## **F U L H A M    P A L A C E   T R U S T** 

Annual Report and Accounts for the year ended 31 March 2021 

ANNUAL REPORT **|** 2021 



**F U L H A M  P A L A C E  T R U S T** 

Annual Report of the Trustees and Accounts for the year ended 31 March 2021 

www.fulhampalace.org 

Company limited by guarantee, registered number 07464167 Registered Charity number 1140088 

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**T H E  B O A R D  O F  T R U S T E E S** 

## **Chair** 

Mariana Spater 

## **Trustees** 

Fiona Beatty 

Phillip A Emery, BEng, MA, FSA, MIfA (resigned 25 January 2021) Deborah Farley-Persaud 

John King Alison Lightbown  (Deputy Chair from 29 April 2021) Fiona McWilliams Caroline Needham Victoria E Quinlan Kevin Rogers Reverend Penny Seabrook 

Robbie Sommerville 

## **Chief Executive of Fulham Palace Trust** 

Siân Harrington, BA, MA, MBA, AMA 

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## **C O N T E N T S** 

|Trustees’ Annual Report|4|
|---|---|
|Reference and Administrative Details|4|
|Statutory Background|5|
|Organisation and Structure|5|
|Procedures Regarding New Trustees|5|
|Subsidiary Undertakings|5|
|Aims of the Trust|6|
|The Fulham Palace Trust Business Plan (2017/18 - 2024/25)|6|
|Chair’s Report|8|
|Thank you to donors|11|
|Trustees’ Responsibilities|15|
|I ndependent Auditor ’s Report|16|
|Group Statement of Financial Activities|21|
|Balance Sheet for the Group and the Company|23|
|Cash Flow Statement for the Group|24|
|Comparative Group Statement of Financial Activities|25|
|Notes to the Accounts|26|



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**T R U S T E E S ’  A N N U A L  R E P O R T** 

## **Reference and Administrative Details** 

## **COMPANY SECRETARY** 

S Harrington 

## **TRUSTEES AND DIRECTORS OF THE COMPANY** 

Fiona Beatty Phillip A Emery, BEng, MA, FSA, MIfA (resigned 25 January 2021) Deborah Farley-Persaud John King Alison Lightbown (Deputy Chair from 29 April 2021) Fiona McWilliams Caroline Needham Victoria E Quinlan Kevin Rogers Reverend Penny Seabrook Robbie Sommerville Mariana Spater (Chair) 

## **REGISTERED OFFICE** 

Fulham Palace Trust Fulham Palace Bishop’s Avenue London SW6 6EA 

## **AUDITORS** 

Critchleys Audit LLP Beaver House 23-38 Hythe Bridge Street Oxford OX1 2EP 

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## **Statutory Background** 

The Fulham Palace Trust (“the Company”) was incorporated on 8 December 2010 and registered with the Charity Commission on 27 January 2011. It is a company limited by guarantee and registered in England (number 07464167) and is a registered charity (number 1140088). It is governed by Memorandum and Articles of Association. 

## **Organisation and Structure** 

The board of trustees, which can have up to 12 members, administers the charity. The Trust meets every 2 months, with 3-4 meetings of Finance Risk and Audit Committee per annum.  There is also a Fundraising Committee that meets twice per annum, and a Nominations Committee that meets as necessary. 

A Chief Executive is appointed by the trustees to manage the day-to-day operations of the charity.  To facilitate effective operations, the Chief Executive has delegated authority, with terms of delegation approved by the trustees, for operational matters including finance, employment, PR/marketing, fundraising, maintenance, collections management, health and safety, and learning and outreach related activity. 

As set out in the Articles of Association, the London Borough of Hammersmith & Fulham may appoint a maximum of two trustees and the Bishop of London may appoint one trustee. The Chairman may hold that office for a maximum period of 3 years, and may be re-appointed for a further 3 years but no more. 

## **Procedures regarding New Trustees** 

New trustees receive information about Fulham Palace Trust, its aims and objectives and are given a tour of the Palace, meeting staff and volunteers. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. 

## **Subsidiary Undertakings** 

The results of Fulham Palace Trust’s subsidiary undertaking, Fulham Palace Enterprises Community Interest Company, are summarised in Note 3 to the financial statements. 

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## **Aims of the Trust** 

The charity’s objects (“ **Objects** ”) are specifically restricted to the following: 

- to provide for the advancement of public education by the provision of the Fulham Palace Museum (the "Museum") comprising such exhibits or items as the Charity may from time to time hold or receive and to preserve the same as a collection (the "Collection"); 

- to preserve for the benefit of the inhabitants of the London Borough of Hammersmith and Fulham and of the nation at large whatever of the English historical architectural, archaeological and constructional heritage may exist in and round Fulham Palace in the form of buildings and gardens of particular beauty or historical,  architectural or constructional interest; and 

- to protect the environment, conserve or promote biological diversity in Fulham Palace grounds through (i) the provision, conservation, restoration or enhancement of a natural habitat; or (ii) the maintenance or recovery of a species in its natural habitat, on land or in water situated in the vicinity of a landfill site. 

The Church Commission is the freeholder of the Fulham Palace site, and London Borough of Hammersmith and Fulham is the long leaseholder who ran Fulham Palace until 31 March 2011. 

## **The Fulham Palace Trust Business Plan (2017/18 – 2024/25)** 

The business plan for these 8 years was ratified at a Trust Board meeting on 19 September 2016. 

## **VISION OF FULHAM PALACE TRUST** 

## **Vision** 

To engage people, through the stories of Fulham Palace and the Bishops of London, in 6,000 years of English history, and to become one of the UK’s most inclusive and inspiring historic houses and gardens. 

## **Key aims** 

- To conserve and restore Fulham Palace house and garden following thorough analysis of options and sector best practice 

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- To develop the understanding of Fulham Palace’s layered history through research and engagement with experts, partners, users and the community 

- To be inspirational, engaging and educational 

- To delight our visitors through excellent customer service and high quality facilities, interpretation and events 

- To be inclusive and participative in all areas of the Palace’s operation 

- To be sustainable and financially self-sufficient 

## **Business Plan Targets** 

The business plan, which runs over the period 2017/18 to 2024/25, shows the Trust developing a viable business through increased earned income and fundraising income, taking overall income from £1.2m in year 1 (2017/18) prior to capital works starting on site, to £1.6m in Year 8 (2024/25). 

Our organisational model enables us to: 

- Value Fulham Palace as a heritage asset. It will become a local and national landmark to be proud of rather than just a wedding venue with pleasant grounds; 

- Be a more effective and resilient organization: we will be able to market Fulham Palace more effectively and will have the right number and type of staff in place to meet our objectives and income targets; 

- Be more financially secure: by making full use of our heritage asset including our considerable rental portfolio as a source of regular income; 

- Enhance our educational offering and increase public awareness of what we are by providing a wider range of activities and events for a growing number and range of visitors; 

- Support our local communities through the provision of a high quality heritage attraction on their doorstep, as well as providing jobs and a wide range of volunteering opportunities; 

- Support our local economy as a successful Fulham Palace will bring more footfall to the local area and local businesses. The outcomes of raising awareness and contributing to the local economy support both the Borough’s arts and cultural strategy and London&Partners’ ambition to pull tourists to currently less well known heritage sites in the city. 

