**Charity registration number 1140088**
**Company registration number 07464167 (England and Wales)**
## **FULHAM PALACE TRUST**
# **ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2022**
## **FULHAM PALACE TRUST**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mariana Spater||
|---|---|---|
||Fiona Beatty||
||Iain Cassidy|(Appointed 6 June 2022)|
||Deborah Farley-Persaud||
||Paul Gray, Chair|(Appointed 7 February|
|||2022)|
||John King||
||Alison Lightbrown, deputy chair||
||Fiona McWilliams||
||Kevin Rogers||
||Victoria E Quinlan||
||Reverend Penny Seabrook||
||Robbie Sommerville||
|**Secretary**|Ms Sian Harrington, BA, MA, MBA,|AMA|
|**Charity number**|1140088||
|**Company number**|07464167||
|**Registered office**|Fulham Palace||
||Bishops Avenue||
||London||
||SW6 6EA||
|**Auditor**|Critchleys Audit LLP||
||Beaver House||
||23-38 Hythe Bridge Street||
||Oxford||
||OX1 2EP||
## **FULHAM PALACE TRUST**
## **CONTENTS**
||**Page**|
|---|---|
|Chair's Report|1|
|Trustees' report|2 - 5|
|Statement of trustees' responsibilities|6|
|Independent auditor's report|10 - 13|
|Statement of financial activities|14 - 15|
|Balance sheet|16|
|Statement of cash flows|17|
|Notes to the financial statements|18 - 33|
## **FULHAM PALACE TRUST**
## **CHAIR'S REPORT**
## _**FOR THE YEAR ENDED 31 MARCH 2022**_
In February 2022, I was delighted to become only the third chair of Fulham Palace Trust, following in the footsteps of Tim Ingram and Mariana Spater. I would like to thank Mariana for her stewardship of the Trust board during these last two difficult years of the pandemic and am grateful that she remains as one of our very supportive trustees.
Having visited the House & Garden a few times over the last decade, it has been a joy to become reacquainted with the place and I have been both overwhelmed and astonished at what we are able to offer the people of Hammersmith & Fulham, London and beyond – all free of charge. However, I suspect that many of the 300,000 plus visitors that enjoy our beautiful spaces do not know that we are an independent charitable trust that receives no funding from the taxpayer.
The last year was yet again disrupted by the COVID-19 pandemic and I would like to acknowledge the support we received from government –through the Job Retention Scheme, business grants and the Arts Council Cultural Recovery Fund. We have worked with our commercial tenants and catering partner to weather the financial storm together and I would like to thank them for their support.
Our Patrons and Friends have also remained incredibly loyal and, indeed, have enabled us to complete new projects and activities that would have otherwise been impossible. It was fantastic to meet so many of them at this year’s summer garden party and, as I said at the time, I would encourage them to spread the good news so that we can maintain our ambition and charitable objectives long into the future.
We face many different and new challenges ahead, with the cost-of-living crisis impacting our energy costs, supply costs and, more worryingly, the living standards of our staff. It costs over £4,000 per day to run Fulham Palace and it is essential that we grow and diversify our income streams to become more sustainable. This will require imagination, determination and even greater depths of generosity and support as we compete with the other many great causes within our society. However, from what I have seen and heard over the last few months, I do believe that the will and belief is there.
I remain an eternal optimist and have been encouraged and amazed that, despite the recent challenges, we have managed to deliver so many projects, events, and activities over the last year. You can discover more about them in the rest of this report, but I would like to highlight our work within the garden and learning as these areas of activity continue to inspire, reach, and develop new knowledge and skills for an increasingly diverse audience.
We have some exciting ideas to further improve the House & Garden over the next few years which we will share with you as they develop. They will build upon the three previous capital projects and ensure a more sustainable future through conservation and income generation.
My final thanks go to my fellow trustees, the chief executive, Sian Harrington, her brilliant team and, of course, the many volunteers that give up their time in order to help us maintain Fulham Palace and provide free access for so many people to enjoy, learn and create new shared experiences.
## **Paul Gray, Chair**
- 1 -
## **FULHAM PALACE TRUST**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
The trustees present their annual report and financial statements for the year ended 31 March 2022.
