**REGISTERED COMPANY NUMBER: 06779241 (England and Wales) REGISTERED CHARITY NUMBER: 1127871** **Report of the Trustees and Financial Statements for the Year Ended 31st March 2022** **for** ## **Hartlebury Castle Preservation Trust** Richards Sandy Audit Services Limited (Statutory Auditor) Thorneloe House 25 Barbourne Road Worcester WR1 1RU **Hartlebury Castle Preservation Trust** ## **Contents of the Financial Statements for the Year Ended 31st March 2022** |||**Page**|| |---|---|---|---| |**Reference and Administrative Details**||1|| |**Report of the Trustees**|2|to|5| |**Report of the Independent Auditors**|6|to|8| |**Statement of Financial Activities**||9|| |**Balance Sheet**||10|| |**Cash Flow Statement**||11|| |**Notes to the Cash Flow Statement**||12|| |**Notes to the Financial Statements**|13|to|25| **Hartlebury Castle Preservation Trust** **Reference and Administrative Details for the Year Ended 31st March 2022** **TRUSTEES** Mrs M S Arden-Davis (resigned 1.4.21) Mr R J Earl Mr S L Ellis Ms S J Finch Ms V Floy Mr R D Greenwood Mr S K Munday Ms H A D M Rawles Mr P West **REGISTERED OFFICE** Hartlebury Castle Hartlebury Kidderminster Worcestershire DY11 7XZ **REGISTERED COMPANY NUMBER** 06779241 (England and Wales) **REGISTERED CHARITY NUMBER** 1127871 **INDEPENDENT AUDITORS** Richards Sandy Audit Services Limited (Statutory Auditor) Thorneloe House 25 Barbourne Road Worcester WR1 1RU **DIRECTOR** Mr S R Bagnall **PROPERTY RENTAL AGENTS** G Herbert Banks The Estate Office Hill House Great Witley Worcestershire WR6 6JB Page 1 **Hartlebury Castle Preservation Trust (Registered number: 06779241)** ## **Report of the Trustees for the Year Ended 31st March 2022** The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st March 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). ## **OBJECTIVES AND ACTIVITIES** ## **Objectives and aims** The Charitable purpose of the Trust is to preserve for the benefit of the people of Worcestershire and the nation, Hartlebury Castle and its historic contents including the Hurd Library, alongside its grounds, parkland and gardens. Secondly to advance the education of the public in the local history and architecture of Worcestershire and the surrounding areas. Hartlebury Castle was the home of successive Bishops of Worcester for over 1000 years (from 855 to 2007) and is now owned and managed by Hartlebury Castle Preservation Trust. The Trust acquired the property and grounds in 2017 for the use and enjoyment of the community, and to allow the nationally important Hurd Library to remain intact and located within the Castle. The Trust opens the Bishop's Palace to the public, operates a gift shop and presents public entertainment, educational activities, and private commercial events at the Castle. The Trust also hosts Worcestershire County Museum (operated separately by a partnership between Worcester City Council and Worcestershire County Council) on the site. ## **Our Vision is that:** Hartlebury Castle, through careful stewardship, is cherished, celebrated and understood, providing an unmissable experience that inspires, informs and delights all who visit. ## **We believe in:** - Sharing the diversity of historical and natural landscapes that contribute to the uniqueness of Hartlebury Castle. - Treasuring Hartlebury Castle and its collections and becoming recognised as a passionate and innovative leader in the guardianship and sharing of our heritage. - Developing the gardens and grounds to provide an ecological haven for wildlife and telling the story of the Castle's estate over its 1000-year history. - Enthusing partners and communities to nurture learning and engagement and to encourage wellbeing. **"What is there to say about this splendiferous place? Magnificent grounds, beautiful artifacts and history brought to life in the most magical way"** (Visitor quote) ## **Public benefit** In setting the Trust's objectives and planning its activities, the trustees have given careful consideration to the Charity Commission's general guidance on public benefit. The charity fulfils its purpose and its vision by opening Hartlebury Castle and its grounds and gardens to the public and sharing the stories and history of Hartlebury and the Bishops of Worcester in an entertaining and engaging way. Page 2 **Hartlebury Castle Preservation Trust (Registered number: 06779241)** ## **Report of the Trustees for the Year Ended 31st March 2022** ## **ACHIEVEMENT AND PERFORMANCE Charitable activities Trustees Statement** The early part of this financial year was again dominated by challenges resulting from the ongoing Covid-19 pandemic as the public restrictions were slowly lifted. Indoor hospitality reopened on 17th of May with restrictions not fully lifted until 19th July. Initially, visitor attendances and ticket sales for public events were slow to recover but as the summer progressed the Trust saw an improvement in public appetite to visit with numbers attending slowly returning to pre-pandemic levels and in some months showing a welcome uplift to these levels. Trustees characterised 2021/22 as the beginning of post Covid-19 recovery. The operating environment was variable and unpredictable. Throughout the year priority was given to promoting events and activities designed to encourage visitors to return to the site and to attract new visitors. Emphasis was paid to developing and encouraging family visits. Whilst the forced site opening restrictions since March 2020 have been frustrating and difficult to manage, they have allowed a welcome period of reflection and rebuilding. Work continued this year to implement the new business plan developed during lockdown and the staff team was restructured at the start of this financial year to ensure there was sufficient management focus on revenue generation, operations, marketing and event delivery. Again this year, the Trust has benefitted from the government's Cultural Recovery Fund. This funding has allowed the Trust to purchase equipment and services specifically designed to reduce future overheads and to aid future resilience. Funding was also used to support and promote the summer events programme as part of the drive to build back audiences. The Trust also received final payments in relation to the NLHF Heritage Grant that funded the original site purchase and visitor attraction development. The Trust is extremely grateful to the National Lottery Heritage Fund for their continued support and advice. ## **"This is a wonderful place to visit for all interested in either history, nature or just fun!"