset, TA20 4PA. The Charity's registration number is 1002373.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Magdalen Environmental Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Charity and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.
The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.
## **2.2 Going concern**
The Trustees have considered the financial position of the Group and have assessed both financial and operational risk. They are of the opinion that the Group has sufficient financial resources to continue to operate as a going concern for the foreseeable future. Accordingly, the Trustees continue to adopt the going concern basis in the preparation of the financial statements.
## **2.3 Income**
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
30
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **2. Accounting policies (Continued)**
## **2.4 Expenditure**
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. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
## **2.5 Government grants**
Government grants are recognised using the performance model. A grant that does not impose specified future performance-related conditions is recognised in income when the grant proceeds are received or receivable. A grant that imposes future performance-related conditions is recognised only when the performance-related conditions are satisfied. Grants received before the performance-related conditions are satisfied are recognised as a liability.
## **2.6 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## **2.7 Taxation**
The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
31
## **THE MAGDALEN ENVIRONMENTAL TRUST**
## **(A company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **2. Accounting policies (Continued)**
## **2.8 Tangible fixed assets and depreciation**
Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Freehold property is initially recognised at cost. After recognition, under the revaluation model, tangible fixed assets whose fair value can be measured reliably shall be carried at a revalued amount, being their fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting date.
Fair values are determined from market-based evidence by appraisal that is normally undertaken by professionally qualified valuers. If there is no market-based evidence of fair value because of the specialised nature of the tangible fixed asset and it is rarely sold, except as part of a contributing business, a Charity may need to estimate fair value using an income or depreciated replacement cost approach.
Gains and losses on revaluation are recognised in the Consolidated statement of financial activities, with a separate revaluation reserve being shown in the Statement of funds note.
Other tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
At each reporting date the Charity assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.
Depreciation is provided on the following bases:
|Freehold property|- not depreciated|
|---|---|
|Plant and machinery|- straight line over 5-15 years|
|Fixtures and fittings|- straight line over 3-10 years or reducing|
||balance at 25%|
|Office equipment|- straight line over 3 years|
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
32
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **2. Accounting policies (Continued)**
## **2.9 Investments**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.
Investments in subsidiaries are valued at cost less provision for impairment.
## **2.10 Stocks and work in progress**
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
## **2.11 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.12 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **2.13 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.
## **2.14 Financial instruments**
The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
33
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **2. Accounting policies (Continued)**
## **2.15 Operating leases**
Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight-line basis over the lease term.
## **2.16 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
## **3. Critical accounting estimates and areas of judgement**
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions arise on the valuation of freehold property. Further
information is provided in Note 14.
The Charity makes judgements in its recognition of income, particularly in respect of grants where the wording of grant agreements needs to be interpreted to conclude whether accompanying narrative constitutes performance-related conditions, restrictions, or neither.
## **4. Income from donations and legacies**
|Donations|**Unrestricted**
**funds**
**2023**
**£**
2,229|**Total**
**funds**
**2023**
_As restated_
_Total_
_funds_
_2022_
**£**
_£_
2,229
72|
|---|---|---|
34
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **5. Income from charitable activities**
|Education and learning
Environmental and farming
_Total 2022 as restated_|**Unrestricted**
**funds**
**2023**
**£**
342,219
-|**Restricted**
**funds**
**2023**
**£**
225,492
251,081|**Total**
**funds**
**2023**
**£**
**567,711**
**251,081**
|_As restated_
_Total_
_funds_
_2022_
_£_
_535,373_
_79,652_
_615,025_|
|---|---|---|---|---|
||342,219|
476,573|
**818,792**||
||
|
|
||
||_326,680_|
_288,345_|
_615,025_||
Restricted funds comprises income received from grants.