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.
## **Objectives and activities**
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 trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the trust should undertake.
## **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.
## **Achievements and performance**
## **Financial review**
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.
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.
- 2 -
## **FULHAM PALACE TRUST**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
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.
## **Plans for future periods**
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
- 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
- 3 -
## **FULHAM PALACE TRUST**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **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.
A new business plan will be written in 2024 for the period 2025/26 onwards, and this will incorporate restoration plans and post-pandemic adjustments .
## **Structure, governance and management**
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mariana Spater Fiona Beatty Iain Cassidy (Appointed 6 June 2022) Deborah Farley-Persaud Paul Gray, Chair (Appointed 7 February 2022) John King Alison Lightbrown, deputy chair Fiona McWilliams Caroline Needham (Resigned 20 May 2022) Kevin Rogers Victoria E Quinlan Reverend Penny Seabrook Robbie Sommerville
Mariana Spater resigned as chair on 7 February 2022.
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.
- 4 -
## **FULHAM PALACE TRUST**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **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.
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.
## **Auditor**
In accordance with the company's articles, a resolution proposing that Critchleys Audit LLP be reappointed as auditor of the company will be put at a General Meeting.
## **Disclosure of information to auditor**
Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.
The trustees' r eport was approved by the Board of Trustees.
.............................. Paul Gray, Chair **Trustee**
Date: .............................................
- 5 -
## **FULHAM PALACE TRUST**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 MARCH 2022**_
The trustees, who are also the directors of Fulham Palace Trust for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the trust and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the trust will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the trust and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
- 6 -
## **FULHAM PALACE TRUST**
## _**FOR THE YEAR ENDED 31 MARCH 2022**_
**With thanks to our founding donors and all those who have given to Fulham Palace over the course of the year 1 April 2021 – 31 March 2022.**
## **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 Fenn, Anthony Fowler, Stuart and Mindy Greenhalgh, Stephen Groenholm, Klaus and Kate Harding, Anthony 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 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
- 7 -
## **FULHAM PALACE TRUST**
## _**FOR THE YEAR ENDED 31 MARCH 2022**_
Aylmer, Lady Belinda and Lord Julian Baptiste, Desirée Beatty, Chris and Fiona Blunden, George and Jane Bowden-Dan, Jane Cash, Gillian Copeland, Eileen Ellis, Patrick and Yasmine Farley-Persaud, Deborah Finch, Stephen Haly, William Harding, Anne 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 Philippa Scholes, Carol Shocket, Godfrey and Sue Sommerville, Robbie Walsh, Stephen Walter, Derek Waugh, Vivienne Weston, Jill Wilkes, Angela Woods, Gil and May Young, Martin and Sarah
## **Corporate Patrons**
Bovingdons Catering Pascal Huser Design and Build Ltd Peregrine Bryant Architects Ltd
## **Individual Donors (£1,000+):**
Burgess, Vernon Edington, Gordon Harding, Anthony Ingram, Tim and Christine Nunneley, Sir Charles Steane, Caroline
- 8 -
## **FULHAM PALACE TRUST**
## _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **Charitable Trusts, Foundations and Organisations to Fulham Palace (£1,000+):**
Arts Council England Friends of Fulham Palace Lyon Family Charitable Trust Museum Development London The Barbara and Philip Denny Trust The Dyers’ Company The Historic Houses Foundation The John Lyons Charity The National Lottery Heritage Fund The Pilgrim Trust
*We are very sad to report that one of our supporters, Prue Downing (Friend), has passed away.
With thanks to all those who have given to Fulham Palace over the course of the year, including those who wish to remain anonymous.
- 9 -
## **FULHAM PALACE TRUST**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF FULHAM PALACE TRUST**
## **Opinion**
We have audited the financial statements of Fulham Palace Trust ('the charitable company') for the year ended 31 March 2022 which comprise the group statement of financial activities , the balance sheet for the group and company, the group statement of cash flows and notes to the financial statements, including 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 charitable company's affairs as at 31 March 2022 and of its incoming resources and application of resources, 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 _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 twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and , except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
- 10 -
## **FULHAM PALACE TRUST**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF FULHAM PALACE TRUST**
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of our audit:
- the information given in the trustees' r eport for the financial year for which the financial statements are prepared , which includes the d irectors ' r eport prepared for the purposes of company law, is consistent with the financial statements; and
- the d irectors ' r eport included within the trustees' r eport 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 trust and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors ' r eport included within the trustees' r eport.
