**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…………………………………..** 

5 



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…………………………………..** 


6 



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…………………………………..** 

7 



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: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP 2019 (FRS 102); 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

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 ………………………………………………** 


8 



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 …………………………………….… 


9 



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**<br>|2,624|
|**Total income and endowments**||**66,114**|**264,366**|**330,480**<br>|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||**-**|**-**|**-**<br>|106,984|
|**Total expenditure**|_4_|**40,970**|**275,411**|**316,381**<br>|493,297|
|Net income/ (expenditure)||**25,144**|**(11,045)**|**14,099**|(135,106)|
|Transfers between funds|_14_|**(7,276)**|<br>**7,276**|**-**|-|
|Tax on activities||**-**|**(2,642)**|**(2,642)**<br>|(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**<br>|190,584|
|Fund balance carried forward|_13,14_|**40,013**|**24,369**|**64,382**|52,925|




10 



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**<br>|2,624|
|**Total income and endowments**||**66,114**|**243,260**|**309,374**<br>|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||**-**|**-**|**-**<br>|27,477|
|**Total expenditure**|_4_|**40,970**|**265,068**|**306,038**<br>|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**|**-**<br>|-|
|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**<br>|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_<br>**Fixed assets**<br>Tangible assets<br>_8_<br>Investments<br>_9_<br>**Current assets**<br>Stocks<br>Debtors: amounts falling due within one<br>year<br>_10_<br>Debtors: amounts falling due after more<br>than one year<br>_10_<br>Cash at bank and in hand<br>**Creditors:**amounts falling due within<br>one year<br>_11_<br>**Net current assets/(liabilities)**<br>**Total assets less current liabilities**<br>**Creditors:**amounts falling due after<br>more than one year<br>_12_<br>**Net assets**<br>**Income funds**<br>Restricted funds<br>_13,14_<br>Unrestricted funds<br>_13,14_|**Group**<br>**30 Sept**<br>**2020**<br>30 Sept<br>2019<br>**£**<br>£<br>**752,077**<br>760,221<br>**-**<br>-<br> <br>**752,077**<br>760,221<br> <br>**1,668**<br>3,204<br>**6,736**<br>15,852<br>**-**<br>-<br>**96,192**<br>50,862<br> <br>**104,596**<br>69,918<br>**(85,921)**<br>(106,733)<br> <br>**18,675**<br>(36,815)<br> <br>**770,752**<br>723,406<br>**(706,370)**<br>(670,481)<br> <br>**64,382**<br>52,925<br> <br>**40,013**<br>22,145<br>**24,369**<br>30,780<br> <br>**64,382**<br>52,925<br>|Charity<br>**30 Sept**<br>**2020**<br>30 Sept<br>2019<br>**£**<br>£<br>**79,967**<br>85,221<br>**28,000**<br>45,000<br> <br>**107,967**<br>130,221<br> <br>**1,308**<br>2,465<br>**6,736**<br>15,852<br>**192,788**<br>195,109<br>**44,387**<br>49,615<br> <br>**245,219**<br>263,041<br>**(49,236)**<br>(75,648)<br> <br>**195,983**<br>187,393<br> <br>**303,950**<br>317,614<br>**(239,140)**<br>(239,140)<br> <br>**64,810**<br>78,474<br> <br>**40,013**<br>22,145<br>**24,797**<br>56,329<br> <br>**64,810**<br>78,474<br>|
|---|---|---|



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_ 


12 



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. 

- Accommodation and activity income are recognised when the party has stayed at the premises and the service has been provided. If a stay spans the year end, income will be accrued for the proportion of the stay falling into the earlier year. 

- Voluntary income is received by way of grants, donations and gifts and is included in full in the SOFA when receivable. Grants where entitlement is not conditional on the delivery of a specific performance by the charity are recognised when the charity becomes unconditionally entitled to the grant. For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. 

- The value of services provided by volunteers is not incorporated into these financial statements. Where services are provided to the charity as a donation that would normally be purchased from our suppliers, this contribution is included in the financial statements at an estimate based on the value of the contribution to the charity. Donated services and facilities are analysed in note 2. 

