**Hestercombe Gardens Trust (A Charitable Company Limited by Guarantee)**
## **Annual Report and Financial Statements**
**For the Year Ended 31 December 2021**
**Company Number: 03287766 Charity Registered in England and Wales Number: 1060000**
**Hestercombe Gardens Trust** Contents For the Year Ended 31 December 2021
||Page|
|---|---|
|Reference and Administrative Details|1|
|Trustee Directors’ Report|2 – 8|
|Independent Auditors’ Report|9 – 12|
|Consolidated Statement of Financial Activities|13|
|Balance Sheet and Consolidated Balance Sheet|14 – 15|
|Statement of Cash Flows and Consolidated Statement||
|of Cash Flows|16|
|Notes to Financial Statements|17 – 38|
**Hestercombe Gardens Trust** Reference and Administrative Details For the Year Ended 31 December 2021
|**Trustee Directors**|Godfrey Davis, FCA|||
|---|---|---|---|
||Dr Marion Harney, FHEA|||
||Cllr Marcia Hill|||
||Jo Matthews, MSc|||
||Catherine O’Sullivan, MSc|||
||Catherine Pease, MA (Cantab), AADip,||RIBA|
||Rupert Taylor, BSc Hons, FCCA|||
||Josephine Waley-Cohen|||
|**Secretary**|Nicholas Francombe|LLB||
|**Chief Executive Officer**|Philip White MBE|||
|**Charity Number**|1060000|||
|**Company Number**|03287766|||
|**Principal Address and Registered Office**|Hestercombe Gardens|||
||Cheddon Fitzpaine|||
||Taunton|||
||Somerset|||
||TA2 8LG|||
|**Auditors**|Albert Goodman LLP|||
||Goodwood House|||
||Blackbrook Park Avenue|||
||Taunton|||
||Somerset|||
||TA1 2PX|||
|**Bankers**|Triodos Bank NV|HSBC Bank Plc|CAF Bank|
||Deanery Road|17 North Street|25 Kings Hill Avenue|
||Bristol|Taunton|Kings Hill|
||BS1 5AS|Somerset|West Malling|
|||TA1 1NA|Kent|
||||ME19 4JQ|
|**Solicitors**|Clarke Willmott LLP|||
||Blackbrook Gate|||
||Taunton|||
||Somerset|||
||TA1 2PG|||
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Page 1
**Hestercombe Gardens Trust** Trustee Directors’ Report For the Year Ended 31 December 2021
The Trustees, who are also directors for the purposes of the Companies Act, present their report and the financial statements of the charity for the year ended 31 December 2021, which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
## **References and Administrative Details**
Administrative information is given in a separate section at the front of these accounts.
## **Directors and Trustees**
The directors of the Company are the Charity’s trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees.
The Trustees serving during the year and since the year end are as follows:
David Yiend (Chairman) (Resigned 14 May 2022) Godfrey Davis, FCA Dr Marion Harney FHEA Cllr Marcia Hill Jo Matthews, MSc Catherine O’Sullivan, MSc Catherine Pease, MA (Cantab), AADip, RIBA Annie Prebensen, BSc, MBA, CFA (Resigned 12 July 2021) Anthony Sykes (Appointed 16 July 2021, Resigned 18 April 2022) Rupert Taylor, BSc Hons, FCCA Josephine Waley-Cohen
None of the Trustees have any beneficial interest in the Company. All of the Trustees are members of the Company and guarantee to contribute £10 in the event of a winding up.
## **Structure Governance and Management**
The Company is governed by its memorandum and articles of association and is limited by guarantee.
The articles of association provide that there must be between seven and ten trustees; with Taunton Deane Borough Council nominating one trustee. The appointment of replacement trustees is at the discretion of the Company in general meeting.
It is the policy of the Trust to seek to appoint as trustees leaders in their field with a keen interest in the objectives of the Trust and to obtain a balance of skills. All appointments are made in line with Charity Commission guidelines. All newly appointed trustees follow an induction process and there is a programme of ongoing trustee training.
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**Hestercombe Gardens Trust** Trustee Directors’ Report For the Year Ended 31 December 2021
## **Structure Governance and Management (cont’d)**
The Trustees have responsibility for setting the policy for achieving the objectives of the Trust; this is then carried out by the Chief Executive and the executive management team. The commercial activities, including the running of events, functions and weddings, catering and retail activities are carried out through a wholly owned subsidiary, Hestercombe Gardens Limited. The day-to-day management of trading operations is overseen by Managing Director Richard Mira who is Managing Director of Hestercombe Gardens Limited. The profits arising from these activities are returned to the Trust in furtherance of its objectives.
In May 2022 the Chairman, David Yiend, appointed December 2020, tendered his resignation and a new Chairman is currently being sought.
The Risk Register is regularly reviewed and updated by both Trustees and the executive management team in line with the strategic plans and ambitions of the Trust.
The Trustees are very conscious of their duty to promote public access to Hestercombe, to manage the heritage assets in a socially inclusive way and to continue to grow Hestercombe into a site of national and international importance and an economic and cultural driver of regional prosperity. Their policy is to remunerate all their staff fairly in accordance with good practice, observing appropriate legislation eg regarding the minimum wage, diversity etc at the same time ensuring the health, safety, and personal advancement of all staff, while operating in a financially prudent and sustainable way.
All Trustees of Hestercombe Gardens Trust serve as volunteers and are unpaid; some claim travel expenses when attending meetings. A Governance and Organisational Structure Committee, composed of at least two Trustees, meets five times a year and considers senior executive pay and reports to Trustees at each full meeting of Trustees. Remuneration for the Chief Executive is set by the Committee with advice from the Trust’s financial advisor and is benchmarked against comparable roles as far as this is possible.
On 5[th] July 2021 Warren Leavens joined the Senior Management Team as Estates Manager. Warren was previously estates manager for a multi academy trust responsible for eight schools in North Somerset. He has a NEBOSH Diploma, extensive knowledge of facilities practices and statutory compliance and we therefore are confident that Hestercombe is in safe hands.
The remuneration of the six full-time (General Manager, Finance Manager, Estates Manager, Head Gardener and Marketing & Communications Manager) and one part-time (Creative Director) senior executive staff is set by the Chief Executive in accordance with their individual contracts and reported to the Governance and Organisational Structure Committee.
## **Objectives and Activities**
The principal objects of the Trust are:
For the education and benefit of the public to:
(1) reclaim, restore, preserve, enhance and develop the landscape, gardens and buildings of heritage, horticultural or architectural interest associated with Hestercombe; and
(2) maintain develop enhance and preserve and provide public access to archives databases and collections relating to landscapes, gardens, and buildings of heritage, horticultural or architectural interest; and (3) undertake and support educational work and research and provide resources for the public relating to landscapes, gardens, and buildings of heritage, horticultural or architectural interest.
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**Hestercombe Gardens Trust** Trustee Directors’ Report For the Year Ended 31 December 2021
## **Objectives and Activities (cont’d)**
The vision of the charity is for Hestercombe to be a place where creative ideas grow and its mission is to build on our heritage of innovation, culture, creativity and green care by developing our public spaces to generate opportunities for health and happiness for everyone. We connect people to the research, study and enjoyment of arts and the natural environment that is locally rooted with international reach.
2021 was a difficult year, although, like the curate's egg, good in parts.
