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← Derek Williams Trust

2025-04-05-accounts

REGISTERED CHARITY NUMBER: 1015251

FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2025

FOR

THE DEREK WILLIAMS TRUST

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

THE DEREK WILLIAMS TRUST

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2025

Page
Report of the Trustees 1 to 5
Report of the Independent Auditors 6 to 8
Statement of Financial Activities 9
Balance Sheet 10
Notes to the Financial Statements 11 to 18
Detailed Statement of Financial Activities 19 to 20

THE DEREK WILLIAMS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2025

The trustees present their report with the financial statements of the charity for the year ended 5 April 2025. 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 2025

ACHIEVEMENTS 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. During the past year the Trustees have expended the sum of £24,593 and £77,251 in grant aid and direct purchase costs respectively. The Trustees consider that these purchases have resulted in the Trust achieving its aims in the year.

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 curation 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.

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 portfolio (excluding portfolio fees) has decreased during the year by £37,974. Income of £173,461 was generated from the investment portfolio and investment properties.

At 5th April 2025 the Fund designated for Grant Aid and purchase of Art stood at £339,347 after a net movement of £(14,593) and a transfer between reserves of £(15,251). 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 £13,191,977, following a net movements of funds of the year of £120,942.

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.

In the current year, significant investment has taken place to 4/5 College Green. This has led to the capitalisation of refurbishment costs. To ensure the correct value is included in the accounts, this property was re-valued by Burston Cook Chartered Surveyors, who gave a market value of £820,000. The overall valuation, using the market value approach, totalled £2,444,500. The trustees believe that this valuation also reflects a fair valuation as at 5 April 2025.

FUTURE PLANS

The Trustees have already allocated a sum of £206,200 for purchases and grants since 5th April 2025. 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 2025/26.

Page 2

THE DEREK WILLIAMS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2025

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.

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

Page 3

THE DEREK WILLIAMS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2025

Principal address

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

Trustees

Mrs Joan Winter Mr John Thomas-Ferrand (resigned 31.12.24) Mr Adrian Myles Davies Mr James Ronald Seaton Mr William Wilkins Ms Sian Llinos Williams Mr Brendan Edward James Sadka Mr Howard John Evans (Executive Trustee) Ms Rosemary Claire Evans

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).

Charity law requires the trustees to prepare financial statements for each financial year. Under that law, the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under charity 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 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

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 and The Charity (Accounts and Reports) Regulations 2008. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 4

THE DEREK WILLIAMS TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 5 APRIL 2025

Approved by order of the board of trustees on ............................................. 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 2025 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 2024 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 (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 2025

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
Investment income
3
Total
EXPENDITURE ON
Cost of generating funds
4
Charitable activities
5
Charitable Activities
Total
Net gains on investments
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 2025
Unrestricted
funds
£
20,000
173,461
193,461
23,587
69,252
92,839
20,320
120,942
13,071,035
13,191,977		 2024
Total
funds
£
-
213,487
213,487
70,521
170,692
241,213
96,275
68,549
13,002,486
13,071,035

The notes form part of these financial statements

Page 9

THE DEREK WILLIAMS TRUST

BALANCE SHEET 5 APRIL 2025

Notes
FIXED ASSETS
Heritage assets
7
Investments
Investments
8
Investment property
9
CURRENT ASSETS
Stocks
10
Debtors
11
Cash at bank
CREDITORS
Amounts falling due within one year
12
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
13
Unrestricted funds
TOTAL FUNDS		 2025
Unrestricted
funds
£
8,297,084
2,083,108
2,444,500
12,824,692
4,778
57,695
373,909
436,382
(69,097)
367,285
13,191,977
13,191,977
13,191,977
13,191,977		 2024
Total
funds
£
8,229,833
2,136,764
2,249,500
12,616,097
4,778
26,372
604,584
635,734
(180,796)
454,938
13,071,035
13,071,035
13,071,035
13,071,035

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. 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 2025

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.

Investments

Investment Property

Investment properties are properties held to earn rental income and/or for capital appreciation.

Page 11

continued...

THE DEREK WILLIAMS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2025

2. ACCOUNTING POLICIES - continued

Investments

Investment properties are initially recognised at cost, including transaction costs, and are subsequently measured at fair value at each reporting date. Fair value is determined by reference to market evidence, including recent prices for similar properties in the same location and condition, or by professional valuation where appropriate.

