Registered number: 08208048 Charity number: 1149240
Harris (Belmont) Charity
Trustees’ report and financial statements for the year ended 31 March 2023
Harris (Belmont) Charity
| Page | |
|---|---|
| Reference and administrative details of the charity, its trustees and advisers | 1 |
| Trustees' report | 2 - 7 |
| Independent auditors' report on the financial statements | 8 - 11 |
| Consolidated statement of financial activities | 12 |
| Consolidated balance sheet | 13 |
| Charity balance sheet | 14 |
| Consolidated statement of cash flows | 15 |
| Notes to the financial statements | 16 - 36 |
Harris (Belmont) Charity
Reference and administrative details of the charity, its trustees and advisers
| Trustees | The Lord Colgrain, Chairman |
|---|---|
| A Mathewson | |
| Lady Jessel | |
| A J S Ross | |
| D M Del Mar | |
| J A Stainton | |
| Company number | 08208048 |
| Charity number | 1149240 |
| Registered office | Well Close Square |
| Framlingham | |
| Suffolk | |
| IP13 9DU | |
| Principal operating office | Belmont Park |
| Throwley | |
| Faversham | |
| Kent | |
| ME13 0HH | |
| Chief executive officer | Henry Birch & Sally Watts of Clarke Simpson (Chartered Surveyors) |
| Independent auditors | Chavereys Audit Limited |
| The Goods Shed | |
| Jubilee Way | |
| Faversham | |
| Kent | |
| ME13 8GD | |
| Accountants | Chavereys Chartered Accountants |
| The Goods Shed | |
| Jubilee Way | |
| Faversham | |
| Kent | |
| ME13 8GD | |
| Bankers | Coutts & Co |
| 440 Strand | |
| London | |
| WC2R 0QS | |
| Solicitors | Hewitsons LLP |
| Shakespeare House | |
| 42 Newmarket Road | |
| Cambridge | |
| CB5 8EP | |
| Investment advisers | Schroder & Co Limited (Cazenove Capital) |
| 1 London Wall Place | |
| London | |
| EC2Y 5AU | |
| Property consultants | Clarke & Simpson |
| Well Close Square | |
| Framlingham | |
| Suffolk | |
| IP13 9DU |
1
Harris (Belmont) Charity
Trustee’s report for the year ended 31 March 2023
The Trustees (who are the Directors for Companies Act purposes) present their annual report and financial statements for Harris (Belmont) Charity (the Charity) for the year ended 31 March 2023 which are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes.
The financial statements have been prepared in accordance with the accounting polices set out in note 2 to the accounts, the Charity’s governing document, the Charities Act 2011, the Companies Act 2006 and the 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).
Since the Charity 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.
Policies and objectives
The Harris (Belmont) Charity was established in 1980 and is responsible for all aspects of the House and the wider estate at Belmont.
The Trustees’ objectives are derived from the Original Trust Deed (1980), the Memorandum and Articles of Association (2012), and the Harris family’s wishes. To meet these objectives, the Trustees set out to achieve the following: -
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To preserve and maintain Belmont House, its contents, gardens, and the surrounding land. Where appropriate, this may include acquiring adjacent land or properties, either as investments or to preserve the integrity of the estate, reflecting 6[th] Lord Harris’s view that “with all the building programmes now being envisaged in the South, I think to preserve the estate would be in everybody’s interest …”
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To provide access to the House and gardens for the education, enjoyment, and benefit of the public
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That Belmont should take its place and serve a purpose in both local community and the county of Kent
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That when there is surplus income, this can be used to support grass roots cricket in the county of Kent (in memory of 4[th] Lord Harris) or other local causes the Trustees deem appropriate to Belmont
Whilst these objectives are very long term in nature, this report details what the Trustees have done to meet the objectives during 2023.
In the exercise of its powers to that end, the Charity has paid due regard to the published guidance from the Charity Commission on the operation of the Public Benefit requirement under the Charities Act 2011.
Strategies for achieving objectives
Managing the House, its grounds and opening to the public
The House was completed in its current form in 1793 and is one of the finest examples of the architectural work of Samuel Wyatt. The grounds have been evolved by the family over time and as a Millennium Project, the Trustees invited Arabella Lennox- Boyd to create a new kitchen garden which was implemented by the Belmont Garden staff.
The Trustees employ 12 full time members of staff to look after and maintain the House and Grounds and employ a part-time archivist.
Events are organised throughout the year and promoted on the website, social media, specialist magazines and the local press to reach our target audience. These include The Spring Fair, Woodfest, plant shows, open garden events, garden tours, open air theatre productions, specialist clock tours, craft workshops and other bespoke tours.
The House is accessed by guided tours staffed by volunteers; these guides educate visitors on the importance of Belmont and its place in British history and life.
2
Harris (Belmont) Charity
Trustee’s report for the year ended 31 March 2023
Preserving and displaying the House, its clocks, pictures, and other chattels
There is an ongoing programme of repair and refurbishment to the property and its content at Belmont. These are agreed and prioritised by the Trustees. Room displays within Belmont House enhance the visitor experience, informing and educating visitors in new and stimulating ways. These displays are reviewed annually and are constantly developed and improved.
There are many remarkable items in the contents of the House, but the most significant is the clock collection. The 5[th] Lord Harris was the founding president of the Antiquarian Horological Society and is described by Jonathan Betts, our Curatorial Adviser, as “one of the twentieth century’s great horological celebrities”.
