Charity number: 222154 BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES CONTENTS Page Reference and adminlstrative details of the Charity, its Trustees and advisers Trustees. report 3-11 Independent auditors. report on the financial statements 12-15 Statement of financial activities 16 Balance sheet 17 Statement of cash flows 18 Notes to the financial statements 19-39
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES REFERENCE AND ADMINISTRATIVE DEfAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR END 31 MARCH 2024 Trustees Captain J.E. Evans Councillor P. Jackson (resigned 29 September 2023) Councillor R. Bruce (resigned 29 April 2023) Mr D. Faimell Mr D. B. P. Herriott Mr A. W. Herriott Mr M. W. Herriott, Chair from 6 December 2023 Councillor M. Greener Councillor T. Stewart, Vice Chair from 6 December 2023 Councillor R. Mackenzie Councillor L. Stephenson Councillor J. Turton Charlty reglstered number 222154 Principal office Town Hall Marygate Berwick upon Tweed TD15 1BN Independent auditors Kinnair Associates Limited Chartered Accountants Aston House Redbum Road Westerhope Newcastle upon Tyne NE5 1NB Bankers Bank of Scotland 61 Hide Hill Berwick upon Tweed TD15 1EN Solicitors Womble Bond Dickinson St. Ann's Wharf 112 Quayside Newcastle upon Tyne NE99 1SB Chartered Accountants Ryecroft Glenton 32 Portland Terrace Newcastle upon Tyne NE2 1QP Land Steward A. Hamilton Edwin Thompson LLP Chartered Surveyors 4448 Hide Hill Berwick upon Tweed TD15 1AB Page 1
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR END 31 MARCH 2024 Investment Advisor RBC Brewin Dolphin Limited Time Central Gallowgate Newcastle upon Tyne NE14SR Accountant C. R. J. Oakley Clerk W. E. Henry Page 2
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES TRUSTEES. REPORT FOR THE YEAR END 31 MARCH 2024 The Trustees present their annual report together with the audited financial statements of the Charity for the year from 1 April 2023 to 31 March 2024. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the charitys governing document, the Charities Act 2011 and the relevant version of the Statement of Recommended Practice applicable to charities preparing their financial ststements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). Objectives and activities • Pollcles and objectives The Charity known as Berwick-upon-Tweed Corporation (Freemen) Trust is a body corporate govemed by two local Acts of Parliament - the Berwick-upon-Tweed Corporation Act 1843 and the Berwick~ upon~Tweed Corporation (Freemen) Act 1926; and is subject to the terms of a Scheme registered with the Charity Commission on the 4th December 1931. The Act of 1843 settled and established the rights of the Resident Freemen and Widows of Freemen of Berwick- upon-Tweed and set down the manner in which the income from the Estate's land holdings and investments was to be distributed; the Act of 1926 made provision for the establishment of the Trust and the vesting of the Estate in the Trustees and established the manner in which the Trust was to operate. Subsequent arbitrations have been concemed in the construction of the Acts of 1843 and 1926 and the rights. powers and duties of the Trustees, their officers and other interested parties. In setting objectives and planning for activities, the Trustees have gNen due consideration to general guidance published by the Charity Commission relating to public benefit, induding the guidance 'Public benefit: running a charity (PB2)'. • Strategies for achievlng objectlves The Trustees meet monthly to conduct the business of the Charity in accordance with the provisions of the 1926 Act, and the administration of the Trust is undertaken on a day-to-day basis by their clerk (Liam Henry). their Accountant (Charles Oakley) and their Land Steward (Andrew Hamilton). The Trusfs retained Legal Advisors are Womble Bond Dickinson of Newcastle-upon-Tyne; their Auditors, Kinnair Associates Limited of NewcasUe- upon-Tyne; their Chartered Accountants, Ryecroft Glenton of Newcastle-upon-Tyne; and their investment advisors and stockbrokers, Brewin Dolphin of Newcastle-upon- Tyne. • Activltles undertaken to achieve objectives The bulk of the Trustees, income is derived from their agricultural Estate and invesknents. The agricultural land, mainly to the north of the River Tweed and amounting to over 2.250 acres, is divided into a number of holdings, the tenancies of which are governed by the Agricultural Holdings Acts. The capital value of the investments is £10.306m. The income from the Estste and investments is distributed to the Guild of Freemen and their Widows and a number of other beneficiaries in accordance with the temis of the goveming acts and the arbitrations made thereunder. Page 3
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES TRUSTEES. REPORT (CONTINUED) FOR THE YEAR END 31 MARCH 2024 Achievements and perforniance • Review of activitles General developments Retail Park site - further to the Trustees agreement to the grant of a licence agreement to the developer for the construction of further retail buildings on land retsined by the Trustees for which a major national retailer had been identified amongst others, progress in relation to the full development of the site has been delayed for a range of reasons. The developer had indicated that they wished to exercise the option agreement which they had with the Trustees. West Hope site - the Trustees have begun to look at an alternative route for the surface water drain which is to serve this site as a result of a failure to obtain the agreement of the land owner in relation to the former preferred route. An emphasis on the use of green land wherever possible is to be explored. Hudson Homes West Hope site - following the decision taken last year by the Trustees to take responsibility for the drainage works on the site the works were progressed in a dose working relationship with those responsible for the adjoining retail development to enable a masterplan to be developed for the wider land holding in this area of the estate. Estate management The sale of Baldersbury Hill farmhouse, the completion of which had been delayed due to complications