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2022-06-30-accounts

Charity Registration No. 1111049 Company Registration No. 05433717

HISTORIC HOUSES FOUNDATION

TRUSTEES’ REPORT AND ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2022

HISTORIC HOUSES FOUNDATION

Contents

Legal and administrative information 1
Trustees’ report 2 – 6
Statement of Trustees’ responsibilities 7
Independent auditor’s report 8 – 9
Statement of financial activities 10
(including summary income and expenditure account)
Balance sheet 11
Cash flow statement 12
Notes to the accounts 13 – 23

HISTORIC HOUSES FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Norman Hudson OBE (Chairman)
Nicholas Barber CBE
Richard Compton
Sir Andrew Jardine Bt.
Mary King
Jeremy Musson
Sir John Parsons KCVO
Oliver Pearcey
Matthew Rice
Secretary David Price
Charity number 1111049
Company number 05433717
Principal address Sheephouse Farm
Uley Road
Dursley
Gloucestershire
GL11 5AD
Registered office Sheephouse Farm
Uley Road
Dursley
Gloucestershire
GL11 5AD
Independent Auditors Randall and Payne LLP (incorporating Little and Company)
Chargrove House
Shurdington Road
Cheltenham
Gloucestershire
GL51 4GA
Bankers Barclays Bank plc
99 Hatton Garden
London
EC1N 8DN
Solicitors Farrer & Co LLP
66 Lincoln's Inn Fields
London
WC2A 3LH
Investment Managers Cazenove Capital
1 London Wall Place
London
EC2Y 5AU

HISTORIC HOUSES FOUNDATION TRUSTEES’ REPORT FOR THE YEAR ENDED 30 JUNE 2022

The Trustees, who are also directors of the Charity for the purposes of the Companies Act, present their report and accounts for the year ended 30 June 2022.

The accounts have been prepared in accordance with the accounting policies set out and comply with the Charity's Memorandum and Articles of Association, the Charities Act 2011, the Companies Act 2006 and 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 (FRS102) (effective 1 January 2015).

The objects of Historic Houses Foundation are:

Structure, governance and management

Historic Houses Foundation is a registered Charity (registration number 1111049) and is constituted as a company limited by guarantee (registration number 05433717). Its governing document is its Memorandum and Articles of Association incorporated 22 April 2005 (as amended by Special Resolutions dated 21 August 2005 and 20 February 2019) as amended on 23 April 2019, and its objects and powers are set out therein. Members of the company are admitted at the discretion of the Trustees and may be required to contribute not more than £10 in the event of the charitable company being wound up.

During the accounting period, the Charity employed one member of staff.

The Trustees, who are also the directors for the purpose of company law and who served during the year were:

Norman Hudson OBE (Chairman) Nicholas Barber CBE Richard Compton Sir Andrew Jardine Bt. Mary King Jeremy Musson Sir John Parsons KCVO Oliver Pearcey Matthew Rice

Trustees can be nominated to the Board as set out in the Articles of Association. The number of Trustees shall not be less than five, but (unless otherwise determined by Ordinary Resolution) shall not be subject to any maximum. The Board of Trustees seeks to ensure that representation on the Board is wide-ranging. The Trustees bring a mix of skills to the Board, providing heritage, conservation, financial and corporate experience. Training and induction of new Trustees is undertaken on an informal and continual basis through discussions with existing Trustees, attendance at board meetings and site visits. The Trustees meet quarterly for board meetings and at least two of the Trustees carry out site visits prior to a grant being made and following completion of a project.

The Trustees receive no remuneration but may be paid all reasonable travelling, hotel and other expenses properly incurred by them in connection with the discharge of their duties.

Risk management

The potential risks facing the Charity have been assessed by the Board of Trustees. Two of particular importance have been identified. The first, the loss of the sole administrator at short notice, has been mitigated by the creation of a detailed procedures manual and other documentation. These procedures include the monitoring of IT security.

HISTORIC HOUSES FOUNDATION TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 30 JUNE 2022

Risk management (continued)

The second is the risk that investments do not generate the expected returns. In this event the Trustees would reduce the amount of grants in subsequent years and/or draw on capital. In addition, a cash reserve is held by the investment managers in order to avoid the need to sell investments in the portfolio at short notice.