** (Visitor quote) ## **Charitable activities** Despite challenging trading conditions, the year was marked by a series of successful events and activities particularly as visitor numbers began to recover in the second half of the year. The Trust presented family outdoor theatre, outdoor concerts and indoor ticketed events including sell out performances of Macbeth. New themed activity weekends were launched including a 50s weekend and the Gnome on the Roam family event. Trustees were pleased that good progress has been made in attracting the important family visitors to the site and recent developments such as the audio guides and the nature trail were particularly popular with this demographic. Grounds and gardens-only visitors were well ahead of pre-pandemic levels which reflected the improvements made to the site and the huge amount of work done by the volunteer grounds management team. **"Great! Visited for a production of Macbeth - the staff were super-helpful and friendly - we didn't see much of the place outside but it was lovely inside and a great venue for the play."** (Visitor quote) ## **Volunteering** The Trust continues to benefit from the continued support of a loyal and enthusiastic team of volunteers, from house stewards, Hurd Library and events volunteers, to gardeners, grounds and buildings maintenance teams. Trustees were delighted that so many volunteers returned as the pandemic restrictions were lifted, but in common with other organisations that rely on volunteers, recruitment and retention has been challenging since the pandemic. However, new volunteers have been recruited this year and volunteer engagement is slowly returning to pre-pandemic levels. The Trust is extremely grateful to all volunteers without whose contribution Hartlebury Castle could not function effectively. Feedback from visitors indicates that they value our volunteer's friendly, enthusiastic and knowledgeable presence on the site. ## **"A lovely experience, great improvements, over the last 3 years. As always fantastic staff and guides"** (Visitor quote) Page 3 ## **Hartlebury Castle Preservation Trust (Registered number: 06779241)** ## **Report of the Trustees for the Year Ended 31st March 2022** ## **Future Ambition - Looking Forward** The Trust's priority over the coming year will be to continue to work towards a significant increase in visitor numbers to the site. This will be achieved through an extensive programme of activities and events largely targeting family visitors. To this end the new adventure playground is due for completion in early summer and is expected to be a popular addition to the grounds and gardens offer and to the overall visitor experience. This drive to attract more visitors sits alongside work to increase weddings and private events on the site. This business has been severely impacted by the pandemic but looks to be positive in the coming year. Trustees are very keen to improve public engagement with the Hurd Library and exciting plans are in development to achieve this ambition. Terms of reference have been agreed for the Hurd Librarian and good progress has been made to strengthen the library volunteer team with the aim of increasing access for visitors in particular group visits and tours. ## **FINANCIAL REVIEW** ## **Financial position** The charity has received grant income totalling £274,579 (2021: £301,479) in the year, with £83,377 (2021: £116,157) being received from the National Lottery Heritage Fund to help fund the refurbishment of the Castle and grounds and £143,757 (2021: 166,500) from the National Lottery Heritage Fund Culture Recovery Fund to help the charity recover from months of lost income following the coronavirus pandemic. Other grants were received from Wychavon District Council as well as the conversion of £25,000 of loan funds to grant income from Worcestershire County Council. The charity also benefits from being able to rent out several properties on the grounds of the castle which have generated income of £30,818 (2021: £29,467). The balance sheet shows that the charity held cash of £230,356 the 31st March 2022, which is a decrease of £54,812 on the 2021 level of £285,168. At 31st March 2022, the charity held net assets of £4,693,086 (2021: £4,715,559) of which £4,490,260 (2021: £4,490,260) is represented by the cost of the freehold property and subsequent refurbishment costs. There were unrestricted reserves at the year end of £76,160 (2021: £76,651) of which £68,851 (2021: 69,754) are considered free reserves, which can be spent on charitable activities as the trustees see fit. Free reserves are considered to be unrestricted funds, less the value of fixed assets not covered by restricted funds. More details regarding the funds can be found in note 24. ## **Reserves policy** The attached financial statements show the current state of the finances and of the charity's income and expenditure for the year. The trustees regularly examine the requirements for income reserves adequate to ensure the charity will continue to meet its future needs, and recognise that increased reserves are required. The Trustees are committed to growing a unrestricted funds over the coming years in accordance with the business plan. The unrestricted reserves held at the 31st March 2022 of £76,160 (2021: £76,651) which represents just under 7 months unrestricted fund expenditure at the level shown the accounts, which the trustees consider to be reasonable increase from the seven months included in the prior year. Included in the above unrestricted funds are two designated funds as follows: - **Reserve Fund** This fund of £20,500 represents 2 months unrestricted expenditure at current levels. The trustees believe this is the absolute minimum level of reserves that should be held in the charity at any one time, although will endeavor to exceed this level. - **Deficit Fund** Reserves of £40,000 have been designated by the trustees in order to cover the budgeted deficit for 2022/23. ## **FUTURE PLANS** The financial year to the end of March 2023 will be the first year in the Trust's history that it will receive no public funding, trustees anticipate this will be another challenging operating year as the recovery from the pandemic continues to be unpredictable. The Trust will continue to seek support from individuals, trusts and foundations although recognising that the external funding landscape is problematic. This increases the imperative to deliver sufficient self-generated income. Nevertheless, trustees believe the business plan is robust and will, over the coming 3 years deliver a thriving and sustainable business that ensures Hartlebury Castle's position as an important contributor to the national heritage sector. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Governing document** The charity is controlled by its governing document, Memorandum & Articles of Association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. Page 4 Report ofthe Trust••8 for th• Year Ended 31st March 2022 STRUCTURI GONERNAIICE AND MANAGEMENT Rècrultmert and appolnth*nt of new tru•t¢es As d8llneiJ In the fvknorandum and Artkjes ofAs8rAiakn dth• dwrity. Ihe truste8s 85 ￿8￿85 havg C￿ntrol of the charity and ts propety and fuThts. The trustees V*fion • c4)n8ists of at reast and ftot mora than eJ8ven ind1wdu￿s, all of vhwi must b8 of the Trust. Ckne thinl (or the number neare￿ ong thir(11 of th& tnjstees must retlre at each AGM. WTth th0¥0 ofke first and the bètw9￿ any of equal servjcg berng made ty drav*ing bts. If the m8mbw8 8t the meeJro at a trust8e rkn by rotation d006 not flll the acarKy. lh9 retlnro tnjstee Bhall, rf lo act, be to ha￿ ￿ reap￿)ntId unle88 at the magting 11 ig resow Thjt lo fill the vacaw ￿ unlass a reWAUti￿ frxths apkmjth￿ ofth8 tnJ*8 18 Wrt to the meeUThJ and lost. Atl Iru8te8s glve Ihelr tsmo aThJ frr•n lh8 th¥iity. kny r&Jalmod from the (*arity are 88t ￿1 kn the nLty to tho 8¢xoiint8. The board of tru8te88 rbJularty ￿8￿$ it i)W[t[c￿ In t*ms d pr8cl*al skims. ￿Tr￿n and knovrf&Jg&. Whtre a [￿antIal defid8rw 18 Idenliw. c* In ordar to enhan￿ the pcd of trustee8. the charity ha8. thYDugh soleclfve odth8lng and ne￿￿￿￿n9, SOLwht to idgrttify per￿8 W+￿10 ba williNJ ￿ b￿16 and truste88 &KI u8 thotr ¢M ex￿ri￿ to a$8181 the c*arlty. Potential new tru8t808 are wwjraged lo attend al least ix)aryl rn8￿ to f￿[marr8e I1￿18th 7Mth the cy8rallon and gOV￿nanCe ofthe charity wk)r to apWnlm￿I as 8 tru8teo. Thty are 8r￿￿￿g8d to fami118ri88 ihem88lv88 the g￿dance WUd￿d ty Ihe Chanty COmmts￿￿. in pwtiuJar ts publrauon Tho E$8enti81 TnMIo8'. KEY MANAGEMENT Th6 ￿Y lo day opwadons ofthe ch*lty are d*l&1 by tho to Dkkn. Stwe Bagnom. STATEMENT OF TRU8TEES' RESPONSI8ILmE8 Thé tnJ$lees {vhKJ are aluo the dlr8dots of Haruebury C8slle Pr888ryBttcm Tn￿t fc* thg ¢XIIPO888 of ￿mpAny10w) ar• reSpon￿bI9 for prepanro lh6 Raport of the Trustees and the finanaal stalonwts In a(l￿d￿nCe ￿th applicabjo tow ond Untt&J Klrodom Ac£ountlng Stsndath (Unlte(l Klng(k¥n GM*aNy A• ALxuy￿ Pradic*l. Company law rnqulm Ihe trustees lo prepa￿ fln8n¢fal Statern￿ts treath financial year 9ivg a true and tslr of the 8lale of affairn 01 th9 chArltabtè company and of the incomlTr2 res￿¢￿ appMcaJffi of resources, Includlng the Inccffte and oxpendllure, of tho dwrltablfr c¥mpany for Ihat p￿1. In prep*lrKJ th088 f￿ar￿al *lem&nts. the Iru8teg8 are r8qutred to . •decl 8tsttable acc￿nI￿1 pr*a98 and gppty th¢m observe the method8 and pn￿1p￿S in Ihe Chaty SORP. makeludgmnls an¢J 08timate$ th81 are rea8￿at48 anci prud8nL' ep8rn thg finawal ststements on th8 ￿￿n9 unle88 tt18 to thel th& charltst49 t￿MpanY ￿11 ¢￿tin￿ in IxNne88. The trn181￿ 8re Trspon$ibl& for kown9 ac¢¢MtirwJ r￿l￿d8 %thlc* disdoBe ¥￿th regfjonablè &oJv3cy 01 any time the flnanoal p08rtion of the Chants￿0 ¢xThpany and to Ihem to enwre thot flnandal Bt8tem8rrt8 comply wlth tha Componies Act 2(￿. Tlw are also r98Fowbb8 for sobJuardirg thg 8sset8 d the charftsblg company and hgnce for taklng rea90nable Step8 for the Wthftti(￿ ond (*l￿tion of cther Irrwfarfth. STATEMENT AS TO DISCLOSURE OF IIIFORMATION TO AUDwfoRS So far as Ihe trust8e6 are aware, Iherè is no relevant rnfomiatw (as dth￿l by s￿tion 418 of the Companlgs Act 2006) of whlch th8 charitable compBnVs ￿litorS are UnawA￿, and trustee has tak8n all th9 tsps that they ￿ght to have takgn a$ a trustge in to make them aware of any a￿1[1 tnfomth and to 08t8blO8h that th• tharftabl8 Jmpany's audith are awaTe ofthat Th18 report haB been FXOpa￿ In ￿l￿Ndence the proms1￿ of Part 15 of Ihg C(Ynponleg Act 2CKJ6 relauro to smari companle8. 9Th1 ¥19n￿ tts beh8lf by. Qjr_a Mr R D GreenAwJ. IU8tt8 **Report of the Independent Auditors to the Members of** ## **Hartlebury Castle Preservation Trust** ## **Opinion** We have audited the financial statements of Hartlebury Castle Preservation Trust (the 'charitable company') for the year ended 31st March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31st March 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 27 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the Report of the Trustees has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. Other than the item noted in the emphasis of matter paragraph, we confirm that we have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion: - the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements ; or - the financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we require for our audit. Page 6 ## **Report of the Independent Auditors to the Members of Hartlebury Castle Preservation Trust** ## **Responsibilities of trustees** As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Our responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - Obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the charity operates in and how the charity is complying with the legal and regulatory framework; - Inquired of management, and those charged with governance, about their own identification and assessment of the risks and irregularities, including known actual, suspected or alleged instances of fraud; and - Discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', the Companies Act 2006 (and related legislation), the Charities Act 2011 (and related legislation)), and laws and regulations relating to the employment and payment of staff including, but not limited to, the Employment Rights Act 1996, the National Minimum Wage Act 1998 and the Pensions Act 2008. VAT legislation, specifically partial exemption, is also considered significant to the charity. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements, which included reviewing the financial statement disclosures. This includes sample testing of monthly payroll records for the calculation of gross wages, payroll taxes and pension costs. We have also reviewed VAT calculations for the year for indications of material errors, including testing of the VAT treatment on a sample of sales and purchases. We identified the areas of the financial statements most susceptible to fraud to be management's judgement in allocating expenditure to individual restricted and unrestricted funds, including the allocation of wage costs and general staff overheads. Audit procedures performed included, but were not limited to, reviewing managements reasoning and workings behind these allocations of expenditure. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. Page 7 R•port oftr* [rKk￿nd•nt Audltorn to Membeys of Haruebury Castle Preservation TrL*t of our Teport This report Is made sclely to the dwita￿t ctmpanws memL*rs, a5 a bcxty. in ￿)r￿an￿ wth Chaptér 3 of Part 16 of Companies Aca 2Ct6. Our audit work has been uThJertaken so that we might st* to the chantable (xjmpanls rnemters those m we a￿ r6quired lo stste to in an auditors, report aThY tr no other purpose To the tjllest extent permitted y law, we do not ac(w or assume re5PtX15ibilty to anyone other than the ctror1ta￿e o)mpany aThJ the charrtable ojm ny's rnemters as a b(xgy, fot our audrt wth. reFQrt, or for the 0￿rionS we have I0￿ed. NK4)das Paul Sandy F IS8nior Statutory Auditor) for and on behalf of Rlchards Sandy Audit Lirnrtaj Iststutory Auditorl ThorrEI(E House 25 Bart￿um￿ Road WR11RU Date.. JOLL Page 8 ## **Hartlebury Castle Preservation Trust** ## **Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the Year Ended 31st March 2022** |Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
3
**Charitable activities**
Preservation of Hartlebury Castle
Education of the public in local history and
architecture
Other trading activities
4
Investment income
5
**Total**
**EXPENDITURE ON**
Raising funds
7
**Charitable activities**
8
Preservation of Hartlebury Castle
Education of the public in local history and
architecture
**Total**
**NET INCOME/(EXPENDITURE)**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|**2022**
Unrestricted
Restricted
**Total**
funds
funds
**funds**
£
£
**£**
**78,051**
**257,284**
**335,335**
**9,186**
**-**
**9,186**
**1,795**
**-**
**1,795**
**4,232**
**-**
**4,232**
**30,818**
**-**
**30,818**
**124,082**
**257,284**
**381,366**
**4,833**
**10,226**
**15,059**
**118,621**
**269,040**
**387,661**
**1,119**
**-**
**1,119**
**124,573**
**279,266**
**403,839**
**(491)**
**(21,982)**
**(22,473)**
**76,651**
**4,638,908**
**4,715,559**
**76,160**
**4,616,926**
**4,693,086**|2021
Total
funds
£
340,108
11,247
940
350
29,467| |---|---|---| |||382,112| |||5,678
332,605
3,749| |||342,032| |||40,080
4,675,479| |||4,715,559| The notes form part of these financial statements Page 9 31*t IAarth 2022 2022 Total funds 2021 Total fund8 Js funds FIXED ASSETS Tangible assets Heritsge assets Inveslments 16 17 18 108.387 400.280 115.695 4490.260 105.840 4.4SYJ,260 4605,958 4,596.101 CURREpif ASSErs 19 31142 124.701 162.860 156.843 230.356 130.856 285.168 Gash al bank 287.561 387.199 416,024 CREtMTORS Amounts falling *ithln 20 130.785) (109.2041 (200.0691 1196,566) NET CURRENT ASSETS .•sJ 1183TI 187.130 219,458 TOTAL ASSET8 LESS CURREifT LIABILmE8 76,162 471V24 4791086 4.815.559 CREOITOftS Am¢unts falling due after mrxp than one 21 1100,000) {100,000) I1￿.L￿￿)I NET ASSETS 76.162 4816.924 4893.0 4,715,559 FUNDS Unr851rfcted ThJThJ8 R881rfded fvnd8 24 76,182 4616,924 76.651 4.638.9)8 TOTAL FUNDS 4693.086 4,715,559 Th9$8 finonclal 8tatemgnts ho¥8 b8en prnp8rnd tn •wlanco with tha apwicable to charltat40 oJmpani88 8ubJ0cI to thg smo11 ¢(￿p8nkS8 wlmg. Tho ft emenls V+WO apyov•J by the Bc4nl d Trtthes aulhryl8gd 11... and wpre sTraned ￿ it¥ by.. MrRDGree Pag8 10 ## **Hartlebury Castle Preservation Trust** ## **Cash Flow Statement for the Year Ended 31st March 2022** |Notes
**Cash flows from operating activities**
Cash generated from operations
1
Net cash provided by operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Purchase of heritage assets
Net cash used in investing activities
**Change in cash and cash equivalents in**
**the reporting period**
**Cash and cash equivalents at the**
**beginning of the reporting period**
**Cash and cash equivalents at the end of**
**the reporting period**|**2022**
**£**
**27,016**
**27,016**
**(81,828)**
**-**
**(81,828)**
**(54,812)**
**285,168**
**230,356**|2021
£
60,422
60,422
(35,632)
(41,482)
(77,114)
(16,692)
301,860
285,168| |---|---|---| The notes form part of these financial statements Page 11 ## **Hartlebury Castle Preservation Trust** ## **Notes to the Cash Flow Statement for the Year Ended 31st March 2022** ## **1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES** |**Net (expenditure)/income for the reporting period (as per the**
**Statement of Financial Activities)**
**Adjustments for:**
Depreciation charges
WCC loan converted into grant
Increase in debtors
Increase in creditors
**Net cash provided by operations**|**2022**
**£**
**(22,473)**
**71,973**
**(25,000)**
**(25,987)**
**28,503**
**27,016**|2021
£
40,080
55,511
-
(61,977)
26,808
