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2022-10-31-accounts

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

For the Year Ended 31 October 2022

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

The South West Heritage Trust Contents For the Year Ended 31 October 2022

Page
Reference and Administrative Details 1
Trustee Directors’ Report 2 – 14
Independent Auditors’ Report 15 – 18
Consolidated Statement of Financial Activities 19
Balance Sheet and Consolidated Balance Sheet 20 – 21
Statement of Cash Flows and Consolidated Statement
of Cash Flows 22
Notes to Financial Statements 23 – 52

The South West Heritage Trust Reference and Administrative Details For the Year Ended 31 October 2022

Trustee Directors Rev. P M Beacham
G L Craig
Cllr A Davis
Prof. H R French
D H Gwyther
J Loader
S V Maberley
Lt Col. M J R Motum (Chair)
A M D Smallwood
Dr S A Windsor
Cllr A R Wyke
Prof. A Zalewska
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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Page 1

The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2022

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 2022, 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.

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2022

Patrons

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

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 objectives are set out in the Articles of Association as follows:

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

The legal agreements which underpin the operation of the Trust are the Transfer Agreements, Grant Agreements and Collections Management Agreements between Somerset Council and the Trust and Devon County Council 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 2022

The Leadership Team meets formally not less than ten 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 Board of Trustees 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 threeyear term applies to all Trustees and may be extended by one term.

The Annual Retirement Meeting for Trustees of the Trust took place on 28 April 2022. Michael Motum was appointed as Chair. Sam Hunt, Peter Gunner retired from the board. Sandy Maberley was appointed to a third term under the provisions of Article 26.12. Jill Loader, Dr Stuart Windsor and Professor Ania Zalewska were appointed to the board.

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 key risks are being actively and appropriately managed.

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

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2022

Care, Conservation and Protection

Resilience

Staff and Volunteers

Strategy

The Trust’s five-year strategy, 2020-2025, focuses on three major outcomes:

The strategy is supported by the following documents:

Service Areas

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 Museum. Three million museum objects, ranging from outstanding geological, Iron Age and Roman collections to textiles and fine art, tell the 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 provided through catalogues and indexes, and thousands of people use our digitised resources. We are working to preserve and make available digital archives.

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2022

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, Deer Leap in the Mendip Hills and Norton Fitzwarren Hillfort.

Our Learning Service provides opportunities for people of all ages, including those with learning disabilities or affected by dementia. Over 14,000 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 diverse heritage services. To achieve this aim we rely on our staff and volunteers, our Friends organisations, our Supporters and partners, and all those who champion our work. Our services are funded by core grants from Devon County Council and Somerset Council, by a wide range of contracts and by commercial activity. We also raise new income and attract grant investment from generous funders.

ACTIVITY REPORT

Highlights and Achievements

Context

The Covid-19 pandemic continued to have an impact during the early part of the year, not least because of the emergence of the Omicron Variant. Limits on visitor numbers at Trust sites continued until the lifting of pandemic restrictions in spring 2022, though the Trust continued to ensure that sites operated in a Covidsafe way. There was a strong appetite from audiences to engage with the Trust’s live events, including workshops, talks and learning opportunities. At the same time, the Trust continued to increase its digital reach and to develop its online presence.

Following a reconfiguration of business activities, a wide-ranging review of HR and finance procedures and policies commenced. Hybrid working was embedded in Trust activity, with work patterns reflecting the needs of individual roles.

By the autumn of 2022 there was a major focus on managing the implications of inflationary pressures and on planning the steps necessary to maintain the Trust’s resilience and effectiveness. A Budget Strategy for Recovery and Development was implemented and a Decarbonisation Working Group was formed to identify measures for addressing levels of energy use at Trust sites.

The Trust joined people across Devon and Somerset in expressing sympathy to the Royal Family on the death of Her Majesty Queen Elizabeth II. Flags were flown at half-mast at the Somerset Heritage Centre and the Museum of Somerset. The Trust responded to a wide range of media enquiries about the longstanding links of Queen Elizabeth, and of the new King Charles III, with the West Country and its heritage.

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2022

Archives and Local Studies

Historic Environment and Estates

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2022

Learning

Museums

Museum of Somerset

In Xanadu: Coleridge and the West Country brought the original manuscript of Kubla Khan to Somerset as a loan from the British Library and received much public attention.

Somerset Rural Life Museum

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2022

- Horse Power: The Story of Horses in Rural Somerset was accompanied in the Abbey Barn by a largescale kinetic contemporary artwork inspired by the history of the horse in agriculture.

Partnerships and Sector Support

We 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 Museum Development Officer. The Programme supports more than 30 community museums in Somerset, offering advice and guidance about funding, training and cooperative projects.

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 continues to remain 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 and the Diocese of Exeter. 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 the North Devon Athenaeum.

The Historic Environment Service advised the Bath and Wells Diocesan Advisory Committee, and provided heritage-related planning advice to district councils in Somerset and to Bath and North East Somerset Council. It provides the on-line Historic Environment Record for Somerset and B&NES and publishes the Somerset Archaeological Handbook, the central reference point for developers, advisors and local authorities.

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South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2022

FINANCIAL REVIEW AND RESERVES POLICY

Unrestricted income in the year totalled £3,131,966 (2021: £3,342,994) and restricted income £516,408 (2021: £465,571).

Total expenditure was £4,097,959 (2021: £3,955,290), of which £4,038,940 (98.6%) was for charitable purposes (2021: £3,933,370 (97.4%)). The remainder was for raising funds.

.

Pension schemes

The Trust operates defined benefit (final salary) schemes for employees who were transferred from the Local Government Pension Schemes (LGPS) of either Devon or Somerset County Councils. Details are given in notes 1.14, 1.15 and 17 of the accounts.

