(A Registered Charity and Company Limited by Guarantee)
Company No. 05383055 Charity No. 1108677
## **FOR THE YEAR ENDED 31 AUGUST 2022**
|**Contents**|**Contents**|**Contents**||||**Page**|
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|Reference and Administrative Details||||||2|
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|Chief Executive||||||4|
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|||||s Report||12|
|Statement of Financial Activities||||||15|
|Balance Sheet||||||16|
|Cash Flow Statement||||||17|
|Notes||to the Financial Statements||||18-31|
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## **FOR THE YEAR ENDED 31 AUGUST 2022**
## **Status**
The organisation is a charitable company limited by guarantee, incorporated in England and Wales on 4 March 2005.
**Governing Document**
The company was established under Memorandum and Articles which established the objects and powers of the charitable company.
**Company Number**
05383055
**Charity Number Registered & Operating Office**
1108677
Cumberland Lodge, The Great Park, Windsor, Berkshire, SL4 2HP
**Trustees**
Baroness Prashar of Runnymede, CBE PC (Chairman, F) Charles Anson CVO DL (B) Jane Furniss CBE (B) Alan Gemmell OBE (F) Paul Hampden Smith* (F) resigned 27 January 2022 Stephen Harvey appointed 14 October 2021 (B) John Lotherington (Vice Chair from 21 July 2022, F, B) Amanda Mackenzie OBE appointed 21 July 2022 (B)
David Matthews appointed 14 October 2021 (Honorary Treasurer from 27 January 2022, F)
Simon Pearce* (Honorary Treasurer, F) resigned 27 January 2022 Baroness Pitkeathley of Caversham*, OBE (Vice Chair, F) resigned 21 July 2022 Jayaprakasa Rangaswami (B) Ingrid Tennessee appointed 21 April 2022 (F)
## Subcommittees
F: Denotes Member of the Finance and General Purposes Committee B: Denotes Member of the Business Development Committee
* term of office extended to provide continuity during the pandemic
## **Chief Executive**
## Canon Dr Edmund Newell
## **Bankers**
HSBC Bank Plc,105 Mount Pleasant, Tunbridge Wells, Kent, TN1 1QP
## **Solicitors**
Farrer & Co LLP,
## **Investment Managers Auditors**
CCLA, Senator House, 85 Queen Victoria Street London EC4V 4ET Haysmacintyre LLP,10 Queen Street Place, London, EC4R 1AG
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## **FOR THE YEAR ENDED 31 AUGUST 2022**
On 5 August 1947, an announcement appeared in _The Times_ to say that King George VI had granted a former royal residence in Windsor Great Park as the home for an experimental educational foundation, then
The idea was a response to the situation in the late 1930s, as explored in the book _Darkness Over Germany_ , written by Amy Buller. In it, Buller analyses how National Socialism took hold in Germany prior to the Second World War. Her vision was to set up a place where students could meet to discuss the moral issues of the day. The book came to the attention of the King and Queen, who helped Buller to set up the foundation.
This experiment has clearly worked, and its objectives are as relevant today as they were in 1947. This educational charity, now known simply by the name of its home, Cumberland Lodge, is now 75 years old and looking to its future with renewed vigour to fulfil its purpose.
Our 75[th] anniversary and the pandemic, which restricted what we could do in terms of residential events, provided an opportunity to reflect on our past, our origins, and our objectives. While our original purpose, to foster critical thinking and constructive dialogue underpinned by values to sustain an open society, remains fundamental to what we do, the trustees and the staff have worked together to consider how best to deliver these objectives even more effectively and to increase our impact.
These deliberations resulted in a new five-year Programme strategy which will inform the next phase of our work. While we will continue to provide space for young people to think deeply about the critical issues of our time, to equip them to navigate our turbulent world which raises many ethical dilemmas, and to help to build a movement for social progress, our future work will be more focused on how best to achieve our objectives in a much more polarised world with ever increasing digital connectivity.
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## **FOR THE YEAR ENDED 31 AUGUST 2022**
As we transitioned from 2021 into our 75[th] anniversary year in 2022, three things stand out for me. First, is how quickly we managed to bounce back operationally from the COVID-19 pandemic. We introduced new flexible working arrangements for all staff, which has paid dividends. Our conference trade bounced back strongly, meaning we are in a far stronger financial position than we could have anticipated during the bleak times of the pandemic.
The bounce-back was not only quick and strong in terms of our conference business. As will be seen in what follows, a significant feature of the past year is how quickly we were able to resume our Programme activities. The investment we made in digital technology in 2019 has meant that as well as returning to in-person events, we have continued to develop our online activities, and the ability to hold hybrid events has proved invaluable in terms of extending our reach and involving those who, for one reason or another, cannot be with us physically in Windsor Great Park.
Finally, alongside planning and delivering conferences, webinars, and other events, over the past year staff and trustees have been working hard to develop a new five-year Programme strategy, which we are now beginning to implement. We have exciting plans to develop new streams of work, building on what has been achieved in recent years and involving many more people than has previously been possible. My review of the year also gives a flavour of what is planned, with the promise of much more to come.
## **Our Programme 2021-22**
## **Conferences**
As we moved out of the pandemic, we were once again able to hold in-person events at Cumberland Lodge. During the year we held five conferences:
- _Practitioner Responses to Child Trafficking: Emerging Good Practices_ (10-12 October 2021), organised in partnership with the Independent Anti-Slavery Commissioner, built on our 2017 report, _Eliminating Modern Slavery: Enhancing the Police Response_ .
- _The British German Democracy Forum_ (25-27 October 2021), organised in partnership with the Goethe-Institut, London, explored the problematic issues associated with colonial history in the UK and Germany and connected with our 2019 report _Difficult Histories & Positive Identities_ .
- _Shaping Social Mobility: Education and Employment_ (7-8 March 2022) explored in depth issues raised in our 2020 _Dialogue & Debate_
- Our 40[th] annual police conference _Legitimacy & Confidence in Policing_ (17-19 June 2022) revisited a recurring issue for this series, last explored in the 2013 conference _The Legitimacy of Policing: Connecting the People to the Reforms_ .
- The annual _Life Beyond the PhD_ conference (15-19 August 2022) again provided support for students from universities across the UK completing doctorates, with a focus on applying research skills into areas that promote social progress.
Unfortunately, the 2021 had to be cancelled due to COVID-19. It was replaced by a webinar held on 21 December 2021 to discuss the experience of students studying at university during the pandemic.
## **Reports**
During the year we published three reports generated from earlier conferences:
- _Climate Futures: Youth Perspectives_ was launched at a hybrid event at Cumberland Lodge on 16 September 2021, in advance of the 2021 UN Climate Change Conference in Glasgow (COP26) and Pre-COP26 Conference in Milan, Italy.
- _Towards Justice: Law Enforcement & Reconciliation_ was launched at a hybrid event at New Scotland Yard, London on 1 February 2022.
- _Practitioner Responses to Child Trafficking: Emerging Good Practices_ was launched at a hybrid event at Deloitte, London on 11 April 2022.
