DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

**Registered number: 07320026 Charity number: 1142122** 

## **THE COUNTRYSIDE REGENERATION TRUST LTD** 

**(A Company Limited by Guarantee)** 

**TRUSTEES' REPORT AND FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 31 MARCH 2023** 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **CONTENTS** 

||Page|
|---|---|
|**Reference and Administrative Details of the Charity, its Trustees and Advisers**|1 - 2|
|**Trustees' Report**|3 - 15|
|**Independent Auditors' Report on the Financial Statements**|16 - 20|
|**Statement of Financial Activities**|21 - 22|
|**Income and Expenditure Account**|23|
|**Balance Sheet**|24 - 25|
|**Statement of Cash Flows**|26|
|**Notes to the Financial Statements**|27 - 53|





DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2023** 

|**Trustees**|N Watts, MBE, Executive Chairman|
|---|---|
||D Mills, MBE|
||W Cross|
||G Girling|
||T Scott|
||S Everett (appointed 6 September 2022)|
||C Halsey (appointed 17 April 2023, resigned 30 October 2023)|
||D Fisher (appointed 18 September 2023)|
||S Lake (appointed 18 September 2023)|
||J Armstrong (appointed 18 September 2023)|
||S Fell (appointed 18 September 2023)|
||P Hermann (appointed 18 September 2023)|
|**Company registered**<br>**number**<br>07320026<br>**Charity registered**<br>**number**<br>1142122<br>**Registered office**<br>**Chief Executive Officer**<br>Unit 12 Bennell Court<br>West Street<br>Comberton<br>Cambridge<br>CB23 7EN<br>Danielle Dewe<br>**Patrons**<br>Sir J Porritt, CBE – Environmental Patron<br>B Jackman – Dorset Patron<br>Hugh Fearnley-Whittingstall – Patron of Food and Farming<br>C Shuttleworth<br>**Independent auditors**<br>Peters Elworthy & Moore<br>Chartered Accountants<br>Statutory Auditors<br>Salisbury House<br>Station Road<br>Cambridge<br>CB1 2LA<br>**Bankers**<br>Lloyds Bank PLC<br>Gonville Place<br>95-97 Regent Street<br>Cambridge<br>CB2 1BQ<br>Triodos Bank<br>Avon<br>Bristol<br>BS1 5AS||



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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

**THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

**Solicitors** 

Mills & Reeve Botanic House 98-100 Hills Road, Cambridge CB2 1PH 

**Investment Management** Rathbones 

North Wing City House 126 130 Hills Road Cambridge CB2 1RE 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023** 

The Trustees are pleased to present their annual report together with the audited financial statements for the period 1 April 2022 to 31 March 2023, which are also prepared to meet the requirement for a directors’ report and accounts for Companies Act purposes. 

Since the company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable in the UK and Republic of Ireland (FRS 102). 

## **SECTION ONE: OBJECTIVES AND ACTIVITIES** 

## **Our Mission:** 

Our mission is to champion productive, wildlife-friendly farming to support a living, working countryside and to reverse the decline in biodiversity. 

## **Our Purpose:** 

The Countryside Regeneration Trust is the new name of The Countryside Restoration Trust, which was founded in 1993 in response to growing fears about the impact of  intensive and industrialised farming on the countryside. 

Our purpose is to be a champion of biodiversity, regenerating farming landscapes and woodlands for wildlife whilst promoting sustainable farming practices. 

We own 17 properties across England and our farmers work with conservation staff and volunteers to promote wildlife-friendly farming practices on more than 2,000 acres of working farms, smallholdings, and woodland across the country. 

On some of our properties we restore disused farm buildings, making spaces for small rural businesses. Through education and engagement, we inspire people to understand and appreciate the importance of wildlife to farming, food, the natural environment, and wellbeing. 

Against the backdrop of climate change and the continued growth of industrialised farming, our work has never been more relevant or important. 

## **Our Objectives:** 

The objectives of the charity are: 

To advance the education of the public in the conduct of farming and forestry operations in harmony with the preservation, conservation, restoration, maintenance, and improvement of the aesthetic appearance of the rural landscape, and of agricultural land and woodland. 

To provide and foster the provision, by others, of natural countryside habitats within working farms and commercial woodland in which the widest possible variety of wild animals, birds, aquatic and plant life can flourish. 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

**THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

## **Strategies for Achieving Objectives** 

## **Our Strategic Aims:** 

The strategic aims of the Trust are: 

1. To protect and restore the UK’s countryside with wildlife friendly and sustainable agriculture. 

2. To establish farms which demonstrate how to protect wildlife, produce quality food, and preserve our countryside for future generations, using sensitive farming methods. 

3. To promote the importance of a living and working countryside through education and community engagement. 

## **Our Indicators of Success:** 

We have three key indicators of success: 

1. Maintenance and improvement of nature, evidenced by data on habitats and species associated with our properties. 

2. More people engaging with nature and the countryside through community activity, education, events, and volunteering. 

3. More local and national recognition, stronger working relationships and partnerships with community groups, corporates, and like-minded charities. 

## **Our contribution to the Public Benefit:** 

In shaping our objectives for the year and planning our activities, the Trustees have considered the Charity Commission’s guidance on public benefit including ‘Public Benefit: running a charity (PB2)’. All our charitable activities are undertaken to further our charitable purposes for the public benefit. The main areas of charitable activity are Conservation and Education. 

## **SECTION TWO: OFFICERS' REPORTS** 

Danielle Dewe, Chief Executive Officer 

The Countryside Regeneration Trust was created thirty years ago to show how farming and nature can co-exist; this basic principle remains at the heart of what we do. However, we have taken stock of how the charity is delivering on its objectives and are now two years into a three-year plan to update the charity — refining our objectives, overhauling our governance and establishing a clearer identity. 

In 2021 we began a property audit across our portfolio of 17 farms and as we implement those recommendations this will have an impact on how some of our farms are managed. For two farms, Turnastone Court and Pierrepont, there will be changes in the farm tenancy arrangements and more of a focus on delivering landscape and nature restoration alongside regenerative farming. At Pierrepont Farm the milking Jersey herd will be substantially reduced (from around 160 to 40 cows) while at Turnastone Court there will be a greater focus on regenerative grazing with traditional-breed cattle. While new research shows that regenerative farming can be more profitable than intensive systems that focus on high levels of production, it is important that we ensure that the CRT and its farmers can have a sustainable income from a diversity of sources. 

In 2022 we adopted our new name to signify a regeneration of the charity and a change in how we intended to deliver our mission. During the last 12 months, we have started to create a more streamlined organisation which 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

sets realistic objectives and has a renewed purpose. 

Futureproofing the CRT by investing in property improvements for sustainable, long-term income generation, is something that is already happening at Pierrepont Farm where the Farnham Brewing Company, established by three local families, has set up a microbrewery. This is popular with the local community , providing space for a local business and a social space for local people to enjoy visiting the farm. Other local businesses also operate from the farm, including a company restoring furniture and a jewellery maker. Plans to refurbish a historic grain barn will provide additional workspaces for local people. 

For many years, the charity had a ‘make do and mend’ mentality and it is acknowledged that the organisation has needed to become more strategic in our thinking. 

Priorities for the next few years include: 

• Improving delivery of nature and landscape regeneration on all the properties. A key priority is recruiting a Head of Conservation and Land Management who will identify opportunities to improve our properties for landscape and wildlife, prepare conservation plans and support our tenant farmers on their regenerative farming journeys. Setting standards for collecting, analysing, and presenting data on habitats and species associated with our properties. This year a baseline audit of all the wildlife habitats on our properties was initiated. Along with the publication of strategies for environmental monitoring, conservation, and land management this audit this will provide a sound basis for developing comprehensive management plans for landscape, farming, and nature on our properties. 

• Growing our volunteering programme which supports our Farms, and conservation & wildlife activities across 11 of our properties: Bere Marsh Farm, Lark Rise Farm, Pierrepont Farm, Green Farm, Twyford Farm, Turnastone Court Farm, Mayfields and Margaret Wood. We currently have 384 volunteers signed up, with the Bere Marsh Farm volunteers accounting for just under 50% of the total. 

• First, the benefits need communicating more clearly: health and well-being, an opportunity to give something back to the community and a sense of belonging and companionship. Second, our volunteers need to be put at the heart of the charity, giving them a bigger role, so they feel they are making a difference. 

•Updating the education strategy. Educating and raising awareness of nature-friendly farming is at the core of what the CRT is about. Getting the messages across to adults is as important as it is to children. 

• Being a caring organisation to our employees; we have a duty of care to them and need to follow best practice. The CRT is a lean charity, run by a small staff team and, with a property portfolio spanning from Lincolnshire to Herefordshire, Sussex, and Dorset, we must remain conscious of the pressures that workload brings. 

The CRT celebrated our 30th anniversary in 2023 and the third sector landscape has changed immeasurably over the last three decades. All charities need to demonstrate good governance and clear lines of accountability. The review, and changes we are putting in place mean that the refreshed CRT will be in good shape to achieve those goals. 

I want to acknowledge Robin Page’s role in setting up the charity and being its driving force for so many years. He was a renegade who did not worry about following trends and when he launched the Countryside Restoration Trust (as it then was) he was well ahead of his time. He had a sharp wit and wonderful sense of humour; as a colleague, he could be challenging, but he was down to earth and he inspired many people to donate both time, land, and money to the charity. 

With a renewed sense of purpose and a clear mission, I am confident that we can continue to attract a new generation of supporters to build on his legacy. 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

## **Nicholas Watts, Outgoing Chair of Trustees** 

This is my last annual report as Chair of Trustees as Sue Everett took on the role in June 2023 and I have become the charity’s president. 

I am delighted that Sue is now leading our team of Trustees and I am sure she will be very effective in the role. She is a very experienced ecologist and land management advisor with a passion for restoring or creating wildlife grasslands and she set up one of the UK’s first nature consultancies. She has a long relationship with the charity, dating back to its foundation 30 years ago and more recently, she has been instrumental in developing a vision for Bere Marsh Farm, our flagship property. 

As the charity continues to evolve, it is a good time to bring in a fresh perspective and a new set of ideas. During the last couple of years, we have spent a good deal of time improving our governance, putting more robust procedures in place so that we are fully accountable for our decision making. 

We are creating new committees to reduce the amount or work placed upon the Board of Trustees and this process began at the end of the fiscal year. We were delighted to welcome Caroline Hasley to our Board of Trustees in April 2023. She is a director in a pharmaceutical business with expertise on business procedures and continuous improvement methodology; she is also passionate about the countryside, having grown up on a family farm. 

We are fortunate to have a very knowledgeable group of Trustees, as demonstrated by the fact that David Mills MBE was named by Queen Camilla, formerly the Duchess of Cornwall, as one of her ‘champions of the countryside’ in recognition of his work setting up a new population of red squirrels on the island of Tresco in the Isles of Scilly. 

Now that our governance is improving, we need to focus on meeting the other challenges the charity is facing. One of our immediate priorities is to find new farmers for Turnastone Court Farm and Pierrepont Farm. It is not an easy task; our aim is to protect and run smaller farms, allowing for the right balance between agricultural production and wildlife, but we need to find farmers who are passionate about wildlife conservation and not motivated primarily by profit. They are few and far between. 

Smaller farms are at the heart of the countryside we know and love and for three decades the Countryside Regeneration Trust has tried to ensure their survival by nurturing its portfolio of properties. That must remain the priority. Our smaller properties are little gems, but they are costly to maintain. 

We need to focus our resources on delivering our core purpose: championing biodiversity, regenerating farming landscapes and promoting sustainable farming practices. Our properties are far-flung, which adds to our expenses and makes it difficult for the Trustees and staff to spend as much time as we would like to visit them. That is why our volunteers are so important; we rely on them to bridge the gap and we are fortunate that our volunteer base has continued to grow and has been galvanised by the appointment of a Volunteer Manager. 

The charity has inspired the imagination of our supporters ever since our founder Robin Page appealed to Daily Telegraph readers in 1993 to save a 20-acre field by a brook near his home. 

Telegraph Field was duly acquired, and, from those humble beginnings, the charity became a pioneer of sustainable farming. Robin, who died in May 2023, was always something of a maverick, but many of his ideas have become accepted thinking and are now reflected in the Government’s approach to agricultural policy. 

However, the plight of our wildlife has never been more precarious, and the threat posed by climate change has never been greater. This has been a year of transition for The Countryside Regeneration Trust’s governance, but our role will not change: to be the conscience of the countryside. 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

## **SECTION THREE: ACHIEVEMENTS AND PERFORMANCE Featured Properties:** 

## **Lark Rise Farm, Barton, Cambridge** 

**Size:** 400 acres 

**Type:** Small fields, bordered by hedges and grass margins, with a wide range of crops grown, including spring oats, winter wheat, winter barley, spring wheat, canary seed, and rye. 

**Farmer:** Tim Scott Highlights: 

Lark Rise Farm is an oasis for many of the UK’s most endangered farmland bird species, such as grey partridge, lapwing, golden plover, yellowhammer, and skylark. Farmer Tim Scott normally spots around 140 grey partridges a year, although last year’s drought caused a 40% drop in numbers. 

Skylarks are the most common bird on the farm, with just over 50 territories on average each year. Four pairs of corn bunting, a red listed species, nested on the farm in 2022 and more than 100 spent the winter feeding on seeds from the weeds in the stubble-covered fields. Lapwings, which have declined by 80%, are nesting again at the farm. 

Regenerative farming has encouraged mammals, such as brown hares, numerous bat species, and a huge variety of insects, such as beetles and butterflies. A Camberwell Beauty butterfly was spotted by volunteer wildlife monitor, Val Perrin – the rarest butterfly ever recorded on a CRT farm. 

The CRT has also played an important role in the Waterlife Recovery East (WRE) project to remove North American mink from East Anglia, trapping mink on Lark Rise Farm. In 2022, there was a significant drop in breeding across large parts of the region for the first time and water voles are returning to their original habitats. 

However, the integrity of the farm, which was the first property acquired by the CRT in 1993, is threatened by the proposed East West Rail link, which would slice part of the farm in two. Tim Scott has launched a petition, calling on East West Rail to adopt an alternative route rather than threatening a valuable habitat he has spent 30 years nurturing. 

## **Bere Marsh Farm, Blandford, Dorset** 

**Size:** 92 acres 

**Type:** A grassland farm, comprising pastures, woodland, scrub and part of the River Stour. Acquired in 2020. Highlights: 

Plans for redeveloping some of the farm’s barns, converting them to an education and community centre were finalised. Ecologist Sue Everett, providing her time as a ‘professional’ volunteer, put together a plan for habitat restoration on the farm. This will entail restoring floodplain meadows to flower-rich grassland, creation of rough grassland and scrub, and rewetting some fields. This plan has been informed by advice commissioned from a hydrologist and is supported by a range of organisations who form the local catchment partnership. A bird hide and four nesting towers aiming to attract white storks are also included in the plan. 

Together, the plans for nature restoration and improving spaces at the farm for use by the local community, aim to make Bere Marsh Farm one of the CRT’s most significant farms showcasing delivery of its charity objectives. 

During 2022, 86 different bird species were spotted on the farm, including 10 recorded for the first time. More than 500 birds, comprised of 25 different species, were ringed and the number recorded for almost every species increased. The average number of butterflies recorded during each survey increased to 32, with 22 different species recorded. The majority of wildlife monitoring has been carried out by volunteers. 

Volunteers also helped to take cuttings from the farm’s native black poplar tree – one of only 600 female black poplars in the UK – with the aim of planting two new trees on the farm and others elsewhere in the Stour Valley to boost the number of native poplars in the area. Volunteers also planted a new osier bed, which will, when mature, produce willow wands for craft work and local businesses. 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

A series of films is being made by renowned Dorset wildlife filmmaker, Graham Hatherley, to record the progress being made at Bere Marsh Farm, including the arrival of three Oxford Sandy and Black pigs. 

## **Pierrepont Farm, Farnham, Surrey** 

**Size:** 200 acres **Type:** Jersey dairy farm with woodland, gifted in 2006. **Tenant:** Tenant farmer Mike Clear (outgoing) Highlights: 

The CRT agreed with farmer Mike Clear that his tenancy would end in 2024 to allow the charity to develop a new plan for the farm in keeping with its vision of improving biodiversity and promoting regenerative farming. The focus of the farm’s future development will be on practising exemplary agroecology, nature- and landscaperecovery alongside sustainable food production. The popular Mosaic education program continued to run, teaching schoolchildren about food provenance in an entertaining way. The unique educational programme connects young people with the natural world and educates them about how and why we must protect it. 

In 2023, the CRT welcomed the Farnham Brewing Co to Pierrepont’s Old Dairy where they have opened a new micro-brewery. The business is run by three local fathers who met when their children were at infant school in Farnham, and they are committed to investing in the local community. They took over the site from Craft Brews, whose tenancy was terminated in November 2022. 

Since acquiring the property, the charity has invested more than £2m into the development and improvement of the farm, including its commercial units and the CRT is delighted to work with local businesses which share our vision for the site. Several events took place during the year, including the three-day Crafts in the Courtyard, showcasing the artisan businesses which operate from the farm. 

## **Brays Farm, Surrey** 

**Size:** 52 acres **Type:** Pasture and livestock **Tenant farmers:** Matthew Elphick and Betsie Edge Highlights: 

Shortlisted for a British Farming Award in 2022, Matthew Elphick and his partner Bestie Edge have shown how good soil and grazing management can achieve striking results. Their herd of 25 dairy shorthorn cattle is moved daily to avoid over-grazing and they do not return to the same paddock for around 30 days, naturally stimulating plant growth. The couple’s mantra is “healthy soil equals healthy plants, healthy animals and therefore healthy food”. 

The couple pasteurise the milk on site and make milk, cream, yoghurt, and frozen yoghurt. Their Nutfield Dairy brand delivers milk, cheese and other locally made produce to hundreds of households within a three-mile radius of the farm. They also supply local village shops, farm shops, a butcher and a coffee shop. 

## **Green Farm, Surrey** 

**Size:** 200 acres **Type:** Woodland, heathland, orchard, and pasture. 

**Tenant farmers:** Paul and Gill Ibbott began grazing 20 acres in 2018 and own or rent another 80 acres in the surrounding area. They keep local sheep breeds and meat from their cattle and lambs is sold to a local butcher. Highlights: 

The CRT has commissioned experts Oakbank to create a woodland management plan for the next 10 years, which will balance bringing in an income from timber to finance the maintenance and improvement of the farm, together with our conservation aims of protecting wildlife. 

The two main parcels of heathland on Green Farm are the site of a new partnership project between the CRT and the Amphibian and Reptile Conservation Trust (ARC). Volunteers from both charities are monitoring reptiles to understand how best to manage the farm’s habitats. The data they collect will be submitted to the National Reptile Survey Programme. 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

## **Other Farms:** 

## **Twyford Farm, Haywards Heath, Sussex** 

**Size:** 220 acres 

**Type:** Pasture, farm and woodland. Gifted in 2013. 

**Tenant farmers:** Bob Felton and Liz Wallis have managed the farm since 2014 and have small flocks of poll Dorset, Charolais and rare-breed Llanwenog sheep and 200 Welsh mule cross sheep. They also have a small herd of 70 native crossbred cattle. They produce lamb, beef, and pork products. 

## **Mayfields Farm, Foulsham, Norfolk** 

**Size:** 40 acres Type: Pasture and small orchard. Gifted in 2004. 

**Farmer:** Izzi Rainey has grazed a small herd of native breed cattle since June 2022, having taken over her family’s 45 acres of pasture just two miles away on Bates Moor Family eight years previously. She introduced Lincoln red cattle in 2017 and in 2019 launched Bates Moor Farm Beef, selling beef boxes locally and through UK-wide postal delivery. 

## **Stoke Wake Farmland, Dorset** 

**Size:** 142 acres Type: Mostly temporary grassland, with a small area of permanent pasture, a stream and two ponds Gifted in 2021. 

**Tenant farmers:** John, Caroline and Will Hiscock rent 67 acres which are sown to a clover ley, providing feed for one of three organic dairies at their home farm. The rest of the land is grazed by Aberdeen Angus cattle owned by the Dean family, who supply a Waitrose contract. 

## **Turnastone Court Farm, Vowchurch, Herefordshire** 

**Size:** 247 acres 

**Type:** Pasture, orchard, woodland, and a hay meadow. Purchased in 2003 when land in the area was being converted to potato farming, following a fundraising campaign. Highlights In 2022 the conversion of a barn to a luxury holiday rental property was completed as a means of providing a long-term income stream.. 

45 breeding birds were recorded including several Birds of Conservation Concern including Common Redstart (Amber-listed). The farm is particularly important for the thousands of anthills present in the grassland. Tenants: Gareth and Madeline Boaz (outgoing). 

## **Awnells Farm, Ledbury, Herefordshire** 

**Size:** 200 acres Type: Orchards and grassland farm 

**Tenant:** Tenant farmer David Powell gifted the farm in 2000 and it has a closed herd of traditional Hereford cattle. 

## **Other Properties:** 

## **Margaret Wood, Upper Denby, Yorkshire** 

40 acres, donated in 2012. A long-term woodland management plan is proposed including tree thinning and halo in some areas while thick vegetation will be left in other parts to create diverse habitats. 

## **Yarwell, Peterborough** 

35 acres of grazing, left to the CRT in 2015. Tenant farmer David Longfoot grazes sheep and cattle and a Countryside Stewardship agreement is being considered for the property. Cricket bat willows are grown on the lower part of the property. 

## **Harold’s Grove, Essex** 

A historic site, once owned by King Harold, with 8 acres of ancient woodland, gifted in 2004. 

## **Bicker, Boston, Lincolnshire** 

12 acres of pasture. Left to CRT in 2004 by the previous owner, who specified that small area of the farm must be kept as wildlife habitats. 9.5 acres of the land is cattle-grazed – in an area of the fens where most land is intensively-farmed for arable crops whilst the remainder is wildlife habitat and maintained village fringe. 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

## **Buxted, Sussex** 

Two parcels of land were gifted in 2000 to protect them from developers. 

## **Cleavers, West Sussex** 

Pasture and woodland. 

## **SECTION FOUR: FINANCIAL PERFORMANCE** 

## **Key Financial Performance Indicators** 

This year’s key financial performance results are described below. A key focus for the CRT going forward remains to diversify our income streams to reduce our overall dependency on legacy income. 

We continue to develop success measures including a conservation and agricultural performance framework for all aspects of CRT’s strategy and these have been included above for the first time. 

## **Investment Policy and Performance** 

All investments must be managed in such a way as to provide sufficient income to enable the charity to carry out its purposes effectively both in the short term and over the longer term. Where possible the value of the assets should be enhanced to at least keep pace with inflation over the longer term so that an increase in income should be available to cover the effects of inflation in future. 

The Trustees are committed to cautious investment that avoids undue risk to the charity’s funds. Stable annual returns are to be met by a prudent investment strategy based on a diversified range of investment assets, which are quoted on a recognised investment exchange and unit trusts and open-ended investment companies (OEIC’s) which are authorised under the Financial Services and Markets Act 2000. The Trustees rely upon specialist advisors for asset selection and allocation. Investment performance is compared to an independent benchmark. No ethical restrictions apply to the portfolio, although the trustees reserve the right to exclude from the portfolio any investments in companies whose representation might prove damaging to the purposes of the charity. 

The investment properties were acquired through legacy and gift, and after consideration of the resources required for the charity to carry out its current and future activities, the Trustees decided to hold these properties as an investment to earn property rentals and for capital appreciation.  The Trustees consider the property to be shown at a fair value in the accounts based on current prices for similar properties in the same location and condition, and in accordance with the professional valuations since 2020. 

