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2023-03-31-accounts

Charity Number: 1165528

The Alfred Gillett Trust

Trustees’ Report and Audited Financial Statements

For the year ended 31 March 2023

The Alfred Gillett Trust

Reference and administrative details for the year ended 31 March 2023

Charity Number 1165528 Registered office and The Grange Operational address Farm Road Street Somerset BA16 0BQ Trustees The trustees are who served during the year and up to the date of this report were as follows:Mrs Cato Pedder Chair Mr Richard Clark Mr Patrick Colton Mr David Hill Mr Martin Lovell Mr Hugh Pym Senior Management Team The day to day management of the trust is delegated to the Senior Management Team as follows:Ms Rosemary Martin Ms Samantha Cullen Office Manager Mr Tim Crumplin Business Archivist Ms Nicky Dowding Collections Manager Bankers Co-Operative PO Box 250 Skelmersdale WN8 6WT Solicitors VWV Narrow Quay House Narrow Quay Bristol BS1 4QA Auditors A C Mole Chartered Accountants Stafford House Blackbrook Park Avenue Taunton Somerset TA1 2PX

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The Alfred Gillett Trust

Report of the Trustees for the year ended 31 March 2023

The trustees present their report along with the financial statements of the charity for the year ended 31 March 2023.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).

Structure, governance and management

The Alfred Gillett Trust is a Charitable Incorporated Organisation (CIO) governed by a board of seven trustees which meet 8 times per year. There is also a finance sub-committee that was formed in early 2021 consisting of two trustees and a capital development project subcommittee comprising three trustees. The trustees set the strategic vision and are guided by the Foundation Constitution of the organisation, dated 11 February 2016. We were previously established as a charity under a Trust deed dated 2 October 2002 and its registered charity number was 1095901.

The CIO can appoint trustees and must have at least three charity trustees and a maximum of twelve. Both The Roger and Sarah Bancroft Charitable Trust (registered charity number 211513) and the Joseph and Frances Clark Trust (registered charity number 267441) have the power to appoint and remove one trustee. C & J Clark Limited also has the power to appoint and remove one trustee. All trustees give their time freely and no remuneration was paid in the year.

Trustees are recruited through a process of open advertising in both sector and local channels as well as existing networks, with subsequent interviews held in person before the appointment. The induction process for any newly appointed trustee comprises an initial meeting with the chair and the director. Newly appointed trustees are briefed on our objectives and details of the constitution. The welcome pack includes a brief history, copies of board minutes, the latest annual report and accounts, the constitution, the forward plan, the staff handbook, relevant policy documents and the Charity Commission's guidance The Essential Trustee: What You Need to Know. Trustees also keep themselves up to date using information from the Charity Commission and their solicitors. New trustees are also invited to take a tour of the sites.

At the board meetings, the trustees approve the strategy, including consideration of investment, reserves and risk management policies and performance. The director and senior management team (SMT) have the authority to implement the trustees’ decisions, which are communicated through the trustee meetings, or via email/phone calls/on-line discussion during intervening periods. The director discusses issues with the chair of the trustees bi-weekly and submits reports and proposals to the trustees and stakeholders on an ongoing basis.

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The Alfred Gillett Trust

Report of the Trustees for the year ended 31 March 2023

A service level agreement was signed between the Trust and C & J Clark Limited dated February 2021 following the purchase of the historic collections by the Trust in December 2020 further enhancing the close relationship that the two organisations enjoy.

Objectives and activities

The Alfred Gillett Trust was established to advance public education through the cooperation and assistance in the foundation and maintenance of a public records centre and museum in Street. This is achieved in a number of ways. Primarily, the Trust is working towards opening a new museum to the public in time for C & J Clark Limited’s 200[th] Anniversary in 2025 through the development of a capital build and museum design project. The collections which are planned to be on display, are varied and include Clark family and business archives, shoe catalogues, point of sale materials, fossils, artwork and furniture, costume, film and sound archives, and a large collection of historic shoes and shoemaking machinery. The archive is open to the public and research institutions by appointment. In addition, the Trust acts as a heritage resource for C & J Clark Limited, conducting tours and providing information on-line and in person. A programme of events and temporary exhibitions are available to the public throughout the year.

Our vision, mission, and values

Our vision is to inspire the world with the family and community stories behind Clarks shoes.

Our mission is to provide engaging spaces for developing and sharing stories of the collections we care for.

Our core values function as an ethical compass. They indicate who we want to be and what we want to radiate. Together, the core values are the yardstick by which we will measure ourselves and all our activities – existing and new.

Charitable objectives

To advance public education through the co-operation and assistance in the foundation and maintenance of a public records centre and museum in Street in the County of Somerset or such other place as the trustees may decide for one or more of the following purposes namely:

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The Alfred Gillett Trust

Report of the Trustees for the year ended 31 March 2023

Strategic Priorities:

  1. Protect, develop, and understand our collections;

  2. Share the stories from our collections;

  3. Be open and known; and

  4. Stand on our own two feet.

Public Benefit

The trustees confirm they have complied with the duty in section 17(5) of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission. The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning future activities.

