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2021-03-31-accounts

REGISTERED COMPANY NUMBER: 04004593 (England and Wales) REGISTERED CHARITY NUMBER: 1082128

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

FOR

YMDDIRIEDOLAETH PENLLERGARE THE PENLLERGARE TRUST

Gerald Thomas Chartered Accountants & Statutory Auditor 3 New Mill Court Swansea Enterprise Park Swansea SA7 9FG

YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Page
Report of the Trustees 1 to 11
Independent Auditor's Report 12 to 15
Statement of Financial Activities 16
Balance Sheet 17 to 18
Statement of Cash Flows 19 to 20
Notes to the Financial Statements 21 to 37

YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

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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 March 2021. 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 (FRS 102) (effective 1 January 2019).

The report is also prepared in accordance with the small company regime (Section 419(2) of the Companies Act 2006).

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company Number

04004593 (England and Wales)

Registered Charity Number 1082128

Registered Office
Tredegar Fawr
Llangyfelach
Swansea
SA7 9FG
Trustees
P Baker Chair
H Thomas Treasurer
B Richards
 Secretary
J Childs
W Fitzgerald
C Richards
L Howe
R Butt
C O'Brien
K Napieralla OBE (Appointed March 2021)
Trustee Emeritus
H T Moggridge
Company Secretary
B Richards
Observers and Advisors
B Thomas
Auditors
Gerald Thomas
Chartered Accountants & Statutory Auditor
3 New Mill Court
Swansea Enterprise Park
Swansea
SA7 9FG

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YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

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REFERENCE AND ADMINISTRATIVE DETAILS - continued

Solicitors

Edward Harris Solicitors Tredegar Fawr Llangyfelach Swansea SA5 7LS

Bankers CAF Bank Ltd 25 Kings Hill Avenue West Malling Kent ME19 4JQ

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YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Chair’s Foreword

It gives me great pleasure, and not a little relief to introduce the Annual Report of The Trustees of Penllergare Trust for the year ended 31 March 2021.

I say this in all sincerity as this has been the most challenging year faced by the Penllergare Trust, indeed the overwhelming priority has been the very survival of the Trust. The restrictions which resulted from the Covid 19 pandemic are unparalleled. However, Penllergare Valley Woods has remained open during lockdown, so visitors continue to enjoy the experiences and benefits that this unique and beautiful place has to offer, albeit in accordance with Government guidelines.

This year has been so very different in so many ways and the Annual Report reflects this. Much of the work of our amazing volunteers has, of necessity been suspended. However, if not physically engaged, (although some have continued to come to help with general maintenance, litter picking and the like) they continue to support the Trust and Penllergare Valley Woods.

Regrettably, we have been forced to close our Coffee Shop for significant periods of time, and the overwhelming majority of fund-raising events have ceased. Although the car park has remained open for the majority of the time this has been as a “public service” to alleviate the pressure of parking in Mansion Gardens. This has had an extremely serious effect on the finances of the Trust and it isn’t an exaggeration to say that the long-term financial viability of the Trust was threatened. However, through the emergency grant assistance received from Welsh Government, NHLF and WCVA, we have been able to meet our financial responsibilities.

The effect of this epidemic on staff has been profound, both in terms of employment and unfortunately, on their health. For significant periods of time the majority of staff have been furloughed. We are grateful that those who have been required to work, whether in the Woods or at home have continued to do so and have done an amazing job but we also feel for those who aren’t able to, for whatever reason.

I would also pay tribute to the work and commitment of my fellow Trustees, all of whom are volunteers themselves. Throughout the majority of lockdown, meetings have been held virtually, an experience in itself!! Obviously, this was far from ideal but served to ensure continuity of the activities of the Board and business of the Trust.

Despite these pressures, the Trust has been able to continue with our plans for the Phase 2 Walled Garden Development, funded by the National Lottery Heritage Fund and with our plans for the new Skills Centre with adjoining horticultural training centre funded by the Regional Development Fund. The Trust is also working with existing and potential partners, both local and nationally recognised, in exploring a number of exciting initiatives and projects. These projects, particularly in the areas of education and biodiversity will enhance the reputation and status of Penllergare Valley Woods and will ensure we remain one of THE Regional and National attractions.

I would once again express our grateful thanks to the Friends of Penllergare Valley Woods for their support throughout the year. Whilst their fundraising efforts and their programme of events have been seriously curtailed, they have still been able to contribute a significant amount of money to the redevelopment of the Trust’s website. Throughout the year they have been able to keep in touch with members through their wonderful “Friends in Lockdown” and keep the 200 Club going, both of which have proved invaluable.

I would thank our donors and grant givers for their contributions and particularly, the National Lottery Heritage Fund which has been so supportive and understanding during the year.

Please remember that the Penllergare Trust is a small independent charity. Although we continue to have a close and good relationship with the City and County of Swansea through our Memorandum of Understanding, we receive no financial assistance from them.

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YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Chairman’s foreword – continued

I can only repeat that the Trust’s biggest challenge is to ensure that we are financially sustainable and the Covid restrictions have made this even more of a challenge. Our staffing and financial resources are limited, so we have to balance carefully what we would like to do with what we can afford. We need to raise over £130,000 of income each year to ensure that the woods can be maintained to provide a wonderful and safe environment for our visitors. Every small donation counts towards this target, and we are grateful to all our visitors and supporters for their generous and continued financial support.

Paul Baker - Chair

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YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

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STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Penllergare Trust (the Charity) is controlled by its Memorandum and Articles of Association, and is constituted as a company limited by guarantee, as defined by the Companies Act 2006.

Recruitment and Appointment of New Trustees

Trustees are appointed by existing members of the Board in furtherance of the objects of the Trust, in a number of ways, including personal recommendation and use of voluntary organisation resources, such as SCVS and WCVA.

Notwithstanding the pandemic, the Board welcomed a new Trustee in March 2021 who will bring an important background in education, as noted below.

Induction and Training of New Trustees

New Trustees receive training and induction through a variety of means, including one to one sessions with the Chairman, Secretary, Treasurer and other Trustees/staff as appropriate; being supplied with relevant reading materials, briefing documents and guidance as well as regular briefings and formal Board training sessions. Skills shortages on the Board are also kept under constant review and recruitment of new Trustees is targeted accordingly. A skills audit was implemented during April 2021, the outcome of which will be followed up in our next Annual Report.

Risk Management

In compliance with the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice, the major risks to which the Charity is exposed, as identified by Trustees, have been reviewed and systems have been established to manage those risks, including reviews at Board Meetings.

