2021-03-31-accounts

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Blenheim Palace Heritage Foundation

Report and Financial Statements

Blenheim Palace Heritage Foundation

(A company limited by guarantee)

Year ended 31 March 2021 Charity number 1166164 Company number : 09430048

Blenheim Palace Heritage Foundation

Legal and administration details for the year ended 31 March 2021 ...................................................... 3 Report of the Trustees for the year ended 31 March 2021 ..................................................................... 4 Independent auditor's report to the members of Blenheim Palace Heritage Foundation ..................... 18 Consolidated Statement of Financial Activities ..................................................................................... 23 Consolidated and Parent Charitable Company Balance Sheets .......................................................... 24 Statement of Cash Flows and Consolidated Statement of Cash Flows ............................................... 25 Notes to the Financial Statements ........................................................................................................ 26

Blenheim Palace Heritage Foundation

Legal and administration details for the year ended 31 March 2021

Charity number 1166164 Company number 09430048

Trustees/Directors

Lord Edward Spencer-Churchill Alexander Muir Christopher Groves Dominic Hare

Secretary

Stephen Spare

Key Management Personnel (Blenheim Palace Heritage Foundation)

Senior Management Team: Chief Executive Officer – Dominic Hare Chief Operating Officer and Property Director – Roger File Operations Director – Heather Carter Head of Finance – Stephen Spare Marketing and Communications Director – Stephanie Duncan Estates Director – Roy Cox Pye Homes Managing Director – Graham Flint

Key Management Personnel (Blenheim Visitors Limited)

The Key Management Personnel for Blenheim Visitors Limited is aligned to the Key Management Personnel of the charity.

Key Management Personnel (Love Water Limited)

Blenheim Visitors Limited’s wholly owned subsidiary, Love Water Limited, has the following Key Management Personnel: Director – Nick Swan Director – Dominic Hare

Registered office

The Estate Office Blenheim Palace Woodstock Oxford OX20 1PP

Independent Auditor

BDO LLP Two Snowhill Birmingham B4 6GA

Bankers

Barclays Bank PLC 6th Floor, One Snowhill Snowhill Queensway Birmingham B4 6GN

Solicitor

Withers LLP 20 Old Bailey London EC4M 7AN

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021

The Trustees are pleased to present their annual report of the Trustees together with the consolidated financial statements of the charity and its subsidiaries for the year ended 31 March 2021 which are prepared in accordance with the requirements of the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

The information with respect to the Trustees, Directors, officers and advisors set out on page 3 forms part of this report.

Structure, Governance and Management

Governing Document

Blenheim Palace Heritage Foundation is a company limited by guarantee governed by its Memorandum and Articles of Association dated 9 February 2015. It is registered as a charity with the Charity Commission.

There are currently four members (2020: four), each of whom agrees to contribute £1 in the event of the charity winding up. Members are;

Lord Edward Spencer-Churchill Sir Mark Weinberg Alexander Muir Antony Thompson

Appointment of trustees

As set out in the Articles of Association those persons notified to Companies House as the first directors are the first trustees. Subsequent trustees shall be appointed by the members in such a manner as they shall from time to time determine. The trustees when complete shall consist of a minimum of three persons being individuals who are over the age of 18, all of whom support the Objects and have signed a written declaration of willingness to act as a charity trustee of the Charity.

The Chairman shall be elected from among the trustees for a term not exceeding three years and a retiring chairman may be re-elected by the trustees for a further term of office. There shall be no limit to the number of times a chairman may be re-elected. Every trustee has one vote on each issue.

Trustee induction and training

The trustees of the charity are established long standing trustees of the Blenheim Estate. Trustees of the charity have been selected to ensure the appropriate mix of skills, knowledge and experience exists to make sure the charity is well governed and is run effectively and efficiently.

Trustees are briefed on their legal obligations under charity and company law, the Charity Commission on public benefit, content of the Memorandum and Articles of Association, the committee and decision making process, the business plan and financial performance. Trustees are made aware of the indemnity provision and insurance in place for them as directors. Training for trustees is organised on a needs basis.

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

Our purposes and activities

The primary objectives and aims of the Charity, as stated in the governing document, are to:

● restore and preserve Blenheim for the public benefit

● promote for the public benefit the study and the appreciation of Blenheim as a place of historic and architectural interest and natural beauty

● develop and improve the knowledge, understanding and practice of the arts, principally through the exhibition and performance of artistic works

Strategies and activities for achieving objectives and providing a public benefit

In shaping the objectives for the year and planning our activities, the Trustees had due regard to the Charity Commission’s guidance on public benefit.

Preservation and Restoration of the Palace and park

The vision that shapes our annual activities remains the restoration and preservation of Blenheim. Our magnificent Palace (now over 300 years old) is in constant need of attention, as is the extensive collection within its walls. The Palace and its collection is held outside of the charity, the charity’s primary purpose is to restore and preserve through funding from the visitor business and funding raised through the wider Estate’s land development.

The Palace, park and gardens are now open all year round. All funds that we raise through admission charges, after operating and administration costs, are invested back into vital and ongoing restoration and conservation projects that keep the Palace, its contents and surroundings as glorious today as they have always been.

Trustees and the management team have committed to spend £40m on vital restoration as part of the 10 year goals launched in 2017. This will be funded through profits of the visitor business and commercial operations, donations from related entities, specifically through the profits of our housing developments. In addition, in the year ended 31 March 2021 we received £547k of grant funding from the Government Culture Recovery Fund to support us in the restoration of the Grand Bridge, as well as £1,896k received from the Government Culture Recovery Fund to assist with a number of capital projects and ongoing running costs. The aim of the projects is to secure the future of Blenheim Palace for future generations to explore and discover.

Historic and architectural interest and natural beauty

The Palace, a masterpiece of Baroque architecture, provides an awe-inspiring experience for visitors. Home to the 12th Duke of Marlborough and his family and the birthplace of Sir Winston Churchill, Blenheim Palace is a UNESCO World Heritage Site boasting a long and diverse history.

Palace visitors can explore the gilded State Rooms and priceless collections set against striking stonework and experience the beauty and magnificence of the Grade I listed building.

Blenheim Palace was built as a gift to John Churchill, 1st Duke of Marlborough, from Queen Anne and a grateful nation in thanks for his victory at the Battle of Blenheim on 13th August 1704. Today, the Palace is home to one of the most important and extensive collections in Europe, which includes portraits, furniture, sculpture and tapestries. This collection, and the Palace itself, are held outside of the Charity but within the Blenheim Estate wider group hereafter referred to as “the Estate” (see note 12 for all related entities within the Estate). For the use of the Palace, the Charity pays a small annual rent to a related entity plus a significant maintenance obligation which it fulfils through its restoration programme.

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

Amongst the many treasures to be found in the State Rooms are the famous Marlborough Tapestries (the 'Victories Series') in the Green Writing Room and the First, Second and Third State Rooms. The Long Library has its walls lined by more than 10,000 books, many of them hundreds of years old and of great historic significance.

Visitors are invited to discover the Palace's rich history in a variety of ways; free guided tours of the State Rooms, the Churchill Exhibition to learn about the life of our 'Greatest Briton’, the 'Untold Story' experience to hear tales from the Palace's past, special private apartment tours and the indoor cinema which shows a selection of documentaries and films about Blenheim Palace.

The picture-perfect British stately home of Blenheim Palace sits among more than 2000 acres of extraordinary landscaped Parkland and Formal Gardens.

The inspired work of Lancelot ‘Capability’ Brown has created a lasting legacy in the park at Blenheim Palace. The visionary master landscaper constructed the Great Lake and planted thousands of trees in his ten-year tenure here, engineering a landscape that appears natural but is actually 'contrived to pleasing effect'. The park is home to hidden treasures of all kinds; Vanbrugh's Grand Bridge spans the Great Lake, the historic site of Woodstock Manor is marked by a small plinth, the Column of Victory is topped by a statue of the first Duke of Marlborough, Rosamund's Well is tucked away next to a quiet part of the Great Lake and the Grand Cascade at the western end of the Great Lake is one of England's most picturesque waterfalls.

The park is now home to several Sites of Special Scientific Interest including the Great Lake and the ancient oaks in High Park.

The Formal Gardens which surround the Palace have been created over the centuries by esteemed garden designers such as Henry Wise and Achille Duchêne. They include the majestic Water Terraces, the Duke's Private Italian Garden, the tranquil Secret Garden with all of its hidden treasures, the new Churchill Memorial Garden and the beautifully delicate Rose Garden.

There are a variety of routes for visitors to explore throughout the park and gardens. Buggy tours are available and free walking tours of the formal gardens run in the summer.

Arts, culture and charity

Blenheim Palace continues to develop new experiences and attractions each season; special exhibitions, displays of contemporary art and seasonal specialist talks and tours to name but a few.

The Palace hosts an exhibition in partnership with Blenheim Art Foundation (note 12) which offers visitors the unique opportunity to experience the work of international contemporary artists through a series of exhibitions held within the historic setting of the Palace and its celebrated grounds. Blenheim Art Foundation seeks to show artists most relevant to our time and looks to those who question conventional thinking in contemporary art. The fundamental ambition of the Blenheim Art Foundation is to challenge, engage, and excite the visitors at Blenheim, where the programme is continually evolving. Previous exhibitions include Ai Weiwei, Lawrence Weiner, Michelangelo Pistoletto, Jenny Holzer, Yves Klein, Maurizio Cattelan and last year, Cecily Brown. The Gardens contain permanent and temporary statues and art in isolation to the Blenheim Art Foundation exhibition.

Blenheim also offers a wealth of artistic, sporting and cultural events throughout the year. These include Christmas at Blenheim, Blenheim Palace International Horse Trials, Nocturne Live Concerts, Battle Proms Picnic Concerts, Blenheim Palace Flower Show, Blenheim Palace Food Festival, Salon Privé, British Heart Foundation Half Marathon and Bloodwise Blenheim Triathlon. A number of these events were unable to run in the year ended 31 March 2021 due to the global pandemic but are anticipated to return in the coming year.

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

Organisation

Trustees of the Blenheim Estate meet quarterly and they receive monthly management accounts. The Trustees have delegated day to day decision making with key operational matters including finance, estate management, employment, HR and training to the senior management team.

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Trustees
Chief Executive Officer
Managing Chief Operating Marketing and
Estates Director Director Pye Operations Director Officer and Communications Head of Finance Head of IT Head of HR
Homes Property Director Director
Rural Pye Visitor Property Marketing Finance IT HR
Housebuilders Operations
Innovation &
Park & Gardens Retail Construction
Digital
Health & Safety Household Maintenance
Renewable Energy Security
Water
Key
Senior
Management Team
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Group Structure and related entities

Blenheim Palace Heritage Foundation owns 100% of Blenheim Visitors Limited. Blenheim Visitors Limited owns 100% of Love Water Limited. Blenheim Palace Heritage Foundation Group is part of the wider Blenheim Estate “Estate”. The Estate’s strategy is discussed on page 9. Related party transactions and balances are disclosed in note 12.

