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← Norman Garon Trust

2023-12-31-accounts

Company registration number: 06291022 Charitable company registration number: 01120656

Norman Garon Trust

(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 December 2023

Edmund Carr LLP Chartered Accountants & Statutory Auditor 146 New London Road Chelmsford Essex CM2 0AW

Norman Garon Trust

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 4
Independent Auditors' Report 5 to 8
Consolidated Statement of Financial Activities 9
Consolidated Balance Sheet 10
Balance Sheet 11
Consolidated Statement of Cash Flows 12
Statement of Cash Flows 13
Notes to the Financial Statements 14 to 38

Norman Garon Trust

Reference and Administrative Details

Company Registration Number 06291022
Charitable company Registration 01120656
Number
Trustees P J Tolhurst
R A Bye
R C L Furlonger
M E Hughes
P J Stennett
Secretary P J Tolhurst
Registered Office Third Floor
Marlborough House
Victoria Road South
Chelmsford
Essex
CM1 1LN
The charitable company is incorporated in England and Wales.
Solicitors Marlborough House Partners LLP
Marlborough House
Victoria Road South
Chelmsford
Essex
CM1 1LN
Bankers Lloyds Bank Plc
77 High Street
Southend-on-Sea
Essex
SS1 1HT
Auditor Edmund Carr LLP
Chartered Accountants & Statutory Auditor
146 New London Road
Chelmsford
Essex
CM2 0AW

Page 1

Norman Garon Trust

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 December 2023.

Objectives and activities

Objects and aims

The objectives of the charity are such charitable purposes as the Trustees determine and in particular to promote community participation in healthy recreation by providing facilities for playing particular sports and to provide funding for scouting organisations in Essex and to generally assist young people in the same area. The charity aims in particular to support a scouting presence in Sutton Manor and the immediate and surrounding areas. In achieving its objectives and aims the charity hopes to enrich the lives of Essex’s youth and local communities.

Public benefit

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Grant making policies

The charity makes funds available primarily to the Essex County Scout Council (The Scout Council) for capital projects undertaken by the Scout Council and for distribution amongst Scout ‘Units’ within Essex. The amount made available for distribution is based on an annual budget of projected applications received from The Scout Council, with actual expenditure monitored by the trustees by way of reports received from The Scout Council. Applications received by the Scout Council’s Grants Committee are from Scout Groups, Scout Districts, individual Scout members and the County itself, with members of the Committee visiting the applicants as appropriate to assess such requests and ensure that all grants are properly spent. Additionally, the charity makes grants supporting specific scouting activities in the Sutton Manor area. Further, the charity supports a number of other projects to help young people from the Southend-on-Sea and Essex area.

Financial review

During the year, the group had income of £2,833,616 (2022: £2,763,643) and expenditure of £2,775,359 (2022: £2,459,100) leading to a surplus of £58,259 (2022: £304,543).

At the year-end, the group held funds of £5,557,500 (2022: £5,499,449). All funds are unrestricted.

The Trust has, so as to meet the objections of Southend-on-Sea City Council to its claim for statutory Charity Rate relief, absorbed the operating business of the Golf Centre into the Trust, and its now operating that directly, rather than through a wholly owned subsidiary.

Policy on reserves

The trustees endeavour to ensure that the funds of the charity retain their value in real terms. This has previously been achieved by accumulating sufficient income in reserves to at least match inflation. Additionally, the Trustees look to a level of reserves now maintained to ensure the smooth running of the charity and to enable the trustees to maintain a steady level of grants without resorting to capital funds.

Reflecting the long term nature of the trustee investment portfolio, the trustees believe that sufficient resources should be retained equivalent to the greater of 6 months income or 6 months overheads and committed grants at any time, to mitigate any temporary loss of income.

Page 2

Norman Garon Trust

Trustees' Report

Going concern

After making enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Structure, governance and management

Recruitment and appointment of trustees

The power to appoint new trustees is vested in the trustees. Upon appointment a new trustee is provided with copies of the last report and accounts, the minutes of the last meeting and a copy of the grant making policies.

