Registered number: 08217668 Charity number: 1149510
THE BELSAY TRUST
(A company limited by guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
THE BELSAY TRUST
(A company limited by guarantee)
| CONTENTS | |
|---|---|
| Page | |
| Reference and administrative details of the Charitable Company, its Trustees and | 1 |
| advisers | |
| Trustees' report | 2 - 6 |
| Independent auditors' report on the financial statements | 7 - 10 |
| Statement of financial activities | 11 |
| Balance sheet | 12 - 13 |
| Notes to the financial statements | 14 - 26 |
THE BELSAY TRUST
(A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022
| Trustees | Simon Roger Kirkup |
|---|---|
| John Antony Scott Walton | |
| Angus Edward Collingwood-Cameron | |
| Company registered number 08217668 Charity registered number 1149510 Registered office The Belsay Trust Belsay Newcastle upon Tyne NE20 0DX Independent auditors Kinnair Associates Limited Chartered Accountants & Statutory Auditor Aston House Redburn Road Newcastle upon Tyne NE5 1NB Estate Management Galbraith LLP (incorporating Land Factor) Blagdon Estate Office Seaton Burn Newcastle upon Tyne NE13 6DE |
Page 1
THE BELSAY TRUST
(A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022
The Trustees present their annual report together with the audited financial statements of the Charitable Company for the year 1 April 2021 to 31 March 2022. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) 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 statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the charity’s governing document, the Charities Act 2011 and the relevant version of the Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
Since the Charitable Company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
Policies and objectives
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
The primary objective of the charitable company is to preserve, for the benefit of the nation, the property of the charitable company comprising those parts of the Belsay Estate in Northumberland which are of historical or architectural interest or of natural beauty, whether on their own or as a setting for Belsay Castle and Belsay Hall and for such other charitable purposes as the Trustees in their absolute discretion from time to time deem appropriate. The Trustees believe the Trust has met its objectives throughout the year.
Strategies for achieving objectives
Decisions are made by the Trustees with the land management agents' input as appropriate.
Activities undertaken to achieve objectives
The activities of the company are farming and the renting out of property comprising the Estate in order to generate income to maintain, preserve, restore, improve and develop the Estate.
Page 2
THE BELSAY TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Objectives and activities (continued)
Main activities undertaken to further the Charitable Company's purposes for the public benefit
In carrying out the Trust's activities, the trustees have complied with their duty to have due regard to the Charity Commission's guidance on public benefit, including the need to report how they have carried out their charity's purposes for the public benefit, when exercising any powers or duties to which the guidance is relevant.
The charity has furthered its objects for the benefit of the public by carrying out the following activities during the year:
-
Providing public access to the Belsay Estate and engaging with the public regarding the preservation of the Estate, through its relationship with and work alongside English Heritage, which operates Belsay Hall and Belsay Castle and the surrounding grounds. This access enables individuals to learn about various aspects of the Estate and the charity to fund preservation work.
-
Engaging with English Heritage in relation to the Belsay Awakes project, funded by the national heritage lottery fund, in relation to the improvement, maintenance and development of the Belsay Estate improving its accessibility for the public for present and future beneficiaries.
The Trust has worked alongside English Heritage in the planning and preparation for the Belsay Awakes Project which has been ongoing for the past five years. We hold regular meetings with stakeholders, as well as English Heritage consultants and project teams to ensure that the Belsay Awakes Project preserves and develops the Estate in the right way.
- The Trust works alongside English Heritage to provide access to new areas of the Estate and works with agencies and bodies such as Natural England to preserve and improve the Grade I woodlands and grass parks that surround Belsay Hall, Castle and Gardens, as well as the historic buildings and landmarks within those. For example, the Trust engages specialist contractors to undertake regular tree and wildlife surveys. The Trust also undertakes special projects every year to restore and maintain historic rural buildings and field structures (walls, bridges, fencing and gates) within the parks at Belsay.
