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2020-12-31-accounts

Charity Registration No. 1067178

THE CAISTER CASTLE TRUST

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

THE CAISTER CASTLE TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr PJSR Hill
Mr P Wood
Mr T R Hill
Mrs MDR Randall
Charity number 1067178
Principal address 6A King Street
Melton Mowbray
Leicestershire
LE13 1XA
Auditor Newby Castleman LLP
West Walk Building
110 Regent Road
Leicester
LE1 7LT
Bankers Lloyds Bank Plc
PO Box 33
7 High Street
Leicester
LE1 9FS
Solicitors Cozens - Hardy LLP
Castle Chambers
Opie Street
Norwich
NR1 3DP
Investment advisors Brewin Dolphin
Waterfront House
Waterfont Plaza
35 Station Street
Nottingham
NG2 3DQ

THE CAISTER CASTLE TRUST

CONTENTS

Page
Trustees' report 1 - 4
Independent auditor's report 5 - 8
Statement of financial activities 9
Balance sheet 10
Statement of cash flows 11
Notes to the accounts 12 - 26

THE CAISTER CASTLE TRUST

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees of The Caister Castle Trust ("the Charity") are pleased to present their annual report and financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and “Accounting and Reporting by Charities”: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS 102 (2019).

The 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 the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the regulations but which has since been withdrawn.

Objectives and activities

Inter alia the objectives of the Charity are to promote education and conservation of the history of motoring and to acquire, preserve and exhibit to the public chattels of historic and scientific interest. The Charity operates from exhibition facilities at Caister Castle, West Caister, Norfolk and is open to the public 6 days a week during the summer months for 20 weeks. The facilities house many fine rare veteran, vintage, classic, sports and touring automobiles and motorcycles. Caister Castle is currently home to the largest private collection of motor vehicles in Britain. Looking ahead, the Charity aims to maintain and improve facilities and exhibits as opportunities arise.

Public Benefit

In formulating and applying these objectives, the Trustees have regard to the guidance of the Charity Commission on Public Benefit.

The Charity meets the public benefit requirements through: affordable admission prices meaning the exhibition halls and other facilities are accessible to all; promoting the education of the public concerning the history of motoring; and conserving, for the benefit of the public, historic motor vehicles. Public awareness is achieved by advertising and its website, to enable as many members of the public to gain access to the collection.

Achievements and performance

Each year, the Trustees monitor the number of visitors to the exhibitions and consider the number attending in 2020 to be satisfactory. The Trustees are continually vigilant for new vehicle acquisitions to compliment the existing exhibits with vehicle acquisitions and on-going restorations of significant vehicles in the collection. The exhibition halls and other facilities are improved and extended according to requirements. The Trustees are continually monitoring long term strategic aims, to assist with future planning.

Financial review

The results for the year ended 31 December 2020 are set out in the statement of financial activities on page 9, which the Trustees consider to be satisfactory. The Trustees consider the results to be acceptable with total income increasing to £845,681 (2019 - £569,587), total expenditure decreasing to £557,100 (2019 - £665,444), losses on investments were £53,963 (2019 - £682,925 gain) and the net movement in funds was £234,618 (2019 - £587,068).

The principal sources of income include entrance fees to the exhibitions, and annual income from investments. The Trustees regularly review the organisational health of the charity and seek to achieve a surplus to enable implementation of the charities aims.

Regular maintenance programmes and responsive repairs are continued throughout the year to ensure the

integrity of the exhibition halls and other facilities and its heritage assets.

THE CAISTER CASTLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

The coronavirus (COVID-19) pandemic prevented the exhibition halls and other facilities from opening to the public in Spring 2020. It reopened on 6 July 2020, in accordance with government guidelines. The final impact caused revenue from museum admissions to decrease as it was only open for 12 compared to the usual 20 weeks. There was no significant impact on other income streams, but some cost savings were obtained. Investment movements have been hot by the pandemic, however the early indications are that property values have been maintained at the year-end values as stated in the balance sheet. As the income generated from admissions is relatively small in comparison to the overall income and retained reserves of the charity, the effect of reduced admissions due to COVID-19 has not, in the opinion of the Trustees, significantly impacted the finances of the charity. Based on current government advice, restrictions have been lifted fully, although some may be reimposed in the coming winter.