Induction and training of trustees

At the new trustee’s first meeting the Chairman explains how the charity operates, answers any questions and explains points throughout the meeting and all subsequent meetings.

Organisational structure

The Norman Garon Trust charity is established as a company limited by guarantee incorporated on 25 June 2007, under company number 6291022. It is also registered as a charity with the Charity Commission, number 1120656. The charity's governing document is its Memorandum and Articles of Association. The investment policy of the trustees is to maximise the long-term income of the charity to meet its stated main objectives of providing grants and loans to organisations in Essex.

Major risks and management of those risks

The trustees have reviewed the major risks for the charity and have ensured adequate procedures have been established to manage the risks. As a consequence, the trustees believe that the charity is well placed to manage its business risks successfully despite the current uncertain economic climate.

During the year the Trustees recognised their over reliance on the Chairman to manage the operational parts of the Trust, and the vulnerability of the Trust should he not be available. They therefore resolved to appoint a full time Chief Executive to take over that role, and following a successful recruitment process, K Hepple took up office in April 2024.

Page 3

Norman Garon Trust

Trustees' Report

Statement of trustees' responsibilities

The trustees (who are also the directors of Norman Garon Trust 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), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". The report and accounts have been prepared in accordance with the provisions in the Companies Act 2006 relating to small companies.

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the parent charitable company and the group and of the incoming resources and application of resources, including its income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the parent charitable company and the group 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 parent charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Disclosure of information to auditor

Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charitable company's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditor

The auditors Edmund Carr LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.

The annual report was approved by the trustees of the charitable company on 11 September 2024 .................... and signed on its behalf by:

P J Tolhurst

......................................... P J Tolhurst Company Secretary and Trustee

Page 4

Norman Garon Trust

Independent Auditor's Report to the Members of Norman Garon Trust

Opinion

We have audited the financial statements of Norman Garon Trust (the 'charitable parent company') and its subsidiary (the 'group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows, Statement of Cash Flows 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 United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (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 responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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' Report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Trustees' 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.

Page 5

Norman Garon Trust

Independent Auditor's Report to the Members of Norman Garon Trust

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

We have nothing to report in this regard.

Opinion on other matter 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 the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements 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 (set out on page 4), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Page 6

Norman Garon Trust

Independent Auditor's Report to the Members of Norman Garon Trust

Auditor 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.

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

• The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

• We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations for the company, including the Companies Act and Charities Act, tax legislation and data protection, anti-bribery, employment, environmental and health and safety legislation.

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

• Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud.

• Considering the internal controls in place to mitigate the risks of fraud and non-compliance with laws and regulations

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

• Performed analytical procedures to identify any unusual or unexpected relationships

• Tested journal entries to identify unusual transactions

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

• Agreeing financial statement disclosures to underlying supporting documentation

• Enquiring of management as to actual and potential litigation and claims

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

Use of our report

This report is made solely to the charitable parent company's trustees, 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 group's trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable parent company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Page 7

Norman Garon Trust

Independent Auditor's Report to the Members of Norman Garon Trust

S A Morrell

...................................... Sandra Morrell FCCA (Senior Statutory Auditor) For and on behalf of Edmund Carr LLP, Statutory Auditor

146 New London Road Chelmsford Essex CM2 0AW

12 September 2024 Date:.............................

Page 8

Norman Garon Trust

Consolidated Statement of Financial Activities for the Year Ended 31 December 2023 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and grants
Charitable activities
3
Other trading activities
4
Investment income
5
Total income
Expenditure on:
Raising funds
6
Charitable activities
7
Other expenditure
Total expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
22		 Unrestricted
funds
£
-
571,869
2,184,706
77,041
2,833,616
1,671,965
1,018,483
84,911
2,775,359
58,257
58,257
5,499,243
5,557,500		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 Total
2023
£
-
571,869
2,184,706
77,041
2,833,616
1,671,965
1,018,483
84,911
2,775,359
58,257
58,257
5,499,243
5,557,500		 Total
2022
£
3,032
-
2,680,782
79,829
2,763,643
1,906,876
467,313
84,911
2,459,100
304,543
304,543
5,194,700
5,499,243

All of the group's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note 22.