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 trustees' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate 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
- 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' r eport and from the requirement to prepare a s trategic r eport.
## **Responsibilities of trustees**
As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the trust for the purpose 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 trust’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.
## **Auditor's responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .
- 11 -
## **FULHAM PALACE TRUST**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF FULHAM PALACE TRUST**
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 company through discussions with trustee s and other
management, and from our knowledge and experience;
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 ;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where applicable; 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 non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the 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;
reviewing relevant correspondence.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.
Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustee s 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.
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## **FULHAM PALACE TRUST**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF FULHAM PALACE TRUST**
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
**Robert Kirtland (Senior Statutory Auditor) for and on behalf of Critchleys Audit LLP**
**Chartered Accountants Statutory Auditor**
......................... Beaver House 23-38 Hythe Bridge Street Oxford OX1 2EP
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## **FULHAM PALACE TRUST**
## **GROUP STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**Current financial year**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
224,150
325,715
Charitable activities
**4**
990,284
-
Other trading activities
**5**
480,632
-
Investments
**6**
163
-
**Total income**
1,695,229
325,715
**Expenditure on:**
Raising funds
**7**
43,790
-
Charitable activities
**8**
1,344,714
310,156
Other
82,533
-
**Total expenditure**
1,471,037
310,156
**Net incoming resources before transfers**
224,192
15,559
Gross transfers between funds
(4,884)
4,884
**Net income for the year/**
**Net incoming resources**
219,308
20,443
**Other recognised gains and losses**
Actuarial gain/(loss) on defined benefit pension
schemes
61,111
-
**Net movement in funds**
280,419
20,443
Fund balances at 1 April 2021
3,831,227
387,225
**Fund balances at 31 March 2022**
4,111,646
407,668|**Total**
**2022**
**£**
549,865
990,284
480,632
163
2,020,944
43,790
1,654,870
82,533
1,781,193
239,751
-
239,751
61,111
300,862
4,218,452
4,519,314|**Total**
**2021**
**£**
814,529
905,335
212,618
402
1,932,884
56,756
1,576,341
10,354
1,643,451
289,433
-
289,433
(42,000)
247,433
3,971,019
4,218,452|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 14 -
## **FULHAM PALACE TRUST**
## **GROUP STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **Prior financial year**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
564,407
250,122
Charitable activities
**4**
905,335
-
Other trading activities
**5**
212,618
-
Investments
**6**
402
-
**Total income**
1,682,762
250,122
**Expenditure on:**
Raising funds
**7**
56,756
-
Charitable activities
**8**
1,344,740
231,601
Other
10,354
-
**Total expenditure**
1,411,850
231,601
**Net incoming resources before transfers**
270,912
18,521
Gross transfers between funds
51,560
(51,560)
**Net income for the year/**
**Net incoming resources**
322,472
(33,039)
**Other recognised gains and losses**
Actuarial gain/(loss) on defined benefit pension schemes
(42,000)
-
**Net movement in funds**
280,472
(33,039)
Fund balances at 1 April 2020
3,550,755
420,264
**Fund balances at 31 March 2021**
3,831,227
387,225|**Total**
**2021**
**£**
814,529
905,335
212,618
402
1,932,884
56,756
1,576,341
10,354
1,643,451
289,433
-
289,433
(42,000)
247,433
3,971,019
4,218,452|
|---|---|
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## **FULHAM PALACE TRUST**
## **BALANCE SHEET FOR THE GROUP AND THE CHARITY**
## _**AS AT 31 MARCH 2022**_
|||**Group**|**Charity**|**Group**|**Charity**|
|---|---|---|---|---|---|
|||**2022**|**2022**|**2021**|**2021**|
||**Notes**|**£**|**£**|**£**|**£**|
||||||**as restated**|
|**Fixed assets**||||||
|Tangible assets|**12**|3,882,485|3,882,485|3,848,396|3,848,396|
|**Current assets**||||||
|Stocks|**13**|6,715|6,715|8,640|8,640|
|Debtors|**14**|117,468|142,551|264,550|218,193|
|Cash at bank and in hand||1,328,172|863,467|1,045,478|866,854|
|||1,452,355|1,012,733|1,318,668|1,093,687|
|**Creditors: amounts falling due within**||||||
