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2022-12-31-accounts

REGISTERED CHARITY NUMBER: 1172919

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

THE GOWER SOCIETY

MHA Chartered Accountants 3 New Mill Court Swansea Enterprise Park Swansea SA7 9FG

THE GOWER SOCIETY

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Page
Reference and Administrative Details 1
Chairman's Report 2
Report of the Trustees 3 to 10
Independent Examiner's Report 11
Statement of Financial Activities 12
Balance Sheet 13
Notes to the Financial Statements 14 to 23
Detailed Statement of Financial Activities 24 to 25

THE GOWER SOCIETY

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2022

TRUSTEES G ap.Gwent
J E Burgess
Dr P J Padley
G R Howe
R I Bevan-Jones
T R M Methuen-Campbell
J V Tucker
E Harris
M E Ridge
V S Batcup
J McLellan
PRINCIPAL ADDRESS 4 Longfields
Bethany Lane
West Cross
Swansea
West Cross
REGISTERED CHARITY 1172919
NUMBER
INDEPENDENT EXAMINER MHA
Chartered Accountants
3 New Mill Court
Swansea Enterprise Park
Swansea
SA7 9FG
BANKERS Lloyds Bank Plc
Market Branch
802 Oxford Street
Swansea
SA1 3AP
SOLICITORS Edward Harris Solicitor
Tredegar Fawr
Llangyfelach
Swansea
SA5 7LS

Page 1

THE GOWER SOCIETY

CHAIRMAN'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

After the restrictions necessarily imposed to tackle the Covid-19 virus throughout much of 2020 and 2021, it was good to be able to welcome 2022 as a relatively 'normal' year. The Trustees, Main Committee and sub-committees could meet in person rather than holding virtual meetings. While Zoom did allow the business of the Society to continue, the medium tended to hide individual nuances and inhibit in-depth discussion.

The 'social' aspects of the Society's activities were ceased entirely. While 'social' activities are enjoyable, they are much more than that; they are means of cementing relationships between trustees and committee members and between the 'leadership' and the members of the Society. Walks and talks are an important part of encouraging an awareness and appreciation of Gower - one of the central aims of the Society. This work continued at a distance through our excellent newsletter, web-site and, increasingly, other social media.

In 2022, we were able at last to resume normal meetings. Members were glad of the opportunity to meet together and the attendance at walks, talks and folk-dancing was strong. One particularly pleasing aspect was the invigorating work of the Green Team, with talks, excursions and practical working-parties, reviving an aspect of the Society's work that had been in abeyance in recent years. The Team made a point of working with other groups and organisations, which provided positive publicity for the Society. They have also been successful in attracting new and younger members to their work and to the Society.

To highlight this new sub-committee should not detract from the very hard work of other sub-committees, which have continued their work in protecting, and enhancing Gower and educating members and the general public about the importance of this special area. The 75th anniversary group continued with its planning and by the time of this report many of you will have taken part in some of the celebratory activities.

While the world returned to normality (or some semblance of it), the financial world was increasingly volatile. The effects of Covid, the war in Ukraine, Brexit and some governmental self-inflicted injuries have taken their toll on the economy. The Society's finances are not immune to these economic factors, but our funds have stood up well and we have been able to continue to support Gower and the Society's activities as strongly as ever.

Unconnected with these factors, our independent financial advisor stepped down at the beginning of 2022 and we have been pleased to appoint Richard Streeter of Keen Investments to replace him. We look forward to working closely with him

At the AGM on 14th May 2022, Professor Prys Morgan was re-elected as the Society President He has continued to be very active in the Society's affairs and is an inspiration to us all. Other officers re-elected were Malcolm Ridge as Chairman, Jill Burgess and Guto ap Gwent as Vice-Chairs, Sarah Samuel as Secretary and Steve Williams as Treasurer. Four trustees retired by rotation: Jill Burgess, Ian Bevan Jones, Gordon Howe and Peter Padley. All four agreed to be nominated for the next three years and all were re-elected. We welcome their continued service and commitment to the work of the Society.

In December, Edward Harris stepped down from the trustees, but continues to contribute strongly to the Main Committee as well as acting for us in legal matters.

We all owe a great debt to the continuing work, time and effort put in by the Trustees, the Main Committee, the sub-committees and those who are on none of these, but still work with us. Thank you all.

Towards the end of the year the Society was nominated for a Queen's Award for Voluntary Service. A detailed submission was made and a group of members met the two Deputy Lord Lieutenants involved in the process to explain our work and answer some searching questions. The outcome won't be known until June 2023, but we feel honoured to have been nominated.