## **Factors relevant to achieve objectives** 

The expertise of our staff is important to the work of the charity. The Chairman and management seek to create a strong team ethos within the workforce, and as such are committed to supporting the development of the staff, volunteers and monitors at all sites. 

The Trustee body has recognised that it is important to have the relevant skills and representation on the trustee board. Having sought professional advice, a finance committee has been established to support and advise the Trustee board in future. The committee which meets monthly works closely with the auditors focussing on the charity’s finances, internal controls, and risk management. 

Those who serve on the Trustee board have duties, responsibilities, and liabilities both under Company Law as Directors and under Charity Law as Trustees. These key duties are always recognised in the recruitment, selection process, appointment, and induction of all Trustees. 

## **Financial Review** 

## **Financial Risk Management Objectives and Policies** 

Given that the charity continues to undertake a substantial programme of planned improvements on our farms and properties, it has a robust approach to project and budget management. Senior management ensure project 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

**THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

budgets are monitored and managed to contain costs with limited variance and to ensure projects deliver against the expected objectives. 

## **Reserves Policy** 

The Trustees review the Countryside Regeneration Trust’s reserves policy each year to ensure a balance between spending on the projects currently in progress and setting aside reserves to protect our work in the future. The trustees aim to maintain free reserves in unrestricted funds equivalent to at least six months unrestricted expenditure, which is budgeted at around £658,000 for the financial year to 31 March 2024. 

The Funds and Reserves held by the Trust are as follows (see also note 22 to the accounts): 

## **Unrestricted funds** 

The Property Assets Fund of £22,242,097 (2022 - £22,516,697) is the value of the unrestricted funds represented by the freehold and leasehold land and buildings, including assets under construction, and investment property owned by the Charity, less associated borrowings. 

The Trustees established the Redundant Farm Buildings & Acquisitions reserve to ensure there are sufficient funds available to complete the development projects at Pierrepont and Beremarsh Farms as well as taking advantage of opportunities that may arise to further the objectives of the Charity. Further funds are allocated as they are available and this year the trustees continue to ring-fence £974,725. 

This leaves a balance in the general fund of £1,348,061 (2022 - £165,608) which is sufficient to cover the Trust’s unrestricted projected expenditure for a period of 6 months, in line with the Reserves policy. The Trustees will continue to seek additional income and as part of their property audit have identified surplus properties to be sold and further boost free reserves in 2024. These funds are expected to be re-designated into Redundant Farm Buildings & Acquisitions as part of the property review. 

Reserves are held for the following purposes: 

- To protect the continuity of the charity’s work in the event of any future shortfall in income. 

- To protect the charity’s funds from loss in value e.g., market investments. 

- To provide the capital needed to finance expansion of the charity. 

- To provide the funds needed to replace assets. 

## **Financial Review of the Year** 

## **Income** 

The Trust has been fortunate in receiving legacy and donation income of £2,158,592 (2022 - £3,596,300). This includes legacy gifts of £2,067,316 of which £900,000 is restricted. All gifts are important to the of the CRT, and we are grateful to those and their families that remember the charity in their Wills. 

We are delighted to report that the charity remains in good health and is attracting new support. Nearly 250 new Friends joined over the last year, which means we currently have more than 2,000 active Friends – a 9 per cent increase on last year. More than one in four of our supporters are Life Friends, which gives us some certainty over our subscription revenue and helps us with future planning. 

Periodic assessment of our existing activities and competitor benchmarking has facilitated a new membership strategy for the next financial year whilst further investment into ThanQ, has enabled more effective management of our Friends relationships. 

The restricted donations for this financial year total £2,600 (2022 - £3,375). 

Income from charitable activities £280,959 (2022 – £208,883) is largely farm rents and income from Agri environmental schemes managed by the trust. 

Page 11 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

The performance of the investments was satisfactory and in line with general market volatility. Income from rents continues to improve following recent acquisitions. Total income from investments was £174,494 (2022: £336,417) 

## **Expenditure** 

The Trust spent £970,870 (2022 - £1,308,273) this year on our conservation, education, and monitoring activities, as well as managing and advising our portfolio of farms and land. 

Our costs of generating voluntary income were £679,105 (2022 - £494,282) and these include costs of appeals, advertising/public relations, printing and posting The Lark Friends magazine, staff costs, premises costs, depreciation, and professional fees. 

## **Future Plans** 

Following the departure of Executive Chairman, Robin Page in May 2021, the Trustees undertook a strategic review of the Trust’s aims and objectives to realign with current conservation and wildlife issues. It had been recognised that a review to our current business model was long overdue given the need to articulate the Trust’s mission statement more clearly and the social and economic environment derived from the impact of Covid – 19. 

Priority has therefore been given to: 

a) introducing a new senior management team which includes two new roles, a Head of Conservation and Land Management and Volunteer Manager. 

b) revising all operational budgets with a view to reducing operational costs by 20% in the next financial year, c) re-evaluating our brand and common purpose, and subsequently drafting the Fundraising and Marketing Plan d) implementing our first property audit to improve operational efficiency 

The majority of this work is underway with the CEO and Trustees meeting monthly to formally discuss and approve the progress for each of these areas. 

Our underlying objective is to futureproof the Trust through effective deployment of our resources, and repositioning as a credible authority on wildlife biodiversity and environmental issues. 

## **Structure, Governance and Management** 

## **Constitution** 

The Trust was originally set up as an unincorporated trust constituted under a trust deed dated 10 July 1991, as amended by deeds dated 1 September 1993 and 30 June 1994. However, in 2010, the trustees made the decision to incorporate the Trust because of its increasing size and complexity, and on 31 October 2011, all the assets and liabilities of the Trust were transferred to a new charitable company limited by guarantee. Under a Uniting order dated 16 February 2012, the old charity is now treated as forming part of the charitable company. The company was incorporated on 20 July 2010 and is registered as a charity with the Charity Commission. The company was set up under a Memorandum of Association and is governed by its Articles of Association which sets out the charity’s objects and powers. In the event of the company being wound up, the liability of each member is limited to £10. 

## **Method of Appointment or election of Trustees** 

The directors of the company are also charity Trustees for the purposes of charity law. Under the requirements of the company’s Articles of Association, the Trustees are appointed by ordinary resolution at a general meeting. The Trustees may also appoint a person who is willing to act, as a Trustee. At each annual general meeting one third of the Trustees must retire from office. The Trustees to retire by rotation are those who have been longest in office since their appointment. A Trustee appointed by a resolution of the other Trustees must retire at the next 

Page 12 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

annual general meeting. When appointing new Trustees, the board keeps the skill requirements for the Trustee body under review. 

## **Policies adopted for the induction and training of Trustees** 

New Trustees tour Lark Rise Farm managed by CRT tenant, Tim Scott to understand the practical work of the CRT. During this visit they meet key employees, monitors, volunteers, and the other trustees, and receive a briefing pack, detailing their legal obligations under charity and company law, Charity Commission guidance on public benefit, content of the Memorandum and Articles of Association, and the financial performance of the charity.  Once on board their skills are regularly reviewed to maintain a comprehensive skillset.  Attendance therefore at relevant external training events is mandatory where these will facilitate the undertaking of their role. 

## **Pay policy for staff and senior management** 

The directors consider that the board of directors, who are the CRT’s Trustees, and the senior management team comprise the key management personnel charged with the direction and running of the CRT on a day-today basis. All directors give their time freely and no director received remuneration in the year. Details of directors’ expenses and related party transactions are disclosed in notes 13 and 30 to the accounts. 

The pay of the staff and senior management is reviewed annually and increased in accordance with average earnings; we seek to be a living wage employer. In view of the nature of the charity, the directors benchmark senior management pay levels against other conservation charities of a similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for a similar role. 

## **Organisational Structure and Decision Making** 

The Board of Trustees meets four times a year, more often if required, and is responsible for the strategic direction and policy of the charity. The management team of two full time and seven part time staff are responsible for the day-to-day administration of the charity. The charity has a trading subsidiary, Lark Trading Limited, which was dormant throughout the year. 

## **Risk Management** 

The Trustees have assessed the major risks to which the company is exposed, those related to the operations and finances of the company and are satisfied those systems and procedures are in place to mitigate our exposure to the major risks. The Trustees actively participate in the assessment of risk, which is considered, in terms of identifying any significant changes in risk, at all Trustee Boards. The risk management process addresses risk at three levels: 

- the process aims to identify and classify all sources and types of risk. 

- triggering the necessary action to manage the risks, focusing on “major” risks; and 

- confirming that the remaining risk is consistent with the trustees’ view of acceptable risk. 

The Trustees document the risk assessment and action taken to mitigate risk in the Risk Register which provides a comprehensive risk profile of all the identified risks. Major risks that have been identified by the annual review of the principal risks and uncertainties of the charity and its subsidiary. This work has identified that the financial sustainability of the charity is based on a balance of income streams and being not wholly reliant on legacies is the major financial risk for the charity. A key element in the management of financial risk is a regular review of available liquid funds to settle debts as they fall due, regular liaison with the bank, and active management of trade debtors and creditors balances to ensure sufficient working capital by the Trust. 

Attention has also been focussed on non-financial risks arising from health and safety of farm visits, management of education visits and events. The charity remains extremely vigilant about the requirements of Health and Safety legislation, particularly with the risks associated with E coli. Foot and Mouth and latterly 

Page 13 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

**THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

COVID-19. Whilst it is not currently possible to foresee and evaluate all the potential long-term implications to the Trust’s operations, we have maintained delivery of our charitable objectives with our sites open and habitats managed in line with our property management plans. 

The Health and Safety of our staff, supporters and volunteers is paramount and guidance has regularly been sought from Environmental Health Officers to support our operational activities including risk assessments, site signage, temperature testing, workflow practices and the maintenance of hand washing facilities whilst continuing to review procedures on a regular basis. 

## **Information on fundraising practices** 

The Countryside Regeneration Trust follows the guidance laid down by the Fundraising Regulator. The trustees are committed to adhering to these regulations, following the Institute of Fundraising’s Code of Practice, and complying with the key principles embodied in this Code. We work hard to ensure that all fundraising activities are legal, open, honest, and respectful. 

An external fundraiser is employed and tasked with applying for Trusts and Foundations. A random sample of applications are reviewed by a trustee possessing professional experience in this field. Trustees also approve any application above £50,000. Aside from the submission of applications for restricted grant funds and financial support from charitable trusts, the organisation’s main fundraising activities have focused on generating support from individuals, primarily through the Friends scheme administered by ThanQ, a CRM database. Membership recruitment has been carried out through referrals, direct marketing, the Friends magazine, ‘The Lark’ and via the charity’s new website. 

A log is used to record and review any complaints received, including those regarding fundraising activities. The complaints return submitted to the Fundraising Regulator this year reported no complaints relating to fundraising. The Trustees are committed to honest and transparent communication with donors and supporters about how their contributions are spent. The communication preferences of our donors are recorded according to General Data Protection Regulation (GDPR) legislation, and we take care not to approach vulnerable people or to apply undue pressure upon anyone to support the charity. 

## **Employment Involvement and Employment of the Disabled** 

Weekly staff meetings encourage active dialogue between employees and management on a range of issues. Improved dialogue has been actively encouraged this year with greater focus and investment on internal communications generally. The hybrid working instigated by COVID-19 has meant this is a necessity to maintain staff engagement and morale. The company carries out exit interviews for all staff leaving the organisation and has adopted a procedure of upward feedback for senior management and the Trustees. 

The company has detailed policies in relation to all aspects of personnel matters including: 

- Equal opportunities policy 

- Volunteers' policy 

- Health & Safety policy 

- Health and Wellbeing policy 

- Safeguarding policy 

- Menopause Policy 

In accordance with the company's Equal opportunities policy, the company has long established fair employment practices in the recruitment, selection, retention, and training of disabled staff. 

Full details of our policies are available from the Bennell Court office. 

Page 14 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

## **Trustees' Responsibilities Statement** 

The Trustees (who are also directors of The Countryside Regeneration Trust for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the situation of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. 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 judgments and accounting estimates that are reasonable and prudent. 

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

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

## **Disclosure of Information to Auditors** 

- Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that: • so far as that Trustee is aware, there is no relevant audit information of which the charitable company's auditors are unaware, and 

- that Trustee has taken all the steps that ought to have been taken as a Trustee to be aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information. 

Approved by order of the members of the board of Trustees and signed on their behalf by: 


................................................ **N Watts** Executive Chairman 

18 December 2023 Date: 

Page 15 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE COUNTRYSIDE REGENERATION TRUST LTD** 

## **OPINION** 

We have audited the financial statements of The Countryside Regeneration Trust Ltd (the 'charity') for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Income and Expenditure Account, the Balance Sheet, the Statement of Cash Flows and the related notes, 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 charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended; 

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

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **BASIS FOR OPINION** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

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

Page 16 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE COUNTRYSIDE REGENERATION TRUST LTD (CONTINUED)** 

## **OTHER INFORMATION** 

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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. 

## **OPINION 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 for the financial year for which the financial statements are prepared is consistent with the financial statements. 

- 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 our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report. 

We have nothing to report in respect of the following matters in relation to which 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' Report and from the requirement to prepare a Strategic Report. 

Page 17 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE COUNTRYSIDE REGENERATION TRUST LTD (CONTINUED)** 

## **RESPONSIBILITIES OF TRUSTEES** 

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

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

## **AUDITORS' 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 Auditors' 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 charity through discussions with trustees and other management, and from our commercial knowledge and experience of the sector 

- we obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework; 

- we identified which laws and regulations were significant in the context of the entity; and 

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

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

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and 

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

Page 18 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE COUNTRYSIDE REGENERATION TRUST LTD (CONTINUED)** 

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

- tested journal entries to identify unusual transactions; 

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

- we assessed the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur; and 

- we tested significant transactions, in particular the evaluation of the business rationale for any which appeared unusual or outside the company’s normal course of business. 

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; and 

- we discussed with management, those charged with governance and the entity’s solicitors actual and potential litigation and claims. 

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 directors and other management and the inspection of regulatory and legal correspondence, if any. 

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report. 

Page 19 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

# **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE COUNTRYSIDE REGENERATION TRUST LTD (CONTINUED)** 

## **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 its members, as a body, for our audit work, for this report, or for the opinions we have formed. 


**Michael Hewett (Senior Statutory Auditor)** for and on behalf of **Peters Elworthy & Moore** Chartered Accountants Statutory Auditors Salisbury House Station Road Cambridge CB1 2LA 

Date: 18 December 2023 

Page 20 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD** 

## **(A Company Limited by Guarantee)** 

## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023** 

|**Note**<br>**INCOME AND**<br>**ENDOWMENTS**<br>**FROM:**<br>Donations and legacies<br>2<br>Charitable activities<br>3<br>Other trading activities<br>4<br>Investments<br>5<br>Other income<br>6<br>**TOTAL INCOME AND**<br>**ENDOWMENTS**<br>**EXPENDITURE ON:**<br>Raising funds<br>7,8<br>Charitable activities<br>9<br>**TOTAL**<br>**EXPENDITURE**<br>**NET**<br>**INCOME/(EXPENDIT**<br>**URE) BEFORE NET**<br>**GAINS/(LOSSES)**<br>**ON INVESTMENTS**<br>Net gains/(losses) on<br>investments<br>**NET**<br>**INCOME/(EXPENDIT**<br>**URE)**<br>Transfers between<br>funds<br>22<br>**NET MOVEMENT IN**<br>**FUNDS**|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>**1,255,992**<br>**280,959**<br>**33,683**<br>**134,194**<br>**28,781**<br>**1,733,609**<br>**668,736**<br>**935,395**<br>**1,604,131**<br>**129,478**<br>**536,083**<br>**665,561**<br>**242,291**<br>**907,852**|**Restricted**<br>**funds**<br>**2023**<br>**£**<br>**902,600**<br>**-**<br>**-**<br>**40,300**<br>**-**<br>**942,900**<br>**-**<br>**35,475**<br>**35,475**<br>**907,425**<br>**-**<br>**907,425**<br>**(242,291)**<br>**665,134**|**Endowment**<br>**funds**<br>**2023**<br>**£**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**10,369**<br>**-**<br>**10,369**<br>**(10,369)**<br>**(85,030)**<br>**(95,399)**<br>**-**<br>**(95,399)**|**Total**<br>**funds**<br>**2023**<br>**£**<br>**2,158,592**<br>**280,959**<br>**33,683**<br>**174,494**<br>**28,781**<br>**2,676,509**<br>**679,105**<br>**970,870**<br>**1,649,975**<br>**1,026,534**<br>**451,053**<br>**1,477,587**<br>**-**<br>**1,477,587**|Total<br>funds<br>2022<br>£<br>3,596,300<br>208,883<br>35,862<br>336,417<br>8,169|
|---|---|---|---|---|---|
||||||4,185,631|
||||||494,282<br>1,308,273|
||||||1,802,555|
||||||2,383,076<br>757,142|
||||||3,140,218<br>-|
||||||3,140,218|



Page 21 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD** 

## **(A Company Limited by Guarantee)** 

## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

|**Note**<br>**RECONCILIATION OF**<br>**FUNDS:**<br>Total funds brought<br>forward<br>Net movement in funds<br>**TOTAL FUNDS**<br>**CARRIED**<br>**FORWARD**|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>**23,657,030**<br>**907,852**<br>**24,564,882**|**Restricted**<br>**funds**<br>**2023**<br>**£**<br>**1,178,693**<br>**665,134**<br>**1,843,827**|**Endowment**<br>**funds**<br>**2023**<br>**£**<br>**1,273,392**<br>**(95,399)**<br>**1,177,993**|**Total**<br>**funds**<br>**2023**<br>**£**<br>**26,109,115**<br>**1,477,587**<br>**27,586,702**|Total<br>funds<br>2022<br>£<br>22,968,897<br>3,140,218|
|---|---|---|---|---|---|
||||||26,109,115|



The Statement of Financial Activities includes all gains and lossed recognised in the year. The notes on pages 27 to 53 form part of these financial statements. 

Page 22 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023** 

|Income<br>Gains on investments<br>**GROSS INCOME IN THE REPORTING**<br>**PERIOD**<br>Less: Total expenditure<br>**NET INCOME FOR THE REPORTING**<br>**PERIOD**|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>**1,733,609**<br>**536,083**<br>**2,269,692**<br>**(1,604,131)**<br>**665,561**|**Restricted**<br>**funds**<br>**2023**<br>**£**<br>**942,900**<br>**-**<br>**942,900**<br>**(35,475)**<br>**907,425**|**Total funds**<br>**2023**<br>**£**<br>**2,676,509**<br>**536,083**<br>**3,212,592**<br>**(1,639,606)**<br>**1,572,986**|Total funds<br>2022<br>£<br>4,185,631<br>701,500<br>4,887,131<br>(1,791,446)<br>3,095,685|
|---|---|---|---|---|



The notes on pages 27 to 53 form part of these financial statements. 

Page 23 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee) REGISTERED NUMBER: 07320026** 

## **BALANCE SHEET AS AT 31 MARCH 2023** 

|**Note**<br>**FIXED ASSETS**<br>Tangible assets<br>14<br>Investment property<br>15<br>Investments<br>16<br>**CURRENT ASSETS**<br>Stocks<br>17<br>Debtors<br>18<br>Cash at bank and in hand<br>Creditors: amounts falling due within one<br>year<br>19<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**<br>Creditors: amounts falling due after more<br>than one year<br>20<br>Provisions for liabilities<br>21<br>**NET ASSETS**<br>**CHARITY FUNDS**<br>Endowment funds<br>22<br>Restricted funds<br>22<br>Unrestricted funds<br>22<br>**TOTAL FUNDS**|**74,100**<br>**2,077,055**<br>**1,545,107**<br>**3,696,262**<br>**(164,114)**|**2023**<br>**£**<br>**16,893,405**<br>**6,832,500**<br>**1,037,743**<br>**24,763,648**<br>**3,532,148**<br>**28,295,796**<br>**(570,344)**<br>**(138,750)**<br>**27,586,702**<br>**1,177,993**<br>**1,843,827**<br>**24,564,882**<br>**27,586,702**|74,100<br>953,614<br>1,284,875<br>2,312,589<br>(269,136)|2022<br>£<br>17,086,728<br>6,584,500<br>1,130,793<br>24,802,021<br>2,043,453<br>26,845,474<br>(582,609)<br>(153,750)<br>26,109,115<br>1,273,392<br>1,178,693<br>23,657,030<br>26,109,115|
|---|---|---|---|---|



Page 24 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

# **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee) REGISTERED NUMBER: 07320026** 

# **BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2023** 

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. 

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. 

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by: 


................................................ 

**N Watts** Executive Chairman Trustee 

Date: 18 December 2023 

The notes on pages 27 to 53 form part of these financial statements. 

Page 25 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023** 

|**CASH FLOWS FROM OPERATING ACTIVITIES**<br>Net cash used in operating activities<br>**CASH FLOWS FROM INVESTING ACTIVITIES**<br>Dividends, interests and rents from investments<br>Proceeds from the sale of property, plant and equipment<br>Proceeds from the sale of investment properties<br>Purchase of tangible fixed assets<br>Net addition to investments<br>**NET CASH PROVIDED BY INVESTING ACTIVITIES**<br>**CASH FLOWS FROM FINANCING ACTIVITIES**<br>Repayments of borrowing<br>**NET CASH USED IN FINANCING ACTIVITIES**<br>**CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR**<br>Cash and cash equivalents at the beginning of the year<br>**CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR**<br>The notes on pages 27 to 53 form part of these financial statements|**2023**<br>**£**<br>**(442,973)**<br>**174,494**<br>**282,994**<br>**288,083**<br>**(5,048)**<br>**8,019**<br>**748,542**<br>**(45,337)**<br>**(45,337)**<br>**260,232**<br>**1,284,875**<br>**1,545,107**|2022<br>£<br>(1,009,657)<br>245,774<br>476,650<br>-<br>(5,391)<br>5,532<br>**722,565**<br>(40,443)<br>**(40,443)**<br>**(327,535)**<br>1,612,410<br>1,284,875|
|---|---|---|



Page 26 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

# **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **1. ACCOUNTING POLICIES** 

## **1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS** 

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. 

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

The results of the dormant subsidary, Lark Trading Limited are not consolidated in these financial statements. 

## **1.2 GOING CONCERN** 

The Trustees have prepared budgets to 31 December 2024. The Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements continue to be prepared on the going concern basis. 

## **1.3 COMPANY STATUS** 

The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company. 

## **1.4 FUND ACCOUNTING** 

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

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. 

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

Investment income, gains and losses are allocated to the appropriate fund. 

Page 27 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

# **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **1. ACCOUNTING POLICIES (CONTINUED)** 

## **1.5 INCOME** 

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

For legacies, entitlement is taken as the earlier of the date on which either: the company is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate.  Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the company has been notified of the executor's intention to make a distribution.  Where legacies have been notified to the company, or the company is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. 

Grants, including government grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. 

Donated services or facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised and refer to the Trustees' report for more information about their contribution. 

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. 

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. 

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. 

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. 

## **1.6 EXPENDITURE** 

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. 

Page 28 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

**THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **1. ACCOUNTING POLICIES (CONTINUED)** 

## **1.6 EXPENDITURE (CONTINUED)** 

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. 

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds. 

Charitable activities are costs incurred on the company's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities. 

All expenditure is inclusive of irrecoverable VAT. 

## **1.7 TANGIBLE FIXED ASSETS AND DEPRECIATION** 

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. 

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. 

The estimated useful lives are as follows: 

|Freehold property|- 20 years or 50 years|
|---|---|
|Head office|- Term of the lease|
|Motor vehicles|- 4 years|
|Office and farm equipment|- 4 years|



## **1.8 INVESTMENTS** 

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities. 