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## **FOR THE YEAR ENDED 31 AUGUST 2022**
## **Dialogue & Debate webinars**
Throughout the pandemic, we held monthly _Dialogue & Debate_ webinars. With the reintroduction of in-person events, we have reduced the frequency of these webinars, which we now hold on an occasional basis. This change is apparent in the list of webinars held in 2021-22:
- _The Social Impact of Sport_ , 1 September 2021
- _Schooling and Inequality_ , 6 October 2021
- _Beyond Tokenism_ , 3 November 2021
- _Women in Leadership_ , 6 March 2022
## **Life Perspective podcasts**
In 2022, we launched a new inter-generational podcast series, _Life Perspectives_ , in which current and past Fellows discussed issues of mutual interest with leading practitioners in their fields. During the year we released four episodes:
- _Youth in Leadership,_ Dr Angelika Love and Dr Margaret Heffernan
- _Policy and Public Life_ , Hannah Phillips and Lord (David) Anderson of Ipswich
- _Ethnicity & Religion in Recruitment,_ Samir Sweida-Metwally and Dr Valentina di Stasio
- _Autism and Spirituality,_ Henna Cundill with Dame Stephanie Shirley
## **Special events**
In addition to our regular activities, we held two special events:
## Moot Court
On 28 February 2022 we held a Moot Court and fundraising dinner in honour of our former Visitor, the late Sir John Laws. In _Regina v Billy Goat 1_ , leading barristers Kirsty Brimelow KC and Simon Myerson KC teamed up with sixth form students from the social mobility charity Big Voice London for an appeal court hearing following heard by the Rt Hon Lord Justice Bean, the Rt Hon Lady Justice Whipple, and Her Honour Judge Anuja Dhir KC.
## Zutshi-Smith Symposium
On 16 May 2022, we partnered with the University of Bristol to deliver its Sixth Biennial Zutshi-Smith Symposium on the topic _Believing in the University: freedom, inclusion and academic citizenship._ Held in Bristol, the event was chaired by Cumberland Lodge Visiting Fellow Dame Sara Thornton.
## **Visiting groups**
An important aspect of our charitable work is providing facilities for educational activities for visiting groups. These fall into three main categories: study retreats for university students (which can include discussions on topical ethical issues led by Cumberland Lodge staff), advocacy training for trainee barristers from all four Inns of Court and continuing professional development for doctors. Over the past year, 55 student study retreats were held at Cumberland Lodge, involving 2,040 participants; there were nine advocacy training weekends for the Inns of Court, with 633 participants; and 53 medical training events, with 1,741 participants. This means that, in total, 117 charitable events were held at Cumberland Lodge over the past outside our own Programme, involving 4,940 participants.
As well as the Inns of Court, external organisations with whom we work on a regular basis include Health Education England, West Middlesex Hospital, London North West University Healthcare NHS Trust, University College London, London School of Economics, Imperial College
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## **FOR THE YEAR ENDED 31 AUGUST 2022**
University of London, University of Bristol, University of Warwick, University of Hertfordshire, and the Association of Commonwealth Universities.
## **Public cultural events**
In addition to our Programme events, we continue to hold educational and cultural events that are open to the public.
## **Shakespeare Reading Retreat**
Our Shakespeare Reading Retreat on _Othello_ , postponed from 2021, took place on 4-7 January 2022. Our regular contributors Lord (Rowan) Williams, Sir Stanley Wells, Dr Paul Edmondson, and Dr Amanda Piesse were joined by Shakesperean actor Andrew French.
## **Cumberland Conversations**
During the year, we held two Cumberland Conversations:
- Isabella Naylor- _The Windsor Diaries_ , in November 2021.
- In January 2022 our former Principal Alastair Niven spoke about his memoir _In Glad or Sorry Hours_ . This followed the dedication of revamped archive in honour of Sir Eric Anderson and the launch of a 75th anniversary exhibition.
## **Windsor Festival**
On 30 September 2021, we continued our longstanding relationship with the Windsor Festival with a discussion with Simon Heffer as editor of _-1943_ .
## **Concerts**
To mark the Platinum Jubilee of our then Patron, Her Late Majesty Queen Elizabeth II, on 10 July 2022 we hosted a performance of _Music of the Royal Court_ sung by Quire Voices.
## **People**
It is the contribution of so many people that makes Cumberland Lodge such a vibrant organisation, with an exceptional reputation for its hospitality. We benefit from both the dedication of those involved with us over many years and those who bring fresh ideas and new skills and experience into the mix.
## **Trustees**
Over the past year, we said farewell to three trustees: Simon Pearce (Treasurer), Paul Hampden-Smith (Chair of the Audit Committee), and Baroness (Jill) Pitkeathley (Vice-Chair), all of whom not only completed their two five-year terms on the Board but kindly continued for an extra year to help us navigate our way through the pandemic. In their place, we have welcomed Stephen Harvey, David Matthews (Treasurer) and Ingrid Tennessee. John Lotherington has also taken on the role of Vice-Chair of Trustees.
## **Staff**
There have also been several staff changes. Among the Senior Management Team, we said farewell to Linda Webber (Finance Director) and Helen Taylor (Communications Director). In their place, we welcomed, respectively, Mike Durham (in the reconfigured role of Chief Operating Officer) and Nicola Hine (Communications Manager).
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**FOR THE YEAR ENDED 31 AUGUST 2022**
## **Fellows**
As we said farewell to our 2019-2021 cohort of Fellows, we welcomed our 2021-2023 cohort: Ellen Bristow (Cardiff University), Julia Buzan (LSE), Henna Cundill (University of Aberdeen), Joshua Ettinger (University of Kent), Scott Kaba Matafwali (London School of Hygiene and Tropical Medicine), Nour Nashed (University of Sussex), and Rachel Newel Fellows on the Board of Trustees.
## **Volunteers**
We continue to benefit from the help of volunteers and are grateful to Elias Kupfermann (who sadly passed away in December 2022), Katherine Saunders and Mimi Markham for their work on the archive and to Jessamy Hadley and Linda Howell for their work on the Library. We are grateful, too, to Jessamy for curating our 75[th] anniversary exhibition and the display in the main corridor, and to Elias for curating the exhibition on Princess Christian in the Tapestry Hall. Our Volunteer Coordinator Peter Symonds continues to lead history tours of the Lodge for visiting groups.
## **Looking ahead**
new five-year plan for our Programme was created and is now beginning to be implemented. Two key objectives have been agreed that will inform our work for ght
What these mean in practice is to ensure all that we do provides opportunities for young people to engage with challenging issues with an ethical dimension, and as many opportunities as possible for long-term involvement with us. To achieve these objectives, we will reduce the number of stand-alone conferences that we organise and introduce cohort programmes that will involve participants making multiple visits for residential events. We are also planning investments in an online community engagement platform and online learning capabilities to enable us to involve people across the world in our activities on an ongoing basis.