Public benefit

The Trustees have applied the guidance from The Charity Commission relating to public benefit when assessing grant applications. Public benefit is inherent in the objects of the Charity as set out above and, when considering a project’s eligibility for support, Trustees require that public access arrangements would be closely aligned to those specified for recipients of an Historic England grant.

Achievements and performance

Since the Charity started making grants in February 2006, the number of applications for funding has steadily increased. At the end of the financial year the Charity has supported 313 projects with grant offers totaling £16.88million. A bid to Historic England for the Grants for Programmes of Major Works strand of the Heritage Stimulus Fund (phase2), part of the Government’s Cultural Recovery Fund was successful and in September it was confirmed that Historic Houses Foundation would receive a further grant of £2.2 million to distribute to 13 projects.

No. of projects Total granted Average grant Paid at 30/6/22 Balance Due
approved in year £
£
£		 £
General Fund Grants
2006-07 4
 605,000 151,250 605,000 -
2007-08 11
 814,990 74,090 814,990 -
2008-09 12 841,263 70,105 841,263 -
2009-10 18 654,509 36,362 633,509 21,000
2010-11 17 1,008,003 59,294 938,003 70,000
2011-12 13
 565,376 43,490 565,376 -
2012-13 21
 983,515 46,834 978,640 4,875
2013-14 25
 1,422,597 56,904 1,337,868 84,729
2014-15 17
 804,445 47,320 697,745 106,700
2015-16 19
 788,628 41,507 775,189 13,439
2016-17 21 524,399 24,971 504,399 20,000
2017-18 18 568,497 31,583 398,497 170,000
2018-19 26 797,701 30,681 562,901 234,800
2019-20 16
 513,540 32,096 348,240 165,300
2020-21 20
 470,146 23,507 344,146 126,000
2021-22 9
 396,000 44,000 82,500 313,500
267 11,758,609 10,428,266 1,330,343
Restricted Fund Grants
Heritage Conservation Trust
2019-20 9 43,073 4,786 25,437
 17,636
2020-21 4 21,368 5,342 21,368 -
2021/22 2 8,896 4,448 1,750 7,146
15 73,337 48,555 24,782
Heritage Stimulus Fund
2020-21 18 2,818,500 156,583 2,818,500 -
2021-22 13 2,230,992 171,615 2,230,992 -
31 5,049,492 5,049,492 -
Totalgrants 313 16,881,438 15,526,313 1,355,125

HISTORIC HOUSES FOUNDATION TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 30 JUNE 2022

Grants awarded during the year

During the year Trustees considered 59 requests for support (84 in 2020/21) and offered grants totaling £2.635 million to 24 applicants (£3.324 million to 42 applicants in 2020/21) supporting the following projects:

Repairs to the riding school at Deene Park .

The restoration of the medieval hall, solar, and parlour at Calverley Old Hall.

Clock restoration at Bamburgh Castle , supported by a donation in memory of Colin McAllister through the University Hospitals Birmingham Charity.

Sponsorship of the Heritage Alliance’s Heritage Update for four years.

Funding bursaries for two students on the City and Guilds Historic Carving and Conservation courses for three years.

High level repairs to Keppel’s Column.

The restoration of the camellia house at Wentworth Woodhouse.

External repairs to Heydon Hall.

Restoration of the southern external stone steps of Kirtlington Park.

Restricted Art Fund

Restoration of the hatchment of the 1st Lord Armstrong in St Aidan’s Church , Bamburgh.

The restoration of work by George Jamesone at Hopetoun House.

Heritage Stimulus Fund

Repair of the South Range at Woodchester Mansion .

Internal and external repairs at Muncaster Castle .

Masonry, timber and glazing repairs to the Long Gallery at Haddon Hall .

Repair of Hedingham Castle’s Tudor Bridge and the Keep.

Re-roofing and repairs of chimneys and dormer windows at Jane Austen’s House .

Repairs to rendering, chimney and leadwork at Moggerhanger Park .