The heritage service gives the public access to extensive archive and collections comprising material that relates to the history and manufacture of footwear, the individuals involved in footwear design and production, the development of Street as a company town, and the sociological , political, and economic changes which occurred in the nineteenth and twentieth centuries. Public access is facilitated at the Grange by prior appointment and in a drop-in capacity through our programme of open days, tours, events, and temporary exhibitions.

Achievements and Performance

Our strategic aims and objectives set to guide our development were published in the 2022/23 Strategic Plan which is available to read at - - - https://alfredgilletttrust.files.wordpress.com/2022/06/strategic plan 2022 2023.pdf. Four key strategic priorities were identified to guide the work of the Trust over the course of the capital development project and planned transformational changes.

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The Alfred Gillett Trust

Report of the Trustees for the year ended 31 March 2023

1. Protect, Develop and Understand our Collections

2. Share the Stories

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The Alfred Gillett Trust

Report of the Trustees for the year ended 31 March 2023

3. Be Open and Known

4. Stand on our Own Two Feet

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The Alfred Gillett Trust

Report of the Trustees for the year ended 31 March 2023

Plans for future periods

1. Protect, develop, and understand our collections

Much of the work under this objective involves preparing the collections for suitable storage whilst the capital development project is underway, moving them from different locations around the site to the archive, shipping containers or other safe spaces. The huge backlog of assessment, documentation and re-packaging will continue, with emphasis on targeting items likely to be of relevance to the new public offer. Digitisation of the collections will also continue, photographing and videoing material for potential use in an on-line gallery as well as providing material for C & J Clark Limited. Conservation work will target items intended for public display, such as the collection of marine reptiles.

2. Share the stories from our collections

Under this strand of work, we will continue to work with our consultants, Nissen Richards Studios, as we move from Concept to Museum Scheme which will see more detailed designs, story lines and object lists developed.

Community consultation will continue at every opportunity as groups and individuals visit the site, in particular, as they engage with a new exhibition about the capital build now in place for that purpose. In addition to this, a new activity plan will attract a wide audience.

We will continue our public enquiry service as well as the provision of heritage services for C & J Clark Limited.

3. Be open and known

The main thrust of our work will be towards opening a museum at the Grange. Led by Architects, Purcell, we will complete RIBA stage 4, and await the outcome of our planning application, due in August 2023. We have worked closely with our local Council and are hopeful of a positive outcome. Following this, an application to Natural England will be made for a licence to relocate one of our bat roosts – mitigating actions are part of the planning application. Demolition of the 1970s Link building can then take place in the Autumn, following which, the building works can commence in December/January and last for 60 weeks. If the Autumn window for the relocation of the bat roost is missed, relocation will take place in the Spring.

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The Alfred Gillett Trust

Report of the Trustees for the year ended 31 March 2023

4. Stand on our own two feet

This strand of work looks at our long term financial, environmental, and social sustainability. As such, the business plan will be continuously revised and updated, and will move towards a sustainable staffing structure fit for a new museum and public offer. Commercial income from events, both public and private will be given due consideration and our environmental impact scrutinised. Working with our sustainability consultants, QODA, we aim to reach the highest environmental standards as practically possible. Our intention is to increase the biodiversity of the site for people’s enjoyment and learning.

Financial Review

Reserves Policy

The Trust keeps a certain level of financial reservices to help meet the charity’s needs via a Reserves and Investment policy dated November 2021. The reserve level has been set to cover the operating costs of the Trust for a period of six months, which is calculated and monitored at the start of every financial year and adjusted to match 50% of the approved operating budget.

At the end of the year, we had unrestricted reserves of £12,491,688 (2022: £10,358,650), with “free” reserves of £701,962 (2022: £778,458), this being the unrestricted reserves less fixed assets, heritage assets, investments and current asset held designated funds (see note 20).

Investments

The listed investments with Schroder charity equity funds are included at fair value using the closing quoted market price, being the bid price, and the unlisted investments have been included in the balance sheet at the annual valuation of the shares by BDO, Chartered Accountants, using a valuation date closest to the balance sheet date.

Investment Policy

There are no restrictions imposed on the investment policy by our constitution. The trustees make the investments in accordance with Charity Law.

Trustees’ Risk Assessment

The trustees maintain a risk register to identify the risks that we encounter during operation. The risk register is tabled at every board meeting and each risk identified is graded low, medium, or high. The trustees consider that adequate controls are in place to mitigate the key risks identified.

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The Alfred Gillett Trust

Report of the Trustees for the year ended 31 March 2023

Principal Risks and Management Strategy

  1. We are unable to continue operating in the long term if adequate and sustainable financial resources are not in place.