A new Hestercombe website was launched in early 2021 which saw an increase in page views of 75% (159K vs 91K) compared with the same period in 2019 (not counting 2020 as this was a non-standard year for website views due to the pandemic). We also delivered our first online event by zoom, the Bampfylde Lecture with Sir Andrew Burns KCMG which was attended virtually by 80 people.
There were some very significant additions to the archive and collection including a fine, signed watercolour by Bampfylde of an imaginary scene in the style of Claude; a contemporary engraving of Bampfylde Moore Carew after the portrait commissioned by Bampfylde from Richard Phelps; and two rare etchings after a drawing by Bampfylde of Sir Thomas Morgan, copied from the original at Halswell, by his contemporary Elizabeth Gulston. Lastly, a first edition of a 1755 engraving from the set of five by George Lambert and Samuel Scott of ‘A View from Mount Edgcumbe’. Drawn for the engraver by Bampfylde this completes the set of five first edition prints held by the archive.
Fiona Baker, Data Manager P&G UK joined in May 2021 and has made a significant impact on the project including recruiting volunteers to assist with inputting data.
Staffing was a considerable issue and we have struggled to staff both front and back of house in our catering teams (a national problem not unique to Hestercombe), which has taken its toll on the team. We hosted 45 weddings in total during 2021 having been very cautious in our budgeting for weddings as it was not known how COVID restrictions might impact on bookings. However, we were pleased to considerably exceed our anticipated income in this area.
We were able to reinstate the Christmas Market in November with admission by advance tickets only in order to ensure Covid safety and the event proved as popular as ever.
The light show, Illuminate, was a new event for Hestercombe and was a notable success. We completely sold out of tickets, received generally positive feedback and increased spend per head in catering and trading. There was feedback that the trail was not long enough and could have been more engaging and it is our intention to address this when we repeat the event for Christmas 2022.
The fully funded (£310,000) project to restore the water features in the Landscape garden and the C17th Water garden in the park achieved its aims by the end of 2021. The addition of a summerhouse on the island and the restoration of the boathouse are planned for 2022 with the garden opening to the public in the summer of 2022. The Water garden has added a major new component to the Hestercombe experience and confirms Hestercombe as one of the most historically important gardens in the country with four complete period gardens.
The renovation of Grade 2 listed Middle Lodge was completed during the year and the cottage is now tenanted.
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**Hestercombe Gardens Trust** Trustee Directors’ Report For the Year Ended 31 December 2021
## **Objectives and Activities (cont’d)**
We were fortunate to receive in excess of £750,000 of support from the Cultural Recovery Fund (CRF) as part of the government’s efforts to support the cultural sector through the turmoil of Covid-19. The CRF grant that was awarded as part of the second wave of funding in April was the tenth largest among nearly 500 awards – a testament to the esteem in which Hestercombe is held.
No further progress has been made with the acquisition of the land at Gotton following the imposition by the Crown Estate, at the end of 2020, of a moratorium on all agricultural land sales before December 2021. However, discussions are continuing which will hopefully enable this last piece of the Grade 1 landscape to be secured by the trust.
Lockdown, as a result of a resurgence of the Covid-19 pandemic at the beginning of the year, provided the space and opportunity to fulfil our 2021 Business Plan commitment to rethink our retail offer. Initially led by the front of house and catering teams we revised the catering offer in the Visitor Centre courtyard and completely redesigned the Stables café as a waitered restaurant. The Gift shop was removed and replaced by a coffee, cake and gelato ice cream outlet which also provided food for takeaway. This project, the first major development in the Visitor Centre for 15 years has proved remarkably successful. Capital expenditure on the project totalled just over £46k. Details of the return on investment expectation is outlined in the Trading section, below. To be finally completed in 2022 with the re-siting of the current plant sales area, this development will nearly double the number of covers in the visitor centre, thereby reducing queues and waiting time for the benefit of visitors.
The Gift shop has been moved into the House, behind the pay barrier, and transformed into a Gallery shop offering a more refined and gallery-related stock to reinforce and reflect the status of the gallery. The Gallery shop fully opened in May 2022 and initial indications are that the shop has not suffered but actually gained from being in its new position.
In order to secure Hestercombe’s financial security by reducing borrowings, discussions with Somerset County Council to relieve the charity of its long term £340,000 loan were successfully concluded. In exchange we have undertaken to provide a range of social benefits to the local community, including free school visits.
## **Public Benefit and Engagement**
Throughout 2021 we were gradually able to continue with a programme of exhibitions and events despite the pandemic, and lockdowns The first planned exhibition 'Landscape Portrait: Now and Then’ had to be rescheduled and finally opened in May 2021. which meant that the loans for the show from the Arts Council Collections and the Courtauld Institute, amongst others had to be rearranged. A new film created for the exhibition by Trish Morrissey also had to be postponed until post lockdown, when the crew were able to work together.
We successfully renegotiated our agreement with the V&A to extend the Bampfylde show in the Portman Room until later in April and the outdoor art programme ‘Open Up’, continued into October with the new addition of Mariele Neudecker’s sculpture ‘A Thousand Ghosts’ installed below the Edwardian garden in April. The work is in the form of a half-emerged ship which alludes to Britain’s naval history, as well as, for Hestercombe, C W Bampfylde’s relationship with the sea.
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**Hestercombe Gardens Trust** Trustee Directors’ Report For the Year Ended 31 December 2021
## **Public Benefit and Engagement (cont’d)**
The sculpture coincided with Neudecker’s exhibition ‘SEDIMENT’ installed in August, a large retrospective of works by the artist from the last three decades, including recent works made at CERN, shown in the UK for the first time, as well as a new work for Hestercombe relating to C.W. Bampfylde. The exhibition opening was well attended by over a hundred people. Sir Richard Long also gave a talk about his work.
The ‘Artists and the Garden’ Conference, due to take place at Hestercombe in May was delayed until September and has since had to be rescheduled again until September 2022. Kingston University has received nearly 40 papers from around the world for the conference, showing the appetite for the ‘Artists and the Garden’ theme, and Hestercombe in particular.
We created a film for schools about the Romantic Poets and their relationship to the Quantocks, as part of our work as curatorial lead with Spaeda and the Quantocks Landscape Partnership Scheme; we are also reengaging with local schools, through events such as ‘Charcoal Burning’, as well as creating a bank of engagement ideas using past artists who have worked with us.
At the beginning of October, a small exhibition of work in partnership with Mencap and Reflect was shown in the ‘Medieval Arch’ space in Hestercombe House. This was timed to coincide with performances by leading specialist theatre company Frozen Light, who make performances for those with severe disabilities, again in partnership with Reflect. Set out rather like a fairground on the marquee lawn, the event was a great success and also much admired by general visitors.
We hosted Fiona McDonald ‘Feral Practice’ on a two-week residency, and Madinah Thompson for a week. Both will make new work that will feature in future exhibitions and were supported through the Ingram Collection Residency programme with which Hestercombe is a partner.
As part of working towards becoming an ACE accredited museum we have met with experts from SW Museums, who have looked at our collections with museum curator Kate Best to help us consider our action plan, documentation and our core collections, this work is ongoing.
