COMPANY REGISTRATION NUMBER: 09345671 CHARITY REGISTRATION NUMBER: 1161304
The Castle House Trust
Company Limited by Guarantee
Unaudited Financial Statements
For the Year Ended
31st December 2022
The Castle House Trust
Company Limited by Guarantee
Financial Statements
Year Ended 31st December 2022
| Page | |
|---|---|
| Trustees' Annual Report (Incorporating the Director's Report) | 1 |
| Independent Examiner's Report to the Trustees | 6 |
| Statement of Financial Activities (Including Income and Expenditure Account) | 8 |
| Statement of Financial Position | 9 |
| Notes to the Financial Statements | 11 |
The Castle House Trust
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year Ended 31st December 2022
The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31st December 2022.
Chair's report
Recovery from 2020 lockdown continued with 4,000 visitors this year, an increase from 2021. A return to more normal conditions and greater confidence also saw more volunteer stewards returned too. The number of pre-booked group visits also increased. There were several virtual talks and tours - features which we started during lockdown but which have remained popular. The museum also joined Heritage Open Days for the first time with two free in-person tours of the museum. Community outreach continued with in-person talks to art interest groups in several East Anglian locations including Southwold, Norwich and Beccles. The museum's social media reach continued to grow.
This year's special exhibition combined the expertise of the museum's curatorial team with the depth of the museum's collection. 'Alfred Munnings: the Art of the Poster' focused on Alfred Munnings' early commercial work. Although a few of his early poster designs have long been popular, this was the first exhibition ever to showcase a large number of his early poster designs. They show Munnings' creative imagination and how it was applied to created advertising for a range of unrelated commercial products. The posters provided insights into his creative process at the very start of his career. Nothing like it had ever been shown publicly before and it attracted 13 loans from private collections. The exhibition, driven by the newest member of the team, a recent graduate, was the result of the work reviewing previously uncatalogued material in the museum's archives. At least one of the posters on display was reassembled from pieces found in different stores at the Castle House. It was a tribute to their skill and dedication and proved popular too.
Cataloguing and conservation remains an important part of the museum's work, recording exactly what we hold and understanding how it fits into the Munnings oeuvre. Even though many members of the curatorial team provide their expertise voluntarily, the cost of infrastructure provision and the collections management system is not insignificant. Ten years ago there were only two computers at the museum and no central server. Now, IT systems and computers are essential tools for the curatorial team. It is is easy to overlook the investment in IT and hardware required to enable the museum to function fully.
Another important functional aspect of the museum was completed this year with a transfer to the new incorporated status. Lady Munnings established the museum in the 1960s with a simply unincorporated trust. The charity had no legal personality of its own and the assets (and liabilities) were vested in the trustees personally. As the activities increased and the value of the collection grew the unincorporated status became a hinderance. The Charity Commission authorised a new incorporated charity, mirroring the aims of the original charity, but with a modern constitution. Transfer of administration and ownership of the assets took place this year and this is the first full annual return for the new charity. Following the transfer, the former unincorporated charity was removed from the Charity Commission's website. Although the museum has a new legal structure, we regard it in many ways as a continuation of the old charity. The principal charitable objective is unchanged: the provision of an art museum at Castle House accessible to the public. Although the old charity's annual returns are no longer available on the Charity Commission's website we have made some recent annual returns available through the museum's own website for anyone who would like to follow our progress.
Over the past ten years Artist Resale Right income has become an increasingly valuable source of funding. It is a levy imposed on the buyer whenever a Munnings painting is sold commercially in the UK. In supporting the work of the museum it has, indirectly, probably added to the market value of Munnings' paintings. Nonetheless, this income will cease in 2030. As part of the strategy to investigate ways to replace this income after 2030 the charity was, in September, accepted onto a fundraising mentoring programme supported by the Arts Council.
