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2023-03-31-accounts

REGISTERED COMPANY NUMBER: 10870254 (England and Wales) REGISTERED CHARITY NUMBER: 1180548

Report of the Trustees and

Unaudited Financial Statements

for the Year Ended 31 March 2023

for

Hylton Castle Trust

TTR Barnes Limited Chartered Accountants 3-5 Grange Terrace Stockton Road Sunderland Tyne & Wear SR2 7DG

Hylton Castle Trust

Contents of the Financial Statements for the year ended 31 March 2023

Page
Report of the Trustees 1 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Statement of Financial Position 6
Notes to the Financial Statements 7 to 12
Detailed Statement of Financial Activities 13 to 14

Hylton Castle Trust (Registered number: 10870254)

Report of the Trustees for the year ended 31 March 2023

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 March 2023. 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

Hylton Castle Trust exists to manage Hylton Castle and Dene on the local community's behalf. The restoration works on Hylton Castle have recently been fully completed and the castle is now open as a community-led heritage centre. Hylton Castle Trust will be working with partners to provide work placements and training opportunities for local people.The Charitable Company sees its principle objectives as:

The charitable company is also pursuing the following aims and aspirations:

Public benefit

The Trustees have had regard to the Charity Commission's guidance on their legal duty on public benefit, and are satisfied that the charitable company delivers public benefit in terms of accessibility to a site of such historical significance, and due regard is paid to the guidance on public benefit when reviewing the charitable company's aims and objectives and when deciding what new projects the charitable company should undertake.

Volunteers

To engage volunteers is essential in the continued operation of the charity and further details are provided in the Chairperson's Report.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The charitable company's main activities are:

Details of achievements is provided in the Chairperson's report

Fundraising activities

Fundraising activities are undertaken to raise funds for the continued operation of the site. Such activities include afternoon teas.

FINANCIAL REVIEW

Financial position

The surplus in the year amounted to £34,116 (2022: £7,676). Restricted fund projects achieved a surplus of £362 in the year. The general reserve stands at £43,053 (2022: £9,299). The balance of restricted reserves stands at £10,878 (2022: £10,516).

Principal funding sources

The principle funding source in the year was income from grants.

Page 1

Hylton Castle Trust (Registered number: 10870254)

Report of the Trustees for the year ended 31 March 2023

FINANCIAL REVIEW

Investment policy and objectives

Hylton Castle endeavours to retain a prudent amount in reserves each year. The majority of funds however are spent in the short term so there are few funds for long term investment.

Reserves policy

To maintain general/unrestricted funds at a level which will cover 3 months operational and salary costs as a minimum supported by funds held by Sunderland City Council on behalf of the charitable company.

Going concern

The Trustees are aware of the continued need to secure sources of funding going forward and to work towards being self-sustaining, however, they have secured grant funding via Sunderland City Council from the National Lottery Heritage Fund and English Heritage. The English Heritage funding is secured for 5 years and the National Lottery Heritage Fund grant is also secured and released quarterly based upon approved expenditure. For this reason, the Trustees consider it appropriate that these accounts are prepared on a going concern basis.

FUTURE PLANS

It is important to continue to forge and invest in strategic partnerships to ensure success, the difficult economic situation continues but the Trustees are positive and continue to strive and work towards being a self-sustaining operation.

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.

Recruitment and appointment of new trustees

The number of trustees is determined in the Company's Memorandum and Articles of Association and appointments can be made at any Board meeting, The trustees must submit themselves for re-election once every three years.

Organisational structure

The sub-group, Finance and General Purposes, authorise expenditure as a quorate group on behalf of Hylton Castle Trustees.

Induction and training of new trustees

Most trustees, (directors), are already familiar with the practical work involved in the operation of the castle and are already involved with the hosting of events.

Furthermore, any new trustees are invited and encouraged to attend a tour of the Hylton Castle site where they will be informed about:

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The board has conducted its own review of the major risks to which the charity is exposed and systems have been established to minimise those risks. External risks relate to the generation of future funding and further details are provided in the Chairman's Report.

Internal risks are minimised by the implementation of procedures for authorisation of all transactions and events and to ensure consistent quality of delivery for all operational aspects of the charity. The operations are reviewed to ensure that they still meet the needs of the charity.

