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2023-03-31-accounts

Company no. 10479711 Charity no. 1180943

The Gregynog Trust

Report and Audited Financial Statements 31 March 2023

The Gregynog Trust

Reference and administrative details

For the year ended 31 March 2023 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 Dr Jane Elizabeth Siberry Head of Operations and Dr Russell Roberts (Resigned 27 February 2023) Programmes Interim Chief Executive David Chell (Appointed 14 August 2023) 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

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The Gregynog Trust

Report of the trustees

For the year ended 31 March 2023

The Trustees present their annual report together with the audited financial statements of the Charity for the year 01 April 2022 to 31 March 2023.

Reference and administrative information set out on page 1 forms part of this report. The annual report serves the purpose of both a Trustees' report and a directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland.

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 Davies Charity. The Trust’s first full trading periods of 2020/21 and 2021/22 were seriously affected by pandemic conditions and business restructuring, as reflected in previous year end reports and financial statements.

The 750 acre Gregynog estate includes the Grade II listed Hall, early concrete structures, Grade I listed William Emes designed gardens, along with a National Nature Reserve, Sites of Specialist Scientific Interest (SSSI) 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 association with 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 objects and purposes.

Previous financial reports have reflected immensely challenging periods, requiring significant strategic and operational input from Trustees, up to and including the recruitment of a new Head of Operations & Programmes, confirmed in late June 2021 and a phased post-covid reopening from July 2021.

The prior accounting period therefore reflected just 8 months when 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 included a period of essential business restructuring due to the impacts noted above.

2

The Gregynog Trust

Report of the trustees

For the year ended 31 March 2023

In this accounting period 01 April 2022 – 31 March 2023 some areas have been stabilised and others have presented fresh challenges. Trustees acted with regard to governance arrangements, informed by legal advice as to Gregynog Enterprises Ltd (GE Ltd) structure and existing directors’ roles. Appropriate resolutions were made and recorded at board meetings, in relation to the board of the trading company, GE Ltd, and in 2022/23 the Trust advertised openly for new non-executive directors to GE Ltd. Limited response at the time saw this recruitment campaign subsequently placed in the hands of specialist recruitment advisors. Following the resignation of the Head of Operations tendered in autumn 2022, the Trust also experienced a prolonged and challenging recruitment period from January 2023 resulting in the need for Trustees to provide strategic, governance and hands on support to the small staff team. Appointing recruitment specialists has been necessary to assist with the challenge of finding a suitably skilled Chief Executive and, in tandem, reinvigorating the search for non-executive directors of GE Ltd.

As noted above the Trust has actioned towards strengthening the governance arrangements of GE Ltd and put in place a formal inter-company loan agreement which sees the company regularly make payments towards its debt to the Trust. We expect new directors to be appointed in the coming financial year and to assist a return to profitability. Meanwhile, Trustees have committed to work with GE Ltd to reach an agreed increase in monthly payments and a lump sum to be paid over, towards the debt. Trustees are mindful that sufficient working capital must remain available to GE Ltd. In the new financial year an agreement will be settled as to amounts both for the lump sum and increased monthly payments.

As noted in the prior year Trustees are committed to resolving historic VAT items and to clarifying advice previously received. The Trust commissioned Centurion specialists in this area to identify, quantify and subsequently to make relevant adjustments. We expect some work still to be in hand at the close of this financial year.

New arrangements are being made in relation to the designated National Nature Reserve, SSSI, ancient woodland and abundant species of lichen and invertebrates recognised as globally important. Constructive discussions continue with Natural Resources Wales (NRW) as to support for the SSSI and Reserve, and with the Woodland Trust, governed significantly by the NRW timetable but now bearing fruit.

The Warden’s House a newly refurbished letting property was badly damaged on 17 December 2022 with prolonged freezing weather conditions causing water pipe and tank damage which led to extensive flood damage. The property has therefore not been available for use and forecasted income reflected in budgets could not be realised. Lengthy insurance processes mean that settlement will not be reached before the end of this accounting period. The new contractor is scheduled for November 2023 with a view to the property being available for letting in early spring 2024.

The period also saw the continued payment of capitalisation monies to the Trust, due as per the Business Transfer Agreement terms set out for the previous owners, University of Wales.

