2023-12-31-accounts

THE PALACE TRUST <<< (A Charitable Company Limited by Guarantee) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 COMPANY NUMBER: 09404519 CHARITY REGISTERED IN ENGLAND AND WALES NUMBER:1160830 WfLIS- SOAI£QSET

THE PALACE TRUST <<< CONTENTS Reference and Administrative Details Trustee Directors. Report Independent Auditors Report 21 Consolidated Statement of Financial Activities 25 Balance Sheet and Consolidated Balance Sheet 26 Statement of Cash Flows and Consolidated Statement of Cash Flows 28 Notes to Financial Statements 29 'lii' lsishvp % I'allr IL WILLS. 50UEI5L T

Annual Report 2023 <<< Foreward It is obvious that 2023 was another challenging year in so many ways and for so many people all round the world. More locally, we are grateful that whilst it was challenging for us too, we finished the year much stronger than we began it. Our charity, The Palace Trust, manages The Bishop's Palace and Gardens. a truly unique and tranquil place which provides much community benefit. We were delighted to welcome 506,00 visitors who ventured across the drawbridge into the free area during 2023 with 125,000 paying to visit the rest of the site which is admirable given both the continued cost of living crisis and the torrid weather we suffered for far too much of the year! We now have over 3,500 members and hope to increase that number by the end of 2024. partly as a result of improving members, benefits and also because we know members gain much satisfaction from supporting our charitable trust which means this special site can be enjoyed by the pubLic all year round. We continue to focus on providing as much community benefit as possible with the resources availabLe to us, as can be seen by the detail within the report. As regards our financial performance, we are naturally disappointed to report a loss two years running which was heavily influenced by sky high energy prices and appalling weather which badly affects aLI outdoor attraction5. However. there are two reasons to be cheerful. One 15 that we haLved the loss of the previous year with the loss for 2023 being £65k. The second, and arguably the most important, is that the changes we have implemented duringthe year should lead to a healthy surplus in 2024. We expect that to be sustainable in future years which wilL enable us to fund improvernents to the site and buildings, starting with our ambitious reinterpretation plans, both digital and physical, for the site, to allow us to appeal to a wider audience. We continue to have a valuable partnership with the Church Commissioners who own the site and to show theirfaith in how the Trust is looking after the site they increased the term of our management agreement to 10 years which enables us to plan for the longerterm. We'd Like to pay tribute to the fantastic work undertaken by both our staff and volunteers. As regards the former, we have a very strong team in place and in 2024, will celebrate 20 years of fantastic work from our head gardener, James Cross who secured coveted RHS partner garden status many year5 ago. We are excited to see how the Palace and Gardens evolve over the next 20 years (and beyondll and lookforward to sharing this unique and tranquil site with all our current and future visitors. Roger Hawes Chair Merryn Kidd Chief Executive

THE PALACE TRUST <<< Reference and Administrative Details Th• Pala¢• Tru51 Relerence and Athiinstralive Details For the Year Ended 3.1 Decen*)ei 2023 Trusi•• DT•¢lor5 Rl Revd Noel Mich,iel Beasley Ms Maureen Boylan Ir N￿k Denison Mr Paul DKkfftson Mr Sam FO￿eY Mr Roger Hawes Mr Michael Minla Mr Peler Slickland Rt Revij Trev￿ WitlnK)tt Mrs JulE WA15 company S•¢r•tary Natalie (￿￿.1 25 May 2023) Greg Beedk lfr(rfn 25 fvkiy 2023 to 13 May 2024) Hdlie Peppard (from 13 May 2024) hi•f Ex•¢irtiv• Jan wai￿￿>[￿ Ckyk (until 31 ￿rch 20231 Metryn KKkl {trM) 1 Arrfil 20231 ¢hi•f Op•rating Offic•r Meryn ￿lJd iuntil 31 Kirch 20231 Chariiy Numb•r 1160830 Company Numb•r 09404519 Principal Addr•ss and R•gl$i•r•d i)ffic• The B"6hop's Palace Somerset BAS 2PD Audllors AL}￿ GcM)Jman LLP B￿ck1x￿K Pth Avenue Taunlon TAI 2PX Bank•rs Natwesl 7 High Str￿{ Wdls S(Knerset TAI 1JO

THE PALACE TRUST <<< Trustee Directors Report The Ttuslees. who a￿ also directo￿ for the wrp)ses of ttE Companies Acl. present meif feport and the financial slalements of Ihe charty for ine year ende0 31 Decemiw 2023. are also prepared lo n)eel the requirements for a direclors, rep)rt aNI aCCo￿ts (or Companies Act PLifFX)ses The fI￿1n¢la1 statements have been wepare<J In accOr(k￿ce with the accounling policies set out in note 110 Ihe financial slalements clnd c(Mnpty wilh the c￿MIleS Act 2011: Companies Act 2006, the Memcrfandum and Art￿leS ol Asso0at￿. and AccoLmling arwj Reporting by Charities. Statement of Recommended Practice appiicalje in ine UK ￿lj Rewblic of Irelar¥J (FRS 102) {effedive 1 January 2019). The lull nime of Charty is The Palace Trust. It was incorwxLlted on 26 January 2015 as a company Ilmited by gLiarantee. Ils conwany registralw)n num1￿ is 0•404519. fts chariiy registialion nuniber is 1.160830. Tne CMnty Is vanousty refetred to 1hro￿r￿ul this rep￿ as erther "the Lhanw, -the company. "Its Tnisr R•f•renc•s and Admlnisiraiiv• D•tails Adminislrative mlomiation LS given in a separale seclicffi al Ihe front of these accounls Dlr•¢tors and TrustWS The direclors ol Ihe Company are the Chanty's Truslees for Ihe puttx)se of ch￿ty law and throughout this report are collectivety refeired lo as the Trustees. The Trustees servmg aiinng the yeJ imtj since the yearend are as lollows.. Rt Revd Noel Michael Beisley Ms Maureen Boylan Mr Nick Denison Mr Paul Dickinson Mr Sam Forsey Mr Roger Hawes Mr Michael Minta Mr Peter SIKkland Rl Revd Trevor Willn￿ll Mrs Julie Wills Mrs Clalre Reed Very Revd Dr John DavEs {apFomled 15 septemb￿ 2022) (Treasurer) {apFOillted 25 May 2023) (Chair from November 2022) {resMJned l April 2023) {resKJned 25 Jan￿lry 2023) None of Ilie Trustees have any benefickll bnleresi in Il* Company All of Ihe Tiuslees are members of Ilie Coinpany ana guarantee io conlribute f1 In the evenl ol a M4ndmg up

THE PALACE TRUST <<< 2023 ANNUAL REPORT -r.4 OBJECTIVES, STRATEGY AND ACTIVITIES OF THE TRUST STRATEGIC AIMS The charitable pufwse5 of The pala￿ Twsi are io preserve loi the benefit of ￿ W￿1C Ihe fabn"c of The Bishop's Palace and to pwoinote Jch charitthe wrposes as wil advance Ihe Teligious and othei chariklAe work of Ihe Church of England. Today. The P￿a￿ Trust seeks to conserve and Share the Palace and its ory as a ￿a¢e ol ertyoymeni and rellection for ￿ benefit of all. The tharity fulfils its wryjose by iaking foNard detailed actions that meet five Strateg￿ obFcts"ve5. Our Strategic O*"ects"ves, following the >yeaT strategy are to: l. E￿blish ihe Trusfs identity and purpose to a dr¥erse. indusive & expanding audierKe. 2. Deliver the beneffits ol wellbeing and a sense of communty lo more people. 3. Develop the site to deliver ihe best wsilor experien￿ & welcome. 4. Improve our environment￿ and financid sustainabdity. 5. Devdop the Trust's repLrtation lor excellence in HortiCul￿re. I. ESTA8LISH THE TRUST'S IDENTITY AND PURPOSE TO A DIVERSE. INCLUSIVE AND EXPANDING AUOIENCE Our ambition is lo welcome 160,000 paying M%iors annually to ihe Palace by 2025. The ambilion is based on three approaches. First, the development of the ¥isitor offer. wilh signilicanuy improved inlerprelalion around ihe built heriiage of the site. Second. a broader. more dynami¢ pxjblic evenES programme. Third. by making our heritage accessible lo those who will benefft from il the m05t. do nol cuirenity have the means to engage.

1. DELIVER THE BENEFITS OF WELLBEING ANO A SENSE OF COMMUNITY TO MORE PEOPLE We want Palace to be a best wauice model ol ccthmunty engagement, and for our organisation to become a local point loi the community In which we opefale. working in partnership to athieve better outcomes for the people who will bellelrt from oui si￿. laul"iies. and expertise the most.
2. DEVELOP THE SITE TO DELIVER THE BEST VISITOR EXPERIENCE & WELCOME By 2025 The Palace Trust aims to have embarked on a transformati￿ of the visitor experience of the Palace buildings. New interpreiaiion wll be engaging. immersive. and will transfomi people's understanding and enjoyment of The Bishop's Palace.
3. IMPROVE OUR ENVIRONMENTAL AND FINANCIAL SUSTAINABILITY A sustainable fuwre is dependent on three key afeas; sustainability in terms ol environmental impact- an essential area ol focus which will assist txith WT financial perfomwice and also our desire lo Care for and conseNe the naiural world and our heritage assets for fu￿re generaO"Ims io eryoy.. financial. and social sustainability. The Pda¢e Twsi WAI have made substantial progiess towards a net zero cartx)n iLKxprint ty 2025 and wll have rebuili the abtlity lo generale a sUr[￿U5. deplded recent times since the coronavirus pandemic.
4. DEVELOP THE TRUST'S REPUTATION FOR EXCELLENCE IN HORTICULTURE The Gardens are Ihe Pala￿.5 m05t hI3￿pro￿le primary assei as 2023 saw the 8th consecutive year as an RHS Partner Garden. We want to inspire and train the next generation of gardener5 and en￿a￿e and wolecl the natural and semi-cultivated environmeni in Ihe gardens to S￿[￿rt nature and wildlrfe, and adapt to the ever- changing climaie in an holistic manner.

