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2023-03-31-accounts

CASTLE CAVENDISH FOUNDATION

(A company limited by guarantee)

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee )

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2023

CONTENTS

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

The Trustees, who are also directors of the charity for the purposes of the Companies Act, submit their annual report and the audited financial statements for the year ended 31 March 2023. The Trustees have opted to prepare the accounts using the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) and follow the Charities SORP (FRS 102).

1. GOVERNING DOCUMENT

Castle Cavendish Foundation is a company limited by guarantee governed by its Memorandum and Articles of Association as amended on 18th November 2020. It is registered as a Charity with the Charity Commission. Anyone over the age of 16 can become a member of the Company, each of whom agrees to contribute a maximum of £1 in the event of the Charity winding-up.

COMPANY REGISTRATION NO .

The company registration number is 04209702.

CHARITY REGISTRATION NO.

The company is also registered with the Charity Commission. The registration number is 1119003.

2. ORGANISATIONAL STRUCTURE

Castle Cavendish Foundation (the Charity) has a Board of Trustees that governs and administers the organisation. Up to 15 Trustees are allowed on the Board at any one time. The Board meets every 6 weeks, and has the ability to appoint a Chief Executive to manage the day-to-day operations of the organisation. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the Trustees, for operational matters including finance and human resources.

The Charity has established a wholly owned trading subsidiary, Castle Cavendish Limited (the Trading Arm). This is administered by non-executive directors, and operates on a commercial basis to maximise income, which is then donated through to the Charity.

3. PUBLIC BENEFIT

The Trustees have referred to the guidance in the Charity Commission’s general guidance on public benefit when reviewing their aim and objectives and in planning their future activities. In particular, the Trustees consider how planned activities will contribute to the aim and objectives they have set.

In 2022-23, Castle Cavendish continued to provide a significant public benefit to the communities within the Charity’s area of operation.

4. MISSION & KEY AIMS & OBJECTIVES

Castle Cavendish sees itself as a Social Impact Company. Covering some of the most diverse and disadvantaged parts of Nottingham, it is committed to improving the ‘quality of life’ in those areas by using its assets, its buildings, its people, its expertise and its funding to make a difference. Its mission is to improve people’s lives in Nottingham by supporting the voluntary and business sectors to grow and develop in an ethical and sustainable way.

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CASTLE CAVENDISH FOUNDATION

(A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

5. TRUSTEES

Members of the Board of Trustees and also directors for company law purposes. The Trustees during the year ended 31 March 2023 were as follows: -

Mark Spouge (Chair) Shoaib Khan Parveen Begum Zane Powers Jay Ludditt Fadzai Gambanga Gurpal Singh Basra (Retired 30[th] September 2022) John Ydlibi Bengisu Sahin

During 2022/23, Craig Elder, John Ydlibi and Dave Brennan acted as non-executive directors of the trading arm (CCL). Gurpal Basra Singh resigned as non-executive director on 30th September 2022.

6. PRINCIPAL OFFICE

The principal office is Castle Cavendish Works, Dorking Road, Radford, Nottingham, NG7 5PN.

7. RELEVANT ORGANISATIONS

Bankers Auditors Natwest Plc Rogers Spencer 536 Valley Road Newstead House Basford Pelham Road Nottingham Nottingham NG5 1LF NG5 1AP

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CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

8. ANNUAL REVIEW

Overview:

Last year saw Castle Cavendish make a significant impact to the communities it serves. Even taking into account the challenging times – the global turbulence, an economic depression, higher utility costs and increasing inflation - we have continued to manage our property portfolio effectively through our trading arm, generating a relatively high level of revenue and managing our cost base efficiently, thereby posting a sizeable profit.

This surplus, along with public grant from the likes of Nottingham City Council, has enabled us to support many of the grassroots voluntary and community sector (VCS) groups to deliver outstanding services to our communities, whilst coping with the cost-of-living crisis.

Supporting our Communities

As in previous years, a large proportion of our external funding comes from Nottingham City Council via the Area Based Grant (ABG). Unfortunately, this has suffered a further reduction this year of approx.14%. Yet despite this reduction, we have continued to work effectively with our trusted delivery partners to achieve relatively high levels of outputs, which has delivered outcomes that have made a significant impact to our communities.

Children & Young People:

There has been a continued emphasis on supporting activities for Children and Young People (C&YP). We were able to work with 17 local VCS trusted delivery partners to provide more “things to do and places to go” for local C&YP than ever before. From youth groups, playschemes, sports clubs and physical activity sessions to forestry schools, dance classes, fitness boot camps and much more, we developed and supported over 30 x Play (for 5-11 yr olds) or Youth (for 11-17 yr olds) projects across the City last year, offering an unmatched range of out-of-school activities for C&YP throughout school term-times.

Complementing this has been our support for families over the school holidays through the Holiday Activity Fund. This is funded by the Department for Education’s Holiday Activity & Food Programme for tackling holiday hunger, targeting the support towards low-income households with children eligible for Free School Meals. By working closely with our ABG Play & Youth partnership, alongside some new providers, we were able to deliver 1,280 hrs of holiday provision and over 850 free meals to some of our City’s most vulnerable families.

Employment & Skills:

Also seen as a top priority is supporting local jobseekers to overcome problems of poor literacy and numeracy, enhance their language and IT skills, and access training opportunities designed to help improve their employment prospects. We have therefore worked closely with several specialist Employment & Skills (E&S) providers, utilising our ABG funding as match, enabling them to access European Social Funding (ESF) and deliver a high-quality intensive support offer for 16-24 yr olds. Overall, 84 local jobseekers have been supported into sustainable, long-term employment of 6 months or more.

We also worked in partnership to deliver a range of open access weekly “Work Clubs” from the network of local libraries. These sessions provide both group and 1-2-1 support for local jobseekers not eligible for the ESF supported projects and were able to support a further 63 local jobseekers into work.

Alongside those main E&S outputs, we also offered a range of accredited and informal ESOL (English for Speakers of Other Languages) classes, IT literacy courses, a community Jobs Fair and various other initiatives that all helped local communities overcome their barriers to employment.

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CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

8. ANNUAL REVIEW (continued)

Health & Wellbeing:

Last year saw a further emphasis of our charitable work towards improving the health and wellbeing of our residents. Indeed, a need analysis provided us with some startling insight into the health disparities faced by some of our communities.