    • a) Our principal long-term income is generated from the shares we hold, which have performed poorly in recent years. This position is partially reserved as we work alongside Abrdn, our investment partners and having developed our ethical investment policy;

    • b) Our operational business plan and budget are continuously under review, and guide our income generation and expenditure;

    • c) We will continue to explore ways of generating income through our services and activities, partnership projects and employ a fundraiser to seek external funding.

  2. The capital development project poses certain risks to the organisation, particularly at a time of high inflation, supply chain issues and cost of living crisis.

    • a) We have surrounded ourselves with a professional team of consultants to assist us in realising the project, including Architects, Project Manager, Quantity Surveyor and Museum Design specialists.

    • b) We have employed a fundraising consultant to assist us in fundraising for the capital build project.

    • c) We are taking a phased approach to the site’s development.

Fundraising

The Trust is developing a formal policy governing how we raise funds from the public but does not directly employ a fundraiser, although a fundraising consultant has been appointed specifically to raise funds for the capital development project. Fundraising is mainly achieved through individual major donors, trusts and foundations which has resulted in £75,477 in donations to the Trust which resulted in an additional £18,915.72 in Gift Aid.

The Trust received a significant donation of £2,107,614 from the Roger and Sarah Bancroft Clark Charitable Trust which was a legacy donation intended to help with the creation of a new museum in Street for public benefit.

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The Alfred Gillett Trust

Report of the Trustees for the year ended 31 March 2023

Statement of Responsibilities of the Trustees

The trustees are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102. The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and the income and expenditure of the charity of the period. In preparing those financial statements the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

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The Alfred Gillett Trust

Report of the Trustees for the year ended 31 March 2023

Members of the Charity have no liability to contribute to the assets of the charity in the event of winding up. The trustees are members of the Charity but this entitles them only to voting rights. The trustees have no beneficial interest in the Charity.

Auditors

A C Mole were appointed as auditors during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on

and signed on their behalf by:

Mrs Cato Pedder (Chair)

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Independent Auditors’ Report To the Trustees of The Alfred Gillett Trust

We have audited the financial statements of The Alfred Gillett Trust (the “charitable incorporated organisation”) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cashflows and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:-

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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Independent Auditors’ Report To the Trustees of The Alfred Gillett Trust

Other information (continued)

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you, if our opinion:-

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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Independent Auditors’ Report To the Trustees of The Alfred Gillett Trust

Our responsibilities for the audit of the financial statements (continued)

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

Identifying and assessing potential risks of material misstatement due to irregularities

We considered the following when identifying and assessing risks of material misstatement due to irregularities, including fraud and non-compliance with laws and regulations:

Laws and regulations which are considered to be significant to the charity include those relating to the requirements of financial reporting framework FRS102, the Charities Act 2011, UK tax legislation, employment law and health and safety. In addition, we consider other laws and regulation which may not directly impact the financial statements but may impact on the operation of the charity.

As a result of these procedures we concluded, in accordance with International Auditing Standards, that a risk in relation to the potential for management override of controls existed.

Audit responses to risks identified

We undertook audit procedures to respond to the risks identified, and designed our audit testing to respond to these risks. The additional procedures we undertook included the following:

We also communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indicators of fraud or noncompliance with laws and regulations throughout the audit.

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Independent Auditors’ Report To the Trustees of The Alfred Gillett Trust

Audit responses to risks identified (continued)

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

We have been appointed as auditor under Section 144/145 of the Charities Act 2011 and report in accordance with the regulations made under Section 145 of that Act.

Date …………………………………………………….

A C MOLE (STATUTORY AUDITOR) Chartered Accountants & Statutory Auditors

Stafford House Blackbrook Park Avenue Taunton Somerset TA1 2PX

A C Mole is eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006.

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The Alfred Gillett Trust

Statement of Financial Activities for the year ended 31 March 2023

2023
Restricted
Unrestricted
Total
Note
£
£
£
Income from:-
Donations & legacies
3
93,857
2,152,750 2,246,607
Charitable activities
4
-
419,860
419,860
Investments
5
-
169,314
169,314
Other income
6
-
818
818
Total Income
93,857
2,742,742 2,836,599
Expenditure on:-
Raising funds
-
60,882
60,882
Charitable activities
274,049
610,602
884,651
Total Expenditure
8
274,049
671,484
945,533
Net income/(expenditure)
before gains
(180,192)
2,071,258
1,891,066
Net gains on
Investments
-
144,665
144,665
Net income/(expenditure)
(180,192)
2,215,923
2,035,731
Transfers between funds
82,885
(82,885)
-
Net movement in funds
(97,307)
2,133,038
2,035,731
Reconciliation of funds:-
Total funds brought forward
107,714
10,358,650 10,466,364
Total funds carried forward
10,407
12,491,688 12,502,095		 2022
Total
£
4,279,558
309,763
80,571
-
4,669,892
50,172
595,722
645,894
4,023,998
849,124
4,873,122
-
4,873,122
5,593,242
10,466,364

