The Brewery Arts Centre Endowment Trust Registration number: 1065424 Annual Report and Financial Statements 31 March 2025 d@ddaco
The Brewery Arts Centre Endowment Trust Contents Reference and Administrative Details Trustees' report Trustees' responsibilities Independent examiner's report Statement of financial activities Balance sheet Notes to the financial statements 1 2 5 7 8 9
The Brewery Arts Centre Endowment Trust Reference and Administrative Details Charity name Charity registration number Principal office Registered office Trustees Secretary Bankers Accountant Investment Advisor The Brewery Arts Centre Endowment Trust 1065424 c/o Madeleine Scott Low House Business Centre WINDERMERE LA23 3NA c/o Madeleine Scott Low House Business Centre WINDERMERE LA23 3NA PRW Hensman C S Fairclough JM Plumptre H Pring MM Scott SJV Osmond (Resigned 23 July 2024) (Appointed 23 July 2024) S Wiggins Barclays Bank plc 9 Highgate KENDAL LA9 4DF Jodd & Co Limitec FIFTEEN Rosehi Montgomery Way Rosehill Estate CARLISLE CA1 2RW Cazenove Capital Management Limited 12 Moorgate LONDON EC2R 6DA Page 1
The Brewery Arts Centre Endowment Trust Trustees' Report for the Year Ended 31 March 2025 Structure, governance and management The Brewery Arts Centre Endowment Trust (BACET) was established by Deed of Trust dated 20 November 1997 which was amended by a Deed of Amendment of Declaration of Trust dated 25 February 2002. (KBACT). The original donation should ideally be maintained and is only available for distribution in exceptional circumstances. Recruitment and appointment of new trustees der the terms of the Deed of Amendment of Declaration of Trust dated 25 February 2002 the trustees of t ancis C. Scott Charitable Trust are entitled to nominate three trustees and the trustees of the Frieda Sc Charitable Trust are entitled to nominate two trustees. Trustees shall hold office for a term of five years from the Organisational structure The charity does not employ any staff directly; it uses the services of RJBM Limited to provide secretarial services. Details of the trustees who served during the year are set out on page 1. I trustees give of their time freely and no trustee remuneration or expenses were paid in the year. Trustees a quired to disclose all relevant interests to the other trustees and in accordance with the charity's policy withdr from decisions where a conflict of interest arises. The trustees meet regularly in order, inter alia, to monitor the performance of the investment portfolio and to determine the level of maintenance funding to KBACT. There are no sub committees Induction and training of new trustees An induction pack is available to any new trustee which includes a copy of the trust deed, a summary of the trust's objectives, a copy of the Charity Commission's guide on the duties of a trustee, details of the investment portfolio and the most recent financial statements. Objectives and aims BACET exists to provide financial assistance to the Kendal Brewery Arts Centre Trust Limited (KBACT). Public benefit The trustees confirm that that they have referred to the guidance contained in the Charity Commission's general guidan the graubma be prity for the yeing the charitys aims and objectives, in planning future activities and The public benefit is the financial assistance provided to KBACT, itself a registered charity, in order to help it tr continue to deliver its public benefi Grant-making policy Grants are only made to KBACT in accordance with the objectives stated above. The trustees consider that no detriment or harm arises from the grants made. Page 2
The Brewery Arts Centre Endowment Trust Trustees' Report for the Year Ended 31 March 2025 Achievements and performance The trust's sole beneficiary, KBACT, continued to require substantial support during the year. Notwithstanding the additional £100,000 paid to KBACT over the previous two financial years, KBACT requested additional funding this year. KBACT trustees requested that BACET's regular support could be increased to £100,000 pa (from Financial review The trust's support for its beneficiary is reliant on the income from its investments which was £50,070 (2024 - £50,393) and the gains on investments. The net gain on investment assets was £7,905 (2024 - £122,583) and was made up of a gain of £10,100 (2024 - £2,026) on the sale of investments and an unrealised loss of £2,195 (2024 - gain of £120,557) on investments held at the year end. The fund managers' fees have increased to £10,012 (2024 - £9,284). The funding provided to KBACT consisted of a maintenance grant of £69,000 (2024 - £66,000) and a £50,000 (2024 - £50,0000) contribution to future sustainability. The