As a result, we successfully secured additional grant funding from Nottingham City Council to support the delivery of various health and wellbeing activities and outputs, and used this funding we engaged key individuals and trusted delivery partners embedded within those communities to develop a number of unique and innovative projects, including: seated exercise classes; walking football; bespoke community cricket and netball projects; community eating projects; creative arts sessions; along with projects that helped people access local parks, green spaces and nature reserves. All these activities were particularly successful in helping those with limited mobility, loneliness and isolation, social anxiety and other lowlevel mental health issues to improve their overall health and wellbeing.

Small Group Support:

We also provided bespoke advice and support for over 30 local VCS groups over the last year. Whether it is through phone calls or emails, we have responded to questions and queries and resolved them quickly. Indeed, one query asking one question can lead to other work, so it genuinely is the case that 'one thing leads to another' as the saying goes.

We also have provided more in-depth support and guidance to a number of small groups: enabling them to draft up a working constitution; guide them through the CIO, CIC, Charitable Trust application process; ensure that they have evidence of need; they have support from other people competent and willing act as trustees or directors; they adopt relevant policies and procedures; and they develop a sustainable funding plan.

Indeed, in April 2022, we provided advice and guidance to a number of boaters from the Castle Marina as they were struggling to be heard when they raise issues and concerns individually about safety and standards on the Marina, itself. By supporting them to set up a constituted group and put forward a collective voice their points were taken on board. We also supported Skilled Hands, also one of our business tenants, in reviewing their legal structure and setting up a CIC. This will, hopefully, put them in a better position to access funding. We have also supported groups with funding applications, including Signpost to Polish Success (SPS), who have now reached the second stage of their NLCF Funding application.

We also provide a regular e-bulletin focused on funding opportunities for small groups, and share information on issues that affect directly the local VCS, including a bank of resources that we can distribute on email. That said, our one-to-one interactions and meeting people face-to-face remains a vital and unique part of our service.

Managing our Properties

Castle Cavendish, through its trading arm (Castle Cavendish Ltd), continues to manage its property base through tough economic conditions. Although, the post-pandemic world and the economic downturn led to temporary reduction in occupancy rates, this has now been completely reversed and business tenants have returned in increasing numbers, especially in relation to our two business centres - Castle Cavendish Works and Castle Cavendish Enterprise Centre. The increasing role of remote/hybrid working ensured that they provided a relevant flexible workspace approach, with easy-in and easy out terms, alongside a virtual tenancy offer, has matched up to the increasing demand, with both business centres now having occupancy rates close to 100%. Alongside this has been the increasing use of our meeting spaces, with the hustle and bustle of our communal areas once again making them ideal places to do business. Indeed, it was great to see one of our previous business tenants (Approach Personnel) coming back to hire out one of our conference suites over the summer months, whilst its own premises was being refurbished.

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CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

8. ANNUAL REVIEW (continued)

Although our business centres are matching up to business needs and priorities, it was also felt right that Castle Cavendish should also respond to the developing Environment, Social and Governance (ESG) agenda. As a result, we have worked hard to change to match up to these requirements and in April 2022 we formally launched Castle Cavendish Works as Nottingham’s Ethical Business Centre. This has seen us adopt a range of measures to change the way the facility is operated and managed, through ‘Our Core Essentials’ prospectus. In particular: how we select new business tenants with a social purpose; how we procure our supplies from local sources; how we try to reduce our environmental impact; how we support B2B workshops; and how we expect our businesses to act and operate with each other. All with the focus of achieving the triple bottom line of social, environmental and financial returns.

Importantly, a key component of the Ethical Business Centre approach is to reduce our negative impact on the environment. Through an Environmental Impact Framework, worked up with help and assistance from Nottingham Trent University, we are now taking steps to minimise Castle Cavendish Works energy usage, water consumption, waste and CO2 emissions, whilst switching to sustainable products and materials and promoting sustainable transport. The new Cycle Shelter, EV charging points and conversion to an average of 75% renewable energy at our business centre are notable signs of progress. Moreover, Castle Cavendish itself has invested in a brand new fully electric van, following a free trial organised by the City Council, that will ensure our property maintenance service is reducing its carbon footprint. It is anticipated that the approach taken at Castle Cavendish Works could be rolled out to our other properties, and aid us in our quest to become Carbon Neutral by 2028.

In regards our other retail and commercial properties, we have continued to see high occupancy levels. Tennyson Hall currently hosts two VCS Organisations – Belong and Signpost to Polish Success. Both bodies are benefiting from occupying a key landmark building with upgraded facilities tailored to their needs right in the heart of Radford. Close nearby on Alfreton Road, our retail units make up a very impressive shopping parade. That said, the prevailing retail conditions are particularly challenging for most of our retail tenants. Only through our close relationship with them, fully understanding their financial capabilities, have we been able to minimise our occupancy churn.

Impressively, given the economic downturn, the revenue generated for the full year reached £616k. This is excellent given the unprecedented and extraordinary circumstances since 2020. In regards costs, this has come in at £546k. Taking into account depreciation and other accountancy entries, this gives us an operating profit of just under £74k.

Developing Partnerships:

As part of our role as Area Lead Organisation for Nottingham City Council, covering area 2, 4 & 5, our external work with key stakeholders and community partners has been ongoing throughout the year, especially creating and nurturing the relationships associated with new VCS delivery partners relating to our HAF programme.

Last year also saw us develop a partnership with the Djanogly Learning Trust, Nottinghamshire County Cricket Club and Nottingham Free School in relation to the development and management of the Haydn Road Pavilion & Sports Ground.

Performing Financially:

In 2022-23, Castle Cavendish’s overall income rose to £1.134m, compared to last year’s £1.087m. The revenue generated by our trading activities represents 54% with 46% income coming from external grant income. This compares with the previous year’s figures of 48% and 52%, respectively. Castle Cavendish’s overall expenditure in 2022-23 was £1.078m, compared to a higher figure of £1.114m in 2021-22. The split between the costs of our trading activities and our charitable work is now shared at 50/50.

In regards our core management costs, we have worked hard to ensure that this is as low as possible, and that what costs are incurred are supported through management fees and project delivery charges. Indeed, approx. 94% of our core management costs have been covered through external grant. In terms of governance costs, for 2022-23 this stand at just under £42k, compared to £52k in the previous year.

Overall, taking all the above into account, the result is that we have achieved a net surplus of £56k.