Page 2

Hylton Castle Trust (Registered number: 10870254)

Report of the Trustees for the year ended 31 March 2023

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

10870254 (England and Wales)

Registered Charity number

1180548

Registered office

Winchester House Baxter Road Sunderland SR5 4LW

Trustees

Mrs S Ord R E Wilson - Retired S L Hearn - Heritage Officer C Liddle - Manager Mrs D Macknight - Councillor R Singh - Retired J Smith - Retired Cllr D Wilson - Councillor J C Wilson - Retired G K Macknight - Retired

Independent Examiner

David Cook FCCA TTR Barnes Limited Chartered Accountants 3-5 Grange Terrace Stockton Road Sunderland Tyne & Wear SR2 7DG

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 20 December 2023 and signed on its behalf by:

R E Wilson - Trustee

Page 3

Independent Examiner's Report to the Trustees of Hylton Castle Trust (Registered number: 10870254)

Independent examiner's report to the trustees of Hylton Castle Trust ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2023.

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

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

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

  1. 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

  2. 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

  3. 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.

David Cook FCCA

TTR Barnes Limited Chartered Accountants 3-5 Grange Terrace Stockton Road Sunderland Tyne & Wear SR2 7DG

21 December 2023

Page 4

Hylton Castle Trust

Statement of Financial Activities for the year ended 31 March 2023

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
11,782
Other trading activities
2
44,973
Total
56,755
EXPENDITURE ON
Raising funds
21,166
Charitable activities
Operation of Hylton Castle
1,835
Total
23,001
NET INCOME
33,754
RECONCILIATION OF FUNDS
Total funds brought forward
9,299
TOTAL FUNDS CARRIED FORWARD
43,053		 Restricted
funds
£
336,701
-
336,701
21,819
314,520
336,339
362
10,516
10,878		 2023
Total
funds
£
348,483
44,973
393,456
42,985
316,355
359,340
34,116
19,815
53,931		 2022
Total
funds
£
256,948
12,212
269,160
10,610
250,874
261,484
7,676
12,139
19,815

The notes form part of these financial statements

Page 5

Hylton Castle Trust (Registered number: 10870254)

Statement of Financial Position 31 March 2023

Unrestricted
fund
Notes
£
CURRENT ASSETS
Debtors
6
11,783
Cash at bank
33,065
44,848
CREDITORS
Amounts falling due within one year
7
(1,795)
NET CURRENT ASSETS
43,053
TOTAL ASSETS LESS CURRENT
LIABILITIES
43,053
NET ASSETS/(LIABILITIES)
43,053
FUNDS
9
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Restricted
funds
£
158,038
57,417
215,455
(204,577)
10,878
10,878
10,878		 2023
Total
funds
£
169,821
90,482
260,303
(206,372)
53,931
53,931
53,931
43,053
10,878
53,931		 2022
Total
funds
£
148,965
28,657
177,622
(157,807)
19,815
19,815
19,815
9,299
10,516
19,815

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2023 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

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 20 December 2023 and were signed on its behalf by:

R E Wilson - Trustee

The notes form part of these financial statements

Page 6

Hylton Castle Trust

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

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.

The financial statements have also been prepared on the going concern basis, which assumes that the private charitable company limited by guarantee, will continue in operational existence for the foreseeable future, which the trustees consider appropriate with the reserves available.

The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

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.

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

Interest receivable 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

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.

Raising funds

Fundraising events are held to raise funds for the operation of the charity. Such events include holding afternoon teas and Christmas activities, alongside family activities throughout the year.

Governance costs

Governance costs include the general running costs of the charity. These costs provide the governance infrastructure to allow the charity to operate and generate the information required for public accountability.

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.

continued...

Page 7

Hylton Castle Trust

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

1. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments

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

Donated goods and voluntary labour

The Charitable company is in benefit from the many hours of voluntary labour donated by its supporters in relation to the running of the site, fundraising and administration. The value of these services has not been evaluated.

Cash at bank and in hand

Cash at bank and cash in hand includes cash includes cash and short term highly liquid investments which are instantly accessible from the opening of the deposit or similar account.

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 there settlement amount after allowing for any discounts due.

Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2. OTHER TRADING ACTIVITIES

----- Start of picture text -----
|||| |---|---|---| |2023|2022| |£|£| |Fundraising events|41,096|233| |Tea Rooms|3,877|11,979| |44,973|12,212|

----- End of picture text -----

3. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

----- Start of picture text -----
|||| |---|---|---| |2023|2022| |£|£| |Other operating leases|2,600|1,524|

----- End of picture text -----

4. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.

continued...