As we begin to shape our future Programme, there are three areas on which we intend to focus. The application of the rule of law and its relationship to democracy raises many ethical questions in the UK and globally, and this will be the topic for our first cohort programme, with a focus on Commonwealth countries. We also intend to reintroduce our previous cohort programme on freedom of religion or belief. The third area The latter stream of work will take our work off-site and, initially, across the UK.
To support these new initiatives, a priority is to enhance our online presence and to develop new income streams including holding more regular social and cultural fundraising events that will appeal to the Friends of Cumberland Lodge and other supporters.
We are also developing our policies on environmental sustainability and equity, diversity, and inclusion (EDI).
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**FOR THE YEAR ENDED 31 AUGUST 2022**
## **Report**
The Trustees, who are the Directors of the charitable company, present their report, which includes the strategic report, and the audited financial statements for the year ended 31 August 2022
## **Objectives and activities**
Cumberland Lodge has as its objects:
To advance education of the public, in particular British, Commonwealth and overseas students in accordance with the principles of the Christian faith with particular reference to: the nature of human life in society; the relationship between Christian theology and philosophy and alternative religious and secular beliefs; the interrelationship of various academic disciplines and their practical relevance.
In furtherance of those objects, the Charity aims to provide opportunities for the exchange of views and beliefs, and to explore how study and research can improve society. It does this through the provision and management of a residential conference centre in surroundings conducive to study, debate and interaction. The centre is used by a wide range of members of the public, from Britain, the Commonwealth and elsewhere, including in particular undergraduates, postgraduates and young people in training at a variety of institutions, including the Inns of Court and the National Health Service, and young people connected through international organisations.
The Trustees have set two programmatic objectives for the Charity:
- to nurture young people to be ethically minded thought leaders
- to build a movement for social progress
## **Review of significant activities and achievements including public benefit**
The Trustees have had regard to the Charity Comm how the objects have been fulfilled, through the activities undertaken, for the public benefit.
As is evident from the Reports, the Charity has focused on providing access to student groups, educational conferences, public conversations, and exhibitions in an atmosphere that lends itself to study and reflection.
We provide facilities for universities and other institutions of higher education, learned societies, the National Health Service, Inns of Court, and other similar bodies to run programmes that bring people together to discuss matters of an ethical, moral and spiritual nature which where possible lie outside their routine work programmes.
We also run our own conferences and external events throughout the year. Through that programme, the Charity initiates fresh debate on issues of national and international significance. We are independent and so able to promote frank exchanges of views and cross-sector co-operation on matters affecting the development of society. Although the Charity is Christian by foundation, we encourage the expression of all reasonable views,
It is important to the Charity that access to the educational experience it provides is open to all who are interested. The principal beneficiaries are students and young people in training, and we subsidise their visits by a programme of bursary support and reduced charges.
## **Fundraising statement**
Cumberland Lodge is registered with the Fundraising Regulator. In the past year Cumberland Lodge has received no complaints in respect of its fundraising (2021: none).
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**FOR THE YEAR ENDED 31 AUGUST 2022**
## **Financial Review**
During the previous two financial years, income generating activities were severely curtailed by the COVID-19 pandemic which necessitated the Lodge being closed for lengthy periods. Consequently, significant operating deficits were reported in both 2019/20 and 2020/21.
As restrictions eased during 2021/22, the conference trade returned rapidly to more normal levels. Total income of £2,742,000 (2020/21: £1,380,000) reflected activity levels that recovered a long way towards pre-pandemic levels, and with expenditure kept firmly under control an operating surplus of £392,000 (2020/21: deficit of £542,000) was generated.
Unfortunately, the adverse impact on global financial markets of uncertainties following the invasion of Ukraine in early 2022 meant that the performance of our managed investment funds was less resilient, and investment losses of £164,000 (2020/21: gain of £543,000) were incurred.
Overall, we reported an increase in funds of £228,000 (2020/21: breakeven), leaving total funds at the year end of £4,923,000 (2020/21: £4,695,000). Unrestricted general funds at the year end were £3,417,000 (2020/21: £2,951,000).
## **Reserves policy**
Cumberland Lodge holds reserves for three reasons:
Restricted funds - where donors require gifts to be used to further a specific charitable purpose, rather than to Note 14
Designated funds - funds set aside either against the net book value of fixed assets (which are not freely available to be spent on which are to be set aside for designated future projects or commitments. Details are set out in Note 15.
General funds funds held as a buffer against unanticipated reductions in income, increases in expenditure or working capital requirements. The level of general funds at 31st August 2022, which represented approximately 17 months of operating expenditure reflects the prudent approach to financial management taken by Trustees.
## **Investments**
Cumberland Lodge seeks to produce the best financial return within an acceptable level of risk. The investment objective for the long term is to generate a return in excess of inflation whilst generating an income to support the ongoing activities of Cumberland Lodge. The investment objective for the short term is to preserve the capital value with a moderate level of risk. Assets should be readily available to meet unanticipated cash requirements. Investment performance is reported to the Board and is monitored by the Trustee group as a whole.
## **Principal risks and uncertainties**
Cumberland Lodge has a formal risk management process through which the major risks to which the organisation may be exposed are identified, and has ranked these by likelihood and impact, culminating in a risk control document which is updated on a regular basis. All significant risks, together with current mitigation actions, are reviewed by the Trustees at their meetings. The Trustees are satisfied that systems have been developed and are in place to mitigate identified risks to an acceptable level.
The principal risks and uncertainties identified by the Charity are as follows:
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## **FOR THE YEAR ENDED 31 AUGUST 2022**
**----- Start of picture text -----**
Risk identified Action taken to mitigate the risk
Cost Inflation Cumberland Lodge regularly reviews and updates its customer pricing in line
and Volatility with overall inflationary pressures. Fixed price agreements will be negotiated
with suppliers where feasible to minimise cost base volatility.
Forced closure The forced closure of the Lodge due to adverse weather, epidemics or similar
force majeure events is an ever-present risk. Insurance provides some mitigation
depending on the precise circumstances, and our event contracts limit any
customer liability that might arise. The residual risk is mitigated by our reserves
policy
Withdrawal of The Charity occupies Cumberland Lodge by Royal Warrant, which is subject to
Royal Warrant the grant of the Monarch. Both the conditions of the Royal Warrant and the
carefully monitored by the Trustees.
Loss of Risks resulting in the loss of access to the building are mitigated by the fire
premises safety system, insurance and discussion with the landlord. The condition of the
buildings is constantly reviewed and both preventative and reactive maintenance
measures are undertaken to ensure that the buildings are safe and efficient and
offer appropriate facilities to all categories of users.
**----- End of picture text -----**
## **Structure, governance and management**
## **Structure**
Cumberland Lodge was incorporated on 4 March 2005, and the assets and activities of the King George VI and Charity were transferred to it with effect from 1 June 2005 when the new charity and its trading subsidiary commenced operations.
the Royal Warrant for the occupation of Cumberland Lodge. A uniting direction was issued by the Charity Commission (8 March 2006), which removed the need to account separately for the old charity.