Management

Day to day management of the Trust is undertaken by our General Manager, Lee Turner, who is assisted by a small team of operational staff , most of whom are part-time.

OBJECTIVES AND ACTIVITIES

Objectives and Aims

Ymddiriedolaeth Penllergare - the Penllergare Trust - is an independent registered charity (number 1082128), and a company limited by guarantee not having share capital (number 04004593).

This is our 21[st] report and it covers the 12-month period ending 31 March 2021.

The Charity was established in 2000 for the benefit of the public at Penllergare and its setting in Swansea, to further the protection, conservation, restoration and maintenance of the cultural landscape of Penllergare; enhance the knowledge and appreciation of Penllergare and promote the protection and conservation of wildlife.

ACHIEVEMENT AND PERFORMANCE

Overview

The Covid-19 pandemic severely constrained activities during this period with 9 of our 11 employees having to be placed on the Government’s furlough scheme.

Notwithstanding, the Board of Trustees met 9 times during the year via Zoom on an agreed bi-monthly and monthly basis, as deemed appropriate by the Chair, to discuss progress with the Trust’s financial position during the pandemic, the National Lottery Heritage Fund (NLHF) Phase 2 Project and to review any other urgent business.

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YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

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ACHIEVEMENT AND PERFORMANCE

Overview - continued

In late March 2021 the Board welcomed Karl Napieralla as a Trustee, bringing the total to ten Trustee Board members. Karl will bring much needed knowledge, expertise and enthusiasm in the field of education and will strengthen the Board as the Trust prepares to move into a new era of its development.

Although the pandemic halted a number of operations and developments at Penllergare, the Phase 2 Project design team was able to continue developing the project with Trustees and Staff via a number of Zoom meetings.

The Trust also kept volunteers and stakeholders abreast of developments through a variety of social media, Zoom meetings and posted publications.

During the year, and with the support of the National Lottery Heritage Fund and our NHLF monitor, the Trust and its consultant design team undertook work to review the size and scope of the project in order to improve its overall sustainability and thus ensure the future of the Penllergare Trust. We were delighted that the NLHF, despite being under pressure to support many of its existing grantees through the pandemic, was able to agree a grant uplift of £250,000 to support our reworked Project and Business Plan. The sum of £250,000 did not fully meet our identified needs, so a considerable amount of value engineering took place to reduce proposed project costs and to allow for greater volunteer inclusion. In conjunction with this, additional fundraising and requests for support were undertaken to help bridge any gaps.

Two separate planning permission applications were submitted to the Local Authority in November 2020, covering the Walled Garden, the Orchard and its environs and the Visitor Centre and Car Park. Both applications were still undetermined by the end of the period covered by this report.

The Trustees have once again been indebted to the tremendous support and contribution they have received from volunteers as detailed below.

Volunteers

Due to the pandemic, recruitment and induction of new volunteers over the past year has been very much on hold but we are confident that when restrictions are lifted, we will still have a pool of c.100 regular volunteers in both the woodland & garden areas and the coffee shop to call on, much the same as the previous year. Our outreach programmes to local businesses and other organisations have also been put on hold, although we are, again, confident that there are a number of individuals who will be prepared to return.

In total , an average of 13 volunteers supported us throughout the year , compared with 106 the previous year. This was due, of course, to the lockdowns throughout that period which severely restricted activity in the Woods. Total volunteering hours decreased from 14,525 to 3,561 with the estimated financial benefit of those hours equated to £77,850 for the year, compared to £206,200 the previous year. This includes Trustees working from home; sub groups meeting regularly via Zoom, coffee shop volunteers opening as allowed within government restrictions and estate volunteers carrying out essential maintenance.

National Awards

Green Flag – we were again successful in achieving Green Flag status.

Works and Landscaping

This was severely impacted by the pandemic.

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YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

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ACHIEVEMENT AND PERFORMANCE

Visitors, Access and Biodiversity

As a result of the pandemic, visitor footfall dropped dramatically during this period, especially as our Coffee Shop had to remain closed for most of the time. Visitors still came for exercise under government guidelines and Trustees and staff maintained a health and safety “watching brief” as best as they were able to ensure walker safety.

The Biodiversity Advisory Forum met virtually twice during the year with a further three information bulletins also circulated. The Forum also produced a Climate Change Mitigation and Adaptation report, submitted to the Board in March 2021.

Partnerships & The Champions Club.

Due to the pandemic, we were not able to develop this area during the period covered by this report.

The Friends of Penllergare

For the Friends of Penllergare (the membership part of the Trust), currently with 448 members, compared with 452 the previous year, the last year presented an unexpected challenge. Their 2020 programme of meetings and events was cancelled due to Covid19 thereby substantially reducing all fundraising activities to benefit the Trust. However, the 200 Club continued throughout the pandemic bringing in a pleasing amount of £1,800, thanks to the dedication and hard work of its organisers.

To keep the membership informed and engaged, a monthly online, illustrated publication, Friends in Lockdown, was introduced , which was not only well received but also generated further contributions of articles and photos from members, and therefore kept up the momentum of the Group throughout a very difficult time.

Social Media and Website

Facebook continues to be the main channel of communication, with nearly 11,500 “likes" in the last 12 months, up by over 2,000 year over year. We currently have just over 12,000 followers showing a Facebook average review rating of 4.5 stars out of 5.

Our Twitter followers also currently stand at 1,195 and we currently showing as number 7 out of 117 “things to do” in Swansea on Tripadvisor, with many positive comments giving us a Certificate of Excellence for the 7[th] year running with a rating of 4.5 stars out of 5, the same as the previous year.

We are delighted to note that Penllergare Valley Woods is still in the Tripadvisor Travellers Choice Awards Top 10% of places to visit in the world, as it had been the previous year.

FINANCIAL REVIEW

General

The Trust began the financial year facing the impact of the national lockdown, with huge uncertainties ahead. It was clear that we were facing a potentially catastrophic loss of income, and with only a limited balance in our unrestricted reserves, our financial future was extremely insecure. There was a real fear that the Trust could run out of funds during the year and would have to close. We immediately set about trying to secure Covid business support and other grants, as well as launching an appeal for donations, in order to replace the income we were expecting to lose. The Board’s prime target was financial survival by the year end, but given that it could have been almost equally catastrophic to end the year with virtually nothing left in our unrestricted reserves, our secondary target was to try to minimise the amount we would have to use up from our own reserves to survive.

