Berkeley Castle Charitable Trust Trustees, report and financial statements For the year ended 31 March 2023 Berkeley Castle Charitsble Twst Contents Page Lewal and administrative information Report of the trustees Auditor's report Statement of financial activities io Balance sheet li Statement of c2shflows 12 Notes to the financial statements 13-23 Berkeley Castle Charltable Trust Legal and administrntive inforniation Charlty name: Berkeley Castle Charitsble Trust Trustees: Charles Wyld 14enry Berkeley Reginald Heyworth Patrick Downes Castle director: Michelle Boliver Auditor: Saffery LLP St Catherine's Court erkeley Place Clifton Bristol BS8 IBQ Bankers.. National Westminster Bank PO Box 1369 16 The Plain Thornbury Bristol BS35 2BF Sollcltors: Burges Salmon One Glass Wharf BrSstol BS2 OZX Investment managers: Close Private A$5et Management 8th Floor, 10 Exchange Square Primrose Street London EC2A 2BY Registration no: 1061062 Principal office: The Berkeley Castle Estste Office Berkeley Castle Berkeley Gloucestershire GL13 9BQ PagE I Berkeley Castle Charitable Trust Report ofthe trustees Fortheyearended 31 March 2023 The Trustccs present their report along with the consolidated financial statements of the charity and its 5ubsldiary for the year ended 31 March 2023. Tlie financial st1￿mentS comply with the c113rity'S trust deed, tl)e Charitie5 Act 2Qll and the Starement of Recommended Practice.. AcLoun(ing and Reporting by Cliarlties 2019 [fRS 102). History and constitutioD Thc Berkeley Castle Charitshle Trust was formally establislied by a deed dated 26 February 1997. On 25 March 1997 Mr Berkeley and his Co-Tru5tee of the Berkeley Will Trust (the owners oFihe fabric of Ihe castle) gi-ai)ted a ninety-nine year lease lo the 1'rustee5 of the Berkcley Castle Charitable Triist. On the samc datc. a gift was made to the Trustees of Lhe business of admitting Tnembers of the general public to the castle. Following the establishment Of the Berkeley Chattels Settlenient 13 july 1998, certain further chattels were tliÈ subject nf a supplemeiital licence enabllng tl)e trustees of the Berkeley Castle Charitable Trust to Use tliem. Structure, governance and management Governlng document The charity is governed by a trust deed and is an unincorporated assoclatlon. Appointment oft￿SteeS Tlie trust deed state% that the nun)ber of Trustees shall be no less dian three and no niore tlian flve. If the numbei- of Trustee8 should fall below three, the remaining Trustees may exercise their power to appointa new Trustee. The Trustees must alway5 include at least one rnale descendant of Captain Robert George Wilmot Bcrkeley. Any new Trustee is offered appropriate induction and trainin& Organisation Under the tei'ms of the trust deed the 1'rustees have wide distretinnary powers relating to the Investment and use of the trust fund. dealing with property, employment of staff and 311 other acts oFmanagement in relation to Berkeley Castle. The director of the castle, appointed by the Trllstees. has responsibility for the running of the businesses of the trust and Its subsidiary cornpanyl which is fully owned by the Trustees. Risk management A formal risk assessment in line with SORP FRS102 recommendation5 has been produced. It was adopted at a meeting ofthe Trustees on 11 March 2004 ai)d is to be kept on the agenda at future rneeting5 011 an annual basis to ensure thatthe matter Is kept under review and procedures establfished to manage those risks. Pa8e 2 Berkeley Castle Charitable Trust Report oftho trustee5 {continued} Fortheyearended 31 March 2023 Ststement of trustees. responslbllltles The Trustees are responsible for preparlng the Trustees. report and the financlal statements in accordance with applicable law and United Kingdoffl Accounting Standards tunited Kingdom Accepted Accountlng The law applicable to Charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state olaffair5 of the charity and the group and of the Incoming i'esources and application of resources of the charity and the group for that period. In preparlng these financial statements. the Trustees 3re required to.. select suitable accountlng policies and then apply thein consistently-, observe the method5 and principles in the Charities SORP (FRS102); make judgements and estlmates that are reasonable and prudent,. state whether applicable accounting standards have been followed, subjert to any material departures disclosed and explained in the financial statements,. prepare the financial statements on the golng concern basi5 unless it is inappropriate to presume that the charity will continue in busines5. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time tlie flnanclal posltlon of the charity and enable them to ensure that the finatscial Statements comply with the Charities Act 2011. applicable accounting regulations and the provistons of the trust deed. They are also responsible for safeguarding the assets of the chai-ity and the group atld hence for taking reasonable steps for the prevention and detection of fraud and other Irregularlties. Oblectlves a￿d artivities Obleetlves The Trustees stand possessed of the trust fund and related income and can apply such funds in the furtherance of the trust: they also have the power to accumulate (as permitted by law) the income of the trust fund. Subject to these powers, the Trustees sliall apply the annu31 income of the trust fund for the followlng objects: The maintenance, repair and pre5ervatron for the benefit ofthe public ofthose parts of Berkeley Castle. Berkeley, Gloucestershire, which are open to the public b) The benefit of such charity or charities or for such other charitable purpose or charitsble purposes a5 the Trustees shall from time to titne in their absolute discretion think ftL To meet the objectives of tl)e trust, new income raising activities are 50ught, particularly through Its subsidiary trading company, whSch can offer the castle as a locatlon for filming and other events. The castle invests in attracting visitors and work5 with a number of other attraction5 and local agencies to promote rhe castle. The castle also provides employment witiiin the area by creating work for local people with knowledge of the castle and its history. P3ge 3 Berkeley Castle Charitable Trust Report of the trustees (contlnued) For theyear ended 31 March 2023 Future plans Tlie aim is to continue to make the tsstle available to the public in an e￿telent manner and to raise further Eunds for its upkeep and repair. It is hoped Èo add to the visitoi- experience and, with ihe help of the Priends of Berkeley Castle, to continue with 2 programme of repaii. and restordknon of ￿rnIture, pirtures and other Publlc benefit The Charitie5 Act requires that there is an identifiable benefit or benefits arising from thc work of all charilies, and such benefit must be to the public or a section of the public. The Trustees confirm that thcy have referred to the Charity Commis55on's kjuidance on public beiiefit whei) reviewing the trust's aims and obhectives and in planning future 3ctivitie5. In pursuit of its charitable object the trust invesLS in the repair 2nd upkeep to Tnaintain and improve the environment for the contents of the castle and improve tlie experience for visitors. No Section oFthe pllblLC 15 excluded from those part5 ofthe castle th<1t are open to the pub￿lc., disabled access is available where practic￿.'1'hose working for the trust are remunerated, but there are othenvise no private benefits. It can therefore be seen from this, and from other Information in this reporL that the wcrk of the trust benefits the public. Achievements and pcrformance Number of visitors in YE23 increased by 41% to 35.167 [2022- 24,9691 due to the impaei of Covid rostrictions in the prior year. New initiatives are still being undertaken to interest gnd educate visltor5 aboui rhe cast]e and its history. They have included additional newly researched cxhibitions, informgtion about the castle from guidcs and piinted material. The Trustees would agaln like to record their apprecialion of all the support the castle receives on a voluntary ba8i5- fiY)m the Friends of Berkeley Castle and niany other indivlduals and organisation Financffial review There is a Group surplus for the year of £440.31112022.. deflclt £85,037}, which, added to the 5urplu5 bi'ought foNiard gives total Group funds 01£942,444 {2022: £502.133} carried forward. The Group tharlrable aclivitÈes income increased by £61,727, mainly due to the full reopening of the castle. The Group charitable artlvities expenditure reflect5 an increase in costs of £140.790 CDmpared to last year mainly due to the full reopening of the castle, as well a5 a substantial increase in repairs and maintenance. Results of subsidiary The subsidiaiy trading company, Berkeley Castle Enterprises Limited. made a loss of £12,43112022.. E69,698 profit). Page 4 Berkeley Cas¢le Charitable Trust Report of the trustees {contlnued) For theyear ended 31 March 2023 Investment policyand returns There are no restriction5 on the chariws power tts Invest and the Trustees have power to delegate discretionary powers of investment to an investment manager. The charity has adopted a total return policy (or its investhient incotne, and a strategy and risk profile Ss agreed annually with the investment rnanager. The investment performance is reviewed via the tnanager's quarterly reports and the Trustees. or their representstive, meet with the manager annually to discuss this performance. The Trustees intend that the real value of thelr assets be maintained and enhanced over the long term by investment in a portfollo comprised of equities, fixed income stocks and cash. The investment managers have been instructed to manage a diversified portfolio of suitsble investments on a discretlonary basss. Reseryes policy At the year end the Group held unre5trirted funds