secretarial fees have increased to £1,200 (2024 - £1,000). Total funds at the year end decreased from £2,033,734 to £1,959,753 due to market performance. Investment policy and performance The trust's investment assets are managed by external fund managers, Cazenove Capital Management Limited. There were no restrictions on the charity's power to invest and the funds are invested in a portfolio of investment funds. It is the objective of the trustees to invest the trust funds to produce a distributable amount that, over time, grows roughly in line with inflation. On 7 January 2021, the trustees made a resolution under section 104(A) of the Charities Act 2011 to adopt a total return on investment approach to the permanent endowment fund. On 1 April 2021, the board identified the value of the gifts of permanent endowment received since the fund was established to be £1,550,000. This set the baseline value of the gift component of the endowment. The difference between the total of endowment funds as at 1 April 2021 and the value of the gift component represented the opening balance of unapplied total return. The power of total return permits the trustees to invest permanently endowed funds to maximise total return and to apply an appropriate portion of the unapplied total return to income each year. Until this power is exercised, the unapplied total return remains invested as part of the permanent endowment. In order to decide the level of transfer to income, the trustees sought advice from the charity's Investment Manager as to the likely investment trends and the maintenance of the real value of the investment fund. The trustees have adopted the ARC Steady Growth Index (PCI) as the principal benchmark for the performance of the fund. The trustees compare the performance of their Investment Managers with the benchmark over the period and the longer term and keep this under regular review. The portfolio's one-year total return to 31 March 2025 was 2.2% (2024: 8.7%) and the ARC Steady Growth benchmark was 4.9% (2024: 9.24%). Five years total return to 31 March 2025 was 38.9% and the benchmark was 37.7%. Reserves policy The trustees need to retain sufficient cash in unrestricted funds to enable regular grant payments to be made to KBACT. Funds are transferred from Permanent Endowment to unrestricted funds in line with the total return policy and together with income received should be adequate to meet these requirements. At 31 March 2025 unrestricted funds held were £13,846 (2024 - £18,709) which the trustees believe is adequate to fund on-going grant payments. Page 3
The Brewery Arts Centre Endowment Trust Trustees' Report for the Year Ended 31 March 2025 Going concern Risk management Internal control risks are minimised by the implementation of procedures for authorisation of all transactions These procedures are periodically reviewed to ensure they continue to meet the needs of the charity Future plans The charity plans to continue the activities outlined above in the forthcoming years subject to the satisfactor performance of its investment portfolio Approved by the Trustees on 12 August 2025 and signed on their behalf by: Hagal Page 4
The Brewery Arts Centre Endowment Trust Trustees' Responsibilities in relation to the Financial Statements The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards. 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 of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; • stato seeind expainede actuaig standardsts, e been followed, subject to any material departures - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. he trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy a any time the financial position of the charity and enable them to ensure that the financial statements comply wit Page 5
Independent Examiner's Report to the Trustees of The Brewery Arts Centre Endowment Trust I report on the accounts of the charity for the year ended 31 March 2025, which are set out on pages 7 to 15. regulations but has since been withdrawn. We understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January Respective responsibilities of trustees and examiner The Charity's trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 as amended by the Charities Act 2022 (the Act) and that an independent examination is needed. It is my responsibility to: - examine the accounts under section 145 of the Act; - follow the procedures laid down in the General Directions given by the Charity Commission under section 145 (5) (b) of the Act; and - state whether particular matters have come to my attention. Basis of independent examiner's report My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts resented with those records. It also includes consideration of any unusual items or disclosures in the accounts ind seeking explanations from you as trustees concerning any such matters. The procedures undertaken do no provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a true and fair view' and the report is limited to those matters set out in the statement below. Independent examiner's statement In connection with my examination, no matter has come to my attention: (1) which gives me reasonable cause to believe that in any material respect the requirements: • keep accounting records in accordance with section 130 of the Charities Act 2011 a amended by the Charities Act 2022; anc o prepare accounts which accord with the accounting records, comply with the accounti quirements of the A have not been met; or to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. Joanne Thomlinson FCA Dodd & Co Limited Chartered Accountants 12 August 2025 FIFTEEN Rosehill Montgomery Way Rosehill Estate CARLISLE CA1 2RW Page 6
The Brewery Arts Centre Endowment Trust Statement of Financial Activities for the Year Ended 31 March 2025 Unrestricted Endowment Total Funds Total Funds Funds Funds Income Investment income Total income Expenditure Raising funds Charitable activities Total expenditure Gains/(losses) on investment assets Net income/(expenditure) Transfers between funds Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward Note 2 : 50,070 50,070 50,070 50,070 50,393 50,393 121,944 121,944 - (121,944) 117,081 (4,863) 10,012 10,012 7,905 47,963 (117,081) (69,118) 10,012 121,944 131,956 7,905 (73,981) 9,284 118,795 128,079 122,583 44,897 (73,981) 44,897 18,709 13,846 2,015,025 1,945,907 2,033,734 1,959,753 1,988,837 2,033,734 The notes on pages 9 to 15 form an integral part of these financial statements. Page 7
The Brewery Arts Centre Endowment Trust Balance Sheet as at 31 March 2025 2025 2024 Fixed assets Investments Current assets Debtors Cash at bank and in hand Note 8 9 1,944,051 2,013,980 3,895 17,281 21,176 2,861 21,862 24,723 (4,969) Creditors: Amounts falling due within one year 10 (5,474) Net current assets Net assets 15,702 1,959,753 19,754 2,033,734 The funds of the charity: Endowment funds 1,945,907 2,015,025 Unrestricted funds Unrestricted income funds Total charity funds 13,846 1,959,753 18,709 2,033,734 The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). Approved by the Board on 12 August 2025 and signed on its behalf by: Hugh H Pring Truster The notes on pages 9 to 15 form an integral part of these financial statements. Page 8
• The Brewery Arts Centre Endowment Trust Notes to the Financial Statements for the Year Ended 31 March 2025 Accounting policies Statement of compliance Charities Act 2022. The accounts (financial statements) have been prepared to give a true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. Basis of preparation The charity 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 notes. Going concern These financial statements have been prepared on a going concern basis. Fund accounting policy restricted income funds are general funds that are available for use at the trustees' discretion ir furtherance of the objectives of the charity Further details of each fund are disclosed in note 12. Income and endowments Investment income is recognised on a receivable basis. Expenditure Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Costs of raising funds are the investment management costs incurred by the charity, Charitable expenditure comprises those 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 those costs of an indirect nature necessary to support them. Grants payable are payments made to third parties in the furtherance of the charitable objectives. Where the charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised in the SoFA once the recipient of the grant has provided the Grants payable without performance conditions are only recognised in the accounts when a commitment has been made and there are no conditions to be met relating to the grant which remain in the control of the charity. Page 9
The Brewery Arts Centre Endowment Trust Notes to the Financial Statements for the Year Ended 31 March 2025 ... continued Due here surgerain rebate ten the gone rak a gran as to romauricated to the recipient. Support costs Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage. Cash and Cash Equivalents nash men ash are valents coverise can con and and oldest resulter are liar Investments Fixed asset investments are included at market value at the balance sheet date. statement of the financial activities in the period of disposal 2 Investment income ividenc terest on cash deposi Unrestricted Endowment Total Funds Total Funds Funds Funds 2025 2024 € - 48,138 1,932 50,070 48,138 1,932 50,070 48,606 1,787 50,393 All of the investment income in 2024 related to endowment funds. Page 10