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CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

8. ANNUAL REVIEW (continued)

Delivering Good Governance:

In terms of governance, the Board of Trustees met throughout the year, and made a number of key decisions. Here are just a few of them:

Ensuring Compliance:

Castle Cavendish has met all its reporting requirements, including its audited Company Account & Financial Statement through to Companies House, its Annual Report through to the Charity Commission, and Grant Claims to external funding bodies, such as Nottingham City Council.

Going Forward:

As we progress through these challenging times, Castle Cavendish’s trading activities has increased significantly, improving its occupancy levels to close to pre-pandemic levels and increasing its profitability. Although there has been an increase in the number of commercial tenants struggling to pay their rent, and indeed survive, especially at Alfreton Road, the level of bad debt has actually reduced. What ‘bad debt’ there is can be accommodated within the balance sheet. As in previous years, this profit is transferred (via a dividend) to support Castle Cavendish’s charitable activities.

The financial support from our trading activities combines with our external grant income for Castle Cavendish to provide its charitable activities, primarily by co-ordinating, managing and distributing funding to our trusted delivery partners in the VCS. A major source of this external funding is Nottingham City Council, and in January 2023 it confirmed that, albeit reduced in size, it would extend the Area Based Grant for Area 2, Area 4 and 5 for a further 12 months. This shall provide Castle Cavendish with a combined Area Based Grant of £297k. In addition, Castle Cavendish’s successful management of the HAF programme in 2022 has paid dividends and in February 2023 it was confirmed that Castle Cavendish would continue its role in 2023, accessing up to £111k of grant support. Overall, it is anticipated that we will be aiming to access nearly £450k of external grant in 2023-24.

Along with maximising grant funding to our trusted delivery partners in the VCS, this level of grant will fund Castle Cavendish to deliver its charitable activities directly, as well as generating significant management fees. Potentially this will provide up to £65k, and will cover at least 50% of the core management costs that are required to manage the organisation. The other half is covered by its trading arm contribution. This business model approach ensures that Castle Cavendish can continue as a ‘going concern’, even if external grant is significantly reduced, as long as restructuring takes place to match-up to the funds available.

As we look forward to 2023-24, the organisation has exciting plans on how to take forward its future role in, especially in regards managing community spaces and buildings. A Lease Agreement has now been signed with the landowners of the Haydn Road Pavilion & Sports Ground that will ensure we make a significant impact to communities nearby and further afield, developing partnerships and programmes associated with education, health and sport and active lifestyle which should widen the scope of funding and diversify its income streams.

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CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

9. PAY POLICY FOR SENIOR STAFF

The Board of Trustees and the senior management team comprise the key management personnel of the Charity in charge of directing, controlling running and operating the Foundation on a day-to-day basis. All Trustees give their time freely and no trustee received remuneration in the year. Details of Trustees’ expenses and related party transactions are disclosed in note 15 to the accounts.

The pay of senior staff is reviewed annually and normally increased in accordance with average earnings. In view of the nature of the charity, the trustees benchmark against pay levels in similar sectors.

10. RISK MANAGEMENT

The Trustees have a risk management strategy which comprises:

This work has identified that financial sustainability is the major financial risk for both the Charity and its subsidiary. A key element in the management of financial risk is a regular review of available liquid funds to settle debts as they fall due, regular liaison with the bank, and active management of trade debtors and creditor balances to ensure sufficient working capital by the Charity and its subsidiary company.

11. RESERVES POLICY

The Charity holds a general reserve from income received in previous years, along with income generated from its trading subsidiary and donated through. It has the ability to use these reserves each year to contribute to investments, grants and the running of the organisation, in line with the Charity’s Reserve Policy.

As of 31[st] March 2023, the organisation’s Current Assets are made up of ‘Debtors’ (£105k) and ‘Cash in Bank’ (£123k) amounts to £228k. This is offset by Liabilities (falling in one year) of £130k. The approved Reserves Policy identifies that, under the current circumstances, the estimated level of reserves should be at least £100k, and action will be undertaken to increase current assets and reduce our liabilities, thereby increasing our level of reserves.

12. TRUSTEE INDUCTION & TRAINING

New Trustees are provided with a Trustee Handbook, and undergo an orientation process to brief them on the Charity and their role as a Trustee, including:

Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

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CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

13. RELATED PARTIES

In 2022-23, Castle Cavendish had a strategic relationship with Nottingham City Council, as the main funder of the ABG Programme. From an operational point of view, it had contractual relationship, through grant agreements.

14. STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also directors of Castle Cavendish Foundation for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

The Board of Trustees adopted the Charity Governance Code in October 2018. This sets out seven key principles of good governance:

  1. Organisational Purpose:

  2. The Board is clear about the charity’s aims and ensures that these are being delivered effectively and sustainably.

  3. Leadership:

The Board provides effective, strategic leadership in line with the charity’s aims and values.

  1. Integrity:

The Board acts with integrity adopting values and creating a culture which help achieve the organisations charitable purposes. The Board is aware of the importance of the public’s confidence and trust in charities, and Trustees undertake their duties accordingly.

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CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

14. STATEMENT OF TRUSTEES’ RESPONSIBILITIES (continued)

  1. Decision-making, risk and control: The Board makes sure that its decision-making processes are informed, rigorous and timely and that effective delegation, control and risk assessment and management systems are set up and monitored.

  2. Board effectiveness: The Board works as an effective team, using the appropriate balance of skills, experience, backgrounds and knowledge to make informed decisions.

  3. Diversity:

The Board’s approach to diversity supports its effectiveness, leadership and decision-making.

  1. Openness and accountability:

The Board leads the organisation in being transparent and accountable. The charity is open in its work, unless there is good reason for it not to be.

15. AUDITORS

A resolution will be proposed at the Annual General Meeting that Rogers Spencer be re-appointed as auditors to the charity for the ensuing year.

Approved by the Board of Trustees on ………………………..and signed on its behalf by

Mark Spouge Chair of Trustees

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

Independent Auditor’s Report to the members and Trustees of Castle Cavendish Foundation (a company limited by guarantee)

Opinion

We have audited the financial statements of Castle Cavendish Foundation (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 March 2023 which comprise the group statement of financial activities, the group and parent charitable company balance sheet, the group 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:

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 group and parent 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.

Emphasis of matter

As mentioned within the Investments note (note 8), the long term investment properties, which represent 97% of fixed assets and 85% of gross assets, have been valued by the Trustees as at 31 March 2023. The last professional valuation was undertaken by Savills in 2013.

