**Charity registration number 1204236 (England and Wales)** ## **THE SHEPHERDS LAW TRUST CIO** **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025** ## **THE SHEPHERDS LAW TRUST CIO** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 7| |Independent examiner's report|8| |Statement of financial activities|9| |Balance sheet|10| |Statement of cash flows|11| |Notes to the financial statements|12 - 20| ## **THE SHEPHERDS LAW TRUST CIO** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Trustees**|The Rt Rev'd Dr. Stephen Platten|| |---|---|---| ||Michael Palmer|(Appointed 29 August 2025)| ||Brother Paul Coleman|(Appointed 8 July 2024)| ||Very Rev'd Canon Jane Hedges|| ||Micael Cristoffer Carlstrom|| ||John Carr-Ellison|| ||Rev'd George Guiver|| ||Rev'd David Gill|| ||Sister Anita Smith|| |**Charity registration**|England and Wales|1204236| |**Principal address**|Shepherds Law Hermitage|| ||Eglingham|| ||Alnwick|| ||Northumberland|| ||NE66 2DZ|| |**Independent examiner**|Andrew Northern FCA|| ||Fortus Limited|| ||Equinox House|| ||Clifton Park|| ||Shipton Road|| ||York|| ||YO30 5PA|| ## **THE SHEPHERDS LAW TRUST CIO** ## **TRUSTEES' REPORT** ## _**FOR THE PERIOD ENDED 30 SEPTEMBER 2025**_ The Trustees present their annual report and financial statements for the period ended 30 September 2025. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)". The legal and administrative information page forms part of this report. ## **Introduction from the Chair of Trustees** Shepherds Law has an unusual history. Taking over a ruinous eighteenth-century sheep farm, possibly before that a ‘sheep court’, Brother Harold SSF, as he was then, imported an elderly caravan as his home within the abandoned farmyard, and set out to convert the ruins into a hermitage. The germ of his vision looked back to the example of Father William Sirr who in the 1920s/1930s had established a Hermitage at Glasshampton in Worcestershire in some old stables. Father William died in 1937 and his vision was lost. Harold was determined to pick up a similar vision and moved to Shepherds Law in 1970. First, with the help of some theological students the foundations of the lost farmhouse became the footings of the monastic house, using stone from the ruins. Then, in the 1980s he raised funds to build four eremitic cells, contiguous with the farmhouse. These were blessed by Robert Runcie, then Archbishop of Canterbury, in 1989. Finally, with funds left by his mother, the award-winning chapel was built, and consecrated by the then Archbishop of York, David Hope, in 2004. Harold died on the Feast of St Francis, October 4th 2024 and a trust was set up with the determination to carry on his vision so that it would not be lost, as happened with Father William. Harold is now buried just to the north west of the chapel doors. The trust, whose report this is, has helped transform the hermitage into the vision that Harold cherished throughout his life. _Chapel Interior The Cloister & Cells Chapel Exterior_ ## **Objectives and activities** The Shepherds Law Trust is a Charitable Incorporated Organisation and its registered objects are stated as follows: The advancement of the Christian religion for the public benefit, by promoting the ongoing use of the buildings at Shepherds Law in Northumberland by a contemplative Christian community of monastic and lay people, maintaining the buildings at Shepherds Law to be used for religious practice, providing a place of worship, and educating the public about monastic life. ## _Public benefit_ The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. ## **Background** The Shepherds Law Trust CIO was first registered on 7th August 2023, but the Trust's bank account was not opened until 24th July 2024. All transactions before that date were handled by the Trustees of the Hermitage at Shepherds Law (THSL) acting on behalf of, as agents for the Trust CIO. As a result of the Asset Transfer Agreement between the Trustees of the Hermitage at Shepherds Law and The Shepherds Law Trust Charitable Incorporated Organisation dated 28th August 2024, it was agreed that the whole business and assets of THSL would be transferred as a going concern. The agreement was completed during this accounting period ending 30th September 2025. - 1 - ## **THE SHEPHERDS LAW TRUST CIO** ## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE PERIOD ENDED 30 SEPTEMBER 2025**_ ## **Background (continued)** As at 6th April 2024 the Trustees of the Hermitage held shares in COIF at CCLA; these were sold during the period and added to the opening bank balances making a total of £215,105. This was