The Farm
The farming of the Estate is carried out by Belnor Farms Limited, the Charity's subsidiary, which farms 2,000 acres of land in hand, comprising mostly combinable crops (wheat, oil seed rape, beans, peas and spring barley) along with fallow land, downland grass meadows, parkland and orchards - combining commercial farming with best practice through environmental stewardship.
Managing the assets
The Trustees’ ability to achieve the Charity’s aims is dependent on the performance of the Charity’s core assets – rental property, farming & forestry operations, the investment portfolio and visitor revenue.
The farming (2,000 acres), woodland (704 acres), properties, other tenanted land (298 acres) and investment assets need to justify themselves financially. This is less true of the House and gardens which whilst the Trustees aim to make a return on these assets, ultimately it is a central purpose of the Trust to provide access to the House and the estate. It is also inconceivable that visitor revenue will cover the costs of maintaining Belmont House and opening it to the public without a contribution from the other income sources.
Achievements and performance
Review of activities
House, its grounds and opening to the public
Visitor numbers during the year were in excess of 18,120 a discernible increase as a result of Belmont hosting the Antiques Roadshow in August 2022.
The events manager has continued to organise a varied and full programme of open air theatre events (Teddy Bears Picnic, Othello and Cinderella), numerous workshops and meet the Head Gardner tours. The monthly clock tours hosted by Jonathan Betts, the clock curator continue to be well attended. The season culminated with the annual Woodfest weekend in September.
Investment expenditure on the House and gardens this year included refurbishment of the sunken greenhouses £20,000, installation of fibre optics cabling £10,000 to the House and investment into an online ticket sales facility on the website. The Trustees continue to work with Kent Women’s cricket with the provision of the cricket pitch for tournament games.
During the year the tour for viewing the House was adapted so that visitors can guide themselves through the display rooms on Tuesdays and Thursday afternoons. The visitor feedback is that this is a well-received alternative to the Guided Tour which is still available on Wednesdays and Sundays.
3
Harris (Belmont) Charity
Trustee’s report for the year ended 31 March 2023
The Farm
Revenue from farm activities was significantly higher than the previous year, due to a good harvest despite the drought conditions of summer 2022 coupled with a spike in commodity prices caused in large part by the tragic events unfolding in Ukraine. Revenue for the farming year was £1,199,772 (2022 £834,439), which delivered a profit of £309,486. A payment of £269,466 will be made to the charity in December. This performance is unlikely to be repeated in the coming year with commodity prices having fallen significantly.
Rental property
Rental property continued to provide a significant proportion of the Charities income and there was an increase in rents of 7% over the previous year. However property maintenance on the Estate houses and cottages remains a significant area of expenditure and will be ongoing; cottages on the estate are externally redecorated by rotation every 5 years.
Investment portfolio
The Trustees are satisfied with the performance of the investment portfolio which provided an important contribution to the Charities income in the year. Investment income increased by 13% over the previous year.
The Trustees interviewed three firms of accountants in January 2023 and appointed Chavereys of Faversham to take over the accountancy and auditing work.
Financial Review
Financial performance and position
Income has increased by 28% compared to the prior year. Expenditure however has also increased significantly with an increase of 11% compared to 2022. This has resulted in a net surplus before investment losses of £228,508 (2022 – loss £38,649).
The performance of the investment portfolio (including investment properties) on paper was disappointing, with net losses on investments totalling £1,011,886. However this is in part attributable to a change in the basis of the valuation of the investment property portfolio and the book loss on the investment portfolio is considered to be a reflection of the cyclical nature of the stock market and does not represent a permanent diminution in value of the investments.
Overall there has been a decrease of £783,378 (2022- increase £3,408,895) in the net assets of the Charity, which nonetheless remains in a strong financial position to meet the challenges of future years.
Reserves policy
For long term planning, the Trustees estimate an average annual surplus based on the experience of previous years which, together with an element of capital withdrawal from the investment portfolio, is available for projects to maintain and enhance the house and estate, or charitable donations. The Trustees have a 5-year strategy for that expenditure, for which they draw on the advice of several external experts.
The Trustees hold designated funds which represent its heritage and investment assets (listed investments and property portfolio of farmland and cottages). Belmont House and grounds and its collection serve the main charitable purpose of the Charity and the investment assets provide the income required to manage the estate as the Trustees do not actively fundraise for the Charity, therefore these funds do not form part of the free reserves of the Charity.
4
Harris (Belmont) Charity
Trustee’s report for the year ended 31 March 2023
The Trustees consider a balance equivalent to 6 months’ worth of operating costs for the Charity is the minimum balance to hold in reserves, this figure is currently around £500,000. The financial statements show a free reserves balance of £1,382,140 (2022: £1,069,650). However since the Charity is in the main dependent upon its own resources rather than seeking funding from the government or general public for its continuing existence a conservative policy of maintaining reserves in excess of the minimum level is considered prudent to enable the Charity to meet any unexpected liabilities as they fall due.
Principal sources of funding
Continues to come from residential property, commercial property, farming profits and income from the investment portfolio. The Charity runs events that are attended by the general public but as the above sources of funding provide the income required to manage the Estate, the Charity does not actively fundraise from the general public.
Investment Powers
The investment policy is to be prudent as regards risk and to maintain the capital value of the portfolio whilst providing a significant level of income to the Charity.
Risk Management
The Trustees have conducted their own review of the major risks to which the Charity is exposed, and systems have been established to mitigate those potential risks. Procedures have been put in place to minimise both external and internal risks and these procedures are periodically reviewed to ensure that they still meet the needs of the Charity.
