REGISTERED COMPANY NUMBER: 03416760 (England and Wales) REGISTERED CHARITY NUMBER: 1079008 Re ort of the Trustees and Financial statements forthe Year Ended 31 December 2023 for TheA le Pa er Trail Xeinadin Audit Limlted 8th Floor Becket House 36 Old Jewry London EC2R 8DD
The A sle er Trail Contents of the Financial Ststements for the Year Ended 31 December 2023 Page Report of the Trustees Report of the Independent Auditors 9 to 12 Statement of Financial Activitie5 13 Balance Sheet 14 to 15 Cash Flow Statement 16 Notes to the Financial Statements 17 to 32 Detailed Statement of Financial Activities 33 to 36
The A sle Pa erTrail Re ort of the Trustees for the Year Ended 31 December 2023 The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) (effective l January 20191. OBJECTIVES AND AcfiviTIES Objertives and aims To educate the public in the art and science of paper based communication including its history, present and future, and to conserve and maintain buildings, equipment and documents connected with paper production and usage in the United Kingdom.. particularly in the valley of the River Gade. Page I
TheA le Pa r Trail rt of the Trustees for the Year Ended 31 December 2023 OBJEcfivE5 AND AcfiviTIES Significant events In 2023 o APT are paying a Significant rent to its landlord, the Dacorum Borough Council. It is still an objective of the Trust to gain ownership of Frogmore Paper Mill. The Council is in agreement in principal that APT purchase Frogmore Mill land and buildings, initial dlscussions have commenced in 2024. o APT recelved 13 grants totalling £27,025. These included monies to deliver a green loutdoorl classroom, an archive extension, and LED lighting throughout. o Work was completed on a third paper machine, a bespoke Fourdrinier conveyor mould paper machine. It is dedicated to producing seed papers, a Frogmore paper grade that has gained enormously in popularity amongst specialist paper buyers. o Successful fund-raising campaigns yielded over £40,500 in the year. o APT is now offlcially working towards the Arts Council Museum Accreditation. o Plannlng consent has been approved forthe major repair works of roof5 and brick walls of the stock room and PM2 building. A design and construction team is managing this'Phoenix' project. o Following the arson attack of 2022, the insurance payout has been agreed and paid out. o There has been a successful prosecution of the young arsonists, who participated in RJR (Restorative Justice Reparation) work at Frogmore Paper Mill during the summer. o A ceremony was held at St. Mary's church, Abbots Langley, to celebrate the centenary of John Evans birth. o The APT Heritage Fire Brigade team were able to attend two local shows during the year and contlnue to maintain and improve the qua lity of these historic appliances. o Full occupancy of APT'S investment properties was realized for the first time. o Our growing volunteer maintenance team coordinated by Alan Banton completed many valuable projects. It also fulfilled some key tasks including garden maintenance on our two sites, recommissioning inside spaces for further mill use, preparin8 and decorating office space in readiness to accommodate additional tenants, and completing the refurbishment of the JDEC bathrooms. o Industrial areas within the Mill and currently unused by the Charity continue to be rented out to film companies. o Despite the fact the centre is closed to Vi51tor5, APT'S education officer, Sue Woolnough's promotion of Frogmore to schools via 'outreach' assemblies and workshops. o Gary Fuller's management of our in-house paper business continues to achieve growth year on year. He has also been Instrumental in tralning up staff to operate the bespoke paper machine commissioned thls year. It has helped towards a record year for sales, o During the year, and when possible, volunteers gave off-site talks promoting Apsley Paper Trail. Page 2
The A sle Pa er Trail ort of the Trustees forthe Year Ended 31 December 2023 OBJECTIVES AND AcfMTIES o Other activities included successful'storyboats, throughout the year and a successful art auction. o The Rotary Club's Santa's Sleigh was based at Frogmore in the days before Christmas. Public benefit Beyond being a significant 51te from a world-wide and national viewpoint, the Trust serves the local region, particularly these six communities: Gade Valley residents. workers, learners and visitors Schools, especially in and around the Gade Valley -The British paper industry and allied trades Paper based art and craft practitioners Descendants of former Gade Valley paper mill workers Social and industrial historians Apsley Paper Trail's charitable activities provide the following benefits, some of which have been restricted due to the arson attack on 22nd January 2022 that resulted in the demolition of the Visitor Centre: o We are custodians of a heritage site of world significance, preserving and conserving paper industry history by keeplng the world's oldest mechanised paper mill operatlng, and giving the public access to industrial processes and historical exhibitions. We inform and entertain visitors With the story of paper. o We maintain and catalogue the archlve for John Dickinson Stationary Ltd, formerly the major employer in the area; the British Paper Company; and other local paper and print related collections. o We house The Paper Trail Heritage Fire Brigade, conserving historic paper-mill fire appliances and equipment. o We provide rehearsal and storage space for the Hemel Hempstead Band (formerly the John Dickinson factory band). o We have the 'Learning Outside the Classroom Quality Badge, and deliver a unique schools, education programme related to heritage paper making to students every year. Currently this is delivered through outreach. o We offer work experience for young adults including those with severe learning and physical difficulties. o We provide free training for long-term unemployed people, helping them back into work, free IT training to assist them and the digitally excluded, and training to help companies to improve their business. o We provide free IT drop-in training sessions, {due to the fire, these are currently held at the Sin Café -Apsley- mostly used by senior member5 of the local community. o Pre fire we offered a range of adult leisure classes. designed to cover subjects no longer delivered by our local college, some of them free. These are suspended until an in-house facility has been constructed. o We specialise in supporting the socially or economicaSly excluded, and our volunteer programme provides additional opportunities for more than 60 volunteers from all walks of life. o The art gallery, that provided studio accommodation for artists in exchanEe for support with our visitor activities was also destroyed by the fire. This facility too must wait reconstruction of a visitor area. o We continue to provide accommodation for over 20 businesses in our enterprise centre, helping sustain more than 90 local jobs. o We support local small businesses by offering space, at minimal cost, for Selling their products at our Christmas fair, food fairs and other event5. Page 3