We acknowledge that our journey remains challenging and that the entire estate that was inherited has significant refurbishment needs due to a previous lack of maintenance and repair. However, we continue to generate and maintain income from agricultural and residential tenancies; accommodation, conferences, café and food and beverage activity which are aligned with visits to our historic buildings and grounds, and which generate income directly for the Trust.

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The Gregynog Trust

Report of the trustees

For the year ended 31 March 2023

Trustees have assessed the business in hand for the coming year as part of their refreshed business planning, along with identifying new business opportunity over the next two to five years and taking action to appoint a member of staff directly contributing to business development. We have disposed of Bwlch Y Ffridd Lodge and upgraded our café and courtyard. We have completed our brand, visual identity and marketing as well as beginning to refresh our website. New, customer facing booking and operating systems have been identified and will shortly replace outmoded systems and practice. Having successfully appointed a suitably skilled Chief Executive who took up the role on 14 August 2023, further systems and supplier reviews are underway to help stem losses and optimise income generating activity.

Relationships with stakeholders, volunteers, and long-standing supporters continue to be positive, as do those with professional advisors such as employment law and human resource providers. Partnerships, among them Sinfonia Cymru, Mid-Wales Opera, Quindici Choir, Montgomeryshire Beekeepers Association, Cultivate, the Woodland Trust, Natural Resources Wales and the local authority in Powys, are positive.

Applications have been made for local authority funds to assist with the renewal of aspects of our walled garden orchards and we expect news later in 2023. Key projects in our built estate have been identified and scoped to allow seed funding to be allocated in capital expenditure budgets and so that fundraising can begin. These include the repair of the roof at Gregynog Hall and the refurbishment of some 30 bathrooms in the hall. Plans are evolving to define our Friends scheme to raise support, awareness and donations from individuals, as well as approaches to grant giving bodies and public sources such as the Welsh Government.

We continue to deliver on our charitable purposes, promoting the arts, education and environment and pursue 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 in the most challenging of contexts to positive effect.

Despite the challenges of this large estate, we remain committed to the care, refurbishment and enhancement of this important historic house and working estate. We continue to closely monitor finance, performance, transparency of reporting and operating procedures. We are better placed to welcome visitors, to act both as a receiving venue and to offer a restorative creative environment for the enjoyment of our visitors and for wider public benefit.

Carole-Anne Davies Chair of Trustees, Gregynog Trust

11 December 2023

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The Gregynog Trust

Report of the trustees

For the year ended 31 March 2023

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

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 generate profit, that is reinvested in the Gregynog Trust.

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The Gregynog Trust

Report of the trustees

For the year ended 31 March 2023

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 day and residential conference guests (including educational, corporate and leisure); food and beverage; small scale retail events and venue hire, historic house tours, events and workshops supporting the arts, culture, music, education and conservation; unique weddings and civil ceremonies. Income from the estate includes rental income from residential, commercial, and agricultural and fishing tenancies as well as timber sales.

Access & Interpretation - We are committed to developing ways of enabling access to and interpreting 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 activities.

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 successfully completed our first international volunteers programme in partnership with the Wales Centre for International Affairs, culminating in improved archive records, new findings from our collection and an exhibition reflecting the work done and discoveries made by the volunteers.

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. It may on occasion deploy restricted funds from its designated Music Fund toward music related activities such as its memorandum of understanding (MOU) with Sinfonia Cymru.

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

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The Gregynog Trust

Report of the trustees

For the year ended 31 March 2023

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 post-Covid reopening and essential restructuring of the business are major steps forward in Gregynog’s fortunes. Relationships with the university, higher education and cultural sector are strong and new partnerships are being built through business development. The arrival of the newly appointed Chief Executive along with the anticipated appointment of new directors to GE Ltd bode well as does our reopened café space, themed courtyard evenings and new events offer.