Cumberland Lodge has a wholly-owned non-charitable trading subsidiary, Cumberland Lodge Enterprises Limited, which provides conference facilities for professional bodies, charities and other organisations. The consolidated results of Cumberland Lodge and its subsidiary are shown on page 16 of the financial statements. Cumberland Lodge as corporate trustee.
## **Governance**
The Company is governed by its Memorandum and Articles of Association. The Trustees are Directors of the company and those who served during the year and since are set out on page 2.
During the year two committees of the Board (Finance and General Purposes, and Business Development) met to implement policy and exercise control. Trustees are represented on each committee.
New Trustees are proposed by existing Trustees to the whole board via a nomination process. The board considers their suitability considering current vacancies and the balance of skills and diversity of existing Trustees. Nominations are subject to election.
There is a maximum limit to the number of years a Trustee may serve, although this may be extended in exceptional circumstances, and the Board regularly reviews the range of skills it needs. New Trustees are encouraged to undertake the induction course for new Trustees. Trustees are conscious of the need to keep up to date with current legislation and issues and are kept informed about relevant training courses. During the financial year day-to-day management of the Charity was delegated to the Chief Executive, supported by other senior staff.
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## **FOR THE YEAR ENDED 31 AUGUST 2022**
## **Remuneration of key management**
The Trustees consider that the Board of Trustees and the senior management team comprise the key management personnel of the Charity in charge of directing and controlling, running and operating the Charity on a day-to-day basis. All Trustees give of their time freely and no Director received remuneration in the year. Details of D
The pay of the key management personnel is reviewed annually. In view of the nature of the Charity, the Trustees periodically benchmarks against pay levels in other charities. The remuneration benchmark is the midpoint of the range paid for similar roles in similar charities and sizes.
## **responsibilities for the financial statements**
The Trustees, who are also Directors of Cumberland Lodge for the purpose of company law, are responsible Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year and not approve the financial statements unless they are satisfied that the financial statements give a true and fair view of the state of the affairs of the Charity as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the year then ended.
In preparing those financial statements which give a true and fair view, the Trustees should follow best practice and:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to assume that the charitable company will continue on that basis
The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and which enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees 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. The Trustees are responsible for the maintenance and integrity of the corporate and financial
Each of the Directors, who held office at t is no information of which they are aware which is relevant to the audit but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are made aware of such information.
Approved by the Trustees on ________ March 2023 and signed on their behalf by:
......................................
**Baroness Usha Prashar**
....................................
**David Matthews**
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## **FOR THE YEAR ENDED 31 AUGUST 2022**
## **to the members of Cumberland Lodge**
## **Opinion**
We have audited the financial statements of Cumberland Lodge for the year ended 31 August 2022 which comprise the Consolidated Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Consolidated 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, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- 31 August 2022 the 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.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable onsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the 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 T 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 group'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 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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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## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- D
- report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the D Report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group charitable company and its environment obtained incorporates the strategic report and the D
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charitable company; or
- the parent charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of T
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of Trustees for the financial statements**
As explained more fully in the T set out on page 10, 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 T related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the
related to going
## **bilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free includes our opinion. Reasonable assurance is a high level of assurance, but it 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:
that the principal risks of non-compliance with laws and regulations related to Health and Safety Acts and GDPR and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as include the Companies Act 2006 and the Charities Act 2011, and consider other factors such as payroll tax and VAT.
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## **FOR THE YEAR ENDED 31 AUGUST 2022**
statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:
- inspecting correspondence with regulators and tax authorities;
- discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
- e
- identifying and testing journals, in particular journal entries posted with unusual account combinations or with unusual descriptions; and
- challenging assumptions and judgements made by management in their critical accounting estimates
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial www.frc.org.uk/auditorsresponsibilities. This description forms part of our
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's 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 members, as a body, for our audit work, for this report, or for the opinions we have formed.
Kathryn Burton (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditors
27 ____ March 2023
10 Queen Street Place, London EC4R 1AG
14
## **FOR THE YEAR ENDED 31 AUGUST 2022**
|||**Unrestricted**|**Restricted**|**Total**|**Total**|
|---|---|---|---|---|---|
|||**Funds**|**Funds**|**2022**|**2021**|
||**Notes**|**£**|**£**|**£**|**£**|
|**INCOME:**||||||
|Donations, legacies and grants|2|44,798|-|44,798|449,990|
|**Charitable activities**||||||
|Cumberland Lodge conferences||79,492|-|79,492|20,975|
|Student and training conferences||1,437,495|-|1,437,495|184,609|
|**Other trading activities**||||||
|Accommodation income||1,028,392|-|1,028,392|287,412|
|Rents and lettings||34,594|-|34,594|35,928|
|Investments||96,736|-|96,736|94,020|
|Other income|2|20,966|-|20,966|307,556|
|||---------------------|-------------------|---------------------|---------------------|
|**Total income**||2,742,473|-|2,742,473|1,380,490|
|**EXPENDITURE:**||||||
|**Costs of raising funds**||||||
|Trading costs||641,883|3,853|645,736|141,478|
|**Expenditure on charitable activities**||||||
|Cumberland Lodge conferences||230,832|18,056|248,888|333,693|
|Student and training conferences||1,448,997|7,345|1,456,342|1,447,791|
|||---------------------|-------------------|---------------------|---------------------|
|**Total expenditure**|3|2,321,712|29,254|2,350,966|1,922,962|
|||---------------------|---------------------|---------------------|---------------------|
|||420,761|(29,254)|391,507|(542,472)|
|(Losses)/Gains on investments, net of
charges||(163,690)|-|(163,690)|542,716|
|||--------------------|-------------------|---------------------|---------------------|
|**Net movement in funds**||257,071|(29,254)|227,817|244|
|Funds brought forward||4,634,191|60,670|4,694,861|4,694,617|
|||----------------------|-------------------|----------------------|----------------------|
|Funds carried forward||4,891,262|31,416|4,922,678|4,694,861|
|||==========|=========|==========|==========|
The notes on pages 18 - 31 form part of these financial statements. The statement of financial activities includes all gains and losses recognised in the year. All amounts derive from continuing activities.
Full comparative figures for the year ended 31 August 2021 are shown in note 19.
