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2020-10-31-accounts

The South West Heritage Trust (A Charitable Company Limited by Guarantee) Annual Report and Financial Statements

For the Year Ended 31 October 2020

Company Number: 09053532 Charity Registered in England and Wales Number: 1158791

The South West Heritage Trust Contents For the Year Ended 31 October 2020

Page
Reference and Administrative Details 1
Trustee Directors’ Report 2 – 20
Independent Auditors’ Report 21 – 23
Consolidated Statement of Financial Activities 24
Balance Sheet and Consolidated Balance Sheet 25 – 26
Statement of Cash Flows and Consolidated Statement
of Cash Flows 27
Notes to Financial Statements 28 – 57

The South West Heritage Trust Reference and Administrative Details For the Year Ended 31 October 2020

Trustee Directors Rev. P M Beacham
G L Craig
Cllr R F Croad
Prof. H R French
P J Gunner
D H Gwyther (Chair)
Cllr. D Hall
S H D’A Hunt
S V Maberley
T Makewell
Lt Col. M J R Motum
A M D Smallwood
Chief Executive Officer T W Mayberry
Charity Number 1158791
Company Number 09053532
Principal Address and Registered Office Somerset Heritage Centre
Brunel Way
Taunton
Somerset
TA2 6SF
Auditors Albert Goodman LLP
Goodwood House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX
Bankers NatWest
26-27 Fore Street
Taunton
Somerset
TA1 1JQ
Solicitors Bates Wells Braithwaite
10 Queen Street Place
London
EC4R 1BE

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2020

The Trustees, who are also directors for the purposes of the Companies Act, present their report and the financial statements of the charity for the year ended 31 October 2020, 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 policies set out in note 1 to the financial statements and comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

The full name of the Charity is The South West Heritage Trust. It was incorporated on 22 May 2014 as a company limited by guarantee. Its company registration number is 09053532. Its charity registration number is 1158791. The Charity is variously referred to throughout this report as either “the Charity”, “the Company” or “the Trust”.

References and Administrative Details

Administrative information is given in a separate section at the front of these accounts.

Directors and Trustees

The directors of the Company are the Charity’s Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees.

The Trustees serving during the year and since the year-end are as follows:

None of the Trustees have any beneficial interest in the Company. All of the Trustees are members of the Company and guarantee to contribute £1 in the event of a winding up.

Patrons

The Trust is fortunate to have as Patrons three people who are prominent in the communities of Somerset and Devon:

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution and Formation of the South West Heritage Trust

The South West Heritage Trust vested on 1 November 2014 as an independent company limited by guarantee with charitable status. The company is governed by its memorandum and articles of association. Its charitable objects are set out in the articles of association as follows:

The Trust has the heritage service responsibilities previously carried out by Somerset County Council (comprising the Archives and Local Studies, Museums and Historic Environment Services) and Devon County Council (comprising the Archives and Local Studies Services).

A subsidiary trading company, South West Heritage Trust Trading Company Ltd (registered company number 09222720) was also formed on 1 November 2014.

During its early years the Trust has been seeking to establish itself as an innovative and sustainable independent organisation with greater entrepreneurial and commercial freedom to develop services and partnerships.

The legal agreements which underpin the operation of the Trust are the Transfer Agreements, Grant Agreements and Collections Management Agreements between Somerset County Council (SCC) and the Trust and Devon County Council (DCC) and the Trust.

The Trust demonstrates its independence in line with Charity Commission guidance as set out in RR7. The current funding terms are in place until 31 October 2024.

Organisational Management

The Board of Trustees meets on a quarterly basis to discuss the progress of the organisation and to agree strategic direction. A Chief Executive Officer is appointed by the Trustees to manage the day-to-day operation of the Trust and to provide leadership and direction for the implementation of the Business Plan.

Three Trustee committees meet quarterly to examine and deal with complex issues of the Charity, with powers to exercise authority where delegated by the Board:

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2020

The leadership team meets formally not less than 10 times a year to ensure consistent and collaborative management of services across the Trust and to progress the delivery of the business plan.

Selection and Training of Trustees

The Trust operates with a Board of Trustees which has been selected using an open recruitment process. The experience and knowledge present within the Board of Trustees is considered from time to time to ensure that the correct mixture of skills is represented. Training is provided, as required, to develop knowledge and skills. A three-year term applies to all Trustees and may be extended by one term.

The annual retirement meeting for Trustees of the Trust took place on 23 April 2020 at which Peter Beacham, Henry French, Sam Hunt and Anthony Smallwood retired from the Board. All four trustees were re-appointed to serve a second term by agreement of the remaining trustees.

The induction process for all new Trustees includes:

Risk and Risk Management

A risk register is maintained and reviewed by the Board of Trustees on a regular basis. The register assesses risk based on likelihood and impact, providing information about actions and controls in place to manage risk.

Risks include those which are financial, operational or reputational or that would otherwise be of concern for the future of the charity. The Trustees are satisfied that the charity is a going concern and that all risks are being actively and appropriately managed.

Potential risks relating to Brexit are subject to active monitoring and mitigation where possible. Indirect risks relating to the finances, supply chains and workforce of the Trust are being dealt with through the usual risk management processes.

As described above, the emergence of Covid-19 in March 2020 prompted a very rapid response from the Trust to limit health risks to staff, volunteers and visitors and to the organisation collectively.

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2020

OBJECTIVES, STRATEGY AND ACTIVITIES OF THE TRUST

Objectives

Our Vision and Mission in fulfilling our objectives are as follows:

Our Vision

We will celebrate and protect our rich heritage, helping everyone to enjoy it now and in the future.

Our Mission

Access, Learning and Enjoyment

Care, Conservation and Protection

Resilience

Staff and Volunteers

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2020

Strategy

The Board of Trustees and Leadership Team have created a new five-year strategy entitled Moving Forward: 2020-2025 . It focuses on three major outcomes to be delivered through a one-Trust philosophy.

Focusing on outcomes

During the next five years we will fulfil our vision and mission by focusing on three major outcomes:

In achieving these outcomes we will be:

Inclusive and relevant

Our services are for everyone and will help people feel valued, respected and included. We will use our collections and heritage resources to make a difference for people of all ages and to benefit their wellbeing.

Collaborative and connected

Working with others is at the heart of how we do things. We will seek opportunities to enable rich and diverse heritage outcomes through creative partnerships of many kinds.

Sustainable and responsible

Our values and principles are expressed in the way we offer services. We will strive in all we do to be environmentally, socially and financially sustainable and responsible.

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2020

The strategy is supported by the following additional documents:

Activities

Through our Museums Service we run three Accredited Museums – the Museum of Somerset and Somerset Military Museum in Taunton and Somerset Rural Life Museum in Glastonbury. We manage the Brick and Tile Museum in Bridgwater and provide curatorial support to Weston-Super-Mare’s revitalised museum. Three million museum objects, ranging from outstanding geological, Iron Age and Roman collections to textiles and fine art, tell the remarkable story of Somerset and the South West.

We are the major custodians of written evidence about Devon and Somerset. Our Accredited Archive and Local Studies Services have centres in Taunton, Exeter and Barnstaple where we care for over 10 million archives dating from the 8th century to the present day. 200,000 printed reference works about the South West are held in the Local Studies collections. We also run the archive services on behalf of the unitary authorities of North Somerset and Torbay. Online access is being transformed through enhanced catalogues and indexes, and thousands of people use our digitised resources. We are taking a lead nationally in preserving digital archives and making them available.

Our Historic Environment and Estates Service supports local authorities, partners and the public by offering planning-related advice and information about Somerset’s archaeology and built heritage. We also provide services to Bath & North East Somerset Council. We are a Registered Archaeological Organisation and are responsible for over 400 acres of historic landscapes, including Cothelstone Hill in the Quantock Hills and Deer Leap in the Mendips.

Our Learning Service provides opportunities for people of all ages, including those with learning disabilities or affected by dementia. Over 10,000 children participate each year in workshops for Key Stages 1 and 2. We make authentic heritage objects available to schools for use in the classroom. Partnership projects to enhance learning take place with secondary schools and further and higher education institutions.

Our organisational culture is one of working together as a single trust to provide a diversity of heritage services. To achieve this aim we rely on our amazing staff and depend fundamentally on our wonderful volunteers, our Friends organisations, our Supporters and partners, and all those who champion our work. Our services are funded by core grants from Devon and Somerset County Councils, by a wide range of contracts and by commercial activity. We also raise new income and attract grant investment from generous funders.

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2020

STRATEGIC REPORT

Highlights and achievements

Despite the very significant disruption caused by the global Covid-19 pandemic, the Trust has experienced many positive outcomes and reached the end of the year in a relatively stable position. The health and wellbeing of staff, volunteers and the public was made the Trust’s priority and this principle guided it through some difficult experiences and decisions. We believe the Trust has emerged from the year as a stronger and more cohesive organisation that communicates better both externally and internally and seeks more than ever to be inclusive, relevant and innovative.

In broad terms, the year had three phases. From November to the end of February since key highlights and achievements included the following:

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2020

Between March and July the Trust experienced the full impact of Covid-19, leading to site closures, a fundamental shift in the method of working for all staff and some uncertainty about the future. Despite the challenges there continued to be many highlights:

The period from August to October saw some respite from the restrictions experienced throughout lockdown:

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2020

Coronavirus (Covid-19)

The Trust financial year commenced on 1 November 2019 and there were well-founded expectations of a positive year. Trading performance in the first quarter was modestly above average across all areas of the Trust and many projects were being delivered or were in development. By mid-February, however, the reality of a global pandemic was becoming unavoidable and by early March visitor numbers were rapidly declining.