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The Alfred Gillett Trust

Balance Sheet as at 31 March 2023

Charity Number: 1165528

2023
Note
£
Fixed assets
Tangible assets
12
1,679,957
Heritage assets
13
585,136
Investments
14
8,982,774
11,247,867
Current assets
Stock
15
725
Debtors
16
111,099
Cash at bank and in hand
1,234,607
1,346,431
Liabilities
Creditors: amounts falling due
within 1 year
18
92,203
Net current assets
1,254,228
Net assets
12,502,095

Funds
21
Restricted funds
10,407
Unrestricted funds
Designated funds
6,589,301
General funds
5,902,387
Total charity funds
12,502,095

Approved by the trustees on and signed on their behalf by:-

Mrs Cato Pedder (Chair)

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The Alfred Gillett Trust

Statement of Cashflows for the year ended 31 March 2023

2023 2022
Note £ £
Cash used in operating activities:-
Net movement in funds 2,035,731 4,873,122
Adjustments for:-
Depreciation charges 94,885 92,655
(Gains) on investments (144,665) (745,533)
Dividends and interest from investments (169,314) (80,571)
(Increase) in stock (192) -
(Increase)/decrease in debtors (24,910) 77,053
Increase/(decrease) in creditors 32,218 (21,154)
Net cash provided by operating activities 1,823,753 4,195,572
Cashflows from investing activities:-
Dividends and interest from investments 169,314 80,571
Purchase of tangible fixed assets (5,517) (24,415)
Purchase of investments (2,500,522) (4,000,000)
Disposals of Investments 368,826 -
Net cash (used in) investing activities (1,967,899) (3,943,844)
(Decrease)/increase in
cash and cash equivalents in the year (144,146) 251,728
Cash and cash equivalents at the beginning of the year 1,419,156 1,167,428
Cash and cash equivalents at the end of the year 17 1,275,010 1,419,156

The charity has not provided an analysis of changes in net debt as it does not have any long-term financing arrangements.

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The Alfred Gillett Trust Notes to the Financial Statements for the year ended 31 March 2023

1. Accounting policies

a) General information and basis of preparation

The Alfred Gillett Trust is a Charitable Incorporated Organisation (“CIO”). The charity is registered in England and Wales. The registered office is The Grange, Farm Road, Street.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The Alfred Gillett Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

b)

Going concern

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves. There are no material uncertainties about the charity’s ability to continue as a going concern.

c)

Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from grants, whether “capital” grants or “revenue” grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of provision of services, sponsorship and event income and deposit income is deferred until criteria for income recognition are met.

Income from donated assets is recognised when legal title passes.

Income from legacies is recognised when the above criteria are met.

d)

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the Bank.

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The Alfred Gillett Trust

Notes to the Financial Statements for the year ended 31 March 2023

Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:-

Freehold property 50 years
Fixtures and fittings 15 years
Equipment 3 years

No depreciation has been charged on freehold land.

Items of equipment are capitalised where the purchase price exceeds £500.

Heritage assets

The charity holds heritage assets , which are tangible fixed assets of historical, artistic, or scientific importance that are held to advance the preservation and conservation objectives of the charity. Newly purchased heritage assets are capitalised and included at cost including any incidental expenses of acquisition.

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The Alfred Gillett Trust Notes to the Financial Statements for the year ended 31 March 2023

i) Heritage assets (continued)

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 users of the accounts in assessing the trustees’ stewardship of the assets.

The Trust has a number of collections and historical artefacts which it manages and is in the process of cataloguing and digitalising some of these historic collections, which are being held to advance the preservation, conservation, and educational objects of the Trust. Historically, the majority of these collections were loaned to the Trust from C & J Clark Limited, the Clark family and others and therefore, did not belong to the Trust itself. However, during 2021/22 the Trust purchased this collection from C & J Clark Limited. The purchased collection has been capitalised as a heritage asset. Any remaining loaned assets are not capitalised within these financial statements, although some of the expenditure relating to their use and maintenance is included in the Statement of Financial Activities.

The very long expected life 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. The trustees will review its value at the end of each financial accounting period and consider whether there has been any impairment in its value at which point an impairment charge will be processed.

Listed and unlisted investments

Investments listed or trade on a recognised stock exchange are stated at fair value at the reporting date, which is deemed to be their market value. Any gain or loss, whether realised or unrealised, is taken to the Statement of Financial Activities.