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**C H A I R ’ S  R E P O R T** 

## **Mariana Spater** 

Fulham Palace Trust, like many organisations, faced a multitude of challenges over the past year. When I wrote last year’s Chair’s report the country had only recently gone into Covid -19 lockdown and Fulham Palace was closed. It is sad and sobering to reflect that the closure of the buildings has lasted for most of the past year. 

While both our finances and visitor offer inevitably suffered due to the ongoing pandemic, I am proud to say that we faced these challenges head on.  Through the hard work of our team, in many ways we are moving forward as a more resilient organisation. 

We were able to take advantage of the Government Job Retention Scheme, local authority grants and emergency funding from the National Lottery Heritage Fund. We worked with our commercial tenants to help to spread the rental obligations and we thank them for their co-operation in helping the Palace maintain this income. We are also very grateful to our Patrons and Friends who contributed generously to a fundraising appeal over the summer to keep the Palace open. Our thanks as well to the local authority for being understanding about the COVID-19 related impact on the Trust as we try to work out a loan repayment schedule. 

These funding sources helped to reduce the impact of the huge reduction in overall income and enabled the Trust to maintain its reserves. In 2020/21, our overall revenues fell by £344k in 2020/21 compared with the previous year, whilst our expenditure remained broadly the same. This meant that our net surplus was reduced by £321k year on year giving us total reserves of £4.2m at the year end. 

While we have had to close the Palace buildings for most of the year, our grounds, including our walled garden, have been open for the community to enjoy since the ending of the first national lockdown in June 2020. We hope that our visitors found peace and some solace in the beautiful surroundings. 

To continue to engage with our audiences during the restrictions, we quickly adapted our visitor experience. The launch of our online shop resulted in a significant increase in spend per head, boosted by the sale of plants grown by our garden team. A number of events and learning activities were hosted virtually for the first time with great success. Taking advantage of temporary lifting of restrictions, we held our annual apple day, and a Christmas fair in conjunction with visits to Father Christmas. Both were very well attended and were a real boost for the Palace staff and visitors. 

We used the time during lockdown to look at our exhibitions programme and how we can broaden our telling of the history of Fulham Palace and its incumbents to 8 ANNUAL REPORT **|** 2021 



include the impact of colonialism and the involvement of the Bishop of London in the transatlantic slave trade and later abolition movement. Alongside this we are looking at how we can engage a wider range of people in telling our stories. 

On 2 May 2021 we launched our biodiversity and climate change resilience strategy to address the pressing issues facing the planet and aim to minimize our impact on the environment in all senses. This is a comprehensive strategy covering all aspects of the Trust’s work and was a result of staff reflection during lockdown about the value of green spaces. 

Huge thanks are due to our staff some of whom were furloughed for some considerable time. They were resilient and managed their roles well in the everchanging circumstances. I’d also like to thank my fellow board members for their support, including the four new trustees appointed in the spring of 2020. We value their fresh perspectives and expertise and are grateful to them for joining us. 

None of this would have been possible without our supporters. We are grateful to the Church Commission and to all our supporters and funders, including the National Lottery Heritage Fund (NLHF), the London Borough of Hammersmith and Fulham (LBHF), individual and corporate Patrons and donors, The Friends of Fulham Palace, and our staff, led by Siân Harrington, and volunteers. 

We hope that the coming months will see some return to what we are all used to. However we will remain vigilant and seek to safeguard our visitors, volunteers and staff by taking any measures deemed appropriate. We look forward to opening our doors once more to inform, entertain and delight our community. 

## **PUBLIC BENEFIT** 

The Trustees confirm that they have complied with the duty in section 17(5) of the Charities Act 2011 to have due regard to the guidance published by the Charity Commission. 

## **RISK ASSESSMENT** 

The major risks to which the charity is exposed have been identified and reviewed and systems have been established to mitigate these risks. 

## **RESERVES POLICY** 

In 2016/17, FPT developed a risk based reserves policy which is underpinned by the organisational risk register and is linked with the charity’s strategy and business plan. This provides a more dynamic approach to the charity’s reserves management with target levels changing in line with FPT’s risk profile and reserves requirements.  The policy was adopted in March 2017, but given the nature of a risk based reserves policy the calculations are updated quarterly. 

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This policy covers FPT’s unrestricted funds.  Restricted and Endowment funds are not covered within this policy.  FPT’s unrestricted funds consist of the following: 

- Tangible fixed asset fund 

- Pension fund 

- Designated funds 

- Free reserves (including the opportunity reserve). 

As per the calculations done in March 2018, the target reserve to be achieved by year 8 of the business plan is £636k, comprising £328k capital/maintenance, £288K free reserves and £20k opportunity reserves.  The business plan aims for this level of reserves to be achievable by 24/25, but this is currently being evaluated in light of COVID. 

## **INVESTMENTS** 

Monies surplus to operational working capital requirements are invested in line with our investment policy, the objective of which is to maximise returns whilst ensuring that as far as possible funds are adequately safeguarded. 

SIGNED ON BEHALF OF THE TRUSTEES on 19 July 2021 Marian&onSpater 

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**T H A N K  Y O U** 

**With thanks to our founding donors and all those who have given to Fulham Palace over the course of the year 1 April 2020 – 31 March 2021.** 

## Founding Donors 

An Anonymous Benefactor Botterill, Councillor Nicholas Cook, Sandra Edington, Gordon (CBE) Emery, Phillip (FSA) Hackett, Thomas and Genevieve Hawes, the Reverend Canon Joseph Howard, Phil and Jennie Ingram, Tim Poole, Martin Sanderson, Tim and Dede The Scorpion Trust Von Schoenaich, Brita Williams, Dr Jonathan Wright, Ken 

Life Patrons 

An Anonymous Benefactor Borrows, Simon and Sally Boyce, Ian and Daphne Burgess, Vernon and Jennifer Elizabeth 

Clark, Simon Dean, Esther Fanshawe, Angus 

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Fenn, Anthony and Lesley Cox * Fowler, Stuart and Mindy Greenhalgh, Stephen Groenholm, Klaus and Kate Harding, Anthony and Karen Hill-Smith, Alex and Isobel Hogg, Charlotte Ingram, Jonathan and Abi Ingram, Tim and Christine Laing, Christopher Leslie, Jonathan and Pepe Lyon, Sebastian and Flora MacQuitty, Miranda McMillan, Carolyn Monaghan, Ben and Louise Nunneley, Sir Charles and Lady Catherine Stead, George and Daphne Upton, Richard Whitehouse, Keith Witherow, John Wright, Jennifer 

Annual Patrons 

Armstrong, Caroline and John Atwell, Jamie Aylmer, Lady Belinda and Lord Julian Balisciano, Márcia Beatty, Chris and Fiona Blunden, George and Jane Bowden-Dan, Jane 

