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2020-09-30-accounts

The Kepplewray Trust Trustees Report and Consolidated Financial Statements

For the Year Ended 30 September 2020

The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Contents

Reference and administrative details 3
Trustees’ report 4 - 8
Independent Examiner's Report 9
Consolidated statement of financial activities 10
Trust statement of financial activities 11
Balance sheet 12
Notes to the financial statements 13 - 28

The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Reference and administrative details

Registered charity number 1015762 Chairman Revd JR Libby Trustees Revd JR Libby ME Browne MG Libby S Bevan C Armstrong Centre Manager Mr Neil Addington Registered Address The Kepplewray Centre Kepplewray Hill Broughton-in-Furness Cumbria LA20 6HE Solicitors Burnetts, Carlisle Bankers Barclays Bank Plc, Kendal, Cumbria Registered accountants MHA Moore and Smalley, Kendal

3

The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Trustees’ report

The Trustees present their report and the financial statements of the Trust for the year ended 30 September 2020. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the Trust.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the Trust’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.

Reference and Administrative Information

The Causeway Trust was created by a Declaration of Trust dated 24 September 1992 and was registered as a charity on 16 December 1992. By a deed dated 1 October 1994 the Trust’s name was changed to The Kepplewray Trust. The charity is registered with the Charity Commission under charity number 1015762. The Trustees, executive officers and principal addresses of the Charity, together with its professional advisers, are given on page 3.

Objects, aims, objectives and activities

Charitable Objective

The main objective of the Trust is the advancement of the education and awareness of individuals and groups of disabled and non-disabled people through residential and day programmes of adventure, learning, challenge and relaxation in a fully accessible and inclusive Christian environment. Through its trading company, Kepplewray Limited, a large mansion (‘Kepplewray’) in the Lake District was acquired which, after substantial renovation, enables the Trust to meet its charitable objective. Programmes at Kepplewray stretch mental and physical capabilities and deliberately promote the inclusion of disabled and disadvantaged people so that their conditions of life might be improved.

The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities.

Achievement and performance

Due to the Covid 19 global pandemic, 2019/2020 proved to be an extremely challenging year. Once the national lockdown was imposed, The Kepplewray Centre was prevented from welcoming guests from March until mid-July which severely affected the business. This was disappointing as the first quarter of the financial year had proved to be extremely busy.

During the financial year when the Centre was open a total of 38 groups with 1,067 guests were welcomed compared with 24 groups with 649 guests over the same period the previous year. These groups stayed for a total of 1,303 bed nights compared to 981 during the same period in the previous year. With such a noticeable increase on the previous year it was disappointing to have to close the Centre during what would have been the busiest part of the year. Purely on bookings that were cancelled another 37 groups would have visited Kepplewray and 915 guests would have experienced our activities compared to 46 groups with 1411 guests in the same period in the previous year. In addition to this we would have expected additional bookings to materialise as the year went on increasing our numbers further.

Kepplewray took advantage of the support available from the government through grants, furlough arrangements and loans and also through the generosity of donors which along with the decision to furlough most of the staff team allowed the Centre to survive until the end of this financial year and beyond.

Feedback from guests has continued to prove positive and many of the groups that have had to cancel moved their booking to the next year.

Continued…………………………………..

4

The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Trustees’ report (continued)

Achievement and performance (continued)

The priority for Kepplewray remains as delivering excellent programmes in excellent premises to all the people who experience (and therefore are touched by) our ethos and energy. This, we hope, is true for our staff as well as for our guests. We are developing our trainee instructor programme in partnership with the diocese and with the national church ‘IX12’ pioneer placement scheme, enabling the career of a young person to be developed by providing a mix of activity training and practical work, assisting them to gain outdoor activity qualifications and useful experience towards church leadership.

Our Strategic Director (appointed last year) was funded by external donations to strengthen Kepplewray’s Aim and Ethos, and to focus on marketing the Centre to new user groups, including combined cadet contingents, churches, and more disability charities. Initially only for 12 months to look at different areas of business and ways of generating income, this role has proved essential and now is added to the full-time staff. The Strategic Director’s initiative coupled with generous support from our donor network and trusts, created a Participation Inclusion Fund (PIF) to enable those with disabilities and disadvantages to participate in Kepplewray’s programmes. The foundations of this Fund were laid this year and post year end we are already seeing significant improvement in bookings:

Ahead of the 2020-21 season, new user groups account for just over one-third of our expected group bookings income (essentially from April – Sept 2021). This is calculated as follows:

➢ The expected value of 70 group invoices is circa £128,750 . This figure includes Broughton Primary meals and some pipeline bookings, and will increase further based on current demand.

➢ Of these , 38 invoices (54%) are/will be for new groups with an expected value of £32,000 (25% of total).