Revaluations are performed by qualified independent valuers at intervals deemed appropriate to ensure carrying amounts do not differ materially from fair value.

Changes in fair value are recognised in the Statement of Financial Activities within “Gains and losses on investments” in the period in which they arise. No depreciation is charged on investment properties.

Other investments

Investments are held to generate returns to support the charity’s objectives and are managed by an external investment management service.

The portfolio includes equities, government bonds, overseas fixed income, alternatives, and cash. Investments are initially recognised at cost and subsequently measured at fair value. Changes in fair value are recognised in the Statement of Financial Activities (SOFA) within gains/(losses) on investments.

Fair value is determined by reference to quoted market prices for listed securities and net asset values for unlisted or alternative investments.

Cash held within the investment portfolio is included in investments and not in cash at bank and in hand.

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.

Page 12

continued...

THE DEREK WILLIAMS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2025

2. ACCOUNTING POLICIES - continued

Financial instruments

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

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

Rent receivable
Insurance recharged
Dividends received
Deposit account interest
Sundry income		 2025
£
99,219
3,056
61,906
9,211
69
173,461		 2024
£
141,058
1,916
60,128
10,385
-
213,487

Page 13

continued...

THE DEREK WILLIAMS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2025

4. COST OF GENERATING FUNDS

Investment management costs

Portfolio fees
Property insurance
General management fees
Property expenses
Sundries
Bad debts
CHARITABLE ACTIVITIES COSTS
Grant
funding of
activities
£
Charitable Activities
34,593		 2025
£
16,392
8,236
11,064
(12,490)
385
-
23,587
Support
costs
£
34,659		 2024
£
14,308
6,238
22,630
26,822
54
469
70,521
Totals
£
69,252

5. CHARITABLE ACTIVITIES COSTS

6. TRUSTEES' REMUNERATION AND BENEFITS

During the year ended 5 April 2025, remuneration of £9,000 (2024: £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.

Trustees' expenses

2025
£
Trustees' expenses
4,001
7.
HERITAGE ASSETS
MARKET VALUE
At 6 April 2024
Additions
At 5 April 2025
NET BOOK VALUE
At 5 April 2025
At 5 April 2024		 2024
£
4,819
Total
£
8,229,833
67,251
8,297,084
8,297,084
8,229,833

Page 14

continued...

THE DEREK WILLIAMS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2025

8. FIXED ASSET INVESTMENTS

MARKET VALUE
At 6 April 2024
Additions
Disposals
Revaluations
Portfolio Fees
At 5 April 2025
NET BOOK VALUE
At 5 April 2025
At 5 April 2024
There were no investment assets outside the UK.
INVESTMENT PROPERTY
FAIR VALUE
At 6 April 2024
Fair value movement
At 5 April 2025
NET BOOK VALUE
At 5 April 2025
At 5 April 2024		 Listed
investments
£
2,136,764
265,295
(295,675)
(7,594)
(15,682)
2,083,108
2,083,108
2,136,764
£
2,249,500
195,000
2,444,500
2,444,500
2,249,500

9. INVESTMENT PROPERTY

The company's investment properties are stated at fair value in accordance with the requirements of Section 16 of FRS 102 and the Charities SORP . The trustees have considered the valuation of all investment properties held as at 5th April 2025. In reaching their conclusion, they have utilised independent professional valuations in the past (where applicable) and reviewed market trends and other relevant factors.

The trustees 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 2025. 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 2025 is represented by:

Valuation in 2019
Valuation in 2020
Valuation in 2023
Valuation in 2025
Cost		 £
(90,000)
(1,279,500)
(60,000)
195,000
3,679,000
2,444,500

Page 15

continued...

THE DEREK WILLIAMS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2025

10. STOCKS
2025 2024
£ £
Stocks 4,778 4,778
11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2025 2024
£ £
Trade debtors 12,750 27,627
Bad debt provision (10,163) (10,163)
Other debtors 46,893 8,908
VAT 8,215 -
57,695 26,372
12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2025 2024
£ £
Taxation and social security - 439
Other creditors 69,097 180,357
69,097 180,796
13. MOVEMENT IN FUNDS
Net Transfers
movement between At
At 6.4.24 in funds funds 5.4.25
£ £ £ £
Unrestricted funds
General fund 12,701,844 135,535 (68,571) 12,768,808
Designated funds 369,191 (14,593) (15,251) 339,347
Property fund - - 13,822 13,822
Centenary fund - - 50,000 50,000
Myristica fund - - 20,000 20,000
13,071,035 120,942 - 13,191,977
TOTAL FUNDS 13,071,035 120,942 - 13,191,977
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 173,461 (58,246) 20,320 135,535
Designated funds 20,000 (34,593) - (14,593)
193,461 (92,839) 20,320 120,942
TOTAL FUNDS 193,461 (92,839) 20,320 120,942

Page 16

continued...