On 18 March 2020 all Trust sites closed to the public and all staff began working remotely from 23 March. Those staff whose jobs involved visitor services and independent trading activity were entered into the Coronavirus Job Retention Scheme (furlough). The remaining staff were able to continue their jobs while working from home, assisted by a flexible ICT system. Although all sites closed, the majority of services provided by the Trust were able to continue. For many staff, activity intensified.

An emergency response budget was created and presented to the Board of Trustees on 23 April. This focused on realising significant savings on expenditure, understanding the scale of lost trading income, and forecasting new income from emergency furlough and from retail, hospitality and leisure grants. The Trust was also successful in its applications for Covid-19 response funding from the National Lottery Heritage Fund and the Culture Recovery Fund offered by Arts Council England. These grants enabled the Trust to invest in new, more flexible methods of service delivery including digital assets, physical site adaptations and equipment purchase.

A virtual public programme was created providing online engagement with audiences through activities, preparation of new content, the creation of a digital exhibitions platform and online talks. Core activities including collections-based and curatorial work, responses to enquiries, and preparation of learning materials continued, as did design work related to future exhibitions, maintenance of the Historic Environment Record, the Trust’s regulatory and advisory role for the historic environment, and some public realm works. The work of the Business Team concerning financial processing and HR was not seriously affected and media engagement continued. Work to ensure the safety of our sites and collections was prioritised during the emergency.

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2020

When the Trust’s museums and heritage centres reopened to the public in August they provided managed access through a pre-booked entry system. Although average visitor numbers were only 50% of those recorded in previous years, they exceeded expectations. Spend per head was higher than average at the museums, following the installation of more contactless donation points.

At year end it was evident that the Trust had achieved financial stability for the short-term. More than £150k savings were achieved in the revenue budget and emergency response grants meant the Trust could continue to employ its work force.

The ability of the Trust to respond so effectively was testament to the resilience and will of its staff, supported by a robust ICT system which provided a strong platform for communication and collaboration even when all staff were working remotely.

Performance

For the first time since its creation in 2014 the Trust experienced a major down-turn in its main performance indicators, wholly attributable to the restrictions imposed in response to Covid-19.

In the year ending 31 October 2020, the following was achieved (the arrows indicate whether the figure stated was an increase or a decrease on the previous year):

crease or a decrease on the previous year):
Visitors to our sites 42,907
School children attending learning sessions 7,234
Number of learning sessions for schools 295
People at informal learning sessions 2,566
Number of informal learning sessions 45
Visitors to our websites 740,241
Social media subscribers 28,078
Days of volunteer time 260
Heritage events held 142
People attending our heritage events 5,106
Cubic metres of archives accessioned 11.26
Archive documents repaired 152
Formal written external requests for information 13,713
Service complaints received − 6
Combined social media review (out of 5) − 4.6

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2020

Equalities, Diversity and Inclusion

The heritage sector in England often struggles to embrace the benefits of equality or to reflect or engage with the diversity of its local populations. This is true in terms of workforces, programming and audiences.

The South West Heritage Trust experiences the same difficulty as the wider sector. The profile of its workforce and audiences does not match that of its local communities and areas of operation when viewed in relation to the nine protected characteristics stated in the Equality Act 2010.

The trustees, Leadership Team and staff want to identify and take practical, realistic and deliverable steps to make our services more appealing and accessible to a broader, more representative demographic. In 2021, the Trust will commission an independent specialist consultancy to assist with the preparation of an Equalities Action Plan. The plan will need to reflect the collective ambitions of the Trust, to suggest ways of removing barriers to inclusion and actively to target ways of making our services more accessible and relevant.

The Trust is committed to providing services where all staff, volunteers and visitors are treated, and treat others, with dignity, fairness and respect and which is free from harassment and bullying. All those who work for, volunteer with or access any of the services of the Trust are of equal importance and should be respected and valued for their contribution and commitment and for the role they fulfil.

Following the death of George Floyd on 25 May 2020, the Trust issued the following statement on Social Media:

South West Heritage Trust is committed to fairness and equality, and rejects racism in all its forms. We’re listening and we’re learning. #BlackLivesMatter

The creation and implementation of an Equalities Action Plan is the next step on our journey.

Partnerships and sector support

We have continued to provide support to a wide range of organisations.

We are an active participant in the South West Museum Development Programme and employ a full-time Museums Development Officer. The Programme provides support to 34 community museums in Somerset, offering advice and guidance about funding, training and cooperative projects. The importance of this work has been particularly demonstrated throughout a very challenging year.

In partnership with the British Museum and Local Authorities in Devon, Dorset and Somerset, the Trust provides the Portable Antiquities Scheme in the three counties. The number of finds reported has remained largely consistent throughout the year.

The Trust works closely with Weston Town Council to provide curatorial support and a temporary exhibitions programme for Weston Museum.

We look after the Archives of North Somerset Council and Torbay Council and are the designated repository for the Diocese of Bath and Wells. The Archives and Local Studies Services in Somerset and Devon are engaged with many partnership projects involving many community groups, societies and larger organisations including Exeter Cathedral and North Devon Athenaeum.

The Historic Environment Service advises the Bath and Wells Diocesan Advisory Committee and provides heritage-related planning advice to the District Councils in Somerset and to Bath and North East Somerset Council. It publishes the Somerset Archaeological Handbook which is the central reference point for developers, advisors and Local Authorities.

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2020

A three-year Memorandum of Understanding with Exeter University is in place and the relationship and opportunity for collaboration is highly valued by both partners.

FINANCIAL REVIEW AND RESERVES POLICY

Unrestricted income in the year totalled £3,222,632, with restricted income totalling £582,522. Of the £3,845,675 total expenditure, £3,816,160 (99.2%) was for charitable purposes. The remainder was for raising funds.

Pension schemes

Pension costs and liabilities are a key feature of the Trust’s accounts, impacting on both the Statement of Financial Activities and the Balance Sheet. The majority of Trust employees are members of the Local Government Pension Schemes (LGPS) managed by Devon and Somerset County Councils. Full details of these schemes are given in notes 1.14 and 1.15 to the accounts.

The LGPS schemes are defined benefit (final salary) schemes and the amounts included in the accounts are calculated by the schemes’ actuary in accordance with accounting standards (FRS102) at 31 October 2020. Actual contributions payable are calculated by the actuary on a triennial basis, the latest valuation having been carried out at 31 March 2019 with changes to contribution rates becoming effective from 1 April 2020. Contributions are set every three years as a result of the actuarial valuation of the Fund required by the Regulations. The next actuarial valuation of the Fund will be carried out at 31 March 2022 and will set contributions for the period from 1 April 2023 to 31 March 2026.

The LGPS funding valuations at 31 October 2020 show a combined deficit of £7.80m compared to £5.58m at 31 October 2019 on an FRS102 basis. The difference is partly due to the different dates but primarily to the different assumptions used by the actuary under the different bases.

The aggregate cash contributions to the two funds in the year ended 31 October 2020 were £208k compared to an actuarially-calculated expense charged in the Statement of Financial Activities of £359k.

The potential financial liability to the Trust, arising from the Local Government Pension Scheme indicative deficit, is monitored annually by the Finance Committee and the Board of Trustees in consultation with the Chief Executive. The risk proximity of any deficit crystallising is currently 36 years for the Somerset fund and 27 years for the Devon fund.

Trustees are aware that there may be significant fluctuations in the indicative deficit and the level of liability may go up or down from year to year. Any deficit reported in respect of either scheme will crystallise at the time when the final member leaves that scheme.

The trustees will seek the most advantageous repayment schedules from each of the lead fund administrators when it becomes known or predictable that a liability may become payable. The matter will be kept under review with trustees and with principal funders including during the review of any grant agreement.

Staff are protected from any risks because the total pension fund value is indemnified against the consequences of company dissolution.

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2020

The trustees remain of the opinion that the current pension arrangements are the best option for employees as well as for the financial stability of the Trust, and that risks are being effectively managed.

Reserves

At the year end the group reserves, excluding the long-term pension reserve, were as follows:

£’000
Unrestricted general funds 526
Designated funds 234
_
Total unrestricted funds 760
‗‗‗‗‗‗‗
Restricted funds 375
‗‗‗‗‗‗‗

At 31 October 2020, excluding the pension reserve, the Trust had unrestricted reserves of £760k including £208k of specific designated reserves and £48k of fixed assets to leave free reserves of £504k.

The Trust established a Reserves Policy during its first year of operation. It states that the ‘target provision for reserves should meet operational costs for three months’. This target is an organisational aspiration to be achieved by 2025. For our core operations, the target position would be reserves of approximately £700k.

Major Income

The Trustees are extremely grateful for the financial support and commitment of all funders of the Trust. In particular, the financial and other support provided by Somerset and Devon County Councils has been fundamental to the Trust’s success and has allowed it to celebrate, preserve and make accessible the remarkable heritage of the two counties. We here express our thanks to both local authorities for their support.

The Trustees are also most grateful to other major funders, including Arts Council England and the National Lottery Heritage Fund, as well as to individual donors and the Trust’s Founder Members and Supporters. Their generosity and support are very greatly appreciated.