60,422| |---|---|---| ## 2. **ANALYSIS OF CHANGES IN NET FUNDS** ||||Other|| |---|---|---|---|---| ||||non-cash|| ||At 1.4.21|Cash flow|changes|**At 31.3.22**| ||£|£|£|**£**| |**Net cash**||||| |Cash at bank|**285,168**|**(54,812)**||**230,356**| ||**285,168**|**(54,812)**||**230,356**| |**Debt**||||| |Debts falling due||||| |within 1 year|**(125,000)**|**-**|**25,000**|**(100,000)**| |Debts falling due||||| |after 1 year|**(100,000)**|**-**|**-**|**(100,000)**| ||**(225,000)**|**-**|**25,000**|**(200,000)**| |**Total**|**60,168**|**(54,812)**|**25,000**|**30,356**| ## **3. MAJOR NON-CASH TRANSACTIONS** During the year £25,000 (2021 - £nil) of Worcestershire County Council loan was converted into grant received. This has been treated as a non-cash transaction in the cash flow statement. The notes form part of these financial statements Page 12 **Hartlebury Castle Preservation Trust** ## **Notes to the Financial Statements for the Year Ended 31st March 2022** ## **1. ACCOUNTING POLICIES** ## **BASIS OF PREPARING THE FINANCIAL STATEMENTS** The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. The accounts are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £. ## **GOING CONCERN** After assessing whether the going concern assumption is appropriate, taking into account all available information about the future, which is at least, but is not limited to, twelve months from the date when the financial statements are authorised, the trustees consider the charity able to continue as a going concern. ## **PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS** The financial statements contain information about The Hartlebury Castle Preservation Trust as an individual charity and do not contain consolidated financial information as the parent of a group. The charity is exempt under Section 399(2A) of the Companies Act 2006 and the Charities Act 2011 Section 139(2) from the requirements to prepare consolidated financial statements. ## **INCOME** All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Income from grants (including government grants) and donations is recognised in the period in which the charity is entitled to receipt and the amount can be measured with reasonable certainty. Income from grants is only deferred when the charity has to fulfil conditions not yet met before becoming entitled to it or where the donor has specified that the income is to be expended in a future period. Admissions and subscriptions are considered to be, in substance, donations rather than payment or services. Admissions are recognised on entry. Subscriptions are recognised over the period to which they relate on a straight-line basis. Rental income is recognised in line with the periods to which such income relates, up to the extent that is is probable that such income is recoverable. Where recoverability of rental income is in doubt, such income is instead recognised on a cash basis. Interest income is recognised for all interest-bearing instruments on an accrual basis. ## **EXPENDITURE** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost 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 resources. ## **�FIXED ASSET INVESTMENTS IN SUBSIDIARIES** Fixed asset investments in subsidiaries are measured at cost less impairment. ## **TANGIBLE FIXED ASSETS** Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Plant and machinery - 20% on cost Fixtures and fittings - 20% on cost Computer equipment - 33% on cost Fixed assets are costing less than £100 are not capitalised Page 13 continued... **Hartlebury Castle Preservation Trust** ## **Notes to the Financial Statements - continued for the Year Ended 31st March 2022** ## **1. ACCOUNTING POLICIES - continued** ## **HERITAGE ASSETS** Heritage assets are recognised at cost and are considered to have indefinite useful lives. As such, Heritage assets are not depreciated and are instead reviewed annually for impairment. ## **TAXATION** The charity is exempt from corporation tax on its charitable activities. ## **FUND ACCOUNTING** Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. ## **PENSION COSTS** The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. ## **FINANCIAL INSTRUMENTS** The charity has elected to apply the provisions of Section 11' Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised when the charity becomes party to contractual provisions of the instrument. Financial assets are offset, with the net amounts presented in the accounts where there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## **Basic Financial Assets** Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. ## **Basic Financial Liabilities** Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future receipts, discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of the operations from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction cost. ## **CONCESSIONARY LOANS** Concessionary loan received from third parties on which no interest is to be charged are measured at historical cost. Page 14 continued... **Hartlebury Castle Preservation Trust** ## **Notes to the Financial Statements - continued for the Year Ended 31st March 2022** ## **2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY** The charity makes estimates and assumptions concerning the future. The resulting estimates will, by definition, seldom equal the actual results. The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. ## Depreciation The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful lives and residual values are re-assessed annually. They are amended when necessary to reflect the current estimates, based on the technological advancement, future investment, economic utilisation and the physical condition of the assets. Rates of depreciation are considered on a category basis and disclosed within the accounting policy for depreciation. ## Valuation of Heritage Assets Heritage Assets form a significant part of the value of net assets per the balance sheet The financial statements are therefore sensitive to the change in value of these assets. Heritage Assets are recorded at cost as they are typically unique and therefore no active market is available. The Trustees assess Heritage Assets annually for impairment. ## **3. DONATIONS AND LEGACIES** |Donations
Donations from subsidiary
Grants
Subscriptions
Admissions
Grants received, included in the above, are as follows:
National Lottery Heritage Fund - Culture Recovery Fund
National Lottery Heritage Fund
Worcestershire County Council
Wychavon District Council
Kickstart
Other grants
**4.**
**OTHER TRADING ACTIVITIES**
Fundraising events
**5.**
**INVESTMENT INCOME**
Rents received|**2022**
**£**
**6,657**
**2,960**
**274,579**
**1,127**
**50,012**
**335,335**
**2022**
**£**
**143,757**
**83,377**
**25,000**
**10,667**
**6,628**
**5,150**
**274,579**
**2022**
**£**
**4,232**
**2022**
**£**
**30,818**|2021
£
30,965
-
301,479
989
6,675| |---|---|---| |||340,108| |||2021
£
166,500
116,157
-
10,000
-
8,822| |||301,479| |||2021
£
350
2021
£