THE DEREK WILLIAMS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2025

13. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Designated funds
TOTAL FUNDS		 At 6.4.23
£
12,661,279
489,911
13,151,190
13,151,190		 Prior
year
adjustment
£
(148,704)
-
(148,704)
(148,704)		 Net
movement
in funds
£
218,281
(149,732)
68,549
68,549		 Transfers
between
funds
£
(29,012)
29,012
-
-		 At
5.4.24
£
12,701,844
369,191
13,071,035
13,071,035

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

Unrestricted funds
General fund
Designated funds
TOTAL FUNDS		 Incoming
resources
£
213,487
-
213,487
213,487		 Resources
expended
£
(91,481)
(149,732)
(241,213)
(241,213)		 Gains and
Movement
losses
in funds
£
£
96,275
218,281
-
(149,732)
96,275
68,549
96,275
68,549		 Gains and
Movement
losses
in funds
£
£
96,275
218,281
-
(149,732)
96,275
68,549
96,275
68,549
68,549
68,549

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 between the funds represents a reallocation within the charity’s reserves. This movement comprises of the following principal components:

Expenditure on Wholly Owned Heritage Assets: A transfer of £67,251 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: A transfer of £142,000 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.

Transfer to Property Funds: A transfer of £13,822 has been allocated to Property fund for the costs associated with property repairs.

Transfer to Centenary Funds: A transfer of £50,000 has been allocated to centenary fund for the costs associated to the planned centenary in 2029.

Transfer to Myristica Funds: A transfer of £20,000 has been allocated to the Myristica fund from a donation during the year.

Page 17

continued...

THE DEREK WILLIAMS TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 5 APRIL 2025

14. CONTINGENT ASSETS

The charity is pursuing an insurance claim relating to property damage. Based on current information, the trustees consider it probable that a settlement of approximately £50,000 will be received. As the amount is not yet virtually certain, no asset has been recognised in these financial statements.

15. CAPITAL COMMITMENTS

CAPITAL COMMITMENTS
2025 2024
£ £
Contracted but not provided for in the financial statements 202,600 89,900

At the balance sheet date, the charity had committed to the future purchase of select heritage assets. These commitments align with the charity’s objective to advance public education in the arts through the acquisition and display of fine works of art.

This disclosure is made in accordance with Section 17 of FRS 102 and the Charities SORP, which requires transparency around heritage asset transactions and commitments.

16. 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 2025

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Investment income
Rent receivable
Insurance recharged
Dividends received
Deposit account interest
Sundry income
Total incoming resources
EXPENDITURE
Investment management costs
Portfolio fees
Property insurance
General management fees
Property expenses
Sundries
Bad debts
Charitable activities
Grants to institutions
Support costs
Management
Trustees' expenses
Management fees
Licences
Finance
Bank charges
Governance costs
Auditors' remuneration
Insurance
Management Fees
Legal and professional
Total resources expended
Net income/(expenditure) before gains and
losses		 2025
£
20,000
99,219
3,056
61,906
9,211
69
173,461
193,461
16,392
8,236
11,064
(12,490)
385
-
23,587
34,593
4,001
10,778
924
15,703
60
9,075
-
3,768
6,053
18,896
92,839
100,622		 2024
£
-
141,058
1,916
60,128
10,385
-
213,487
213,487
14,308
6,238
22,630
26,822
54
469
70,521
149,732
4,819
3,462
-
8,281
66
8,750
401
3,462
-
12,613
241,213
(27,726)

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 2025

DETAILED STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 5 APRIL 2025
Realised recognised gains and losses
Realised gains/(losses) on fixed asset investments
Realised gains/(losses) on investment property
Net income		 2025
£
(37,974)
58,294
120,942		 2024
£
96,275
-
68,549

This page does not form part of the statutory financial statements

Page 20