transferred to the Trust CIO together with donations received of £21,042 and interest of £2,819 and less £20,000 capital expenditure and £996 expense payments. Whilst the Shepherds Law Trust CIO is very young, the Hermitage itself has well over 50 years of rich history. A very brief synopsis of this half century is required to set the background for the values of the buildings and the supporting fundraising. For further reading in glorious detail please see _"ONENESS: The Dynamics of Monasticism"_ SCM Pres 2017. There have been 3 major contributions of funds during the period of 1971 to early 2024, as well as many, many hundreds of small gifts of time, materials and money. The first of the substantial donations came during the years 1985 to 1989. The Shepherds Law Hermitage Fund was initiated by a group of people form St. Mary's Monkseaton led by their vicar The Rev'd John Lowen. The introduction to a marketing leaflet written by the secretary to the Shepherds Law Support group, Mrs Noble (now the Rev'd Canon Eileen Noble) stated: _"In the summer of 1984, a little group visited Shepherds Law to spend some time with Brother Harold. There (on a remote hill) we glimpsed something of the beauty of God and the need of his church for healing and unity, wholeness and prayer, watchfulness and 'hope'. In talking with others and with our Bishop we found ourselves drawn by the example of the Northumbrian Saints and saw the need to provide a more secure place of prayer in our midst - in short the strengthening of the monastic life and its service to the church. We hope that after reading this, you will join us in giving substance to this vision."_ It is worth quoting the full text of the foreword in the same leaflet written by Sir Ralph Carr-Ellison, chairman of the Trustees of the Hermitage: _"In 1971 my wife and I had the pleasure of welcoming Brother Harold to Shepherds Law - then an isolated ruin overlooking the Cheviot Hills. The intervening 14 years have seen the building of the present hermitage whilst Brother Harold's work of prayer has prospered, to be shared with others seeking peace and contemplation, and he himself has become an active participant in the life of our parish._ _We are, therefore, extremely happy to find there is now a group of people wishing to extend the hermitage to provide increased accommodation for a small company and their visiting guests._ _I and my fellow Trustees hope that this project will strengthen the spiritual life of the Church in Northumbria, for along with many others we see the value and need for silence and stillness in today's world and are convinced that the contemplative life at Shepherds Law will help others find their own peace through prayer. In this year 1985, which celebrates the 1300th Anniversary of the dedication of St Paul's Church at Jarrow as well as the 1250th Anniversary of the death of St Bede, we are especially happy to commend and support this farsighted venture. A venture which reflects Northumbria's Christian heritage, and which ensures that Brother Harold's original vision, now a reality, will in future provide for a wider community within the Diocese."_ Much hard work and many fund-raising events over the four year period resulted in more than £150,000 being raised in order to build the four cloistered cells. This part of Shepherds Law's history was capped by a Service of Thanksgiving and Blessing of the new building conducted by His Grace, the Archbishop of Canterbury on Monday 17th July 1989. For the purposes of the accounts we take the fixed asset value of the Hermitage at the historic cost of £150,000. The second major endowment was given in 1998. Brother Harold's mother, who had been a resident in a care home for some years, died on 7th March 1998. Just one month earlier she had added a codicil to her will in which she bequeathed the residue of her estate to _"the Trustees for the time being of The Hermitage Chapel of St Mary the Virgin at Shepherds Law Northumberland"._ The will was proved a year later and the sum of £100,274 was endowed. All plans for the Chapel had already been approved and so the building work began in earnest. Some six years later and the award winning Chapel of St. Mary and St. Cuthbert was dedicated by The Archbishop of York in September 2004, assisted by the Bishops of Newcastle and Wakefield and the Vicar General of the Roman Catholic diocese of Hexham and Newcastle, and representatives from the Orthodox and Reformed churches; truly reflecting the ecumenical vision of Brother Harold for the Hermitage. Many of the 300 strong congregation had been involved with the