Pay policy for senior staff

The Directors, who are the Charity’s Trustees, and the senior management team comprise the key management personnel of the Charity in charge of directing and controlling, running and operating the Charity on a day to day basis.

The Chief Executive Officer, Dominic Hare, is the only Director and Trustee who is employed by the Charity, in his capacity of CEO, not Trustee. All other Trustees give of their time freely and no Trustee received material remuneration in the year. Trustees do receive free water from the subsidiary Blenheim Visitors Limited. Details of this along with Directors’ and Trustees’ expenses and senior management team remuneration are disclosed in note 10.

Lord Edward Spencer-Churchill approves the pay reviews for the statutory directors of the Blenheim entities across the Estate; Dominic Hare, Roger File and Heather Carter, on behalf of the trustees. The CEO, Dominic Hare, approves the pay reviews for the remainder of the senior management team.

Risk management

Trustees and key management have reviewed major risks to which the charity is exposed, in particular those related to the operations and finances of the Charity and the protection of Blenheim Palace against major damage or loss to its structure or fabric. Key management maintain a risk register which is periodically reviewed with the Trustees.

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

Appropriate corporate governance is considered as utmost importance and the senior management team have been appointed to mitigate the exposure to the business, strategic and operational risks. The Charity has limited exposure to financial risk as no investments or financial securities are held other than the internal loan to Blenheim Finance Limited (note 12). The Charity ultimately has the protection of extensive insurance and the support of other Blenheim-related entities if needed. The major risks are considered below:

Pandemic

In common with all visitor attractions, the Charity has experienced a significant decrease in visitor numbers and income since the outbreak of the coronavirus pandemic and the implementation of measures to control the spread of the virus. In the period since the pandemic was declared, the Trustees have approved measures that ensure our continued operation and allow us, as far as is possible, to continue to deliver against our strategic objectives. Please see the ‘Financial Review’ and ‘Plans for Future Periods’ sections of the Strategic Report for details of our response to the current pandemic, much of which will enable us to facilitate social distancing should such requirements continue in future years.

Whilst the pandemic has not yet ended, its most significant impact has been on our operations in the year ended 31 March 2021 and we are hopeful of returning to more normal levels of visitor numbers and income for the year ending 31 March 2022. We are especially hopeful that the recent development of a vaccine will enable us to return to something approaching our normal level of visitors.

UK economic downturn

The Charity is reliant on visitors, yet it carries very little business from one year to another. While we have great experience in attracting visitors to the Palace, there is always a risk that, in a downturn, a luxury spend like Blenheim Palace will be the first to go. Key performance indicators, including visitor numbers, are regularly reviewed to ensure the Charity is performing in line with expectations. A wide range of events are held across the year to attract a variety of visitors throughout the year. The Trustee’s reserves policy is also designed to protect the Charity from the impact of an economic downturn.

Brexit

Whilst we have little direct trade with EU countries, visitor attractions are very exposed to the state of the consumer economy and we await the full impact of the Brexit changes with interest. However, Brexit may have fortuitous side effects for the Charity; the significant devaluation of the UK economy may drive up “stay-cation” visits to UK sites as well as making the UK a significantly cheaper venue for inbound tourists.

While a benefit for future visitor numbers, Brexit will throw up a challenge for recruitment. Blenheim Palace is a joyful congregation of many nationalities; a significant number of them from European nations. Unemployment levels in Oxfordshire are extremely low therefore if there are imposed changes to European working rules this may limit the Charity’s ability to recruit.

Damage to Palace by fire or other disaster

We accept that the Palace was not built in an era with fire regulations. We have however, extensive control systems in place to warn, supress and limit damage. Our programme of fire compartmentalisation was paused in the year ended 31 March 2021 due to the coronavirus pandemic. In the year ended 31 March 2020 £29,953 was spent on fire compartmentalisation to the Palace to improve our control systems.

Related parties and co-operation with other organisations

The Charity and its subsidiaries form one part of the Blenheim Estate. Interaction with other companies across the Blenheim Estate is vital for the long-term strategic goals of the Palace, see note 12.

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

Blenheim ten-year strategy

For Blenheim to meet its charitable objectives the Estate has adopted a strategy expressed by 10 goals. Some of these goals sit primarily within the Charity, others are better expressed in other entities within the Estate but have been included for completeness as they influence the whole Estate.

In the wider context of the whole Blenheim Estate, the Chief Executive Officer (Director and Trustee), Dominic Hare, is leading the 10-year development programme which will revolutionise the Oxfordshire World Heritage Site, with the aim for Blenheim Palace to be the lifeblood of the local economy, to enhance the lives of the people of Oxfordshire, to share this magnificent Palace and to conserve and protect it for future generations.

The development programme consists of the following aims to be met in the next ten years:

Triple the economic contribution to the local area
Train over 100 new apprentices and set equivalent training goals for current staff development
Build high quality, affordable homes for 300 families
Achieve annual paying visitor numbers in excess of 750,000
Become a net generator of green energy
Become one of the UK's top 100 employers
Complete £40 million of vital restoration work
Reacquire key works from the Palace's lost collections and establish new ones
Secure funds of £45 million to conserve our World Heritage Site
Double charitable contributions to the community

The 10-year plan is a joint initiative devised in consultation with the management team, trustees and the Duke which commenced in 2017. It involves every area of the Estate, including the visitor attraction, retail and water business as reported in the charity financial statements.

During the year ended 31 March 2021, our work towards the 10 goals has been hindered by the global pandemic but we are able to report progress in several areas:

Triple the economic contribution to the local area

Blenheim’s economic impact was captured by Oxford Brookes Business School at March 2020 for the fourth year running; the economic impact for the year ended March 2021 is currently being assessed and will be reported on in the next financial year. Blenheim’s total gross value added (GVA, being the total contribution to gross domestic product (GDP)) is £127m (2019: £100m). The surge in growth is due to construction and property development spend, growth in visitor numbers and the Christmas at Blenheim Event. This is split between direct operations by Blenheim of £101m (2019: £85m) and indirect contribution through catering and event partners of £26m (2019: £16m).

Within the £101m, visitors to Blenheim have contributed £53m GVA (2019: £47m), £27m GVA (2019: £13m) is made by expenditure of goods and services by Blenheim and £20m (2019: £14m) is the direct contribution of Blenheim.

The full report can be found at blenheim.org/aboutus/our-goals/

Train over 100 new apprentices and set equivalent training goals for current staff development

In the year to 31 March 2021, 16 apprentices were employed across the Estate in a diverse range of positions (2020: 18).

Build high quality, affordable homes for 300 families

The Estate have a unique delivery partnership with West Oxfordshire District Council, delivering housing at a 40% discount to market rental, which is market leading. All 300 homes now have planning secured.

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

4. Achieve annual paying visitor numbers in excess of 750,000

Our paying visitor number at the end of March 2021 were around 235,000 (2020: over 690,000). Numbers significantly reduced compared to 2020 due to closures due to the coronavirus pandemic.

5. Become a net generator of green energy

We have seen a significantly positive impact on our energy conservation within our new renewable energy provider. We have seen recycling achievements across the estate, including participating in the “too good to go” initiative.

We have two biomass boilers within the Blenheim grounds and generate hydro electricity from our dam. We also generate solar energy. In turn we have renewably generated about 20% of our direct energy consumption through these investments.

For further meet this goal, we have recently partnered with a national housebuilder, Morgan Sindall, to plant 270,000 trees on Blenheim Estate land to offset their carbon emissions. In addition, we also now have planning permission for a 7MW solar park, with work due to commence in Autumn 2021. This work will be funded by Vanbrugh Unit Trust.

We continue to work with energy consultants to help us exceed our current onsite renewable energy generation to bring us up above 100%.

6. Become one of the UK's top 100 employers

We achieved ‘One to Watch’ status and were 6.2 points away from 1 star (the highest category) in our first Top 100 survey and are working towards achieving 1 star rating by 2022.

We want every one of our employees to be proud of where they work and want to remain a part of our team. If we don’t become an employer who can persuade great people to join us and stay with us then we will not be able to successfully achieve the other goals.

7. Complete £40 million of vital restoration work

During the year to 31 March 2021, we have spent £3.0m (2020: £3.6m) on preservation and restoration work (note 6). We aim to spend an average of £4m each year on conservation and restoration. We were about to commence the largest restoration project yet, with the dredge of Queen Pool and beginning the restoration of the Grand Bridge, during spring and summer of 2020. However, this project was put on hold due to the coronavirus pandemic. The Grand Bridge has been restored through spring and summer 2021, aided by a grant of £547,200 from the Government’s Culture Recovery Fund. The dredge of the Queen Pool is anticipated to be completed in Summer 2022.

8. Reacquire key works from the Palace's lost collections and establish new ones

Public awareness of this goal continues to be strong and we receive generous offers to borrow or purchase items. Some of these are for Winston Churchill’s paintings, a number of which have been on display. During the year we acquired a Henry Lamb watercolour of Churchill & Allies and we anticipate further progress on this goal in the year ending 31 March 2022.

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

9. Secure funds of £45 million to conserve our World Heritage Site

We recognise that sustaining Blenheim in perpetuity is just as important for the long-term economic well-being of the area as it is for our goal; sharing and protecting Blenheim.

Acquiring local property developer Pye Homes has been key to securing these vital funds through the development of homes and communities. Through property development, £4.0 million has already been granted towards this goal through our successful property developments. This will, however, all be required to fund the vital Great Lake dredge and Grand Bridge restoration, which are planned restoration projects for the year ended 31 March 2022.

Blenheim will benefit from new home developments at Park View in Woodstock where a further £13.2 million is due to be received over the next few years and £4.4m was received in May 2021. In addition, Blenheim will receive a further share of receipts from the Hanborough Gate development in Long Hanborough which are initially received from Blenheim Supporting Limited. The current year’s accounts include a donation of £4,320k (note 3) from Blenheim Supporting Limited, which was funded by the year’s housing profits, it is expected that similar donations will be made annually whilst Hanborough Gate is built out.

Currently the funds allocated towards preserving the World Heritage Site are within the general funds. The intention exists to create a designated fund to formally set aside these funds for their intended purpose.

The ability to achieve £45m is dependent on the outcome of strategic planning applications. Should planning permission not be granted for sufficient sites, reaching £45m will prove challenging. The senior management team are aware of this challenge and focussing resources accordingly.