The A sle er Trail Re ort of the Trustees forthe Year Ended 31 December 2023 FINANCIAL REVIEW Financlal Review and Reserves Pollcy In 2023 the charity carefully managed its resources in order to continue to support its objectives and rnaintain financial viability. The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities they should undertake. Our principal revenue streams were as follows: Donations and legacies £33,496 12022: £118,006) Investment income £411,383 (2022: £304,767), Charitable activities £245,581 {2022: £253,017), and other income £16,25112022: £1,978,764). Depreciation and amortisation totalled £27,366 {2022: £23,948) We finished the period covered by this report with a cash balance of £1,046,558 {2022: £455,248) Unrestricted funds at the year end totalled £3.268,653, while restricted funds totalled £259,323. We note that the audit report has been qualified in respect of the valuations of the properties included within freehold property and investment property. While we are aware of the requirement to revalue the properties wlth sufficient regularity to ensure they are not mi5Stated, at this time we do not consider it to be a suitable use of the charities funds to do so. Reserves policy We maintained our reserves poli of £50,000 credit, FUTURE PLANS FOR 2024 AND BEYOND The key objective for 2024 is to work on delivery of the temporary visitor centre in the store room area (close to Durance Hill Road) to include shop, drinks facility, museum, visitor toilets, and to plan and devise a guided visitor route through the Paper Mlll. It is hoped this will facilitate reopening to visitors in 2025. o Continue making grant applications, and additionally with the very attive and, all-encompassing, fund-raising campaign. o Continue to develop our plan5 for an enhanced visitor experience at Frogmore Paper Mill for 2024125. o Given the arson attack, still investl8ate the possibility of the Charity purchasing the Frogmore Paper Mill site. o Develop further our relationship with the paper manufacturing industry. o Revisit APT'S various policies, and ensure they meet today's requirements, particularly with regard to 'safeguarding', financial management et al,, and 'risk assessment,. o Further develop the archive to include a substantial focus on the Gade Valley as the blrthplace of mechanized paper production. and on its entrepreneur and paper maker John Dickinson and the John Dickinson Company. Page 4
TheA sle Pa erTrail Re ort of the Trustees for the Year Ended 31 December 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Govemlng document The Apsley Paper Trail is a charitable company limited by guarantee, governed by its Memorandum and Articles of A550ciation dated 8th August 1997 amended by Special Resolution dated 14th January 2000. The Charity operates on two Sites near each other in Apsley, Hertfordshire- Ap51ey Mills Cottage, and Frogmore Paper Mill. The Trustees, together with the CEO and senior manager5, are responsible for strategic direction of the Charity. Operational decisions are delegated to staff. The Trustees meet at least quarterlv. Trustees are appolnted by the Board. New Trustees are selected for their appropriate skills and the manner in which these skills compliment those of other board members. All Trustees give their time voluntarily and received no benefits from the Charity. Volunteers play a key role in the delivery of the Charity's objectives. They are managed by the Charity which interviews all applicants and matches their skills and knowledge to available opportunities. Volunteers donate their time and skills in a wide range of tasks including: creating a unique archive and artefact collection. Tour-guiding, demonstrating hand-made paper making, staffing the Visitor Centre, making and selling stationary products has ceased due to the reconstruction of the site following the arson attack in January 2022. It is hoped the temporary visitor centre will open again at the end of 2024/ earlv 2025. However, they are engaged in supporting some work on the reconstruction and still art as tutor5 for IT and other course5, maintaining and crewing its boat, maintaining & demonstrating the heritage fire equipment. They continue their support with ongoing maintenance & restoration work, painting & decorating, gardenin& and office & administration work. Thanks It is not possible to overstate the effort and 5UPPOrt given to the Charlty by it5 Staff, volunteers and consultants. Sincere thanks to all.. from the Trustees. Page 5
The A sle Pa er Trail Re ort of the Trustees for the Year Ended 31 December 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Risk management The Trustees accept and take seriously their responsibility for risk management at Apsley Paper Trail. We have taken advice from professiona15 and put in place a comprehensive risk management process which includes- Identification of risk through risk assessments for all areas and activities. Assessment of levels of risk according to possible impact and the likelihood of occurrence. Establishment of control systems to manage identified risks. Maintenance of a Risk Register. Regular reviews by senior management. Given the nature and complexity of our activities, particularly the heritage equipment and manufacturing operation which is fundament31 to our strategic objectives and is open to the public, we take very seriously our duty to protect staff, volunteers and visitors, complying with legal and insurance requirements, while continuing the manufacturing operation. Controls in place for major risks include: Regular health and safety checks on all Machinery, equipment and buildings. Strict rules on supervlsion of visitors, with a higher supervlsor ratio for young and vulnerable people. Properly guarded machinery with clearly marked routes for visitors. Clearly signed emergency exits, with provision for 31ertin8 those with vision or hearing problems, and for assisting those with mobility problems. Provision of safety clothing and equipment where relevant. Appropriate skills specified for Trustees, staff, sub-contractors and volunteers, with training and development as appropriate. Strategic and operational plans agreed at Trustee level and monitored throughout the year. Reserves policy and contingency plan. Spending controls including specified authority levels. Careful management of grant-funded projects to ensure compliance and delivery of all contracted activitie5 on time. Disaster recovery plan including data back-up procedures and precautions. Communications plan including procedure for complaints and adverse publicity. Input from professional advisers including auditors. insurers, health and safety specialists. Embedding risk identification, evaluation and monitoring in working processes, and management procedures. Monthly reviews by senior management. Bi-annual review by the Trustees. REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 03416760 (England and Wales) Registered Charity number 1079008 Pa8e 6
