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2024-04-05-accounts

REGISTERED CHARITY NUMBER: 1015251

FINANCIAL ST A TEMENTS FOR THE YEAR ENDED 5 APRIL 2024 FOR

THE DEREK WILLIAMS TRUST

Bevan Buckland LLP (Statutory Auditors) Ground Floor Cardigan House Castle Court Swansea Enterprise Park Swansea SA? 9LA

THE DEREK WILLIAMS TRUST

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2024

Page
Report of the Trustees **to5 **
Report of the Independent Auditors 6 6
**to8 **
Statement of Financial Activities 9
Balance Sheet 10
Notes to the Financial Statements 11 11
to18
Detailed Statement of Financial Activities 19 19
to20

THE DEREK WILLIAMS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2024

The trustees present their report with the financial statements of the charity for the year ended 5 April 2024. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

By his Will dated 2nd June 1983, Derek Mathias Tudor Williams provided that his collection of art be the subject of charitable disposition with emphasis on securing actual display to the public and that the residue of his estate should be used to enhance the collection. He gave his Trustees absolute discretion to either transfer the collection and his residuary estate to the National Museum of Wales, or to any other charitable organisation which his Trustees considered would most nearly fulfil the objects which he intended to benefit.

The Trustees confirm that they have referred to the Charity Commission's guidance on public benefit when reviewing the Trust's aims and objectives, in planning future activities, and setting the grant making policy for the year.

The object of the Charity is to advance Public Education in and appreciation of the Arts through public display and acquisition of Fine Works of Art.

The Trust furthers its charitable purposes for the public benefit through its own purchase of works of art which are made available for public display and by providing grants to fund the purchase of works of art by third parties, which are deemed to be suitable to advance public education in and appreciation of the Arts.

Public benefit

The Trust has established its grant making policy to achieve its objects for the public benefit. The Trust's aim is to advance Public Education in and appreciation of the Arts through public display and acquisition of Fine Works of Art. The Trustees review the grant making policy annually to ensure that it reflects the charity's objects and thereby advances public benefit.

Grantmaking

The beneficiaries of the Trust's grant making programme are the general public, particularly the Welsh public. The annual income arising from the Trust funds, is used to make additions to the Collection, and also to acquire works in partnership with the Museum. The Trust also has previously provided funding for Artistic Commissions and Research, the National Eisteddfod of Wales Purchasing Grant, and the Artes Mundi Purchase Prize. Significant purchases by NMW of works have all been achieved with considerable assistance from the Trust.

In order to maximise these objects, during 1993 a Founding Agreement was entered into with Amgueddfa Cymru/National Museum Wales (NMW) whereby nominated trustees would join with the Museum's Representatives to form the Derek Williams Committee, charged with the enhancement of both the Museum's and the Trust's collection of post 19th Century works of Fine Art. Under the guidance of the Sub-Committee of The Derek Williams Joint Committee known as the Acquisitions and Policy Committee and the museum's own Art Advisory Group, funding is made available as appropriate.

As part of this agreement gallery 15 at the Museum was named "Oriel Derek Williams Gallery", where works of Art acquired by the Trust or via funding made available by the Trust can be displayed, and the uses of which satisfy the criteria laid down in the main objects of this Trust.

In September 2004 a Supplementary Agreement was entered into to set up a Centenary Fund over a five year period in order to acquire major works of Fine Art. Although this Agreement has now expired, the balance of this Fund was finally expended during 2013/14. On 6th May 2011 a revised Agreement was entered into, encompassing all relevant terms of the earlier Agreements. As part of this new Agreement and in order to recognise the ambition of the Trustees to enlarge gallery space within NMW, Galleries 19, 20 and 21 were created as the "Derek Williams Galleries" in addition to Gallery 15 previously mentioned.

In November 2019 a further agreement was reached with National Museum - Amgueddfa Cymru. This agreement has been updated as of July 2024, encapsulating all previous terms and adding new commitments from the museum regarding the percentage of the Collection and Grant-aided works on display at any one time.