The LGPS schemes are reviewed triennially to set the Trust’s pension contribution rates for the following three years. Both schemes are subject to an annual actuarial valuation which features in the Statement of Financial Activities and the Balance Sheet. This valuation experiences significant annual volatility. In 2022 a surplus of £1.81m was forecast, a reduction on the previous year due to higher assumed mortality rates and a fall in life expectancy. Any actual deficit will only become payable when the final member leaves the relevant scheme, a date currently expected to be more than 25 years away. The deficit would then be likely to be repayable over a long period of years. The total pension fund value is indemnified against the possibility of the Trust’s dissolution.

Staff who have entered the Trust’s employment since it vested in 2014 have the right to be enrolled in a defined contribution scheme (NEST). The Trust pays a fixed monthly contribution into the scheme but has no further or future obligations.

Reserves

The Board of Trustees agreed a Reserves Policy in September 2015. It states that ‘the target provision of reserves should meet operational costs for three months’ and should be achieved by 2025. The target is equivalent to unrestricted reserves of approximately £700k.

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

£’000
Unrestricted general funds 572
Designated funds 527
Restricted funds 318

Most of the Trust’s reserves are cash or other current assets. Only £149,603 of fixed assets are recognised on the Balance Sheet.

Major Income Sources

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 Council and Devon County Council is fundamental to the Trust’s success and allows 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 continued support. In the Trust year ending 31 October 2022, the core grants from the two Councils accounted for £2,041,729 of the Trust’s total income (65% of the unrestricted income, 56% of the total income).

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2022

The Trustees are also grateful to other major funders, including Arts Council England, the National Lottery Heritage Fund and the British Museum. Further income is received for heritage services provided to North Somerset Council, Weston-super-Mare Town Council, Torbay Council and others. The Trustees also acknowledge individual donors and the Trust’s Founder Members and Supporters. Their generosity and support are greatly appreciated.

Traded Income and Fundraising

The Trust’s income derives mainly from grants and from contracts for the provision of services. Traded activities are also undertaken across all service areas and contribute significantly to Trust turnover. We encourage users of our services to make donations and admission fees are charged at some sites and for some events.

Traded activity is managed through South West Heritage Trust Trading Limited, a wholly-owned subsidiary of the Trust. It generated a profit of £73,306 during the financial year. Details of trading performance are contained in Note 10 of the accounts, and a separate set of accounts is produced annually. Two trustees and the Trust’s Chief Executive are the registered directors of the trading company.

The Trust is obliged to comply with the Charities (Protection and Social Investment) Act 2016 and to provide statements on specific areas of fundraising in the annual report. The Trust has facilities to accept digital and cash donations at its public sites and through carefully monitored activities such as its Supporters’ Scheme. It does not engage in large-scale public fundraising campaigns or undertake door-todoor or private site fundraising. The Trust does not engage third-party membership or donation solicitation agencies. As a result, it has not been necessary to monitor the behaviour of, or investigate a complaint involving, a third-party acting on the Trust’s behalf. The Trust has not bound itself to any voluntary scheme for regulating fundraising and has received no complaints about any fundraising activity it has undertaken.

Looking Forward

The Trust has set a balanced budget for the financial year to 31 October 2023. The Trustees are aware of a number of budgetary risks that will need to be carefully managed, including:

The Trust’s priorities for future years are set out in its three-year rolling Business Delivery Plan. They reflect the outcomes around which the Trust’s five-year strategy is structured.

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2022

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 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 traded activities. The profits we generate are reinvested to increase the public benefit we provide.

Environmental Sustainability

We are committed to local procurement wherever possible to support the economy and livelihoods of people in Devon and Somerset. This 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. We are working to make the strongrooms at Somerset Heritage Centre more energy efficient.

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 heritage landscape sites across Somerset which provide openaccess enjoyment to the public. The sites also estimated to offset more than 25% of the total carbon emissions produced by the Trust.

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The South West Heritage Trust Trustee Directors’ Report For the Year Ended 31 October 2022

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 2022

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.

Lt Col. M J R Motum

Trustee The South West Heritage Trust

Date: 27 April 2023

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The South West Heritage Trust Independent Auditors' Report to the Trustees and Members For the Year Ended 31 October 2022

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 2022, 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

In auditing the financial statements, we have concluded that the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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.

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The South West Heritage Trust Independent Auditors' Report to the Trustees and Members For the Year Ended 31 October 2022

Opinion on other matter 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 the knowledge and understanding of the group and 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:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities [set out on page 13], 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.

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The South West Heritage Trust Independent Auditors' Report to the Trustees and Members For the Year Ended 31 October 2022

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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The South West Heritage Trust Independent Auditors' Report to the Trustees and Members For the Year Ended 31 October 2022

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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: 27 April 2023

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The South West Heritage Trust

Consolidated Statement of Financial Activities (including an Income & Expenditure account) For the Year Ended 31 October 2022

----- Start of picture text -----
2022 2021
Unres- Res- Total Unres- Res- Total
tricted tricted tricted tricted
Notes £ £ £ £ £ £
Income from:
Donations and legacies 2 114,888 24,504 139,392 383,135 68,297 451,432
Charitable activities 3 2,723,420 469,745 3,193,165 2,738,470 396,759 3,135,229
Other trading activities 4 293,606 22,159 315,765 221,389 510 221,899
- -
Investments 5 52 52 5 5
Total income 3,131,966 516,408 3,648,374 3,342,994 465,571 3,808,565
Expenditure on:
- -
Raising funds 6 59,019 59,019 21,920 21,920
Charitable activities 6 3,515,335 523,605 4,038,940 3,304,711 628,659 3,933,370
Total expenditure 3,574,354 523,605 4,097,959 3,326,631 628,659 3,955,290
Net (expenditure)/income (442,388) (7,197) (449,585) 16,363 (163,088) (146,725)
- -
Transfer between funds (77,613) 77,613 (36,204) 36,204
Other recognised gains
Actuarial gains/(losses) on defined
- -
benefit pension schemes 9,330,000 9,330,000 1,157,000 1,157,000
Net movement in
funds for the year 8,809,999 70,416 8,880,415 1,137,159 (126,884) 1,010,275
Reconciliation of funds
Total funds brought forward (5,899,669) 247,942 (5,651,727) (7,036,828) 374,826 (6,662,002)
Total funds carried forward 2,910,330 318,358 3,228,688 (5,899,669) 247,942 (5,651,727)
----- End of picture text -----