In November our winter show ‘Changing Atmospheres’ opened featuring new and recent works by Paul Emmanuel, Fiona Hingston, Trish Morrissey, Susie Olczak, Alexandra Searle, Lucy Soni, Peter Stiles, Madinah Farhannah Thompson and Matt Stokes. The exhibition featured painting in its many forms, sculpture, film, performance and an amazing 16 channel sound work, based on C18th fauna, using C18th instruments. Some of the newly commissioned work was initially postponed by the pandemic, all the artworks respond to our relationship with place and flora and fauna, which for many has taken on new meanings during the past 18 months. One of the galleries also features a lockdown sketchbook project, run by SPAEDA, for arts educators. We had a very successful preview with eight of the nine artists and SPAEDA artists attending.
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**Hestercombe Gardens Trust** Trustee Directors’ Report For the Year Ended 31 December 2021
## **Financial Review**
The Trust enjoyed much better financial results in 2021 than in 2020 following the easing of restrictions imposed by the Covid pandemic and the support provided by way of grants and donations.
Total income amounted to £2.988m in 2021 (2020: £1.846m). The Trust received substantial support by way of grants from National Heritage Lottery Fund, the government’s business support scheme, Job Retention Scheme, Arts Council, Countryside Stewardship and other grants and donations which altogether made up £1.116m of the total income:
National Lottery Heritage Fund £781,500 Arts Council £28,875 Countryside Stewardship £94,882 Other Grants and Donations £43,597 Job Retention Scheme Grants £93,052 Other Covid Business support Grants £37,274 Donations and Legacies £36,843
**Total £1,116,023**
Income from trading activities more than doubled in 2021 to £1.165m compared to the previous year (2020: £0.54m). Trading activities benefitted in particular from to the resumption of weddings and other events and income increased from £49k in 2020 to £377k in 2021. The improvement in the trading results has brought the trading subsidiary back into profit for the year and reduced its net liabilities.
Hestercombe’s members have been highly supportive during the pandemic and membership income grew by 18% in 2021 to £338k. Income from admissions also grew substantially following the easing of Covid restrictions and amounted to £369k (2020: £201k).
The Trust spent £1.424m on its charitable activities (2020: £1.057m) and reported a surplus before revaluations for the year of £618k (2020: £141k). The Trust balance sheet records total assets of £11.09m (2020: £10.422m).
## Reserves policy
The current reserves policy reflects the long term nature of the charity and the investment that has needed to be made to protect it. Long term aspirations and potential income generation has been put before the building up of unrestricted reserves in the short term. The result of this is that there is a deficit in freely available reserves (unrestricted reserves less fixed assets net of long term debt) of £15k (2020: £475k) at the year end.
## **Auditors**
The auditors, Albert Goodman LLP, are deemed to be re-appointed under Section 487(2) of the Companies Act 2006.
## **Small company provisions**
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
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**Hestercombe Gardens Trust** Trustee Directors’ Report For the Year Ended 31 December 2021
## **Statement of trustees’ responsibilities**
The Trustees (who are directors of the Hestercombe Gardens Trust Limited for the purposes of company law) are responsible for preparing the Trustee Directors’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Company law 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 charitable company and the group and of the incoming resources and application of resources, including the income and expenditure of the charitable group 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;
- Make judgements and accounting estimates that are reasonable and prudent;
- State whether applicable UK Accounting Standard have been followed, subject to any material departures disclosed and explained in the financial statements; and
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Statement as to disclosure to our auditors**
In so far as the Trustees are aware at the time of approving our Trustees’ annual report:
- There is no relevant information, being information needed by the auditor in connection with preparing their report of which the group’s auditor is unaware; and
- The trustees, having made enquiries of fellow directors and the group’s auditor that they ought to have individually taken, have each taken all the steps that he/she is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of the information.
By order of the Trustees.
Cllr Marcia Hill Trustee Hestercombe Gardens Trust
20[th] September 2022
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**Hestercombe Gardens Trust** Independent Auditors' Report to the Trustees and Members For the Year Ended 31 December 2021
## **Opinion**
We have audited the financial statements of Hestercombe Gardens Trust (the 'parent charitable company') and its subsidiary (the ‘group’) for the year ended 31 December 2021, which comprise the consolidated Statement of Financial Activities, the consolidated and parent charitable company Balance Sheets, the consolidated and parent charitable company Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 December 2021 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006;
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the society’s ability to continue as a going concern for a period of at least twelve months from the original financial statements were authorised for use.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of the report.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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**Hestercombe Gardens Trust** Independent Auditors' Report to the Trustees and Members For the Year Ended 31 December 2021
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinion on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ Report, which includes the Directors' Report prepared for the purposes of company law for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Directors' Report included within the Trustees’ Report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustees’ Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the Trustees’ Report and from the requirement to prepare a Strategic Report.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees Responsibilities (set out on page 8), the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group and parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the parent charitable company or to cease operations, or have no realistic alternative but to do so.
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**Hestercombe Gardens Trust** Independent Auditors' Report to the Trustees and Members For the Year Ended 31 December 2021
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
## **The extent to which the audit was considered capable of detecting irregularities including fraud**
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with trustees and other management, and from our commercial knowledge and experience of the sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006, Charites Act 2011, employment, environmental, food hygiene legislation and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.
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**Hestercombe Gardens Trust** Independent Auditors' Report to the Trustees and Members For the Year Ended 31 December 2021
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance; and
- enquiring of management as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
## **Use of our report**
This report is made solely to the group and parent charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the group and parent charitable company’s members and trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the group and parent charitable company and the group and parent charitable company’s members as a body and the parent charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Robert Oram BFP FCA (Senior Statutory Auditor) for and on behalf of Albert Goodman LLP, Statutory Auditor
Goodwood House Blackbrook Park Avenue Taunton TA1 2PX
22[nd] September 2022
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## **Hestercombe Gardens Trust**
Consolidated Statement of Financial Activities (including an Income & Expenditure account) For the Year Ended 31 December 2021
**----- Start of picture text -----**
2021 2020
Unres- Res- Total Unres- Res- Total
tricted tricted tricted tricted
Notes £ £ £ £ £ £
Income from:
Grants, donations and 2 679,661 436,362 1,116,023 341,165 477,766 818,931
legacies
Charitable activities 3 707,465 - 707,465 488,219 - 488,219
Other trading activities 4 1,164,773 - 1,164,773 539,167 - 539,167
Investments 5 - - - 2 - 2
Total income 2,551,899 436,362 2,988,261 1,368,553 477,766 1,846,319
Expenditure on:
Trading costs 6 946,550 - 946,550 648,079 - 648,079
Charitable activities 6 1,089,009 334,884 1,423,893 760,748 296,121 1,056,869
Total expenditure 2,035,559 334,884 2,370,443 1,408,827 296,121 1,704,948
Net income/(expenditure) 516,340 101,478 617,818 (40,274) 181,645 141,371
for the year
Gain on revaluation of
investment property 13 50,260 - 50,260
Transfer between funds 19 94,882 (94,882) - 162,481 (162,481) -
Net movement in
funds for the year 661,482 6,596 668,078 122,207 19,164 141,371
Reconciliation of funds
Total funds brought forward 10,400,640 21,104 10,421,744 10,278,433 1,940 10,280,373
Total funds carried forward 11,062,122 27,700 11,089,822 10,400,640 21,104 10,421,744
**----- End of picture text -----**
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
______________________________________________________________________________
Page 13
## **Hestercombe Gardens Trust – Company Registration Number: 03287766** Balance Sheet and Consolidated Balance Sheet As at 31 December 2021
|**Notes**
**Fixed assets**
Tangible fixed assets
11
Heritage assets
12
Investment property
13
Investments
14
**Current assets**|**£**
**£**
**Group**
**Charity**
414,394
414,394
10,773,426
10,773,426
1,050,000
1,050,000
-
1
12,237,820
12,237,821
**2021**|**£**
**£**
**Group**
**Charity**
414,394
414,394
10,773,426
10,773,426
1,050,000
1,050,000
-
1
12,237,820
12,237,821
**2021**|**£**
**£**
**Group**
**Charity**
342,847
609,847
10,658,523
10,658,523
965,268
698,268
-
1
11,966,638
11,966,639
**2020**|
|---|---|---|---|
|Stock
15|34,078
295,348
494,274
823,700
(810,476)
13,224
(1,161,222)
**11,089,822**
11,062,122
27,700
**11,089,822**|-|41,029
-|
|Debtors
16
Cash at bank and in hand
**Liabilities:**
Creditors: amounts falling due within
17
one year
**Net current liabilities**
Amounts falling due after more
than one year
18
**Total net assets**
**The funds of the charity:**
Unrestricted funds:
General funds
19
Restricted funds
19
**Total charity funds**||385,734
185,499
571,233
(531,896)
39,337
(1,161,222)
**11,115,936**
11,088,236
27,700
**11,115,936**|178,516
191,649
123,163
88,353
342,708
280,002
(817,254)
(690,627)
(474,546)
(410,625)
(1,070,348)
(1,070,348)
**10,421,744**
**10,485,666**
10,400,640
10,464,562
21,104
21,104
**10,421,744**
**10,485,666**|
______________________________________________________________________________
Page 14
**Hestercombe Gardens Trust – Company Registration Number: 03287766** Balance Sheet and Consolidated Balance Sheet As at 31 December 2021
The trustees have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared and delivered in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.