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The Castle House Trust
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year Ended 31st December 2022
Very sadly, we record the death during the year of Michael Archer who was a trustee for over 40 years. Michael's knowledge and experience extended back to the early years of the Castle House Trust. He was ideally equipped to be a trustee with long-established family connections to Dedham and, as a former museum professional, and one time Keeper of Ceramics at the Victoria and Albert Museum in London, he understood the operations of museums. He handled his skills and knowledge sensitively, asking questions and making suggestions with care and tact. He was much liked and respected by many in Dedham, and by fellow trustees, staff and volunteers at the museum. He will be much missed.
Julia Abel Smith became a trustee in February. Julia had worked with the museum several years ago, helping to collate the Public Catalogue Foundation's record of paintings in public collections. She was High Sheriff of Essex in 2013 and is currently a governor of Felsted School, a member of Chelmsford Cathedral Council and a patron of Open Road.
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The Castle House Trust
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year Ended 31st December 2022
Reference and Administrative Details Registered charity name The Castle House Trust Charity registration number 1161304 Company registration number 09345671 Principal office and registered The Sir Alfred Munnings Art Museum office Castle House Dedham Colchester The Trustees R.J.C. Johnston D.M. Archer O.B.E. (Died 27th June 2022) M.J. Parker E.A. Tolhurst C. Aldous B.E. Maynard J.M.S. Abel Smith (Appointed 21st February 2022) Independent Examiner Peyton Tyler Mears Middleborough House 16 Middleborough Colchester Essex CO1 1QT
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The Castle House Trust
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year Ended 31st December 2022
Structure, Governance and Management
Legal Status
The Castle House Trust was originally established by Trust Deeds dated 19th July 1966 and the governing instruments of the Trust were:
Voluntary Settlement dated 31st January 1962 Voluntary Settlement dated 19th July 1966 Conveyance dated 19th July 1966
The company was incorporated on 8th December 2014 and the above other than the conveyance dated 19th July 1966 have been superseded by the Articles of Association.
Organisation
The charity is managed by a Board of Trustees. The trustees are not connected charities or companies and no single trustee is in overall control.
The Trust converted to a company limited by guarantee.
There have been a maximum of six trustees throughout the year. Julia Abel Smith was appointed in February 2022 and sadly Derek Archer OBE died in June 2022.
Jenny Hand, the full-time Museum Director since 2013 reports to the Trustees. She oversees the day to day management and operation of the Trust and museum which includes other staff and subcontractors and a nine person research and development team along with around 80 room stewards.
Financial Controls
The trustees maintain financial controls over the assets of the Trust and meet regularly to decide strategies as to how to use the resources available in respect of both day to day running of the museum and of refurbishment programmes.
Investment Powers and Restrictions
The investment objective is to provide the maximum total return that is commensurate with moderate risk exposure that the Trustees feel able to accept with our funds and assets.
The returns obtained, together with any admission charges or surplus from other activities, together with admission fees and other income, are used to pursue the objectives of the trust and, to maintain the Sir Alfred Munnings Art Museum in good repair, conserve its collection and to make it available for public view, together with the provision of such additional services - for example education - as may be appropriate.
The attitude to risk is that while a level of risk is required for any investment, the funds should not be exposed to extraordinary risk. The Trustees will not restrict the investment manager from achieving the investment objectives.
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The Castle House Trust
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year Ended 31st December 2022
Objectives and Activities
The objective of the Trust continues to be the operation of an art museum for the benefit of the public. The museum's premises at Castle House, Dedham, Essex was once the home of artist, Sir Alfred Munnings. The paintings within the collection and on display are predominately by Munnings. Sir Alfred's widow endowed the Trust in the 1960s with the house and surrounding land along with the collection of paintings which form the core of the collection.
Public Benefit
The museum is open to the public from Wednesday to Sunday and Bank Holiday Mondays from 1st April until 30th October and at other times for pre-booked groups and tours. In 2021, as in 2020, the government's Covid-related restrictions impacted both time and manner of opening.