The Brewery Arts Centre Endowment Trust Notes to the Financial Statements for the Year Ended 31 March 2025 ......... continued 3 Expenditure Support costs Sundry expenses Accountancy fees Independent examiner's fee Secretarial fees 1,244 500 1,200 2,944 1,244 500 1,200 2,944 60 1,235 500 1,000 2,795 10,012 121,944 131,956 128,079 Of the expenditure in 2024 £118,795 related to unrestricted funds and £9,284 related to endowment funds. 4 Investment Grant management funding of activities Total 2025 € Total 2024 Direct costs Kendal Brewery Arts Centre Trust Limited Portfolio management costs 10.012 10,012 119,000 119,000 119,000 10,012 129,012 116,000 9,284 125,284 Grants to institutions Name of Institution Kendal Brewery Arts Centre Trust Limited Activity Grant funding of activities 119,000 5 Governance costs Accountancy fees Independent examiner's fee Secretarial fees Trustees' remuneration and expenses No trustees received any remuneration or expenses during the year. 2025 € 1,244 500 1,200 2,944 2024 1,235 500 1,000 2,735 Page 11
The Brewery Arts Centre Endowment Trust Notes to the Financial Statements for the Year Ended 31 March 2025 .. continued Taxation The registered charity is exempt from taxation on income and gains. 8 Investments held as fixed assets Market value As at 1 April 2024 Revaluation Additions Disposals As at 31 March 2025 Net book value As at 31 March 2025 As at 31 March 2024 All investment assets were held in the UK. Listed investments 2,001,718 7,905 433,963 (556,802) 1,886,784 1,886,784 2,001,718 Cash deposits 12,262 532,888 (487,883) 57,267 Total 2,013,980 7,905 966,851 (1,044,685) 1,944,051 1,944,051 2,013,980 9 Debtors 2025 2024 Prepayments and accrued income 10 Creditors: Amounts falling due within one year 3,895 2,861 2025 Accruals and deferred income 11 Related parties Controlling entity The charity is controlled by the trustees. 5,474 2024 € 4,969 Page 12
• • The Brewery Arts Centre Endowment Trust Notes to the Financial Statements for the Year Ended 31 March 2025 12 Analysis of funds At 1 April 2024 Incoming resources € Resource: expendec Transfers Other recognised At 31 March gains/losses 2025 € General Funds Unrestricted income func Permanent Endowment Permanent endowment 18,709 - (121,944) 117,081 13,846 2,015,025 2,033,734 50,070 50,070 (10,012) (131,956) (117,081) 7,905 7,905 1,945,907 1,959,753 Page 13
The Brewery Arts Centre Endowment Trust Notes to the Financial Statements for the Year Ended 31 March 2025 ....... continued Prior period At 1 April 2023 Incoming resources € Resources expended Transfers Other recognised At 31 March 2024 gains/losses € General Funds Unrestricted income fund 21,017 - (118,795) 116,487 - 18,709 Permanent Endowment Permanent endowment 1,967,820 50,393 (9,284) (116,487) 122,583 2,015,025 1,988,837 50,393 (128,079) 122,583 2.033,734 13 Transfers In order to conform with the trust's total return investment policy, a transfer of capital of £24,000 was made from permanent endowment to income in the year, along with £50,070 of investment income received in the year less £1,034 of accrued income and £5,955 of income reinvested. There was a further transfer of £50,000 directly to Kendal Brewery Arts Centre Trust 14 Total return on investments Trust for investment 1,550,000 At 1 April 2024 Movements in reporting period: Investment income Investment return: realised and unrealised gains/losses Less: investment management costs Total Unapplied total return allocated to income in the reporting period Net movements in reporting period : As at 31 March 2025 1,550,000 Unapplied total return 465,025 50,070 7,905 (10,012) 47,963 (117,081) (69,118) 395,907 Total endowment 2,015,025 50,070 7,905 (10,012) 47,963 (117,081) (69,118) 1,945,907 Page 14
The Brewery Arts Centre Endowment Trust Notes to the Financial Statements for the Year Ended 31 March 2025 .... continued 15 Net assets by fund Investments Current assets Creditors: Amounts falling due within one year Net assets Prior period Unrestricted Funds 16,791 (2,945) 13,846 Endowment Funds 1.54,051 4,385 (2,529) 1,945,907 Total Funds 1.94,051 21,176 (5,474) 1,959,753 Total Funds 2024 2013,980 24,723 (4,969) 2,033,734 Investment Current assets Creditors: Amounts falling due within one year Net assets Unrestricted Funds € 21,372 (2,663) 18,709 Endowment Funds € 2,013,980 3,351 (2,306) 2,015,025 Total Funds 2024 € 2,013,980 24,723 (4,969) 2,033,734 Total Funds 2023 1,968,398 25,354 (4,915) 1,988,837 Page 15