Fundraising

The Trust’s income derives mainly from grants and from contracts for the provision of heritage services. Traded activities are undertaken across all operations and income received is a significant contributor to turnover. We invite and encourage visitors to our sites, and those who use our services, to make donations should they wish to do so.

Admission fees are charged at some sites and for some events, in which case this is clearly advertised.

The Trust does not engage in large-scale public fundraising campaigns, undertake door-to-door or private site fundraising or engage third-party membership and donation solicitation agencies.

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2020

FUTURE PLANS

The work and ambitions of the Trust are informed by six on-going strategic priorities:

The strategies and other documents setting out those priorities are subject to regular review and refreshment.

In addition, the Trust is seeking to achieve a wide range of specific project goals over the next three years. They are grouped below according to the strategic outcomes set out in our 5-year strategy ‘Moving Forward’.

1. Supporting People and Communities

North Devon Record Office Development. The Trust will further develop its role as a trusted provider of heritage services in North Devon and aim to increase the resilience of the service. Acting as a catalyst and innovator for new projects, the Trust will work in partnership with other local services to develop new activities and means of engagement, seeking funding as appropriate.

The Stories that Make Us. An overarching theme, ‘The Stories That Make Us’, is proposed as a way of focusing and coordinating the public programme in the immediate post-COVID-19 world. It is a theme reflecting the Trust’s role as the teller and facilitator of many stories arising from our collections, our sites and our audiences.

The Trust’s Audience Development Strategy will be used to shape the organisation’s work with audiences and to drive an inclusive approach to community engagement and programming.

Digital Content and Infrastructure. We will use and develop digital infrastructure and skills to reach new and existing audiences through access to heritage collections and the creation of new dynamic content. Digital technology will also be used to drive up income, improve the use of data and help the Trust grow as a charity and heritage business.

Wellbeing and Inclusion. To aid recovery from the pandemic we will promote wellbeing and inclusion for individuals and communities through programmes and projects to support people, including reminiscence sessions, social prescribing, and support for underserved communities. We will seek to include new sites and resources in our portfolio of visitor opportunities.

Avalon Archaeology Park. The Avalon Archaeology Park at the Avalon Marshes Centre (AMC) near Glastonbury includes full-size replicas of a Romano-British building with a working hypocaust, a Saxon long hall, a Viking long boat and the Bulleid and Gray excavation hut. The Avalon Archaeology Park will be operated as a new visitor attraction in the mid-Somerset area, telling the story of the heritage of the Avalon Marshes and providing unique themed learning and wellbeing experiences.

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2020

2. Protecting Our Heritage

Digital Preservation. We will develop skills, knowledge and capacity to facilitate care of and access to digital archives. We will pilot the receipt of large and complex datasets, exploring options for a shared services model and for managing the historic backlog.

Future Development of Archive Conservation. We will ensure a strong future for conservation and preservation work related to collections, including through succession planning, strategic delivery across both counties, and support for project work and volunteering. We will invest in our strongroom accommodation to ensure collections are kept in excellent conditions.

Collections Development. Archive and museum collections cared for by the Trust will continue to be the focus of development and research. We will prioritise partnerships, including with the University of Exeter, and will seek to find new ways of understanding and interpreting the history of the West Country.

Cataloguing projects will be prioritised. Work will be undertaken towards creating full location indexes for the Devon Heritage Centre and North Devon Record Office and we will support the long-term management of County Council collections.

West Country Studies Library. The West Country Studies Library (WCSL) will be moved to a new location within Great Moor House, providing high quality storage on bespoke mobile shelving. The move will a catalyst for raising the profile of the Library, enabling increased engagement and public access to this rich resource.

Dynamic Collections. We will engage new audiences in rural and coastal communities through a programme of external events in non-heritage settings.

Somerset Brick and Tile Museum. We will commission an architect to explore a deliverable new future for the Brick and Tile Museum. Partnership and community participation will be at the heart of the project, which will include the redevelopment of the museum site and the continuation of the unique relationship with Discovery (Learning Disability Services). The venue will become an innovative multi-use site which actively contributes to the cultural regeneration of Bridgwater.

Norton Hillfort. Norton Fitzwarren Hillfort is the latest addition to the landscape sites managed by the Trust. The hillfort will be the setting for a landscape project to interpret the site and provide learning experiences and health and wellbeing opportunities for local people. External funding will be secured for the project, which will act as a pilot to develop our ability in realising the potential of the Trust’s other heritage landscape sites.

Local Heritage List. The Trust will complete the pilot Local Heritage Listing project, engaging with communities and groups to celebrate and protect for future generations heritage assets and features valued by local people.

Conservation Projects. We will undertake heritage asset management and enhancement, working in partnership with communities to protect the public realm.

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2020

3. Making an Impact

National Portfolio Organisation (NPO) status. The Trust intends to apply to Arts Council England (ACE) to be recognised as a National Portfolio Organisation (NPO). Applications are likely to be invited in 2021 for a new funding round starting in 2022 and preparatory work will be undertaken in the coming year.

The Trust’s relationship with ACE has developed significantly through successful participation in the Museums and Schools programme. The Trust strategy is closely aligned with the emergent national strategy for arts and heritage and NPO status would enable significant new benefits for people and collections.

Renewal of the Museum of Somerset. In 2021/2022 the Trust will seek investment in facilities and infrastructure at the Museum of Somerset to ensure the site continues to provide a high-quality visitor experience.

A wider project will be initiated, led by an options appraisal, to revitalise the widely-praised Museum of Somerset and extend its reach and relevance to the people of Somerset and visitors to the South West region.

Maximise Potential of Learning Offer to Schools. We will respond to the needs resulting from the pandemic to provide a rich learning offer to schools, through onsite and in-school workshops and loans. We will work to expand the offer, the potential partnership opportunities, new outdoor classroom facilities and continued development through the Museums and Schools programme, and the Take One, Arts Award and Takeover schemes.

Development and promotion of the HER. We will extend the use of the Historic Environment Record for Somerset and Bath & North East Somerset as a learning and engagement tool. We will add more data and layers of information.

Quantock Landscape Partnership Scheme. We will support wider access and engagement through the cataloguing and indexing of key Quantock archive collections and will create volunteer opportunities.

Review Financial Management system. Following an internal review process, we will implement a refreshed Financial Management System for the Trust. The refresh will seek to address the many of shortfalls of the current system and to enable direct access to data by project managers and budget holders.

Managed digitisation of services. We will prepare and implement a digitisation plan to manage data proliferation and to harness opportunities provided by the increased digitisation of service delivery, for example in relation to metrics.

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2020

PUBLIC BENEFIT

Social Benefits

Our services are major contributors to personal wellbeing and a sense of place. We want our services to be accessible, to address issues of diversity and to promote and enable equality of opportunity for everyone.

Our large community of knowledgeable and dedicated volunteers are crucial to what we do. Volunteering also contributes directly to people’s physical, emotional and mental wellbeing. We seek to ensure that volunteering takes place in an environment which is inclusive and which supports and respects the needs of individuals.

Experiencing heritage enhances wellbeing and brings people together, whether through learning activities for children, access to inspirational art and exhibitions, the discovery of family or community history, dementia-friendly reminiscence sessions or visiting a landscape site.

Economic Benefits

We are significant contributors to the local economy, fostering tourism, research, and the cultural and creative industries.

We prioritise local services and employment to ensure that we support our local economy. We are always seeking new sources of income through the provision of commercial services and trading activities. The profits we generate are reinvested to increase the public benefit we provide.

Environmental Sustainability

We are committed to local procurement wherever possible in order to support the economy and livelihoods of people in Devon and Somerset. This also helps us to reduce our carbon footprint.

Our sites, including two Grade I listed buildings and a Victorian farmhouse, are managed carefully to ensure that their environmental footprint is minimised. Somerset Heritage Centre is an A+ rated building, optimised for energy efficiency.

The Historic Environment Service works to ensure that developers in Somerset operate ethically in relation to the county’s built heritage and archaeology. The Service seeks to protect and promote the historic environment as an essential component in making communities economically and environmentally sustainable.

The Trust manages over 400 acres of historic landscape sites across Somerset which provide open-access enjoyment to the public. The sites also offset more than 25% of the total carbon emissions produced by the Trust.

We continue to seek ways to eliminate our use of single-use plastics by actively finding more sustainable options.

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2020

Statement of Trustees’ Responsibilities

The Trustees (who are directors of The South West Heritage Trust for the purposes of company law) are responsible for preparing the Trustee Directors’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for maintaining proper accounting records which 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2020

Statement as to disclosure to our auditors

In so far as the Trustees are aware:

AUDITORS

The auditors, Albert Goodman LLP, are deemed to be re-appointed under Section 487(2) of the Companies Act 2006.

SMALL COMPANY PROVISIONS

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

By order of the Trustees.

D H Gwyther Trustee The South West Heritage Trust

Date: 28 July 2021

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The South West Heritage Trust Independent Auditors' Report to the Trustees and Members For the Year Ended 31 October 2020

Opinion

We have audited the financial statements of The South West Heritage Trust (the 'parent charitable company') and its subsidiary (the ‘group’) for the year ended 31 October 2020, which comprise the consolidated Statement of Financial Activities, the consolidated and parent charitable company Balance Sheets, the consolidated and parent charitable company Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Generally Accepted Accounting Practice, 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:

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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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:

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The South West Heritage Trust Independent Auditors' Report to the Trustees and Members For the Year Ended 31 October 2020

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report, other than the financial statements and our auditor’s report thereon. 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.