Small Company Provisions
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
The trustees' annual report was approved on .............................. and signed on behalf of the board of trustees by:
R.J.C. Johnston Trustee
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The Castle House Trust
Company Limited by Guarantee
Independent Examiner's Report to the Trustees of The Castle House Trust
Year Ended 31st December 2022
I report to the trustees on my examination of the financial statements of The Castle House Trust ('the charity') for the year ended 31st December 2022.
Responsibilities and Basis of Report
As the trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act’).
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent Examiner's Statement
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
-
the financial statements do not accord with those records; or
-
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or
-
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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The Castle House Trust
Company Limited by Guarantee
Independent Examiner's Report to the Trustees of The Castle House Trust (continued)
Year Ended 31st December 2022
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Peyton Tyler Mears Independent Examiner
Middleborough House 16 Middleborough Colchester Essex CO1 1QT
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The Castle House Trust
Company Limited by Guarantee
Statement of Financial Activities (including income and expenditure account)
Year Ended 31st December 2022
| 2022 | 2022 | 2021 | ||||
|---|---|---|---|---|---|---|
| Unrestricted | Restricted | Endowment | ||||
| funds | funds | funds | Total funds | Total funds | ||
| Note | £ | £ | £ | £ | £ | |
| Income and endowments | ||||||
| Donations and legacies | 5 | 8,921 | – | – | 8,921 | 30,476 |
| Charitable activities | 6 | 193,135 | – | – | 193,135 | 107,695 |
| Investment income | 7 | 41,522 | – | – | 41,522 | 32,457 |
| Other income | 8 | 15,264 | – | – | 15,264 | 13,063 |
| ----------------------------------- | --------------- | --------------- | ----------------------------------- | ----------------------------------- | ||
| Total income | 258,842 | – | – | 258,842 | 183,691 | |
| =================================== | =============== | =============== | =================================== | =================================== | ||
| Expenditure | ||||||
| Expenditure on raising funds: | ||||||
| Costs of other | ||||||
| trading activities | 9 | (25,390) | – | – | (25,390) | (26,693) |
| Investment | ||||||
| management costs | 10 | (11,729) | – | – | (11,729) | (12,428) |
| Expenditure on charitable | ||||||
| activities | 11 | (190,727) | – | – | (190,727) | (181,140) |
| ----------------------------------- | --------------- | --------------- | ----------------------------------- | ----------------------------------- | ||
| Total expenditure | (227,846) | – | – | (227,846) | (220,261) | |
| =================================== | =============== | =============== | =================================== | =================================== | ||
| Net (losses)/gains on | ||||||
| investments | 13 | (131,539) | – | – | (131,539) | 179,024 |
| ----------------------------------- | --------------- | --------------- | ----------------------------------- | ----------------------------------- | ||
| Net (expenditure)/income | ||||||
| and net movement in funds | (100,543) | – | – | (100,543) | 142,454 | |
| =================================== | =============== | =============== | =================================== | =================================== | ||
| Reconciliation of funds | ||||||
| Total funds brought forward | 2,352,687 | 456,901 | 11,284 | 2,820,872 | 2,678,418 | |
| --------------------------------------------- | ----------------------------------- | ------------------------------ | --------------------------------------------- | --------------------------------------------- | ||
| Total funds carried forward | 2,252,144 | 456,901 | 11,284 | 2,720,329 | 2,820,872 | |
| ============================================= | =================================== | ============================== | ============================================= | ============================================= |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 11 to 22 form part of these financial statements.