➢ A further £25,000 will be paid from the new Participation Inclusion Fund, 98% of which goes to new groups. This boosts total group bookings income to circa £153,750 .

➢ Therefore so far booked for the season 2020/21, new groups will account for circa £56,500 (36%) of total group bookings income.

As well as the PIF, Kepplewray has increased the number of day visitors and are now offering day activity packages for schools and other user groups in addition to the residential offering. The School Holiday Club started two years ago continues to go from strength to strength with some days over-subscribed. This has been achieved with a grant from the local parish council to enable more local young people to experience outdoor activities.

In order to deliver the level of service and accommodation that such groups require, it is good to report that we have continued to invest in the fabric of the building and the services to our guests. This year and post year end we have made essential repairs and upgrades to the heating system. This is in addition to the internal redecoration of the building that is part of regular upkeep of the estate.

Our thanks are also due to all of those who have made this continued momentum possible. To the staff team in particular, but also to my fellow trustees, to our donors, to our returning user groups, to our essential prayerful supporters and to the Broughton-in-Furness community. The combined efforts of all of these groups have enabled our inclusive journey to continue and to evolve even through a period of great uncertainty and vulnerability.

Continued…………………………………..

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The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Trustees’ report (continued)

Burundi Link – The Bethesda Project

Kepplewray has continued to raise funds, provide training and technical support to the Bethesda Project in Burundi. It is part of the outreach work of the Anglican Diocese of Muyinga and focuses on helping the sick, poor, disabled and outcasts in Muyinga and surrounding villages.

Disability is not well understood in the region, and children with any sort of problem are typically denied education. Bethesda intervenes in many cases by educating families, facilitating / providing medical appointments / medication and aids such as prosthetics and wheelchairs. It also seeks to ensure a means of making a living for those who have none and who are often shunned as a result of their problems. It is a privilege to be involved in this ministry.

During this Covid year the role of the Bethesda Project has been even more important in this impoverished nation. The 4x4 vehicle used by the project became unsafe so, post year-end, a campaign was launched in UK to raise funds for a replacement. We are delighted to say that the £20,000 target was achieved and a vehicle is being purchased in Burundi.

Management Development

In line with good practice, and very much as part of the work of the Development Team, we continue to develop our internal systems, support our staff, implement, review and amend our policies in order to deliver the best possible service to our guests.

Thanks

Donations and grants are vital to the development of the Centre. We are very grateful to all of our supporters and donors.

Financial review and results for the year

The Trust’s year end is 30 September, and the accounts are independently examined annually. The consolidated results are shown in the unaudited accounts attached to this report.

Investment Policy

The Trustees do not envisage the Trust holding investments in the foreseeable future apart from shares in its trading subsidiary. Any shares donated to the group will be sold as soon as they are fully listed.

Reserves Policy

The groups available reserves at 30 September 2020 are in deficit by £727,708 (2019: £729,441) (Charity reserves in deficit by £83,170 (2019: £73,892). Of this amount £706,370 (2019: £670,481) represents long term loan liabilities (Charity £239,140 (2019: £239,140)) which are not due for repayment until more than 12 months from the balance sheet date. After allowing for the above the Groups short term free reserve deficit amounts to £21,338 (2019: £58,960) (Charity reserves in deficit by £36,818 (2019: £29,861). The trustees aim to return the Group deficit to a positive position by a satisfactory conclusion to the negotiations which are taking place which are detailed in note 1 on Going Concern.

Future Development

Work on our five-year Strategic Plan is in abeyance while we consider the short, medium and long-term impact of Covid-19. This has put fresh impetus into applying for grant assistance to replace loss of residential and activity income, and negotiating payment holidays on loans as well as reducing every other expenditure category to the lowest feasible level. Our Strategic Director has refocused our marketing on the Participation Inclusion Fund, where generous support from grant making trusts enables us to offer significant bursaries to disadvantaged and disabled members in mixed ability groups. This is generating interest in day activities and creating relationships which will be interested in residential experiences once Covid-19 is controlled or government advice more consistent.

The most significant development is the long-anticipated partnership with another Christian trust (as detailed in Note 1, Going Concern, below). Over the coming years, the beneficial impact of low interest funding leading to a 'sale and lease back' arrangement, will lower our operating costs, enable significant investment in the premises and secure Kepplewray Trust’s work and future.

Continued…………………………………..

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The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Trustees’ report (continued)

Structure, governance and management

Governing Document

The charity is governed by its Trust deed dating from 1992. The Trustees are granted wide powers of investment and of application of Trust funds towards the charitable objects of the Trust except that they may not undertake permanent trading activities in raising funds to achieve its objects.

