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2022-08-31-accounts

REGISTERED COMPANY NUMBER: 07736018 (England and Wales) REGISTERED CHARITY NUMBER: 1143416

Report of the Trustees and Financial Statements for the Year Ended 31 August 2022 for Golden Grove Trust

Golden Grove Trust

Contents of the Financial Statements for the Year Ended 31 August 2022

Page
Report of the Trustees 1 to 4
Statement of Financial Activities 5
Balance Sheet 6 to 7
Cash Flow Statement 8
Notes to the Cash Flow Statement 9
Notes to the Financial Statements 10 to 18

Golden Grove Trust

Report of the Trustees for the Year Ended 31 August 2022

The Trustees, who are also Directors of Golden Grove Trust for the purposes of the Companies Act 2006, present their report with the financial statements of the Charity for the year ended 31 August 2022. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objects of the Trust are to acquire, restore and preserve for the public benefit the historical buildings known as Golden Grove, Carmarthen together with its historical gardens and arboretum and surrounding gardens and parkland. The Trust will promote art for the benefit of the public by the establishment and maintenance of an art gallery and a sculpture park at Golden Grove and will also promote the restoration and maintenance of gardens which will be open to the public at Golden Grove. The Trust also aims to advance the education of the public in arts and horticulture.

Public benefit

The Trustees confirm that they have complied with their duty in section 17 (5) of the 2011 Charities Act with regard to the Charity Commission's general guidance on public benefit when reviewing the Charity's aims and objectives in planning for future activities.

Volunteers

The Charity employs a small number of operational and administrative staff. Otherwise, the Chairman and all members of the Board of Trustees are volunteers, as are others who assist the Charity from time to time.

STRATEGIC REPORT Achievement and performance

Charitable activities

Still not a truly representative year of what could be done at Golden Grove. The cafe was not quite as busy as last year when people could not go abroad, however, party bookings have begun to trickle in and regulars are passionately loyal.

A woodburning stove was installed in the cafe during the last lockdown, which made the cafe more attractive over the Winter.

Friends of Golden Grove numbers continue to grow. The lockdown months were discounted on all memberships so that revenue is still not truly representative.

The free coffee in return for the parking ticket was abolished in May, many of the visitors supported this strongly, also Parking Eye reduced the percentage that they take from the parking machines.

A Clock Fund donation box was put in the cafe and has collected several hundred pounds so far.

East Lodge was placed on the market on 4 May 2022 but no offers had been formalised by the year end.

Page 1

Golden Grove Trust

Report of the Trustees - continued for the Year Ended 31 August 2022

STRATEGIC REPORT

Financial review (continued)

Reserves policy

The Trustees have yet to formulate a reserves policy, which will be dependent on the results of fund-raising for the essential renovation works that have been commenced. The Charity does not currently have any free reserves.

STRUCTURE, GOVERNANCE, MANAGEMENT

Governing document

The Charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The Charity is operated in accordance with its Memorandum and Articles of Association dated 10 August 2011. It is a registered Charity with the Charity Commission. The Board of Trustees has ultimate responsibility for the management and financial matters of Golden Grove Trust.

Recruitment and appointment of new Trustees

As set out in the Articles of Association, the number of Trustees shall be not less than two and not more than seven individuals, all of whom shall be members. Apart from the first Trustees, new Trustees shall be appointed or reappointed by resolution of the Trustees for a term of office not exceeding four years. In selecting individuals for appointment as new Trustees the Trustees shall have regard to the skills, knowledge and experience needed for the effective administration of the Charity.

Organisational structure

Frances Jones-Davies is employed by the Trust in an administrative capacity, and to oversee the management of café and staff. Wendy Bedford, retired Chartered Accountant, self-employed, oversees the keeping of the accounts. Both answer directly to the Trustees and are required to give an overview of the project, works and financial position at every Board Meeting.