10. Double charitable contributions to the community

Our charitable contributions during the year ended 31 March 2020, as assessed in the economic impact report (see goal 1), through direct and indirect charitable donations raised or made by Blenheim were £1.6m (2019: £3.5m). This includes holding events in the year ended 31 March 2020 such as the Bloodwise Blenheim Triathlon, Pink Ribbon Walk, British Heart Foundation, Blenheim 7k and Sobel House which give the opportunity for fundraising. Blenheim has directly contributed to the local area through donations of money and time.

Achievements and performance

The Trustees and management consider that the Charity’s principal objectives of preserving and maintaining the Palace, park and gardens and opening this to the public are being achieved.

The key performance indicators that management use to monitor the achievement against these objectives include completion of essential restoration and preservation work to the Palace, park and gardens, monitoring visitor numbers and trends and reviewing financial performance against budget.

Restoration and preservation work

During the year, just over £3.0m (2020: just under £3.6m) was spent on restoration, repairs and maintenance. Projects most notably included works to the Cascade apron at the end of the main lake, preparation for the Lake Dredge, Chapel environmental control, roof repairs and Crypt renovation, repairs to the Walled Garden walls, the replacement of areas of the Palace Heating System and emergency support works to the Green Writing Room ceiling.

The pandemic has put a hold on many projects but with a combination of grant funding and an anticipated recovery of the visitor business, in future years, annual conservation and restoration spend is set to increase. Spring 2022 was to see the largest restoration project yet, dredging of the Queen Pool and hopefully the next stage of the renovation of Grand Bridge.

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

In addition to the £40m spend of restoration (goal 7) we will create a preservation portfolio of £45m dedicated to the conservation and enhancement of our World Heritage Site over the next ten years (goal 9). The preservation portfolio seeks to conserve and protect the Palace and park for future generations.

Visitor numbers

Paying visitor numbers for the financial year ended March 2021 have been compared with the previous five years. These numbers include all paying visitors to the Palace, park and gardens.

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800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
-
2016 2017 2018 2019 2020 2021
Year ended 31 March
Number of paying visitors
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The decrease in visitor numbers in the year ended 31 March 2021 is due to closures of the Palace, park and gardens due to the coronavirus pandemic. Our goal is to reach paying visitors of over 750,000 (goal 4).

Recruitment, Advertising and Selection

The recruitment process is conducted in such a way as to result in the selection of the most suitable person for the job in terms of experience, abilities and qualifications. Blenheim Visitors Limited, the wholly owned subsidiary of the Charity, acts as a payroll bureau for the whole of Blenheim Estates (referred here after as “the Estate”). The Estate is committed to applying its equal opportunities policy statement at all stages of recruitment and selection.

Advertisements encourage applications from all suitably qualified and experienced people. When advertising job vacancies, in order to attract applications from all sections of the community, the Estate will, as far as reasonably practicable:

Ensure advertisements are not confined to those publications which would exclude or disproportionately reduce the number of applicants of a particular gender, sexual orientation, religion or racial group;
Avoid prescribing any unnecessary requirements which would exclude a higher proportion of a particular gender, sexual orientation, religion or racial group or which would exclude disabled job applicants;
Avoid prescribing any requirements as to marital status;
Where vacancies may be filled by promotion or transfer, they will be published to all eligible employees in such a way that they do not restrict applications from employees of any particular gender, sexual orientation, religion or racial group or from employees with a disability;
Ensure that the setting of age limits, as a criterion of any specific job, is justifiable.

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

The selection process is carried out consistently for all jobs at all levels. All applications are processed in the same way. The staff responsible for short-listing, interviewing and selecting candidates are informed of the selection criteria and of the need for their consistent application. Wherever possible, all applicants are interviewed by at least two interviewers and all questions asked of the applicants relate to the requirements of the job. The selection of new staff is based on the job requirements and the individual's suitability and ability to do, or to train for, the job in question.

With disabled job applicants, the Estate has regard to its duty to make reasonable adjustments to work arrangements or to work premises in order to ensure that the disabled person is not placed at a substantial disadvantage in comparison with persons who are not disabled.

Training and Promotion

The Estate informs all line managers about the Estate's policy on equal opportunities and help them identify discriminatory acts or practices or acts of harassment or bullying. Line managers are responsible for ensuring they actively promote equal opportunity within the departments for which they are responsible. We are committed to training and have expanded our apprenticeship scheme.

The Estate supports all employees to help them understand their rights and responsibilities in relation to dignity at work and what they can do to create a work environment free of bullying and harassment.

Where a promotional system is in operation, it is not discriminatory and is checked from time to time to assess how it is working in practice. When a group of workers predominantly of one race, religion, sex or sexual orientation or a worker with a disability appears to be excluded from access to promotion and training and to other benefits, the promotional system will be reviewed to ensure there is no unlawful discrimination.

Fundraising statement

Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. Although we do not undertake widespread fundraising from the general public, the legislation defines fund raising as “soliciting or otherwise procuring money or other property for charitable purposes.” Such amounts receivable are presented in our accounts as “voluntary income” and includes legacies and grants.

In relation to the above we confirm that all solicitations are managed internally, without involvement of commercial participators or professional fund-raisers, or third parties. The day to day management of all income generation is delegated to the executive team, who are accountable to the Trustees. The Charity is not bound by any undertaking to be bound by any regulatory scheme.

We have received no complaints in relation to fundraising activities. Our terms of employment require staff to behave reasonably at all times; as we do not approach individuals for funds we do not have an employee policy for fundraising activities nor do we consider it necessary to design specific procedures to monitor such activities.

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

Financial review

As part of the strategic goals, Blenheim Palace Heritage Foundation was founded in late 2015 under the auspices of the 12th Duke of Marlborough, to safeguard the future of our World Heritage Site for centuries to come.

By taking on the visitor business, the Charity can clearly demonstrate all proceeds raised from admissions and visitor activity go towards operating the visitor attraction and enhancing the World Heritage Site through restoration, conservation and maintenance.

The Charity allows us to visibly communicate our ring-fenced restoration funding and our preservation portfolio that we intend to build over the next 10 years. Our intention is to formally designate funds for restoration in the coming year. As a privately-owned Estate we receive very little external funding. The charity is able to claim Gift Aid on eligible donated annual passes, which makes visitor admissions go even further without impacting visitor admission cost, which contributes to improving visitor experience.

Blenheim Visitors Limited includes retail and water businesses and both enhance the visitor experience and Blenheim Palace brand. Its trade was impacted by the pandemic from January 2020, initially through a reduction in visitors from overseas and eventually through full closure of the Palace, park and gardens during the national lock downs. The financial results of Blenheim Visitors Limited are shown in note 5.

Love Water Limited has been impacted by the coronavirus pandemic during the year ended 31 March 2021 and income has decreased as a result. It is expected to recover from year ending 31 March 2022. The financial results of Love Water Limited are shown in note 5.

Income

The group has three main sources of income:

Income generated from charitable activities; predominately admission income. This is 19% (£3.4m) of all income including donations (2020: 52% and £8.8m). Visitors have the option to purchase Palace, park and gardens entry (PPG) or park and gardens (PG). If visitors choose to donate their PPG entry fee they will receive a free annual pass. If visitors are eligible, we ask for them to kindly agree to Gift Aid their donation. Concessions to students, elderly, children and groups are available to ensure pricing is accessible to all.

Other income generated includes the retail and water business and other activities within the Palace and park including events. This amounted to 14% (£2.4m) of total income (2020: 30% and £5.1m).

Restoration and long-term funding is received from land development within the Blenheim Estate, Blenheim Supporting Limited, The Blenheim Foundation in addition to Government grants. Blenheim Supporting Limited is a related entity which donates its profits to the Charity. The Blenheim Foundation is a related charity which fundraises for restoration within the Palace. Within restoration funding is grant funding received for the park and funding to contribute to the costs of being a World Heritage Site. Total donations and grants received accounts for 67% (£11.8m) (2020: 18% and £3.0m) of total income.

Expenditure

Income is applied in pursuance of the objectives. The largest proportion of expenditure is the cost of our people who make our objectives achievable, from operations ensuring a positive visitor experience to supporting functions (note 6).

Another substantial cost is the restoration, preservation, maintenance and repair work which totalled £3.0m for the year (2020: £3.6m).

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

Investment powers and policy

Under its Memorandum of Association the charity has power to invest its funds in or upon such investments, securities or property as the charity thinks fit. At the year end, the Charity invested its cash held for restoration projects in a related entity, Blenheim Finance Limited. In return, the Charity receives interest income of c.5% (note 12). The Charity will see additional investments in future years as part of the £45m preservation portfolio.

Reserves policy and going concern

Whilst the events of the past year have shown how uncertain the world in which we operate can be, we are confident of our cash flows and that the charity is a going concern. We have conducted a thorough reforecast of all our businesses in order to ensure that our cash flow is secure. Across the wider Estate, we have made full use of the Government furlough scheme during the pandemic, deferring major projects and freezing all but essential capital expenditure.

During the year, the receipt of the Culture Recovery Fund grant has enabled various projects to go ahead to ensure we continue to maintain the site and operate the visitor attraction in a COVID-safe way.

Sufficient reserves are required to cover unplanned emergency repairs and other emergency events, alongside ongoing cash needs for the visitor business.

Given the regularity of income streams and the availability of funding from related entities within the Blenheim Estate we do not think it is necessary to hold more than £1m of free reserves for visitor business activities and other emergencies. The level and expectation of restoration and repair requires the Charity to build up funds to cover these costs which are bulky in nature. Free reserves at 31 March 2021 were:

Unrestricted income funds: general fund Less: Intangible assets Tangible assets Chattels Investments Free reserves	Group Group 2021 2020 £000 £000 11,294 7,924 (284) (494) (4,350) (2,306) (901) (920) (78) (78)
	5,681 4,126

Whilst free reserves are in excess of our policy, the intention exists to formally ring fence funds towards restoration. Given the nature of the planned restoration and maintenance programme the trustees consider that the level of reserves is justifiable as there are future plans in place.

Significant projects planned include the dredge of Queen Pool, repairs to the Green Writing Room Ceiling, continuation of the repairs to the Chapel Roof, and continuation of the renovation of Grand Bridge.

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

Plans for future periods

Despite the impact of the pandemic, the Trustees and management team are still committed to an ambitious 10-year plan to protect and share Blenheim’s prosperity for generations to come. This strategy is adopted across the whole Blenheim Estate, of which the Charity plays a vital part.

Of the ten strategic goals, the Charity will primarily take on the £40m restoration programme, £45m preservation portfolio, training 100 apprentices and current staff, being rated as top 100 employer, receiving 750k paying visitors, and reacquiring key works from the old collections and establishing new ones. It will also significantly contribute towards the tripling local economic contribution and doubling charitable contribution goals.