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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The South West Heritage Trust – Company Registration Number: 09053532 Balance Sheet and Consolidated Balance Sheet As at 31 October 2022

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
asset/(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		 2022
£
Group
149,603
-
149,603
15,445
522,483
1,852,746
2,390,674
(1,122,589)
1,268,085
1,417,688
1,811,000
3,228,688
572,170
527,160
1,099,330
1,811,000
2,910,330
318,358
3,228,688		 2022
£
Charity
149,603
1
149,604
-
616,777
1,686,139
2,302,916
(1,108,138)
1,194,778
1,344,382
1,811,000
3,155,382
498,864
527,160
1,026,024
1,811,000
2,837,024
318,358
3,155,382		 2021
£
Group
23,382
-
23,382
17,442
864,315
1,691,167
2,572,924
(1,183,033)
1,389,891
1,413,273
(7,065,000)
(5,651,727)
538,859
626,472
1,165,331
(7,065,000)
(5,899,669)
247,942
(5,651,727)		 2021
£
Charity
23,382
1
23,383
-
938,252
1,557,133
2,495,385
(1,169,119)
1,326,266
1,349,649
(7,065,000)
(5,715,351)
475,235
626,472
1,101,707
(7,065,000)
(5,963,293)
247,942
(5,715,351)

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Page 20

The South West Heritage Trust – Company Registration Number: 09053532 Balance Sheet and Consolidated Balance Sheet (continued) As at 31 October 2022

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 23 - 52 form part of these accounts.

Approved by the Board for issue on 27 April 2023 and signed on their behalf by:

Lt Col. M J R Motum Trustee

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Page 21

The South West Heritage Trust Statement of Cash Flows and Consolidated Statement of Cash Flows For the Year Ended 31 October 2022

Notes
Cash flows from operating activities
Net expenditure for the year
Adjustments to cash flows from non-cash items:
Depreciation and amortisation
9
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		 2022
£
Group
(449,585)
47,419
(52)
122,000
332,000
51,782
1,997
341,832
(60,444)
335,167
(173,640)
52
(173,588)
161,579
1,691,167
1,852,746
1,852,746
1,852,746		 2022
£
Charity
(459,267)
47,419
(52)
122,000
332,000
42,100
-
321,475
(60,981)
302,594
(173,640)
52
(173,588)
129,006
1,557,133
1,686,139
1,686,139
1,686,139		 2021
£
Group
(146,725)
117,887
(5)
122,000
303,000
396,157
3,362
(464,321)
191,266
126,464
(12,863)
5
(12,858)
113,606
1,577,561
1,691,167
1,691,167
1,691,167		 2021
£
Charity
(128,135)
117,887
(5)
122,000
303,000
414,747
-
(496,270)
187,034
105,511
(12,863)
5
(12,858)
92,653
1,464,480
1,557,133
1,557,133
1,557,133

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Page 22

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

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.

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Page 23

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

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.

The charity notes the requirement of the SORP that large charities must report their results on an activities basis. The charity considers that they produce one activity – the deliverance of heritage services – and therefore reports on that basis.

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.

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Page 24

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

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.

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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Page 25

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

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 2022. 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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Page 26

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

1.18 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. 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. 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

----- Start of picture text -----
Unres- Res- Unres- Res-
tricted tricted 2022 tricted tricted 2021
funds funds Total funds funds Total
£ £ £ £ £ £
Donations and bequests 91,720 24,504 116,224 81,446 68,297 149,743
Exceptional government funding
Coronavirus Job Retention
- - - -
Scheme grant 125,337 125,337
- -
Other Covid grants 23,168 23,168 176,352 176,352
114,888 24,504 139,392 383,135 68,297 451,432
----- End of picture text -----

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 in the prior year totalling £125,337 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.