Induction and training of new Trustees

New Trustees are directed towards guidance issued by The Charity Commission.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

Page 2

Golden Grove Trust

Report of the Trustees - continued for the Year Ended 31 August 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

07736018 (England and Wales)

Registered Charity number

1143416

Registered office

Gelli Aur Country Park Golden Grove Carmarthenshire SA32 8LR

Trustees during the year

R C Salmon D N Salmon E O E Jones-Davies (resigned 30 November 2021)

Chairman

R C Salmon

Bankers

Barclays Bank PLC Cardiff Queens Street Leicester England LE87 2BB

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees (who are also the directors of Golden Grove Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the 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 those financial statements, the trustees are required to

Page 3

Golden Grove Trust

Report of the Trustees - continued for the Year Ended 31 August 2022

STATEMENT OF TRUSTEES RESPONSIBILITIES (continued)

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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.

In so far as the trustees are aware:

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 6[th] July, 2023, and signed on the board's behalf by:

D N Salmon

Page 4

Golden Grove Trust


Statement of Financial Activities for the Year Ended 31 August 2022

Unrestricted
funds
INCOME AND ENDOWMENTS FROM
Notes
£
Donations and legacies
2
1,888
Charitable activities
3
19,155
Other income
4
36,018
Total
57,061
EXPENDITURE ON
Charitable activities
5
111,832
NET INCOME/(EXPENDITURE)
(54,771)
RECONCILIATION OF FUNDS
Total funds brought forward
(193,262)
TOTAL FUNDS CARRIED FORWARD
(248,033)
Restricted
funds
£
155
-
-
155
1,107
(952)
1,795,071
1,794,119
2022
Total
funds
£
2,043
19,155
36,018
57,216
112,939
(55,723)
1,601,809
1,546,086
2021
Total
funds
£
45,375
12,257
33,726
91,358
109,328
(17,970)
1,619,779
1,601,809

The notes form part of these financial statements

Page 5

Golden Grove Trust

FIXED ASSETS

Tangible assets

Investment property

CURRENT ASSETS
Debtors

Cash at bank
CREDITORS
Amounts falling due within one year

NET CURRENT
ASSETS/(LIABILITIES)
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one
year

NET ASSETS/(LIABILITIES)
FUNDS

Unrestricted funds
Restricted funds
TOTAL FUNDS
Balance Sheet
at 31 August 2022
Notes
11
12
13
14
15-16
17-18
2022
£
1,873,441
586,394
2,459,835
18,436
-
18,436
(366,285)
(347,849)
2,111,986
(565,900)
1,546,086
(248,033)
1,794,119
1,546,086
2021
£
1,875,258
586,394
2,461,652
20,435
-
20,435
(269,303)
(248,868)
2,212,784
(610,975)
1,601,809
(193,262 )
1,795,071
1,601,809

The notes form part of these financial statements

Page 6

continued...

Golden Grove Trust

Balance Sheet - continued

At 31 August 2022

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2022.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for

The financial statements were approved by the Board of Trustees on 6[th] July, 2023, and were signed on its behalf by:

D N Salmon

The notes form part of these financial statements

Page 7

Golden Grove Trust

Cash Flow Statement for the Year Ended 31 August 2022

Cash flows from operating activities:
Notes
Net cash provided by/(used in) operating
activities
1
Cash flows from investing activities:
Purchase of tangible fixed assets
Sale of tangible fixed assets
Improvements to investment property
Net cash (used in) investing activities
Cash flows from financing activities:
New loans in year
Loan repayments in year
Net cash provided by financing
activities
Changes in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the beginning
of the reporting period
2
Cash and cash equivalents at the end of the
reporting period
2
2022
£
(57,318)
(378)
-

-

(378)
58,555

-

58,555

859

(9,989)

(9,130)
2021
£
967
(925)
-
-
(925)
-
-
-
42
(10,031)
(9,989)