TheA le Pa rTrail rt of the Trustees for the Year Ended 31 December 2023 Registered office Apsley Mills Cottage London Road Hemel Hempstead Hertfordshire HP3 9RL Trustees S N P Ody Leisure industry consultant H B Clarke Company director J D Watsorb Chair Mrs H Robinson Company director Dr S Mann Company director J Colton P Burford Auditor5 Xeinadin Audit Limited 8th Floor Becket House 36 Old Jewry London EC2R 8DD CEO Mrs Elena Lewendon STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees {who are also the directors of The Apsley Paper Trail for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the State of affairs of the charitable company and of the incoming resources and application of resource5, including the income and expenditure. of the charitable company for that period. In preparing those financial statements, the trustees are required to select suitable accounting policies and then apply them consistentlyi observe the methods and principles in the Charity SORP; make judgements and estimates that are reasonable and prudent; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 7
The A sle Pa erTrail Re ort of the Trustees for the Year Ended 31 December 2023 srATEMENT OF TRUSTEES. RESPONSIBILITIES - continued In $0 far a5 the trustees are aware: there is no relevant audit information of which the charitable company's auditors are unaware; and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. AUDITORS The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. Approved by order of the board of trustees on...... and signed on it5 behalf by: J D Watson - Trustee Page 8
Re ort of the Inde endent Auditors to the Trustees of The A sle Pa er Trail Qualified oplnlon We have audited the financial statements of The Apsley Paper Trail (the 'charitable company,) for the year ended 31 December 2023 which comprise the statement of Financial Activities, Balance Sheet, the Cash Flow Statement, and notes to the financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). In our opinion, except for the effects of the matter described in the Basis for qualified opinion section the financial statements: give a true and fair view of the state of the charitable company's affairs as at 31 December 2023 and of it5 incoming resources and application of resources, including its income and expenditure. for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for qualified oplnion We were unable to obtain sufficient audit evidence to satisfy ourselves concerning the properties valuation at 31 December 2022 which is included in the comparative results. Consequently we were unable to determine whether any adjustment to these results were necessary. The properties were revalued in 2023 and we believe that the value of the properties is appropriately stated at 31 December 2023. Conclusion5 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 condition5 that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a gotng concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilitie5 of the trustees with respect to going concern are described in the relevant sections of this report. Page 9
Re ort of the Inde endent Auditors to the Trustees of The A sle er Trail Other information The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial Statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing $0, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to 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. As described in the Basis for qualified opinion section of our report, our audit opinion is qualified for the lack of revaluation of the properties and the lack of depreciation of freehold property. Information on fixed assets included in the Trustee's report also omits this infomiation and accordingly we have concluded that the other information is materially misstated forthe same reason. Matters on whl¢h we are required to report by exceptlon We have nothing to report in respect of the following matters where the Charities {Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements. or the charitable company has not kept adequate accounting records; or the financial statements are not in agreement with the accounting records and returns; or we have not received all the information and explanations we require for our audit. Responsibilltles of trustees As explained more fully in the Statement of Trustees, Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statement5 that are free from materlal misstatement, whether due to fraud or error. In preparlng the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disc105ing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable Company or to cease operations, or have no realistic atternative but to do so. Page 10
ort of the Inde endent Auditors to the Trustees of The A sle Pa er Trail Our responsibllltSe5 for the audit of the financial statements We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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 a Report of the Independent Auditors 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 {UKI will always detect a material misstatement when it exists. Misstatements can arlse 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. The extent to which our procedures are capable of detecting irregularities, including fraud Is detailed below: Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impatt on the financial statements, During the engagement team briefingi the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. The following laws and regulations were identified as being of significance to the entity: Those laws and regulations considered to have a dirert effect on the financial statement include UK flnancial reporting standards, Charities Regulations, Company Law and Tax. - Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have material effect on the financial statements include antl-bribery, health and safety legislation and regulations affecting public relations companie5. Audit procedures undertaken in response to the potential risks relating to irregularities Iwhich include fraud and non-compliance with laws and regulattonsl comprised of.. Inquiries of management and those charged with governance as to whether the entity complies with such laws and regulatlons. Enquiries with the same concerning any artual or potential litigation or claims. Inspection of relevant legal correspondence and review of board minutes. - Testingthe appropriateness of journal entries. Performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud, with particular focus on areas affecting the recognition of revenue. A further description of our responsibilities for the audit of the financial statements is located on the Financlal Reporting Council's web51te at www.frc.org.uk/auditorsrespon5ibilities. This description forms part of our Report of the Independent Auditors. Page 11