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YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

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FINANCIAL REVIEW

General - continued

Ultimately, due to the National and Welsh Governments’ business support grants and schemes, and to the generous assistance of other grant providers and our own supporters, we were able to secure sufficient grant and other funding to help us survive without having to use our own reserves. We are able to report a surplus on unrestricted reserves for the year of just under £38,000. Whilst this is a pleasing outcome which is much better than was expected, it is clear that the adverse impact of the Covid pandemic remains a continuing challenge, so this surplus is likely to be needed to meet the ongoing costs and loss of income for the coming year and possibly beyond.

The reported surplus on our restricted reserves is £113,376. However, this has largely resulted from the requirement to comply with the Charity SORP (Statement of Recommended Practice) in terms of recognition of income. This also happened last year as the Trust recognised almost all of its grant income from NLHF towards the Phase 2 Project. In 2020/21, the Trust has been required similarly to include the uplift in the Phase 2 NLHF grant of £250,000 even though most of the associated expenditure has not yet been incurred. As a result, the total restricted income reported for the year is £363,160. This reported increase in funds will be used over the next two years to meet future expenditure on the Phase 2 project.

Our Income

Due to the pandemic, the Trust was unable to generate any income from fundraising events and activities and had to rely entirely on grants and donation income, together with some trading income from the Coffee Shop and Car Park, monies generated by our Archimedes Screw and Turbine, and income from Friends’ subscriptions and the 200 Club.

During the year, the Coffee Shop was closed for approximately half of the year and when it was able to open, had to operate on a very limited basis. We were able to open the Car Park for all but two and a half months of the year, but visitor numbers and revenue were reduced significantly during several months when the lockdown restrictions required people to “stay local” or drive only short distances.

Nevertheless, Car Park income held up well during the year as we implemented an increase in charges for the Car Park during the year as part of our survival plan. However, the Coffee Shop turnover was very badly hit by the lockdown restrictions and its surplus for the year (£7,000) was around one-third of what would have been expected.

This small surplus was achieved mainly due to the reduced level of VAT to 5% for hospitality, but also to a number of grants that were provided including Furlough, Eat Out to Help Out and a grant towards the additional costs of Covid from the National Heritage Lottery Fund. It is pleasing that our customers and visitors did return in good numbers once we were able to re-open the Coffee Shop and we are extremely grateful for their continuing support. We remain very grateful to the Coffee Shop staff for their efforts to generate this income in particularly difficult circumstances this year, and with virtually no volunteer support possible.

The grants we received to provide support to the Trust to meet the costs of the pandemic during the year were as follows:

Source £
GovernmentFurloughScheme 41,190
NLHF EmergencyFunding towardsfixed costs 18,300
NLHFCovidRecoveryFund 9,600
WCVACharityResilienceFund 18,608
WelshGovt (RatesReliefGrantvia City and County ofSwansea) 20,000
Eat Out toHelp Out Scheme 3,000
TOTAL 110,698

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YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

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FINANCIAL REVIEW

Our Income - continued

In addition, the reduction of VAT to 5% for the hospitality sector benefitted the Trust by £7,200.

Without this financial support, the Trust would not have survived. We are extremely grateful in particular to the National Lottery Heritage Fund and the Welsh Council for Voluntary Action for their generous and timely grant assistance.

The appeal launched by the Trust to raise money from our supporters to help us through the pandemic reached a total of £7,800 and again we are extremely grateful for all the donations.

Whilst the Phase 2 project was largely put on hold during the year, the development work for the Phase 2 project continued, supported by grant payments from the National Lottery Heritage Fund. We also received a substantial grant of over £17,000 from the Post Code Lottery towards the Heritage Orchard development, as well as a number of smaller grants towards our work. We extend our thanks to Persimmon Homes, the Welsh Church Acts Fund, Oakdale Trust, DS Smith Trust and the Leach Charitable Trust for their generosity.

The Friends of Penllergare Valley Woods continue to contribute valuable financial support to the Trust, both through subscriptions, donations and from fund-raising schemes. Whilst their fundraising events were inevitably curtailed during the year, the Friends’ 200 Club scheme again attracted considerable support, raising over £1,800 in the year. The Trust looks forward to the Friends being able to restart their successful fundraising events before too long.

Our Expenditure

The total expenditure was similar to the previous year; some categories of expenditure were down due to the impacts of the pandemic on the Trust’s activities, however this was offset by higher project expenditure on Phase 2. Nine of our eleven staff were furloughed for all or part of the year, which meant that activity in the woods had to be severely curtailed.

The Trust spent a total of £90,091 (2020 - £145,900) on charitable activities from its unrestricted reserves during the year, i.e. on the day to day running costs of the woods. This excludes the direct running costs of our commercial and fundraising activities schemes (Coffee Shop, Car Park, Turbine etc)., on which a total of £81,693 was spent (2020 - £104,300). A further £245,795 was spent on restricted expenditure on projects or schemes for which specific funding had been received. This was mainly on the continuing development and design costs of the Phase 2 project.

Commentary on Balance Sheet

The Trust’s balance sheet shows that the Trust has capital assets at the Balance Sheet date valued at just over £1.6 million. These assets are primarily a result of capital expenditure from our many projects over the years, particularly the NLHF Parks for People Project. These assets include major items such as the Coffee Shop and Car Park, Observatory, Llewelyn Bridge, Lakeworks and Turbine, as well as the many smaller assets we use on a day to day basis, including woodland equipment, vehicles, office equipment, coffee shop equipment etc. Most of the major assets could not be sold and have been capitalised to reflect that they will be providing a benefit over the long term, rather than for just one year.

The debtors shown in the balance sheet have increased by around £115,000, which reflects primarily the uplift on the NLHF Phase 2 grant, less amounts received during the year.

The balances shown as cash at bank have increased from £253,740 to £281,052.

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YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2020

FINANCIAL REVIEW

Commentary on Balance Sheet - continued

Deferred income has reduced compared to last year, the main movements being in relation to the NHLF Phase 2 grant.

The Trust’s unrestricted reserves have increased during the year by £37,922 to £99,226. These represent funds which are available to the Trust to use for its day to day expenditure, with no restrictions on how the money is spent, other than on the Trust’s charitable purposes. These funds include funds generated by income generating schemes, donations, the Friends’ membership fees and fundraising events and are used to meet the general running costs of the Trust, such as operational staffing costs, general woodland maintenance, vehicle running costs, insurance and audit costs.

The Trust’s restricted reserves are those funds which can only be used for restricted purposes, such as specific grant funded projects. These have increased in value during the year from £2,961,791 to £3,075,167.