75 years is a notable landmark, but is only one more step to the future. I am confident that we are in a strong position to continue to carry on our work for very many more years to come; and to advance the ideas and ideals that were set out for us in 1948 and enshrined in our constitution.

Malcolm Ridge M.B.E.

Page 2

THE GOWER SOCIETY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees 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 Society's objectives are for the public benefit, as required by the Charities Act 2011, and are focussed on the encouragement of an appreciation and love of the Lordship of Gower and the preservation and promotion of its character, traditions, countryside and architecture, as well as its amenities. The objectives are set out in full in the Constitution which is on the Society's website and for the public benefit are:

On 9 May 2017, the Charity Commission approved the application for status as a Charitable Incorporated Organisation ('CIO'). The existing objects of the Society were reviewed and duly revised with the approval of the Charity Commission, and were duly incorporated in the new constitution of the CIO. The CIO is linked with the unincorporated charity with an effective date of 24 June 2019.

The linking of the charities does not change the separate legal status of the charities, or the nature of restricted funds or endowment, and it does not constitute a merger. The trustees are under a duty to ensure that the funds of each charity are still applied solely in accordance with the respective trusts.

Public benefit

In compliance with their duty under section 17(5) of the Charities Act 2011, the Trustees have had due regard to the guidance published by the Charity Commission regarding public benefit and they and the Society are ever mindful of the legal requirement that its purposes, i.e. its objects, must be for the public benefit pursuant to the Act, so that the public, whether local, national or international, and members and non-members of the Society benefit generally.

Page 3

THE GOWER SOCIETY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

OBJECTIVES AND ACTIVITIES, continued

Charitable activities

The Society promotes and protects Gower, namely the Lordship of Gower that includes, but extends beyond, the area that was designated for its natural beauty in 1956.

In furtherance of its aims, the Society carries out and organises a variety of pursuits and activities including participating in the work of the Local Authority, responding to consultations, scrutinising applications for planning permission for development, giving financial assistance to local or community projects and causes, organising outdoor activities for the young, leading walks, helping to maintain rights of way and pathways, issuing publications, organising folk dancing and arranging talks, all relevant to the Lordship of Gower. Its monthly talks, after a somewhat lean period, had been revived and were well attended, taking place on Friday evenings.

The giving of grants by the Society for projects and courses has continued, and details are given below and in the financial statements. Grants awarded to the Local Authority, churches and other societies and groups (£81,834), as well as individuals, have increased from the previous year (£36,152), although fewer applications were approved - 13 in 2022, compared to 31 in 2021. The Gower Seal group, the Gower Music Festival and the Gower Bovine Projects were some of the groups to benefit from the grants and projects subcommittee.

All grant applications are processed through a set procedure and have to satisfy stated criteria. No grant money is released until satisfactory completion of the object. The Society encourages, usually as a condition of the grant, the recipient to display or otherwise make public an acknowledgement of the grant from the Society.

The Society sees this branch of its activities as an important way to support the local community on Gower and at the same time to develop good relations. The protection and guardianship of Gower will in future owe much to the goodwill and support of the resident population.

The Planning Sub Committee examined the list of approximately 3,000 of the applications submitted to the City and County of Swansea and identified some 200 for a more detailed examination (mainly within and close to the AONB), roughly the same as for 2021. This involved accessing the application data on the CCS web site, checking the exact location of the proposal, seeing what it entailed, assessing its impact on the immediate and wider landscape and environment, and judging whether or not it was thought to comply with current legislation. Of these 200 closely inspected applications, 30 were considered inappropriate development and were objected to, in writing, with considered and cogent reasons for our objection. Approximately 60 further applications were commented upon. All of the Gower Society letters of objection and comment were available to the public on the CCS Planning Applications web site until the late Summer of 2022. The Planning Department took the arbitrary decision to only publish formal documents submitted by the applicant that we queried. To no avail and it is a decision taken by other authorities and it is understood to reduce the workload and legal confrontation.

The committee still conducts aerial photographic surveys biennially in order to maintain a historic record for future reference and to assist in public compliance with planning legislation. Improved satellite images are making this exercise less important. There continues to be unlawful developments (without permission) that can be made lawful by application after certain periods of time have elapsed unless the planning authority are made aware and intervene. The extent to which the public proceeds with development without permission (and knowingly) is commonplace. Assisted by the aerial surveys, the Society is able to identify potential unauthorised developments many of which cannot be seen from places accessible to the public and it notifies the planning authority, which sometimes is slow to respond. It has to be pointed out that the Auditor General for Wales issued a report in June 2019 concluding that planning services in Wales are under resourced and underperforming. The report shows that planning services have seen budget cuts of 50% in real terms over the last ten years, whilst the number of planning applications remains broadly the same.