Page 8

Hylton Castle Trust

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

5.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
1,850
Other trading activities
12,212
Total
14,062
EXPENDITURE ON
Raising funds
5,771
Charitable activities
Operation of Hylton Castle
2,192
Total
7,963
NET INCOME
6,099
RECONCILIATION OF FUNDS
Total funds brought forward
3,201
TOTAL FUNDS CARRIED FORWARD
9,300
6.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
7.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts (see note 8)
Trade creditors
Accruals and deferred income		 Restricted
funds
£
255,098
-
255,098
4,839
248,682
253,521
1,577
8,938
10,515
2023
£
169,821
2023
£
47,506
157,114
1,752
206,372		 Total
funds
£
256,948
12,212
269,160
10,610
250,874
261,484
7,676
12,139
19,815
2022
£
148,965
2022
£
-
156,056
1,751
157,807

continued...

Page 9

Hylton Castle Trust

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

8. LOANS

An analysis of the maturity of loans is given below:

Amounts falling due within one year on demand:
Bank overdrafts
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Restricted funds
Sunderland City Council
All Together Consortium
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
Restricted funds
Sunderland City Council
National Lottery Heritage Fund
English Heritage
All Together Consortium
TOTAL FUNDS		 At 1/4/22
£
9,299
10,516
-
10,516
19,815
Incoming
resources
£
56,755
146,310
151,391
25,000
14,000
336,701
393,456		 2023
2022
£
£
47,506
-
Net
movement
At
in funds
31/3/23
£
£
33,754
43,053
(10,986)
(470)
11,348
11,348
362
10,878
34,116
53,931
Resources
Movement
expended
in funds
£
£
(23,001)
33,754
(157,296)
(10,986)
(151,391)
-
(25,000)
-
(2,652)
11,348
(336,339)
362
(359,340)
34,116

9. MOVEMENT IN FUNDS

continued...

Page 10

Hylton Castle Trust

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

9. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Net Transfers Transfers
movement between At
At 1/4/21 in funds funds 31/3/22
£ £ £ £
Unrestricted funds
General fund 3,201 6,098 - 9,299
Restricted funds
Sunderland City Council 8,938 2,781 (1,203) 10,516
National Lottery Heritage Fund - (1,203) 1,203 -
8,938 1,578 - 10,516
TOTAL FUNDS 12,139 7,676 - 19,815
Comparative net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
Restricted funds
Sunderland City Council
National Lottery Heritage Fund
English Heritage
TOTAL FUNDS		 Incoming
resources
£
14,062
133,066
97,032
25,000
255,098
269,160		 Resources
Movement
expended
in funds
£
£
(7,964)
6,098
(130,285)
2,781
(98,235)
(1,203)
(25,000)
-
(253,520)
1,578
(261,484)
7,676

Sunderland City Council

Funding is received from Sunderland City Council to support the purpose of delivering the Business Plan to develop Hylton Castle into a self-sustaining heritage led visitor facility, learning/exhibition/event space and café.

National Lottery Heritage Fund

The funding secured from NLHF is delivered via Sunderland City Council and also serves the purpose of delivering the Business Plan to develop Hylton Castle into a self-sustaining heritage led visitor facility, learning/exhibition/event space and café.

English Heritage Fund

The funding secured from English Heritage is also delivered via Sunderland City Council and also serves the purpose of delivering the Business Plan to develop Hylton Castle into a self-sustaining heritage led visitor facility, learning/exhibition/event space and café.

continued...

Page 11

Hylton Castle Trust

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

10. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2023.

Page 12

Hylton Castle Trust

Detailed Statement of Financial Activities for the year ended 31 March 2023

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Rent received
NLHF
SCC
English Heritage
HAF
Other trading activities
Fundraising events
Tea Rooms
Total incoming resources
EXPENDITURE
Other trading activities
Purchases
Charitable activities
Staff costs
Rent
Rates and water
Insurance
Light and heat
Telephone
Postage and stationery
Advertising
Sundries
Security costs
Support costs
Finance
Bank charges
Information technology
Repairs and renewals
Governance costs
Accountancy
Carried forward		 2023
£
3,777
8,005
151,390
146,311
25,000
14,000
348,483
41,096
3,877
44,973
393,456
42,985
137,705
2,600
854
1,166
23,476
2,845
135
10,506
1,424
-
180,711
72
67,121
1,620
1,620		 2022
£
498
1,350
97,033
133,067
25,000
-
256,948
233
11,979
12,212
269,160
10,610
55,883
1,524
540
25
24,767
6,103
1,436
13,902
20,751
37,047
161,978
96
12,074
1,423
1,423

This page does not form part of the statutory financial statements

Page 13

Hylton Castle Trust

Detailed Statement of Financial Activities for the year ended 31 March 2023

Governance costs
Brought forward
Professional fees
Total resources expended
Net income		 2023
£
1,620
66,831
68,451
359,340
34,116		 2022
£
1,423
75,303
76,726
261,484
7,676

This page does not form part of the statutory financial statements

Page 14