Charity registration number 1147602 Company registration number 07996550 (England and Wales) THE JOHN STRUTT MEMORIAL FOUNDATION ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 KENNETH EASBY LIMITED A x•lthodln company
THE JOHN STRUTT MEMORIAL FOUNDATION LEGALAND ADMINISTRATNE INFORMATION TnMto0s Mr R F de Robed( Mr P Mccormick 08E Mr C mettre-G1b$Qn Mr E M F P8nro$e Mr W Tdfer-smollett Charlty numb•r 1147602 Company number 07996550 Roght•rod offlc• John G Hills The E8tate Offic L•ybum North Yorkshlre DL8 SEW Ind•pond•nt •Mmln•r Samartha Rainb(Av FCA Kenneth Easby Limited Actountants Oak Hou80, Markd Pla Bedale North Yorkshir• DL8 1AQ Bnkor• Bar¢9 8ank PIG 31 High Row Oarlingion County Durham DL3 7QS Sollcltord mCCnICkS arfedale House 35137 East Paradg Harrogale North Yorkshire HG1 5LQ
THE JOHN STRUTT MEMORIAL FOUNDATION CONTENTS Pago Tru8tee8' report Indepond¢nl gxaminels report Slalemenl of financial actlvllle8 Balance Sheet Nol9$ lo th* financlal 8talemonts 8-12
THE JOHN STRUTT MEMORIAL FOUNDATION TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2022 The trustees Present Ihoir 8nnual report and financial slaloments for Ihg y8ar ended 31 March 2022. The finanaal stalemonls have been prepared in accordance wlh the accounting policies sel out in note 110 the financial statements and comply with the charty's Memorandum and Articles of Association, th6 Companles Act 2006 and "Accounting and Reporting by Charilles.. Slalemenl of Recommended Pracliee applicabl8 lo charities pr&padng their accounts in accordance wlh the Financi81 Reporting StarKi8rd applicablg in tho UK Republic of Ireland IFRS 1021" (effective 1 January 20191. Oblèctlvès and actlvltles The charity's objgcls aro lo support 1g91stered charitle8 in the achievement of their charilat40 objectives wbthln the countles of Cumbria and Oorbyshire. in particular thosa ch8rflle3 or charitable objecliv&s that have a connection wrth The John Strutt Conservallon Foundallon. The John Strutt Charity and The John StrLtt Centr& for Parrot Conservation. In order lo me•1 51,8 charitable objecliv8S the ¢h8rity 1$ involved in provldin9 grant8 to individuals and organl8alion8. Long tsnn alm¥ and obJo¢tlv•• The charftys oblecl8 are speciflcally restricted lo the following.. 1. To benefit such other excluslvely charitable oblecllve8 and purpo8e8 within the counties of Curnbrl8 andl or Derbyshlre, 88 the eh8rlty may delemlne from tlm8 lo Ilme, In partlcular those ¢harll8ble objedive$ and purptsses that have 8 connectlon th.. a. Th¢ John Strutt Conservallon Foundation b. The John Strutt Charity,. and ¢. Th¢ John SlrLrtt Centr8 for Parrot Conservation., and 2. to support rfjgig18red ¢harlli88 In the achlevernenl of Ihalr charltable objecilves ¥th5n tho county ol Cumbria, in porticular those ¢harllie8 or chadlable oblecliv88 that have a connection with.. The John Strutt Conservation Foundation b. The John Strutt Charity.. and c. The John Strutt C8nlre for Paryot Conservallon. These 8lms and ¢)bjgclivgs invglvg the consolidation and enhan¢em¢nt of tha charlty'8 capital value ba88, involving the relentson 8nd on-going irnprovgmenl of Chadty assets. Publlc benefft 8tatement The liusle88 have paid due regard to guldance188ued by the Charfty Comml881on In declding what adlvllies the charfty should undertake. Achlevements and perfomance In thg Gurrgnl yaar Ihg Irustefys have wnlinu¢d, as in provlous years, wlh their policy of o$sessmonl and eon801idalion. Fortunalaly, the property investmènt8 have continued to perform well and the charity ha8 mainl8ined Its income. The Twsloes communicgle regularty Wlh their professlonal property managers to be fully aware of any changes or decisions lo be made that may be necessary due to the Covid 19 epidemic so that action can be taken lo maintain the charity'8 income. The charity dsxs not have any employees or volunteer8 80 there wll be no impact on the charty's perfomiance. The trustees together with their professlonal advisors monitor the ever changing Covid 19 control measures, particularty as il 18 applicable to the propety rental market.