The notes on pages 17 – 38 form part of these accounts.
Approved by the Board on 20[th] September 2022 and signed on their behalf by:
Cllr Marcia Hill Trustee
______________________________________________________________________________
Page 15
**Hestercombe Gardens Trust** Statement of Cash Flows and Consolidated Statement of Cash Flows For the Year Ended 31 December 2021
|**Notes**
**Cash flows from operating activities**
Net income/(expenditure) for the year
Adjustments to cash flows from non-cash items:
Depreciation and amortisation
11
Finance Income
5
Finance expense
Revaluation of investment property
Working capital adjustments
Decrease/(increase) in stocks
13
(Increase)/decrease in debtors
14
Increase in creditors
15
Net cash flow from operations
**Cash flows from investing activities**
Purchase of tangible fixed assets
11
Purchase of heritage assets
12
Purchase of investment property
13
Interest received
5
**Cash flows from financing activities**
Interest paid
7
Repayment of loans and hire purchase
18
Net decrease in cash and cash equivalents
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
Cash & Cash equivalents reconciliation:
Cash at bank
Total cash & cash equivalents at the
end of the reporting period
**Analysis of cash and cash Equivalents**
Cash in hand
Overdraft facility repayable on demand
Total cash & cash equivalents at the
end of the reporting period|**£**
**£**
**Group**
**Charity**
668,078
630,270
102,462
102,462
-
-
41,507
41,507
(50,260)
(50,260)
761,787
723,979
6,951
-
(116,831)
(194,084)
349,768
197,815
1,001,675
727,710
(174,010)
(174,010)
(114,903)
(114,903)
(34,472)
(34,472)
-
-
(323,385)
(323,385)
(41,507)
(41,507)
(22,816)
(22,816)
(64,323)
(64,323)
613,967
340,002
(119,693)
(154,503)
494,274
185,499
494,274
185,499
494,274
185,499
494,274
185,499
-
-
494,274
185,499
**2021**|**£**
**£**
**Group**
**Charity**
141,371
205,293
73,893
73,893
(2)
(2)
46,379
46,379
-
-
261,641
325,563
11,376
928
(35,398)
(63,205)
25,556
11,328
263,175
274,614
(35,597)
(35,597)
(179,347)
(179,347)
(16,766)
(16,766)
2
2
(231,708)
(231,708)
(46,379)
(46,379)
(18,194)
(18,194)
(64,573)
(64,573)
(33,106)
(21,667)
(86,587)
(132,836)
(119,693)
(154,503)
(119,693)
(154,503)
(119,693)
(154,503)
123,163
88,353
(242,856)
(242,856)
(119,693)
(154,503)
**2020**|
|---|---|---|
______________________________________________________________________________
Page 16
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
## **1 Accounting Policies**
The principal accounting policies adopted in the preparation of the financial statements are as follows:
## 1.1
## **Basis of accounting**
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) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Hestercombe Gardens Trust Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s) and all amounts are presented in £ sterling.
These financial statements consolidate the results of the Charity and its wholly owned subsidiary, Hestercombe Gardens Limited, on a line by line basis. The “Group” heading within the balance sheet refers to the consolidated accounts of the Hestercombe Gardens Trust Limited and Hestercombe Gardens Limited.
In the parent company financial statements the investment in the trading subsidiary is accounted for at cost less impairment.
A separate Statement of Financial Activities or income and expenditure account, for the Charity itself has not been presented because the Charity has taken advantage of the exemptions afforded by Section 408 of the Companies Act 2006.
## **Going Concern**
As set out in the Trustees’ Report, the Trust’s operations during 2021 continued to be impacted by Covid-19. The Trust continued to make use of the government furlough scheme and benefited from a further grant from the National Lottery Heritage Fund. These measures have strengthened working capital resources to enable the Trust to continue to pursue its objectives and look to the future with confidence. On this basis the Trustees are satisfied the Trust continues to be a going concern and hence the going concern basis of accounting adopted in these accounts is appropriate.
## 1.2
## **Legal status of the Trust**
The Trust is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.
The company is incorporated in England and Wales and the company registered office is detailed on page 1, reference and administration details.
______________________________________________________________________________
Page 17
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
## 1.3 **Income**
Income from grants and donations is recognised in the year in which they are receivable when there is evidence of entitlement, receipt is probable and the amount can be reliably measured. Where income has not been received for gift aid claims relating to donations received in the year, income is accrued.
Income from grants and government grants, where ‘capital’ or ‘revenue’, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Where no conditions are attached to grant income they are recognised within grants, donations and legacies and where conditions relating to performance of services are attached, grant income is recognised income from charitable activities within the Statement of Financial Activities.
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.
Income from charitable activities includes membership and admissions income. Membership income is accounted for in full in the year that the membership commences. Admission income is recognised on a cash basis, in the year the income is physically received.
Income from other trading activities is included in the period in which the group is entitled to receipt, it is probable that economic benefits will flow to the entity and the amount can be reliably measured.
## 1.4 **Investment income**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
## 1.5
## **Expenditure**
Resources expended are recognised on the accruals basis to match the period in which the expenditure was incurred.
Raising funds is expenditure incurred in generating the trading subsidiary funds and from trading activities carried out by the trust relating to Hestercombe House activities.
Charitable activity expenditure comprises costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and costs of an indirect nature necessary to support them. Support costs include finance, administration, governance and CEO costs and are allocated to the trust charitable services equally.
