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2022-03-31-accounts

Company no. 10479711 Charity no. 1180943

The Gregynog Trust

Report and Audited Financial Statements 31 March 2022

The Gregynog Trust

Reference and administrative details

For theyear ended 31 March 2022 For theyear ended 31 March 2022
Company number 10479711
Charity number 1180943
Registered office and Gregynog Hall
operational address Tregynon
Powys
Wales
SY16 3PW
Trustees Trustees, who are also directors under company law, who served during
the year and up to the date of this report were as follows:
Carole-Anne Davies
Andrew Jedwell
Dr Janet Lewis
Professor Robert Meyrick
Simon Richards (appointed 12 April 2021)
Dr Jane Elizabeth Siberry
Head of operations and Dr Russell Roberts (appointed 27 July 2021)
programme
Bankers HSBC Bank
Queen Street
Cardiff
CF10 2PX
Solicitors Russell Cooke Solicitors
2 Putney Hill
London
SW15 6AB
Auditors Godfrey Wilson Limited
Chartered accountants and statutory auditors
5th Floor Mariner House
62 Prince Street
Bristol
BS1 4QD

1

The Gregynog Trust

Report of the trustees

For the year ended 31 March 2022

The trustees present their annual report together with the audited financial statements of the charity and group for the year 1 April 2021 to 31 March 2022.

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

Overview from the Chair of trustees

The Gregynog Trust was incorporated on 15 November 2016 as a private limited company, number 10479711. The Trust was granted charitable status by the Charity Commission on 30 November 2018; registered charity number 1180943. The transfer of the ownership, from the University of Wales to the Gregynog Trust, was completed on 21 June 2019 following complex negotiations involving the University of Wales and the Margaret Davies Charity. These financial reports therefore reflect the second year of activity of the independent Trust as owners, operators and stewards of Gregynog Hall and Estate.

The 750 acre estate includes the Grade II* listed Hall, early concrete structures, William Emes designed gardens, along with a National Nature Reserve and arboretum, Gwgia reservoir, a lake, farmland, and associated buildings, some of which also have listed status. Gregynog has a long history and is perhaps best known for its 20th century occupants, sisters Gwendoline and Margaret Davies originally of Llandinam. These two remarkable philanthropists, social entrepreneurs and renowned art collectors played a vital role in Welsh cultural, educational, and social history. Their achievements are of international significance and their former home at Gregynog is of considerable public, academic and cultural interest – continuing to inform the focus for several of the Trust’s activities in addressing its charitable purposes.

Financial reports for 1 April 2020 – 31 March 2021 reported an immensely challenging period, requiring significant strategic and operational input from trustees, particularly sharply felt between December 2020 and late spring 2021, prior to the recruitment of a new Head of Operations & Programmes, confirmed in late June 2021.

This accounting period, 1 April 2021 – 31 March 2022, was accompanied by UK wide restrictions in response to Covid-19, resulting in a significant hiatus to trading activity and development plans, restricted operations and significant staff numbers being placed on to the UK government ‘furlough’ Coronavirus Job Retention Scheme. At times, complete buildings and estate closure were required with significant human and financial resource impact.

Gregynog’s programming, accommodation, conferencing and café businesses were profoundly affected. A phased reopening only became possible in early July 2021 along with limited visits and use of the grounds. This accounting period is therefore a picture of a half year, just 8 months or so, where business activity could resume, characterised by very limited activity and the need for postponement of bookings and a return to work only under safe working conditions. It also includes a period of essential business restructuring due to the impacts noted above.

The trustees wish to record their sincere thanks once more to the then Trust Secretary, Kylie Phillips, to Michelle Williams (Interim Finance Manager), to Owen Pugh (Head of Estates and Land Management) and to Dr Russell Roberts (Head of Operations & Programme) for their commitment and resilience in immensely challenging times.

2

The Gregynog Trust

Report of the trustees

For the year ended 31 March 2022

In addition to ensuring continued sound governance, trustees provided hands on support to the small staff team. As previously reported, trustees also used the dormant periods imposed by the pandemic to assess inherited activities for their suitability and alignment to our charitable purpose, leading to the termination of sporting licenses on our land. This allowed us to realign activity with our objects and to halt the negative environmental impact on the condition and value of our designated National Nature Reserve, Sites of Special Scientific Interest (SSSI), ancient woodland and abundant species of lichen and invertebrates recognised as globally important. We were also able to pursue constructive discussions with Natural Resources Wales as support for the SSSI and Reserve to inform plans for enhancing the natural capital and biodiversity.

Closure periods allowed us to complete an extensive refurbishment of common areas and accommodation at Gregynog Hall; to review rental income from our residential properties and to fully refurbish The Warden’s House as a letting property for holiday guests or in conjunction with our conference and accommodation activities.

The period also saw the payment of monies owed to the Trust by the previous owners, University of Wales, as per the Business Transfer Agreement, including the payment of sums associated with the necessary business restructure. This follows the previous year’s achievement of commitment to payment of sums detailed in the Business Transfer Agreement related to estate watercourse liabilities and the successful transfer of the significant designated fund known as the Music Fund.

We acknowledge that the early years of our journey have been and remain challenging. However, we have been successful in maintaining income from our agricultural and residential tenancies; accommodation, conferences, and food and beverage activity which are aligned with visits to our historic buildings and grounds and which generate income directly for the Trust. Bookings affected by the public health measures have been mostly retained although deferred, and new business is forthcoming along with repeat bookings from core clients in the education, cultural, public and corporate sectors.