The restoration of the Everingham Hall Chapel ceiling.

Repairs to the Kitchen Wing Courtyard western elevation of Levens Hall .

The repairs and re-roofing of Raby Castle’s Keep tower.

The repair of Browsholme Hall’s roof slate and chimneys.

The restoration of the Sunken Pit House in Holkham Hall’s walled garden.

Masonry repairs to the garden walls of Scampston Hall .

Repair of Longleat House’s East Terrace.

HISTORIC HOUSES FOUNDATION TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 30 JUNE 2022

Projects under consideration

A number of short-listed pre-applications were still under consideration at the end of the year. The Trustees had visited the properties and met the applicants, but final decisions concerning funding had still to be made pending the consideration of full applications at the August or November meetings. These included support of:

A third phase of repair to the Faringdon Folly Tower .

Repairs to the north-west tower of the Archbishop’s Palace, Otford .

Roof repairs to Rydal Mount .

Repair of the Guildhall roof at Alton Castle .

High level repairs to Beckford’s Tower .

Repair of the Great Hall and West Wing roofs of Middleton Hall .

The restoration of hatchments within Halston Hall chapel .

Financial review

The Articles of Association enable grants to be paid from capital as well as income and it is the current policy of the Trustees to pay grants and running costs of the Charity from the total return achieved on the Charity’s investments over time. The Trustees have adopted an investment strategy which aims to achieve a balance between income and capital growth, taking account of potential risks and the level of investment manager’s fees. The Trustees meet their investment managers regularly to review the investment policy, agree risk and return objectives, and decide asset allocation ranges.

The result for the year was a net decrease in funds of £536,680 (2021: increase of £3,336,474). In 2021/22 the Charity’s investments showed a decrease of £653,230 after additions and drawdowns (2021: increase of £3,347,980) and at the year end the investments were valued at £14,066,601.

Investment summary:

Market value of investments at 1 July 2021 (1 July 2020)
Income
Shares transferred in as donation
Drawdowns
Change in market value
Market value of investments at 30 June 2022 (30 June 2021)		 2022
£
14,719,831
325,651
940,826
(500,000)
(1,419,707)
14,066,601		 2021
£
11,371,851
149,743
1,996,952
(500,000)
1,701,285
14,719,831

At 31 December 2022 the market value of the investments was £14,174,725.

It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to not less than six months' grants. This reserve is generally maintained at £500,000 as a cash fund held by the investment managers. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in asset values, they will be able to continue the Charity's current activities while consideration is given to ways in which additional funds may be realised. This level of reserves has been maintained throughout the period and the Trustees' investment strategy has taken account of the potential risks.

HISTORIC HOUSES FOUNDATION TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 30 JUNE 2022

Future plans and outlook

The Trustees are continuing to develop their fundraising strategy for the Charity to encourage legacies and donations with the intention of increasing the endowment fund to ensure that over the long-term support can continue to be provided to the growing number of applications received. In addition, the Trustees look to work in partnership with other funders in order to maximize the benefits of grants awarded and also to work closely with Historic Houses to raise the profile of the Charity.

The Trustees wish to acknowledge the generous donations and legacies from our supporters, including a further donation of £1million from Richard Broyd OBE. These gifts make a valuable and durable contribution to the work of the Charity and the conservation of our built heritage.

In 2021 Trustees launched the Historic House’s Foundation’s first major fundraising campaign. An anonymous donor has offered to match all donations up to a total of £5 million, providing the HHF with a potential target of £10 million in 12 months.

Trustees will continue to welcome applications for support of suitable projects in line with the charitable objectives of the Charity.

Auditors

A resolution proposing that Randall and Payne LLP (incorporating Little and Company) be reappointed as auditors of the Charity will be put to the members.

On behalf of the Board of Trustees

Norman Hudson OBE

Chairman 17 May 2023

HISTORIC HOUSES FOUNDATION STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees, who are also the directors of Historic Houses Foundation for the purpose of company law, are responsible for preparing the Trustees’ Report and Accounts in accordance with applicable company law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Trustees to prepare accounts for each financial year which will give a true and fair view of the state of affairs of the Charity and of its incoming resources and their application of resources including the income and expenditure of the charitable company for that year.