Page 1

THE DEREK WILLIAMS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2024

ACHIEVEMENT AND PERFORMANCE

Derek Mathias Tudor Williams died on 6th November 1984. His impeccable collection concentrated on British Art of the 1930's, 40's and 50's. The main works in the collection are displayed at NMW and all other works of art are generally curated by NMW. In June 2016 the Trust took possession of over 70 individual ceramics bequeathed out of the estate of the late Anita Besson for the benefit of the Trust at a probate value of £911,350. This adds significantly to the Trust's ceramics collection and ensures that NMW and the public are also able to share in the generous gift.

The success of the Trust's policies are measured by the increase in art work available to be publicly displayed in the year. The trust has also benefited this year from three very generous gifts; various works of painting and sculpture from the collector, Dr Kathleen Whale, works by the artist Tess Jaray from Robin Vousden and works by the artist Paula Rego from Ostrich Arts Ltd

The public display of the Trust's individual Collection occurs mainly at NMW but is not confined to those premises. The Trust has also committed substantial assistance to the Museum in the refurbishment of the West Wing Galleries at Cathays Park, where cu ration of the Collection is undertaken at the Museum, through the Derek Williams Curator.

On 26 September 2020 we celebrated the 25th anniversary of the Trusts formation and founding agreement with The National Museum of Wales by launching our latest publication: 'Art for Wales' The legacy of Derek Williams by David Moore. It was published by Graffeg and the front piece pays tribute to our three original trustees who were all personal friends of Derek Williams: Ivan Sadka OBE, Howard Evans and Joan Winter 'without whose dedication for over twenty-five years to the memory of Derek Williams and his wishes this legacy would not have existed'.

The Trust is also in ongoing talks with the museum to support the dispersed model for 'The contemporary Art Gallery of Wales', which will see nine venues across Wales collaborate on planned exhibitions to increase public access to contemporary art collections held across Wales.

The entire trust collection is available for the public to view at derekwilliamstrust.org.

FINANCIAL REVIEW

Financial position

The Trust's Works of Art are included in the accounts at deemed cost. Insurance of those Works held at NMW is covered by the Government Indemnity Scheme.

The Trust's work is reliant on income and returns from its investments. The value of the investment has increased during the year by £96,274 and income was generated of £213,489.

At 5th April 2024 the Fund designated for Grant Aid and purchase of Art stood at £489,911 after a further net movement of £(51, 580) and a transfer between reserves of £(145, 183). The Trustees consider that the level of this Fund is more than adequate to provide for the Trust's foreseeable forward commitments.

Total reserves stood at £13,071,035, following a net movements of funds of the year of £68,549 and a prior year adjustment of £(148,704).

The trustees have not revalued heritage assets during the year. However, the collection has undergone a professional valuation for government indemnity purposes by Sotheby's and Ben Williams. The valuers believe the value of heritage assets to be a combined total of £10,741,370. This valuation was undertaken as at 5th April 2023. The trust still believes this is a fair reflection for year-end 5th April 2024

Investment policy and performance

The Trust's Investments are split between Commercial Property (approximately 50% depending on market fluctuation) and a Stock Market Portfolio (approximately 50% depending on market fluctuations). The portfolio was managed by Investec from May 2019 with a policy of medium risk for both income and capital growth. Investec has since been absorbed by Rathbones Group PLC, who are now managing the fund.

Property Investment is made into good commercial property under the advice of the Trust's surveyors, Gerald Eve & Co, again on a medium risk basis. These properties are then rented out on medium to long-term leases. A valuation carried out at 5 April 2023 by Gerald Eve & Co indicated a significant reduction in the values of the four main commercial properties. The overall valuation, using the market value approach, totalled £2,249,500. The trustees believe that this valuation also reflects a fair valuation as at 5 April 2024.

Page 2

THE DEREK WILLIAMS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2024

FUTURE PLANS

The Trustees have already allocated a sum of £89,900 for purchases and grants since 5th April 2024. Further purchases and grants in satisfying the Trust's main objects continue to be explored, as will the desire to expand the Exhibition programme to several venues throughout the U.K. Regard will also be had to the need for conserving the Trust's resources in to 2024/25.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.