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Cash, Gillian Ellis, Patrick and Yasmine Farley-Persaud, Deborah Finch, Stephen Garnett, Jeremy and Fiona * Haly, William Harding, Anne Hedges, Philip and Jane MacQuitty Holmes, Catherine and Mather, Robert Janes, Jenny Jenkins, David and Fiona King, John Lambert, Maurice and Rosemary MacIntyre, Arabella and Duncan Marx, Jill McWilliams, Fiona and Jeremy Nicholl-Carne, Sarah Paterson, David and Rosemary Perry, Alison and Ross Quinlan, Victoria Richards, Alison and Geoffrey Rylance, His Honour John and Rylance, Philippa Scholes, Carol Shocket, Godfrey and Sue Sommerville, Robbie Taljard, Garth and O’Malley, Charlotte Walsh, Stephen Walter, Derek Weston, Jill Wilkes, Angela Woods, Gil and May Young, Martin and Sarah 

Corporate Patrons Bovingdons Pascal Huser Design and Build Peregrine Bryant Architects Ltd 

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Charitable Trusts, Foundations and Organisations to Fulham Palace (£1,000+): 

Art Fund Barbara and Philip Denny Trust Borrows Charitable Trust Christopher Laing Foundation Douglas and Gordon Dyers Company Friends of Fulham Palace Fulham Society The Historic Houses Foundation Lyon Family Charitable Trust National Lottery Heritage Fund The Pilgrim Trust Scorpion Charitable Trust Sion College Spater Estate via BDB Pitmans The V&A Museum The Zena Trust 

Individual Donors (£1,000+): 

Barnes, Darrell Boyce, Ian Groenholm, Kate and Klaus Hooper, Gemma Laing, Christopher Marx, Jill McWilliams, Fiona Monaghan, Ben Nunneley, Sir Charles Sanderson, Tim and Dede Sommerville, Robbie 

*We are very sad to report that two our of supporters, Leslie Cox and Fiona Garnett, have passed away. 

With thanks to all those who have given to Fulham Palace over the course of the 

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year. 



**T R U S T E E S ’  R E S P O N S I B I L I T I E S** 

The trustees are responsible for preparing the Annual Report and the accounts in accordance with applicable law and regulations. 

Company law requires the trustees to prepare accounts for each financial year. Under that law the trustees have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).  Under company law the trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the group and company and of the income and expenditure of the group for that period.  In preparing these accounts, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- make judgements and accounting estimates that are reasonable and prudent; 

- prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue in operation. 

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

So far as the trustees are aware, there is no relevant audit information (information needed by the company’s auditors in connection with preparing their report) of which the company’s auditors are unaware and each trustee has taken the steps that he ought to have taken as a trustee in order to make himself aware of any relevant audit information and to establish that the company’s auditors are aware of that information. 

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**I N D E P E N D E N T  A U D I T O R ’ S  R E P O R T  T O  T H E  M E M B E R S  O F F U L H A M  P A L A C E  T R U S T** 

## **Opinion** 

We have audited the financial statements of Fulham Palace Trust (“the charitable company”)for the period ended 31 March 2021 which comprise the Group Statement of Financial Activities, the Balance Sheet for the Group and Company, the Group Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

- In our opinion, the financial statements: 

   - give a true and fair view of the state of the group and parent charitable company’s affairs as at 31 March 2021 and of the group’s income and expenditure for the year then ended; 

   - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 

   - 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Trust’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

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## **Other information** 

The other information comprises the information included in the annual report, including 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 annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

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

We have nothing to report in this regard. 

## **Opinions on other matters prescribed by the Companies Act 2006** 

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

- the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the directors’ report included within the trustees’ report 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the chair’s report included within the trustees’ report. 

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

- adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees’ remuneration specified by law are not made; or 

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- we have not received all the information and explanations we require for our audit; or 

- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report. 

## **Responsibilities of the trustees** 

As explained more fully in the trustees’ responsibilities statement set out on page 15, 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 company or to cease operations, or have no realistic alternative but to do so. 

**Auditor’s responsibilities for the audit of the fin ancial 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 an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. 

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

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

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 identified the laws and regulations applicable to the charitable company through discussions with trustees and other management, and from our commercial knowledge and experience of the client; 

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- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charitable company, including the Companies Act 2006 and the Charities Act 2011; 

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and 

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 

We assessed the susceptibility of the charitable 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; and 

- considering the internal controls in place to mitigate risks of fraud and noncompliance 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; 

- assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and 

- investigated the rationale behind significant or 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; 

- reading the minutes of meetings of those charged with governance; 

- enquiring of management as to actual and potential litigation and claims; and 

- reviewing correspondence with HMRC, relevant regulators [include details] and the company’s legal advisors. 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it 

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is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. 

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 

## **Use of our report** 

This report is made solely to the Charity’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity’s members as a body, for our audit work, for this report, or for the opinions we have formed. 

Robert Kirtland FCA Senior Statutory Auditor 

For and on behalf of: Critchleys Audit LLP, Statutory Auditor Beaver House 23-38 Hythe Bridge Street Oxford OX1 2EP 

17 August…………… 2021 

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## **G R O U P  S T A T E M E N T  O F  F I N A N C I A L  A C T I V I T I E S** 

## **i n c l u d i n g  t h e  I n c o m e  a n d  E x p e n d i t u r e  A c c o u n t** 

## **F o r  t h e  y e a r  e n d e d  3 1  M a r c h  2 0 2 1** 

|**Restricted**<br>**Funds**<br>**Unrestricted**<br>**Funds**<br>**Notes**<br>£<br>£<br>**Income and endowments from**<br>Donations and legacies<br>2<br>250,122<br>564,407<br>Activities for generating<br>funds:<br>Charitable activities<br>4<br>-<br>905,335<br>Other trading activities<br>3<br>-<br>212,618<br>Investments<br>5<br> -<br>402<br>**Total income and endowments**<br>250,122<br>1,682,762<br>**Expenditure on**<br>**Raising funds**<br>Fundraising costs<br>6<br>-<br>56,756<br>Non charitable trading<br>expenditure<br>3<br>-<br>10,354<br>Charitable activities<br>7<br>231,601<br>1,344,740<br>**Total expenditure**<br>231,601<br>1,411,850<br>**Net income before transfers**<br>18,521<br>270,912<br>Transfers between funds<br>19<br>(51,560)<br>51,560<br>**Net (expenditure)/income for**<br>**the year**<br>(33,039)<br>322,472<br>**Other recognised gains/losses**<br>Actuarial (loss)/gain<br>on defined benefit pension<br>schemes<br>17<br> - <br>(42,000)<br> <br>**Net movement in funds**<br>(33,039)<br>280,472<br>**Reconciliation of funds**<br>Total funds brought forward<br>420,264<br>3,550,755<br>**Total funds carried forward**<br>387,225<br>3,831,227|**2021**<br>**Total**<br>£<br>814,529<br>905,335<br>212,618<br>402<br>1,932,884<br>56,756<br>10,354<br>1,576,341<br>1,643,451<br>289,433<br> -<br>289,433<br>(42,000)<br>247,433<br>3,971,019<br>4,218,452|**2020**<br>**Total**<br>£<br>1,019,278<br>890,574<br>346,349<br>648<br>2,256,849<br>66,149<br>27,595<br>1,552,779<br>1,646,523<br>610,326<br> -<br>610,326<br>205,000<br>815,326<br>3,155,693<br>3,971,019|
|---|---|---|



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**G R O U P  S T A T E M E N T  O F  F I N A N C I A L  A C T I V I T I E S ( c o n t i n u e d )** 

## **i n c l u d i n g  t h e  I n c o m e  a n d  E x p e n d i t u r e  A c c o u n t** 

## **F o r  t h e  y e a r  e n d e d  3 1  M a r c h  2 0 2 1** 

The notes on pages 26 to 42 form part of these accounts. 