We continue to expand our visitor attractions and have recently opened two new exhibitions: the Churchill exhibition and the stables exhibition, both of which are operating in a COVID-secure manner. Throughout the year ending 31 March 2022 we aim to return to a full range of events, including additional events such as a proposed Halloween light trail. We have also already started selling tickets for the Christmas Light Trail in late 2021 and this is proving popular with visitors. Another exciting new venture is a proposed Adventure playground in the Walled Garden, which would expand our range of activities to cater for families. Work on the playground has not yet begun and is subject to planning applications and Trustee approval.

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

Trustees’ responsibilities

The Trustees are responsible for preparing the Strategic Report, the Report of the Trustees and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and Charity and of the incoming resources and application of resources, including the income and expenditure, of the Group for that period.

In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently,
make judgements and accounting estimates that are reasonable and prudent,
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements,
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the 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 Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Trustees confirm that:

so far as each Trustee is aware, there is no relevant audit information of which the Charitable Company’s auditor is unaware; and
the Trustees have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the Charitable Company’s auditor is aware of that information.

The Report of the Trustees, incorporating the Strategic Report, was approved by the Trustees on 4 November …………………….. 2021 and signed on their behalf by:

…………………….. (Trustee and Director) …………………….. 2021 4 November

Blenheim Palace Heritage Foundation

Independent auditor's report to the members of Blenheim Palace Heritage Foundation

Qualified opinion on the financial statements

In our opinion, except for the possible effects of matters described in the basis of qualified opinion paragraph, the financial statements:

give a true and fair view of the state of the Group’s and of the Parent Charitable Company’s affairs as at 31 March 2021 and of the Group’s incoming resources and application of resources for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements of Blenheim Palace Heritage Foundation (“the Parent Charitable Company”) and its subsidiaries (“the Group”) for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Charitable Company Balance Sheets, the Statement of Cash Flows and Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom 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).

Basis for qualified opinion

Due to the restrictions put in place by the UK Government in response to the Covid 19 pandemic, we were unable to observe the counting of physical stock at 31 March 2020, the prior year end. We were unable to satisfy ourselves by alternative means concerning the stock quantities held as at 31 March 2020, which were included in the consolidated balance sheet at £574,000. Consequently, we were unable to determine whether any adjustments to this amount at 31 March 2020 were necessary or whether there was any consequential effect on expenditure for the year ended 31 March 2021. In addition, were any adjustment to the stock balance to be required, the report of the trustees would also need to be amended.

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Independence

We remain independent of the Group and Parent Charitable Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions related 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 Group and the Parent Charitable Company'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.

Blenheim Palace Heritage Foundation

Independent auditor's report to the members of Blenheim Palace Heritage Foundation (continued)

Conclusions related to going concern (continued)

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 Report of the Trustees, other than the financial statements and our auditor’s report thereon. The other information comprises: The Report of the Trustees.

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.

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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the stock quantities of £574,000 held at 31 March 2020. We have concluded that where the other information refers to this stock balance or related balances such as expenditure or net movement in funds for the year, it may be materially misstated for the same reason.

Other Companies Act 2006 reporting

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

the information given in the Report of the Trustees, which includes the Directors’ Report and the Strategic Report prepared for the purposes of Company Law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors’ Report, which are included in the Report of the Trustees, have been prepared in accordance with applicable legal requirements.

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Trustees.

Arising solely from the limitation on the scope of our work relating to stock, referred to above  We have not obtained all the information and explanations that we considered necessary for the purpose of our audit.

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

adequate accounting records have not been kept by the Parent Charitable Company, or returns adequate for our audit have not been received from branches not visited by us; or

Blenheim Palace Heritage Foundation

Independent auditor's report to the members of Blenheim Palace Heritage Foundation (continued)

Other Companies Act 2006 reporting (continued)

the Parent Charitable Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Directors’ remuneration specified by law are not made.

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

Extent to which the audit was capable of detecting irregularities, including fraud

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

We made enquiries of management, and the Board, including:
how they have identified, evaluated and complied with laws and regulations and whether they were aware of any instances of non-compliance;
their process for detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
which internal controls have been established to mitigate risks related to fraud or noncompliance with laws and regulations.
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group and the Parent Charitable Company. These include, but are not limited to, compliance with the Companies Act 2006, Charities Act 2011, UK Generally Accepted Accounting Practice, Charities SORP and tax legislation.

Blenheim Palace Heritage Foundation

Independent auditor's report to the members of Blenheim Palace Heritage Foundation (continued)

Auditor’s responsibilities for the audit of the financial statements (continued)

In addition, the Charity is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: employment law, health and safety, food hygiene, and data protection. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of Those Charged with Governance and other management and inspection of regulatory and legal correspondence if any.
We also communicated relevant identified laws and regulations, potential fraud risks and that fact that there were no known matters of significant non-compliance with laws and regulations, to all engagement team members including internal specialists audit teams, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
We considered management’s incentives and opportunities for fraudulent manipulation of the financial statements (including revenue recognition and the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial results and management bias in accounting estimates.
The Senior Statutory Auditor has assessed and concluded that the engagement team collectively had the appropriate competence and capabilities to identify or recognise noncompliance with laws and regulation.

Audit response to risks identified

We reviewed the financial statement disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above;
We made enquiries of the Board and of management;
We read minutes of meetings of those charged with governance, and reviewed correspondence with HMRC;
We reviewed if any Serious Incident Reports submitted to the Charity Commission and performed an assessment of any Whistleblowing matters and
In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; considered completeness of related party transactions; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business; and
We challenged assumptions made by management in their significant accounting estimates in particular in relation to the assumptions related to the allocation of costs including apportionment of support costs, defined benefit pension scheme, recoverability of intercompany balances, stock provision, depreciation rates for assets, valuation of fixed assets and impairment considerations.
We compared the result of estimates made in prior years and ensured that the basis of estimation was reasonable and did not lead to material differences to actuals.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Blenheim Palace Heritage Foundation

Independent auditor's report to the members of Blenheim Palace Heritage Foundation (continued)

Auditor’s responsibilities for the audit of the financial statements (continued)

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://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 Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company’s members 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 Charitable Company and the Charitable Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Kyla Bellingall (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor Birmingham, UK Date 09 November 2021

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

Blenheim Palace Heritage Foundation

Consolidated Statement of Financial Activities

for year ended 31 March 2021

(including consolidated income and expenditure account)

Note Income: Donations and grants 3 Income from charitable activities: Operation of the Palace and park 4 Income from other trading activities: Commercial trading operations 5 Total income Expenditure Costs of raising funds: Commercial trading operations Expenditure on charitable activities: Operation of the Palace and park 6 Preservation and maintenance 6 Total expenditure Net income/(expenditure) before transfers Transfer between funds 22 Net income/(expenditure) and net movement in funds for the year Reconciliation of funds Total funds brought forward 22 Total funds carried forward	General Unrestricted Restricted Total General Unrestricted Restricted Total Funds Funds Funds Funds Funds Funds 2021 2021 2021 2020 2020 2020 £000 £000 £000 £000 £000 £000 8,543 3,234 11,777 2,622 404 3,026 3,361 - 3,361 8,787 - 8,787 2,442 - 2,442 5,126 - 5,126
	14,346 3,234 17,580 16,535 404 16,939
	2,677 - 2,677 5,759 - 5,759 8,488 - 8,488 8,827 - 8,827 1,665 1,380 3,055 2,482 1,107 3,589
	12,830 1,380 14,210 17,068 1,107 18,175
	1,516 1,854 3,370 (533) (703) (1,236)
	1,854 (1,854) - - - - 3,370 - 3,370 (533) (703) (1,236)
	7,924 - 7,924 8,457 703 9,160
	11,294 - 11,294 7,924 - 7,924

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

Blenheim Palace Heritage Foundation

Consolidated and Parent Charitable Company Balance Sheets

for year ended 31 March 2021

Company number 09430048

Note Fixed assets Intangible assets 14 Tangible assets 15 Chattels 16 Investments 17 Total Fixed Assets Current assets Stock 18 Debtors 19 Cash at bank and in hand Total Current Assets Liabilities Creditors falling due within one year 20 Net Current assets Total assets less current liabilities Net assets The funds of the charity: Unrestricted income funds: general fund 22 Restricted income fund 22 Total charity funds	As restated Group Group Charity Charity 2021 2020 2021 2020 £000 £000 £000 £000 284 494 102 238 4,350 2,306 3,512 1,355 901 920 901 920 78 78 78 78
	5,613 3,798 4,593 2,591
	541 574 - - 11,480 7,656 11,054 7,281 1,135 2,089 911 1,928
	13,156 10,319 11,965 9,209
	7,475 6,193 2,953 2,356
	5,681 4,126 9,012 6,853
	11,294 7,924 13,605 9,444

	11,294 7,924 13,605 9,444
	11,294 7,924 13,605 9,444 - - - -
	11,294 7,924 13,605 9,444

Parent charity income for the year ended 31 March 2021 was £15,854k (2020: £13,040k). Parent charity net income for the year ended 31 March 2021 was £4,161k (2020: £86k). See note 27 for the prior period adjustment in the Charity.

The trustees have prepared group accounts in accordance with section 399 of the Companies Act 2006 and section 138 of the Charities Act 2011.

The notes on pages 26 to 54 form part of these accounts.

4 November The financial statements were approved by the Board on ……………….. 2021 and were signed on its behalf by:

Signed …………………….. Name ……………………… Dominic Hare

Blenheim Palace Heritage Foundation

Statement of Cash Flows and Consolidated Statement of Cash Flows for year ended 31 March 2021

Note Cash provided by/(used in) operating activities 24 Cash flows from investing activities Interest income 5 Purchase of chattels 16 Purchase of tangible fixed assets 15 Sale of chattels 16 Loan to Blenheim Finance Limited 12 Cash (used in)/provided by investing activities Cash flows from financing activities Drawdown of borrowing 12 Repayment of borrowing 12 Cash provided by/(used in) financing activities (Decrease)/increase in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Total cash and cash equivalents at the end of the year	Group Group Charity Charity 2021 2020 2021 2020 £000 £000 £000 £000
	3,939 2,230 5,612 (366)
	58 65 58 65 (4) (38) (4) (38) (2,600) (913) (2,575) (346) 23 185 23 185 (4,131) 2,223 (4,131) 2,223
	(6,654) 1,522 (6,629) 2,089
	3,722 905 - - (1,961) (3,000) - -
	1,761 (2,095) - -
	(954) 1,657 (1,017) 1,723
	2,089 432 1,928 205
	1,135 2,089 911 1,928

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021

1 Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

1.1) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

1.2) Preparation of the accounts on a going concern basis

The financial statements have been prepared on the going concern basis.

