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2021-12-31-accounts

Page
Ifistorical background
Reference and administrative information
Overview ofthe year
Our Charitable
Aims
Achievements
and performance		 in 2020
Financial review
Investments
Managing
risk		 10-11
Governance 12
Key financial policies 13
People 13
Public benefit 13
Fundraising
activities		 14
Plans for the future
Trustees'
responsibiTities		 and disclosure ofinformation to the auditors 14
Independent
auditor's		 report 15-16
Consolidated
statement		 offinancial activities 17
Balance sheets 18
Consolidated
and cash		 flow statements 19
Notes to the accounts 20-31
Charitable Incorporated Incorporated Organisation
(CIO)		 Organisation
(CIO)		 Organisation
(CIO)		 Organisation
(CIO)		 Charity number 1154467 1154467
Peter Millward (Chairman)
Dawn Long
Trustees Amends McGeever
Ron Middleton
(Vice Chairman)
Sharon Stotts
GeoffThomas
Chief Executive Mark Webb mark
arle
estate.		 co.uk
Grants &Compliance Officer Jenny Harris 'enn
turnertrust. co.uk
Arley House
Principal Office Lion Lane
Upper Arley		 Phone 01299861368
DY12 1SQ
Grants www. turn ertrust. co.uk
Websites Arboretum www. erie arboretum. co.uk
Weddings,
events		 and trading www. erie houseand ardens. co.uk
Crowe U.K.LLP
Auditors Black Country
Rounds Green		 House
Road
Oldbury B692DG
Sarasin &Partners LLP Investec WIN
Investment Managers Juxon House
100St Paul's Churchyard		 30Gresham
Street
London
London EC4M 8BU EC2V 7QN
Halls Bronwin &Abbey
Gavel House Auction House
Property Consultants 137Franche Road King George's Way
Kidderminster Pershore Worcs
DY115AP WR10 1EY
Handelsbanken CCLA
Bankers 63 Market Street
Stourbridge		 85 Queen Victoria Street
London
DY8 1AQ EC4V4ET
Lodders Solicitors LLP Higgs and Sons
10Elm Court, 3Waterfront
Business		 Park
Solicitors Arden St Brierley Hill
Stratford-upon-Avon West Midlands
CV37 6PA DY5 1LX
Pinfields IT
ITconsultants 60 Sugarbrooke
Bromsgrove		 Road
B603DN

Investment income 502 515 Continuing
move to ex-UK equities with lower		 Continuing
move to ex-UK equities with lower		 yields
Charitable grants (604) (515) Charitable
grants increased as		 appeals restarted
Charitable costs (67) (68)
Other income 10 Grant income
Operating (deficit) (169) (58)
Investment gains 2,849 1,631 Equities recovered particularly in international markets
Transfers to Arley Fund (47) (1,475) CompletionofArleydevelopmentprogramme
Movement in funds 2,633 98

Estate property
surplus		 41 109 Increased repair costs with resumption Increased repair costs with resumption Increased repair costs with resumption ofplanned ofplanned maintenance
Trading contribution 103 14 Increase in turnover post lockdowns
Other income 102 80 Government
hospitality		 grants
and		 furlough income
Charitable
(deficit)		 (212) (202)
Operating
surplus		 34 I
Investment
gains		 1,791 598 Rural residential
housing		 demand drove 10%increase in values
Tangible asset revaluation 215 10 Holiday Lets completed
Transfers
&om General Fund		 47 1,475 Completion ofArley development programme
Movement
in funds		 2,087 2,084

,'Risks to health ofstaff and/or visitors flom ,'Risks to health ofstaff and/or visitors flom Workplace-screen
controls; NHS app point, food
poor infection-control
protocols		 served at tea room hatch with outside seating only
Sector subject to government
restrictions		 on Staffcut back to the minimum
to enable flexibility		 and
opening, capacities and activities training
in new recommended
practices
Bad debts and pricing pressures
impact		 Overheads
fightly controlled;
arboretum
staffing
charitable
and trading income streams		 matched to pre-booked
demand
River bank erosion or flooded properties; Flood defences for installation
at the Boathouse;
Higher rainfall threat to visitor attractions Car parking
enhanced
with mesh surface
Adverse social media feedback going viral Booking via internet enables improved
management		 of
inadequate
Arboretum
visitor offering		 expectations
and footfall
Cyber-terrorism
threatens
internal
systems		 ITservice contract provides
enhanced
support;
New computers
nullify anti-virus
software		 Trustees have dedicated
i-pads &e-mail accounts