Actions taken in this period also include the termination of blood sport licences on our land, halting the negative business effects of reputational association with such activity which has taken place at Gregynog in the past. This has positively re-cast our relationship with Natural Resources Wales and the Woodland Trust advancing the negotiations regarding funding for our National Nature Reserve and SSSI. The coming year marks the centenary of Gregynog becoming the home of Gwendoline and Margaret Davies which will provide numerous opportunities for celebratory events through until 2026, which begin in July 2023 with a one-day symposium marking a century since the publication of the first Gregynog Press book.

b. Key performance indicators

The annual business plan review includes an update as to the new brand and marketing tools now available to assist in raising the profile of Gregynog and introduce new income streams and programme activities. Revised budgets and business forecasts accompanying the new plan are in hand along with staff development work to ensure greater efficiency and enhanced performance across the piece.

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 review and planning reflects suitable alignment with our objects and prioritisation of several sources. Annual tariff and supplier reviews are in hand for the new financial year.

d. Factors relevant to the achievement of objectives

Human and financial resource impacts have been significant, as detailed above and continue to be challenging.

As noted in the prior year report, ageing water infrastructure repairs have been carried out in some areas, reducing our liabilities, but not in all the areas where we would wish to address in the inherited legacy of disrepair. Action to secure the primary heritage assets, such as the Hall, in terms of weather proofing and basic refurbishment, which allows income generation through conference and wedding activity has been carried out to some extent but continues to need attention. Our courtyard accommodation continues to be upgraded in terms of fixtures, fittings and service infrastructure as does our café. Once again, we emphasise that these are stabilising, limited works ahead of larger capital fundraising exercises for the greater needs of the estate. Gregynog is an estate of considerable scale and a lengthy period of maintenance failure precedes our ownership.

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The Gregynog Trust

Report of the trustees

For the year ended 31 March 2023

e. Investment policy

The Trustees have the power under the Charities Act to invest surplus funds. Trading activity (through Gregynog Enterprises Ltd) that results in any retained income is 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.

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 were further challenged by the impact of the pandemic in this and the prior accounting year along with significant estate demands in terms of refurbishment needs affecting the scope of our operations.

Trustees took relevant action to ensure payments of restricted and unrestricted funds owed to us under the Business Transfer Agreement were honored, to strengthen governance and intercompany arrangements, change financial and operational processes and create business development capacity. We continue to exercise financial control and monitoring with regular budgeting and cashflow production.

Examining the financial position along with the value of our physical land and built assets, business in hand and forecast, we are confident in our assessment of going concern and continued trading. The Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The Trust has taken measures in relation to formal inter-company loan arrangements with the trading company GE Ltd, which are reasonable and will assist its return to profitability and its capacity to repay its debt to the Trust, fulfilling 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 2023, amounting to £443,860 being unrestricted current assets less 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

Long term impact of Covid-19 working practices and the availability of funding sources remain key influences, as do energy and other costs previously noted, which we expect to have an impact for at least three years. The Trust is committed to monitoring the trading performance of GE Ltd following the agreement of a new lump sum and upwardly revised regular payments via the existing intercompany loan arrangement. The Trust itself will, in the coming financial year, consider further strategic asset disposal in the context of its capacity to manage some aspects of the estate and in the interests of the protecting and enhancing the core heritage assets and the success of the Trust. Trustees continue to be supported by legal advisors, Russell Cooke Solicitors to ensure commitments under the Business Transfer Agreement are met.

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The Gregynog Trust

Report of the trustees

For the year ended 31 March 2023

Other risks include:

c. Financial risk management objectives and policies

The principal subsidiary for the Gregynog Trust is Gregynog Enterprises Ltd (GE Ltd).

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

A risk assessment policy exists 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.

b. Methods of appointment or election of Trustees

The management of the group and the charity is the responsibility of the Trustees who are appointed and/or 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 will appoint a Chief Executive who will be supported by a relevant staff structure, subject to regular review. A regularly updated Handbook of Policies and Procedures is in place. All staff are provided with role descriptions, appropriate contracts, and 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 a full induction. The Trust's professional advisors also provide timely regulatory updates.

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The Gregynog Trust

Report of the trustees

For the year ended 31 March 2023

e. Pay policy for key management personnel

All policies relating to remuneration and conditions are set out in the staff handbook, individual terms are included in staff contracts and are reviewed regularly through the Audit, Finance and Remuneration subcommittee (AF&R).

f. Related party relationships

The Trustees and key management personnel complete Related Party, Conflict of Interest and Register of Interest declarations. 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 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 as per annual processes, which will reflect priorities, activities, policies, and supporting financial information to create a sustainable future for the Trust.