## 1.6 **Operating leases**
The Trust classifies the lease of property as operating leases as title remains with the lessor. Rental charges are charged on a straight line basis over the term of the lease.
______________________________________________________________________________
Page 18
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
## 1.7 **Fund accounting**
Unrestricted funds are available to spend on activities that further any of the purposes of the Trust.
Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Trust’s work or for specific artistic projects being undertaken by the Trust.
## 1.8 **Tangible fixed assets and depreciation**
Tangible fixed assets are stated at cost less depreciation. Tangible fixed assets are normally capitalised where the value of an asset or group of related assets exceeds £500. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life as follows:
Plant and equipment 3, 5, 10, 20 or 25 years straight line
## 1.9 **Heritage assets**
Heritage assets are held in pursuit of overall objectives in relation to the enjoyment and preservation of heritage. Land, buildings and artwork are recognised at cost or, where donated, at the prevailing current market value at the time of donation. In the opinion of the Trustees the heritage assets have a residual value in excess of cost and therefore no depreciation is charged in the accounts, however they are reviewed annually for impairment with any such impairment passing through the SOFA. Expenditure that is required to preserve or prevent further deterioration of heritage assets is recognised in the SOFA as it is incurred.
## 1.10 **Investment properties**
Investment properties are initially measured at cost and subsequently at fair value at the reporting date, with all gains and losses passing through the SOFA.
## 1.11 **Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## 1.12 **Stock**
Stock consists of shop stock for resale, ingredients for the tea room and publication stocks. Stock is valued at the lower of cost and net realisable value, after making allowances for obsolete and slow moving stock.
## 1.13 **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.
## 1.14 **Creditors**
Creditors 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 are normally recognised at their settlement amount after allowing for any trade discounts due.
______________________________________________________________________________
Page 19
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
## 1.15 **Defined contribution pension**
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as staff pension expense through the profit and loss when they are due.
## 1.16 **Taxation**
As a registered charity, the company is not liable to corporation tax or capital gains tax to the extent that its income and gains are applicable to charitable purposes only. Value Added Tax is recoverable by the company, and is therefore excluded within the relevant costs in the Statement of Financial Activities. The charity subsidiary is also able to recover Value Added Tax and is therefore excluded within the relevant costs in the Statement of Financial Activities
## 1.17 **Financial instruments**
The charity only holds basic financial instruments as defined by FRS 102. The financial assets and financial liabilities of the charitable company are as follows;
Financial assets – trade and other debtors, accrued income, amounts owed by group undertakings and other debtors are basic financial instruments, and are debt instruments measured at amortised cost. Prepayments are not financial instruments.
Cash at bank – classified as a basic financial instrument and is measured at face value.
Financial liabilities – trade creditors, amounts owed to group undertakings, bank loans, accrued expenses and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.
## 1.18 **Concessionary loan**
The Trust obtained a concessionary loan in a previous year to further its charitable aims free of interest. The loan is initially recognised at transactions value and subsequently measured to reflect the repayments and if necessary any impairments. The loan is recognised in the balance sheet within creditors less than one year and creditors more than one year as ‘other loans’ in line with the repayment term of the loan.
## 1.19 **Finance lease**
The Trust classifies the lease of equipment as a finance lease as substantially all the risks and rewards are retained by the Trust. The equipment is recognised as an asset and the finance loan recognised as a liability in the balance sheet. Payments made under finance leases are charged to the liability in the balance sheet.
______________________________________________________________________________
Page 20
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
## **2 Grants, donations and legacies**
**----- Start of picture text -----**
Unres- Res- Unres- Res-
tricted tricted 2021 tricted tricted 2020
funds funds Total funds funds Total
£ £ £ £ £ £
Grants
-
National Lottery 520,300 261,200 781,500 248,200 248,200
Heritage Fund
Arts Council - 28,875 28,875 - 28,875 28,875
- -
Countryside Stewardship 94,882 94,882 158,981 158,981
Other grants 5,872 37,725 43,597 7,313 36,675 43,988
Exceptional government funding
- -
Coronavirus JRS grant 93,052 93,052 251,987 251,987
- -
Other Covid grants 37,274 37,274 64,275 64,275
656,498 422,682 1,079,180 323,575 472,731 796,306
Donations and legacies 23,163 13,680 36,843 17,590 5,035 22,625
679,661 436,362 1,116,023 341,165 477,766 818,931
**----- End of picture text -----**
The group has been eligible to claim additional funding in year from government support schemes in response to the coronavirus outbreak. The funding received is shown above under “exceptional government funding”.
The group furloughed some of its staff under the governments CJRS. The funding received of £93,052 relates to staff costs which are included within note 9 as appropriate.
______________________________________________________________________________
Page 21
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
**----- Start of picture text -----**
3 Charitable activities
Unres- Res- Unres- Res-
2021 2020
tricted tricted tricted tricted
funds funds Total funds funds Total
£ £ £ £ £ £
Members of Hestercombe
- -
subscriptions 338,112 338,112 286,570 286,570
Admissions 369,353 - 369,353 201,649 - 201,649
- -
707,465 707,465 488,219 488,219
**----- End of picture text -----**
**4 Other trading activities**
|Shop sales
Café sales
Column room sales
Function and events
income
Property income
Education income
Other income
Rental income
Hestercombe House
income|**Unres-**
**tricted**
**funds**
**£**
97,482
514,756
-
376,985
5,411
34,125
38,080
11,000
86,934|**Res-**
**tricted**
**funds**
**£**
-
-
-
-
-
-
-
-
-|**2021**
**Total**
**£**
97,482
514,756
-
376,985
5,411
34,125
38,080
11,000
86,934
1,164,773|**Unres-**
**tricted**
**funds**
**£**
59,367
246,429
12,689
48,817
13,960
23,764
34,422
8,167
91,552|**Res-**
**tricted**
**funds**
**£**
-
-
-
-
-
-
-
-
-|**2020**
**Total**
**£**
59,367
246,429
12,689
48,817
13,960
23,764
34,422
8,167
91,552|
|---|---|---|---|---|---|---|
||1,164,773|-||539,167|-|539,167|
||||||||
______________________________________________________________________________
Page 22
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
|**5**
**Investment income**||||||
|---|---|---|---|---|---|
|Bank interest|**Unres-**
**tricted**
**funds**
**£**
-|**Res-**
**tricted**
**funds**
**£**
-|**2021**
**Total**
**£**
-|**Unres-**
**tricted**
**funds**
**£**
2|**Res-**
**tricted**
**2020**
**funds**
**Total**
**£**
**£**
-
2|
|||||||
**6 Expenditure**
|**Expenditure on raising funds**
**Staff**
**costs**
**£**
Trading costs
559,301
559,301|**Expenditure on raising funds**
**Staff**
**costs**
**£**
Trading costs
559,301
559,301|**Other**
**direct**
**2021**
**costs**
**Total**
**£**
**£**
387,249
946,550|**Staff**
**Other**
**direct**
**2020**
**costs**
**costs**
**Total**
**£**
**£**
**£**
485,284
162,795
648,079|
|---|---|---|---|
||559,301|387,249
946,550|485,284
162,795
648,079|
## **Charitable activities**
|**Staff**
**costs**
**£**
Visitor centre management
& marketing
122,573
Restoration / maintenance
of Gardens
207,444
Support costs
200,449
Hestercombe House
expenses
31,590
562,056|**Staff**
**costs**
**£**
Visitor centre management
& marketing
122,573
Restoration / maintenance
of Gardens
207,444
Support costs
200,449
Hestercombe House
expenses
31,590
562,056|**Other**
**direct**
**2021**
**costs**
**Total**
**£**
**£**
258,378
380,951
176,356
383,800
315,193
515,642
111,910
143,500|**Staff**
**Other**
**direct**
**2020**
**costs**
**costs**
**Total**
**£**
**£**
**£**
112,226
148,817
261,043
218,183
126,391
344,574
185,194
176,632
361,826
27,223
62,203
89,426|
|---|---|---|---|
||562,056|861,837 1,423,893|542,826
514,043 1,056,869|
______________________________________________________________________________
Page 23
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
## **7 Net income/(expenditure) for the year**
This is stated after charging:
**----- Start of picture text -----**
Charity Subsidiary Total
2021 2020 2021 2020 2021 2020
£ £ £ £ £ £
Depreciation of
owned assets
- -
- Plant and equipment 102,461 73,893 102,461 73,893
- -
Interest payable 41,507 46,379 41,507 46,379
Auditors’ remuneration for: -
Audit services 5,500 4,500 1,750 1,500 7,250 6,000
Accounting services 7,588 4,563 1,224 1,013 8,812 5,576
**----- End of picture text -----**
## **8 Trustee directors**
The charity trustees were not paid or received any other benefits from employment with the Trust or its subsidiary in the year (2020: £nil). There were no reimbursed expenses paid (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).