Recessionary market correction coupled Securities researched by competent
internal
teams
with some permanent
loss ofcapital		 Selective use offunds in international
markets
Cash: custodian
failure		 Custodian
arrangements
reviewed periodically
Nominee
client account exposure		 Due diligence re Beaufort Securities experience
Liquity risks - property oralternatives Low-liquidity
funds and retail generally
avoided
Equity and other market risks Multi-asset portfolio, globally spread

Food safety, Daily monitoring
against standards
Child safeguarding Responsibility
rests with adult visitors
Emergencies Access for emergency vehicles enhanced
Exposure: gas, electricity, Inspections,
minimum
work standards
carried out, with
asbestos, tenants
encouraged
to report any concerns
to the Estate
legionella Office
Health &Safety at work, including:
~
Working at height
~
Mechanical handling
~
Use ofchain saws		 Safety-first culture, review ofskills and ban on use of
machinery
or working in hazardous
conditions
unless
appropriate
training
and competence
levels achieved

onstitution and related matters
clarify		 and related matters
clarify		 the distinction between the roles ofgovernance
and management:
Determinin strate
and		 olic Im lementin
strate
'c decisions
A
ointin		 and overseein Chief Executive A
ointin		 mana
ers and staff
Determinin overnance framework Su
ortin		 ovemance
decisions
Settin
theriskframework,		 overseein ex osure Mana
in		 risk
A
rovin		 lans and bud ets Deliverin lans and bud
ets
Monitorin erformance Measuring erformance
Providin insi ht wisdom and 'ud
ement		 Consultin the Board and Chairman

CONSOLIDATE D STATE MENT O FFINANCIAL ACTIVITIES
2021 2020
Arley General Arley General
Unrestricted
Funds		 Fund Fund Total Fund Fund Total
Note E'000 I'000 8'000 g'000 f'000 8'000
Income from:
Investments 539 658 1,197 568 661 1,229
Trading Activities 441 441 101 101
Charitable
Activities		 281 281 133 133
Other income 102 102 80 10 90
Total Income 1,363 658 2,021 882 671 1,553
~E*
Cht
f
Raising Funds 498 156 654 459 146 605
Trading Activities 338 338 87 87
Charitable
Activities		 493 671 1,164 335 583 918
Total Expenditure 1,329 827 2,156 881 729 1,610
Operating
Surplus/(Deficit)		 34 (169) (135) (58) (57)
Net investments
gain		 14 1,791 2,849 4,640 598 1,631 2,229
Net Income 1,825 2,680 4,505 599 1,573 2,172
Revaluation
offixed assets		 13 215 215 10 10
Transfers between funds 20 47 (47) 1,475 (1,475)
Net Movement
in		 Funds 2,087 2,633 4,720 2,084 98 2,182
Total Funds at 1January 30,755 30@48 61,103 28,671 30,250 58,921
Total Funds at31December 32,842 32,981 65,823 30,755 30,348 61,103

GROUP CHARITY
2021 2020 2021 2020
Note f'000 K'000 E'000 K'000
Fixed assets
Intangible assets 13 4 9 4 9
Tangible assets 13 5,796 5,571 5,796 5,571
Investments 14 59,161 54,739 59,161 54,739
Total 64,961 60,319 64,961 60,319
Current assets
Stock 15 20 17 13 12
Debtors 16 196 223 249 188
Cash 17 1,071 968 833 898
1,287 1,208 1,095 1,098
Creditors
Amounts due within one year (425) (424) (233) (314)
Net Current Assets 862 784 862 784
Net Assets 65,823 61,103 65,823 61,103
Arley Fund 19 32,842 30,755 32,842 30,755
General Fund 19 32,981 30,348 32,981 30,348
Total Funds 65,823 61,103 65,823 61,103