construction... digging ditches and trenches; carrying stones; carting away rubbish; and praying that the vision would take root. It has! We set the fixed asset value of the Chapel at the historic endowment sum of just £100,000. We have not had the impertinence to value in mere £.s.d. the hundreds of hours of time enthusiastically given, nor the quantities of materials freely given. For the third major input of funds we move forward to the four year period preceding these accounts. During this time plans were being laid for the next phase of this astonishing story. Another side to the Cloisters was on the drawing board to join the cells on the northern cloister to the Chapel by way of a cloister walkway. This will complete the eastern side of the square. The Friday Charitable Trust (260781) took the lead and contributed £163,549 during the 4 years before its cessation on 10th January 2024. This endowment together with several years of donations from the W.A.Handley Charity Trust (230435) and many other smaller gifts were all part of the monies transferred from the prior organisation. - 2 - ## **THE SHEPHERDS LAW TRUST CIO** ## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE PERIOD ENDED 30 SEPTEMBER 2025**_ ## **Achievements and performance** The period between the spring of 2024 and the autumn of 2025 has been one of intense activity in relation to the refurbishment and development of the buildings at Shepherds Law. Brother Harold’s original vision was to build a cloister which would connect the residential buildings to the chapel and this vision has been realized through the generosity, skill and dedication of professional builders and enthusiastic volunteers. The building was completed in May 2025 and blessed during a service at our Open Day in June. _Building of new cloister begins Building in progress_ _The Exterior Completed The Interior Completed_ Major renovations have also been achieved within the existing buildings. All four Cells have been insulated and have had showers, new toilets and handbasins fitted. A new shower has also been installed in the communal area of the building. - 3 - ## **THE SHEPHERDS LAW TRUST CIO** ## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE PERIOD ENDED 30 SEPTEMBER 2025**_ ## **Achievements and performance (continued)** A new library has been created at the far end of the original cloister in what was originally a semi-derelict part of the building and all the books have been moved from their previous location and that room has been refurbished and is now a guest bedroom. _Original Library New Guest Room_ _Semi Derelict End of Cloister New Library Space Created_ Shepherd’s Law is not on the grid for electricity and is not connected to a central gas supply and so heating and lighting the building has always been a challenge. In the past occupants relied on small wood burning stoves which later were considered to be unsafe and there was a generator for supplying electricity. A major project has been undertaken to install central heating, a hot water supply and power for all electrical needs. This has entailed raising funds for solar panels, a new back-up generator, new boilers for the residential buildings and the chapel and new radiators throughout. This project was near completion by September 2025 and the necessary funds raised. Shepherds Law has no paid staff and therefore relies on dedicated volunteers. A group of local people stay regularly at Sheperd’s Law and perform many practical tasks around the buildings and grounds. These tasks include: clearing gutters, moving piles of wood and stacks of tiles, chopping logs, grass cutting and clearing undergrowth, vacuuming and polishing, painting and decorating and sorting out bedding and furnishings. Other volunteers have given many hours to preparing grant applications, putting our finances in good order, sorting old documents and archiving them, drawing up policies, dealing with insurance and liaising with builders and contractors. On our Open Days, services and Brother Harolds funeral volunteers have offered transport, prepared orders of service and provided and served refreshments. - 4 - ## **THE SHEPHERDS LAW TRUST CIO** ## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE PERIOD ENDED 30 SEPTEMBER 2025**_ ## _**Achievements and performance (continued)**_ _Volunteers at a meeting in the parlour Volunteers clearing undergrowth_ The trustees have appointed a volunteer manager, the Revd Tracey Usher who will be responsible for managing bookings, briefing guests and making regular checks on the building. She will attend Board meetings and update