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level at least equivalent to twelve month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in income, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This minimum level of reserves has been maintained throughout the year.

All of the funds of the Charity are required for the operation and development of the Trust. The Trustees consider all of the reserves of the Trust to be unrestricted. The Trustees consider the net assets of the Charity, excluding those assets held for the long term, to be free reserves. The level of free reserves is, therefore, in the order of £700,000, which equates to the net current assets excluding the debtor in respect of the sale of Guadeloupe House, shown on the balance sheet on page 10.

There are items of substantial expenditure, both contemplated and in hand, including land acquisition and improvement to facilities as required. The Trustees will retain sufficient free reserves, following the development projects, to cover operating costs for the foreseeable future. As set out earlier in this report, the Trustees are continually enhancing the exhibits and improving the buildings, which will result in a consequent increase in the costs of operations. It is with these plans in mind that the Trustees consider it necessary to maintain the current level of free reserves until such time as these developments are expended, and the annual increased operating costs are known with more certainty.

Investment policy

There is no restriction on the Trustees' power to invest. The Trustees are aware of their responsibility to ensure that a satisfactory return is obtained from the Charity's assets.

It is the current policy of the Trustees to hold surplus funds in interest bearing bank accounts where possible, and other investments in order to minimise risk, with an emphasis on capital preservation.

Risk management

The Trustees regularly review the major risks to which the Charity is exposed. During the year, the Trustees have considered these risks and believe that satisfactory controls are in place to mitigate them to an acceptable level. In the light of the current financial climate, the Trustees have considered the specific risks involved with income, assets and public liabilities.

Income risk

The Charity is less dependent now on the continued funding from income from public admissions which could clearly increase or decrease in any period. Rental and investment income are expected to be sources of additional funding in the future years, and should be sufficient to cover expenditure.

Asset risk

The Charity has significant value within its tangible fixed assets and investments. These are continually maintained by the Charity. The Trustees consider the spread and risk associated with its various investments, and the Charity maintains a diversified portfolio with the objective of managing the risk associated with them.

Public liabilities

The Charity recognises its duty to the public viewing the exhibition, and all reasonable steps are taken to safeguard their visits.

THE CAISTER CASTLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Structure, governance and management

Caister Castle Trust is a registered Charity (number 1067178) which was formed as a Trust on 6 January 1998 by Deed of Declaration of Trust. The Trust is governed by a Board of Trustees. Mr PJSR Hill has been assigned the day to day management of the Charity on behalf of the Trustees. However, key decisions of the Trust relating to the activities and financial performance are taken by the Trustees as a whole.

Governing Body and Appointment of Trustees

The structure of the Charity consists of one set of Trustees. The board of Trustees is authorised to appoint new Trustees to fill vacancies arising through resignation or death of an existing Trustee.

Trustee Education and Training

New Trustees will undergo an orientation day to brief them on their legal obligations under the Charities Act, the committee and decision making processes, future plans and the recent financial performance of the charity. Trustees will be encouraged to attend appropriate external training events where these will facilitate the undertaking of the role.

The power of appointing new Trustees vests in the continuing Trustees within the terms of the Deed Declaration of Trust and the key objectives of the charity are:

Mr PJSR Hill acts as a director for a number of the Trust's subsidiary companies and significant undertakings. These are listed in notes 18 and 19.

The Trustees who served during the year were:

Mr PJSR Hill Mr P Wood Mr T R Hill Mrs MDR Randall

Statement of Trustees' responsibilities

The Trustees are responsible for preparing the Trustees’ Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare accounts 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 year. In preparing these accounts, the Trustees are required to:

THE CAISTER CASTLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees are responsible for keeping proper adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

The Trustees' report was approved by the Board of Trustees.