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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report included within the Trustees’ Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

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Page 22

The South West Heritage Trust Independent Auditors' Report to the Trustees and Members For the Year Ended 31 October 2020

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities set out on page 19, the trustees (who are also the directors of the parent 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 and 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 parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s 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 auditor’s 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.

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 auditor's report.

Use of our report

This report is made solely to the group and parent charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the group and parent charitable company’s members and trustees those matters we are required to state to them in an auditor’s 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 group and parent charitable company and the group and parent charitable company’s members as a body and the parent charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Michelle Ferris BSC (Hons) FCA DChA (Senior Statutory Auditor) For and on behalf of Albert Goodman LLP, Statutory Auditor

Goodwood House Blackbrook Park Avenue Taunton Somerset TA1 2PX

Date: 29 July 2021

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Page 23

The South West Heritage Trust

Consolidated Statement of Financial Activities (including an Income & Expenditure account) For the Year Ended 31 October 2020

Unres-
tricted
Notes
£
Income from:
Donations and legacies
2
211,800
Charitable activities
3
2,804,084
Other trading activities
4
206,748
Investments
5
-
Total income
3,222,632
Expenditure on:
Raising funds
6
29,515
Charitable activities
6
3,289,646
Total expenditure
3,319,161
Net expenditure
(96,529)
Transfer between funds
68,299
Other recognised gains
Actuarial (losses)/gains on defined
benefit pension schemes
(1,855,000)
Net movement in
funds for the year
(1,883,230)
Reconciliation of funds
Total funds brought forward
(5,153,598)
Total funds carried forward
(7,036,828)		 Unres-
tricted
Notes
£
Income from:
Donations and legacies
2
211,800
Charitable activities
3
2,804,084
Other trading activities
4
206,748
Investments
5
-
Total income
3,222,632
Expenditure on:
Raising funds
6
29,515
Charitable activities
6
3,289,646
Total expenditure
3,319,161
Net expenditure
(96,529)
Transfer between funds
68,299
Other recognised gains
Actuarial (losses)/gains on defined
benefit pension schemes
(1,855,000)
Net movement in
funds for the year
(1,883,230)
Reconciliation of funds
Total funds brought forward
(5,153,598)
Total funds carried forward
(7,036,828)		 Res-
tricted
£
30,065
551,735
657
65		 2020
Total
£
241,865
3,355,819
207,405
65		 Unres-
tricted
£
85,636
2,763,308
348,857
-		 Res-
tricted
£
48,950
485,324
4,004
115		 2019
Total
£
134,586
3,248,632
352,861
115
3,222,632 582,522 3,805,154 3,197,801 538,393 3,736,194
-
526,514		 29,515
3,816,160		 58,188
3,598,085		 -
581,642		 58,188
4,179,727
3,319,161 526,514 3,845,675 3,656,273 581,642 4,237,915
56,008
(68,299)
-		 (40,521)
-
(1,855,000)		 (458,472)
(306)
(694,000)		 (43,249)
306
-		 (501,721)
-
(694,000)
(1,883,230)
(5,153,598)		 (12,291)
387,117		 (1,895,521)
(4,766,481)		 (1,152,778)
(4,000,820)		 (42,943)
430,060		 (1,195,721)
(3,570,760)
(7,036,828) 374,826 (6,662,002) (5,153,598) 387,117 (4,766,481)

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

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Page 24

The South West Heritage Trust – Company Registration Number: 09053532 Balance Sheet and Consolidated Balance Sheet As at 31 October 2020

Notes
Fixed assets
Tangible fixed assets
9
Investments
10
Current assets
Stock
11
Debtors
12
Cash at bank and in hand
Liabilities:
Creditors: amounts falling due within
13
one year
Net current assets
Net assets excluding pension liabilities
Defined benefit pension scheme
liabilities
17
Total net liabilities including pension
liabilities
The funds of the charity:
Unrestricted funds:
General funds
Designated funds
Unrestricted funds excluding pension
reserve
Pension reserve
Total unrestricted funds
14
Restricted funds
14
Total charity funds		 2020
£
Group
128,406
-
128,406
20,804
399,994
1,577,561
1,998,359
(991,767)
1,006,592
1,134,998
(7,797,000)
(6,662,002)
526,256
233,916
760,172
(7,797,000)
(7,036,828)
374,826
(6,662,002)		 2020
£
Charity
128,406
1
128,407
-
441,982
1,464,480
1,906,462
(982,085)
924,377
1,052,784
(7,797,000)
(6,744,216)
444,042
233,916
677,958
(7,797,000)
(7,119,042)
374,826
(6,744,216)		 2019
£
Group
283,033
-
283,033
19,524
1,143,604
463,630
1,626,758
(1,093,272)
533,486
816,519
(5,583,000)
(4,766,481)
172,574
256,828
429,402
(5,583,000)
(5,153,598)
387,117
(4,766,481)		 2019
£
Charity
283,033
1
283,034
-
1,232,587
344,361
1,576,948
(1,078,618)
498,330
781,364
(5,583,000)
(4,801,636)
137,419
256,828
394,247
(5,583,000)
(5,188,753)
387,117
(4,801,636)

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The South West Heritage Trust – Company Registration Number: 09053532 Balance Sheet and Consolidated Balance Sheet (continued) As at 31 October 2020

The trustees have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

The notes on pages 28 - 57 form part of these accounts.

Approved by the Board for issue on 28 July 2021 and signed on their behalf by:

D H Gwyther Trustee

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Page 26

The South West Heritage Trust Statement of Cash Flows and Consolidated Statement of Cash Flows For the Year Ended 31 October 2020

Notes
Cash flows from operating activities
Net expenditure for the year
Adjustments to cash flows from non-cash items:
Depreciation and amortisation
9
Profit on disposal of fixed assets
Interest receivable
5
Defined benefit pension scheme
cost less contributions payable
Defined benefit pension scheme
finance cost
Working capital adjustments
Decrease / (increase) in stocks
11
(Increase) / decrease in debtors
12
Increase / (decrease) in creditors
13
Net cash flow from operations
Cash flows from investing activities
Purchase of tangible fixed assets
9
Interest received
5
Net increase in cash and
cash equivalents
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
Cash & Cash equivalents reconciliation:
Cash at bank
Total cash & cash equivalents at the
end of the reporting period		 2020
£
Group
(40,521)
154,627
-
(65)
109,000
250,000
473,041
(1,280)
743,610
(101,505)
1,113,866
-
65
65
1,113,931
463,630
1,577,561
1,577,561
1,577,561		 2020
£
Charity
(87,580)
154,627
-
(65)
109,000
250,000
425,982
-
790,605
(96,533)
1,120,054
-
65
65
1,120,119
344,361
1,464,480
1,464,480
1,464,480		 2019
£
Group
(501,721)
164,403
-
(115)
119,000
386,000
167,567
10,082
(662,765)
187,620
(297,496)
(14,870)
115
(14,755)
(312,251)
775,881
463,630
463,630
463,630		 2019
£
Charity
(419,101)
164,403
-
(115)
119,000
386,000
250,187
-
(686,097)
185,027
(250,883)
(14,870)
115
(14,755)
(265,638)
609,999
344,361
344,361
344,361

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

1 Accounting Policies

The principal accounting policies adopted in the preparation of the financial statements are:

1.1 Basis of accounting

The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The South West Heritage 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 note(s) and all amounts are presented in £ sterling.

These financial statements consolidate the results of the Charity and its wholly owned subsidiary, The South West Heritage Trust Trading Limited, on a line by line basis. The “Group” heading within the balance sheet refers to the consolidated accounts of The South West Heritage Trust Trading Limited and The South West Heritage Trust.

In the parent company financial statements the investment in the trading subsidiary is accounted for at cost less impairment.

A separate Statement of Financial Activities or income and expenditure account, for the Charity itself has not been presented because the Charity has taken advantage of the exemptions afforded by Section 408 of the Companies Act 2006.

1.2 Legal status of the Trust

The Trust is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

The company is incorporated in England and Wales and the company registered office is detailed on page 1, reference and administration details.

1.3 Going Concern

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Trust to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Trust has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Trust’s ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting when preparing the financial statements.

The Trustees have considered the implications of Covid-19 on the charity. Taking into accounts the adjusted net asset position (before LGPS pension liabilities but considering annual employer payments) of the charity and given reserves and cash available, the Trustees consider that the charity remains a going concern.

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

1.4 Income

Income from grants and donations is recognised in the year in which they are receivable when there is evidence of entitlement, receipt is probable and the amount can be reliably measured. Where income has not been received for gift aid claims relating to donations received in the year, income is accrued.

Income from government grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Where no conditions are attached to the grant income they are recognised within donations and legacies and where conditions relating to performance of services are attached, grant income is recognised in income from charitable activities within the Statement of Financial Activities.

Income from charitable activities includes membership and admissions income. Membership income is accounted for in full in the year that the membership commences. Admission income is recognised on a cash basis, in the year the income is physically received.

Income from other trading activities, including rental income, is included in the period in which the group is entitled to receipt, it is probable that economic benefits will flow to the entity and the amount can be reliably measured.

The charity receives income from its subsidiary under gift aid and this is recognised upon physical receipt.

1.5 Interest receivable

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.