Page 9

Norman Garon Trust

(Registration number: 06291022) Consolidated Balance Sheet as at 31 December 2023

Note
Fixed assets
Intangible assets
13
Tangible assets
14
Investments
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
18
Creditors: Amounts falling due within one year
19
Net current (liabilities)/assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
20
Net assets
Funds of the group:
Unrestricted income funds
Unrestricted funds
Total funds
22		 2023
£
509,464
3,290,492
1,800,000
5,599,956
139,355
47,212
328,661
515,228
(557,684)
(42,456)
5,557,500
-
5,557,500
5,557,500
5,557,500		 2022
£
594,375
3,245,412
1,800,000
5,639,787
142,049
42,226
339,568
523,843
(511,082)
12,761
5,652,548
(153,305)
5,499,243
5,499,243
5,499,243

These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006.

The financial statements on pages 9 to 38 were approved by the trustees, and authorised for issue on 11 September 2024 .................... and signed on their behalf by:

P J Tolhurst

......................................... P J Tolhurst

Company Secretary and Trustee

Page 10

Norman Garon Trust

(Registration number: 06291022) Balance Sheet as at 31 December 2023

Note
Fixed assets
Intangible assets
13
Tangible assets
14
Investments
15
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
18
Creditors: Amounts falling due within one year
19
Net current liabilities
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
20
Net assets
Funds of the charitable company:
Unrestricted income funds
Unrestricted funds
Total funds
22		 2023
£
509,464
3,290,492
1,899,001
5,698,957
139,355
69,949
167,466
376,770
(518,227)
(141,457)
5,557,500
-
5,557,500
5,557,500
5,557,500		 2022
£
-
2,899,991
3,215,000
6,114,991
-
76,165
68,518
144,683
(208,369)
(63,686)
6,051,305
(153,305)
5,898,000
5,898,000
5,898,000

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

The financial statements on pages 9 to 38 were approved by the trustees, and authorised for issue on 11 September 2024 .................... and signed on their behalf by:

P J Tolhurst

......................................... P J Tolhurst

Company Secretary and Trustee

Page 11

Norman Garon Trust

Consolidated Statement of Cash Flows for the Year Ended 31 December 2023

Note
Cash flows from operating activities
Net income
Adjustments to cash flows from non-cash items
Depreciation
14
Amortisation
14
Investment income
5
Working capital adjustments
Decrease/(increase) in stocks
16
Increase in debtors
17
Increase in creditors
19
Increase in deferred income
20
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
5
Purchase of tangible fixed assets
14
Net cash flows from investing activities
Cash flows from financing activities
Repayment of loans and borrowings
19, 20
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December		 2023
£
58,257
99,038
84,911
(77,041)
165,165
2,694
(4,986)
63,168
3,771
229,812
77,041
(144,118)
(67,077)
(173,642)
(10,907)
339,568
328,661		 2022
£
304,543
92,960
84,911
(79,829)
402,585
(48,195)
(43,050)
23,504
17,552
352,396
79,829
(39,635)
40,194
(316,769)
75,821
263,747
339,568

All of the cash flows are derived from continuing operations during the above two periods.

Page 12

Norman Garon Trust

Statement of Cash Flows for the Year Ended 31 December 2023

Note
Cash flows from operating activities
Net (expenditure)/income
Adjustments to cash flows from non-cash items
Depreciation
7
Amortisation
6
Investment income
Revaluation of investments
Fixed assets donated from subsidiary
Working capital adjustments
Increase in stocks
16
Decrease/(increase) in debtors
17
Increase/(decrease) in creditors
19
Increase in deferred income
20
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
Purchase of tangible fixed assets
14
Net cash flows from investing activities
Cash flows from financing activities
Repayment of loans and borrowings
19, 20
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December
18		 2023
£
(340,500)
55,277
84,911
(227,041)
721,624
(424,481)
(130,210)
(139,355)
6,216
182,448
147,747
66,846
227,041
(21,297)
205,744
(173,642)
98,948
68,518
167,466		 2022
£
433,032
40,711
-
(275,188)
-
-
198,555
-
(76,165)
(67,693)
-
54,697
275,188
-
275,188
(272,608)
57,277
11,241
68,518

All of the cash flows are derived from continuing operations during the above two periods.