We do not modify our opinion with regard to this matter.

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 group’s or parent 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.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on pages 8 & 9, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and parent 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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 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 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 company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

……………………………………………………..

Date:

Melvin Bailey FCCA DChA (Senior Statutory Auditor) For and on behalf of Rogers Spencer

Chartered Certified Accountant Statutory Auditor

Newstead House Pelham Road Nottingham NG5 1AP

Rogers Spencer is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

13

CASTLE CAVENDISH FOUNDATION

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES ~ INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2023

Note
Unrestricted
£
Restricted
£
INCOME AND ENDOWMENTS FROM
Income from charitable activities:
Grants receivable
3a
-
518,303
Income from trading activities:
Rent and room hire
464,971
-
Other property income
104,831
-
Service charges
46,498
-
Other grants receivable
-
-
616,300
-
TOTAL INCOME
616,300
518,303
EXPENDITURE ON
Raising funds
4a
12,215
-
Charitable activities
4c
600,147
466,086
TOTAL EXPENDITURE
612,362
466,086
NET INCOME/(EXPENDITURE) BEFORE TRANSFERS
3,938
52,217
Transfers between funds
-
-
NET MOVEMENT IN FUNDS
3,938
52,217
Fund balances brought forward
1,512,037
26,549

FUND BALANCES CARRIED FORWARD
1,515,975
78,766		 Total
2023
£
518,303
464,971
104,831
46,498
-
616,300
1,134,603
12,215
1,066,233
1,078,448
56,155

-
56,155
1,538,586

1,594,741		 Total
2022
£
545,196
415,862
81,972
32,051
11,857
541,742
1,086,938		 Total
2022
£
545,196

415,862
81,972
32,051
11,857

541,742

15,293
1,098,495

1,113,788

(26,850)
-
(26,850)
1,565,436

1,538,586

The consolidated statement of financial activities contains all the gains and losses recognised in current and previous period.

All activities are continuing activities.

The notes on pages 19 to 36 form part of these financial statements.

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CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES ~ INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2023

PRIOR YEAR ONLY:
Note
Unrestricted
£
Restricted
£
INCOME AND ENDOWMENTS FROM
Income from charitable activities:
Grants receivable
3b
-
545,196
Income from trading activities:
Rent and room hire
415,862
-
Other property income
81,972
-
Service charges
32,051
-
Other grants receivable
-
11,857
529,885
11,857
TOTAL INCOME
529,885
557,053
EXPENDITURE ON
Raising funds
4b
15,293
-
Charitable activities
4d
574,852
523,643
TOTAL EXPENDITURE
590,145
523,643
NET INCOME/(EXPENDITURE) BEFORE TRANSFERS
(60,260)
33,410

Transfers between funds
33,713
(33,713)
NET MOVEMENT IN FUNDS
(26,547)
(303)

Fund balances brought forward
1,538,584
26,852
FUND BALANCES CARRIED FORWARD
1,512,037
26,549		 Total
2022
£
545,196
415,862
81,972
32,051
-
541,742
1,086,938
15,293
1,098,495
1,113,788
(26,850)
-
(26,850)
1,565,436
1,538,586

All activities are continuing activities.

The notes on pages 19 to 36 form part of these financial statements.

15

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH 2023

Note
FIXED ASSETS
Tangible fixed assets
7a
Investments
8
CURRENT ASSETS
Debtors
9
Cash at bank and in hand
LIABILITIES: Amounts falling due within one year
10
NET CURRENT ASSETS / (LIABILITIES)
TOTAL ASSETS LESS CURRENT LIABILITIES
LIABILITIES: Amounts falling due after more than
one year
11
NET ASSETS
FUNDS
Unrestricted
General funds
13
Restricted
12
Total funds		 2023
2022
£
£
£
£
48,458
51,242
1,548,052
1,548,052
1,596,510
1,599,294
105,448
83,681
122,939
88,539
228,387
172,220
(130,836)
(121,966)
97,551
50,254
1,694,061
1,649,548
(99,320)
(110,962)
1,594,741
1,538,586
1,515,975
1,512,037
78,766
26,549
1,594,741
1,538,586

The financial statements are prepared in accordance with the provisions applicable to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved by the Board of Trustees on ……………………… and signed on its behalf by

Mark Spouge Chair of Trustees

Company Number 04209702

The notes on pages 19 to 36 form part of these financial statements.

16

CASTLE CAVENDISH FOUNDATION

(A company limited by guarantee)

BALANCE SHEET AS AT 31ST MARCH 2023 (CHARITY ONLY)

Note
FIXED ASSETS
Tangible fixed assets
7b
Investments
8
CURRENT ASSETS
Debtors
9
Cash at bank and in hand
LIABILITIES: Amounts falling due within one year
10
NET CURRENT ASSETS / (LIABILITIES)
TOTAL ASSETS LESS CURRENT LIABILITIES
LIABILITIES: Amounts falling due after more than
one year
11
NET ASSETS
FUNDS
Unrestricted
General funds
13
Restricted
12
Total funds		 2023
2022
£
£
£
£
20,404
27,700
1,548,152
1,548,152
1,568,556
1,575,852
104,096
70,905
43,033
16,157
147,129
87,062
(28,024)
(19,766)
119,105
67,296
1,687,661
1,643,148
(99,320)
(110,962)
1,588,341
1,532,186
1,509,575
1,505,637
78,766
26,549
1,588,341
1,532,186		 2023
2022
£
£
£
£
20,404
27,700
1,548,152
1,548,152
1,568,556
1,575,852
104,096
70,905
43,033
16,157
147,129
87,062
(28,024)
(19,766)
119,105
67,296
1,687,661
1,643,148
(99,320)
(110,962)
1,588,341
1,532,186
1,509,575
1,505,637
78,766
26,549
1,588,341
1,532,186

1,575,852
67,296
1,643,148
(110,962)
1,532,186

1,505,637
26,549

1,532,186

As permitted by s408 of the Companies Act 2006, the parent charitable company has not presented its own statement of financial activities and related notes. The parent charitable company’s surplus for the year was £56,155 (2022: £26,850 deficit). The financial statements are prepared in accordance with the provisions applicable to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved by the Board of Trustees on …………………….. and signed on its behalf by

Mark Spouge Chair of Trustees

Company Number 04209702

The notes on pages 19 to 36 form part of these financial statements.