Page 4

THE GOWER SOCIETY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

OBJECTIVES AND ACTIVITIES, continued

Therefore, one difficulty facing the planning authority is insufficient manpower to investigate alleged breaches. However, it remains important for the Society to report all developments that appear to be unlawful. The Society has at least 35 outstanding enforcement claims that it continues to press Senior Management on. There are two serious planning infringements ongoing. The unlawful felling of trees in the woods at Carters ford and the construction of four chalets without planning permission at Landimore.

The Society is making increasing use of experts (counsel and consultants), because of the complicated nature of the planning cases and the consequences should they proceed unopposed. The Society is very fortunate that one of its main committee members is a solicitor with considerable experience and knowledge in the law relating to commons, of which there are several in the Lordship, and are the subject of applications for permission to exchange parts of common land for unregistered land to enable the common land to be developed. We have two current ongoing conflicts with encroachment onto common land.

The Society makes Design Awards for special developments that are sympathetic to their environment, usually comply with the Authority's Design Guide and have been completed to a high standard.

Youth field activities continue to introduce children of both members and non-members, as well as schools, both rural and urban, to the outdoors.

The Society has representation on Gower AONB Management Committee, Gower AONB Partnership Group, Gower AONB Management and Review Group, Dark Sky Gower Working Group, Swansea Rural Development Strategy Local Action Group, HLF Landscape Partnership Board and the Alliance for Welsh Designated Landscapes. It also works closely with the National Trust and the Wildlife Trust of South and West Wales.

Publications

A new book Gower Coast and Country Walks was published early in the year and Gower 73 was published in October. Both were very well received, and publications sales were strong during the year. Work started on a new book to be published in 2023, celebrating the 75[th] anniversary of the Society. The twice-yearly newsletter continues to a very high standard and is warmly welcomed by members.

Communications

In the last twelve months we have focused on producing a variety of ‘Posts’ which are then put on the Society's different platforms. The greatest interaction is on the Instagram site and with the use of show reels, we have gained over 100 followers and our videos have been shared and watched over 20,000 times. Over 11,000 new people have been engaging with our pages, often from a wider demographic than our typical member.

Because the show reels have increased our overall engagement, upcoming events will increase using this method of communication. Our membership grew in 2022 to 1,600 members. The use of our local Newspaper is also a key feature when making specific highlights, and events.

Green Team

The Green Team has continued its focus on the natural environment of Gower, but post-Covid, with a more practical approach. It has arranged a number of talks on features of Gower’s natural history and visits to habitats of particular interest in the area. Woodland has been an important focus, with cooperation with Coeden Fach nursery, encouraging tree-planting and surveying ancient woodlands. Practical work has included footpath clearance, litter-picking and beach cleans.

Page 5

THE GOWER SOCIETY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

FINANCIAL REVIEW

Financial position

The bulk of the Society's income is derived from the funds held with Cazenove Capital, Quilter Cheviot, M&G and a 'life' interest in the Phillip Beynon Trust, the latter being created in 1998 and controlled by HSBC. These investments have been chosen for their potential for both capital growth and income production.

Other investments were with Fundsmith Equity and Lindsell Train, solely for capital growth.

It was pleasing to note that membership subscriptions increased to £16,900, from £15,512 in 2021 and Publication Sales to £6,150 from £4,964. The Society has a far greater number of followers than members. The membership subscription is modest at £20 a year although a sizeable proportion of members have not increased their bank standing order amount from the previous sum in spite of being requested to do so.

Overall income increased by £15,796 and expenditure by £40,848 in line with budgeted expectations. The Society’s main expenditure relates to grant and costs associated with planning decisions. These activities have both been explained in more details on the previous section.

The decrease in the fixed asset investments was £294,727. In 2021 the increase was £192,019.

At the balance sheet date, the Society held net assets of £2,986,278 of which £2,730,294 were held in long term or medium term investments.

Principal funding sources

Other than membership subscriptions and returns on the investments held, the sum of £101,500 was received in legacies during 2022.

Reserves policy

The Trustees have taken the decision to maintain a relatively high level of investments together with a substantial amount in reserve so that the Society can carry out its primary mission of 'Guarding Gower for all its worth'. To this end, a specific reserves policy was approved by the main committee in 2013 and this outlined strategies for the short, medium and long term in relation to the assets of the Society. The policy was reviewed in November 2018, so that the sum £770,000 (Quilters) is considered to be a medium-term reserve, is indexed up for inflation and the long-term reserve, £340,000 (M&G and others) is for capital growth. Such growth above inflation is intended to supplement payment of expenditure. The Gorvin Fund was subsequently created with Cazenove Capital and together with the Quilter Cheviot portfolio are to generate income and maintaining their value at least in real terms. Both are at medium risk tolerance.