trustees on practical matters. Having given priority during the period to September 2025 to bringing the buildings up to a standard where we can receive more guests, the trustees will now turn their attention to their vision for the future and in particular to encouraging groups and individuals to come to Shepherd’s Law for retreats, sabbaticals, pilgrimages, study days and school visits. It has however already been possible to accommodate some guests, to conduct regular worship and host two Open Days. So individuals have stayed for short periods including a bereaved gentleman for an extended period in the summer months, weeks have been held with resident monastics maintaining the round of daily services and opening these to the public, services have been held in the chapel on the second Sunday of every month conducted by members of different denominations, and during the Open Days over 120 people have visited Shepherds Law for talks, tours of the buildings, worship, local walks and enjoying food together. _Open Day 2024 - people gathering after the Eucharist_ - 5 - ## **THE SHEPHERDS LAW TRUST CIO** ## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE PERIOD ENDED 30 SEPTEMBER 2025**_ ## **Achievements and performance (continued)** _Brother Harold cutting a cake Monastic guests celebrating the 20th anniversary of the consecration of the chapel_ Now that the refurbishment of the buildings is largely complete the Trustees are committed to ensuring that Shepherds Law is available to benefit as wide a group of people as possible, enabling them to enjoy the outstanding beauty of its surroundings and the peace and serenity of the buildings themselves. ## **Financial review** The trustees are enormously grateful to those who have worked very hard to put our finances in good order and for the support of a wide spectrum of donors who have made it possible to repair and extend the property. Now that the construction work is completed, we aim to build up our investments and secure regular donations in order to cover day to day maintenance and care for this unique place which has been entrusted to our care. During the period income received was £630,995 and expenditure was £8,211, resulting in a surplus of £622,784. Of this surplus, £508,007 relates to endowment funds and £1,000 relates to restricted funds. This leaves an unrestricted surplus of £113,777. During the period the charity received a £217,870 cash donation and donated assets of £250,000 for the Trustees of the Hermitage at Shepherds Law. The donated assets, being the Hermitage and Chapel buildings, form the endowment fund. ## _Reserves policy_ Free reserves at 30 September 2025 were: £113,777. ## **Structure, governance and management** The charity is governed by its constitution dated 7 August 2023. ## _Recruitment and appointment of trustees_ Apart from the first charity trustees, every trustee must be appointed for a term of three years by a resolution passed at a properly convened meeting of the charity trustees. In selecting individuals for appointment as charity trustees, the charity trustees must have regard to the skills, knowledge and experience needed for the effective administration of the CIO. The charity trustees will make available to each new charity trustee, on or before his or her first appointment: - A copy of the current version of the constitution; and - a copy of the CIO's latest Trustees' Annual Report and statement of accounts. - 6 - ## **THE SHEPHERDS LAW TRUST CIO** ## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE PERIOD ENDED 30 SEPTEMBER 2025**_ ## _Organisational structure_ The charity is run by trustees and volunteers. There are currently no paid members of staff. During the period from April 2023 to September 2025 the new Board of Trustees has met regularly every 3 – 4 months (a total of 11 times). Agenda papers are sent out in advance and at every meeting we receive a report from the Chairman, a report from the Treasurer, a report from the Working Party and a Safeguarding Report. During the last twelve months we have become independent of the Hedgeley Hall Estate in terms of our insurance and we now have full cover of our buildings, employer liability and public insurance liability with the Ecclesiastical Insurance Company. We have Health & Safety and Risk Assessment policies in place and they, together with our safeguarding policy are reviewed on an annual basis. For Safeguarding training and advice, policy support and DBS checks, the trustee body continues to be a member of Thirtyone:eight, PO Box 133, Swanley, Kent, BR8 7UQ. The trustees' report was approved