Plans for future periods
A rolling programme of investment and expenditure is being established in collaboration with advisers. The Trustees are actively involved in identifying a firm of architects to refurbish the tearoom and courtyard area for visitors
The primary objectives for the financial year to 31 March 2024 include agreeing a design for the tearoom and courtyard so that work can commence during 2024 with the new tearoom being opened for the 2025 season. The events programme will be maintained and enhanced, work will continue with the chattels’ conservation programme in the House to identify paintings and clocks on an annual basis that require conservation work.
Structure, governance and management
Constitution
The Charity is registered as a Charitable Company limited by guarantee and is constituted under its Memorandum of Association dated 10 September 2012 and is a registered charity, number 1149240.
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.
Management of the charity
The Trustees meet regularly and are actively involved with the operation of the Charity. The Trustees delegate the day to day running of the Charity and its farming subsidiary to the Executive Officers (Clarke and Simpson, Agents to the Trustees). The Charity employs specialist professional advisors who assist both on a day to day and a periodic basis.
5
Harris (Belmont) Charity
Trustee’s report for the year ended 31 March 2023
Method of appointment or election of trustees
The Trustees of the Charity have powers to appoint a new Trustee. The number of Trustees shall be not less than three but no more than seven. Potential candidates are identified, and their suitability assessed by the existing Trustees. New Trustees are required to be able to demonstrate the appropriate skills and experience necessary to be a Custodian of Belmont. Trustees are re-elected after 5 years should they wish to remain in the position; after 10 years of service, should they wish to remain, Trustees must demonstrate the skills that they are bringing to the post.
Induction and training of Trustees
New Trustees are provided with an information pack which includes copies of the Memorandum of Association, the Financial Accounts and other relevant documentation.
Pay policy for Senior Staff
The agreement with Clarke & Simpson is reviewed on a regular basis and is bench marked against charges by other similar agents.
Statement of Trustees’ responsibilities
The Trustees (who are also directors of Harris (Belmont) Charity 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 state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in operation.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group's transactions and disclose with reasonable accuracy at any time the financial position of the charitable group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to the auditors
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
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so far as that Trustee is aware, there is no relevant audit information of which the Charity's auditors are unaware, and
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that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any information needed by the Charity's auditors in connection with preparing their report and to establish that the Charity's auditors are aware of that information.
6
Harris (Belmont) Charity
Trustee’s report for the year ended 31 March 2023
Approved by order of the members of the board of Trustees and signed on their behalf by:
The Lord Colgrain, Chairman Trustee Date: 12 October 2023
7
Harris (Belmont) Charity
Independent auditors' report to the members of Harris (Belmont) Charity
Opinion
We have audited the financial statements of Harris (Belmont) Charity (the 'parent charitable company') and its subsidiaries (the “group”) for the year ended 31 March 2023, which comprise the consolidated statement of financial activities, the consolidated balance sheet, the charity balance sheet, the consolidated statement of cashflows 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 Group's and of the parent charitable company’s affairs as at 31 March 2023 and of the Group’s incoming resources, including income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.
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 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 group'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 trustee’s with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our 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.
8
Harris (Belmont) Charity
Independent auditors' report to the members of Harris (Belmont) Charity (continued)
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the trustees’ report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
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the trustees' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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the parent charitable company has not adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the parent charitable company financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ examinations in preparing the trustees’ report and from the requirement to prepare a strategic report.
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 group’s and the parent 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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
9
Harris (Belmont) Charity
Independent auditors' report to the members of Harris (Belmont) Charity (continued)
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:
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identification of the laws and regulations which were significant in the context of the Group through discussions with Trustees and other management, and from our commercial knowledge and experience of the charity sector;
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we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements, including the Charities Act 2011, Companies Act 2006, and taxation legislation; and
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we obtained an understanding of the Group’s policies and procedures on compliance with laws and regulations, including documentation of any instances of non-compliance.
We assessed the susceptibility of the Group and parent Charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
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making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
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considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of fraud through management bias and override of controls. In addressing the risk of fraud through management bias and override of controls, we;
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tested the appropriateness of a sample of journal entries and other adjustments;
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designed procedures to identify unexpected and unusual journal entries and performed testing to confirm the validity of such postings;
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assessed whether the significant accounting judgements and estimates made in the financial statements, as detailed in the principal accounting policies, were indicative of potential bias; and
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evaluated the business rationale of any significant transactions that were unusual or outside the 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:
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agreeing financial statement disclosures to underlying supporting documentation;
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reading the minutes of meetings of those charged with governance; and
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enquiring of management as to 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.
10
Harris (Belmont) Charity
Independent auditors' report to the members of Harris (Belmont) Charity (continued)
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.
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, and to the charitable company’s trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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.