15
## **AT 31 AUGUST 2022**
|||**2022**|**2022**|**2021**||
|---|---|---|---|---|---|
||**Notes**|**Group**|**Charity**|**Group**|**Charity**|
|||**£**|**£**|**£**|**£**|
|**FIXED ASSETS**||||||
|Tangible assets|7|1,028,579|1,028,579|1,217,468|1,217,468|
|Investments|8|3,730,006|3,730,006|3,543,696|3,543,696|
|||----------------------|----------------------|----------------------|----------------------|
|||4,758,585|4,758,585|4,761,164|4,761,164|
|**CURRENT ASSETS**||||||
|Stock||22,283|13,955|16,245|7,948|
|Debtors|9|367,278|245,852|154,636|168,624|
|Short term deposits and cash in hand||465,557|198,106|383,339|133,062|
|||----------------------|----------------------|----------------------|----------------------|
|||855,118|457,913|554,220|309,634|
|**CURRENT LIABILITIES**||||||
|Creditors: amounts falling due||||||
|within one year|10|(691,025)|(561,738)|(620,523)|(427,537)|
|||----------------------|----------------------|----------------------|----------------------|
|**NET CURRENT LIABILITIES**||164,093|(103,825)|(66,303)|(117,903)|
|||----------------------|----------------------|----------------------|----------------------|
|**NET ASSETS**||4,922,678|4,654,760|4,694,861|4,643,261|
|||==========|==========|==========|==========|
|**FUNDS**||||||
|**Unrestricted general funds**|12/13|3,416,792|3,148,874|2,950,593|2,898,993|
|**Restricted funds**|12/14|31,416|31,416|60,670|60,670|
|**Designated funds**|15|1,474,470|1,474,470|1,683,598|1,683,598|
|||----------------------|----------------------|----------------------|----------------------|
|**TOTAL FUNDS**||4,922,678|4,654,760|4,694,861|4,643,261|
|||==========|==========|==========|==========|
The surplus of the parent charity was £11,499. This comprises a deficit of £40,103 (2021: £51,357) plus donated profits from Cumberland Lodge Enterprises Ltd of £51,602 (2021: £3,702).
24 Approved and authorised for issue on ____ March 2023 by the Trustees and signed on their behalf by:
............................. Baroness Usha Prashar
............................
David Matthews
The notes on pages 18 - 31 form part of these financial statements.
16
## **STATEMENT OF CASH FLOWS AND CONSOLIDATED STATEMENT OF CASH FLOWS**
## **AT 31 AUGUST 2022**
||**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|**Net cash provided / (used) by operating activities**|350,925|(305,163)|
|**Cash flows from investing activities**|||
|Investment income|96,736|94,020|
|Purchase of tangible fixed assets|(15,443)|(17,173)|
|Sale of tangible fixed assets|-|1,828|
|Purchase of investments|(350,000)|(150,000)|
|Sale of investments|-|520,000|
||---------------------|---------------------|
|**Cash (used in) / provided by investing activities**|(268,707)|448,675|
||---------------------|---------------------|
|**Change in cash and cash equivalents in the year**|82,218|143,512|
|Cash and cash equivalents at the beginning of the|||
|year|383,339|239,827|
||---------------------|---------------------|
|**TOTAL CASH AND CASH EQUIVALENTS AT THE**|||
|**END OF THE YEAR**|465,557|383,339|
||==========|==========|
|**RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH INFLOW FROM**||**OPERATING**|
|**ACTIVITIES**|||
|**Net income for the year**|227,817|244|
|**Adjustments for:**|||
|Depreciation charge|204,332|230,463|
|Losses / (gains) on investments|163,690|(542,716)|
|Income from investments|(96,736)|(94,020)|
|(Increase) / decrease in debtors|(212,642)|(32,003)|
|(Increase) / Decrease in stock|(6,038)|3,124|
|Increase / (decrease) in creditors|70,502|129,745|
||---------------------|---------------------|
|**Cash used in investing activities**|350,925|(305,163)|
||==========|==========|
17
**NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 AUGUST 2022**
## **1. ACCOUNTING POLICIES**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **Basis of preparation**
The financial statements have been prepared in accordance with 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) (Second Edition, effective 1 January 2019), (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Cumberland Lodge meets the definition of a public benefit entity under FRS 102. The registered office and company number can be found page 2. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.
In preparing the accounts, the Trustees have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 the restatement of comparative items was required.
## **Preparation of accounts on a going concern basis**
Trustees are content that sufficient cash and reserves are available to withstand any adverse financial risks or events that might reasonably crystallize for at least 12 months from the date of approving these financial statements for publication. Trustees are satisfied therefore satisfied that three are no material uncertainties regarding going concern, and so the going concern basis of preparation is considered appropriate.
## **Group financial statements**
The financial statements consolidate the results of the Charity and its wholly owned subsidiary Cumberland Lodge Enterprises Limited on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the Charity has not been presented because the Charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.
## **Income recognition**
All income, including donations and legacies, is recognised once the Charity is entitled to the income, the amount of income receivable can be measured reliably and receipt is probable.
## **Grants**
Grants are recognised in full in the statement of financial activities in the year in which the Charity is entitled to the income, the amount of income receivable can be measured reliably and receipt is probable.
Grants include Government grant income relating to the Coronavirus Job Retention Scheme (CJRS) and are recognised as receivable in line with the period that the expense has been incurred.
## **Income from charitable activities**
Income from charitable activities is recognised as earned when the related services are provided. Income from other trading activities is recognised as earned when the related services and goods are provided.
## **Investment income**
Investment income is recognised on a receivable basis once the amounts can be measured reliably.
18
**NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 AUGUST 2022**
## **1. ACCOUNTING POLICIES (continued)**
## **Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Costs of raising funds comprises the direct and allocated costs of the trading subsidiary, and investment management costs
- Expenditure on charitable activities comprises the direct and allocated costs of Cumberland Lodge conferences and student and training conferences
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **Allocation of costs**
Expenditure is summarised under functional headings on a direct and indirect cost basis. The apportionment of indirect costs is based on estimates of the relative use of Cumberland Lodge resources.
## **Operating leases**
Rental charges are charged on a straight-line basis over the life of the lease.
## **Financial instruments**
The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
## **Investments**
Investments are a form of basic financial instrument and are shown in the financial statements at market value. Movements in the market values of investments are shown as unrealised gains and losses in the Statement of Financial Activities.
Profits and losses on the realisation of investments are shown net of costs (which are deducted at source) as realised gains and losses in the Statement of Financial Activities. Realised gains and losses on investments are calculated between sales proceeds and their opening carrying values or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
## **Fixed assets**
Fixed assets are stated at cost or deemed cost (donated valuation at estimated fair value) less accumulated depreciation and impairment losses. Assets costing more than £1,500 are capitalised.
Depreciation is calculated to write off the costs of the fixed asset by equal instalments as follows:
Motor vehicles 4 years Furniture, fittings and equipment 3 to 10 years Leasehold improvements 10 to 20 years
19
**NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 AUGUST 2022**
## **1. ACCOUNTING POLICIES (continued)**
## **Cash**
Cash represents cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
## **Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **Creditors and provisions**
Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **Stock**
Stocks are valued at the lower of cost and net realisable value.
## **Funds**
Unrestricted funds are donations and other incoming resources receivable or generated for the objects of the Charity, which do not fall to be recognised as restricted funds.
Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.
Restricted funds are those funds which are to be used in accordance with specific instructions imposed by the donor or trust deed.
## **Employee benefits**
## **Short term benefits**
Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.
## **Employee termination benefits**
Termination benefits are accounted for on an accrual basis and in line with FRS 102.