THE JOHN STRUTT MEMORIAL FOUNDATION TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 The trustees have looked in detail al thgir PrOty portfolio and have indicated eertain properties which do not form part of the core estsle and consideration is lo be given for their sale. The Iruslees manage a wde range ol prope"e$ in their portfolio. some commercial, some residential and some agricultural fam)s and 18nd. The trustees policy 13 to identify the original Strutt built properties and mill houses to be retained improved and leased, one of which 1$ 46 Long Row which they have renovated, by turning the clock back lo a5 close to the original mill workers. acmrnmodalion as possible and is now leased for short temi holiday lets. This is one of the wder charitable aims fgr public beneff(. The trustees recognise the Strutt fami5y were the key benefactors in the building of the losvn ot Belper vthich was at the start of the cotton industry whith mmmenced bmth Jedediah Strutt 11726 - 17971 who bought land In 1777 for his first mill in Belper which was a hamlet of Framework knitters and nail makers and this led lo the building of the mill workers houses and now foms an important part of the history and heritage of th8 town of Belper in Derbyshire. The benefits conveyed by this performance, are primarity reflected in the capacity of the charity to provide financial support to the associated charities, and thereby lo the wider public, bul also on a more local level lo enhance and improve the environment in and around their south Derbyshiro base ot Belper. The Iruslees wll ontinue on 8 wider basis wlh their poli for their on-going rèview of the charty's assets lo establish the true capital value of these, and also lo urKlerstsnd how these might be ulillsed to their full advantsge ty retention. improvement arhj In some cases by small scale disposal and re-investment. The Iruslees held their annual meeting on 21 Odober 2022 which included a full OfFSite review of all properties owned by the charity including those currently under renovation. Current delays al the Land Registry are preventing ownership of some properties being transferred from the estate of John Strutt lo that of the charity bul once all such matters are finalised, the trustees can work towards more subslanlial plans in line wlh the charity's objectives. Currently, the Iruslees are concentfftting their efforts on providing upkeep lo existing birds owned by the charity along wlh increased security and improvements al Eden Place along wlh a steady increase in the number of birds owned by the charity. Investment Assets Th¢ Foundation owns a number of houses, farm buildings and plots of land. These properties are let to provlde income lo support the charity's objectivès. During the year there has been significant maintenance %wrk undertaken on the portfolio of properties lo relum them to a marketable condrtion. Flnanclal revlew The Slalemenl of Finanaal Actiwties show$ net income of £768.88012021-. £119.5171. Revaluatson gains on the charills investsnenl propertigs amounted lo £770.000 12021.. £118,218>. and excluding thes8 gains the charity generated a nel deficit of £1.12012021'. surplus of £1,299). Total funds at 31 March 2022 were £4,395.114 compared lo £3,626.234 in 2021. The principal funding Source during the current year wa5 Tental income. Rosorves pollcy 11 is the policy of the cl)arity that unrestricted funds which have not been designated for a specffic use 8hould be maintsined al a lev81 equivalent lo be three and six month's expenditure. The trustees considers that reserves at this level wll ensure that, in the event of a significant drop in fvnding, they wll be able to continue the harity's current acts'vrttes while consideration is given to ways in thich additional fund$ may be iai5ed. Due to the expenditsjfe incurred in ongolng improvement work to the charity's investment properties it has ngt been possible lo meet this lèvel of reserves. The trustees believe that once the improvement work has bgen complgted the enhancod rent wll allow reserves lo be increased lo the desired level.