- Investment income is included when receivable. 


13 



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. 


14 



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 


15 



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<br>Donated facilities<br>Charitable foundations<br>Companies|**2020**<br>**Group**<br>**Charity**<br>**£**<br>**£**<br>**54,033**<br>**54,033**<br>**9,566**<br>**9,566**<br>**17,254**<br>**17,254**<br>**25,000**<br>**25,000**<br>**105,853**<br>**105,853**|2019<br>Group<br>£<br>28,699<br>9,566<br>10,131<br>-<br>48,396|Charity<br>£<br>28,699<br>9,566<br>10,131<br>-<br>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<br>Keswick 2 Barrow<br>Proven Family Trust<br>Co-op Community Fund<br>Hadfield Trust<br>LCVS<br>Bruce Wake Charitable Trust<br>John Gilpin Trust<br>Bramall Foundation<br>Cumbria Community Foundation<br>Edward Gosling Foundation<br>Government Job Retention Scheme<br>SLDC Business Support Grant|**2020**<br>**Group**<br>**£**<br>**-**<br>**190**<br>**400**<br>**-**<br>**2,000**<br>**-**<br>**1,380**<br>**2,000**<br>**10,000**<br>**1,500**<br>**3,600**<br>**38,320**<br>**25,000**<br>**84,390**<br>|**2020**<br>**Charity**<br>**£**<br>**-**<br>**190**<br>**400**<br>**-**<br>**2,000**<br>**-**<br>**1,380**<br>**2,000**<br>**10,000**<br>**1,500**<br>**3,600**<br>**38,320**<br>-<br>**59,390**<br>|2019<br>Group<br>£<br>1,250<br>300<br>-<br>3,076<br>2,880<br>250<br>2,000<br>-<br>-<br>-<br>-<br>-<br>-<br>9,756<br>|2019<br>Charity<br>£<br>1,250<br>300<br>-<br>3,076<br>2,880<br>250<br>2,000<br>-<br>-<br>-<br>-<br>-<br>-|
|---|---|---|---|---|
|||||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<br>Other direct<br>costs<br>Other allocated<br>costs<br>£<br>£<br>£<br>Fundraising trading<br>-<br>836<br>-<br>Fundraising costs<br>Advertising<br>3,282<br>2,961<br>12,000<br>12,377<br>-<br>-<br>Provision of accommodation and activities<br>134,521<br>135,380<br>-<br>Other<br>9,848<br>5,176<br>-<br>Exceptional item<br>-<br>-<br>-<br> <br>Total expenditure<br>150,612<br>165,769<br>-<br> <br>Staff costs<br>Other direct<br>costs<br>Other allocated<br>costs<br>£<br>£<br>£<br>Fundraising trading<br>-<br>1,227<br>-<br>Fundraising costs<br>Advertising<br>3,687<br>9,113<br>760<br>6,534<br>-<br>-<br>Provision of accommodation and activities<br>155,977<br>194,522<br>-<br>Other<br>Exceptional item<br>11,061<br>-<br>3,432<br>106,984<br>-<br>-<br> <br>Total expenditure<br>179,838<br>313,459<br>-|**2020**<br>**£**<br>**836**<br>**15,282**<br>**15,338**<br>**269,901**<br>**15,024**<br>**-**<br>**316,381**<br>2019<br>£<br>1,227<br>4,447<br>15,647<br>350,499<br>14,493<br>106,984<br>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<br>Other direct<br>costs<br>Other allocated<br>costs<br>£<br>£<br>£<br>Fundraising costs<br>Advertising<br>3,282<br>2,961<br>12,000<br>12,377<br>-<br>-<br>Provision of accommodation and activities<br>134,521<br>125,873<br>-<br>Other<br>9,848<br>5,176<br>-<br>Exceptional item<br>-<br>-<br>-<br> <br>Total expenditure<br>150,612<br>155,426<br>-<br> <br>Staff costs<br>Other direct<br>costs<br>Other allocated<br>costs<br>£<br>£<br>£<br>Fundraising costs<br>Advertising<br>3,687<br>9,113<br>760<br>6,534<br>-<br>-<br>Provision of accommodation and activities<br>155,977<br>200,379<br>-<br>Other<br>Exceptional item<br>11,061<br>-<br>3,432<br>27,477<br>-<br>-<br> <br>Total expenditure<br>179,838<br>238,582<br>-|**2020**<br>**£**<br>**15,282**<br>**15,338**<br>**260,394**<br>**15,024**<br>**-**<br>**306,038**<br>2019<br>£<br>4,447<br>15,647<br>356,356<br>14,493<br>27,477<br>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<br>Social security costs<br>Pension costs<br>Group total|**2020**<br>**£**<br>**140,133**<br>**4,924**<br>**5,555**<br>**150,612**|2019<br>£<br>167,444<br>6,887<br>5,507<br>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: 