Page 13

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

1 Charitable company status

The charitable company is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £10 towards the assets of the charitable company in the event of liquidation.

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

Norman Garon Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the charitable company and its subsidiary undertakings drawn up to 31 December 2023.

No statement of financial activities is presented for the charity as permitted by section 408 of the Companies Act 2006. The charitable company made a deficit for the financial year of £340,500 (2022 - surplus of £433,032).

Page 14

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired during the year are included in the statement of financial activities from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the charity and its subsidiary, which are related parties, are eliminated in full.

Going concern

The trustees consider that there are no material uncertainties about the group's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the group.

Income and endowments

All income is recognised once the charitable company has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Grants receivable

Grants are recognised when the group has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Deferred income

Deferred income represents membership fees and block and season ticket fees received for future periods and is released to incoming resources in the period for which it has been received.

Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

Raising funds

These are costs incurred in trading activities that raise funds.

Page 15

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

Charitable activities

Charitable expenditure comprises those costs incurred by the charitable company in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Grant provisions

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources.

Governance costs

These include the costs attributable to the charitable company’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants relating to revenue are recognised in income over the period in which the related costs are recognised.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

The subsidiary is subject to corporation tax on any profit not donated to the parent charity.

Goodwill

Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Tangible fixed assets

Individual fixed assets costing £1,000 or more are included within fixed assets and are initially recorded at cost. Tangible fixed assets are subsequently recorded at cost less accumulated depreciation.'

Amortisation

Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:

Asset class

Goodwill on consolidation

Amortisation method and rate 10% straight line

Page 16

Notes to the Financial Statements for the Year Ended 31 December 2023

Norman Garon Trust

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate Freehold land & buildings 2.6% - 20% straight line Furniture and equipment 20% or 33.3% reducing balance Motor vehicles 20% reducing balance

The golf complex land and buildings are not being depreciated. The freehold land and buildings are being carried at their deemed cost on transition to FRS102, as allowed under section 35. Subsequent additions specifically relating to the clubhouse are also not being depreciated. The trustees have taken the decision not to depreciate the buildings used for charitable purposes as they are regularly maintained and refurbished.

Investment properties

Investment property is carried at fair value, valued with sufficient regularity by the trustees. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Business combinations

Business combinations are accounted for under the purchase method. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the group. All intra-group transactions, balances, income and expenses are eliminated on consolidation. In accordance with Section 35 of FRS 102, Section 19 of FRS 102 has not been applied in these financial statements in respect of business combinations effected prior to the date of transition.

Stock

Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the weighted average cost method.

Trade debtors

Debtors with no stated interest rate and receivable within one year are recorded at transaction price.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Creditors with no stated interest rate and payable within one year are recorded at transaction price.

Page 17

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charitable company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the group.

Pensions and other post retirement obligations

The group operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification

The charity only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other receivables and payables.

Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received.

3 Income from charitable activities

Income from charitable activities
Unrestricted Restricted Total
funds funds 2023
£ £ £
Provision of golf and golf related services to
members 571,869 - 571,869

Page 18

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

4
Income from other trading activities
Trading income in subsidiary
Other income
Trading income in subsidiary
Other income
5
Investment income
Interest receivable and similar income
Income from rents
Interest receivable and similar income
Income from rents		 Unrestricted
funds
£
2,172,950
11,756
2,184,706
Unrestricted
funds
£
2,570,142
110,640
2,680,782
Unrestricted
funds
£
1
77,040
77,041
Unrestricted
funds
£
2,709
77,120
79,829		 Restricted
funds
£
-
-
-
Restricted
funds
£
-
-
-
Restricted
funds
£
-
-
-
Restricted
funds
£
-
-
-		 Total
2023
£
2,172,950
11,756
2,184,706
Total
2022
£
2,570,142
110,640
2,680,782
Total
2023
£
1
77,040
77,041
Total
2022
£
2,709
77,120
79,829