THE JOHN STRUTT MEMORIAL FOUNDATION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORD {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Risk factors The trustees have assessed the major risks to %thich the charity 1$ exposed. and are sab'sfied that systems are in place to mikngate ex4xssure to the major risks. Investment property, 8nd ils capaoty to generate income, is the charity's most important asset. As such the principal risks lo the charity is exErt)sed are those asswated Nvith this type of kyoperty. Legal & political risks - Due lo changes in the legal framework governing investment prop9ty, andlor the wder political framework affeth'ng rural and residential propety. Thes8 risks are rnore difficutt to mitigate, but paying close attenliw to developments in these areas and tsking thce from the levant professionals. as part of the fnanagement luncts'on, will lim any negab.ve impa(Is. Physi1 Loss- Due lo natural or man-made damage, is the most direct risk, and the property asset is thus rxoperly insured against such oCrrences. proper maintenance is carried OLrt together wlh regular pmpety inspections. Lo$s of income- A5 8 resutt of lad( of tenants. or tenants inabilty lo pay. is also a risk, which is met by undertaknng proper management to sKurè 0¢patIOn and maintain control of debt. Plans for future perf¢ds There is an on-going rewew of the charity's assets, lo estsblish the full ¢apilal value of these, and also understand how these might be utilised to fijll 8dvantsge. by tention and improvement, or in some c3so$ by small-stsle disposal and re-investment. The programme of improvement lo e$ts"ng properties is also sel to continuo, lo drive fotward the ams and objectives of rai&ng income. and asset vatue. to enable the charity to support ils aswciated ¢h8rilable endeavours. Structure, gov•rnanca and management The charity is a company limrted by guarantee, arKt is govemed by a Memorandum and Arudes ofAssorAation. The Iruslee8, vtho are also the directors for the purpose of company law. and vtho served during the year and up to the dale of signature of the finanaal statements were- MrRFdeRobe Mr P Mccormick OBE Mr C MelcaKe-Gibson Mr E M F Penrose Mr W Telfer-smollett The board of trustees has the power lo awoint additional trustees as it consider3 apprOate. None of the Iruslees has any beneficial interest in the eompany. An of the tntstees are members of the company and guarant8¢ to contribute £1 in the event of a winding up. The chartty is operated as a company controlled by a board of Trustee8. Major strategic and policy decisions, and those involving major areas of expenditure are made by the full board, currenuy consisting of five Trustees. Lower level management decisions are delegatèl lo the Trustee in charge of the estate managernenl rok, currenlty Mi R F De Robeck, day lo day management delegated to the estates managing agent$. John G Hills & Partners. working wth other professional athisors. No fomal IralnirYJ is given to the tnjslees but recruitment is onty made from those who gjpput the charity's objectives and are considered well qualified to contribute to f(s work. All trustees gNe their time fredy and no truslee remungration vrds in the year,
THE JOHN STRUTT MEMORIAL FOUNDATION TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 The trustees. report was 8pwived by Ihe Board of Twstees. Mr R F de Robeck Trustee Dated.. 9 Decembgr 2022
THE JOHN STRUTT MEMORIAL FOUNDATION INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE JOHN STRUTT MEMORIAL FOUNDATION I report lo the trustees on my examination of the financial statements of The John Strutt Memorfal Foundation Ilhe eharilyl for the year ended 31 March 2022. ReJponslbllltles and basls of réport As the Irusleès of the charity land a150118 dlractors for the purposes of company lawl you are responslble for the preparaon of the financial 8t8lemen18 In accordanGo th tho requlremenls of the Companles Act 20C6 Ilhe 2006 Having satisfied my$alf that the financial slalemenls of the charity are not requlred to be 8udil*JJ under Part 16 01 the 2006 Act and are eligible for independent examlnalion, I report in re$p8cl of my examination of th& charity's financial slalemenls carTiod gul under 8eclion 145 of th¢ Charftle8 Act 2011 (the 2011 Acll. In carrylng out my examination I have followed 811 th& appli¢able Directs'on5 glven by the Charity Commission under Section 14515llbl of th& 2011 A¢t. Ind•p•nd•nt oxomln•rf• •tat•m•nt I hove completed my gxominallon. I conflm Ihal no matters hav¢ come lo my attention in connectlon wlh the examinaOn giving me cause lo belleve that in any matedal re8pecl'. accounlln9 records were not kept In re8pacI of the charity as required by 8ecllon 388 of the 2008 Act.. or the financial statements do not a¢¢ord wlh those records., or the financial 8laleTnenls do not ¢omply with the accounting roqulremenl8 of sectlon 396 of the 2006 Act oth&r than any r¢quiremenl that the accounts give a true and fair view whi¢h Is not a matter consider8d 88 part ol an indepgndenl examination., or th8 flnanclal 8lalemenls have not been prepar¢d In ae¢ordance wlh the m¢lhods and pdnclples of th• Slalemenl of Recomrngnd•d Practlce for accounting and reporting by charities appli¢8ble lo chari1188 pr¢paring their accounts in accordanc8 the Flnanclal Rgportlng Sland8rd appllcable In the UK ar Republlc of Ireland IFRS 1021. Ihav 8h no concerns and have ome acro89 no other maller5 in connèction with the examinatlon lo whSch att8nllon be drawn in thi5 repert in o r lo enable a proper underslandlng of the financial sl818menls lo be feachgd. Sama tha Ralnbow FCA Kenneth Easby Limrted Accounlanls Oak House, Market Place Bedale North Yorkghir8 DL8 1AQ 08ted'. 9 December 2022
THE JOHN STRurr MEMORIAL FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOMEAND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022 Unrestrlcted Unrestricted funds funds 2022 2021 Notes Donations and Core Grants Inveslrnenls 8,000 87,022 9,669 60,686 Totsl Income 95,022 70,355 Raising funds 86.088 60,332 Charitsble actiwti'es 10,054 8.724 Total resoUe5 exp¢nded 96,142 69.056 Net gainslllosses} on irwestmerts 770,000 118.218 Net Income for th• yoarl Net movement In funds 768.880 119.517 Fund balances at 1 April 2021 3,626.234 3.506,717 Fund balancos at 31 March 2022 4.395,114 3,626,234 The statement of finanaal activities indudes 811 gains and losses recognised in the year. All income and expenditure derive from continuing actyvitses. The statement of finanual acliwtses also )mplIeS with the requirements for an inc8 and expenditure account Lmder the CompaniesAct 20C6.