The restricted reserves can be summarised as follows:

icted reserves can be summarised as follows:
£
NLHF Phase 2 Project funds 1,561,278
RDP Development funds 62,669
Minor ongoing projects 64,166
Parks for People & other 1,413,684
projects
Fair value reserve (26,630)
Total Restricted Reserves 3,075,167

Reserves Policy

The Trust maintains several specific reserves for particular projects, primarily those funded from external restricted-purpose grants.

Unrestricted reserves are used for monies which have no restriction on their use and include funds generated by income generating schemes, donations, the Friends’ membership fees and fundraising events. These reserves are used to meet the general running costs of the Trust, such as general woodland maintenance, vehicle running costs, insurance and audit costs. The Trust had set itself a target to increase its reserve balances to the equivalent of one year’s running costs before the end of the Parks for People Project.

The Trust’s unrestricted reserve balance is £99,226 at the year end. However the increase is likely to be temporary in nature due to the ongoing impact of the pandemic and to short-term financial pressures arising from the delay to the Phase 2 project. The Trust has developed a sound business case for the next 5 years, as part of which we will be aiming to restore the unrestricted reserves to the target.

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YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees (who are also the directors of Ymddiriedolaeth Penllergare - The Penllergare trust for the purposes of company law) are responsible for preparing the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

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 resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

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.

In so far as the trustees are aware:

AUDITORS

The auditors, Gerald Thomas, have agreed to offer themselves for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on 17 December 2021 and signed on its behalf by:

P Baker Chairman

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF YMDDIRIEDOLAETH PENLLERGARE THE PENLLERGARE TRUST (REGISTERED NUMBER: 040044593)

Opinion

We have audited the financial statements of Ymddiriedolaeth Penllergare - The Penllergare Trust (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 charitable company'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 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 so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF YMDDIRIEDOLAETH PENLLERGARE THE PENLLERGARE TRUST (REGISTERED NUMBER: 040044593)

Matters on which we are required to report by exception

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:

Responsibilities 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 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 charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities 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 (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.

Detecting Irregularities

The objectives of our audit in relation to fraud are as follows:

However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF YMDDIRIEDOLAETH PENLLERGARE THE PENLLERGARE TRUST (REGISTERED NUMBER: 040044593)

Auditor's approach to assessing the risks of material mis-statement due to irregularities, including fraud

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (FRS 102, Charity SORP and Companies Act 2006) and the relevant tax compliance regulations in the UK.

We assessed the risks of material misstatement in respect of fraud and considered the extent to which noncompliance with laws and regulations might have a material effect on the financial statements.

Audit procedures designed to respond to the risks of non-compliance with laws and regulations

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above. We made enquiries of management to understand how the charity is complying with those frameworks.

Audit procedures performed by the engagement team also included a review of the financial statements disclosures to underlying supporting documentation.

Audit procedures designed to respond to the risks of fraud

We assessed the susceptibility of the company's financial statements to material mis-statement, including how fraud might occur by meeting with management to understand where they considered there was susceptibility to fraud.

Based on the results of our risk assessment we designed our audit procedures to identify and to address material misstatements in relation to fraud.

The COVID-19 working environment increases the inherent risk of fraud. Our audit procedures have been tailored to address this risk, with areas of audit focus identified as:

As well as adopting an attitude of professional scepticism, we have obtained information for use in identifying the risk of fraud when performing risk assessment procedures, and performed the following procedures in light of the risk of fraud:

Management override of controls

We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach. The audit engagement team performed journal entry testing using a risk-based approach and evaluating whether there was evidence of bias, with a focus on any journals indicating large or unusual transactions based on our understanding of the charity.

Page 14

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF YMDDIRIEDOLAETH PENLLERGARE THE PENLLERGARE TRUST (REGISTERED NUMBER: 040044593)

Considerations around likelihood of detection

However, owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material mis-statements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

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 assume 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.

For and on behalf of Gerald Thomas Chartered Accountants and Statutory Auditor Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 3 New Mill Court Swansea Enterprise Park Swansea SA7 9FG

Date: 17 December 2021

Page 15

YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

2021 2020
Unrestricted Restricted Total Total
funds funds funds funds
Notes £ £ £ £
INCOME AND ENDOWMENTS FROM:
Donations and legacies 3 128,875 54,853 183,728 95,807
Charitable activities 4 - 308,307 308,307 1,352,231
Other trading activities 5 89,474 - 89,474 148,498
Investments 6 754 - 754 1,803
Other income 7 13,244 - 13,244 16,832
Total income and endowments 232,347 363,160 595,507 1,615,171
EXPENDITURE ON:
Fundraising activities 9 81,693 - 81,693 103,834
Charitable activities 10 90,091 245,795 335,886 306,961
Total expenditure 171,784 245,795 417,579 410,795
NET INCOME/(EXPENDITURE) 8 60,563 117,365 177,928 1,204,376
TRANSFERS BETWEEN FUNDS 28 (22,641) 22,641 - -
OTHER GAINS AND LOSSES 28 - (26,630) (26,630) -
NET MOVEMENT IN FUNDS 28 37,922 113,376 151,298 1,204,376
RECONCILIATION OF FUNDS:
Total funds brought forward 61,304 2,961,791 3,023,095 1,818,719
TOTAL FUNDS CARRIED FORWARD 99,226 3,075,167 3,174,393 3,023,095

The statement of financial activities includes all gains and losses recognised in the year and all income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

Page 16

YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

BALANCE SHEET AT 31 MARCH 2021

CURRENT ASSETS
Stocks
1,646
Debtors
20
34,740
Cash at bank
105,413
141,799
CREDITORS
Amounts falling due within one year
22
(44,946)
NET CURRENT ASSETS
96,853
TOTAL ASSETS LESS CURRENT
LIABILITIES
99,226
CREDITORS
Amounts falling due after more than one year 23
-
ACCRUALS AND DEFERRED INCOME
25
-
NET ASSETS
99,226
FUNDS
28
Unrestricted funds
99,226
Restricted funds
-
TOTAL FUNDS
99,226
Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
17
2,373
Heritage assets
18
-
Programme related investments
19
-
2,373		 -
1,600,441
175,639
1,776,080
(24,320)
1,751,760
3,351,908
(11,326)
(265,415)
3,125,167
-
3,075,167
3,075,167
Restricted
funds
£
1,164,401
398,247
37,500
1,600,148		 1,646
1,635,181
281,052
1,917,879
(69,266)
1,848,613
3,451,134
(11,326)
(265,415)
3,174,393
99,226
3,075,167
3,174,393
2021
Total
funds
£
1,166,774
398,247
37,500
1,602,521		 1,778
1,520,332
253,740
1,775,850
(58,706)
1,717,144
3,381,728
(22,644)
(335,989)
3,023,095
61,304
2,961,791
3,023,095
2020
Total
funds
£
1,214,609
399,975
50,000
1,664,584