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The Castle House Trust
Company Limited by Guarantee
Statement of Financial Position
31st December 2022
| 2022 | 2021 | ||
|---|---|---|---|
| Note | £ | £ | |
| Fixed Assets | |||
| Tangible fixed assets | 18 | 542,360 | 529,744 |
| Investments | 20 | 1,931,859 | 2,101,875 |
| --------------------------------------------- | --------------------------------------------- | ||
| 2,474,219 | 2,631,619 | ||
| Current Assets | |||
| Stocks | 21 | 45,627 | 45,315 |
| Debtors | 22 | 10,902 | 17,458 |
| Cash at bank and in hand | 208,054 | 138,454 | |
| ----------------------------------- | ----------------------------------- | ||
| 264,583 | 201,227 | ||
| Creditors: amounts falling due within one year | 23 | 18,473 | 11,974 |
| ----------------------------------- | ----------------------------------- | ||
| Net Current Assets | 246,110 | 189,253 | |
| --------------------------------------------- | --------------------------------------------- | ||
| Total Assets Less Current Liabilities | 2,720,329 | 2,820,872 | |
| --------------------------------------------- | --------------------------------------------- | ||
| Net Assets | 2,720,329 | 2,820,872 | |
| ============================================= | ============================================= | ||
| Funds of the Charity | |||
| Endowment funds | 11,284 | 11,284 | |
| Restricted funds | 456,901 | 456,901 | |
| Unrestricted funds | 2,252,144 | 2,352,687 | |
| --------------------------------------------- | --------------------------------------------- | ||
| Total charity funds | 26 | 2,720,329 ============================================= |
2,820,872 ============================================= |
For the year ending 31st December 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
-
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
-
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
The statement of financial position continues on the following page. The notes on pages 11 to 22 form part of these financial statements.
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The Castle House Trust
Company Limited by Guarantee
Statement of Financial Position (continued)
31st December 2022
These financial statements were approved by the board of trustees and authorised for issue on ........................, and are signed on behalf of the board by:
R.J.C. Johnston Trustee
The notes on pages 11 to 22 form part of these financial statements.
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The Castle House Trust
Company Limited by Guarantee
Notes to the Financial Statements
Year Ended 31st December 2022
1. General Information
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is The Sir Alfred Munnings Art Museum, Castle House, Dedham, Colchester, CO7 6AZ.
2. Statement of Compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Companies Act 2006.
3. Accounting Policies
Basis of Preparation
The financial statements have been prepared on the historical cost basis.
Going Concern
There are no material uncertainties about the charity's ability to continue.
Disclosure Exemptions
Advantage has been taken of the following disclosure exemptions available:
(a) No cash flow statement has been presented for the charity.
(b) Disclosures in respect of financial instruments have not been presented.
Judgements and Key Sources of Estimation Uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Fund Accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure or disposal declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
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The Castle House Trust
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year Ended 31st December 2022
3. Accounting Policies (continued)
Incoming Resources
All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
-
income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
-
legacy income is recognised when receipt is probable and entitlement is established.
-
income from sale of goods and museum admissions is recognised at the point of sale.
-
other income in the form of copyright fees and investment income is recognised when receipt is probable and entitlement is established.
Resources Expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
-
expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of museum shop goods.
-
expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
-
other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
Tangible Assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost of an asset, less its residual value, over the useful economic life of that asset as follows:
| Garden equipment | - | 25% straight line |
|---|---|---|
| Office equipment | - | 20% to 25% straight line |
| Tea Room | - | 10% to 25% straight line |
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The Castle House Trust
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year Ended 31st December 2022
3. Accounting Policies (continued)
Depreciation (continued)
Buildings, pictures, furniture and chattels are not depreciated because their residual value is such that any depreciation would be immaterial.
Heritage Assets
Heritage assets measured under the cost model are recognised initially recorded at acquisition cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Investments
Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.
Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.
Impairment of Fixed Assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price. Cost includes all costs of purchase and other costs incurred in bringing the stock to its present location and condition.
Government Grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the charity will comply with the conditions attaching to them and the grants will be received.
Where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
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The Castle House Trust
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year Ended 31st December 2022
3. Accounting Policies (continued)
Financial Instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Where investments in shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.
Defined Contribution Plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.
4. Limited by Guarantee
Every member of the charity undertakes to contribute such amount as may be required, not exceeding £1, to the charity's assets if it should be wound up while he or she is a member or within one year after he or she ceases to be a member.