Investments in subsidiaries are valued at cost less provision for impairment. 

## **1.9 STOCKS** 

Herds and goods for sale are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving stocks. 

## **1.10 DEBTORS** 

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 

Page 29 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

**THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **1. ACCOUNTING POLICIES (CONTINUED)** 

## **1.11 CASH AT BANK AND IN HAND** 

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 

## **1.12 LIABILITIES AND PROVISIONS** 

Liabilities and provisions are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. 

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. 

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost. 

## **1.13 FINANCIAL INSTRUMENTS** 

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 

## **1.14 PENSIONS** 

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year. 

Page 30 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

**THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **1. ACCOUNTING POLICIES (CONTINUED)** 

## **JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION 1.15 UNCERTAINTY** 

The preparation of the accounts requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses. These judgements, estimates and associated assumptions are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results. 

Management consider the areas set out below to be those where critical accounting judgements have been applied and the resulting estimates and assumptions may lead to adjustments to the future carrying amounts of assets and liabilities. 

Income recognition – Judgement is applied in determining the value and timing of certain income items to be recognised in the accounts. This includes determining the appropriate recognition timing for donations and legacies. In general, the later are recognised when at the probate stage. 

Useful lives of property, plant and equipment – Property, plant and equipment represent a significant proportion of the Charity's total assets. Therefore the estimated useful lives can have a significant impact on the depreciation charged and the Charity's reported performance. Useful lives are determined at the time the asset is acquired and reviewed regularly for appropriateness. The lives are based on historical experiences with similar assets, professional advice and anticipation of future events. 

Investment property – Properties are revalued to their fair value at the reporting date by professional valuers. The valuation is based on the assumptions and judgements which are impacted by a variety of factors including market and other economic conditions. 

Listed investments - listed investments are revalued to fair value by the Charity's investment managers. 

Provision - the provision is an estimate of amount payable using mortality tables. 

Page 31 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **2. INCOME FROM DONATIONS AND LEGACIES** 

|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>Donations<br>88,676<br>Legacies<br>1,167,316<br>Grants<br>-<br>Government grants<br>-<br>**TOTAL 2023**<br>1,255,992<br>TOTAL 2022<br>3,592,925|**Restricted**<br>**funds**<br>**2023**<br>**£**<br>2,600<br>900,000<br>-<br>-<br>902,600<br>3,375|**Total**<br>**funds**<br>**2023**<br>**£**<br>**91,276**<br>**2,067,316**<br>**-**<br>**-**<br>**2,158,592**<br>3,596,300|Total<br>funds<br>2022<br>£<br>115,731<br>3,468,091<br>600<br>11,878|
|---|---|---|---|
||||3,596,300|
|||||



Government grants received in 2022 represented amounts receivable under the Coronvirus Job Retention Scheme (CJRS) of £2,878 to cover salaries of furloughed staff and a grant of £9,000 from Herefordshire Council for Covid-19 business rates. 

## **3. INCOME FROM CHARITABLE ACTIVITIES** 

|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>Rental income<br>280,959<br>Other income<br>-<br>**TOTAL 2023**<br>280,959<br>TOTAL 2022<br>208,883|**Total**<br>**funds**<br>**2023**<br>**£**<br>**280,959**<br>**-**<br>**280,959**<br>208,883|Total<br>funds<br>2022<br>£<br>206,971<br>1,912|
|---|---|---|
|||208,883|
||||



Page 32 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **4. FUNDRAISING INCOME** 

## **Income from fundraising events** 

|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>Fundraising events<br>33,683<br>TOTAL 2022<br>35,862|**Total**<br>**funds**<br>**2023**<br>**£**<br>**33,683**<br>35,862|Total<br>funds<br>2022<br>£<br>35,862|
|---|---|---|
||||



## **5. INVESTMENT INCOME** 

|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>Property rental income<br>134,194<br>Income from stocks and shares<br>-<br>**TOTAL 2023**<br>134,194<br>TOTAL 2022<br>304,768|**Restricted**<br>**funds**<br>**2023**<br>**£**<br>975<br>39,325<br>40,300<br>31,649|**Total**<br>**funds**<br>**2023**<br>**£**<br>**135,169**<br>**39,325**<br>**174,494**<br>336,417|Total<br>funds<br>2022<br>£<br>304,768<br>31,649|
|---|---|---|---|
||||336,417|
|||||



## **6. OTHER INCOME** 

|Other income<br>**TOTAL 2023**<br>TOTAL 2022|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>28,781<br>28,781<br>8,169|**Total**<br>**funds**<br>**2023**<br>**£**<br>**28,781**<br>**28,781**<br>8,169|Total<br>funds<br>2022<br>£<br>8,169|
|---|---|---|---|
||||8,169|
|||||



Page 33 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **7. EXPENDITURE ON RAISING FUNDS** 

## **COSTS OF RAISING VOLUNTARY INCOME** 

|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>Advertising, PR and literature<br>182,812<br>Event costs<br>1,364<br>Other costs<br>828<br>Wages and salaries<br>167,915<br>Social security costs<br>15,685<br>Pension costs<br>2,863<br>Allocated centrally incurred fundraising and governance<br>costs (note 11)<br>297,269<br>**TOTAL 2023**<br>668,736<br>TOTAL 2022<br>483,173|**Total**<br>**funds**<br>**2023**<br>**£**<br>**182,812**<br>**1,364**<br>**828**<br>**167,915**<br>**15,685**<br>**2,863**<br>**297,269**<br>**668,736**<br>483,173|Total<br>funds<br>2022<br>£<br>135,573<br>2,258<br>999<br>86,156<br>6,754<br>1,409<br>250,024|
|---|---|---|
|||483,173|
||||



## **8. INVESTMENT MANAGEMENT COSTS** 

|Investment management fees<br>TOTAL 2022|**Endowment**<br>**funds**<br>**2023**<br>**£**<br>10,369<br>11,109|**Total**<br>**funds**<br>**2023**<br>**£**<br>**10,369**<br>11,109|Total<br>funds<br>2022<br>£<br>11,109|
|---|---|---|---|
|||||



Page 34 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **9. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES** 

## **Summary by fund type** 

|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>Conservation<br>473,197<br>Education and Demonstration<br>208,307<br>Farm/Land Management<br>253,891<br>**TOTAL 2023**<br>935,395<br>TOTAL 2022<br>1,285,042|**Restricted**<br>**funds**<br>**2023**<br>**£**<br>8,811<br>-<br>26,664<br>35,475<br>23,231|**Total**<br>**2023**<br>**£**<br>**482,008**<br>**208,307**<br>**280,555**<br>**970,870**<br>1,308,273|Total<br>2022<br>£<br>604,217<br>217,257<br>486,799|
|---|---|---|---|
||||1,308,273|
|||||



## **10. ANALYSIS OF EXPENDITURE BY ACTIVITIES** 

|Conservation<br>Education and Demonstration<br>Farm/Land Management<br>**TOTAL 2023**<br>TOTAL 2022|**Activities**<br>**undertaken**<br>**directly**<br>**2023**<br>**£**<br>109,305<br>56,701<br>173,160<br>339,166<br>558,203|**Support**<br>**costs**<br>**2023**<br>**£**<br>372,703<br>151,606<br>107,395<br>631,704<br>750,070|**Total**<br>**funds**<br>**2023**<br>**£**<br>**482,008**<br>**208,307**<br>**280,555**<br>**970,870**<br>1,308,273|Total<br>funds<br>2022<br>£<br>604,217<br>217,257<br>486,799|
|---|---|---|---|---|
|||||1,308,273|
||||||



Page 35 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **10. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)** 

## **ANALYSIS OF DIRECT COSTS** 

|Staff costs<br>Conservation and monitoring<br>Property maintenance<br>Property management<br>Legal and professional<br>Other costs<br>**TOTAL 2023**<br>TOTAL 2022|**Conservatio**<br>**n**<br>**2023**<br>**£**<br>109,042<br>263<br>-<br>-<br>-<br>-<br>109,305<br>101,670|**Education/D**<br>**emonstratio**<br>**n**<br>**2023**<br>**Farm/Land**<br>**Managemen**<br>**t**<br>**2023**<br>**£**<br>**£**<br>56,701<br>31,221<br>-<br>-<br>-<br>72,942<br>-<br>31,677<br>-<br>37,320<br>-<br>-<br>56,701<br>173,160<br>67,242<br>389,291|**Total**<br>**funds**<br>**2023**<br>**£**<br>**196,964**<br>**263**<br>**72,942**<br>**31,677**<br>**37,320**<br>**-**<br>**339,166**<br>558,203|Total<br>funds<br>2022<br>£<br>175,283<br>8,090<br>247,908<br>15,193<br>111,195<br>534|
|---|---|---|---|---|
|||||558,203|
||||||



Page 36 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **11. SUPPORT COSTS ANALYSIS** 

||**Fundraising**<br>**costs **|**Conservation**<br>**Education/**<br>**demonstration**<br>**Farm/land**<br>**management**|**Conservation**<br>**Education/**<br>**demonstration**<br>**Farm/land**<br>**management**|**Conservation**<br>**Education/**<br>**demonstration**<br>**Farm/land**<br>**management**|**Total**<br>**funds**<br>**Total**<br>**funds**|
|---|---|---|---|---|---|
||**2023**|**2023**|**2023**|**2023**|**2023**<br>**2022**|
||**£**|**£**|**£**|**£**|**£**<br>**£**|
|||||||
|Staff costs|59,056|56,620|23,032|16,314|**155,022**<br>114,233|
|Depreciation|60,960|58,445|23,774|16,840|**160,019**<br>155,851|
|Premises costs|51,227|49,115|19,979|14,158|**134,479**<br>179,366|
|Bank interest<br>and charges|7,477|7,169|2,916|2,066|**19,628**<br>58,077|
|Trustees'<br>expenses|1,759|1,687|686|486|**4,618**<br>6,545|
|Professional<br>fees|59,173|56,732|23,077|16,346|**155,328**<br>154,688|
|Audit and<br>accountancy|15,414|14,778|6,011|4,258|**40,461**<br>33,150|
|Consultancy<br>Governance<br>costs|42,203<br>-|40,462<br>87,695|16,459<br>35,672|11,659<br>25,268|**110,783**<br>128,168<br>**148,635**<br>170,016|
||297,269|372,703|151,606|107,395|**928,973**<br>1,000,094|



2022 comparitives: Fundraising costs £250,024, Conservation £502,547, Education and Demonstration £150,015, Farm/land Management £97,508. 

## **12. AUDITORS' REMUNERATION** 

||**2023**|2022|
|---|---|---|
||**£**|£|
|Fees payable to the Charity's auditor for the audit of the Charity's annual|||
|accounts|**12,500**|9,980|
|Fees payable to the Charity's auditor in respect of:|||
|All non-audit services not included above|**26,950**|29,960|



Page 37 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **13. STAFF COSTS** 

|Wages and salaries<br>Social security costs<br>Contribution to defined contribution pension schemes|**2023**<br>**£**<br>**501,701**<br>**45,296**<br>**17,976**<br>**564,973**|2022<br>£<br>371,987<br>29,162<br>6,084|
|---|---|---|
||||
|||407,233|



The average number of persons employed by the Charity during the year was as follows: 

|Admin staff<br>Field staff<br>Management staff|**2023**<br>**No.**<br>**6**<br>**7**<br>**5**<br>**18**|2022<br>No.<br>5<br>5<br>5|
|---|---|---|
||||
|||15|



The average headcount expressed as full-time equivalents was 12 (2022: 12). 

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: 

||**2023**|2022|
|---|---|---|
||**No.**|No.|
|In the band £90,001 - £100,000|**-**|1|
|In the band £100,001 - £110,000|**1**|-|



The key management personnel of the charity comprise the Trustees and Chief Executive Officer. The total costs of key management personnel were £115,293 (2022: £98,450). 

No Trustees received any direct remuneration or benefits in the year (2022: £NIL). During the year, travel and subsistence expenses totalling £852 were reimbursed or paid directly to 2 trustees (2022: £764 to 1 trustee). 

Page 38 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **14. TANGIBLE FIXED ASSETS** 

|**COST**<br>At 1 April 2022<br>Additions<br>Disposals<br>At 31 March 2023<br>**DEPRECIATION**<br>At 1 April 2022<br>Charge for the year<br>On disposals<br>At 31 March 2023<br>**NET BOOK VALUE**<br>At 31 March 2023<br>At 31 March 2022|**Freehold**<br>**property**<br>**£**<br>**18,267,071**<br>**-**<br>**(66,712)**<br>**18,200,359**<br>**1,211,776**<br>**174,050**<br>**(59,666)**<br>**1,326,160**<br>**16,874,199**<br>17,055,295|**Motor**<br>**vehicles**<br>**£**<br>**47,241**<br>**-**<br>**(23,682)**<br>**23,559**<br>**44,532**<br>**1,885**<br>**(22,858)**<br>**23,559**<br>**-**<br>2,709|**Office**<br>**equipment**<br>**£**<br>**67,009**<br>**5,048**<br>**-**<br>**72,057**<br>**48,684**<br>**8,356**<br>**-**<br>**57,040**<br>**15,017**<br>18,325|**Computer**<br>**equipment**<br>**£**<br>**106,877**<br>**-**<br>**-**<br>**106,877**<br>**96,478**<br>**6,210**<br>**-**<br>**102,688**<br>**4,189**<br>10,399|**Total**<br>**£**<br>**18,488,198**<br>**5,048**<br>**(90,394)**<br>**18,402,852**<br>**1,401,470**<br>**190,501**<br>**(82,524)**<br>**1,509,447**<br>**16,893,405**<br>17,086,728|
|---|---|---|---|---|---|



Page 39 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **15. INVESTMENT PROPERTY** 

|**VALUATION**<br>At 1 April 2022<br>Disposals<br>Surplus on revaluation<br>At 31 March 2023|**Freehold**<br>**investment**<br>**property**<br>**£**<br>**6,584,500**<br>**(235,000)**<br>**483,000**<br>**6,832,500**|
|---|---|



All investment properties were professionally revalued as at 31 March 2023. Green Farm, Pierrepont Farm and Brays farm were revalued during the year by Alistair Cameron MRICS FAAV of Batcheller Monkhouse, on the basis of Existing Use Value. Bere Marsh Cottage was valued by the trustees on an open market basis using its agreed future sales price. Church Cottage was disposed of in October 2022. 

## **16. FIXED ASSET INVESTMENTS** 

|**COST OR VALUATION**<br>At 1 April 2022<br>Additions<br>Disposals<br>Revaluations<br>Movements in cash<br>AT 31 MARCH 2023|**Investment**<br>**portfolio**<br>**£**<br>**1,097,153**<br>**181,488**<br>**(222,047)**<br>**(49,544)**<br>**-**<br>**1,007,050**|**Cash at**<br>**brokers**<br>**£**<br>**33,640**<br>**-**<br>**-**<br>**-**<br>**(2,947)**<br>**30,693**|**Total**<br>**£**<br>**1,130,793**<br>**181,488**<br>**(222,047)**<br>**(49,544)**<br>**(2,947)**<br>**1,037,743**|
|---|---|---|---|



Page 40 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

# **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **16. FIXED ASSET INVESTMENTS (CONTINUED)** 

All the fixed asset investments are held in the UK 

## **VALUATION** 

All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open ended investment companies are at the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value). 

The significance of financial instruments to the ongoing financial sustainability of the Charity is considered in the financial review and investment policy and performance sections of the Trustees' Annual Report. 

The objectives of the funds held by The Countryside Regeneration Trust are to provide long term growth by investing in a portfolio of other authorised funds, worldwide equities, fixed interest stocks, cash and money market instruments. 

The investment managers will take a fundamental and value driven approach to the portfolio allocation, dependant on the relevant attractions of the world equity, fixed interest and currency markets.  The fund will take an aggressive view of the stock market weightings in the portfolio, when compared to a neutral world market capitalisation. 

The fund has little exposure to credit or cash flow risk.  There are no borrowings or unlisted securities of a material nature and so there is little exposure to liquidity risk.  The main risks it faces from its financial instruments are market price, foreign currency and interest rate risk.  The policies are reviewed for managing these risks in order to follow and achieve the investment objective. 

## **17. STOCKS** 

||**2023**|2022|
|---|---|---|
||**£**|£|
|Jersey herd|**74,100**|74,100|



## **18. DEBTORS** 

|Trade debtors<br>Other debtors<br>Prepayments and accrued income<br>Tax recoverable|**2023**<br>**£**<br>**24,914**<br>**1,989,179**<br>**62,962**<br>**-**<br>**2,077,055**|2022<br>£<br>20,936<br>867,799<br>61,879<br>3,000|
|---|---|---|
||||
|||953,614|



Page 41 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

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

|Bank loans<br>Trade creditors<br>Amounts owed to group undertakings<br>Other taxation and social security<br>Other creditors<br>Accruals and deferred income|**2023**<br>**£**<br>**17,176**<br>**53,830**<br>**2,799**<br>**2,737**<br>**37,294**<br>**50,278**<br>**164,114**|2022<br>£<br>26,474<br>88,851<br>2,799<br>10,979<br>22,287<br>117,746|
|---|---|---|
||||
|||269,136|



Deferred income is represented by rental income received in advance. 

|**DEFERRED INCOME**<br>Deferred income at 1 April 2022<br>Resources deferred during the year<br>Amounts released from previous periods|**2023**<br>**£**<br>**36,658**<br>**15,414**<br>**(36,658)**<br>**15,414**|2022<br>£<br>1,298<br>36,658<br>(1,298)|
|---|---|---|
||||
|||36,658|



The Charity has a mortgage repayable over 25 years that is secured over the property at Turnerstone. The mortgage incurs interest at 5% above base rate. 

Page 42 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

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

|Bank loans<br>Included within the above are amounts falling due as follows:<br>**BETWEEN ONE AND TWO YEARS**<br>Bank loans<br>**BETWEEN TWO AND FIVE YEARS**<br>Bank loans<br>**OVER FIVE YEARS**<br>Bank loans|**2023**<br>**£**<br>**570,344**<br>**2023**<br>**£**<br>**18,270**<br>**63,123**<br>**488,951**|2022<br>£<br>582,609<br>2022<br>£<br>26,108|
|---|---|---|
|||82,353|
|||474,148|



The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is: 

||**2023**|2022|
|---|---|---|
||**£**|£|
|Payable or repayable by instalments|**488,951**|474,148|



The Charity has a mortgage repayable over 25 years that is secured over the property at Turnastone. The mortgage incurs interest at 5% above base rate. 

Page 43 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **21. PROVISIONS** 

||**Babers Farm**|
|---|---|
||**£**|
|At 1 April 2022|**153,750**|
|Additions|**(15,000)**|
||**138,750**|



As part of the agreement to gift the land and property at Babers Farm to the Charity, the Charity gave an undertaking to allow the donor’s wife to occupy the farmhouse until her death, or should she vacate the property, a sum equal to the higher of £15,000 or 50% of the rent received on the farmhouse should be paid per annum. In 2018 the property was vacated and an estimate of the amount payable was made using mortality tables. During the year, payments totalling £15,000 (2022 - £15,000) were made under this agreement. No revision to the provision using latest mortality tables has been revised. At the balance sheet date the balance of the provision amounted £138,750 (2022 - £153,750). 

Page 44 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **22. STATEMENT OF FUNDS** 

**STATEMENT OF FUNDS - CURRENT YEAR** 

|**UNRESTRICTED FUNDS**<br>**DESIGNATED FUNDS**<br>Redundant Farm Buildings<br>Property Assets Fund<br>**GENERAL FUNDS**<br>General Funds - all funds<br>**TOTAL UNRESTRICTED FUNDS**<br>**ENDOWMENT FUNDS**<br>Green Farm|**Balance at 1**<br>**April 2022**<br>**£**<br>**974,725**<br>**22,516,697**<br>**23,491,422**<br>**165,608**<br>**23,657,030**<br>**1,273,392**|**Income**<br>**£**<br>**-**<br>**-**<br>**-**<br>**1,733,609**<br>**1,733,609**<br>**-**|**Expenditure**<br>**£**<br>**-**<br>**(167,680)**<br>**(167,680)**<br>**(1,436,451)**<br>**(1,604,131)**<br>**(10,369)**|**Transfers**<br>**in/out**<br>**£**<br>**-**<br>**(589,921)**<br>**(589,921)**<br>**832,212**<br>**242,291**<br>**-**|**Gains/**<br>**(Losses)**<br>**£**<br>**-**<br>**483,000**<br>**483,000**<br>**53,083**<br>**536,083**<br>**(85,030)**|**Balance at**<br>**31 March**<br>**2023**<br>**£**<br>**974,725**<br>**22,242,096**|
|---|---|---|---|---|---|---|
|||||||**23,216,821**|
|||||||**1,348,061**|
|||||||**24,564,882**|
|||||||**1,177,993**|



Page 45 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **22. STATEMENT OF FUNDS (CONTINUED)** 

## **RESTRICTED FUNDS** 

|**RESTRICTED FUNDS**|||||||
|---|---|---|---|---|---|---|
|Mayfields<br>Pierrepont Farm Appeal<br>Sundry Grants/donations<br>Appeals<br>Lark Rise<br>Green Farm<br>Awnells Farm<br>Stephen Freeman Fund<br>**TOTAL OF FUNDS**|**235,000**<br>**3,000**<br>**4,350**<br>**14,085**<br>**34,128**<br>**-**<br>**888,130**<br>**-**<br>**1,178,693**<br>**26,109,115**|**975**<br>**-**<br>**2,600**<br>**-**<br>**-**<br>**39,325**<br>**-**<br>**900,000**<br>**942,900**<br>**2,676,509**|**(596)**<br>**-**<br>**-**<br>**(323)**<br>**-**<br>**(25,745)**<br>**(8,811)**<br>**-**<br>**(35,475)**<br>**(1,649,975)**|**(235,379)**<br>**(3,000)**<br>**-**<br>**9,668**<br>**-**<br>**(13,580)**<br>**-**<br>**-**<br>**(242,291)**<br>**-**|**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**451,053**|**-**<br>**-**<br>**6,950**<br>**23,430**<br>**34,128**<br>**-**<br>**879,319**<br>**900,000**|
|||||||**1,843,827**|
|||||||**27,586,702**|



Page 46 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **22. STATEMENT OF FUNDS (CONTINUED)** 

## **Unrestricted Funds** 

## **General Fund** 

The general fund represents the free reserves after allowing for all designated funds. 

## **Designated Funds** 

The Property Assets Fund is the value of unrestricted funds represented by freehold and leasehold land and buildings and investment property owned by the charity, less associated borrowings. 

The Redundant Buildings Fund brought forward was the value of unrestricted funds allocated by the trustees for funding renovation of redundant farm buildings at 51 Wimpole Road, Turnastone Court Farm, Pierrepont Farm and Garden Cottage, Twyford. At the year end the carry forward balance represented funding for development projects at Pierrepoint and Beremarsh Farm. 

## **Restricted Funds** 

Restricted funds are those which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. 

The Mayfields restricted fund was established by gift in 2005. A further gift in kind of £178,000 was made in 2008. The fund was available to be used for the conservation and creation of the Mayfields Shepherding and Countryside Centre within the objects of the Trust. These funds had been spent in prior years and the balance now transferred to unrestrcted funds. 

The Pierrepont restricted fund was established by gift in 2006. The fund is available to be used for the restoration and conservation of Pierrepont Farm within the objects of the Trust. This money has been fully spent. 

Green Farm. The income generated by the endowment fund is used firstly for the upkeep and maintenance of The Green Farm estate and secondly, if there is a surplus in any one year, for the general benefit of the charity, the use of which are restricted under the terms of the deed of gift. In the first few years the costs in maintaining the estate exceeded the income generated meaning the fund was in deficit. In the last couple of years the income has increased and the surplus generated this year has been transferred to unrestricted funds. 