4. Support to the local community through initiatives undertaken to include:
The Trust supports the local community surrounding Belsay Estate in numerous ways. The Trust provides relatively low cost housing to local families, and has a reputation as a good and supportive landlord with properties that are well maintained. Any maintenance problems are dealt with quickly and efficiently. The Trust has a good relationship with all its tenants.
The Trust is the owner of the buildings which form Belsay Primary School and Belsay Daycare. The Trust regularly provides financial support to the school and supports its community initiatives.
The Trust also works alongside English Heritage to support its outreach and volunteer programme.
The Trust supports local initiatives to fight rural crime and also contributes to the local Red Squirrel patrol programme in Northumberland.
5. Other activities include:
The Trust Estate Office remained open through the Covid lockdowns, supporting residents and responding to requests for property maintenance where possible and appropriate. The Trust worked to ensure that the Estate (the Hall, Castle and Gardens) were secure by installing security cameras on the main driveway, when relevant parts of English Heritage had to close the site.
Page 3
THE BELSAY TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Achievements and performance
Review of activities
The Trust continues to maintain the properties of the Trust and has established a programme of potential conversion of redundant buildings to productive use, in keeping with the ambience of the Estate and its environs.
Financial review
Going concern
After making appropriate enquiries and considering the possible consequences of the COVID-19 pandemic as it might affect the charitable company the Trustees have concluded that they have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
Reserves policy
It is the policy of the charitable company to maintain free reserves, which at 31 March 2022 stood at £1,143,896 which the Trustees consider to be at an appropriate level to finance the continuing investment in, and improvement of, the charity's assets and to allow for sufficient liquidity to provide funds to cover management, administration and support costs.
Investment policy and performance
In furtherance of the charitable objects of the company, the Trustees have full and unrestricted powers of investment as set out in the Articles of Association.
Overview
The income of the charitable company for the year amounts to £401,332 (2021: £402,878) and costs of £226,994 (2021: £232,819) giving a surplus of £174,338 (2021: £170,059) before taking account of unrealised gains/losses in respect of property revaluations.
Structure, governance and management
Constitution
The Belsay Trust is registered as a charitable company limited by guarantee and was set up by a Trust deed.
Methods of appointment or election of Trustees
The management of the Charitable Company is the responsibility of the Trustees who are elected and co-opted under the terms of the Memorandum of Association.
Page 4
THE BELSAY TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Structure, governance and management (continued)
Organisational structure and decision-making policies
Overall responsibility for the running of the charitable company is vested in the Trustees. Subject thereto, the administration of the day to day running of the charitable company is undertaken by the land management agents, Galbraith LLP.
Policies adopted for the induction and training of Trustees
The Trustees are or have been professional persons with relevant experience in acting in the capacity of Trustees. The Trustees have an established system to train new trustees in relation to their duties and to induct them into the affairs and relevant workings of the charity, as required.
Related party relationships
During the year,trustees the charitable company was provided with legal services by Womble Bond Dickinson LLP in which one of the Trustees, Simon Roger Kirkup, is a partner.
In addition, Angus Edward Collingwood-Cameron, Trustee, is a founder of the Northern Farmers and Landowners Group. The charitable company has an annual subscription to this organisation.
Financial risk management
The Trustees have assessed the major risks to which the Charitable Company is exposed, in particular those related to the operations and finances of the Charitable Company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
Plans for future periods
The Trustees will continue to focus on the investment of any surplus income and/or the proceeds of any asset sales in the Trust's property assets with a view to carrying out their policies and achieving the Trust's objectives.