## **6. Income from other trading activities**
## **Income from non charitable trading activities**
|Conference and party functions
Venue hire
Tuck shop income
Other income
Farm produce and subsidies
Upper Axe CIC – grant income
_Total 2022 as restated_|**Unrestricted**
**funds**
**2023**
**£**
14,846
26,512
2,701
15,244
10,626
-|**Restricted**
**funds**
**2023**
**£**
-
-
-
-
-
384,266|**Total**
**funds**
**2023**
**£**
**14,846**
**26,512**
**2,701**
**15,244**
**10,626**
**384,266**
|_As restated_
_Total_
_funds_
_2022_
_£_
_10,527_
_34,092_
_3,517_
_13,016_
_21,247_
_-_
_82,399_|
|---|---|---|---|---|
||69,929|
384,266|
**454,195**||
||
|
|
||
||
_82,399_|
_-_|_82,399_||
35
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
Upper Axe CIC includes income from this limited by guarantee subsidiary. It is a subsidiary because the charity and its chief executive are its 2 guarantors and therefore its income is considered to be non charitable.
## **7. Investment income**
|Investment income - local cash|**Unrestricted**
**funds**
**2023**
**£**
3,977|**Total**
**funds**
**2023**
**£**
**3,977**|_Total_
_funds_
_2022_
_£_
_1,031_|
|---|---|---|---|
## **8. Expenditure on generating funds**
## **Costs of raising voluntary income**
|Salaries
Other costs
Cost of running farm
Support costs|**Total**
**funds**
**2023**
**£**
**28,168**
**697**
**27,119**
**78,022**
|_As restated_
_Total_
_funds_
_2022_
_£_
_25,514_
_2,161_
_23,824_
_79,053_
_130,552_|
|---|---|---|
||**134,006**||
36
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **9. Expenditure on charitable activities**
## **Education and learning, environmental and farming**
|Salaries
Course costs, training and educational material
Travel costs
Maintenance costs
Other costs
Direct charitable expenditure
Support costs
**Governance**
Salaries
Audit, accountancy and bookkeeping
Travel costs
Support costs|**Total**
**funds**
**2023**
**£**
**214,361**
**11,932**
**1,144**
**514**
**1,116**
**217,164**
**429,027**
|_As restated_
_Total_
_funds_
_2022_
_£_
_197,463_
_17,321_
_1,961_
_-_
_783_
_41,913_
_335,283_
_594,724_
_As restated_
_Total_
_funds_
_2022_
_£_
_6,464_
_2,760_
_-_
_441_
_9,665_|
|---|---|---|
||**875.258**||
||**Total**
**funds**
**2023**
**£**
**6,839**
**24,467**
**109**
**275**
||
||**31,690**||
Included in notes 8 - 9 is a total of £623,980 relating to restricted funds.
37
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **10. Allocation of support costs**
|**Apportionment method**
**Generating funds**
**£**
Salaries
Time spent
8,320
Staff costs
Staffing
4,311
Maintenance
Usage
17,815
Computer consumables and maintenance
Staffing
559
Food
Usage
1,963
Cleaning
Usage
528
Energy
Usage
30,280
Water
Usage
518
Council tax and rates
Usage
21
Insurance
Usage
512
Waste disposal
Usage
94
Travel costs
Staffing
932
Printing, postage and stationery
Staffing
105
Telephone
Staffing
310
Bank charges and interest
Usage
3,591
Depreciation and profit on disposals
Usage
7,126
Other costs
Staffing
1,037
**78,022**|**Education**
**£**
244,522
3,859
43,324
9,582
38,593
10,387
17,364
10,186
419
10,836
1,843
5,556
1,259
3,650
13,799
12,736
1,112
**429,027**|**Governance**
**Total funds 2023**
**As restated**
**Total funds 2022**
**£**
**£**
**£**
-
252,842
196,052
48
8,218
13,418
-
61,139
39,630
105
10,246
7,401
-
40,556
30,890
-
10,915
11,647
-
47,644
42,808
-
10,704
6,595
-
440
1,375
-
11,348
7,897
-
1,937
1,980
40
6,528
1,591
18
1,382
1,781
58
4,018
4,196
-
17,390
11,038
-
19,862
29,148
6
2,155
7,330
**275**
**507,324**
**414,777**|
|---|---|---|
38
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **11. Auditors' remuneration**
The auditors’ remuneration amounts to an auditor fee of £20,000 (2022 - £NIL), and accountancy fees of £2,000 (2022 - £NIL). In 2022 £1,200 was paid for an independent examination.