   PUBLIC BENEFIT In Setting The Palace Tyust's preceding wms and fdlowing actimtses, the Trusiees have given careful consideration lo the Charity Commission's guidance on puNic benefit and conlinue to Fwesewe and make accessible The Bishop's Pdace and irs founeen acres of gardens to the public. as a F￿ate ol historic, architectural and landscape interest. The Palace Trust achieves its purpose by opening the srte to the putth'c Ihroughout the year, aiming lo engage a diverse audience through a Programme ol publ￿ events. aclivities, exhibitsons. ils commercial acts￿11es and community engagement programme. The Bishqj's Pala¢e is ceniral to the eVr￿nCe an(1 eryoymenl ol Wells and will remain sa as The Palace Tw5l continues to grow and expand lis puL4ic offer. in particular with the introduction ol community engagement measures deygned to reach out io those most in need for little or no cost to them. The Palace Trust undertakes an annual plan of ¢onseNatK)n and repair works ensuring The "shop's Palace remains in ihe public domain lor fvture generations.

E sE￿IllG. THE LAYOUT. THE HISTORY IS ALL PART OF THE ATMOSPHERE OF THE PLACE. AN ABSOLUTE MUST SE¥9 (TRIPADVISOR)

ACTIVITIES 2023 was a year ot change at The &"shop's Palace with many key C4ects coming to fruiliffl and enhancing the use and experience of the site. In May. the conversion of Iwo Galehouse rooms fr(Mn residential to office Space wa5 cornple￿d. resuliing in offices equipped wr(h working space for &6 m8nbers of staff. This has allowed the creation of a confidenlial meetiro space in The Laundry and has grven the Organisation the capauty to hosi more inteTnslw(Yk experiencelapprentices in desks alowside membws of staff. in line wilh the community enyagement ol¥"eclrves set Wi in the 5 year strategic plan. Also in May. the Njple Store Bastion was converted from an artist's Sttjdio into the Apple StOTe Cafe. with the abilty to sell drinks and food from within ihe paying W￿l0r area, and the bonus of ly"stTO style seating on the iefrace a stunniThJ view of Ihe fomial gardens. The intense heal in May an(1 June resulied in the At47k Store being a wpular location for iors io enjoy ice creams and cold drinks. In June. a new Visiior Reception was creaied in the eThJ of the Cafe Buikkn"ng. with a wall being erecled between the two parts of the building. The VisiiOT Operati￿S Team were fr.naly akle io vacate Ihe temporary horsebox ticket olhce into which they moved during the pandemic and were (klighted to have a suitsble space lor welcowning Yisil(xs, along with a rew Space tor fetail. The horsebox was ieffitted and launched in July as 'The Bishop's Brew" a lakeaway coffee and 5nack5 Outlet. positioned in the Free ATea in view ol Ihe Dfawbridge. sales have been ggnificant. and look lo be additional to Ihe Cafe offeriNJ. wrth passing trade of c500.000 visitlY5. In August. the h.yst new open￿g in the hisioric curtilage for over 60 years was created with our Community Garden Gate project. The ￿0T. Irom the Sl Andrew's street Car Park, opens into the Community Garden and allu4VS direct access for tFvJse who are unable io walk the long distance from the Drawbridge through ￿ ihis atea. This initiative, which was officialty opened by the Bishop of Taunton. will albw our Community Engagemenl team to offer Msits to a new range of user yroup5 for whom access was weviously a barrier to enioying our opportunities and activities. Fvlure Initrabves Telaled to this Project will be lunded ty ihe pnvate rental of spaces in the Sl Andrew's Street Car Park.

ACTIVITIES (CONT) In Ociober, fhe new Coronation Room l￿de ihe Pthce was officially opened by Theii Royl Highnesses the Duke Duchess ol Gloucestei. Following the very high profile appeatance of the Right Reverend Michael Beasley, 8(Mh Bishop of Bath and Wells. at Kiro Charles Ill's Coionatyon in May. Ihere was a renewed interest in the iole of the Bishops of Bath and Wells in Royal Coronations, and it was decided to move the t￿510￿C Coronation Cope to a home and lo create a dedicated cor￿atiOn Room to tdl the Stories of ttH5 important part of our hislory. Bishop Michael kindly leni his invilalion, his order of Servi￿ and his cue catd5 {seen by over 20 million UK viewers in the televi&"on coverage) to be displayed in the room alongside other artefacts and wdeo footage of prewous coronats"ons. The room was redecorated in a regal teal and gold scheme io complemeni the cdleciion. Other change5 inchjded the senior catering team, Vi51tor Experience Manager and Senior Gardener. Ac¢ordingly, the current team is both complete and very capable of deliveriig the Trust's Vision for the site. Work on how to better engage our vi51tors with this iMp￿an1 heritage site. and in particular, wtth the interior ol the Palace. continued. Intemal and external wc¥kshops were hekl to discover what our current situfs. and perhaps more importanlty, those who (Jo not currenity visit us. Ihink. Several internal 'Spiril ol Place" sessons staff and volunteer5 were also held which led to the development of a new Stalement of SvJnth¢arte. Much iesearch ￿50 look place into how best to deliver the myriad stories of the Palace, and meelir¥Js were held wth a range of Inierpreiation CorNJlLints. An Inierprelation Framework was drawn up wh￿￿ be (Jevdoped lurther in 2024. A Quinquennial sunffty of the site was completed by B28 Archiie¢ts and was used in partnership with gmilar Work Ir(Mn Savills (on behalf of the Church Commissioners) io identify the reqwTements over the nexl 5-10 years to con5etve and maintain the sile. A schedule ol repairs and maintenance has llLV4 been established and the Trust will fdlow this schedule lor routine maintenance over the coming years. thilsl the Church Commissioneys remain lesp￿Sble l(Y the balance of the mainienance ol ihe site. In 2023 we continued to follow our environmenial programme with the aim io re(luce OUT carbon emissions and to generate more of QUT own energy. In July the solai panels on the cafe iool which had been installed in 2011. Y￿re replaced with new panels capable of generating three limes the energy. Further areas of inteTest foT solar generats.on were ￿$0 identified. and investigatK)ll5 began into hydro generation. Energy usage on ste was closely monitored and various sthemes were implemented to reduce usage, resulting in savings on carbon emissions and cost. 2023 saw significant changes in staffing wth Ihe departure of the Chief Execulive in March. This was lolowed by an Interim appointment which became permanenl in December.

PERFORMANCE 2023 was another difficult year financialty. External laciors including ihe cos14)f-living ui&s. an excepl#)nalty wet summer seas￿. and tt7e huge uplift in energy costs resulted in a delicir of c£65k However. many great achievements also tocd( place. We welcomed 502,470 peO￿e over OUT Drawbridge and of those,125.308 paid to enter the site". a 1% increase on 2022. The popular events programme was very weft ieceived, wilh gieal attendance at cAJtdoor iheaive events, tsvo labulous opera performances from Opera Brava. Tecord numbers at our Christmas Artisan Market and extended opening for our ChrI￿rnaS at Ihe Pala￿ illurnination5. New evenis were Irialleé in the Undercroft such as a mediev￿ Banquet, which sold oul. and a SAent Disco. which also 501d out. along with Christmas parties, which were very wel re￿iVed. The Trusi was exceptionalty grateful to severaf trus15 and foundations lor their support in 2023, including the Sir John and Lady Amory Charitable TWSL The David Medl(Kk Foundation, and The Clarks Foun(Jats"on. an(J lo the Church Commis￿one[S lor their supwrL

COMMUNITY ENGAGEMENT In 2023 we wdcomed 53 communty group5, 12 Parish y(MJps1120 people), 17 schwl group5 and in addition. we granted 174 annual Iree passes to th(￿ who benefit moa Irom access lo our p￿ice of peace. beauty and tranquillty. We donated Taffle prizes lo a further 60 c£Thmunity gTOUP& We value our staff. volunteers and visilors and aim 10 extend teyond our moat to beccffie Ihe beating heart ot oui local community. welcoming supporting and engaging all who can benefil from our incredible yes￿￿ce. We will actively champon our gardens and prcMJramming as a resource for peWe5 on-gcmng welbeing. We enjoyed being able to meet many edLKation and leaming cl4ectives IhToughout 2023 and we welcomed six Students for work experience. offered fvjll lime eMFlO￿￿enI to a previous apprentice. and started another fflember of staff on an apprenticeship. Sculpture trwl IN asswiab.on with Wells Cathedral and Wdls atKI Mendip Musevm is in its third year with a grovding audIer￿. In 2023 we welcomed 17 schools continuing w¢lh the offer io invite all schools in Wells and the 70 SCI￿01$ nearesi io Wells, to br￿g one class for Iree. Over haw of the 174 free anrbual passes we gave out were to local lamih'es where at least one thild in their family was on pupil premium.