of £903,153 (2022: £450.411) and £39,291 {2022.. £51.722) in unre5tFicted funds from non-charitable trading. The Trustees have reviewed the reserves of the charity and considerthat a target level of unrestricted fund5 of £250.000 to £300,000 is suitsble to enable the Trustees to continue to fund management, administration and support costs and cover any unplanned repair5. The level of target funds has been increased to reflect the higher level of inflation and increased costs. Of the total unrestrlcted funds held of £903,153, £750,434 are considered to be reallsable at]d the balance of £152,719, which predominantly relates to fixed a55ets. are considered unrealisable at the balance sheet date. In addition, the trustees have designated £500,000 for a planned developtnent of the café and walled garden, which is expected to be completed by Chri5tma5 2023. Full details are shown in note IS of the accounts. The remainlng free reserves are £250,434, which is WlthEn the target range. Approved by the Trustees and signed on their behalf by.. Charles Wyld PagE S Berkeley Castle Charltable Trust Independent auditors, report io the trustees Fortheyearended 31 March 2023 Opinlon We have auditod the finaiiclal statements of Berkeley Castle Charitable I'rLlSt Ithe'pareiit charlty,) and its subsidiary [the'groupJ for the year ended 31 March 2023 which coinprise a 5taten)ent of financial activities, a balance sheet and a statement of cash flows and notes to the financial siatements, including significarlt aLcounting policies. The financial reporting framework that has been applied in thLir preparatiun 15 applicable law and United Kinbjdom AcLt>unl'ing Standards, including Financial Reporting Standard 102, tho Financial Reportlng Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted In our opinion the financi31 statements- give a true and fair view ofthe State olthe group and parent charity's affairs as at 31 Marcl) Z023 and of the group's and the parent Lharity's sncoining resources dnd applicaknoTr of r¢st)iirces for the year then ended.. have been properly prepared in accordance wilh Uniied Kingdom Generally Accepted Accounting Pracbce.. and have been prepared in accordance with the requirements olthe Charities Act 2011. Basis for opinion We conducted our audit in accordance with Intei'national Stsndai-ds on Auditing IUKI IISAS [UK)l and applicable law. Our respon5ibilitie% under those standards are further described in thc Auditor's responsibilities for the audit oltl)e financial statenients settion of oui- report. We are independent of the group and parent charity in accordance with the ethical requireinents that are relevant to our audst of tl)e financial ststemeiits Iti the UK, including the FIIC'S Ethical Standard, and we have Fulfilled our othei- ethical responsibilities in accordance wit.h these requirements. We belleve that the audit evldence we have obtained is suificient and appropriate to provide a basi5 lur our opinion. Conclusions relating to golng concern In auditing the financial statemenL%. we have concluded that the trusrees, use of the gofing concern basis of accounting in tlie preparatioi) of Ll)e fki)ancial statement5 is appropriate. Based the worli we have performed, we have not identified any material uncertainties relating to events or conditions that, individvally or collectively, may east Significant doubt on the group or the parent charity'5 abllity to continue a5 a going concern for a period of at least twelve months from when the financial Statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Vage 6 Berkeley Castle Charitable Trust Independent audltors, report to the trustees Fortheyear ended 31 March 2023 Other inforniation The trustees are responslble for the other information. The other informatlon comprises the information induded in the annual report, other than the financial statements and our audfitorfs report therenn. 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 contlusiorl thereon. Our responsibility is to read the other iiiformation and. in doing so. consider whether the other inforniation is materially inconsistent with the financial statements or our knowledge obtaÉned in the course of the audit or otherwise appear5 to be materially mi5Stated. If we identify such rnateri21 inconsistencies or apparent material misstatements, we are required to determine whether thi5 gives rise to a material mlsstatement the financial Statements themselves. If, based on the work we have performed, we conclude that there Is a material misstatement ofthis other inforniation.. we are required to report that fact We have nothing to reptsrt in thls regard. Matters on whlch we are required to Teport by exceptlon We have nathing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require u5 to report to you if. in our opinlon.. the inforniation given in the Trustees. Annual Report is inconsistent in any materfal respect with the the parent charity has not