## **9 Employees**
## **Number of employees**
The average monthly number of employees during the year was:
|Management
Finance and admin
Gardens
Shop and ticket office
Catering|**2021**
**2020**
2
2
11
12
8
9
11
12
28
21
60
56|
|---|---|
______________________________________________________________________________
Page 24
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
**----- Start of picture text -----**
Employment costs 2021 2020
£ £
Wages and salaries 1,021,043 936,346
Social security costs 73,040 56,274
Other pension costs 27,274 25,257
1,121,357 1,017,877
**----- End of picture text -----**
During the year, there were no costs paid in respect of employee redundancies (2020: £14,980). The amounts were full and final with no outstanding amounts due at the balance sheet date.
The number of employees whose annual emoluments were £60,000 or more were:
**----- Start of picture text -----**
2021 2020
number number
£90,000 - £100,000 1 1
**----- End of picture text -----**
The key management personnel of the group comprise those of the Trust and the key management personnel of its wholly owned subsidiary Hestercombe Gardens Limited. The key management personnel of the group comprise the directors and the Chief Executive Officer. The total employee benefits, including employer NI and employer pension contribution, of the key management personnel of the Trust were £182,901 (2020: £164,055).
## **10 Defined contribution pension scheme**
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £15,251 (2020 - £25,257).
Contributions totalling £1,773 (2020 - £2,650) were payable to the scheme at the end of the year and are included in other creditors.
______________________________________________________________________________
Page 25
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
## **11 Tangible fixed assets**
**----- Start of picture text -----**
Group
Plant & Total
Equipment
£ £
Cost
At 1 January 2021 895,109 895,109
Additions 174,010 174,010
Disposals (16,932) (16,932)
Transfers -
At 31 December 2021 1,052,187 1,052,187
Depreciation
At 1 January 2021 552,263 552,263
Charge for the year 102,462 102,462
Disposals (16,932) (16,932)
Transfer - -
At 31 December 2021 637,793 637,793
Net book value
At 31 December 2021 414,394 414,394
At 1 January 2021 342,846 342,846
**----- End of picture text -----**
The above assets are all held by the charity.
______________________________________________________________________________
Page 26
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
## **12 Heritage assets**
**----- Start of picture text -----**
Freehold
Artwork Land and Total
Buildings
£ £ £
Cost
At 1 January 2021 66,543 10,591,980 10,658,523
Additions 9,387 105,516 114,903
At 31 December 2021 75,930 10,697,496 10,773,426
Summary of heritage asset transactions 2021 2020 2019
Purchases and transfers
Artwork 9,387 12,495 7,748
Freehold land and buildings 105,516 166,852 41,075
Total additions 114,903 179,347 48,823
Tranfers out
Artwork - - -
- -
Freehold land and buildings 250,234
**----- End of picture text -----**
Land and buildings relate to the Hestercombe estate which consists of the formal gardens and properties as well as a farm. The properties and gardens are managed and maintained by the estate manager with a team of gardeners and maintenance staff and volunteers. Under the guidance of the management team they perform work that ensures the gardens are true to the original vision.
Artwork consists of paintings that are linked to the estate and are held for public display. The paintings are assessed when purchased and any required restoration work performed at that time.
______________________________________________________________________________
Page 27
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
## **13 Investment property**
**----- Start of picture text -----**
Investment
property
As at 1 January 2021 965,268
Additions 34,472
Revaluation 50,260
At 31 December 2021 1,050,000
**----- End of picture text -----**
The Trustees consider the value in the accounts represents the open market value of the properties at the year end. The investment properties were purchased and are held for their historical importance as they are considered an integral part of the estate.
## **14 Investments**
**----- Start of picture text -----**
Charity
Total Total
2021 2020
£ £
Hestercombe Gardens Limited
Ordinary shares of £1 each 1 1
**----- End of picture text -----**
Hestercombe Gardens Limited (company no 04732755) was incorporated on 13 April 2003 as a wholly owned trading subsidiary of Hestercombe Gardens Trust. The parent charity holds 100% of the issued share capital and 100% of the voting rights of the subsidiary trading company.
The principal activities of the company are the operation of a retail outlet and a café at Hestercombe Gardens and the hosting of events, private functions and conferences.
The registered office is the same as that of the Trust, detailed on page 1.
The subsidiary donates any taxable profits to Hestercombe Gardens Trust, and files audited accounts with the Registrar of Companies.