Unlisted investments have been revalued to reflect valuations carried outby BDO at a date closest to the balance sheet date, which is deemed to be their fair value. Any gain or loss, whether realised or unrealised, is taken to the Statement of their Financial Activities in the period in which it is incurred.

k)

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

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The Alfred Gillett Trust

Notes to the Financial Statements for the year ended 31 March 2023

m) Creditors

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

n)

Financial instruments

The trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.

o) Pension costs

The trust operates a defined contribution pension scheme for its employees. There are no further liabilities other than that already recognised in the SOFA.

p) Accounting estimates and key judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

Heritage assets

As described in note 1(i) to the accounts, many of the charity’s heritage assets are too impractical to value and are therefore excluded from the accounts. Where practicable, heritage assets are valued at cost.

Valuation of unlisted investments

The charity holds unlisted investments in the shares of C & J Clark Limited, a private limited company. Valuations are currently carried out by the company on an annual basis under a process set out in the company’s Articles. The charity trustees use these valuations to estimate the fair value of the charity’s investments. At the balance sheet date, the valuation closest to the balance sheet date was dated 1 May 2023 and valued the investment at £1.97 per share (2022: 1 July 2022 and £1.76 per share).

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The Alfred Gillett Trust

Notes to the Financial Statements for the year ended 31 March 2023

2. Statement of financial activities: prior period comparative

2022
Restricted Unrestricted Total
£ £ £
Income from:
Donations and legacies - 4,279,558 4,279,558
Charitable activities - 309,763 309,763
Investments - 80,571 80,571
Other income - - -
Total income - 4,669,892 4,669,892
Expenditure on:
Raising funds - 50,172 50,172
Charitable activities 18,691 577,031 595,722
Total expenditure 18,691 627,203 645,894
Net income/(expenditure)
before gains (18,691) 4,042,689 4,023,998
Net gains on investments - 849,124 849,124
Net income/(expenditure) (18,691) 4,891,813 4,873,122
Transfers between funds (16,643) 16,643 -
Net movement in funds (35,334) 4,908,456 4,873,122

23

The Alfred Gillett Trust

Notes to the Financial Statements for the year ended 31 March 2023

3. Income from donations and legacies 2023
Restricted Unrestricted Total
£ £ £
Roger and Sarah Bancroft Clark
Charitable Trust - 2,107,614 2,107,614
The Estate of Ralph Clark - 44,560 44,560
Other donations 93,857 576 94,433
Total donation & legacy income 93,857 2,152,750 2,246,607
2022
Restricted Unrestricted Total
£ £ £
Roger and Sarah Bancroft Clark
Charitable Trust - 4,240,037 4,240,037
Other donations - 39,521 39,521
Total donation & legacy income - 4,279,558 4,279,558
4. Income from charitable activities 2023
Restricted Unrestricted Total
Heritage services: £ £ £
Research and service fees - 345,026 345,026
Room and Ground hire - 73,812 73,812
Talks and tours - 690 690
Outreach and fundraising - 332 332
Total income from charitable activities
-		 419,860 419,860
2022
Restricted Unrestricted Total
Heritage services: £ £ £
Research and service fees - 303,497 303,497
Room Hire - 5,785 5,785
Talks and Tours - 481 481
Total income from charitable activities - 309,763 309,763

24

The Alfred Gillett Trust

Notes to the Financial Statements for the year ended 31 March 2023

5. Income from investments

Restricted
Unrestricted
£
£
Investments listed on a
recognised stock exchange
-
162,159
Bank interest receivable
-
7,155
Total income from investments
-
169,314
 2023
Total
£
162,159
7,155
169,314		 2022
Total
£
79,835
736

80,571

All income from investments received in the prior period was unrestricted.

6. Other income

Other income
2023 2022
Restricted Unrestricted Total Total
£ £ £ £
Other trading income - 818 818 -

7. Government grants

The charity receives government grants, defined as funding from South Somerset District Council and Mendip Council, and the Coronavirus Job Retention Scheme to fund charitable activities. The total value of such grants in the period ending 31 March 2023 was £0 (2022: £25,000). There are no unfulfilled conditions or contingencies attaching to these grants.

25

The Alfred Gillett Trust

Notes to the Financial Statements for the year ended 31 March 2023

8. Total expenditure

Wages and salaries
Training and conferences
Premises costs
Insurance
Health & Safety
Other motor/travel costs
Other staff costs
Advertising
Depreciation
Subscriptions
Outreach and event costs
Consultancy costs
Sundry purchases
Communications and IT
General office
Bank charges
Room hire costs
Professional fees
Audit
Legal
Sub Total
Allocation of support and
governance costs
Total expenditure		 Support and
Raising
Charitable
governance
funds
activities
costs
£
£
£
60,214
312,853
20,969
-
1,645
-
-
73,385
-
-
20,406
-
-
1,120
-
-
2,228
-
-
4,452
-
-
1,046
-
-
94,885
-
-
1,857
-
-
4,771
-
-
3,495
-
-
4,443
-
-
-
5,398
-
-
31,440
-
195
-
668
-
-
-
-
291,563
-
-
8,500
-
-
-
60,882
526,781
357,870
-
357,870
(357,870)
60,882
884,651
-		 2023
Total
£
394,036
1,645
73,385
20,406
1,120
2,228
4,452
1,046
94,885
1,857
4,771
3,495
4,443
5,398
31,440
195
668
291,563
8,500
-
945,533
-

945,533

Total governance costs were £8,500.