by the Board of Trustees. The Rt Rev'd Dr. Stephen Platten 15 June 2026 - 7 - ## **THE SHEPHERDS LAW TRUST CIO** ## **INDEPENDENT EXAMINER'S REPORT** ## **TO THE TRUSTEES OF THE SHEPHERDS LAW TRUST CIO** I report to the Trustees on my examination of the financial statements of The Shepherds Law Trust CIO (the charity) for the period ended 30 September 2025. ## **Responsibilities and basis of report** As the Trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011. I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011. ## **Independent examiner's statement** Since the charity’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies. Your attention is drawn to the fact that the charity has prepared the financial statements in accordance with the relevant version of the Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn. I understand that this has been done in order for the financial statements to provide a true and fair view in accordance with UK Generally Accepted Accounting Practice. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1 accounting records were not kept in respect of the charity as required by section 130 of the Charities Act 2011. - 2 the financial statements do not accord with those records; or - 3 the financial statements do not comply with the applicable requirements concerning the form and content of financial statements set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. Andrew Northern FCA Fortus Limited Business Advisors and Accountants Equinox House Clifton Park Shipton Road York YO30 5PA 15 June 2026 - 8 - ## **THE SHEPHERDS LAW TRUST CIO** ## **STATEMENT OF FINANCIAL ACTIVITIES** ## _**FOR THE PERIOD ENDED 30 SEPTEMBER 2025**_ |**Unrestricted**
**Restricted**
**Endowment**
**funds**
**funds**
**funds**
**2025**
**2025**
**2025**
**Notes**
**£**
**£**
**£**
**Income from:**
Donations and legacies
**3**
139,962
238,419
250,000
Investments
**4**
2,614
-
-
**Total income and endowments**
142,576
238,419
250,000
**Expenditure on:**
Charitable activities
**5**
8,211
-
-
**Total expenditure**
8,211
-
-
**Net income for the period**
134,365
238,419
250,000
Transfers between funds
(20,588)
(237,419)
258,007
**Net movement in funds**
**7**
113,777
1,000
508,007
**Reconciliation of funds:**
Fund balances at 6 April 2024
-
-
-
**Fund balances at 30 September 2025**
113,777
1,000
508,007|**Total**
**2025**
**£**
628,381
2,614| |---|---| ||630,995
8,211| ||8,211| ||622,784
-| ||622,784
-| ||622,784| The statement of financial activities includes all gains and losses recognised in the period. All income and expenditure derive from continuing activities. - 9 - ## **THE SHEPHERDS LAW TRUST CIO** ## **BALANCE SHEET** ## _**AS AT 30 SEPTEMBER 2025**_ |**Notes**
**Fixed assets**
Tangible assets
**11**
Heritage assets
**12**
**Current assets**
Debtors
**13**
Investments
**14**
Cash at bank and in hand
**Creditors: amounts falling due within one year**
**15**
**Net current assets**
**Total assets less current liabilities**
**The funds of the charity**
Endowment funds
**16**
Restricted income funds
**17**
Unrestricted funds
**18**|**2025**
**£**
23,640
109,000
13,129
145,769
(30,992)|**£**
128,220
379,787| |---|---|---| |||508,007
114,777| |||622,784| |||508,007
1,000
113,777| |||622,784| The financial statements were approved by the Trustees on 15 June 2026 The Rt Rev'd Dr. Stephen Platten Sister Anita Smith - 10 - ## **THE SHEPHERDS LAW TRUST CIO** ## **STATEMENT OF CASH FLOWS** ## _**FOR THE PERIOD ENDED 30 SEPTEMBER 2025**_ |||**2025**|| |---|---|---|---| ||**Notes**|**£**|**£**| |**Cash flows from operating activities**|||| |Cash generated from operations|**22**||373,652| |**Investing activities**|||| |Purchase of tangible fixed assets||(124,350)|| |Purchase of heritage assets||(129,787)|| |Purchase of investments||(201,000)|| |Withdrawals from investments||92,000|| |Investment income received||2,614|| |**Net cash used in investing activities**|||(360,523)| |**Net cash generated from financing activities**|||-| |**Net increase in cash and cash equivalents**|||13,129| |Cash and cash equivalents at beginning of period|||-| |**Cash and cash equivalents at end of period**|||13,129| - 11 - ## **THE SHEPHERDS LAW TRUST CIO** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE PERIOD ENDED 30 SEPTEMBER 2025**_ ## **1 Accounting policies** ## **Charity information** The Shepherds Law Trust CIO is a charitable incorporated organisation registered in England and Wales. ## 1.1 **Reporting period** The charity has prepared accounts for an 18 month period as this is the first financial period. ## **1.2 Basis of preparation** The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)". The charity is a Public Benefit Entity as defined by FRS 102. The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn. The financial statements are prepared in sterling, which is the functional currency of the charity. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. ## **1.3 Going concern** At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.4 Charitable funds** Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity. **1.5 Income** Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. ## **1.6 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use. - 12 - ## **THE SHEPHERDS LAW TRUST CIO** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE PERIOD ENDED 30 SEPTEMBER 2025**_ ## **1 Accounting policies** **(Continued)** ## **1.7 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Expenditure on fixed assets costing more than £1,000 is capitalised. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Hermitage improvements 10% reducing balance The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. ## **1.8 Impairment of fixed assets** At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). ## **1.9 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.10 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled. - 13 - **THE SHEPHERDS LAW TRUST CIO** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE PERIOD ENDED 30 SEPTEMBER 2025**_ ## **2 Critical accounting estimates and judgements** In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. ## **3 Income from donations and legacies** |**Unrestricted**
**Restricted**
**Endowment**
**funds**
**funds**
**funds**
**2025**
**2025**
**2025**
**£**
**£**
**£**
Donations and gifts
85,641
-
-
Grants
-
71,000
-
Donated goods and services
-
3,870
-
THSL donated assets
-
-
250,000
THSL donation (transfer of assets)
54,321
163,549
-
139,962
238,419
250,000
**Donations and grants during the current period**
Dr Patricia Kind
10,000
-
-
Christopher Stephen-Haynes
1,800
-
-
Carr-Ellison Family Charitable Trust (206624)
8,600
-
-
The Henfrey Charitable Trust (1161495)
10,000
-
-
Westminster Abbey Trust (1116371)
-
55,000
-
S.L.G. Charitable Trust (261722)
40,000
-
-
The W.A. Handley Charity Trust (230435)
3,000
-
-
David Goodacre
1,250
-
-
The Joicey Trust (244679)
-
2,500
-
The Barbour Foundation (328081)
-
1,000
-
Simon Lowater
-
12,500
-
Sisters of The Holy Cross (1195162)
500
-
-
Mark Warrick
1,250
-
-
Peter Randall
635
-
-
Henry Cator
1,250
-
-
Elizabeth Warden
500
-
-
Alan Arkle & Son
-
3,870
-
and many, many smaller donations
6,856
-
-
85,641
74,870
-|**Total**
**2025**
**£**
85,641
71,000
3,870
250,000
217,870| |---|---| ||628,381| ||10,000
1,800
8,600
10,000
55,000
40,000
3,000
1,250
2,500
1,000
12,500
500
1,250
635
1,250
500
3,870
6,856| ||160,511| The income from the Trustees of the Hermitage at Shepherd's Law (THSL) is the assets transferred including the cash. This includes the restricted fund from the Friday Charitable Trust of £163,549 and the unrestricted donation from W A Handley Charity Trust of £5,000. ## **Donated goods and services** Donated goods and services relates to work done on the library by Alan Arkle & son. - 14 - ## **THE SHEPHERDS LAW TRUST CIO** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE PERIOD ENDED 30 SEPTEMBER 2025**_ - **4 Income from investments** ||**Unrestricted**| |---|---| ||**funds**| ||**2025**| ||**£**| |Interest receivable|2,614| - **5 Expenditure on charitable activities** |||**Unrestricted**| |---|---|---| |||**funds**| |||**2025**| |||**£**| ||**Direct costs**|| ||Oil and gas|1,402| ||Repairs and maintenance (non-capital items)|1,817| ||Insurance|1,648| ||Rent|1| ||Miscellaneous expenses|571| |||5,439| ||**Share of support and governance costs (see note 6)**|| ||Support|13| ||Governance|2,759| |||8,211| ||**Analysis by fund**|| ||Unrestricted funds - general|8,211| |**6**|**Support costs allocated to activities**|| |||**2025**| |||**£**| ||Bank charges|13| ||Independant examiners fees (governance cost)|2,000| ||Legal & professional fees (governance cost)|759| ||**Analysed between:**|| ||Unrestricted funds|2,772| |**7**|**Net movement in funds**|**2025**| |||**£**| ||The net movement in funds is stated after charging/(crediting):|| ||Fees payable for the independent examination of the charity's financial statements|2,000| - 15 - ## **THE SHEPHERDS LAW TRUST CIO** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE PERIOD ENDED 30 SEPTEMBER 2025**_ ## **8 Trustees** None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the period. ## **9 Employees** |There were no employees during the period.