Over the past year, the Government’s decisions on social distancing have impacted the Group’s income generating activities and, in response, the Trustees and Senior Management Team have implemented operational changes to mitigate the financial impact of COVID-19. Looking forward, the easing of restrictions since 31 March 2021 has enabled visitor numbers to grow and events to take place. As restrictions continue to ease, the visitor numbers are anticipated to continue to recover which will positively impact the Group’s financial position.

The Trustees and Senior Management Team have assessed the Group’s forecast and stress tested to assess the Group’s ability to continue as a going concern. If visitor numbers continue to recover, the Group’s financial position will improve and so the Trustees and Senior Management Team are confident that Group will have sufficient working capital and cashflows to meet its liabilities as they fall due for at least one year from the date of approval of these financial statements. The Trustees are satisfied that the Group has strong cash reserves and therefore there is no material uncertainty which may cast doubt of the Group’s ability to continue as a going concern.

1.3) Group financial statements

The financial statements consolidate the results of the charity and its wholly owned subsidiary Blenheim Visitors Limited (company number 05957291), and its wholly owned subsidiary, Love Water Limited (company number 05131762), on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

The registered address of the Charity and its subsidiaries is The Estate Office, Blenheim Palace, Woodstock, Oxfordshire, OX20 1PP.

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

1 Accounting Policies (continued)

1.4) Income

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

Admissions income

Visitors are able to purchase entrance tickets in advance for entrance on a selected date. Income is recognised in full on the date of admission. Entrance tickets, including non-refundable annual pass upgrades, are recognised as income in full on the day of purchase.

Event income

During the course of the year Blenheim Palace runs a number of events for visitors. Income is recognised in full on the day, or days, of the event. Income received in advance of an event or advanced ticket sales is deferred until the criteria for income recognition are met (see note 21).

Retail and water income

Retail income is recognised at point of sale. Water income is recognised on dispatch.

Restoration funding

The charity receives funding from a supporting charity and Maintenance Fund. The funding is against agreed restoration expenditure and is treated as receivable, and recognised as income, in the month that it is received.

Grant Income

Grant income, 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. This includes the Government Coronavirus Job Retention Scheme (‘Furlough Scheme’).

Legacy Income

Legacy income is recognised when there has been grant of probate, the executors have established that there are sufficient assets in the estate, after settling any liabilities, to pay the legacy and any conditions attached to the legacy are either within the control of the charity or have been met.

1.5) Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

1 Accounting Policies (continued)

1.6) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds comprise the costs of commercial trading including the retail and water business and their associated support costs.

● Expenditure on charitable activities includes the costs of day to day maintenance and running of the Palace, exhibitions and other educational activities undertaken to further the purposes of the charity and their associated support costs.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

1.7) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity’s programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The basis on which support costs have been allocated are set out in note 8.

1.8) Operating leases

The charity classifies the lease of printing as operating leases; the title to the equipment remains with the lessor and the equipment is replaced every 5 years whilst the economic life of such equipment is normally 10 years.

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

1.9) Intangible fixed assets

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Financial Activities over its useful economic life of between five and ten years.

Goodwill has been recognised within Blenheim Visitors Limited, the charity’s wholly owned subsidiary, on acquisition of Blenheim Visitors Partnership. Goodwill relating to the visitor part of the business was transferred to the charity on 1 January 2017.

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

1 Accounting Policies (continued)

1.10) Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Statement of Financial Activities during the period in which they are incurred.

Individual fixed assets costing £1,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis as follows:

Asset Category	Annual rate
Plant and machinery	10% - 20%
Motor vehicles	25%
Fixtures and fittings	10% - 20%
Buildings	10%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Financial Activities.

1.11) Investments

Investments are measured at cost less accumulated impairment.

1.12) Chattels

The Charity owns chattels with artistic or historical significance related to Blenheim Palace. These are tangible fixed assets that are held and maintained principally for their contribution to knowledge and culture and are accounted for as heritage assets.

Purchased chattels are measured at cost. Donated chattels are initially valued at the date of donation and this is treated as its deemed cost thereafter.

Subsequent to initial recognition, chattels are measured at cost less accumulated impairment.

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

1 Accounting Policies (continued)

1.13) Stock

Stock is stated at the lower of cost or net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

At each reporting date, stock is assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Financial Activities.

1.14) Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

1.15) Cash at bank and in hand

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

1.16) Financial instruments

The Charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Financial Activities.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Charitable Company Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

1 Accounting Policies (continued)

1.17) Creditors and provisions

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.

1.18) Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays contributions into a separate entity. Once the contributions have been paid the Group has no further payments obligations.

The contributions are recognised as an expense in the Statement of Financial Activities when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Defined benefit pension plan

The Group supports an obligation for the defined benefit plan which was closed to future accrual in 2000. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The defined benefit obligation is calculated using the projected unit credit method. Annually the Group engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').

The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Group's policy for similarly held assets. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.

The cost of the defined benefit plan, recognised in the Statement of Financial Activities as employee costs, except where included in the cost of an asset, comprises:

a) the increase in net pension benefit liability arising from employee service during the period; and b) the cost of plan introductions, benefit changes, curtailments and settlements.

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

1 Accounting Policies (continued)

1.18) Pensions (continued)

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in the Statement of Financial Activities as a 'finance expense’.

1.19) Current and deferred taxation

The Group contains two limited companies which are subject to corporation tax. The subsidiary companies make qualifying donations of all taxable profit, where applicable, to the charity. No corporation tax liability on the subsidiaries arises in the accounts.

1.20) Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Estimates are based on historical experience and other assumptions that are considered reasonable in the circumstances. The actual amount or values may vary in certain instances from the assumptions and estimates made. Changes will be recorded, with corresponding effect in the Statement of Financial Activities, when, and if, better information is obtained. Information about assumptions and estimation uncertainties that have a significant risk of resulting in material adjustment within the next financial year are included below. Critical judgements that management has made in the process of applying accounting policies disclosed herein and that have a significant effect on the amounts recognised in the financial statements relates to the following:

Tangible fixed assets

The directors have reviewed the asset lives and associated residual values of all fixed asset classes and have concluded that asset lives and residual values are appropriate.

Stocks

Management estimates the net realisable values of stock, taking into account the most reliable evidence at each reporting date.

Recoverability of trade debtors

Trade and other receivables are recognised to the extent that they are judged recoverable. Management reviews are performed to estimate the level of reserves required for irrecoverable debt. Provisions are made specifically against invoices where recoverability is uncertain.

Provisions

In recognising provisions, the Group evaluates the extent to which it is probable that it has incurred a legal or constructive obligation in respect of past events and the probability that there will be an outflow of benefits as a result. The judgements used to recognise provisions are based on currently known factors which may vary over time, resulting in changes in the measurement of recorded amounts as compared to initial estimates.

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

1 Accounting Policies (continued)

1.20) Judgements in applying accounting policies and key sources of estimation uncertainty (continued)

Defined benefit pension

The cost of defined benefit pensions plans and other post-employment medical benefits are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long term nature of these plans, such estimates are subject to significant uncertainty.

In determining the appropriate discount rate, management considers the interest rates of corporate bonds in the respective currency with at least AA rating, with extrapolated maturities corresponding to the expected duration of the defined benefit obligation. The underlying bonds are further reviewed for quality, and those having excessive credit spreads are removed from the population of bonds on which the discount rate is based, on the basis that they do not represent high quality bonds. The mortality rate is based on publicly available mortality tables for the specific country. Future salary increases and pension increases are based on expected future inflation rates.

Intangible assets

Management applies judgement when assessing the value of goodwill acquired on a business combination, held in the Group and Charity Balance Sheets as intangibles, at both the year end date and the date of the business combination. The goodwill represents the excess consideration over the fair value of the net assets acquired. Judgement was applied when determining the fair value of the net assets and takes into account the most reliable evidence available at the valuation date. Judgement is also applied in determining the useful economic life, based on the period over which value is expected to be derived from the long-term contracts.

2 Legal status of the charity

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

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

3 Income from donations and grants

Donations Grants Coronavirus job retention scheme Other donations	2021 2021 2021 2020 2020 2020 Unrestricted funds Restricted funds Total funds Unrestricted funds Restricted funds Total funds £000 £000 £000 £000 £000 £000 25 2,551 2,576 - 110 110 1,786 - 1,786 - - - 6,732 683 7,415 2,622 294 2,916
	8,543 3,234 11,777 2,622 404 3,026

In the Group, the income from donations and grants was £11,777k (2020: £3,026k) of which £8,543k was unrestricted (2020: £2,622k) and £3,234k was restricted (2020: £404k).

In the Charity, the income from donations and grants was £11,382k (2020: £3,326k) of which £8,148k was unrestricted (2020: £2,922k) and £3,234k was restricted (2020: £404k).

Within other donations, £4,320k (2020: £2,620k) was received from Blenheim Supporting Limited, a related entity which donates its profits to the charity each year (note 12).

The restricted fund includes grants and donations from:

Higher Level Stewardship of £110k for conservation of the land and Palace grounds
Blenheim Foundation Restoration of £600k for restoration and conservation of the Palace
Maintenance Fund distribution of £83k for restoration and conservation of the Palace
Park plant of £2k for tree planting within the Management Plan
Culture recovery fund of £2,439k for various restoration projects of the Palace

4 Income from charitable activities

Operation of the Palace and Park Income from admission and tour charges Gift aid recovered on donated admissions for annual passes Total income from charitable activities	Unrestricted Unrestricted Funds Funds 2021 2020 £000 £000 2,981 8,095 380 692
	3,361 8,787

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

5 Income from other trading activities

Income from the sale of Christmas trees Income from Palace functions and park events Income from filming Other income Investment income Income from subsidiary	2021 2020 £000 £000 19 22 801 736 213 2 21 167 58 - 1,330 4,199
	2,442 5,126

Within investment income is £58k (2020: within other income is £65k) of interest income earned from the charity's loan made to Blenheim Finance Limited (note 12) at the end of the year to utilise surplus cash in a secure and liquid investment.

Commercial trading operations

The wholly owned trading subsidiary Blenheim Visitors Limited ("BVL") is incorporated in the United Kingdom (company number 05957291). Love Water Limited ("LWL") is a wholly owned subsidiary of Blenheim Visitors Limited (company number 05131762).