17

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2023

Note
Cashflows from operating activities
Cash generated from/(absorbed by) operations
18
Interest paid
Net cash inflow /(outflow) from operating
activities
Investing activities
Purchase of tangible fixed assets
Net cash (used) /received in investing
activities
Financing activities
Repayment of bank loans
Net cash (used) /received in financing
activities
Net increase /(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of the
year
Cash and cash equivalents at end of year		 2023
£
62,902
(4,084)
58,818

(12,775)
(12,775)
(11,643)

(11,643)
34,400
88,539
122,939
 2022
£
(10,618)
(4,817)

(15,435)
(21,071)

(21,071)

(11,150)

(11,150)

(47,656)
136,195

88,539

18

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023

1. ACCOUNTING POLICIES

Basis of accounting

The charity constitutes a public benefit entity as defined by FRS 102. The charity is limited by guarantee and was incorporated in England & Wales. 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), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015.

The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Basis of consolidation

The consolidated financial statements include the financial statements of the parent charitable company and its subsidiary company Castle Cavendish Limited.

Going concern

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.

Although the Charitable group draws upon grants from the Local Authority and other potential funders, it equally generates a significant amount of income through its trading subsidiary. It is anticipated that future business requirements lend itself to the flexible workspace opportunities that exist at both Castle Cavendish Works and Castle Cavendish Enterprise Centre. Indeed, the initial forecasted trading profit for 2023-24 is estimated to be in the order of £90k, due to a steady growth in usage and occupancy. Indeed, it is anticipated that occupancy levels will reach their optimum in 2023-24. However, as energy costs increase, the trading activities may well be affected.

In May 2023, the Board of Trustees approved a Financial Plan for 2023-24 which builds in the trading subsidiary income and expenditure forecasts, alongside an anticipated grant programme worth up to £450k, fully supported through external grant funding. Even with the significant task of managing this grant programme and the cost associated with this role, it is anticipated that the Charitable group will still generate a net surplus in 2023-24.

However, it should be noted that there are some question marks over grant funds in the future, especially in regards the Area Based Grant from 2024 onwards, as well as the level of funds to be allocated. The cost of delivering aspects of the City Council’s Area Based Grant and managing its distribution is covered through an element of the Area Based Grant itself, alongside a percentage Management Fee. Obviously, with some uncertainty surrounding this matter, the potential fees generated and the ‘in-house’ project delivery grant are difficult to estimate. The Board of Trustees are well aware of this issue and have a risk management approach which will respond to the prevailing circumstances, scaling up or scaling up, depending on the grant funds that are awarded.

However, as previously noted, if the trading subsidiary matches up to optimum levels in 2023-24, and there is no reason why this should not happen given the current trends, then trading profits will be substantial. This dividend donation to the Charitable group, will ensure that the governance costs and management responsibilities for the group as a whole will be properly supported on an ongoing basis.

19

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023

1. ACCOUNTING POLICIES (continued)

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restriction imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Restricted funds represent grants, donations and legacies received which are allocated by the donor for specific purposes.

Income

All income is included in the SOFA when the charity is legally entitled to the income, any performance conditions attached to the items of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue grants’, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Gifts in kind donated are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the charity where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.

All capital grants received in respect of any depreciated assets are credited to deferred income and amortised to the profit and loss account over the useful economic life of the assets to which they relate.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Expenditure and irrecoverable VAT

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of the resources.

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:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Taxation

The Trust is a registered Charity and is exempt from taxation. Its subsidiary company, Castle Cavendish Limited, is liable to corporation taxation on its profits however. Any tax incurred is charged to resources expended.

20

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023

1. ACCOUNTING POLICIES (continued)

Fixed assets and depreciation

Tangible fixed assets are stated at the lower of cost less accumulated depreciation and valuation. Depreciation is charged on a straight-line basis over the expected economic useful lives of the assets at the following annual rates:

Computer equipment Fixtures, fittings, vehicles and equipment

33 1/3% straight line basis 15% straight line basis

Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value as the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.

2. JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

21

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023

3a. GRANTS RECEIVABLE

Unrestricted
funds
£
Restricted
funds
£
Area Based Grant - Area 2
Area Based Grant - Area 4
Area Based Grant - Area 5
Holiday Activity Fund
Community Vaccine Champions
The Bestwood Partnership
-
-
-
-
-
-
-
134,520
110,776
97,344
117,243
45,000
13,420
518,303		 Total
2023
£
134,520
110,776
97,344
117,243
45,000
13,420
518,303

 Total
2022
£
175,283
144,345
126,842
98,726
-
-
545,196

3b. GRANTS RECEIVABLE (Prior year)

4a.
4b.		 Unrestricted
funds
£
Restricted
funds
£
Area Based Grant - Area 2
Area Based Grant - Area 4
Area Based Grant - Area 5
Holiday Activity Fund
-
-
-
-
-
175,283
144,345
126,842
98,726
545,196
RAISING FUNDS
Unrestricted
funds
£
Restricted
funds
£
Total
2023
£
Advertising and promotion
12,215
-
12,215
12,215
-
12,215
RAISING FUNDS (Prior year)
Unrestricted
funds
£
Restricted
funds
£
Total
2022
£
Advertising and promotion
15,293
-
15,293
15,293
-
15,293		 Total
2022
£
175,283
144,345
126,842
98,726
545,196

22

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023

4c.CHARITABLE ACTIVITIES
Unrestricted
funds
£
Restricted
funds
£
Staff costs
200,397
103,556
Repairs and maintenance
75,179
-
Premises security
11,225
-
Computer costs
317
-
Heat, light, water and telephone
69,076
-
Insurance
15,201
-

Motor and travel
3,440
-
Printing, postage and stationery
13,347
-
Training
-
-
Service charges
43,467
-
Legal and professional fees
16,671
-
Accountancy fees
4,080
-
Equipment leasing
6,860
-
Rent and rates
85,371
-

Sundry expenses
1,582
-
Bad debts
(12,290)
-
Bank charges
1,257
-
Grant payments (Note 4i)
-
362,530
Loan interest
4,084
-
Governance (Note 4e)
41,941
-
Depreciation
15,560
-
Unrecoverable VAT
3,382
-
600,147
466,086		 Total
2023
£
303,953
75,179
11,225
317
69,076
15,201
3,440
13,347
-
43,467
16,671
4,080
6,860
85,371
1,582
(12,290)
1,257
362,530
4,084
41,941
15,560
3,382
1,066,233		 Total
2022
£
273,180
71,951
3,998
3,506
54,267
10,849
349
9,919
525
30,432
13,149
4,076
6,730
80,412
1,338
(2,199)
1,152
452,034
4,817
52,373
14,047
11,590
1,098,495

23

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023

4d.