Iain Morris (senior statutory auditor) for and on behalf of
Chavereys Audit Limited Chartered Accountants and Statutory Auditors Faversham Date: 12 October 2023
11
Harris (Belmont) Charity
Consolidated statement of financial activities (incorporating income and expenditure account)
for the year ended 31 March 2023
| or the year ended 31 March 2023 | ||||
|---|---|---|---|---|
| Note Income from Charitable activities 4 Other trading activities 5 Investments 6 Other income 7 Total income Expenditure on: Raising funds 8 Charitable activities 9 Total expenditure Net income before net losses on investments Net losses on investments 16 Net movement in funds before other recognised gains Gains on revaluation of fixed assets 14 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted Funds 2023 £ 95,102 1,329,719 531,900 32,233 1,988,954 942,264 818,182 1,760,446 228,508 (1,011,886) (783,378) - (783,378) 51,432,619 (783,378) 50,649,241 |
Total funds 2023 £ 95,102 1,329,719 531,900 32,233 1,988,954 942,264 818,182 1,760,446 228,508 (1,011,886) (783,378) - (783,378) 51,432,619 (783,378) 50,649,241 |
Total funds 2022 £ 66,443 991,371 487,326 10,519 |
|
| 1,553,659 | ||||
| 754,139 838,169 |
||||
| 1,592,308 | ||||
| (38,649) 1,998,544 |
||||
| 1,959,895 1,449,000 |
||||
| 3,408,895 | ||||
| 48,023,724 3,408,895 |
||||
| 51,432,619 |
12
Harris (Belmont) Charity Registered number:08208048
Consolidated balance sheet as at 31 March 2023
| Note Fixed assets Tangible assets 14 Heritage assets 15 Investments 16 Current assets Stocks 17 Debtors: amounts falling due within one year 18 Cash at bank and in hand 23 Creditors: amounts falling due within one year 19 Net current assets Total net assets Charity funds Unrestricted funds 20 |
524,267 211,119 731,165 |
2023 £ 19,915,527 3,834,388 25,781,020 |
347,593 405,227 399,584 |
2022 £ 19,880,667 3,834,388 26,810,274 |
|---|---|---|---|---|
| 49,530,935 1,118,306 |
50,525,329 907,290 |
|||
| 1,466,551 (348,245) |
1,152,404 (245,114) |
|||
| 50,649,241 | 51,432,619 | |||
| 50,649,241 |
51,432,619 | |||
50,649,241 |
51,432,619 |
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 provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The Lord Colgrain
Trustee
Date: 12 October 2023
The notes on pages 16 to 36 form part of these financial statements.
13
Harris (Belmont) Charity Registered number:08208048
Charity balance sheet as at 31 March 2023
| Note Fixed assets Tangible assets 14 Heritage assets 15 Investments 16 Current assets Stocks 17 Debtors: amounts falling due within one year 18 Cash at bank and in hand Creditors: amounts falling due within one year 19 Net current assets Total net assets Charity funds Unrestricted funds 20 |
1,851 728,113 421,368 |
2023 £ 19,651,693 3,834,388 26,112,849 |
782 626,481 339,135 |
2022 £ 19,663,165 3,834,388 27,102,083 |
|---|---|---|---|---|
| 50,599,636 832,983 |
||||
| 1,151,332 (101,021) |
956,398 (123,415) |
|||
| 51,432,619 | ||||
| 51,432,619 | ||||
| 51,432,619 |
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 provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The Lord Colgrain Trustee
Date: 12 October 2023
The notes on pages 16 to 36 form part of these financial statements.
14
Harris (Belmont) Charity
Consolidated statement of cash flows for the year ended 31 March 2023
| Note Cash flows from operating activities Net cash generated in operating activities 22 Cash flows from investing activities Dividends, interests and rents from investments Purchase of tangible fixed assets Proceeds from sale of investments Purchase of investments Net cash provided by investing activities Change in cash and cash equivalents in the year 24 Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 23 |
2023 £ (148,449) 531,900 (69,239) 2,674,785 (2,657,416) 480,030 331,581 399,584 731,165 |
2022 £ (694,347) 487,326 (196,000) 4,936,933 (4,892,899) 335,360 (358,987) 758,571 _399,584 _ |
|---|---|---|
The notes on pages 16 to 36 form part of these financial statements.
15
Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
1. General information
Harris (Belmont) Charity is a company incorporated in England and Wales. The address of the registered office is given on the company information page. The nature of the company's operations and its principal activities are set out in the trustees’ report on pages 2 to 7.
These financial statements are presented in pound sterling because that is the currency of the primary economic environment in which the company operates.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS102)-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 (FRS102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Harris (Belmont) Charity meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.
The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.
The following principal accounting policies have been applied:
2.2 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.
2.3 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 Group 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.
16
Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
2. Accounting policies (continued)
2.4 Income
All income is recognised once the Group has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income from other trading activities comprise farming activities, gift shop/tearoom sales, holiday cottage income and renewable heat incentive income. Income from farming activities is recognised in the period when the crop is sold. Holiday cottage income is recognised in the period when the cottage is let. Remaining income is recognised on receipt.
Income from investments comprise rental property income, investment portfolio income and interest receivable. Investment income is recognised on a receivable basis.
Income from charitable activities comprise admission fees from visitors to the House and grounds and other events held and are recognised on the date of admission or when the event is held.
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
Interest on funds held on deposit Is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank
2.5 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.
Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. It also includes the cost of generating funds and these comprise the costs associated with attracting voluntary income and the costs associated with running the giftshop and the farm. Support costs are those costs incurred directly in support of the expenditure on the objects of the company and include project management carried out at Headquarters.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs. Governance costs relate to professional fees and trustees' expenses.
All expenditure is inclusive of irrecoverable VAT.
2.6 Going concern
The trustees have reviewed the budgets and forecasts for a period of twelve months from approval of these financial statements. The trustees have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.
17
Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
2. Accounting policies (continued)
2.7 Government grants
Government grants are credited to the Consolidated Statement of Financial Activities as the related expenditure is incurred.
2.8 Tangible fixed assets
Land and buildings
Land is stated at valuation and is not depreciated.
Belmont House and grounds
Subsequent additions to Belmont House and grounds representing improvements to the property are depreciated over 10 years. General repairs and maintenance expenditure is written off in the year to which it relates. It also includes improvements to property through the trading subsidiary, which is also depreciated over 10 years.
Other fixed assets
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment.