Mr PJSR Hill

Trustee Dated: 7 December 2021

THE CAISTER CASTLE TRUST

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE CAISTER CASTLE TRUST

Opinion

We have audited the financial statements of The Caister Castle Trust (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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 Accounting Standards, including FRS 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:

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 charity 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 Trustees' 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 charity’s ability to continue as 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.

Other information

The other information comprises the information included in the Trustees' report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the Trustees' report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

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 course of 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 themselves. 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.

THE CAISTER CASTLE TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE CAISTER CASTLE TRUST

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation where the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement set out on pages 3-4, the Trustees 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 charity’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 cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. However, responsibility for the prevention and detection of fraud ultimately rests with both those charged with governance and management of the charity.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

THE CAISTER CASTLE TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE CAISTER CASTLE TRUST

Audit response to risks of irregularities identified

Our procedures to respond to risks identified included the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice" applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

THE CAISTER CASTLE TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE CAISTER CASTLE TRUST

This report is made solely to the charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's Trustees those matters we are required to state to them in an auditors' 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 charity and the charity's Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Newby Castleman LLP

7 December 2021

Chartered Accountants Statutory Auditor West Walk Building 110 Regent Road Leicester LE1 7LT

Newby Castleman LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

THE CAISTER CASTLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Income from:
Donations
3
Charitable activities
4
Investments
5
Other income
6
Total
Expenditure on:
Raising funds
7
Charitable activities
8
Total
Net gains on investments
13
Net income for the year/net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 2020
2019
as restated
£
£
412,836
43,466
85,183
145,058
342,115
370,393
5,547
10,670
845,681
569,587
184,834
339,184
372,266
326,260
557,100
665,444
(53,963)
682,925
234,618
587,068
24,430,601
23,843,533
24,665,219
24,430,601		 2020
2019
as restated
£
£
412,836
43,466
85,183
145,058
342,115
370,393
5,547
10,670
845,681
569,587
184,834
339,184
372,266
326,260
557,100
665,444
(53,963)
682,925
234,618
587,068
24,430,601
23,843,533
24,665,219
24,430,601
569,587
339,184
326,260
665,444
682,925
587,068
23,843,533
24,430,601

All income and expenditure derive from continuing activities.

All income and expenditure in the current and prior period is unrestricted.

THE CAISTER CASTLE TRUST

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
14
Heritage assets
15
Investment properties
16
Investments
17
Current assets
Stocks
20
Debtors
21
Assets held for sale
22
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within one
year
23
Net current assets
Net assets
The funds of the charity
Unrestricted funds		 £
1,370
2,101,063
-
620,337
2,722,770
(53,904)		 2020
£
3,117,056
1,179,423
14,113,374
3,586,500
21,996,353
2,668,866
24,665,219
24,665,219
24,665,219		 2019
as restated
£
£
3,152,913
1,050,512
14,040,370
3,102,968
21,346,763
1,370
135,447
2,415,143
575,435
3,127,395
(43,557)
3,083,838
24,430,601
24,430,601
24,430,601		 2019
as restated
£
£
3,152,913
1,050,512
14,040,370
3,102,968
21,346,763
1,370
135,447
2,415,143
575,435
3,127,395
(43,557)
3,083,838
24,430,601
24,430,601
24,430,601
21,346,763
3,083,838
24,430,601
24,430,601
24,430,601

The financial statements were approved and authorised for issue by the board of trustees on 7 December 2021 and are signed on its behalf by:

Mr PJSR Hill

Trustee

The notes on pages 12 - 26 form part of these financial statements.

THE CAISTER CASTLE TRUST

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

2020
Notes
£
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
25
Investing activities
Purchase of tangible fixed assets
(42,488)
Purchase of heritage assets
(128,911)
Purchase of investment property
(196,519)
Proceeds on disposal of investment
property
-
Purchase of other investments
(537,669)
Proceeds on disposal of other investments
564,370
Investment income
342,115
Net cash generated from investing
activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2019
£
£
£
44,004
(331,204)
(589,641)
(149,696)
(50,258)
512,457
(140,603)
415,351
370,393
898
368,003
-
-
44,902
36,799
575,435
538,636
620,337
575,435

THE CAISTER CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

The Caister Castle Trust is governed by its Constitution.