|**one year**|**15**|(650,786)|(626,630)|(576,003)|(553,288)|
|Net current assets||801,569|386,103|742,665|540,399|
|**Total assets less current liabilities**||**4,684,054**|**4,268,588**|**4,591,061**|**4,388,795**|
|**Creditors: amounts falling due after**||||||
|**more than one year**|**16**|(164,740)|(164,740)|(282,609)|(282,609)|
|**Provisions for liabilities**||-|-|(90,000)|(90,000)|
|**Net assets**||**4,519,314**|**4,103,848**|**4,218,452**|**4,016,186**|
|**Income funds**||||||
|Restricted funds|**19**|407,668|407,668|387,225|387,225|
|Unrestricted funds||4,111,646|3,696,180|3,831,227|3,628,961|
|||**4,519,314**|**4,103,848**|**4,218,452**|**4,016,186**|
The financial statements were approved by the Trustees on .........................
.............................. Paul Gray, Chair **Trustee Company registration number 07464167**
- 16 -
## **FULHAM PALACE TRUST**
## **STATEMENT OF CASH FLOWS FOR THE GROUP** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**Notes**
**Cash flows from operating activities**
Cash generated from operations
**24**
**Investing activities**
Proceeds on disposal of intangibles
Purchase of tangible fixed assets
Investment income received
**Net cash used in investing activities**
**Financing activities**
Repayment of debentures
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2022**
**£**
**£**
641,968
(82,533)
(159,035)
163
(241,405)
(117,869)
(117,869)
282,694
1,045,478
1,328,172|**2021**
**£**
**£**
285,537
-
(102,649)
402
(102,247)
(43,142)
(43,142)
140,148
905,330
1,045,478|
|---|---|---|
- 17 -
## **FULHAM PALACE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1 Accounting policies**
## **Charity 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 £100.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the trust's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The trust is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the trust . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
These financial statements consolidate the results of the charity and its wholly-owned subsidiary Fulham Palace Enterprises Community Interest Company (registered company number: 07574413).
## **1.2 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 a period of at last twelve months from the approval of these financial statements.
## **1.3**
## **Charitable funds**
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.
## **1.4 Income**
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.
- 18 -
## **FULHAM PALACE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1 Accounting policies**
## **(Continued)**
## **1.5 Expenditure**
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.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements 5-20% straight line/ over the duration of the lease Plant and equipment 10 to 33% straight line Fixtures and fittings 25% straight line Computers 33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .
## **1.7 Impairment of fixed assets**
At each reporting end date, the trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
## **1.8 Stocks**
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.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
## **1.9 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.10 Financial instruments**
The trust 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 in the trust 's balance sheet when the trust becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when 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.
- 19 -
## **FULHAM PALACE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1 Accounting policies**
## **(Continued)**
## _**Basic financial assets**_
Basic financial assets, which include debtors 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. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the trust ’s contractual obligations expire or are discharged or cancelled.
## **1.11 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.12 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
The charity operate d a defined contribution pension scheme for staff who have joined the Trust since April 2011. Seven staff members who transferred from LBHF we re members of the Local Government Pension Scheme (LGPS).
The LGPS wa s a funded scheme and the assets we re held separately from those of the Company in separate trustee administered funds. Pension scheme assets we re 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 we re the current service costs and gains and losses on settlements and curtailments. They we re included as part of staff costs. Past service costs we re recognised immediately in the Statement of Financial Activities if the benefits ha d vested.
The LGPS was subject to a cessation on 30 June 2021 and an actuarial valuation was conducted upon the pension scheme as at that date.