In preparing those accounts, the Trustees are required to:

The Trustees are responsible for:

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HISTORIC HOUSES FOUNDATION

Opinion

We have audited the financial statements of the Historic Houses Foundation (the ‘charitable company’) for the year ended 30 June 2022, which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement and the related notes 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 (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 other information comprises the information included in the Trustees’ Annual Report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. 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 mis-stated. If we identify such material inconsistencies or apparent material mis-statements, we are required to determine whether there is a material mis-statement in the financial statements or a material mis-statement of the other information. If, based on the work we have performed, we conclude that there is a material mis-statement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

REPORT OF THE INDEPENDENT AUDITORS (continued) TO THE MEMBERS OF HISTORIC HOUSES FOUNDATION

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material mis-statements in the Trustees Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ Responsibilities on page 7, the Trustees (who are also the directors of the Historic Houses Foundation 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 cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material mis-statement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Mis-statements 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.

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 auditor’s report.

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 that 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 that we have formed.

Ryan Moore CA Senior Statutory Auditor Randall and Payne LLP Chargrove House Shurdington Road Shurdington Cheltenham GL51 4GA May 2023

HISTORIC HOUSES FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES (including Summary Income and Expenditure Account) FOR THE YEAR ENDED 30 JUNE 2022

Unrestricted
funds
Notes
£
Income
Grants, donations and legacies
3
1,105,223
Investment income
4
325,744
Total incoming resources
1,430,967
Expenditure
Cost of raising funds
Investment managers' fees
51,802
Expenditure on charitable activities
Grants payable
6
-
Grant support and governance costs
7
109,213
Cost of grant making
109,213
Total expenditure
161,015
Net income/(expenditure) for the year
1,269,952
(Loss)/gain on investment assets
10
(1,368,458)
Net (decrease)/increase in funds for the year
(98,506)
Gross transfers between funds
(396,070)
Net movements in funds for the year
(494,576)
Reconciliation of funds
Total funds brought forward at 1 July 2021
13,166,213
Total funds carried forward at 30 June 2022
12,671,637		 Designated
funds
£
-

-

-

-
429,946
-
429,946
429,946
(429,946)
-
(429,946)
396,070
(33,876)
1,364,219
1,330,343		 Restricted
funds
£
2,230,992
-
2,230,992
-
2,246,742
-
2,246,742
2,246,742
(15,750)
-
(15,750)
-
(15,750)
229,214
213,464		 Total
2022
£
3,336,215
325,744
3,661,959
51,802
2,676,688
109,213
2,785,901
2,837,703
824,256
(1,368,458)
(544,202)
-
(544,202)
14,759,646
14,215,444		 Total
2021
£
4,961,348
149,858
5,111,206
43,864
3,410,486
62,730
3,473,216
3,517,080
1,594,126
1,742,348
3,336,474
-
3,336,474

11,423,172
14,759,646

All the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in notes 13 and 14 of the financial statements. An analysis of the 2021 figures is shown on page 19.

HISTORIC HOUSES FOUNDATION BALANCE SHEET AT 30 JUNE 2022

Note
Fixed assets
Investments
10
Current assets
Debtors
11
Cash at bank
Creditors: amounts falling due
within one year
12
Net current assets
Net assets
RESERVES AND FUNDS
Unrestricted funds
Designated funds
13
Restricted funds
14		 2022
£
£
14,066,601
1,040
801,570
802,610
(653,767)
148,843
14,215,444
12,671,637
1,330,343
213,464
14,215,444		 £
£
14,719,831
1,595
716,650
718,245
(678,430)
39,815
14,759,646
13,166,213
1,364,219
229,214
14,759,646
2021

The accounts have been prepared in accordance with the special provisions of part 15 of the Companies Act 2006 relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

The financial statements on pages 10 to 23 were approved by the board on 17 May 2023 and signed on its behalf by

Norman Hudson OBE Chairman

Sir John Parsons KCVO Trustee

HISTORIC HOUSES FOUNDATION CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2022