Governing body

The charity is governed by its trustees, of whom there are currently five. They are responsible for the administration of the objects of the Trust, having overall control and holding the legal, financial and management responsibility of the charity. They meet at least quarterly, but also receive regular reports from the Management Group.

Recruitment, appointment, induction and training of new Trustees

Potential new trustees are approached by the Chairman on the basis of eligibility, availability, expertise and personal competence. They are normally invited to join the Kepplewray Management Group before being invited to become a trustee. On the group, they are introduced to all of the workings of the Charity. As trustees, they receive copies of Charity Commission newsletters and are informed of training courses that may be suitable for them.

Group structure and relationships

On 1 January 1995 the Trust signed a 99 year lease agreement with Kepplewray Limited, which is wholly owned by the Trust, to secure the exclusive use of the property at Kepplewray and enable the Trust to further its charitable objectives. The results of Kepplewray Limited are shown in note 15 to the financial statements.

Risk Management

The Trustees have identified the major risks to which the charity is exposed. Those risks have been reviewed and systems established to mitigate them. In keeping under review the Trust’s activities, Trustees are mindful of the potential for any changes to the present range of risks, especially those concerning the arrival of Covid-19 and will adjust systems when and where required.

Continued…………………………………..

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The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Trustees’ report (continued)

Statement of trustees' responsibilities

The trustees are responsible for preparing the Trustees’ Annual Report 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 & Wales/Northern Ireland 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 of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and 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 detection of fraud and other irregularities.

The Reverend J R Libby 18/06/2021 Chairman of the Trustees Date ………………………………………………

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The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Independent Examiner's Report to the Trustees of The Kepplewray Trust

I report to the charity trustees on my examination of the accounts of the charity (the ‘parent charity’) and its subsidiary (the ‘group’) for the year ended 30 September 2020 which are set out on pages 10 to 28.

Responsibilities and basis of report

As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity’s accounts (both parent and group) carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.

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

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

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

Ian Clark FCCA MHA Moore & Smalley Chartered Accountants Kendal House Murley Moss Business Village Oxenholme Road Kendal. Cumbria. LA9 7RL

18/06/2021

Date …………………………………….…

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The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Consolidated statement of financial activities for the year ended 30 September 2020

for the year ended 30 September 2020
Notes 2020 2019
Restricted Unrestricted Total Total
funds funds
Income and endowments from: £ £ £ £
Donations and legacies 2 45,234 60,619 105,853 48,396
Charitable activities:
Grants received 3 20,880 63,510 84,390 9,756
Accommodation and activities income - 136,244 136,244 295,750
Other trading activities - 915 915 1,665
Other - 3,078 3,078
 2,624
Total income and endowments 66,114 264,366 330,480
 358,191
Expenditure
Raising funds:
Fundraising trading - 836 836 1,227
Fundraising costs 15,000 15,620 30,620 20,094
Charitable activities
Provision of accommodation and activities 25,970 243,931 269,901 350,499
Other - 15,024 15,024 14,493
Exceptional item - - -
 106,984
Total expenditure 4 40,970 275,411 316,381
 493,297
Net income/ (expenditure) 25,144 (11,045) 14,099 (135,106)
Transfers between funds 14 (7,276)
7,276		 - -
Tax on activities - (2,642) (2,642)
 (2,553)
Net movement in funds 17,868 (6,411) 11,457 (137,659)
Reconciliation of funds:
Fund balance brought forward 14 22,145 30,780 52,925
 190,584
Fund balance carried forward 13,14 40,013 24,369 64,382 52,925

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The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Trust statement of financial activities Trust statement of financial activities
for the year ended 30 September 2020
Notes 2020 2019
Restricted Unrestricted Total Total
funds funds
£ £ £ £
Income and endowments from:
Donations and legacies 2 45,234 60,619 105,853 48,396
Charitable activities:
Grants received 3 20,880 38,510 59,390 9,756
Accommodation and activities income - 136,244 136,244 295,750
Other - 7,887 7,887
 2,624
Total income and endowments 66,114 243,260 309,374
 356,526
Expenditure
Raising funds:
Fundraising costs 7,500 7,782 15,282 4,447
Advertising & Marketing 7,500 7,838 15,338 15,647
Charitable activities:
Provision of accommodation and activities 25,970 234,424 260,394 356,356
Other - 15,024 15,024 14,493
Exceptional item - - -
 27,477
Total expenditure 4 40,970 265,068 306,038
 418,420
Unrealised loss on investment 9 - (17,000) (17,000) (71,000)
Net income/ (expenditure) 25,144 (38,808) (13,664) (132,894)
Transfers between funds 14 (7,276) 7,276 -
 -
Net movement in funds 17,868 (31,532) (13,664) (132,894)
Reconciliation of funds:
Fund balance brought forward 22,145 56,329 78,474
 211,368
Fund balance carried forward 40,013 24,797 64,810 78,474