VOLUNTEERING OPPORTUNITIES This year 167 volunteers contribLrted approx. 12.5thJ volunleeTing hours to our organisation. The new role of oral history volunteer was introduceij to compliment the new ￿101 projeci undertaken with oui pannels Wells Mu5eurn and Wells Cathedral. We continue to olter a comwehensive tiaining programme. a volunteer website. and regular social events, to make the volunteefing experience ai The Bishop's Palace as rewarding as posylk. The Palace Tiust is extremely gfalelul fcK the wty and conlribulwjn of its volunieeis who not only make the effeclive Tunning ot the srte viable Ihrough their gift of Dme. k￿￿edge and skills bul benefii trom their engagement with our work. io deIn￿r our charital)le ot¥ects. 2024. we conts.nue lo kAlow our 3 year Strategic Plan, which (wdines Ihal by the end 012024. we VAII: FUTURE PLANS Ha￿ eslat4ished a PTogTamme of evenis, exhbi itions and wortshops that engage our audience, whilsi also champioNng our excellence in Horticulture. Optimised offer in terms ￿ licket range, membership, food and beverage. weddings and other private luncts"ons. Continue our tiack record ol securing fundraisiro and vduniary income for an aMlyt￿5 wogramme of proiects and events. Have imtAemented a Suc(￿S5fuI online and tickeling system. replaced Ihe ¢urreni tills and have streamlined the user IOUTW and back-end expe{￿nce tcK all iickels and events. Be fully engaged with the local community. offering high qU￿lty eM￿nt, v￿nteerIng or4JOrtunities, and pathways lo employment acr055 all our w(¥k. Have improved our environmental pertormance in energy consumoion. on-site woduclion and storage. Improved our community garden capacity to PToMde more fresh pr(xluce for sale and for internal use in food and beverage offer. and improved aceess and facilities for ccrfnmunity grwps. Have implernenled signilicanl change 10 the Inierpietalion of the Palace buildings Have installed an accessible loo, and completed works (o ￿ Communtty Garden area to creale adequale lacililies lor user groups Have planned and begun imklementation of improvements lo The Dragon's Lair play area PLAN

41 2024 PROJECTS

TICKETING Complete onlne lid(et sales trial with DigiTickets. Roll out lo rthysiral sales {as and when staffing capacity allows). Align with instal5al￿n ol new lJ"15 and EPOS system. CONNUNITY GARDENS ACCESS FOR ALL Capacity build#ig ol Community Gardens lauliti.es to enable groups to engage all year round and in all wealhers. Create more shelter. space growirrfJ. lap. accessible l(ylet. lyfdd dcM)rs io rnaximise indoorlouldoor space. ENVIRONMENTAL SUSTAINABILITY Prq'ect Phase 2 Irwestigation of recommeThled gr(NJnd source heal pumps. addition of PV units on main budding. Exploration ol hydropower poEntial. INTERPRETATION OF PALACE INTERIOR Work wilh con5uliants ￿ determine narrative aT¢S. ueate compelling conieni and storEs. implefflerrt digitid and physical inierpretation. THE DRAGON'S LAIR WATER PLAY AND SENSORY TRAIL Exploration ot potential lor a new, water ￿aY area with squirts.ng fountains elc. and sensory trail {lor baretoot play et¢). GATEHOUSE Conversi(M ol Upper Room for test use of space.

FINANCIAL REVIEW AND RESERVES POLICY The Palace Trust's finanual position deleriorated 51KJhty over the year after the loss of £[14.1231, however il remains very healthy. Ai year end. the Trust had unrestricied net assets {excluing the trading subsidiary). tsf £l1.060,9951. £{679,5951 of which is designated and £1224,2121 15 TangitrAe fixed asseK li is the charity's Folicy not lo commit The Palace Trust to any new major prTrJramme ol work until sufficient lunds are accumulated in reserves to saiisfy exiing obligations.

RESERVES Each year the Trustees review the level of free ieseNes. The Board considers the exposure lo m4or iisks in ierms of theiT likely impact on ils income sources and anned expendi￿re in the medium term. Free reseNes are defined as those available lor the use by the Charity thai are deemed to be readily realisable. less fvJn(ts that are restricted or else designated for parficular purp)ses. The gjbsidiary recorded a loss due to difficutt tradirrfj rcumstances. During ihe year the Truslees invested in improwng the offering. and are confident ol a Tett5m to prolilability in 2024. This therefore exdude5 q£224.212J tangible fixed assets that wll conts'nue to be used in the day-lo-day nJnning. and restrictetj funds of £nil. RISK POLICY The KK4icy is to have a Trust Reserve for unrestricted funds ai ihe year*n(5 of sufficient size to cover the perio(1 from January to March when The Palace Trust njns at a deficil. The Trusl Reserve therefore equaies to 3 months of forecast expenditure. As al 31si December 2023 this was q450.000J. The Trustees undert¢)ok a ￿mprehenSIve rewew of risks during the past year and wnainlain a regisier of those risk5 which would affe¢1 the repuiaiion and financial status ol The P￿a¢e Trust. This iegister is maintained by the Trustees and indudes a ranking of risk that lakes account ol likelihood arKI severty of impact. Risks thai could have a material impact The Palace Trust ave singled out lor particular attention. Other free reserve5 of £t552,2931 include £1229.5951 which has been allcKated io the followllg pTojecls a5 d￿gnated fund5: A prolonged period ol inclement wealher. Vkt weather can lead to a dTOP in lootlall a￿￿ thus visitor income. This is miligated by ￿epS taken to increase footfau in the shoulder I￿nthS thereby reducing the reliance on summer months, and in the IMg term to develop the site as an all-weather attraction. Conservation- improving the fabric of the property. Environmental.. inlroducing renewable energy sources. Inlerpreiaiion: experience. Comrnuimty.. expanding engagement across the Palace and gardens enhancing the Palace visitor Long term Cor￿e￿allOn and use of the sile. The 8istw's Palace and gafdens is owned by Ihe Church C¢Jnmissione¥s and the long.term conservation and use of ihe ￿te is govemed by a Management Agreemeni betsveen The Palace Trust and Church CommbSSioner5. We are in active communicats.on with them regarding longer term arrangements lor the Tiust 10 continue 10 manage the site tor the benefit ol the community-

ij

CONSTITUTION OF THE PALACE TRUST STRUCTURE. GOVERNANCE AND MANAGEMENT The Palace TTUSt was sel up in 1968 by Trust Deed in order to preserve The Bishop's Palace in Wells for.. inspection by the public as a place ol hisloric and aTchitectUTal interest: and the advancement of charitable worih of ihe Church of England in a manner chosen from lime lo lime by ihe Tru51ees and approved by ihe Church Commissioners. The Palace Trusl Memorandum and Arlides were incorFK)rated in January 2015 the charitable aim5 are lo preserve for the benefii of ihe public ihe fabric ol rhe Bishop's Palace las a place ol historic and aTchileclural interest) in order to facilitate access to The Bishop's Palace by the public for their education and intere51. and to promoie such ¢hariiable Purposes as will advance the feligous and other charilable work ot the Church ot England in such Today, The Palace Trust continues 10 work towards these chaTltable ￿M5. by opening rhe 8i5hop's Palace and its fourteen acres of gardens vp to the public and running it as a heritage site, visiior attraclion and community assel. ORGANISATIONAL STRUCTURE The Board of Trustees is respongble for straiegy and supemsion of the executive io whom they delegate responsibility for operations. The Chief Execuiive offi.cer is Tespongble for delivering the strategy with the senM)r management team comprising the lolhming department heads Catering. Visiior Experience. Community Engagemetx and Volunieers, HorticUl￿re, Property Management, Markebng & c￿MunIcatH)ns. and Finance & HR. Department heads are reSpons￿e lor the day to day runnin9 of the operations a￿1 report (Jirectty to the CEO. An average of 40 staff were emrAoyed by the Trusl and its subydiary duriThJ the 12-month period ended 31 December 2023 38 in post at 31 Decemlw 2023 (13 lull time antl 25 part ivne). We had an average of 167 volunteers during the year.

KEY MANAGENEMT PERSONNEL REMUNERATIOM The trusiee5 ¢￿9der Ihe Board of Trustees and the Chief Executive Offi￿￿ as comprising ihe Key Management PeT50nnel {KMP) in charge ol directing and controlling Ihe Trusi and running and operating the Trust on a day-lo-day ba515. All trustees give of their lime freely and no Irustee rernuneration was Pa￿ in the year. The pay ot Chief Executive Officer is rewewed annually and ncKmalty inueased in accofdance with average earnings. The remuneral￿n is also benchmarked wilh heritage organisations of a size lo ensure that the remU[￿ratIOn Set is lair and tK)t out of line ￿th that generalty paid fLY ¢omparable roles. Details of trustee expenses aTrJ relaied party transactions are disdosed in note 8 to the accounts, ar￿ d￿allS ol olher KMP remuneration are disclosed in no￿ 9 lo the a￿)unts. FUNDRAISING The Trust plans ftrture fundraising a(Xr￿ties bui these are constiained by both a lack of Internal resource and discu59on wilh the Church C￿￿MisSionerS about the long temi nature of Ihe Trust's occupation at the siie. 11 is ho￿ Ihese will be oveieome as a result ol the cuirenl discussions with the Church ComMisy(￿ers and in the meantime a small amount ol third paty resource is b￿ng used to a(fvance lundrai5ing acti￿leS which can bear fruit nO￿lIhSta￿Jtng these constraints. Any ihiid paity SUpp￿e[S are required to comtty with ajl recogr¥sed fundraisirrfj standards and the public will be proiecied from unreasonable intyugon or pre55UTe lo give. 11 11

SELECTION AND TRAINING OF TRUSTEES Trustees are appointed according to the skitks and experlence required lo defwer a successful sualegic Board which meets both as a board and in smaller sub-commrttees. The Church Commissioners have the right to appoint one Trusiee and the Bishop ol Bath and Wells aLso has the r￿ht to be a Trustee. A skills audit was conducted in Novefflb￿ 2023 to ￿entity gap5 in the th'lls and experien(￿ in the board of Tru51ee5 for whom the Trust is actively recwity.ng in anlicipaiion ol severd rebrements in 2024. InleNiews for new Tru￿eeS ￿e carried out by a Trustee panel before a decision on whether to appoint is made. New Trustees we promded vrtth an inductson pack ol relevant Infomialion which is supplemented by a detailed induction prografflme Irwolving the Ch￿r and key mernbets of stsff. Trustee5 are encouraged to participate in ongoiThJ Iraning and an annud away day. RELATIONSHIP WITH OTHER EIITITIES The management of catertng, events Ibolh corporate and privatel and frfming Is undertaken by Palace Enierprises Iwells) Lid ('PEL'). wthich is a whcdly owned subsidiary of The Palace Trust. Income generated by this Sub￿dIary may be donated to Ihe ch￿lty by way of an annual Gift Aid dC￿allOn if available from distribukble profits.