2022
£
Net cash generated from operating activities (see note below)
474,404
Cash flows from investing activities:
Dividends and interest
325,744
Disposal proceeds on sale of investments
15,780,444
Purchase of investments
(16,288,052)
(Increase)/decrease in uninvested cash held by investment managers
(207,620)
Net cash provided by investing activities
(389,484)
Change in cash and cash equivalents in the year
84,920
Cash and cash equivalents brought forward
716,650
Cash and cash equivalents carried forward
801,570
NOTE TO THE CASH FLOW STATEMENT
Reconciliation of net movement in funds to net cash flow from operating activities
2022
£
Net movement in funds for the year
(544,202)
Deduct: Investment income shown in investing activities
(325,744)
Loss/(gain) on investments
1,368,458
Decrease in debtors
555
(Decrease)/increase in creditors
(24,663)
Net cash generated from operating activities
474,404		 2021
£
1,985,418
149,858
6,087,740
(7,773,561)
80,189
(1,455,774)
529,644
187,006
716,650
2021
£
3,336,474
(149,858)
(1,742,348)
7,075
534,075
1,985,418

HISTORIC HOUSES FOUNDATION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2022

1 Accounting policies

1.1 Statutory information

Historic Houses Foundation is an incorporated charity registered with Companies House and with the Charity Commission for England and Wales.

The registered office is Sheephouse Farm, Uley Road, Dursley, Gloucestershire, GL11 5AD.

1.2 Basis of preparation and going concern

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK (FRS 102) (the Charities SORP (FRS102)), the Financial Reporting Standard applicable in the United Kingdom (FRS 102), the Companies Act 2006 and the Charities Act 2011.

The Charity constitutes a public benefit entity as defined by FRS 102.

The Trustees have considered the likely impact on the Charity and its cash flows of the current economic uncertainty, impact of inflation and the downturn in global markets and consider that the Charity should have access to adequate working capital and funding to enable it to continue to trade for at least one year from the approval of these accounts. The accounts have therefore been prepared on the going concern basis.

1.3 Funds structure

Unrestricted funds are funds which are available for use at the discretion of the Trustees.

Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of designated funds are set out in the note 13 to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for a specific purpose. The aim and use of each restricted fund is set out in the note 14 to the financial statements.

1.4 Income recognition and debtors

All income is included in the Statement of Financial Activities when the Charity is legally entitled to the income, it is probable that it will be received, and the amount can be quantified with reasonable accuracy.

1.5 Resources expended and creditors

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.

Charitable expenditure comprises those costs incurred by the Charity in the deliverance of its activities and services for its beneficiaries. Grants awarded are accrued in the accounts when they have been approved for payment by the Trustees and have met the Charity’s preconditions. Grants awarded where the recipients have yet to fulfil any preconditions are set aside as designated funds.

Grant support and governance costs represent the cost of administering the grant-giving process and examining grant requests. As a grant-making charity all support costs are considered to relate to the sole activity of grant-making. Governance costs include those costs associated with the governance of the Charity and are primarily associated with constitutional and statutory requirements.

HISTORIC HOUSES FOUNDATION NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 30 JUNE 2022

1 Accounting policies (continued)

1.6 Pension scheme

The Charity operates a defined contribution pension scheme for one employee. Contributions are charged to the Statement of Financial Activities as they fall due.

1.7 Investments

The investment portfolio is managed by the investment manager. Short term cash deposits held by the managers are included within fixed assets investments. Investments held in foreign currencies are converted at the year-end exchange rate.

Investments are a form of financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value at the balance sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluations and disposal in the year.

1.8 Financial instruments

The Charity has only basic financial assets and financial liabilities. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.9 Taxation

As a registered charity, the Charity is generally exempt from corporation tax in connection with its direct charitable purpose, but not from value added tax. The cost of irrecoverable value added tax is included within the expense item to which it relates.

2 Related party transactions and trustee expenses and remuneration

The Trustees are considered to be the key management personnel and they received no remuneration for their services to the Charity for the year under review other than Mary King who received a consultancy fee of £10,027 via Historic England to assist with work on the Heritage Stimulus Fund.