Assets in the course of construction are included at costs incurred to date. Depreciation on these assets is not charged until they are brought into use.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives are as follows:
Plant and machinery - Between 3 and 20 years
2.9 Heritage assets
These are those fixed assets which are of historical significance and are held in order to advance the preservation and conservation objectives of the Charity. As such, they comprise Belmont House and grounds, which is carried at the original cost or valuation when it was transferred to the Charity, and The Belmont House Collection which comprises the contents of Belmont House, being works of art, paintings, furniture and other chattels together with a collection of clocks and watches which are deemed to be of historic or artistic importance.
In accordance with the SORP, heritage assets are not depreciated, as the Trustees consider that the lives of these assets are sufficiently long and residual values, based on prices prevailing at the time of acquisition or subsequent valuation, are sufficiently high that their depreciation is insignificant. Impairment reviews for all heritage assets are undertaken whenever there is evidence that the value of the underlying assets may be less than their carrying amounts in the accounts.
18
Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
2. Accounting policies (continued)
2.10 Investment properties
Investment property is carried at fair value. Revaluation surpluses are recognised in the Statement of Financial Activities.
2.11 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 Consolidated Statement of Financial Activities.
Investments in subsidiaries are valued at net book value.
2.12 Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
2.13 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.
2.14 Cash and cash equivalents
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.
2.15 Liabilities and provisions
Liabilities 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 Group anticipates it will pay to settle the debtor 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 Consolidated Statement of Financial Activities as a finance cost.
2.16 Financial instruments
The Group 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.
19
Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
2. Accounting policies (continued)
2.17 Pensions
The Group makes contributions to various money-purchase schemes.
The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.
2.15 Provisions for liabilities
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the balance sheet.
3. Judgments in applying accounting policies and key sources of estimation uncertainty
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Investment properties
Investment properties are included in the Balance Sheet at their open market value in accordance with FRS102 and are not depreciated. This treatment is contrary to the Companies Act 2006 which states that fixed assets should be depreciated but is, in the opinion of the Trustees, necessary in order to give a true and fair view of the financial position of the Company and the Group.
20
Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
4. Income from charitable activities
| Admissions and events TOTAL 2022 |
Unrestricted funds 2023 £ 95,102 64,443 |
Total funds Total funds 2023 2022 £ £ 95,102 64,443 64,443 |
|---|---|---|
| 5. Income from other trading activities Income from fundraising events Shop and tea room income Holiday cottage rent Other income TOTAL 2022 Income from other trading activities Farming TOTAL 2022 |
Unrestricted funds 2023 £ 32,860 41,643 9,727 84,230 97,682 Unrestricted funds 2023 £ 1,245,489 893,689 |
Total funds 2023 £ 32,860 41,643 9,727 84,230 97,682 Total funds 2023 £ 1,245,489 893,689 |
Total funds 2022 £ 11,519 43,259 _42,904 _ |
|---|---|---|---|
| _97,682 _ | |||
| Total funds 2022 £ 893,689 |
|||
21
Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
6. Investment income
| Estate rents Listed investments Interest receivable TOTAL 2022 |
Unrestricted funds 2023 £ 416,374 113,200 2,326 531,900 487,326 |
Total funds 2023 £ 416,374 113,200 2,326 531,900 487,326 |
Total funds 2022 £ 387,502 99,716 108 |
|---|---|---|---|
| 487,326 | |||
7. Other incoming resources
| Government grants receivable TOTAL 2022 |
Unrestricted funds 2023 £ 32,233 10,519 |
Total funds Total funds 2023 2022 £ £ 32,233 10,519 10,519 |
|---|---|---|
Government grants receivable includes amounts receivable under the Renewable Heat Incentive scheme (RHI).
8. Expenditure on raising funds
Costs of raising voluntary income
| Shop and tea room purchases Event costs Holiday cottage costs Postage, stationery and advertising Subscriptions Management fees TOTAL 2022 |
Unrestricted funds 2023 £ 18,341 17,459 23,299 17,489 6,777 15,255 98,620 123,170 |
Total funds 2023 £ 18,341 17,459 23,299 17,489 6,777 15,255 98,620 123,170 |
Total funds 2022 £ 17,371 20,311 40,583 15,533 5,465 23,907 |
|---|---|---|---|
| 123,170 | |||
22
Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
8. Expenditure on raising funds (continued)
| Fundraising trading expenses Farming trading expenditure TOTAL 2022 Investment management costs Investment management fees TOTAL 2022 9. Analysis of expenditure on charitable activities Summary by fund type Belmont House and grounds Estate costs TOTAL 2022 |
Unrestricted funds 2023 £ 805,597 586,935 Unrestricted funds 2023 £ 38,047 44,034 Unrestricted funds 2023 £ 438,388 379,794 818,182 838,169 |
Total funds 2023 £ 805,597 586,935 Total funds 2023 £ 38,047 44,034 Total funds 2023 £ 438,388 379,794 818,182 838,169 |
Total funds 2022 £ 586,935 |
|---|---|---|---|
| Total funds 2022 £ _44,034 _ |
|||
| Total funds 2022 £ 509,589 328,580 |
|||
| 838,169 | |||
23
Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