GROUP CHARITY
Note 2021 2020 2021 2020
I'000 g'000 K'000 g'000
Cash (used in) operating activities 21 (672) (620) (960) (667)
Cash flows from investing activities
Dividend
and Interest income		 658 661 658 661
Distribution
received under		 deed ofcovenant 120 2
Purchase oftangible
fixed		 assets (108) (1,726) (108) (1,726)
Proceeds from sale oftangible fixed assets 7 5 7 5
Purchase ofinvestments (6,157) (10,827) (6,157) (10,827)
Capital expenditure
on investment		 properties (135) (50) (135) (50)
Investment
cash drawn
down		 200 1,100 200 1,100
Proceeds from sale ofinvestments 6,310 10,968 6,310 10,968
Cash provided
by investing
activities		 775 131 895 133
Increase/(decrease)
in cash		 and cash
equivalents
in the year		 103 (489) (65) (534)
Cash and cash equivalents at the beginning
ofthe year 968 1,457 898 1,432
Total cash and cash equivalents at the end
ofthe year 1,071 968 833 898

NCOME FROM INVESTMKNTS:
2021 2020
g'000 g'000
Dividends -UK and Overseas Equities 552 469
Interest -UKFixed Interest Securities 106 192
Sub-total General Fund 658 661
Income —rental 522 542
- other 17 26
Sub-total Arley Fund 539 568
Total Investment Income 1,197 1,229
NCOME FROM TRADING
2021 2020
t'000 5'000
Accommodation 113
Forestry 9
Weddings and events 296 60
Other income 32 32
Total income 441 101

RAISING FUNDS EXPE NDITURE
2021 2020
Arley General Total Arley General Total
Fund Fund 2021 Fund Fund 2020
OOOO OOOO t."000 8'000 OOOO g'000
Investment
management		 charges 156 156 146 146
Repairs &property maintenance 99 99 66 66
Depreciation &amortisation 101 101 86 86
Direct staff costs 54 54 53 53
Shared staff costs 112 112 140 140
Shared overheads 132 132 114 114
Total Raising Funds 498 156 654 458 146 605
TRADING EXPENDITURE
Direct expenses 142 142 29 29
Direct staff costs 58 58 38 38
Shared staff costs 49 49 1 1
Shared overheads 84 84 19 19
Governance 5 5
Total trading expenditure 338 338 87 87
CHARITABLE EXPENDITURE
Direct costs —Arboretum 63 63 37 37
Direct staff costs 164 48 212 121 37 158
Shared staff costs 166 166 80 80
Shared overheads 82 82 97 97
Professional
charges		 10 13 23 16 16
Governance 8 6 14 15 15
Charitable
grants		 604 604 515 515
Total charitable expenditure 493 671 1,164 335 583 918

2021 2020
Number %value g'000 Number %value g'000
Young people 26 14% 84 21 15% 76
Community work 26 12% 70 28 17% 89
Social support 22 10% 65 10 6% 31
Impaired health 64 32% 194 49 30% 154
Hospices 9 22% 131 9 27% 138
The Arts 15 8% 49 6 3% 14
Environment &heritage 2 2% 11 3 2% 13
Total 164 100% 604 126 100% 515

haritable
grants of		 g5 ,000or m ore:
2021
Grant-aided
charity		 name Category 5'000
R.E.A.C.T Young people 5
Stonehouse
Gang		 Young people 15
Kids Young people 5
Cotteridge
Church Day Centre		 Community
work		 8
Dorothy Parkes Community
work		 6
Birmingham
Settlement		 Community
work		 5
Sport 4LifeUK Community
work		 6
Listening Books Impaired
health		 5
ASPIE Impaired
health		 5
Cerebral Palsy Midlands Impaired
health		 10
Better Understanding ofDementia Impaired
health		 5
Myriad Cenne Impaired
health		 6
NICE Impaired
health		 7
Acorns Children's
Hospice Trust		 Hospices 25
Birmingham
StMary's		 Hospice Hospices 23
Compton Care Hospices 20
Kemp House Trust Hospices 5
Mary Stevens Hospice Hospices 10
Primrose Hospice Hospices 15
StGiles Hospice Hospices 10
StRichards Hospice Hospices 20
City ofBirmingham Symphony Orchestra Arts 13
ESO (2006)Limited Arts 5
Birmingham
City Mission		 Social support 6
Sandwell
Homeless		 and Resettlement Social support 5
St.Anne's Hostel Social support 6
Black Country Living Museum Environment
&heritage		 10
Total g5,000or more (27grants) Regular grant-aided
charities		 261