26

The Alfred Gillett Trust

Notes to the Financial Statements for the year ended 31 March 2023

8. Total expenditure: prior period comparative

Wages and salaries
Training and conferences
Premises costs
Insurance
Health & Safety
Other motor/travel costs
Other staff costs
Depreciation
Subscriptions
Outreach and event costs
Consultancy costs
Sundry purchases
Communications and IT
General office
Bank charges
Professional fees
Audit
Legal
Sub Total
Allocation of support and
governance costs
Total expenditure		 Support and
Raising
Charitable
governance
funds
activities
costs
£
£
£
50,172
284,439
20,171
-
509
-
-
73,631
-
-
20,802
-
-
9,951
-
-
2,255
-
-
7,585
-
-
92,655
-
-
1,079
-
-
321
-
-
1,215
-
-
3,262
-
-
-
3,573
-
-
18,799
-
-
35
-
-
50,587
-
-
4,623
-
-
230
50,172
497,704
98,018
-
98,018
(98,018)
50,172
595,722
-		 2022
Total
£
354,782
509
73,631
20,802
9,951
2,255
7,585
92,655
1,079
321
1,215
3,262
3,573
18,799
35
50,587
4,623
230
645,894
-

645,894

Total governance costs were £6,210.

27

The Alfred Gillett Trust

Notes to the Financial Statements for the year ended 31 March 2023

9.
Net movement in funds
This is stated after charging:-
2023
£
Depreciation
94,885
Operating lease payments
1,636
Trustees’ remuneration
-
Trustees’ reimbursed expenses
-
Auditors’ remuneration:-
Statutory audit and accounts preparation (inc VAT)
5,970
Under accrual of prior year
2,530
10.
Staff costs and numbers
Staff costs were as follows:-
2023
£
Salaries and wages
338,500
Social security costs
26,082
Pension costs
29,454
394,036		 2022
£
92,655
1,636
-
-
6,000
-
2022
£
306,635
21,813
26,334
354,782

No employee earned more than £60,000 during the year (2022: none).

The key management personnel of the charity comprise the Trustees and the Senior Management Team. The total employee benefits of the key management personnel were £ 190,955 (2022: £163,104).

Average head count
Average number of full time equivalent employees		 2023
£
13
11		 2022
£
13
12

11. Taxation

The charity is exempt from corporation tax to the extent that all its income is charitable and is applied for charitable purposes.

28

The Alfred Gillett Trust

Notes to the Financial Statements for the year ended 31 March 2023

12. Tangible fixed assets
Land & Fixtures &
Buildings Fittings Equipment Total
£ £ £ £
Cost
At 1 April 2022 1,748,826 714,974 52,409 2,516,209
Additions in year - - 5,517 5,517
At 31 March 2023 1,748,826 714,974 57,926 2,521,726
Depreciation
At 1 April 2022 317,244 383,041 46,599 746,884
Charge for the year 29,164 60,248 5,473 94,885
At 31 March 2023 346,408 443,289 52,072 841,769
Net book value
At 31 March 2023 1,402,418 271,685 5,854 1,679,957
At 31 March 2022 1,431,582 331,933 5,810 1,769,325
13. Heritage assets
Shoe
Collection
£
Cost
At 1 April 2022 and 31 March 2023 585,136
Depreciation
At 1 April 2022 and 31 March 2023 -
Net book value
At 31 March 2023 585,136
At 31 March 2022 585,136

29

The Alfred Gillett Trust Notes to the Financial Statements for the year ended 31 March 2023

13. Heritage assets (continued)

The Trust has a number of collections and historical artefacts which it manages and is in the process of cataloguing and digitalising. These historic collections are being held to advance the preservation, conservation, and educational objects of the Trust. Historically, the majority of these collections were loaned to the Trust from C & J Clark Limited, the Clark family and others and therefore did not belong to the Trust itself. However, during 2020/21 the Trust purchased this collection from C & J Clark Limited.

The purchased collection was capitalised as a heritage asset. Any remaining loaned assets are not capitalised within these financial statements, although some of the expenditure relating to their use and maintenance is included in the Financial Activities. The Trust occasionally receives additions to the collections, and these acquisitions are invariably classified as heritage assets but are rarely included in the balance sheet as it would be both difficult and costly to attribute a value to them.