*Denotes government grants

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Page 27

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

3 Income from charitable activities

Unres-
tricted
funds
£
Fees for services and grants
Heritage services
Somerset County
Council
1,626,688
Devon County Council
415,041
North Somerset Council
159,792
Weston-Super-Mare
74,540
Town Council
Torbay Council
97,988
Other services
SCC - Registration
-
SCC - Records
59,733
Grant income
Bath & North East
Somerset Council
64,911
South Somerset
District Council
12,489
Somerset County History
Trust
-
Ministry of Housing,
Communities & Local
Government
-
North Devon Athemaeum
-
Mendip District Council
-
Heritage Lottery Fund
-
The British Museum
-
Somerset County
Council
45,742
Arts Council England
-
Bideford Town Council
-
DEFRA
14,627
Devon County Council*
-
Emily Estate
42,441
Under £10k
76,397
2,690,389
Memberships and
33,031
and subscriptions
2,723,420		 Unres-
tricted
funds
£
Fees for services and grants
Heritage services
Somerset County
Council
1,626,688
Devon County Council
415,041
North Somerset Council
159,792
Weston-Super-Mare
74,540
Town Council
Torbay Council
97,988
Other services
SCC - Registration
-
SCC - Records
59,733
Grant income
Bath & North East
Somerset Council
64,911
South Somerset
District Council
12,489
Somerset County History
Trust
-
Ministry of Housing,
Communities & Local
Government
-
North Devon Athemaeum
-
Mendip District Council
-
Heritage Lottery Fund
-
The British Museum
-
Somerset County
Council
45,742
Arts Council England
-
Bideford Town Council
-
DEFRA
14,627
Devon County Council*
-
Emily Estate
42,441
Under £10k
76,397
2,690,389
Memberships and
33,031
and subscriptions
2,723,420		 Res-
tricted
funds
£
-
-
-
-
-
-
-
-
-
26,676
34,962
37,417
15,567
48,048
57,951
62,335
94,397
12,000
-
32,521
-
47,871		 2022
Total
£
1,626,688
415,041
159,792
74,540
97,988
-
59,733
64,911
12,489
26,676
34,962
37,417
15,567
48,048
57,951
108,077
94,397
12,000
14,627
32,521
42,441
124,268
3,160,134
33,031
3,193,165		 Unres-
tricted
funds
£
1,626,688
413,296
152,474
68,847
93,185
17,178
56,813
26,148
53,776
-
-
-
-
-
-
30,328
6,209
-
12,510
-
104,887
52,788		 Res-
tricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
80,037
130,859
137,516
-
-
37,790
-
10,557		 2021
Total
£
1,626,688
413,296
152,474
68,847
93,185
17,178
56,813
26,148
53,776
-
-
-
-
-
80,037
161,187
143,725
-
12,510
37,790
104,887
63,345
2,690,389
33,031		 469,745
-		 2,715,127
23,343		 396,759
-		 3,111,886
23,343
2,723,420 469,745 2,738,470 396,759 3,135,229

*Denotes government grants

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Page 28

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

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.

4 Other trading activities

----- Start of picture text -----
Unres- Res- Unres- Res-
tricted tricted 2022 tricted tricted 2021
funds funds Total funds funds Total
£ £ £ £ £ £
Merchandising income
- -
Shop sales 57,568 57,568 26,349 26,349
- -
Café concession 16,966 16,966 2,394 2,394
- -
74,534 74,534 28,743 28,743
Events and other sales
Digital images, publications
and research income 81,070 10,449 91,519 93,413 510 93,923
- -
Room hire 5,434 5,434 1,410 1,410
-
Education income 15,935 11,650 27,585 26,432 26,432
- -
Rental income 29,893 29,893 18,469 18,469
-
Other income 86,740 60 86,800 52,922 52,922
219,072 22,159 241,231 192,646 510 193,156
293,606 22,159 315,765 221,389 510 221,899
----- End of picture text -----

5 Investment income

Unres-
tricted
funds
£		 Res-
tricted
funds
£		 2022
Total
£		 Unres-
tricted
funds
£		 Res-
tricted
funds
£		 2021
Total
£
Bank interest 52 - 52 - 5 5

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Page 29

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

6 Expenditure

Split by fund:

----- Start of picture text -----
Unres- Res- 2022 Unres- Res- 2021
tricted tricted Total tricted tricted Total
£ £ £ £ £ £
Cost of raising funds
- -
Trading costs 59,019 59,019 21,920 21,920
Charitable activities
Archives and local studies 1,000,798 182,772 1,183,570 1,072,209 111,608 1,183,817
Museums 1,179,591 173,598 1,353,189 835,913 308,186 1,144,099
Historic environment
and estates services 436,793 82,827 519,620 392,099 72,263 464,362
Heritage services 898,153 67,397 965,550 994,038 101,678 1,095,716
-
Closed projects 17,011 17,011 10,452 34,924 45,376
3,574,354 523,605 4,097,959 3,326,631 628,659 3,955,290
Split by cost:
Other Other
Staff Direct 2022 Staff Direct 2021
costs costs Total costs costs Total
£ £ £ £ £ £
Cost of raising funds
- -
Trading costs 59,019 59,019 21,920 21,920
Charitable activities
Archives and local studies 1,035,524 148,046 1,183,570 1,077,202 106,615 1,183,817
Museums 957,008 396,181 1,353,189 779,699 364,400 1,144,099
-
Historic environment
and estates services 439,447 80,173 519,620 418,150 46,212 464,362
Heritage services 489,652 475,898 965,550 529,990 565,726 1,095,716
- -
Closed projects 17,011 17,011 45,376 45,376
2,921,631 1,176,328 4,097,959 2,805,041 1,150,249 3,955,290
----- End of picture text -----

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Page 30

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

6 Expenditure (continued)

Depreciation of
owned assets
Operating lease expenses
Auditors’ remuneration for:
Current auditors
- Audit services
- Other services		 2022
£
47,419
32,889
6,950
4,714		 2021
£
117,887
37,218
5,950
4,200
Charity		 2022
£
-
-
1,250
750		 2021
£
-
-
754
500
Subsidiary		 Total
2022
£
47,419
32,889
8,200
5,464		 Total
2021
£
117,887
37,218
6,704
4,700

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 (2021: £nil).

Three charity trustees were reimbursed £421 for travel expenses during the year (2021: two trustees - £504).

No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).

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Page 31

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

8 Employees

Number of employees

The average monthly head count was 103 staff (2021: 93 staff) and the average number of full-time equivalent employees (including casual and part-time staff) during the year were as follows:

Number of employees

The average monthly number of full-time equivalent employees during the year was:

Management
Finance and admin
Service provision		 2022
6.0
7.0
56.0
69.0		 2021
5.0
8.0
54.0
67.0
Employment costs
Wages and salaries
Social security costs
Pension costs		 2022
£
2,011,672
179,915
730,044
2,921,631		 2021
£
1,955,490
163,191
686,360
2,805,041

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

£70,000 - £80,000 2022
number
1		 2021
number
1

This employee is a member of the defined benefit pension scheme, into which contributions of £15,631 (2021: £14,536) 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 £96,824 (2021: £93,687).