29,467| Page 15 continued... ## **Hartlebury Castle Preservation Trust** ## **Notes to the Financial Statements - continued for the Year Ended 31st March 2022** |**6.**
**INCOME FROM CHARITABLE ACTIVITIES**
Activity
Other income
Preservation of Hartlebury Castle
Education of the public in local history and
Learning & education
architecture
**7.**
**RAISING FUNDS**
**RAISING DONATIONS AND LEGACIES**
Fundraising event costs
**OTHER TRADING ACTIVITIES**
Purchases
**INVESTMENT MANAGEMENT COSTS**
Property management costs
Aggregate amounts
**8.**
**CHARITABLE ACTIVITIES COSTS**
Direct
Costs (see
note 9)
£
Preservation of Hartlebury Castle
**283,014**
Education of the public in local history
and architecture
**1,119**
**284,133**|**2022**
**£**
**9,186**
**1,795**
**10,981**
**2022**
**£**
**5,562**
**2022**
**£**
**5,937**
**2022**
**£**
**3,560**
**15,059**
Support
costs (see
note 10)
£
**104,647**
**-**
**104,647**|2021
£
11,247
940
12,187
2021
£
-
2021
£
-
2021
£
5,678
5,678
Totals
£
**387,661**
**1,119**|2021
£
11,247
940|2021
£
11,247
940| |---|---|---|---|---| ||||12,187|| ||||2021
£
-
2021
£
-
2021
£
5,678
5,678|| |||||5,678| |||**388,780**||| Page 16 continued... **Hartlebury Castle Preservation Trust** ## **Notes to the Financial Statements - continued for the Year Ended 31st March 2022** ## **9. DIRECT COSTS OF CHARITABLE ACTIVITIES** |Staff costs
Rates and water
Insurance
Light and heat
Telephone
Advertising
Sundries
Property maintenance
Computer costs
Security
Course costs
**10.**
**SUPPORT COSTS**
Management
£
Preservation of Hartlebury Castle
**4,311**
Support costs, included in the above, are as follows:
Postage and stationery
Training
Travel and subsistence
Licences and subscriptions
Bank charges
Auditors' remuneration
Auditors' remuneration for non audit work
Legal and professional fees
Bookkeeping services
Depreciation of tangible fixed assets
**11.**
**NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
Depreciation - owned assets|**2022**
**£**
**129,920**
**4,666**
**29,657**
**11,433**
**3,937**
**23,479**
**5,077**
**45,510**
**27,928**
**1,407**
**1,119**
**284,133**
Governance
Finance
costs
£
£
**1,570**
**98,766**
**2022**
Preservation
of
Hartlebury
Castle
**£**
**2,188**
**352**
**205**
**1,566**
**1,570**
**3,275**
**6,565**
**16,107**
**846**
**71,973**
**104,647**
**2022**
**£**
**71,973**|2021
£
103,033
1,424
27,950
3,843
3,361
4,070
3,426
80,031
5,576
429
2,943| |---|---|---| |||236,086| |||Totals
£
**104,647**| |||2021
Total
activities
£
**214**
**700**
**-**
**1,290**
**612**
**3,535**
**7,338**
**29,983**
**1,085**
**55,511**| |||**100,268**| |||2021
£
55,511| Page 17 continued... **Hartlebury Castle Preservation Trust** ## **Notes to the Financial Statements - continued for the Year Ended 31st March 2022** ## **12. AUDITORS' REMUNERATION** |**AUDITORS' REMUNERATION**||| |---|---|---| ||**2022**|2021| ||**£**|£| |Fees payable to the charity's auditors for the audit of the charity's financial||| |statements|**3,275**|3,535| |Other non-audit services|**6,565**|7,338| ## **13. TRUSTEES' REMUNERATION AND BENEFITS** There were no trustees' remuneration or other benefits for the year ended 31st March 2022 nor for the year ended 31st March 2021. ## **TRUSTEES' EXPENSES** Two trustees were reimbursed expenses totalling £2,102 in relation to gardening and repair materials purchased for the castle, as well as cleaning and fundraising costs (2021: Two trustees were reimbursed expenses totalling £1,367 in relation to gardening and repair materials purchased for the castle). ## **14. STAFF COSTS** |Wages and salaries
Social security costs
Other pension costs|**2022**
**£**
**122,842**
**4,745**
**2,333**
**129,920**|2021
£
97,364
3,718
1,951| |---|---|---| |||103,033| No employees received remuneration of over £60,000 (excluding employer national insurance and pension costs). Key management remuneration (including employer national insurance and pension costs) in the year totalled £45,313 (2021: £45,322). Pension costs relate to defined contribution schemes only. The average monthly number of employees during the year was as follows: ||**2022**|2021| |---|---|---| |Trust staff|**7**|5| No employees received emoluments in excess of £60,000. Page 18 continued... ## **Hartlebury Castle Preservation Trust** ## **Notes to the Financial Statements - continued for the Year Ended 31st March 2022** ## **15. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES** |**INCOME AND ENDOWMENTS FROM**
Donations and legacies
**Charitable activities**
Preservation of Hartlebury Castle
Education of the public in local history and
architecture
Other trading activities
Investment income
**Total**
**EXPENDITURE ON**
Raising funds
**Charitable activities**
Preservation of Hartlebury Castle
Education of the public in local history and
architecture
**Total**
**NET INCOME**
**Transfers between funds**
**Net movement in funds**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**
**16.**
**TANGIBLE FIXED ASSETS**
**COST**
At 1st April 2021
Additions
At 31st March 2022
**DEPRECIATION**
At 1st April 2021
Charge for year
At 31st March 2022
**NET BOOK VALUE**
At 31st March 2022
At 31st March 2021|Plant and
machinery
£
**112,843**
**15,548**
**128,391**
**85,848**
**25,468**
**111,316**
**17,075**
26,995||Unrestricted
funds
£
56,453
11,247
940
350
29,467
98,457
5,678
79,815
3,749
89,242
9,215
(38,244)
(29,029)
105,680
76,651
Fixtures
and
fittings
£
**155,550**
**63,893**
**219,443**
**80,321**
**43,885**
**124,206**
**95,237**
75,229|Restricted
funds
£
283,655
-
-
-
-
283,655
-
252,790
-
252,790
30,865
38,244
69,109
4,569,799
4,638,908
Computer
equipment
£
**9,553**
**2,387**
**11,940**
**5,937**
**2,620**
**8,557**
**3,383**
3,616||Total
funds
£
340,108
11,247
940
350
29,467| |---|---|---|---|---|---|---| |||||||382,112| |||||||5,678
332,605
3,749| |||||||342,032| |||||||40,080
-| |||||||40,080
4,675,479| |||||||4,715,559| |||||||Totals
£
**277,946**
**81,828**
**359,774**
**172,106**
**71,973**
**244,079**
**115,695**
105,840| Page 19 continued... **Hartlebury Castle Preservation Trust** ## **Notes to the Financial Statements - continued for the Year Ended 31st March 2022** ## **17. HERITAGE ASSETS** |**MARKET VALUE**
At 1st April 2021 and 31st March 2022
**NET BOOK VALUE**
At 31st March 2022
At 31st March 2021|Total
£