- **Pension scheme**
Cumberland Lodge operates a defined contribution pension scheme for the benefit of its employees. The assets of the scheme are held independently from those of Cumberland Lodge in an independently administered fund. The pension costs charged in the financial statements represents the contributions payable during the year.
## **Critical accounting judgements and key sources of estimation uncertainty**
In the application of the accounting policies, Directors are required to make judgements, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods.
In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.
20
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 AUGUST 2022**
|**2.**|**INCOME**|||**2022**|**2021**|
|---|---|---|---|---|---|
||**Voluntary income**|||**£**|**£**|
||Donations, legacies and grants|||44,798|37,273|
||Coronavirus Job Retention Scheme grant|||-|345,645|
||Coronavirus local authority support grants|||-|67,072|
|||||-------------------|-------------------|
|||||44,798|449,990|
|||||=========|==========|
||**Other income**|||||
||Business interruption insurance claim|||-|300,000|
||Other income|||20,966|7,556|
|||||-------------------|-------------------|
|||||20,966|307,556|
|||||=========|==========|
|||**2022**|**2022**|**2022**|**2021**|
|**3.**|**ANALYSIS OF EXPENDITURE**|**Direct**|**Support**|**Total**|**Total**|
|||**costs**|**costs**|||
|||**£**|**£**|**£**|**£**|
||Fundraising|-|-|-|7,554|
||Charitable activities|968,143|737,086|1,705,229|1,773,930|
||Trading|328,656|317,081|645,737|141,478|
|||--------------------|--------------------|-------------------|-------------------|
||**Group total**|1,296,799|1,054,167|2,350,966|1,922,962|
|||==========|=========|=========|=========|
|||**Trading**|**Charitable**|**2022**|**2021**|
||||**activities**|**Total**|**Total**|
||**Direct costs**|£|£|£|£|
||Administration|56|8,180|8,236|-|
||Advertising & promotion|-|700|700|3,090|
||Bank & finance costs|(239)|-|(239)|2,176|
||Buildings costs|160|372|532|-|
||Cumberland Lodge conference costs|9,571|10,880|20,451|6,993|
||Hospitality costs|75,980|171,233|247,213|57,440|
||IT equipment & support|-|300|300|200|
||Office supplies|70|301|371|507|
||Professional fees|7,061|1,119|8,180|13,403|
||Repairs & maintenance|553|1,284|1,837|962|
||Scholarship scheme|-|10,167|10,167|9,711|
||Staff costs|222,223|733,589|955,812|872,378|
||Trading expenses|13,092|29,356|42,448|-|
||Travel & subsistence|129|662|791|212|
|||----------------|--------------------|-------------------|-------------------|
||**Group total**|328,656|968,143|1,296,799|967,072|
|||========|=========|=========|==========|
21
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 AUGUST 2022**
||**Trading**|**Charitable**|**2022**|**2021**|
|---|---|---|---|---|
|||**activities**|**Total**|**Total**|
|**Support costs**|£|£|£|£|
|Administration|15,687|36,464|52,151|17,683|
|Advertising & promotion|3,058|7,111|10,169|7,578|
|Bank & finance costs|1,655|3,847|5,502|4,165|
|Buildings costs|49,909|116,017|165,926|165,069|
|Cumberland Lodge conference costs|31|71|102|-|
|Depreciation|61,460|142,872|204,332|230,463|
|Hospitality costs|829|1,927|2,756|-|
|IT equipment and support|13,866|32,233|46,099|44,340|
|Motor expenses|822|1,911|2,733|4,523|
|Office supplies|4,759|11,063|15,822|9,743|
|Professional fees|13,638|31,703|45,341|19,501|
|Repairs & maintenance|28,931|67,253|96,184|66,495|
|Scholarship scheme|10|22|32|-|
|Staff costs|122,275|284,239|406,514|385,787|
|Travel & subsistence|151|353|504|543|
||----------------|--------------------|-------------------|-------------------|
|**Group total**|317,081|737,086|1,054,167|955,890|
||========|=========|=========|==========|
Included within professional fees above were Governance costs of £18,422 (2021: £17,157) relating to
|**4.**|**NET INCOME FOR**|**NET INCOME FOR**|**THE YEAR**|**THE YEAR**|**THE YEAR**|**THE YEAR**|**2022**|**2021**|
|---|---|---|---|---|---|---|---|---|
||||||||**£**|**£**|
||This|is stated after charging|||||||
|||||||irrecoverable VAT):|||
|||Audit|||||16,773|15,540|
|||Other Services|||||1,649|1,617|
||||||||------------------|------------------|
||||||||18,422|17,157|
||||||||========|========|
||Expenses reimbursed and paid on behalf of Trustees||||||-|-|
||||||||========|========|
No Trustee received remuneration in the current or prior year.
22
**NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 AUGUST 2022**
## **5. SUBSIDIARIES**
The wholly-owned subsidiary Cumberland Lodge Enterprises Limited is incorporated in the UK (company number: 05389873, registered office: Cumberland Lodge, The Great Park, Windsor, SL4 2HP) and provides conference facilities for professional bodies, charities and other organisations. The subsidiary pays all its profits to Cumberland Lodge under the Gift Aid scheme. The summary financial performance of the subsidiary alone is:
|||**2022**|**2021**|
|---|---|---|---|
|||**£**|**£**|
||Turnover|914,460|203,545|
||Cost of sales and administration costs|(646,540)|(151,943)|
|||--------------------|--------------------|
||Net profit|267,920|51,602|
||Brought forward
retained in subsidiary|51,602|3,702|
||Gift-aided to the Charity in year|(51,602)|(3,702)|
|||--------------------|--------------------|
||Retained in subsidiary|267,920|51,602|
|||=========|=========|
||The current assets and liabilities of the subsidiary were:|||
||Current assets|484,678|309,564|
||Current liabilities|(216,758)|(427,468)|
|||--------------------|--------------------|
||Total net assets|267,920|51,602|
|||=========|=========|
||Aggregate share capital and reserves|267,920|51,602|
|||=========|=========|
|**6.**|**STAFF COSTS AND NUMBERS**|||
|||**2022**|**2021**|
|||**£**|**£**|
||**Staff costs were as follows:**|||
||Salaries and wages|1,128,797|1,063,811|
||Social security costs|111,778|96,171|
||Pension contributions|47,493|98,183|
|||---------------------|---------------------|
|||1,288,068|1,258,165|
|||==========|==========|
||The number of employees whose emoluments for the|||
||year fell within the following bands were:|**Number**|**Number**|
||£80,001 - £90,000|0|1|
||£90,001 - £100,000|1|0|
|||==========|==========|
These employees are accruing pension contributions totalling £4,467 (2021: £8,702). The total employee benefits (including pension contributions and employer s national insurance) of the key management personnel of the Group and Charity were £243,219 (2021: £233,657).