Page 19

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

6 Expenditure on raising funds

a) Costs of trading activities

Golf course trading costs
Depreciation, amortisation and other similar costs
Staff Costs
Golf course trading costs
Depreciation, amortisation and other similar costs
Staff Costs
b) Investment management costs
Amounts payable to property managers
Allocated support costs
Amounts payable to property managers
Allocated support costs		 Unrestricted
funds
£
972,010
43,761
617,001
1,632,772
Unrestricted
funds
£
1,056,173
52,249
758,312
1,866,734
Unrestricted
funds
£
16,306
22,887
39,193
Unrestricted
funds
£
13,277
26,865
40,142		 Restricted
funds
£
-
-
-
-
Restricted
funds
£
-
-
-
-
Restricted
funds
£
-
-
-
Restricted
funds
£
-
-
-		 Total
2023
£
972,010
43,761
617,001
1,632,772
Total
2023
£
1,056,173
52,249
758,312
1,866,734
Total
2023
£
16,306
22,887
39,193
Total
2022
£
13,277
26,865
40,142

Page 20

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

7 Expenditure on charitable activities

7
Expenditure on charitable activities
Note
Provision of golf and golf related
services to members
Grant funding of activities
Staff costs
Allocated support costs
8
Governance costs
8
Depreciation and amortisation
Note
Grant funding of activities
Allocated support costs
8
Governance costs
8
Depreciation and amortisation		 Unrestricted
funds
£
340,615
325,300
212,351
33,578
51,362
55,277
1,018,483
Unrestricted
funds
£
330,115
41,835
54,652
40,711
467,313		 Restricted
funds
£
-
-
-
-
-
-
-
Restricted
funds
£
-
-
-
-
-		 Total
2023
£
340,615
325,300
212,351
33,578
51,362
55,277
1,018,483
Total
2022
£
330,115
41,835
54,652
40,711
467,313

Page 21

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

8 Analysis of governance and support costs

Raising funds expenditure

Charitable investment management costs

Raising funds expenditure
Charitable investment management costs
Repairs
Rates
Insurance
Repairs
Rates
Insurance
Charitable activities expenditure
Interest payable
Sundry expenses
Interest payable
Bank charges
Sundry expenses		 Unrestricted
funds
£
4,610
4,283
13,994
22,887
Unrestricted
funds
£
12,868
15,865
13,997
42,730
Unrestricted
funds
£
8,100
25,479
33,579
Unrestricted
funds
£
21,394
551
4,025
25,970		 Restricted
funds
£
-
-
-
-
Restricted
funds
£
-
-
-
-
Restricted
funds
£
-
-
-
Restricted
funds
£
-
-
-
-		 Total
2023
£
4,610
4,283
13,994
22,887
Total
2022
£
12,868
15,865
13,997
42,730
Total
2023
£
8,100
25,479
33,579
Total
2022
£
21,394
551
4,025
25,970

Page 22

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

Governance costs
Audit fees
Audit of the financial statements
Other fees paid to auditors
Other governance costs		 Total
2023
£
10,700
6,150
34,512
51,362		 Total
2022
£
10,200
5,810
38,642
54,652

Page 23

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

9 Grant-making

Analysis of grants

Analysis
Grants payable		 Grants to institutions
2023
£
2022
£
325,300
330,115

The support costs associated with grant-making are £Nil (31 December 2022 - £Nil).

The charity makes funds available primarily to the Essex County Scout Council (The Scout Council) for distribution amongst Scout ‘Units’ within Essex. The charity also supports a number of other projects to help young people from the Southend-on-Sea and Essex area.

Below are details of material grants made to institutions by the charity.

Name of institution
Essex County Scout Council
Fowler, Smith & Jones Trust
Essex Golf Union		 2023
£
300,000
21,300
4,000
325,300		 2022
£
300,000
26,115
4,000
330,115

10 Net incoming/outgoing resources

Net incoming resources for the year is stated after charging:

Operating leases - plant and machinery
Audit fees
Other non-audit services
Depreciation of fixed assets
Amortisation of goodwill		 2023
£
109,913
10,700
6,150
99,038
84,911		 2022
£
108,040
10,200
5,810
92,960
84,911

11 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the group during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

Page 24

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

12 Staff costs

The aggregate payroll costs were as follows:

The aggregate payroll costs were as follows:
Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2023
£
767,914
48,586
12,852
829,352		 2022
£
703,040
43,830
11,442
758,312

The monthly average number of persons (including senior management / leadership team) employed by the group during the year expressed by head count was as follows:

Employees 2023
No
42		 2022
No
42

No employee received emoluments of more than £60,000 during the year.