The Trust is a registered charity, number 1015251, and is constituted under a trust deed dated 21 October 1992. By his Will dated 2nd June 1983, Derek Mathias Tudor Williams provided that his collection of art be the subject of charitable disposition with emphasis on securing actual display to the public and that the residue of his estate should be used to enhance the collection. He gave his Trustees absolute discretion to either transfer the collection and his residuary estate to the National Museum of Wales, or to any other charitable organisation which his Trustees considered would most nearly fulfil the objects which he intended to benefit.

A subsidiary document, 'DWT Governance and Trustee Conduct', which outlines all internal controls and the trust's approach to governance matters, was created and approved by the trustees in January 2024. It will be reviewed annually by all trustees.

At the trustees' meetings, the trustees agree the broad strategy and areas of activity for the Trust, including consideration of grant making, investment, reserves and risk management policies and performance.

The Charity has no employees, and the day to day administration of the Trust and all management and administrative facilities and services are provided through Rosemary Claire Evans, who was appointed as Executive Trustee on 26th June 2023, replacing Howard J Evans, and by Williams Ross Limited, Chartered Accountants,.

The Trustees have also put in place the necessary insurance cover to protect their responsibilities as Trustees, as agreed with the Charity Commissioners and they consider that they have adequately covered the risks likely to be faced by the Charity through the use of properly qualified professionals in the above areas.

Induction and training of new trustees

New trustees are appointed in accordance with the original Trust Deed and are revolving members of the Derek Williams Committee. New trustees may only be appointed by the existing Trustees.

On appointment, new trustees are encouraged to immerse themselves in the history of the Trust, copy trustee board and sub committee minutes, a copy of the last three years' of annual reports and accounts. They are also provided with a copy of the governing trust deed and a copy of the Charity Commission's guidance 'The Essential Trustee: What You Need to Know' and 'Public Benefit: running a charity'.

Risk management

The principal risks faced by the Trust lie in the performance of investments, operational risks from ineffective art work purchases and grant awards, and deterioration and damage to works of art.

A risk register is held by the Executive Trustee and reviewed annually by all Trustees.

The trustees consider variability of investment returns constitute the charity's major financial risk This is mitigated by retaining expert investment managers and having a diversified investment portfolio.

The operational risk from art purchases and grant awards that are ineffective in the advancing public education in and appreciation of the Arts is managed by firstly retaining trustees of sufficient skill and expertise and secondly through the Trust's partnership with Angueddfa Cymru/National Museum of Wales. By retaining experts active in the field the trustees are assured that their technical knowledge is up to date and that they have the depth of insight to effectively evaluate the grant proposals and requests for assistance in art work purchases and display options.

The risk of deterioration and damage to works of art is mitigated by the partnership with Angueddfa Cymru/National Museum of Wales who maintain and store a large proportion of the works of art and insurance in relation to those works of art held at NMW is covered by the Government Indemnity Scheme. Separate insurance is obtained for other works of art. Those other works of art out on loan are covered by the borrower's own insurance policies in accordance with an appropriate loan agreement.

Page 3

THE DEREK WILLIAMS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT

Property held by trustees

All titles for the properties which belong to the Trust are jointly held in trust by two or more trustees.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Charity number

1015251

Principal address

4 Ynys Bridge Court Gwaelod-y-Garth Cardiff CF15 9SS

Trustees

Mrs Joan Winter Mr John Thomas-Ferrand Mr Adrian Myles Davies Mr James Ronald Seaton Mr William Wilkins Ms Sian Llinos Williams Mr Brendan Edward James Sadka Mr Howard John Evans Ms Rosemary Claire Evans (Executive Trustee) (appointed 10.10.23)

Auditors

Bevan Buckland LLP (Statutory Auditors) Ground Floor Cardigan House Castle Court Swansea Enterprise Park Swansea SA7 9LA