## **12. Staff costs**
|Wages and salaries
Social Security costs
Employers’ contribution to pensions
Other benefits|**Group**
_Group_
**_2023_**
_2022_
**455,574**
_390,318_
**36,653**
_27,589_
**9,983**
_7,586_
**3,140**
_1,570_
**505,350**
_427,063_
|**Group**
_Group_
**_2023_**
_2022_
**455,574**
_390,318_
**36,653**
_27,589_
**9,983**
_7,586_
**3,140**
_1,570_
**505,350**
_427,063_
|**Charity**
_Charity_
**2023**
_2022_
**352,920**
_312,021_
**30,569**
_23,009_
**7,363**
_6,327_
**-**
_-_
**390,852**
341,357|
|---|---|---|---|
||**505,350**|_427,063_|**390,852**|
The average number of persons employed by the Charity during the year was as follows:
|Employees|**Group**
**2023**
**20**|_Group_
_2022_
_19_|**Charity**
**2023**
**19**|_Charity_
_2022_
_19_|
|---|---|---|---|---|
No employee received remuneration amounting to more than £60,000 in either year.
Key management personnel received aggregate remuneration (salary and employer pension contributions) of £132,209.
## **13. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).
During the year ended 31 December 2023, no Trustee expenses have been incurred (2022 - £NIL).
39
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
|**14.**
**Tangible fixed assets**
**Group**
**Cost or valuation**
At 1 January 2023
Additions
At 31 December 2023
**Depreciation**
At 1 January 2023
Charge for the year
At 31 December 2023
**Net book value**
At 31 December 2023
_At 31 December 2022_|**Freehold**
**property**
**£**
**2,625,000**
**-**|**Plant and**
**machinery**
**£**
**103,553**
**-**|**Fixtures and**
**fittings**
**£**
**143,505**
**1,118**
|**Office**
**equipment**
**£**
**24,194**
**-**
|**Total**
**£**
**2,896,252**
**1,118**
**2,897,370**
**202,644**
**17,865**
**220,509**
**2,676,861**
_2,693,608_|
|---|---|---|---|---|---|
||**2,625,000**|
**103,553**|
**144,623**
|
**24,194**
||
||**-**
**-**|
**63,503**
**6,686**|
**118,693**
**8,814**
|
**20,448**
**2,365**
||
||**-**|
**70,189**|
**127,507**
|
**22,813**
||
||**2,625,000**|
**33,364**|
**17,116**|**1,381**||
||
_2,625,000_|
_40,050_|
_24,812_|
_3,746_||
40
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **14. Tangible fixed assets (continued)**
## **Charity**
|**Cost or valuation**
At 1 January 2023 (as
restated)
Additions
At 31 December 2023
**Depreciation**
At 1 January 2023 (as
restated)
Charge for the year
At 31 December 2023
**Net book value**
At 31 December 2023
_At 31 December 2022 (as_
_restated)_|**Freehold**
**property**
**£**
**2,625,000**
**-**|**Plant and**
**machinery**
**£**
**28,173**
**-**|**Fixtures and**
**fittings**
**£**
**56,084**
**1,118**
|**Office**
**equipment**
**£**
**24,194**
**-**
|**Total**
**£**
**2,733,451**
**1,118**
**2,734,569**
**92,367**
**6,480**
**98,847**
**2,635,722**
_2,641,084_|
|---|---|---|---|---|---|
||**2,625,000**|
**28,173**|
**57,202**
|
**24,194**
||
||**-**
**-**|
**28,173**
**-**|
**43,746**
**4,115**
|
**20,448**
**2,365**
||
||**-**|
**28,173**|
**47,861**
|
**22,813**
||
||**2,625,000**|
**-**|
**9,341**|**1,381**||
||
_2,625,000_|
_-_|
_12,338_|
_3,746_||
Freehold property was valued by Mr K Luxton RICS on 30 April 2024 using a fair value basis, which is defined in the Charities Statement of Recommended Practice as being the amount for which an asset could be exchanged between knowledgeable willing parties in an arms' length transaction. Given that there has been no revaluation in the accounts since 2010, the Trustees are of the opinion that a prior year adjustment is required and the valuation is materially correct at both 31 December 2022 and 31 December 2023.