All staff costs up to 30 September 2023 were incurred in the trading subsidiary. From 1 October 2023, the majority of employees in the subsidiary were transferred to the charitable company.

Page 25

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

13 Intangible fixed assets
Group
Cost
At 1 January 2023
At 31 December 2023
Amortisation
At 1 January 2023
Charge for the year
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022
Charitable company
Cost
Additions
At 31 December 2023
Amortisation
Charge for the year
At 31 December 2023
Net book value
At 31 December 2023		 Goodwill
£
849,108
849,108
254,733
84,911
339,644
509,464
594,375
Goodwill
£
849,108
849,108
339,644
339,644
509,464		 Total
£
849,108
849,108
254,733
84,911
339,644
509,464
594,375
Total
£
849,108
849,108
339,644
339,644
509,464

Page 26

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

14 Tangible fixed assets

Group
Cost
At 1 January 2023
Additions
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022
Charitable company
Cost
At 1 January 2023
Additions
Transfers
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
Transfers
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022		 Land and
buildings
£
3,466,500
100,197
3,566,697
301,945
63,267
365,212
3,201,485
3,164,555
Land and
buildings
£
3,062,307
14,214
490,176
3,566,697
162,316
47,232
155,664
365,212
3,201,485
2,899,991		 Furniture and
equipment
£
398,699
43,921
442,620
318,133
35,711
353,844
88,776
80,566
Furniture and
equipment
£
-
7,083
435,537
442,620
-
8,030
345,814
353,844
88,776
-		 Motor vehicles
£
5,000
-
5,000
4,709
60
4,769
231
291
Motor vehicles
£
-
-
5,000
5,000
-
15
4,754
4,769
231
-		 Total
£
3,870,199
144,118
4,014,317
624,787
99,038
723,825
3,290,492
3,245,412
Total
£
3,062,307
21,297
930,713
4,014,317
162,316
55,277
506,232
723,825
3,290,492
2,899,991

Page 27

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

The majority of the depreciation on land and buildings relates to the adventure golf course. The trustees have taken the decision not to adopt the revaluation model of accounting for the golf course land and buildings so as not to risk overstating this value in the accounts. They also do not consider that the benefit would outweigh the cost involved in obtaining such a valuation.

15 Fixed asset investments

Group
Investment properties
Investment properties		 2023
£
1,800,000		 2022
£
1,800,000
Cost or Valuation
At 1 January 2023
Provision
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022		 Investment
properties
£
1,800,000
-
1,800,000
1,800,000

The investment properties were revalued in February 2022 by Whirledge & Nott Limited.

Page 28

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

Charitable company
Investment properties
Shares in group undertakings and participating interests		 2023
£
1,800,000
99,001
1,899,001		 2022
£
1,800,000
1,415,000
3,215,000

Shares in group undertakings and participating interests

Cost
At 1 January 2023
At 31 December 2023
Provision for impairment
Charge for year
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022		 Subsidiary
undertakings
£
1,415,000
1,415,000
1,315,999
1,315,999
99,001
1,415,000		 Total
£
1,415,000
1,415,000
1,315,999
1,315,999
99,001
1,415,000

Details of undertakings

Details of the investments in which the charitable company holds 20% or more of the nominal value of any class of share capital are as follows:

Country of Proportion of voting rights Principal
Undertaking incorporation Holding and shares held activity
2023
2022
Subsidiary undertakings
Garon Park Golf Events
Limited		 England and Wales Ordinary 100%
100%		 Golf
course
complex

Page 29

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

16 Stock
Group Charity
2023 2022 2023 2022
£ £ £ £
Stocks 139,355 142,049 139,355 -

Group

The cost of stock recognised as an expense in the year amounted to £448,109 (2022 - £346,302).