caused, in the main. by the damage occasioned to the propety by Storni Arwen and the subsequent dealings with the Trustees insurers as well as conflicting VAT advice relating to the transaction is still to complete Land at East Ord - AMP Clean Energy requested an easement from the Trustees to lay a cable in relation to their large-scale heat decarbonization project for the Tweed Valley Maltings which was agreed by the Trustees The agricultural holding at Whitedamhead, some 80 acres, was marketed for let, following agreement from the Trustees to accede to the previous tenants desire to give up their tenancy, and received a healthy level of interest with the Trustees ultimately agreeing to accept an offer from Messrs Whiteford of Scremerston The Trustees agreed to demolish one of the fami steading buildings comprised within the Puntons fami tenancy at West Edge Farm and to replace it with a new manure store, the steel structure and roof of which is to be grant funded. The store is to be treated as a tenant's improvement and written off over the next twenty years. The sale of the small area of land adjoining Conundrum Farmhouse as garden land to the ProPeS owners was still to complete at 31 March 2024. Previously the owners of a commercial accommodation business in Berwick had approached the Land Steward seeking to acquire some of the Trustees land adjoining their business for the purpose of an extension to their operation. Having agreed that they would consider the matter should a proposal be brought forward nothing further had been heard from the party concemed and the matter was considered dosed. The Trustees became entitled during the year to a further payment of £20.000 from the ongoing development of the steading at Conundrum Fami by the original purchaser. A request from the tenants at Brow of the Hill to extend the existing car park at the farm to accommodate employees parking was agreed. It was agreed to split the cost of an electrical rewiring needed at No 2 Conundrum Fami Cottages with the tenant farmer. Page 4
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES TRUSTEES. REPORT (CONTINUED) FOR THE YEAR END 31 MARCH 2024 Achievements and perforniance (continued) Town Hall The actions highlighted by last yearfs access audit report continued to be progressed during the year including the obtaining of a Conservation Assessment report with the Trustees receiving a presentation from their Conservation Architect which sought to outline the options which the Trustees might pursue should they ultimately decide to install a lift in the building, the costs of which they requested be identrfd for their detailed consideration. Concem was expressed about the adequacy of toilet provision in the building should lift works be progressed. Notwithstanding the possibility that significant works might be carried out in due course to this part of the building in relation to any installation of a lift the Trustees agreed to have works of decoration carried out to the intemal stsircase access as well as the ground floor gentlemen's toilet. It was identified that the stone column on the south west comer of the portico was badly delaminated in places and, following liaison with the Conservation Officer at Northumberland County Council, the Trustees agreed to replace some of the old stone with new quadrant stone to resolve the issue. The metal railings at the front of the building were repaired and the nonslip marking on the front steps of the Town Hall was renewed during the year and it was agreed to replace the signs at this part of the building to be compliant with the prevailing British stsndard. The Trustees also agreed to replace the duck boards on the roof of the building and had sought quotes from contractors. Town House café Further to the decision taken previously the improvement works relating to the installation of secondary glazing were completed satisfactorily. The premises again reopened as a café in the spring, under a three year lease, following a further expression of interest from a Mr l Longstaff and Mr M Parkin-Ross. The premises had also been occupied on a temporary basis by the Lindisfame Methodist Church before and after Christmas for use as a community warm hub. The website for the Town Hall, which the Trustees had commissioned last year, came into operation towards the end of the calendar year. The link for the site, which provides a range of information relating to the building including details regarding its hire, is https:Ilberwicktownhall.org.uk. Page 5
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES TRUSTEES. REPORT (CONTINUED) FOR THE YEAR END 31 MARCH 2024 Achievements and perfomiance (continued) • Investment policy and perforniance Brewin Dolphin Asset Management responsibilities: (a) To invest in a suitable, diversified portfolio of assets in accordance with The Trustees Act 2000. (b) To act at their discretion. but within the guidelines set down by the Trustees as detailed in 4 below. In addition, the managers are expected to implement changes in the asset mix and select individual securities within each asset class. (c) To provide the Trustees with regular valuations, in the fomi of an investment report describing activity during the period, performance against agreed benchmarks, a summary of market perfomance and the investment outlook. (d) To notify the Trustees of transactions on a day to day basis. (e) No more than 5 % of the portfolio should be invested in any one equty. (fj To review regularly the long-tenn investment objectives of the portfolio in the light of economic and market conditions and liaise with the Trustees on any proposed changes to asset allocation. Long Term Objectives of the Trustees: (a) To maintain the long~temi purchasing power of the capital and income against inflation. (b) To review the long-term performance of the investment managers on a rolling three year basis. Perfomiance Measurement: (a) Perfomiance will be monitored on a regular basis and analysed in the managers, invesknent report. (b) The managers will aim to at least match the perfom)ance of the major benchmark indices that relate to the respective asset groups, et FT British Government Securities Index, FTSE Actuaries All- Share Index and the FTIS&P World Index (sterling based). (c) The performance will also be compared with the Association of Private Client Investment Managers & Stockbrokers (APCIMS) Income index and Retail Price Index. The Review Process: (a) At least once a year the Trustees will review the investment performance of the Investment Managers as detailed above. (b) Long temi perfomiance should be reviewed on a rolling three year basis and the following factors should also be taken into consideration. (i) The performance of other fund managers. (li) The Trustees should take note of the qualty of advice and assess the suitability of the managers in temis of level of fees. (iii) Familiarity with the investment mandate. Page 6