Re rt of the Inde ndent Auditors to the Trustees of The A sle Pa rTrail Use of our report This report is made solely to the charitable company'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 charitable company'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 a55ume responsibility to anyone other than the charitable company and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Xeinadin Audit Limited EIiEible to act as an auditor in terms of Section 1212 of the Companies Act 2006 8th Floor Becket House 36 Old Jewry London EC2R 8DD Date: ................... Page 12
The A sle erTrail Statement of Financial Activities for the Year Ended 31 December 2023 31.12.23 Total funds 31.12.22 Total funds as restated Unrestricted fund Restricted fund Notes INCOME AND ENDOWMENTS FROM Donations and legacies 33A96 33,496 118,006 Charitable artivities Visitor centre Grants Papertrading Education and training 13,359 27,025 205.197 13,359 27,025 205.197 7,541 50,290 194,715 471 Investment income Other income 411.383 16,251 411,383 16,251 304,767 1,978,764 Total 706,711 706,711 2,654,554 EXPENDITURE ON Raising funds 281,877 2.198 284,075 257,913 Charltable activities Visitor centre Paper trading Education and training 281,582 199,532 68,001 3.517 2,198 880 285,099 201,730 68,881 1,035,488 151,273 56,235 Other 155,504 155,504 196,019 Total 986,496 8,793 995,289 1,696,928 Net gainslllosses} on investments 150,0001 150,000) NEf INCOME/(EXPENDITUREI {329.785) 18,793) (338,578) 957,626 RECONCIUATION OF FUNDS Total funds brought forward 3,598,438 268,116 3,866,554 2.908,928 TOTAL FUNDS CARRIED FORWARD 3,268,653 259,323 3,527,976 3,866,554 The notes form part of these financial statements Page 13
The A sle er Trail Balance Sheet 31 December 2023 31.12.23 Total funds 31.12.22 Total funds as restated Unrestricted Restricted fund fund Notes FIXED ASSETS Intangible assets Tangible assets Heritage assets Investment property 15 2,420 16 477,308 17 532.044 18 2,700,000 2,420 736,631 532,044 2,700,000 3,025 378,247 532,044 2,750,000 259,323 3,711,772 259,323 3,971,095 3,663,316 CURRENT ASSETS Stocks Debtors Cash at bank and in hand 19 20 27A31 175,626 1,046.558 27,431 175,626 1,046,558 26,583 1,461,780 455,248 1,249,615 1,249,615 1,943,611 CREDITORS Amounts falling due within one year 21 (338,701) (338,701) 1374,867) CURREKf ASSErs 910,914 910,914 1,568,744 TOTAL ASSETS LESS CURRENT LIABIUTIES 4,622.686 259,323 4,882,009 5,232,060 CREDITORS Amounts falling due after more than one year 22 11,354,033) 11,354,033) (1,365,506) NET ASSETS 3,268.653 259,323 3,527,976 3,866,554 FUNDS Unrestricted funds Restricted funds 26 3,268,653 259,3Z3 3,598,438 268.116 TOTAL FUNDS 3,527.976 3,866,554 The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023. The notes form part of these financial statements Page 14 continued...
The A le Pa erTrail Balance Sheet- continued 31 December 2023 The members have not deposited notice, pursuantto Section 476 of the Companies Act 2006 requiring an audit of these financial statements. The trustees acknowledge their responsibilities for (a) ensuring that the charitable company keeps accounting record5 that comply with Sections 386 and 387 of the Companies Act 2006 and (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Art 2006 relating to financial statements, so far as applicable to the charitable company. These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011. These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. The ancial statements were approved by the Board of Trustees and authorised for issue on and were signed on its behalf by: J D Watson - Trustee The notes form part of these financial statements Page 15
The A sle Pa er Trail Cash Flow Statement for the Year Ended 31 December 2023 31.12.23 31.12.22 as restated Notes Cash flows from operating activities Cash generated from operations Interest paid 30 1,1)68.888 {90,3791 345,676 {45,051} Net cash provided by operating activities 978,509 300,625 Cash flows from investing activities Purchase of tangible fixed assets Sale of tangible fixed assets Interest received (385,145) {189,837} 138,438 188 38,522 Net cash used in investing activities 1346,623) {51,2111 Cash flows from financing actlvltles Loan repayments in year (39,792) {44,129) Net cash used in financing activities 139,792) {44,129} Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period 592,094 205,285 31 454A64 249,179 Cash and cash equivalents at the end of the reporting period 31 1.046.558 454,464 The notes form part of these financial statements Page 16
TheA le Pa r Trail Notesto the Financlal Statements forthe Year Ended 31 December 2023 ACCOUNTING POLICIES Basls of preparing the flnancial statements The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities- Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting standard applicable in the UK and Republic of Ireland {FRS 1021 {effective l January 2019),, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets. Going concern The trustees believe that sufficient funds are available forthe foreseeable future and that the charity will continue for the next 12 months, hence the accounts have been prepared on the going concern basis. Income All incorne Is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. PaperTradlng Income Paper trading income is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes for the paper that is sold. The income is recognised at the date the paper is transferred to the customer. Grant Income Grant income is recognised on the accruals basis. Other Income Other income is recognised on the accruals basis once the amount can be measured reliably. Rental Income Rental income is recognised on the accruals basis based on which period the rent relates to. Interest Income Interest income is recognised on the accruals ba515. Expenditure Liabilities are recognised as expenditure as soon as there is a legal or construttive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under heading5 that aggregate all cost related to the category. Where costs cannot be dirertly attributed to particular headings they have been allocated to activities on a basis con5i5tent with the use of resources. Allocatlon and apportlonment of costs All costs directly associated with a particular activity are allocated wholly to the applicable activity. Page 17 continued...