STATEMENT OF TRUSTEES. RESPONSIBILITIES The Trustees (who are directors ol The Palace Trust for the wrposes ot company lawl are Tespon5ible ¢01 pieparing the Trustee Direaors. Reporl and ihe financial stalements in accordance with app4icalAe law and United Kingdom Accounting siandards. includiNJ Finanual Reporting Standard 102, Ihe Financial Reporting Stsn(krd a￿1)Cable in Ihe UK and the Reputlic of Ireland (United Kingdryn Generalty Accepted Accountsng Praaicel. Company law requires the Trustees io prepare financral statements lor each financiat year which give a true and fair view of the ￿ale of affairs ot ihe chaTltable ¢ompany and the group and ol the irKome and expenditvre. ol the chatitable group lor thai period. In preparing ihese ffinancial 5tstements. the Trustees are required to.. Select suitable accounting policies arKI then them consistenly., Observe the methods and principles in the Charities SORP.. Make judgements and accourning estin￿leS Ihal are rea5￿a￿le and prudent. State whether applicable UK Accounts"ng Standard hal￿ been followed. subject to any ma￿rIal departures disch)se(l and explained in the h'nancial staiements. and Prepare the ffinancial staiemenis on the gThng concem b￿S unless it is inappropriate to pre9Jme thai the charithbte company will conlinue in busines5. The Trustees are responsible for maint&ning Proper accourfing records which disd05e wlh reason&e accuracy at any tr.me the financial posib'on ol the charitable c(Nnpany and enabk Ihern to ensure tha( the finarxial staiemenis comply with the Companies Acl 2006. They are also responsible lor safeyuarding the assets ot the charilab offlpany and the gTOUP and hence for taking reas¢JwtAe sws for the prevention and dek¢tion of fraud and other irregularities. The Trustees are responsible lor ihe mainienance arvj Integrity of the corporate and linancial information induded on the ¢haritsble companys website. Legislalion in the Unit￿1 Kingdom goYerrNng the preparation and disseminalKJn ol financial sthtements may differ from legI￿allOn in crfher iuiisdiclions.

STATEMENT AS TO DISCLOSURE TO OUR AUDITORS In so far as the Trustees are aware: There is no relevant audit information of whith the charilable company's audilors are unaware: and The Tnjstees have taken all sieps that they oughi to have taken to make themselves aware of any relevant audit informabon and to eslablish that the auth.lors are aware of that informaiion. AUDITORS The auditors, Albert Goodman LLP. are deemed to be re-appointed under Section 4B7(2) of the Companies Act 20ChS. SMALL COMPANY PROVISIONS This report has been prepared in accordance wilh the Sm￿1 companies regime under the Companies Act 2006. By order of the Trustees. R Hawes Trustee The Palace Trust Dale".

Groups We Have Worked With In 2023 The Bl￿p3 P4la¢ In 2023, we worked with thai's ffi53 81 moretharb 2022 Local comrnunity groups We 04nlrcJni?d The same number a5 1021 .h u'OL,'05 17Au 2 rhan 30 Local 5ch(M)Isvisited We welcomed students from the University of Exeter In 2023, we donated raffle prizes to 23 "60 Community groups and individuals

Local Community Groups We've Worked With 2023 norton Civic enliven bumblebee I w&llon step prima.ry,"- wowfest andrew's connect academy lions history f.r.i.e.n.d.s probus ￿. recovery health soace hub wick club bishop s stones oakhill farLeigh ways mendip palace exeter stepping action somerset bank making network girlguiding communityshed libraries trustdementia cafè methodist three Community Universities Groups Diocesan Groups Schools

The Pala¢e Trust Independent Auditors, Report to ￿ Trustees and Manbers For the Year Ended 31 December 2023 Oplnlon We have audited the financial ststements of The Palace Trust Ohe 'parent charitable ¢￿panY'} and its subsidiary (the 'group') for the year ended 31 December 2023, which comprise the cMsc4idated Statemerrt of Financial Acttvities, Ihe consolidated and parent tharitable company Balance Sheets, the consolidated and parent chwrtable company Statement of Cash Hows. and Note5 to the Financial Statements, including a summary of significant accounting polraes. Tr financial reporting framework that has been applied in their preparation is applrcable law arKI United Kingdom Generally Accep￿ A￿oUntIng Practice, including Financial Reporting Standard 102.. The Financial ReportiThJ StarKlard applKable in tho UK and Republic of Ireland (Unrted Kingdom Generally AcceFthY AcCounts￿j Practice). In our opinion the financial staternents= give a true arKI fair view of the state of the group's arKI of the parent charitable ¢￿7panY'S affalrs as at 31 December 2023 a￿1 of the group's ino)miThJ resources and appk'cat￿n of resources the year then ended: have been properly prepared n a(￿dance with United Kir)gdom G￿ralY Accepted Accounting practi￿., and have been prepared in accordance wilh the requireme￿ of ts Companies Act 2006. 8asls for oplnlon We conducted our athyit in accordance with Intemional Standards on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilities under those standards are fiJrth8r described in the Auditorfs responsibilities for the audit of the financial statements se¢tion of our rep￿t. We are indeperKlent of the group arKI parent charitabte company in acc(Ydance with the eth￿al rquirements that are relevant to our audit of the financial statements wi the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibiltties in accordanct wrth these requirements. We believe that the audit evidence we have obtained is sUffic￿nt arKI apprwiate to pro%ide a basis for our ¢)pinion. Concluslons relatlng to golng concern In auditing the financial statements. we have C￿nduded that th8 trustee's use of thè golrvJ concem basis cl accounting in the preparation of the finan(aal 8tatemerrts is apwoprtate. Bathl on the work we have perforrned. have not bjentified any material uncertainties relating to events or conditions that, individually or collectwety. may cast $lqnrf￿nt doubt on the entity's ability to continue as going concem for a period of at least 12 months from when the financial statements ar& authorised for issue. Our responsibilities and the responsibiliiies of th8 diredors with resFct to goirKJ concem are described in the retevant sections of this report. Other Inforniatlon The trustees are responsible for Ihe other information. The other lnfomia￿n comprises the infomiation included in the Truslees, Report, other than the finan(aal statements and our a￿ltor'S report thereon. Our opinion on the financial sL2tements does not cover the ottEr infomation and, except to the extent other4vise explicitly stated in OLf report, we do not exKKess any form of assurance conclusion thereon. In connection wtih our audit of ts ffinancial statements, our responsibilty is to read the other Infomiation and, in doing so, consider whether the other infomiation is maierialty inconsistent with the financial statemerrts or our knowledge obtained in the audit or otherwise appears to be materialty misstat￿. If we identify such material inconsistencies or apparent material Mlsstat￿ents, we are required to detennine whether the￿ is a material misstatement in the financial statemerts or a material mtsststemenl of the other infonnation. If, based on the work we have Ferformed, we condude that there is a material misstatement of thi8 Other infomiation, we are required to rewt that fad. We have nothing to report in this regard. Produ¢ed by AIW Go￿JM￿ LLP Page 21

The Palace Trust Independent Auditors, Report to the TnJees aTrS Munbers For the Yew Ended 31 December 2023 Oplnlon on other matter prescribed by the Companleg Act 2006 In our opinion, based on the work undertaken in the Course of the audit the Inf￿ation given in the Trustees, Report, which indudes the Directors, Report prepared for the purposes of company law for the financial year for which the financial statements a￿ prepared is consistent with the financial statèmwts: and the DirectcKs' Report induded within the Trustees. Report have been wepared in accordarth with appliGable legal requirements. Matters on whlch we are requlred lo report by exeeptlon In the light of the knowledge and underStar￿￿ng of the group and pwit charitable company arKI their environment obtained in the rA)urse of the audrt, we have not identffied material misstatements in ihe Directors, Rep￿t induded within the T￿￿eE5, Rep We have nothirvJ to report in respe( of the folkywing matters where the Companies Act 2006 requires us to report to you rf, n our opinion: adequate and proper atr￿unt￿￿ reLords have not been kept by the paMt charitable compary, or returns adequate for our audii have not been received from branches not visited by us.. or the pa￿nt Charitable company financial stat￿lts rKrt in agreement the &countirvJ records and retums,. or certain disclosures of trustees. [emur￿￿10n spe￿fied by law are not made: or we have not rewved all the infcrfmatK)n and explanations we require for our audit.: or the trustees were not entitled to prepare the financial statements in accordance with the small companies, regime and tae advantage of thè smal companies, exemptions in preparing the Trustees, Report and from the requirwnent to prepare a Strategic RewL Responslbllltles of trustees As explained more fulty in the Statement of Truslees, Responsibilities set wt on pages 17-18, the twste8S (who are also the directors of the parent thitable company for the purposes of company law) are responsible for the preparation of the financi statements aThJ for bewvJ Sat￿led that they give a tnR and fair view, and for such intemal control as the tnjstees detemine is necessary to enable th8 preparation of flnancial statements that are free from materbal misstatemert whettrw due to fraud or error. In preparing the financial statemas, the trustees are responsible for assessing the group and parent charitable company's abilty to continue as a g(xng cor￿n. disclosing, as applicable. matters reled to goin9 con¢ern and Lksing the going ¢onwn basis of accountin9 u￿e$S the trustees either intend to h'quidate the parent charitable company or to cease owatior6. (x have no reali5ti¢ temative t¥Jt to do so. Audltof8 responslbllltles for the audlt of the financlal sLthment8 Our obj'ectives are to obtain reasonable assurance about vthether the financial statements as a whole are free frorn material misstatement. whethw due to fraud or error. and to issue an auditols report that includes our opinion. Reasonable assLrarKe is a high ￿Ve1 of assurance. but is not a guarantee that an audit nducted in accordance ISAS (UK) ill atr4vays detect a material misstatement when it exists. Misstat8ments can arise from fraud or error and are consvjered material rf, individually or in the aggregate, they could reasonably be expected to infiuence the economic decisions of users taken on the basis of these financial statemen A further description of our responsibilities for the audii of tr financial statwnents is located on the Financial Reporting Councifs website at ¥vw.frc.wJ.ukJauditorsrewsbiliiies. This d8SUiPtion fomis part of our auditorfs report. Produced by Abert G¢)odman LLP Page 22