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES TRUSTEES. REPORT (CONTINUED) FOR THE YEAR END 31 MARCH 2024 Achievements and perfomiance (continued) (N) The quality of service in terms of reports and administration. (v) The working relationship with the investment management team. (c) Consistent under-performance over this period will trigger a review of the Investrnent Managerfs position as adviser to the Trustees. Remuneration: An annual management fee of 0.40A plus vat will be levied on total funds under management. This will be charged quarterly in arrears. Annual Investment Commentary: The Trustees have adopted a policy of seeking medium risk investments in order to generate income and capital growth. The charity remains a long temi investor and, on professional advice, holds a diversified portfolio of equities, bonds and property with some cash. The combined portfolio total retum was +12.4 % for the year to 31 March 2024 (2023: _5.5 % ). This compares with total retums for the following indices: Year to 31.03.24 + 13.4% - o.ooA + 7.40/0 +8.4% +21.40 3.5% +6.3% Year to 31.03.23 BD Risk Category 6 Benchmark FTSE British Govemment All Stocks Index Iboxx £ Corporate Bond Index FTSE All Share Index FrsE All World Ex UK Index IA Propety Index IA Targeted Absolute Return Index - 16.3% 10.6% + 2.9% - 0.90 - 8.40 + 0.3Yo The RBC Brewin Dolphin Risk Category 6 Benchmark comprises 3.5% UK Gilts, 2.5% UK Bonds, 11 % Overseas Bonds, 19 % UK Equities, 49.5 % Overseas Equities, 3 % Property, 90A Altematives & 2.50A Cash. 2023 had started well and largely confounded forecasts with the global economy generally proving to be stronger than anticipated. The trends continued into the second quarter, essentially 2022's losers becoming 2023's winners as the technology sector bounced back from the previous yearfs rout. Growth and qualty styles were at the forefront, although performance was mainly powered by a handful of mega-cap US tech stocks. The one topic the market became extremely excited about was artificial intelligence (Al). Overall. markets stabilised after the banking tunnoil in March and the deficit in annual relative perfomiance narrowed markedly this period as a dreadful first quarter of 2022 fell out of the calculation. Thereafter, however, it was a struggle to make further progress and 2023 gains were pared back. July and August had already been fairly mixed and September proved to be typically weak as global markets faltered and led to the worst month for a year. Hopes for a broadening of the rally were not met and, instead, leadership changed, with energy taking over the mantle from technology companies. Easing inflation and upward surprises for growth had been supportive for most of the year but the dynamic changed and higher energy prices complicated those stories and became the latest conundrum for central banks. The weakness continued into the final quarter of 2023 before the most tangible signs of an easing in inflation came through and convinced investors that major Westem central banks were moving doser to a much awaited pivot, from raising to cutting interest rates. As the end of the year approached, a 'Santa rall compounded gains and saw global equity markets register a rise of over 15 % from late October. The S&P 500 index traded close to record, the NASDAQ 100 had its best year since 1999, and the global bond market saw its biggest two-month gain on record. Page 7
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES TRUSTEES. REPORT (CONTINUED) FOR THE YEAR END 31 MARCH 2024 Achievements and perforniance (continued) Markets have rallied strongly for the last 18 months and a positive quarter at the start of 2024 built on the gains from 2023. The S&P 500 reached new all-time highs and, from a technical perspective, it was encouraging to see evidence of leadership shifting from technology and growth stocks to a broader range of companies. The US and Japan were well ahead of other regions although, for UK investors. returns from the latter have been affected throughout the year by significant weakness in the Yen. As investors switched out of value and income producing sectors the UK was a (relative) straggler and concems over the Chinese economy saw Far East and emerging markets lag developed market retums significantly. Since the step change in inflation data, early in November 2023, put central bank rate cuts firmly on the table relative performance has seen a noticeable boost. Whilst the pace and trajectory of easing is still uncertain, and there will always be many other forces that contribute to the to-ing and fro-ing in markets, we are confident that our approach will continue to see the benefit if global inflation continues on the current downward trend. Page 8