The A sle Pa er Trail Notes to the Financial Statements- continued for the Year Ended 31 December 2023 ACCOUNTING POLICIES - contlnued Allocation and apportionment of costs For all other costs, these are apportioned based on the number of hours attributable to each area. These costs a split as follows: Percentage of costs allocated Activity Investment management Visitor centre Grants Paper trading Education and training 2022 2S 40 25 40 25 io 25 io There has been no change is cost allocation. Intangible assets The Charity acquired trademarks in the previous year. They are held at cost. As trading under the names has commenced, the following amortisation policy. Patents and licences - IO% on cost Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each a$5et over its estimated useful life. lrnprovements to leasehold property - 2% on cost Plant and machinery - IO% on cost Fixtures and fittings - 20% on cost Computer equipment - 33% on cost Heritage - not provided Heritage assets Heritage assets are recognised and held at historic cost. Investments Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities. Investment properties are measured at cost in the year of their acquisition and then at fair value each year thereafter in accordance with section 10.48 of the charities SORP {FR5102). Any variation in value year on year is recognised in the SOFA. The investment properties are rented out to tenants. The method used to determine the fair value is to take a multiple of the market rate rent which the trustees view to be reasonable. Page 18 continued.
The A sle Pa er Trail Notes to the Financial Statements- continued for the Year Ended 31 December 2023 AccouKfiNG POLICIES - cont5nued Stocks Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Taxatlon The charity is exempt from corporation tax on its charitable activities. Investment income is also exempt as it is fully reinvested in charitable activities. Fund accounting Unrestricted fund5 can be used in accordance with the charitable objective5 at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes Wlthin the objects of the charity. Restrictions arise when specified by the donor or when fund5 are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. Pension costs and other post-retirement benefits The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. Financial instruments Debtors Short term debtors are measured at transartion price. less any impairment. Creditors Short term trade creditors are measured at the transaction price. Other financial liabilities, includin8 bank loans, are measured initially at fair value, net of transaction cost5, and are measured subsequently at amortised cost Using the effective interest method. Cash In Hand Cash at bank in the balance sheet comprlse cash at banks and in hand and short term deposits with an original maturity date of three months or less. Page 19 continued...
The A sle Pa er Trail Notes to the Financial Statements- continued for the Year Ended 31 December 2023 DONATIONS AND LEGACIES 31.12.23 31.12.22 as restated Donations 33,496 118,006 INVESTMENT INCOME 31.12.23 31.12.22 as restated Rents received Deposit account interest 372,861 38,522 304.579 188 411,383 304,767 INCOME FROM CHARITABLE AcfiviTIES 31.12.23 31.12.22 as restated Activity Visitor centre admissions, etc Grants Paper making Courses Visitor centre Grants Paper trading Education and training 13.359 27.025 205,197 7.541 50,290 194,715 471 245,581 253,017 OTHER INCOME 31.12.23 31.12.22 as restated Rents received Insurance payment receivable 16.251 11,845 1,966,919 16.251 1,978,764 Other income in prior period includes insurance proceeds received following the fire at the visitor centre. The proceeds have no conditions attached to them and thefOre are unrestricted income. A proportion of the proceeds have been netted off with the associated loss on disposals to the extent that the restricted fund is not in deficit at the year end. No further funds are expected from the insurance company. Page 20 continued..
TheA sle Pa rTrail Note5 to the Flnancial Statements- continued for the Year Ended 31 December 2023 RAISING FUNDS Investment management costs 31.12.23 31.12.22 as restated Staff costs Administrative expenses Rates and utilities Property repairs Insurance Bad debts Management fees Depreciation Support costs 74.766 3,985 131,932 37,327 22,077 69,588 5.281 134,695 20,257 12,837 2,450 5,897 5,987 921 7.146 6.842 284,075 257,913 CHARITABLE AcfiviTIES COSTS Support costs15ee note 8) Direct Costs Totals Visitor centre Paper trading Education and training 13,013 31,680 251 272.086 170,050 68.630 285,099 201.730 68A81 44,944 510,766 555,710 SUPPORT COSTS Visitor centre Education & training Finance Other resources expended Visitor centre Papertrading Education and training 90,379 972 271,114 851 67.779 92,810 271,114 67,779 Page 21 continued...