- 20 -
## **FULHAM PALACE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1 Accounting policies**
## **(Continued)**
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in income/(expenditure) for the year .
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other recognised gains and losses in the period in which they occur and are not reclassified to income/(expenditure) in subsequent periods.
The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
## **1.13**
## **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).
## **1.14**
## **Concessionary Loans**
The long-term loan recorded on the balance sheet is a 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.
## **1.15 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.
## **2 Critical accounting estimates and judgements**
In the application of the trust’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The judgement that has had the most significant effect on amounts recognised in the financial statements was the charge for depreciation during the year.
- 21 -
## **FULHAM PALACE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**£**
**£**
Donations and gifts
224,150
325,715
**Donations and gifts**
Church Commission
donation in kind for use
of property
-
62,500
Walled Garden
-
45,330
LBHF core funding grant
-
-
Education programme
-
35,200
NLHF Emergency Fund
-
-
Campaign: Restoring
and Renewing Fulham
Palace
-
113,480
Interpretation
-
34,000
ACE Cultural Recovery
Grant
174,048
-
Other project grants and
donations
50,102
35,205
224,150
325,715|**Total**Unrestricted
Restricted
funds
funds
**2022**
2021
2021
**£**
£
£
549,865
564,407
250,122
62,500
-
62,500
45,330
-
16,000
-
122,443
-
35,200
-
500
-
193,900
-
113,480
-
119,397
34,000
-
-
174,048
-
-
85,307
248,064
51,725
549,865
564,407
250,122|Total
2021
£
814,529
62,500
16,000
122,443
500
193,900
119,397
-
-
299,789
814,529|
|---|---|---|
## **4 Charitable activities**
||**Charitable**|**Charitable**|
|---|---|---|
||**Income**|**Income**|
||**2022**|**2021**|
||**£**|**£**|
|Café income|30,396|17,191|
|General rents, service charges and utilities reimbursements|790,641|760,694|
|Education|30,395|9,253|
|HMRC CJRS income and LBHF business grants|69,796|91,796|
|Other income|69,056|26,401|
||990,284|905,335|
- 22 -
## **FULHAM PALACE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **5 Other trading activities**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2022**|2021|
||**£**|£|
|Fulham Palace Enterprises CIC income|**480,632**|212,618|
**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:**
||**2022**|2021|
|---|---|---|
||**£**|£|
|Turnover events and functions|**497,963**|212,618|
|Cost of sales|**(34,125)**|(2,821)|
|Administrative expenses|**(48,408)**|(7,533)|
|Interest receivable and similar income|**36**|2|
|Retained profit for the year|**415,466**|202,266|
|Balance sheet|||
|Current assets|**506,378**|248,014|
|Current liabilities|**(90,912)**|(45,748)|
|Net assets|**415,466**|202,266|
|**Investments**|||
||**Unrestricted**|Unrestricted|
||**funds**|funds|
||**2022**|2021|
||**£**|£|
|Interest receivable|163|402|
## **6 Investments**
- 23 -
## **FULHAM PALACE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **7 Raising funds**
|Fundraising and publicity
Activities and events
Marketing, PR and website costs
Staff costs
Fundraising and publicity
**Charitable activities**
**Maintenance**
**of historic**
**buildings**
**Community**
**& education**
**2022**
**2022**
**£**
**£**
Charitable expenditure
208,724
50,684
Share of support costs
(see note 9)
957,699
424,617