The Fundsmith Equity and Lindsell Train investments are also at medium risk tolerance, but the risk level of the M&G Fund which has been held for several years, is higher at 5/6. The latter is subject to volatility greater than the other investments, but over the years it has performed well and it gives a strong dividend.

With regard to the Gorvin Fund, the Board resolved a discrete further policy, namely that: 'capital can be applied to an exceptional/outstanding project in furtherance of the preservation, conservation and enhancement of the physical and natural environment of the Lordship of Gower that is either (1) for the acquisition of property in which The Gower Society has a legal interest or (2) is enduring’.

The late Mrs Gorvin expressed in her will the wish that the legacy be held for general purposes and her executors have confirmed agreement with this policy.

Funds in deficit

There are no such funds.

Page 6

THE GOWER SOCIETY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Structure

The Society is an incorporated charity which had been registered on the 9 May 2017 under Charity Registered Number 1172919. The unincorporated charity (number 258372) has remained in existence in order that any legacies left to The Gower Society in wills by reference to its old charity number be transferred over from the old to the new charity. This would avoid the need for the permission of the Court to apply the legacy for the benefit of the incorporated charity rather than the risk of the gift lapsing or being paid to some other charity with similar objects. The two charities have formally been linked by the Commission not merely by the same name, The Gower Society, but through their objects being identical and the trustees of the incorporated charity being the trustees of the old charity.

Governance

Until the 20 August 2019, the Society was governed and managed by the officers and Main Committee of the old charity, but during that time, the Committee and the Board of Trustees of the incorporated charity had approved papers that set out the matters reserved for the Board and defined the structure of the Committees of the new incorporated charity and their relationship with the Board. Further to a provision in the constitution of the incorporated charity, the Board invited the members of the old Main Committee to be members of the new committee to run the day to day affairs of the Society. They duly agreed and In January 2020 the Board formally appointed them as the members of the new Main Committee and approved its terms of reference and those of all the sub committees.

The governance of The Society became vested in the Board of Trustees, who had been appointed in previous general meetings of the Society. They became responsible for regulation and control, appointment of the Main Committee, strategic and budgetary matters, policies, audit, reporting and monitoring.

The offices, namely the Chairman, two Vice Chairmen, Secretary and Treasurer, as well as the trustees, are appointed by the members in the Annual General Meeting. The Secretary and Treasurer are remunerated.

The constitution requires there must be at least six trustees, which shall include the officers, and be elected at the Annual General Meeting to a maximum of 12. The Secretary and Treasurer have declined trusteeship so to maintain their independence. At the beginning of the year, there were eight trustees, two additional trustees had been co-opted in April and were formally appointed trustees at the Annual General Meeting on the 24 October 2021. The Board has approved a code of conduct for trustees, and all trustees attended a training seminar for trustees in the year. They also approved a conflict of interest policy.

Management

The Society is administered and managed by the new main committee in which are vested the same responsibilities as under the old charity, save for the said governance matters. These responsibilities include dealing with grants, considering planning applications and alleged breaches, publications, communications and youth activities through their respective Sub Committees. The minutes of their meetings are considered by the Board and vice versa.

The Secretary of the Society is also secretary to the Committees and is remunerated.

The constitution requires that the Committee to which the Trustees may delegate any of their powers or functions must consist of between 10 and 20 persons. Active Trustees may also be Committee members, however the maximum number of active Trustees sitting on the Committee is limited to half of the total number of active Trustees. There are currently 12 Committee members, including 5 Trustees.

Page 7

THE GOWER SOCIETY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT, continued

Committees

As explained above, prior to the transfer of assets on the 20 August 2019, the governance and management of the Society was vested in the officers and Main Committee of the old unincorporated charity through which the Society operated. The Board of the new incorporated charity since its inception had met on a regular basis dealing with matters of policy and finance in anticipation of the transfer, so that the new charity would be in a position to operate effectively when it had responsible for the affairs of the Society.