TAFF COSTS
2021 2020
5'000 5'000
Wages and salaries 587 472
Social security costs 54 46
Pension costs 30 24
671 542

2021 2020
Estate and property 2 2
Arboretum 18 11
Management and administration 8 7
28 20
SHARED COSTS (Arley Fund)
2021 2020
Cost sharing
based on time		 within
Ariey Estate is
spent:		 Staff
costs		 Other
costs		 Total Staff
costs		 Other
costs		 Total
g'000 g'000 g'000 g'000 K'000 OOOO
Raising funds Note 7 112 132 244 140 114 254
Trading Note 8 49 89 138 1 19 20
Charitable Note 9 166 82 248 80 97 177
327 303 630 221 230 451

epreciation of64,262 was charg ed. The net book amount at 31December 2021 was K4,263 (2020:6 8,525).
Tangible fixed assets Freehold land Plant and Fixtures and
and buildings equipment fittings Total
Cost or valuation g'000 g'000 g'000 K'000
At 1 January 2021 5,349 356 326 6,031
Additions 81 10 17 108
Disposals (13) (1) (14)
Revaluation 215 215
At 31December 2021 5,645 353 342 6,340
Depreciation
At 1 January 2021 52 227 181 460
Charge for the year 37 26 34 97
Elimination
on disposals		 (13) (13)
At 31December 2021 89 240 215 544
Net book amount
At 31December 2021 5,556 113 127 5,796
At 31December 2020 5,297 129 145 5,571

IXEDASSET INVESTMENT S - GROUP AND CH ARITY
2021 2020
Freehold land
and buildings Quoted securities Total Total
K'000 K'000 K'000 OOOO
At 1 January 2021 24,992 29,747 54,739 53,701
Additions
at cost		 135 6,157 6,292 10,877
Disposal proceeds (6,310) (6,310) (10,968)
Net investment gains 1,791 2,849 4,640 2,229
Cash drawdown (200) (200) (1,100)
At 31December 2021 26,918 32,243 59,161 54,739
alued the Estate on a similar basis atf32,4
ollows:		 74,000. For accounting
purp		 oses,
the assets have been di		 sclosed as
2021 2020
f'000 g'000
Own use tangible fixed assets Note 13 5,556 5,297
Investments Above 26,918 24,992
At 31December 2021 32,474 30,289
he historical cost ofthe Estate, represented
urner on 30 April 1999,was f8,841,000.		 by the probate value on the death ofthe late Mr RD
uoted securities portfolio
2021 2020
f.'000 OOOO
Fixed interest 2,961 3,588
UK listed investments 7,389 7.778
Overseas investments 16,529 13,164
Commercial
property		 594 1,883
Alternative
investments		 4,076 2,748
Cash 694 586
32,243 29,747
Historical cost 22,459 22,459

Group Group Charity Charity
2021 2020 2021 2020
8'000 g'000 g'000 g'000
15 STOCK Goods for resale 20 17 13 12
16 DEBTORS
Trade debtors 71 81 51 31
P repayments 28 76 84 71
Other debtors 97 66 75 86
Amounts
due from group undertaking		 39
196 223 249 188
17 CASH
Cash at Handelsbanken 779 676 541 606
CCLA COIF Charities Income account 292 292 292 292
1,071 968 833 898
18 CREDITORS DUE WITHIN ONE YEAR
Trade creditors 67 69 52 63
Investment
Manager charges		 41 37 41 37
Rents received in advance 49 44 49 44
Other taxes and social security 27 14 12 10
Amounts
due to group undertaking		 72
Other creditors 17 20 16 15
Accruals and deferred income 224 240 63 73
425 424 233 314
Included within accruals and deferred income are wedding deposits held for weddings deposits held for weddings in future years of:
Balance at I January 2021 162 43
New deposits during the year 215 154
Deposits released during the year (228) (35)
Balance at 31December 2021 149 162