The notes form part of these financial statements

Page 8

Golden Grove Trust

Notes to the Cash Flow Statement for the Year Ended 31 August 2022

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM
OPERATING ACTIVITIES
2022 2021
£ £
Net income/(expenditure) for the reporting period (as per the
statement of financial activities) (55,723) (17,970)
Adjustments for:
Depreciation charges 2,195 8,251
Decrease/(increase) in debtors 1,999 5,520
(Decrease)/increase in creditors (5,789) 5,166
Net cash provided by/(used in) operating activities (57,318)
967
2. CASH AND CASH EQUIVALENTS
2022 2021
£ £
Bank balance / (bank overdraft included in bank loans and
overdrafts falling due withinone year) (9,130)
(9,989)

The notes form part of these financial statements

Page 9

Golden Grove Trust

for the Year Ended 31 August 2022

Notes to the Financial Statements

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (effective 1 January 2015)' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

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

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

Allocation and apportionment of costs

Support costs include administrative costs incurred directly in support of expenditure on the objects of the charitable company and governance costs which are incurred in compliance with constitutional and statutory requirements.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost of each asset over its estimated useful life.

machinery and equipment 25% on cost
playground equipment 10% on cost
website & Signage 33% on cost

The freehold property is stated at acquisition cost together with the cost of renovation and repair work to bring the property into operational use. Valuation by an independent valuer is made every five years. No depreciation has been charged in the period as the property is in the process of renovation and repair.

Works of art are stated at cost. Their value is reviewed annually by the Trustees.

Investment property

Investment properties are carried at fair value determined annually by either a Trustee valuation or by external valuers and derived from the current market rents and investment property yields for comparable real estate adjusted, if necessary, for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are taken to the revaluation reserve.

Taxation

The Charity is exempt from corporation tax on its charitable activities.

Page 10

Golden Grove Trust

Notes to the Financial Statements - continued for the Year Ended 31 August 2022

1. ACCOUNTING POLICIES - continued

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2. DONATIONS AND LEGACIES

3.

Donations
Grants
Grants received, included in the above, are as follows:
Covid19 grants:
Welsh Government Cultural Recovery Grant
Carmarthen County Council Grants
Government Job Retention Scheme
INCOME FROM CHARITABLE ACTIVITIES
Car parking income
Arboretum admissions
Friends of Golden Grove
Film production income
Event income
Miscellaneous income
2022
£
2,043
-
2,043
2022
£
-
-
-
-
2022
£
6,006
4,317
3,665
167
2,241
2,759
19,155
2021
£
1,520
43,855
45,375



2021
£
20,000
13,000
10,855
43,855
2021
£
3,135
2,369
2,591
2,500
1,107
555
12,257

Page 11

Golden Grove Trust

Notes to the Financial Statements - continued

for the Year Ended 31 August 2022

4. OTHER INCOME

2022
£
Rent receivable (Café)
10,000
Holiday lettings (East and West Lodge)
25,388
Holiday lettings (Mansion)
630
36,018
5.
CHARITABLE ACTIVITIES COSTS
Direct costs Support costs
(See note 6)
(See note 7)
£
£
Charitable activities
91,022
21,917
6.
DIRECT COSTS OF CHARITABLE ACTIVITIES
2022
£
Operational salaries
19,812
Legal & professional fees
4,180
Insurance
4,600
Electricity
11,294
Parks maintenance
484
Building repairs & maintenance
11,061
Bank loan interest
34,083
Bank and other interest
2,281
Bank and credit card charges
725
Depreciation
2,195
Event costs
307
91,022
7.
SUPPORT COSTS
2022
£
Administration and information technology
21,904
Governance costs
13
21,917
2021
£
10,000
23,174
552
33,726
Totals
£
112,939
2021
£
19,383
3,914
4,608
3,090
629
9,741
29,435
372
752
8,251
3,200
83,375
2021
£
25,940
13
25,953

Page 12

Golden Grove Trust

Notes to the Financial Statements - continued

for the Year Ended 31 August 2022

8. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging:

2022 2021
£ £
Depreciation - owned assets 2,195 8,251

9. TRUSTEES' REMUNERATION AND BENEFITS

None of the Trustees received any monetary remuneration for the year ended 31 August 2022 (2021 £nil). Despite the dilapidation of Golden Grove mansion, when in Wales Mr Richard Salmon makes use of three rooms as domestic accommodation. This saves the cost of employing a caretaker to protect the premises overnight.