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Page 32

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

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 £31,377 (2021 - £29,973) 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 2021
511,275
Additions
43,703
At 31 October 2022
554,978
Depreciation
At 1 November 2021
507,317
Charge for the year
12,699
At 31 October 2022
520,016
Net book value
At 31 October 2022
34,962
At 31 October 2021
3,958		 Leasehold
improvements
£
Cost
At 1 November 2021
511,275
Additions
43,703
At 31 October 2022
554,978
Depreciation
At 1 November 2021
507,317
Charge for the year
12,699
At 31 October 2022
520,016
Net book value
At 31 October 2022
34,962
At 31 October 2021
3,958		 Computer
equipment
£
247,795
63,794		 Motor
Vehicles
£
37,000
-		 Fixtures
& fittings
£
35,516
66,143		 Total
£
831,586
173,640
554,978 311,589 37,000 101,659 1,005,226
507,317
12,699		 230,904
18,956		 37,000
-		 32,983
15,764		 808,204
47,419
520,016 249,860 37,000 48,747 855,623
34,962 61,729 - 52,912 149,603
3,958 16,891 - 2,533 23,382

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
2022
2021
£
£
1
1		 Charity
Total
Total
2022
2021
£
£
1
1

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Page 33

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

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:

----- Start of picture text -----
2022 2021
£ £
Turnover 270,813 188,011
Cost of sales (59,019) (21,920)
Gross profit 211,794 166,091
Administrative expenses (138,488) (102,467)
Operating profit 73,306 63,624
Investment income - -
Profit before tax & profit for the financial year 73,306 63,624
Retained earnings brought forward in subsidiary 63,624 82,214
Gift aid to The South West Heritage Trust (63,624) (82,214)
Retained earnings carried forward in subsidiary 73,306 63,624
The assets and liabilities were:
Current assets 206,592 175,310
Current liabilities (133,285) (111,685)
Total net assets 73,307 63,625
Called up share capital 1 1
Profit and loss reserve 73,306 63,624
73,307 63,625
----- End of picture text -----

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Page 34

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

----- Start of picture text -----
11 Stocks
2022 2021
Group Charity Group Charity
£ £ £ £
- -
Goods for resale 15,445 17,442
----- End of picture text -----

Stock recognised in the Statement of Financial Activities as an expense is £43,157 (2021: £15,743). 12 Debtors

----- Start of picture text -----
2022 2021
Group Charity Group Charity
£ £ £ £
Trade debtors 361,421 355,242 660,894 659,278
Prepayments and accrued income 159,201 142,701 203,421 181,203
- - -
Other debtors 1,861
- -
Amounts owed by group undertakings 118,834 97,771
522,483 616,777 864,315 938,252
----- End of picture text -----

Produced by Albert Goodman LLP

Page 35

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

13 Creditors: Amounts falling due within one year

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 2021
Released from previous years
Resources deferred in the year
Deferred Income at 31 October 2022		 Group
£
91,791
33,564
809,302
187,932
1,122,589
Group
£
697,683
(697,683)
704,466
704,466		 2022
Charity
£
88,397
33,564
807,302
178,875
1,108,138
2022
Charity
£
697,683
(697,683)
704,466
704,466		 Group
£
105,282
2,360
861,318
214,073
1,183,033
Group
£
610,693
(610,693)
697,683
697,683		 2021
Charity
£
102,867
2,360
858,882
205,010
1,169,119
2021
Charity
£
609,886
(609,886)
697,683
697,683

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.

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Page 36

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

14 Summary of movement in funds- Group

----- Start of picture text -----
Opening Transfers Closing
balance Income Expenditure & gains balance
£ £ £ £ £
Unrestricted funds - Group
General 538,859 3,128,205 (3,051,864) (43,030) 572,170
Designated funds - Group and Charity
Somerset Rural Life Museum
- - -
(Leasehold improvements fund) 3,959 (3,959)
National Archives 27,313 3,761 - (3,960) 27,114
- - -
Capital reserve 200,000 200,000
-
Museum priorities 115,200 (304) (9,986) 104,910
-
Archive & learning priorities 110,000 (13,186) (71,498) 25,316
- -
IT & resources priorities 75,000 54,820 129,820
- - -
Historic environment priorities 40,000 40,000
- - -
Covid income support fund 55,000 (55,000)
Total designated funds 626,472 3,761 (68,490) (34,583) 527,160
Pension fund (7,065,000) - (454,000) 9,330,000 1,811,000
(5,899,669) 3,131,966 (3,574,354) 9,252,387 2,910,330
----- End of picture text -----