Awnells Farm. This fund represents the land and buildings at Awnells Farm, the use of which are restricted under the terms of the deed of gift. 

Page 47 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **22. STATEMENT OF FUNDS (CONTINUED)** 

Appeals. This represents the funds raised by appeals, which are to be applied for specific projects under the terms of the appeals. The year end balance represents the Barn Owl appeal. 

Lark Rise. This fund represents monies received for the upkeep and maintenance of Lark Rise Farm. 

The Stephen Freeman Fund was established by a legacy received in 2023 to fund a barn conversion at Pierrepont. 

## **Endowment Fund** 

This fund represents an expendable endowment whereby the income generated by the capital fund should be used firstly for the upkeep and maintenance of The Green Farm estate and secondly, if there is a surplus in any one year, for the general benefit of the charity. The capital fund may only be used for the purposes of maintaining Green Farm Estate if in any given year, the income from the fund is insufficient 

. 

Page 48 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD** 

## **(A Company Limited by Guarantee)** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **22. STATEMENT OF FUNDS (CONTINUED)** 

**STATEMENT OF FUNDS - PRIOR YEAR** 

|**UNRESTRICTED FUNDS**<br>**DESIGNATED FUNDS**<br>Redundant Farm Buildings<br>Property Assets Fund<br>**GENERAL FUNDS**<br>General Funds - all funds<br>**TOTAL UNRESTRICTED FUNDS**<br>**ENDOWMENT FUNDS**<br>Green Farm|Balance at<br>1 April 2021<br>£<br>500,000<br>19,488,068<br>19,988,068<br>565,780<br>20,553,848<br>1,228,859|Income<br>£<br>-<br>-<br>-<br>4,150,607<br>4,150,607<br>-|Expenditure<br>£<br>-<br>(163,265)<br>(163,265)<br>(1,604,950)<br>(1,768,215)<br>(11,109)|Transfers<br>in/out<br>£<br>474,725<br>2,490,394<br>2,965,119<br>(2,945,829)<br>19,290<br>-|Gains/<br>(Losses)<br>£<br>-<br>701,500<br>701,500<br>-<br>701,500<br>55,642|Balance at<br>31 March<br>2022<br>£<br>974,725<br>22,516,697|
|---|---|---|---|---|---|---|
|||||||23,491,422|
|||||||165,608|
|||||||23,657,030|
|||||||1,273,392|



Page 49 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **22. STATEMENT OF FUNDS (CONTINUED)** 

## **RESTRICTED FUNDS** 

|Mayfields<br>Pierrepont Farm Appeal<br>Landfill Match Fund<br>Sundry Grants/donations<br>Appeals<br>Lark Rise<br>Green Farm<br>Awnells Farm<br>**TOTAL OF FUNDS**|235,000<br>3,000<br>1,002<br>1,000<br>14,480<br>34,495<br>-<br>897,213<br>1,186,190<br>22,968,897|-<br>-<br>-<br>3,350<br>25<br>-<br>31,649<br>-<br>35,024<br>4,185,631|-<br>-<br>-<br>-<br>(420)<br>(367)<br>(13,361)<br>(9,083)<br>(23,231)<br>(1,802,555)|-<br>-<br>(1,002)<br>-<br>-<br>-<br>(18,288)<br>-<br>(19,290)<br>-|-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>757,142|235,000<br>3,000<br>-<br>4,350<br>14,085<br>34,128<br>-<br>888,130|
|---|---|---|---|---|---|---|
|||||||1,178,693|
|||||||26,109,115|



Page 50 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **23. ANALYSIS OF NET ASSETS BETWEEN FUNDS** 

## **ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR** 

|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>Tangible fixed assets<br>16,013,820<br>Fixed asset investments<br>1<br>Investment property<br>6,832,500<br>Current assets<br>2,591,769<br>Creditors due within one year<br>(164,114)<br>Creditors due in more than one year<br>(570,344)<br>Provisions for liabilities and charges<br>(138,750)<br>**TOTAL**<br>24,564,882|**Restricted**<br>**funds**<br>**2023**<br>**£**<br>879,585<br>-<br>-<br>964,242<br>-<br>-<br>-<br>1,843,827|**Endowment**<br>**funds**<br>**2023**<br>**£**<br>-<br>1,037,742<br>-<br>140,251<br>-<br>-<br>-<br>1,177,993|**Total**<br>**funds**<br>**2023**<br>**£**<br>**16,893,405**<br>**1,037,743**<br>**6,832,500**<br>**3,696,262**<br>**(164,114)**<br>**(570,344)**<br>**(138,750)**<br>**27,586,702**|
|---|---|---|---|



## **ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR** 

|Tangible fixed assets<br>Fixed asset investments<br>Investment property<br>Current assets<br>Creditors due within one year<br>Creditors due in more than one year<br>Provisions for liabilities and charges<br>**TOTAL**|Unrestricted<br>funds<br>2022<br>£<br>16,198,332<br>1<br>6,349,500<br>2,114,692<br>(269,136)<br>(582,609)<br>(153,750)<br>23,657,030|Restricted<br>funds<br>2022<br>£<br>888,396<br>-<br>235,000<br>55,297<br>-<br>-<br>-<br>1,178,693|Endowment<br>funds<br>2022<br>£<br>-<br>1,130,792<br>-<br>142,600<br>-<br>-<br>-<br>1,273,392|Total<br>funds<br>2022<br>£<br>17,086,728<br>1,130,793<br>6,584,500<br>2,312,589<br>(269,136)<br>(582,609)<br>(153,750)<br>26,109,115|
|---|---|---|---|---|



Page 51 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING 24. ACTIVITIES** 

|Net income for the year (as per Statement of Financial Activities)<br>**ADJUSTMENTS FOR:**<br>Depreciation charges<br>Losses on investments<br>Dividends, interests and rents from investments<br>Profit on the sale of fixed assets<br>Increase in stocks<br>Increase in debtors<br>(Decrease)/increase in creditors<br>Donated assets<br>**NET CASH USED IN OPERATING ACTIVITIES**<br>**25.**<br>**ANALYSIS OF CASH AND CASH EQUIVALENTS**<br>Cash in hand<br>**TOTAL CASH AND CASH EQUIVALENTS**<br>**26.**<br>**ANALYSIS OF CHANGES IN NET DEBT**<br>**At 1 April**<br>**2022**<br>**£**<br>Cash at bank and in hand<br>**1,284,875**<br>Debt due within 1 year<br>**(26,474)**<br>Debt due after 1 year<br>**(582,609)**<br>**675,792**|**2023**<br>**£**<br>**1,477,587**<br>**190,501**<br>**(451,053)**<br>**(174,494)**<br>**(275,123)**<br>**-**<br>**(1,123,441)**<br>**(86,950)**<br>**-**<br>**(442,973)**<br>**2023**<br>**£**<br>**1,545,107**<br>**1,545,107**<br>**Cash flows**<br>**£**<br>**260,232**<br>**9,298**<br>**12,265**<br>**281,795**|2022<br>£<br>3,140,218<br>187,772<br>(757,142)<br>(336,417)<br>(32,376)<br>(33,430)<br>(366,866)<br>32,941<br>(2,935,000)<br>(1,100,300)<br>2022<br>£<br>1,284,875<br>1,284,875<br>**At 31 March**<br>**2023**<br>**£**<br>**1,545,107**<br>**(17,176)**<br>**(570,344)**<br>**957,587**|
|---|---|---|



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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **27. PENSION COMMITMENTS** 

The charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £17,976 (2022 - £6,084). Contributions totalling £3,394 (2022 - £1,441) were payable to the fund at the balance sheet date and are included in creditors. 

## **28. OPERATING LEASE COMMITMENTS** 

At 31 March 2023 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows: 

|Not later than 1 year<br>Later than 1 year and not later than 5 years|**2023**<br>**£**<br>**11,643**<br>**3,960**<br>**15,603**|2022<br>£<br>17,516<br>24,439|
|---|---|---|
||||
|||41,955|



The following lease payments have been recognised as an expense in the Statement of Financial Activities: 

||**2023**|2022|
|---|---|---|
||**£**|£|
|Operating lease rentals|**11,643**|17,516|



## **29. RELATED PARTY TRANSACTIONS** 

Rental income of £19,772 (2022: £19,772) was received from one tenant who is also a trustee of the charity. At 31 March 2022 £19,772 was deferrred as it related to 2022-2023. 

No Trustees received any direct remuneration or benefits in the year (2022: £NIL). 

At 31 March 2023 the charity owed its subsidiary Lark Trading Limited £2,799 (2022 - £2,799). 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

**Registered number: 07320026 Charity number: 1142122** 

## **THE COUNTRYSIDE REGENERATION TRUST LTD** 

**(A Company Limited by Guarantee)** 

**TRUSTEES' REPORT AND FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 31 MARCH 2023** 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **CONTENTS** 

||Page|
|---|---|
|**Reference and Administrative Details of the Charity, its Trustees and Advisers**|1 - 2|
|**Trustees' Report**|3 - 15|
|**Independent Auditors' Report on the Financial Statements**|16 - 20|
|**Statement of Financial Activities**|21 - 22|
|**Income and Expenditure Account**|23|
|**Balance Sheet**|24 - 25|
|**Statement of Cash Flows**|26|
|**Notes to the Financial Statements**|27 - 53|





DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2023** 

|**Trustees**|N Watts, MBE, Executive Chairman|
|---|---|
||D Mills, MBE|
||W Cross|
||G Girling|
||T Scott|
||S Everett (appointed 6 September 2022)|
||C Halsey (appointed 17 April 2023, resigned 30 October 2023)|
||D Fisher (appointed 18 September 2023)|
||S Lake (appointed 18 September 2023)|
||J Armstrong (appointed 18 September 2023)|
||S Fell (appointed 18 September 2023)|
||P Hermann (appointed 18 September 2023)|
|**Company registered**<br>**number**<br>07320026<br>**Charity registered**<br>**number**<br>1142122<br>**Registered office**<br>**Chief Executive Officer**<br>Unit 12 Bennell Court<br>West Street<br>Comberton<br>Cambridge<br>CB23 7EN<br>Danielle Dewe<br>**Patrons**<br>Sir J Porritt, CBE – Environmental Patron<br>B Jackman – Dorset Patron<br>Hugh Fearnley-Whittingstall – Patron of Food and Farming<br>C Shuttleworth<br>**Independent auditors**<br>Peters Elworthy & Moore<br>Chartered Accountants<br>Statutory Auditors<br>Salisbury House<br>Station Road<br>Cambridge<br>CB1 2LA<br>**Bankers**<br>Lloyds Bank PLC<br>Gonville Place<br>95-97 Regent Street<br>Cambridge<br>CB2 1BQ<br>Triodos Bank<br>Avon<br>Bristol<br>BS1 5AS||



Page 1 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

**THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

**Solicitors** 

Mills & Reeve Botanic House 98-100 Hills Road, Cambridge CB2 1PH 

**Investment Management** Rathbones 

North Wing City House 126 130 Hills Road Cambridge CB2 1RE 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023** 

The Trustees are pleased to present their annual report together with the audited financial statements for the period 1 April 2022 to 31 March 2023, which are also prepared to meet the requirement for a directors’ report and accounts for Companies Act purposes. 

Since the company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable in the UK and Republic of Ireland (FRS 102). 

## **SECTION ONE: OBJECTIVES AND ACTIVITIES** 

## **Our Mission:** 

Our mission is to champion productive, wildlife-friendly farming to support a living, working countryside and to reverse the decline in biodiversity. 

## **Our Purpose:** 

The Countryside Regeneration Trust is the new name of The Countryside Restoration Trust, which was founded in 1993 in response to growing fears about the impact of  intensive and industrialised farming on the countryside. 

Our purpose is to be a champion of biodiversity, regenerating farming landscapes and woodlands for wildlife whilst promoting sustainable farming practices. 

We own 17 properties across England and our farmers work with conservation staff and volunteers to promote wildlife-friendly farming practices on more than 2,000 acres of working farms, smallholdings, and woodland across the country. 

On some of our properties we restore disused farm buildings, making spaces for small rural businesses. Through education and engagement, we inspire people to understand and appreciate the importance of wildlife to farming, food, the natural environment, and wellbeing. 

Against the backdrop of climate change and the continued growth of industrialised farming, our work has never been more relevant or important. 

## **Our Objectives:** 

The objectives of the charity are: 

To advance the education of the public in the conduct of farming and forestry operations in harmony with the preservation, conservation, restoration, maintenance, and improvement of the aesthetic appearance of the rural landscape, and of agricultural land and woodland. 

To provide and foster the provision, by others, of natural countryside habitats within working farms and commercial woodland in which the widest possible variety of wild animals, birds, aquatic and plant life can flourish. 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

**THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

## **Strategies for Achieving Objectives** 

## **Our Strategic Aims:** 

The strategic aims of the Trust are: 

1. To protect and restore the UK’s countryside with wildlife friendly and sustainable agriculture. 

2. To establish farms which demonstrate how to protect wildlife, produce quality food, and preserve our countryside for future generations, using sensitive farming methods. 

3. To promote the importance of a living and working countryside through education and community engagement. 

## **Our Indicators of Success:** 

We have three key indicators of success: 

1. Maintenance and improvement of nature, evidenced by data on habitats and species associated with our properties. 

2. More people engaging with nature and the countryside through community activity, education, events, and volunteering. 

3. More local and national recognition, stronger working relationships and partnerships with community groups, corporates, and like-minded charities. 

## **Our contribution to the Public Benefit:** 

In shaping our objectives for the year and planning our activities, the Trustees have considered the Charity Commission’s guidance on public benefit including ‘Public Benefit: running a charity (PB2)’. All our charitable activities are undertaken to further our charitable purposes for the public benefit. The main areas of charitable activity are Conservation and Education. 

## **SECTION TWO: OFFICERS' REPORTS** 

Danielle Dewe, Chief Executive Officer 

The Countryside Regeneration Trust was created thirty years ago to show how farming and nature can co-exist; this basic principle remains at the heart of what we do. However, we have taken stock of how the charity is delivering on its objectives and are now two years into a three-year plan to update the charity — refining our objectives, overhauling our governance and establishing a clearer identity. 

In 2021 we began a property audit across our portfolio of 17 farms and as we implement those recommendations this will have an impact on how some of our farms are managed. For two farms, Turnastone Court and Pierrepont, there will be changes in the farm tenancy arrangements and more of a focus on delivering landscape and nature restoration alongside regenerative farming. At Pierrepont Farm the milking Jersey herd will be substantially reduced (from around 160 to 40 cows) while at Turnastone Court there will be a greater focus on regenerative grazing with traditional-breed cattle. While new research shows that regenerative farming can be more profitable than intensive systems that focus on high levels of production, it is important that we ensure that the CRT and its farmers can have a sustainable income from a diversity of sources. 

In 2022 we adopted our new name to signify a regeneration of the charity and a change in how we intended to deliver our mission. During the last 12 months, we have started to create a more streamlined organisation which 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

sets realistic objectives and has a renewed purpose. 

Futureproofing the CRT by investing in property improvements for sustainable, long-term income generation, is something that is already happening at Pierrepont Farm where the Farnham Brewing Company, established by three local families, has set up a microbrewery. This is popular with the local community , providing space for a local business and a social space for local people to enjoy visiting the farm. Other local businesses also operate from the farm, including a company restoring furniture and a jewellery maker. Plans to refurbish a historic grain barn will provide additional workspaces for local people. 

For many years, the charity had a ‘make do and mend’ mentality and it is acknowledged that the organisation has needed to become more strategic in our thinking. 

Priorities for the next few years include: 

• Improving delivery of nature and landscape regeneration on all the properties. A key priority is recruiting a Head of Conservation and Land Management who will identify opportunities to improve our properties for landscape and wildlife, prepare conservation plans and support our tenant farmers on their regenerative farming journeys. Setting standards for collecting, analysing, and presenting data on habitats and species associated with our properties. This year a baseline audit of all the wildlife habitats on our properties was initiated. Along with the publication of strategies for environmental monitoring, conservation, and land management this audit this will provide a sound basis for developing comprehensive management plans for landscape, farming, and nature on our properties. 

• Growing our volunteering programme which supports our Farms, and conservation & wildlife activities across 11 of our properties: Bere Marsh Farm, Lark Rise Farm, Pierrepont Farm, Green Farm, Twyford Farm, Turnastone Court Farm, Mayfields and Margaret Wood. We currently have 384 volunteers signed up, with the Bere Marsh Farm volunteers accounting for just under 50% of the total. 

• First, the benefits need communicating more clearly: health and well-being, an opportunity to give something back to the community and a sense of belonging and companionship. Second, our volunteers need to be put at the heart of the charity, giving them a bigger role, so they feel they are making a difference. 

•Updating the education strategy. Educating and raising awareness of nature-friendly farming is at the core of what the CRT is about. Getting the messages across to adults is as important as it is to children. 

• Being a caring organisation to our employees; we have a duty of care to them and need to follow best practice. The CRT is a lean charity, run by a small staff team and, with a property portfolio spanning from Lincolnshire to Herefordshire, Sussex, and Dorset, we must remain conscious of the pressures that workload brings. 

The CRT celebrated our 30th anniversary in 2023 and the third sector landscape has changed immeasurably over the last three decades. All charities need to demonstrate good governance and clear lines of accountability. The review, and changes we are putting in place mean that the refreshed CRT will be in good shape to achieve those goals. 

I want to acknowledge Robin Page’s role in setting up the charity and being its driving force for so many years. He was a renegade who did not worry about following trends and when he launched the Countryside Restoration Trust (as it then was) he was well ahead of his time. He had a sharp wit and wonderful sense of humour; as a colleague, he could be challenging, but he was down to earth and he inspired many people to donate both time, land, and money to the charity. 

With a renewed sense of purpose and a clear mission, I am confident that we can continue to attract a new generation of supporters to build on his legacy. 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

## **Nicholas Watts, Outgoing Chair of Trustees** 

This is my last annual report as Chair of Trustees as Sue Everett took on the role in June 2023 and I have become the charity’s president. 

I am delighted that Sue is now leading our team of Trustees and I am sure she will be very effective in the role. She is a very experienced ecologist and land management advisor with a passion for restoring or creating wildlife grasslands and she set up one of the UK’s first nature consultancies. She has a long relationship with the charity, dating back to its foundation 30 years ago and more recently, she has been instrumental in developing a vision for Bere Marsh Farm, our flagship property. 

As the charity continues to evolve, it is a good time to bring in a fresh perspective and a new set of ideas. During the last couple of years, we have spent a good deal of time improving our governance, putting more robust procedures in place so that we are fully accountable for our decision making. 

We are creating new committees to reduce the amount or work placed upon the Board of Trustees and this process began at the end of the fiscal year. We were delighted to welcome Caroline Hasley to our Board of Trustees in April 2023. She is a director in a pharmaceutical business with expertise on business procedures and continuous improvement methodology; she is also passionate about the countryside, having grown up on a family farm. 

We are fortunate to have a very knowledgeable group of Trustees, as demonstrated by the fact that David Mills MBE was named by Queen Camilla, formerly the Duchess of Cornwall, as one of her ‘champions of the countryside’ in recognition of his work setting up a new population of red squirrels on the island of Tresco in the Isles of Scilly. 

Now that our governance is improving, we need to focus on meeting the other challenges the charity is facing. One of our immediate priorities is to find new farmers for Turnastone Court Farm and Pierrepont Farm. It is not an easy task; our aim is to protect and run smaller farms, allowing for the right balance between agricultural production and wildlife, but we need to find farmers who are passionate about wildlife conservation and not motivated primarily by profit. They are few and far between. 

Smaller farms are at the heart of the countryside we know and love and for three decades the Countryside Regeneration Trust has tried to ensure their survival by nurturing its portfolio of properties. That must remain the priority. Our smaller properties are little gems, but they are costly to maintain. 

We need to focus our resources on delivering our core purpose: championing biodiversity, regenerating farming landscapes and promoting sustainable farming practices. Our properties are far-flung, which adds to our expenses and makes it difficult for the Trustees and staff to spend as much time as we would like to visit them. That is why our volunteers are so important; we rely on them to bridge the gap and we are fortunate that our volunteer base has continued to grow and has been galvanised by the appointment of a Volunteer Manager. 

The charity has inspired the imagination of our supporters ever since our founder Robin Page appealed to Daily Telegraph readers in 1993 to save a 20-acre field by a brook near his home. 

Telegraph Field was duly acquired, and, from those humble beginnings, the charity became a pioneer of sustainable farming. Robin, who died in May 2023, was always something of a maverick, but many of his ideas have become accepted thinking and are now reflected in the Government’s approach to agricultural policy. 

However, the plight of our wildlife has never been more precarious, and the threat posed by climate change has never been greater. This has been a year of transition for The Countryside Regeneration Trust’s governance, but our role will not change: to be the conscience of the countryside. 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

## **SECTION THREE: ACHIEVEMENTS AND PERFORMANCE Featured Properties:** 

## **Lark Rise Farm, Barton, Cambridge** 

**Size:** 400 acres 

**Type:** Small fields, bordered by hedges and grass margins, with a wide range of crops grown, including spring oats, winter wheat, winter barley, spring wheat, canary seed, and rye. 

**Farmer:** Tim Scott Highlights: 

Lark Rise Farm is an oasis for many of the UK’s most endangered farmland bird species, such as grey partridge, lapwing, golden plover, yellowhammer, and skylark. Farmer Tim Scott normally spots around 140 grey partridges a year, although last year’s drought caused a 40% drop in numbers. 

Skylarks are the most common bird on the farm, with just over 50 territories on average each year. Four pairs of corn bunting, a red listed species, nested on the farm in 2022 and more than 100 spent the winter feeding on seeds from the weeds in the stubble-covered fields. Lapwings, which have declined by 80%, are nesting again at the farm. 

Regenerative farming has encouraged mammals, such as brown hares, numerous bat species, and a huge variety of insects, such as beetles and butterflies. A Camberwell Beauty butterfly was spotted by volunteer wildlife monitor, Val Perrin – the rarest butterfly ever recorded on a CRT farm. 

The CRT has also played an important role in the Waterlife Recovery East (WRE) project to remove North American mink from East Anglia, trapping mink on Lark Rise Farm. In 2022, there was a significant drop in breeding across large parts of the region for the first time and water voles are returning to their original habitats. 

However, the integrity of the farm, which was the first property acquired by the CRT in 1993, is threatened by the proposed East West Rail link, which would slice part of the farm in two. Tim Scott has launched a petition, calling on East West Rail to adopt an alternative route rather than threatening a valuable habitat he has spent 30 years nurturing. 

## **Bere Marsh Farm, Blandford, Dorset** 

**Size:** 92 acres 

**Type:** A grassland farm, comprising pastures, woodland, scrub and part of the River Stour. Acquired in 2020. Highlights: 

Plans for redeveloping some of the farm’s barns, converting them to an education and community centre were finalised. Ecologist Sue Everett, providing her time as a ‘professional’ volunteer, put together a plan for habitat restoration on the farm. This will entail restoring floodplain meadows to flower-rich grassland, creation of rough grassland and scrub, and rewetting some fields. This plan has been informed by advice commissioned from a hydrologist and is supported by a range of organisations who form the local catchment partnership. A bird hide and four nesting towers aiming to attract white storks are also included in the plan. 

Together, the plans for nature restoration and improving spaces at the farm for use by the local community, aim to make Bere Marsh Farm one of the CRT’s most significant farms showcasing delivery of its charity objectives. 