All activities are continuing. There are no gains or losses other than those shown above. 

Details of restricted funds are set out in note 19 of the accounts. 

Unrestricted Funds of the group comprise Non Charitable Trading Funds (Fulham Palace Enterprises Community Interest Company reserves) and the General Fund (which is the Company’s operating fund). The total Unrestricted Funds at the end of the year of £3,831,227 comprise a £nil balance on the Non Charitable Trading Funds, a surplus on the General Fund of £3,921,227 and a deficit on the Pension Fund of £90,000. Further details relating to the funds are given in note 18 to these accounts. 

As the Company is limited by guarantee, and with charitable objectives, a reconciliation of “shareholders funds” is not considered appropriate. 

22 ANNUAL REPORT **|** 2021 



**B A L A N C E  S H E E T  F O R  T H E  G R O U P  A N D  T H E  C O M P A N Y** 

**R e g i s t e r e d c h a r i t y  n u m b e r : 1 1 4 0 0 8 8 R e g i s t e r e d c o m p a n y  n u m b e r : 0 7 4 6 4 1 6 7** 

## **A s  a t  3 1  M a r c h  2 0 2 1** 

|||**Group**|**Company**|**Group**|**Company**|
|---|---|---|---|---|---|
|||**2021**|**2021**|**2020**|**2020**|
||**Notes**|£|£|£|£|
|**Fixed assets**||||||
|Tangible assets|12|3,848,396|3,848,396|3,871,428|3,863,060|
|**Current assets**||||||
|Stocks|13|8,640|8,640|10,037|10,037|
|Debtors|14|264,550|420,459|126,113|492,746|
|Cash at bank and in hand||1,045,478|866,854|905,330|543,828|
|||1,318,668|1,295,953|1,041,480|1,046,611|
|**Current liabilities**||||||
|Creditors due within one<br>year|15|(576,003)|(553,288)|(476,138)|(472,901)|
|**Net current assets**||742,665|742,665|565,342|573,710|
|**Total assets less current**<br>**liabilities**||4,591,061|4,591,061|4,436,770|4,436,770|
|**Creditors:**||||||
|Amounts falling due after||||||
|more than one year|16|(282,609)|(282,609)|(433,751)|(433,751)|
|**Net assets excluding pension**||4,308,452|4,308,452|4,003,019|4,003,019|
|**liability**||||||
|Pension scheme liability|17|(90,000)|(90,000)|(32,000)|(32,000)|
|**Net assets**||4,218,452|4,218,452|3,971,019|3,971,019|
|**Represented by:**||||||
|Unrestricted funds - general|18|3,921,227|3,921,227|3,582,755|3,582,755|
|Unrestricted funds – pensions||(90,000)|(90,000)|(32,000)|(32,000)|
|Restricted funds|19|387,225|387,225|420,264|420,264|
|||4,218,452|4,218,452|3,971,019|3,971,019|



These accounts were approved and authorised for issue by the Board of Trustees on 19 July 2021 

The notes on pages 26 to 42 form part of these accounts. 

23  ANNUAL REPORT **|** 2021 



**C A S H  F L O W  S T A T E M E N T  F O R  T H E  G R O U P** 

## **F o r  t h e  y e a r  e n d e d  3 1  M a r c h  2 0 2 1** 

||**Notes**|**2021**|**2020**|
|---|---|---|---|
|||**Total funds**|**Total funds**|
|**Cash flows from operating activities**||||
|Net cash provided by operating||||
|activities (reconciliation below)||308,505|946,734|
|**Cash flows from investing activities**||||
|Purchase of property, plant and|12|||
|equipment||(102,649)|(717,864)|
|Net cash (used in) investing activities||(102,649)|(717,864)|
|**Cash flows from financing activities**||||
|Loan received||-|200,000|
|Loan repayments made||(65,708)|-|
|Net cash (used in)/provided by||||
|financing activities||(65,708)|200,000|
|**Change in cash and cash equivalents**||||
|**in the reporting period**||140,148|428,870|
|**Cash and cash equivalents at the**||||
|**beginning of the reporting period**||905,330|476,460|
|**Cash and cash equivalents at the end**||||
|**of the reporting period**||1,045,478|905,330|
|**Reconcilation of net**||||
|**income/(expenditure) to net cash flow**||||
|**from operating activities**||||
|Net income for the reporting period||||
|(as per the statement of financial||||
|activities)||289,433|610,326|
|Adjustments for:||||
|Depreciation charges||125,681|140,764|
|(Increase)/decrease in stocks||1,397|(2,053)|
|(Increase)/decrease in debtors||(138,436)|195,614|
|Increase/(decrease) in creditors||14,430|(60,917)|
|Defined benefit pension scheme||||
|finance costs||-|5,000|
|Defined benefit pension scheme|17|||
|service cost less contributions||16,000|58,000|
|Net cash provided by operating||||
|activities||308,505|946,734|



24 ANNUAL REPORT **|** 2021 



## **C O M P A R A T I V E  G R O U P  S T A T E M E N T  O F  F I N A N C I A L A C T I V I T I E S** 

## **i n c l u d i n g  t h e  I n c o m e  a n d  E x p e n d i t u r e  A c c o u n t** 

|**Restricted**<br>**Funds**<br>**Unrestricted**<br>**Funds**<br>**restated**<br>**Notes**<br>£<br>£<br>**Income and endowments**<br>**from**<br>Donations and legacies<br>2<br>915,445<br>103,833<br>Activities for generating<br>funds:<br>Charitable activities<br>4<br>-<br>890,574<br>Other trading activities<br>3<br>-<br>346,349<br>Investments<br>5<br> -<br>648<br>**Total income and**<br>**endowments**<br>915,445<br>1 341 404<br>**Expenditure on**<br>**Raising funds**<br>Fundraising costs<br>6<br>16,667<br>49,482<br>Non charitable trading<br>expenditure<br>3<br>-<br>27,595<br>Charitable expenses<br>4<br>-<br>99,648<br>Charitable activities<br>7<br>762,708<br>690,423<br>**Total expenditure**<br>779,375<br>867,148<br>**Net income before transfers**<br>136,070<br>474,256<br>Transfers between funds<br>19<br>61,482<br>(61,482)<br>**Net income for the year**<br>197,552<br>412,774<br>**Other recognised**<br>**gains/losses**<br>Actuarial gains on defined<br>benefit pension schemes<br> -<br>205,000<br>**Net movement in funds**<br>197,552<br>617,774<br>**Reconciliation of funds**<br>Total funds brought forward<br>222,712<br>2,932,981<br>**Total funds carried forward**<br>420,264<br>3,550,755|**2020**<br>**Total**<br>£<br>1,019,278<br>890,574<br>346,349<br>648<br>2 256 849<br>66,149<br>27,595<br>99,648<br>1,453,131<br>1,646,523<br>610,326<br> -<br>610,326<br>205,000<br>815,326<br>3,155,693<br>3,971,019|**2019**<br>**Total**<br>**restated**<br>£<br>1,357,289<br>678,538<br>287,661<br>724<br>2 324 212<br>63,000<br>19,558<br>57,957<br>1,520,950<br>1,661,465<br>662,747<br> - <br>662,747<br>85,000<br>865,765<br>2,289,928<br>3,155,693|
|---|---|---|
||||



25  ANNUAL REPORT **|** 2021 



**N O T E S  T O  T H E  A C C O U N T S** 

**F o r  t h e  y e a r  e n d e d  3 1  M a r c h  2 0 2 1** 

## **1. ACCOUNTING POLICIES** 

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Company's accounts: 

## Basis of Accounting 

The accounts are prepared under the historical cost convention and in compliance with all applicable accounting standards. 