Travel expenses totalling £3,074 (2021 - £1,319) were reimbursed during the year to 4 (2021 – 2) Trustees.

When donations are made to other organisations where HHF Trustees or close family members are also Trustees, those individuals are required to declare an interest and do not vote on the grant-giving decision.

There were no grants of this nature or any other related party transactions during the current or prior year.

HISTORIC HOUSES FOUNDATION NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 30 JUNE 2022

3
Grants, donations and legacies
Heritage Stimulus Fund Grant
Donations and legacies receivable
4
Investment income
Income from investments
Bank interest receivable
5
Expenditure
Note
Grant funding
6
Grant support and governance costs
7		 Staff
costs
£
-
56,160
56,160		 Other
Grant
costs
funding
£
£
-
2,676,688
53,053
-
53,053
2,676,688		 2022
£
2,272,992
1,063,223
3,336,215
2022
£
325,651
93

325,744
Total
2022
£
2,676,688
109,213
2,785,901		 2021
£
2,862,751
2,098,597
4,961,348
2021
£
149,743
115
149,858
Total
2021
£
3,410,486
62,730
3,473,216

HISTORIC HOUSES FOUNDATION NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 30 JUNE 2022

6 Grants payable

Grants relating to direct charitable expenditure comprise:
Abercamlais Bridge
Allerton Castle
Belsay Hall
Bodryhddan Hall
Calverley Old Hall
Cannon Hall
City and Guilds
Combermere Abbey
Creeksea Place
Ditchley Park Rotunda
Everingham Hall Chapel
Glyn Cywarch
Gwydir Castle
Hay Castle
Heritage Funding Directory
Heritage Update II
Kelmscott Manor
Kenward House
Keppel's Column
Kilve Chantry
Kimberley Hall
Kirtlington Park
Langton Hall
Lawkland Hall
Letton Hall
Middleton Hall
Norton Conyers
Pitchford Hall
Plumpton Rocks
Powderham Castle
Prince's Foundation BCA
Rokeby Park
Sandon Hall
Sharpham House
Somerleyton Hall
Springfield House
Springhead Mill
Stonor Park
Sudbury Gasworks
Sulgrave Manor		 2022
£
-
30,000
9,000
-
40,000
-
-
13,500
-
6,000
-
-
-
40,000
2,800
12,500
20,000
19,000
30,000
6,000
20,000
36,000
-
21,000
-
-
24,000
-
-
-
-
-
1,376
-
16,770
-
-
-
12,000
-
359,946		 2021
£
35,000
-
-
5,000
-
27,170
11,000
27,000
35,000
-
47,437
42,000
50,000
-
2,800
4,000
15,000
-
-
6,000
-
-
21,000
10,500
7,500
10,000
18,000
13,500
13,321
50,000
15,000
30,000
-
10,500
-
8,000
10,000
16,000
-
14,000
554,728

HISTORIC HOUSES FOUNDATION NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 30 JUNE 2022

6 Grants payable (continued)

Brought forward
Tickenham Court
Treowen House
Turvey House
Westonbirt House
Wolterton Park
Restricted grants from Heritage Conservation Trust Fund
Bamburgh Church
Capesthorne Hall
Fulham Palace
Hutton in the Forest
Iscoyd Park
Kentchurch
Royal Museum Greenwich
Restricted grants from Heritage Stimulus Fund
Browsholme Hall
Claverton Manor
Haddon Hall
Jane Austen's House
Knebworth House
Longleat
Moggerhanger Park
Muncaster Castle
Raby Castle
Scampston Hall
Sulgrave Manor
Total grants payable
Levens Hall
Hedingham Castle
Leighton Hall
Alnwick Castle
Boston Manor House
Broadlands
Eastnor Castle
Everingham Hall
Hedingham Castle
Holkham Hall
Layer Marney Tower
Newby Hall
Powderham Castle
Wick Court
Woodchester Mansion		 2022
£
359,946
20,000
-
10,000
-
40,000		 2021
£
554,728
-
8,000
-
10,000
-
429,946 572,728
1,750
-
3,000
6,000
1,000
-
4,000
-
-
15,750
-
-
-
215,558
-
-
145,030
350,291
107,476
286,217
84,337
-
-
176,260
210,014
77,089
242,986
-
-
57,566
102,905
-
-
175,263
2,230,992
2,676,688		 -
3,300
-
-
1,000
8,368
4,000
1,090
1,500
19,258
204,153
96,000
50,000
-
258,356
87,489
158,125
173,000
137,185
200,143
-
182,501
82,352
165,676
-
-
15,210
47,830
249,885
-
-
56,112
279,340
375,143
2,818,500
3,410,486