1.1 Basis of preparation

The charity is a public benefit entity as defined by FRS102. These financial statements have been prepared in accordance with: The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (“FRS 102”), Accounting and Reporting by Charities: the Statement of Recommended Practice for charities applying FRS 102 (2019), the Charities Act 2011, and UK Generally Accepted Accounting Practice.

The financial statements 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 the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

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

The financial statements have been prepared under the historical cost convention, modified to include investment properties and listed investments at fair value. The principal accounting policies adopted are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Consolidated financial statements have not been prepared, because the aggregate gross income is below the consolidation threshold.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Donations from subsidiary undertakings and participating interests are recognised on an accruals basis, once the charity has been notified of the donation.

Income from charitable activities includes admission receipts and shop sales from the motor museum and is recognised on a receipts basis as the related goods and services are provided.

Investment income is earned through holding assets for investment purposes. It comprises rental income and farming income which are recognised on an accruals basis, as well as dividend income.

THE CAISTER CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.5 Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs relating to the category. Expenditure is recognised when there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. It is recognised under the following headings:

Irrecoverable VAT is charged against the category of resources expensed for which it was incurred.

1.6 Support costs

Support costs are those that assist the work of the charity but do not directly represent charitable activities and costs of raising funds and include office costs, governance costs, and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity. Support costs are allocated to costs of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

The analysis of these costs is included in note 10.

1.7 Tangible fixed assets

Tangible fixed assets are initially measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Long leasehold land & buildings Over the life of the lease Freehold buildings 50 years Equipment 5 years

Freehold land is not depreciated.

1.8 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the Statement of Financial Activities ("SOFA").

1.9 Heritage assets

In accordance with its objectives, the Trust holds a collection of veteran, vintage and classic vehicles. Only the vehicles for which reliable historic information is available for cost or valuation have been recognised on the balance sheet of The Caister Castle Trust. The remaining vehicles have not been recognised on the balance sheet as there is no reliable historic information available to confirm the cost or valuation. The Trustees believe no accurate valuation can be placed on these assets because of their unique nature.

The collection is held in exhibition halls within the trust, and the cost of maintenance is charged through the statement of financial activities. The exhibition halls and other facilities are open to the public 6 days a week during the summer months.

THE CAISTER CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.10 Fixed asset investments

Listed investments are stated at market value as at the balance sheet date. The statement of financial activities includes the net gains and losses arising on market valuation and the disposals throughout the year, in respect of the holdings.

Unlisted investments, comprise investments in subsidiaries and associates, which were part of a legacy made to the Trust, are valued on the basis of their donated cost at the time of the donation less impairments to date.

1.11 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount in order to determine the extent of the impairment loss (if any). Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the SOFA unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

1.12 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct material costs and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

1.13 Cash and cash equivalents

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 Financial instruments

Financial instruments are recognised in the charity’s balance sheet when the charity becomes party to the contractual provisions of the instrument.

Debtors and creditors with no stated interest rate and receivable or payable within one year are measured at transaction price. Any losses arising from impairment are recognised in the SOFA.

1.15 Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.16 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

THE CAISTER CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period. If the revision affects both current and future periods they will be recognised accordingly.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Valuation of investment property

The valuation of investment properties are reassessed annually by the trustees and, when necessary, amended to reflect current estimates.