The Pala¢e Tr￿t Independent Auditors, Report to the Trustees aNI Members For the Year Ended 31 December 2023 Irregularities, including fraud, are instances of noTrcompliance with laws and regulations. We design procedures in line wlth our resportsibilities, ￿LI4ned above, to deieci material misstatements in respect of irregularit*s, including fraud. The e￿ to whth our Fyocedwes are capable of detecting irregularities, including fraud is detailed below. The extent to whkh the audlt was consldered capable of detecting Irregularltles Includlng fraud Our approach to identtfying and assessin9 the risks of material misstatement in respect of irregularities. in¢luding fraud and non<ompliarKe with laws aTrJ regulations. was as follows: the engagement partner ensured that the erKJagement team Collectivety hwj the appropriate competence. capabilities and skills to identify LY ￿COgnISe nonThcompliance with applicable laws and ulations; we identified the laws and regulatiorfj appl￿ble lo the company through discussion$ with management, and from our c¢ynmercial knowlethje and exI￿lenCe of the charity sector,. vfft focused on SFecifK laws ar¥J regulations which we Considered may have a direct material effect on the financial statements or the operations of the company, induding the Companies Act 2006. Chanty Aci 2011. employment. dala protection aTrJ health and safety legislation,. we assessed the extent of cornpliance with the laws wulations identlfied al)ove through maklng enquiries of management arKI inspecting legal corr8spondence,' and identified laws arKI regulations were communicated wtihin the audit team regularty and the team remained alert to Instan￿ of r￿n¢0Mplian￿ throughout the audit. We assessed the susceptitAity of the group's financial slalrnts lo mawial misstatemerrt. including obtsining an understanding of how fraud might o(zur. by.. making e￿ulneS of management as to they considered there was suscepbbilty to fraud, their knowledge of aGtual. suspe¢Aed arKI alleged fraud; aThl considering the intemal contrds in place to miltye risks of fraud and nOn-¢￿￿p11anC8 With laws and regulatior￿. To address the risk of fraxl through rnanagen￿I bias arrtl override of controls. we: perfomied anatytical procedures to identify any unusual Of unexpected relationships. tested journal entries to Identify urntsual transaciiors: asséssed whether judgements and assumptions made in detemiining the ac¢cwJnling 8slimates were indicalive of potential bias: and investigated the rationale behirKI sgnificant or unusual tra￿actiO￿. In response to the risk of irreg￿all11es and norFcompliarKe wilh arKI regulations, we designed procedures which indLvJed, but were not kmited to: agreeing financial statsrnenl disclosures to undwtying supporting dOc￿￿entatI1)n. reading the minutes of n￿S of those char￿j with governance.. enquiring of management as to adual and wential litigat￿. claims and bre&hes of relevant legI￿allon,. and reviewing correspondence with the Charity Commisston and other relevant regulators including the group's legal advisors arKI irBurets. Produced by Albert Gcodman LLP Page 23

Tho Palace Trust Independent Auditors, Report to the Truslees ar#J Membe For the Year Ended 31 December 2023 There are inherent Imitations in our audit wocedures described above. The more removed that laws and regulations are from financial transactions. the less k'kely li 15 that The would become aware of non- compliance. ALbJiting standards also limit the audit procedures required to identify nonThcompliance with laws and regulation5 to enquiry of the dwectors arKI ottw managenwt arKI inspecbon of regulatory and legal correspondence. rf any. Material misstatements that arise due to fraud can be harder to detect Ihan those that aris8 from error as they may invohie deliberat8 COn￿alment or collusron. Use of our report This report is made solety to the group aNI p*ert chariiable COMP￿￿$ members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Ad 2006. Our audit work has been undertaken x) that we might state to the group parent chartlable cornpanvs members and Injstees those matters we are required to stste to them in an audi￿$ report and for no other purpose. To the fullest extent pwmitted by I￿. we do not accept or assume responsibility to anyone otr￿r than thè group and parent charitable company and the group and parent chariiable company's members as a body and the parent thaitable company's trustees as body, for our audit work. for this report, or for the opinions we have ftxrned. Mhchelle Ferris BSC (Hons) FCA DChA (Senior Statutory Auditor) For and on behalf of Albert Goodman LLP. Statuiory Auditor Goodwood House Blackbrook Park Avenue Taunton Somerset TA1 2PX Date:.31 IcQ9.02 Prothjced by Albert GchJ(knan LLP Pa9e 24

The Palace Trust Consolidated Statement of Finanaal Activths {including an Income & Expenditure account) For the Year Ended 31 December 2023 2023 Total 2022 Total Unres- Unm- R•s- trlctsd trlctod Income from: Donations and ￿9aCles Charitable actmties Other trading adivities InKestment 1￿1,439 826.200 752.176 40,520 13.850 204,289 626.200 752,176 40,520 168,297 625.407 658,642 5,955 168,297 625,407 658.642 5.955 Total Income 1,609.335 13,850 1.fj23,185 1,458,301 1,458.301 Expendlture on: Raising funds Charitable acli¥ilies 728.079 965,115 728.079 965.115 620.717 949,506 820,717 949,506 T¢)tsl •xp•ndliur¢ 1,693,194 1,693.194 1,570,223 1,570,223 Net lexpendittir•) l income Transfer between lunds (83,859) 13.850 13.8 (70,009) (111.922) (111,922) (13.850) Other r•cognlsed galns Unrealised (loss) I gain on inve8tmenl 4,703 4,703 (6.578) 16,578) Net movement In funds for th• year Reconciliation of funds Total funds brought f￿rd 165.M) (65.306) (118.5CQ) 1118,500) 1,295.045 1.295.045 1,413,545 1.413,546 Totsl funds carrlad foThvard 1,229.739 1.229.739 1,295,045 1,295,045 The statement of financial activitss indudes all gains arKI losses recognised in the year. All ￿me and expend*ure derive from continuirKJ aclivitse& Projuced by Albert G(thman LLP Page 25

The Palace Trust- Comyny R•gl$tratlon N￿nts￿. 09404519 Balance Sheet and cor￿oI1dated Balance Sheet As at 31 Deomber 2023 2023 2022 2022 Charfty Group Ch•rfty Flxed a8sets Tangiblo fixed assets Investrnents 10 11 284,108 $4253 224,212 54.254 195,881 49,550 134,496 49.551 338,361 278,468 245.431 184,047 12 13 29,075 80,797 927,177 8.209 56.807 1.112.095 Debtors Cash al bar* and in harkl 219.743 811.79) 110,260 1,014,738 1.037.049 1.031,533 1.177.111 1,125,244 Llabilillos: credito￿ amounts falling Ch￿ cne year 14 (145.671) (83,494) 1127,497) 168.663) Net ¢wr•nt 891,378 948,039 1,049.614 1,056,581 Totsl not ••8•ts 13an9 1226,505 1,295,045 1,240,628 The fvnds ofth• charKy: Unrestricted fijrth. General funds DeswJnaled funds 322.698 903.807 296,969 998.076 303,937 936,691 3.703 Tclal urrestricted fvnds 15 1229.739 1.226.505 1,295,045 1.240.628 Restricted funds 15 Total ¢h•rlty funds 1.24n9 1321505 1,29&045 1,240,628 Produced by Abert G(K)Lkn￿ LLP Page 26

The Palace Trust- Company Reglstrntlon Nwnb•r. 09404519 Balance Sheet and Consolidated Balance Sheet (¢(M)tinued) As at 31 December 2023 The trustees have prepared gro￿ accounts in accordan￿ with section 398 of the Companies Act 2006 and section 138 of the Charitses Ad 2011. These accounts are PrePa￿d in accordance with the special provisions of Part 15 of the Companies Art relating to small companies and constitute the annual a¢￿Unts required by the Companies Act 2006 and are for ciroAation to membws of the company. The rnles on pages 29- 60 form pat of these accounts. Approved by Ihe Board for issue on ...... .. aTrJ sigrtl on th•lT l)ehalf by: Truste8 Produced by Albert Gcodman LLP Page 27

The Palace Trust Statement of Cash Flows and Consolidated Statement of Cash Fl For the Year Ended 31 December 2023 2023 2023 2022 2022 Group Group Charlty Cash flows from operallng actlvttle8 Net expenditure for the year Adjustmenls to cash flowE from nonwcash items: Depreciation and amortisati Investment income Unrealised net (gain) I loss on iivestments (Profit) I loss on dlsp)sal of flxed assets (6S.kn) (14,123) (118,500) (37.0001 10 38,902 (38,742) (4.703) 783 51,987 (5,955) 6.578 2.764 28,803 (5,6041 6,578 2,015 {40,520) (4.703) 1,245 11 (48.775 <17,8831 {63,126) 15,2081 Working capital alustments Decreas81 (increase) in stc (InLTeasel I decrease in debtors Incrèase l {d6crease) hi creditc 12 13 14 (20.866) 246 (23.990) (109,483) 18,174 14.831 {953> (27,532) 2,207 (5,6251 (31,6841 Net rash flow from operati￿$ Cash flows from In￿911ng actlvhles Purchase of tangible fixed assets Proceeds on disposal of fLxed assets Investment income (75,457) 1112.289) (89,404) (42,517) 10 {150,231) 250 40.520 (129.401) (9),949) 21,51Xl 5,955 (68.￿) 21,500 5,604 38,742 (109.461) (￿,659) (63.4941 (41.8001 Net increase in cash and cash equivalents (184.918) (202,948) 1152,898) (84,317) Cash and cash eqiivaents at the beginning of the rwbng perhJl Cash and cash equivalents at the end of the reportirKJ period 1.112,095 1,014.738 1.264,993 1,099.055 927.177 811.7￿ 1,112.095 1,014,738 Cash & Cash equivalents reconoliation.. Cash at bank 927,171 811.790 1,112,095 1,014,738 Total cash & cash equvalents at the end of the rep)rknng pericrfl 927,177 811.￿1 1,112,095 1.014,738 Produced by Alb&rt G(odman LLP Pap 28