17 Debtors

Trade debtors
Due from group undertakings
Prepayments
VAT recoverable
Other debtors
18 Cash and cash equivalents
Cash at bank		 Group
2023
£
2022
£
-
2,128
-
-
25,307
27,143
21,905
1,322
-
11,633
47,212
42,226
Group
2023
£
2022
£
328,661
339,568		 Charity
2023
£
2022
£
-
2,128
51,477
58,122
18,472
4,283
-
-
-
11,632
69,949
76,165
Charity
2023
£
2022
£
167,466
68,518

Page 30

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

19 Creditors: amounts falling due within one year

Bank loans
Trade creditors
Other loans
Other taxation and social security
VAT
Other creditors
Pension scheme creditor
Accruals
Deferred income		 Group
2023
£
2022
£
153,305
23,642
76,888
88,116
-
150,000
15,687
11,074
41,168
14,474
85,101
25,415
-
7,644
37,788
46,741
147,747
143,976
557,684
511,082		 Charity
2023
£
2022
£
153,305
23,642
54,728
-
-
150,000
14,970
-
41,168
14,474
79,771
-
-
-
26,538
20,253
147,747
-
518,227
208,369		 Charity
2023
£
2022
£
153,305
23,642
54,728
-
-
150,000
14,970
-
41,168
14,474
79,771
-
-
-
26,538
20,253
147,747
-
518,227
208,369
208,369

Creditors due within one year includes the following liabilities on which security has been given:

Bank loans
Other loans		 Group
2023
£
2022
£
153,305
23,642
-
150,000
153,305
173,642		 Charity
2023
£
2022
£
153,305
23,642
-
150,000
153,305
173,642		 Charity
2023
£
2022
£
153,305
23,642
-
150,000
153,305
173,642
173,642

The bank loan is secured against the investment properties of the charity.

Bank borrowings

A Lloyds Bank 5 year loan is denominated in £ with a nominal interest rate of 4.51%, and the final instalment is due on 18 July 2024. The carrying amount at year end is £153,305 (2022 - £176,947).

Deferred income

Deferred income
Deferred income at 1 January 2023
Resources deferred in the period
Amounts released from previous periods
Deferred income at year end		 2023
£
143,976
147,747
(143,976)
147,747		 2022
£
126,424
143,976
(126,424)
143,976

The deferred income relates to membership fees received in advance for future periods.

Page 31

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

20 Creditors: amounts falling due after one year

Group Charity
2023 2022 2023 2022
£ £ £ £
Bank loans - 153,305 - 153,305

Creditors amounts falling due after more than one year includes the following liabilities on which security has been given:

been given:
Group Charity
2023 2022 2023 2022
£ £ £ £
Bank loans - 153,305 - 153,305

The bank loans are secured against the investment properties of the charity.

Page 32

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

21 Obligations under leases and hire purchase contracts

Operating lease commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

Other
Within one year
Between one and five years
After five years		 Group
2023
£
2022
£
55,892
109,913
9,933
63,342
1,242
3,725
67,067
176,980		 Charity
2023
£
2022
£
-
-
-
-
-
-
-
-		 Charity
2023
£
2022
£
-
-
-
-
-
-
-
-
-

Page 33

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

22 Funds

Group

Group
Unrestricted funds
Unrestricted funds
Unrestricted funds
Unrestricted funds
Charity
Unrestricted funds
Unrestricted funds
Unrestricted funds
Unrestricted funds		 Balance at 1
January
2023
£
5,499,243
Balance at 1
January
2022
£
5,194,700
Balance at 1
January
2023
£
5,898,000
Balance at 1
January
2022
£
5,464,968		 Incoming
resources
£
2,833,312
Incoming
resources
£
2,763,643
Incoming
resources
£
1,514,107
Incoming
resources
£
932,237		 Resources
expended
£
(2,775,055)
Resources
expended
£
(2,459,100)
Resources
expended
£
(1,132,983)
Resources
expended
£
(499,205)		 Other
recognised
gains/(losses)
£
-
Other
recognised
gains/(losses)
£
-
Other
recognised
gains/(losses)
£
(721,624)
Other
recognised
gains/(losses)
£
-		 Balance at
31
December
2023
£
5,557,500
Balance at
31
December
2022
£
5,499,243
Balance at
31
December
2023
£
5,557,500
Balance at
31
December
2022
£
5,898,000