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES TRUSTEES. REPORT (CONTINUED) FOR THE YEAR END 31 MARCH 2024 Flnancial review • Going concern After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concem basis in preparing the financial statements. Further details regarding the adoption of the going concem basis can be found in the accounting policies. • Reserves policy At 31 March 2024, the Charity had total funds of £29,975,628 (2023: £27,907,252), all of which are endowment funds. The endowment funds consist of property held to generate future income. There are no restricted funds at the financial year end as all surpluses are paid out to beneficiaries. The Trustees recognise that the level of reserves and balances must be appropriate for the financial challenges that the prevailing and future environment may present The Trustees also recognise that the level of reserves and balances are to be maintained at a level appropriate for the organization. The Trustees will comply with the law and all statutory guidance relating to the maintenance of reserves and balances. Similarly it will refer to non-statutory guidance wherever it is available. The Trustees will in certain circumstances consider the creation of reserves for specific purposes and for a defined time period. These reserves are called Earmarked Reserves and will be approved by the Trustees. The level of a specific reserve, its purpose and a process to authorise release of funds will be defined at the time of its proposal. • Review of the financial position at the year end The income of the charity for the year amounts to £806.687 (2023: £698.313) and costs of £806.687 {2023: £698,313) giving a surplus of £nil (2023: £nil). Endowment funds at the year end amount to £29,975,628 (2023: £27,907,252). • Material investsnents policy The Freemen Trustees have transferred the responsibilities for the management of investments to a third party with the appropriate levels of capacity and expertise to undertake this role. The current investment managers were appointed following a competitive tender process. • Prlnclpal risks and uncertainties The Trustees have assessed the major risks to lch the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks. Page 9
BERWICK UPON TEED CORPORATION (FREEMEN) TRUSTEES TRUSTEES. REPORT (CONTINUED) FOR THE YEAR END 31 MARCH 2024 • Principal funding The principal source of funding is derived from a combination of landlproperty rental income and interest received from investrnents. Structure, governance and management • Constitution Berwick upon Tweed Corporation (Freemen) Trustees is a registered charity, number 222154, and is constituted under a Trust deed. It is regulated by the Berwick upon Tweed Corporation (Freemen) Acts 1843 and 1926. • Methods of appointment or election of Trustees The Trustees were incorporated as a body by The Berwick-upon-Tweed Corporation (Freemen) Act 1926. The Trustees Committee comprises of five non-freemen appointed by Berwick-upon-Tweed Town Council in November each year and five Freemen (who may be either resident or non-resident in the Borough) elected by the Freemen in October or November each year. • Organisational structure and decision•making policies The Trustees serve in accordance with the goveming document and hold regular meetings throughout the year. The Trust and ts property are administered and managed in accordance with the constitution by the Trustees Committee. • Policies adopted for the induction and trainlng of Trustees A basic explanation of the roles and duties of a Trustee are provided upon appointrnent. This includes information and documentation relating to both the history and govemance of both the Trustees and Guild of Freemen. • Financial risk management The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks. Plans for future periods The retail site at North Road and the remaining land at West Hope present the main development opportunities for the immediate fvture although the Trustees continue to explore the development potential of their fami premises whenever the opportunity arises and have this year entered into a medium temi exclusivity agreement with a renewable energy development company in relation to an area of agricultural land in their ownership. Page 10
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES TRUSTEES. REPORT (CONTINUED) FOR THE YEAR END 31 MARCH 2024 Statement of Trustees. responsibilitles The Trustees are responsible for preparing the Trustees. report and the financial statements in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial ststements, the Trustees are required to: select suitable accounting policies and then apply them consistently, observe the methods and principles of the Charities SORP (FRS 102): make judgments and accounting estimates that are reasonable and prudent: state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on the going concem basis unless it is inappropriate to presume that the Charity will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charitys transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Charity and hence for tsking reasonable steps for the prevention and detection of fraud and other irregularities. Disclosure of inforniation to auditors Each of the persons who are Trustees at the time when this Trustees, report is approved has confirmed that: so far as that Trustee is aware, there is no relevant audit infomiation of which the charitys auditors are unaware. and that Trustee has taken all the steps that ought to have been tsken as a Trustee in order to be aware of any relevant audit information and to estsblish that the charitys auditors are aware of that information. Auditors The auditors, Kinnair Associates Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees. Approved by order of the members of th rd of Trustees on 4 December 2024 and signed on their behalf by. Councillor T. Stewart (Chair of Trustees) C.R.J. Oakley (Accountant to the Trustees) Page11
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES Opinion We have audited the financial statements of Berwick upon Tweed Corporation (Freemen) Trustees (the 'charity) for the year ended 31 March 2024 which comprise the Ststement of financial activities. the Balance sheet, the Statement of cash flows and the related notes, 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 Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards 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 been withdrawn. This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. In our opinion the financial statements: give a true and fair view of the state of the charitys affairs as at 31 March 2024 and of its incoming resources and application of resources for the year then ended: have been properly prepared in accordance with United Kingdom Generally ACpted Accounting Practice: and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with Intemational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial ststements in the United Kingdom, including the Financial Reporting Council'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 concem 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 collectivety, may cast significant doubt on the charitys 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 SponSibl11t1eS and the responsibilities of the Trustees with respect to going concem are described in the relevant sections of this report. Page 12