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Page 37

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

14 Summary of movement in funds- Group (continued)

Opening
balance
£
Restricted funds - Group and Charity
Somerset Rural Life Museum
(Leasehold improvements fund)
-
Archive and museum donations
53,920
Castle House Project
40,116
Historic Environment and Estates
28,478
Somerset Levels
6,929
HES Hinkley
(1,845)
Portable Antiques
20,266
North Devon Record Office
2,258
Exeter Cathedral
2,678
Museum Development Officer
-
North Somerset Collections
698
Museums and Schools
5,687
Charthouse/Blackmoor
Land Holding
2,350
Avalon Archaeology Park
-
West Country Studies
8,881
Gravity project
11,278
Norman Garden
(461)
Culture Recovery Fund-Round 2
-
North Devon Athenaeum
5,000
Somerset Pottery Fabric
Type Series
12,259
Shop Window Graphics
2,502
Torbay Schools
4,185
Digita Preservation Shared
Services
(1,371)
Diocese of Bath & Wells
Probate accounts conservation
23,028
Cary of Torquay Archive
-
Debenhams Archive
-
Quantock Landscape Partnership
-
Somerset VCH
-
Together Again
-
Lark Trust
-
Glastonbury Town Investment Plan
-
Local Heritage List
21,106
247,942
(5,651,727)		 Opening
balance
£
Restricted funds - Group and Charity
Somerset Rural Life Museum
(Leasehold improvements fund)
-
Archive and museum donations
53,920
Castle House Project
40,116
Historic Environment and Estates
28,478
Somerset Levels
6,929
HES Hinkley
(1,845)
Portable Antiques
20,266
North Devon Record Office
2,258
Exeter Cathedral
2,678
Museum Development Officer
-
North Somerset Collections
698
Museums and Schools
5,687
Charthouse/Blackmoor
Land Holding
2,350
Avalon Archaeology Park
-
West Country Studies
8,881
Gravity project
11,278
Norman Garden
(461)
Culture Recovery Fund-Round 2
-
North Devon Athenaeum
5,000
Somerset Pottery Fabric
Type Series
12,259
Shop Window Graphics
2,502
Torbay Schools
4,185
Digita Preservation Shared
Services
(1,371)
Diocese of Bath & Wells
Probate accounts conservation
23,028
Cary of Torquay Archive
-
Debenhams Archive
-
Quantock Landscape Partnership
-
Somerset VCH
-
Together Again
-
Lark Trust
-
Glastonbury Town Investment Plan
-
Local Heritage List
21,106
247,942
(5,651,727)		 Income
£
-
52
-
46,479
6,438
431
57,951
64,300
2,778
28,000
-
76,023
-
48,048
1,273
-
-
5,013
37,417
6,000
-
3,450
5,626
18,500
5,000
9,563
26,676
13,361
3,500
15,567
34,962		 Expenditure
£
(3,959)
-
-
(36,189)
(1,642)
-
(78,217)
(57,271)
(5,456)
(37,482)
-
(64,098)
-
(44,028)
(28,710)
-
-
(5,013)
(39,217)
(10,805)
(2,582)
-
(2,079)
(32,614)
(1,285)
-
(458)
(959)
(11,564)
(3,740)
(9,792)
(46,445)		 Transfers
& gains
£
3,959
-
-
(2,927)
-
1,414
-
-
-
9,482
-
-
-
-
58,017
-
461
-
-
-
80
(4,185)
-
3,960
4,185
-
-
-
-
240
-
2,927		 Closing
balance
£
-
53,972
40,116
35,841
11,725
-
-
9,287
-
-
698
17,612
2,350
4,020
39,461
11,278
-
-
3,200
7,454
-
-
-
-
21,400
5,000
9,105
25,717
1,797
-
5,775
12,550
247,942 516,408 (523,605) 77,613 318,358
(5,651,727) 3,648,374 (4,097,959) 9,330,000 3,228,688

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Page 38

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

Summary of movement in funds- Charity

----- Start of picture text -----
Opening Transfers Closing
balance Income Expenditure & gains balance
£ £ £ £ £
Unrestricted funds - Charity
General 475,235 3,034,238 (2,967,579) (43,030) 498,864
Designated funds - Charity 626,472 3,761 (68,490) (34,583) 527,160
Pension fund (7,065,000) - (454,000) 9,330,000 1,811,000
(5,963,293) 3,037,999 (3,490,069) 9,252,387 2,837,024
Restricted funds - Charity 247,942 516,408 (523,605) 77,613 318,358
(5,715,351) 3,554,407 (4,013,674) 9,330,000 3,155,382
----- End of picture text -----

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

Summary of movement in funds – Group (2021)

Opening
balance
£
Unrestricted funds - Group
General
526,256
Designated funds - Group and Charity
Somerset Rural Life Museum
(Leasehold improvements fund)
26,093
National Archives
7,823
Project development fund
100,000
Capital reserve
100,000
Museum priorities
-
Archive & learning priorities
-
IT & resources priorities
-
Historic environment priorities
-
Covid income support fund
-
Total designated funds
233,916
Pension fund
(7,797,000)
(7,036,828)		 Opening
balance
£
526,256		 Income
£
3,295,504		 Expenditure
£
(2,879,497)		 Transfers
& gains
£
(403,404)		 Closing
balance
£
538,859
-
47,490
-
-
-
-
-
-
-		 (22,134)
-
-
-
-
-
-
-
-		 -
(28,000)
(100,000)
100,000
115,200
110,000
75,000
40,000
55,000		 3,959
27,313
-
200,000
115,200
110,000
75,000
40,000
55,000
233,916 47,490 (22,134) 367,200 626,472
(7,797,000) - (425,000) 1,157,000 (7,065,000)
(7,036,828) 3,342,994 (3,326,631) 1,120,796 (5,899,669)