Trustees' expenses

None of the Trustees claimed any expenses in the year ended 31 August 2022 (2021 nil).

10. STAFF COSTS

Wages and salaries
National insurance
Other pension costs
2022
£
38,417
-
778
39,195
2021
£
41,750
-
878
42,628

The average monthly number of employees during the year was as follows:

2022 2021
2 2

No employees received emoluments in excess of £60,000.

11. TANGIBLE FIXED ASSETS

The freehold property (mansion and parkland) was valued, as loan security for the bank, by an independent valuer on 12 August 2019 at £942,500.

Page 13

Golden Grove Trust

Notes to the Financial Statements - continued for the Year Ended 31 August 2022

11. TANGIBLE FIXED ASSETS - continued

machinery
freehold
and
property
equipment
COST
£
£
At 1 September 2021
1,848,335
43,983
Additions
-
378
Disposals
- -
At 31 August 2022
1,848,335
44,361
DEPRECIATION
At 1 September 2021
-
42,660
Charge for year
-
702
Eliminated on disposals
- -
At 31 August 2022
-
43,362
NET BOOK VALUE
At 31 August 2022
1,848,335
999
At 31 August 2021
1,848,335
1,323
website and
works of art
signage
COST
£
£
At 1 September 2021
16,639
11,919
Additions
-
-
Disposals
-
-
At 31 August 2022
16,639
11,919
DEPRECIATION
At 1 September 2021
-
11,917
Charge for year
- -
Eliminated on disposals
- -
At 31 August 2022
-
11,917
NET BOOK VALUE
At 31 August 2022
16,639
2
At 31 August 2021
16,639
2
playground
equipment
£
14,931
-
-
14,931
5,972
1,493
-
7,465
7,466
8,959
Total
£
1,935,807
378
-
1,936,185
60,549
2,195
-
62,744
1,873,441
1,875,258

Page 14

Golden Grove Trust

Notes to the Financial Statements - continued for the Year Ended 31 August 2022

12. INVESTMENT PROPERTY


NET BOOK VALUE
At 1 September 2021
At 31 August 2022
West Lodge
£
300,670
300,670
East Lodge
£
£
285,722
586,392
285,722
586,392

The properties were valued, as loan security, by an independent valuer on 12 August 2019 as follows:

West Lodge £ 265,000 (pre 2020 renovations)
East Lodge £ 285,000
2022
£
Investment in subsidiary company:2 shares at £1
2

__
13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022
£
Amount owed by subsidiary company
17,773
Other debtors & prepayments
663
18,436
14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021
£
2
___
2021
£
17,812
2,623
20,435
Trade creditors
Other creditors and accruals
Social security and other taxes
Bank interest (see note 16)
Bank loans and overdrafts (see note 16)
Trustee’s loan account
2022
£
37,033
11,803
12,127
-
241,260
64,062
366,285
2021
£
28,013
9,589
4,083
36,446
138,489
52,683
269,303

Page 15

Golden Grove Trust

Notes to the Financial Statements - continued

for the Year Ended 31 August 2022

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022 2021
£ £
Bank loan (see note 16) 565,900 610,975

The Barclays Bank loan, secured on the freehold properties of Golden Grove Trust stands at £788,030 with no capital having been repaid in the year. It is repayable in monthly instalments over the next 13 years.