## Presentation of the Accounts 

The financial statements of the public benefit entity have been prepared in accordance with all applicable accounting standards, FRS 102, the Statement of Recommended Practise (SORP), “Accounting and Reporting by Charities” revised 2015 (FRS 102) and the Companies Act. 

The structure of the SOFA has altered this year to reflect more accurately charitable activities expenditure.  It remains in compliance with FRS 102. 

## Group Financial Statements 

These financial statements consolidate the results of the charity and its whollyowned subsidiary Fulham Palace Enterprises Community Interest Company (registered company number: 07574413). 

## I ncome 

All income is accounted for when the charity has entitlement to the funds, certainty of receipt and the amount is measurable. Where income is received in advance or a deposit is made it is deferred until the charity is entitled to that income – usually when the event occurs. Grants are included on a receivable basis subject to adjudged ability to meet any associated conditions.  Donations and legacies are included in the accounts when received. Legacies are accounted for when the charity is notified of its entitlement to the income and the amount can be assessed with reasonable certainty. Donated facilities have been recognised at the value of the benefit to the charity. 

Turnover is the amount derived from ordinary activities, and stated after trade discounts, other sales taxes and net of VAT. 

26 ANNUAL REPORT **|** 2021 



## Fixed Assets 

The Company operates a policy of only capitalising assets with a cost greater than £1,000. All other assets are written off to the Statement of Financial Activities. 

Fixed assets have been depreciated over their useful lives, in accordance with the rates stated in note 16 to the accounts. 

## Depreciation 

Depreciation is provided on tangible fixed assets at rates calculated to write off the costs less residual value, on each asset over its expected useful life. 

## Stock 

Stocks are stated at the lower of cost and net realisable value. ‘Net realisable value’ is the amount or value expected to be received from the sale or use of stock in the normal course of business after deducting any additional cost incurred in the process of realisation. 

## Leased Assets 

Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight line basis. 

## Pension Costs 

The charity operates a defined contribution pension scheme for staff who have joined the Trust since April 2011. Seven staff members who transferred from LBHF are members of the Local Government Pension Scheme (LGPS). 

The LGPS is a funded scheme and the assets are held separately from those of the Company in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities. The amounts charged to operating surplus are the current service costs and gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the Statement of Financial Activities if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period until vesting occurs. The expected return on assets and the interest cost are shown as a net finance amount of other finance costs or credits adjacent to interest. Actuarial gains and losses are recognised immediately in other gains and losses. 

27  ANNUAL REPORT **|** 2021 



## Fund Accounting 

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

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donors or which have been raised by the charity for particular purposes.  The aim and use of each restricted fund is set out in the notes to the financial statements. 

## Expenses 

Costs are included in the appropriate category. Support costs are allocated across the two activities based on the direct costs of that activity as a proportion of the total direct cost of the two activities. Irrecoverable VAT is included within support costs. 

## Transfer of Assets 

On the 1 April 2011 all the assets and liabilities of Fulham Palace Trust (an unincorporated charity) were transferred to Fulham Palace Trust (an incorporated charity). 

## Loans 

The long-term loans recorded on the balance sheet are classified as a concessionary loan. Concessionary loans have been recognised and measured at amount that was initially received, and are adjusted to reflect repayments and impairment on the loan. 

## Going Concern 

The financial statements of the Trust have been prepared on the going concern basis which assumes that the Trust will continue to be able to meet its liabilities when they fall due.  The trustees consider that the going concern basis remains appropriate having reviewed income and expenditure and cashflow for a period of at last twelve months from the approval of these financial statements. 

The COVID-19 crisis had a significant impact in the heritage and cultural sector, and will do so for the foreseeable future, having caused significant uncertainty in visitor numbers and associated revenues.  To counter this, planned expenditure has been reduced or postponed until income returns to pre COVID levels. Both budgets and cashflow forecasts have been adjusted accordingly. The Trustees have incorporated the full impact of the crisis and the detailed scenario and risk planning in arriving at their going concern assurance position. 

28 ANNUAL REPORT **|** 2021 



## **2. DONATIONS AND LEGACIES** 

|**Restricted Unrestricted**<br>£<br>£<br>**Grants and donations**<br> <br>Church Commission<br>donation in kind for use of<br>property<br>62,500<br>-<br>Walled Garden<br>16,000<br>-<br>LBHF core funding grant<br>-<br>122,443<br>Education programme<br>500<br>-<br>NLHF Emergency Fund<br>-<br>193,900<br>Campaign: Restoring and<br>Renewing Fulham Palace<br>119,397<br>-<br>Other project grants and<br>donations<br>51,725<br>248,064<br> <br>250,122<br>564,407|**Total**<br>**2021**<br>**£**<br>**62,500**<br>**16,000**<br>**122,443**<br>**500**<br>**193,900**<br>**119,397**<br>**299,789**<br>**814,529**|**Total**<br>**2020**<br>£<br>62,500<br>16,000<br>117,034<br>35,000<br>659,742<br>79,021<br>49,981<br>1,019,278|
|---|---|---|



“LBHF” refers to the London Borough of Hammersmith and Fulham. 

## **3. FULHAM PALACE ENTERPRISES COMMUNITY INTEREST COMPANY** 

Fulham Palace Enterprises Community Interest Company is a wholly-owned subsidiary incorporated in England and Wales whose principal activity is to support the charity. The subsidiary is limited by guarantee and therefore there is no investment to disclose. The guarantee is limited to £100. 

The income and expenditure of the CIC as shown in the published accounts is as follows: 

|Turnover events and functions<br>Cost of sales<br>Administrative expenses<br>Interest receivable and similar<br>income<br>Retained profit for the year<br>**Balance sheet**<br>Fixed assets<br>Current assets<br>Current liabilities<br>Net assets<br>Income and expenditure<br>account|**2021**<br>**£**<br>**212,618**<br>**(2,821)**<br>**(7,533)**<br>**2**<br>**202,266**<br>  <br>**-**<br>**248,014**<br>**(45,748)**<br>**202,266**<br>**202,266**<br>|**2020**<br>£<br>346,349<br>(25,445)<br>(2,151)<br>32<br>318,785<br>8,368<br>376,034<br>(65,617)<br>318,785<br>318,785|
|---|---|---|



29  ANNUAL REPORT **|** 2021 



Due to changes in recognition of gift-aid payments amounts are now recorded as disbursements once the payments have taken place. During the year £318,785 was paid to the parent company, Fulham Palace Trust. There was an additional £93,940 paid to the parent company to cover the CIC portion of the VAT liability. The anticipated gift aid payment for next year is £202,266. 