Page 5
THE BELSAY TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
Statement of Trustees' responsibilities
The Trustees (who are also the directors of the Charitable Company 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 of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles of the Charities SORP (FRS 102);
-
make judgments and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charitable Company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charitable Company's transactions and disclose with reasonable accuracy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to auditors
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
-
so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
-
that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
Auditors
The auditors, Kinnair Associates Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees on 17 November 2022 and signed on their behalf by:
(Chair of Trustees)
Simon Roger Kirkup
Page 6
THE BELSAY TRUST
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE BELSAY TRUST
Opinion
We have audited the financial statements of The Belsay Trust (the 'charitable company') for the year ended 31 March 2022 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the charitable company's affairs as at 31 March 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Page 7
(A company limited by guarantee)
THE BELSAY TRUST
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE BELSAY TRUST (CONTINUED)
Other information
The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditors' report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
-
the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
-
sufficient accounting records have not been kept; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Page 8
(A company limited by guarantee)
THE BELSAY TRUST
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE BELSAY TRUST (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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: -
-
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
-
we identified the laws and regulations applicable to the Charity through discussions with trustees and other management, and from our commercial knowledge and experience of the rental sector;
-
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Charity, including the Charities Act 2011 et seq., the Charities (Protection and Social Investment) Act 2016, the Trustees Acts 1925 and 2000 and Charity Commission regulation;
-
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
-
we ensured that the identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: -
-
making enquiries of management as to where they considered there was susceptibility to fraud and their knowledge of actual, suspected and alleged fraud;
-
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
To address the risk of fraud through management bias and override of controls, we: -
-
performed analytical procedures to identify any unusual or unexpected relationships;
-
• tested journal entries to identify unusual transactions; and
-
assessed whether judgements and assumptions made in determining the accounting estimates set out in the notes to the financial statements were indicative of potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
-
agreeing financial statement disclosures to underlying supporting documentation;
-
• reading the minutes of meetings of those charged with governance;
Page 9
THE BELSAY TRUST
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE BELSAY TRUST (CONTINUED)
-
enquiring of management as to actual and potential litigation and claims; and
-
reviewing correspondence with HMRC, relevant regulators and the Charity’s legal advisors.
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 trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
Use of our report
This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.
Kinnair Associates Limited
Chartered Accountants & Statutory Auditor
Aston House
Redburn Road
Newcastle upon Tyne
NE5 1NB
17 November 2022
Kinnair Associates Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 10
THE BELSAY TRUST
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022
| Note Income and endowments from: Charitable activities 3 Investments 4 Total income and endowments Expenditure on: Charitable activities 5 Total expenditure Net movement in funds before other recognised gains Other recognised gains: Gains on revaluation of fixed assets Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Endowment funds 2022 £ - - - - - - 800,000 800,000 13,170,357 800,000 13,970,357 |
Unrestricted funds 2022 £ 401,215 117 401,332 226,994 226,994 174,338 - 174,338 2,003,565 174,338 2,177,903 |
Total funds 2022 £ 401,215 117 401,332 226,994 226,994 174,338 800,000 974,338 15,173,922 974,338 16,148,260 |
Total funds 2021 £ 401,564 1,314 |
|---|---|---|---|---|
| 402,878 | ||||
| 232,819 | ||||
| 232,819 | ||||
| 170,059 | ||||
| 450,000 | ||||
| 620,059 | ||||
| 14,553,863 620,059 |
||||
| 15,173,922 |
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 14 to 26 form part of these financial statements.
Page 11
THE BELSAY TRUST (A company limited by guarantee) REGISTERED NUMBER: 08217668
BALANCE SHEET AS AT 31 MARCH 2022
| Note Fixed assets Tangible assets 9 Investment property 10 Current assets Debtors 11 Cash at bank and in hand Creditors: amounts falling due within one year 12 Net current assets Total assets less current liabilities Total net assets Charity funds Endowment funds 14 Unrestricted funds 14 Total funds |
35,989 1,165,341 1,201,330 (57,434) |
2022 £ 1,815,377 13,188,987 15,004,364 1,143,896 16,148,260 16,148,260 13,970,357 2,177,903 16,148,260 |
24,918 1,066,398 1,091,316 (78,261) |
2021 £ 1,808,467 12,352,400 |
|---|---|---|---|---|
| 14,160,867 1,013,055 |
||||
| 15,173,922 | ||||
| 15,173,922 | ||||
| 13,170,357 2,003,565 |
||||
| 15,173,922 |
The entity was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
However, an audit is required in accordance with section 144 of the Charities Act 2011.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
Page 12
THE BELSAY TRUST
(A company limited by guarantee) REGISTERED NUMBER: 08217668
BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2022
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees on 17 November 2022 and signed on their behalf by:
Simon Roger Kirkup
The notes on pages 14 to 26 form part of these financial statements.