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The Castle House Trust
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year Ended 31st December 2022
5. Donations and Legacies
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2022 | Funds | 2021 | |
| £ | £ | £ | £ | |
| Donations | ||||
| Sundry donations received | 588 | 588 | 1,224 | 1,224 |
| Grants | ||||
| Environmentally sensitive area scheme | ||||
| grant | 2,417 | 2,417 | 22,205 | 22,205 |
| Government grant income | – | – | 4,605 | 4,605 |
| Subscriptions | ||||
| Subscriptions | 5,916 | 5,916 | 2,442 | 2,442 |
| ------------------------- | ------------------------- | ------------------------------ | ------------------------------ | |
| 8,921 ========================= |
8,921 ========================= |
30,476 ============================== |
30,476 ============================== |
6. Charitable Activities
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2022 | Funds | 2021 | |
| £ | £ | £ | £ | |
| Sales of catalogues, prints, paperback | ||||
| books, etc | 23,072 | 23,072 | 22,436 | 22,436 |
| Artist resale rights & copyright fees | 134,620 | 134,620 | 54,158 | 54,158 |
| Open house admission fees | 30,571 | 30,571 | 22,524 | 22,524 |
| Miscellaneous income | 3,302 | 3,302 | 4,514 | 4,514 |
| Events | 1,570 | 1,570 | 4,063 | 4,063 |
| ----------------------------------- | ----------------------------------- | ----------------------------------- | ----------------------------------- | |
| 193,135 | 193,135 | 107,695 | 107,695 | |
| =================================== | =================================== | =================================== | =================================== |
| 7. | Investment Income | ||||
|---|---|---|---|---|---|
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
| Funds | 2022 | Funds | 2021 | ||
| £ | £ | £ | £ | ||
| Income from listed investments | 41,522 | 41,522 | 32,457 | 32,457 | |
| ============================== | ============================== | ============================== | ============================== |
In accordance with Accounting Standards the Statement of Financial Activities only recognises investment income in the form of dividends received in the period. However the investment mandate is on a total return basis and the charity draws an income of £72,000 per annum from the portfolio which is a mixture of dividend and capital gain on investment disposals.
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The Castle House Trust
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year Ended 31st December 2022
8. Other Income
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2022 | Funds | 2021 | |
| £ | £ | £ | £ | |
| Rent received | 15,264 | 15,264 | 13,063 | 13,063 |
| ============================== | ============================== | ============================== | ============================== | |
| Costs of Other Trading Activities | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2022 | Funds | 2021 | |
| £ | £ | £ | £ | |
| Fundraising trading - Shop and | ||||
| education costs | 10,521 | 10,521 | 13,439 | 13,439 |
| Advertising | 2,329 | 2,329 | 1,830 | 1,830 |
| Stewarding costs | 5,501 | 5,501 | 3,076 | 3,076 |
| Exhibition costs | 6,749 | 6,749 | 3,874 | 3,874 |
| Events | 290 | 290 | 4,474 | 4,474 |
| ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | |
| 25,390 | 25,390 | 26,693 | 26,693 | |
| ============================== | ============================== | ============================== | ============================== |
9. Costs of Other Trading Activities
10. Investment Management Costs
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2022 | Funds | 2021 | |
| £ | £ | £ | £ | |
| Portfolio management | 11,729 | 11,729 | 12,428 | 12,428 |
| ============================== | ============================== | ============================== | ============================== | |
| Expenditure on Charitable Activities by Fund Type | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2022 | Funds | 2021 | |
| £ | £ | £ | £ | |
| Costs of running the museum | 165,524 | 165,524 | 159,235 | 159,235 |
| Support costs | 25,203 | 25,203 | 21,905 | 21,905 |
| ----------------------------------- | ----------------------------------- | ----------------------------------- | ----------------------------------- | |
| 190,727 | 190,727 | 181,140 | 181,140 | |
| =================================== | =================================== | =================================== | =================================== |
11. Expenditure on Charitable Activities by Fund Type
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The Castle House Trust
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year Ended 31st December 2022
12. Analysis of Support Costs
| Running of | |||||
|---|---|---|---|---|---|