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES (CONTINUED) Other inforniation The other infomiation comprises the information included in the Annual report other than the financial statements and our Auditors, report thereon. The Trustees are responsible for the other infomiation contained within the Annual report. Our opinion on the financial statements does not cover the other information and. except to the extent otherwise explicitly stated in our report, we do not express any fom of assurance conclusion thereon. Our responsibility is to read the other infomiation and. in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements. we are required to detemiine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have perfomied, we condude that there is a material misstatement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you rf, in our opinion: the infomiation given in the Trustees, report is inconsistent in any material respect with the financial ststements; or sufficient accounting records have not been kept; or the financial statements are not in agreement with the accounting records and returns; or we have not received all the infomiation and explanations we require for our audit. Responslbilities of trustees As explained more fully in the Trustees, responsibilities statement. the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees 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 ststements, the Trustees are responsible for assessing the charitys abilty to continue as a going concem, disclosing, as applicable, matters related to going concem and using the going concem 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. Page 13
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF BERMCK UPON TWEED CORPORATION . (FREEMEN) TRUSTEES (CONTINUED) Auditors. responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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 Auditors, 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 rf, 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 extent to which our procedures are capable of detecting irregularities. including fraud is detailed below: the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations: we identified the laws and regulations applicable to the Charity through discussions with trustees and other management, and from our commercial knowledge and experience of the charity sector; we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Charity, including the Charities Act 2011 et seq., the Charities (Protection and Social Investment) Act 2016, the Trustees Acts 1925 and 2000 and Charity Commission regulation; we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and we ensured that the identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audiL We assessed the susceptibility of the Charitys financial statements to material misstatement. induding obtaining an understanding of how fraud might occur, by: _ making enquiries of management as to where they considered there was susceptibility to fraud and their knowledge of actual, suspected and alleged fraud; and considering the intemal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: _ performed analytical procedures to identify any unusual or unexpected relationships; tested journal entries to identify unusual transactions; and assessed whether judgements and assumptions made in determining the accounting estimates set out in the notes to the financial statements are indicative of potential bias. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which indude, but are not limited to: _ agreeing financial statement disclosures to underlying supporting documentation; reading the minutes of meetings of those charged with govemance; enquiring of management as to actual and potential litigation and claims: and reviewing correspondence with HMRC, relevant regulators and the Charitys legal advisors. Page 14
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES (CONTINUED) There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other managernent and the inspection of regulatory and legal correspondence. if any. Material misstatements that arise due to fraud can be 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.or .uklauditorsres nsibilities. This description fomis part of our Auditors, report. Use of our report This report is made solely to the charitys trustees. as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitys trustees those matters we are required to state to them in an Auditors, report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibilty to anyone other than the charity and its trustees, as a body. for our audit work, for this report, or for the opinions we have formed. Kinnair Associates Limited Chartered Accountants Registered Auditors Aston House Redburn Road Westerhope Newcastle upon Tyne NE5 1NB 4 December 2024 Kinnair Associates Limited are eligible to act as auditors in temis of section 1212 of the Companies Act 2006. Page 15
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES STATEMENT OF FINANCIAL ACTivmES FOR THE YEAR END 31 MARCH 2024 Endowment funds 2024 Restricted funds 2024 Total funds 2024 Total funds 2023 Note Income and endowments from: Investments Other income 675,003 131,684 675,003 131,684 616,236 82,077 Total income and endowments 806,687 806.687 698,313 Expenditure on: Raising funds Charitable activities 82,124 724,563 82,124 724,563 77,848 620,465 Total expenditure 806,687 806.687 698,313 Net income before net gains on Investments Net gains on investments 13 2,068,376 2.068,376 393,814 Net movement in funds 2.068.376 2,068,376 393,814 Reconciliation of funds: Total funds brought forward Net movement in funds 27,907,252 2,068.376 27,907.252 2,068,376 27,513.438 393,814 Total funds carrled forward 29,975,628 29,975,628 27,907,252 The Statement of financial activities includes all gains and losses recognised in the year. The notes on pages 19 to 39 form part of these financial statements. Page 16