Page 13
(A company limited by guarantee)
THE BELSAY TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1. General information
The Belsay Trust is registered as a charitable company, limited by guarantee and is incorporated in England. The address of its registered office is Belsay Estate Office, Belsay, Newcastle upon Tyne, NE20 0DX. The company's registered number is 08217668 and its charity number is 01149510.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the relevant version of the 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) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn
The Belsay Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2.2 Going concern
After making appropriate enquiries and considering the possible consequences of the COVID-19 pandemic as it might affect the charitable company the Trustees have concluded that they have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
2.3 Income
All income is recognised once the Charitable Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
2.4 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.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charitable Company's objectives, as well as any associated support costs.
Page 14
(A company limited by guarantee)
THE BELSAY TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
2. Accounting policies (continued)
2.5 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charitable Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.6 Tangible fixed assets and depreciation
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
At each reporting date the Charitable Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .
Depreciation is provided on the following basis:
- Freehold property Not depreciated Plant and machinery - 25% Reducing balance
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of financial activities.
2.7 Investments
Fixed asset investment properties are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.
Included in investment properties is the property of the charitable company comprising those parts of the Belsay Estate in Northumberland which are of historical or architectural interest or of natural beauty which were originally donated and have been valued at a nominal value of £1.
2.8 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.
2.9 Cash at bank and in hand
Cash at bank and in hand consists of cash only held in the charitable company's bank accounts.
Page 15
(A company limited by guarantee)
THE BELSAY TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
2. Accounting policies (continued)
2.10 Liabilities
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 Charitable Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
2.11 Financial instruments
The Charitable Company 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.
2.12 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 Charitable Company and which have not been designated for other purposes.
Investment income, gains and losses are allocated to the appropriate fund.
3. Income from charitable activities
| Rental income - farms Grass Parks Rental income - houses Rental income - commercial and wayleaves Rental income - office and equipment Firewood sales Sundry income Total 2022 |
Unrestricted funds 2022 £ 73,390 99,528 192,658 33,389 2,100 - 150 401,215 |
Total funds 2022 £ 73,390 99,528 192,658 33,389 2,100 - 150 |
|---|---|---|
| 401,215 |
Page 16
THE BELSAY TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
3. Income from charitable activities (continued)
| Rental income - farms Grass Parks Rental income - houses Rental income - commercial and wayleaves Rental income - office and equipment Firewood sales Sundry income Total 2021 Investment income Investment income - interest Investment income - interest |
Unrestricted funds 2021 £ 73,390 106,103 188,023 30,591 2,100 1,276 81 401,564 Unrestricted funds 2022 £ 117 Unrestricted funds 2021 £ 1,314 |
Total funds 2021 £ 73,390 106,103 188,023 30,591 2,100 1,276 81 |
|---|---|---|
| 401,564 | ||
| Total funds 2022 £ 117 |
||
| Total funds 2021 £ 1,314 |
4. Investment income
Page 17
THE BELSAY TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
5. Analysis of expenditure on charitable activities