|<br>Cost of generating funds<br>Charitable activities<br>Management and administration of the charity<br>Group total|**Number of employees**<br>**2020**<br>2019<br>**1**<br>1<br>**4**<br>4<br>**3**<br>3<br>**8**<br>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**<br>**_Cost_**<br>At 1 October 2019<br>Additions<br>Disposals<br>At 30 September 2020<br>**_Depreciation_**<br>At 1 October 2019<br>Charge for year<br>Disposals<br>At 30 September 2020<br>**_Net book value_**<br>**At 30 September 2020**<br>At 30 September 2019|**Freehold**<br>**land and**<br>**buildings**<br>**Fixtures,**<br>**fittings and**<br>**equipment**<br>£<br>£<br>802,717<br>255,730<br>-<br>7,907<br>(594)<br>-|**Freehold**<br>**land and**<br>**buildings**<br>**Fixtures,**<br>**fittings and**<br>**equipment**<br>£<br>£<br>802,717<br>255,730<br>-<br>7,907<br>(594)<br>-|**Freehold**<br>**land and**<br>**buildings**<br>**Fixtures,**<br>**fittings and**<br>**equipment**<br>£<br>£<br>802,717<br>255,730<br>-<br>7,907<br>(594)<br>-|**Motor**<br>**vehicles**<br>**Total**<br>£<br>£<br>51,043<br>1,109,490<br>-<br>-<br>7,907<br>(594)|**Motor**<br>**vehicles**<br>**Total**<br>£<br>£<br>51,043<br>1,109,490<br>-<br>-<br>7,907<br>(594)|
|---|---|---|---|---|---|
|||802,717|263,043|51,043<br>1,116,803||
|||106,984<br>-<br>-|220,870<br>11,446<br>(594)|21,415<br>4,605<br>-|349,269<br>16,051<br>(594)|
|||106,984|231,722|26,020|364,726|
|||**695,733**<br>695,733|**31,321**<br>34,860|**25,023**<br> <br>29,628|**752,077**<br>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**<br>**_Cost_**<br>At 1 October 2019<br>Additions<br>Disposals<br>At 30 September 2020<br>**_Depreciation_**<br>At 1 October 2019<br>Charge for year<br>Disposals<br>At 30 September 2020<br>**_Net book value_**<br>**At 30 September 2020**<br>At 30 September 2019|**Land and**<br>**leasehold**<br>**improvements**<br>**Equipment**<br>£<br>£<br>67,477<br>160,904<br>-<br>7,907<br>-<br>(594)|||**Motor**<br>**vehicles**<br>£<br>51,043<br>-<br>-|**Total**<br>£<br>279,424<br>7,907<br>(594)|
|||67,477|168,217|51,043|286,737|
|||27,477<br>-<br>-|145,311<br>8,556<br>(594)|21,415<br>4,605<br>-|194,203<br>13,161<br>(594)|
|||27,477|153,273|26,020|206,770|
|||**40,000**<br>40,000|**14,944**<br>15,593|**25,023**<br> <br>29,628|**79,967**<br>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**<br>Ordinary £1 shares in Kepplewray Limited<br>Cost at 1 October 2019 and 30 September 2020<br> <br>**Net book value**<br>Net book value at 1 October 2019<br>Unrealised loss on investment<br>Net book value at 30 September 2020<br>**Debtors**<br>**Group**<br>Trade debtors<br>Other debtors<br>**Charity**<br>Trade debtors<br>Other debtors<br>Group company (*)|**2020**<br>**£**<br>**116,000**<br> <br>**45,000**<br>**(17,000)**<br> <br>**28,000**<br> <br>**2020**<br>**£**<br>**3,353**<br>**3,383**<br>**6,736**<br>**£**<br>**3,353**<br>**3,383**<br>**192,788**<br>**199,524**|2019<br>£<br>116,000<br>116,000<br>(71,000)<br> <br> <br>45,000<br>2019<br>£<br>8,580<br>7,272<br>15,852<br>£<br>8,580<br>7,272<br>195,109<br>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**<br>Bank loans and overdrafts<br>Trade creditors<br>Other taxation and social security<br>Accruals and deferred income<br>Movements in deferred income are as follows:<br>Balance at 1 October 2019<br>Amount (released)/deferred in the year<br>Balance as at 30 September 2020|**2020**<br>**£**<br>**28,500**<br>**13,780**<br>**3,799**<br>**39,842**<br>**85,921**<br>**2020**<br>**£**<br>**42,353**<br>**(16,030)**<br>**26,323**|2019<br>£<br>23,500<br>24,910<br>5,028<br>53,295<br>106,733<br>2019<br>£<br>33,562<br>8,791<br>42,353|
|---|---|---|