23
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 AUGUST 2022**
||**2022**|**2021**|
|---|---|---|
||**Number**|**Number**|
|The average number of permanent employees during the year was as follows:|||
|Programme|5|5|
|Hospitality|30|28|
|Buildings & maintenance|5|5|
|Administration|5|6|
||------------|------------|
||45|44|
||======|======|
The full-time equivalent number of permanent staff in 2022 was 36 (2021: 35). An average of 19 (2021: 4) casual hospitality employees were also employed.
|**7.**|**FIXED ASSETS (GROUP AND**|**CHARITY)**||||
|---|---|---|---|---|---|
|||**Improvements**|**Furniture,**|**Motor**|**Total**|
|||**to property**|**fittings &**|**Vehicles**||
||||**equipment**|||
|||**£**|**£**|**£**|**£**|
||**Cost**|||||
||At 1 September 2021|3,318,657|1,730,983|37,880|5,087,520|
||Additions|2,820|12,623|-|15,443|
||Disposals|-|-|-|-|
|||--------------------|--------------------|-------------------|---------------------|
||**Balance at 31 August 2022**|3,321,477|1,743,606|37,880|5,102,963|
|||--------------------|--------------------|-------------------|--------------------|
||**Accumulated depreciation**|||||
||At 1 September 2021|2,421,564|1,417,825|30,663|3,870,052|
||Charge for the year|112,627|85,520|6,185|204,332|
||Disposals|-|-|-|-|
|||--------------------|--------------------|-------------------|--------------------|
||**Balance at 31 August 2022**|2,534,191|1,503,345|36,848|4,074,384|
|||--------------------|--------------------|-------------------|--------------------|
||**Net Book Value**|||||
||C/f at 31 August 2022|787,286|240,261|1,032|1,028,579|
|||==========|=========|=========|==========|
||B/f at 1 September 2021|897,093|313,158|7,217|1,217,468|
|||==========|=========|=========|==========|
24
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 AUGUST 2022**
|**8.**|**INVESTMENTS (GROUP AND CHARITY)**|||**2022**|**2021**|
|---|---|---|---|---|---|
|||||**£**|**£**|
||Listed investments:|||||
||Market value at 1 September|||3,543,696|3,370,980|
||Additions|||350,000|150,000|
||Disposals|||-|(520,000)|
||Net gains /(losses)|||(163,690)|542,716|
|||||------------------|------------------|
||Market value at 31 August|||3,730,006|3,543,696|
|||||==========|==========|
||Historical cost as at 31 August|||2,828,492|2,478,492|
|||||==========|==========|
|**9**.|**DEBTORS: amounts falling due**|**2022**||**2021**||
||**within one year**|**Group**|**Charity**|**Group**|**Charity**|
|||**£**|**£**|**£**|**£**|
||Accommodation debtors|290,501|169,075|60,100|48,124|
||Other debtors and prepayments|76,777|76,777|94,536|94,535|
||Amounts due from subsidiary|-|-|-|25,965|
|||--------------------|--------------------|--------------------|--------------------|
|||367,278|245,852|154,636|168,624|
|||=========|=========|=========|=========|
|**10.**|**CREDITORS: amounts falling due**|**2022**||**2021**||
||**within one year**|**Group**|**Charity**|**Group**|**Charity**|
|||**£**|**£**|**£**|**£**|
||Trade creditors|76,982|76,982|25,317|25,317|
||Other taxation and social security|100,178|31,455|44,712|17,705|
||Other creditors, accruals and deferred|||||
||income|513,865|365,828|550,494|384,515|
||Amounts owed to subsidiary||87,473|||
|||--------------------|--------------------|--------------------|--------------------|
|||691,025|561,738|620,523|427,537|
|||=========|=========|=========|=========|
|**11.**|**ANALYSIS OF DEFERRED INCOME**|**2022**||**2021**||
|||**Group**|**Charity**|**Group**|**Charity**|
|||**£**|**£**|**£**|**£**|
||Deferred income at 1 September|438,954|280,825|227,717|134,943|
||Released during the year|(438,954)|(280,825)|(227,717)|(134,943)|
||Applied during the year|374,682|233,571|438,954|280,825|
|||-------------------|------------------|-------------------|------------------|
||Deferred income at 31 August|374,682|233,571|438,954|280,825|
|||=========|=========|=========|========|
25
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 AUGUST 2022**
|**12.**|**ANALYSIS OF GROUP NET**|**Restricted**|**General**|**Total**|
|---|---|---|---|---|
||**ASSETS**||||
||**BETWEEN FUNDS**|**Funds**|**Funds**|**Funds**|
|||**£**|**£**|**£**|
||**2022**||||
||Fixed assets|19,842|1,008,737|1,028,579|
||Investments|-|3,730,006|3,730,006|
||Current assets|11,574|843,544|855,118|
||Current liabilities|-|(691,025)|(691,025)|
|||-----------------|---------------------|----------------------|
||Net assets at 31 August|31,416|4,891,262|4,922,678|
|||========|==========|==========|
||**2021**||||
||Fixed assets|23,695|1,193,773|1,217,468|
||Investments|-|3,543,696|3,543,696|
||Current assets|36,975|517,245|554,220|
||Current liabilities|-|(620,523)|(620,523)|
|||-----------------|---------------------|----------------------|
||Net assets at 31 August|60,670|4,634,191|4,694,861|
|||========|==========|==========|
## **13. ANALYSIS OF UNRESTRICTED GENERAL FUNDS**
||**1**|**September**|**Surplus/**|**Gains/**|**Transfers**|**31 August**|
|---|---|---|---|---|---|---|
||||**(loss)**|**(losses)**|||
|**Group**||**£**|**£**|**£**|**£**|**£**|
|**2022**|||||||
|General funds||2,950,593|420,761|(163,690)|209,128|3,416,792|
|||========|========|========|========|========|
|**2021**|||||||
|General funds||1,823,390|(564,502)|542,716|1,148,989|2,950,593|
|||========|========|========|========|========|
|**Charity**|||||||
|**2022**|||||||
|General funds||2,898,993|204,443|(163,690)|209,128|3,148,874|
|||========|========|========|========|========|
|**2021**|||||||
|General funds||1,818,189|(610,901)|542,716|1,148,989|2,898,993|
|||========|========|========|========|========|
26
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 AUGUST 2022**
## **14. ANALYSIS OF RESTRICTED FUNDS**
||**1 September**|**Income**|**Expenditure**|**31 August**|
|---|---|---|---|---|
||**£**|**£**|**£**|**£**|
|**2022**|||||
|Mews lighting project*|6,958|-|(500)|6,458|
|Chapel capital appeal*|6,410|-|(1,908)|4,502|
|Dining room furniture*|6,456|-|(945)|5,511|
|Basement refurbishment*|3,870|-|(500)|3,370|
|Scholarship scheme|1,830|-|-|1,830|
|Bursary fund|10,000|-|(2,199)|7,801|
|Conference grants|5,146|-|(5,146)|-|
|Project funding|20,000|-|(18,056)|1,944|
||--------------------|-----------------|------------------|--------------------|
|**Group total**|60,670|-|(29,254)|31,416|
||=========|========|========|=========|
|**2021**|||||
|Mews lighting project*|7,458|-|(500)|6,958|
|Chapel capital appeal*|8,318|-|(1,908)|6,410|
|Dining room furniture*|5,926|530|-|6,456|
|Basement refurbishment*|4,370|-|(500)|3,870|
|Scholarship scheme|1,830|-|-|1,830|
|Bursary fund|10,738|-|(738)|10,000|
|Conference grants|-|5,960|(814)|5,146|
|Project funding||20,000|-|20,000|
||--------------------|-----------------|------------------|--------------------|
|**Group total**|38,640|26,490|(4,460)|60,670|
||=========|========|========|=========|
## **Capital funds**
As of 31 August 2022, these funds have been spent in full. However, expenditure is spread over the depreciation, and do not represent unspent funds. Excluding capital funds, the balance of restricted funds not spent is £11,575 (2021: £36,975).