Total
There were no employees whose annual remuneration was more than £60,000.|**2025**
**Number**
-| |---|---| ||| ## **10 Taxation** The charity is exempt from taxation on its activities because all its income is applied for charitable purposes. ## **11 Tangible fixed assets** ||**Hermitage**| |---|---| ||**improvements**| ||**£**| |**Cost**|| |Additions|128,220| |At 30 September 2025|128,220| |**Carrying amount**|| |At 30 September 2025|128,220| ## **12 Heritage assets** |**12**
**Heritage assets**||| |---|---|---| |At 6 April 2024
Purchases
Donated assets
**At 30 September 2025**
**13**
**Debtors**
**Amounts falling due within one year:**
Other debtors
Prepayments and accrued income|**Chapel**
**Hermitage**
**£**
**£**
-
-
-
129,787
100,000
150,000
100,000
279,787|**Total**
**£**
-
129,787
250,000| |||379,787| |||**2025**
**£**
23,254
386| |||23,640| - 16 - ## **THE SHEPHERDS LAW TRUST CIO** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE PERIOD ENDED 30 SEPTEMBER 2025**_ ## **14 Current asset investments** |COIF Charities Deposit Fund
**Cost or valuation**
At 1 April 2024
Additions
Disposals
At 30 September 2025
**Creditors: amounts falling due within one year**
Trade creditors
Accruals and deferred income|**2025**
**£**
109,000
-
201,000
(92,000)
109,000
**2025**
**£**
7,767
23,225
30,992| |---|---| ## **15 Creditors: amounts falling due within one year** ## **16 Endowment funds** Endowment funds represent assets which must be held permanently by the charity. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund. ||**At 6 April 2024**|**Income**|**Transfers At**|**30 September**| |---|---|---|---|---| |||||**2025**| ||**£**|**£**|**£**|**£**| |**Permanent endowments**||||| |Buildings fund|-|250,000|258,007|508,007| **Buildings fund** - This fund represents the hermitage and chapel buildings as well as subsequent additions. Depreciation on applicable assets is charged to the fund as expenditure. The transfer represents the original cost of the buildings donated from THSL, as well as the cost of additions during the year. - 17 - ## **THE SHEPHERDS LAW TRUST CIO** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE PERIOD ENDED 30 SEPTEMBER 2025**_ ## **17 Restricted funds** The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used. |**At 6 April 2024**
**£**
Westminster Abbey Trust
-
Barbour Foundation
-
Simon Lowater
-
Joicey Trust
-
Friday Charitable Trust
-
Alan Arkle & Son
-
-|**Income**
**Transfers At 30 September**
**2025**
**£**
**£**
**£**
55,000
(55,000)
-
1,000
-
1,000
12,500
(12,500)
-
2,500
(2,500)
-
163,549
(163,549)
-
3,870
(3,870)
-
238,419
(237,419)
1,000|**Income**
**Transfers At 30 September**
**2025**
**£**
**£**
**£**
55,000
(55,000)
-
1,000
-
1,000
12,500
(12,500)
-
2,500
(2,500)
-
163,549
(163,549)
-
3,870
(3,870)
-
238,419
(237,419)
1,000| |---|---|---| |||1,000| **Westminster Abbey Trust** - This fund represents grants received from Westminster Abbey Trust for the purchase of a new heating system and off-grid power generation. The transfer represents the purchase of fixed assets. **Barbour Foundation** - This fund represents a grant towards the cost of new books for the library. **Simon Lowater** - This fund represents monies donated for the purchase of a new generator. The transfer represents the purchase of fixed assets. **Joicey Trust** - This fund represents a grant toward the cost of new entrance doors. The transfer represents the purchase of fixed assets. **Friday Charitable Trust** - This fund represents a donation received from the closure of the Friday Charitable Trust for the purpose of developing the Heritage assets, including the Cloister Walkway. The transfer represents