3 Income from donations

Unrestricted
funds
2020
£
Donations from subsidiary undertakings and
participating interests
412,836
Income from charitable activities
Unrestricted
funds
2020
£
Admission receipts and shop sales
85,183		 Total Unrestricted
funds
2020
2019
£
£
412,836
43,466
Total
Unrestricted
funds
2020
2019
£
£
85,183
145,058		 Total
2019
£
43,466
Total
2019
£
145,058

4 Income from charitable activities

THE CAISTER CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

5 Income from investments

6
7		 Unrestricted
funds
2020
£
Rental income
273,887
Dividend income
18,488
Farming income
49,730
Interest receivable
10
342,115		 Unrestricted
funds
2020
£
Rental income
273,887
Dividend income
18,488
Farming income
49,730
Interest receivable
10
342,115		 Total Unrestricted
funds
2020
2019
£
£
273,887
273,391
18,488
26,417
49,730
70,538
10
47
342,115
370,393		 Total Unrestricted
funds
2020
2019
£
£
273,887
273,391
18,488
26,417
49,730
70,538
10
47
342,115
370,393		 Total
2019
£
273,391
26,417
70,538
47
370,393
Other income
Unrestricted
funds
2020
£
Sale of labour costs
2,338
Insurance recharged out
2,999
Promotional income
210
5,547
Expenditure on raising funds
Unrestricted
funds
2020
£
Costs of raising funds
Cost of sales
1,169
Repairs and maintenance
28,710
Legal and professional
13,677
Advertising
7,151
Commission on rents
26,805
Share portfolio management
5,246
Other expenditure
10,435
Support costs (note 10)
91,641
184,834		 Total Unrestricted
funds
2020
2019
£
£
2,338
1,721
2,999
5,457
210
3,492
5,547
10,670
Total Unrestricted
funds
2020
2019
£
£
1,169
3,287
28,710
144,560
13,677
15,161
7,151
20,571
26,805
24,128
5,246
5,624
10,435
8,833
91,641
117,020
184,834
339,184		 Total
2019
£
1,721
5,457
3,492
10,670
Total
2019
£
3,287
144,560
15,161
20,571
24,128
5,624
8,833
117,020
339,184

THE CAISTER CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

8 Expenditure on charitable activities

Activities Support Total Total
undertaken Costs 2020 2019
directly
Note 9 Note 10
£ £ £ £
Motor exhibition halls and other facilities 203,474 168,792 372,266 326,260

9 Expenditure on activities undertaken directly

Labour costs
Property repairs and maintenance
Insurance
Rent and rates
Light and heat
Telephone
General
Repairs and maintenance to exhibits
Legal and professional		 2020
£
219
82,472
61,811
7,693
7,558
5,918
5,700
12,545
19,558
203,474		 2019
£
11,275
57,700
60,612
11,047
9,717
5,807
4,688
4,192
16,320
181,358

THE CAISTER CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

10 Expenditure on support costs

Basis of allocation
Staff costs
2*
Depreciation
1
Accountancy and audit
1
Motor expenses
1*
Travel
1
Other expenses
1
Admin expenses from Caister Castle Limited
*3
Analysed between:
Raising funds
Charitable activities		 2020
£
146,402
78,345
22,848
918
265
565
11,090
260,433
91,641
168,792
260,433		 2019
£
156,894
70,970
19,247
756
75
531
13,449
261,922
117,020
144,902
261,922

Raising funds - Wages costs recharged from Caister Castle Limited £80,551 (2019 - £103,571) Charitable activities - Wages costs within the charity £65,581 (2019 - £53,323)

The amount charged to the statement of financial activities in respect of auditor's remuneration was £22,848 (2019 - £19,247).

11 Trustees

None of the Trustees (or any persons connected with them) received any remuneration, during the year or prior year.

THE CAISTER CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

12 Employees

Number of employees

The average number employees during the year was:

Number of employees
The average number employees during the year was:
Office and management 2020
Number
5		 2019
Number
4

2019
£
153,160
2,996
738
Whilst the exhibition halls and other facilities are open, 10 (2019 - 10) employees of Caister Castle
Limited work for the charity, their salary costs are recharged to the charity.
Employment costs
Wages and salaries
Social security costs
Other pension costs
There were no employees whose annual remuneration was £60,000 or more.		 2020
£
142,290
3,340
772
146,402
156,894