Page 17

YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

BALANCE SHEET - CONTINUED AT 31 MARCH 2021

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021, although an audit has been carried out under Section 144 of the Charities Act 2011.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The Trustees acknowledge their responsibilities for: -

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 financial statements were approved by the Board of Trustees on 17 December 2021 and were signed on its behalf by:

P Baker – Chairman

Page 18

YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Proceeds from disposal of investment
Interest received
Net cash (used in)/provided by investing activities
Cash flows from financing activities
Loan drawn
Loan repayments
Net cash (used in)/provided by financing activities
Change in cash and cash equivalents
in the reporting period
Cash and cash equivalents at the
beginning of the reporting period
2
Cash and cash equivalents at the end
of the reporting period
2		 2021
£
87,543
(1,454)
86,089
(66,773)
12,500
754
(53,519)
6,203
(11,461)
(5,258)
27,312
253,740
281,052		 2020
£
222,559
(1,745)
220,814
(64,022)
-
1,803
(62,219)
-
(15,326)
(15,326)
143,269
110,471
253,740

Page 19

YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2021 2020
£ £
Net (expenditure)/income for the reporting period (as per the
Statement of Financial Activities) 151,298 1,204,376
Adjustments for:
Depreciation charges 116,336 114,409
Interest received (754) (1,803)
Interest paid 1,454 1,745
Decrease/(increase) in stock 132 (556)
Decrease/(increase) in debtors (114,849) (1,415,844)
Increase/(decrease) in creditors 4,500 22,243
Increase/(decrease) in deferred income (70,574) 297,989
Net cash provided by operations 87,543 222,559
2. ANALYSIS OF CASH AND CASH EQUIVALENTS
2021 2020
£ £
Cash at bank 281,052 253,740
Total cash and cash equivalents 281,052 253,740
3. ANALYSIS OF CHANGES IN NET DEBT
At 1/4/20 Cash flows
Other Non-		 At 31/3/21
cash changes
£ £
£		 £
Cash at bank and in hand 253,740 27,312
-
281,052
Loans falling due within one year (9,000) 5,258
(11,318)
(15,060)
Loans falling due after one year (22,644) - 11,318 (11,326)
Total 222,096 32,570 -
254,666

Page 20

YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. STATUTORY INFORMATION

The Penllergare Trust is a charitable company, limited by guarantee, registered in England & Wales. The charitable company’s registered number and registered office address can be found in the Trustees’ Report.

2. ACCOUNTING POLICIES

Basis of preparation

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 102) (effective 1 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, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

The charitable company's functional and presentational currency is the pound sterling (£) and balances are rounded to the nearest £1.

Going concern

A significant proportion of the charity’s income is by way of grants. The charity has net current assets at the balance sheet date and has a surplus in the current year. Whilst the charity has been reliant to date on the continuing support of its grant funders, it has developed an ongoing revenue stream from the coffee shop, car park and Hydropower Scheme from 2014. The charity is reliant on these income streams, together with using existing cash reserves and approved grants to meet the current running costs of the charity for the next twelve months.

The pandemic has had an adverse impact during the period in relation to the income generated from the coffee shop and the car park. The Trust has taken all necessary action to react to the change in circumstances and has secured sufficient emergency grant funding and financial support to enable it to continue operating without any adverse impact on either its level of unrestricted reserves or its expected future financial plans.

The Trustees have a reasonable expectation that sufficient income together with grants will continue to be received to meet its expenses and future capital commitments and therefore the charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Trustees continue to adopt the going concern basis in preparing the financial statements.

Income recognition

All income is included on the Statement of Financial Activities when the charitable company is legally entitled to the income and the amount can be quantified with reasonable accuracy. Where grants are subject to performance related conditions, they are recognised in the Statement of Financial Activities based upon when the performance related conditions have been met, in line with the Statement of Recommended Practice: Accounting and Reporting by Charities. Donations are recognised either when received unless the charity has been notified in writing of both the amount and date of expected payment. Income from trading activities is recognised upon the delivery of goods and the provision of services. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity.

Page 21

YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. ACCOUNTING POLICIES (continued)

Income recognition - continued

Donated services and facilities are recognised as income and expenditure when the benefit to the charity can be reasonably quantified or measured and is considered material to the charity. The value of volunteers’ time has not been recognised in the accounts.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on the accruals basis. All expenses including support costs are allocated to the applicable expenditure headings.

Allocation and apportionment of costs

Expenditure which is charged on an accrual’s basis, is allocated between expenditure incurred directly in the effort to raise funds, expenditure incurred directly in the fulfilment of the charity’s objectives, and expenditure incurred in the management and administration of the charity (governance costs and other expenditure). Due to the operations of the charity it was not considered appropriate to allocate expenditure based on activities as the park is considered a unified activity.

Expenditure on raising funds

The costs of raising funds consist of the running costs of the car park and coffee shop together with fundraising costs.

Expenditure on charitable activities

Costs of charitable expenditure include the costs of operating and the general maintenance of the park.

Pension costs

The charity operates a defined contribution pension scheme. The pension cost charge represents contributions payable by the charity to the fund, in accordance with the rules of the scheme.

Other expenditure

This consists of staff support costs and administrative expenses.

Significant judgements and estimates

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amounts 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 which 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 only effects that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the critical judgements that the trustees have made in the process of applying the charity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Impairment of assets

Assets are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Financial Activities.

Page 22

YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. ACCOUNTING POLICIES (continued)

Significant judgements and estimates

Provisions and contingencies

Provisions are recognised when the charity has a present obligation as a result of a past event and a reliable estimate can be made of a probable adverse outcome. Otherwise, material contingent liabilities are disclosed unless a transfer of economic benefits is considered remote. Contingent assets are only disclosed if an inflow of economic benefits is probable.

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives of the assets. The useful economic lives are reassessed annually and are amended when necessary to reflect current estimates of economic utilisation and physical condition of the assets.

Financial instruments

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Non-exchange transactions, such as grant debtors and deferred grants are recognised at the present value of the likely settlement amount. Any gains or losses arising from present value adjustments are recognised in the Statement of Financial Activities.