41
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **14. Tangible fixed assets (continued)**
The Group has adopted a policy of revaluation for freehold property. Had these assets been measured at historic cost, the carrying values would have been as follows:
|Freehold property|**Group**
**2023**
**£**
**781,659**|_Group_
_2022_
_£_
_781,659_|**Charity**
**2023**
**£**
**781,659**|
_Charity_
_2022_
_£_
_781,659_|
|---|---|---|---|---|
Freehold property with a value of £2,625,000 is security against group borrowings totalling £175,204.
## **15. Fixed asset investments**
|**Charity**
**Cost or valuation**
At 1 January 2023
At 31 December 2023
**Net book value**
At 31 December 2023
_At 31 December 2022_|**Investments**
**in**
**subsidiary**
**companies**
**£**
**100**
**100**
**100**
_100_|
|---|---|
42
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **15. Fixed asset investments (continued)**
## **Principal subsidiaries**
The following were subsidiary undertakings of the Charity:
|**Names**|**Company**|
**Registered office or**|**Principal activity**|**Class of**|**Holding**|
|---|---|---|---|---|---|
||**number**|**principal place of**||**shares**||
|||**business**||||
|Magdalen|07148851|Magdalen Farm,|Farming
|Ordinary|100%|
|Farm Limited||Winsham, Chard,||||
|||Somerset, TA20 4PA||||
|Upper Axe|14223756|Magdalen Farm,|The enactment of the|N/A|100%|
|C.I.C||Winsham, Chard,|Axe Landscape|||
|||Somerset, TA20 4PA|Recovery Project|||
The financial results of the subsidiaries for the year were:
|**Names**|**Income**|**Expenditure**|**Profit/(Loss)/**|**Net assets**|
|---|---|---|---|---|
||||**Surplus/(Deficit)**||
||||**for the year**||
|Magdalen Farm Limited|191,750|197,000|(5,250)|9,706|
|Upper Axe C.I.C|279,132|293,493|(14,361)|(14,361)|
The trading subsidiaries account for grants on the accruals basis in their entity accounts. On consolidation they are accounted for under the performance model to align with Group accounting policies.