13 Net gains on investments

2020 2019
£ £
Revaluation of investments 56,611 (41,288)
Gain on sale of investments 12,941 78,110
Revalution of investment properties (123,515) 785,646
Gain/(Loss) on sale of investment properties - (139,543)
(53,963) 682,925

THE CAISTER CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

14 Tangible fixed assets

Tangible fixed assets
Cost
At 1 January 2020
Additions
At 31 December 2020
Depreciation and impairment
At 1 January 2020
Depreciation charged in the year
At 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2019		 Long
leasehold
land &
buildings
£
643,000
-
643,000
90,018
8,573
98,591
544,409
552,982		 Freehold
buildings
Equipment
£
£
2,811,247
123,056
25,618
16,870
2,836,865
139,926
234,509
99,863
54,625
15,147
289,134
115,010
2,547,731
24,916
2,576,738
23,193		 Total
£
3,577,303
42,488
3,619,791
424,390
78,345
502,735
3,117,056
3,152,913

THE CAISTER CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

15 Heritage assets

At 1 January 2020
Additions
At 31 December 2020		 Museum
exhibits
£
1,050,512
128,911
1,179,423

The exhibition halls' exhibits comprise a collection of veteran, vintage and classic vehicles. Only vehicles where reliable historic information is available for cost or valuation have been recognised in the balance sheet. A significant proportion of the collection of vehicles are on loan from Parade Court Limited. No value has been included in the financial statements for this loan agreement because the value of the donated service is unquantifiable due to the nature of the transaction. The remainder of the collection has not been recognised on the balance sheet of The Caister Castle Trust because reliable historic information is unavailable to confirm cost or valuation. The Trustees believe no accurate valuation can be placed on these assets because of their unique nature.

Five year financial summary of heritage asset transactions

2020
£
Additions
128,911
128,911
Investment property
Fair value
At 1 January 2020
Additions
Net gains or losses through fair value adjustments
At 31 December 2020		 2019
£
149,696
149,696		 2018
£
83,238
83,238		 2017
£
326,470
326,470		 2016
£
14,041
14,041
2020
£
14,040,370
196,519
(123,515)
14,113,374

16 Investment property

Investment property comprises of commercial land and rental property. The fair value of certain investment properties have been arrived at on the basis of valuations carried out on 31 December 2020 by Andrew Granger Chartered Surveyors and Brown & Co Property, which are not connected with the charity. The valuations were made on an open market value basis by reference to market evidence of transaction prices for similar properties. The fair value of other investment properties is stated at the trustees' valuation and has been guided by a previous external valuation as well as the trustees' knowledge and experience.

THE CAISTER CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

17 Fixed asset investments

Listed
investments
Unlisted
investments
£
£
Cost or valuation
At 31 December 2019
939,288
2,163,680
Additions
537,669
-
Valuation changes
56,611
-
Disposals
(110,748)
-
At 31 December 2020
1,422,820
2,163,680
Carrying amount
At 31 December 2020
1,422,820
2,163,680
At 31 December 2019
939,288
2,163,680		 Total
£
3,102,968
537,669
56,611
(110,748)
3,586,500
3,586,500
3,102,968

Unlisted investments comprise investments in subsidiaries of £698,317 (2019 - £698,317) and investments in associates of £1,465,363 (2019 - £1,465,363)

THE CAISTER CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

18 Subsidiaries

These financial statements are separate charity financial statements for Caister Castle Trust.

Details of the charity's subsidiaries at 31 December 2020 are as follows:

Name of undertaking Registered Nature Class of % Held
office of business shares held Direct
Caister Castle Limited England and Wales Supply of labour Ordinary 100.00
Curnaseer Limited England and Wales Farming Ordinary 100.00
Ferncombe Limited England and Wales Letting of property Ordinary 100.00
Parade Court Limited England and Wales Letting of property Ordinary 75.00
Wymondham Dairies Limited England and Wales Supply of labour Ordinary 91.00

The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows:

Name of undertaking Profit/(Loss) Capital and
Reserves
£ £
Caister Castle Limited - (619)
Curnaseer Limited (9,133) 238,509
Ferncombe Limited (6,328) 163,582
Parade Court Limited 41,128 18,719
Wymondham Dairies Limited 3,822 24,940

The above companies have the following year ends; Caister Castle Limited - 31 December, Curnaseer Limited - 31 July, Ferncombe Limited - 31 October, Parade Court Limited - 31 October and Wymondham Dairies Limited - 30 November.