4e.		 CHARITABLE ACTIVITIES (Prior year)
Unrestricted
funds
£
Restricted
funds
£
Staff costs
201,571
71,609
Repairs and maintenance
71,951
-
Premises security
3,998
-
Heat, light, water and telephone
54,267
-
Insurance
10,849
-
Motor and travel
349
-
Printing, postage and stationery
9,919
-
Training
525
-
Service charges
30,432
-
Legal and professional fees
13,149
-
Accountancy fees
4,076
-
Equipment leasing
6,730
-
Rent and rates
80,412
-

Sundry expenses
1,338
-
Bad debts
(2,199)
-
Bank charges
1,152
-
Grant payments (Note 4i)
-
452,034
Loan interest
4,817
-
Governance (Note 4f)
52,373
-
Depreciation
14,047
-
Unrecoverable VAT
11,590
-
574,852
523,643
GOVERNANCE COSTS
Unrestricted
funds
£
Restricted
funds
£
Staff costs
34,841
-
Audit fees
7,100
-
41,941
-		 Total
2022
£
273,180
71,951
3,998
54,267
10,849
349
9,919
525
30,432
13,149
4,076
6,730
80,412
1,338
(2,199)
1,152
452,034
4,817
52,373
14,047
11,590
1,098,495
Total
2023
£
34,841
7,100
41,941		 Total
2022
£
46,373
6,000

52,373

4f. GOVERNANCE COSTS (Prior year)

GOVERNANCE COSTS (Prior year)
Unrestricted
funds
£
Restricted
funds
£
Staff costs
46,373
-
Audit fees
6,000
-
52,373
-		 Total
2022
£
46,373
6,000

52,373

24

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023

4g. TOTAL RESOURCES EXPENDED

Basis of
allocation
Projects and
grants
Property
management
Governance
Costs directly allocated to
activities
£
£
£
Staff costs
Direct
97,094
206,859
34,841
Advertising
Direct
7,951
4,264
-
Premises costs
Direct
3,549
296,287
-
Travel
Direct
110
3,331
-
Hire of equipment
Direct
-
6,860
-
Printing, stationery etc
Direct
152
13,195
-
Depreciation
Direct
7,296
8,263
-
Legal and professional
Direct
7,094
13,657
7,100
Bank charges
Direct
45
1,212
-
Bad and doubtful debts
Direct
-
(12,290)
-
Grant payments
Direct
362,530
-
-
Unrecoverable VAT
Direct
3,381
-
-
Other costs
Direct
4,937
730
-
494,139
542,368
41,941		 2023
£
338,794
12,215
299,836
3,441
6,860
13,347
15,559
27,851
1,257
(12,290)
362,530
3,381
5,667
1,078,448		 2022
£
319,554
15,293
255,416
349
6,730
9,919
14,047
23,225
1,152
(2,199)
452,034
11,587
6,681
1,113,788

25

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023

4h. TOTAL RESOURCES EXPENDED (Prior year)

Basis of
allocation
Projects and
grants
Property
management
Governance
Costs directly allocated to
activities
£
£
£
Staff costs
Direct
93,482
179,699
46,373
Advertising
Direct
14,523
770
-
Premises costs
Direct
17,982
237,434
-
Travel
Direct
78
271
-
Hire of equipment
Direct
-
6,730
-
Printing, stationery etc
Direct
623
9,296
-
Depreciation
Direct
6,389
7,658
-
Legal and professional
Direct
3,805
13,420
6,000
Bank charges
Direct
15
1,137
-
Bad and doubtful debts
Direct
-
(2,199)
-
Grant payments
Direct
452,034
-
-
Unrecoverable VAT
Direct
11,587
-
-
Other costs
Direct
4,880
1,801
-
605,398
456,017
52,373		 2022
£
319,554
15,293
255,416
349
6,730
9,919
14,047
23,225
1,152
(2,199)
452,034
11,587
6,681

1,113,788

26

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023

4i. GRANT PAYMENTS

Grants were awarded to the following organisations during the year:

Restricted Grants:
Take 1 Studios
Signpost to Polish Success
A-Star Sports Development
Notts Club for Young People
The Lenton Centre
Primary (Nottingham Studios)
Switch Up CIC
Nottingham Health & Education Support
The Pythian Club
Hyson Green Youth Club
Building Bridges Breaking Barriers
East African Education Centre
Nottingham Bikeworks
Fearless Youth Association
Freedom Foundation
Helping Kids Achieve
Basford Rd Baptist Church
The Toy Library
Inspire-Succeed CIC
Skills Exchange
OnPoint Distribution
Positively Empowered Kids
Empleo
Notts County Football in the Community
SALTAR
Community Based Fitness
Sherwood Playgroup
Sikh Community & Youth Services
Queen’s Walk Community Association
The Vine Community Centre
Senior Support Group
Restricted grants carried forward		 2023
£
12,600
10,450
-
4,180
7,960
-
9,525
-
-
9,300
8,000
3,000
-
-
9,205
5,000
750
62,615
-
-
-
2,100
19,100
4,700
-
4,415
6,400
1,900
595
2,500
-
184,295		 2022
£
7,500
8,000
7,720
18,970
5,160
3,000
12,200
17,500
29,825
22,800
23,708
2,250
10,525
9,025
14,600
3,000
750
34,191
8,300
400
1,540
5,610
14,325
3,000
1,000
5,000
6,660
-
-
-
4,000
280,559

27

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023

4i. GRANT PAYMENTS (continued)