Trustees have assessed business in hand for the coming two years as part of their refreshed business planning, along with the likelihood of new business over the next two to five years. Similarly, we are considering our physical assets, prioritising those which may be refurbished and used for our activities, as well those which may be best disposed of, such as Bwlch Y Ffridd Lodge. We expect our refurbished café and courtyard, fully reopening in 2023 , to generate additional income and increase our audience and visitor profile.

Relationships with stakeholders, colleagues, volunteers, and long-standing supporters continue to be positive as do those with suppliers and professional advisors such as employment law and human resource providers. Partnerships including Gregynog Young Musicians, Sinfonia Cymru, Mid-Wales Opera, Quindici Choir, Montgomeryshire Beekeepers Association, the Woodland Trust, Natural Resources Wales are positive and promising.

We were successful in a bid for funding, made jointly with colleagues at Bangor University, to support a series of seminars due to begin in September 2022, examining the future of historic estates, their uses, audiences and business models. Recruitment to newly identified roles and to the new operational structure has continued and we are building a stronger team increasingly able to build our operational capabilities.

3

The Gregynog Trust

Report of the trustees

For the year ended 31 March 2022

We continue to deliver on our charitable purposes, promoting the arts, education and environment and are ever clearer in our vision to become Wales’ most welcoming home for nature and the arts, whilst reinforcing our active approach to conservation and education.

I also wish to record my sincere thanks once more to the board of trustees who have applied their time, specialist skills and expertise to the most challenging of contexts to positive effect.

Despite the challenges of our early operating years, we remain committed to the care, refurbishment and enhancement of this important historic house and working estate. Increasingly our operating environment is more stable and we continue to closely monitor financial movement and performance, budgeting, transparency of reporting and new operating procedures. Having been able to reopen in late July 2021, we are better equipped to welcome visitors, to both act as a receiving venue and to increasingly originate stimulating conferences and events for all to enjoy, offering a restorative creative environment for the enjoyment of our visitors and for the wider public benefit. We continue to offer a warm welcome to all and are confident that Gregynog will go from strength to strength as the fullest possible recovery is achieved in the coming years.

Carole-Anne Davies

Carole-Anne Davies Chair of Trustees, Gregynog Trust

19 December 2022

4

The Gregynog Trust

Report of the trustees

For the year ended 31 March 2022

Objectives and activities

a. Policies and objectives

The charitable objects of the Trust are, for the public benefit without distinction of age, race, gender or political, religious, or other opinion:

b. Strategies for achieving objectives

5

The Gregynog Trust

Report of the trustees

For the year ended 31 March 2022

c. Activities undertaken to achieve objectives

The following activities were undertaken:

Trading and income generation activities that are sustainable and minimise detrimental impacts on our natural environment and resources. Where trading activities within the Gregynog Enterprises Ltd generates profit, that is reinvested in the Gregynog Trust.

We have an Audit, Finance & Remuneration sub-committee which meets monthly to review activities and make recommendations to the board of trustees. Trading activities include accommodation for residential conference guests (including educational, corporate and leisure), food and beverage, retail, events venue hire, historic house tours, events supporting the arts, culture, music, education and conservation, and weddings and civil ceremonies. Income from the estate includes rental income from residential, commercial, and agricultural and fishing tenancies.

Access & Interpretation - We enable access to and interpretation of our assets and collections working to conserve and promote them. This includes physical display and interpretation, social media communications, engagement opportunities, concerts, musical festivals, literary festivals, local community group events and partner activity.

We provide free access to the Hall on Heritage Open Days; provide online information and resources for people to learn about the history, heritage and culture of Gregynog, and the wider richness of the cultural landscape of Wales. We provide volunteering opportunities across most of our conservation activities through a clear volunteering policy and strategy which engages members of our immediate communities. In 2022 we expect to host our first international volunteers in partnership with the Wales Centre for International Affairs.

d. Social investment policies

The Gregynog Trust has not yet considered its social investment capacity or policy. It is too early in its existence.

e. Grant-making policies

The Gregynog Trust does not make grant awards.

f. Volunteers

Promoting opportunities to volunteer across a broad spectrum of the Trust’s activities is a key policy that continues to make a tangible contribution to our work in the grounds, heritage assets and archive. The volunteering policy and statements are regularly updated along with administration associated with this area to ensure compliance with GDPR and other legislation relating to volunteering, including health & safety and risk assessments for all activities, training and recording of hours to support funding bids as recognition of matched funding and in-kind support.

g. Main activities undertaken to further the charity's purposes for the public benefit

6

The Gregynog Trust

Report of the trustees

For the year ended 31 March 2022

Achievements and performance

a. Main achievements of the charity

The transfer of ownership to the Gregynog Trust from the University of Wales in June 2019, along with coming through restrictions in 2020, and reopening as early as possible and in difficult circumstances in July 2021, were significant achievements. Essential restructuring of the business is now bearing fruit and our key partnerships with the National Museum of Wales, Sinfonia Cymru, Gregynog Young Musicians and others have been maintained and strengthened as have relationships with the university sector in particular.

b. Key performance indicators

A new and fully refined vision and business plan, brand development and marketing strategy is continuing to inform the strategic direction for the future, and introducing new income streams and programme activities generated by the Trust.

c. Review of activities (including fundraising and income generation)

During the period covered by this report new fundraising sources have been identified and our business planning reflects suitable alignment with several of these sources. Tariff reviews have also been undertaken and will be subject to review again in the next financial year.

d. Factors relevant to the achievement of objectives

Human and financial resource impact have been significant as detailed above.