Share of governance
costs (see note 9)
7,888
5,258
1,174,311
480,559
**Analysis by fund**
Unrestricted funds
902,935
441,779
Restricted funds
271,376
38,780
1,174,311
480,559|**Unrestricted**Unrestricted
**funds**
funds
**2022**
2021
**£**
£
5,548
4,875
1,800
15,082
36,442
36,799
43,790
56,756
43,790
56,756
**Total**
**2022**
**Maintenance**
**of historic**
**buildings**
**Community**
**& education**
**Total**
**2021**
**2021**
**2021**
**£**
**£**
**£**
**£**
259,408
138,265
9,015
147,280
1,382,316
851,461
567,640
1,419,101
13,146
5,976
3,984
9,960
1,654,870
995,702
580,639
1,576,341
1,344,714
764,101
580,639
1,344,740
310,156
231,601
-
231,601
1,654,870
995,702
580,639
1,576,341|
|---|---|
## **8 Charitable activities**
- 24 -
## **FULHAM PALACE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **9 Support costs**
|Staff costs
Depreciation
Premises
Other overheads
Audit fees
Non-audit fees
Legal and professional
Trustee meetings
(minute taking)
Analysed between
Charitable activities|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
850,951
-
124,948
-
161,952
-
244,465
-
-
9,500
-
2,218
-
1,128
-
300
1,382,316
13,146
1,382,316
13,146|**2022**
**£**
850,951
124,948
161,952
244,465
9,500
2,218
1,128
300
1,395,462
1,395,462|Support
costs
Governance
costs
£
£
876,617
-
125,681
-
135,243
-
281,560
-
-
9,000
-
-
-
-
-
960
1,419,101
9,960
1,419,101
9,960|2021
£
876,617
125,681
135,243
281,560
9,000
-
-
960
1,429,061
1,429,061|
|---|---|---|---|---|
60% of support costs are allocated to Maintenance of historic buildings. The remaining 40% is allocated to Community & Education.
Governance costs includes payments to the auditors of £ 9,500 (2021- £ 9,000 ) for audit fees.
## **10 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the trust during the year.
- 25 -
## **FULHAM PALACE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **11 Employees**
The average monthly number of employees during the year was:
|CEO
Commercial & Visitor Experience Manager
Finance Manager
Assistant Accountant
Visitor welcome team
Head Gardener
Gardener
Senior Gardener
Project Manager
Apprentice/Trainee Gardeners
Learning and Engagement manager
Learning Assistant
Volunteer Development Officer
Administration
Handyman/Caretaker
Fundraising Officer
Community Archaeologist
Marketing Officer
Conservation Assistant
Curator
Archive Research Manager
Facilities Manager
Cleaning team
Total
**Employment costs**
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was more than
£60,000 is as follows:
£70,001 - £80,000|**2022**
**Number**
1
1
1
1
5
1
-
2
-
3
1
1
1
1
2
1
1
1
1
-
1
1
3
30
**2022**
**£**
801,525
58,561
27,307
887,393
**2022**
**Number**
1|**2021**
**Number**
1
1
1
1
3
1
1
1
1
3
1
1
1
2
1
1
1
1
1
1
1
1
2
29
**2021**
**£**
796,642
64,599
52,175
913,416
**2021**
**Number**
1|
|---|---|---|
- 26 -
## **FULHAM PALACE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**12**
**Tangible Fixed Assets Group and Company**
**Leasehold**
**improvements**
**£**
**Cost**
At 1 April 2021
4,119,162
Additions
119,284
At 31 March 2022
4,238,446
**Depreciation and impairment**
At 1 April 2021
317,367
Depreciation charged in the year
110,051
At 31 March 2022
427,418
**Carrying amount**
At 31 March 2022
3,811,028
At 31 March 2021
3,801,795
**13**
**Stocks for Group and Company**
Finished goods and goods for resale
**14**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Amounts owed by subsidiary undertakings
Other debtors
Prepayments and accrued income|**Plant and**
**equipment**
**Fixtures and**
**fittings**
**Computers**
**£**
**£**
**£**
29,129
145,795