1.6 Expenditure

Resources expended are recognised on the accruals basis to match the period in which the expenditure was incurred.

Raising funds is expenditure incurred in generating the trading subsidiary funds and from other trading activities carried out by the trust.

Charitable activity expenditure comprises costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and costs of an indirect nature necessary to support them. Grants payable are at the discretion of the Trustees. Governance costs are those costs associated with the governance arrangements of the charity and relate to general running of the charity as opposed to those costs associated with charitable activities.

1.7

Operating leases

The trust classifies the lease of properties as operating leases as title remains with the lessor. Rental charges are charged on a straight line basis over the term of the lease.

1.8 Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of Trust.

Restricted funds are from donations and grants in which the donor or funder has specified are to be solely used for particular areas of the Trust’s work or for specific projects being undertaken by the Trust.

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

1.9 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Fixed assets under £500 are not capitalised. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life as follows:

Fixtures and fittings 5 years straight line Computer equipment 5 years straight line Motor Vehicles 5 years straight line Leasehold improvements 5 years straight line

1.10 Debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Trust will not be able to collect all amounts due to according to the original terms of the receivables.

Other debtors comprise amounts due from funders, prepayments and accrued income. Amounts due from funders are recognised when the Trust is entitled to the money, prepayments arise from the payments for services prior to benefit from those services, and accrued income is amounts due for services provided, recognised at the point of provision of the services.

1.11 Stock

Stock consists of shop stock for resale and publication stocks. Stock is valued at the lower of cost and net realisable value, after making allowances for obsolete and slow moving stock.

1.12 Cash at bank and in hand

Cash at bank and cash 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.

1.13 Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

1.14 Defined contribution pension

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as staff pension expense through the profit and loss when they are due.

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

1.15 Defined benefit pension obligation

The majority of employees of the charity are members of the Local Government Pension Schemes (LGPS) managed by Devon and Somerset County Councils.

These are funded defined benefit schemes where the assets are held separately from those of the charity in separate Trustee administered funds. Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one of more factors such as age, years of service and compensation.

The liability recognised in the Balance Sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the reporting date minus the fair value of the plan assets. The defined benefit obligation is measured using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future payments by reference to market yields at the reporting date on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability.

Actuarial gains and losses are recognised immediately in other gains and losses.

The net liability in the schemes at the date of the transfer of the employees from the respective councils is shown as a separate item in the Statement of Financial Activities.

1.16 Critical accounting estimates and areas of judgement

Estimates and judgements 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.

The Trust 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.

The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include discount rate. Any changes in these assumptions, which are disclosed in note 17, will impact the carrying amount of the pension liability. Furthermore a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2019 has been used by the actuary in valuing the pensions liability at 31 October 2020. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.

1.17 Taxation

As a registered charity, the company is not liable to corporation tax or capital gains tax to the extent that its income and gains are applicable to charitable purposes only. Value Added Tax (VAT) is partially recoverable by the company. Any irrecoverable VAT is added to the relevant cost and charged as an expense in the Statement of Financial Activities.

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

1.18 Covid-19

The Trustees have considered the implication of the Covid-19 pandemic on the operations of the charity. The charity has been able to continue to deliver a number of its charitable services, although some have been curtailed by the pandemic. A slight reduction in income has been forecast however there are sufficient reserves to cover the temporary reduction. Taking into account all reasonable circumstances, the trustees believe that the charity remains a going concern and no adjustments to the accounts are necessary

1.19 Financial Instruments

The charity only holds basic financial instruments as defined in FRS 102. The financial assets and liabilities of the charity and their measurements are as follows:

Financial assets – trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost and details in note 20. Prepayments are not financial instruments.

Cash at bank and deposit accounts– is classified as a basic financial instrument and is measured at face value.

Financial liabilities – trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost and detailed in note 20. Taxation and social security and the LGPS are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.

2 Donations and legacies

Unres-
tricted
funds
£
Donations and bequests
71,192
Exceptional government funding
Coronavirus Job Retention
Scheme grant
140,608
Other Covid grants
30,000
211,800		 Unres-
tricted
funds
£
Donations and bequests
71,192
Exceptional government funding
Coronavirus Job Retention
Scheme grant
140,608
Other Covid grants
30,000
211,800		 Res-
tricted
funds
£
26,178
3,887
-		 2020
Total
£
97,370
144,495
30,000
241,865		 Unres-
tricted
funds
£
85,636
-
-		 Res-
tricted
2019
funds
Total
£
£
48,950
134,586
-
-
-
-
211,800 30,065 85,636 48,950
134,586

The charity has been eligible to claim additional funding in year from government support schemes in response to the coronavirus outbreak. The funding received is shown above under “exceptional government funding”.

The charity furloughed some of its staff under the governments CJRS. The funding received £144,495 relates to staff costs which are included within note 8 as appropriate. Staff entered into the furlough scheme were those directly involved with trading activity at the sites which were required to close in line with Government lockdown rules.

*Donates government grants

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Page 32

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

3 Income from charitable activities

Unres-
tricted
funds
£
Fees for services and grants
Heritage services
Somerset County
Council
1,626,688
Devon County Council
411,521
North Somerset Council
150,517
Weston-Super-Mare
68,092
Town Council
Torbay Council
91,418
Other services
SCC - Registration
14,650
SCC - Records
56,217
Grant income
Bath & North East
Somerset Council
45,719
South Somerset
District Council
47,936
National Art Collection
Fund
-
Heritage Lottery Fund
-
The British Museum
-
Somerset County
Council
30,328
Arts Council England
1,375
DEFRA
9,709
Devon County Council*
-
Emily Estate
125,494
Under £10k
91,160
2,770,824
Memberships and
33,260
and subscriptions
2,804,084		 Unres-
tricted
funds
£
Fees for services and grants
Heritage services
Somerset County
Council
1,626,688
Devon County Council
411,521
North Somerset Council
150,517
Weston-Super-Mare
68,092
Town Council
Torbay Council
91,418
Other services
SCC - Registration
14,650
SCC - Records
56,217
Grant income
Bath & North East
Somerset Council
45,719
South Somerset
District Council
47,936
National Art Collection
Fund
-
Heritage Lottery Fund
-
The British Museum
-
Somerset County
Council
30,328
Arts Council England
1,375
DEFRA
9,709
Devon County Council*
-
Emily Estate
125,494
Under £10k
91,160
2,770,824
Memberships and
33,260
and subscriptions
2,804,084		 Res-
tricted
funds
£
-
-
-
-
-
-
-
-
-
-
47,000
63,670
122,549
243,676
-
35,971
-
38,869		 2020
Total
£
1,626,688
411,521
150,517
68,092
91,418
14,650
56,217
45,719
47,936
-
47,000
63,670
152,877
245,051
9,709
35,971
125,494
130,029
3,322,559
33,260
3,355,819		 Unres-
tricted
funds
£
1,596,688
389,806
146,989
61,366
96,647
14,277
55,266
46,944
70,042
-
-
-
30,328
-
32,320
-
87,419
95,254		 Res-
tricted
funds
£
-
-
-
-
-
-
-
-
19,800
37,173
71,709
201,878
91,923
-
35,196
-
27,645		 2019
Total
£
1,596,688
389,806
146,989
61,366
-
96,647
14,277
55,266
46,944
-
70,042
19,800
37,173
71,709
232,206
91,923
32,320
35,196
87,419
122,899
2,770,824
33,260		 551,735
-		 2,723,346
39,962		 485,324
-		 3,208,670
39,962
2,804,084 551,735 2,763,308 485,324 3,248,632

*Donates government grants

Government grants

Income from government grants comprises grants made by local authorities to fund the principal activities and objectives of the charity via core funding and funding for specific projects. See above and note 2 for more information, including the amount and source of these grants. There are no unfulfilled conditions or other contingencies attached to these grants.

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

4 Other trading activities

----- Start of picture text -----
Unres- Res- Unres- Res-
tricted tricted 2020 tricted tricted 2019
funds funds Total funds funds Total
£ £ £ £ £ £
Merchandising income
- -
Shop sales 66,383 66,383 158,481 158,481
- -
Café concession 7,676 7,676 31,415 31,415
- -
74,059 74,059 189,896 189,896
Events and other sales
Digital images, publications
and research income 74,674 552 75,226 74,630 3,035 77,665
- -
Room hire 3,017 3,017 9,907 9,907
- -
Education income 15,988 15,988 28,523 28,523
- -
Rental income 18,682 18,682 17,586 17,586
Other income 20,328 105 20,433 28,315 969 29,284
132,689 657 133,346 158,961 4,004 162,965
206,748 657 207,405 348,857 4,004 352,861
----- End of picture text -----

5 Investment income

Unres-
tricted
funds
£		 Res-
tricted
funds
£		 2020
Total
£		 Unres-
tricted
funds
£		 Res-
tricted
funds
£		 2019
Total
£
Bank interest - 65 65 - 115 115