Restricted grants brought forward
Belong
Hoop Dreams Basketball Club
When Women Gather
AJ Sports
Wild Things
Wollaton Park Community Association
Windmill Community Gardens
Women in Tandem
The Bridges Community Trust
The Bestwood Partnership
Djanogly Learning Trust
Welcome to Education project
Djanogly Lettings
Vanclaron CIC
Himmah
Jawaid Khaliq Boxing Academy
Leadership, Empowerment & Diversity (LED)
Mother’s Voices
AKA Health Wealth & Oneness
St Aidan’s Church
Nottingham Health & Education Centre
Nottinghamshire County Cricket Club
Nottingham Forest Community Trust
Trent Bridge Community Trust
Total Restricted Grants		 2023
£
184,295
20,000
5,500
1,900
22,235
8,700
-
2,000
2,180
10,500
21,500
-
-
940
3,320
-
-
-
-
24,080
2,010
7,520
2,660
8,550
34,640
362,530		 2022
£
280,559
18,250
8,340
6,000
30,100
10,150
1,500
7,000
8,040
34,425
21,100
4,000
1,780
400
4,100
1,600
1,520
1,800
770
9,600
1,000
-
-
-
-
452,034

28

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023

5. STAFF COSTS AND TRUSTEES REMUNERATION

Wages and salaries
Social security costs
Pension costs		 Total
2023
£
302,151

25,683
10,960
338,794
 Total
2022
£
288,674
21,204
9,676
319,554

The number of employees whose annual remuneration (staff costs and pension contributions) was £60,000 or more were:

2023 2022
Number Number
£60,001 - £70,000 1 1

Average number of employees, calculated on a full-time equivalent basis, analysed by function was:

Number Number
2023 2022
Charitable activities 12 12
Governance 1 1
13 13
None of the Trustees received remuneration during the year.
No Trustee expenses were incurred in the year.
Remuneration of key management personnel
Remuneration of key management personnel is as follows:
Total Total
2023 2022
£ £
Aggregate compensation 67,788 65,638

6. TRUSTEES INDEMNITY INSURANCE

The charity paid £465 (2022: £829) during the year in respect of indemnity insurance for Trustees.

29

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023

7a. TANGIBLE FIXED ASSETS (Group)

Computer
equipment
£
Fixtures,
fittings,
vehicles &
equipment
£
COST
Brought forward at 1 April 2022
55,339
217,190

Transfer to investment property
-
-
Additions
1,373
11,402
Disposals
-
-

At 31 March 2023
56,712
228,592

DEPRECIATION
Brought forward at 1 April 2022
53,398
167,889

Transfer to investment property
-
-
Charge for the year
853
14,706
Eliminated on disposals
-
-
At 31 March 2023
54,251
182,595

NET BOOK VALUE
At 31 March 2023
2,461
45,997
At 31 March 2022
1,941
49,301
ANGIBLE FIXED ASSETS (Charity)
Computer
equipment
£
Fixtures,
fittings,
vehicles &
equipment
£
COST
Brought forward at 1 April 2022
19,024
99,231

Transfer to investment property
-
-
Additions
-
-
Disposals
-
-

At 31 March 2023
19,024
99,231

DEPRECIATION
Brought forward at 1 April 2022
18,149
72,406
Transfer to investment property
-
-
Charge for the year
362
6,934
Eliminated on disposals
-
-
At 31 March 2023
18,511
79,340
NET BOOK VALUE
At 31 March 2023
513
19,891
At 31 March 2022
875
26,825		 Total
£
272,529
-
12,775
-
285,304

221,287
-
15,559
-
236,846

48,458
51,242
Total
£
118,255
-
-
-
118,255

90,555
-
7,296
-
97,851
20,404
27,700

7b. TANGIBLE FIXED ASSETS (Charity)

30

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2022

8.
INVESTMENTS
FIXED ASSETS
Investment Properties:
Cost/valuation b/f
Additions
Disposals
Revaluations
Transfer to current assets
Cost/valuation c/f
Shares in Subsidiary Undertaking:		 Group
2023
£
1,548,052
-
-
-
-
1,548,052
-
1,548,052		 Group
2022
£
1,532,502
15,550
-
-
-
1,548,052
-
1,532,502		 Charity
2023
£
1,532,502
-
-
-
-
1,548,052
100
1,548,152		 Charity
2022
£
1,532,502
15,550
-
-
-
1,548,052
100
1,548,152

The properties were last professionally revalued by Savills in 2013. The Trustees believe that there would be undue cost involved in attaining a further professional valuation and have instead opted to value the properties themselves individually at open market value as at 31 March 2023.

The shares relate to one hundred shares (2022: one hundred shares) of £1 in Castle Cavendish Limited (company registration number 06113675) which is a wholly owned subsidiary of Castle Cavendish Foundation and the shares are stated at cost.

9. DEBTORS
Trade debtors
Amounts owed from subsidiary undertakings
Other debtors		 Group
2023
£
62,405
-
43,043
105,448		 Group
2022
£
32,235
-
51,446
83,681		 Charity
2023
£
Charity
2022
£
-
-
21,733
24,171
82,363
46,734
104,0633
70,905		 Charity
2023
£
Charity
2022
£
-
-
21,733
24,171
82,363
46,734
104,0633
70,905
70,905

31

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023

10.LIABILITIES: Amounts falling due with one year
Trade creditors
Taxation and social security
Accruals and deferred income

Bank loans and overdrafts
Other creditors

 Group
2023
£
37,428
12,020
47,656

11,559
22,173
130,836		 Group
2022
£
Charity
2023
£
Charity
2022
£
33,450
9,193
2,266
773
772
773
55,938
6,500
5,650
11,077
11,559
11,077
20,728
-
-
121,966
28,024
19,766

Deferred income of £19,227 (2022: £21,247) is included within accruals and deferred income and represents the amounts prepaid by tenants.

11. LIABILITIES: Amounts falling due after one year
Bank loans and overdrafts
Amounts included above which fall due after five
years are as follows:
Payable by instalments		 Group
2023
£
99,320
61,562
 Group
2022
£

110,962
61,753		 Charity
2023
£
99,320

61,562
 Charity
2022
£
110,962


61,753

The bank loans and overdrafts are secured by way of a legal charge dated 2 June 2016 over the Castle Cavendish Works property and a debenture dated 25 January 2016 over all assets of the company.