the funds being used for capital expenditure. **Alan Arkle & Son** - This fund represents the donation of work done to the hermitage library. The transfer represents the capitalisation of the work in fixed assets. ## **18 Unrestricted funds** The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. ||**At**|**6**|**April**|**2024**|**Income**|**Expenditure**|**Transfers At 30 September**|**Transfers At 30 September**| |---|---|---|---|---|---|---|---|---| |||||||||**2025**| |||||**£**|**£**|**£**|**£**|**£**| |General funds||||-|142,576|(8,211)|(20,588)|113,777| - 18 - ## **THE SHEPHERDS LAW TRUST CIO** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE PERIOD ENDED 30 SEPTEMBER 2025**_ ## **19 Analysis of net assets between funds** |**Unrestricted**
**Restricted**
**Endowment**
**funds**
**funds**
**funds**
**2025**
**2025**
**2025**
**£**
**£**
**£**
**At 30 September 2025:**
Tangible assets
-
-
128,220
Heritage assets
-
-
379,787
Current assets/(liabilities)
113,777
1,000
-
113,777
1,000
508,007|**Total**
**2025**
**£**
128,220
379,787
114,777| |---|---| ||622,784| ## **20 Operating lease commitments** ## **Lessee** At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: |Within one year
Between two and five years
In over five years|**2025**
**£**
1
4
34| |---|---| ||39| Included in the above is £39 remaining of a 70 year peppercorn lease for the land on which the Hermitage sits. The lease is currently held on behalf of the Trustees of the Hermitage at Shepherds Law and the Newcastle Diocesan Society. The lease will be transferred over in due course. ## **21 Related party transactions** J M Carr-Ellison is also a trustee of the Carr-Ellison Family Charitable Trust. During the period the Carr-Ellison Family Charitable Trust donated £9,020 to the charity. The charity also reimbursed the Carr-Ellison Family Charitable Trust £859 for insurance paid for by the Carr-Ellison Family Charitable Trust. There were no amounts outstanding at the period end. During the period the charity paid £1 rent to T Carr-Ellison, the son of trustee J M Carr-Ellison, for the leasehold land owned by the Carr-Ellison estate. There were no amounts outstanding at the period end. The Rt Rev'd Dr Stephen Platten was a trustee of the Friday Charitable Trust. During the period the Friday Charitable Trust donated £163,549 to the charity for the purpose of developing the heritage assets. There were no amounts outstanding at the period end. During the period donations of £176 were received from 1 trustee. - 19 - ## **THE SHEPHERDS LAW TRUST CIO** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE PERIOD ENDED 30 SEPTEMBER 2025**_ |**22**|**Cash generated from operations**|**2025**| |---|---|---| |||**£**| ||Surplus for the period|622,784| ||**Adjustments for:**|| ||Investment income recognised in statement of financial activities|(2,614)| ||Donated assets|(253,870)| ||**Movements in working capital:**|| ||(Increase) in debtors|(23,640)| ||Increase in creditors|30,992| ||**Cash generated from operations**|373,652| |**23**|**Analysis of changes in net funds/(debt)**|| The charity had no material debt during the year. ## **24 The Trustees of the Hermitage at Shepherds Law** During the period assets and funds were transferred over as part of an asset transfer agreement. This included the chapel and the hermitage to the value of £250,000 and cash of £217,870. Initially there wasn't a bank account for the CIO so transactions were administered by the Trustees of the Hermitage at Shepherds Law as an agent. This included collecting income of £21,042, interest accrued at £48, and paid out expenses of £20,996 including £20,000 towards a new walkway. - 20 -