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

6 Expenditure

----- Start of picture text -----
Unres- Res- 2020 Unres- Res- 2019
tricted tricted Total tricted tricted Total
£ £ £ £ £ £
Cost of raising funds
- -
Trading costs 29,515 29,515 58,188 58,188
Charitable activities
Archives and local studies 931,220 73,092 1,004,312 1,095,667 29,971 1,125,638
Museums 849,671 261,000 1,110,671 926,422 302,156 1,228,578
Historic environment
and estates services 457,314 91,592 548,906 394,073 182,038 576,111
- -
Heritage services 893,362 893,362 969,923 969,923
- -
Learning 141,909 141,909 163,255 163,255
Closed projects 16,170 100,830 117,000 48,745 67,477 116,222
3,319,161 526,514 3,845,675 3,656,273 581,642 4,237,915
Other Other
Staff Direct 2020 Staff Direct 2019
costs costs Total costs costs Total
£ £ £ £ £ £
Cost of raising funds
- -
Trading costs 29,515 29,515 58,188 58,188
Charitable activities
Archives and local studies 901,099 103,213 1,004,312 982,326 143,312 1,125,638
Museums 846,950 263,721 1,110,671 855,607 372,971 1,228,578
Historic environment
and estates services 485,731 63,175 548,906 410,654 165,457 576,111
Heritage services 430,572 462,790 893,362 429,365 540,558 969,923
Learning 132,379 9,530 141,909 149,629 13,626 163,255
Closed projects 11,646 105,354 117,000 64,671 51,551 116,222
2,808,377 1,037,298 3,845,675 2,892,252 1,345,663 4,237,915
----- End of picture text -----

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

6 Expenditure (continued)

----- Start of picture text -----
Charity Subsidiary Total Total
2020 2019 2020 2019 2020 2019
£ £ £ £ £ £
Depreciation of
owned assets 154,627 164,403 - - 154,627 164,403
- -
Operating lease expenses 37,218 37,218 37,218 37,218
Auditors’ remuneration for:
Current auditors
- Audit services 8,036 8,189 1,961 1,547 9,997 9,736
- Other services 2,715 1,507 - - 2,715 1,507
----- End of picture text -----

7 Trustee directors

The charity trustees were not paid or received any other benefits from employment with the Trust or its subsidiary in the year (2019: £nil).

Four charity trustees were reimbursed £487 for travel expenses during the year (2019: three trustees - £1,230).

No charity trustee received payment for professional or other services supplied to the charity (2019: £nil).

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

8 Employees

Number of employees

The average monthly head count was 97 staff (2019: 97 staff) and the average number of full-time equivalent employees (including casual and part-time staff) during the year were as follows:

Management
Finance and admin
Service provision		 2020
5.0
8.5
57.0
70.5		 2019
5.0
9.5
59.2
73.7
Employment costs
Wages and salaries
Social security costs
Pension costs
Staff redundancy costs		 2020
£
2,028,976
158,534
612,861
8,006
2,808,377		 2019
£
1,946,698
164,739
755,026
25,789
2,892,252

During the year, total costs of £8,006 were paid in respect of one employee redundancy (2019: four employees - £25,789). The amounts were full and final with no outstanding amounts due at the balance sheet date.

The number of employees whose annual emoluments were £60,000 (excluding employer pension costs) or more were:

----- Start of picture text -----
2020 2019
number number
£60,000 - £70,000 - 1
£70,000 - £80,000 1 -
----- End of picture text -----

This employee is a member of the defined benefit pension scheme, into which contributions of £12,824 (2019: £10,885) were made.

The key management personnel of the group comprise those of the Trust and the key management personnel of its wholly owned subsidiary South West Heritage Trust Trading Company Ltd. The key management personnel of the group comprises of the Chief Executive Officer. The total employee benefits (includes gross pay, employer pension and employer national insurance) of the key management personnel of the Trust were £91,590 (2019: £88,106).

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

Employees (continued)

Pension costs

The company operates both defined benefit and defined contribution pension schemes. The charge to the Statement of Financial Activities for the year is shown above.

Contributions totalling £29,449 (2019 - £28,771) were payable to the schemes at the end of the year and are included in creditors. Further details of the defined benefit schemes are given in note 17.

9 Tangible fixed assets Group

Leasehold
improvements
£
Cost
At 1 November 2019
511,275
Additions
-
At 31 October 2020
511,275
Depreciation
At 1 November 2019
302,807
Charge for the year
102,255
At 31 October 2020
405,062
Net book value
At 31 October 2020
106,213
At 31 October 2019
208,468		 Leasehold
improvements
£
Cost
At 1 November 2019
511,275
Additions
-
At 31 October 2020
511,275
Depreciation
At 1 November 2019
302,807
Charge for the year
102,255
At 31 October 2020
405,062
Net book value
At 31 October 2020
106,213
At 31 October 2019
208,468		 Computer
equipment
£
234,932
-		 Motor
Vehicles
£
37,000
-		 Fixtures
& fittings
£
35,516
-		 Total
£
818,723
-
511,275 234,932 37,000 35,516 818,723
302,807
102,255		 171,700
46,107		 37,000
-		 24,183
6,265		 535,690
154,627
405,062 217,807 37,000 30,448 690,317
106,213 17,125 - 5,068 128,406
208,468 63,232 - 11,333 283,033

The above assets are all held by the charity.

10 Investments

South West Heritage Trust Trading Limited
Ordinary shares of £1 each		 Charity
Total
Total
2020
2019
£
£
1
1		 Charity
Total
Total
2020
2019
£
£
1
1

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

Investments (continued)

South West Heritage Trust Trading Limited (company no 09222720) was incorporated on 17 September 2014 as a wholly owned trading subsidiary of The South West Heritage Trust. The parent charity holds 100% of the issued share capital and 100% of the voting rights of the subsidiary trading company.

The principal activities of the company are the operation of a retail outlet at The Museum of Somerset and other trading activities. The registered office is the same as that of the Trust, detailed on page 1. The subsidiary gift aids its taxable profits to The South West Heritage Trust, and files audited accounts with the Registrar of Companies.

A summary of the trading results is shown below:

Turnover
Cost of sales
Gross profit
Administrative expenses
Operating profit
Investment income
Profit before tax & profit for the financial year
Retained earnings brought forward in subsidiary
Gift aid to The South West Heritage Trust
Retained earnings carried forward in subsidiary
The assets and liabilities were:
Current assets
Current liabilities
Total net assets
Called up share capital
Profit and loss reserve		 2020
£
187,743
(29,515)
158,228
(76,014)
82,214
-
82,214
35,155
(35,155)
82,214
156,031
(73,816)
82,215
1
82,214
82,215		 2019
£
307,565
(58,188)
249,377
(114,222)
135,155
-
135,155
117,775
(217,775)
35,155
161,867
(126,711)
35,156
1
35,155
35,156

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

----- Start of picture text -----
11 Stocks
2020 2019
Group Charity Group Charity
£ £ £ £
- -
Goods for resale 20,804 19,524
----- End of picture text -----

Stock recognised in the Statement of Financial Activities as an expense is £18,153 (2019: £42,641).

12 Debtors

----- Start of picture text -----
2020 2019
Group Charity Group Charity
£ £ £ £
Trade debtors 200,074 183,882 940,873 924,118
Prepayments and accrued income 199,920 193,966 202,731 196,412
- -
Amounts owed by group undertakings 64,134 112,057
399,994 441,982 1,143,604 1,232,587
----- End of picture text -----

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

13 Creditors: Amounts falling due within one year

Trade creditors
Other creditors
Accruals and deferred income
Taxation and social security
Deferred Income
Deferred income at 1 November 2019
Released from previous years
Resources deferred in the year
Deferred Income at 31 October 2020		 Group
£
48,460
31,268
750,319
161,720
991,767
Group
£
688,287
(688,287)
610,693
610,693		 2020
Charity
£
46,894
31,268
747,828
156,095
982,085
2020
Charity
£
687,411
(687,411)
609,886
609,886		 Group
£
84,989
31,372
770,123
206,788
1,093,272
Group
£
583,543
(583,543)
688,287
688,287		 2019
Charity
£
83,108
31,372
767,026
197,112
1,078,618
2019
Charity
£
583,111
(583,111)
687,411
687,411

At the balance sheet date the trust was holding funds received in advance from Somerset County Council and Devon County Council and subscriptions received in advance.

14 Summary of movement in funds- Group

Opening
balance
£
Unrestricted funds - Group
General
172,574
Designated funds - Group and Charity
Somerset Rural Life Museum
(Leasehold improvements fund)
49,005
National Archives
7,823
Project development fund
100,000
Capital reserve
100,000
Total designated funds
256,828
Pension fund
(5,583,000)
(5,153,598)		 Opening
balance
£
172,574		 Income
£
3,222,632		 Expenditure
£
(2,937,249)		 Transfers
& losses
£
68,299		 Closing
balance
£
526,256
-
-
-
-		 (22,912)
-
-
-		 -
-
-
-		 26,093
7,823
100,000
100,000
256,828 - (22,912) - 233,916
(5,583,000) - (359,000) (1,855,000) (7,797,000)
(5,153,598) 3,222,632 (3,319,161) (1,786,701) (7,036,828)