32

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023

12.
 RESTRICTED FUNDS
At 1 April
2022
£
Area Based Grant (Areas 2, 4 & 5)
26,549
Community Vaccine Champions
-
The Bestwood Partnership
Holiday Activity Fund
-
-
26,549
RESTRICTED FUNDS (Prior year)
At 1 April
2021
£
Area Based Grant (Areas 2, 4 & 5)
26,852
The Kickstart Scheme
Holiday Activity Fund
-
-
26,852		 Income
£
Expenditure
£
Transfers
£
At 31 March
2023
£
342,640
301,128
-
68,061
45,000
40,155
,4,320
9,165
13,420
117,243
-
124,803
(13,420)
9,100
-
1,540
518,303
466,086
-
78,766
Income
£
Expenditure
£
Transfers
£
At 31 March
2022
£
446,470
413,060
(33,713)
26,549
11,857
98,726
11,857
98,726
-
-
-
-
557,053
523,643
(33,713)
26,549

Area Based Grants :

Nottingham City Council has provided grant funding to cover Areas 2, 4 & 5’s ABG Programmes that will fund the associated costs of delivering a range of community-based activities that will support children & young people, train and support people into work, support the elderly and most vulnerable, and support the growth and development of the local community and voluntary sector.

Community Vaccine Champion

The Community Vaccine Champions funding was from Nottingham City Council with the aim of supporting the delivery of innovative approaches to engaging members of the community to increase the uptake of vaccinations and to proactively address health inequalities.

The Bestwood Partnership

Throughout 2022-23 we developed and delivered several jointly-funded projects in partnership with a fellow AreaLead Organisation, The Bestwood Partnership. This work focused on supporting the Holiday Activity Fund provision for children & young people, along with joint initiatives relating to the Community Vaccine Champions funding.

Holiday Activity Fund

This is a City-wide programme supported by the Department of Education’s Holiday Activity & Food Programme, which is aimed at tackling child hunger during the school holidays. The programme is focused on providing free activities and food for children in receipt of free school meals and is delivered in partnership with Play & Youth community partners.

The Kickstart Scheme

This was government funding that tried to support 16-24 year olds on Universal Credit into work. Funding covers 100% of the National Minimum Wage for 25 hours per week for a total of 6 months, alongside funding towards Employer National Insurance contributions and automatic enrolment pension contributions.

.

33

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023

13a. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS
GROUP
Tangible fixed assets and investments
Net current assets/(liabilities)

Long term liabilities
CHARITY
Tangible fixed assets and investments
Net current assets/(liabilities)

Long term liabilities		 General
funds
£
Restricted
funds
£
1,596,510
-
18,785
78,766

(99,320)
-
1,515,975
78,766
1,568,556
-
40,339
78,766

(99,320)
-
1,509,575
78,766		 Total
£
1,596,510
97,551
(99,320)

1,594,741
1,568,556
119,105
(99,320)

1,588,341

13b. ANALYSIS OF NET ASSETS BETWEEN FUNDS (prior year)

GROUP
Tangible fixed assets and investments
Net current assets/(liabilities)

Long term liabilities
CHARITY
Tangible fixed assets and investments
Net current assets/(liabilities)

Long term liabilities		 General
funds
£
Restricted
funds
£
1,599,294
-
23,706
26,549

(110,963)
-
1,512,037
26,549
1,575,852
-
40,748
26,549

(110,963)
-
1,505,637
26,549		 Total
£
1,599,294
50,255
(110,963)

1,538,586
1,575,852
67,297
(110,963)

1,532,186

14. SUBSIDIARY COMPANY

The Charity owns the whole of the issued ordinary share capital of Castle Cavendish Limited, a company registered in England & Wales, company number 06113675. All activities have been consolidated on a lineby-line basis in the SOFA. Any total net profits will be gifted to the charity as and when the company begins to make a profit. A summary of the results of the subsidiary is shown below:

Castle Cavendish Limited
Income
Other income
Administrative expenses
Trading profit
Other operating costs

Net operating profit
Distribution to charity (CCF)
Profit for period		 2023
£
616,300
-
(546,395)
69,905
4,026
73,931
(73,931)
-		 2022
£
529,886
11,857
(450,029)
91,714
(5,459)
86,255
(86,255)
-

34

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023

14. SUBSIDIARY COMPANY (continued)

The aggregate of the assets, liabilities and funds was:
Assets
Liabilities
Funds (representing 100 ordinary shares of £1)		 2023
£
204,974
(198,474)
6,500		 2022
£
159,126
(152,626)
6,500

15. RELATED PARTY TRANSACTIONS

During the year, various transactions took place between Castle Cavendish Foundation and Castle Cavendish Limited, a wholly owned subsidiary. There were also two related party transactions outside of the group.

The subsidiary is a trading arm of the Charity and commercially manages its property portfolio, receiving income from property rentals, conference bookings, training sessions and room hire, whilst also acting as agent for the management of the rest of the investment property portfolio.

At the balance sheet date £21,733 was owed from (2022: £24,171 was owed to) Castle Cavendish Limited by the Charity.

During the year, Castle Cavendish Limited has donated profits totalling £49,493 (2022: £86,255). £49,202 (2022: £26,255) of this remains due to Castle Cavendish Foundation at the balance sheet date, in addition to the above amounts.

C Elder, one of the directors of the subsidiary, is a partner at Browne Jacobson. Browne Jacobson provided legal services to Castle Cavendish Limited but C Elder was not involved in the services provided. The services provided during the year totalled £5,139 (2022: £nil).

Z Powers, who is a trustee of Castle Cavendish Foundation, provides marketing services through his business Altermata. This company provided marketing support to Castle Cavendish Limited and Castle Cavendish Foundation during the year totalling £10,202 (2022: £5,363).

16. FINANCIAL COMMITMENTS

As at 31 March 2023, the company was committed to making the following payments under non-cancellable operating leases relating to leased properties:

Operating leases which expire:
Within one year

Between two and five years

In over five years
 2023

£
4,367
6,914
63,885		 2022
£
-
-
63,885

The above includes an annual charge payable of £63,885 on a 125-year lease to 8 October 2131 with Nottingham City Council.

35

CASTLE CAVENDISH FOUNDATION (A company limited by guarantee)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023

17. PENSION COSTS

Defined Contribution Scheme:

The charity operates a defined contribution scheme in respect of some staff. The scheme and its assets are held by independent managers and contributions were made from April 2016. Total contributions made during the year were £10,960 (2022: £9,676).

18. CASH GENERATED FROM OPERATIONS

Surplus /(Deficit) for the year
Adjustments for:
Interest paid
Depreciation of tangible assets
Transfer to investment property
Movements in working capital:
Increase in debtors
Increase in creditors
Cash generated from/(absorbed by) operations		 2023
£
56,155
4,084
15,561
-
(21,767)
8,869
62,902		 2022
£
(26,850)
4,817
15,541
(1,494)
(17,342)
14,710
(10,618)

36