REGISTERED COMPANY NUMBER: 10493204 (England and Wales) REGISTERED CHARITY NUMBER: 1172250
Report of the Trustees and
Unaudited Financial Statements for the Year Ended 31 December 2022
for
Paper Foundation (A Company Limited by Guarantee)
Stables Thompson & Briscoe Ltd Chartered Accountants & Business Advisors Lowther House Lowther Street Kendal LA9 4DX
Paper Foundation
Contents of the Financial Statements for the Year Ended 31 December 2022
| Page | |||
|---|---|---|---|
| Reference and Administrative Details | 1 | ||
| Report of the Trustees | 2 | to | 4 |
| Independent Examiner's Report | 5 | ||
| Statement of Financial Activities | 6 | ||
| Balance Sheet | 7 | to | 8 |
| Notes to the Financial Statements | 9 | to | 15 |
| Detailed Statement of Financial Activities | 16 | to | 17 |
Paper Foundation
Reference and Administrative Details for the Year Ended 31 December 2022
TRUSTEES J E Sharp P J Willink M A J Cropper Mrs A F Cropper E W G Bayntun Coward (appointed 14.2.22) Ms P A H Elliott (appointed 5.12.22) REGISTERED OFFICE C/O Estate Office Ellergreen Kendal Cumbria LA9 5SD REGISTERED COMPANY 10493204 (England and Wales) NUMBER REGISTERED CHARITY 1172250 NUMBER INDEPENDENT EXAMINER Stables Thompson & Briscoe Ltd Chartered Accountants & Business Advisors Lowther House Lowther Street Kendal LA9 4DX
Page 1
Paper Foundation
Report of the Trustees for the Year Ended 31 December 2022
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2022. The trustees have adopted the provisions of 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).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The Paper Foundation is a charity committed to the preservation and celebration of paper-making and all paper related arts, crafts, and industries. It hopes to fulfil this role to a level of national and international significance.
It primarily fulfils its objectives from an institution located close to the historic James Cropper paper-mill in Burneside, a small village in the foothills of the English Lake District with a history of paper-making dating back to 1746.
The Paper Foundation has several interrelated aims:
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To perpetuate the craftsmanship and knowledge necessary for the production of handmade paper and the continuation of its associated arts, crafts and industries. This includes (but is not limited to) print-making, letterpress printing, bookbinding and paper conservation;
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To conserve the objects and artefacts that comprise the physical heritage of paper-making and related paper arts in the United Kingdom;
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To provide open access to archives, documents and artefacts, facilitate research, and share this with as wide an audience as possible;
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To regenerate the paper-making community of Burneside and enrich the cultural life of the north of England and all those who visit.
Significant activities
The Foundation bears several traits of a museum, but its ethos is to focus on the present and future of paper as much as the past.
Current activities include the creation since 2015 of the most important archive dedicated to paper in the United Kingdom. This is based on the ground-floor of a country house with paper industry associations and is growing all the time. Nearby the Foundation has operated a hand-made paper-mill since 2020.
Public benefit
In determining these objectives, the Trustees have paid due regard to The Charity Commission guidance on public benefit.
Page 2
Paper Foundation
Report of the Trustees for the Year Ended 31 December 2022
ACHIEVEMENT AND PERFORMANCE Charitable activities
During the year, the Foundation has continued to build its profile, operations and collections.
The Foundation has continued to ensure the survival and continuation of the endangered craft of papermaking by hand and successfully recruited a trainee papermaker to work alongside the Foundation's papermaker. This has enabled the Foundation to significantly increase production and successfully develop a small product range. The Foundation successfully supported an application by the trainee papermaker for a Queen Elizabeth Scholarship Trust (QEST) craft apprenticeship. QEST funds craftspeople whom they recognise have potential for excellence.
The Foundation has increased its customer base for conservation papers and these continue to be supplied to leading museums and libraries internationally. In addition direct sales via the online website have also increased.
The Trustees agreed that it was important to focus on both improving the infrastructure and the production capacity of the Mill to help build resilience into the production process. With the help of an employed Fundraising Officer, planning and fundraising commenced towards the end of 2022, laying the foundations of an expansion project that will come to fruition in 2023.
The collections have continued to grow with further archiving undertaken in the partly refurbished ground floor of Ellergreen Mansion. Several successful events have been held in the library and meeting space including the Christmas Open day and meetings with academia.