As noted in the prior year report, ageing water infrastructure repairs have been carried out reducing our liabilities, and work continues for a further year, to address a significant inherited legacy. Action to secure heritage assets in terms of weather proofing and basic refurbishment allowing income generation through conference and wedding activity has been carried out as noted above. Our courtyard accommodation continues to be upgraded in terms of fixtures, fittings and service infrastructure, as does our café. We emphasise that these are stabilising, limited works ahead of larger capital fundraising exercises for the greater needs of the estate.

There is overall continued local and wider network support for the Trust's aim to enhance the heritage and cultural asset that is Gregynog. This is particularly apparent in the renewed local authority relationship at officer and political levels, through local visitor support and visits from members of the Welsh Government cabinet and of Members of the Senedd as well as local MPs.

e. Investment policy

The Trustees have the power under the Charities Act to invest surplus funds. Trading activity (through Gregynog Enterprises Ltd) results in any retained income being reinvested in the Trust. As previously stated, our wider policy will evolve as we develop our business and will focus wherever possible on ethical, environmentally beneficial investments supporting opportunities that align with our charitable purpose.

7

The Gregynog Trust

Report of the trustees

For the year ended 31 March 2022

Financial review

a. Going concern

The Gregynog Trust commenced trading on 21 June 2019 following the transfer of Gregynog Hall and Estate from the University of Wales. A trading loss was expected during transition, whilst revenue streams were established and developed however these have been further challenged by the impact of the pandemic in this and the prior accounting period.

Trustees took relevant action to ensure the completion of final accounting and the payment of restricted and unrestricted funds owed to us under the Business Transfer Agreement. We continue to operate sound financial control and monitoring with regular budgeting and cashflow production and monitoring, allowing swift action as necessary.

Trustees took action to instruct our agents to dispose of lower heritage value assets, including one residential property, to release significant capital in order to refurbish residential accommodation and property to come on stream early in 2022, contributing to income generation.

Examining the financial position, along with the value of our land and built assets, business in hand and forecast, we are confident in our assessment of going concern and continued trading. We have carefully considered the performance of Gregynog Enterprises Ltd and have made arrangements both to strengthen its governance, manage overheads and make formal arrangements for an intercompany loan agreement which gives trustees comfort in terms of the inter-company position, and allows for the company to return to a profitable position and fulfil its commitment to the charitable Trust.

For these reasons, we continue to adopt the going concern basis in preparing the financial statements for this period. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

b. Reserves policy

The group has free reserves, as at 31 March 2022, amounting to £713,576 being unrestricted current assets less current liabilities. The trustees are working to a policy of free reserves equivalent to 3 months operational expenditure to allow for variations in the timing of income flows. The trustees keep this under continual review.

c. Principal risks and uncertainties

Longer term impact of Covid-19 remains an influence and we expect rises in energy and other costs to have an impact for future years. Trustees continue to be supported by their legal advisors, Russell Cooke Solicitors, to ensure commitments under the Business Transfer Agreement are met.

Other risks include:

8

The Gregynog Trust

Report of the trustees

For the year ended 31 March 2022

c. Financial risk management objectives and policies

The principal subsidiary for the Gregynog Trust is Gregynog Enterprises Ltd.

The risk policies relating to all financial and trading activity within this company are detailed and reviewed within the audit process, and they include:

We operate a risk assessment policy across our financial and other operations using a traffic light system to assess the severity of the risk. This is raised at board meetings as regular agenda item.

Structure, governance and management

a. Constitution

The Gregynog Trust is registered as a charitable company limited by guarantee and was set up by a Trust deed. The Gregynog Trust’s objects (“Objects”) are, for the public benefit without distinction of age, race, gender or political, religious, or other opinion:

  1. to conserve, develop, maintain, and improve the natural and historical environment of Gregynog Hall and Gregynog Estate;

  2. to advance the arts, culture, and heritage;

  3. to advance education;

  4. to advance protection and improvement of the environment;

  5. to contribute to the improvement of the conditions of life for people within and beyond Wales by providing facilities in the interest of social welfare for recreation and leisure time occupation; and

  6. to further such other exclusively charitable objects as the Trust may from time to time determine.

b. Methods of appointment or election of trustees

The management of the group and the charity is the responsibility of the trustees who are elected and co-opted under the terms of the Trust deed.

c. Organisational structure and decision-making policies

The trustees are responsible for the management of the group and the charity. The trustees have appointed a Head of Operations & Programme who is supported by a relevant staff structure. Reporting lines are clear, team collaboration and commitment are highly valued. A full and regularly updated handbook of policies and procedures is in place. All staff are provided with role descriptions, appropriate contracts, and regular appraisal.

d. Policies adopted for the induction and training of trustees

New trustees are appointed on the basis of clearly outlined role descriptions and inducted as to their responsibilities by the Chair and board of trustees. Each new trustee is provided with a copy of the Charity Commission publication "The Essential trustee" and a copy of the Trust's constitution along with other relevant documents and full induction. The Trust's professional advisors also provide timely regulatory updates.