Tho Palace Trust Notes to the Financial Statements For the Year Ended 311)e¢emb8r 2023 Accountlng Pollcles The principal accounting pol￿e$ adopted in the preparati￿ of the fInar￿la1 statements aro.. Bas1$ of accounting Th8 finanaal statements have been prepared in accordance ￿1th Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their a¢￿unt5 in accordance wilh the Financial Reporting Standard applicable in the UK arnl Republi¢ of Ireland IFRS 102) (effective 1 January 2019) - (Chariknes SORP (FRS 102)), the Financial Rewting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The Palace Trust meets the definition of a publi¢ benefit entity uThSer FRS 102. Assets and fiabilities are initially rec(*3nised at historical cost or tran&3ction vahje unless othernvise slated in the ￿levant accounts'ng policy note(s) aThl all anwnts are Fxesented in £ sterfiw. These finaneial statements consolbjate th? resutts of the Charity arKI its wholty owned subsidiary, Palace Enterprises Vllells) Limited. on a line by hne basis. The °Group° he&Jing within the balanc8 sheel refers to the consolidated accounts of The Palace Trust and Palace Enterprises (Wells) Limited. In the went company finanaal Stat&ne￿ the investment in the tradiNJ subsidiary is accounted for at cost less impaimenL A separate Statement of FinarKial Artivitres 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 Ac4 20(b. Legal status of the Trust The Trust is a company limited by guarantee and has no Sha￿ caytsi. In the event of th8 charity being wound up, the liabilty in respect of the guarantee is lirntted to £1 pw member of the tharity. The company is incorporated in EnglaThJ Wales arKI the c4Jmpany regi8tered office is detsiled on page 4, reference and administralhx d&ails. Golng Can¢Èm The trustees assess whether the use of going concem is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast swJnfficant doubt on the abilty of the Trust to ¢ontinue as a going cOn￿M. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financlal statements and have concluded that the Trust has adequate resources to continue in operational existence for the foreseeable fuiure and there are no matetbal uncertaities about the Trust's ability to continue as going concem. thus they continue to adopt the going concern basis of ac￿)UntIng when preparing the financial statements. PrtyJu¢ed by Albert Gooth))an LLP Page 29

The Palace Trust Notes to the Financial Ststements For the Year Ended 31 December 2023 Income Income from grants arKI donions is recognised in the year in which they are receivable when there is eviden￿ of entitlement, re¢iPt is probable and the amount Can be ￿liablY measured. W)ere income has not been received for gift aid daims relating to donations received in the year. income 15 accrued. Income from government grants. is recognised when the chaiity has entitlemert to the funds. any perfomiance condFtions attached to the grarts have been met. it is probat￿e that the income will be received arKI the amount can te measured reliably and is Trjt deferred. Where no conditions are attached to the gvant inc¥)me they are recognised within donations and lega￿S and where conditions relating to perfoman¢e of services are attathed, grant income 1$ rwnwd in income frc charitable activili8S Within the Ststement of Financial A¢tt¥its. Income from charitable activities wicludes membership and ajmissions in￿me. Membership income is accounted for in full in the year that trE membership commenGes. Admission income is recognlsed on a cash basis, in the year the inG(Ime is Ftysicalty re￿ived. Income from other trading activities. irKILKling restsurant inccxne, event incorne and rental income. is included in the period in which group is entitled to receipt. it is probable that economi¢ beneffts will to the entity arKI the amount can be reliabty rneasU￿. The charity recerrfes income from ils subsKJiary under gift and this is recognised upon physical receipt. The charity notes the requirwnent ol the SORP that large charities must report their results on an activiiies basis. The charity con5￿JerS that Itw p￿U¢e or al￿- the operatK¥n of a heritage sil&• and therefore reports on that basis. Intsfest recelvable Interest on furth held on dewsit is Induded t*n receivable a￿1 the amwnt Can be measured reliably by the charity; this is nomalty upon notif￿ of the interest paid or payable by the Bank. Expendlture Resources expended are recognised on the a¢cJuals basls to match the period in which the expenditfft was Incurred. Raising funds is experKliture incurred in gwwalir¥J the trading subsidiary funds and from other trading a¢Aivities carried out by tt)e trusL Charitsble activty expenditure comprises costs in￿rr￿j by the charity in the delivery of its activit and semces for its beneficiaries. It includes both costs that can be allocated directly to such actbvrties and costs of an indirect nature necessary to support thern. Grants payable are at the discretion of the Trustees. Govemance costs are those costs as%>ciated with the govemance arrangements of chaiity and relate to general running of the charity as opposed to those Costs associated with charitable activities. Operatlng leases The trust classifies the lease of Prope￿ as owatin918ases as title remains with the lessor. Rental charges are charged on a straight line basis ovw the term of the lease. ProdLtC8d by Albert GL￿JMan LLP Page 30

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2023 Fund accountlng Unrestricted funds are available to sknd on activ1b￿ that furtPr any of the purposes of Trust. Restricted lurmls are from donations and ￿ants in wthich the donor or funder has specffied are to be solely used for particular areas of the Trust's work or for specffic projeds being undertaken by the Trust. 1.9 Tanglble fixed assets and depreclatl¢)n Tanglble fixed assets are SL￿ed at ¢0 less depreciation. Ftxed assets under £1,000 are not capitalised. Depreciation is provKXed at rates calculated to Thite off the c05t or valualion less &stimated residual value of each assel over its expeded useful lrfe as folSow5.' CompLrter equipment Fumllure. ffttlngs & equipment Outdoor equipment Catering equipment 3- 5 years stra•3M lir 2- 10 year5 straight line 2- 15 years straigm line 5- 10 years straight line 1.10 Debtors Trade debtors are amounts due from customers for seNtss perfom)ed in the ordinary course of business. Trade debtor5 are recognised initialty at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impdmiert of trade debtors is est8blished when there is obpdive evidenr£ that the Trust will not be able to ¢olled all amounts due to according to the cKiginal temis of the rec8ivabl8S. Other debtors cornprise prepayments and accrued income. Prepayments arise from the payments for services prior to benefft from those seNices. and ￿Clued income 1$ amounts due for seNices provided, recognised at the point of pyovision of the services. 1.11 Stock stock consists of shop stock for resale and publicaticffl stocks. Stod( is valued at the lower of cost arKI net realisable value. after making allowances lor obsolete and slow mtr4ing od(. 1.12 Cash al bank and In hand Cash at bank and cash in hand includes cash short tem) higNy Iv4uid investments with a short maturity of three months or less from the date of acquisition or openifvj of the deposlt or similar account. 1.13 Credltor8 Creditors are recognwd where the dwrity has a present obllgation resulling from a past event that ill probably result in the transfer of funds to a third pty and Ihe amourrt due to settle the obligation can be measured or estimated reliabty. Creditorn are rKKmalty r8cts3nised at their settlement amount after allowing for ary trade discounts due. 1.14 D•finod Contrlbutlon penslon A defined contribution Fdan is a Fwffjion pkn under wlNch fixed Contributions we paid into a pension fund and the Company has no legal or construdbve obL￿atiOn to pay further contributions even rf the fund does not hold sufficient assets to pay all employees the benefits relalirg to employee seNi¢e In the Current and prlor periods. Contributions to defined contribution plans are recognised as staff pension expense through the profft loss Wh￿ they ￿ due. Producad by Albert Gcodman LLP Page 31

The Palace Trust Notes to the Financial Statements For the Year End￿ 310e¢ember 2023 1.15 Ta￿tIon As a registered charty, the c¢ynpany is r*Ot liable to corporation tax or Capital gaM)8 tsx to the extent that its income and gains are applicat￿e to charitsble purposes onty. Value Added Tax (VAT) is partially reCoVera￿e by the company. Any irrecoverable VAT is added to tho relevant cost and charged as an expense in the Statement of Finanaal Activtties. 1.16 Flnanclal Instruments The charity only hokls basic financial irtstruments as dèfined in FRS 102. The finwcial assets and liabilities of the tharity and their measurements are as follows.. Financial assels - trade and other debt￿$ are basK financial irthments are debt instruments measured at amortised cost. PrepaYTr￿￿ts are not finan(ial inStr￿nts. Cash at bank and deposit accounts- is dassffied as a basic financial instrument and is measured at la￿ valu•. Flnancial liabilities - trade creditors, accfuals and other Creditors are financial instruments, and a measured at amortised cost. Taxation social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to ￿ a financial liabilty. as the cash settl&neni has akeady tsken plafft and there is an obligation to delrm services rather than cash or another financial instrument. ProJuced by Abert G¢))dman LLP Page 32

The Palace Trust Notes to the Financial Staternents For the Year Ended 31 De￿mber 2023 Llonatlons and legacle5 Unre Unres tricted funds Res- trlcted funds 2023 Total 2022 Total funds fund$ Donations Gift aid 17,525 82.704 17,525 82.704 11.000 81,286 11,000 81,286 Grants Church Commissioners Historic England- Kickstart Other small grants 89.500 59,033 6.763 10,215 59,033 6,763 10,215 710 13,850 14,560 19J,439 13.850 204,289 168,297 168.297 'Denote5 government grants Income from govemment grants comprises grants made by local authorities to fund the principal activities and objeth'ves of the charity via core funding and funding for specific projects. Se& above for more infomiation. induding the amount and SOUT￿ of these grants. The￿ are no unfuffilled conditions or other contingencies atta(*￿1 to these grants. Produced by Abert Goodman LLP Page 33