43
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **16. Stocks**
|Consumables
Livestock
**Debtors**
**Due within one year**
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income||**Group**
**2023**
**£**
**10,075**
**8,415**|**Group**
**2023**
**£**
**10,075**
**8,415**|_Group_
_2022_
_£_
_15,083_
_15,050_|_Group_
_2022_
_£_
_15,083_
_15,050_|**Charity**
**2023**
**£**
**6,539**
**-**
|**Charity**
**2023**
**£**
**6,539**
**-**
|_Charity_
_2022_
_£_
_7,453_
_-_
_7,453_
_Charity_
_2022_
_£_
_7,695_
_94,014_
_2,249_
_11,662_
_115,620_|
|---|---|---|---|---|---|---|---|---|
|||**18,490**||
_30,133_||
**6,539**|||
|||
**Group**
**2023**
**£**
**5,864**
**-**
**45,209**
**182,448**|
|
_Group_
_2022_
_£_
_8,433_
_-_
_6,276_
_57,994_|
|
**Charity**
**2023**
**£**
**5,864**
**182,879**
**1,497**
**14,461**
|
||
|||**233,521**||_72,703_||**204,701**|||
## **17. Debtors**
44
**(A company limited by guarantee)**
## **THE MAGDALEN ENVIRONMENTAL TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **18. Creditors: Amounts falling due within one year**
|Bank loans
Trade creditors
Corporation tax
Other taxation and social security
Other creditors
Accruals and deferred income|**Group**
**2023**
**£**
**28,442**
**217,707**
**6,480**
**14,204**
**1,042**
**173,709**
**441,584**|_Group_
_2022_
_£_
_21,291_
_24,302_
_6,480_
_8,155_
_3,678_
_132,977_
_196,883_|**Charity**
**2023**
**£**
**18,467**
**33,431**
**-**
**14,020**
**830**
**170,577**
**237,325**|_Charity_
_2022_
_£_
_14,074_
_5,331_
_-_
_8,155_
_2,605_
_132,725_
_162,890_|
|---|---|---|---|---|
At 31 December 2023 the charity had deferred income of £145,837, made up of £94,280 of residential visits paid in advance and £51,556 of grant income with specific performance or time related conditions that had not been achieved at the year-end.
Bank loans includes £14,009 which is secured against freehold property owned by the charitable company.
Corporation tax includes an estimate of historic amounts due from Magdalen Farm Trust Limited, which is included in the prior year adjustment.
## **19. Creditors: Amounts falling due after more than one year**
|Bank loans|**Group**
**2023**
**£**
**293,910**|_Group_
_2022_
_£_
_209,923_|**Charity**
**2023**
**£**
**271,487**|_Charity_
_2022_
_£_
_174,356_|
|---|---|---|---|---|
Bank loans includes £161,195 which is secured against freehold property owned by the charitable company.
## **20. Prior year adjustments**
The prior period has been restated to adjust for errors. Income has reduced by £42,617 and expenses have increased by £2,333 so the total effect on the income and expenditure account is £44,950. On the balance sheet, Opening reserves have increased by £1,230,817, of which £1,131,851 relates to the property revaluation (which had not been done since 2010) and the remainder relates to opening balance adjustments as at 1 January 2022.
45
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **21. Statement of funds**
**Statement of funds - current year**
|**Unrestricted funds**
**Designated funds**
Designated Fund - Net Assets
Designated Fund - Capital
**General funds**
General Funds
Reserves of trading subsidiary
Revaluation reserve
**Total Unrestricted funds**
**Restricted funds**
Restricted Funds - all funds
**Total of funds**|**Balance at 1**
**January**
**2023**
**£**
**630,968**
**150,000**|**Income**
**£**
**-**
**-**|**Expenditure**
**£**
**-**
**-**|**Transfers**
**in/out**
**£**
**(89,349)**
**-**
|**Balance at**
**31**
**December**
**2023**
**£**
**541,619**
**150,000**
**691,619**
**6,151**
**206,654**
**1,800,193**
**2,012,998**
**2,704,617**
**269,436**
**2,974,053**|
|---|---|---|---|---|---|
||**780,968**|
**-**|
**-**|
**(89,349)**
||
||**15,466**
**106,610**
**1,800,193**|
**397,770**
**20,584**
**-**|
**(358,612)**
**(58,362)**
**-**|
**(48,473)**
**137,822**
**-**
||
||**1,922,269**|
**418,354**|
**(416,974)**|
**89,349**
||
||**2,703,237**|
**418,354**|
**(416,974)**|
**-**
||
||**32,577**|
**860,839**|
**(623,980)**|
**- **||
||**2,735,814**|
**1,279,193**|
**(1,040,954)**|
**-**||
46
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
The net assets designated fund has been created to provide a reserve equal to the net fixed asset value less the revaluation reserve and the borrowings greater than one year. This is to give a true reflection in the accounts of the unrestricted funds available to the charitable company.