9

The Gregynog Trust

Report of the trustees

For the year ended 31 March 2022

e. Pay policy for key management personnel

All policies relating to remuneration and conditions are set out in the staff handbook and individual terms are included in staff contracts and are reviewed regularly through the Audit, Finance and Remunerations subcommittee.

f. Related party relationships

The trustees and key management personnel have completed related party, conflict of interest and register of interest declarations and these are recorded and reviewed on a regular basis as part of the audit process. All trustees and key management personnel are prompted to complete new declarations in the event of a change of circumstances.

g. Financial risk management

The trustees have assessed the major risks to which the group and the charity are exposed, in particular those related to the operations and finances of the group and the charity and are satisfied those systems and procedures are in place to mitigate exposure to the major risks.

h. Trustees' indemnities

The Trust has not taken out indemnity insurance on behalf of the trustees. Trustees act in good faith and with full awareness of collective responsible and the need to act with care, diligence and skill in the interests of the success of the business.

Plans for future periods

A new 2-5 year business plan is in progress which will reflect activities, policies, and supporting financial information to create a sustainable future for the Trust and its charitable purposes.

Statement of responsibilities of the trustees

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

The trustees are required to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and the group and the incoming resources and application of resources, including the net income or expenditure, of the charity and the group for the year. In preparing those financial statements the trustees are required to:

10

The Gregynog Trust

Report of the trustees

For the year ended 31 March 2022

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and the group and which enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

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

Members of the charity guarantee to contribute an amount not exceeding £10 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditors

Godfrey Wilson Limited were re-appointed as auditors to the group and parent charity during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 19 December 2022 and signed on their behalf by

Carole-Anne Davies

Carole-Anne Davies Chair of Trustees, Gregynog Trust

11

Independent auditors' report

To the members of

The Gregynog Trust

Opinion

We have audited the financial statements of The Gregynog Trust (the 'parent charity') and its subsidiary (the 'group') for the year ended 31 March 2022 which comprise the consolidated statement of financial activities, consolidated and parent charity balance sheets, consolidated statement of cash flows and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and the Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

12

Independent auditors' report

To the members of

The Gregynog Trust

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

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charity and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of the trustees

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

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

13

Independent auditors' report

To the members of

The Gregynog Trust

Our responsibilities for the audit of the financial statements

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

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

(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.

(2) We reviewed the charity’s policies and procedures in relation to:

(3) We inspected the minutes of trustee meetings.

(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.

(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.

(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.

(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:

▪testing the appropriateness of journal entries;

▪assessing judgements and accounting estimates for potential bias;

▪reviewing related party transactions; and

▪testing transactions that are unusual or outside the normal course of business.

14

Independent auditors' report

To the members of

The Gregynog Trust

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the charityʼs members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charityʼs members those matters we are required to state to them in an auditorʼs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed.

Alison Godfrey

Date: 19 December 2022

Alison Godfrey FCA (Senior Statutory Auditor)

For and on behalf of:

GODFREY WILSON LIMITED

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

15

The Gregynog Trust

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2022

Restricted
Unrestricted
Note
£
£
Income from:
Donations
3
-
39,991
Charitable activities
4
-
89,137
Other trading activities
5
-
286,175
Other income
6
-
112,434
Total income
-
527,737
Expenditure on:
Raising funds
-
639,675
Charitable activities
-
257,098
Total expenditure
8
-
896,773
Net expenditure
-
(369,036)
Net gains on investments
-
164
Net movement in funds
9
-
(368,872)
Reconciliation of funds:
Total funds brought forward
279,341
7,119,959
Total funds carried forward
279,341
6,751,087		 2022
Total
£
39,991
89,137
286,175
112,434
527,737
639,675
257,098
896,773
(369,036)
164
(368,872)
7,399,300
7,030,428		 2021
Total
£
655,403
101,499
64,761
4,295
825,958
598,717
287,636
886,353
(60,395)
-
(60,395)
7,459,695
7,399,300

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 25 to the accounts.

16

The Gregynog Trust

Consolidated balance sheets

As at 31 March 2022

Note
Fixed assets
Tangible assets
12
Heritage assets
13
Investments
14
Current assets
Stocks
17
Debtors due within one year
18
Debtors due after one year
18
Cash at bank and in hand
Liabilities
19
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after 1 year
20
Provisions for liabilities
22
Net assets
24
Funds
25
Restricted funds
Unrestricted funds
General funds
Total charity funds
Creditors: amounts falling due
within 1 year		 The group
2022
£
69,356
6,062,355
250,164
6,381,875
15,170
176,262
100,000
591,695
883,127
140,374
742,753
7,124,628
46,393
47,807
7,030,428
279,341
6,751,087
7,030,428		 The group The charity
2021
2022
£
£
34,951
11,391
6,062,355
6,062,355
-
250,166
6,097,306
6,323,912
16,688
-
91,453
757,904
150,000
100,000
1,213,190
536,106
1,471,331
1,394,010
119,337
59,031
1,351,994
1,334,979
7,449,300
7,658,891
50,000
39,782
-
47,807
7,399,300
7,571,302
279,341
279,341
7,119,959
7,291,961
7,399,300
7,571,302		 The charity
2021
£
15,188
6,062,355
2
6,077,545
-
482,759
150,000
1,096,894
1,729,653
66,300
1,663,353
7,740,898
50,000
-
7,690,898
279,341
7,411,557
7,690,898

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 19 December 2022 and signed on their behalf by