Bankers

HSBC Bank plc, 61 High Street, Cowbridge CF71 7YJ

Legal advisers

Messrs Gabb & Co. Solicitors, 32 Monk Street, Abergavenny, NP7 5NW

Investment advisers

Investec Wealth & Investment Limited, Quartermile One, 15 Lauriston Place, Edinburgh, EH3 9EN

Property advisers

Gerald Eve & Co Chartered Surveyors, 72 Welbeck Street, London, W1G 0AY Herbert R Thomas, 59 High Street, Cowbridge, CF71 7YL

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

Page 4

THE DEREK WILLIAMS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2024

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and Approved by order of the board of trustees on .... detection of fraud and other irregularities. 6./.t..[1] ., LO&b+t. and signed on its behalf by:

Mr Adrian Myles Davies - Trustee

Page 5

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE DEREK WILLIAMS TRUST

Opinion

We have audited the financial statements of The Derek Williams Trust (the 'charity'} for the year ended 5 April 2024 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice}.

In our opinion the financial statements:

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 financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the 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.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in 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 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity'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 charity or to cease operations, or have no realistic alternative but to do so.

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE DEREK WILLIAMS TRUST

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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 financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, and then, design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

We discussed our audit independence complying with the Revised Ethical Standard 2019 with the engagement team members whilst planning the audit and continually monitored our independence throughout the process.

Identifying and assessing potential risks related to irregularities.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

Audit response to risks identified

In addition to the above, our procedures to respond to risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE DEREK WILLIAMS TRUST

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Bevan Buckland LLP is eligible for appointment as auditors of the charity by virtue of its eligibility for appointment as auditors of a company under section 1212 of the Companies Act 2006.

Bevan Buckland LLP (Statutory Auditors) Ground Floor Cardigan House Castle Court Swansea Enterprise Park Swansea SA7 9LA

Date: .....

Page 8

THE DEREK WILLIAMS TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2024

2024 2023
Unrestricted Total
funds funds
as restated
Notes £ £
INCOME AND ENDOWMENTS FROM
Investment income 3 213,487 244,541
EXPENDITURE ON
Cost of generating funds 4 70,521 34,305
Charitable activities 5
Charitable Activities 170,692 87,754
Total 241,213 122,059
Net gains on investments 96,275 12,923
NET INCOME 68,549 135,405
Other recognised gains/(losses)
Gains/(losses) on revaluation of fixed assets (60,000}
Net movement in funds 68,549 75,405
RECONCILIATION OF FUNDS
Total funds brought forward
As previously reported 13,151,190 12,927,081
Prior year adjustment 8 (148,704)
As restated 13,002,486 12,927,081
TOTAL FUNDS CARRIED FORWARD 13,071,035 13,002,486

The notes form part of these financial statements

Page 9

THE DEREK WILLIAMS TRUST

BALANCE SHEET 5 APRIL 2024

BALANCE SHEET
5 APRIL 2024
2024 2023
Unrestricted Total
funds funds
as restated
Notes £ £
FIXED ASSETS
Heritage assets 9 8,229,833 8,132,845
Investments
Investments
Investment property		 10
11		 2,136,764
2,249,500		 2,054,798
2,249,500
12,616,097 12,437,143
CURRENT ASSETS
Stocks 12 4,778 4,323
Debtors 13 26,372 33,892
Cash at bank 604,584 636,834
635,734 675,049
CREDITORS
Amounts falling due within one year Amounts falling due within one year
14		 (180,796) (109,706)
NET CURRENT ASSETS 454,938 565,343
TOTAL ASSETS LESS CURRENT LIABILITIES TOTAL ASSETS LESS CURRENT LIABILITIES 13,071,035 13,002,486
NET ASSETS 13,071,035 13,002,486
FUNDS 15
Unrestricted funds 13,071,035 13,002,486
TOTAL FUNDS 13,071,035 13,002,486

The fi11ancial statements were approved by the Board of Trustees and authorised for issue on ·······b·J•l-1--1••2c?..+-•········ and were signed on its behalf by:

Mr Adrian Myles Davies - Trustee

The notes form part of these financial statements

Page 10

THE DEREK WILLIAMS TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2024

1. STATUTORY INFORMATION

Derek Williams Trust is a unincorporated charity registered in England and Wales. The charity's registered number and registered office address can be found in the Reference and Administrative Details section on page 4.