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

|**Charity**<br>Bank overdraft<br>Trade creditors<br>Other taxation and social security<br>Accruals and deferred income<br>Movements in deferred income are as follows:<br>Balance at 1 October 2019<br>Amount (released)/deferred in the year<br>Balance as at 30 September 2020|**2020**<br>**£**<br>**-**<br>**11,237**<br>**1,157**<br>**36,842**<br>_______<br>**49,236**<br>**2020**<br>**£**<br>**42,353**<br>**(16,030)**<br>**26,323**|2019<br>£<br>-<br>22,378<br>2,475<br>50,795<br>_______<br>75,648<br>2019<br>£<br>33,562<br>8,791<br>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**<br>Bank loans<br>Other loans<br>Analysis of loans<br>Wholly repayable within five years:<br>By instalments<br>Other than by instalments<br>Not wholly repayable within five years:<br>By instalments<br>Other than by instalments<br>Included in current liabilities|**2020**<br>**£**<br>**495,730**<br>**239,140**<br>**734,870**<br>**£**<br>**48,221**<br>**239,140**<br>**447,509**<br>**-**<br>**_______**<br>**734,870**<br>**(28,500)**<br>**706,370**|2019<br>£<br>454,841<br>239,140<br>693,981<br>£<br>49,492<br>239,140<br>405,349<br>-<br>_______<br>693,981<br>(23,500)<br>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<br>Wholly repayable within five years<br>By instalments<br>Other than by instalments<br>Not wholly repayable within five years<br>By instalments<br>Other than by instalment<br>Included in current liabilities<br>**Charity**<br>Other loans<br>Bank loans|**£**<br>**-**<br>**239,140**<br>**-**<br>**-**<br>**_______**<br>**239,140**<br>**-**<br>**239,140**<br>**______**<br>**2020**<br>**£**<br>**239,140**<br>**-**<br>**_______**<br>**239,140**|£<br>-<br>239,140<br>-<br>-<br>_______<br>239,140<br>-<br>239,140<br>______<br>2019<br>£<br>239,140<br>-<br>_______<br>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)<br>|(706,370)|
|||40,013|24,369<br>|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)<br>|(670,481)|
|||22,145|30,780<br>|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)|-<br>|(2,642)|
|||24,369|40,013<br>|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)|-<br>|(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<br>Cost of sales<br>Gross profit<br>Administrative expenses<br>Other operational income<br>Exceptional item<br>Net profit/(loss)<br>Tax payable<br>The aggregate of the assets, liabilities and funds