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Page 39

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

14 Summary of movement in funds – Group (2021) (continued)

Opening
balance
£
Restricted funds - Group and Charity
Somerset Rural Life Museum
(Leasehold improvements fund)
80,120
Archive and museum donations
53,915
Castle House Project
40,116
Historic Environment and Estates
31,485
Somerset Levels
9,220
HES Hinkley
2,630
Portable Antiques
-
North Devon Record Office
(1,309)
Exeter Cathedral
1,680
Museum Development Officer
-
North Somerset Collections
698
Museums and Schools
-
Charthouse/Blackmoor
Land Holding
2,350
West Country Studies
8,881
Gravity project
11,278
Norman Garden
-
Culture Recovery Fund
82,141
Culture Recovery Fund-Round 2
-
North Devon Athenaeum
4,348
Heritage Emergency Fund
34,804
Somerset Pottery Fabric
Type Series
12,469
Shop Window Graphics
-
Torbay Schools
-
Digita Preservation Shared
Services
-
Diocese of Bath & Wells
Probate accounts conservation
-
Local Heritage List
-
374,826
(6,662,002)		 Opening
balance
£
Restricted funds - Group and Charity
Somerset Rural Life Museum
(Leasehold improvements fund)
80,120
Archive and museum donations
53,915
Castle House Project
40,116
Historic Environment and Estates
31,485
Somerset Levels
9,220
HES Hinkley
2,630
Portable Antiques
-
North Devon Record Office
(1,309)
Exeter Cathedral
1,680
Museum Development Officer
-
North Somerset Collections
698
Museums and Schools
-
Charthouse/Blackmoor
Land Holding
2,350
West Country Studies
8,881
Gravity project
11,278
Norman Garden
-
Culture Recovery Fund
82,141
Culture Recovery Fund-Round 2
-
North Devon Athenaeum
4,348
Heritage Emergency Fund
34,804
Somerset Pottery Fabric
Type Series
12,469
Shop Window Graphics
-
Torbay Schools
-
Digita Preservation Shared
Services
-
Diocese of Bath & Wells
Probate accounts conservation
-
Local Heritage List
-
374,826
(6,662,002)		 Income
£
-
5
-
47,104
815
1,525
92,562
51,852
2,083
28,000
-
59,167
-
-
-
5,572
19,862
58,487
35,447
-
-
2,502
15,000
5,000
5,626
34,962		 Expenditure
£
(80,120)
-
-
(50,111)
(3,106)
(6,000)
(72,296)
(48,285)
(1,085)
(36,404)
-
(53,480)
-
-
-
(6,033)
(101,683)
(58,487)
(34,795)
(34,924)
(210)
-
(10,815)
(6,371)
(10,598)
(13,856)		 Transfers
& gains
£
-
-
-
-
-
-
-
-
-
8,404
-
-
-
-
-
-
(320)
-
-
120
-
-
-
28,000
-		 Closing
balance
£
-
53,920
40,116
28,478
6,929
(1,845)
20,266
2,258
2,678
-
698
5,687
2,350
8,881
11,278
(461)
-
-
5,000
-
12,259
2,502
4,185
(1,371)
23,028
21,106
374,826 465,571 (628,659) 36,204 247,942
(6,662,002) 3,808,565 (3,955,290) 1,157,000 (5,651,727)

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Page 40

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

Summary of movement in funds – Charity- 2021

----- Start of picture text -----
Opening Transfers Closing
balance Income Expenditure & gains balance
£ £ £ £ £
Unrestricted funds - Charity
General 444,042 3,277,084 (2,842,487) (403,404) 475,235
Designated funds - Charity 233,916 47,490 (22,134) 367,200 626,472
Pension fund (7,797,000) - (425,000) 1,157,000 (7,065,000)
(7,119,042) 3,324,574 (3,289,621) 1,120,796 (5,963,293)
Restricted funds - Charity 374,826 465,571 (628,659) 36,204 247,942
(6,744,216) 3,790,145 (3,918,280) 1,157,000 (5,715,351)
----- End of picture text -----

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

Purpose of material funds:

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Page 41

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

14 Summary of movement in funds (continued)

Purpose of material funds (continued):

Produced by Albert Goodman LLP

Page 42

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

15 Analysis of assets between funds – Group

Tangible
Cash at
fixed
bank and
assets
in hand
£
£
Unrestricted funds
149,603
1,026,244
Designated funds
-
527,160
Restricted funds
-
299,342
Pension reserve
-
-
As at 31 October 2022
149,603
1,852,746
Analysis of assets between funds – Charity		 Tangible
fixed
assets
£
149,603
-
-
-		 Cash at
bank and
in hand
£
1,026,244
527,160
299,342
-		 Other net
current
assets/
(liabilities)
£
(603,677)
-
19,016
-		 Debtors
more than
one year
£
-
-
-
1,811,000		 Total
£
572,170
527,160
318,358
1,811,000
149,603 1,852,746 (584,661) 1,811,000 3,228,688
Unrestricted funds
Designated funds
Restricted funds
Pension reserve
As at 31 October 2022		 Tangible
fixed
assets
£
149,604
-
-
-		 Cash at
bank and
in hand
£
859,637
527,160
299,342
-		 Other net
current
assets/
(liabilities)
£
(510,377)
-
19,016
-		 Debtors
more than
one year
£
-
-
-
1,811,000		 Total
£
498,864
527,160
318,358
1,811,000
149,604 1,686,139 (491,361) 1,811,000 3,155,382

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Page 43

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

Analysis of assets between funds – Group - 2021

Tangible
Cash at
fixed
bank and
assets
in hand
£
£
Unrestricted funds
19,423
889,168
Designated funds
3,959
622,513
Restricted funds
-
179,486
Pension reserve
-
-
As at 31 October 2021
23,382
1,691,167
Analysis of assets between funds – Charity – 2021		 Tangible
fixed
assets
£
19,423
3,959
-
-		 Cash at
bank and
in hand
£
889,168
622,513
179,486
-		 Other net
current
assets/
(liabilities)
£
(369,732)
-
68,456
-		 Creditors
more than
one year
£
-
-
-
(7,065,000)		 Total
£
538,859
626,472
247,942
(7,065,000)
23,382 1,691,167 **(301,276) ** (7,065,000) (5,651,727)

Unrestricted funds
Designated funds
Restricted funds
Pension reserve
As at 31 October 2021
Tangible
fixed
assets
£
19,424
3,959
-
-
Cash at
bank and
in hand
£
755,134
622,513
179,486
-		 Other net
current
assets/
(liabilities)
£
(299,323)
-
68,456
-		 Creditors
more than
one year
£
-
-
-
(7,065,000)		 Total
£
475,235
626,472
247,942
(7,065,000)
23,383 1,557,133 **(230,867) ** (7,065,000) (5,715,351)