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:

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The Gregynog Trust

Report of the trustees

For the year ended 31 March 2023

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 11 December 2023 and signed on their behalf by:

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 2023 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.

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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;

▪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: 12 December 2023

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

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The Gregynog Trust

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

For the year ended 31 March 2023

Restricted
Unrestricted
Note
£
£
Income from:
Donations
3
-
8,136
Charitable activities
4
-
75,598
Other trading activities
5
-
607,785
Investment income
-
4,437
Other income
6
-
53,566
Total income
-
749,522
Expenditure on:
Raising funds
-
641,947
Charitable activities
834
285,037
Total expenditure
8
834
926,984
Net income / (expenditure)
(834)
(177,462)
Net gains / (losses) on investments
-
(11,721)
Net movement in funds
9
(834)
(189,183)
Reconciliation of funds:
Total funds brought forward
279,341
6,751,087
Total funds carried forward
278,507
6,561,904		 2023
Total
£
8,136
75,598
607,785
4,437
53,566
749,522
641,947
285,871
927,818
(178,296)
(11,721)
(190,017)
7,030,428
6,840,411		 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

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 2023

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
2023
£
59,261
5,875,555
239,989
6,174,805
14,907
201,514
100,000
573,208
889,629
167,262
722,367
6,897,172
29,851
26,910
6,840,411
278,507
6,561,904
6,840,411		 The group The charity
2022
2023
£
£
69,356
7,594
6,062,355
5,875,555
250,164
239,991
6,381,875
6,123,140
15,170
-
176,262
949,966
100,000
100,000
591,695
370,407
883,127
1,420,373
140,374
85,012
742,753
1,335,361
7,124,628
7,458,501
46,393
29,851
47,807
26,910
7,030,428
7,401,740
279,341
278,507
6,751,087
7,123,233
7,030,428
7,401,740		 The charity
2022
£
11,391
6,062,355
250,166
6,323,912
-
757,904
100,000
536,106
1,394,010
59,031
1,334,979
7,658,891
39,782
47,807
7,571,302
279,341
7,291,961
7,571,302

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 11 December 2023 and signed on their behalf by

Carole-Anne Davies - Chair

17

The Gregynog Trust

Consolidated statement of cash flows

For the year ended 31 March 2023

Cash provided by / (used in) operating activities:
Net movement in funds
Adjustments for:
Depreciation charges
Dividends, interest and rents from investments
Unrealised (gain) / loss
Loss / (profit) on the sale of heritage assets
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:
Dividends, interest and rents from investments
Purchase of investments
Proceeds from disposal of investments
Movements in cash held by investment manager
Proceeds from sale of heritage assets
Purchase of tangible fixed assets
Net cash provided by / (used in) investing activities
Cash flows from financing activities:
Repayment of 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
2022
£
£
Cash
591,695
(18,487)
Loans falling due within 1 year
(10,218)
(430)
Loans falling due after 1 year
(39,782)
9,931
Total
541,695
(8,986)
Cash flows		 2023
£
(190,017)
19,594
4,437
11,721
(48,200)
263
(25,252)
19,847
(20,897)
(228,504)
(4,437)
(231,587)
18,974
211,067
235,000
(9,499)
219,518
(9,501)
(9,501)
(18,487)
591,695
573,208
£
-
-
-
-
Other non-
cash
movements		 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
£
573,208
At 31 March
2023
(10,648)
(29,851)
532,709

18

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2023

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, as previously reported, having considered the impact of the Covid-19 pandemic on the budget and financial plans for 2022/23. Also in the knowledge that refurbished properties such as 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. A further asset disposal of Wood Cottage and a small land parcel is planned in the year 2023/24. The Trust carefully considers any asset disposals before proceeding however it is not restricted by any covenants or other agreements, should there be further strategic or operational need for future disposal.

Business in hand and forecast is reflected in business plans along with new business activity and systems upgrades such as the incorporation of the new Guestline booking system. Costs are being driven down, business development and new branding/marketing tools are taking effect - changes to governance arrangements which aid the return to profitability of the trading subsidiary Gregynog Enterprises Ltd have been completed. 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 in place along with monitoring of regular and lump sum intercompany payments. 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, driven by the new Chief Executive.