Summary by fund type
| Total costs - Charitable activities Total costs - Charitable activities |
Unrestricted funds 2022 £ 226,994 Unrestricted funds 2021 £ 232,819 |
Total funds 2022 £ 226,994 |
|---|---|---|
| Total funds 2021 £ 232,819 |
6. Analysis of expenditure by activities
| Total costs - Charitable activities Total costs - Charitable activities |
Activities undertaken directly 2022 £ 82,514 Activities undertaken directly 2021 £ 104,126 |
Support costs 2022 £ 144,480 Support costs 2021 £ 128,693 |
Total funds 2022 £ 226,994 |
|---|---|---|---|
| Total funds 2021 £ 232,819 |
Page 18
THE BELSAY TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
6. Analysis of expenditure by activities (continued)
Analysis of direct costs
| Grass parks maintenance Property maintenance Total 2022 Grass parks maintenance Property maintenance Total 2021 Analysis of support costs Depreciation Management fees and expenses Legal and professional fees Insurance Heat and light Stationery and sundry expenses Telephone Rates and water Irrecoverable VAT Bank charges Governance costs Total 2022 |
Activities 2022 £ 55,258 27,256 82,514 Activities 2021 £ 60,931 43,195 104,126 Activities 2022 £ 1,786 65,120 21,123 15,603 1,566 5,822 1,386 1,743 18,326 190 11,815 144,480 |
Total funds 2022 £ 55,258 27,256 |
|---|---|---|
| 82,514 | ||
| Total funds 2021 £ 60,931 43,195 |
||
| 104,126 | ||
| Total funds 2022 £ 1,786 65,120 21,123 15,603 1,566 5,822 1,386 1,743 18,326 190 11,815 |
||
| 144,480 |
Page 19
(A company limited by guarantee)
THE BELSAY TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
6. Analysis of expenditure by activities (continued)
Analysis of support costs (continued)
| Depreciation Management fees and expenses Legal and professional fees Insurance Heat and light Stationery and sundry expenses Telephone Rates and water Irrecoverable VAT Office repairs and renewals Bad debt Bank charges Governance costs Total 2021 Auditors' remuneration Fees payable to the Charitable Company's auditor for the audit of the Charitable Company's annual accounts Fees payable to the Charitable Company's auditor in respect of: All non-audit services not included above |
Activities 2021 £ 2,381 61,309 14,722 14,430 639 5,140 1,318 851 19,584 (44) (3,645) 134 11,874 128,693 2022 £ 4,250 - |
Total funds 2021 £ 2,381 61,309 14,722 14,430 639 5,140 1,318 851 19,584 (44) (3,645) 134 11,874 128,693 2021 £ 7,205 4,669 |
|---|---|---|
7. Auditors' remuneration
8. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .
During the year, no Trustee expenses have been incurred (2021 - £NIL) .
Page 20
THE BELSAY TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
9. Tangible fixed assets
| Cost or valuation At 1 April 2021 Additions At 31 March 2022 Depreciation At 1 April 2021 Charge for the year At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 |
Freehold property £ 1,797,600 8,696 1,806,296 - - - 1,806,296 1,797,600 |
Plant and machinery £ 19,149 - 19,149 12,006 1,786 13,792 5,357 7,143 |
Other fixed assets £ 3,724 - 3,724 - - - 3,724 3,724 |
Total £ 1,820,473 8,696 |
|---|---|---|---|---|
| 1,829,169 | ||||
| 12,006 1,786 |
||||
| 13,792 | ||||
| 1,815,377 | ||||
| 1,808,467 |
10. Investment property
| Valuation At 1 April 2021 Additions Surplus on revaluation At 31 March 2022 |
Freehold investment property £ 12,352,400 36,587 800,000 |
|---|---|
| 13,188,987 |
The 2022 valuations were made by Galbraith LLP on an open market value for existing use basis.
Page 21
THE BELSAY TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
11. Debtors
| Due within one year Trade debtors Other debtors Prepayments and accrued income |
2022 £ 19,899 7,330 8,760 35,989 |
2021 £ 11,349 10,026 3,543 |
|---|---|---|
| 24,918 |
12. Creditors: Amounts falling due within one year
| Trade creditors Accruals and deferred income |
2022 £ 23,364 34,070 57,434 |
2021 £ 55,431 22,830 |
|---|---|---|
| 78,261 |
13. Financial instruments
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Financial assets | ||
| Financial assets measured at fair value through income and expenditure | 1,165,342 | 1,066,398 |
Financial assets measured at fair value through income and expenditure comprise bank and cash balances.