Basic financial liabilities, including trade and other creditors and loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Tangible fixed assets

Fixed assets costing £250 or more (including VAT) are capitalised and stated at cost less accumulated depreciation calculated so as to write off their cost less any residual value over their expected useful lives. Depreciation is provided at the following annual rates:

Buildings – new constructions - straight line over 60 years
Buildings – other (including lakeworks) - straight line over 15 years
Fixtures and fittings - straight line over 15 years
Plant and machinery - long life – straight line over 15 years
Plant and machinery - medium life – straight line over 5 years
Plant and machinery - short life - 33% per annum
Long leasehold - over the term of the lease

Tangible fixed assets under construction are not depreciated.

Heritage assets

The acquisition of heritage assets relates to the reconstruction, restoration, preservation, conservation and educational objectives of the Trust, and in particular, the cultural landscape of Penllergare. The completed heritage assets include the Llewelyn Bridge and the Observatory.

The Llewelyn Bridge is a new structure on the site of an old stone bridge which existed on this site in the early 19th century and was incorporated into the landscape design conceived and implemented by John Dillwyn Llewelyn (JDL) and his father, Lewis Weston Dillwyn. The bridge features in contemporary paintings and photographs by JDL and his family, and as such is an integral part of the art of the landscape designer, in the historic style of the romantic picturesque landscape movement which prevailed at the time. The new bridge has been designed to be in keeping with the historic designed landscape, which is the main heritage feature at Penllergare Valley Woods.

Page 23

YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. ACCOUNTING POLICIES (continued)

Heritage assets

The Observatory is the only part of the original mansion house which is still standing. It was built in 1851 by JDL to further his interest in astronomy. It is a Scheduled Ancient Monument and of major historic significance as some of the earliest photographs of the moon were taken there.

The heritage assets also include the Vinery, Orchid House and Walled Garden which are all assets under construction. The charity plans to repair and conserve the Walled Gardens, conserve the Orchid House including its waterfall and pond and to restore the historic Vinery located within the Walled Gardens.

Heritage assets are capitalised and stated at cost less accumulated depreciation calculated so as to write off their cost less any residual value over their expected useful lives. Depreciation is provided at the following annual rates:

Buildings – new constructions - straight line over 60 years Buildings – other (including Observatory) - straight line over 15 years

Heritage assets under construction are not depreciated.

The Trusts budgets for the management and preservation of completed heritage assets on an ongoing basis. No disposal of heritage assets has taken place to date and the Trust does not intend to dispose of heritage assets for the foreseeable future.

Stocks

Stocks are stated at the lower of cost and net realisable value. Cost includes purchase price less discounts where applicable. Net realisable value is based on estimated selling price. Provision is made for obsolete and slow moving items where appropriate.

Taxation

The charity is exempt from corporation tax on its charitable activities. The charity registered for VAT on 1st December 2015 and is liable to pay VAT on its business activities, although its charitable activities are outside the scope of VAT.

Operating leases

Rentals paid under operating leases are charged as expenditure on a straight line basis over the period of the lease.

Deferred Income

Grant income is deferred to future periods when the grant is subject to performance related conditions being met. The grant income is deferred and not recognised until the conditions are fully met.

Investments

Fixed asset investments are valued at fair value.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charitable company. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Page 24

YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

3. INCOME FROM DONATIONS AND LEGACIES

Donations
Grants
Government grants
Subscriptions
Gift Aid
Unrestricted
£
Donations
12,429
Grants
40,407
Government grants
68,188
Subscriptions
5,370
Gift aid
2,481
128,875
Unrestricted
£
Donations
10,415
Grants
-
Government grants
1,311
Subscriptions
4,595
Gift aid
2,823
19,144
4.
INCOME FROM CHARITABLE ACTIVITIES
Grants
Unrestricted
£
Grants
-
Unrestricted
£
Grants
1,927		 Restricted
£
150
54,703
-
-
-
54,853
Restricted
£
5,300
63,575
7,788
-
-
76,663
Restricted
£
308,307
Restricted
£
1,350,304

Page 25

YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

5. INCOME FROM OTHER TRADING ACTIVITIES

Book Sales
Coffee shop and car park
Export of electricity
Firewood sales
Calendar Sales & Sponsorship
Sale of other items
Fees – use of Trust premises
Other fundraising activities
Friends Fundraising activities
6.
INCOME FROM INVESTMENTS
Deposit account interest
Leasehold bond interest
7.
OTHER INCOME
Feed in tariff
8.
NET INCOME/EXPENDITURE
Net income/(expenditure) is stated after charging/(crediting):
Audit fees – tax advisory services
Audit fees		 2021
£
141
82,185
2,286
38
732
67
850
-
3,175
89,474
2021
£
612
142
754
2021
£
13,244
2021
£
-
6,000
6,000		 2020
£
1,002
131,917
2,904
125
1,142
3,299
1,292
2,875
3,942
148,498
2020
£
1,628
175
1,803
2020
£
16,832
2020
£
624
6,000
6,624		 2020
£
1,002
131,917
2,904
125
1,142
3,299
1,292
2,875
3,942
148,498
2020
£
1,628
175
1,803
2020
£
16,832
2020
£
624
6,000
6,624
6,624

Page 26

YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

9.
EXPENDITURE ON FUNDRAISING ACTIVITIES
Coffee shop and Car Park running costs
Friends events/100 Club prizes
Fundraising/Commercial staff costs
Other fundraising events
Depreciation
Turbine running costs

10.
EXPENDITURE ON CHARITABLE ACTIVITIES
Parks for People (NLHF) project expenditure
NLHF Phase 2 project delivery
Other project expenditure
Depreciation
Plant and Bulb Appeal
Lease rent
Accountancy and payroll
Friends
Staff salaries
Other Unrestricted Expenditure
Support costs – staff
Bank charges
Loan interest
Volunteers’ Expenses
Telephone, postage and stationery
Support costs – other
Analysis by fund
Unrestricted funds
Restricted funds		 2021
£
67,211
475
685
11,812
-
1,510
81,693
2021
£

-
30,328
7,666
116,335
-
35,000
6,426
85
70,005
14,886
42,645
238
1,454
-
8,319
2,499
335,886
90,091
245,795
335,886
2020
£
86,359
727
11,277
2,501
136
2,834
103,834
2020
£
1,380
13,391
6,530
114,273
311
34,754
7,571
1,127
66,112
11,606
40,330
201
1,745
718
5,307
1,605
306,961
90,919
216,042
306,961

Page 27

YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

11. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.

Trustees' Expenses

There were no trustees’ expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020. There were no trustees reimbursed during the year (2020 - £513).