| the museum | Total 2022 | Total 2021 | |||
| £ | £ | £ | |||
| General office | 4,651 | 4,651 | 5,638 | ||
| Depreciation | 3,171 | 3,171 | 6,143 | ||
| Legal & professional fees | 17,381 | 17,381 | 6,574 | ||
| Audit fee | – | – | 3,550 | ||
| ------------------------------ | ------------------------------ | ------------------------------ | |||
| 25,203 | 25,203 | 21,905 | |||
| ============================== | ============================== | ============================== | |||
| 13. | Net (Losses)/Gains on Investments | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
| Funds | 2022 | Funds | 2021 | ||
| £ | £ | £ | £ | ||
| Gains/(losses) on listed investments | (131,539) | (131,539) | 179,024 | 179,024 | |
| =================================== | =================================== | =================================== | =================================== | ||
| 14. | Net (Expenditure)/Income | ||||
| Net (expenditure)/income is stated after charging/(crediting): | |||||
| 2022 | 2021 | ||||
| £ | £ | ||||
| Depreciation of tangible fixed assets | 3,171 | 6,142 | |||
| Fees payable for the audit of the financial statements | – | 3,550 | |||
| ========================= | ========================= | ||||
| 15. | Independent Examination Fees | ||||
| 2022 | 2021 | ||||
| £ | £ | ||||
| Fees payable to the independent examiner for: | |||||
| Independent examination of the financial statements | 2,800 ========================= |
2,800 ========================= |
16. Staff Costs
| The total staff costs and employee benefits for the reporting period are analysed as follows: | The total staff costs and employee benefits for the reporting period are analysed as follows: | |
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Wages and salaries | 78,878 | 85,082 |
| Social security costs | 2,073 | 2,536 |
| Employer contributions to pension plans | 4,501 | 4,312 |
| ------------------------------ | ------------------------------ | |
| 85,452 | 91,930 | |
| ============================== | ============================== |
- 17 -
The Castle House Trust
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year Ended 31st December 2022
16. Staff Costs (continued)
The average head count of employees during the year was 4 (2021: 4).
No employee received employee benefits of more than £60,000 during the year (2021: Nil).
17. Trustee Remuneration and Expenses
No trustee received remuneration during the year (2021: Nil).
18. Tangible Fixed Assets
| Paintings, | ||||||
|---|---|---|---|---|---|---|
| Land and | Garden | Office | furniture & | |||
| buildings | equipment | equipment | chattels | Tea Room | Total | |
| £ | £ | £ | £ | £ | £ | |
| Cost | ||||||
| At 1 Jan 2022 | 130,657 | 24,152 | 67,749 | 456,901 | 29,387 | 708,846 |
| Additions | – | – | 14,511 | 1,276 | – | 15,787 |
| ----------------------------------- | ------------------------------ | ------------------------------ | ----------------------------------- | ------------------------------ | ----------------------------------- | |
| At 31 Dec 2022 | 130,657 | 24,152 | 82,260 | 458,177 | 29,387 | 724,633 |
| =================================== | ============================== | ============================== | =================================== | ============================== | =================================== | |
| Depreciation | ||||||
| At 1 Jan 2022 | 59,275 | 24,152 | 66,288 | – | 29,387 | 179,102 |
| Charge for the | ||||||
| year | – | – | 3,171 | – | – | 3,171 |
| ----------------------------------- | ------------------------------ | ------------------------------ | ----------------------------------- | ------------------------------ | ----------------------------------- | |
| At 31 Dec 2022 | 59,275 | 24,152 | 69,459 | – | 29,387 | 182,273 |
| =================================== | ============================== | ============================== | =================================== | ============================== | =================================== | |
| Carrying amount | ||||||
| At 31 Dec 2022 | 71,382 | – | 12,801 | 458,177 | – | 542,360 |
| =================================== | ============================== | ============================== | =================================== | ============================== | =================================== | |
| At 31 Dec 2021 | 71,382 | – | 1,461 | 456,901 | – | 529,744 |
| =================================== | ============================== | ============================== | =================================== | ============================== | =================================== |
The Balance Sheet figures for Castle House, Castle Cottage and land is stated at the 1959 probate value. The Balance Sheet figures for paintings, furniture and chattels is the 1959 probate value plus additions purchased at cost or donated value.