was:<br>Assets<br>Liabilities|**Total**<br>**2020**<br>£<br>**9,498**<br>**(836)**<br>**8,662**<br>**(22,899)**<br>**25,000**<br>**-**<br>**10,763**<br>**(2,642)**<br>**8,121**<br>**724,274**<br>**(696,702)**<br>**27,572**|Total<br>2019<br>£<br>34,792<br>(1,227)<br>33,565<br>(27,270)<br>-<br>(79,507)<br>(73,212)<br>(2,553)<br>(75,765)<br>676,986<br>(657,535)<br>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**<br>**_for the year ended 30 September 2020_**<br>**Incoming resources**<br>Donations<br>Grants received<br>Gift aid and covenant income<br>Accommodation income<br>Other income<br>Events<br>Government grants<br>**Total incoming resources**<br>**Direct charitable expenditure**<br>Salaries<br>Freelancers<br>Bethesda costs<br>Expenses<br>**_Staff costs_**<br>Rental<br>Rates and premises cost<br>Repairs and maintenance<br>Accommodation provision costs<br>**_Establishment costs_**<br>**Total direct charitable expenditure**<br>**Other expenditure**<br>Advertising & Marketing<br>Fundraising<br>**_Other costs_**<br>Telephone, postage and carriage<br>Audit and accountancy<br>Bank charges and interest<br>Loan interest<br>Depreciation and profit on disposal of fixed asset<br>**_Administrative expenses_**<br>**_Exceptional item_**<br>**_Unrealised loss on investment_**<br>**Total expenses**<br>**Net movement in funds**|**2020**<br>**£**<br>**77,780**<br>**21,070**<br>**28,073**<br>**136,244**<br>**6,482**<br>**1,405**<br>**38,320**<br> <br>**309,374**<br> <br>**150,612**<br>**9,203**<br>**18,629**<br>**204**<br> <br>**178,648**<br> <br>**8,583**<br>**18,715**<br>**16,367**<br>**29,542**<br> <br>**73,207**<br> <br>**251,855**<br> <br>**12,377**<br>**12,000**<br> <br>**24,377**<br> <br>**1,776**<br>**5,176**<br>**481**<br>**9,577**<br>**12,796**<br>_______<br>**29,806**<br>**-**<br>**17,000**<br> <br>**323,038**<br> <br>**(13,664)**<br>|2019<br>£<br>25,509<br>9,756<br>22,887<br>295,750<br>21<br>2,603<br>-<br>356,526<br>179,838<br>15,590<br>10,719<br>551<br>206,698<br>33,127<br>24,073<br>39,415<br>50,341<br>146,956<br>353,654<br>6,535<br>760<br>7,295<br>1,997<br>3,432<br>598<br>9,566<br>14,401<br>_______<br>29,994<br>27,477<br>71,000<br>489,420<br>(132,894)<br>|
|---|---|---|



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


29 



g Offices in Pieston. 8lackpool. EaslMidland4
Kend41. KiikbyLonsd8le. Lancastpi. Liverpool.
Manch¢gierandSouthport
INVESTORS
IN PEOPLE
mDoreandsmalley.co.uk
* @Mooreandsmèlley
looTe&ndsrniwLLPbBilifflrtedliibilityp&rtnEtfhipth&ti&iw&toted￿EnglL￿￿l￿￿w1￿￿￿￿rre￿1ttr￿li￿W￿bEt(￿3iS￿9b￿frDBerÈ￿I￿lèrédDf￿l*19￿lch1T￿￿￿Be.9￿lnc￿tYS4U&r¢
ppieandgnillEyCA ￿￿￿1￿￿1$011￿Il￿¢￿￿ikn*1I*rI11*I1r*d1rtE￿p￿￿db￿dW{4￿Un￿IrEpthp*nynw￿b￿rs313I55 ￿ld￿￿1￿￿11rlpibVrihwth)￿FrA￿rt￿Chrlluntrwl1SonFQ1*￿d