The summary financial performance of the subsidiaries alone (before consolidation adjustments) are:

Turnover Cost of sales and administration costs Other operating income Interest receivable Interest payable Taxation Net (loss) Retained in subsidiary The assets and liabilities of the subsidiaries are: Fixed assets Current assets Current liabilities Total net (liabilities) Aggregate share capital and reserves	BVL BVL LWL LWL 2021 2020 2021 2020 £000 £000 £000 £000 652 3,124 720 1,151 (1,526) (3,277) (914) (1,148) 286 - 109 - 64 61 - - (119) (137) (64) (61) (8) 8 6 (106)
	(651) (221) (143) (164)

	(651) (221) (143) (164)
	BVL BVL LWL LWL 2021 2020 2021 2020 £000 £000 £000 £000 816 959 204 248 2,916 2,668 215 250 (4,556) (3,800) (1,907) (1,842)
	(824) (173) (1,488) (1,344)

	(824) (173) (1,488) (1,344)

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

6 Analysis of expenditure on charitable activities

Admissions expenses Maintenance of the garden and park Central premises costs Bank charges Depreciation Amortisation Repair expenditure Restoration Higher Level Stewardship Governance costs (see note 8) Support costs (see note 8) Total	Operation of the Palace and park Preservation and maintenance 2021 Total 2020 Total £000 £000 £000 £000 422 - 422 884 - 338 338 695 909 - 909 1,253 31 - 31 107 418 - 418 392 136 - 136 136 131 17 148 278 - 2,580 2,580 2,124 - 110 110 279 161 - 161 448 6,280 - 6,280 5,821
	8,488 3,045 11,533 12,417

Expenditure on charitable activities was £11,533k (2020: £12,417k) of which £10,153k was unrestricted (2020: £11,309k) and £1,380k was restricted (2020: £1,107k).

7 Summary analysis of expenditure and related income for charitable activities

This table shows the cost of the two main charitable activities and the sources of income directly to support those activities.

Costs Admission charges Gift aid recovered on donated admissions Donations Direct grant support Net cost funded from other income	Operation of the Palace and Park Preservation and Maintenance Total £000 £000 £000 (8,488) (3,045) (11,533) 2,981 - 2,981 380 - 380
	(5,127) (3,045) (8,172)
	- 7,415 7,415 1,786 2,576 4,362
	(3,341) 6,946 3,605

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

8 Analysis of governance and support costs

The Charity initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function.

Having identified its governance costs, the remaining support costs together with the governance costs are apportioned between the two key charitable activities undertaken (see note 6) in the year.

Refer to the table below for the basis for apportionment and the analysis of support and governance costs.

Salaries, wages and related costs Production and marketing Audit fees Other non-audit services Health and Safety Legal & Professional Other Administrative Total	General support Governance Total General support Governance Total 2021 2021 2021 2020 2020 2020 £000 £000 £000 £000 £000 £000 4,971 - 4,971 4,431 221 4,642 428 - 428 614 - 614 - 58 58 - 45 45 - 11 11 - 8 8 9 - 9 7 - 7 8 92 100 - 184 184 864 - 864 769 - 769
	6,280 161 6,441 5,821 448 6,269

Salaries and related costs are apportioned based on time. The remainder of costs are apportioned based on type.

9 Net income/(expenditure) for the year

Net income/(expenditure) for the year
	2021	2020
This is stated after charging:	£000	£000
Operating leases – equipment	19	25
Amortisation & Impairment	210	846
Depreciation	556	528
Auditor’s remuneration:
Audit fees (charity and subsidiary)	58	45
Non-audit Fees (charity and subsidiary)	11	8

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

10 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Salaries and wages Social security costs Pension costs	2021 2020 £000 £000 3,904 3,805 264 300 452 537
	4,620 4,642

Salaries and wages include redundancy costs of £210k (2020: £nil).

Some employees benefit from accommodation. Total staff accommodation cost for the Charity in the year to 31 March 2021 were £310k (2020: £297k).

Employment costs to the charity above are not the full cost of all employees of the Estate. A number of employees, including SMT, are recharged to other entities within the Estate depending on their roles and department. The number of employees receiving paid employment or benefits from the group (excluding employer pension and national insurance costs and after charges to related entities) over £60k for the year is as follows:

	2021	2020
£60,000-£70,000	4	1
£70,001-£80,000	2	-
£80,001-£90,000	-	2
£100,001-£110,000	-	1

The number of employees receiving paid employment or benefits from the whole Estate (excluding Pye Group), not just the charity group, (excluding employer pension and national insurance costs) over £60k for the year is as follows:

	2021	2020
£60,000-£70,000	6	1
£70,001-£80,000	2	2
£80,001-£90,000	1	3
£110,001-£120,000	-	1
£140,001-£150,000	1	-
£150,001-£160,000	1	-
£200,001-£210,000	-	1
£230,001-£240,000	-	1

The SMT receive performance related pay depending on their role and the Estate's performance. Therefore, remuneration fluctuates year on year. Remuneration in the year ended 31 March 2021 was impacted by the coronavirus pandemic; year ended 31 March 2020 saw higher remuneration based on past performance.

The Charity Trustees were not paid from employment or receive material benefits with the charity or its subsidiary in the year with the exception of the Chief Executive Officer (CEO) in his capacity as director and for his role as CEO. The charity’s governing document gives authority to pay the CEO. The charity trustees receive the benefit of free water from the water business which operates in the charity's subsidiary however this is not considered a material benefit as declared in the Articles of Association.

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

10 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel (continued)

Two trustees (2020: One) were reimbursed for expenses for travel and business expenses. Total reimbursement was £874 (2020: £162). No charity trustee received payment for professional or other services supplied to the charity in their capacity as trustee (2020: none).

The key management of the group and the charity (with the exception of Love Water Limited's Director and PYE Managing Director) are paid by the wholly owned subsidiary Blenheim Visitors Limited which acts as a payroll bureau and recharges salaries across the Estate. Love Water Limited's Director is paid directly by Love Water Limited and costs are included within the consolidated group. The PYE Managing Director is paid by a related entity and no costs are recharged to the charity group.

The key management personnel of the parent charity and the group are the Senior Management Team which consists of the Chief Executive Officer, Chief Operating Officer, Operations Director, Head of Finance, Marketing and PR Director, Estates Director and PYE Managing Director. Key management of Blenheim Visitors Limited's wholly owned subsidiary, Love Water Limited, are the two Directors.

The salary cost to 31 March 2021 (including employer pension costs, social security and benefits, after charges to related entities) of the key management personnel to the wholly owned subsidiary and the charity was £474k (2020: £574k).

The salary cost for the whole Estate to 31 March 2021 (including employer pension costs, social security and benefits, after charges to related entities) of the key management personnel excluding Managing Director of Pye Homes was £822k (2020: £1,060k).

11 Staff Numbers

The wholly owned trading subsidiary Blenheim Visitors Limited acts as a payroll bureau across the Estate. The seasonality of the business means that the only appropriate way to measure headcount is based on average monthly heads (including casual and part-time staff).

The average monthly head count across the state was 320 (2020: 416) and is broken down by department as follows:

The average monthly head count across the state was 320 (2020: department as follows:	416) and is broken down by
Operations Retail, warehouse and water Admin and support Game Construction Hospitality Sales Property Other	2021 2020 Number Number 215 257 40 69 48 46 4 22 5 5 2 5 6 5 - 7
	320 416

Retail, warehouse and water staff are not a cost of the charity, but its wholly owned subsidiary, Blenheim Visitors Limited. Construction employees are recharged to Blenheim Estate Contractors Limited. Hospitality sales employees are recharged to Barrough Hospitality Limited. Property employees are recharged across our property entities. Game employees are recharged to Blenheim Palace Game LLP. Other employees are recharged to other entities within the Estate.

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

12 Related party transactions

Members, trustees, directors and key management

The current four members of Blenheim Palace Heritage Foundation are trustees of the controlling company The Marlborough 2003 Settlement.

Dominic Hare, CEO, trustee and director of the charity and subsidiary is a director of other Blenheim related entities (see listing of related party transactions below) and is a trustee of Experience Oxfordshire. Sales made to Experience Oxfordshire from the group in the year totalled £nil (2020: £26k). Blenheim Palace Heritage Foundation paid Experience Oxfordshire in the year to 31 March 2021 £14k (2020: £12k) for Ambassador Level Partnership, Oxford Pass contribution and other marketing and advertising spend it shares.

Dominic Hare and Lord Edward Spencer Churchill are directors of Blenheim Art Foundation. Blenheim Art Foundation put on an exhibition at Blenheim Palace each year which is free to visitors. The visitor business within the charity sees the benefit of increased visitor numbers and in return Blenheim Art Foundation receive a proportion of the increased visitor income. The exhibition held in the year ended 31 March 2021 was the Cecily Brown exhibition (2020: Maurizio Cattelan). The fee due to Blenheim Art Foundation from the charity for the exhibition was £140k (2020: £140k).

Christopher Groves is a Partner at Withers LLP. Withers LLP are the Estate’s primary legal advisors. Any legal advice provided directly to the charity or subsidiaries are through a separate team and conflicts of interest and reviewed for each engagement. Fees paid to Withers by the group in the year ended 31 March 2021 were £72k (2020: £99k).

Dominic Hare is a director of The Emotional Help Hub UK Limited. During the year ended 31 March 2021, the Charity acted as an agent on behalf of The Emotional Help Hub UK Limited and received funds on its behalf. During the year ended 31 March 2021, the Charity:

received donations on behalf of The Emotional Help Hub UK Limited totalling £11k (2020: £nil),
paid £11k (2020: £nil) to The Emotional Help Hub UK Limited.
At 31 March 2021, the Charity had no outstanding balance owed to or due from The Emotional Help Hub UK Limited (2020: no balance outstanding).

Roger File is part of key management and is a director of the wholly owned subsidiary, Blenheim Visitors Limited. Roger File is a Governor for Abingdon and Witney College which provide training programmes for Blenheim's apprentices.

Employees closely related to key management and directors of the Blenheim Visitors Limited include the Estate Assistant who received remuneration of £nil in the year (2020: £2,564).

Related entities

The Group has transactions with a number of related entities within the Blenheim Estate. Not infrequently invoices are received into the charity or the subsidiaries which relate in part or total to related parties, once settled the relevant costs recharged to the related party. Less frequently related parties pay invoices on behalf of the charity or subsidiaries and are recharged. These transactions are not disclosed in detail within this related party note, though they are included within the year end balances. Blenheim Visitors Limited also acts as the payroll bureau for the "group" and incurs central costs.

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

12 Related party transactions (continued)

Love Water Limited distributes Blenheim Visitors Limited water. Sales made in the year to Love Water Limited from Blenheim Visitors Limited was £38k (2020: £72k).

Love Water Limited owed Blenheim Visitors Limited £1,499k at 31 March 2021 (2020: £1,445k). Interest of £64k was charged in the year to 31 March 2021 (2020: £61k).

Love Water Limited’s director, Nick Swan, owed Love Water Limited £9k at 31 March 2021 (2020: £10k). Interest charged in the year to 31 March 2021 was £nil (2020: £nil).