12. INTEREST PAYABLE AND SIMILAR CHARGES

Loan interest
13.
EXPENDITURE: SALARIES & NATIONAL INSURANCE
Salaries
Social security
Workplace pensions
There are no employees with salaries greater than £60,000 per annum.
The average weekly number of employees by function
Charitable activities staff
Staff employed to generate funds		 2021
£
1,454
2021
£
156,721
4,981
2,302
164,004
2021
£
6
7
13		 2020
£
1,745
2020
£
153,802
6,632
2,413
162,847
2020
£
6
7
13

14. VOLUNTEERS

The charity is assisted by volunteers, the number of which fluctuated during the year but averaged 13 (2020 - 106) at any one time. The value of volunteers' time is estimated with reference to the recorded number of volunteer hours multiplied by the estimated hourly rate that an employee would have been paid for carrying the type of service. The quantified benefit to the charity for volunteers time is £77,850 (2020 - £206,200) and, in line with requirements of the SORP, this amount has not been recognised within the accounts.

15. KEY MANAGEMENT PERSONNEL

Key management personnel are considered to be those personnel who are not trustees but sit within key operational and strategic roles. The total employee costs of the employee deemed to be key management personnel was £37,603 (2020 - £36,711).

Page 28

YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted Restricted Total
funds funds funds
£ £ £
INCOME AND ENDOWMENTS FROM:
Donations and legacies 19,144 76,663 98,807
Charitable activities 1,927 1,350,304 1,352,231
Other trading activities 148,498 - 148,498
Investments 1,803 - 1,803
Other income 16,832 - 16,832
Total income and endowments 188,204 1,426,967 1,615,171
EXPENDITURE ON:
Charitable activities 103,834 - 103,834
Other expenditure 90,919 216,042 306,961
Total expenditure 194,753 216,042 410,795
NET INCOME/(EXPENDITURE) (6,549) 1,210,925 1,204,376
TRANSFERS BETWEEN FUNDS - - -
NET MOVEMENT IN FUNDS (6,549) 1,210,925 1,204,376
RECONCILIATION OF FUNDS:
Total funds brought forward 67,853 1,750,866 1,818,719
TOTAL FUNDS CARRIED FORWARD 61,304 2,961,791 3,023,095

Page 29

YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

17. TANGIBLE FIXED ASSETS

Assets under
construction
£
COST
Brought forward
26,188
Additions
37,936
Disposals
-
At 31 March 2021
64,124
DEPRECIATION
Brought forward
-
Charge for the year
-
Eliminated on disposal
-
At 31 March 2021
-
NET BOOK VALUE
At 31 March 2021
64,124
At 31 March 2020
26,188		 Long
leasehold
£
1,342,641
-
-
1,342,641
396,768
70,365
-
467,133

875,508

945,873		 Short
leasehold
£
Plant and
Machinery
£
4,114
393,779
-
11,993
-
(1,619)
4,114 404,153
1,140
154,205
165
27,234
-
(1,619)
1,305 179,820
2,809
224,333
2,974
239,574		 Total
£
1,766,722
49,929
(1,619)
1,815,032
552,113
97,764
(1,619)
648,258

1,166,774

1,214,609

In the prior year, depreciation on plant and machinery totalling £16,180 was allocated against long leasehold assets in error. The brought forward depreciation balances for plant and machinery and long leasehold assets have been adjusted to correct this error. There was no impact on the total deprecation balances.

18. HERITAGE ASSETS

Buildings under
Construction
£
COST
Brought forward
29,813
Additions
16,844
At 31 March 2021
46,657
DEPRECIATION
Brought forward
-
Charge for the year
-
At 31 March 2021
-
NET BOOK VALUE
At 31 March 2021
46,657
At 31 March 2020
29,813		 Buildings
£
452,324
-
452,324
82,162
18,572
100,734
351,590
370,162		 Total
£
482,137
16,844
498,981
82,162
18,572
100,734
398,247
399,975

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YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

18. HERITAGE ASSETS - continued

Five year summary of heritage asset transactions:

2021 2020 2019 2018 2017
£ £ £ £ £
Cost of acquisitions 16,844 29,813 - 15,729 14,469

There have been no heritage assets acquired by donation during the last five years. There have been no disposals or impairment of heritage assets in the last five years.

19. INVESTMENTS: PROGRAMME RELATED INVESTMENTS

The programme related investment is in relation to a bond secured with the landlords of the park to secure the long term leasehold of the park. The investment supports the charitable objective as the leasehold of the park needed to be obtained in order to receive grant funding for the "Parks for People" project. During the year the charity withdrew £12,500 (2020 - £nil) from the bond.

At the year end the balance held as the bond was £37,500 (2020 - £50,000).

20. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021
£
Grants
228,076
Prepayments & accrued income
22,861
Other debtors
3,692
254,629
DEBTORS: AMOUNTS FALLING DUE AFTER ONE YEAR
Grants
Prepayments & accrued income
1,380,552
1,635,181
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021
£
Trade creditors
12,798
Accruals
Other creditors
23,013
18,395
Taxation and social security
-
Loans
15,060
69,266
2021
£
1,331,518
49,034		 2020
£
1,269,384
20,093
2,532
1,292,009
2020
£
167,085
61,328		 2020
£
1,269,384
20,093
2,532
1,292,009
2020
£
167,085
61,328		 2020
£
1,269,384
20,093
2,532
1,292,009
2020
£
167,085
61,328
228,323
1,520,332
2020
£
13,239
20,839
13,261
2,367
9,000
58,706

21. DEBTORS: AMOUNTS FALLING DUE AFTER ONE YEAR

22. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

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YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

23.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Loans
24.
LOANS
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Loans
Amounts falling due after more than one year but less than five years:
Loans
25.
ACCRUALS AND DEFERRED INCOME
26.
FINANCIAL COMMITMENTS
Deferred grants
Summary of deferred income movements:
Deferred income brought forward
Grants released during the year
New grants deferred during the year		 2021
£
11,326
2021
£
15,060
11,326
2021
£
265,415
£
335,989
(327,574)
257,000
265,415		 2020
£
22,644
2020
£
9,000
22,644
2020
£
335,989

The charity has future operating lease commitments totalling £4,595,000 (2020 - £3,905,000).