During 2022, 86 different bird species were spotted on the farm, including 10 recorded for the first time. More than 500 birds, comprised of 25 different species, were ringed and the number recorded for almost every species increased. The average number of butterflies recorded during each survey increased to 32, with 22 different species recorded. The majority of wildlife monitoring has been carried out by volunteers. 

Volunteers also helped to take cuttings from the farm’s native black poplar tree – one of only 600 female black poplars in the UK – with the aim of planting two new trees on the farm and others elsewhere in the Stour Valley to boost the number of native poplars in the area. Volunteers also planted a new osier bed, which will, when mature, produce willow wands for craft work and local businesses. 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

A series of films is being made by renowned Dorset wildlife filmmaker, Graham Hatherley, to record the progress being made at Bere Marsh Farm, including the arrival of three Oxford Sandy and Black pigs. 

## **Pierrepont Farm, Farnham, Surrey** 

**Size:** 200 acres **Type:** Jersey dairy farm with woodland, gifted in 2006. **Tenant:** Tenant farmer Mike Clear (outgoing) Highlights: 

The CRT agreed with farmer Mike Clear that his tenancy would end in 2024 to allow the charity to develop a new plan for the farm in keeping with its vision of improving biodiversity and promoting regenerative farming. The focus of the farm’s future development will be on practising exemplary agroecology, nature- and landscaperecovery alongside sustainable food production. The popular Mosaic education program continued to run, teaching schoolchildren about food provenance in an entertaining way. The unique educational programme connects young people with the natural world and educates them about how and why we must protect it. 

In 2023, the CRT welcomed the Farnham Brewing Co to Pierrepont’s Old Dairy where they have opened a new micro-brewery. The business is run by three local fathers who met when their children were at infant school in Farnham, and they are committed to investing in the local community. They took over the site from Craft Brews, whose tenancy was terminated in November 2022. 

Since acquiring the property, the charity has invested more than £2m into the development and improvement of the farm, including its commercial units and the CRT is delighted to work with local businesses which share our vision for the site. Several events took place during the year, including the three-day Crafts in the Courtyard, showcasing the artisan businesses which operate from the farm. 

## **Brays Farm, Surrey** 

**Size:** 52 acres **Type:** Pasture and livestock **Tenant farmers:** Matthew Elphick and Betsie Edge Highlights: 

Shortlisted for a British Farming Award in 2022, Matthew Elphick and his partner Bestie Edge have shown how good soil and grazing management can achieve striking results. Their herd of 25 dairy shorthorn cattle is moved daily to avoid over-grazing and they do not return to the same paddock for around 30 days, naturally stimulating plant growth. The couple’s mantra is “healthy soil equals healthy plants, healthy animals and therefore healthy food”. 

The couple pasteurise the milk on site and make milk, cream, yoghurt, and frozen yoghurt. Their Nutfield Dairy brand delivers milk, cheese and other locally made produce to hundreds of households within a three-mile radius of the farm. They also supply local village shops, farm shops, a butcher and a coffee shop. 

## **Green Farm, Surrey** 

**Size:** 200 acres **Type:** Woodland, heathland, orchard, and pasture. 

**Tenant farmers:** Paul and Gill Ibbott began grazing 20 acres in 2018 and own or rent another 80 acres in the surrounding area. They keep local sheep breeds and meat from their cattle and lambs is sold to a local butcher. Highlights: 

The CRT has commissioned experts Oakbank to create a woodland management plan for the next 10 years, which will balance bringing in an income from timber to finance the maintenance and improvement of the farm, together with our conservation aims of protecting wildlife. 

The two main parcels of heathland on Green Farm are the site of a new partnership project between the CRT and the Amphibian and Reptile Conservation Trust (ARC). Volunteers from both charities are monitoring reptiles to understand how best to manage the farm’s habitats. The data they collect will be submitted to the National Reptile Survey Programme. 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

## **Other Farms:** 

## **Twyford Farm, Haywards Heath, Sussex** 

**Size:** 220 acres 

**Type:** Pasture, farm and woodland. Gifted in 2013. 

**Tenant farmers:** Bob Felton and Liz Wallis have managed the farm since 2014 and have small flocks of poll Dorset, Charolais and rare-breed Llanwenog sheep and 200 Welsh mule cross sheep. They also have a small herd of 70 native crossbred cattle. They produce lamb, beef, and pork products. 

## **Mayfields Farm, Foulsham, Norfolk** 

**Size:** 40 acres Type: Pasture and small orchard. Gifted in 2004. 

**Farmer:** Izzi Rainey has grazed a small herd of native breed cattle since June 2022, having taken over her family’s 45 acres of pasture just two miles away on Bates Moor Family eight years previously. She introduced Lincoln red cattle in 2017 and in 2019 launched Bates Moor Farm Beef, selling beef boxes locally and through UK-wide postal delivery. 

## **Stoke Wake Farmland, Dorset** 

**Size:** 142 acres Type: Mostly temporary grassland, with a small area of permanent pasture, a stream and two ponds Gifted in 2021. 

**Tenant farmers:** John, Caroline and Will Hiscock rent 67 acres which are sown to a clover ley, providing feed for one of three organic dairies at their home farm. The rest of the land is grazed by Aberdeen Angus cattle owned by the Dean family, who supply a Waitrose contract. 

## **Turnastone Court Farm, Vowchurch, Herefordshire** 

**Size:** 247 acres 

**Type:** Pasture, orchard, woodland, and a hay meadow. Purchased in 2003 when land in the area was being converted to potato farming, following a fundraising campaign. Highlights In 2022 the conversion of a barn to a luxury holiday rental property was completed as a means of providing a long-term income stream.. 

45 breeding birds were recorded including several Birds of Conservation Concern including Common Redstart (Amber-listed). The farm is particularly important for the thousands of anthills present in the grassland. Tenants: Gareth and Madeline Boaz (outgoing). 

## **Awnells Farm, Ledbury, Herefordshire** 

**Size:** 200 acres Type: Orchards and grassland farm 

**Tenant:** Tenant farmer David Powell gifted the farm in 2000 and it has a closed herd of traditional Hereford cattle. 

## **Other Properties:** 

## **Margaret Wood, Upper Denby, Yorkshire** 

40 acres, donated in 2012. A long-term woodland management plan is proposed including tree thinning and halo in some areas while thick vegetation will be left in other parts to create diverse habitats. 

## **Yarwell, Peterborough** 

35 acres of grazing, left to the CRT in 2015. Tenant farmer David Longfoot grazes sheep and cattle and a Countryside Stewardship agreement is being considered for the property. Cricket bat willows are grown on the lower part of the property. 

## **Harold’s Grove, Essex** 

A historic site, once owned by King Harold, with 8 acres of ancient woodland, gifted in 2004. 

## **Bicker, Boston, Lincolnshire** 

12 acres of pasture. Left to CRT in 2004 by the previous owner, who specified that small area of the farm must be kept as wildlife habitats. 9.5 acres of the land is cattle-grazed – in an area of the fens where most land is intensively-farmed for arable crops whilst the remainder is wildlife habitat and maintained village fringe. 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

## **Buxted, Sussex** 

Two parcels of land were gifted in 2000 to protect them from developers. 

## **Cleavers, West Sussex** 

Pasture and woodland. 

## **SECTION FOUR: FINANCIAL PERFORMANCE** 

## **Key Financial Performance Indicators** 

This year’s key financial performance results are described below. A key focus for the CRT going forward remains to diversify our income streams to reduce our overall dependency on legacy income. 

We continue to develop success measures including a conservation and agricultural performance framework for all aspects of CRT’s strategy and these have been included above for the first time. 

## **Investment Policy and Performance** 

All investments must be managed in such a way as to provide sufficient income to enable the charity to carry out its purposes effectively both in the short term and over the longer term. Where possible the value of the assets should be enhanced to at least keep pace with inflation over the longer term so that an increase in income should be available to cover the effects of inflation in future. 

The Trustees are committed to cautious investment that avoids undue risk to the charity’s funds. Stable annual returns are to be met by a prudent investment strategy based on a diversified range of investment assets, which are quoted on a recognised investment exchange and unit trusts and open-ended investment companies (OEIC’s) which are authorised under the Financial Services and Markets Act 2000. The Trustees rely upon specialist advisors for asset selection and allocation. Investment performance is compared to an independent benchmark. No ethical restrictions apply to the portfolio, although the trustees reserve the right to exclude from the portfolio any investments in companies whose representation might prove damaging to the purposes of the charity. 

The investment properties were acquired through legacy and gift, and after consideration of the resources required for the charity to carry out its current and future activities, the Trustees decided to hold these properties as an investment to earn property rentals and for capital appreciation.  The Trustees consider the property to be shown at a fair value in the accounts based on current prices for similar properties in the same location and condition, and in accordance with the professional valuations since 2020. 

## **Factors relevant to achieve objectives** 

The expertise of our staff is important to the work of the charity. The Chairman and management seek to create a strong team ethos within the workforce, and as such are committed to supporting the development of the staff, volunteers and monitors at all sites. 

The Trustee body has recognised that it is important to have the relevant skills and representation on the trustee board. Having sought professional advice, a finance committee has been established to support and advise the Trustee board in future. The committee which meets monthly works closely with the auditors focussing on the charity’s finances, internal controls, and risk management. 

Those who serve on the Trustee board have duties, responsibilities, and liabilities both under Company Law as Directors and under Charity Law as Trustees. These key duties are always recognised in the recruitment, selection process, appointment, and induction of all Trustees. 

## **Financial Review** 

## **Financial Risk Management Objectives and Policies** 

Given that the charity continues to undertake a substantial programme of planned improvements on our farms and properties, it has a robust approach to project and budget management. Senior management ensure project 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

**THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

budgets are monitored and managed to contain costs with limited variance and to ensure projects deliver against the expected objectives. 

## **Reserves Policy** 

The Trustees review the Countryside Regeneration Trust’s reserves policy each year to ensure a balance between spending on the projects currently in progress and setting aside reserves to protect our work in the future. The trustees aim to maintain free reserves in unrestricted funds equivalent to at least six months unrestricted expenditure, which is budgeted at around £658,000 for the financial year to 31 March 2024. 

The Funds and Reserves held by the Trust are as follows (see also note 22 to the accounts): 

## **Unrestricted funds** 

The Property Assets Fund of £22,242,097 (2022 - £22,516,697) is the value of the unrestricted funds represented by the freehold and leasehold land and buildings, including assets under construction, and investment property owned by the Charity, less associated borrowings. 

The Trustees established the Redundant Farm Buildings & Acquisitions reserve to ensure there are sufficient funds available to complete the development projects at Pierrepont and Beremarsh Farms as well as taking advantage of opportunities that may arise to further the objectives of the Charity. Further funds are allocated as they are available and this year the trustees continue to ring-fence £974,725. 

This leaves a balance in the general fund of £1,348,061 (2022 - £165,608) which is sufficient to cover the Trust’s unrestricted projected expenditure for a period of 6 months, in line with the Reserves policy. The Trustees will continue to seek additional income and as part of their property audit have identified surplus properties to be sold and further boost free reserves in 2024. These funds are expected to be re-designated into Redundant Farm Buildings & Acquisitions as part of the property review. 

Reserves are held for the following purposes: 

- To protect the continuity of the charity’s work in the event of any future shortfall in income. 

- To protect the charity’s funds from loss in value e.g., market investments. 

- To provide the capital needed to finance expansion of the charity. 

- To provide the funds needed to replace assets. 

## **Financial Review of the Year** 

## **Income** 

The Trust has been fortunate in receiving legacy and donation income of £2,158,592 (2022 - £3,596,300). This includes legacy gifts of £2,067,316 of which £900,000 is restricted. All gifts are important to the of the CRT, and we are grateful to those and their families that remember the charity in their Wills. 

We are delighted to report that the charity remains in good health and is attracting new support. Nearly 250 new Friends joined over the last year, which means we currently have more than 2,000 active Friends – a 9 per cent increase on last year. More than one in four of our supporters are Life Friends, which gives us some certainty over our subscription revenue and helps us with future planning. 

Periodic assessment of our existing activities and competitor benchmarking has facilitated a new membership strategy for the next financial year whilst further investment into ThanQ, has enabled more effective management of our Friends relationships. 

The restricted donations for this financial year total £2,600 (2022 - £3,375). 

Income from charitable activities £280,959 (2022 – £208,883) is largely farm rents and income from Agri environmental schemes managed by the trust. 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

The performance of the investments was satisfactory and in line with general market volatility. Income from rents continues to improve following recent acquisitions. Total income from investments was £174,494 (2022: £336,417) 

## **Expenditure** 

The Trust spent £970,870 (2022 - £1,308,273) this year on our conservation, education, and monitoring activities, as well as managing and advising our portfolio of farms and land. 

Our costs of generating voluntary income were £679,105 (2022 - £494,282) and these include costs of appeals, advertising/public relations, printing and posting The Lark Friends magazine, staff costs, premises costs, depreciation, and professional fees. 

## **Future Plans** 

Following the departure of Executive Chairman, Robin Page in May 2021, the Trustees undertook a strategic review of the Trust’s aims and objectives to realign with current conservation and wildlife issues. It had been recognised that a review to our current business model was long overdue given the need to articulate the Trust’s mission statement more clearly and the social and economic environment derived from the impact of Covid – 19. 

Priority has therefore been given to: 

a) introducing a new senior management team which includes two new roles, a Head of Conservation and Land Management and Volunteer Manager. 

b) revising all operational budgets with a view to reducing operational costs by 20% in the next financial year, c) re-evaluating our brand and common purpose, and subsequently drafting the Fundraising and Marketing Plan d) implementing our first property audit to improve operational efficiency 

The majority of this work is underway with the CEO and Trustees meeting monthly to formally discuss and approve the progress for each of these areas. 

Our underlying objective is to futureproof the Trust through effective deployment of our resources, and repositioning as a credible authority on wildlife biodiversity and environmental issues. 

## **Structure, Governance and Management** 

## **Constitution** 

The Trust was originally set up as an unincorporated trust constituted under a trust deed dated 10 July 1991, as amended by deeds dated 1 September 1993 and 30 June 1994. However, in 2010, the trustees made the decision to incorporate the Trust because of its increasing size and complexity, and on 31 October 2011, all the assets and liabilities of the Trust were transferred to a new charitable company limited by guarantee. Under a Uniting order dated 16 February 2012, the old charity is now treated as forming part of the charitable company. The company was incorporated on 20 July 2010 and is registered as a charity with the Charity Commission. The company was set up under a Memorandum of Association and is governed by its Articles of Association which sets out the charity’s objects and powers. In the event of the company being wound up, the liability of each member is limited to £10. 

## **Method of Appointment or election of Trustees** 

The directors of the company are also charity Trustees for the purposes of charity law. Under the requirements of the company’s Articles of Association, the Trustees are appointed by ordinary resolution at a general meeting. The Trustees may also appoint a person who is willing to act, as a Trustee. At each annual general meeting one third of the Trustees must retire from office. The Trustees to retire by rotation are those who have been longest in office since their appointment. A Trustee appointed by a resolution of the other Trustees must retire at the next 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

annual general meeting. When appointing new Trustees, the board keeps the skill requirements for the Trustee body under review. 

## **Policies adopted for the induction and training of Trustees** 

New Trustees tour Lark Rise Farm managed by CRT tenant, Tim Scott to understand the practical work of the CRT. During this visit they meet key employees, monitors, volunteers, and the other trustees, and receive a briefing pack, detailing their legal obligations under charity and company law, Charity Commission guidance on public benefit, content of the Memorandum and Articles of Association, and the financial performance of the charity.  Once on board their skills are regularly reviewed to maintain a comprehensive skillset.  Attendance therefore at relevant external training events is mandatory where these will facilitate the undertaking of their role. 

## **Pay policy for staff and senior management** 

The directors consider that the board of directors, who are the CRT’s Trustees, and the senior management team comprise the key management personnel charged with the direction and running of the CRT on a day-today basis. All directors give their time freely and no director received remuneration in the year. Details of directors’ expenses and related party transactions are disclosed in notes 13 and 30 to the accounts. 

The pay of the staff and senior management is reviewed annually and increased in accordance with average earnings; we seek to be a living wage employer. In view of the nature of the charity, the directors benchmark senior management pay levels against other conservation charities of a similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for a similar role. 

## **Organisational Structure and Decision Making** 

The Board of Trustees meets four times a year, more often if required, and is responsible for the strategic direction and policy of the charity. The management team of two full time and seven part time staff are responsible for the day-to-day administration of the charity. The charity has a trading subsidiary, Lark Trading Limited, which was dormant throughout the year. 

## **Risk Management** 

The Trustees have assessed the major risks to which the company is exposed, those related to the operations and finances of the company and are satisfied those systems and procedures are in place to mitigate our exposure to the major risks. The Trustees actively participate in the assessment of risk, which is considered, in terms of identifying any significant changes in risk, at all Trustee Boards. The risk management process addresses risk at three levels: 

- the process aims to identify and classify all sources and types of risk. 

- triggering the necessary action to manage the risks, focusing on “major” risks; and 

- confirming that the remaining risk is consistent with the trustees’ view of acceptable risk. 

The Trustees document the risk assessment and action taken to mitigate risk in the Risk Register which provides a comprehensive risk profile of all the identified risks. Major risks that have been identified by the annual review of the principal risks and uncertainties of the charity and its subsidiary. This work has identified that the financial sustainability of the charity is based on a balance of income streams and being not wholly reliant on legacies is the major financial risk for the charity. A key element in the management of financial risk is a regular review of available liquid funds to settle debts as they fall due, regular liaison with the bank, and active management of trade debtors and creditors balances to ensure sufficient working capital by the Trust. 

Attention has also been focussed on non-financial risks arising from health and safety of farm visits, management of education visits and events. The charity remains extremely vigilant about the requirements of Health and Safety legislation, particularly with the risks associated with E coli. Foot and Mouth and latterly 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

**THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

COVID-19. Whilst it is not currently possible to foresee and evaluate all the potential long-term implications to the Trust’s operations, we have maintained delivery of our charitable objectives with our sites open and habitats managed in line with our property management plans. 

The Health and Safety of our staff, supporters and volunteers is paramount and guidance has regularly been sought from Environmental Health Officers to support our operational activities including risk assessments, site signage, temperature testing, workflow practices and the maintenance of hand washing facilities whilst continuing to review procedures on a regular basis. 

## **Information on fundraising practices** 

The Countryside Regeneration Trust follows the guidance laid down by the Fundraising Regulator. The trustees are committed to adhering to these regulations, following the Institute of Fundraising’s Code of Practice, and complying with the key principles embodied in this Code. We work hard to ensure that all fundraising activities are legal, open, honest, and respectful. 

An external fundraiser is employed and tasked with applying for Trusts and Foundations. A random sample of applications are reviewed by a trustee possessing professional experience in this field. Trustees also approve any application above £50,000. Aside from the submission of applications for restricted grant funds and financial support from charitable trusts, the organisation’s main fundraising activities have focused on generating support from individuals, primarily through the Friends scheme administered by ThanQ, a CRM database. Membership recruitment has been carried out through referrals, direct marketing, the Friends magazine, ‘The Lark’ and via the charity’s new website. 

A log is used to record and review any complaints received, including those regarding fundraising activities. The complaints return submitted to the Fundraising Regulator this year reported no complaints relating to fundraising. The Trustees are committed to honest and transparent communication with donors and supporters about how their contributions are spent. The communication preferences of our donors are recorded according to General Data Protection Regulation (GDPR) legislation, and we take care not to approach vulnerable people or to apply undue pressure upon anyone to support the charity. 

## **Employment Involvement and Employment of the Disabled** 

Weekly staff meetings encourage active dialogue between employees and management on a range of issues. Improved dialogue has been actively encouraged this year with greater focus and investment on internal communications generally. The hybrid working instigated by COVID-19 has meant this is a necessity to maintain staff engagement and morale. The company carries out exit interviews for all staff leaving the organisation and has adopted a procedure of upward feedback for senior management and the Trustees. 

The company has detailed policies in relation to all aspects of personnel matters including: 

- Equal opportunities policy 

- Volunteers' policy 

- Health & Safety policy 

- Health and Wellbeing policy 

- Safeguarding policy 

- Menopause Policy 

In accordance with the company's Equal opportunities policy, the company has long established fair employment practices in the recruitment, selection, retention, and training of disabled staff. 

Full details of our policies are available from the Bennell Court office. 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

## **Trustees' Responsibilities Statement** 

The Trustees (who are also directors of The Countryside Regeneration Trust for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the situation of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. 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 judgments and accounting estimates that are reasonable and prudent. 

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

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

## **Disclosure of Information to Auditors** 

- Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that: • so far as that Trustee is aware, there is no relevant audit information of which the charitable company's auditors are unaware, and 

- that Trustee has taken all the steps that ought to have been taken as a Trustee to be aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information. 

Approved by order of the members of the board of Trustees and signed on their behalf by: 


................................................ **N Watts** Executive Chairman 

18 December 2023 Date: 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE COUNTRYSIDE REGENERATION TRUST LTD** 

## **OPINION** 

We have audited the financial statements of The Countryside Regeneration Trust Ltd (the 'charity') for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Income and Expenditure Account, the Balance Sheet, the Statement of Cash Flows and the related notes, 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 charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended; 

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

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **BASIS FOR OPINION** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

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

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE COUNTRYSIDE REGENERATION TRUST LTD (CONTINUED)** 

## **OTHER INFORMATION** 

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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. 

## **OPINION 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 for the financial year for which the financial statements are prepared is consistent with the financial statements. 

- 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 our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report. 

We have nothing to report in respect of the following matters in relation to which 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' Report and from the requirement to prepare a Strategic Report. 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE COUNTRYSIDE REGENERATION TRUST LTD (CONTINUED)** 

## **RESPONSIBILITIES OF TRUSTEES** 

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

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

## **AUDITORS' 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 Auditors' 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 charity through discussions with trustees and other management, and from our commercial knowledge and experience of the sector 

- we obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework; 

- we identified which laws and regulations were significant in the context of the entity; and 

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

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

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and 

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

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE COUNTRYSIDE REGENERATION TRUST LTD (CONTINUED)** 

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

- tested journal entries to identify unusual transactions; 

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

- we assessed the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur; and 

- we tested significant transactions, in particular the evaluation of the business rationale for any which appeared unusual or outside the company’s normal course of business. 

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; and 

- we discussed with management, those charged with governance and the entity’s solicitors actual and potential litigation and claims. 

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 directors and other management and the inspection of regulatory and legal correspondence, if any. 

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report. 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

# **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE COUNTRYSIDE REGENERATION TRUST LTD (CONTINUED)** 

## **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 its members, as a body, for our audit work, for this report, or for the opinions we have formed. 