11

The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Balance sheet at 30 September 2020

Note
Fixed assets
Tangible assets
8
Investments
9
Current assets
Stocks
Debtors: amounts falling due within one
year
10
Debtors: amounts falling due after more
than one year
10
Cash at bank and in hand
Creditors:amounts falling due within
one year
11
Net current assets/(liabilities)
Total assets less current liabilities
Creditors:amounts falling due after
more than one year
12
Net assets
Income funds
Restricted funds
13,14
Unrestricted funds
13,14		 Group
30 Sept
2020
30 Sept
2019
£
£
752,077
760,221
-
-

752,077
760,221

1,668
3,204
6,736
15,852
-
-
96,192
50,862

104,596
69,918
(85,921)
(106,733)

18,675
(36,815)

770,752
723,406
(706,370)
(670,481)

64,382
52,925

40,013
22,145
24,369
30,780

64,382
52,925
 Charity
30 Sept
2020
30 Sept
2019
£
£
79,967
85,221
28,000
45,000

107,967
130,221

1,308
2,465
6,736
15,852
192,788
195,109
44,387
49,615

245,219
263,041
(49,236)
(75,648)

195,983
187,393

303,950
317,614
(239,140)
(239,140)

64,810
78,474

40,013
22,145
24,797
56,329

64,810
78,474

18/06/2021

These financial statements were approved by the board of Trustees on ……………………………………………… and were signed on its behalf by:

……………………………………………… The Reverend JR Libby Trustee

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The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Notes (forming part of the financial statements)

1. Accounting policies

Basis of preparation

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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) issued in October 2019, the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015.

The charity has applied Update Bulletin 1 as published on 2 February 2016 and does not include a cash flow statement on the grounds that it is applying FRS 102 Section 1A.

The Kepplewray Trust meets the definition of a public entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

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

Funds

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity 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. There are no designated funds in the period.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost 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 and gains are allocated to the appropriate fund.

Income recognition policies

All incoming resources are included in the Statement of Financial Activities (SOFA) when it is probable the charity will be legally entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income.

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The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Notes (continued)

1. Accounting policies (continued)

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid after taking account 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 charity has a present obligation 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.

Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources.

Other costs comprise the costs of running the charity, including strategic planning for its future development, also external audit, any legal advice for the trustees, and all the costs of complying with constitutional and statutory requirement, such as the costs of Trustees’ meetings and of preparing statutory accounts and satisfying public accountability.

Rent charged to the charity by its subsidiary company is treated as a cost of the charity, and the intra-group income and costs are excluded from the consolidated figures.

Tangible fixed assets and depreciation

Tangible fixed assets are capitalised and included at cost including any incidental costs of acquisition. Assets which are used by the group for direct charitable purposes are allocated as such. There are no assets otherwise classified.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight line basis over their expected useful economic life as follows:

Freehold property Nil Leasehold improvements Nil Fixtures and fittings 10%/20% Equipment 10%/20% Motor vehicles 25%/12.5% for motorcars 10% with residual value of £1,000 for minibuses Equipment in Burundi 33%

The trustees perform annual impairment reviews to ensure that the recoverable amount is not lower than the carrying value.

Operating leases

Rentals payable under operating leases are charged against income based on occupancy levels.

Investments

Current asset investments are stated at market value at the balance sheet date. The SOFA includes the net gains and losses arising on revaluations and disposals throughout the period.

Fixed asset investments are stated at cost less any provision for permanent diminution in value.

Stock

Stock consists of finished goods for resale and is valued at the lower of cost and net realisable value.

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The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Notes (continued)

1. Accounting policies (continued)

Related party transactions

The Trustees have taken advantage of the exemption in the FRS 102 and have not disclosed related party transactions with its subsidiary undertaking.

Pensions: Defined Contribution

The Charity set up a pension scheme with The Peoples’ Pension in March 2016 to comply with automatic enrolment requirements. Contributions to the scheme are charged in the SOFA as they become payable.

Going concern

At the time of approving the financial statements, the Covid-19 pandemic has created significant economic uncertainty. Lockdown restrictions and the heightened concern over group gatherings have had a significant impact on the number of customers visiting the Kepplewray Centre since March 2020. Government regulations, guides as to ‘best practice’, and the preferences and priorities of our major user groups are continually changing, all of which creates further uncertainty. We are aware of the support that Government has pledged to do everything they believe necessary. Where able, we have and will continue to take advantage of the support available to ensure that we continue to operate within our available cash reserves and bank facilities through this period of uncertainty.

The financial statements have been prepared on a going concern basis. The group has net current assets of £18,675 (2019: net current liabilities £36,815) and therefore without the realisation of tangible fixed assets is dependent upon the generation of future income from all sources, including Governmental Covid-19 support packages, and the continued support of its longer-term creditors to meet these and future liabilities as they fall due.