The Committee members of the old charity who had responsibility for the management of the affairs of the Society were:

G ap Gwent Chairman
G Howe Vice Chairman
S Williams Treasurer
S Samuel Secretary
R Callaway Committee member
H Evans Committee member
T Methuen-Campbell Committee member
J Burgess Committee member
M Dobbins Committee member
E Harris Committee member
J Hellewell Committee member
G Morgan Committee member
P Padley Committee member
H Roberts Committee member
N Barrow Committee member

Page 8

THE GOWER SOCIETY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT, continued

Sub-Committees

The Committee was assisted in its administrative work by the following sub-committees:

Communications J Burgess
Youth C Jones, J Darbyshire, J Hellewell, J Sherrard-Smith, D Thomas
Planning G Howe, G ap Gwent, M Dobbins, P Padley, G Davies, P Burgess, R Kirby,
T Methuen Campbell, S Samuel.
Grants & projects G ap Gwent, G Howe, M Dobbins, J Hellewell, G Morgan, L Roblin, S Samuel.
Publications R Cooper, H Roberts, M ap Gwent, A Dulley, S Samuel, P Douglas-Jones,
M Ridge, R Ridge, J Sherrard-Smith.
Green Team R Callaway, J Burgess, L Roblin, S Samuel, R Ridge, M Ridge, H Roberts,
J Darbyshire, J Hellewell, G ap Gwent, D Thomas
Groups
The Committee was also assisted by the following groups:
Membership: H Roberts
Website: J Burgess
Programme: J Probert (talks), A Clarkson (walks), D Thomas (youth), G Birt (folk dancing),
R Probert (compilation of Programme).

Board

The Board members of the charity having responsibility for the governance of the affairs of the Society are:

M E Ridge Chairman
G R ap Gwent Vice Chairman
J Burgess Vice Chairman
R I Bevan-Jones Trustee
V S Batcup Trustee
E K Harris Trustee
G R Howe Trustee
T R M Methuen-Campbell Trustee
Dr P J Padley Trustee
J V Tucker Trustee
J McLellan Trustee

Risk management

The principal risks faced by the Society lie in the performance of investments and operational risks from grant making. The Trustees consider variability of investment returns on its invested capital (it does not hold land) to constitute its major financial risk. This is mitigated by retaining an independent financial advisor who meets the Board every six months. It is further mitigated by the two major investment funds, Cazenove Capital and Quilter Cheviot, comprising 86% of total investments, are portfolios with wide ranges of assets managed by those reputable bodies.

The Society's financial activities are undertaken in accordance with its Financial Procedures Manual which was implemented in March 2018.

In January 2017, the Main Committee of the old charity approved a revised policy relating to the short, medium and long term reserves that the annual budget must ensure preservation of its core capital comprising the initial investment of £750,000 (indexed up in line with the increases in the Retail Prices Index), an amount of £340,000 allocated for capital growth to fund future capital projects, and cash of £170,000 for working capital and grants.

An updated financial Procedures manual is currently being produced in assistance with the newly appointed IFA.

Page 9

THE GOWER SOCIETY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT, continued

Future

The strategic plan approved in 2021, recites three core objectives:

Regarding those areas, there has been some progress:

Therefore, there has been progress towards achieving the core objectives set out in the strategic plan, but mixed progress.

Apart from incorporation giving trustees protection from personal liability on behalf of the Society for any claims, it has resulted in the division of the roles of governance and management between a Board of Trustees and a Main Committee. Therefore, accountability and supervision are more secured and the workload now shared. This should also improve recruitment, giving the choice in becoming a trustee or a committee member.

Approved by order of the board of trustees on 20/05/2023 and signed on its behalf by:

M E Ridge - Trustee

Page 10

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE GOWER SOCIETY

Independent examiner's report to the trustees of The Gower Society

I report to the charity trustees on my examination of the accounts of The Gower Society (the Trust) for the year ended 31 December 2022.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under Section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Trust as required by Section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.

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.

R Doyle Institute of Chartered Accountants in England and Wales MHA Chartered Accountants 3 New Mill Court Swansea Enterprise Park Swansea SA7 9FG

Date: 20/05/2023

Page 11

THE GOWER SOCIETY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable Activities
3
Investment Income
4
Total
EXPENDITURE ON
Charitable activities
5
Raising funds
Supporting costs
7
Total
Net gains/(losses) on investments
13
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
18
TOTAL FUNDS CARRIED FORWARD
18		 Unrestricted
funds
£
101,720
23,050
87,711
212,481
123,968
-
18,990
142,958
(294,727)
(225,204)
3,211,482
2,986,278
Restricted
fund
£
-
-
-
-
-
-
-
-
-
-
-
-		 2022

Total
funds
£
101,720
23,050
87,711
212,481
123,968
-
18,990
142,958
(294,727)
(225,204)
3,211,482
2,986,278		 2021
Total
funds
£
2,040
20,476
74,669
97,185
79,083
3,000
20,027
102,110
192,019
187,094
3,024,388
3,211,482