Five year summary analysis of heritage asset transactions:-

2023
£
Additions
Shoe collection: cost
Disposals
Artwork: carrying amount
Proceeds from disposal
Artwork: sales proceeds
14.
Investments
Market value at 1 April 2022
Additions
Disposals
Unrealised gain
Cash held in investment portfolio
Market value at 31 March 2023		 2022
2021
2020
£
£
£
-
585,136
-
-
(21,000)
-
-
867,000
-
2023
£
6,666,010
2,500,522
(468,442)
244,281
8,942,371
40,403
8,982,774		 2019
£
-

-

-
2022
£
1,920,477
4,000,000
-
745,533
6,666,010
103,591

6,769,601

30

The Alfred Gillett Trust Notes to the Financial Statements for the year ended 31 March 2023

14.
Investments (continued)
Investments comprise:
Unlisted investments
C & J Clark ordinary shares
Listed investments
Aberdeen listed portfolio
Investments via Schroders
Market value at 31 March 2023		 2023
2022
£
£
3,244,385
746,363
3,782,349
4,028,034
1,956,040
1,995,204
8,982,774
6,769,601

Determination of fair value

Unlisted investments

Valuations C & J Clark Limited are undertaken by BDO, Chartered Accountants, on an annual basis under a process set out in the C & J Clark Limited’s Articles. The charity trustees use these valuations to estimate the fair value of the charity’s investments.

At 31 March 2023, the valuation closest to the balance sheet date was undertaken on 1 May 2023 and valued the investment at £1.97 per share (2022: 1 July 2022 and £1.76 per share). This value has been incorporated into the accounts.

Listed investments

Listed investments held by Schroders and Aberdeen are shown at the market value at the balance sheet date.

15.
Stock
Merchandise
16.
Debtors
Prepayments
Dividends receivable
Other debtors		 2023
£
725
2023
£
9,777
20,888
80,434
111,099		 2022
£
533
2022
£
16,424
32,170
37,595
86,189

31

The Alfred Gillett Trust Notes to the Financial Statements for the year ended 31 March 2023

17.
Cash and cash equivalents
Cash at bank
Cash held within investment portfolio
18.
Creditors: amounts due within 1 year
Trade creditors
Accruals
Other taxation and social security
Other creditors
19.
Deferred Income
At 1 April 2022
Deferred during the year
Released during the year
At 31 March 2023		 2023
£
1,234,607
40,403
1,275,010
2023
£
40,484
47,936
3,783
-
92,203
2023
£
-
-
-
-		 2022
£
1,315,565
103,591
1,419,156
2022
£
32,120
14,858
12,568
439
59,985
2022
£
29,465
-
(29,465)
-

Deferred income relates to contract income received in advance of the services being delivered.

32

The Alfred Gillett Trust

Notes to the Financial Statements for the year ended 31 March 2023

Restricted
Designated
Funds
Funds
£
£
20.
Analysis of net assets
between funds
Tangible fixed assets
-
1,679,957
Heritage assets
-
585,136
Investments
-
3,782,349
Current assets
10,407
541,859
Current liabilities
-
-
Net assets at 31 March 2023
10,407
6,589,301
Prior year comparative
Restricted
Designated
Funds
Funds
£
£
Tangible fixed assets
-
1,769,325
Heritage assets
-
585,136
Investments
-
4,028,034
Current assets
107,714
456,130
Current liabilities
-
-
Net assets at 31 March 2022
107,714
6,838,625
 General
Funds
£
-
-
5,200,425
794,165
(92,203)
5,902,387
General
Funds
£
-
-
2,741,567
838,443
(59,985)
3,520,025		 Total
Funds
£
1,679,957
585,136
8,982,774
1,346,431
(92,203)
12,502,095
Total
Funds
£
1,769,325
585,136
6,769,601
1,402,287
(59,985)
10,466,364

33

The Alfred Gillett Trust

Notes to the Financial Statements for the year ended 31 March 2023

21.
Movements in funds
Gains At 31
At 1 April and March
2022 Income Expenditure Losses Transfers
2023
£ £ £ £ £ £
Restricted funds
Capital project 94,162 93,857
(272,218)
-		 84,199 -
Fossil care 6,023 -
(1,185)
-		 - 4,838
Storage containers Project 7,529 -
(646)
-
 (1,314)
 5,569
Total restricted funds 107,714 93,857
(274,049)
-
 82,885
10,407
Unrestricted funds
Designated funds:
Donnes collections storage 226,152 -
(94)
-		 - 226,058
Investments - -
-		 - - -
Public interface fund 18,000 -
-		 - - 18,000
Heritage asset collections 585,136 -
-		 - - 585,136
Tangible fixed assets 1,769,325 -
(94,885)		 - 5,517 1,679,957
New museum – invested 2,000,728 -
-		 1,952 (58,579) 1,944,101
New museum – uninvested 239,284 -
-		 - 58,517 297,801
Sustainability fund 2,000,000 -
-
 (163,970)
 2,218
1,838,248
Total designated funds 6,838,625 -
(94,979)		 (162,018)
7,673		 6,589,301
General funds 3,520,025 2,742,742
(576,505)
 306,683 (90,558)

 5,902,387
Total unrestricted funds 10,358,650 2,742,742
(671,484)
 144,665 (82,885) 12,491,688
Total funds 10,466,364 2,836,599
(945,533)		 144,665 - 12,502,095

Purposes of restricted funds

Capital project

A grant for the purpose of capital expenditure for any costs incurred by the Trust directly attributable to the construction and/or development of a new museum. Includes costs attributable to storage of the artefacts and archives of the Trust which are or may be displayed in the museum.