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 2023

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 2023

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 2023

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 2023

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 and not depreciated. 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 may be 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 2023

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 expenditure
Net gains on investments
Net movement in funds
3.
Income from donations
Donations
Coronavirus Job Retention Scheme
Total income from donations
All income from donations in the prior year
4.
Income from charitable activities		 Restricted
£
£
-
39,991
-
89,137
-
286,175
-
112,434
-
527,737
-
639,675
-
257,098
-
896,773
-
(369,036)
-
164
-
(368,872)
2023
Restricted
Total
£
£
£
-
8,136
8,136
-
-
-
-
8,136
8,136
was unrestricted.
Unrestricted
Unrestricted		 2022
Total
£
39,991
89,137
286,175
112,434
527,737
639,675
257,098
896,773
(369,036)
164
(368,872)
2022
Total
£
5,182
34,809
39,991
2023 2022
Restricted Unrestricted Total Total
£ £ £ £
Estate income - 75,598 75,598 89,137

All income from charitable activities in the prior year was unrestricted.

24

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2023

5. Income from other trading activities

Income from Gregynog Enterprises Ltd Restricted
£
£
-
607,785
Unrestricted		 2023
Total
£
607,785		 2022
Total
£
286,175

All income from other trading activities in the prior year was unrestricted.

6.
Other income
Gain on sale of fixed assets
UOW redundancy income
UOW water liability income
Other income		 Restricted
£
£
-
5,366
-
48,200
-
-
-
-
-
53,566
Unrestricted		 2023
Total
£
5,366
48,200
-
-
53,566		 2022
Total
£
-
-
62,620
49,814
112,434

In the prior 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 did not receive any government grants during the year (2022: Coronavirus Job Retention Scheme) to fund charitable activities. The total value of such grants in the year ending 31 March 2023 was £nil (2022: £34,809). There are no unfulfilled conditions or contingencies attaching to these grants in the current or prior year.

25

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2023

8. Total expenditure

Total expenditure
IT costs
Investment manager fees
Sundry expenses
Depreciation
Other staff costs
Trading purchases
Repairs and maintenance
Rates and utilities
Insurance
Marketing and
communications
Legal and professional
Licences and subscriptions
Bank charges
Accountancy costs
Sub-total
Total expenditure
Allocation of support and
governance costs
Irrecoverable VAT*
Staff costs (note 10)		 Raising
funds
£
316,380
298,144
8,735
-
-
-
-
15,623
-
-
-
-
-
3,065
-
-
641,947
-
641,947		 Charitable
activities
£
158,026
-
-
8,315
14,968
45,693
33,644
3,971
-
-
23,680
-
-
-
-
834
289,131
(3,260)
285,871		 £
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(20,897)
-
(6,199)
-
11,362
-
733
-
1,611
-
-
-
-
10,130
-
-
(13,390)
10,130
13,390
(10,130)
-
-
Support
costs
Governance
costs		 2023 Total
£
474,406
298,144
8,735
8,315
14,968
45,693
33,644
19,594
(20,897)
(6,199)
35,042
733
1,611
3,065
10,130
834
927,818
-
927,818

26

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2023

8. Total expenditure (continued)

Prior year comparative
Irrecoverable VAT
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
Trading purchases		 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 2023

9. Net movement in funds

This is stated after charging:

Depreciation
Operating lease payments
Trustees' remuneration
Trustees' reimbursed expenses
Auditors' remuneration:
Statutory audit		 2023
£
19,594
13,075
Nil
277
11,850		 2022
£
11,124
13,075
Nil
7,498
10,000

During the year, expenses totalling £277 (2022: £7,498) were reimbursed to 1 trustee (2022: 2 trustees) 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		 2023
£
434,151
24,295
15,960
474,406		 2022
£
438,839
20,207
14,536
473,582

Included within salaries and wages above are redundancy and termination payments of £5k (2022: £75k).

There were no employees whose employee benefits (excluding employer pension costs) exceeded £60,000 during the current or prior year.