The A sle Pa er Trail Notes to the Financial Statements - continued for the Year Ended 31 December 2023 SUPPORT COSTS - continued Governance costs Other Totals Other resources expended Visitor centre Paper trading Education and training 65,125 155,504 272,086 170,OSO 68,630 169,442 169,442 65,125 666,270 NEf INCOME/IEXPENDITURE) Net income/(expenditurel is stated after charging/lcrediting>: 31.12.23 31.12.22 as restated Depreciation - owned assets Deficit on disposal of fixed assets Patent5 and licences amortisation Insurance proceeds 26,761 23,343 773,245 605 (1,966,919) 605 10. AUDITORS, REMUNERATION 31.12.23 31.12.22 as restated Fees payable to the charity's auditors for the audit of the charity's financial statements Auditors, remuneration for non audit work 4,575 4,250 1,556 Page 22 continued...
The A sle Pa er Trail Notes to the Financial Statements- continued forthe Year Ended 31 December 2023 11. TRUSTEES. REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022. Trustees, expenses There were no trustees, expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022. 12. STAFF COSTS 31.12.23 31.12.22 as restated Wages and salaries Social security Costs other pension costs 274,185 17,428 7,452 254,324 17,503 6,525 299,065 278,352 The average monthly number of employees during the year wa5 a5 follows: 31.12.23 31.12.22 as restated Management Finance Support staff 10 10 The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: 31.12.23 31.12.22 as restated £60,001- £70,000 The total amount of employee benefits (including employer pension contributions} received by kev management personnel for their services to the charity was £150,418 {2022: £135,486}. Page 23 continued...
The A sle er Trail Note5 to the Flnancial Statements - continued forthe Year Ended 31 December 2023 13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL AcrivmES Unrestricted Restrirted fund fund Total funds as restated INCOME AND ENDOWMENTS FROM Donations and legacies 118,006 118,006 Charitsble activities Visitor centre Grants Paper trading Education and training 7,541 50,290 194,715 7.541 50,290 194,715 471 471 Investment income Other income 304,767 1,978,764 304,767 1,978.764 Total 2,654,083 471 2,654,554 EXPENDITURE ON Raising funds 255,755 2,IS8 257,913 Charitsble artivities Visitor centre Paper trading Education and training 258,788 149,115 54,883 776,700 2,158 1,352 1,035,488 151,273 56,235 Other 196,019 196,019 Total 914,560 782,368 1,696,928 NEf INCOMEI(EXPENDrruRE) 1,739,523 (781,897) 957,626 RECONCIUATION OF FUNDS Total funds brought forward 1,858,915 1.050,013 2,908,928 TOTAL FUNDS CARRIED FORWARD 3,598,438 268,116 3,866,554 Page 24 continued...
The A sle Pa er Trail Notes to the Financial Statements - continued forthe Year Ended 31 December 2023 14. PRIOR YEAR ADJUSTMENT A prior year adjustment has been made to the presentation of properties. The property previously classified a5 freehold property of £1,250,000 has now been moved and shown as an investment property with the change having no effect on the Statement of Financial Activities. 15. IKfANGIBLE FIXED ASSEfS Patents and licences COST At l January 2023 and 31 December 2023 6,050 AMORTISATION At l January 2023 Charge for year 3,025 605 At 31 December 2023 3,630 NET BOOK VALUE At 31 December 2023 2,420 At 31 December 2022 3,025 16. TANGIBLE FIXED ASSETS Improvements to property Fixtures and fittings Plant and machinery Computer equipment Totals COST At l January 2023 Additions 386.171 375,374 243.193 9.771 200 5.565 635,129 385.145 At 31 December 2023 761.545 252,964 200 5,565 1,020,274 DEPRECIATION At l January 2023 Charge for year 118,055 8,793 133.142 17,928 120 40 5,565 256,882 26.761 At 31 December 2023 I268 151.070 160 5,565 283,643 NET BOOK VALUE At 31 December 2023 634,697 lo194 40 736,631 At 31 December 2022 268,116 110,051 80 378,247 Page 25 continued..-
The A sle Pa er Trail Notes to the Financial Statements - continued for the Year Ended 31 December 2023 17. HERITAGE ASSETS Total MARKEf VALUE At l January 2023 and 31 December 2023 532,044 NEf BOOK VALUE At 31 December 2023 532,044 At 31 December 2022 532,044 The charity maintains a listing of the heritage assets held, further details of the heritage assets can be found in the public benefit section of the Report of the Trustees. 18. INVESTMENT PROPERTY FAIR VALUE At l January 2023 Impairments 2,750,000 {50,000) At 31 December 2023 2,700,000 BOOKVALUE At 31 December 2023 2,700,000 At 31 December 2022 2,750,1)00 The investment property balance comprises the freehold properties known as JDEC Centre and Ap51ey Mills Cottage, which are let entirely for rental income. Fair value at 31 December 2023 is represented by: Valuation in 2023 Cost (50,000) 2,750.IXK) 2,700,000 The property was revalued on 24th June 2024 by an independent third party at a value of £2,700,LXXI. The Trustees believe the value at 31st December 2023 was the same and therefore the investment property has been valued at £2,700,000. The historic cost of the JDEC Centre comprises a gift of the freehold to the Charity on 14 September 2000 plu5 £375,504 of subsequent capital expenditure on the building5. Page 26 continued...