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Note Fixed assets Heritage assets Investments Investment property 16 3,770 10,305.605 19,825,000 3, 770 9,008, 103 19,000,000 17 15 30,134,375 28,011,873 Current assets Debtors Cash at bank and in hand 18 164.717 702,165 129.918 724. 834 866,882 854. 752 Creditors: amounts falling due within one year 19 (1,025,629) (959. 373) Net current liabilities (158,747) (104, 621) Total assets less current liabilities 29,975,628 27,907,252 Total net assets 29,975,628 27,907.252 Charity funds Endowment funds 21 29,975.628 27,907,252 Total funds 29.975,628 27,907,252 The financial statements were approved and authorised for issue by the Trustees on 04 December 2024 and signed on their behalf by: Counclllor T. Stewart (Chair of Trustees) C.R.J. Oakley (Accountant to the Trustees) The notes on pages 19 to 39 form part of these financial statements. Page 17
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES STATEMENT OF CASH FLOWS FOR THE YEAR END 31 MARCH 2024 2024 2023 Cash flows from operating activities Net cash used in operating activities 31,457 153,561 Cash flows from investing activities Proceeds from sale of investments Purchase of investments 1.564,512 583.686 (1,618,638) (585, 150) Net cash used In Investing activities (54,126) (1,464) Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year (22,669) 724,834 152,097 572.737 Cash and cash equlvalents at the end of the year 702,165 724, 834 The notes on pages 19 to 39 form part of these financial statements Page 18
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 General inforniation The Berwick upon Tweed Corporation (Freemen) Trustees is a registered tharity, number 222154. The charity is unincorporated and its registered office is Town Hall, Marygate, Berwick upon Tweed, TD15 1BN. Accounting policies 2.1 Basis of preparation of financlal statements The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. The financial statements have been prepared to give a 'true and fairf view and have departed from the Charities (Accounts and Reports) Regulations 2008 onty to the extent required to provide a 'true and fairf view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. Berwick upon Tweed Corporation (Freemen) Trustees meets the definition of a public benefrt entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise ststed in the relevant accounting policy. The financial statements are prepared in Sterling (£), whith is the fvnctional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £. 2.2 Going concern The charitsble trust has cash resources and no requirement for extemal funding. The trustees have reasonable expectation that the charitable trust has adequate resources to continue in operational existence for the foreseeable future. They continue to believe the going concem basis of accounting is appropriate in preparing the annual financial ststements. 2.3 Income All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the servi. Page 19
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 Accounting policies (continued) 2.4 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 totsl 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 activty are apportioned between those actNities on a basis consistent with the use of resources. Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitsble purposes and indudes costs of all fundraising activities events and non-charitable trading. Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charitys objectives, as well as any associated support costs. All expenditure is indusive of irrecoverable VAT. 2.5 Interest receivable Interest on funds held on deposit is included when receivable and the arnount can be measured reliably by the Charity; this is nomially upon notification of the interest paid or payable by the institution with whom the funds are deposited. 2.6 Intangible assets and amortisation Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. Amortisation is provided on intsngible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful lrfe. The estimated useful lives are as follows: Intangible assets 5 years straight line 2.7 Heritage assets In the absence of a professional valuation the policy is rK>t to reinstate any value for the original cost of the Town Hall wholty written off but to capitalise any subsequent costs incurred upon work of reconstruction or fundamental repairs to the building whenever considered appropriate. Page 20
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 Accounting policies (continued) 2.8 Investments Fixed asset investments are a form of financial instrument arKI are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as 'Gainsl(Losses) on investments. in the Statement of firnCIal activities. Investments held as red assets are shown at cost less provision for impaimient. Investment properties are induded in the balance sheet at their open market value in accordance with the Charities Statement of Recommended Practice "Accounting and Reporting by Charities" and are not depreciated. 2.9 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 2.10 Cash at bank and in hand Cash at bank and in hand includes cash and short-tenn 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. 2.11 Llablllties Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. 2.12 Flnancial Instruments The Charity only has financial assets and financial liabilities of a kind that qualfy 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 measured at amortised cost using the effective interest method. 2.13 Pensions The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year. Pension costs, representing Trustees contributions to individual employee schemes, are charged to expenditure when they become payable. Page 21