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2023 Income from ¢harltable actlvltles Unres- Illcted funds Unres- trlct¢d funds Res- trfcled funds trlcted funds 2023 2022 Total Entran￿ fees Membership income 532.314 93,886 532.314 525.625 99.782 525.625 99,782 626,200 626.200 625.407 625,407 Other tradlng actfvltle8 Unre$- tricted fundg Unres- 23 ￿Cted Totsl funds Res- trlct•d funds tricted funds 2022 Totsl Restaurant income Event n¢ome Event site hire Shop income Event catèring Solar panel income Film income Renlal Income 595,404 66,550 48,572 18,040 15.958 385 200 7.067 595.404 66.550 48,572 18,040 15,958 385 200 7.1￿7 519.126 71,234 38,586 14.416 12,119 2.261 548 352 519,126 71,234 38,586 14,416 12,119 2,261 548 352 752,176 752.176 658,642 658.642 Investment Income Unres. trlctrd tricted fun(ts lunds Unras. tricted nds 2023 Total trl¢t•d funds 2022 Total Bank interest 40.520 40,520 5,955 5.955 Produced by Albert GctsJman LLP Pag8 34

The Palace Trust Notes to the Financial Ststements For the Year Ended 31 De￿mber 2023 Expendlture on ralslng funds Unr•s• 2023 Unr• trlcted trlcted Total tricted trlcted 2022 Total Cost5 of goods sold Wages, salaries & agency Other direct costs Event costs Commissicm sales expense Advertismig 199,680 369.715 105.482 47.185 6,017 199.680 369.715 105.482 47,185 6.017 160,332 298,954 96.977 50.282 14.172 160,332 298,954 96.977 50,282 14,172 728,079 728.079 620,717 620.717 Produced by Albert Gco(knan LLP Page 35

The Palace Trust Notes to the Financial Statements For the Year Ended 31 De¢ember 2023 Charltable a¢llvhles experKllture Unr•s- trictsd ￿cted 2023 Totsl Unr•s- trlcted trlcted 2022 Total Dlrect charltsble actlvtties Maintenance costs Garden maintenan(* Pubk'c acces & education 52,268 22,152 7.922 52,268 22,152 7.922 86,726 22,915 7.168 86,726 22,915 7,168 Support costs Wages & salaries Stsff training & rewitn￿l Travel & entertainment Rent, rates, light & heat Cleaning costs Advertising Office costs Subscriptions Legal fees Professional fees Accountsncy Bank charges Depreciation Loss on disposal of frxed asset $47,625 19,935 5.716 114,495 47,590 30,614 59,608 3,436 547.625 19,935 5,716 114,495 47,590 30.614 59,808 3,436 600 1,332 150 3,685 39.683 552,856 20,934 9,783 48.141 47,041 34.523 61,582 4,359 378 13.039 552.856 20.934 9.783 48.141 47.041 34,523 61,582 4,359 378 13,039 1.332 150 3.685 39.683 3.150 28.139 1,728 3,150 28,139 1,728 Governance Auditors fees - audil Auditors fee& accountancy 6,700 1.600 6.700 1.600 5,544 1,500 965,115 ,115 949,506 949,506 Pro(hJ¢ed by Go>Jman LLP Page 36

The Palace Tnffjt Notes to the Financial Statements For the Year Ended 31 December 2023 Expendlturn (conllnued) Charity 2022 Subgidlary 2022 Total 2023 Total 2022 2023 2023 Depreciation of 0￿￿ed assets Auditors, remuneration for. Current audrtors - Audil services - Other services 38,902 28,803 21.607 23,184 60,509 51,987 6,340 6.000 1.500 4.800 1.300 4,500 1,250 11.140 2.900 10,500 2.750 Trustee dlrectors The charity tmstees were not paid or re(xived benefits from employment ￿ the Trust or its subsidiary in the year (2022: £nl). Three Charity trustees were reimbjrsed for travel expense5 durirwj the year totalling £1.069 (2022.. three trustses- £1.728). During the year. no trustees recaved accommodation paid to a thlrd paty for atteThJing tntstee training (2022". one trustee- £8T). No charity irustee re￿iVed payment for professkinal or services supplied to the ¢haiity (2022: £nil). Produced by Altert Gcw)(*nan LLP Page 37

The Palace Try￿t Notes to the Financial Statements For the Year Ended 31 De￿mber 2023 Employees 2023 Group 2023 Charity 2022 Group 2022 Charity Wages and salaries Social security costs Employer wsion Temiination payments 79D.854 45.819 41,478 39.189 452.421 32.671 29,319 33.214 762,4 49,181 40,229 491,328 33,951 27,577 917,340 547,625 851,810 552,856 Number of employees The average monthty numbef of employees durffmj the year, cabjiated on the basis of average headcount, was as follo￿. 2023 Group 2023 Charfty 2022 Group 2022 Char Average employee head Count 43 22 51 27 Durlng the yew. four empk)yees were paid a lotsl of £17.174 in respect of sethment. £19.830 in respect of PILON and £2.185 in respert of a ralundancy. All payments are full arKI final settlement, aThl no ￿ounts are ac(xued at the year end (2022.. none). The number of empbyees annual emoknments £60,0￿) (exduding employer pension costs) or more were.. 2023 number 2022 number £60,000- £70,IXIO This employee is not a member of the defined cortsitxrtion pensron scheme. ProdLthd by Albert GttrfIm￿ LLP Page 38

The Palace Trust Notes to the Finan¢lal Ststements For the Year Ended 31 December 2023 Employees (contlnuod) The key management personnel for the year. comprises the Ch￿1 Executbve and the Chief Operating Officer (2022.. the Chief Executive ar￿ Chief Operating Officer>. The total employee beneffts (in¢ludes gross pay, employer pension and employer national insurance) of the key managemeni personnel of the Trust were £117,201 (2022: £120.833). Pen8lon costs The company operates a defined contributTron p￿slon scheme. The charge to the Statement of Financial Activities for the year is sh¢xn above. Contributions totalling £nil (2022 - £nil) were payable to the schemes at the end of Ihe year arKI are induded in ueditors. 10 Tanglble flxed assets Group FUrnI￿rn. c￿lpU￿r fftiings & Outdoor Catering equipnrt •qulywrt •qulpment equlpnent Tolal Cost At 1 January 2023 Additions Dbsposals 39,8r 2,396 (5,123) 46,195 84.959 (386) 158.217 161,572 42.046 20,830 (1.693) 127.949) 405.790 150,231 (35.151) At 31 December 2023 37.079 130,768 198,570 154.453 520,870 Deprnclatlon At 1 January 2023 Charge for the year Eliminated on disposals 30,952 5,896 {4,481) 18,873 16,907 1386) 62,294 97,790 15,231 22,475 (1,552) {27.237) 209,909 60,509 133,656) At 31 December 2023 32.367 35,394 75.973 93,028 236,762 Net book value At 31 D8cemb8r 2023 4,712 95.374 122.597 61,425 284,108 At 31 December 2022 27,322 95,923 63,782 195.881 Produced by Abort G¢￿Im* LLP Page 39

The Palace Trust Notes to the Financial Stalements For the Year Ended 31 December 2023 10 Tanglble fixed assets (conllnued) Charlty Fumiturn, Cunputer fftllngs & Outdoor Catering equiwnent equiwnent equlpment equipn•nt Total Cost At 1 January 2023 Addrtions Disposals 39.& 2,396 (5,1231 46.195 84.959 (386) 158,217 42.046 {1.693} 23,991 268,209 129,401 (7,202) At 31 Decerthr 2023 37,079 130,768 198.570 23,991 390.408 Dapreclallon At 1 January 2023 Charge for the year Eliminated on disposals 30,952 5.896 (4.481) 18.873 16.￿)7 {386) 62.294 15,231 {1,552> 21.594 868 133,713 38,902 (6,419> At 31 December 2023 32,367 35.394 75.973 22.462 166,196 Net book value At 31 December 2023 4.712 95.374 122,597 1,529 224,212 At 31 December 2022 27.322 95.923 2,397 134,496 11 Investments Group 2023 2022 Unlistsd inveslments i)llening balanre Unrealised (loss) I 49,550 4,703 56,128 {6,578) Closing balance 54,253 49,550 Historical ¢osl of investments 33.593 33,593 The unlisted investsnents comprise 2,400 shares in ts Central 80￿d of Finan￿ of the Church of England Investment Fund. Produced by A￿frrt Gojdman LLP Page 40

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2023 11 Investments (contlnued) Charlty 2023 2022 Unllsted Investments O￿nIng balanc6 Unrealised {loss) I gain 49.550 4.703 56.128 (6.578> clo￿ng balance 54,253 49,550 Historical cost of iiv8Stments 33,593 33.593 Charlty Inveslments at market value compr18e: Total 2023 Total 2022 Shares n unlisted investments Shareh)Iding in Palace Enterprises (We15) Limited Ordinary shares of £1 each 54,253 49,550 54.254 49,551 Palace Enterprises Wells) Limited (company no 03013fN) was inCrry￿aled 23 January 1995 and is wholly owned trading 5ub5idiary ol The Pala￿ TTUSL The parent holds 1000A of the issued share capital and 1WO/D of the votiro r￿hts of the subsidiary trading company. The prin¢ipal activities of the company is to wovrde a fulty cered venue for wedding receptions and other events, together with a catering seNce in the Bishop's Table Restaurant. TtrE registered office is the same 8$ that of the Tnjst, detailed on page 4. Tr subsKliary gift aids some of its tsxable profits to The Palace Trust, paying cOrp￿thn tax on any wofits rined. arKI files *Jited counts with the Registrar of Companies. Produced by Albert Gr￿Man LLP Page 41

The Palxe Trust Notes to the Financial Statements For the Year Erthd 31 December 2023 11 Investments (contlnued) A summary of the trading resulls is shown below. 2023 2022 Turnover Cost of sale5 717,055 (572.151) 609,663 (479.045) Gross profft Administrati￿ expenses 144.gJ4 (196.086) 130,618 (150,637) Operating profft Investrnent incLvne (51,182) (20,019) Profft before lax & profit for Ihe financ￿1 year Retained eamings brought foThvard in subsKliary Gift aid to The Paiace Trust (51.1821 54,417 {20,0191 135,917 (61,4811 Retained earnings carried IoAwdrd wi subsidiary Th8 assets and liabilities vHe: Fixed assets Current assets Current liabilities 3235 54.417 59,896 168.273 (224,933) 61,385 122,595 1129.562) Tota net assets 3.236 54,418 Called up share Capital Profft and loss reserve 3,235 54,417 3,236 54,418 Produced by Al)wt Goo(Iman LLP Page 42