The capital designated fund has been created to provide a reserve for future purchases of land and capital improvements.
## **22. Summary of funds**
|**Summary of funds**||||||
|---|---|---|---|---|---|
|Designated funds
General funds
Restricted funds|**Balance at 1**
**January**
**2023**
**£**
**780,968**
**1,922,269**
**32,577**|**Income**
**£**
**-**
**418,354**
**860,839**|**Expenditure**
**£**
**-**
**(416,974)**
**(623,980)**|**Transfers**
**in/out**
**£**
**(89,349)**
**89,349**
**-**
|**Balance at**
**31**
**December**
**2023**
**£**
**691,619**
**2,012,998**
**269,436**
**2,974,053**|
||**2,735,814**|
**1,279,193**|
**(1,040,954)**|
**-**||
## **23. Analysis of net assets between funds**
**Analysis of net assets between funds - current year**
|Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
**Total**|**Unrestricted**
**funds**
**2023**
**£**
2,676,861
763,250
(441,584)
(293,910)|**Restricted**
**funds**
**2023**
**£**
-
269,436
-
-
|**Total**
**funds**
**2023**
**£**
**2,676,861**
**1,032,686**
**(441,584)**
**(293,910)**
**2,974,053**|
|---|---|---|---|
||2,704,617|
269,436||
47
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **24. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income/expenditure for the year (as per Statement of Financial
Activities)
**Adjustments for:**
Depreciation charges
Dividends, interests and rents from investments
Decrease/(increase) in stocks
Increase in debtors
Increase in creditors
**Net cash provided by operating activities**
**25.**
**Analysis of cash and cash equivalents**
Cash at bank and in hand
**Total cash and cash equivalents**|**Group**
_Group_
**2023**
_2022_
**£**
_£_
**238,239**
_(36,414)_
**17,865**
_29,631_
**(3,977)**
_(1,031)_
**11,643**
_(5,818)_
**(160,818)**
_(48,418)_
**237,550**
_76,068_
**340,502**
_14,018_
**Group**
_Group_
**2023**
_2022_
**£**
_£_
**780,675**
_346,176_
**780,675**
_346,176_|
|---|---|
||**340,502**|
||
**Group**
**2023**
**£**
**780,675**
|
||**780,675**|
48
## **THE MAGDALEN ENVIRONMENTAL TRUST**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **26. Analysis of changes in net debt**
|Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year|**At 1**
**January**
**2023**
**£**
**346,176**
**(21,291)**
**(209,923)**|**Cash flows**
**£**
**434,499**
**(7,151)**
**(83,987)**
|**At 31**
**December**
**2023**
**£**
**780,675**
**(28,442)**
**(293,910)**
**458,323**|
|---|---|---|---|
||**114,962**|
**343,361**||
## **27. Members' liability**
Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before he/she ceases to be a member.
## **28. Related party transactions**
The Charity has taken advantage of the exemption in FRS 102 from disclosing transactions with other members of the group.
There are no other related party transactions that required disclosure.
## **29. Controlling party**
The charitable company is controlled by the trustees, who are directors of the company.
## **30. Statements in respect of the revised accounts**
- The revised accounts replace the original annual accounts for the year ended 31 December 2023;
- The revised accounts are now the statutory accounts of the Group for that financial year;
- The revised accounts have been prepared as at the date of the original accounts and not as at the date of revision and accordingly do not deal with events between those dates;
- The accounts did not comply with the requirements of the Charities SORP (FRS 102) in terms of the allocation of expenditure; and
- As a consequence of remedying these defects, expenditure on raising funds has reduced to £134k, on charitable activities has increased to £875k and governance costs have reduced to £31k. Designated funds and revaluation reserve have been stated on the Balance Sheet.
49
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