Page 12

THE GOWER SOCIETY

BALANCE SHEET 31 DECEMBER 2022

Notes
FIXED ASSETS
Tangible assets
12
Investments
13
CURRENT ASSETS
Stocks
14
Debtors
15
Investments
16
Cash at bank
CREDITORS
Amounts falling due within one year
17
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
18
Unrestricted funds
TOTAL FUNDS		 Unrestricted
funds
£
888
2,730,294
2,731,182
3,652
20,387
13,347
284,068
321,454
(66,358)
255,096
2,986,278
2,986,278
Restricted
fund
£
-
-
-
-
-
-
-
-
-
-
-
-		 2022

Total
funds
£
888
2,730,294
2,731,182
3,652
20,387
13,347
284,068
321,454
(66,358)
255,096
2,986,278
2,986,278
2,986,278
2,986,278		 2021
Total
funds
£
813
3,025,020
3,025,833
3,803
14,966
13,336
209,450
241,556
(55,907)
185,649
3,211,482
3,211,482
3,211,482
3,211,482

The financial statements were approved by the Board of Trustees and authorised for issue on 20/05/2023 and were signed on its behalf by:

M E Ridge - Trustee

Page 13

THE GOWER SOCIETY 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 charity, 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 Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern and on that basis, the financial statements are prepared on a going concern basis.

The presentation currency of these financial statements is the Pound Sterling (£).

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern and on that basis, the financial statements are prepared on a going concern basis.

Significant judgements and estimates

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

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

The following are the critical judgements that the trustees have made in the process of applying the charity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Impairment of assets

Assets are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Financial Activities.

The carrying value of stock at the year end is net of stock provisions of £15,830 (2021: £16,151).

Provisions and contingencies

Provisions are recognised when the charity has a present obligation as a result of a past event and a reliable estimate can be made of a probable adverse outcome. Otherwise, material contingent liabilities are disclosed unless a transfer of economic benefits is considered remote. Contingent assets are only disclosed if an inflow of economic benefits is probable.

Page 14

THE GOWER SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES - continued

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.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Gifts in kind are recognised in the Statement of Financial Activities on distribution with an equivalent amount being included as resources expended to reflect its distribution. Gifts in kind are valued based on the amount realised on sale.

Membership fees are recognised on a received basis.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Investment income is recognised when receivable and is included in the financial statements net of investment management fees, which are deducted at source.

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 costs 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.

Grants payable are payments made to third parties in the furtherance of the charitable objects of the charity. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. Grant awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the charity.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Costs of raising funds

The costs of generating funds consist of investment management costs and certain legal fees.

Charitable activities

Costs of charitable activities include grants made and governance costs.

Page 15

THE GOWER SOCIETY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES - continued

Governance costs

Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs included costs relating to examination fees, treasurer costs and legal fees.

Tangible fixed assets

Fixed assets costing £100 or more are capitalised and stated at cost less accumulated depreciation, calculated so as to write off their cost less any residual value over their expected useful lives.

Depreciation is provided at the following annual rates:

Fixtures and fittings - 25% straight line

Fixed asset investments

Investments are a form of financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

All gains and losses are taken to the Statement of Financial Activities as they arise.

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 tax on its charitable activities. Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

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.

Designated funds are unrestricted funds ring fenced by the trustees of the charity for a specific purpose.

Donated goods and services

Donated goods or services or facilities are recognised as income and expenditure when the benefit to the charity can be reasonably quantified or measured and is consider material to the charity.

Philip Beynon Trust income

The society is a beneficiary under the above trust. It is entitled to receive one half of the income from the Trust in perpetuity given in memory of Henry and Gertrude Pine Beynon. However it has no power to direct the investment of the Trust assets which are vested in HSBC Trust Company (UK) Limited.

Page 16

THE GOWER SOCIETY NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES - continued

Cash at bank and current asset investments

Cash at bank and in hand is held to meet short-term cash commitments as they fall due and includes all cash equivalents held in the form of short-term highly liquid investments. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value. A cash equivalent will normally have a short maturity of, say, three months or less from the date of acquisition.

Current asset investments are investments which a charity holds for resale or pending their sale and cash or cash equivalents with a maturity date of less than one year. This heading includes cash on deposit and cash equivalents with a maturity of less than one year held for investment purposes rather than to meet short-term cash commitments as they fall due.

Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recorded at transaction value and subsequently measured at their fair value. Changes in fair value are recognised in the statement of financial activities, net of investment management fees.