10. Analysis of expenditure on charitable activities
| Belmont House and grounds Estate costs TOTAL 2022 Analysis of direct costs |
Activities Undertaken directly 2023 £ 366,591 359,661 726,252 741,629 |
Support costs 2023 £ 71,797 20,133 91,930 96,540 |
Total funds 2023 £ 438,388 379,794 818,182 838,169 |
Total funds 2022 £ 509,589 328,580 |
|---|---|---|---|---|
| 838,169 | ||||
| Staff costs Equipment repairs Motor vehicle expenses Light and heat Insurance Property rates Repairs to property House restoration House opening Grounds and garden maintenance Woodland maintenance Depreciation TOTAL 2022 |
Belmont House and grounds 2023 £ 219,579 6,030 4,434 18,718 21,145 6,000 51,353 3,294 8,008 21,588 - 6,442 366,591 432,972 |
Estate costs 2023 £ 99,586 14,209 10,346 - 15,899 16,083 169,097 - - - 19,410 15,031 359,661 308,657 |
Total funds 2023 £ 319,165 20,239 14,780 18,718 37,044 22,083 220,450 3,294 8,008 21,588 19,410 21,473 726,252 741,629 |
Total funds 2022 £ 274,672 23,774 17,233 9,477 39,926 32,300 244,376 917 - 60,295 16,762 21,897 |
|---|---|---|---|---|
| 741,629 | ||||
24
Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
10. Analysis of expenditure on charitable activities (continued)
Analysis of support costs
| Belmont House and grounds 2023 £ Finance costs 4,533 Professional fees (governance costs) 47,494 Trustee expense (governance costs) 1,731 Telephone 17,667 Bad debts - Other costs 372 71,797 TOTAL 2022 76,617 |
Estate costs 2023 £ - 20,150 - - (17) - 20,133 19,923 |
Total funds 2023 £ 4,533 67,644 1,731 17,667 (17) 372 91,930 96,540 |
Total funds 2022 £ 3,473 71,980 5,623 14,794 - 670 |
|---|---|---|---|
| 96,540 | |||
11. Auditors’ remuneration
The auditors’ remuneration amounts to an auditor fee of £11,000 (2022 - £12,505), and non-audit services of £9,700 (2022 - £6,000).
12. Staff costs
| Wages and salaries Social security costs Defined contribution pension scheme |
Group 2023 £ 293,704 20,656 4,805 319,165 |
Group 2022 £ 255,209 16,989 2,474 274,672 |
Charity 2022 £ 293,704 20,656 4,805 319,165 |
Charity 2022 £ 255,209 16,989 2,474 |
|---|---|---|---|---|
| 274,672 |
25
Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
12. Staff costs (continued)
The average number of persons employed by the Charity during the year was as follows:
| Employees | Group 2023 No. Group 2022 No. 14 13 |
|---|---|
The key management personnel of the Charity comprise the Trustees and Clarke & Simpson who are considered part of key management. Fees were paid to Clarke & Simpson in the year totalling £85,968 (2022- £54,490) comprising £47,150 (2022 - £47,740) in relation to Harris (Belmont) charity and £38,818 (2022 - £7,200) in relation to Belnor Farms Limited.
13. Trustees’ remuneration and expenses
During the year, no Trustees received remuneration or other benefits (2022 - £nil).
During the year ended 31 March 2023, expenses totalling £365 were reimbursed or paid directly to 1 Trustee (2022 - £243 to 1 Trustee).
26
Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
| 14. Tangible fixed assets Group Freehold land £ Cost or valuation At 1 April 2022 19,489,000 Additions - Disposals - Revaluations - At 31 March 2023 19,489,000 Depreciation At 1 April 2022 - Charge for the period on owned assets - Charge for the period on leased of use assets - Disposals - At 31 March 2023 - Net book value At 31 March 2023 19,489,000 At 31 March 2022 19,489,000 |
Property improvements £ 995,261 42,004 - - 1,037,265 767,263 11,875 - - 779,138 258,127 227,998 |
Plant and machinery £ 524,003 27,235 - - 551,238 360,334 22,504 - - 382,838 168,400 163,669 |
Total £ 21,008,264 69,239 - - |
|---|---|---|---|
| 21,077,503 | |||
| 1,127,597 34,379 - - |
|||
| 1,161,976 | |||
| 19,915,527 | |||
| 19,880,667 |
27
Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
14. Tangible fixed assets
Charity
| Cost or valuation At 1 April 2022 Additions Disposals Revaluations At 31 March 2023 Depreciation At 1 April 2022 Charge for the period on owned assets Charge for the period on leased of use assets Disposals At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022 |
Freehold land £ 19,489,000 - - - 19,489,000 - - - - 19,489,000 19,489,000 |
Property improvements £ 311,3323 - - - 311,332 297,858 1,746 - - 299,604 11,728 13,474 |
Plant and machinery £ 472,928 10,000 - - 482,928 312,236 19,727 - - 331,963 150,965 160,691 |
Total £ 20,273,260 10,000 - - |
|---|---|---|---|---|
| 20,283,260 | ||||
| 610,094 21,473 - - |
||||
| 631,567 | ||||
| 19,651,693 | ||||
| 19,663,165 |
The freehold land was revalued at 31 March 2023, on a basis of market value, by qualified professional valuers working for Clarke & Simpson, acting in the capacity of independent valuers which valued the freehold land at £19.489m.
The revaluation model has been adopted and the trustees consider the valuation of the freehold land to be materially consistent with the net book value 31 March 2023.
If the historic cost basis of accounting has been used, the freehold land would have had a carrying value of £618K (2022 - £618K).
28
Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
15. Heritage assets
Assets recognised at cost
| Carrying value at 1 April 2022 Carrying value at 31 March 2023 2023 2022 £ £ Purchases Works of art - - Revaluations - - Total additions - - Heritage asset management policy |
Belmont House and grounds 2023 £ 489,482 489,482 2021 £ - - - |
Belmont House Collection 2023 £ 3,344,906 3,344,906 2020 £ - - - |
Total 2023 £ 3,834,388 |
|
|---|---|---|---|---|
| 3,834,388 | ||||
| 2019 £ - - - |
||||
The Charity holds in trust Belmont House and grounds, along with the house collection. National and international standards in the care of its collection are followed with every endeavour to protect and safeguard the collection in its care for future generations.