HISTORIC HOUSES FOUNDATION NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 30 JUNE 2022

6 Grants payable (continued)

In addition to the amount payable (shown above) and accrued, Trustees had authorised at 30 June 2022 grants of £1,330,343 (2021: £1,364,219), which will be payable on the recipients fulfilling certain conditions. This amount has been treated as a designated fund (see note 13). Additionally, the Trustees had authorised £24,782 of grants (2021 - £31,636) from the restricted HCT Fund which remain unpaid at the year end.

7 Grant support and governance costs

Staff costs (see note 8)
Rent
Rates
Light and heat
IT costs
Postage, stationery and telephone
Travelling and subsistence expenses
Insurance
Consultancy fees (see note 2)
Professional fees
Audit fees
Trustees' expenses
Fundraising and marketing advice
Sundry expenses		 Grant
support
£
56,160
8,450
328
50
2,222
231
1,334
1,425
10,027
-
-
-
-
-
80,227
---------		 Govern-
ance
£
-
-
-
-
-
-
-
-
-
670
7,272
3,074
17,336
634
28,986
------- 2022 ---		 Total
£
56,160
8,450
328
50
2,222
231
1,334
1,425
10,027
670
7,272
3,074
17,336
634
109,213
-------------		 Grant
support
£
36,160
8,450
327
100
2,719
388
1,000
1,474
-
-
-
-
-
-
50,618
----------		 Govern-
ance
£
-
-
-
-
-
-
-
-
-
408
4,980
1,319
5,197
208
12,112
------ 2021 -----		 Total
£
36,160
8,450
327
100
2,719
388
1,000
1,474
-
408
4,980
1,319
5,197
208
62,730
-----------

All support costs incurred by the Charity relate to grant-making activities.

8 Staff costs

Employment costs:
Wages and salaries
Pension costs
Social security costs		 2022
£
32,873
23,287
-
56,160		 2021
£
32,873
3,287
-
36,160

The charity has one employee (2021: one) whose annual emoluments did not exceed £60,000.

HISTORIC HOUSES FOUNDATION NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 30 JUNE 2022

9 Statement of Financial Activities (including Summary Income and Expenditure Account) prior period comparatives – re year ended 30 June 2021

Income
Grants, donations and legacies
Investment income
Total incoming resources
Expenditure
Cost of raising funds
Investment managers' fees
Expenditure on charitable activities
Grants payable
Grant support and governance costs
Cost of grant making
Total expenditure
Net income/(expenditure) for the year
Gain/(loss) on investment assets
Net increase/(decrease) in funds for the year
Gross transfers between funds
Net movements in funds for the year
Reconciliation of funds
Total funds brought forward at 1 July 2020
Total funds carried forward at 30 June 2021		 Unrestricted
funds
£
2,123,497
149,858
2,273,355
43,864
-
62,730
62,730
106,594
2,166,761
1,742,348
3,909,109
(459,683)
3,449,426
9,716,787
13,166,213		 Designated
funds
£
-
-
-
-
572,728
-
572,728
572,728
(572,728)
-
(572,728)
459,683
(113,045)
1,477,264
1,364,219		 Restricted
funds
£
2,837,851
-
2,837,851
-
2,837,758
-
2,837,758
2,837,758
93
-
93
-
93
229,121
229,214		 Total
2021
£
4,961,348
149,858
5,111,206
43,864
3,410,486
62,730
3,473,216
3,517,080
1,594,126
1,742,348
3,336,474
-
3,336,474
11,423,172
14,759,646

HISTORIC HOUSES FOUNDATION NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 30 JUNE 2022