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 Accounting policies (continued) 2.14 Fund accounting Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial ststements. Investment income, gains and losses are allocated to the appropriate fund. Page 22
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 Investment income Restricted funds 2024 Total funds 2024 Rents received Investment income - listed investments Bank interest 428,872 239,446 6,685 428,872 239,446 6,685 675,003 675,003 Restncted funds 2023 Total fvnds 2023 Rents received Investment income - listed investments Bank interest 412,133 203,063 1,040 412, 133 203,063 1,040 616,236 616,236 Other incoming resources Restricted funds 2024 Total funds 2024 Other income (note 5) 131.684 131.684 Restricted fvnds 2023 Total fvnds 2023 Other income (note 5) 82,077 82,077 Page 23
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 Other income 2024 2023 Easement income Reimbursement of professional fees by buyer of land Network Rail - compound site folly fami Michael Guthrie - camphill steading development TCD Estates Other income 52,500 73,420 30,250 16,667 19,600 15,560 5.764 131,684 82,077 Investment management costs Restricted funds 2024 Total funds 2024 Investment manager Land Steward 40,817 41.307 40,817 41,307 82,124 82,124 Restncted funds 2023 Total funds 2023 Investment manager Land Steward 38,369 39,479 38,369 39,479 77,848 77,848 Page 24
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 Analysis of expenditure on charitable activities Summary by fund type Restricted funds 2024 Total 2024 Direct costs 724,563 724,563 Restncted funds 2023 Total 2023 Direct costs 620,465 620.465 Summary by expenditure type Staff costs Other costs 2024 2024 Total 2024 Direct costs - Activities 35,251 689,312 724.563 Staff costs Other costs 2023 2023 Total 2023 Direct costs - Activities 35,209 585.256 620,465 Analysls of expenditure by activities Actlvltles undertaken directly 2024 Support costs 2024 Total funds 2024 Direct costs 474,806 249.757 724,563 Page 25
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 Analysis of expenditure by activities (continued) Activiti'es undertaken directly 2023 Support costs 2023 Total funds 2023 Direct costs 397,888 222,577 620,465 Analysis of direct costs Total funds 2024 Activities 2024 Payments to Resident Freemen and Widows of Freemen Corporation Academy Foundation Payment to Oldest Freemen Stints in Lieu of Meadows Payment of Surplus on Schedule111 Surplus on Schedule l and11 83,486 450 83.486 265 389,069 1,486 265 389,069 1,486 474,806 474.806 Total funds 2023 Activities 2023 Payments to Resident Freemen and Widows of Freemen Corporation Academy Foundation PayThent to Oldest Freemen Stints in Lieu of Meadows Payment of Surplus on Schedule111 Deficit on Schedule l and11 88, 143 450 88,143 450 50 265 313,748 (4, 768) 265 313.748 (4, 768) 397,888 397,888 Page 26
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 Analysis of expenditure by activities (continued) Analysis of support costs Total funds 2024 Activities 2024 Staff costs Heating. lighting and cleaning Rates Insurance - Estate Repairs and improvements Furniture and fittings Estate - repairs and maintenance Insurance - Town Hall Legal and professional fees Service charge Freemen's Committee Messenger Printing and stationery Governance costs Miscellaneous expenses Miscellaneous other employee costs 35,251 23,314 3,553 36,886 14,566 29 43,359 15,287 24,116 30,030 6,998 160 4.080 11,525 367 236 35,251 23,314 3.553 36,886 14,566 29 43,359 15,287 24,116 30,030 6,998 160 4,080 11,525 367 236 249,757 249,757 Page 27
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS . FOR THE YEAR END 31 MARCH 2024 Analysis of expenditure by activities (continued) Analysis of support costs (continued) Total funds 2023 Activities 2023 Stsff costs Heating, lighting and cleaning Rates Insurance - Estate Repairs and improvements Furniture and fittings Estate - repairs and maintenance Insurance - Town Hall Legal and professional fees servi charge Freemen's Committee Messenger Printing and stationery Govemance costs Miscellaneous expenses Miscellaneous other employee costs 35.209 18,876 3, 788 33,494 29,575 21,032 (2, 553) 15.161 19,249 29,105 6,900 160 1.271 10, 740 307 35,209 18,876 3, 788 33,494 29,575 21,032 (2, 553) 15, 161 19,249 29,105 6,900 160 1,271 10,740 307 263 263 222,577 222,577 Governance costs included above comprise: 2024 2023 Fees payable to the charitys auditor for the audit of the charitys annual accounts 5,485 6,040 5, 225 5,515 Preparation of financial statements 11,525 10,740 Page 28
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 Auditors. remuneration 2024 2023 Fees payable to the Charitys auditor for the audit of the Charivs annual accounts 5,485 5,225 10. Staff costs 2024 2023 Wages and salaries Contribution to defined contribution pension schemes 32,104 3,147 32,212 2,997 35,251 35,209 The average number of persons employed by the Charity during the year was as follows: 2024 No. 2023 No. Average number of full time equivalent staff No employee received remuneration amounting to more than £60,000 in either year. Page 29
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 11. Trustees. remuneratlon and expenses During the year, no Trustees received any remuneration or other benefits (2023 - £NIL). During the year, no Trustee expenses have been incurred (2023 - £NIL). 12. Gains and losses on revaluation of investment assets 2024 2023 Gainl(loss) on revaluation of listed securities Gain on revaluation of investment properties 852,148 875,000 (699, 754) 1,165,000 1,727,148 465,246 13. Net gains on investments 2024 2023 Gain/(loss) on disposal of listed securities Gain on disposal of investment properties 46,341 294,887 (72, 182) 750 341,228 (71,432) Page 30
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 14. Intangible assets Intangible assets Cost At 1 April 2023 8,128 At 31 March 2024 8,128 Amortisation At 1 April 2023 8,128 At 31 March 2024 8,128 Net book value At 31 March 2024 At 31 March 2023 Page 31