75,144
5,918
16,900
16,933
35,047
162,695
92,077
18,528
120,576
64,362
3,133
6,002
5,761
21,661
126,578
70,123
13,386
36,117
21,954
10,601
25,218
10,782
**2022**
**£**
6,715
**Group**
**Charity**
**Group**
**2022**
**2022**
**2021**
**£**
**£**
**£**
56,054
20,699
139,391
-
67,601
-
41,412
41,412
63,734
20,002
13,684
61,425
117,468
143,396
264,550|**Plant and**
**equipment**
**Fixtures and**
**fittings**
**Computers**
**£**
**£**
**£**
29,129
145,795
75,144
5,918
16,900
16,933
35,047
162,695
92,077
18,528
120,576
64,362
3,133
6,002
5,761
21,661
126,578
70,123
13,386
36,117
21,954
10,601
25,218
10,782
**2022**
**£**
6,715
**Group**
**Charity**
**Group**
**2022**
**2022**
**2021**
**£**
**£**
**£**
56,054
20,699
139,391
-
67,601
-
41,412
41,412
63,734
20,002
13,684
61,425
117,468
143,396
264,550|**Total**
**£**
4,369,230
159,035
4,528,265
520,833
124,947
645,780
3,882,485
3,848,396
**2021**
**£**
8,640
**Charity**
**2021**
**£**
**as restated**
96,533
-
63,734
57,926
218,193|**Total**
**£**
4,369,230
159,035
4,528,265
520,833
124,947
645,780
3,882,485
3,848,396
**2021**
**£**
8,640
**Charity**
**2021**
**£**
**as restated**
96,533
-
63,734
57,926
218,193|
|---|---|---|---|---|
||||||
||||||
||||||
||||||
||||||
||||||
|||264,550||218,193|
- 27 -
## **FULHAM PALACE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**15**
**Creditors: amounts falling due within one year**
Concessionary loan from LBHF
Architectural Heritage Fund loan
Other taxation and social security
Trade creditors
Due from subsidary
Other creditors
Accruals and deferred income
**16**
**Creditors: amounts falling due after more**
**than one year**
Architectural Heritage Fund Loan|**Group**
**2022**
**£**
250,000
108,000
32,800
102,479
-
81,675
75,832
650,786
**Group**
**2022**
**£**
164,740
164,740|**Charity**
**2022**
**£**
250,000
108,000
16,806
102,479
-
81,675
67,670
626,630
**Charity**
**2022**
**£**
164,740
164,740|**Group**
**Charity**
**2021**
**2021**
**£**
**£**
250,000
250,000
108,000
108,000
43,081
19,473
24,731
24,081
-
23,033
4,242
4,242
145,949
124,459
576,003
553,288
**Group**
**Company**
**2021**
**2021**
**£**
**£**
282,609
282,609
282,609
282,609|**Charity**
**2021**
**£**
250,000
108,000
19,473
24,081
23,033
4,242
124,459|
|---|---|---|---|---|
|||||553,288|
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 16) 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**
**Provisions for liabilities**
**Notes**
Retirement benefit obligations
**18**|**2022**
**£**
-
-|**2021**
**£**
90,000
90,000|
|---|---|---|
## **18 Retirement benefit schemes**
## **Defined contribution schemes**
The trust operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the trust in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £27,307 (2021 - £36,175).
- 28 -
## **FULHAM PALACE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **18 Retirement benefit schemes**
## **(Continued)**
## **Defined benefit schemes Local Government Pension Scheme**
The LGPS was a funded defined-benefit pension scheme, with the assets held in separate trusteeadministered funds. The total contribution made for the year ended 31 March 2022 was £nil (2021: £3,000), of which employer’s contributions totalled £nil (2021: £nil) and employees’ contributions totalled £nil (2021: £3,000).
The pension scheme was subject to cessation on 30 June 2021 with the Trust no longer participating in the scheme from that date. An actuarial valuation by Barnett Waddingham as at that date indicated a funding level of 143% with a surplus of £743,000 and an exit credit of £32,000 due to the Trust.