**4,490,260**| |---|---| ||**4,490,260**| ||4,490,260| The heritage assets comprise of Hartlebury Castle and its grounds. It is one of the objectives of the charity to preserve and manage Hartlebury Castle and its grounds. Following the completion in prior years, the initial improvements and restoration work following its acquisition was considered necessary in order to bring the property to a suitable condition before it could be opened to the public as a visitor attraction, the charity is not expected to make any additions to or disposals of the heritage assets held. The heritage assets are subject to a charge over the freehold title held by the National Heritage Memorial Fund. More details are provided in Note 22. ## **FIVE-YEAR SUMMARY OF TRANSACTIONS** ||2022|2021|2020|2019|2018| |---|---|---|---|---|---| ||£|£|£|£|£| |Cost at start of year|4,490,260|4,448,778|4,443,351|4,210,449|2,272,000| |Additions in the year|-|41,482|5,427|232,902|1,938,449| ||||||| |**Cost at the year end**|**4,490,260**|**4,490,260**|**4,448,778**|**4,443,351**|**4,210,449**| ||||||| Cost in 2018 of £2,272,000 relates to the initial purchase of Hartlebury Castle and grounds. All subsequent additions relate to significant improvements and restoration work which were considered necessary in order to bring the property to a suitable condition before it could be opened to the public as a visitor attraction. All such improvements and restoration work is considered to have been completed during the prior year. ## **18. FIXED ASSET INVESTMENTS** |**FIXED ASSET INVESTMENTS**|| |---|---| ||Shares in| ||group| ||undertakings| ||£| |**MARKET VALUE**|| |At 1st April 2021 and 31st March 2022|**1**| |**NET BOOK VALUE**|| |At 31st March 2022|**1**| |At 31st March 2021|1| The company's investments at the balance sheet date in the share capital of companies include the following: ## **Hartlebury Castle Company Limited (No:09248664)** Registered office: Hartlebury Castle, Hartlebury, Kidderminster, England, DY11 7XZ Nature of business: To run the Cafe, Shop & Events at the Castle. ||%||| |---|---|---|---| |Class of share:|holding||| |Ordinary|**100**||| |||**2022**|2021| |||**£**|£| |Aggregate capital and reserves||**1**|(14,967)| |Profit/(loss) for the year||**17,555**|(9,115)| Page 20 continued... **Hartlebury Castle Preservation Trust** ## **Notes to the Financial Statements - continued for the Year Ended 31st March 2022** ## **19. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** |Trade debtors
Amounts owed by group undertakings
VAT
Prepayments and accrued income
**20.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Other loans (see note 22)
Trade creditors
Social security and other taxes
Pension control
Other creditors
Accrued expenses
**21.**
**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
Other loans (see note 22)
**22.**
**LOANS**
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Concessionary loans
Amounts falling due between two and five years:
Concessionary loans|**2022**
**£**
**4,840**
**4,709**
**25,134**
**122,160**
**156,843**
**2022**
**£**
**100,000**
**83,606**
**3,686**
**928**
**218**
**11,631**
**200,069**
**2022**
**£**
**100,000**
**2022**
**£**
**100,000**
**100,000**|2021
£
-
17,433
12,270
101,153| |---|---|---| |||130,856| |||2021
£
125,000
52,892
3,571
374
-
14,729| |||196,566| |||2021
£
100,000| |||2021
£
125,000| |||100,000| During the 2020 accounting year Worcestershire County Council made available an unsecured loan facility to aid the charity with cashflow until the remaining Heritage Lottery funds are received. In the prior year Worcestershire County Council agreed to defer the original repayment plan re Covid-19. £25,000 has been converted into a restricted fund grant during the current accounting year to support the construction of a new adventure playground. £100,000 is to be repaid in when the final amount of HLF funding has been recieved. This proportion is therefore treated as a current liability. There is currently no formal repayment date for the final £100,000, however it is likely to be at the end of the current business plan in March 2024. At the year end £200,000 (2021: £225,000) was owed to Worcestershire County Council. No interest is charged on the loan. Page 21 continued... **Hartlebury Castle Preservation Trust** ## **Notes to the Financial Statements - continued for the Year Ended 31st March 2022** ## **23. LEASING AGREEMENTS** Minimum lease payments under non-cancellable operating leases fall due as follows: |Within one year
Between one and five years|**2022**
**£**
**418**
**-**
**418**|2021
£
837
419| |---|---|---| |||1,256| Operating lease payments of £837 (2021: £837) were made during the year. ## **24. MOVEMENT IN FUNDS** |**MOVEMENT IN FUNDS**|||||| |---|---|---|---|---|---| |**Unrestricted funds**
General fund
Reserve fund
Projected deficit for future years
**Restricted funds**
Restoration and preservation fund
Magic mirror fund
HLF resiliant fund
Tesco bags fund
Culture recovery fund - claim 1
Culture recovery fund - claim 2
Culture recovery fund - claim 3
Hereford & Worcester Garden Trust
**TOTAL FUNDS**
Net movement in funds, included in the above are as follows:
**Unrestricted funds**
General fund
**Restricted funds**
Restoration and preservation fund
Magic mirror fund
HLF resiliant fund
Tesco bags fund
Culture recovery fund - claim 1
Culture recovery fund - claim 2
Culture recovery fund - claim 3
Hereford & Worcester Garden Trust
**TOTAL FUNDS**|At 1.4.21
£
**16,151**
**20,500**
**40,000**
**76,651**
**4,579,465**
**1,200**
**134**
**278**
**57,831**
**-**
**-**
**-**
**4,638,908**
**4,715,559**
Incoming
resources
£
**124,082**
**58,752**
**-**
**49,626**
**-**
**-**
**82,557**
**61,199**
**5,150**
**257,284**
**381,366**||Net
movement
in funds
£
**(489)**
**-**
**-**
**(489)**
**(483)**
**(600)**
**(117)**
**(278)**
**(41,028)**
**18,569**
**709**
**1,244**
**(21,984)**
**(22,473)**
Resources
expended
£
**(124,571)**
**(59,235)**
**(600)**
**(49,743)**
**(278)**
**(41,028)**
**(63,988)**
**(60,490)**
**(3,906)**
**(279,268)**
**(403,839)**|At
31.3.22
£
**15,662**
**20,500**
**40,000**|| |||||**76,162**
**4,578,982**
**600**
**17**
**-**
**16,803**
**18,569**
**709**
**1,244**|| |||||**4,616,924**|| |||||**4,693,086**|| |||||Movement
in funds
£