Current assets include an amount due from the parent company, Fulham Palace Trust, of £23,033 (2020: creditor (£52,246)). 

## **4. FULHAM PALACE TRUST** 

## **INCOME FROM CHARITABLE ACTIVITIES** 

|Income<br>Café income<br>General rents, service charges and utilities<br>reimbursements<br>Education<br>HMRC CJRS income<br>Other income|**2021**<br>**£**<br>**17,191**<br>**760,694**<br>**9,253**<br>**91,796**<br>**26,401**<br>**905,335**|**2020**<br>£<br>25,000<br>744,044<br>41,958<br>-<br>79,572<br>890,574|
|---|---|---|



The company is entitled to the following future income from non-cancellable tenancy operating leases: 

||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Not later than one year|29,893|725,143|
|Later than one year and not later than five years|1,610,233|3,228,938|
|Later than 5 years|304,333|611,086|



## **5. INVESTMENT INCOME** 

Investment income consists solely of interest receivable. 

30 ANNUAL REPORT **|** 2021 



## **6. COSTS OF GENERATING INCOME** 

|Entertaining<br>Activities and events<br>Marketing, PR and website costs<br>Fundraising staff<br>**HARITABLE ACTIVITIES**<br>**Activities**<br>**undertaken**<br>**directly**<br>**Support**<br>**Costs**<br>(note 8)<br>£<br>£<br>**Activity**<br>Maintenance of historic<br>buildings<br>138,265<br>851,461<br>Community & education<br>9,015<br>567,640<br>Governance costs (note 9)<br>9,960<br> -<br>157,240<br>1,419,101|**2021**<br>**£**<br>**-**<br>**4,875**<br>**15,082**<br>**36,799**<br>**56,756**<br>**Total**<br>**2021**<br>**£**<br>**989,726**<br>**576,655**<br>**9,960**<br>**1,576,341**|**2020**<br>£<br>3,077<br>9,745<br>12,014<br>41,313<br>66,149<br>**Total**<br>**2020**<br>£<br>923,881<br>615,920<br>12,978<br>1,552,779|
|---|---|---|



## **7. CHARITABLE ACTIVITIES** 

## **8. ALLOCATION OF SUPPORT  COSTS** 

|**Maintenance**<br>**of historic**<br>**buildings**<br>**(60%)**<br>**Community**<br>**& Education**<br>**(40%)**<br>£<br>£<br>**Support costs**<br>Premises<br>81,146<br>54,097<br>Staff & staff related costs<br>525,970<br>350,647<br>Other overheads<br>244,345<br>162,896<br>851,461<br>567,640|**Total**<br>**2021**<br>**£**<br>**135,243**<br>**876,617**<br>**407,241**<br>**1,419,101**|**Total**<br>**2020**<br>£<br>169,996<br>868,920<br>377,244<br>1,416,160|
|---|---|---|



Allocation of support costs was based on the level of costs in activities undertaken directly. 

31  ANNUAL REPORT **|** 2021 



## **9. GOVERNANCE COSTS** 

|**OVERNANCE COSTS**|||
|---|---|---|
||**2021**|**2020**|
||**£**|£|
|Preparation of annual accounts and group audit fees|**9,000**|8,700|
|Trustee meetings (minute taking)|**960**|1,778|
|Trustee training and recruitment|-|2,500|
||**9,960**|12,978|



## **10. EMPLOYEE COSTS** 

|Wages and salaries<br>Social security<br>Pension contributions:<br>Employer contributions to pension schemes<br>Other pension and finance costs|**2021**<br>**£**<br>**745,551**<br>**64,599**<br>**36,175**<br>**16,000**<br>**862,325**|**2020**<br>£<br>756,411<br>66,262<br>49,239<br>63,000<br>934,912|
|---|---|---|



The number of employees whose annual emoluments exceeded £60,000 in the period were as follows: 

|£80,001 - £90,000<br>Staff costs include remuneration costs (salary, employer’s<br>NI contributions and employer’s pension contributions) for<br>key management personnel amounting to|**2021**<br>**No.**<br>**2020**<br>**No.**<br>**1**<br>1<br>**91,026**<br>90,294|
|---|---|



32 ANNUAL REPORT **|** 2021 



The average monthly number of employees in the group during the year was made up as follows: 

|ade up as follows:||||
|---|---|---|---|
||**2021**|**2020**||
||**No.**|**No.**||
|CEO|**1**||1|
|Commercial & Visitor Experience Manager|**1**||1|
|Finance Manager|**1**||1|
|Assistant Accountant|**1**||2|
|Visitor welcome team|**3**||3|
|Head Gardener|**1**||1|
|Gardener|**1**||1|
|Senior Gardener|**1**||1|
|Project Manager|**1**||1|
|Apprentice/Trainee Gardeners|**3**||3|
|Learning and Engagement manager|**1**||1|
|Learning Officer|**1**||1|
|Volunteer Development Officer|**1**||1|
|Administration|**2**||1|
|Handyman/Caretaker|**1**||1|
|Fundraising Officer|**1**||1|
|Community Archaeologist|**1**||1|
|Marketing Officer|**1**||1|
|Conservation Assistant|**1**||1|
|Curator|**1**|||
|Collections and Research Officer|**1**||1|
|Facilities Manager|**1**||1|
|Communications and Development Manager|**-**||1|
|Cleaning team|**2**||2|
||**29**||29|



The 2020 figure was mis-stated as 27 in 2019/20. With the cleaning team it should have been 29. 

No Trustee received any remuneration or reimbursement of expense during the year. 

## **11. NET INCOME** 

|Is stated after charging:<br>Auditors’ remuneration – audit<br>Auditors’ remuneration – other financial services<br>Rent<br>Depreciation|**2021**<br>**£**<br>**9,000**<br>**11,588**<br>**62,500**<br>**125,681**|**2020**<br>£<br>8,700<br>5,258<br>62,500<br>140,764|
|---|---|---|



33  ANNUAL REPORT **|** 2021 



## **12. FIXED ASSETS** 

|**Tangible assets for the Group**<br>**Plant &**<br>**machinery**<br>**Office**<br>**equipment**<br>**Fixtures**<br>**& fittings**<br>**Leasehold**<br>**improvem**<br>**ents**<br>£<br>£<br>£<br>£<br>Cost or valuation:<br>At 1 April 2020<br>29,129<br>69,326<br>141,286<br>4,026,839<br>Additions<br>-<br>5,818<br>4,508<br>92,323<br>Disposals<br> -<br> -<br> -<br> -<br>At 31 March 2021<br>29,129<br>75,144<br>145,794<br>4,119,162<br>Depreciation:<br>At 1 April 2020<br>15,560<br>57,680<br>107,896<br>214,016<br>Charge for year<br>2,968<br>6,682<br>12,680<br>103,351<br>On disposal<br> -<br> -<br> -<br> -<br>At 31 March 2021<br>18,528<br>64,362<br>120,576<br>317,367<br>Net book value:<br>**At 31 March 2021**<br>**10,601**<br>**10,782**<br>**25,218**<br>**3,801,795**<br>At 31 March 2020<br>13,569<br>11,646<br>33,390<br>3,812,823|**Group**<br>**Total**<br>£<br>4,266,580<br>102,649<br> -<br>4,369,229<br>395,152<br>125,681<br> -<br>520,833<br>**3,848,396**<br>3,871,428|
|---|---|