16. Fixed asset investments
Group
| Cost or valuation At 1 April 2022 Additions Disposals Revaluations At 31 March 2023 |
Listed investments £ 9,199,627 2,657,416 (2,536,267) (590,048) 8,730,728 |
Cash investments £ 229,671 - (191,899) - **37,772 ** |
Investment properties £ 17,380,976 - - (368,456) **17,012,520 ** |
Total £ 26,810,274 2,657,416 (2,728,166) (958,504) |
|---|---|---|---|---|
| 25,781,020 |
29
Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
16. Fixed asset investments (continued)
Charity
| Cost or valuation At 1 April 2022 Additions Disposals Revaluations At 31 March 2023 |
Share in group undertaking £ 291,809 - - 40,020 331,829 |
Listed investments £ 9,199,627 2,657,416 (2,536,267) (590,048) 8,730,728 |
Cash investments £ 229,671 - (191,899) - **37,772 ** |
Investment properties £ 17,380,976 - - (368,456) 17,012,520 |
Total £ 27,102,083 2,657,416 (2,728,166) (918,484) |
|---|---|---|---|---|---|
| 26,112,849 |
The Trustees annually review the risks faced by the Charity and have established an investment policy to identify and monitor the financial risks in the investment portfolio. Consideration is given to the inroads of inflation overtime, currencies, volatility and liquidity and discretionary investment managers have been appointed. The investments are diversified across asset classes, regions and managers.
The portfolio is managed on a total return basis with the emphasis on growth. As a consequence a degree of volatility is anticipated and tolerated. The portfolio is a small part of the overall assets but is nonetheless an important component. Income has been paid to the Charity historically which has allowed the Trustees to invest in a number of projects to improve and enhance the fabric of the Estate rather than being used for the day-to-day operational running.
Principal subsidiaries
The following was a subsidiary undertaking of the Charity:
| Name | Company | Registered office | Principal activity | Holding |
|---|---|---|---|---|
| number | ||||
| Belnor Farms Limited | 00457383 | Well Close Square, | Farming | 100% |
| Framlingham, Suffolk | ||||
| IP13 9DU |
The financial results of the subsidiary for the year were:
| Profit for the | ||||
|---|---|---|---|---|
| Name | Income | Expenditure | year | Net assets |
| £ | £ | £ | £ | |
| Belnor Farms Limited | 1,246,055 | 936,569 | 309,486 | 331,829 |
30
Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
17. Stocks
| Group 2023 £ Farm stocks 522,416 Goods for resale 1,851 524,267 18. Debtors Group 2023 £ Due within one year Trade debtors 37,191 Amounts owed by group undertakings - Other debtors 13,052 Prepayments and accrued income 160,876 211,119 19. Creditors: amounts falling due within on Group 2023 £ Trade creditors 75,253 Other taxations and social security - Other creditors 14,861 Accruals 258,131 348,245 |
Group 2022 £ 346,811 782 347,593 Group 2022 £ 53,173 - 36,432 315,622 405,227 e year Group 2022 £ 120,329 873 17,500 106,412 245,114 |
Charity 2023 £ - 1,851 1,851 Charity 2023 £ 36,415 657,185 - 34,513 728,113 Charity 2023 £ 41,120 - 12,861 47,040 101,021 |
Charity 2022 £ - 782 |
||
|---|---|---|---|---|---|
| 782 | |||||
| Charity 2022 £ 38,112 507,626 28,079 52,664 626,481 Charity 2022 £ 80,373 - 9,936 33,106 |
|||||
| 123,415 |
31
Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
20. Statement of funds
Statement of funds – current year
| Balance at 1 April 2022 £ Unrestricted Funds Designated funds Investment funds 26,815,774 Estates – farm land 15,721,000 House and grounds fund 3,834,388 Fixed asset fund 3,991,807 50,362,969 General funds General funds 1,069,650 Total unrestricted funds 51,432,619 |
Balance at 1 April 2022 £ Unrestricted Funds Designated funds Investment funds 26,815,774 Estates – farm land 15,721,000 House and grounds fund 3,834,388 Fixed asset fund 3,991,807 50,362,969 General funds General funds 1,069,650 Total unrestricted funds 51,432,619 |
Income £ - - - - |
Expenditure £ - - - - |
Transfers in/(out) £ (76,250) 248,000 - (309,114) |
Gains /(losses) Balance at 31 March 2023 £ £ (958,504) 25,781,020 - 15,969,000 - 3,834,388 3,682,693 |
|---|---|---|---|---|---|
50,362,969 1,069,650 51,432,619 |
- 1,988,954 1,988,954 |
- (1,760,446) (1,760,446) |
(137,364) 137,364 - |
(958,504) 49,267,101 |
|
(53,382) 1,382,140 (1,011,886) 50,649,241 |
The investments fund includes the Investment Properties and Investment Portfolio which the Trustees are holding for the long term to secure an ongoing income for the Charity and as such there is no intention to reduce the value of the investment assets. The balance on the fund is equivalent to the balance of the investments. The transfers in the year represent funds withdrawn from the investment portfolio and gains realised in the year.