kept sufficient accounting records-, or the parent charity's flnancial statements are not in agreementwlth the accounting records and returns.. or we have not ￿te1Ved all the Infornlation and explanadons we require for our audiL Responsibilities of trustees As explained more fully the Tru5tees' Responsibllities Statement set out on page 3. the trustee5 are respoT]5ible 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 st2tements that are free from material mi55tatement, whether due to fraud or error. In preparing the financial statements, the trustee5 are responsible for assessing the group and the parent charity's abiliry to continue a5 a going concern, disclosing, as applicable, matters related to going concern and using the going concern basi5 of accounts'ng unless the trustees either intend to liquidate the group or the parent charity or Èo cease operations, or have no realistic alternative but to do so. Auditors, responsibilities for the audit of the flnanclal statements We have been appointed as auditors under the Charities Act 2011 and report in accordance wlth regulations made under that Act. Our objettlve5 are to obtain reasonable assurance about whetlier the group and parent financial statements as a whole are free from material misstatemen¢ whether due to fraud or error, and to issue an audltor's report that Liiclude5 our opinion. Reasonable assurance is a hlgh level Of assurance, but is not a guarantee that an 3udlt onducted in accordance with ISAS [U]q will always detect a rnaterial misstatemei)t when it exists. Misstatements can arlse from fraud or error and are considered material if, indiwdually or in the aggregate, they could reasonably be expected to influence the economic decESions of users taken on the basi5 oFthese financial Irregularitie5. including fraud, are instances of non-compliance with laws and regulation& We deslgn procedures in line with our responslblllties. outllned above, to detect material misstatement5 in respect of irregularities, including fraud. The specifIc procedures for this engagement and tlie extent Lo which these are capable of detectsng irregularities, including fraud are detalled below. Page 7 Berkeley Casue Charitable Trust Independent auditors, report to the trustees For the year ended 31 March 2023 Identifying and assessiiig risks related to irregularities.. We assessed the 5U5ceptibility of the group and parent charity's finanaal statements to material misstatement and how fraud miLTht occur, including through discu5sion5 Wlth the trustees. discussion5 Within our audit team plai)ning meeting. updatlng our record of internal controls ènsui'iiig U)e5e cotitrols operated as Intended. We evaluated possible incentlves and opportunitief for fraudulent manipulation of the financial statements. We identified laws and regulations that al'e of significance in the context of the group and parent charity by discussions wlth trustees, and updating our understanding of the sector in whsch the group and parent charity oporate. Laws aFLd regulations of direct significance in the coyktcxt of the group and parent charity include the Charities Act 2011, the Charities (Accounts and Reportsl Regulations 2008 and guidancc issued by the Charity Commission for EnEland and Wales. Audit response to risk5 identified.. We considered the extent of compliance with these laws and regulations as part of our audit procedures on the reldted financial statement irems including a review of fjnancial statement disclosures. We reviewed th¢ parcnt chai-ity's records of breaches of laws and regulations. minute5 of tneeiln¥5 and iurrespojideiice with I'elevaiit allthoritse5 to identify potential material missiatements arising. We discussed the parent charity's policies and procedures for compliance with laws and regulations with membcrs of management responsible for compliance. During the planning meeting with the aiidit team, the engagernent partner drew attention to the key areas whicli Tnighi Involve non-compliance with law5 and regulalions or fraud. We enquired of management whether tl)ey were aware of any instances of non-compliance wilh laws and regulations ur kiiowledse of any actual. Suspected or alleged fraud. We addressed the risli of fraud through management override of conu'ols by testing Ihe appropriateness of joiirnal entries and identif3n.ng atly significanr transactions that were unusual or outsidc the normal course ofbusine55. We assessed whether judgements made in making accounting estimate5 gave rise to a posslble indication of management bia& At the cvmpletion stage of ilie audit, the engagement partner's review included ensuring that the team had approached their worl( with appropriate professional scepticism and thus ihe capacity to identify non-compliance with laws and regulations and fraud. Thei'e are inherent limitations in the audit procedures described abovc and the further removed non- compliance with laws and regulations is from