FINANCIAL REVIEW
Financial position
The Charity received donations of £82,500 in the year (compared to £30,142 last year) excluding gift aid reclaimed. The charity received a further £12,500 (2021 - £10,292) in gift aid. Expenditure in the year totalled £105,748 (2021 £46,147) resulting in a surplus of £28,452 (2021 £7,858) and total carried forward reserves of £84,565 from £56,113 brought forward. All reserves are unrestricted.
At the end of the period the charity had unrestricted reserves of £84,565 (2021 £56,113). As the amount tied up in Fixed Assets is greater than this for both years there were no free reserves.
Reserves policy
The charity is in start-up mode with this being the second year of operations. A reserves policy will be drafted as matters evolve including budgets and greater clarity on overheads and other financial commitments.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
Paper Foundation was incorporated on 23 November 2016 as a not for profit company limited by guarantee.
Paper Foundation is a registered charity (number 1172250). The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association.
Recruitment and appointment of new trustees
During 2022, two new trustees were appointed to strengthen the Trustee board:
Edward Bayntun-Coward was appointed as trustee as a result of his interest in the Foundation's aims, his long-term background and experience in the culture and arts sector, and his broad interest in paper arts.
Penny Elliot was appointed as trustee and has extensive relevant experience with cultural charitable institutions and as a lawyer, bringing a strong focus on governance.
The proposal is to broaden this list considerably, ideally to include a list of the highest-level advocates for the Foundation across the arts, culture and educational sectors. This could be realised through the creation of an advisory board as well as trustee appointments.
Page 3
Paper Foundation
Report of the Trustees for the Year Ended 31 December 2022
STRUCTURE, GOVERNANCE AND MANAGEMENT Risk management
The trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by order of the board of trustees on 22 September 2023 and signed on its behalf by:
M A J Cropper - Trustee
Page 4
Independent Examiner's Report to the Trustees of Paper Foundation
Independent examiner's report to the trustees of Paper Foundation ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2022.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
H M Holmes BSc FCA
Stables Thompson & Briscoe Ltd Chartered Accountants & Business Advisors Lowther House Lowther Street Kendal LA9 4DX
Date: .............................................
Page 5
Paper Foundation
Statement of Financial Activities for the Year Ended 31 December 2022
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies 2 Other trading activities 3 Investment income 4 Total EXPENDITURE ON Raising funds 5 Charitable activities Development costs Depreciation Support costs Governance costs Total NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted fund £ 95,463 38,737 - 134,200 16,516 61,652 3,838 21,329 2,413 105,748 28,452 56,113 84,565 |
Restricted fund £ - - - - - - - - - - - - - |
31.12.22 Total funds £ 95,463 38,737 - 134,200 16,516 61,652 3,838 21,329 2,413 105,748 28,452 56,113 84,565 |
31.12.21 Total funds £ 44,432 9,566 7 |
|---|---|---|---|---|
| 54,005 | ||||
| 8,934 26,344 1,428 6,672 2,769 |
||||
| 46,147 | ||||
| 7,858 48,255 |
||||
| 56,113 |
The notes form part of these financial statements
Page 6
Paper Foundation
Balance Sheet 31 December 2022
| Notes FIXED ASSETS Intangible assets 10 Tangible assets 11 Heritage assets 12 CURRENT ASSETS Stocks 13 Debtors 14 Cash at bank and in hand CREDITORS Amounts falling due within one year 15 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS Amounts falling due after more than one year 16 NET ASSETS FUNDS 17 Unrestricted funds TOTAL FUNDS |
Unrestricted fund £ 1,500 42,150 64,626 108,276 9,493 11,306 18,167 38,966 (62,677) (23,711) 84,565 - 84,565 |
Restricted fund £ - - - - - - - - - - - - - |
31.12.22 Total funds £ 1,500 42,150 64,626 108,276 9,493 11,306 18,167 38,966 (62,677) (23,711) 84,565 - 84,565 84,565 84,565 |
31.12.21 Total funds £ 2,250 19,008 64,626 85,884 1,000 2,561 1,384 4,945 (15,216) (10,271) 75,613 (19,500) 56,113 56,113 56,113 |
|---|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2022.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2022 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
continued...
Page 7
Paper Foundation
Balance Sheet - continued 31 December 2022
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 22 September 2023 and were signed on its behalf by:
M A J Cropper - Trustee
The notes form part of these financial statements
Page 8
Paper Foundation
Notes to the Financial Statements for the Year Ended 31 December 2022
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 20% on cost
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
Going concern
The charity has net current liabilities of £23,711. The charity has a number of significant benefactors who are supporting the development of the charity's objectives. They have committed to ensuring that the charity can continue to operate during this development phase and until it can generate a surplus. Therefore, the trustees have prepared the accounts on a going concern basis.
continued...