19 Significant undertakings

The charity also has significant holdings in undertakings which are not subsidiaries of the charity and are not classified as joint ventures or associated undertakings:

Name of undertaking

Goodfine Limited Pikerace Limited Scotsborough Castle Limited

The above companies have the following year ends; Goodfine Limited - 31 July, Pikerace Limited - 31 July and Scotsborough Castle Limited - 5 April.

THE CAISTER CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

20
Stocks
Finished goods and goods for resale
21
Debtors
Amounts falling due within one year:
Trade debtors
Amounts due from subsidiary undertakings
Other debtors
Prepayments and accrued income
22
Assets held for sale
Investment property held for sale
23
Creditors: amounts falling due within one year
Trade creditors
Other creditors
Accruals and deferred income		 2020
£
1,370
2020
£
37,670
21,178
1,974,829
67,386
2,101,063
2020
£
-
2020
£
6,330
3,200
44,374
53,904		 2019
£
1,370
2019
£
20,918
47,389
45
67,095
135,447
2019
£
2,415,143
2019
£
12,122
3,298
28,137
43,557

THE CAISTER CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

24 Related parties

During the year, the charity sold services to the following companies, of which Mr PJSR Hill is a director:

2020 2019
£ £
Curnaseer Limited 723 622
Goodfine Limited 482 463
Pikerace Limited 723 636

During the year, the charity bought services from Caister Castle Limited totalling £91,641 (2019 - £117,020) and incurred labour costs from Wymondham Dairies Limited of £217 (2019 - £11,209). During the year the company received rent from Wymondham Dairies Limited of £1,717 (2019 - £1,717) and from Curnaseer Limited of £1,020 (2019 - £1,020). The charity also received farming income from Curnaseer Limited of £15,238 (2019 - £Nil).

A significant proportion of the collection of vehicles is on loan from Parade Court Limited, a company which Mr PJSR Hill is also a director of. No value has been included in the financial statements for this loan agreement because the value of the donated service is unquantifiable due to the nature of the transaction.

During the year, the following companies, of which Mr PJSR Hill is a director, made donations to the charity:

charity:
2020 2019
£ £
Goodfine Limited 2,839 23,062
Pikerace Limited - 20,404
Parade Court Limited 409,997 -

Amounts due from related parties at the year end are as follows:

Caister Castle Limited
Goodfine Limited
Pikerace Limited
Space Foods Limited		 2020
£
14,533
2,839
-
3,806
21,178		 2019
£
117
23,062
20,404
3,806
47,389

THE CAISTER CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

25
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
(Gain)/loss on disposal of investment property
Gain on disposal of investments
Fair value gains and losses on investment properties
Fair value gains and losses on investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in debtors
Increase in creditors
Cash generated from/(absorbed by) operations		 2020
£
234,618
(342,115)
-
(12,941)
123,515
(56,611)
78,345
8,846
10,347
44,004		 2019
£
587,068
(370,393)
139,543
(78,110)
(785,646)
41,288
70,970
63,062
1,014
(331,204)

26 Prior period adjustment

Changes to the balance sheet

The prior period adjustment relates to a restatement of the previously reported statement of financial activities and balance sheet figures in relation to an investment property incorrectly stated. The comparative figures, have been adjusted as follows:

As
Current assets
Assets held for sale
Changes to the statement of financial activities
As
Net gains on investments		 At 31 December 2019
previously
reported
Adjustment
As restated
£
£
£
1,899,107
516,036
2,415,143
Period ended 31 December 2019
previously
reported
Adjustment
As restated
£
£
£
166,889
516,036
682,925