The market value of the freehold property, paintings, furniture and chattels greatly exceeds the book value and consequently the Trustees do not consider it appropriate to provide depreciation on these assets.
- 18 -
The Castle House Trust
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year Ended 31st December 2022
19. Heritage Assets
The charity holds heritage assets, which are tangible fixed assets of historical, artistic or scientific importance that are held to advance preservation and conservation objectives of the charity. Newly purchased heritage assets are capitalised and included at cost including any incidental expenses of acquisition.
Where heritage assets were acquired in past accounting periods and not capitalised, it can be difficult or costly to attribute a cost or value to them. In such cases, these assets are excluded from the balance sheet if reliable cost information is not available and conventional valuation approaches lack sufficient reliability or significant costs are involved in the reconstruction or analysis of past accounting records or in valuation, which are onerous compared with the additional benefit derived by by users of the accounts in assessing the trustees' stewardship of the assets.
The very long expected lives of heritage assets, due to their nature, value and need to be protected and preserved means that depreciation is not material and is, therefore, not provided.
20. Investments
| Cash or cash | Listed | ||
|---|---|---|---|
| equivalents | investments | Total | |
| £ | £ | £ | |
| Valuation | |||
| At 1 Jan 2022 | 65,613 | 2,036,262 | 2,101,875 |
| Additions | 54,879 | 457,562 | 512,441 |
| Disposals | – | (559,350) | (559,350) |
| Fair value movements | – | (123,107) | (123,107) |
| ----------------------------------- | --------------------------------------------- | --------------------------------------------- | |
| At 31 Dec 2022 | 120,492 | 1,811,367 | 1,931,859 |
| =================================== | ============================================= | ============================================= | |
| Carrying amount | |||
| At 31 Dec 2022 | 120,492 | 1,811,367 | 1,931,859 |
| =================================== | ============================================= | ============================================= | |
| At 31 Dec 2021 | 65,613 | 2,036,262 | 2,101,875 |
| =================================== | ============================================= | ============================================= |
All investments shown above are held at valuation.
Financial assets held at fair value
The investment fair values used at the year end are as provided to the Trustees by Cazenove Capital Management Limited.
21. Stocks
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Goods for resale | 45,627 | 45,315 |
| ============================== | ============================== |
- 19 -
The Castle House Trust
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year Ended 31st December 2022
22. Debtors
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Trade debtors | 2,918 | 798 |
| Prepayments and accrued income | 4,177 | 13,778 |
| Other debtors | 3,807 | 2,882 |
| ------------------------------ | ------------------------------ | |
| 10,902 | 17,458 | |
| ============================== | ============================== | |
| Creditors: amounts falling due within one year | ||
| 2022 | 2021 | |
| £ | £ | |
| Trade creditors | 5,784 | 5,343 |
| Accruals and deferred income | 11,201 | 6,511 |
| Social security and other taxes | 1,488 | – |
| Other creditors | – | 120 |
| ------------------------------ | ------------------------------ | |
| 18,473 ============================== |
11,974 ============================== |
23. Creditors: amounts falling due within one year
24. Pensions and Other Post Retirement Benefits
Defined contribution plans
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £4,501 (2021: £4,312).