The short-term future remains uncertain as the route out of lockdown is negotiated. We continue to be encouraged by the grant support for Participation Inclusion Fund (PIF) and the business that comes from this, even in such a climate. In addition, the trustees are in the latter stages of negotiations with a supportive trust to secure c£460,000 of long-term finance to restructure the group’s financial affairs. This loan to Kepplewray Trust (KT) will be interest free for at least 3 years and will enable KT to purchase the freehold property currently owned by KT’s subsidiary, Kepplewray Ltd (KL). In good faith, to support KT and to assist the proposed future relationship, this trust has already provided the funds to replace the c£50k Barclays Business loan. The supportive trust is then expected to exercise their option to purchase the building from KT and lease back to KT, enabling KT to better focus on its charitable activities. As part of this arrangement a 5-year lease holiday will enable significant investment in the property itself. In turn KL will then repay its existing bank mortgage and thus substantially reduce overall interest costs for the group. The transaction will also ensure the sums due from KL to KT are also fully settled. Once the bank loan in KL has been settled, the new loan, together with an existing interest free loan of c£240,000 from this trust to KT will be secured on the freehold property. The Trustees of both charities are in favour of this in principle as, because of aligned aims, there is synergy and financial benefits.

The trustees recognise that during the very uncertain times of the Covid-19 pandemic and whilst legal documentation in respect of the finance restructure with the supportive trust remains unsigned there remain material uncertainties. However, The Trustees have noted the £50k advance receipt and considered the expected level of income and expenditure for the period of 12 months from the date of authorising these financial statements and believe the group can operate within the available cash reserves and bank facilities. Expenditure has been aggressively managed and significantly reduced. Other ‘day income’ possibilities have been explored with some success, other grant making trusts are actively considering adding their support and the bounce back loan is drawn down but unused by way of an additional insurance policy. Several potential new user groups have been identified and are making encouraging exploratory visits and some bookings for the future. The trustees also have every confidence that the above refinancing will be in place in the very near future and in view of all the above are satisfied the group will continue as a going concern for the foreseeable future.

On the basis of the above the trustees are satisfied that it is appropriate to prepare the accounts on a going concern basis

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The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Notes (continued)

1. Accounting policies (continued)

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

2. Donations and gifts

Individuals
Donated facilities
Charitable foundations
Companies		 2020
Group
Charity
£
£
54,033
54,033
9,566
9,566
17,254
17,254
25,000
25,000
105,853
105,853		 2019
Group
£
28,699
9,566
10,131
-
48,396		 Charity
£
28,699
9,566
10,131
-
48,396

Of the £105,853 received in 2020 (2019: £48,396) £45,234 was restricted funds (2019: £14,715) and £60,619 was unrestricted (2019: £33,681).

The charity is indebted to individuals for providing interest-free loans to the group. The value placed on this contribution is £9,566 (2019: £9,566), (Trust £9,566 (2019: £9,566)). The income equivalent is recognised within incoming resources as a donation, and an equivalent charge is included within interest payable.

3. Grants received

CGP
Keswick 2 Barrow
Proven Family Trust
Co-op Community Fund
Hadfield Trust
LCVS
Bruce Wake Charitable Trust
John Gilpin Trust
Bramall Foundation
Cumbria Community Foundation
Edward Gosling Foundation
Government Job Retention Scheme
SLDC Business Support Grant		 2020
Group
£
-
190
400
-
2,000
-
1,380
2,000
10,000
1,500
3,600
38,320
25,000
84,390
 2020
Charity
£
-
190
400
-
2,000
-
1,380
2,000
10,000
1,500
3,600
38,320
-
59,390
 2019
Group
£
1,250
300
-
3,076
2,880
250
2,000
-
-
-
-
-
-
9,756
 2019
Charity
£
1,250
300
-
3,076
2,880
250
2,000
-
-
-
-
-
-
9,756

Of the £84,390 received in 2020 (2019: £9,756) (Charity: £59,390 (2019: £9,756)) £20,880 was restricted funds (2019: £9,456) (Charity £20,880 (2019: £9,456)) and £63,510 unrestricted funds (2019: £300) (Charity: £38,510 (2019: £300)).