Page 22
THE BELSAY TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
14. Statement of funds
Statement of funds - current year
| Unrestricted funds General Funds Endowment funds Endowment Fund Total of funds |
Balance at 1 April 2021 £ 2,003,565 13,170,357 15,173,922 |
Income £ 401,332 - 401,332 |
Expenditure £ (226,994) - (226,994) |
Gains/ (Losses) £ Balance at 31 March 2022 £ - 2,177,903 800,000 13,970,357 800,000 16,148,260 |
|---|---|---|---|---|
Page 23
THE BELSAY TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
14. Statement of funds (continued)
Statement of funds - prior year
| Balance at | |||||
|---|---|---|---|---|---|
| Balance at | Gains/ | 31 March | |||
| 1 April 2020 | Income | Expenditure | (Losses) | 2021 | |
| £ | £ | £ | £ | £ | |
| Unrestricted funds | |||||
| General Funds | 1,833,506 | 402,878 | (232,819) | - | 2,003,565 |
| Endowment funds | |||||
| Endowment Funds | 12,720,357 | - | - | 450,000 | 13,170,357 |
| Total of funds | 14,553,863 | 402,878 | (232,819) | 450,000 | 15,173,922 |
| Summary of funds | |||||
| Summary of funds | - current year | ||||
| Balance at 1 | Gains/ | Balance at 31 | |||
| April 2021 | Income | Expenditure | (Losses) | March 2022 | |
| £ | £ | £ | £ | £ | |
| General funds | 2,003,565 | 401,332 | (226,994) | - | 2,177,903 |
| Endowment funds | 13,170,357 | - | - | 800,000 | 13,970,357 |
| 15,173,922 | 401,332 | (226,994) | 800,000 | 16,148,260 | |
| Summary of funds | - prior year | ||||
| Balance at | |||||
| Balance at | Gains/ | 31 March | |||
| 1 April 2020 | Income | Expenditure | (Losses) | 2021 | |
| £ | £ | £ | £ | £ | |
| General funds | 1,833,506 | 402,878 | (232,819) | - | 2,003,565 |
| Endowment funds | 12,720,357 | - | - | 450,000 | 13,170,357 |
| 14,553,863 | 402,878 | (232,819) | 450,000 | 15,173,922 |
15. Summary of funds
Page 24
(A company limited by guarantee)
THE BELSAY TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
16. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Endowment funds 2022 £ Tangible fixed assets 1,526,297 Investment property 12,444,060 Current assets - Creditors due within one year - Total 13,970,357 Analysis of net assets between funds - prior year Endowment funds 2021 £ Tangible fixed assets 1,526,297 Investment property 11,644,060 Current assets - Creditors due within one year - Total 13,170,357 17. Capital commitments Contracted for but not provided in these financial statements Acquisition of tangible fixed assets |
Unrestricted funds 2022 £ 289,080 744,927 1,201,330 (57,434) 2,177,903 Unrestricted funds 2021 £ 282,170 708,340 1,091,316 (78,261) 2,003,565 2022 £ 187,642 |
Total funds 2022 £ 1,815,377 13,188,987 1,201,330 (57,434) 16,148,260 Total funds 2021 £ 1,808,467 12,352,400 1,091,316 (78,261) 15,173,922 2021 £ - |
|---|---|---|
Page 25
(A company limited by guarantee)
THE BELSAY TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
18. Related party transactions
Simon Roger Kirkup is a partner in the firm Womble Bond Dickinson LLP, solicitors of the Charitable Trust. The firm received fees of £18,522 (2021: £14,925) from the Trust in respect of legal fees.
Angus Edward Collingwood-Cameron is a founder of the Northern Farmers and Landowners Group. Expenditure includes a subscription of £210 (2021: £210) paid to this organisation.
Page 26