______________________________________________________________________________
Page 28
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
A summary of the trading results is shown below:
|Turnover
Cost of sales
Gross profit
Administrative expenses
Other operating income
Operating profit and profit before tax
Gift aid to Hestercombe Gardens Trust
Retained in subsidiary
The assets and liabilities were:
Current assets
Current liabilities
Total net assets
Called up share capital
**15**
**Stocks**
Goods for resale
**16**
**Debtors**
Trade debtors
Amounts owed from group undertakings
Prepayments and accrued income
VAT|**Group**
**£**
34,078|**2021**
**£**
1,000,223
(861,128)
139,095
(216,176)
114,889
37,808
-
37,808
381,342
(407,455)
(26,113)
1
1
**2021**
**Charity**
**Group**
**£**
**£**
-
41,029|**2021**
**£**
1,000,223
(861,128)
139,095
(216,176)
114,889
37,808
-
37,808
381,342
(407,455)
(26,113)
1
1
**2021**
**Charity**
**Group**
**£**
**£**
-
41,029||**2020**
**£**
375,469
(605,979)
(230,510)
(88,277)
254,865
(63,922)
-
-
182,244
(246,165)
(63,921)
1
1
**2020**
**Charity**
**£**
-|
|---|---|---|---|---|---|
|||||||
|||||||
|||||||
|||||||
|||||||
|||||||
|||||||
|||||||
||**Group**
**£**
41,062
-
254,286
-
295,348|**2021**
**Charity**
**£**
7,427
98,948
249,432
29,927
385,734|**Group**
**£**
25,057
-
153,459
-
178,516||**2020**
**Charity**
**£**
18,408
-
148,457
24,784|
||||||191,649|
|||||||
______________________________________________________________________________
Page 29
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
## **17 Creditors: Amounts falling due within one year**
|Trade creditors
Other creditors and deferred income
Accruals
Bank loans
Bank overdrafts
Taxation and social security
Amounts owed to group undertakings
Other loans
Hire Purchase
**Deferred Income**
Deferred income at 1 January 2021
Released from previous years
Resources deferred in the year
Deferred Income at 31 December 2021|**Group**
**£**
226,231
204,390
285,296
27,338
-
49,046
-
12,000
6,175
810,476
**Group**
**£**
204,631
(137,067)
131,581
199,145|**2021**
**Charity**
**£**
179,098
48,744
247,332
27,338
-
11,209
-
12,000
6,175
531,896
**2021**
**Charity**
**£**
47,768
(32,622)
30,756
45,902|**2020**
**Group**
**Charity**
**£**
**£**
99,767
89,303
208,851
50,311
66,002
44,999
18,965
18,965
242,856
242,856
40,575
9,201
-
94,754
134,410
134,410
5,828
5,828
817,254
690,627
**2020**
**Group**
**Charity**
**£**
**£**
125,718
46,289
(115,298)
(35,869)
194,211
37,348
204,631
47,768|
|---|---|---|---|
At the balance sheet date the trust was holding funds received in advance from venue hire and rental and memberships received in advance.
______________________________________________________________________________
Page 30
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
## **18 Creditors: Amounts falling due in more than one year**
**----- Start of picture text -----**
2021 2020
Group Charity Group Charity
£ £ £ £
Bank loans 119,427 119,427 115,325 115,325
Other loans 376,469 376,469 250,508 250,508
Hire purchase 1,601 1,601 7,777 7,777
Bank loans > 5 years 632,472 632,472 663,912 663,912
Other loans > 5 years 31,253 31,253 32,826 32,826
1,161,222 1,161,222 1,070,348 1,070,348
**----- End of picture text -----**
There are two bank loans due in more than 5 years which are repayable over a 25 year term, ending in July 2043 and over a 20 year term ending in September 2039. Interest on these loans are variable at the Royal Bank of Scotland plc base rate + 3.0%. The 20 year term bank loan was received during 2018 to fund the purchase of an investment property and is secured over the investment property.
The Trust has created a fixed legal charge over the freehold properties of Hestercombe Gardens Trust and a debenture has been created in favour of the bank to secure bank borrowings of £500,769 at the year end (2020 - £512,273).
The other loan due in more than 5 years is a loan, taken out in 2018, to repaid over 10 years with a fixed rate of interest of 2.75%.
The hire purchase liability is secured over the asset to which it relates.
______________________________________________________________________________
Page 31
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
## **19 Summary of movement in funds**
**2021**
||**Opening**|**Incoming**|**Resources**|**Transfers &**
**Closing**|
|---|---|---|---|---|
|**Unrestricted funds - Group**
General
**Restricted funds - Group**
Gallery
Bird Box
Buy a Brick
National Lottery
Heritage Fund
-Culture Recovery
-Round 1
-Round 2
Countryside
Stewardship
Fundraising Strategy
Michael Farrington
propogating house
Historic England
The Medlock Charitable Trust
John Townson|**balance**
**£**
10,400,640|**resources**
**£**
2,551,899|**expended**
**£**
(2,035,559)|**revaluations**
**balance**
**£**
**£**
145,142
11,062,122
145,142
11,062,122
**Closing**
**Transfers**
**balance**
**£**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
(94,882)
-
5,275
-
2,425
-
-
-
20,000
-
-
(94,882)
27,700|
||10,400,640|2,551,899|(2,035,559)||
||**Opening**
**balance**
**£**
5,682
-
-
-
6,247
-
-
-
2,425
6,750
-
-|**Incoming**
**resources**
**£**
44,350
2,000
680
132,200
129,000
94,882
10,000
-
2,250
20,000
1,000|**Resources**
**expended**
**£**
(50,032)
(2,000)
(680)
(138,447)
(129,000)
-
(4,725)
-
(9,000)
-
(1,000)||
||21,104|436,362|(334,884)||
||||||
______________________________________________________________________________
Page 32
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
## **19 Summary of movement in funds (cont’d)**
|**Opening**|**Opening**|**Incoming**|**Resources**|**Transfers &**
**Closing**|
|---|---|---|---|---|
|**balance**
**£**
**Unrestricted funds - Charity**
General
10,464,562
10,464,562
**Opening**
**balance**
**£**
**Restricted funds - Charity**
Gallery
5,682
Bird Box
-
Buy a Brick
-
National Lottery
Heritage Fund
-Culture Recovery
-
-Round 1
6,247
-Round 2
-
Stewardship
-
Fundraising Strategy
-
Michael Farrington
propogating house
2,425
Historic England
6,750
The Medlock Charitable Trust
-
John Townson
-
21,104||**resources**
**£**
1,507,503|**expended**
**£**
(1,028,971)|**revaluations**
**balance**
**£**
**£**
145,142
11,088,236
145,142
11,088,236
**Closing**
**Transfers**
**balance**
**£**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
(94,882)
-
5,275
-
2,425
-
-
-
20,000
-
-
(94,882)
27,700|
||10,464,562|1,507,503|(1,028,971)||
||**Opening**
**balance**
**£**
5,682
-
-
-
6,247
-
-
-
2,425
6,750
-
-|**Incoming**
**resources**
**£**
44,350
2,000
680
132,200
129,000
94,882
10,000
-
2,250
20,000
1,000|**Resources**
**expended**
**£**
(50,032)
(2,000)
(680)
(138,447)
(129,000)
-
(4,725)
-
(9,000)
-
(1,000)||
||21,104|436,362|(334,884)||
||||||
______________________________________________________________________________
Page 33
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
## **19 Summary of movement in funds (cont’d)**
|**Prior year - 2020**|||||
|---|---|---|---|---|
|**Unrestricted funds - Group**
General
**Restricted funds - Group**
Gallery
Buy a Brick
National Lottery
Heritage Fund
-Heritage Emergency
-Culture Recovery
Countryside
Stewardship
Appeal - Rook Wood
Michael Farrington
propogating house
Historic England
The Clark Foundation
Richard Broyd Trust|**Opening**
**balance**
**£**
10,278,433|**Incoming**
**resources**
**£**
1,368,553|**Resources**
**expended**
**£**
(1,408,827)|**Closing**
**Transfers**
**balance**
**£**
**£**
162,481
10,400,640
162,481
10,400,640
**Closing**
**Transfers**
**balance**
**£**
**£**
-
5,682
-
-
-
-
-
6,247
(158,981)
-
-
-
-
2,425
-
6,750
(500)
-
(3,000)
-
(162,481)
21,104|
||10,278,433|1,368,553|(1,408,827)||
||**Opening**
**balance**
**£**
-
-
-
-
-
-
1,940
-
-
-|**Incoming**
**resources**
**£**
58,800
500