Carole-Anne Davies

Carole-Anne Davies - Chair

17

The Gregynog Trust

Consolidated statement of cash flows

For the year ended 31 March 2022

Cash provided by / (used in) operating activities:
Net movement in funds
Adjustments for:
Depreciation charges
Unrealised (gain) / loss
Decrease / (increase) in stock
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Increase / (decrease) in provisions
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Purchase of investments
Purchase of tangible fixed assets
Net cash provided by / (used in) investing activities
Cash flows from financing activities:
Net inflows from borrowing
Net cash provided by / (used in) financing activities
Increase / (decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Analysis of changes in net debt
At 1 April
2021
£
£
Cash
1,213,190
(621,495)
Loans falling due within 1 year
-
-
Loans falling due after 1 year
(50,000)
-
Total
1,163,190
(621,495)
Cash flows		 2022
£
(368,872)
11,124
(164)
1,518
(34,809)
17,430
47,807
(325,966)
(250,000)
(45,529)
(295,529)
-
-
(621,495)
1,213,190
591,695
£
-
(10,218)
10,218
-
Other non-
cash
movements		 2021
£
(60,395)
9,419
-
3,482
221,945
(86,221)
-
88,230
-
(18,985)
(18,985)
50,000
50,000
119,245
1,093,945
1,213,190
£
591,695
At 31 March
2022
(10,218)
(39,782)
541,695

18

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2022

1. Accounting policies

a) Basis of preparation

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

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

b) Group accounts

These financial statements consolidate the results of the charitable company and its whollyowned (controlled) subsidiary on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two companies are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

c) Going concern basis of accounting

The accounts have been prepared on the assumption that the group is able to continue as a going concern. The trustees consider this appropriate having regard to the current level of unrestricted reserves and having considered the impact of the Covid-19 pandemic on the budget and financial plans for 2022/23 and in the knowledge that refurbished properties such as the Warden’s House are generating additional income whilst Bwlch Y Ffridd Lodge has been disposed of with capital returns expected early in the next financial year. Business in hand and forecast is encouraging and reflected in business plans along with new business activity. There are close monitoring processes in place along with business plan forecasts and forthcoming changes to governance arrangements which aid the return to profitability of the trading subsidiary Gregynog Enterprises Ltd. In addition and whilst the Trust does not intend to immediately ‘call-in’ the entire amount owed to it, a formal inter-company loan agreement is now in place. Changes to operations designed to increase income generation have been put in place to positive effect and are supplemented by revised cost and overhead apportionment and control.

There are no material uncertainties about the group's ability to continue as a going concern.

19

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2022

1. Accounting policies (continued)

d) Income

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

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

Income received in advance of the provision of goods or services is deferred until criteria for income recognition are met.

e) Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item, is probable and the economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

f) Interest receivable

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

g) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.

h) Expenditure and irrecoverable VAT

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

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

20

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2022

1. Accounting policies (continued)

i) Allocation of support and governance costs

j) Tangible fixed assets

Tangible fixed assets costing £1,000 or more are capitalised and initially measured at cost (or fair value if donated).

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

Fixtures and fittings 5 years straight line Plant and equipment 3-5 years straight line Office equipment 5 years straight line

k) Heritage assets

The Trust holds and maintains a number of properties, land and a collection of chattels of historical, artistic or scientific importance. In accordance with section 34 of FRS102, heritage assets have been recognised on the balance sheet. In all cases the items have been recorded at cost at the time of acquisition, or an estimate of cost if the assets are donated. Adjustments have been made to reflect additions and disposals.

Heritage assets are not depreciated since their indefinite or long economic life and high residual value mean that any depreciation would not be material. One of the objectives of the Trust is the preservation and conservation of assets, therefore it is the Trust's responsibility to ensure that the condition of the heritage assets do not deteriorate over time.

At each reporting date, the charity assesses whether there is any indication of impairment. If such indication exists, the value of the asset is written down to its recoverable amount.

l) Listed investments

Investments held at the year end are valued at the current market value at that date. Investment income from dividends is included in incoming resources while realised and unrealised losses and gains on investments are shown separately on the statement of financial activities (SOFA). Realised gains and losses are calculated on investment disposals during the year as the difference between the opening market value and the proceeds received on sale. Unrealised gains and losses are calculated on investment holdings at the year end as the difference between the closing market value and the opening market value or purchase value during the year.

m) Investments in subsidiaries

Investments in subsidiaries are valued at cost less provision for impairment.

n) Stock

Stock is included at the lower of cost or net realisable value after making provision for obsolete and slow moving stock.

21

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2022

1. Accounting policies (continued)

o) Debtors

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

p) Cash at bank and in hand

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

q) Creditors

Creditors are recognised where there is 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 are normally recognised at their settlement amount after allowing for any trade discounts due.

r) Provisions

A provision is recognised in the balance sheet when the charity has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

s) Contingent liability

A contingent liability is a present obligation that is not recognised because it fails to meet the definition of a provision (see above). Further detail is given in note 23 to the accounts.

t) Financial instruments

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

u) Pension costs

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

v) Operating leases

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.

22

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2022

1. Accounting policies (continued)

w) Accounting estimates and key judgements

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

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

Heritage assets

As described in note 1k to the financial statements, donated heritage assets are valued at estimated cost. Due to the unique nature of heritage assets, their valuation is a key source of estimation uncertainty.

Depreciation

As described in note 1j to the financial statements, depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.

Provisions

Further detail on the provision is given in note 22. The amount provided is based on the initial estimate provided by the charity's VAT consultants, however is subject to change as further work is required in determining the exact liability due.

Contingent liabilities

Further detail on the contingent liability is given in note 23. Though there is a present obligation and the expenditure is probable, this cost has not been provided for on the basis that a reliable estimate for the cost of the remedial works has not been determined.