The key management personnel of the charitable company in the current and prior year comprise the trustees, Head of Operations and Programmes, Deputy Operations Manager and the Finance Manager. The total employee benefits of the key management personnel were £102,578 (2022: £86,225).

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

Trust
Enterprises
Total		 2023
2022
No.
No.
6
2
31
26
37
28

28

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2023

11. Taxation

12. Tangible fixed assets - group

Tangible fixed assets - group
Cost
At 1 April 2022
Additions in year
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
Tangible fixed assets - charity
Cost
At 1 April 2022
Additions in year
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 £
43,527
8,004
51,531
3,100
9,710
12,810
38,721
40,427
Fixtures and
fittings		 £
21,965
1,495
23,460
7,677
4,965
12,642
10,818
14,288
Plant and
equipment		 £
24,798
-
24,798
10,157
4,919
15,076
9,722
14,641
£
18,985
-
18,985
7,594
3,797
11,391
7,594
11,391
Office
equipment
Plant and
equipment		 Total
£
90,290
9,499
99,789
20,934
19,594
40,528
59,261
69,356
Total
£
18,985
-
18,985
7,594
3,797
11,391
7,594
11,391

29

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2023

13. Heritage assets - group and charity

Value
At 1 April 2022
Disposals
At 31 March 2023		 Gregynog
Hall
£
375,000
-
375,000		 Chattels
£
£
671,355
5,016,000
(1,800)
(185,000)
669,555
4,831,000
Estate land
and buildings		 Total
£
6,062,355
(186,800)
5,875,555

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. A summary of other movements is given below:

Five year summary of heritage asset transactions:

2023 2022 2021 2020
£ £ £ £
Additions:
Donations - - - 6,062,355
Total additions - - - 6,062,355
Disposals:
Carrying value 186,800 - - -
Proceeds 235,000 - - -
Revaluations - - - -

30

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2023

14. Investments - group and charity

Listed investments
Gregynog Enterprises Limited
Total investments at 31 March 2023
Listed investments:
Market value at the start of the year
Additions
Disposal proceeds
Unrealised gains / (losses)
Movements in investment cash
Market value at the end of the year		 2023
2022
£
£
239,989
250,164
-
-
239,989
250,164
2023
2022
£
£
250,164
-
231,587
250,000
(18,974)
-
(11,721)
164
(211,067)
-
239,989
250,164
The group
The group		 2023
2022
£
£
239,989
250,164
2
2
239,991
250,166
2023
2022
£
£
250,164
-
231,587
250,000
(18,974)
-
(11,721)
164
(211,067)
-
239,989
250,164
The charity
The charity		 2023
2022
£
£
239,989
250,164
2
2
239,991
250,166
2023
2022
£
£
250,164
-
231,587
250,000
(18,974)
-
(11,721)
164
(211,067)
-
239,989
250,164
The charity
The charity
250,164

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.

31

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2023

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		 2023
£
609,864
(93,961)
515,903
(536,361)
-
(20,458)
2023
£
419,060
(980,388)
(561,328)		 2022
£
282,691
(33,498)
249,193
(595,417)
96,949
(249,275)
2022
£
228,064
(768,934)
(540,870)

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		 2023
£
139,658
(169,561)		 2022
£
148,096
(119,597)

17. Stock

Stock
The group The charity
2023 2022 2023 2022
£ £ £ £
Goods for resale 14,907 15,170 - -

32

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2023

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		 2023
2022
£
£
156,019
109,198
-
-
45,495
63,197
-
3,867
201,514
176,262
100,000
100,000
301,514
276,262
The group		 2023
2022
£
£
41,478
38,827
891,333
673,639
10,352
35,234
6,803
10,204
949,966
757,904
100,000
100,000
1,049,966
857,904
The charity		 2023
2022
£
£
41,478
38,827
891,333
673,639
10,352
35,234
6,803
10,204
949,966
757,904
100,000
100,000
1,049,966
857,904
The charity
757,904
100,000
857,904