16

The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Notes (continued)

4. Total expenditure – Group

Staff costs
Other direct
costs
Other allocated
costs
£
£
£
Fundraising trading
-
836
-
Fundraising costs
Advertising
3,282
2,961
12,000
12,377
-
-
Provision of accommodation and activities
134,521
135,380
-
Other
9,848
5,176
-
Exceptional item
-
-
-

Total expenditure
150,612
165,769
-

Staff costs
Other direct
costs
Other allocated
costs
£
£
£
Fundraising trading
-
1,227
-
Fundraising costs
Advertising
3,687
9,113
760
6,534
-
-
Provision of accommodation and activities
155,977
194,522
-
Other
Exceptional item
11,061
-
3,432
106,984
-
-

Total expenditure
179,838
313,459
-		 2020
£
836
15,282
15,338
269,901
15,024
-
316,381
2019
£
1,227
4,447
15,647
350,499
14,493
106,984
493,297

Staff costs as per Note 6

Exceptional item

The exceptional item in 2019 represents a provision for diminution in value of freehold land and buildings.

Other direct costs include:

2020 2019
£ £
Accountants’ remuneration 8,973 5,947
Depreciation 16,051 17,538
Interest payable 20,415 15,665

17

The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Notes (continued)

4. Total expenditure (continued) – Charity

Staff costs
Other direct
costs
Other allocated
costs
£
£
£
Fundraising costs
Advertising
3,282
2,961
12,000
12,377
-
-
Provision of accommodation and activities
134,521
125,873
-
Other
9,848
5,176
-
Exceptional item
-
-
-

Total expenditure
150,612
155,426
-

Staff costs
Other direct
costs
Other allocated
costs
£
£
£
Fundraising costs
Advertising
3,687
9,113
760
6,534
-
-
Provision of accommodation and activities
155,977
200,379
-
Other
Exceptional item
11,061
-
3,432
27,477
-
-

Total expenditure
179,838
238,582
-		 2020
£
15,282
15,338
260,394
15,024
-
306,038
2019
£
4,447
15,647
356,356
14,493
27,477
418,420

Staff costs as per Note 6

Exceptional item

The exceptional item in 2019 represents a provision for diminution in value of freehold land and buildings.

Other direct costs include:

2020 2019
£ £
Accountants’ remuneration 5,176 3,432
Depreciation 13,161 14,648
Interest payable 9,577 9,566

18

The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Notes (continued)

5. Trustees' remuneration

The Trustees received no remuneration during the year, either from the charity, or from Kepplewray Limited in their capacity as directors (2019: £Nil). Reimbursement of travel and meeting expenses to trustees amounted to £Nil (2019: £Nil).

6. Staff numbers and costs

The total wages and salaries costs for the group were as follows:

Wages and salaries
Social security costs
Pension costs
Group total		 2020
£
140,133
4,924
5,555
150,612		 2019
£
167,444
6,887
5,507
179,838

There were no employees receiving more than £60,000 in the year (2019: None).

The average number of employees during the year, analysed by function, was as follows:


Cost of generating funds
Charitable activities
Management and administration of the charity
Group total		 Number of employees
2020
2019
1
1
4
4
3
3
8
8

Kepplewray Limited now has a total of 2 (2019: 3) directors. The director who resigned from Kepplewray Ltd in August 2020 remains a trustee of Kepplewray Trust.

19

The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Notes (continued)

7. Pensions

Defined Contribution Scheme: contributions amounted to £5,555 (2019: £5,507). There were no amounts outstanding at the period end (2019: £Nil). Of the £5,555 in 2020 (2019: £5,507) £nil was restricted costs (2019: £nil) and £5,555 unrestricted costs (2019: £5,507).

8. Tangible fixed assets

Group
Cost
At 1 October 2019
Additions
Disposals
At 30 September 2020
Depreciation
At 1 October 2019
Charge for year
Disposals
At 30 September 2020
Net book value
At 30 September 2020
At 30 September 2019		 Freehold
land and
buildings
Fixtures,
fittings and
equipment
£
£
802,717
255,730
-
7,907
(594)
-		 Freehold
land and
buildings
Fixtures,
fittings and
equipment
£
£
802,717
255,730
-
7,907
(594)
-		 Freehold
land and
buildings
Fixtures,
fittings and
equipment
£
£
802,717
255,730
-
7,907
(594)
-		 Motor
vehicles
Total
£
£
51,043
1,109,490
-
-
7,907
(594)		 Motor
vehicles
Total
£
£
51,043
1,109,490
-
-
7,907
(594)
802,717 263,043 51,043
1,116,803
106,984
-
-		 220,870
11,446
(594)		 21,415
4,605
-		 349,269
16,051
(594)
106,984 231,722 26,020 364,726
695,733
695,733		 31,321
34,860		 25,023

29,628		 752,077
760,221

All of the fixed assets of the group are used by the group for direct charitable purposes.