10
Fixed asset investments
Listed investments at market value
Cash held by investment managers
Shares and securities
Market value
At 1 July 2021
Acquisitions
Disposals
(Losses)/gains on investment assets
At 30 June 2022
Historic cost
At 30 June 2022
Unrealised (losses)/gains to 30 June 2022		 2022
£
13,607,473
459,128
14,066,601
2022
£
14,468,323
16,288,052
(15,780,444)
(1,368,458)
13,607,473
16,038,279
(2,430,806)		 2021
£
14,468,323
251,508
14,719,831
2021
£
11,040,154
7,773,561
(6,087,740)
1,742,348
14,468,323
12,845,781
1,622,542

Investments at fair value comprised:

Equities
Bonds
Alternatives
Liquid funds
Cash
Total		 Assets held
in UK
£
462,283
1,033,793
2,296,043
361,376
438,010
4,591,505		 Assets held
outside UK
£
8,888,881
-
562,780
2,317
21,118
9,475,096		 2022
Total
£
9,351,164
1,033,793
2,858,823
363,693
459,128
14,066,601

HISTORIC HOUSES FOUNDATION NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 30 JUNE 2022

11
Debtors
Prepayments and accrued income		 2022
£
1,040
1,040		 2021
£
1,595
1,595
12
Creditors: amounts falling due within one year
Grants payable
Accruals		 2022
£
619,705
34,062
653,767		 2021
£
653,847
24,583
678,430

13 Designated funds

Grant commitments at 1 July 2021(1 July 2021)
Grants approved
Grants adjustments
Less Grants payable
Paid in the year
Less: Grants payable accrual at 1 July 2021
Add: Grants payable accrual at 30 June 2022
Grant commitments at 30 June 2022 (30 June 2021)		 £
£
1,364,219
396,000
70

1,760,289
426,216
(59,437)
63,167
429,946
1,330,343
2022		 £
£
1,477,264
470,076
(10,393)
1,936,947
637,291
(124,000)
59,437
572,728
1,364,219
2021

HISTORIC HOUSES FOUNDATION NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 30 JUNE 2022

14 Restricted funds

The Heritage Conservation Trust fund was established to hold the funds receivable on the transfer of the assets of the Heritage Conservation Trust in 2019.

The Heritage Stimulus Fund was established to hold funds received under Grants for Programmes of Major Works of the Government’s Cultural Recovery Fund. This was granted to fund 18 specific projects in phase 1 and a further 13 specific projects in phase 2.

Grants payable from these funds are then deducted.

Heritage
Conservation
Trust
£
Restricted fund balance at 1 July 2021
209,863
Grants payable
-
Grants paid
(15,750)
Restricted fund balance at 30 June 2022
194,113		 Heritage
Stimulus
Fund
£
19,351
2,230,992
(2,230,992)
19,351
 2022
£
229,214
2,230,992
(2,246,742)
213,464		 2021
£
229,121
2,837,851
(2,837,758)
229,214

At 30 June 2022 £24,782 (2021 - £31,636) of the Heritage Conservation Trust fund was committed to be spent leaving £169,331 available.

15 Analysis of net assets between funds

Unrestricted
funds
£
Fund balances at 30 June 2022 are represented by:
Investments
12,736,258
Net current assets
(64,621)
12,671,637		 Designated
funds
£
1,330,343
-
1,330,343		 Restricted
funds
£
-
213,464
213,464		 2022
Total
£
14,066,601
148,843
14,215,444

15a Analysis of net assets between funds (prior year)

Unrestricted
funds
£
Fund balances at 30 June 2021 are represented by:
Investments
13,355,612
Net current assets
(189,399)
13,166,213		 Designated
funds
£
1,364,219
-
1,364,219		 Restricted
funds
£
-
229,214
229,214		 2021
Total
£
14,719,831
39,815
14,759,646

HISTORIC HOUSES FOUNDATION NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 30 JUNE 2022

16 Legal status of the charity

The Charity is a company limited by guarantee. The members of the Charity are the Trustees listed on page 1. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £10 per member. The Charity’s controlling party is the Board of Directors who are also the Trustees.