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2023 12 Stocks 2023 Group 2023 Charlty 2022 Charfty Group Goods for resale 29,075 8.209 246 13 Debtors 2023 Group 2023 Charlty 2022 Group 2022 Trade debtors Prepayments arKI ￿cn￿d income Amwnts OV4Ed by group undertakn.ngs 24,380 56,417 1,621 55,365 162,757 14,589 42,218 441 39,091 70,728 80,797 219,743 56.807 110,260 Prc*Ju¢ed by Ajbert LLP Page 43

The Palace Trust Notes to the Financial Ststements For the Year Ended 31 December 2023 14 Credltors: Amounts falllng due wlthln ono year 2023 Charlty 2022 Group 2022 Charlty Group Trade credb oth8r credit(xs Accruals and deferred incomè Taxation and social secwty 31.863 27,078 53,685 33.045 29.427 27.078 20.771 6.218 38,305 31263 5,039 18,746 13,615 45,947 38207 145,671 83.494 127.497 68.663 Doferred Income 2023 Group 2022 Group 2022 Charlty Charlty DèfeThed income al 1 Januwy 2023 Released from preMcNJs years Rescwrces deferred in the year 30.637 (30.637) 33.695 9.187 (9,187) 8,759 17,017 (17.017) 30.637 6,325 16,3251 9,187 Deferred wic(xne at 31 December 2023 33,695 8,759 30,637 9.187 At the balance sheet date the trust was hddiry funds received in advance for events to be tr*ld in 2024. Produced by Goodm￿ LLP Page 44

The Palace Trust Notes to the Financial Statements For the Year Ended 31 De￿rnber 2023 16 Summary of movement In funds- Group Opening balar*e In¢om• Exwidllurn Transfers & galns Closlng balance Unrestrlcted lunds . Group General 296.969 1.609.335 11.632,6851 (7,583) 266,036 Deslgnated fvnd8- Group Palace ￿terpretati Trust Reserve Flxed assels 352.195 (122,600) 229,595 450,000 284,108 195,881 {60.509) 148.736 {60.509) 26.136 Total deslgnated funds 998.076 963,703 R¢strf¢t¢d fund8 Gat8 funds 13.850 (13,850) Total lunds 1,295,045 1,623,185 (1,693,194) 4,703 1,229.739 Summary of movement In fvnds- Charlty Op•nlng b•lanc• TraMf•rs & galTrg Closlng balance Iw>m• Expgndlture Unrestrlct•d funds . Charlty General 303.937 983.484 (977.258) 12,535 322.698 Designated funds- Charfty Palace interpretalion Trust Reserve Fixed assets 352.195 450,0 134,496 (122,600) 229,595 450.000 224,212 (38,902) 128,618 Totsl daslgnatad fund• 936,691 {38.902) 6,018 903,807 Restrlcted funds Gate funds 13.850 (13,850) Total fun(ts 1340,628 997,334 (1,016,160) {703 1,226,505 Prcrfluced by Albert Gcthlman LLP Page 45

The Palace Trust Notes to the Financial Ststements For the Year Ended 31 De¢wnber 2023 Summary of movement In funds- Group (2022) Openlng balance Income Expen(llture Transfers & gains Closing balance Unrestrf¢led funds . GNP General 642,636 1.458.301 11,517.1471 1286,821) 296,969 Dosipialod funds - Group Palac8 interpretation Trust Reserrfe Fixed assets (300,8051 450.000 131.048 352.195 450.000 195.881 117.9)9 (53.076) T¢)lal desfjgnated funds 770,9)9 (53.076) 280,243 998,076 Total lunds 1,411545 1,458.301 11.570,223) {&578) 1295,045 Summary of movemerrt In fvnds- Charfty12022) 0￿1 balance Income EXpendI￿re Transfers & galns Closing balance Unrestrlcted funds . Charlty General 506.719 983.538 (984,093) (202,227) 303,937 D•slgnal•d funds - Charlty Palace intenxetation Trust ReseNe Fixed assets 653.0 (300,8051 450,01)0 46.454 352,195 450,000 134,496 117.909 {29,867) Total deslgnated funds 770,909 (29,867) 195.849 936,891 Totsl funds 1,277,628 983.538 (1,013.960) (6.5781 1,240.628 Produced by Abert G(xJthan LLP Page 46

The Palace Trust Notes to the Financial Statemerrts For the Year Ended 31 December 2023 Summary of movemenl In funds {contlnued} Deslgnated funds The Pala￿ interpretation fund relates to a large devdownent project currenty in the planning phase and fresh interpretation in the Palace building. Trust ReseNe relates to an amount of unrestricted funds sufficient to cover 3 months of expenditure, to cover thé period from January to March when The pala￿ Trust runs at a seasonal deficrt. The fixed assets funds rep￿sent the net book value of the assets held. Rostrlcted funds The Gate Funds were received as a contribuimm towards the installation of Communty gate. £10,000 of the fuThYs came from The Medlock Charity. £350 from the Sir J)hn and Lady Heath¢oat Amory Trust and £3,gXI from an anonymous source. The amount has been transferred to uNestricted upon the purchase ofthe fixed asset. as pemitted by the Charrty SORP. 16 Analysll of assets between funds- Group Other not T•nglble Cash at rrent Credktors fixed b•nk and assetsl more than •Mtts In hand Iliabilities one year Total Unrestricted funds 54,253 148,155 (35.799) 166,609 Desillnaled funds Restricted fvnds 284,108 779,022 1,063,130 As at 31 D•¢ember 2023 338.361 927,177 (3&799 1,229,739 Analysls of a8$ets between funds~ Charlty Other net Tangible Ca8h at current Credltors fixed bank and assetsl more Ihan in hand (Ilabllltles) one year Total Unrestricted funds S4,254 32,768 136,249 223,271 Deswjnated funds 224,212 779.022 1,003,234 Restricted bjnds A8 at 31 December 2023 278.466 811,790 136,249 1,226,505 Produced by Albert G¢odman LLP Page 47

The Palace Trust Notes to the Financial Statements For the Year Ended 31 December 2023 Analysls of assets between funds- Group- 2022 (Xher not current Credltor8 more than Taryible Cash at flx•d bank and In hand (Ilabllhles) oney Total Unreslricted funds 49,550 309.9)) (62.481) 296.%9 Designaled fwds Restrictsd furMI$ 195.881 PJ)2,195 998,076 As at 31 December 2022 I￿431 1.1110 162,481) 1,295,045 Anatysls of as8ets boiween funds- Charlty- 2022 Other net T4ngll Cash at current Cre(Ito fix￿ bank and ametsl more than in hand {Ilabilities) one year Total Unrestricted fur#Js 49.551 212.543 41,843 303,937 Designated funds Restrthd funds 134.496 802.195 936,691 As at 31 DKomber 2012 184.047 1,014.n8 41W 1,240.628 Prothcéd by Abert Gcn¢*n8n LLP Pag8 48

The Palace Trust Notes to the Financial Sternents For the Year Endgj 31 December 2023 17 Income and expendlture account of the Trust The company has taken advantage of Seciion 408 of the Companies Act 2(th and has not included its own Income and Ex￿ndItUre Accourrt or separate Stment of Financial Activities. Prior to gfft aid amounts received from the sthidiary, The Pala￿ Trust has net expenditure for the year of £14,124 <2022 £98,481) based on income of £9[￿,130 (2022 - £848.638). Grft aid distributions fr(xD tradiThJ subsbjiary of £nil {2022.' £61.481) We￿ recwed in the year. 18 Obllgatlons under leases Operating leases- The total future minimum rental$ payable urnler non•1￿1￿ op8ratlng leases funded by unrestn'cted funds are as follows: 2023 2022 Other Expiry date: Wthin one year Wthin two and fve years 1,785 3,193 1,570 4.709 4,978 6,279 In addition to the above. the Tmst has a nonéxdusive licen￿ (by way of a management agreement) to occupy the Palace and the gard￿ts with the Chwch Commissioners to the end of 2033. 19 Related party transactlons The charity ha5 tsken advantage of the exemption in FRS 102 "Related Party Disdosures. from disclosing transactions ￿￿th other members of the group. The chièf executive (who resigned 31 Mach 2023). J Waliwth Clark, was charged £8IXI (2022: £1.030) in rent for the use of the Gatehouse during the year. A balan￿ of £nil (2022: £nd) was oulstanding at the year ￿d. This is conSide￿d to be a market rent. The Chief executive was appointed 1 April 2023). M Kidd, was charg&J £3.850 (2022: £nil) in rent for the use of The Gardeners Flat durThJ the year. The rent ttillected, is in tum paid onto the Church Commissioner. A balance of £nil (2022: £nD was outstanding at the year end. This is considered to be a market rent. ProthJ¢ed by Albert Gco(hnan LLP Page 49

The Palace Trust Notes to the Flnan¢ial Statements For the Year Ended 31 December 2023 20 Flnanclal Instruments 2023 Group 2023 Charlty 2022 Group 2022 Charity Financial ass&ts that are fair walue through ino)me & expenditure x(¥JUDt Financial assets that are debt inslruments measured at amortiS8d cost 54.253 54,254 49,550 49.550 994,034 1.018.645 1.153,801 1.113.025 1.048,287 1.072,899 1,203,351 1.162,575 Finanual liabilthes measured at amortised cost 78,931 65,263 58,653 45,861 78,931 65.263 58.653 45,861 Items of Incom•, expenditure. gain and lols (group and charlty) Income Expwme Not galns Net losses 2023 Financial assets that are fair value through income & expenditure account Financial assets measured 8t amortised cost Financial liabih'ties measured at amortised cost 4,703 4.703 2022 Finanoal assets that are fair ¥alue through income & expenditure account FinancAal assets measured at amortised cost F￿ancIal liabilities measured at anwJlised cost 6,579 6,579 Prtrjuced by (*(J(knan LLP Page 50