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Page 44

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

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 £522,891 (2021 - expenditure £210,349) based on income of £3,490,783 (2021 - £3,707,931). Gift aid distributions from trading subsidiary of £63,624 (2021: £82,214) 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 £23,462 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 2022 were £282,000 of which employer’s contributions totalled £215,000 and employees’ contributions totalled £67,000. 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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Page 45

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

----- Start of picture text -----
Summary of net pension liability as at 31 October 2022:
SCC DCC Total
£'000 £'000 £'000
Present value of defined benefit obligations (6,676) (3,060) (9,736)
Fair value of share of scheme assets 8,083 3,464 11,547
(Deficit)/surplus in the schemes 1,407 404 1,811
Summary of net pension liability as at 31 October 2021:
SCC DCC Total
£'000 £'000 £'000
Present value of defined benefit obligations (14,062) (5,508) (19,570)
Fair value of share of scheme assets 8,688 3,817 12,505
(Deficit)/surplus in the schemes (5,374) (1,691) (7,065)
----- End of picture text -----

Somerset County Council Pension Scheme
Principal Actuarial Assumptions
Salary increases
Pension increases
Discount rate		 At 31 October
At 31 October
2022
2021
3.70%
3.90%
2.70%
2.90%
4.75%
1.75%
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
2022 2021
Retiring today
Males 21.4 23.1
Females 23.2 24.6
Retiring in 20 years
Males 22.7 24.4
Females 24.6 26.1

Produced by Albert Goodman LLP

Page 46

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

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

Pension Co mmitments - 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
Fair
% of total
value
scheme
value
scheme
£'000
assets
£'000
assets
5,942
74%
6,356
70%
323
4%
461
7%
725
9%
888
10%
734
9%
623
7%
359
4%
360
6%
8,083
100%
8,688
100%
(6,676)
(14,062)
1,407
(5,374)
As at 31 October 2022
As at 31 October 2021
8,083
(6,676)
1,407

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

----- Start of picture text -----
2022 2021
£'000 £'000
Current service cost (438) (400)
Net interest cost (93) (91)
Administration expenses (5) (5)
Total (536) (496)
----- End of picture text -----

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Page 47

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

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

----- Start of picture text -----
At 31 October At 31 October
2022 2021
£'000 £'000
At 1 November 2021 (14,062) (12,559)
Current service cost (438) (400)
Interest cost (246) (201)
- -
Past service costs
Estimated benefits paid 67 65
Employee contributions (53) (52)
Actuarial gains/(losses) 8,056 (915)
At 31 October 2022 (6,676) (14,062)
----- End of picture text -----

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
2022 2021
£'000 £'000
At 1 November 2021 8,688 6,819
Interest income 153 110
Expected return on Fund assets less interest (909) 1,617
- -
Other actuarial gains/(losses)
Employer contributions 170 160
Employee contributions 53 52
Estimated benefits paid (67) (65)
Administrative expenses (5) (5)
At 31 October 2022 8,083 8,688
----- End of picture text -----

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Page 48

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

Devon County Council Pension Scheme

Principal Actuarial Assumptions

----- Start of picture text -----
2022 2021
Salary increases 3.80% 3.95%
Pension increases 2.80% 2.95%
Discount rate 4.80% 1.75%
----- 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:

he assumed life expectations on retirement age 65 are:
At 31 October At 31 October
2022 2021
Retiring today
Males 21.7 22.7
Females 22.9 24.0
Retiring in 20 years
Males 23.0 24.0
Females 24.3 25.4

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Page 49

The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

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

Gilts
UK equities
Overseas equities
Property
Infrastructure
Target return portfolio
Cash
Other bonds
Alternative assets
Private equity
Total market of assets
Present value of scheme
liabilties - funded
Defecit in the scheme		 Fair
% of total
value
scheme
£'000
assets
-
0%
274
8%
1,551
45%
345
10%
294
8%
295
9%
27
1%
681
20%
(3)
0%
-
0%
3,464
100%
(3,060)
404
As at 31 October 2022		 Fair
% of total
value
scheme
£'000
assets
487
13%
322
8%
2,091
55%
320
8%
162
4%
307
8%
49
1%
70
2%
-
n/a
9
0%
As at 31 October 2021
3,464
(3,060)		 3,817
100%
(5,508)
(1,691)
404

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

At 31 October At 31 October
2022 2021
£'000 £'000
Current service cost (102) (106)
Net interest cost (29) (31)
Administration expenses (2) (2)
Total (133) (139)

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

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

----- Start of picture text -----
At 31 October At 31 October
2022 2021
£'000 £'000
At 1 November 2021 (5,508) (5,196)
Current service cost (102) (106)
- -
Past service costs
Interest cost (95) (80)
Estimated benefits paid 180 77
Employee contributions (14) (15)
Actuarial gains/(losses) 2,479 (188)
At 31 October 2022 (3,060) (5,508)
----- End of picture text -----

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
2022 2021
£'000 £'000
At 1 November 2021 3,817 3,139
Interest income 66 49
Expected return on Fund assets (296) 643
- -
Other actuarial gains
Employer contributions 45 50
Employee contributions 14 15
Estimated benefits paid (180) (77)
Administrative expenses (2) (2)
At 31 October 2022 3,464 3,817
----- End of picture text -----

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The South West Heritage Trust Notes to the Financial Statements For the Year Ended 31 October 2022

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 -----
2022 2021
£ £
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 561,580 591,897
Other
Expiry date:
-
Within one year 3,073
-
Within two and five years 9,732
726,025 743,537
----- End of picture text -----

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 (2021: none).

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