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

14 Summary of movement in funds- Group (continued)

----- Start of picture text -----
Opening Transfers Closing
balance Income Expenditure & losses balance
£ £ £ £ £
Restricted funds - Group and Charity
Somerset Rural Life Museum
- -
(Leasehold improvements fund) 159,463 (79,343) 80,120
Archive and museum donations 53,850 65 - - 53,915
- - -
Castle House Project 40,116 40,116
Historic Environment and Estates 38,727 61,300 (68,542) - 31,485
Somerset Levels 11,752 (213) (2,319) - 9,220
HES Hinkley 859 8,686 (6,915) - 2,630
- - -
Portable Antiques 72,907 (72,907)
North Devon Record Office 609 45,613 (47,531) - (1,309)
Exeter Cathedral 2,280 2,083 (2,683) - 1,680
- -
Museum Development Officer 28,000 (36,102) 8,102
North Somerset Collections 1,401 - (703) - 698
Museums and Schools 16,748 42,580 (59,328) - -
Charthouse/Blackmoor
- -
Land Holding 8,000 (5,650) 2,350
- -
Avalon Archaeology Park 32,211 (31,966) (245)
-
Painter Pilgrim 26,427 23,330 (67,772) 18,015
- -
West Country Studies 6,181 2,700 8,881
- -
Gravity project 19,444 (8,166) 11,278
Wild Hares & Hummingbirds
- -
Public Engagement Project 1,260 (392) (868)
Norman Garden - 1,955 (4,955) 3,000 -
Banner Project - 773 (1,091) 318 -
- -
Culture Recovery Fund 178,762 (96,621) 82,141
North Devon Athenaeum - 22,224 (17,876) - 4,348
- -
Heritage Emergency Fund 47,000 (12,196) 34,804
Somerset Pottery Fabric
- -
Type Series 12,938 (469) 12,469
387,117 582,522 (526,514) (68,299) 374,826
(4,766,481) 3,805,154 (3,845,675) (1,855,000) (6,662,002)
----- End of picture text -----

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

Summary of movement in funds- Charity

----- Start of picture text -----
Opening Transfers Closing
balance Income Expenditure & losses balance
£ £ £ £ £
Unrestricted funds - Charity
General 137,419 3,131,602 (2,893,278) 68,299 444,042
- -
Designated funds - Charity 256,828 (22,912) 233,916
Pension fund (5,583,000) - (359,000) (1,855,000) (7,797,000)
(5,188,753) 3,131,602 (3,275,190) (1,786,701) (7,119,042)
Restricted funds - Charity 387,117 582,522 (526,514) (68,299) 374,826
(4,801,636) 3,714,124 (3,801,704) (1,855,000) (6,744,216)
----- End of picture text -----

The breakdown of designated and restricted funds is as per the group funds statement.

Summary of movement in funds – Group (2019)

----- Start of picture text -----
Opening Transfers Closing
balance Income Expenditure & losses balance
£ £ £ £ £
Unrestricted funds - Group
General 107,413 3,193,945 (3,113,574) (15,210) 172,574
Designated funds - Group and Charity
Somerset Rural Life Museum
-
(Leasehold improvements fund) 71,917 (22,912) 49,005
National Archives - 3,856 - 3,967 7,823
New Burdens 3,850 (14,787) 10,937 -
- - -
Project development fund 100,000 100,000
- - -
Capital reserve 100,000 100,000
Total designated funds 275,767 3,856 (37,699) 14,904 256,828
Pension fund (4,384,000) - (505,000) (694,000) (5,583,000)
(4,000,820) 3,197,801 (3,656,273) (694,306) (5,153,598)
----- End of picture text -----

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

14 Summary of movement in funds – Group (2019) (continued)

Opening
balance
£
Restricted funds - Group and Charity
Somerset Rural Life Museum
(Leasehold improvements fund)
238,815
Archive and museum donations
57,702
Castle House Project
44,381
Historic Environment and Estates
39,136
Somerset Levels
9,038
HES Hinkley
1,101
Portable Antiques
-
Devon Remembers
-
North Devon Record Office
-
Exeter Cathedral
1,355
Museum Development Officer
-
North Somerset Collections
1,856
Sidmouth Collection Conservation
-
Somerset in the Home Front
5,303
Getting to Know You
Small Grant Big Improvement
-
Our Town, Our Museum,
Our Place
287
Museums and Schools
23,723
Ready to Borrow
7,363
Makers in Museums
Progamme
-
Charthouse/Blackmoor
Land Holding
-
Avalon Archaeology Park
-
Painter Pilgrim
-
West Country Studies
-
Gravity project
-
Wild Hares & Hummingbirds
Public Engagement Project
-
Norman Garden
-
Banner Project
-
430,060
(3,570,760)		 Opening
balance
£
Restricted funds - Group and Charity
Somerset Rural Life Museum
(Leasehold improvements fund)
238,815
Archive and museum donations
57,702
Castle House Project
44,381
Historic Environment and Estates
39,136
Somerset Levels
9,038
HES Hinkley
1,101
Portable Antiques
-
Devon Remembers
-
North Devon Record Office
-
Exeter Cathedral
1,355
Museum Development Officer
-
North Somerset Collections
1,856
Sidmouth Collection Conservation
-
Somerset in the Home Front
5,303
Getting to Know You
Small Grant Big Improvement
-
Our Town, Our Museum,
Our Place
287
Museums and Schools
23,723
Ready to Borrow
7,363
Makers in Museums
Progamme
-
Charthouse/Blackmoor
Land Holding
-
Avalon Archaeology Park
-
Painter Pilgrim
-
West Country Studies
-
Gravity project
-
Wild Hares & Hummingbirds
Public Engagement Project
-
Norman Garden
-
Banner Project
-
430,060
(3,570,760)		 Income
£
-
115
-
16,239
6,950
84,567
79,418
25,956
48,249
2,083
28,000
-
4,767
(1,745)
(126)
-
73,539
-
7,117
8,000
82,691
39,970
6,181
20,000
4,650
45
1,727		 Expenditure
£
(79,352)
-
(4,265)
(41,906)
(4,236)
(52,647)
(79,418)
(25,518)
(52,178)
(1,158)
(36,218)
(455)
(7,372)
(3,388)
(2,068)
-
(80,401)
(7,484)
(1,626)
-
(82,691)
(13,543)
-
(556)
(3,390)
(45)
(1,727)		 Transfers
& losses
£
-
(3,967)
-
25,258
-
(32,162)
-
(438)
4,538
-
8,218
-
2,605
(170)
2,194
(287)
(113)
121
(5,491)
-
-
-
-
-
-
-
-		 Closing
balance
£
159,463
53,850
40,116
38,727
11,752
859
-
-
609
2,280
-
1,401
-
-
-
-
16,748
-
-
8,000
-
26,427
6,181
19,444
1,260
-
-
430,060 538,393 (581,642) 306 387,117
(3,570,760) 3,736,194 (4,237,915) **(694,000) ** (4,766,481)

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

Summary of movement in funds – Charity- 2019

----- Start of picture text -----
Opening Transfers Closing
balance Income Expenditure & losses balance
£ £ £ £ £
Unrestricted funds - Charity
General (10,362) 3,204,089 (3,041,098) (15,210) 137,419
Designated funds - Charity 275,767 3,856 (37,699) 14,904 256,828
Pension fund (4,384,000) - (505,000) (694,000) (5,583,000)
(4,118,595) 3,207,945 (3,583,797) (694,306) (5,188,753)
Restricted funds - Charity 430,060 538,393 (581,642) 306 387,117
(3,688,535) 3,746,338 (4,165,439) (694,000) (4,801,636)
----- End of picture text -----

The breakdown of designated and restricted funds is as per the group funds statement.

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

14 Summary of movement in funds (continued)

Purpose of material funds:

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Page 46

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

15 Analysis of assets between funds – Group

----- Start of picture text -----
Other net
Tangible Cash at current Creditors
fixed bank and assets/ more than
assets in hand (liabilities) one year Total
£ £ £ £ £
Unrestricted funds 22,193 1,153,975 (649,912) - 526,256
- -
Designated funds 26,093 207,823 233,916
Restricted funds 80,120 215,763 78,943 - 374,826
Pension reserve - - - (7,797,000) (7,797,000)
As at 31 October 2020 128,406 1,577,561 (570,969) (7,797,000) (6,662,002)
----- End of picture text -----

Analysis of assets between funds – Charity

Unrestricted funds
Designated funds
Restricted funds
Pension reserve
As at 31 October 2020		 Tangible
fixed
assets
£
22,194
26,093
80,120
-		 Cash at
bank and
in hand
£
1,040,894
207,823
215,763
-		 Other net
current
assets/
(liabilities)
£
(619,046)
-
78,943
-		 Creditors
more than
one year
£
-
-
-
(7,797,000)		 Total
£
444,042
233,916
374,826
(7,797,000)
128,407 1,464,480 **(540,103) ** **(7,797,000) ** (6,744,216)

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

Analysis of assets between funds – Group - 2019

----- Start of picture text -----
Other net
Tangible Cash at current Creditors
fixed bank and assets/ more than
assets in hand (liabilities) one year Total
£ £ £ £ £
Unrestricted funds 74,565 107,096 (9,087) - 172,574
- -
Designated funds 49,005 207,823 256,828
Restricted funds 159,463 148,711 78,943 - 387,117
Pension reserve - - - (5,583,000) (5,583,000)
As at 31 October 2019 283,033 463,630 69,856 (5,583,000) (4,766,481)
----- End of picture text -----

Analysis of assets between funds – Charity – 2019

Unrestricted funds
Designated funds
Restricted funds
Pension reserve
As at 31 October 2019		 Tangible
fixed
assets
£
74,566
49,005
159,463
-		 Cash at
bank and
in hand
£
(12,173)
207,823
148,711
-		 Other net
current
assets/
(liabilities)
£
75,026
-
78,943
-		 Creditors
more than
one year
Total
£
£
-
137,419
-
256,828
-
387,117
(5,583,000) (5,583,000)
283,034 344,361 153,969 (5,583,000) (4,801,636)

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Page 48

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

16 Income and expenditure account of the Trust

The company has taken advantage of Section 408 of the Companies Act 2006 and has not included its own Income and Expenditure Account or separate Statement of Financial Activities.