**Michael Hewett (Senior Statutory Auditor)** for and on behalf of **Peters Elworthy & Moore** Chartered Accountants Statutory Auditors Salisbury House Station Road Cambridge CB1 2LA 

Date: 18 December 2023 

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DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD** 

## **(A Company Limited by Guarantee)** 

## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023** 

|**Note**<br>**INCOME AND**<br>**ENDOWMENTS**<br>**FROM:**<br>Donations and legacies<br>2<br>Charitable activities<br>3<br>Other trading activities<br>4<br>Investments<br>5<br>Other income<br>6<br>**TOTAL INCOME AND**<br>**ENDOWMENTS**<br>**EXPENDITURE ON:**<br>Raising funds<br>7,8<br>Charitable activities<br>9<br>**TOTAL**<br>**EXPENDITURE**<br>**NET**<br>**INCOME/(EXPENDIT**<br>**URE) BEFORE NET**<br>**GAINS/(LOSSES)**<br>**ON INVESTMENTS**<br>Net gains/(losses) on<br>investments<br>**NET**<br>**INCOME/(EXPENDIT**<br>**URE)**<br>Transfers between<br>funds<br>22<br>**NET MOVEMENT IN**<br>**FUNDS**|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>**1,255,992**<br>**280,959**<br>**33,683**<br>**134,194**<br>**28,781**<br>**1,733,609**<br>**668,736**<br>**935,395**<br>**1,604,131**<br>**129,478**<br>**536,083**<br>**665,561**<br>**242,291**<br>**907,852**|**Restricted**<br>**funds**<br>**2023**<br>**£**<br>**902,600**<br>**-**<br>**-**<br>**40,300**<br>**-**<br>**942,900**<br>**-**<br>**35,475**<br>**35,475**<br>**907,425**<br>**-**<br>**907,425**<br>**(242,291)**<br>**665,134**|**Endowment**<br>**funds**<br>**2023**<br>**£**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**10,369**<br>**-**<br>**10,369**<br>**(10,369)**<br>**(85,030)**<br>**(95,399)**<br>**-**<br>**(95,399)**|**Total**<br>**funds**<br>**2023**<br>**£**<br>**2,158,592**<br>**280,959**<br>**33,683**<br>**174,494**<br>**28,781**<br>**2,676,509**<br>**679,105**<br>**970,870**<br>**1,649,975**<br>**1,026,534**<br>**451,053**<br>**1,477,587**<br>**-**<br>**1,477,587**|Total<br>funds<br>2022<br>£<br>3,596,300<br>208,883<br>35,862<br>336,417<br>8,169|
|---|---|---|---|---|---|
||||||4,185,631|
||||||494,282<br>1,308,273|
||||||1,802,555|
||||||2,383,076<br>757,142|
||||||3,140,218<br>-|
||||||3,140,218|



Page 21 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD** 

## **(A Company Limited by Guarantee)** 

## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023** 

|**Note**<br>**RECONCILIATION OF**<br>**FUNDS:**<br>Total funds brought<br>forward<br>Net movement in funds<br>**TOTAL FUNDS**<br>**CARRIED**<br>**FORWARD**|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>**23,657,030**<br>**907,852**<br>**24,564,882**|**Restricted**<br>**funds**<br>**2023**<br>**£**<br>**1,178,693**<br>**665,134**<br>**1,843,827**|**Endowment**<br>**funds**<br>**2023**<br>**£**<br>**1,273,392**<br>**(95,399)**<br>**1,177,993**|**Total**<br>**funds**<br>**2023**<br>**£**<br>**26,109,115**<br>**1,477,587**<br>**27,586,702**|Total<br>funds<br>2022<br>£<br>22,968,897<br>3,140,218|
|---|---|---|---|---|---|
||||||26,109,115|



The Statement of Financial Activities includes all gains and lossed recognised in the year. The notes on pages 27 to 53 form part of these financial statements. 

Page 22 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023** 

|Income<br>Gains on investments<br>**GROSS INCOME IN THE REPORTING**<br>**PERIOD**<br>Less: Total expenditure<br>**NET INCOME FOR THE REPORTING**<br>**PERIOD**|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>**1,733,609**<br>**536,083**<br>**2,269,692**<br>**(1,604,131)**<br>**665,561**|**Restricted**<br>**funds**<br>**2023**<br>**£**<br>**942,900**<br>**-**<br>**942,900**<br>**(35,475)**<br>**907,425**|**Total funds**<br>**2023**<br>**£**<br>**2,676,509**<br>**536,083**<br>**3,212,592**<br>**(1,639,606)**<br>**1,572,986**|Total funds<br>2022<br>£<br>4,185,631<br>701,500<br>4,887,131<br>(1,791,446)<br>3,095,685|
|---|---|---|---|---|



The notes on pages 27 to 53 form part of these financial statements. 

Page 23 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee) REGISTERED NUMBER: 07320026** 

## **BALANCE SHEET AS AT 31 MARCH 2023** 

|**Note**<br>**FIXED ASSETS**<br>Tangible assets<br>14<br>Investment property<br>15<br>Investments<br>16<br>**CURRENT ASSETS**<br>Stocks<br>17<br>Debtors<br>18<br>Cash at bank and in hand<br>Creditors: amounts falling due within one<br>year<br>19<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**<br>Creditors: amounts falling due after more<br>than one year<br>20<br>Provisions for liabilities<br>21<br>**NET ASSETS**<br>**CHARITY FUNDS**<br>Endowment funds<br>22<br>Restricted funds<br>22<br>Unrestricted funds<br>22<br>**TOTAL FUNDS**|**74,100**<br>**2,077,055**<br>**1,545,107**<br>**3,696,262**<br>**(164,114)**|**2023**<br>**£**<br>**16,893,405**<br>**6,832,500**<br>**1,037,743**<br>**24,763,648**<br>**3,532,148**<br>**28,295,796**<br>**(570,344)**<br>**(138,750)**<br>**27,586,702**<br>**1,177,993**<br>**1,843,827**<br>**24,564,882**<br>**27,586,702**|74,100<br>953,614<br>1,284,875<br>2,312,589<br>(269,136)|2022<br>£<br>17,086,728<br>6,584,500<br>1,130,793<br>24,802,021<br>2,043,453<br>26,845,474<br>(582,609)<br>(153,750)<br>26,109,115<br>1,273,392<br>1,178,693<br>23,657,030<br>26,109,115|
|---|---|---|---|---|



Page 24 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

# **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee) REGISTERED NUMBER: 07320026** 

# **BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2023** 

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. 

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. 

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by: 


................................................ 

**N Watts** Executive Chairman Trustee 

Date: 18 December 2023 

The notes on pages 27 to 53 form part of these financial statements. 

Page 25 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023** 

|**CASH FLOWS FROM OPERATING ACTIVITIES**<br>Net cash used in operating activities<br>**CASH FLOWS FROM INVESTING ACTIVITIES**<br>Dividends, interests and rents from investments<br>Proceeds from the sale of property, plant and equipment<br>Proceeds from the sale of investment properties<br>Purchase of tangible fixed assets<br>Net addition to investments<br>**NET CASH PROVIDED BY INVESTING ACTIVITIES**<br>**CASH FLOWS FROM FINANCING ACTIVITIES**<br>Repayments of borrowing<br>**NET CASH USED IN FINANCING ACTIVITIES**<br>**CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR**<br>Cash and cash equivalents at the beginning of the year<br>**CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR**<br>The notes on pages 27 to 53 form part of these financial statements|**2023**<br>**£**<br>**(442,973)**<br>**174,494**<br>**282,994**<br>**288,083**<br>**(5,048)**<br>**8,019**<br>**748,542**<br>**(45,337)**<br>**(45,337)**<br>**260,232**<br>**1,284,875**<br>**1,545,107**|2022<br>£<br>(1,009,657)<br>245,774<br>476,650<br>-<br>(5,391)<br>5,532<br>**722,565**<br>(40,443)<br>**(40,443)**<br>**(327,535)**<br>1,612,410<br>1,284,875|
|---|---|---|



Page 26 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

# **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **1. ACCOUNTING POLICIES** 

## **1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS** 

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. 

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

The results of the dormant subsidary, Lark Trading Limited are not consolidated in these financial statements. 

## **1.2 GOING CONCERN** 

The Trustees have prepared budgets to 31 December 2024. The Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements continue to be prepared on the going concern basis. 

## **1.3 COMPANY STATUS** 

The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company. 

## **1.4 FUND ACCOUNTING** 

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

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. 

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

Investment income, gains and losses are allocated to the appropriate fund. 

Page 27 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

# **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **1. ACCOUNTING POLICIES (CONTINUED)** 

## **1.5 INCOME** 

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

For legacies, entitlement is taken as the earlier of the date on which either: the company is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate.  Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the company has been notified of the executor's intention to make a distribution.  Where legacies have been notified to the company, or the company is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. 

Grants, including government grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. 

Donated services or facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised and refer to the Trustees' report for more information about their contribution. 

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. 

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. 

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. 

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. 

## **1.6 EXPENDITURE** 

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. 

Page 28 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

**THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **1. ACCOUNTING POLICIES (CONTINUED)** 

## **1.6 EXPENDITURE (CONTINUED)** 

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. 

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds. 

Charitable activities are costs incurred on the company's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities. 

All expenditure is inclusive of irrecoverable VAT. 

## **1.7 TANGIBLE FIXED ASSETS AND DEPRECIATION** 

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. 

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. 

The estimated useful lives are as follows: 

|Freehold property|- 20 years or 50 years|
|---|---|
|Head office|- Term of the lease|
|Motor vehicles|- 4 years|
|Office and farm equipment|- 4 years|



## **1.8 INVESTMENTS** 

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities. 

Investments in subsidiaries are valued at cost less provision for impairment. 

## **1.9 STOCKS** 

Herds and goods for sale are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving stocks. 

## **1.10 DEBTORS** 

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 

Page 29 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

**THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **1. ACCOUNTING POLICIES (CONTINUED)** 

## **1.11 CASH AT BANK AND IN HAND** 

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 

## **1.12 LIABILITIES AND PROVISIONS** 

Liabilities and provisions are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. 

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. 

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost. 

## **1.13 FINANCIAL INSTRUMENTS** 

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 

## **1.14 PENSIONS** 

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year. 

Page 30 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

**THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **1. ACCOUNTING POLICIES (CONTINUED)** 

## **JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION 1.15 UNCERTAINTY** 

The preparation of the accounts requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses. These judgements, estimates and associated assumptions are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results. 

Management consider the areas set out below to be those where critical accounting judgements have been applied and the resulting estimates and assumptions may lead to adjustments to the future carrying amounts of assets and liabilities. 

Income recognition – Judgement is applied in determining the value and timing of certain income items to be recognised in the accounts. This includes determining the appropriate recognition timing for donations and legacies. In general, the later are recognised when at the probate stage. 

Useful lives of property, plant and equipment – Property, plant and equipment represent a significant proportion of the Charity's total assets. Therefore the estimated useful lives can have a significant impact on the depreciation charged and the Charity's reported performance. Useful lives are determined at the time the asset is acquired and reviewed regularly for appropriateness. The lives are based on historical experiences with similar assets, professional advice and anticipation of future events. 

Investment property – Properties are revalued to their fair value at the reporting date by professional valuers. The valuation is based on the assumptions and judgements which are impacted by a variety of factors including market and other economic conditions. 

Listed investments - listed investments are revalued to fair value by the Charity's investment managers. 

Provision - the provision is an estimate of amount payable using mortality tables. 

Page 31 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **2. INCOME FROM DONATIONS AND LEGACIES** 

|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>Donations<br>88,676<br>Legacies<br>1,167,316<br>Grants<br>-<br>Government grants<br>-<br>**TOTAL 2023**<br>1,255,992<br>TOTAL 2022<br>3,592,925|**Restricted**<br>**funds**<br>**2023**<br>**£**<br>2,600<br>900,000<br>-<br>-<br>902,600<br>3,375|**Total**<br>**funds**<br>**2023**<br>**£**<br>**91,276**<br>**2,067,316**<br>**-**<br>**-**<br>**2,158,592**<br>3,596,300|Total<br>funds<br>2022<br>£<br>115,731<br>3,468,091<br>600<br>11,878|
|---|---|---|---|
||||3,596,300|
|||||



Government grants received in 2022 represented amounts receivable under the Coronvirus Job Retention Scheme (CJRS) of £2,878 to cover salaries of furloughed staff and a grant of £9,000 from Herefordshire Council for Covid-19 business rates. 

## **3. INCOME FROM CHARITABLE ACTIVITIES** 

|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>Rental income<br>280,959<br>Other income<br>-<br>**TOTAL 2023**<br>280,959<br>TOTAL 2022<br>208,883|**Total**<br>**funds**<br>**2023**<br>**£**<br>**280,959**<br>**-**<br>**280,959**<br>208,883|Total<br>funds<br>2022<br>£<br>206,971<br>1,912|
|---|---|---|
|||208,883|
||||



Page 32 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **4. FUNDRAISING INCOME** 

## **Income from fundraising events** 

|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>Fundraising events<br>33,683<br>TOTAL 2022<br>35,862|**Total**<br>**funds**<br>**2023**<br>**£**<br>**33,683**<br>35,862|Total<br>funds<br>2022<br>£<br>35,862|
|---|---|---|
||||



## **5. INVESTMENT INCOME** 

|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>Property rental income<br>134,194<br>Income from stocks and shares<br>-<br>**TOTAL 2023**<br>134,194<br>TOTAL 2022<br>304,768|**Restricted**<br>**funds**<br>**2023**<br>**£**<br>975<br>39,325<br>40,300<br>31,649|**Total**<br>**funds**<br>**2023**<br>**£**<br>**135,169**<br>**39,325**<br>**174,494**<br>336,417|Total<br>funds<br>2022<br>£<br>304,768<br>31,649|
|---|---|---|---|
||||336,417|
|||||



## **6. OTHER INCOME** 

|Other income<br>**TOTAL 2023**<br>TOTAL 2022|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>28,781<br>28,781<br>8,169|**Total**<br>**funds**<br>**2023**<br>**£**<br>**28,781**<br>**28,781**<br>8,169|Total<br>funds<br>2022<br>£<br>8,169|
|---|---|---|---|
||||8,169|
|||||



Page 33 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **7. EXPENDITURE ON RAISING FUNDS** 

## **COSTS OF RAISING VOLUNTARY INCOME** 

|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>Advertising, PR and literature<br>182,812<br>Event costs<br>1,364<br>Other costs<br>828<br>Wages and salaries<br>167,915<br>Social security costs<br>15,685<br>Pension costs<br>2,863<br>Allocated centrally incurred fundraising and governance<br>costs (note 11)<br>297,269<br>**TOTAL 2023**<br>668,736<br>TOTAL 2022<br>483,173|**Total**<br>**funds**<br>**2023**<br>**£**<br>**182,812**<br>**1,364**<br>**828**<br>**167,915**<br>**15,685**<br>**2,863**<br>**297,269**<br>**668,736**<br>483,173|Total<br>funds<br>2022<br>£<br>135,573<br>2,258<br>999<br>86,156<br>6,754<br>1,409<br>250,024|
|---|---|---|
|||483,173|
||||



## **8. INVESTMENT MANAGEMENT COSTS** 

|Investment management fees<br>TOTAL 2022|**Endowment**<br>**funds**<br>**2023**<br>**£**<br>10,369<br>11,109|**Total**<br>**funds**<br>**2023**<br>**£**<br>**10,369**<br>11,109|Total<br>funds<br>2022<br>£<br>11,109|
|---|---|---|---|
|||||



Page 34 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **9. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES** 

## **Summary by fund type** 

|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>Conservation<br>473,197<br>Education and Demonstration<br>208,307<br>Farm/Land Management<br>253,891<br>**TOTAL 2023**<br>935,395<br>TOTAL 2022<br>1,285,042|**Restricted**<br>**funds**<br>**2023**<br>**£**<br>8,811<br>-<br>26,664<br>35,475<br>23,231|**Total**<br>**2023**<br>**£**<br>**482,008**<br>**208,307**<br>**280,555**<br>**970,870**<br>1,308,273|Total<br>2022<br>£<br>604,217<br>217,257<br>486,799|
|---|---|---|---|
||||1,308,273|
|||||



## **10. ANALYSIS OF EXPENDITURE BY ACTIVITIES** 

|Conservation<br>Education and Demonstration<br>Farm/Land Management<br>**TOTAL 2023**<br>TOTAL 2022|**Activities**<br>**undertaken**<br>**directly**<br>**2023**<br>**£**<br>109,305<br>56,701<br>173,160<br>339,166<br>558,203|**Support**<br>**costs**<br>**2023**<br>**£**<br>372,703<br>151,606<br>107,395<br>631,704<br>750,070|**Total**<br>**funds**<br>**2023**<br>**£**<br>**482,008**<br>**208,307**<br>**280,555**<br>**970,870**<br>1,308,273|Total<br>funds<br>2022<br>£<br>604,217<br>217,257<br>486,799|
|---|---|---|---|---|
|||||1,308,273|
||||||



Page 35 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **10. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)** 

## **ANALYSIS OF DIRECT COSTS** 

|Staff costs<br>Conservation and monitoring<br>Property maintenance<br>Property management<br>Legal and professional<br>Other costs<br>**TOTAL 2023**<br>TOTAL 2022|**Conservatio**<br>**n**<br>**2023**<br>**£**<br>109,042<br>263<br>-<br>-<br>-<br>-<br>109,305<br>101,670|**Education/D**<br>**emonstratio**<br>**n**<br>**2023**<br>**Farm/Land**<br>**Managemen**<br>**t**<br>**2023**<br>**£**<br>**£**<br>56,701<br>31,221<br>-<br>-<br>-<br>72,942<br>-<br>31,677<br>-<br>37,320<br>-<br>-<br>56,701<br>173,160<br>67,242<br>389,291|**Total**<br>**funds**<br>**2023**<br>**£**<br>**196,964**<br>**263**<br>**72,942**<br>**31,677**<br>**37,320**<br>**-**<br>**339,166**<br>558,203|Total<br>funds<br>2022<br>£<br>175,283<br>8,090<br>247,908<br>15,193<br>111,195<br>534|
|---|---|---|---|---|
|||||558,203|
||||||



Page 36 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **11. SUPPORT COSTS ANALYSIS** 

||**Fundraising**<br>**costs **|**Conservation**<br>**Education/**<br>**demonstration**<br>**Farm/land**<br>**management**|**Conservation**<br>**Education/**<br>**demonstration**<br>**Farm/land**<br>**management**|**Conservation**<br>**Education/**<br>**demonstration**<br>**Farm/land**<br>**management**|**Total**<br>**funds**<br>**Total**<br>**funds**|
|---|---|---|---|---|---|
||**2023**|**2023**|**2023**|**2023**|**2023**<br>**2022**|
||**£**|**£**|**£**|**£**|**£**<br>**£**|
|||||||
|Staff costs|59,056|56,620|23,032|16,314|**155,022**<br>114,233|
|Depreciation|60,960|58,445|23,774|16,840|**160,019**<br>155,851|
|Premises costs|51,227|49,115|19,979|14,158|**134,479**<br>179,366|
|Bank interest<br>and charges|7,477|7,169|2,916|2,066|**19,628**<br>58,077|
|Trustees'<br>expenses|1,759|1,687|686|486|**4,618**<br>6,545|
|Professional<br>fees|59,173|56,732|23,077|16,346|**155,328**<br>154,688|
|Audit and<br>accountancy|15,414|14,778|6,011|4,258|**40,461**<br>33,150|
|Consultancy<br>Governance<br>costs|42,203<br>-|40,462<br>87,695|16,459<br>35,672|11,659<br>25,268|**110,783**<br>128,168<br>**148,635**<br>170,016|
||297,269|372,703|151,606|107,395|**928,973**<br>1,000,094|



2022 comparitives: Fundraising costs £250,024, Conservation £502,547, Education and Demonstration £150,015, Farm/land Management £97,508. 

## **12. AUDITORS' REMUNERATION** 

||**2023**|2022|
|---|---|---|
||**£**|£|
|Fees payable to the Charity's auditor for the audit of the Charity's annual|||
|accounts|**12,500**|9,980|
|Fees payable to the Charity's auditor in respect of:|||
|All non-audit services not included above|**26,950**|29,960|



Page 37 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **13. STAFF COSTS** 

|Wages and salaries<br>Social security costs<br>Contribution to defined contribution pension schemes|**2023**<br>**£**<br>**501,701**<br>**45,296**<br>**17,976**<br>**564,973**|2022<br>£<br>371,987<br>29,162<br>6,084|
|---|---|---|
||||
|||407,233|



The average number of persons employed by the Charity during the year was as follows: 

|Admin staff<br>Field staff<br>Management staff|**2023**<br>**No.**<br>**6**<br>**7**<br>**5**<br>**18**|2022<br>No.<br>5<br>5<br>5|
|---|---|---|
||||
|||15|



The average headcount expressed as full-time equivalents was 12 (2022: 12). 

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: 

||**2023**|2022|
|---|---|---|
||**No.**|No.|
|In the band £90,001 - £100,000|**-**|1|
|In the band £100,001 - £110,000|**1**|-|



The key management personnel of the charity comprise the Trustees and Chief Executive Officer. The total costs of key management personnel were £115,293 (2022: £98,450). 

No Trustees received any direct remuneration or benefits in the year (2022: £NIL). During the year, travel and subsistence expenses totalling £852 were reimbursed or paid directly to 2 trustees (2022: £764 to 1 trustee). 

Page 38 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **14. TANGIBLE FIXED ASSETS** 

|**COST**<br>At 1 April 2022<br>Additions<br>Disposals<br>At 31 March 2023<br>**DEPRECIATION**<br>At 1 April 2022<br>Charge for the year<br>On disposals<br>At 31 March 2023<br>**NET BOOK VALUE**<br>At 31 March 2023<br>At 31 March 2022|**Freehold**<br>**property**<br>**£**<br>**18,267,071**<br>**-**<br>**(66,712)**<br>**18,200,359**<br>**1,211,776**<br>**174,050**<br>**(59,666)**<br>**1,326,160**<br>**16,874,199**<br>17,055,295|**Motor**<br>**vehicles**<br>**£**<br>**47,241**<br>**-**<br>**(23,682)**<br>**23,559**<br>**44,532**<br>**1,885**<br>**(22,858)**<br>**23,559**<br>**-**<br>2,709|**Office**<br>**equipment**<br>**£**<br>**67,009**<br>**5,048**<br>**-**<br>**72,057**<br>**48,684**<br>**8,356**<br>**-**<br>**57,040**<br>**15,017**<br>18,325|**Computer**<br>**equipment**<br>**£**<br>**106,877**<br>**-**<br>**-**<br>**106,877**<br>**96,478**<br>**6,210**<br>**-**<br>**102,688**<br>**4,189**<br>10,399|**Total**<br>**£**<br>**18,488,198**<br>**5,048**<br>**(90,394)**<br>**18,402,852**<br>**1,401,470**<br>**190,501**<br>**(82,524)**<br>**1,509,447**<br>**16,893,405**<br>17,086,728|
|---|---|---|---|---|---|



Page 39 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **15. INVESTMENT PROPERTY** 

|**VALUATION**<br>At 1 April 2022<br>Disposals<br>Surplus on revaluation<br>At 31 March 2023|**Freehold**<br>**investment**<br>**property**<br>**£**<br>**6,584,500**<br>**(235,000)**<br>**483,000**<br>**6,832,500**|
|---|---|



All investment properties were professionally revalued as at 31 March 2023. Green Farm, Pierrepont Farm and Brays farm were revalued during the year by Alistair Cameron MRICS FAAV of Batcheller Monkhouse, on the basis of Existing Use Value. Bere Marsh Cottage was valued by the trustees on an open market basis using its agreed future sales price. Church Cottage was disposed of in October 2022. 

## **16. FIXED ASSET INVESTMENTS** 

|**COST OR VALUATION**<br>At 1 April 2022<br>Additions<br>Disposals<br>Revaluations<br>Movements in cash<br>AT 31 MARCH 2023|**Investment**<br>**portfolio**<br>**£**<br>**1,097,153**<br>**181,488**<br>**(222,047)**<br>**(49,544)**<br>**-**<br>**1,007,050**|**Cash at**<br>**brokers**<br>**£**<br>**33,640**<br>**-**<br>**-**<br>**-**<br>**(2,947)**<br>**30,693**|**Total**<br>**£**<br>**1,130,793**<br>**181,488**<br>**(222,047)**<br>**(49,544)**<br>**(2,947)**<br>**1,037,743**|
|---|---|---|---|



Page 40 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

# **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **16. FIXED ASSET INVESTMENTS (CONTINUED)** 

All the fixed asset investments are held in the UK 

## **VALUATION** 

All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open ended investment companies are at the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value). 