THE JOHN STRUTT MEMORIAL FOUNDATION BALANCE SHEET ASAT31 MARCH2022 2022 2021 Flxed assots Investment propert168 10 4.400.000 3.830.000 ¢urr•nt 4U•t• Debtors Cash al bank and in hand 11 4.334 113.106 6.846 157.637 117.440 164.483 Crodltorn.. amounts lalllng du• wbthln ono y•ar 12 1122.326) 112.2491 Net current {1obllrtl¢$}1888ets {4,8881 152.234 Tot414svts l••• curront Ilabllmos 4.395,114 3,782,234 Cr•dltors', amounts fallln9 du• 4ft•r morn than one y••r 13 1156,000} Nol ai•ets 4.395.114 3,628,234 Income fund¥ Unfe8tricted funds 4.395,114 3,626,234 4,395.114 3,626,234 The company Is •ntilled lo the exempts.on from the audrt roquiremenl containad in seclion 477 of the Companies Act 2006, for the yoar ended 31 March 2022. Tho directors acknovAedge their responbililio8 for C4xnp'n9 lth the requirements of the Comp8rM¢$ Act 2008 Yth ro$pect lo accounting records and Ihe prepw8ts.on of finanogl Stalemerts. The member8 have not required the company lo obtsln an audit of rts ffinanoal 81atement8 for the yeaT in quo$1ion In accordance *lih section 476. The8e finandal stalem•nls have begn prepared in accordance with the provisicffls applicablo lo ¢ompanie8 8ubject to the small companies Tegime. Thè financial statement8 were approved by the Truslees on 9 December 2022 Mr R F de Robed( Truste• Company rggl¥tratlon number 07996550
THE JOHN STRUTT MEMORIAL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accountlng pollcles Charlty Infomiatlon The John Strutt Memorial Foundth'on is a private company limited by guarantee Incorporated in Engnd and Wales. The registered office is John G Hills, The Eslale Office, Leybum. North Yorkshire, DL8 SEW. 1.1 Accoyntlng conv•ntlon The finanaal st8lement8 have been prepared in accordance with the charity's Memorandum and Artic5 of Association, the Companies Act 2006, FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. I'FRS 1021 and the Charities SORP "Accounting and Reporting by Charities.. Slalemenl of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102)" leffeclive 1 January 2019}. The charity is a Public Benefit Entity as defined by FRS 102. The tharjty has taken advantage of the provisions in the SORP for charities not lo prepare a Statent of Cash Flows. The financial statements are prepaied in sterfing. which is the functional currency of the charity. Monetary amounts in these financial statements are rounded lo the noar$st £. The finanaal statements have beon prepared under the historbcal cost convention, modffied lo include the revaluation of investment pioperties at fair value. The principal accounting policies adopted are set out belvw. 1.2 Golng concern At the time of approving the financial slalemenls. the trustees have a reasonable expectation that the chadty has adequate resources lo corfnue in operational existence for the foreseeable future. Thus the Injslees continue lo adopt the golng concem basi8 of accounting in preparing the financial slalements. 1.3 Charltabl• funds Unrestrided funds Ire available for use 81 the discretion of the Iruslees in furtheran of their charitable obiectives. 1.4 Incomo Income is recognised when the charity is legally enlilled to it after any perforrnance condits'ons have been mel, the amounts tan be measured reliably. and il is probable that incomo will be received. Cash donations are recognised on reIPl. Other donations are recognised onee the charity has been notffied of the donats'on, unless performance Conditions require deferral of the amount. Income lax reVerable in relation lo donation$ received under Giftmd or deeds of covenant is recognised at the limg of the donation. Grant income is recognised when receNable except %then the donor imposes conditions whith have yel to be fijlfilled before the charity bKomes entitled to use such income. Investment income, in the fomi of investment dividends and rentsl income. 1$ wognl8ed when receivable by the charity. 1.5 Exp8ndlturn Ro$our¢e$ expended are included in the Statement of Financial Activities on an accruals basis. inclusive of any VAT which cannot be recovered. Expenditure on raising funds rgpresonl those costs 8880uatgd generating the investment incomè.