Page 9
Paper Foundation
Notes to the Financial Statements - continued for the Year Ended 31 December 2022
| 2. DONATIONS AND LEGACIES Appeals and donations Gift aid tax reclaimed Grants Grants received, included in the above, are as follows: QEST Apprenticeship funding Other grants 3. OTHER TRADING ACTIVITIES Shop income 4. INVESTMENT INCOME Deposit account interest 5. RAISING FUNDS Raising donations and legacies Advertising and marketing 6. NET INCOME/(EXPENDITURE) Net income/(expenditure) is stated after charging/(crediting): Depreciation - owned assets Computer software amortisation |
31.12.22 £ 82,500 12,500 463 95,463 31.12.22 £ 463 - 463 31.12.22 £ 38,737 31.12.22 £ - 31.12.22 £ 1,329 31.12.22 £ 3,088 750 |
31.12.21 £ 30,142 12,500 1,790 |
|---|---|---|
| 44,432 | ||
| 31.12.21 £ - 1,790 1,790 31.12.21 £ 9,566 |
||
| 31.12.21 £ 7 31.12.21 £ 1,954 31.12.21 £ 677 750 |
continued...
Page 10
Paper Foundation
Notes to the Financial Statements - continued for the Year Ended 31 December 2022
7. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021.
8. STAFF COSTS
9.
| Wages and salaries Social security costs Other pension costs The average monthly number of employees during the year was as follows: Number of staff No employees received emoluments in excess of £60,000. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted fund £ INCOME AND ENDOWMENTS FROM Donations and legacies 42,642 Other trading activities 9,566 Investment income 7 Total 52,215 EXPENDITURE ON Raising funds 8,934 Charitable activities Development costs 24,594 Depreciation 1,428 Support costs 6,632 Governance costs 2,769 Total 44,357 NET INCOME 7,858 RECONCILIATION OF FUNDS Total funds brought forward 48,255 |
31.12.22 £ 60,505 (13) 1,160 61,652 31.12.22 2 Restricted fund £ 1,790 - - 1,790 - 1,750 - 40 - 1,790 - - |
31.12.21 £ 26,344 - - 26,344 31.12.21 1 Total funds £ 44,432 9,566 7 54,005 8,934 26,344 1,428 6,672 2,769 46,147 7,858 48,255 |
31.12.21 £ 26,344 - - 26,344 31.12.21 1 Total funds £ 44,432 9,566 7 54,005 8,934 26,344 1,428 6,672 2,769 46,147 7,858 48,255 |
|---|---|---|---|
| 54,005 | |||
| 8,934 26,344 1,428 6,672 2,769 |
|||
| 46,147 | |||
| 7,858 48,255 |
continued...
Page 11
Paper Foundation
Notes to the Financial Statements - continued for the Year Ended 31 December 2022
| 9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued Unrestricted Restricted fund fund £ £ TOTAL FUNDS CARRIED FORWARD 56,113 - 10. INTANGIBLE FIXED ASSETS COST At 1 January 2022 and 31 December 2022 AMORTISATION At 1 January 2022 Charge for year At 31 December 2022 NET BOOK VALUE At 31 December 2022 At 31 December 2021 11. TANGIBLE FIXED ASSETS Improvements Fixtures to Plant and and property machinery fittings £ £ £ COST At 1 January 2022 15,000 4,875 - Additions 15,659 7,690 2,881 At 31 December 2022 30,659 12,565 2,881 DEPRECIATION At 1 January 2022 - 867 - Charge for year - 2,512 576 At 31 December 2022 - 3,379 576 NET BOOK VALUE At 31 December 2022 30,659 9,186 2,305 At 31 December 2021 15,000 4,008 - |
Total funds £ 56,113 Computer software £ 3,000 750 750 1,500 1,500 2,250 Totals £ 19,875 26,230 46,105 867 3,088 3,955 42,150 19,008 |
Total funds £ |
|---|---|---|
| 56,113 | ||
continued...