## _Key assumptions_
|_Key assumptions_|||
|---|---|---|
||**2022**|**2021**|
||**%**|**%**|
|Discount rate|n/a|2.00|
|Expected rate of increase of pensions in payment|n/a|2.85|
|Expected rate of salary increases|n/a|3.85|
## _Mortality assumptions_
|Retiring today
- Males
- Females
Retiring in 20 years
- Males
- Females
The amounts included in the balance sheet arising from the trust's
obligations in respect of defined benefit plans are as follows:
Present value of defined benefit obligations
Fair value of plan assets
Deficit in scheme|**2022**
**2021**
**Years**
**Years**
n/a
21.6
n/a
24.3
n/a
22.9
n/a
25.7
**2022**
**2021**
**£**
**£**
-
2,469,000
-
(2,379,000)
-
90,000|
|---|---|
- 29 -
## **FULHAM PALACE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**18**
**Retirement benefit schemes**
The fair value of plan assets at the reporting period end was as follows:
Equity instruments
Property|**(Continued)**
**2022**
**2021**
**£**
**£**
-
1,089,000
-
232,000
-
143,000
-
915,000
-
2,379,000|
|---|---|
- 30 -
## **FULHAM PALACE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **19 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|**Balance at**
**1 April 2020**
**£**
Education Funds
23,970
Restoring and renewing Fulham Palace
385,634
Other
10,660
420,264|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**£**
**£**
500
(15,965)
119,397
(135,976)
130,225
(79,660)
250,122
(231,601)|**Transfers**
**Balance at**
**1 April 2021**
**£**
**£**
-
8,505
-
369,055
(51,560)
9,665
(51,560)
387,225|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**£**
**£**
35,200
(35,898)
113,480
(104,977)
177,036
(169,282)
325,716
(310,157)|**Transfers**
**Balance at**
**31 March 2022**
**£**
**£**
-
7,807
-
377,558
4,884
22,303
4,884
407,668|
|---|---|---|---|---|
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.
- 31 -
## **FULHAM PALACE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**20**
**Analysis of group net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2022**
**2022**
**£**
**£**
Fund balances at 31
March 2022 are
represented by:
Tangible assets
3,882,485
-
Current assets/
(liabilities)
393,901
407,668
Long term liabilities
(164,740)
-
Provisionsand
pensions
-
-
4,111,646
407,668|**Total**Unrestricted
funds
**2022**
2021
**£**
£
3,882,485
3,848,396
801,569
355,440
(164,740)
(282,609)
-
(90,000)
4,519,314
3,831,227|Restricted
funds
2021
£
-
387,225
-
-
387,225|Total
2021
£
3,848,396
742,665
(282,609)
(90,000)
4,218,452|
|---|---|---|---|
## **21 Operating lease commitments**
## **Lessor**
At the reporting end date the trust had contracted with tenants for the following minimum lease payments:
|Within one year
Between two and five years
In over five years|**2022**
**£**
92,890
1,268,179
-
1,361,069|**2021**
**£**
29,893
1,610,233
304,333
1,944,459|
|---|---|---|
## **22 Related party transactions**
Fulham Palace Enterprises Community Interest Company is a wholly-owned subsidiary of Fulham Palace Trust.
Aggregate donations from trustees in the year amounted to £580 (2021: £10,668).
There were no other related party transactions in the reporting period requiring disclosure.
## **23 Prior period error**
During the previous period the charitable company accrued gift aided income from its subsidiary Fulham Palace Enterprises CIC totalling £202,266. However during the current period it became apparent that there was no deed of covenant in place to obligate the subsidiary to make this gift aid at the year end, and as such it was not appropriate to accrue this income in the charitable company's receivables as at 31 March 2021. A prior period adjustment has been made to restate the charity's balance sheet and debtor notes accordingly. There is no impact upon the consolidated balance sheet or statement of financial activities in regard of this adjustment.
- 32 -
## **FULHAM PALACE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**24**
**Cash generated from operations**
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Loss on disposal of intangible assets
Depreciation and impairment of tangible fixed assets
Difference between pension charge and cash contributions
Movements in working capital:
Decrease in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Increase in provisions
**Cash generated from operations**
**25**
**Analysis of changes in net funds**
**At**
Cash at bank and in hand
Loans falling due within one year
Loans falling due after more than one year|**1 April 2021**
**£**
1,045,478
(358,000)
(282,609)
404,869|**2022**
**£**
239,751
(163)
82,533
124,948
61,111
1,925
147,082
74,781
(90,000)
641,968
**Cash flows At 31**
**£**
282,694
-
117,869
400,563|**2021**
**£**
289,433
(402)
-
125,681
16,000
1,397
(138,437)
(8,135)
-
285,537
**March 2022**
**£**
1,328,172
(358,000)
(164,740)
805,432|
|---|---|---|---|
- 33 -