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 15. Investment property Freehold investment property Valuation At 1 April 2023 Disposals Surplus on revaluation 19,000.000 (50,000) 875,000 At 31 March 2024 19,825,000 The latest valuations were made in 2024 by Edwin Thompson LLP, chartered surveyors. on an open market value for existing use basis. 16. Heritage assets ssets recognised at cost Town Hall 2024 Total 2024 Carrying value at 1 April 2023 and 2024 3.770 3,770 3,770 3,770 The above costs represent Town Hall restoration costs. The original cost of the Town Hall is not included in the balance sheet because in the opinion of the Trustees, the cost of professionally valuing the Town Hall to include a value in the financial statements outweighs the benefits to the users of the financial staternents. The Town Hall (induding contents) has been valued for insurance purposes at £13,318,414. Page 32
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 17. Fixed asset investments Cash held for re- investment Listed investments Total Cost or valuation At 1 April 2023 Additions Disposals Revaluations 8,672.162 1,618,638 (962.686) 898.489 335,941 (256,939) 9,008,103 1,361,699 (962,686) 898,489 At 31 March 2024 10,226.603 79,002 10,305,605 Net book value At 31 March 2024 10.226,603 79,002 10,305.605 At 31 March 2023 8,672. 162 335,941 9,008, 103 18. Debtors 2024 2023 Due withln one year Other debtors Prepayments and accrued income 100 164,617 100 129,818 164,717 129.918 Page 33
BERMCK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 19. Creditors: Amounts falling due within one year 2024 2023 Other taxation and social security Other creditors Accruals and deferred income 9,079 456,790 559,760 20.413 379,983 558,977 1,025,629 959,373 Deferred income is composed of deferred rentsl income and compensation received to rectify drainage problems and is being carried forward to be released at the same time as future associated expenditure. Other creditors comprise: 2024 2023 Berwick Town Council Schedule111 Surplus Freemen's Committee Schedule111 Surplus Retention Fund (1926 Act, sect. 27(3)) Schedule l and11 Lands Revenue 195.405 193,664 300 157,743 156,005 300 65.935 67,421 456,790 379.983 20. Financial instruments 2024 2023 Financial assets Financial assets measured at fair value through income and expenditure 10.305,605 9,008, 103 Financial assets measured at fair value through income and expenditure comprise listed investments. Page 34
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 21. Statement of funds Statement of funds - current year Balance at 31 March 2024 Balance at 1 April 2023 Gainsl (Losses) Income Expenditure Endowment funds Schedule l and11 Lands Schedule111 Lands Schedule IV Lands 2,930,222 16,162,653 8,814,377 179,872 3,110,094 1,315.758 17.478,411 572.746 9,387,123 27,907,252 2,068,376 29,975,628 Restricted funds Schedules l and11 Lands Schedule111 Lands Schedule IV Lands 87,639 379,263 339,785 (87,639) (379,263) (339,785) 806,687 (806,687) Total of funds 27,907.252 806,687 (806,68n 2,068,376 29,975,628 Page 35
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 21. Statement of funds (continued) Statement of funds - prior year Balance at 31 March 2023 Balance at 1 Apn"12022 Gains/ (Losses) Income Expenditure Endowment funds Schedule l and11 Lands Schedule111 Lands Schedule IV Lands 2,791,269 16,295, 790 8,426,379 138,953 2,930,222 (133,137) 16, 162,653 387,998 8,814,377 27,513,438 393,814 27,907,252 Restricted funds Schedules l and11 Lands Schedule111 Lands Schedule IV Lands 86,029 315,746 296,538 (86, 029) (315. 746) (296, 538) 698,313 (698,313) Total of funds 27,513,438 698,313 (698,313) 393,814 27,907,252 22. Summary of funds Summary of funds - current year Balance at 31 March 2024 Balance at 1 April 2023 Gainsl (Losses) Income Expenditure Endowment funds Restricted funds 27,907,252 2,068,376 29.975,628 806,687 (806,687) 27,907,252 806,687 (806,687) 2,068,376 29,975,628 Page 36
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 22. Summary of funds (continued) Summary of funds . prior year Balance at 31 March 2023 Balance at 1 Apn'l 2022 Gain (Losses) Income Expenditure Endowment funds Restricted funds 27,513,438 393,814 27,907,252 698,313 (698,313) 27,513,438 698.313 (698,313) 393,814 27,907,252 23. Analysis of net assets between funds Analysis of net assets between funds - current period Endowment funds 2024 Total funds 2024 Fixed asset investrnents Investment property Heritage assets Current assets Creditors due within one year 10,305,605 10,305,605 19,825,000 19,825,000 3,770 3,TTO 866,882 866,882 (1,025,629) (1,025,629) Total 29,975.628 29,975,628 Analysls of net assets between funds - prfor perlod Endowment funds 2023 Total fvnds 2023 Fixed asset investments Investment property Heritage assets Current assets Creditors due within one year 9, 008,103 9,008,103 19,000,000 19,000,000 3,770 3, 770 854. 752 854, 752 (959,373) (959,373) Total 27,907,252 27,907,252 Page 37
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 24. Reconciliation of net movement in funds to net cash flow from operating activities 2024 2023 Net income for the period (as per Statement of Financial Activities) 2,068,376 393,814 Adjustments for: Gains on investrnents (Increaseydecrease in debtors Increase in creditors (2,068,376) (393.814) (34.799) 48.153 66,256 105,408 Net cash provided by operating activities 31.457 153,561 25. Analysis of cash and cash equivalents 2024 2023 Cash in hand 702.165 724, 834 Total cash and cash equivalents 702,165 724,834 26. Analysis of changes in net debt At 1 Aprll 2023 Cash flows At 31 March 2024 Cash at bank and in hand 724,834 (22.669) 702.165 724.834 (22,669) 702.165 27. Pension commitments Pension costs, representing Trustees contributions to individual employee schemes, are charged to expenditure when they become payable. The charge for the year was £3,147 (2023: £2,997). No contributions are due at the year end. Page 38
BERWICK UPON TWEED CORPORATION (FREEMEN) TRUSTEES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR END 31 MARCH 2024 28. Related party transactlons The Charity has not entered into any related party transaction during the year, nor are there any OLrtstanding balances owing between related parties and the Charity at 31 March 2024. Page 39