2. DONATIONS AND LEGACIES

Donations
Legacies
3.
CHARITABLE ACTIVITIES
Member subscriptions
Publications
4.
INVESTMENT INCOME
Income from listed investments
Deposit account interest
P Beynon Trust Income		 2022
£
220
101,500
101,720
2022
£
16,900
6,150
23,050
2022
£
70,198
20
17,492
87,710		 2021
£
40
2,000
2,040
2021
£
15,512
4,964
20,476
2021
£
59,729
519
14,421
74,669

Page 17

THE GOWER SOCIETY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

5.
CHARITABLE ACTIVITIES COSTS
Charitable activity expenditure
6.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Insurance
Postage and stationery
Advertising
Website costs
Rent
Sundries
Publications
Grants
Gower show expenses
Subscriptions
Planning permission consultancy costs
Depreciation
7.
SUPPORT COSTS
Charitable activity expenditure
Support costs, included in the above, are as follows:
Finance
Bank charges
Loss on sale of tangible fixed assets		 Direct
Support
Costs (see
costs (see
note 6)
note 7)
£
£
123,968
18,990
123,968
18,990
2022
£
7,543
4,288
2,816
-
1,370
6,457
13,345
81,834
3,578
280
2,076
382
123,968
Governance
Finance
costs
£
£
270
18,720
2022
£
269
1
270		 Totals
£
142,958
142,958
2021
£
6,902
6,371
-
3,937
1,440
1,846
7,061
36,152
-
343
14,762
269
79,083
Totals
£
18,990
2021
£
94
-
94		 Totals
£
142,958
142,958
2021
£
6,902
6,371
-
3,937
1,440
1,846
7,061
36,152
-
343
14,762
269
79,083
Totals
£
18,990
2021
£
94
-
94

Page 18

THE GOWER SOCIETY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

7. SUPPORT COSTS - continued Governance costs

Secretary’s fees
Treasurer fees
Independent Examiner’s fees		 2022
£
6,000
9,600
3,120
18,720		 2021
£
5,638
11,055
3,240
19,933

8. TRUSTEES' REMUNERATION AND BENEFITS

The trustees all give freely their time and expertise without any form of remuneration or other benefit in cash or kind (2021 - £nil).

Trustees' expenses

During the year, the trustees received £978 in respect of reimbursed travel and office costs incurred on behalf of the charity (2021 - £1,036). The number of trustees who claimed expenses in the year was 3 (2021 - 4).

9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable Activities
Investment Income
Total
EXPENDITURE ON
Charitable activities
Raising funds
Supporting costs
Total
Net gains on investments
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
2,040
20,476
74,669
97,185
79,083
3,000
20,027
102,110
192,019
187,094
3,024,388
3,211,482
Restricted
fund
£
-
-
-
-
-
-
-
-
-
-
-
Total
funds
£
2,040
20,476
74,669
97,185
79,083
3,000
20,027
102,110
192,019
187,094
3,024,388
3,211,482

Page 19

THE GOWER SOCIETY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

10. GRANTS

During the year the charity awarded grants to the following types of organisation all of which are based or operate in Gower.

Schools
Churches and parishes
Other societies and groups
Miscellaneous		 2022
£
4,739
133
64,688
12,274
81,834		 2021
£
3,988
-
27,892
4,272
36,152

11. VOLUNTEERS

The value of volunteers' time given within the year is estimated with reference to the recorded number of volunteer hours multiplied by the estimated hourly rate that an employee would have been paid for carrying out the service. The quantified benefit to the charity for volunteers' time was in the region of £33,750 (2021 - £33,750), given that an estimated 4,500 (2021 - 4,500) hours were estimated as being spent. This amount has not been recognised in the accounts.

12. TANGIBLE FIXED ASSETS

Fixtures
Plant and
and
machinery
fittings
£
£
COST
At 1 January 2022
407
8,123
Additions
457
-
Disposals
(407)
-
At 31 December 2022
457
8,123
DEPRECIATION
At 1 January 2022
406
7,310
Charge for year
114
268
Eliminated on disposal
(406)
-
At 31 December 2022
114
7,578
NET BOOK VALUE
At 31 December 2022
343
545
At 31 December 2021
1
813		 Totals
£
8,530
457
(407)
8,580
7,716
382
(406)
7,692
888
814

Page 20

THE GOWER SOCIETY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

13. FIXED ASSET INVESTMENTS

MARKET VALUE
At 1 January 2022
Impairments
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021		 Listed
investments
£
3,025,020
(294,726)
2,730,294
2,730,294
3,025,020

There were no investment assets outside the UK.