Page 34

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

23 Analysis of net assets between funds

Group

Intangible fixed assets
Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Total net assets
Intangible fixed assets
Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Creditors over 1 year
Total net assets		 Unrestricted
funds
£
509,464
3,290,492
1,800,000
515,228
(557,684)
5,557,500
Unrestricted
funds
£
594,375
3,245,412
1,800,000
523,843
(511,082)
(153,305)
5,499,243		 Restricted
funds
£
-
-
-
-
-
-
Restricted
funds
£
-
-
-
-
-
-
-		 Total funds at
31 December
2023
£
509,464
3,290,492
1,800,000
515,228
(557,684)
5,557,500
Total funds at
31 December
2022
£
594,375
3,245,412
1,800,000
523,843
(511,082)
(153,305)
5,499,243

Page 35

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

Charity
Intangible fixed assets
Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Creditors over 1 year
Total net assets		 Unrestricted
funds
£
509,464
3,290,492
1,899,001
376,770
(518,227)
5,557,500
Unrestricted
funds
£
2,899,991
3,215,000
144,683
(208,369)
(153,305)
5,898,000		 Restricted
funds
£
-
-
-
-
-
-
Restricted
funds
£
-
-
-
-
-
-		 Total funds at
31 December
2023
£
509,464
3,290,492
1,899,001
376,770
(518,227)
5,557,500
Total funds at
31 December
2022
£
2,899,991
3,215,000
144,683
(208,369)
(153,305)
5,898,000

Page 36

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

24 Analysis of changes in net debt

Group

Cash at bank and in hand
Debt due within one year
Debt due after more than one year
Net cash
Cash at bank and in hand
Debt due within one year
Debt due after more than one year
Net debt		 At 1 January
2023
£
337,183
(173,642)
(153,305)
10,236
At 1 January
2022
£
263,747
(432,247)
(211,469)
(379,969)		 Financing cash
flows
£
(8,522)
20,337
153,305
165,120
Financing cash
flows
£
73,436
258,605
58,164
390,205		 At 31
December
2023
£
328,661
(153,305)
-
175,356
At 31
December
2022
£
337,183
(173,642)
(153,305)
10,236

25 Related party transactions

Group

During the year the group made the following related party transactions:

Marlborough House Partners LLP

(P J Tolhurst is a partner)

During the year, £33,500 (2022: £25,000) was paid to Marlborough House Partners LLP for the management and administration of the charity. At the balance sheet date the amount due to Marlborough House Partners LLP was £9,000 (2022 - £Nil).

Whirledge and Nott

(M E Hughes is a director and shareholder)

During the year, £3,806 (2022: £4,277) was paid to Whirledge and Nott, Chartered Surveyors, These fees are in respect of management charges for collecting rents and arranging maintenance of the properties on the charity’s behalf. At the balance sheet date the amount due to/from Whirledge and Nott was £Nil (2022 - £Nil).

Fowler Smith & Jones Trust

(P J Tolhurst & R Furlonger are trustees)

A loan agreement was entered into in 2020 in which the charity borrowed £800,000 from the Fowler Smith & Jones Trust. During the year, the charity paid the Fowler Smith & Jones Trust interest of £626 (2022: £12,886). The loan has been fully repaid during the year.

Norman Garon Trust also has an arrangement to pay grant monies to the Fowler, Smith & Jones Trust for redistribution to other charities. At the balance sheet date the amount due to/from to Fowler Smith & Jones Trust was £Nil (2022 - £150,000).

Page 37

Norman Garon Trust

Notes to the Financial Statements for the Year Ended 31 December 2023

Essex County Scout Council

(P Stennett & R Bye are trustees)

During the year, the Essex County Scout Council received £300,000 (2022: £300,000) of grants from Norman Garon Trust. At the balance sheet date the amount due to/from Essex County Scout Council was £Nil (2022 - £Nil).

Page 38