Blenheim Finance Limited is the wider Estate's funding facility. During the year ended 31 March 2021, Blenheim Visitors Limited borrowed £3,722k (2020: £905k) from Blenheim Finance Limited and repaid £1,961k (2020: £3,000k). Interest of £142k (2020: £129k) was charged. The balance outstanding at 31 March 2021 was £4,083k (2020: £2,180k).

At year end the charity was owed £4,131k by Blenheim Finance Limited (2020: £2K). A competitive interest rate of c5% is charged on this balance and interest of £58k was earned during the year (2020: £65k).

For the year ended 31 March 2021 the charity received £4,320k donation from Blenheim Supporting Limited (via Blenheim Agency Limited) (2020: £2,620k).

The following management charges are levied annually to related parties:

The following management charges are levied annually to	related parties:
	Charity	Charity
	2021	2020
	£000	£000
Barrough Hospitality Limited
Professional fee recharge	100	100
Consumer marketing recharge	100	100
Salary costs	74	85
Blenheim Parliamentary 1994 (via Agency)
Management fee	95	95
Professional fee recharge	20	-
Vanbrugh Unit Trust
Maintenance staff call out and stand by costs	185	190
Vanbrugh Management Limited
IT cost	45	48
Salary costs	102	240
Property Management Service	118	-
Support costs	20	-
Godolphin Partnership
Heat and light	4	36
Project costs	18	166
Blenheim Industrial Property Limited
Landscape Maintenance Services	18	18

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

12 Related party transactions (continued)

Blenheim Supporting Limited
Management fee	110	-
Blenheim Visitors Limited
Management fee	100	-
Blenheim Palace Game LLP
Management fee	16	-
1981 Settlement
Management fee	14	-
Blenheim Finance Limited	238	238
Management fee

Non-recurring related party transactions

Both the parent charity and the wholly owned subsidiary have outstanding balances with other Blenheim entities.

Amounts owed to the Charity and the Group at 31 March 2021

Blenheim Game Vanbrugh Unit Trust Blenheim Industrial Property Limited Blenheim Estates Contractors Limited Blenheim Farm Partnership Blenheim Agency Limited Blenheim Finance Limited Blenheim Art Foundation Barrough Hospitality Limited Blenheim Visitors Limited Blenheim Estates Properties Limited Blenheim Parliamentary 1994 Settlement Blenheim Palace Game LLP Blenheim 1994 Settlement SPV Limited Blenheim Estate Homes Limited J. A. Pye (Oxford) Limited Love Water Limited Settled Estates A Fund	Group Group Charity Charity 2021 2020 2021 2020 Debtor Debtor Debtor Debtor £000 £000 £000 £000 - 20 - 15 161 182 149 131 2 4 2 4 21 28 2 - 61 13 54 - 403 1,079 324 1,047 3,920 2 3,920 2 5 21 - - 24 189 18 159 - - - 329 - 1 - 1 1 9 - 9 11 149 - 26 33 - 33 1 - 1 - 38 - 4 - - - 19 - 4 - 4 -
	4,652 1,730 4,497 1,756

Blenheim Game
Vanbrugh Unit Trust
Blenheim Industrial Property Limited
Blenheim Estates Contractors Limited
Blenheim Farm Partnership
Blenheim Agency Limited
Blenheim Finance Limited
Blenheim Art Foundation
Barrough Hospitality Limited
Blenheim Visitors Limited
Blenheim Estates Properties Limited
Blenheim Parliamentary 1994
Settlement
Blenheim Palace Game LLP
Blenheim 1994 Settlement SPV
Limited
Blenheim Estate Homes Limited
J. A. Pye (Oxford) Limited
Love Water Limited
Settled Estates A Fund

Group
Group
Charity
Charity
2021
2020
2021
2020
Debtor
Debtor
Debtor
Debtor
£000
£000
£000
£000
-
20
-
15
161
182
149
131
2
4
2
4
21
28
2
-
61
13
54
-
403
1,079
324
1,047
3,920
2
3,920
2
5
21
-
-
24
189
18
159
-
-
-
329
-
1
-
1
1
9
-
9
11
149
-
26
33
-
33
1
-
1
-
38
-
4
-
-
-
19
-
4
-
4
-

4,652
1,730
4,497
1,756

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

12 Related party transactions (continued)

Amounts owed by the Charity and the Group at 31 March 2021

Blenheim Estates Contractors Limited Vanbrugh Management Limited Godolphin Partnership Blenheim Farm Partnership Blenheim Agency Limited Blenheim Finance Limited Blenheim Visitors Limited Blenheim Supporting Limited Blenheim Palace Game LLP The Blenheim Foundation	Group Group Charity Charity 2021 2020 2021 2020 Creditor Creditor Creditor Creditor £000 £000 £000 £000 - (2) - (2) - (60) - (60) (1) (267) (1) (267) (13) (2) - (2) - (447) - - (4,060) (2,180) - - - - (423) - (38) - (38) - (159) - (159) - (9) (9) (9) (9)
	(4,280) (2,967) (630) (340)

13 Corporation Taxation

The company is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. No tax charge arose in the period.

The subsidiaries, Blenheim Visitors Limited and Love Water Limited, make qualifying donations of all taxable profit to Blenheim Palace Heritage Foundation when they are able. No corporation tax liability on the subsidiaries arises in the accounts.

14 Intangible assets

Cost Balance as at 01/04/2020 Balance as at 31/03/2021 Accumulated amortisation Balance as at 01/04/2020 Amortisation charge Balance as at 31/03/2021 Net book value Balance as at 31/03/2021 Balance as at 01/04/2020	Group Charity Goodwill Goodwill £000 £000 2,297 763
	2,297 763
	1,803 525 210 136
	2,013 661

	284 102
	494 238

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

15 Tangible Fixed Assets

Group Cost Balance as at 01/04/2020 Addition Disposal Transfer Balance as at 31/03/2021 Accumulated Depreciation Balance as at 01/04/2020 Charge Disposal Balance as at 31/03/2021 Net Book Value Balance as at 31/03/2021 Balance as at 01/04/2020	Freehold Land and buildings Plant and Machinery Motor Vehicles Fixtures and Fittings Total £000 £000 £000 £000 £000 608 2,713 1,123 2,498 6,942 - - - 2,600 2,600 - - - (1) (1) - 7 - (7) -
	608 2,720 1,123 5,090 9,541
	30 2,280 805 1,521 4,636 30 122 136 268 556 - - - (1) (1)
	60 2,402 941 1,788 5,191

	548 318 182 3,302 4,350
	578 433 318 977 2,306

Charity

Cost Balance as at 01/04/2020 Addition Balance as at 31/03/2021 Accumulated Depreciation Balance as at 01/04/2020 Charge Balance as at 31/03/2021 Net Book Value Balance as at 31/03/2021 Balance as at 01/04/2020	Plant and Machinery Motor Vehicles Fixtures and Fittings Total £000 £000 £000 £000 1,697 1,055 2,221 4,973 - - 2,575 2,575
	1,697 1,055 4,796 7,548
	1,595 767 1,256 3,618 95 127 196 418
	1,690 894 1,452 4,036

	7 161 3,344 3,512
	102 288 965 1,355

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

16 Chattels Balance as at 01/04/2020 Addition Disposal Balance as at 31/03/2021	Group Charity £000 £000 920 920 4 4 (23) (23)
	901 901

Chattels held or purchased in the year include works by Henry Lamb Churchill. There was one disposal during the year (2020: one) to a related charity, The Blenheim Foundation, of a Victor Churchill asset (note 12).

17 Investments

The charity holds 1 share of £1 in its wholly owned trading subsidiary company Blenheim Visitors Limited which is incorporated in the United Kingdom. These are the only shares allotted, called up and fully paid.

The activities and results of the wholly owned subsidiary are summarised in note 5.

The charity has an investment in the Godolphin Partnership which runs the 'Untold Story' exhibition within the Palace was transferred to the charity on 01/01/2017 at £78k.

18 Stock Retail stock Bottled water 19 Debtors Trade debtors Amounts owed from related entities (note 12) Other debtors Prepayments and accrued income	Group Group Charity Charity 2021 2020 2021 2020 £000 £000 £000 £000 382 360 - - 159 214 - -
	541 574 - -
	Group Group Charity Charity 2021 2020 2021 2020 £000 £000 £000 £000 225 470 52 200 4,652 1,730 4,497 1,756 6,359 5,224 6,308 5,173 244 232 197 152
	11,480 7,656 11,054 7,281

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

20 Creditors: amounts falling due within one year

Trade creditors Amounts owed to related entities (note 12) Other creditors and accruals Deferred income (note 21) VAT Taxation and social security costs Deferred tax	Group Group Charity Charity 2021 2020 2021 2020 £000 £000 £000 £000 1,315 1,205 1,172 865 4,280 2,967 630 340 1,324 1,466 994 1,109 157 42 157 42 243 340 - - 126 137 - - 30 36 - -
	7,475 6,193 2,953 2,356

21 Deferred income

Deferred income comprises advanced ticket sales, corporate event fees and grant income.

Balance as at 1 April 2020 Amount released to income earned from charitable activities Amount deferred in year for advanced ticket sales Grant income deferred Balance as at 31 March 2021	Group Charity £000 £000 42 42 (42) (42) 138 138 19 19
	157 157

22 Analysis of charitable funds

Analysis of movements in Group unrestricted funds

General fund Total	1 April 2020 Income Expenditure Transfers 31 March 2021 £000 £000 £000 £000 £000 7,924 14,346 (12,830) 1,854 11,294
	7,924 14,346 (12,830) 1,854 11,294

The transfer of £1,854k relates to the full use of the Culture Recovery Fund. All the conditions of the grant funding have been met and the grant has been fully utilised on the preservation and maintenance of the Palace and park through expenditure in the Statement of Financial Activities and the acquisition of Tangible Fixed Assets which are held for the general use of the Charity.

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

22 Analysis of charitable funds (continued)

Analysis of movements in Group unrestricted funds - prior year

General fund Total Name of unrestricted fund	1 April 2019 Income Expenditure Transfers 31 March 2020 £000 £000 £000 £000 £000 8,457 16,535 (17,068) - 7,924
	8,457 16,535 (17,068) - 7,924
	Description, nature and purposes of the fund

General fund The unrestricted reserves of the charity.

Analysis of movements in Charity unrestricted funds

General fund Total	1 April 2020 Income Expenditure Transfers 31 March 2021 £000 £000 £000 £000 £000 9,444 12,620 (10,313) 1,854 13,605
	9,444 12,620 (10,313) 1,854 13,605

Analysis of movements in Charity unrestricted funds - prior year (restated)

General fund Total	1 April 2019 Income Expenditure Transfers 31 March 2020 £000 £000 £000 £000 £000 8,655 12,636 (11,847) - 9,444
	8,655 12,636 (11,847) - 9,444

See note 27 for details of the prior year restatement.