122,000
126,200
158,981
550
485
6,750
500
3,000|**Resources**
**expended**
**£**
(53,118)
(500)
(122,000)
(119,953)
-
(550)
-
-
-
-||
||1,940|477,766|(296,121)||
||||||
______________________________________________________________________________
Page 34
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
## **19 Summary of movement in funds (cont’d)**
**Prior year – 2020**
|**Opening**
**balance**
**£**
**Unrestricted funds - Charity**
General
10,278,433
10,278,433
**Opening**
**balance**
**£**
**Restricted funds - Charity**
Gallery
-
Buy a Brick
-
National Lottery
Heritage Fund
-Heritage Emergency
-
-Culture Recovery
-
Countryside
Stewardship
-
Appeal - Rook Wood
-
Michael Farrington
propogating house
1,940
Historic England
-
The Clark Foundation
-
Richard Broyd Trust
-|**Opening**
**balance**
**£**
**Unrestricted funds - Charity**
General
10,278,433
10,278,433
**Opening**
**balance**
**£**
**Restricted funds - Charity**
Gallery
-
Buy a Brick
-
National Lottery
Heritage Fund
-Heritage Emergency
-
-Culture Recovery
-
Countryside
Stewardship
-
Appeal - Rook Wood
-
Michael Farrington
propogating house
1,940
Historic England
-
The Clark Foundation
-
Richard Broyd Trust
-|**Incoming**
**resources**
**£**
811,478|**Resources**
**expended**
**£**
(787,830)|**Closing**
**Transfers**
**balance**
**£**
**£**
162,481
10,464,562
162,481
10,464,562
**Closing**
**Transfers**
**balance**
**£**
**£**
-
5,682
-
-
-
-
-
6,247
(158,981)
-
-
-
-
2,425
-
6,750
(500)
-
(3,000)
-|
|---|---|---|---|---|
||10,278,433|811,478|(787,830)||
||**Opening**
**balance**
**£**
-
-
-
-
-
-
1,940
-
-
-|**Incoming**
**resources**
**£**
58,800
500
122,000
126,200
158,981
550
485
6,750
500
3,000|**Resources**
**expended**
**£**
(53,118)
(500)
(122,000)
(119,953)
-
(550)
-
-
-
-||
||||||
||1,940|477,766|(296,121)|(162,481)
21,104|
||||||
General unrestricted funds are available to spend on activities that further the purposes of the charity.
The gallery funding was provided by the Arts Council and Taunton Deane Borough Council to develop the Gallery within Hestercombe House.
The Buy a Brick and Commemorative Trees funds are remembrance funds that were fully spent in the year.
The Culture Recovery Funds are grants from the National Lottery Heritage Fund that are to fund fixed costs to support the charity through the Covid-19 pandemic.
______________________________________________________________________________
Page 35
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
## **19 Summary of movement in funds (cont’d)**
Countryside Stewardship grant was received for the restoration of the water gardens. The project is ongoing at the year end and is capital in nature. The capital costs incurred have therefore been transferred to unrestricted reserves.
The Michael and Madeleine Farrington donations are towards the propagating house project which did not commence before the year end.
The Historic England grant is for the repair of the closet tower roof. This work had not been undertaken during the year so the funds have been carried forward.
The Clark Foundation and Richard Broyd Trust donations were all towards the purchase of some artwork. As the artwork has been purchased and there are no restrictions being placed on the use of the artwork the funds have been transferred to unrestricted funds.
## **20 Analysis of assets between funds – Group**
|**20**
**Analysis of assets between funds – Group**|**n funds – Group**|**n funds – Group**|||
|---|---|---|---|---|
|**Cash at bank**
**Fixed assets and in hand**
**£**
**£**
Unrestricted funds
12,237,820
466,574
Restricted funds
-
27,700
**As At**
**31 December 2021**
12,237,820
494,274
**Analysis of assets between funds – Charity**|**Cash at bank**
**Fixed assets and in hand**
**£**
**£**
12,237,820
466,574
-
27,700||**Other**
**net current**
**liabilities**
**£**
(481,050)
-
(481,050)|**Creditors**
**more than**
**one year**
**Total**
**£**
**£**
(1,161,222)
11,062,122
-
27,700
(1,161,222)
11,089,822|
||12,237,820|494,274|||
|
Unrestricted funds
Restricted funds
**As At**
**31 December 2021**|
**Cash at bank**
**Fixed assets and in hand**
**£**
**£**
12,237,821
157,799
-
27,700||**Other**
**net current**
**liabilities**
**£**
(146,162)
-|**Creditors**
**more than**
**one year**
**Total**
**£**
**£**
(1,161,222)
11,088,236
-
27,700
(1,161,222)
11,115,936|
||12,237,821|185,499|(146,162)||
||||||
______________________________________________________________________________
Page 36
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
## **Prior year – 2020 – Group and Charity**
**----- Start of picture text -----**
Other Creditors
Cash at bank net current more than
Fixed assets and in hand liabilities one year Total
£ £ £ £ £
Unrestricted funds 11,966,639 102,059 (597,709) (1,070,348) 10,400,640
Restricted funds - 21,104 - - 21,104
As At
31 December 2020 11,966,639 123,163 (597,709) (1,070,348) 10,421,744
**----- End of picture text -----**
The analysis for the Trust is identical to the Group in 2020 with the exception of the unrestricted funds, where investments represent £1, cash at bank £67,249 and other net current liabilities £498,978.
## **21 Income and expenditure account of the Trust**
The company has taken advantage of Section 408 of the Companies Act and has not included its own Income and Expenditure Account or separate Statement of Financial Activities.
Prior to gift aid amounts received from the subsidiary, Hestercombe Gardens Trust has net ingoing resources for the year of £630,270 (2020: £205,293) based on income of £1,943,865 (2020: £1,289,244).
## **22 Related party transactions**
The charity has taken advantage of the exemption in FRS 102 “Related Party Disclosures” from disclosing transactions with other members of the group.
There were no other related party transactions other than with members of the group (2020: none).
## **23 Contingent liabilities**
The charity is involved in negotiations in respect of a tenanted part of the Trust’s holding in relation to notices and counter notices in place for parcels of land and an ongoing dispute regarding the supply of water. Whilst the trustees would hope to conclude such matters through negotiation it may be that ultimately resolution is only possible through arbitration or the courts. The ultimate outcome will determine the parties’ responsibilities for both their own and the other party’s costs. The trustees have taken legal advice and believe that the charity has a strong case in respect of all the matters and has the prospect of recovering costs already incurred. Given the nature of the matters involved and the range of possible outcomes it is not possible to reliably quantify the likely outcome in terms of timing or of the financial implications.
______________________________________________________________________________
Page 37
**Hestercombe Gardens Trust** Notes to the Financial Statements For the Year Ended 31 December 2021
## **23 Contingent liabilities (cont’d)**
In the event that Hestercombe House is sold prior to November 2023, further charges may be payable, the value of which depends upon the length of time that the asset has been held and expenditure on the asset since completion of the sale, decreasing from £500,000 to £50,000.
The amounts potentially repayable are secured by a legal charge in favour of Somerset County Council.
Grants received from the National Heritage Memorial Fund amounting to £5,931,000 as at 31 December 2018 may become subject to partial repayment in the event grant aided assets are sold. The amounts potentially repayable are secured by a legal charge in favour of the National Heritage Memorial Fund.
______________________________________________________________________________
Page 38