Page 12
Paper Foundation
Notes to the Financial Statements - continued for the Year Ended 31 December 2022
12. HERITAGE ASSETS
| 12. HERITAGE ASSETS |
||
|---|---|---|
| MARKET VALUE At 1 January 2022 and 31 December 2022 NET BOOK VALUE At 31 December 2022 At 31 December 2021 13. STOCKS Stocks 14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade debtors VAT Prepayments Accrued income 15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Payments on account Trade creditors Social security and other taxes VAT Other creditors Accruals and deferred income |
31.12.22 £ 9,493 31.12.22 £ 9,292 2,014 - - 11,306 31.12.22 £ 13,882 46,500 668 - 367 1,260 62,677 |
Total £ 64,626 |
| 64,626 | ||
| 64,626 | ||
| 31.12.21 £ 1,000 31.12.21 £ - - 2,209 352 2,561 31.12.21 £ - 7,172 366 6,678 - 1,000 |
||
| 15,216 |
continued...
Page 13
Paper Foundation
Notes to the Financial Statements - continued for the Year Ended 31 December 2022
16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
| Trade creditors 17. MOVEMENT IN FUNDS At 1.1.22 £ Unrestricted funds General fund 56,113 TOTAL FUNDS 56,113 Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 134,200 TOTAL FUNDS 134,200 Comparatives for movement in funds At 1.1.21 £ Unrestricted funds General fund 48,255 TOTAL FUNDS 48,255 Comparative net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 52,215 Restricted funds Heritage Crafts HCA 1,790 TOTAL FUNDS 54,005 |
31.12.22 £ - Net movement in funds £ 28,452 28,452 Resources expended £ (105,748) (105,748) Net movement in funds £ 7,858 7,858 Resources expended £ (44,357) (1,790) (46,147) |
31.12.21 £ 19,500 At 31.12.22 £ 84,565 84,565 Movement in funds £ 28,452 28,452 At 31.12.21 £ 56,113 56,113 Movement in funds £ 7,858 - 7,858 |
|
|---|---|---|---|
continued...
Page 14
Paper Foundation
Notes to the Financial Statements - continued for the Year Ended 31 December 2022
17. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund TOTAL FUNDS |
At 1.1.21 £ 48,255 48,255 |
Net movement in funds £ 36,310 36,310 |
At 31.12.22 £ 84,565 |
|---|---|---|---|
| 84,565 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Heritage Crafts HCA TOTAL FUNDS |
Incoming resources £ 186,415 1,790 188,205 |
Resources expended £ (150,105) (1,790) (151,895) |
Movement in funds £ 36,310 - |
|---|---|---|---|
| 36,310 |
18.
RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 December 2022.
Page 15
Paper Foundation
Detailed Statement of Financial Activities for the Year Ended 31 December 2022
| INCOME AND ENDOWMENTS Donations and legacies Appeals and donations Gift aid tax reclaimed Grants Other trading activities Shop income Investment income Deposit account interest Total incoming resources EXPENDITURE Other trading activities Purchases Payment processing fees Closing stock Charitable activities Wages Social security Pensions Contractors Repairs and maintenance Management fees Miscellaneous staff costs Membership and subscriptions Collection additions Software depreciation Plant and machinery depreciati on Advertising and marketing Management Rates and water Insurance Light and heat Telephone and IT Postage and stationery Advertising Carried forward |
31.12.22 £ 82,500 12,500 463 95,463 38,737 - 134,200 10,710 398 (8,049) 3,059 60,505 (13) 1,160 4,934 2,080 13,488 180 324 323 750 3,088 86,819 1,004 - 967 1,196 1,559 5,972 10,698 |
31.12.21 £ 30,142 12,500 1,790 44,432 9,566 7 54,005 5,116 - (1,000) 4,116 26,344 - - 3,278 889 2,339 - - - 750 678 34,278 - 126 95 959 763 1,954 3,897 |
|---|---|---|
This page does not form part of the statutory financial statements
Page 16
Paper Foundation
Detailed Statement of Financial Activities for the Year Ended 31 December 2022
| Detailed Statement of Financial Activities for the Year Ended 31 December 2022 |
||
|---|---|---|
| Management Brought forward Sundries Motor and travel expenses Finance Bank charges Governance costs Accountancy Legal fees Training Total resources expended Net income |
31.12.22 £ 10,698 598 2,161 13,457 - 2,159 50 204 2,413 105,748 28,452 |
31.12.21 £ 3,897 556 493 |
| 4,946 38 1,738 1,031 - |
||
| 2,769 | ||
| 46,147 | ||
| 7,858 |
This page does not form part of the statutory financial statements
Page 17