19. Creditors: amounts due within 1 year

Trade creditors
Accruals
Deferred income (note 21)
Other taxation and social security
Loans
Other creditors		 2023
2022
£
£
46,028
31,676
48,760
41,630
48,616
41,702
1,594
10,132
10,648
10,218
11,616
5,016
167,262
140,374
The group		 2023
2022
£
£
20,519
23,495
37,960
17,666
2,029
-
2,238
1,631
10,648
10,218
11,618
6,021
85,012
59,031
The charity		 2023
2022
£
£
20,519
23,495
37,960
17,666
2,029
-
2,238
1,631
10,648
10,218
11,618
6,021
85,012
59,031
The charity
59,031

33

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2023

20. Creditors: amounts due after 1 year

Deferred income (note 21)
Loans		 2023
2022
£
£
-
6,611
29,851
39,782
29,851
46,393
The group		 2023
2022
£
£
-
-
29,851
39,782
29,851
39,782
The charity		 2023
2022
£
£
-
-
29,851
39,782
29,851
39,782
The charity
39,782

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 2022
Deferred during the year
Released during the year
At 31 March 2023		 2023
2022
£
£
48,313
32,137
48,616
48,313
(48,313)
(32,137)
48,616
48,313
The group		 2023
2022
£
£
48,313
32,137
48,616
48,313
(48,313)
(32,137)
48,616
48,313
The group
48,313

21. Deferred income

Deferred income relates to deposits for accommodation booked in advance and land rental.

22. Provisions

At the start of the year
Adjustment to reduce anticipated costs
Provision for overclaimed VAT		 2023
2022
£
£
47,807
-
(20,897)
47,807
26,910
47,807
The group		 2023
2022
£
£
47,807
-
(20,897)
47,807
26,910
47,807
The charity		 2023
2022
£
£
47,807
-
(20,897)
47,807
26,910
47,807
The charity
47,807

In the previous 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 further revised downwards in 2023. Once the final balance is 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 work is underway to draw up plans for the rectification. 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.

34

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2023

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 2023
Prior year comparative (restated)
Tangible fixed assets
Heritage assets
Investments
Current assets
Current liabilities
Non current liabilities
Net assets at 31 March 2022		 £
-
-
-
278,507
-
-
278,507
£
-
-
-
279,341
-
-
279,341
Restricted
funds
Restricted
funds		 £
59,261
5,875,555
239,989
611,122
(167,262)
(56,761)
6,561,904
£
69,356
6,062,355
250,164
603,786
(140,374)
(94,200)
6,751,087
Unrestricted
funds
Unrestricted
funds		 Total
funds
£
59,261
5,875,555
239,989
889,629
(167,262)
(56,761)
6,840,411
Total
funds
£
69,356
6,062,355
250,164
883,127
(140,374)
(94,200)
7,030,428

The 2022 analysis of net assets between funds has been restated to correctly show the restricted music fund being held as a current asset investment.

35

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2023

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
2022
£
279,341
279,341
6,751,087
6,751,087
7,030,428
The purpose		 Income
£
-
-
749,522
749,522
749,522
of the fund is		 £
£
£
(834)
-
278,507
(834)
-
278,507
(926,984)
(11,721)
6,561,904
(926,984)
(11,721)
6,561,904
(927,818)
(11,721)
6,840,411
Losses on
investments
At 31 March
2023
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
2021
£
279,341
279,341
7,119,959
7,119,959
7,399,300		 Income
£
-
-
527,737
527,737
527,737		 £
-
-
(896,773)
(896,773)
(896,773)
Expenditure		 £
£
-
279,341
-
279,341
164
6,751,087
164
6,751,087
164
7,030,428
Gains on
investments
At 31 March
2022		 £
£
-
279,341
-
279,341
164
6,751,087
164
6,751,087
164
7,030,428
Gains on
investments
At 31 March
2022
279,341
6,751,087
6,751,087
7,030,428

36

The Gregynog Trust

Notes to the financial statements

For the year ended 31 March 2023

26. Financial instruments at fair value

Financial instruments at fair value
2023 2022
£ £
Financial assets measured at fair value 239,989 250,164

Financial assets measured at fair value comprise listed investments.

27. 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		 2023
2022
£
£
15,949
17,309
14,428
31,025
30,377
48,334
The group		 2023
2022
£
£
14,297
15,657
11,676
26,621
25,973
42,278
The charity
42,278

28. Related party transactions

In accordance with FRS102, transactions with Gregynog Enterprises Limited have not been disclosed 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.

37