16. LOANS

An analysis of the maturity of loans is given below:

Amounts falling due within one year:
Bank loan (2022 including capitalised unpaid interest £58,555)
Welsh Government Economic Resilience loan
Bank overdraft
Amounts falling due between two and five years:
Bank loan
Amounts falling due between six and thirteen years:
Bank loan
2022
£
222,130
10,000
9,130
241,260
198,400
367,500
2021
£
118500
10000
9,989
138,489
191,000
419,475

The Welsh Government Economic Resilience loan was advanced by the Development Bank of Wales with a maximum term of 2 years. The first year is interest-free, then interest of 2 per cent is payable.

.

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted
funds
£
Fixed assets
376,044
Investments
361,394
Net current liabilities
(419,571)
Long term liabilities
(565,900)
(248,033)
Restricted
funds
£
1,497,397
225,000
71,722
-
1,794,119
2022
Total
funds
£
1,873,441
586,394
(347,849)
(565,900)
1,546,086
2021
Total
funds
£
1,875,258
586,394
(248,868)
(610,975)
1,601,809

Page 16

Golden Grove Trust

Notes to the Financial Statements - continued for the Year Ended 31 August 2022

18. MOVEMENT IN FUNDS Net
movement in
At 1/9/21 funds At 31/8/22
£ £ £
Unrestricted funds
General fund (193,262) (54,771)
(248,033)
Restricted funds
Grants and donations 363,349 (952 )
362,397
Getty Foundation 71,722 - 71,722
Trustee Funding 1,360,000 - 1,360,000
1,795,071 (952) 1,794,119
TOTAL FUNDS 1,601,809 (55,723) 1,546,086
Net movement in funds, included in the above are as follows:
Incoming
Resources
Movement in
resources
expended
funds
£ £ £
Unrestricted funds
General fund 57,061 (111,832)
(54,771)
Restricted funds
Welsh Government Grants - (998) (998)
Donations 155 (109) 46
155 (1,107)
(952)
TOTAL FUNDS 57,216 (112,939)
(55,723)

Welsh Government Grants - A restricted fund whereby funds are restricted for the use of restoration of the Country Park, gardens and grounds.

Getty Foundation - A restricted fund whereby funds are restricted for the use of the restoration of the North Terrace.

Trustee Funding - A restricted fund whereby funds are restricted for the use of the purchase of Golden Grove mansion and West Lodge.

Page 17

Golden Grove Trust

Notes to the Financial Statements - continued for the Year Ended 31 August 2022

19. CONTINGENT LIABILITIES

There is a contingent liability of up to £100,000 arising from a VAT compliance inspection by H M Revenue and Customs. In January 2023, at a pre-tribunal hearing, the Trust was refused access to tribunal on the grounds of late appeal. The ongoing VAT discussions with HMRC are being dealt with by Crowe Clarke Whitehill LLP.

20. RELATED PARTY DISCLOSURES

There were no related party transactions other than the Trustee's loan account transactions and those disclosed as Trustees' remuneration and benefits.

21. ULTIMATE CONTROLLING PARTY

The Charity is controlled by the Trustees who are all directors of the company.

22. MEMBERS LIABILITY

The liability of members is limited to £1, being the amount that each member undertakes to contribute to the assets of the Charity in the event of it being wound up.

23. POST BALANCE SHEET EVENTS

The sale of East Lodge, one of the Trust’s investment properties, was due to be completed by the end of May 2023, for £385,000. However, Barclays Bank had imposed a deadline of 31 December 2022 to reduce the bank debt, and therefore appointed their recovery team in January 2023 to recover the entire loan, now in excess of £800,000.

The park, arboretum and café were closed from 1 March 2023 because the Trust was unable to pay for public liability insurance, and all employees of the Trust and its subsidiary company had by then resigned.

In April 2023 the Chair of Trustees was disqualified from holding office. Following this, the Charity Commission has appointed a case officer.

Page 18