The Belmont House and grounds designated fund was established at the same time that the Charity was founded. The purpose of the Charity is the preservation, maintenance and upkeep of Belmont House, the surrounding land and property and the contents which are deemed to be of historic architectural or artistic importance or beauty which are available for the education and benefit of the public. The primary assets transferred to the Charity when it was founded are central to the continuation of the Charity and as such will remain intact for as long as the Charity exists. The Trustees are empowered to add to and dispose of items from the collection and contents of Belmont House for the benefit of the Charity as long as the collection and contents are not fundamentally diminished. The fund is represented by heritage assets.
The Estates - farm land designated fund represents the value of farm land utilised by Belnor Farms.
The Fixed asset designated fund represents the net book value of fixed assets at the year end.
32
Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
20. Statement of funds (continued)
The Trustees consider a balance equivalent to 6 months’ worth of operating costs for the Charity a reasonable balance to hold in reserves, this figure is currently £500,000. The financial statements show a free reserves balance (non-designated unrestricted funds not represented by operational fixed assets) of £1,382,140 (2022-£1,069,650). Bearing in mind the cyclical nature of the business ,the 'farm' balance provides the working capital requirement for the farm. The balance provides for approximately 9 months’ worth of estate costs and is higher than the Charity's reserve policy. The Trustees are satisfied that these additional amounts will fund the increased expenditure expected in the maintenance plan in the next few years.
Statement of funds – prior year
| Balance at 1 April 2021 £ Unrestricted Funds Designated funds Investment funds 24,855,764 Estates – farm land 15,721,000 House and grounds fund 3,834,388 Fixed asset fund 2,542,807 46,953,959 General funds General funds 1,069,765 Total unrestricted funds 48,023,724 |
Income £ - - - - - 1,553,659 1,553,659 |
Expenditure £ - - - - - (1,592,308) (1,592,308) |
Transfers in/(out) £ 66,695 - - - 66,695 (66,695) - |
Gains /(losses) £ 1,893,315 - - 1,449,000 3,342,315 105,229 3,447,544 |
Balance at 31 March 2022 £ 26,815,774 15,721,000 3,834,388 3,991,807 |
|---|---|---|---|---|---|
| 50,362,969 | |||||
| 1,069,650 | |||||
| 51,432,619 |
33
Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
21. Summary of funds
Summary of funds – current year
| Balance at 1 April 2022 Income £ £ Designated funds 50,362,969 - General funds 1,069,650 1,988,954 Total unrestricted funds 51,432,619 1,988,954 Summary of funds – prior year Balance at 1 April 2021 Income £ £ Designated funds 46,953,959 - General funds 1,069,765 1,553,659 Total unrestricted funds 48,023,724 1,553,659 |
Expenditure £ - (1,760,446) (1,760,446) Expenditure £ - (1,592,308) (1,592,308) |
Transfers in/(out) £ (137,364) 137,364 - Transfers in/(out) £ 66,695 (66,695) |
Gains /(losses) £ (958,504) (53,382) (1,011,886) Gains /(losses) £ 3,342,315 105,229 3,447,544 |
Balance at 31 March 2023 £ 49,267,101 1,382,140 |
|---|---|---|---|---|
| 50,649,241 | ||||
| Balance at 31 March 2022 £ 50,362,969 1,069,650 |
||||
| - | 51,432,619 |
34
Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
22. Reconciliation of net movement in funds to net cash flow from operating activities
| Net expenditure for the year as per Statement of Financial Activities Adjustments for: Depreciation charges Losses on investments Dividends, interest and rents from investments (Increase) in stocks Decrease in debtors Increase in creditors Net cash expended in operating activities 23. Analysis of cash and cash equivalents Cash at bank and in hand 24. Analysis of changes in net debt At 1 April 2022 £ Cash at bank and in hand 399,584 |
Group 2023 £ (783,378) 34,379 1,011,886 (531,900) (176,674) 194,107 103,131 (148,449) Group 2023 £ 731,165 Cash flows £ 331,581 |
Group 2022 £ 1,959,895 |
|---|---|---|
| 28,140 (1,998,544) (487,326) (77,144) (208,146) 88,778 |
||
| (694,347) | ||
| Group 2022 £ 399,584 |
||
| At 31 March 2023 £ 731,165 |
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Harris (Belmont) Charity
Notes to the financial statements for the year ended 31 March 2023
25. Contingent liabilities
A number of fixed asset investments were passed to the Charity upon the death of The Rt. Hon G R J Baron Harris (Sixth Baron Harris) who in turn had inherited them from the Fifth Baron Harris who died in 1984. The assets in question were granted conditionally exempt status. However, because the Sixth Baron Harris died within 30 years of the Fifth Baron Harris, HM Revenue & Customs would be entitled to claim Inheritance Tax at rates applicable at the time of death on whichever estate proved to be more beneficial to them. The Inheritance Tax liability will only crystallise if the Charity sells these assets in the future. The Trustees have a list of these assets and do not intend to sell them in the foreseeable future. Therefore no provision has been included in the accounts in respect of the future liability.
26. Related party transactions
The Charity rents farmland to its subsidiary, Belnor Farms Limited, and receives a deed of covenant from the company at the year end. The rental charge in the year totalled £113,472 (2022 -£NIL). The deed of covenant in the year amounted to £269,466 (2022 - £236,399). In addition, there are a number of arm's length recharges to the subsidiary for costs paid by the Charity.
As at 31 March 2023 £657,185 (2022 - £507,626) was outstanding. This includes a loan advanced to the subsidiary of £250,000 (2022 - £250,000). This loan bears interest at 5% per annum, over the Bank of England base rate and has a fixed repayment date.
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