The presentation currency of the financial statements is the Pound Sterling (£).

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Income

All income including rental income and dividends received is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received, the amount can be measured reliably and is recognised in the period to which it relates.

The Trust's income is recognised in accordance with the requirements of the Charities SORP (FRS 102) and the underlying accounting policies.

Investment Income - Rental income from investment properties is recognised on an accruals basis. Rent is payable quarterly in arrears, and income is recognised as it falls due in accordance with the terms of the lease agreements.

Dividend Income - Dividend income from the Trust's investment portfolio is recognised on a monthly basis when the right to receive payment is established, typically when the dividends are declared by the investee company.

Both income streams are recognised when the Trust is entitled to the income, when it is probable that the income will be received, and when the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Heritage assets

The works of art donated by the late Derek Williams and depreciation made by the trustees prior to 5 April 2017 have been included in the Balance Sheet at deemed cost under the transitional provisions of FRS 102. Additions after this date are included at cost. Additions or disposals of these assets are made on the advice of the Derek Williams Committee, which coordinates the Trust policy with National Museum guidelines for acquisitions and disposals.

Public access is arranged through National Museum Wales.

No provision is made for depreciation.

continued ...

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THE DEREK WILLIAMS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2024

2. ACCOUNTING POLICIES • continued

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.

Investments are initially recognised at their transactional value and subsequently measured at their fair value as at the Balance Sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

Other investments are accounted for at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from tax on its charitable activities.

Irrecoverable VAT

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.

Basic financial assets

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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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

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 business 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.

Derecognition of financial liabilities

continued ...

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THE DEREK WILLIAMS TRUST

NOTES TO THE FINANCIAL STATEMENTS • continued FOR THE YEAR ENDED 5 APRIL 2024

2. ACCOUNTING POLICIES • continued

Financial instruments

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and cash 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.

Creditors and provisions

Creditors and provisions are recognised where the company has a present obligation (legal and constructive) resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

3.

INVESTMENT INCOME

2024 2023
as restated
£ £
Rent receivable 141,058 184,210
Insurance recharged 1,916 3,077
Income from other investments (249)
Dividends received 60,128 54,002
Deposit account interest 10,385 3,501
213,487 244,541

4. COST OF GENERATING FUNDS

Investment management costs

2024 2023
as restated
£ £
Portfolio fees 14,308 11,295
Property insurance 6,238 3,524
General management fees
Property expenses		 22,630
26,822		 10,373
12,000
Sundries 54 713
Bad debts 469 (3,600)
70,521 34,305
---

continued ...

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THE DEREK WILLIAMS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2024

5. CHARITABLE ACTIVITIES COSTS

CHARITABLE ACTIVITIES COSTS
Grant
funding of Support
activities costs Totals
£ £ £
Charitable Activities 149,732 20,960 170,692

6. TRUSTEES' REMUNERATION AND BENEFITS

During the year ended 5 April 2024, remuneration of £9,000 was paid to Claire Evans, a trustee of the charity, for consultancy services she provided to the trust. This payment was made in accordance with the Charity Act, which permit payment to trustees for services beyond their trustee duties.

No remuneration was paid to any trustees during the year ended 5 April 2023.

7.

Trustees' expenses
2024 2023
as restated
£ £
Trustees' expenses 4,819 4,950
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
as restated
£
INCOME AND ENDOWMENTS FROM
Investment income 244,541
EXPENDITURE ON
Cost of generating funds 34,305
Charitable activities
Charitable Activities 87,754
Total 122,059
Net gains on investments 12,923
NET INCOME 135,405
Other recognised gains/(losses)
Gains/(losses) on revaluation of fixed assets (60,000)
Net movement in funds 75,405
RECONCILIATION OF FUNDS
Total funds brought forward 12,927,081
TOTAL FUNDS CARRIED FORWARD 13,002,486

continued ...