23

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2022

2. Prior period comparatives: statement of financial activities

Income from:
Donations
Charitable activities
Other trading activities
Other income
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net income / (expenditure) and net movement in
funds		 Restricted
£
£
279,341
376,062
-
101,499
-
64,761
-
4,295
279,341
546,617
-
598,717
-
287,636
-
886,353
279,341
(339,736)
Unrestricted		 2021
Total
£
655,403
101,499
64,761
4,295
825,958
598,717
287,636
886,353
(60,395)

24

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2022

3. Income from donations

Restricted
£
£
Donations
-
5,182
Coronavirus Job Retention Scheme
-
34,809
Total income from donations
-
39,991
Prior year comparative
Restricted
£
£
Donations
279,341
110,193
Coronavirus Job Retention Scheme
-
265,869
Total income from donations
279,341
376,062
4.
Income from charitable activities
2022
Restricted
Total
£
£
£
Estate income
-
89,137
89,137
All income from charitable activities in the prior year was unrestricted.
5.
Income from other trading activities
2022
Restricted
Total
£
£
£
-
286,175
286,175
All income from other trading activities in the prior year was unrestricted.
Unrestricted
Unrestricted
Unrestricted
Income from Gregynog Enterprises Ltd
Unrestricted		 2022
Total
£
5,182
34,809
39,991
2021
Total
£
389,534
265,869
655,403
2021
Total
£
101,499
2021
Total
£
64,761

25

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2022

6. Other income

Other income
Other income
UOW redundancy income
UOW water liability income		 Restricted
£
£
-
-
-
62,620
-
49,814
-
112,434
Unrestricted		 2022
Total
£
-
62,620
49,814
112,434		 2021
Total
£
4,295
-
-
4,295

During the year, the group received income from the University of Wales as part of the Business Transfer Agreement. £62,620 was received as a result of redundancies made by Gregynog Enterprises during the year, and represents the University of Wales' proportion of the redundancy liability relating to service prior to the transfer of staff. A further £49,814 was received from the University of Wales to cover the discharge of water liabilities outlined in the Business Transfer Agreement.

All other income in the prior year was unrestricted.

7. Government grants

The charitable company received government grants, defined as funding from the Coronavirus Job Retention Scheme (2021: Coronavirus Job Retention Scheme, Powys Council and the Cultural Recovery Fund) to fund charitable activities. The total value of such grants in the year ending 31 March 2022 was £34,809 (2021: £375,094). There are no unfulfilled conditions or contingencies attaching to these grants.

26

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2022

8. Total expenditure

Depreciation
Other staff costs
Trading purchases
Repairs and maintenance
Rates and utilities
Insurance
Marketing and
communications
Allocation of support and
governance costs
Legal and professional
Licences and subscriptions
Bank charges
Accountancy costs
Sub-total
Total expenditure
Irrecoverable VAT
Staff costs (note 10)		 Raising
funds
£
393,600
227,989
630
-
-
-
-
7,327
-
10,129
-
-
-
639,675
-
639,675		 Charitable
activities
£
79,982
-
-
2,713
31,440
32,955
29,059
3,797
-
9,286
-
-
-
189,232
67,866
257,098		 £
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
47,807
-
5,246
-
1,119
-
1,346
-
-
12,348
55,518
12,348
(55,518)
(12,348)
-
-
Support
costs
Governance
costs		 2022 Total
£
473,582
227,989
630
2,713
31,440
32,955
29,059
11,124
47,807
24,661
1,119
1,346
12,348
896,773
-
896,773

27

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2022

8. Total expenditure (continued)

Prior year comparative
Trading purchases
Total expenditure
Licences and subscriptions
Bank charges
Accountancy costs
Sub-total
Allocation of support and
governance costs
Legal and professional
Staff costs (note 10)
Other staff costs
Marketing and
communications
Depreciation
Repairs and maintenance
Rates and utilities
Insurance		 Raising
funds
£
403,580
150,355
12,500
-
-
-
-
5,622
26,660
-
-
-
598,717
-
598,717		 Charitable
activities
£
103,472
-
-
1,740
49,246
54,509
18,408
3,797
-
-
-
-
231,172
56,464
287,636		 £
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
27,717
17,875
224
-
563
-
-
10,085
28,504
27,960
(28,504)
(27,960)
-
-
Support
costs
Governance
costs		 2021 Total
£
507,052
150,355
12,500
1,740
49,246
54,509
18,408
9,419
72,252
224
563
10,085
886,353
-
886,353

28

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2022

9. Net movement in funds

This is stated after charging:

Depreciation
Operating lease payments
Trustees' remuneration
Trustees' reimbursed expenses
Auditors' remuneration:
Statutory audit		 2022
£
11,124
13,075
Nil
7,498
10,000		 2021
£
9,419
12,938
Nil
414
8,400

During the year, expenses totalling £7,498 (2021: £414) were reimbursed to 2 trustees (2021: 1 trustee) in respect of purchases made on behalf of The Gregynog Trust.

10. Staff costs and numbers

Staff costs were as follows:

Salaries and wages
Social security costs
Pension costs		 2022
£
438,839
20,207
14,536
473,582		 2021
£
460,901
31,113
15,038
507,052

Included within salaries and wages above are redundancy payments of £75k (2021: £nil).