34 ANNUAL REPORT **|** 2021 



## **Tangible assets for the Company** 

||**Plant &**||**Office**|**Fixtures &**|**Leasehold**|**Company**|
|---|---|---|---|---|---|---|
|**machinery**||**equipment**||**fittings**|**improvem**|**Total**|
||||||**ents**||
||£||£|£|£|£|
|Cost or valuation:|||||||
|At 1 April 2020|29,129||69,326|62,281|4,026,839|4,187,575|
|Additions|-||5,818|4,508|92,323|102,649|
|Disposals|-||-|-|-|-|
|At 31 March 2021|29,129||75,144|66,789|4,119,162|4,290,224|
|Depreciation:|||||||
|At 1 April 2020|15,560||57,680|37,259|214,016|324,515|
|Charge for year|2,968||6,682|4,312|103,351|117,313|
|On disposal|-||-|-|-|-|
|At 31 March 2021|18,528||64,362|41,571|317,367|441,828|
|Net book value:|||||||
|**At 31 March 2021**|**10,601**||**10,782**|**25,218**|**3,801,795**|**3,848,396**|
|At 31 March 2020|13,569||11,646|25,022|3,812,823|3,863,060|
||||||5-20% SL /||
||||||Duration of||
|Depreciation provided:|<br>10-33%|SL|33% SL|<br>25% SL|<br>lease||



## **13. STOCKS** 

|**OCKS**|||||
|---|---|---|---|---|
||**Group**|**Company**|**Group**|**Company**|
||**2021**|**2021**|**2020**|**2020**|
||**£**|**£**|£|£|
|Goods for resale|**8,640**|**8,640**|10,037|10,037|



35  ANNUAL REPORT **|** 2021 



## **14. DEBTORS** 

|**EBTORS**|||||
|---|---|---|---|---|
||**Group**<br>**Company**||**Group**|**Company**|
||**2021**|**2021**|**2020**|**2020**|
||**£**|**£**|£|£|
|Trade debtors|**139,391**|**96,533**|45,301|42,838|
|Prepayments and accrued|||||
|income|**61,425**|**260,192**|9,531|326,381|
|Other|**63,734**|**63,734**|71,281|71,281|
|Due from subsidiary|**-**|**-**|-|52,246|
||**264,550**|**420,459**|126,113|492,746|
|**REDITORS: AMOUNTS FALLING**|**DUE WITHIN  ONE YEAR**||||
||**Group**|**Company**|**Group**|**Company**|
||**2021**|**2021**|**2020**|**2020**|
||**£**|**£**|£|£|
|Trade creditors|**24,731**|<br>**24,081**|<br>65,985|62,748|
|Other taxes and social security|**43,081**|<br>**19,473**|<br>42,216|42,216|
|Other creditors|**4,242**|<br>**4,242**|<br>5,113|5,113|
|Concessionary loan from LBHF|**250,000**|<br>**250,000**|<br>250,000|250,000|
|Architectural Heritage Fund|||||
|Loan|**108,000**|<br>**108,000**|<br>-|-|
|Due to Subsidiary|**-**|<br>**23,033**|<br>-|-|
|Accruals and deferred income|**145,949**|**124,459**|<br>112,824|112,824|
||**576,003**|**553,288**|<br>476,138|472,901|
|**Income in advance**|||||
|Brought forward|**7,592**|<br>**7,592**|<br>8,768|7,548|
|Utilised in year|**(7,592)**|<br>**(7,592)**|(8,768)|(7,548)|
|Arising in year|**22,785**|**1,295**|<br>7,592|7,592|
||**22,785**|**1,295**|<br>7,592|7,592|



## **15. CREDITORS: AMOUNTS FALLING DUE WITHIN  ONE YEAR** 

Income in advance relates to rent/service charges and events billed in advance. 

36 ANNUAL REPORT **|** 2021 



## **16. CREDITORS: AMOUNTS FALLING DUE AFTER  MORE THAN ONE YEAR** 

|<br>Architectural Heritage Fund<br>Loan|**Group**<br>**2021**<br>**Company**<br>**2021**<br>**£**<br>**£**<br>**282,609**<br>**282,609**|**Group**<br>**2020**<br>**Company**<br>**2020**<br>£<br>£<br>433,751<br>433,751|
|---|---|---|



The concessionary loan from LBHF was repayable on 31 March 2019 or earlier if the balance of the loan drawn down which has not been used to fund unforeseen or unbudgeted costs together with the accumulated operating surplus (excluding restricted funds) exceed £500,000. It was therefore being shown as a creditor falling due within one year (note 15) last year. The £250,000 loan was not repaid during the year and is therefore being shown as still being due within one year pending further discussions. 

During the year ended 31 March 2019 a loan facility of £400,000 was arranged from the Architectural Heritage Fund, of which £200,000 had been drawn upon at 31 March 2019. A further £200,000 was drawn down on this loan during the year to 31 March 2020. The terms of the loan are such that no repayments are required for the first 2 years. Interest is being charged at 7.5% per annum on the outstanding balance. This interest rate will decrease to 6% once repayments have reduced the outstanding balance below £200,000. 

## **17. PENSION SCHEME LIABILITY** 

## **Local Government Pension Scheme** 

The LGPS is a funded defined-benefit pension scheme, with the assets held in separate trustee-administered funds. The total contribution made for the year ended 31 March 2021 was £3,000 (2020: £7,000), of which employer’s contributions totalled £nil (2020: £nil) and employees’ contributions totalled £3,000 (2020: £7,000). 

When the contribution rate was initially determined a deficit was attributed to the Employer. It was later agreed that this was not appropriate and as a result it was agreed that the employer’s current contributions for 2020 would be suspended and that they would also receive an asset transfer to correct the initial funding deficit. 

The pension valuation used is based on the actuarial valuation at 31 March 2021 prepared by Barnett Waddingham on the instruction of LBHF, in relation to employees of Fulham Palace Trust as at 31 March 2021. 

37  ANNUAL REPORT **|** 2021 



## **Principal actuarial assumptions** 

|**cipal actuarial assumptions**|||
|---|---|---|
||**At 31**|At 31|
||**March**|March|
||**2021**|2020|
|Salary increases|**3.85%**|2.95%|
|Pension|||
|increases|**2.85%**|1.95%|
|Discount rate|**2.00%**|2.35%|



The following table sets out the impact of a small change in the discount rates on the defined benefit obligation and projected service cost along with a +/- 1 year age rating adjustment to the mortality assumption. 

|**Sensitivity analysis**|**£'000**|**£'000**|**£'000**|
|---|---|---|---|
|Adjustment to discount||||
|rate|**+0.1%**|**0.0%**|**-0.1%**|
|Present value of total obligation|**2,426**|**2,469**|**2,513**|
|Projected service||||
|cost|**22**|**22**|**23**|
|Adjustment to life expectancy||||
|assumptions|**+1 year**|**None**|**-1 year**|
|Present value of total obligation|**2,571**|**2,469**|**2,371**|
|Projected service||||
|cost|**23**|**22**|**21**|