34

The Alfred Gillett Trust Notes to the Financial Statements for the year ended 31 March 2023

21. Movements in funds (continued)

Fossil care

Following the transfer of ownership of the fossil collection from the Crispin Geology Trust to the Alfred Gillett Trust in 2016, an endowment was meant to be transferred. This has now been achieved. These funds will form the foundation of fundraising for the ongoing care and conservation of the fossil collection.

Storage containers project

A grant of £25,000 was received from The National Archives as part of their Covid recovery funding. The grant paid for two shipping containers and groundworks and infrastructure costs implemented for the archive collection of the Trust and provides the sector with research into the use of shipping containers as appropriate storage for the heritage collections.

Purposes of designated funds

Proceeds from sale of El Anatsui

The proceeds from the sale of this previously listed heritage asset have been designated to be spent on the purchase of the heritage collections of C & J Clark Limited and any associated legal and professional fees including VAT registration and specialist advice required. The remaining funds have been re-designated to the Donnes collections storage fund.

Donnes collections storage

Following on from the sale of El Anatsui the remaining funds held were transferred to a new fund for the collection’s storage and care.

Investments

£4.2m was received from The Roger and Sarah Bancroft Clark Trust for the purpose of building a new museum and our charitable objectives. This amount has been split roughly equally, with £2.4m being put towards capital costs and £2m to generate investment income and returns to assist with the operational costs of the new museum, once opened.

Public interface fund

The fund was created after receiving the restart grant from Mendip District Council, it was decided to designate this money to be spent on the purpose intended by the grant to start to engage with the public again and hosting events and exhibitions.

Heritage asset collections and Tangible fixed assets

Funds held representing the net book value of heritage assets and tangible fixed assets.

New Museum

Funds held for the future capital costs of a new museum to hold the charity’s collections.

35

The Alfred Gillett Trust Notes to the Financial Statements for the year ended 31 March 2023

21. Movements in funds (continued)

Sustainability fund

Funds held to generate investment income and returns to assist with the operational costs of the new museum, once opened.

Transfers between funds

Transfers from restricted funds represent the purchase of capital items. Transfers from designated funds represent the purchase of an investment portfolio to generate income for the charity.

Prior period comparative
Prior period comparative Transfers
At 1 April and Gains At 31 March
2021 Income Expenditure and losses 2022
£ £ £ £ £
Restricted funds
Capital project 111,153 - (16,991) - 94,162
Fossil care 7,238 - (1,215) - 6,023
Storage containers project 24,657 - (485) (16,643) 7,529
Total restricted funds 143,048 - (18,691) (16,643) 107,714
Unrestricted funds
Designated funds:
Proceeds from sale of
El Anatsui 223,264 - - (223,264) -
Donnes collections storage
-		 - - 226,152 226,152
Investments - 4,240,037 (25) (4,240,012) -
Public interface fund - 18,000 - - 18,000
Heritage asset collections - - - 585,136 585,136
Tangible fixed assets - - - 1,769,325 1,769,325
New museum - - - 2,240,012 2,240,012
Sustainability fund - - - 2,000,000 2,000,000
Total designated funds 223,264 4,258,037 (25)
2,357,349		 6,838,625
General funds 5,226,930 411,855 (627,178)
(1,491,582)		 3,520,025
Total unrestricted funds 5,450,194 4,669,892 (627,203) 865,767 10,358,650
Total funds 5,593,242 4,669,892 (645,894)
849,124		 10,466,364

36

The Alfred Gillett Trust Notes to the Financial Statements for the year ended 31 March 2023

22. Operating lease commitments

The charity had operating leases at the year end with total future minimum lease payments as follows:-

Amount falling due:
Within 1 year
Within 1 – 5 years		 2023
£
368
460
828		 2022
£
1,636
409
2,045

23. Related party transactions

Both the Roger and Sarah Bancroft Charitable Trust (registered charity number 211513) and the Joseph and Francis Clark Trust (registered charity number 267441) have the power to appoint and remove one trustee.

One of the trustees, Martin Lovell, is also a trustee of the Roger and Sarah Bancroft Clark Charitable Trust. Grant funding of £2,107,614 (2022: £4,240,037) was received during the year from the Roger and Sarah Bancroft Charitable Trust.

The Trust works very closely with C & J Clark Limited and some of the projects being undertaken are funded in part by the company as per note 20. C & J Clark Limited also has the power under the Trust Deed to appoint one trustee to the board of trustees.

37