Prior to gift aid amounts received from the subsidiary, The South West Heritage Trust has net expenditure for the year of £122,735 (2019 - expenditure £523,876) based on income of £3,678,969 (2019 - £3,528,563). Gift aid distributions from trading subsidiary of £35,155 (2019: £217,775) were received in the year, in which the amount relates to the prior year trading profits plus an additional distribution during the year.

17 Pension commitments

The majority of the Trust’s employees belong to the Local Government Pension Schemes (LGPS) managed by Devon County Council (“DCC”) and Somerset County Council (“SCC”).

The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latest actuarial valuation for both LGPSs was 31 March 2019, with the next valuations being undertaken as at 31 March 2022.

At the year end there were outstanding contributions due to the schemes totalling £23,220 which are included within creditors.

The schemes are funded defined benefit pension schemes, with assets held in separate Trusteeadministrated funds. The total contributions made for the year ended 31 October 2020 were £293,000 of which employer’s contributions totalled £208,000 and employees’ contributions totalled £85,000. The current employer contribution rates for future years are:

The LGPS obligation relates to employees of the Trust who transferred as under the transfer agreements when the activities of the Trust were transferred from DCC and SCC on 1 November 2014. The obligation in respect of employees who transferred represents their cumulative service both prior to the transfer and following it.

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

Summary of net pension liability as at 31 October 2020:

SCC
£'000
Present value of defined benefit obligations
(12,559)
Fair value of share of scheme assets
6,819
Deficit in the schemes
(5,740)
Summary of net pension liability as at 31 October 2019:
SCC
£'000
Present value of defined benefit obligations
(10,439)
Fair value of share of scheme assets
6,510
Deficit in the schemes
(3,929)		 SCC
£'000
Present value of defined benefit obligations
(12,559)
Fair value of share of scheme assets
6,819
Deficit in the schemes
(5,740)
Summary of net pension liability as at 31 October 2019:
SCC
£'000
Present value of defined benefit obligations
(10,439)
Fair value of share of scheme assets
6,510
Deficit in the schemes
(3,929)		 DCC
Total
£'000
£'000
(5,196)
(17,755)
3,139
9,958
(2,057)
(7,797)
DCC
Total
£'000
£'000
(4,750)
(15,189)
3,096
9,606
(1,654)
(5,583)
(3,929)

Somerset County Council Pension Scheme

Principal Actuarial Assumptions

At 31 October At 31 October
2020 2019
Salary increases 3.35% 3.75%
Pension increases 2.35% 2.25%
Discount rate 1.60% 2.00%
The current mortality assumptions include sufficient
allowance for the future improvements in
mortality rates.
The assumed life expectations on retirement age 65 are:
At 31 October At 31 October
2020 2019
Retiring today
Males 23.4 23.3
Females 24.8 24.7
Retiring in 20 years
Males 24.7 24.7
Females 26.2 26.1

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

The Trust’s share of the assets and liabilities in the Somerset County Council Pension Fund are as follows:

Pension Commitments - Assets/liabs in SCC Pension Fund

Equities
Gilts
Other bonds
Property
Cash
Total market value of assets
Present value of scheme
liabilities - funded
Deficit in the scheme		 Fair
% of total
value
scheme
£'000
assets
4,793
70%
455
7%
706
10%
483
7%
382
6%
6,819
100%
(12,559)
(5,740)
As at 31 October 2020		 Fair
% of total
value
scheme
£'000
assets
4,535
70%
394
6%
624
9%
587
9%
370
6%
As at 31 October 2019
6,510
100%
(10,439)
(3,929)

Amounts recognised in the statement of financial activities are as follows:

Current service cost
Net interest cost
Administration expenses
Total		 2020
£'000
(339)
(77)
(5)
(421)		 2019
£'000
(429)
(82)
(5)
(516)

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

Movements in the present value of defined benefit obligations were as follows:

At 31 October At 31 October
2020 2019
£'000 £'000
At 1 November 2019 (10,439) (9,018)
Current service cost (338) (316)
Interest cost (209) (252)
Past service costs (1) (113)
Estimated benefits paid 84 97
Employee contributions (70) (59)
Actuarial gains/(losses) (1,586) (778)
At 31 October 2020 (12,559) (10,439)

Movements in the fair value of the charity’s share of scheme assets were as follows:

----- Start of picture text -----
At 31 October At 31 October
2020 2019
£'000 £'000
At 1 November 2019 6,510 6,019
Interest income 132 170
Expected return on Fund assets less interest (61) 226
Other acturial gains/(losses) 106 -
Employer contributions 151 138
Employee contributions 70 59
Estimated benefits paid (84) (97)
Administrative expenses (5) (5)
At 31 October 2020 6,819 6,510
----- End of picture text -----

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

Devon County Council Pension Scheme

Principal Actuarial Assumptions

----- Start of picture text -----
At 31 October At 31 October
2020 2019
Salary increases 3.40% 3.80%
Pension increases 2.40% 2.30%
Discount rate 1.55% 1.95%
----- End of picture text -----

The current mortality assumptions include sufficient allowance for the future improvements in mortality rates.

The assumed life expectations on retirement age 65 are:

At 31 October At 31 October
2020 2019
Retiring today
Males 22.9 22.5
Females 24.1 24.4
Retiring in 20 years
Males 24.3 24.2
Females 25.6 26.2

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

The Trust’s share of the assets and liabilities in the Devon County Council Pension Fund are as follows:

Pension Commitments - Assets/liabs in DCC Pension Fund Assets/liabs in DCC Pension Fund
As at 31 October 2020 As at 31 October 2019
Fair % of total Fair % of total
value scheme value scheme
£'000 assets £'000 assets
Gilts 127 4% 108 4%
UK equities 316 10% 502 16%
Overseas equities 1,540 49% 1,357 44%
Property 273 9% 263 8%
Infrastructure 140 4% 117 4%
Target return portfolio 330 10% 430 14%
Cash 27 1% 46 1%
Other bonds 159 5% 57 2%
Alternative assets 227 7% 161 5%
Private equity - n/a 55 2%
Total market of assets 3,139 100% 3,096 100%
Present value of scheme
liabilties - funded (5,196) (4,750)
Defecit in the scheme (2,057) (1,654)

Amounts recognised in the statement of financial activities for are as follows:

----- Start of picture text -----
At 31 October At 31 October
2020 2019
£'000 £'000
Current service cost (112) (157)
Net interest cost (32) (37)
Administration expenses (2) (2)
Total (146) (196)
----- End of picture text -----

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

Movements in the present value of defined benefit obligations were as follows:

----- Start of picture text -----
At 31 October At 31 October
2020 2019
£'000 £'000
At 1 November 2019 (4,750) (4,246)
Current service cost (112) (123)
Past service costs - (34)
Interest cost (92) (116)
Estimated benefits paid 81 65
Employee contributions (15) (18)
Actuarial gains/(losses) (308) (278)
At 31 October 2020 (5,196) (4,750)
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Movements in the fair value of the charity’s share of scheme assets were as follows:

----- Start of picture text -----
At 31 October At 31 October
2020 2019
£'000 £'000
At 1 November 2019 3,096 2,861
Interest income 60 79
Expected return on Fund assets (91) 136
Other actuarial gains 85 -
Employer contributions 57 69
Employee contributions 15 18
Estimated benefits paid (81) (65)
Administrative expenses (2) (2)
At 31 October 2020 3,139 3,096
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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

18 Obligations under leases

Operating leases-

The total future minimum rentals payable under non-cancellable operating leases funded by unrestricted funds are as follows:

----- Start of picture text -----
2020 2019
£ £
Land and Buildings
Expiry date:
Within one year 30,328 30,328
Within two and five years 121,312 121,312
More than five years 622,214 652,531
Other
Expiry date:
Within one year 5,110 6,697
-
Within two and five years 5,110
- -
More than five years
778,964 815,978
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The rent payable above is funded by the Council. The funding from Council to the Trust to pay for the rent on leased and sub-leased properties shall be a sum equivalent to the full value of the rent. This sum is ring-fenced and is not included in the core funding it receives from the Council for charitable activities.

19 Related party transactions

The charity has taken advantage of the exemption in FRS 102 “Related Party Disclosures” from disclosing transactions with other members of the group.

There were no other related party transactions other than with members of the group (2019: none).

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2020

----- Start of picture text -----
20 Financial Instruments
2020 2019
Group Charity Group Charity
£ £ £ £
Financial assets that are debt
instruments measured at amortised
cost 1,936,531 1,865,440 1,562,916 1,534,629
1,936,531 1,865,440 1,562,916 1,534,629
Financial liabilities measured at
amortised cost 189,923 186,674 169,426 165,324
189,923 186,674 169,426 165,324
Items of income, expenditure, gain and loss (group and charity)
Income Expense Net gains Net losses
£ £ £ £
2020
Financial assets measured at amortised
amortised cost 65 - - -
Financial liabilities measured at
amortised cost - - - -
65 - - -
2019
Financial assets measured at amortised
amortised cost 115 - - -
Financial liabilities measured at
amortised cost - - - -
115 - - -
----- End of picture text -----

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