the events and transaetions reflected in the fin3ncial statements. tlie less likely we would become aware of it. Al%(), the risk ofnot detecting a material misstatement due to fraud s higlier thali the risk of not detecting one resultlng froin error. as fraud may involve deliberate concealment by. for example. forgery or intentional misrepresentations, or through collusion. A further descriptior] of our respnnsibilities is avallable on the Financial Reporting Council's website at- www.frc.org.uk/auditor5responsibilities. This description forms part of our auditors. reporL P48È 8 Berkeley Castle Charltable Trust Independent audltors. Yeport to the trustees Forthe yearended 31 March 2023 Use ofour report This report 15 made solely to the parent charity's trusiees, as a body, in accordance wtli Part 4 of the Charities {Accounts aiid Reports) Regulations 2008. Our audit work has been undertaken so diat we might state to the parent charity trustees those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not aceept or assutne responsibility to anyone other tlian the parent charlty and the parent cliarity's trustees as a body. foi. our audit work, for this repor¢ or for tlie oplnlons we have formed. ILQ Saffery LLP Chartered Accountants StatutoryAuditor5 David Sedgwick FCCA St Catherine's Court Berkeley Place Clifton Bristol B58 IBQ Date.. Saffery LLP Is eliglble to art as an auditor in ternis of section 1212 of the Companles Act 2006 Page 9 Berkeley Castle Charitable Trust Statement of financial actlv5ties For theyear ended 31 March 2023 Notes Group 2023 Group 2022 Charity 2023 Charity 2022 Income from Donations and legacies Charitable activities other trading activitie5 Investments Governinent grant income 540,316 320,533 r64,5 J5 12.766 32,466 258,806 420,296 8,566 15,053 730,286 377,473 32,466 300,679 11,523 8,549 11,172 Totsl 1,438.170 735,187 1,119,282 352,866 ExpenditUTe on Raising funds Charitable activities 2.108 971,615 2,280 830,825 2,108 640,296 2,280 518,202 Total 973,723 833,105 642,404 520,482 Net incoming l (outgoing) resources for the year before (1055es) / galns on investsnents 464.447 {97.918) 476,878 [167.616) [L055es) / gains on investment assets (24.136) 12,881 (24,136) 12,881 Net movetnent in funds 440,311 (85,037} 452.742 (154,735) Fund balances brought forward 502.133 587,170 450,411 605.146 Fund b418ntes carrled forward 15 942,4M 502,133 903,153 450,411 All funds were unrestrirted in the currentand prioryear. PaEe 10 Berkeley Castle Charitable Trust Balance sheet As at 31 March 2023 Notes Group 2023 Group zozz Charity 2023 Charity 2022 Flxed assets Tangible assets Equity inve5trnents in group undertakings Investments at market value io li li 122,332 130,493 46.163 20.051 351.676 38.108 20,051 377,629 351.676 377,629 474,008 508,122 417.890 435.788 Current assets Stoek Debtor5 Cash at bank and in hand 19.894 83,444 607.277 34,704 64,870 632.602 3,125 272,066 315,096 6,865 72,002 524.033 12 Creditors.. amounts falling due within one ye.. 13 {208.519) 711,070) 1105.024 588,277 Net current assets 502.096 21,106 485.263 14,623 Total assets less current liabllltles 976,104 529,228 903.153 450,411 Creditor5'. amounts falling due after more than one year Provisions for liabilities 14 122,000) {11,660) {13,750) 13.345 Net assets 15 942.444 502,133 903.153 450,411 Funds of the charity Unrestricted funds- Charity general Unrestrictcd funds- Chariry deslgnated Unrestricted funds- non-charitable trading funds 403,153 500.000 39,291 450,411 403,153 500,000 450,411 51,722 Total funds 15 942.444 502,133 903.153 4SO.411 The Trustees have prepared group financial statements in accordance with sertion 138 ofthe Charities ALt 2011. Approved by the board of Trustees and signed on their behalfon Charles Wyld Pagell Berkeley Castle Charitable Trnst Group statement ofcash flows Asai31 March 2023 Z023 2022 Cash {absorbed)/generated from operating activities Net cash provide(S by upei'ating activitie5 Corporation trax paid (22,975) 366,320 {20,809] Net cash absorbed by operatingartlvltles after taxation 122,975} 345,511 Cashflows from investingactivities Dividends, inierest and reiits from investments Purchase uf property, plant and equipment Praceeds from the sale of Investments Purchase of investments Net fdsh used in investing actlvltles 12,766 [16,933) 8.537 8.529 (4,1591 8,566 [21,19S) 20,046 14,908 [7.4911 Change In cash and cash equivalents in the reporting period 27.134 338,020 Cash and cash equivalents at the beginiilng ofthe repoi'ting period 639.326 301,306 Cash and cash equivalents at the end of the reporting period 612,192 639,326 Reconclllatlon olnet incoMe/(eXpendi￿reJ to net cash flow from operating artivities 2023 2022 Net income / (expenditure) for the reporting period (as per the statement of financial actlvities) 440.311 (85,037) Adjustments foT: Current tax charge Depreciation charges Unrealised losses / (gains) on investmei)ts Loss on disposal of fjxed