The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The assumed life expectations on retirement age 65 are: 

|tirement age 65 are:|||
|---|---|---|
||**At 31**|At 31|
||**March**|March|
||**2021**|2020|
|_Retiring_|||
|_today_|||
|Males|**21.6**|21.8|
|Females|**24.3**|24.4|
|_Retiring in 20_|||
|_years_|||
|Males|**22.9**|23.2|
|Females|**25.7**|25.8|



38 ANNUAL REPORT **|** 2021 



The charitable company’s share of the assets and liabilities in the scheme were: 

||**Fair value**|**Fair value**|
|---|---|---|
||**at**|**at**|
||**31 March**|**31 March**|
||**2021**|**2020**|
||**£’000**|**£’000**|
|Equities|**1,089**|827|
|Cash|**143**|163|
|Property|**232**|221|
|Cash Plus funds|**915**|591|
|Inflation Opportunity Funds|**-**|222|
|Total|**2,379**|2,024|
|**Amounts recognised in the statement of financial activities**|||
||**2021**|**2020**|
||**£**|**£**|
|Current service cost (net of employee|||
|contributions)|**15,000**|57,000|
|Net interest on the defined liability|**-**|5,000|
|Administration expenses|**1,000**|1,000|
|Total operating charge|**16,000**|63,000|



The actuarial gains and losses for the current year are recognised in the statement of financial activities. The cumulative amount of actuarial gains and losses recognised in the statement of financial activities since the adoption of FRS102 is a £163,000 gain. 

## **Movements in the present value of defined benefit obligations were as follows:** 

|**llows:**|||
|---|---|---|
||**2021**|2020|
||**£’000**|£’000|
|**At 1 April**|**2,056**|2,282|
|Current service cost|**15**|39|
|Interest cost|**47**|55|
|Change in financial assumptions|**466**|(163)|
|Change in demographic assumptions|**(20)**|(62)|
|Experience (gain) on defined obligation|**(24)**|(94)|
|Estimated benefits paid net of transfers in|**(74)**|(26)|
|Past sevice costs, including curtailments|**-**|18|
|Contribution by scheme participants|**3**|7|
|**At 31 March**|**2,469**|2,056|



39  ANNUAL REPORT **|** 2021 



## **Movements in the fair value of charitable company’s share of scheme assets:** 

|||||**2021**|2020|
|---|---|---|---|---|---|
|||||**£’000**|£’000|
|**At 1 April**||||**2,024**|2,108|
|Interest on assets||||**47**|50|
|Return on assets less interest||||**380**|(102)|
|Other actuarial gains/(losses)||||**-**|(12)|
|Administration expenses||||**(1)**|(1)|
|Contribution by employer including unfunded||||**-**|-|
|Contribution by scheme participants||||**3**|7|
|Estimated benefits paid plus unfunded|net transfers|||**(74)**|(26)|
|Settlement prices received / (paid)||||**-**|-|
|At 31 March||||**2,379**|2,024|
|**Reconciliation of opening and**||||||
|**closing deficit**||||||
|||**2021**|||2020|
|||**£**||£|£|
|**Pension deficit at 1 April**|**(32,000)**||||(174,000)|
|Current service cost (including||||||
|administration expenses)|**(16,000)**|||(58,000)||
|Employer contributions (see||||||
|note below)|**-**|||**-**||
|Additional pension cost|**(16,000)**||||(58,000)|
|Other finance costs|||**-**||(5,000)|
|Actuarial gains/(losses)|**(42,000)**||||205,000|
|**Pension deficit at 31 March**|**(90,000)**||||(32,000)|



The estimated value of employer contributions for the year ended 31 March 2021 is £41,000. 

## **18. UNRESTRICTED FUNDS** 

|**General**<br>**Total**<br>**Non-**<br>**charitable**<br>**Trading**<br>**Funds**<br>£<br>£<br>Opening funds<br>3,582,755<br>-<br>Net income/(expenditure)<br>before transfers<br>286,912<br>-<br>Transfers<br>51,560<br>-<br>Actuarial gains/(losses)<br> -<br> -<br>Closing funds<br>3,921,227<br> -|**Pension**<br>£<br>(32,000)<br>(16,000)<br>-<br>(42,000)<br>(90,000)|**Group**<br>**Total**<br>£<br>3,550,755<br>270,912<br>51,560<br>(42,000)<br>3,831,227|
|---|---|---|



40 ANNUAL REPORT **|** 2021 



## **19. RESTRICTED FUNDS** 

|**Fund-**<br>**raising**<br>**Education**<br>**Funds**<br>**Restoring**<br>**and**<br>**renewing**<br>**Fulham**<br>**Palace**<br>£<br>£<br>£<br>Opening funds<br>-<br>23,970<br>385,634<br>Income<br>-<br>500<br>119,397<br>Expenditure<br>-<br>(15,965)<br>(135,976)<br> <br>Transfers<br> -<br> -<br> - <br> <br>Closing funds<br> - <br>8,505<br>369,055|**Other**<br>**Group**<br>**Total**<br>£<br>£<br>10,660<br>420,264<br>130,225<br>250,122<br>(79,660)<br>(231,601)<br>(51,560)<br>(51,560)<br>9,665<br>387,225|
|---|---|



Education funds are maintained for the care of collections, acquisition of collections and running our educational service. 

The Restoring and Renewing Fulham Palace fund is capital funds generated towards our £3.8m Heritage Lottery Fund Project. 

Other funds include projects in the walled garden such as planting fruit trees, funding apprenticeships and gifts of rental services. 

## **20. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS** 

|**Restricted**<br>**Funds**<br>**Unrestricted**<br>**Funds**<br>£<br>£<br>Tangible fixed assets<br>-<br>3,848,396<br>Net current assets<br>387,225<br>355,440<br>Long term liabilities<br>-<br>(282,609)<br>Pension scheme liability<br> -<br>(90,000)<br>387,225<br>3,831,227|**Total**<br>£<br>3,848,396<br>742,665<br>(282,609)<br>(90,000)<br>4,218,452|
|---|---|



## **21. GENERAL INFORMATION** 

Fulham Palace Trust is a company limited by guarantee incorporated and domiciled in England. Its registered office address and principal place of business is Fulham Palace, Bishops Avenue, London, SW6 6EA. 

In the event of the company being wound up every member undertakes to contribute to the assets for payment of the debts and liabilities an amount not exceeding £1. 

41  ANNUAL REPORT **|** 2021 



## **22. COMMITMENTS UNDER OPERATING LEASES** 

Fulham Palace Trust holds the site on a long lease with LBHF, who in turn lease it from the Church Commission. The lease runs to 17 May 2075 and the annual amount payable under the lease is £62,500. The Church Commission have now waived this annual rent until 17 May 2075 and have backdated the suspension to 1 April 2012. This has been disclosed as a donation in kind, with the current year waiver being restricted to the current year rent expense. 

## **23. EVENTS AFTER THE BALANCE SHEET DATE** 

There are no significant post balance sheet events to note. 

## **24. RELATED PARTY TRANSACTIONS** 

Fulham Palace Enterprises Community Interest Company is a wholly-owned subsidiary of Fulham Palace Trust (see note 3 for further details). 

Aggregate donations from trustees in the year amounted to £10,668 (2020: £10,000). 

There were no other related party transactions in the reporting period requiring disclosure. 

42 ANNUAL REPORT **|** 2021