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

£60,000 was:
2022 2021
No. No.
£70,001 - £80,000 - 1

The key management personnel of the charitable company in the current comprise the trustees, Head of Operations and Programmes, and the Finance Manager (2021: trustees, Chief Executive Officer, Finance Manager, HR & Admin Manager, System & Support Manager, Sales & Marketing Manager, Bar Manager and the Facilities & Maintenance Manager). The total employee benefits of the key management personnel were £86,225 (2021: £229,012).

The average number of employees employed by the group during the year was as follows:

Trust
Enterprises
Total		 2022
No.
2
26
28		 2021
No.
7
33
40

29

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2022

11. Taxation

12. Tangible fixed assets - group

Tangible fixed assets - group
Cost
At 1 April 2021
Additions in year
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
Tangible fixed assets - charity
Cost
At 1 April 2021
Additions in year
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 £
978
42,549
43,527
978
2,122
3,100
40,427
-
Fixtures and
fittings		 £
18,985
2,980
21,965
3,797
3,880
7,677
14,288
15,188
Plant and
equipment		 £
24,798
-
24,798
5,035
5,122
10,157
14,641
19,763
£
18,985
-
18,985
3,797
3,797
7,594
11,391
15,188
Office
equipment
Plant and
equipment		 Total
£
44,761
45,529
90,290
9,810
11,124
20,934
69,356
34,951
Total
£
18,985
-
18,985
3,797
3,797
7,594
11,391
15,188

30

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2022

13. Heritage assets - group and charity

Value
At 1 April 2021 and at 31 March 2022		 Gregynog
Hall
£
375,000		 Chattels
£
£
671,355
5,016,000
Estate land
and buildings		 Total
£
6,062,355

Gregynog Hall is a substantial mansion house dating from the 1840s. The freehold interest in the hall has been valued at the market value on the date that the asset was donated to the Trust. The valuation takes into account a cost estimate of repairs for £3,345,000 which was taken from a report prepared in 2013 which was undertaken for valuation purposes.

Chattels include a collection of fine and decorative art, furniture, musical instruments and books. These assets are of historical significance to the estate and have been valued at the market value on the date that the assets were donated to the trust. The value is intended to indicate the cost of buying the assets at auction. Gregynog Hall also cares for and securely displays assets including original works by Rodin and other renowned artists, on long-term loan from the National Museum of Wales and which the Davies sisters expressly wished to see remain at Gregynog via this arrangement. These assets have an approximate value of £1.065m. These are not recognised in the chattels valuation above.

Estate land and buildings includes 425 acres of let agricultural land together with some farm and Estate buildings, 218 acres of in hand forestry, 10 let residential properties, a commercial property on a long lease and a reservoir. The estate land and buildings have been valued at the market value on the date that the asset was donated to the Trust. This valuation is based on a valuation of the property in June 2013 updated for general changes to comparable values over the intervening period, changes of tenure or occupations, and any significant works during the period.

All of the heritage assets were gifted to the Trust for nil consideration under a transfer agreement with the University of Wales dated 21 June 2019. There have been no other additions, disposals, deprecation or impairment since the assets were gifted to the charity.

31

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2022

14. Investments - group and charity

Listed investments
Gregynog Enterprises Limited
Total investments at 31 March 2022
Listed investments:
Additions
Unrealised gains / (losses)
Market value at 31 March 2022
Historic cost		 2022
2021
£
£
250,164
-
-
-
250,164
-
2022
2021
£
£
250,000
-
164
-
250,164
-
250,000
-
The group
The group		 2022
2021
£
£
250,164
-
2
2
250,166
2
2022
2021
£
£
250,000
-
164
-
250,164
-
250,000
-
The charity
The charity		 2022
2021
£
£
250,164
-
2
2
250,166
2
2022
2021
£
£
250,000
-
164
-
250,164
-
250,000
-
The charity
The charity
-
-

Investments in subsidiaries

The investment represents 100% of the ordinary share capital of Gregynog Enterprises Limited (company number 08998400), whose principal activity is to carry out trading activities in support of the charity. A summary of the financial results and position of trading subsidiary is given in note 15.

32

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2022

15.
Investments in subsidiaries
Gregynog Enterprises Limited
Turnover
Cost of sales
Gross profit
Administrative expenses
Other operating income
Operating profit / (loss)
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities
Funds		 2022
£
282,691
(33,498)
249,193
(595,417)
96,949
(249,275)
2022
£
228,064
(768,934)
(540,870)		 2021
£
64,761
(7,038)
57,723
(552,519)
261,802
(232,994)
2021
£
181,182
(472,777)
(291,595)

16. Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

Gross income
Results for the year		 2022
£
148,096
(119,597)		 2021
£
499,395
172,599

17. Stock

The group The charity
2022 2021 2022 2021
£ £ £ £
Goods for resale 15,170 16,688 - -

33

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2022

18. Debtors

Amounts due within 1 year:
Trade debtors
Amounts owed by group undertakings
Prepayments and accrued income
Other debtors
Amounts due after 1 year:
Trade debtors
Total debtor balance
Creditors: amounts due within 1 year
Trade creditors
Accruals
Deferred income
Other taxation and social security
Loans
Other creditors		 2022
2021
£
£
109,198
39,206
-
-
63,197
34,839
3,867
17,408
176,262
91,453
100,000
150,000
276,262
241,453
2022
2021
£
£
31,676
35,606
41,630
37,622
41,702
32,137
10,132
8,612
10,218
-
5,016
5,360
140,374
119,337
The group
The group		 2022
2021
£
£
38,827
38,393
673,639
418,737
35,234
12,809
10,204
12,820
757,904
482,759
100,000
150,000
857,904
632,759
2022
2021
£
£
23,495
24,712
17,666
26,611
-
-
1,631
8,612
10,218
-
6,021
6,365
59,031
66,300
The charity
The charity		 2022
2021
£
£
38,827
38,393
673,639
418,737
35,234
12,809
10,204
12,820
757,904
482,759
100,000
150,000
857,904
632,759
2022
2021
£
£
23,495
24,712
17,666
26,611
-
-
1,631
8,612
10,218
-
6,021
6,365
59,031
66,300
The charity
The charity
66,300