TheA le er Trail Notes to the Financial Statements- continued for the Year Ended 31 December 2023 19. STOCKS 31.12.23 31.12.22 as restated Finished goods 27.431 26,583 20. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.12.23 31.12.22 as restated Trade debtors Other debtors VAT Prepayments and accrued intome Prepayments 30,333 21,182 1,355,000 28,791 60,983 14.765 69,545 56,807 175.626 1,461,780 Included within other debtors is £nil {2022: £1,355,000) in regards to the insurance proceeds. 21. CREDITORS: AMOUNTS FALLING DUE wrrHIN ONE YEAR 31.12.23 31.12.22 as restated Bank loans and overdrafts (see note 23} Trade creditors social security and othertaxes Rental deposits Pension Accruals and deferred income Accrued expenses 43.990 140.913 5,735 37,888 1,676 50,078 58.421 73,090 186,061 5,485 40,340 1,507 50.077 18,307 338,701 374,867 Page 27 continued.
The A sle Pa er Trail Notes to the Financial Statements - continued forthe Year Ended 31 December 2023 22. CREDITORS: AMOUNTS FALLING DUE AFfER MORE THAN ONE YEAR 31.12.23 31.12.22 as restated Bank loans (see note 23} 1,354,033 1,365.506 The average interest rate on loans due for repayment in over 5 years is 6.95%. The loans are due for repayment in 2030. Two of the loans are payable by instalments with one being due in full at the redemption date. 23. LOANS An analysis of the maturity of loans is given below.. 31.12.23 31.12.22 as restated Amounts falling due within one year on demand: Bank overdrafts Bank loan5 43,990 72,306 43,990 73,090 Amounts falling between one and two years., Bank loans- 1-2 years 46,184 73,661 Amounts falling due between two and five years: Bank loans- 2-5 years 159,729 229,824 Amounts falling due in more than five years: Repayable by in5talments: Bank loan5 more S yr by instalments Repayable otherwise than by instalments: Bank loans more 5 yrs non-instalments 946,611 982,030 201,509 79,991 Page 28 continued...
TheA le Pa r Trail Notes to the Financial Ststements - continued for the Year Ended 31 December 2023 24. LEASING AGREEMENTS Minimum lease payments under non-cancellable operating leases fall due as follows: 31.12.23 31.12.22 as restated Within one year Between one and five years 55.618 166,854 41,398 175,942 222,472 217,340 The Apsley Paper Trail has just over 130 year5 left on its leasehold (Frogmore Paper Mill}, which has an annual rental of £55,618 and reviewable every 5 years with the next review due in 2027. The rent charge has been undercharged since April 2022 for which an accrual of £16,310 has been added to the accounts. 25. SECURED DEBTS The following secured debts are included within creditors: 31.12.23 31.12.22 as restated Bank loan5 1,398,023 1,437,812 Security is held by a secured charge over the properties held bythe charity. 26. MOVEMENT IN FUNDS Net movement in funds At 31.12.23 At 1.1.23 Unrestricted funds General fund 3,598,438 (329,785) 3,268,653 Restrlcted fvnds General restricted fund 268,116 (8,793) 259,323 TOTAL FUNDS 3,866,554 (338,578} 3.527,976 Page 29 continued...
The A sle Pa er Trail Notes to the Financial Statements- continued for the Year Ended 31 December 2023 26. MOVEMENT IN FUNDS - continued Net movement in funds, included in the above are as follows: Incoming resources Resources expended Gains and Movement 105ses in funds Unrestricted funds General fund 706,711 1986,496) (50,000) {329,785) Restrirted funds General restritted fund (8.793) (8,793) TOTAL FUNDS 706,711 1995,289} (50,000) 1338,5781 Comparatives for movement in funds Net movement in funds At 31.12.22 At 1.1.22 Unrestricted funds General fund 1,858,915 1,739,523 3,598,438 Restricted funds General restricted fund 1,050,013 1781,897) 268,116 TOTAL FUNDS 2,908,928 957,626 3,866,554 Comparative net movement in funds, included in the above are as follows: Incoming resources Resources expended Movement in funds Unrestricted funds General fund 2,654,083 1914,5601 1,739,523 Restricted funds General restricted fund 471 1782,368) {781,8971 TOTAL FUNDS 2,654,554 (1,696,928) 957,626 Page 30 continued...
TheA le Pa rTrail Notes to the Financial Statements- continued for the Year Ended 31 December 2023 27. CONTINGENT LIABILITIES A grant contract dated 3 April 2007 for a term of 25 years from the Trustees of the National Heritage Memorial Fund, has been secured by a legal charge dated 16 October 2007 on the Frogmore Paper Mill lease. 28. RELATED PARTY DISCLOSURES The only related party transactions during the year were donations from the trustees to the charity and the salary paid to the key management personnel. 29. ULTIMATE CONTROLLING PARTY The trustees believe there is no ultimate controlling party. 30. RECONCILIATION OF NET (EXPENDITURE)IINCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 31.12.23 31.12.22 as restated Net (expenditure)lincome for the reportlng period las per the Statement of Financial Activities} Adjustments for: Depreciation charges Losses on investments Loss on disposal of fixed assets Interest received Interest paid Increase in stocks Decrease/lincreasel in debtors Decrease in creditors 1338.578) 957,626 27,369 50,000 23,948 773,245 (188) 45,051 {20,179} {1,316,150) {117,677} 138,522) 90,379 (848) 1,286.154 (7,066) Net cash provlded by operatlons 1,068,888 345,676 Page 31 continued...