Name of Description, nature and purposes of the fund unrestricted fund

General fund

The unrestricted reserves of the charity.

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

22 Analysis of charitable funds (continued)

Analysis of movements in Group restricted funds

World Heritage Site Management Blenheim Foundation Restoration Higher Level Stewardship Maintenance Fund distribution Park planting Culture Recovery Fund Total	1 April 2020 Income Expenditure Transfers 31 March 2021 £000 £000 £000 £000 £000 - - - - - - 600 (600) - - - 110 (110) - - - 83 (83) - - - 2 (2) - - - 2,439 (585) (1,854) -
	- 3,234 (1,380) (1,854) -

Analysis of movements in Group restricted funds - prior year

World Heritage Site Management Blenheim Foundation Restoration Higher Level Stewardship Maintenance Fund distribution Park planting Total	1 April 2019 Income Expenditure Transfers 31 March 2020 £000 £000 £000 £000 £000 - - - - - - 144 (144) - - 169 110 (279) - - 530 150 (680) - - 4 - (4) - -
	703 404 (1,107) - -

Analysis of movements in Charity restricted funds

World Heritage Site Management Blenheim Foundation Restoration Higher Level Stewardship Maintenance Fund distribution Park planting Culture Recovery Fund Total	1 April 2020 Income Expenditure Transfers 31 March 2021 £000 £000 £000 £000 £000 - - - - - - 600 (600) - - - 110 (110) - - - 83 (83) - - - 2 (2) - - - 2,439 (585) (1,854) -
	- 3,234 (1,380) (1,854) -

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

22 Analysis of charitable funds (continued)

Analysis of movements in Charity restricted funds - prior year (restated)

World Heritage Site Management Blenheim Foundation Restoration Higher Level Stewardship Maintenance Fund distribution Park planting Total	1 April 2019 Income Expenditure Transfers 31 March 2020 £000 £000 £000 £000 £000 - - - - - - 144 (144) - - 169 110 (279) - - 530 150 (680) - - 4 - (4) - -
	703 404 (1,107) - -

See note 27 for details of the prior year restatement.

Name of restricted fund

World Heritage Site Management
Blenheim Foundation Restoration
Higher Level Stewardship
Maintenance Fund distribution
Park planting
Culture Recovery Fund

Description, nature and purposes of the fund

Conservation of the land and Palace grounds

Blenheim Foundation Restoration Projects

Conservation of the land and Palace grounds
Restoration and conservation of the Palace
Tree planting within Management Plan Restoration and conservation of the Palace

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

23 Analysis of Group net assets between funds

Tangible fixed assets Intangible fixed assets Investments Chattels Cash at bank and in hand Other net current assets Total	General Restricted Total Fund Funds £000 £000 £000 4,350 - 4,350 284 - 284 78 - 78 901 - 901 1,135 - 1,135 4,546 - 4,546
	11,294 - 11,294

Analysis of Group net assets between funds - prior year

Tangible fixed assets Intangible fixed assets Investments Chattels Cash at bank and in hand Other net current assets Total	General Restricted Total Fund Funds £000 £000 £000 2,306 - 2,306 494 - 494 78 - 78 920 - 920 2,089 - 2,089 2,037 - 2,037
	7,924 - 7,924

24 Reconciliation of net movement in funds to net cash flow from operating activities

Net income/(expenditure) before transfers Add back amortisation and impairment charge Add back depreciation charge Deduct interest income shown in investing activities Decrease/(increase) in stock Decrease in debtors (Decrease)/increase in creditors Net cash provided by/(used in) operating activities	3 4 5 Group Group Charity Charity 2021 2020 2021 2020 £000 £000 £000 £000 3,370 (1,236) 4,161 86 210 846 136 136 556 528 418 392 (58) (65) (58) (65) 33 (43) - - 307 3,491 358 799 (479) (1,291) 597 (1,714)
	3,939 2,230 5,612 (366)

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

24 Reconciliation of net movement in funds to net cash flow from operating activities (continued)

Analysis of changes in net debt for the Group:

Cash at bank and in hand Cash and cash equivalents Borrowings due within one year Total borrowings Net Debt	1 April 2020 Cash flows Other movement 31 March 2021 £000 £000 £000 £000 2,089 (954) - 1,135
	2,089 (954) - 1,135 (2,180) (1,761) (119) (4,060)
	(2,180) (1,761) (119) (4,060)
	(91) (2,715) (119) (2,925)

Analysis of changes in net debt for the Charity:

Cash at bank and in hand Cash and cash equivalents Net Debt	1 April 2020 Cash flows 31 March 2021 £000 £000 £000 1,928 (1,017) 911
	1,928 (1,017) 911
	1,928 (1,017) 911

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

25 Pension commitments

The wholly owned subsidiary operates a defined contributions pension scheme and a defined benefits pension scheme.

The assets of the defined contributions scheme are held separately from those of the subsidiary in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £460k (2020: £379k).

Contributions totalling £49k (2020: £94k) were payable to the fund at the reporting period.

The wholly owned subsidiary operates a Defined Benefit Pension Scheme.

A full actuarial valuation was carried out as at 1 April 2018. The FRS102 results as at 31 March 2021 are based on the last full actuarial valuation with updated figures to reflect market conditions as at 1 April 2021.

Reconciliation of present value of plan liabilities: At the beginning of the year Interest cost Actuarial (losses)/gains Benefits paid At the end of the year Reconciliation of present value of plan assets: At the beginning of the year Return on assets excluding interest income Interest income Contributions Benefits paid Limit on recognition of assets less interest At the end of the year Composition of plan assets: Equities Bonds Property Cash Annuities Total plan assets	2021 2020 £000 £000 (7,623) (7,846) (173) (177) (463) 112 240 288
	(8,019) (7,623)
	2021 2020 £000 £000 7,623 7,846 1,151 (760) 173 177 60 60 (240) (288) (748) 588
	8,019 7,623
	2021 2020 £000 £000 4,419 3,374 2,325 2,109 1,076 1,049 77 91 1,003 1,133
	8,900 7,756

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

25 Pension commitments (continued)

Property and cash above include annuities held in the name of the pension scheme trustees.

The above represents the total plan assets held including any pension surplus that has not been recognised.

Present value of plan assets Present value of plan liabilities Net pension scheme asset	2021 2020 £000 £000 8,019 7,623 (8,019) (7,623)
	- -

The difference between the fair value and present value of the plan assets represents the unrecognised pension surplus.

Fair value of plan assets were as follows: Opening fair value of scheme assets Return on assets excluding interest income Interest income Contributions by employer Benefits paid	2021 2020 £000 £000 7,756 8,567 1,151 (760) 173 177 60 60 (240) (288)
	8,900 7,756

The cumulative amount of actuarial gains and losses recognised in the Statement of Financial Activities was £nil (2020: £nil).

Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages):

Discount rate Future pension increases Mortality rates RPI assumption CPI assumption Amounts for the current and previous period are as follows: Defined benefit obligation Unrecognised past service cost Unrecognised surplus	2021 2020 % % 1.9 2.3 3.0 3.0 1.0 1.0 3.65 3.1 2.75 2.1 2021 2020 £000 £000 8,019 (7,623) (8,900) 7,756
	881 133

Blenheim Palace Heritage Foundation

Notes to the Financial Statements for year ended 31 March 2021 (continued)

26 Operating leases

The Group and Charity had the following future minimum lease payments under non-cancellable operating leases for each of the following periods:

Vehicles and equipment Due within one year Between one and five years Total	Group Group Charity Charity 2021 2020 2021 2020 £000 £000 £000 £000 9 8 4 3 12 6 11 -
	21 14 15 3

27 Prior period adjustment

The prior period adjustment has been made to restate the funds of the Charity at 31 March 2020. This is to increase the restricted expenditure of charitable activities by £963k that had been incorrectly included within unrestricted expenditure on charitable activities for the Charity. The expenditure if correctly disclosed for the Group for the as at 31 March 2020:

Statement of Financial Activities Expenditure on charitable activities Preservation and maintenance as previously stated Correction of restricted expenditure within unrestricted funds At 31 March restated Balance Sheet The funds of the Charity Total charity funds previously disclosed Correction of restricted expenditure within unrestricted funds At 31 March restated	Group General fund Restricted funds £000 £000 2,482 1,107 - - 2,482 1,107 Group General fund Restricted funds £000 £000 7,924 - - - 7,924 -	Charity General fund Restricted funds £000 £000 3,445 144 (963) 963
		2,482 1,107
		Charity General fund Restricted funds £000 £000 8,481 963 963 (963)
		9,444 -

28 Ultimate parent undertaking

The subscribers to the Memorandum, being the Trustees of the Marlborough 2003 Settlement, are the first members.

Blenheim Palace Heritage Foundation

Report and Financial Statements

Blenheim Palace Heritage Foundation

Blenheim Palace Heritage Foundation

Contents

Blenheim Palace Heritage Foundation

Legal and administration details for the year ended 31 March 2021

Trustees/Directors

Secretary

Key Management Personnel (Blenheim Palace Heritage Foundation)

Key Management Personnel (Blenheim Visitors Limited)

Key Management Personnel (Love Water Limited)

Registered office

Independent Auditor

Bankers

Solicitor

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021

Structure, Governance and Management

Governing Document

Appointment of trustees

Trustee induction and training

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

Our purposes and activities

Strategies and activities for achieving objectives and providing a public benefit

Preservation and Restoration of the Palace and park

Historic and architectural interest and natural beauty

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

Arts, culture and charity

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

Organisation

Group Structure and related entities

Pay policy for senior staff

Risk management

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

Pandemic

UK economic downturn

Brexit

Damage to Palace by fire or other disaster

Related parties and co-operation with other organisations

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

Blenheim ten-year strategy

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

4. Achieve annual paying visitor numbers in excess of 750,000

5. Become a net generator of green energy

6. Become one of the UK's top 100 employers

7. Complete £40 million of vital restoration work

8. Reacquire key works from the Palace's lost collections and establish new ones

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

9. Secure funds of £45 million to conserve our World Heritage Site

10. Double charitable contributions to the community

Achievements and performance

Restoration and preservation work

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

Visitor numbers

Recruitment, Advertising and Selection

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

Training and Promotion

Fundraising statement

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

Financial review

Income

Expenditure

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)

Investment powers and policy

Reserves policy and going concern

Blenheim Palace Heritage Foundation

Report of the Trustees for the year ended 31 March 2021 (continued)