20

The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Notes (continued)

8. Tangible fixed assets (continued)

Tangible fixed assets (continued)
Charity
Cost
At 1 October 2019
Additions
Disposals
At 30 September 2020
Depreciation
At 1 October 2019
Charge for year
Disposals
At 30 September 2020
Net book value
At 30 September 2020
At 30 September 2019		 Land and
leasehold
improvements
Equipment
£
£
67,477
160,904
-
7,907
-
(594)		 Motor
vehicles
£
51,043
-
-		 Total
£
279,424
7,907
(594)
67,477 168,217 51,043 286,737
27,477
-
-		 145,311
8,556
(594)		 21,415
4,605
-		 194,203
13,161
(594)
27,477 153,273 26,020 206,770
40,000
40,000		 14,944
15,593		 25,023

29,628		 79,967
85,221

All of the charity’s fixed assets are used by the charity for direct charitable purposes.

21

The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Notes (continued)

9. Investments

Fixed asset investments: Investments in subsidiary undertaking

Charity
Ordinary £1 shares in Kepplewray Limited
Cost at 1 October 2019 and 30 September 2020

Net book value
Net book value at 1 October 2019
Unrealised loss on investment
Net book value at 30 September 2020
Debtors
Group
Trade debtors
Other debtors
Charity
Trade debtors
Other debtors
Group company (*)		 2020
£
116,000

45,000
(17,000)

28,000

2020
£
3,353
3,383
6,736
£
3,353
3,383
192,788
199,524		 2019
£
116,000
116,000
(71,000)


45,000
2019
£
8,580
7,272
15,852
£
8,580
7,272
195,109
210,961

10. Debtors

*The amount owing from the group company is due after more than one year. The charity’s subsidiary company, Kepplewray Limited, is currently reliant on the charity to assist with bank loan repayments. Kepplewray Limited is not currently in a position to repay the group debt. Accordingly, this debtor is stated as being due after more than one year. As stated in note 1, page 14, Going Concern, the Trustees are in negotiation with a supportive trust to secure long-term finance to restructure the group’s financial affairs which will assist with the repayment of outstanding debts.

22

The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Notes (continued)

11. Creditors: amounts falling due within one year

Group
Bank loans and overdrafts
Trade creditors
Other taxation and social security
Accruals and deferred income
Movements in deferred income are as follows:
Balance at 1 October 2019
Amount (released)/deferred in the year
Balance as at 30 September 2020		 2020
£
28,500
13,780
3,799
39,842
85,921
2020
£
42,353
(16,030)
26,323		 2019
£
23,500
24,910
5,028
53,295
106,733
2019
£
33,562
8,791
42,353

The bank loan and overdraft are secured by a first legal charge over the land and buildings of Kepplewray Limited.

Charity
Bank overdraft
Trade creditors
Other taxation and social security
Accruals and deferred income
Movements in deferred income are as follows:
Balance at 1 October 2019
Amount (released)/deferred in the year
Balance as at 30 September 2020		 2020
£
-
11,237
1,157
36,842
_
49,236
2020
£
42,353
(16,030)
26,323		 2019
£
-
22,378
2,475
50,795
_
75,648
2019
£
33,562
8,791
42,353

23

The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Notes (continued)

12. Creditors: amounts falling due after more than one year

Group
Bank loans
Other loans
Analysis of loans
Wholly repayable within five years:
By instalments
Other than by instalments
Not wholly repayable within five years:
By instalments
Other than by instalments
Included in current liabilities		 2020
£
495,730
239,140
734,870
£
48,221
239,140
447,509
-
_
734,870
(28,500)
706,370		 2019
£
454,841
239,140
693,981
£
49,492
239,140
405,349
-
_
693,981
(23,500)
670,481

24

The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Notes (continued)

12. Creditors: amounts falling due after more than one year (continued)

The Barclays Bank loan (£397,509) is repayable over twenty-five years and will be repaid in full by December 2033. It bears interest at 2% over base rate. The bank loan is secured by a fixed charge over the freehold property of Kepplewray Limited. A flexible business loan with Barclays Bank was taken out in November 2015, also secured by a fixed charge over the freehold property of Kepplewray Limited. This loan has since been repaid in full in March 2021. The aggregate amount of secured liabilities at 30 September 2020 amounted to £445,730 (2019: £454,841).

A government-secured bounce back loan for £50,000 was taken out with Barclays Bank in July 2020, to ease the impact of the coronavirus restrictions.

Other loans totalling £239,140 (2019: £239,140) are interest free. The Directors and Trustees have received assurance from the lender confirming there is no obligation to repay before January 2022.