M & G Charifund
Cazenove capital - John Henry Gorvin
Fund
Fundsmith Equity Account
Lindsell Train Global Equity
Quilter Cheviot portfolio
Quilter Cheviot – John Henry Gorvin
Fund		 2022
Cost
£
136,842
1,347,500
54,500
54,500
750,000
201,159
2,544,501		 2022
Fair value
£
219,925
1,372,609
96,840
87,146
772,713
181,062
2,730,294		 2021
Cost
£
136,842
1,347,500
54,500
54,500
750,000
201,159
2,544,501		 2021
Fair value
£
232,897
1,462,881
106,534
89,406
911,705
221,598
3,025,021

All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in either quoted public markets, primarily the London Stock Exchange, or are otherwise held in assets in actively traded markets. Holdings in common investment funds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value for investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).

The change in the value of listed investments is net of any costs of that investment.

14.
STOCKS
Stocks		 2022
£
3,652		 2021
£
3,803

Page 21

THE GOWER SOCIETY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Other debtors
Prepayments
16.
CURRENT ASSET INVESTMENTS
Cash on deposit
17.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Accruals and grants payable		 2022
£
146
16,380
3,861
20,387
2022
£
13,347
2022
£
4,559
61,800
66,359		 2021
£
447
11,010
3,509
14,966
2021
£
13,336
2021
£
2,230
53,677
55,907

Accruals and grants payable include grants payable of £51,497 (2021: £42,592).

18.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
In memory of Dr J H Gorvin
TOTAL FUNDS
Net movement in funds, included in the above
Unrestricted funds
General fund
In memory of Dr J H Gorvin
TOTAL FUNDS		 At 1/1/22
£
1,456,943
1,754,539
3,211,482
are as follows:
Incoming
Resources
resources
expended
£
£
168,472
(142,958)
44,008
-
212,480
(142,958)		 Net
movement
in funds
£
(138,405)
(86,800)
(225,204)
Gains and
losses
£
(163,919)
(130,808)
(294,727)
At

31/12/22
£
1,318,538
1,667,739
2,986,278

Movement
in funds
£
(138,405)
(86,800)
(225,204)

Page 22

THE GOWER SOCIETY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

19. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
In memory of Dr J H Gorvin
TOTAL FUNDS		 Net
movement
At 1/1/21
in funds
£
£
1,399,165
57,777
1,625,223
129,316
3,024,388
187,094		 At
31/12/21
£
1,456,943
1,754,539
3,211,482

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
In memory of Dr J H Gorvin
TOTAL FUNDS		 Incoming
resources
£
63,244
33,941
97,185
97,185		 Resources
expended
£
(102,110)
-
(102,110)
(102,110)		 Gains and
Movement
losses
in funds
£
£
192,019
153,153
-
33,941
192,019
187,094
192,019
187,094

20. RELATED PARTY DISCLOSURES

During the year, the charity incurred £9,600 (2021 - £11,055) in relation to services provided by the Treasurer.

The charity also paid £756 (2021: £2,104) to Edward Harris Law, a solicitors' firm controlled by E K Harris, trustee.

21. POST BALANCE SHEET EVENTS

Investment assets have increased in value since the Balance Sheet date. The latest investment report shows an increase in market value of £139,521 as at 31st March 2023.

A final legacy amount from the Patricia Gorman Estate was received with a value of £47,213.

Page 23

THE GOWER SOCIETY

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

INCOME AND ENDOWMENTS
Donations and legacies
Member subscriptions
Donations
Legacies
Investment income
Income from listed investments
Deposit account interest
P Beynon Trust Income
Charitable activities
Publications
Total incoming resources
EXPENDITURE
Raising donations and legacies
Insurance
Advertising
Rent
Charitable activities
Postage and stationery
Sundries
Publications
Grants
Projects
Gower show expenses
Subscriptions
Legal fees
Fixtures and fittings
Support costs
Finance
Bank charges
Loss on sale of tangible fixed assets		 2022
£
16,900
220
101,500
118,620
70,198
20
17,492
87,711
6,150
212,481
7,543
2,816
1,370
11,729
4,288
6,457
13,345
38,414
43,419
3,578
280
2,076
382
112,239
269
1
270		 2021
£
15,512
40
2,000
17,552
59,729
519
14,421
74,669
4,964
97,185
6,902
3,937
1,440
12,279
6,370
1,846
7,061
20,053
16,100
-
343
14,762
269
66,804
94
-
94

Page 24

THE GOWER SOCIETY

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

Governance costs
Legal fees and investment advice
Treasurer fees
Accountancy and treasury costs
Total resources expended
Net income/(expenditure) before gains
and losses
Recognised gains/losses
Gains/(losses) on fixed asset investments
Net (expenditure)/income		 2022
£
6,000
9,600
3,120
18,720
142,958
69,523
(294,727)
(225,204)		 2021
£
8,638
11,055
3,240
22,933
102,110
(4,925)
192,019
187,094

Page 25