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YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

27. COMPARATIVES FOR THE BALANCE SHEET

CURRENT ASSETS
Stocks
1,778
Debtors
20
34,363
Cash at bank
44,647
80,788
CREDITORS
Amounts falling due within one year
22
(21,780)
NET CURRENT ASSETS
59,008
TOTAL ASSETS LESS CURRENT
LIABILITIES
61,304
CREDITORS
Amounts falling due after more than one year 23
-
ACCRUALS AND DEFERRED INCOME
25
-
NET ASSETS
61,304
FUNDS
28
Unrestricted funds
61,304
Restricted funds
-
TOTAL FUNDS
61,304
Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
17
2,296
Heritage assets
18
-
Programme related investments
19
-
2,296		 -
1,778
1,222
1,485,969
1,520,332
104,488
209,093
253,740
110,471
1,695,062
1,775,850
216,181
(36,926)
(58,706)
(45,463)
1,658,136
1,717,144
170,718
3,320,424
3,381,728
1,885,689
(22,644)
(22,644)
(28,970)
(335,989)
(335,989)
(38,000)
2,961,791
3,023,095
1,818,719
-
61,304
67,853
2,961,791
2,961,791
1,750,866
2,911,791
3,023,095
1,818,719
2020
2019
Restricted
Total
Total
funds
funds
funds
£
£
£
1,212,313
1,214,609
1,276,238
399,975
399,975
388,733
50,000
50,000
50,000
1,662,288
1,664,584
1,714,971

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YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

28. MOVEMENT IN FUNDS

Net
movement in
At 01/04/20 funds At 31/03/21
Unrestricted funds £ £ £
General fund 40,952 32,745 73,697
Friends 20,352 5,177 25,529
61,304 37,922 99,226
Restricted funds
Parks for People Project (NLHF) 1,545,469 (131,784) 1,413,685
NLHF 2 – fundraising for delivery phase 1,327,294 233,984 1,561,278
Woodland Centre 25,618 (5,102) 20,516
Rural Development Fund 43,863 18,806 62,669
Orchard 2,231 17,963 20,194
Other restricted funds 17,316 6,139 23,455
Fair value reserve - (26,630) (26,630)
2,961,791 113,376 3,075,167
TOTAL FUNDS 3,023,095 151,298 3,174,393
Net movement in funds, included in the above are as follows:
Income Expenditure Transfers
Unrestricted funds £ £ £
General fund 226,610 171,224 (22,641)
Friends 5,737 560 -
232,347
171,784		 (22,641)
Restricted funds
Parks for People Project (NLHF) - 106,784 -
NLHF 2 – fundraising for delivery phase 312,572 126,229 22,641
Woodland Centre - 5,102 -
Rural Development Fund 18,806 - -
Orchard 18,253 290 -
Other restricted funds 13,529 7,390 -
Fair value reserves - - -
363,160 245,795 22,641
TOTAL FUNDS 595,507 417,579 -

Other losses on the fair value reserve, as reported in the Statement of Financial Activities, totalled £26,630.

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YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

28. MOVEMENT IN FUNDS CONTINUED

Where deficits arise on restricted funds, these will be met by reserves in the general fund.

Details of transfers between funds:

Transfer From Transfer To Reason Amount £
Phase 2 Delivery fund General reserve Staffing costs funded by Covid
Economic Resiliencegrant		 5,985
Phase 2 Delivery fund General reserve Staffing costs funded by Government
Furlough Scheme		 16,656

Comparative for movement in funds

Net
movement in
At 01/04/19 funds At 31/03/20
Unrestricted funds £ £ £
General fund 53,309 (12,357) 40,952
Friends 14,544 5,808 20,352
67,853 (6,549) 61,304
Restricted funds
Parks for People Project (NLHF) 1,675,396 (129,927) 1,545,469
NLHF 2 – fundraising for delivery phase 15,820 1,311,474 1,327,294
Woodland Centre 30,720 (5,102) 25,618
Rural Development Fund 9,548 34,315 43,863
Orchard 428 1,803 2,231
Other restricted funds 18,954 (1,638) 17,316
1,750,866 1,210,925 2,961,791
TOTAL FUNDS 1,818,719 1,204,376 3,023,095

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YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

28. MOVEMENT IN FUNDS CONTINUED

Comparative net movement in funds, included in the above are as follows:

Income Expenditure Transfers
Unrestricted funds £ £ £
General fund 180,566 192,923 -
Friends 7,638 1,830 -
188,204
194,753		 -
Restricted funds
Parks for People Project (NLHF) - 129,927 -
NLHF 2 – fundraising for delivery phase 1,381,654 70,180 -
Woodland Centre - 5,102 -
Rural Development Fund 33,916 (399) -
Orchard 2,500 697 -
Other restricted funds 8,897 10,535
1,426,967 216,042 -
TOTAL FUNDS 1,615,171 410,795 -

The unrestricted funds are available to be spent for any of the purposes of the charity.

Restricted Funds

The Parks for People Project Fund (NLHF) is in respect of the Phase 1 Development which was established from grant funding for capital projects for restoration and renovation work in the Park. This involved the restoration of the Llewellyn Bridge and Observatory and construction of the Visitor Car Park and Coffee Shop.

The National Lottery Heritage Fund (NLHF) Development and Delivery is in respect of the Phase 2 Development which is grant funded by the National Lottery Heritage fund for the capital project of the restoration of the Walled Gardens, Orchid House and Vinery in the Park.

The Rural Development Fund is funding for a capital project for the construction of a Training Centre in the Park. The training centre will enable the Park to have a facility to offer training courses to the local community and volunteers.

The remaining restricted funds are in respect of smaller restoration and renovation projects in the Park.

The fair value reserve relates to the fair value adjustment on grants due after one year, as set out in note 21 and the related accounting policy.

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YMDDIRIEDOLAETH PENLLERGARE (REGISTERED NUMBER: 04004593) THE PENLLERGARE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2021

29. CAPITAL COMMITMENTS

At the balance sheet date, the Trust had capital commitments totalling £nil (2020 - £91,459) in relation to committed professional costs relating to the undergoing construction works.

The total building works under construction at the balance sheet date amounted to £110,711 (2020 - £56,001).

30. SECURED GRANTS

A grant of up to £2,320,800 had been awarded to the charity by the National Heritage Fund to assist in the restoration of Penllergare Valley Woods. The National Lottery Heritage Fund has a right to demand repayment of some or all of the grant, should certain grant conditions not be met and has registered a legal charge over the lease of the Woods and the Observatory.

A further grant of up to £1,881,700 has also been awarded by the National Lottery Heritage Fund to assist in the second phase of the restoration – the Walled Garden and adjacent areas. The NLHF has a right to demand repayment of some or all of the grant, should certain grant conditions not be met, and has registered a legal charge over the lease of the Walled Garden and adjacent areas.

31. RELATED PARTY TRANSACTIONS

There are no related party transactions during the year apart from Key Management Personnel costs as disclosed in note 15.

Page 37