25. Government Grants
The amounts recognised in the financial statements for government grants are as follows:
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Recognised in income from donations and legacies: | ||
| Government grants income | – | 4,605 |
| =============== | ========================= |
- 20 -
The Castle House Trust
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year Ended 31st December 2022
26. Analysis of Charitable Funds
Unrestricted funds
| Unrestricted funds | |||||
|---|---|---|---|---|---|
| Gains and | At | ||||
| At 1 Jan 2022 | Income | Expenditure | losses | 31 Dec 2022 | |
| £ | £ | £ | £ | £ | |
| General funds | 2,352,687 | 258,842 | (227,846) | (131,539) | 2,252,144 |
| ============================================= | =================================== | =================================== | =================================== | ============================================= | |
| Gains and | At | ||||
| At 1 Jan 2021 | Income | Expenditure | losses | 31 Dec 2021 | |
| £ | £ | £ | £ | £ | |
| General funds | 2,210,233 | 183,691 | (220,261) | 179,024 | 2,352,687 |
| ============================================= | =================================== | =================================== | =================================== | ============================================= | |
| Restricted funds | |||||
| Gains and | At | ||||
| At 1 Jan 2022 | Income | Expenditure | losses | 31 Dec 2022 | |
| £ | £ | £ | £ | £ | |
| Paintings, furniture and | |||||
| chattels | 456,901 | – | – | – | 456,901 |
| =================================== | =============== | =============== | =============== | =================================== | |
| Gains and | At | ||||
| At 1 Jan 2021 | Income | Expenditure | losses | 31 Dec 2021 | |
| £ | £ | £ | £ | £ | |
| Paintings, furniture and | |||||
| chattels | 456,901 | – | – | – | 456,901 |
| =================================== | =============== | =============== | =============== | =================================== | |
| Endowment funds | |||||
| Gains and | At | ||||
| At 1 Jan 2022 | Income | Expenditure | losses | 31 Dec 2022 | |
| £ | £ | £ | £ | £ | |
| Permanent Endowment | |||||
| Fund | 11,284 | – | – | – | 11,284 |
| ============================== | =============== | =============== | =============== | ============================== | |
| Gains and | At | ||||
| At 1 Jan 2021 | Income | Expenditure | losses | 31 Dec 2021 | |
| £ | £ | £ | £ | £ | |
| Permanent Endowment | |||||
| Fund | 11,284 | – | – | – | 11,284 |
| ============================== | =============== | =============== | =============== | ============================== |
- 21 -
The Castle House Trust
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year Ended 31st December 2022
27. Analysis of Net Assets Between Funds
| Unrestricted | Restricted | Endowment | Total Funds | |
|---|---|---|---|---|
| Funds | Funds | Funds | 2022 | |
| £ | £ | £ | £ | |
| Tangible fixed assets | 74,175 | 456,901 | 11,284 | 542,360 |
| Investments | 1,931,859 | – | – | 1,931,859 |
| Current assets | 264,583 | – | – | 264,583 |
| Creditors less than 1 year | (18,473) | – | – | (18,473) |
| --------------------------------------------- | ----------------------------------- | ------------------------------ | --------------------------------------------- | |
| Net assets | 2,252,144 | 456,901 | 11,284 | 2,720,329 |
| ============================================= | =================================== | ============================== | ============================================= | |
| Unrestricted | Restricted | Endowment | Total Funds | |
| Funds | Funds | Funds | 2021 | |
| £ | £ | £ | £ | |
| Tangible fixed assets | 61,559 | 456,901 | 11,284 | 529,744 |
| Investments | 2,101,875 | – | – | 2,101,875 |
| Current assets | 201,227 | – | – | 201,227 |
| Creditors less than 1 year | (11,974) | – | – | (11,974) |
| --------------------------------------------- | ----------------------------------- | ------------------------------ | --------------------------------------------- | |
| Net assets | 2,352,687 | 456,901 | 11,284 | 2,820,872 |
| ============================================= | =================================== | ============================== | ============================================= |
- 22 -