2021 2020
Arley General Total Arley General Total
Fund Fund Funds Fund Fund Funds
g'000 K'000 g'000 f.'000 g'000 K'000
Intangible
Assets		 4 4 9 9
Tangible Assets 5,796 5,796 5,571 5,571
Investments 26,918 32,243 59,161 24,992 29,747 54,739
Fixed Assets 32,718 32,243 64,961 30,572 29,747 60,319
Stock 20 20 17 17
Debtors 123 59 182 170 53 223
Cash 351 720 1,071 378 590 968
Creditors (370) (41) (411) (382) (42) (424)
Net Current Assets 124 738 862 183 601 784
Total Funds 32,842 32,981 65,823 30,755 30,348 61,103
UNDS ANALYSIS —GROUP
IJanuary Incoming Outgoing Gains / 31December
2021 Resources Resources Transfers (Losses) 2021
g'000 E'000 g'000 K'000 g'000 g'000
Operational funds 30,426 1,363 (1,329) 47 1,791 32,298
Revaluation reserve 329 215 544
Arley Fund 30,755 1,363 (1,329) 47 2,006 32,842
General Fund 30,348 658 (827) (47) 2,849 32,981
Total Funds 61,103 2,021 (2,156) 4,855 65,823
1January Incoming Outgoing Gains
/		 31December
2020 Resources Resources Transfers (Losses) 2020
K'000 K'000
g'000 g'000 g'000 g'000
Operational funds 28,352 882 (881) 1,475 598 30,426
Revaluation reserve 319 10 329
Total Arley Fund
28,671 882 (881) 1,475 608 30,755
General Fund 30,250 671 (729) (1,475) 1,631 30,348
Total Funds 58,921 1,553 (1,610) 2,239 61,103

ECONCILIATION
OFN		 ET MOVE MENT IN F UNDS TONET OPERATING CASH FLOW
Group Group Charity Charity
2021 2020 2021 2020
g'000 g'000 0'000 g'000
Net movement
in funds		 4,720 2,182 4,600 2,180
Add back depreciation
and		 amortisation 101 86 101 86
Profit on disposal oftangible fixed assets (5) (3) (5) (3)
Movement
on revaluation		 reserve (215) (10) (215) (10)
Deduct
income
shown		 in
quoted		 investing
activities (658) (661) (658) (661)
(Gain) / loss on revaluation ofinvestments (4,640) (2,229) (4,640) (2,229)
Decrease / (increase) in stock (3) (1) (1) (5)
Decrease / (increase) in debtors 27 (37) (61) 22
Increase / (decrease) in creditors 1 53 (81) (47)
Net cash used in operating
activities		 (672) (620) (960) (667)

INCOME EARNED FROM TRADI INCOME EARNED FROM TRADI INCOME EARNED FROM TRADI NG ACTIVITIES NG ACTIVITIES NG ACTIVITIES
The wholly-owned
trading subsidiary,		 Arley House k Gardens Limited was incorporated in the United Kingdom
(company number 09448082) and details ofthe trading results for the subsidiary alone are given below;
2021
g'000
Tuiilovel' 441 101
Direct costs (200) (67)
Other income 69 29
Overheads (138) (20)
Profit included
in		 Statement ofFinancial Activities on consolidation 172 43
Irma-group
charge		 from the charity arising from internal leases, included in the
company's
own accounts		 (52) (41)
Profit for the financial year 120
Amount
distributed		 to the charity (120) (2)
Retained in subsidiary
The assets and liabilities ofthe subsidiary
were:
Current assets 268 142
Current liabilities (268) (142)

Group Group Charity Charity
2021 2020 2021 2020
g'000 g'000 g'000 g'000
Financial assets
Financial assets measured at fair value
through profit or loss 32,243 29,747 32,243 29,747

Group Group Charity Charity
2021 2020 21121 2020
g'000 f.'000 g'000 0'000
Not later than one year 86 233 126 288
Later than one year and not later than five
years 77 60 227 250
Later than five years 100 150
163 293 453 688

Group Group Charity Charity
2021 2020 2021 2020
f'000 X'000 g'000 g'000
Not later than one year
Later than one year and not later than five
years 16 16
Later than five years
24 24