THE JOHN STRUTT MEMORIAL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Accountlng policies (Conunued) 1.6 Inve¥tmont propèrtles Investment property, which is property held lo eam rentals andlor for capital appreciation, is initially recognisod al cost. which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value al the reports'ng end date. The surplus or deficit on revaluation is recognised in profit or loss. Donatlons and Core Grants Unrestrlct8d Unrestricted funds funds 2022 2021 Govèmment COVID Support Grants 8,000 9,669 Inv•stments UnrtrICted unstriCted funds funds 2022 2021 Rental income 87.022 80,686 Raising funds Unrestrlcted funds Total 2022 2021 Invoslmenl propety running costs Investment propety management fees Investment propety repairs Finance costs 29,071 14,386 37,288 5,343 25,607 17,777 10.524 6,424 86,088 60.332
THE JOHN STRUTT MEMORIAL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Charitabl• actlvltl 2022 2021 Grant funding of acltvrttes (see note 61 Support eo8ts 1,500 8,554 8.724 10.054 8,724 Support costs include amounts payable in relalion lo the independent examinalk*n of £1.60012021'. £1,500) and £2,66012021'. £3,000) in relation to aetountancy seNices prowd&J. Grnnts payabl• 2022 2021 Grants lo insts'tutions: The John Strutt Centr¢ for P8rTot Conw¥ation 1,500 Tru•ts None of the trustee8 lor any person8 connected them) r1Ved any remuneration dUrfr the year. One IruJl•• was reimbur expenses of £7712021- £nill. Employ••• The average monlhty number of employees rfjn9 the year was.. 2022 Number 2021 Numb•r Total There V•pro no employees whose annual remuneration was more than £60,000. Net galnsl(lossesl on Investments Unr•$trict•d Unrestricted funds funds 2022 2021 Rovalualion of investment properties Gainllloss) sde of investment properties 770.000 123,218 {5,0001 770,000 118,218 10-
THE JOHN STRUTT MEMORIAL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 10 Investment property 2022 Fair value At 1 April 2021 and 31 March 2022 4,400,000 Full valuations were undertaken of all properties by ART & Associates. an independent RICS registered valuer, in 2018 after the properties were gifted lo the charity. These values have been updated by the valuer as at 31 March 2022 to reflect Ihg lalesl comparable market data. The fair values are most sensitive lo omparable market prices in the l¢xal area. 11 Debtors 2022 2021 Amounts falling due within one year: Othei debtors Prepayments and accruod in¢orn8 1,212 3,122 532 6,314 4.334 6.848 12 Creditors: amounts talllng due wlthln one year 2022 2021 Borrowngs Trade creditors Other creditors Accruals and deferred income 100.000 1.193 1.830 21.133 10,418 122.326 12.249 13 Crodltors: amounts falllng due aftèr morè than one yaar 2022 2021 Borrowngs 156,000 14 Loans and overdrafts 2022 2021 Other loans 100,000 156,000 Payable smlhin one ye8r Payable after one year 100,000 158,000
THE JOHN STRUTT MEMORIAL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 14 Loans and overdrafts {Contlnuedl Induded wlhin borro¥Mngs is a loan from The Arthur Strutt Teslamenlary Trust. The loan is secured by a fixod charge over one of the charity's investment properties. Under the loan agreement the remaining outstanding capital is due for repayment in August 2022. The Trustees of The Arthur Strutt Tegtamenlary Trust have agreed this will be exiended to August 2024 and the agreement is lo be amended accordingly. 15 Rélatèd party transactlons Transactions viith related parti During the year the charity enlergd into the ft)Il¢)wing transaGlions wlh related parties.. The charity incurred legal fees of £3,963 12021.. £7.1451 lo Mccormicks so1110T5, a fimi in which Mr PeleT McGorrnick OBE, trustee, is a partner. Al the year end there was an amount owed to Mccormicks Solicitors of £nil12021.' £125}. The charity incurred management fges and expenses of £18,27212021.. £22.0011 to J G Hills, a firm in which Mr Richard de Robeck, a trustee, is a partner. At the year end there was an amount owed lo J G Hills of £1,19312021-. £1,972). The charrty has a loan from The Arthur Strutt Teslamenlary Trust. a tru81 in which Mr Richard do Robeck, a trustee, Is also a trustee. Al Ihg year end thg outstanding balance was £100,00012021'. £156,000). Details of the loan are induded in Note 14. 12-