The significance of financial instruments to the ongoing financial sustainability of the Charity is considered in the financial review and investment policy and performance sections of the Trustees' Annual Report. 

The objectives of the funds held by The Countryside Regeneration Trust are to provide long term growth by investing in a portfolio of other authorised funds, worldwide equities, fixed interest stocks, cash and money market instruments. 

The investment managers will take a fundamental and value driven approach to the portfolio allocation, dependant on the relevant attractions of the world equity, fixed interest and currency markets.  The fund will take an aggressive view of the stock market weightings in the portfolio, when compared to a neutral world market capitalisation. 

The fund has little exposure to credit or cash flow risk.  There are no borrowings or unlisted securities of a material nature and so there is little exposure to liquidity risk.  The main risks it faces from its financial instruments are market price, foreign currency and interest rate risk.  The policies are reviewed for managing these risks in order to follow and achieve the investment objective. 

## **17. STOCKS** 

||**2023**|2022|
|---|---|---|
||**£**|£|
|Jersey herd|**74,100**|74,100|



## **18. DEBTORS** 

|Trade debtors<br>Other debtors<br>Prepayments and accrued income<br>Tax recoverable|**2023**<br>**£**<br>**24,914**<br>**1,989,179**<br>**62,962**<br>**-**<br>**2,077,055**|2022<br>£<br>20,936<br>867,799<br>61,879<br>3,000|
|---|---|---|
||||
|||953,614|



Page 41 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

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

|Bank loans<br>Trade creditors<br>Amounts owed to group undertakings<br>Other taxation and social security<br>Other creditors<br>Accruals and deferred income|**2023**<br>**£**<br>**17,176**<br>**53,830**<br>**2,799**<br>**2,737**<br>**37,294**<br>**50,278**<br>**164,114**|2022<br>£<br>26,474<br>88,851<br>2,799<br>10,979<br>22,287<br>117,746|
|---|---|---|
||||
|||269,136|



Deferred income is represented by rental income received in advance. 

|**DEFERRED INCOME**<br>Deferred income at 1 April 2022<br>Resources deferred during the year<br>Amounts released from previous periods|**2023**<br>**£**<br>**36,658**<br>**15,414**<br>**(36,658)**<br>**15,414**|2022<br>£<br>1,298<br>36,658<br>(1,298)|
|---|---|---|
||||
|||36,658|



The Charity has a mortgage repayable over 25 years that is secured over the property at Turnerstone. The mortgage incurs interest at 5% above base rate. 

Page 42 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

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

|Bank loans<br>Included within the above are amounts falling due as follows:<br>**BETWEEN ONE AND TWO YEARS**<br>Bank loans<br>**BETWEEN TWO AND FIVE YEARS**<br>Bank loans<br>**OVER FIVE YEARS**<br>Bank loans|**2023**<br>**£**<br>**570,344**<br>**2023**<br>**£**<br>**18,270**<br>**63,123**<br>**488,951**|2022<br>£<br>582,609<br>2022<br>£<br>26,108|
|---|---|---|
|||82,353|
|||474,148|



The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is: 

||**2023**|2022|
|---|---|---|
||**£**|£|
|Payable or repayable by instalments|**488,951**|474,148|



The Charity has a mortgage repayable over 25 years that is secured over the property at Turnastone. The mortgage incurs interest at 5% above base rate. 

Page 43 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **21. PROVISIONS** 

||**Babers Farm**|
|---|---|
||**£**|
|At 1 April 2022|**153,750**|
|Additions|**(15,000)**|
||**138,750**|



As part of the agreement to gift the land and property at Babers Farm to the Charity, the Charity gave an undertaking to allow the donor’s wife to occupy the farmhouse until her death, or should she vacate the property, a sum equal to the higher of £15,000 or 50% of the rent received on the farmhouse should be paid per annum. In 2018 the property was vacated and an estimate of the amount payable was made using mortality tables. During the year, payments totalling £15,000 (2022 - £15,000) were made under this agreement. No revision to the provision using latest mortality tables has been revised. At the balance sheet date the balance of the provision amounted £138,750 (2022 - £153,750). 

Page 44 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **22. STATEMENT OF FUNDS** 

**STATEMENT OF FUNDS - CURRENT YEAR** 

|**UNRESTRICTED FUNDS**<br>**DESIGNATED FUNDS**<br>Redundant Farm Buildings<br>Property Assets Fund<br>**GENERAL FUNDS**<br>General Funds - all funds<br>**TOTAL UNRESTRICTED FUNDS**<br>**ENDOWMENT FUNDS**<br>Green Farm|**Balance at 1**<br>**April 2022**<br>**£**<br>**974,725**<br>**22,516,697**<br>**23,491,422**<br>**165,608**<br>**23,657,030**<br>**1,273,392**|**Income**<br>**£**<br>**-**<br>**-**<br>**-**<br>**1,733,609**<br>**1,733,609**<br>**-**|**Expenditure**<br>**£**<br>**-**<br>**(167,680)**<br>**(167,680)**<br>**(1,436,451)**<br>**(1,604,131)**<br>**(10,369)**|**Transfers**<br>**in/out**<br>**£**<br>**-**<br>**(589,921)**<br>**(589,921)**<br>**832,212**<br>**242,291**<br>**-**|**Gains/**<br>**(Losses)**<br>**£**<br>**-**<br>**483,000**<br>**483,000**<br>**53,083**<br>**536,083**<br>**(85,030)**|**Balance at**<br>**31 March**<br>**2023**<br>**£**<br>**974,725**<br>**22,242,096**|
|---|---|---|---|---|---|---|
|||||||**23,216,821**|
|||||||**1,348,061**|
|||||||**24,564,882**|
|||||||**1,177,993**|



Page 45 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **22. STATEMENT OF FUNDS (CONTINUED)** 

## **RESTRICTED FUNDS** 

|**RESTRICTED FUNDS**|||||||
|---|---|---|---|---|---|---|
|Mayfields<br>Pierrepont Farm Appeal<br>Sundry Grants/donations<br>Appeals<br>Lark Rise<br>Green Farm<br>Awnells Farm<br>Stephen Freeman Fund<br>**TOTAL OF FUNDS**|**235,000**<br>**3,000**<br>**4,350**<br>**14,085**<br>**34,128**<br>**-**<br>**888,130**<br>**-**<br>**1,178,693**<br>**26,109,115**|**975**<br>**-**<br>**2,600**<br>**-**<br>**-**<br>**39,325**<br>**-**<br>**900,000**<br>**942,900**<br>**2,676,509**|**(596)**<br>**-**<br>**-**<br>**(323)**<br>**-**<br>**(25,745)**<br>**(8,811)**<br>**-**<br>**(35,475)**<br>**(1,649,975)**|**(235,379)**<br>**(3,000)**<br>**-**<br>**9,668**<br>**-**<br>**(13,580)**<br>**-**<br>**-**<br>**(242,291)**<br>**-**|**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**451,053**|**-**<br>**-**<br>**6,950**<br>**23,430**<br>**34,128**<br>**-**<br>**879,319**<br>**900,000**|
|||||||**1,843,827**|
|||||||**27,586,702**|



Page 46 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **22. STATEMENT OF FUNDS (CONTINUED)** 

## **Unrestricted Funds** 

## **General Fund** 

The general fund represents the free reserves after allowing for all designated funds. 

## **Designated Funds** 

The Property Assets Fund is the value of unrestricted funds represented by freehold and leasehold land and buildings and investment property owned by the charity, less associated borrowings. 

The Redundant Buildings Fund brought forward was the value of unrestricted funds allocated by the trustees for funding renovation of redundant farm buildings at 51 Wimpole Road, Turnastone Court Farm, Pierrepont Farm and Garden Cottage, Twyford. At the year end the carry forward balance represented funding for development projects at Pierrepoint and Beremarsh Farm. 

## **Restricted Funds** 

Restricted funds are those which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. 

The Mayfields restricted fund was established by gift in 2005. A further gift in kind of £178,000 was made in 2008. The fund was available to be used for the conservation and creation of the Mayfields Shepherding and Countryside Centre within the objects of the Trust. These funds had been spent in prior years and the balance now transferred to unrestrcted funds. 

The Pierrepont restricted fund was established by gift in 2006. The fund is available to be used for the restoration and conservation of Pierrepont Farm within the objects of the Trust. This money has been fully spent. 

Green Farm. The income generated by the endowment fund is used firstly for the upkeep and maintenance of The Green Farm estate and secondly, if there is a surplus in any one year, for the general benefit of the charity, the use of which are restricted under the terms of the deed of gift. In the first few years the costs in maintaining the estate exceeded the income generated meaning the fund was in deficit. In the last couple of years the income has increased and the surplus generated this year has been transferred to unrestricted funds. 

Awnells Farm. This fund represents the land and buildings at Awnells Farm, the use of which are restricted under the terms of the deed of gift. 

Page 47 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **22. STATEMENT OF FUNDS (CONTINUED)** 

Appeals. This represents the funds raised by appeals, which are to be applied for specific projects under the terms of the appeals. The year end balance represents the Barn Owl appeal. 

Lark Rise. This fund represents monies received for the upkeep and maintenance of Lark Rise Farm. 

The Stephen Freeman Fund was established by a legacy received in 2023 to fund a barn conversion at Pierrepont. 

## **Endowment Fund** 

This fund represents an expendable endowment whereby the income generated by the capital fund should be used firstly for the upkeep and maintenance of The Green Farm estate and secondly, if there is a surplus in any one year, for the general benefit of the charity. The capital fund may only be used for the purposes of maintaining Green Farm Estate if in any given year, the income from the fund is insufficient 

. 

Page 48 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD** 

## **(A Company Limited by Guarantee)** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **22. STATEMENT OF FUNDS (CONTINUED)** 

**STATEMENT OF FUNDS - PRIOR YEAR** 

|**UNRESTRICTED FUNDS**<br>**DESIGNATED FUNDS**<br>Redundant Farm Buildings<br>Property Assets Fund<br>**GENERAL FUNDS**<br>General Funds - all funds<br>**TOTAL UNRESTRICTED FUNDS**<br>**ENDOWMENT FUNDS**<br>Green Farm|Balance at<br>1 April 2021<br>£<br>500,000<br>19,488,068<br>19,988,068<br>565,780<br>20,553,848<br>1,228,859|Income<br>£<br>-<br>-<br>-<br>4,150,607<br>4,150,607<br>-|Expenditure<br>£<br>-<br>(163,265)<br>(163,265)<br>(1,604,950)<br>(1,768,215)<br>(11,109)|Transfers<br>in/out<br>£<br>474,725<br>2,490,394<br>2,965,119<br>(2,945,829)<br>19,290<br>-|Gains/<br>(Losses)<br>£<br>-<br>701,500<br>701,500<br>-<br>701,500<br>55,642|Balance at<br>31 March<br>2022<br>£<br>974,725<br>22,516,697|
|---|---|---|---|---|---|---|
|||||||23,491,422|
|||||||165,608|
|||||||23,657,030|
|||||||1,273,392|



Page 49 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **22. STATEMENT OF FUNDS (CONTINUED)** 

## **RESTRICTED FUNDS** 

|Mayfields<br>Pierrepont Farm Appeal<br>Landfill Match Fund<br>Sundry Grants/donations<br>Appeals<br>Lark Rise<br>Green Farm<br>Awnells Farm<br>**TOTAL OF FUNDS**|235,000<br>3,000<br>1,002<br>1,000<br>14,480<br>34,495<br>-<br>897,213<br>1,186,190<br>22,968,897|-<br>-<br>-<br>3,350<br>25<br>-<br>31,649<br>-<br>35,024<br>4,185,631|-<br>-<br>-<br>-<br>(420)<br>(367)<br>(13,361)<br>(9,083)<br>(23,231)<br>(1,802,555)|-<br>-<br>(1,002)<br>-<br>-<br>-<br>(18,288)<br>-<br>(19,290)<br>-|-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>757,142|235,000<br>3,000<br>-<br>4,350<br>14,085<br>34,128<br>-<br>888,130|
|---|---|---|---|---|---|---|
|||||||1,178,693|
|||||||26,109,115|



Page 50 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **23. ANALYSIS OF NET ASSETS BETWEEN FUNDS** 

## **ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR** 

|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>Tangible fixed assets<br>16,013,820<br>Fixed asset investments<br>1<br>Investment property<br>6,832,500<br>Current assets<br>2,591,769<br>Creditors due within one year<br>(164,114)<br>Creditors due in more than one year<br>(570,344)<br>Provisions for liabilities and charges<br>(138,750)<br>**TOTAL**<br>24,564,882|**Restricted**<br>**funds**<br>**2023**<br>**£**<br>879,585<br>-<br>-<br>964,242<br>-<br>-<br>-<br>1,843,827|**Endowment**<br>**funds**<br>**2023**<br>**£**<br>-<br>1,037,742<br>-<br>140,251<br>-<br>-<br>-<br>1,177,993|**Total**<br>**funds**<br>**2023**<br>**£**<br>**16,893,405**<br>**1,037,743**<br>**6,832,500**<br>**3,696,262**<br>**(164,114)**<br>**(570,344)**<br>**(138,750)**<br>**27,586,702**|
|---|---|---|---|



## **ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR** 

|Tangible fixed assets<br>Fixed asset investments<br>Investment property<br>Current assets<br>Creditors due within one year<br>Creditors due in more than one year<br>Provisions for liabilities and charges<br>**TOTAL**|Unrestricted<br>funds<br>2022<br>£<br>16,198,332<br>1<br>6,349,500<br>2,114,692<br>(269,136)<br>(582,609)<br>(153,750)<br>23,657,030|Restricted<br>funds<br>2022<br>£<br>888,396<br>-<br>235,000<br>55,297<br>-<br>-<br>-<br>1,178,693|Endowment<br>funds<br>2022<br>£<br>-<br>1,130,792<br>-<br>142,600<br>-<br>-<br>-<br>1,273,392|Total<br>funds<br>2022<br>£<br>17,086,728<br>1,130,793<br>6,584,500<br>2,312,589<br>(269,136)<br>(582,609)<br>(153,750)<br>26,109,115|
|---|---|---|---|---|



Page 51 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING 24. ACTIVITIES** 

|Net income for the year (as per Statement of Financial Activities)<br>**ADJUSTMENTS FOR:**<br>Depreciation charges<br>Losses on investments<br>Dividends, interests and rents from investments<br>Profit on the sale of fixed assets<br>Increase in stocks<br>Increase in debtors<br>(Decrease)/increase in creditors<br>Donated assets<br>**NET CASH USED IN OPERATING ACTIVITIES**<br>**25.**<br>**ANALYSIS OF CASH AND CASH EQUIVALENTS**<br>Cash in hand<br>**TOTAL CASH AND CASH EQUIVALENTS**<br>**26.**<br>**ANALYSIS OF CHANGES IN NET DEBT**<br>**At 1 April**<br>**2022**<br>**£**<br>Cash at bank and in hand<br>**1,284,875**<br>Debt due within 1 year<br>**(26,474)**<br>Debt due after 1 year<br>**(582,609)**<br>**675,792**|**2023**<br>**£**<br>**1,477,587**<br>**190,501**<br>**(451,053)**<br>**(174,494)**<br>**(275,123)**<br>**-**<br>**(1,123,441)**<br>**(86,950)**<br>**-**<br>**(442,973)**<br>**2023**<br>**£**<br>**1,545,107**<br>**1,545,107**<br>**Cash flows**<br>**£**<br>**260,232**<br>**9,298**<br>**12,265**<br>**281,795**|2022<br>£<br>3,140,218<br>187,772<br>(757,142)<br>(336,417)<br>(32,376)<br>(33,430)<br>(366,866)<br>32,941<br>(2,935,000)<br>(1,100,300)<br>2022<br>£<br>1,284,875<br>1,284,875<br>**At 31 March**<br>**2023**<br>**£**<br>**1,545,107**<br>**(17,176)**<br>**(570,344)**<br>**957,587**|
|---|---|---|



Page 52 



DocuSign Envelope ID: 637204D7-C4DD-4D86-9EBD-577349A9E16F 

## **THE COUNTRYSIDE REGENERATION TRUST LTD (A Company Limited by Guarantee)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

## **27. PENSION COMMITMENTS** 

The charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £17,976 (2022 - £6,084). Contributions totalling £3,394 (2022 - £1,441) were payable to the fund at the balance sheet date and are included in creditors. 

## **28. OPERATING LEASE COMMITMENTS** 

At 31 March 2023 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows: 

|Not later than 1 year<br>Later than 1 year and not later than 5 years|**2023**<br>**£**<br>**11,643**<br>**3,960**<br>**15,603**|2022<br>£<br>17,516<br>24,439|
|---|---|---|
||||
|||41,955|



The following lease payments have been recognised as an expense in the Statement of Financial Activities: 

||**2023**|2022|
|---|---|---|
||**£**|£|
|Operating lease rentals|**11,643**|17,516|



## **29. RELATED PARTY TRANSACTIONS** 

Rental income of £19,772 (2022: £19,772) was received from one tenant who is also a trustee of the charity. At 31 March 2022 £19,772 was deferrred as it related to 2022-2023. 

No Trustees received any direct remuneration or benefits in the year (2022: £NIL). 

At 31 March 2023 the charity owed its subsidiary Lark Trading Limited £2,799 (2022 - £2,799). 

Page 53 




# **The Countryside Regeneration Trust** 

Audit Matters Year Ended March 2023 



## **Dear Board of Trustees** 

## **Audit Matters for The Countryside Regeneration Trust for the year ended 31 March 2023** 

This report presents the observations arising from the audit that are significant to the responsibility of those charged with governance to oversee the financial reporting process, as required by International Standard on Auditing (UK) 260. Its contents have been discussed with management. 

As auditor we are responsible for performing the audit, in accordance with International Standards on Auditing (UK), which is directed towards forming and expressing an opinion on the financial statements that have been prepared by management with the oversight of those charged with governance. The audit of the financial statements does not relieve management or those charged with governance of their responsibilities for the preparation of the financial statements. 

The contents of this report relate only to those matters that came to our attention during the conduct of our normal audit procedures, which are designed for the purpose of expressing our opinion on the financial statements. Our audit is not designed to test all internal controls or identify all areas of control weakness. However, where, as part of our testing, we identify control weaknesses, we will report these to you. Consequently, our work cannot be relied upon to disclose all defalcations or other irregularities, or to include all possible improvements in internal control that a more extensive special examination might identify. This report has been prepared solely for your benefit and should not be quoted in whole or in part without our prior written consent. We do not accept any responsibility for any loss occasioned to any third party acting, or refraining from acting on the basis of the content of this report, as this report was not prepared for, nor intended for, any other purpose. 

Specific roles and responsibilities are outlined in the terms of engagement agreed in the PEM Engagement Letter, which covers the audit of the 2023 accounts and future years’ audits. General terms of engagement may be found on our website www.pem.co.uk. 

We would like to take this opportunity to record our appreciation for the assistance provided by the finance team and other staff during our audit. 

Yours faithfully 


**Michael Hewett** 

For PEM 

18 December 2023 




## **Contents.** 

- **1** Audit status & independence 

- **2** Audit risks & our findings 

- **3** Matters arising from our work 

- **4** Communication requirements 

- **5** Internal controls 

- **6** Internal controls - review of prior years 

- **7** Summary of adjustments 

- **8** Summary of potential adjustments 

- **9** Communication of audit matters 

- **10** Independence 

- **11** Emerging issues 

## **Your team** 

**Michael Hewett** Responsible Individual mhewett@pem.co.uk 

**Jack Anderson** 

Audit Manager janderson@pem.co.uk 

**Harry Oughton** Audit Senior houghton@pem.co.uk 




## **1. Audit status** 

## **Audit opinion** 

Our work is complete. 

We confirm that our audit has not revealed any matters that will require modifications to our audit report opinion and therefore an unqualified audit opinion will be issued for The Countryside Regeneration Trust. The original audit report will be signed by Michael Hewett, on behalf of Peters Elworthy & Moore. 

## **Letter of representation** 

We have received a letter of representation from you. The letter provides us with additional evidence in areas where we have relied upon representations from you during the audit. We suggest that you make your own enquiries of staff to verify that you support the representations that have been made. As outlined in section 3 there is one change to our standard letter of representation from previous years, following revisions to auditing standards on fraud (ISA 240). 

## **Liability to third parties** 

Our audit report has been drafted in accordance with International Standards on Auditing and the latest guidance from the APB and our Institute. This involves the inclusion of a paragraph that clarifies our responsibilities as auditors. It does not affect our responsibilities to the Charity or yourselves, nor does it mean that we would be unwilling to accept responsibility to any third parties, provided that our specific agreement to do so is obtained beforehand. 

## **Subsequent events (ISA 560)** 

We must ensure that all the events up to the reporting date that need to be reported in the financial statements have been identified and accounted for appropriately. For events that come to our attention after the reporting date, but before auditor’s report is issued, we must ensure that events requiring adjustments have been accounted for. 




## **2. Audit risks & our findings** 

## **Audit approach** 

Our audit approach was outlined in our Audit Plan. We have not had to alter our Audit Plan as previously communicated to you. 

In accordance with the ISAs there are two presumed significant risks, which we are required to consider for all organisations: the risk of **management override of controls** and the risk of fraud or error in **revenue recognition** . As part of our planning, we also identified a significant risk in relation to **restricted funds.** 

Our audit findings are included below. 

## **Our approach and findings** 

**Area of focus and why** 

## **Management override of controls** 

We carried out appropriate substantive procedures including 

## **Assertions – none (presumed risk at financial statement level)** 

- review of journal entries; 

- review of accounting estimates (see section 3); and 

Management is typically in a powerful position to perpetrate fraud due to its ability to manipulate accounting records and prepare fraudulent financial statements by overriding controls that otherwise appear to be operating effectively. 

- review of significant transactions that were outside the normal course of business, or were otherwise unusual. 

Our testing did not highlight any issues 




## **2. Audit risks & our findings** 

## **Our approach and findings** 

## **Risk** 

## **Revenue recognition** 

We adopted a substantive testing approach consisting of detailed testing and analytical procedures, to satisfy ourselves that total revenue for the year was in line with expectation and supporting documentation and accordingly assessed the completeness of the reported revenue balances. 

Under ISA 240, there is a presumed risk of fraud present within revenue recognition. 

## **Assertions –** 

As part of our audit procedures we have: 

- **completeness** (whether all the revenue to which the Charity is entitled has been included) 

   - Reviewed and tested revenue recognition policies to ensure that they are appropriate for the Charity’s activities and being consistently applied. 

- **occurrence** (whether the revenues recorded in the period have really occurred) 

- **cut-off** (whether the correct amount has been recognised in the accounting period under consideration). 

- We reviewed and tested a sample of transactions to ensure that revenue is only being recognised when all of the criteria are met (entitlement, probable and measurement). 

We have assessed the inherent risk factors of each assertion and how they affect the susceptibility to misstatement. In addition, we have assessed the likelihood and magnitude of misstatement for each assertion. 

- We performed detailed testing on material revenue streams to assess _**completeness**_ by tracing income from underlying documentation through to the ledger to ensure that items have not been missed. 

We have reviewed the controls you have in place but will not be placing reliance on these and not specifically testing the operating effectiveness of controls. We will adopt a substantive approach. 

- We performed detailed testing on material debtors related to the above revenue streams to assess _**occurrence**_ , including verification that debtors brought forward from the prior year were either settled or remain recoverable 

Whilst risk components are relevant to all of the Charity’s income streams, we consider that the significant risks for the Charity with regards to revenue relates to legacy income. 

- We performed detailed testing on material revenue streams around the year end to agree _**cut-off**_ by assessing revenue recognition of items in the post year-end legacy pipeline. 