Page 14

THE DEREK WILLIAMS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2024

8. PRIOR YEAR ADJUSTMENT

During the current financial year, management identified a misstatement in prior years amounting to £148,704. This arose because the cash element within the investment portfolio was also included within the cash at bank balance in current assets. Consequently, the charity's net assets and general reserves were overstated in previous financial statements.

A prior year adjustment has been made to correct the opening balance for cash at bank, reducing it by £148,704. This adjustment has the following impact on the prior period's financial statements:

Cash at Bank: The cash at bank balance has been reduced by £148,704. SoFA: Gain/loss on investment has been increased by £25,980. General Reserves: General reserves have been reduced by £122,724.

Prior to this adjustment, the reserves in the prior year of the charity were £13,151, 190, which now stand at £13,002,486.

The financial statements now reflect the correct cash and net asset positions. Comparative figures for the previous period have been restated accordingly.

9.

HERITAGE ASSETS

HERITAGE ASSETS
Total
£
MARKET VALUE
At 6 April 2023 8,132,845
Additions 96,988
At 5 April 2024 8,229,833
NET BOOK VALUE
At 5 April 2024 8,229,833
At 5 April 2023 8,132,845

10.

FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
Listed
investments
£
MARKET VALUE
At 6 April 2023 2,054,798
Revaluations
Portfolio Fees		 96,274
(14,308)
At 5 April 2024 2,136,764
NET BOOK VALUE
At 5 April 2024 2,136,764
At 5 April 2023 2,054,798

There were no investment assets outside the UK.

Page 15

continued ...

THE DEREK WILLIAMS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2024

11. INVESTMENT PROPERTY

INVESTMENT PROPERTY
£
FAIR VALUE
At 6 April 2023
and 5 April 2024 2,249,500
NET BOOK VALUE
At 5 April 2024 2,249,500
At 5 April 2023 2,249,500

The company's investment properties are stated at fair value in accordance with the requirements of Section 16 of FRS 102 and the Companies Act 2006. The directors have considered the valuation of all investment properties held as at 5th April 2024. In reaching their conclusion, they have utilised independent professional valuations in the past (where applicable) and reviewed market trends and other relevant factors.

The directors are satisfied that the fair value recorded for each investment property in the financial statements represents an accurate reflection of their market value as of 5th April 2024. No material adjustments have been required following this assessment. The revaluation surplus/deficit, where applicable, has been recognised in the statement of financial activity.

Fair value at 5 April 2024 is represented by:

£
Valuation in 2019 Valuation in 2019 (90,630)
Valuation in 2020 Valuation in 2020 (1,279,500)
Valuation in 2023 Valuation in 2023 (60,000)
Cost 3,679,630
2,249,500

12. STOCKS

13.

STOCKS
2024 2023
as restated
£ £
Stocks 4,778 4,323
--
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
as restated
£ £
Trade debtors 27,627 36,420
Bad debt provision (10,163) (10,163)
Other debtors 8,908 7,635
26,372 33,892
--- ---

continued ...

Page 16

THE DEREK WILLIAMS TRUST

NOTES TO THE FINANCIAL STATEMENTS. continued FOR THE YEAR ENDED 5 APRIL 2024

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024 2023
as restated
£ £
Taxation and social security 439 5,501
Other creditors 180,357 104,205
180,796 109,706
15. MOVEMENT IN FUNDS
Prior Net Transfers
year movement between At
At 6.4.23 adjustment in funds funds 5.4.24
£ £ £ £ £
Unrestricted funds
General fund 12,661,279 (148,704) 218,281 (29,012) 12,701,844
Designated Funds 489,911 (149,732) 29,012 369,191
13,151,190 (148,704) 68,549 13,071,035
TOTAL FUNDS 13,151,190 (148,704) 68,549 13,071,035

Net movement in funds, included in the above are as follows:

Net movement in funds, included in the above are as follows: Net movement in funds, included in the above are as follows:
Incoming Resources Gains and Movement
resources expended losses in funds
£ £ £ £
Unrestricted funds
General fund 213,487 (91,481) 96,275 218,281
Designated Funds (149,732) (149,732)
213,487 (241,213) 96,275 68,549
TOTAL FUNDS 213,487 (241,213) 96,275 68,549

Comparatives for movement in funds

Net Transfers
movement between At
At 6.4.22 in funds funds 5.4.23
£ £ £ £
Unrestricted funds
General fund 12,240,407 126,985 145,183 12,512,575
Designated Funds 686,674 (51,580) (145,183) 489,911
12,927,081 75,405 13,002,486
TOTAL FUNDS 12,927,081 75,405 13,002,486

Page 17

continued ...

THE DEREK WILLIAMS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2024

15. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Incoming Resources Gains and Movement
resources expended losses in funds
£ £ £ £
Unrestricted funds
General fund 244,541 (70,479) (47,077) 126,985
Designated Funds (51,580) (51,580)
244,541 (122,059) (47,077) 75,405
TOTAL FUNDS 244,541 (122,059) (47,077) 75,405

Designated Fund

These funds are available to finance future purchases of art work and/or the making of grants to further the Trust's objectives.

The net movement of £29,012 from general to designated funds represents a reallocation within the charity's reserves. This movement comprises two principal components:

Expenditure on Wholly Owned Heritage Assets: A transfer of £96,988 was made from general funds to cover costs associated with the acquisition, maintenance, and preservation of the charity's heritage assets. This allocation aligns with the charity's objective to invest in and sustain its heritage assets for public benefit.

Transfer to Designated Funds: An additional transfer of £126,000 from general funds has been allocated to designated funds. This reflects the trustees' commitment to future projects and long-term goals that fall under the charity's designated purpose.

16.

CAPITAL COMMITMENTS

CAPITAL COMMITMENTS
2024 2023
as restated
£ £
Contracted but not provided for in the financial statements 89,900 161,000

At the balance sheet date, the Trust had committed to the future purchase of select heritage assets. These commitments are in accordance with the Trust's aim to advance public education in the Arts through the acquisition and display of fine works of art.

This disclosure is made in accordance with FRS 102 and the requirements of the Companies Act 2006.

17. RELATED PARTY DISCLOSURES

Trustee Adrian Myles Davies is a partner at Gabb & Co. All transactions between Derek Williams Trust and Gabb & Co. are made at arms length.

Page 18

THE DEREK WILLIAMS TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2024

2024 2023
as restated
£ £
INCOME AND ENDOWMENTS
Investment income
Rent receivable 141,058 184,210
Insurance recharged 1,916 3,077
Income from other investments (249)
Dividends received 60,128 54,002
Deposit account interest 10,385 3,501
213,487 244,541
Total incoming resources 213,487 244,541
EXPENDITURE
Investment management costs
Portfolio fees		 14,308 11,295
Property insurance 6,238 3,524
General management fees
Property expenses		 22,630
26,822		 10,373
12,000
Sundries 54 713
Bad debts 469 {3,600)
70,521 34,305
Charitable activities
Grants to institutions 149,732 51,580
Support costs
Management
Trustees' expenses 4,819 4,950
Management fees 3,462 3,690
8,281 8,640
Finance
Bank charges 66 76
Governance costs
Auditors' remuneration 8,750 8,000
Insurance 401 540
Management Fees 3,462 3,533
Legal and professional 15,385
12,613 27,458
Total resources expended 241,213 122,059
Net (expenditure)/income before gains and
losses (27,726) 122,482
Realised recognised gains and losses
Carried forward (27,726) 122,482

This page does not form part of the statutory financial statements

Page 19

THE DEREK WILLIAMS TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2024

2024 2023
as restated
£ £
Realised recognised gains and losses
Brought forward		 (27,726) 122,482
Realised gains/(losses) on fixed asset
investments 96,275 (57,077)
Realised gains/(losses) on investment property 70,000
Net income 68,549 135,405

This page does not form part of the statutory financial statements

Page 20