Analysis of loans
Wholly repayable within five years
By instalments
Other than by instalments
Not wholly repayable within five years
By instalments
Other than by instalment
Included in current liabilities
Charity
Other loans
Bank loans		 £
-
239,140
-
-
_
239,140
-
239,140
______
2020
£
239,140
-
_
239,140		 £
-
239,140
-
-
_
239,140
-
239,140
__
2019
£
239,140
-
_____
239,140

25

The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

13. Analysis of group net assets between funds
2020 Restricted Unrestricted Total funds
funds funds
£ £ £
Group
Tangible fixed assets - 752,077 752,077
Current assets 40,013 64,583 104,596
Current liabilities - (85,921) (85,921)
Long term liabilities - (706,370)
 (706,370)
40,013 24,369
 64,382
2019 Restricted Unrestricted Total funds
funds funds
£ £ £
Group
Tangible fixed assets - 760,221 760,221
Current assets 22,145 47,773 69,918
Current liabilities - (106,733) (106,733)
Long term liabilities - (670,481)
 (670,481)
22,145 30,780
 52,925
14. Statement of funds - Group
2020 General funds Restricted Total
funds
£ £ £
At beginning of year 30,780 22,145 52,925
Income and endowments 264,366 66,114 330,480
Resources expended (275,411) (40,970) (316,381)
Transfer 7,276 (7,276) -
Tax payable (2,642) -
 (2,642)
24,369 40,013
 64,382
2019 General funds Restricted Total
funds
£ £ £
At beginning of year 168,860 21,724 190,584
Income and endowments 334,020 24,171 358,191
Resources expended (470,578) (22,719) (493,297)
Transfer 1,031 (1,031) -
Tax payable (2,553) -
 (2,553)
30,780 22,145 52,925

26

The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Notes (continued)

14. Statement of funds – Group (continued)

The general reserve represents the free funds of the charity which are not designated for particular purposes.

The other transfers made between funds (as shown in the statement of financial activities) relate to restricted income which has been expended on assets and is no longer required to be shown within the restricted funds balance.

15. Subsidiary company

The charity owns the whole of the issued share capital of Kepplewray Limited, a company registered in England. The subsidiary owns the property leased to the charity, from which the charity's activities take place. All activities of the company have been consolidated on a line by line basis in the SOFA.

A summary of the results of the subsidiary is shown below:

Kepplewray Limited

Turnover
Cost of sales
Gross profit
Administrative expenses
Other operational income
Exceptional item
Net profit/(loss)
Tax payable
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities		 Total
2020
£
9,498
(836)
8,662
(22,899)
25,000
-
10,763
(2,642)
8,121
724,274
(696,702)
27,572		 Total
2019
£
34,792
(1,227)
33,565
(27,270)
-
(79,507)
(73,212)
(2,553)
(75,765)
676,986
(657,535)
19,451

27

The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Notes (continued)

16. Related party transactions

There were no related party transactions during the current year. Loans totalling £29,600 from Reverend J R Libby (trustee) and Mrs D Libby to Kepplewray Trust were repaid in full during the previous year. Loans totalling £65,500 from J H Powley (previously a trustee) to Kepplewray Ltd were repaid in full during the previous year.

17. Taxation

As a charity, Kepplewray Trust is exempt from tax on income and gains falling within sections 472-474 of the Corporation Tax Act 2010, sections 478-489 of the Corporation Tax Act 2010, or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the Charity.

18. Control

There is no single controlling party of the Trust in the current and previous year.

19. Operating Lease

Kepplewray Trust leases the premises from Kepplewray Limited under a 99 year lease dated 1 January 1995 . The annual rental is subject to occupancy levels but will not exceed £70,000 plus VAT.

28

The Kepplewray Trust Trustees’ report and consolidated financial statements 30 September 2020

Detailed Trust income and expenditure account
for the year ended 30 September 2020
Incoming resources
Donations
Grants received
Gift aid and covenant income
Accommodation income
Other income
Events
Government grants
Total incoming resources
Direct charitable expenditure
Salaries
Freelancers
Bethesda costs
Expenses
Staff costs
Rental
Rates and premises cost
Repairs and maintenance
Accommodation provision costs
Establishment costs
Total direct charitable expenditure
Other expenditure
Advertising & Marketing
Fundraising
Other costs
Telephone, postage and carriage
Audit and accountancy
Bank charges and interest
Loan interest
Depreciation and profit on disposal of fixed asset
Administrative expenses
Exceptional item
Unrealised loss on investment
Total expenses
Net movement in funds		 2020
£
77,780
21,070
28,073
136,244
6,482
1,405
38,320

309,374

150,612
9,203
18,629
204

178,648

8,583
18,715
16,367
29,542

73,207

251,855

12,377
12,000

24,377

1,776
5,176
481
9,577
12,796
_
29,806
-
17,000

323,038

(13,664)
 2019
£
25,509
9,756
22,887
295,750
21
2,603
-
356,526
179,838
15,590
10,719
551
206,698
33,127
24,073
39,415
50,341
146,956
353,654
6,535
760
7,295
1,997
3,432
598
9,566
14,401
_
29,994
27,477
71,000
489,420
(132,894)

This page does not form part of the statutory financial statements.

29

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