We are pleased to report that the systems in place over the recording and recognition of revenue appear to be adequate and that no significant errors or omissions were identified during our testing. 




## **2. Audit risks & our findings** 

## **Our approach and findings** 

## **Risk** 

## **Restricted Funds** 

We reviewed the systems in place with regard to the identification of restricted income and completed substantive testing. We also reviewed the allocation of expenditure to restricted funds and tested a sample to ensure that they were applied in line with the terms of the fund. 

## **Assertions – Classification** 

The risk that restricted income has not been correctly identified or that restricted expenditure is not in line with the specified purposes. 

Our testing did not highlight any issues. 




## **3. Matters arising from our work** 

## **Materiality assessment (ISA 320)** 

Materiality is not defined in ISA 320 _‘Materiality in planning and performing an audit’_ and is a financial reporting, rather than auditing, concept. However, ISA 320 highlights the following key characteristics: 

Misstatements are considered to be material if they could influence the decisions of users of the financial statements; 

Judgements about materiality are based on surrounding circumstances, including the size and nature of the misstatement; and 

Judgements are based on the users’ common needs as a group. 

As the basis for the auditor’s opinion, ISAs require auditors to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. The concept of materiality is therefore fundamental to the audit. It is applied by auditors at the planning stage, and when performing the audit and evaluating the effect of identified misstatements on the audit and of uncorrected misstatements, if any, on the financial statements. 

Our base materiality is based on the benchmarks highlighted in the table below for The Countryside Regeneration Trust. Due to the high value of assets, two separate materiality calculations have been made to apply to appropriate areas of the testing. 

|**Materiality level**|**Benchmark**|**Final Materiality**|**Final Performance**<br>**Materiality**|**Clearly trivial**<br>**threshold**|
|---|---|---|---|---|
|Financial statement level|3% of net assets|£827,600|£620,700|£24,800|
|SOFA and related balances|2% of turnover|£53,500|£40,100|£1,600|



**Rationale for the We consider 3% of net assets to be the most relevant benchmark for users of the financial statements. For the SOFA benchmarks applied and related balances, we have used 2% of income as a lower-level materiality.** 

**Performance** We set performance materiality at a lower level to reduce the probability that, in aggregate, uncorrected and undetected **materiality** misstatements exceed the materiality for the financial statements as a whole. We have set our performance materiality at 75%. In determining performance materiality, we considered the following factors: our risk assessment, including the charity’s control environment and our experience of the audit, which has indicted a low number of corrected and uncorrected misstatements identified in previous years. 

**Clearly trivial** We have set our error reporting threshold at 3% of materiality. Differences below this threshold will not be reported unless **threshold** qualitative. We also report on disclosure matters that we identify when assessing the overall presentation of the financial statements. 

**Areas with lower level** In addition to the SOFA and related balance, Trustees and Related Parties have been assessed as material by nature and **materiality** therefore have no de minimis limit. Transactions are to be considered on an individual basis if material to the charity and/or individuals. 




## **3. Matters arising from our work** 

## **Legacy income** 

During our review of the legacy pipeline, we found that a significant balance of ~£330k was left to the Trust by Felicity Belfield. No amounts had been received for this, however it has been adjusted in the financial statements as it meets the recognition criteria for income: 

- Probable – probate has been granted, the executors have established that the estate has sufficient assets to pay the legacy, and any conditions attached to the legacy are within control of the charity or have been met. 

- Measurement – the amount to be received by the charity can be reliably estimated; and 

- Entitlement – the charity is entitled to receive the income. 

We reviewed all legacies received due to the highly subjective nature and potential for material misstatement. As a result of the work performed, there were a number of adjustments made, which have been detailed in section 7. 

## **Investment property valuations** 

During the year, management obtained professional valuations from Batcheller Monkhouse for all investment properties to ensure that the valuation held in the accounts was a true representation of the fair value of the properties. As a result, there is a £483,000 gain on investment property valuation recognised in the Statement of Financial Activities this year. 




## **3. Matters arising from our work** 

## **Going concern (ISA 570)** 

You are required to prepare the financial statements on a going concern basis and will need to disclose to us any material uncertainties that may cast significant doubt about the Charity’s ability to continue to adopt the going concern basis. You are required to look forward for a period of at least twelve months from the date when the financial statements are authorised for issue. 

When reporting in uncertain times, such as the post pandemic environment and cost of living crisis, it is particularly important to provide users of the accounts with appropriate insight into the Charity’s resilience in the face of the ongoing challenges and to understand the key assumptions and judgements made when assessing the Charity’s ability to continue as a going concern. 

We have received your assessment which includes: 

- Ongoing legacy pipeline, and; 

- Budgets and forecasts covering at least 12 months from the expected date of signing 

Your going concern assessment indicates that there are no issues that impact the use of the going concern assumption. 

## **Our work** 

We have reviewed your assessment of the appropriateness of the going concern basis and ensured that the appropriate disclosures have been made in the financial statements. 

We have specifically discussed your contingency plans and scrutinised forecasts, which indicate that the Charity will be able to continue as a going concern for a period of at least twelve months from the date of approval of the financial statements and taking into account the full range of outcomes. 

## **Fraud (ISA 240)** 

We have not been made aware of any incidents in the period and no other issues have been identified during the course of our audit. 

As outlined in our Audit Plan we have received your assessment of the risk and effectiveness of the internal controls relating to the processes and procedures that they have in place. 

It is the Trustees’ responsibility to satisfy themselves that they have met their financial duties as Trustees by having robust and effective financial controls in place and protecting the business from financial crime. 

Our standard letter of representation has one change from previous years. Previously, we obtained representations from you that you acknowledge your responsibilities. This year a representation will be/has been requested that Trustees and management believe that they have appropriately fulfilled these responsibilities. 




## **4. Communication requirements** 

## **Matters to be brought to the attention of the Trustees** 

## **Accounting and internal controls** 

## **Your assessment** 

Management should keep their understanding of internal controls up to date to identify which controls are still operating effectively and which might now show areas of weakness, particularly given the new hybrid working environment with staff often working remotely. 

This regular re-assessment should consider the heightened risk of fraud as a result of such changes in the operational environment. Plans should be put in place to implement controls to cover any gaps identified. 

Strengthening and maintaining the control environment whilst your staff are working remotely could include: 

- Maintaining segregation of duties as far as possible so that no one individual has too much authority; 

- With increased remote working, making sure that only the right people are accessing the right systems; and 

- Increasing cyber awareness is recommended to identify unexpected behaviour. 

It is the Trustees’ responsibility to satisfy themselves that they have met their financial duties as Trustees by having robust and effective financial controls in place and protecting the business from financial crime. The assessment and evidence of challenge by management and trustees should be clearly documented. 

## **Our work** 

We consider management’s assessments of controls as part of our assessment of significant audit risk and we consider the design and implementation of relevant controls around significant audit risks as part of our audit work. 

We understand from discussion with management that controls are mainly exercised through 

- Review of monthly management accounts 

- Xero’s inbuilt journal entry controls 

- Maintenance of the ThanQ system as a separate listing of income and regular reconciliation to the ledger, as well as a legacy pipeline document to track possible future income 

- Dual authorisation requirements on the bank portal 

As noted in the prior year we recommend that management review their arrangements annually to ensure that provision remains appropriate. 

## **Recommendations** 

We have found the Charity’s accounting and internal control systems to be appropriate to the Charity’s needs based upon the nature and complexity of your activities and the need for any systems to be cost effective. No significant deficiencies have come to our attention during the course of our work. We therefore believe that the systems can be relied upon to produce financial statements that show a true and fair view. 




## **4. Communication requirements** 

## **Matters to be brought to the attention of the Trustees** 

## **Financial statements** 

As part of our audit we have considered and reviewed the Charity’s accounting policies and the disclosures in accordance with UK Generally Accepted Accounting Practice and we have not encountered any material departures. In our opinion the accounting policies selected are appropriate to the circumstances of the Charity. Our review found no material omissions in the financial statements. 

## **Judgements and estimates (ISA 540)** 

ISA (UK) 540 ‘Auditing Accounting Estimates and Related Disclosures’ includes number of more prescriptive documentation requirements around risk assessment, linking audit procedures with the assessed risk and judgements related to accounting estimates. 

There are some areas which involve a large degree of judgement and estimation and which were given increased scrutiny during our audit. These were: 

- Depreciation and useful economic lives of assets; 

- Valuation of investment properties 

- Valuation of listed investments 

- Valuation of provisions 

- Recognition of legacy income 

## **Laws and regulations (ISA 250)** 

We are not aware of any significant incidences of non-compliance with laws and regulations. 

## **Related parties (ISA 550)** 

Our normal audit procedures involved enquiry of management about the identity of related parties, the nature of relationships and the type and purpose of related party transactions. We have received confirmation forms of the related party relationships and transactions from all identified related parties. We are not aware of any non-disclosed material related party transactions. 




## **5. Internal controls** 

**PEM findings** 

**Priority Recommendation Your comments** Although the matter was immaterial, it is important that sufficient detail is recorded on **Medium** Our comments have been new items capitalised in noted by you. fixed assets to ensure that component disposals can be clearly identified and reflected. We recommend that a Our comments have been formal approval process noted by you and we is in place using understand that The CRT is **Medium** automated controls actively recruiting for new available within Xero or positions which would help to Dext. enable this control. We believe it would be beneficial for the CRT to introduce a Our comments have been **Low** capitalisation policy noted by you. threshold and ensure it is implemented appropriately. 

## **Disposal of Turnastone Garage** 

While the proceeds had been recorded in the financial statements, the disposal from the fixed asset register had not been recorded, as the individual cost and depreciation could not be reliably determined. 

## **Approval of purchase invoices** 

There is no approval process in place for the approval of purchase invoices, with one individual being able to process these through Dext and post to Xero independently. 

## **Capitalisation of fixed assets** 

A review of the nominal transaction listing revealed several instances where items that were capital in nature (e.g. laptops) had been expensed in profit or loss. While the matter was trivial, we recommend that management pay close attention to ensure that capital items are correctly reflected in the financial statements. 




## **6. Internal controls –review of prior years** 

**PEM findings Recommendation and your comment Update this year** We recommended that care should be taken to **Posting of income** ensure that income is posted correctly as this will We did not encounter the same issue during We previously identified instances of allow the CRT to better assess each income this year’s audit income being posted to the wrong code stream. **Gift aid claims** We recommended that claims were made as an We noted that backdated claims had been Gift aid claims were not being made easy source of additional funding for the Charity made during the year from April-18 onward despite declarations made on donations. **Posting of VAT** During our testing of expenditure there We recommended that proper checks were was one instance noted where VAT was We did not encounter the same issue during completed to ensure that all posting of included despite the invoice showing no this year’s audited expenditure agrees to source documentation. VAT. 

## **Donated assets** 

We were pleased to note that the recognition of fixed assets, donations and legacy income was significantly improved this year, although issues with revenue recognition remained as shown in section 7. 

No adjustments had been made for donated assets in the year. The asset register was not up to date and £2.4m of legacy income had been excluded from management reports 

We recommended that management ensure that documentation is up to date so as to be useful for trustee review 




## **7. Summary of adjustments** 

We are required to inform you of any significant adjustments made to the financial statements presented for audit that have been identified during the course of our audit, following discussions with you and your staff. You should review these adjustments in order to satisfy yourselves that they have been properly made. Confirmation that you have done so should be communicated to us within the letter of representation. 

||**£**|
|---|---|
|**Profit per accounts presented for audit**|**638,701**|
|Adjustment to Christine Evans legacy|11,474|
|Adjustment to Nicholas Nodes legacy|(8,000)|
|Adjustment to John Crombie legacy|39,335|
|Adjustment to Mary Wilson Legacy|(9,377)|
|Jane Sharp legacy cash receipt misposted as donation|(500)|
|Belfield legacy not recognised in the accounts|330,000|
|Loss on disposal of Lark Rise Office, Countryside Centre & Toilet Block, which were still on the asset register at year end|(7,046)|
|Investment property revaluation|483,000|
|**Profit per draft accounts**|**1,477,587**|






## **8. Summary of potential adjustments** 

In addition, a number of non-trivial potential adjustments were identified during the course of our audit and we would request that you review these potential adjustments and consider amending the financial statements accordingly. If you decide not to amend the financial statements then your reasons for doing so should be communicated to us within the letter or representation. 

||**£**|
|---|---|
|**Profit per draft accounts**|**1,477,587**|
|Missed year-end accruals|(6,009)|
|Write off irrecoverable debt|(5,443)|
|Estimated gift aid not recognised from November 22 – March 2023|6,553|
|Estimated disposal of Glendore|(34,800)|
|**Profit per draft accounts, if adjusted**|**1,437,888**|






## **9. Communication of audit matters** 

**International Standard on Auditing (ISA)(UK and Ireland) 260, as well as other ISAs (UK and Ireland), prescribe matters which we are required to communicate with those charged with governance, and which we set out below** 

**Audit Audit Plan Matters** 

Respective responsibilities of auditor and management/those charged with governance  Overview of the planned scope and timing of the audit, form, timing and expected general content of communications  Views about the qualitative aspects of your accounting and financial reporting practices, significant matters and issues  arising during the audit and written representations that have been sought Confirmation of objectivity and independence   A statement that we have complied with relevant ethical requirements regarding independence, relationships and other matters that might be thought to bear on independence. Details of non-audit work performed by us together with details of  safeguards applied to threats to independence Material weaknesses in internal control identified during the audit  Identification or suspicion of fraud involving management and/or which results in material misstatement of the financial  statements Non-compliance with laws and regulations  Expected modifications to the auditors’ report, or emphasis of matter  Unadjusted misstatements and material disclosure omissions  Significant matters arising in connection with related parties  Significant matters in relation to going concern  




## **10. Independence** 

## **Independence** 

In line with ISA 260 and the Auditing Practices Board (APB) Ethical Standard, we communicate to those charged with governance our independence and any other relevant factors. 

We are required to write to you to give you full and fair disclosure of any matters that may relate to our independence, or the perception of our independence, as your auditors. We considered our objectivity and independence before commencing planning our audit and communicated with you regarding these matters in our Audit Plan. We have reconsidered the relationship between you and our firm and have not identified any additional factors that have an impact on our ability to maintain our objectivity and independence. 

**We confirm we are independent and able to express an objective opinion on the financial statements.** 




## **11. Emerging issues** 

## **Charity Commission Guidance on social media** 

The Charity Commission is preparing new guidance around the use of social media.  The guidance seeks to raise trustee awareness over how their legal duties apply when their charity uses social media and what to consider if issues and incidents arise. 

Whilst social media can be a powerful communication tool there are risks around managing content and control.   The draft guidance focuses on the need to have a clear social media policy that sets out controls that are both appropriate and clearly understood throughout the organisation. 

The draft guidance covers considerations around: 

- Managing potential risks in posting social media content 

- Engaging on controversial topics 

- Campaigning or political activity on social media 

- Fundraising on social media 

- Staying safe online 

We recommend that Trustees familiarise themselves with the guidance and practices current in place at the [charity]. The guidance includes checklists to support Trustees in their review.. 




## **11. Emerging issues** 

## **Charities Act: June 2023 Update** 

The Charities Act 2022 amends the Charities Act 2011. The Charities Act 2022: implementation timetable was summarised in the August 2022 Newsletter . And we set out below a summary of those elements which came into for in October 2022 in our January newsletter.  A further tranche of amendments have now been implemented and we set out below a summary of those changes which came into force on 14 June 2023.  Further guidance and information can be found on the Charity Commission website. 

## **Selling, leasing or otherwise disposing of charity land** 

The Act will simplify some of the legal requirements around disposing of charity land, through sale, transfer or lease.   The changes include: 

- Widening the pool of people qualified to provide charities with advice on disposals, including clarification that this can be a trustee if they are suitably qualified; 

- Discretion over how a proposed land disposal is advertised; 

- Removing the requirement for Charity Commission approval for certain short or fixed term leases to employees; 

- Clarifying legal requirements which apply when the disposal is to another charity; and 

- Updating the statements and certificates which must be included in disposal or mortgage documentation for charity land. 

## **Permanent endowment** 

The key changes are for charities: 

- to be able to spend, in certain circumstances, from smaller endowments funds of less than £25,000; and 

- to be able to borrow up to 25% of the value of their permanent endowment, without Charity Commission authority, but with plans over how the amount will be repaid. 

Those charities taking a total return approach to investment will be able to use permanent endowment to make social investments with a negative or uncertain financial return, providing any losses are offset by other gains. 

## **Charity names and connected persons** 

The Act will enable the Charity Commission to delay registration of a charity with an unsuitable name, and also to direct a charity to stop using a working name, if it is offensive or misleading.  The Commission will also be able to use these powers, in consultation with the Principal Regulator, for exempt charities. 

In addition, the definition of connected person will be updated to remove outdated language.  Trustees should remember that connected person include family members, companies controlled by a charity trustee, companies in which a charity trustee has at least 25% interest and business partners of charity trustees.  This wide definition means that trustees need to be very conscious of potential relationships when declaring and managing conflicts. 




## **11. Emerging issues** 

## **Charity Commission Accounts** 

The Charity Commission published information on its new https://www.gov.uk/guidance/setting-up-my-charity-commission-account accounts access in November 2022.  The first stage of the implementation currently planned from November 2022 to Summer 2023 is to pilot the access to the new accounts with a small number of charities.  During phase 1 the key contact for the charity will be invited to set up an admin account.  From that account they will ultimately be able to control access for other charity contacts and the trustees. 

The Charity Commission recommend that any charities using a shared email address, such as ‘info@charityname.org.uk’ for both the charity contact and trustees, should change this to individual email addresses used by one person only. This can be done via the Charity Commission update charity details service, and the Commission believes that this will make setting up your individual accounts in Phase 2 much easier for you (see What email address should I use?) and will help you keep your information secure. 

Ultimately the new accounts will enable a charity to establish administrator accounts, trustee accounts and third-party accounts which allow different levels of access to charity data and Charity Commission services.  Where individuals use the same address it is intended that they will have one account with links to the data of all the charities they are connected to; if separate addresses are used for each charity, then a separate account will be required for each separate email address.  So when setting up accounts trustees and charities will need to agree whether ‘charity addresses’ should be used, or whether it is acceptable for trustees and contacts to use personal email addresses. 




## **11. Emerging issues** 

## **Understanding internal controls** 

CC8 has long been the “go to” guidance on basic internal controls that the Charity Commission expect to be in place.  This guidance was updated in April 2023 to reflect the increasing use of the internet for banking, donations and other transactions. It covers alternative banking arrangements and crypto currency to highlight areas where trustees may not be sure that they have addressed risks and questions that a 21st century charity may be addressing. A fuller description is included in our May newsletter. 

The style of the checklist has changed to reflect key areas of control and supervision and should be logical for trustees and management to complete. Although the questionnaire has yes/no responses to its questions we would advise all charities to document why they are satisfied the response is a yes and develop an action plan where there is a no that is relevant to the activities of the charity. 

## The checklist covers 

- General Principles for all charities – questions to establish how well trustees understand the financial controls in place and their duties. 

- Operational risks.  The key points here are around understanding whether there is sufficient training and knowledge of policies by trustees, staff and volunteers 

- Internal financial controls for banking.  These cover how bank accounts are opened, reconciled and monitored and include online banking controls around security of electronic devices, management of passwords and PINs. 

- Income. This challenges trustees and management to identify whether they have controls to manage the completeness and accuracy of income recognition from all sources, and the ongoing security of that asset. 

- Expenditure. Reflects the potentially increased levels of payment being made by individuals rather than through central purchasing and finance systems and are updated for services such as google pay and apple pay.  For all methods where control over purchasing is effectively delegated to the individual, charities must be sure that clear policies are in place and appropriate oversight as these delegated processes give increased scope for an individual to commit an unwary charity without authorisation.  This section also includes questions around paying wages and salaries, expenses, grants and handling related party transactions.  The key here is having clear policies in place around identifying and managing conflicts and subsequent related party payments that can be followed. 

Trustees have a legal duty to manage their charity’s resources responsibly, including by implementing appropriate financial controls and managing risk. Increasingly Charity auditors, independent examiners and others will hold them to account and ask to see their assessment and understand that judgment.   This demands more than a feeling, or a general assurance from those two which financial controls have been delegated.   The guidance accompanying the CC8 checklist recommends that charities required to have an external audit, should have an internal audit committee.  This assessment of internal controls may be one of its tasks. 




## **11. Emerging issues** 

## **Cryptoassets** 

The new guidance on internal controls issues by the Charity Commission in April 2023 includes some helpful guidance on cryptoassets (e.g. cryptocurrencies and non-fungible tokens (NFTs)), and the risks associated with them such as volatility, potential for fraud, anonymity, ability to use them. 

The guidance emphasises the legal duty of trustees to manage their charity’s resources properly.  Where that involves new products such as crypto assets, trustees should make sure that they have assessed the risks of holding such assets and the limitations of using them prior to accepting the donation. 

Charity Commission guidance gives trustees discretion to make the difficult decision of whether to accept or refuse a donation, based solely in the best interests of the charity.  Further guidance is available on knowing your donor Charity Commission guidance. 

Trustees may decide and develop a policy not to accept crypto asset donations on considering: 

- the risks around such new and volatile assets; 

- the lack of protection compared to traditional currencies or financial products (since crypto assets are largely unregulated charities are very unlikely to have access to the Financial Services Compensation Scheme (FSCS) or the Financial Conduct Authority (FCA) if something goes wrong); 

- the potential to get it wrong due to laws on crypto assets varying between countries (for example crypto assets are banned in some countries and other countries have complex regulatory requirements); 

- and the expertise needed to management the risks. 

However, if crypto asset donations are accepted, Charity Commission guidance sets out that a charity should: 

- adopt a policy on accepting, refusing and using cryptoassets, including how you make decisions about converting them to traditional currency; 

- if your charity is receiving donations directly in its crypto wallet, ensure the platform you are using is compliant with UK regulations and registered with the FCA for anti-money laundering and counterterrorism as required; 

- keep accurate records of donations, storage and use; 

- make sure you follow HMRC’s guidance on the taxation of cryptoassets; 

- remember that you cannot claim Gift Aid on any cryptoassets; 

- review the benefits to your charity of accepting cryptocurrency versus the risk; 

- Regularly review your policies on them. 

We recommend that trustees take specialist advice if they are considering cryptoassets. 




## **11. Emerging issues** 

## **Cyber Security Breaches Survey 2023** 

The Cyber Security Breaches Survey is a research study for UK cyber resilience, aligning with the National Cyber Strategy. It has been published annually since 2016 and has separately identified charity trends from general business activity since 2018. Whilst it is primarily used to inform government policy on cyber security, it provides useful insight by sector on the policies, processes and approach to cyber security.  It also considers the different cyber attacks and cyber crimes these organisations face, as well as how these organisations are impacted and respond. 

Worryingly the survey found that practices around certain cyber hygiene factors have declined over the last few years for all respondents, charities and businesses. The survey also looked at risk assessment and use of monitoring tools and noted that charities (as a whole sector) are being medium and large businesses. 

The survey found that formal incident response plans were not widespread among respondents (21% of businesses and16% of charities had them). Although that rose to 47% of medium-sized businesses,64% of large businesses and 38% of high-income charities.  For charities the damage to reputation and lasting impact could be significantly greater than the loss from an attack (the survey found that the average charity loss was just over £500), and therefore managing the response to a cyber incident, with liaison and communication between IT and general staff is as key to managing the risk as preventative measures. 

We would recommend that all trustees annual reconsider the data held and those related risks and responses covering prevention, detection and reaction to cyber incidents.  Publications including cyber security for Boards and cyber essentials provide useful guidance for charities and businesses of all sizes.