19. Creditors: amounts due within 1 year

34

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2022

20. Creditors: amounts due after 1 year

Deferred income
Loans		 2022
2021
£
£
6,611
-
39,782
50,000
46,393
50,000
The group		 2022
2021
£
£
-
-
39,782
50,000
39,782
50,000
The charity		 2022
2021
£
£
-
-
39,782
50,000
39,782
50,000
The charity
50,000

The charity secured a Government backed Business Interruption Payment - Bounce Back Loan via HSBC. The loan was secured at 2.5% interest with no payments due within the first year of the loan. The loan is fully repayable within 5 years.

Deferred income
At 1 April 2021
Deferred during the year
Released during the year
At 31 March 2022		 2022
2021
£
£
32,137
81,806
48,313
32,137
(32,137)
(81,806)
48,313
32,137
The group		 2022
2021
£
£
32,137
81,806
48,313
32,137
(32,137)
(81,806)
48,313
32,137
The group
32,137

21. Deferred income

Deferred income relates to deposits for accommodation booked in advance.

22. Provisions

Provision for overclaimed VAT 2022
2021
£
£
47,807
-
The group		 2022
2021
£
£
47,807
-
The charity

During the year, the charity identified an issue with overclaimed input VAT related to exempt activities in the Gregynog Trust. An analysis of the overclaimed balance has been undertaken and the initial estimate of the VAT overclaimed at that date is £47,807. Further analysis is being undertaken to determine the exact balance overclaimed. Once this has been determined, a repayment plan will be agreed with HMRC.

23. Contingent liabilities

The charity is aware of a contingent liability related to rectification work to be undertaken on the Gwgia dam which is situated on the estate. The rectification work was identified in June 2021 and must be carried out by September 2023. The works will be funded by the charity. However, at the year end, there was no reliable estimate of the costs involved in undertaking the work. It is believed the work may cost in the region of £50-105k.

35

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2022

24. Analysis of group net assets between funds

Tangible fixed assets
Heritage assets
Investments
Current assets
Current liabilities
Non current liabilities
Net assets at 31 March 2022
Prior year comparative
Tangible fixed assets
Heritage assets
Current assets
Current liabilities
Non current liabilities
Net assets at 31 March 2021		 £
-
-
250,164
29,177
-
-
279,341
£
-
-
279,341
-
-
279,341
Restricted
funds
Restricted
funds		 £
69,356
6,062,355
-
853,950
(140,374)
(94,200)
6,751,087
£
34,951
6,062,355
1,191,990
(119,337)
(50,000)
7,119,959
Unrestricted
funds
Unrestricted
funds		 Total
funds
£
69,356
6,062,355
250,164
883,127
(140,374)
(94,200)
7,030,428
Total
funds
£
34,951
6,062,355
1,471,331
(119,337)
(50,000)
7,399,300

36

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2022

25. Movements in funds

Restricted funds
Gregynog music fund
Total restricted funds
General funds
Total unrestricted funds
Total funds
Purposes of restricted funds
Gregynog music fund
Unrestricted funds		 At 1 April
2021
£
279,341
279,341
7,119,959
7,119,959
7,399,300
The purpose		 Income
£
-
-
527,737
527,737
527,737
of the fund is		 £
£
£
-
-
279,341
-
-
279,341
(896,773)
164
6,751,087
(896,773)
164
6,751,087
(896,773)
164
7,030,428
Gains on
investments
At 31 March
2022
Expenditure
the promotion of the art and science of

The purpose of the fund is the promotion of the art and science of music and the advancement of musical education in the Principality of Wales, assisting the furtherance of courses in music and other musical activities to be carried out under the auspices of the Trustee at Gregynog Hall, in the County of Powys.

Prior year comparative
Restricted funds
Gregynog music fund
Total restricted funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds		 At 1 April
2020
£
-
-
7,459,695
7,459,695
7,459,695		 Income
£
279,341
279,341
546,617
546,617
825,958		 £
-
-
(886,353)
(886,353)
(886,353)
Expenditure		 £
£
-
279,341
-
279,341
-
7,119,959
-
7,119,959
-
7,399,300
Gains on
investments
At 31 March
2021		 £
£
-
279,341
-
279,341
-
7,119,959
-
7,119,959
-
7,399,300
Gains on
investments
At 31 March
2021
279,341
7,119,959
7,119,959
7,399,300

37

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2022

26. Operating lease commitments

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

as follows:
Amount falling due:
Within 1 year
Within 1 - 5 years		 2022
2021
£
£
17,309
15,657
31,025
42,927
48,334
58,584
The group		 2022
2021
£
£
15,657
15,657
26,621
42,927
42,278
58,584
The charity
58,584

27. Related party transactions

In accordance with FRS102, transactions with Gregynog Enterprises Limited have not been disclosed here since it is a wholly owned subsidiary of The Gregynog Trust.

The charity did not enter into any other related party transactions during the current or prior year.

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