## **Capital funds* comprise:**
Mews lighting Lighting improvement within the conference rooms in the Mews. Chapel capital appeal Chapel refurbishment Dining room furniture Individual donations towards the cost of new furniture. Basement refurbishment Refurbishing the basement for use as a recreational space for guests.
## **Non-capital funds comprise:**
Scholarship scheme Support for scholars from the North East of England. Bursary fund Towards the costs of students in financial hardship. Conference grants Grants for specific Cumberland Lodge conferences. Project funding Support for preliminary work on social mobility for young people from disadvantaged backgrounds
27
**NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 AUGUST 2022**
## **15. DESIGNATED FUNDS**
|||**Balance at 1**|**Transfers**|**Balance at**|
|---|---|---|---|---|
|||**September**||**31 August**|
|||**2021**||**2022**|
|||**£**|**£**|**£**|
|Tangible fixed assets||1,217,468|(188,889)|1,028,579|
|Property fund||466,130|(20,239)|445,891|
|||--------------------|------------------|--------------------|
|**Total**|**Group and Charity**|1,683,598|(209,128)|1,474,470|
|||=========|========|=========|
## **Tangible fixed assets**
The fund represents assets which are essential for the provision of charitable activities. Funds transferred represent depreciation charged and the sale of an asset during the year.
## **Property fund**
In respect of our duties as custodians of the buildings here at Cumberland Lodge, the Trustees consider that it is prudent to retain a property fund, available both for capital improvements and repairs and maintenance. In 2020, £500,000 was designated for this purpose, and of this £54,109 has so far been spent. A detailed 10-year maintenance and repairs plan is kept and updated as quotations are sought and work carried out.
## **16** . **TAXATION**
The Charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The Charity is not exempt from VAT, the irrecoverable part of which is included with the expenses to which it relates on the Statement of Financial Activities.
## **17** . **RELATED PARTY TRANSACTIONS**
During the financial year the following transactions took place between the Charity and its wholly-owned subsidiary:
Cumberland Lodge recharged £626,491 (2020: £141,478) to Cumberland Lodge Enterprises Limited during the year, in respect of operating expenses.
Cumberland Lodge Enterprises Limited gift aids 100% of its taxable profits to the parent company. During the financial year ended 31 August 2022 it paid £51,602 (2021: £3,702) of gift aid relating to profits for the previous financial year.
At 31 August 2022 £87,473 was owed by the Charity to its subsidiary (2021: £25,965 owed by subsidiary to the Charity.
Canon Dr Edmund Newell is Vice-Patron of Windsor Festival Society, from whom the Charity generated £255 of income during the year (2021: nil), and Governor of The Royal School from whom the Charity generated £84 of income (2021: nil) No balances in relation to these transactions remained unpaid at the year end (2021: nil).
There were no other transactions with related parties during the year ended 31 August 2022 (2021: nil).
28
**NOTES TO THE FINANCIAL STATEMENTS (continued)**
**FOR THE YEAR ENDED 31 AUGUST 2022**
## **18. OPERATING LEASES**
At the year end, the Group and Charity were committed to the following future minimum lease payments in respect of operating leases:
||**Land and buildings**|**Land and buildings**|**Land and buildings**|**Land and buildings**|
|---|---|---|---|---|
||**Group**|**Charity**|**Group**|**Charity**|
||**2022**|**2022**|**2021**|**2021**|
||**£**|**£**|**£**|**£**|
|In less than one year|20,100|20,100|9,810|9,810|
|In one to five years|30,150|30,150|-|-|
||-----------------|-----------------|-----------------|-----------------|
||50,250|50,250|9,810|9,810|
||=========|========|=========|========|
||**Office equipment**||**Office equipment**||
||**Group**|**Charity**|**Group**|**Charity**|
||**2022**|**2022**|**2021**|**2021**|
||**£**|**£**|**£**|**£**|
|In less than one year|-|-|239|239|
|In one to five years|-|-|-|-|
||-----------------|-----------------|-----------------|-----------------|
||-|-|239|239|
||========|=======|========|=======|
29
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 AUGUST 2022**
## **19** . **COMPARATIVE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (2021):**
|||**Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|---|
|||**Funds**|**Funds**|**2021**|
||**Notes**|**£**|**£**|**£**|
|**INCOME:**|||||
|Donations, legacies and
grants||423,500|26,490|449,990|
|**Charitable activities**|||||
|Cumberland Lodge
conferences||20,975|-|20,975|
|Student and training
conferences||184,609|-|184,609|
|**Other trading activities**|||||
|Accommodation income||287,412|-|287,412|
|Rents and lettings||35,928|-|35,928|
|Investments||94,020|-|94,020|
|Other||307,556|-|307,556|
|||---------------------|-------------------|---------------------|
|||1,354,000|26,490|1,380,490|
|**Total income**|||||
|**EXPENDITURE:**|||||
|**Costs of raising funds**|3|138,570|2,908|141,478|
|Trading costs|||||
|**Expenditure on charitable**|||||
|**activities**|3||||
|Cumberland Lodge
conferences||332,955|738|333,693|
|Student and training
conferences||1,446,977|814|1,447,791|
|**Total expenditure**|3|---------------------|-------------------|---------------------|
|||1,918,502|4,460|1,922,962|
|||---------------------|---------------------|---------------------|
|||(564,502)|22,030|(542,472)|
|**Net gains on investments**|||||
|||542,716|-|542,716|
|Net movement in funds|||||
|||--------------------|-------------------|---------------------|
|**Funds brought forward**||(21,786)|22,030|244|
|**Funds at 31 August 2021**||4,655,977|38,640|4,694,617|
|||==========|=========|==========|
30
**FOR THE YEAR ENDED 31 AUGUST 2022**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **20. POST BALANCE SHEET EVENT**
The terms under which our charity Cumberland Lodge occupies the premises known as Cumberland Lodge are set out in an agreement known as a Royal Warrant. The death of Queen Elizabeth II on 8[th] September 2022 will trigger a review of the terms of the Royal Warrant. Trustees are of the view that the most likely outcome of any such review, the timing of which is still unclear, is that the charity will continue to enjoy occupation of the premises under substantially the same terms as previously.
31