TheA le Pa er Trail Notes to the Financial Statements- continued forthe Year Ended 31 December 2023 31. ANALYSIS OF CASH AND CASH EQUIVALENTS 31.12.23 31.12.22 as restated Cash in hand Notice deposits (less than 3 months} Overdrafts included in bank loans and overdrafts falling due within one year 1,099 1,045.459 363 454,885 {7841 Total cash and cash equivalents 1,046,558 454,464 32. ANALYS15 OF CHANGES IN NEf DEBT At 1.1.23 Cash flow At 31.12.23 Net cash Cash at bank and in hand Bank overdraft 455,248 {784) 591,310 1,046,558 454,464 592,094 1,046,558 Debt Debts falling due within l year Debts falling due after l year (72,306) 11,365,506) 28,316 11,473 (43,990) {1,354,033) (1,437,812) 39,789 {1,398,023) Total (983,348) 631.883 {351,465> Page 32
The A sle er Trail Detailed Statement of Financial Activities forthe Year Ended 31 December 2023 31.12.23 31.12.22 as restated INCOME AND ENDOWMENTS Donatlons and legacles Donations 33,496 118,006 Investment Income Rents received Deposit account interest 372,861 38,522 304,579 188 411,383 304,767 Charitable artivities Visitor centre admissions, etc Paper making Courses Grants 13,359 205,197 7,541 194,715 471 50,290 27,025 245,581 253,017 Other Income Rents received Insurance payment receivable 16,251 11,845 1,966,919 16,251 1,978,764 Total Incoming resources 706,711 2,654,554 EXPENDITURE Investment management costs Wages Social security Pensions Administrative expenses Rates and utilities Property repairs Insurance Bad debts Management fee5 Carried forward 68,546 4,357 1,863 3,985 131,932 37,327 22,077 63,581 4,376 1,631 5,281 134,695 20,257 12,837 2,450 5,897 251,005 7,146 277,233 This page does not form part of the statutory financial statements Page 33
The A sle Pa erTrail Detailed Statement of Financial Activities forthe Year Ended 310ecember 2023 31.12.23 31.12.22 as restated Investment management costs Brought forward Patents and linCeS Improvements to property Plant and machinery Fixtures and fittings 277,233 151 2,198 4A83 io 251,005 151 2,158 3,668 io 284.075 256.992 Charitable actlvitles Sundries 51,656 Support costs Flnance Bank charges Mortgage 2,431 90,379 3,683 45,051 92,810 48,734 Vlsltor centre Wages Social security Pensions Rent, rates and water Insurance Light and heat Telephone Postage and statlDnery Svndries Repairs and maintenance Advertisement Patents and licences Improvements to property Plant and machinery Fixtures and fittings Loss on sale of tangible fixed assets 109,674 6,971 2,981 19,147 35,324 19.963 989 935 4,306 59.723 154 242 3.517 7,172 16 101,730 7,001 2,610 19,571 20,539 19,621 2,416 816 4,313 32,410 904 242 3,452 5,869 16 773,245 271.114 994,755 Education & training Wages Carried forward 27,419 27,419 25,432 25.432 This page does not form part of the statutory financial statements Page 34
TheA sle Pa er Trail Detailed Statement of Financial Activities for the Year Ended 31 December 2023 31.12.23 31.12.22 as restated Education & trainin£ Brought forward Social security Pension5 Rent, rate5 and water Insurance Light and heat Telephone Postage and stationery Repairs and maintenance Advertisement Sundries Patents and licences Improvements to property Plant and machinery Fixtures and fittings 27,419 1.743 745 4,787 8.831 4,991 247 234 14,931 39 1,074 61 880 1,793 25.432 1,750 653 4,893 5.135 4.905 604 204 8,103 226 1,078 61 863 1,467 67,779 55,378 Other Wages Social security Pensions Rent, rates and water Insurance light and heat Telephone 68,546 4,357 1,863 11,967 22,077 12.477 618 63,581 4,376 1,631 12,232 12,837 12,263 I,sio k 11 Postage and stationery Sundries Repairs and maintenance Advertisement Patents and licence5 Improvements to property Plant and machinery Fixtures and fittings 584 2.686 37,328 97 151 2.198 4,483 io 510 2,696 20,257 565 151 2,158 3,668 io 169.442 138,445 Governance costs Auditors, remuneration Auditors, remuneration for non audit work Carried forward 4,575 4,250 1,556 5,806 7.619 This page does not form part of the statutory financial statements Page 35
The A sle Pa er Trail Detailed Statement of Financial Activities forthe Year Ended 31 December 2023 31.12,23 31.12.22 as restated Governance costs Brought forward Consultancy fee5 Legal fees 7,619 49,725 7,781 5,806 57,575 87,587 65,125 150,968 Total resources expended 995,289 1,696,928 Net (expenditure)lincome 1288,578) 957,626 This page does not form part of the statutory financial statements Page 36