**(489)**
**(483)**
**(600)**
**(117)**
**(278)**
**(41,028)**
**18,569**
**709**
**1,244**
**(21,984)**
**(22,473)**|| ||||||**(21,984)**| ||||||**(22,473)**| Page 22 continued... **Hartlebury Castle Preservation Trust** ## **Notes to the Financial Statements - continued for the Year Ended 31st March 2022** ## **24. MOVEMENT IN FUNDS - continued** ## **Comparatives for movement in funds** |**Unrestricted funds**
General fund
Reserve fund
Projected deficit for future years
**Restricted funds**
Restoration and preservation fund
Magic mirror fund
HLF resiliant fund
Tesco bags fund
Culture recovery fund - claim 1
**TOTAL FUNDS**|At 1.4.20
£
98,480
7,200
-
105,680
4,562,571
1,800
5,428
-
-
4,569,799
4,675,479|Net
movement
in funds
£
9,215
-
-
9,215
(10,038)
(600)
(16,606)
278
57,831
30,865
40,080|Transfers
between
funds
£
(91,544)
13,300
40,000
(38,244)
26,932
-
11,312
-
-
38,244
-|At
31.3.21
£
16,151
20,500
40,000| |---|---|---|---|---| |||||76,651
4,579,465
1,200
134
278
57,831| |||||4,638,908| |||||4,715,559| Comparative net movement in funds, included in the above are as follows: |**Unrestricted funds**
General fund
**Restricted funds**
Restoration and preservation fund
Magic mirror fund
HLF resiliant fund
Tesco bags fund
Culture recovery fund - claim 1
**TOTAL FUNDS**|Incoming
resources
£
98,457
91,157
-
25,000
998
166,500
283,655
382,112|Resources
Movement
expended
in funds
£
£
(89,242)
9,215
(101,195)
(10,038)
(600)
(600)
(41,606)
(16,606)
(720)
278
(108,669)
57,831
(252,790)
30,865
(342,032)
40,080|Resources
Movement
expended
in funds
£
£
(89,242)
9,215
(101,195)
(10,038)
(600)
(600)
(41,606)
(16,606)
(720)
278
(108,669)
57,831
(252,790)
30,865
(342,032)
40,080| |---|---|---|---| ||||30,865| ||||40,080| ## **UNRESTRICTED FUNDS** ## **General fund** The general fund is that part of the unrestricted funds which the trustees may choose to spend on any activity within the purposes of the charity. ## **Reserve fund** The designated reserve fund has been set up by the trustees to ensure that sufficient reserves are held by the Charity in order to fund any unexpected expenditure in the future. The trustees believe that the current balance of £20,500 (2021: £20,500) is sufficient. This represents 2 months of unrestricted expenditure based upon the current year's figures. ## **Projected deficit for future years** The projected deficit for future years fund has been set up by the trustees to ensure sufficient reserves are set aside to absorb deficits in the near future caused by the Covid-19 pandemic. The trustees believe that the current balance of £40,000 (2021: £40,000) is sufficient. Page 23 continued... **Hartlebury Castle Preservation Trust** ## **Notes to the Financial Statements - continued for the Year Ended 31st March 2022** ## **24. MOVEMENT IN FUNDS - continued** ## **RESTRICTED FUNDS** ## **Restoration and preservation fund** The restoration and preservation fund has been restricted by the donor specifically to fund the purchase and restoration of Hartlebury Castle. ## **Magic mirror fund** The charity received £3,000 towards the purchase and installation of a magic mirror. This purchase was made in the 2020 accounting period and the remaining funds represent the depreciated asset. ## **HLF resilient fund** The charity is in receipt of a grant from the National Lottery Heritage Fund Resilient Heritage programme. This grant supports organisational development and commercial income generation as the charity transitions from delivering the restoration and re-opening to becoming a sustainable heritage attraction. ## **Tesco bags fund** The charity received a grant from the Tesco Bags of Help scheme in the prior period. This grant supported the restoration and replanting of the Queen Elizabeth Walk. ## **Culture recovery fund** During the year the charity was awarded £143,757 (2021: £166,500) from the Cultural Recovery Fund, a fund designed to support the reopening of cultural and heritage sites across the UK following the coronavirus pandemic. The money will help the charity to recover from months of lost income whilst the site was closed, support its reopening, fund improvements to accessibility of the grounds and complete vital maintenance works to preserve the future of the castle. ## **Hereford and Worcester Garden Trust** During the year the charity was awarded £5,150 (2021: £nil) to spend on maintenance and improvement of garden areas. ## **25. CONTINGENT LIABILITIES** The purchase of Hartlebury Castle and grounds during the period ended 31 March 2016 was made possible due to the support of the National Heritage Memorial Fund (NHMF) by means of substantial grants as shown in previous financial statements. The NHMF has registered a charge over the property and the Trust would not be in a position to dispose of the estate without the express agreement of the NHMF. Should the Trustees intend at any time that the property be sold, transferred or other rights over the property be granted, the NHMF retains the right under the terms of its grant to require repayment of such amount of the proceeds of the sale or of the original grant as it shall at its sole discretion determine. As Hartlebury Castle Preservation Trust was established for the principal purpose of acquiring and maintaining the property and its contents as a heritage asset for the public benefit, the possibility of the Trust disposing of the estate is unlikely. As a result, it is not possible to determine what amount, if any, would be repayable to NHMF as a result of such a remote event. ## **26. RELATED PARTY DISCLOSURES** The charity's trading aspect sits within subsidiary, Hartlebury Castle Company Limited. At the year end it was owed £4,709 (2021: £17,434) from its subsidiary. The subsidiary company made donations totalling £2,960 (2021: £nil) to the charity in the year. 5 Trustees made unrestricted donations to the charity totalling £636 (2021: 4 totalling £1,636) Page 24 continued... **Hartlebury Castle Preservation Trust** ## **Notes to the Financial Statements - continued for the Year Ended 31st March 2022** ## **27. FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES** In common with many other businesses of our size and nature we use our auditors to assist with the preparation of the financial statement and prepare and submit returns to the tax authorities for the trading company. Page 25