WO1912/MAS/MAH/LJ
13 April 2023
PRIVATE & CONFIDENTIAL
Mrs C H Compton The Worgan Trust Ridge Farm Kington Flyford Flavell Worcestershire WR7 4DH
Dear Candia
Accounts for the year ended 31 December 2022
I enclose a copy of the company s full financial statements for the year ended 31 December 2022 which are for filing at the Charity Commission by 31 October 2023.
These financial statements are for review by the trustees and if they are approved, I would be grateful if they could be signed (in black ink) and dated on the Balance Sheet on page 8 and also the Trustees ’ Report on pages 4 and 5 as indicated. Once I receive the signed copies, I will let you have a copy of the accounts for your records.
If you have any queries, please do not hesitate to contact me.
Yours sincerely
M A SKELLUM
Enc
Charity registration number: 252062
The Worgan Trust
Annual Report and Financial Statements for the Year Ended 31 December 2022
The Worgan Trust
Contents (continued)
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 4 |
| Statement of Trustees' Responsibilities | 5 |
| Independent Examiner's Report | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Notes to the Financial Statements | 9 to 15 |
The Worgan Trust
Reference and Administrative Details
Trustees Mr B I Compton Mrs C M Salmon Mr C B Compton Mrs C H Compton, Chair Mr F J E Salmon Mrs J E Cobain Mrs M Cobain Principal Office P O Box 876 Worcester WR4 4EP Solicitors Lambe Corner and Co 36/37 Bridge Street Hereford Herefordshire HR4 9DJ Charity Registration Number 252062 Property Managers N Russell Lavender Cottage Lucton Leominster Herefordshire HR6 9BH Independent Examiner Ballards LLP 11c Kingswood Road Hampton Lovett Droitwich Worcestershire WR9 0QH
Page 1
The Worgan Trust
Trustees' Report
The trustees present the annual report together with the financial statements of the charity for the year ended 31 December 2022.
Objectives and activities
Objects and aims
The Worgan Trust was created to hold land for protection and preservation. This purpose is sustained through continued ownership of Longdon and Withybed Woods in Wyre Forest near Bewdley on the Shropshire side of Dowles Brook, and Chapman’s Hill Farm in the Clent Hills. In the former case, access is enjoyed by members of the public using the numerous rights of way and users of Coopers Mill Youth Centre.
Other land and woodland including Walton and Moorhall farms are held for preservation or income purposes.
The Worgan Trust supports Mount Pleasant School Farm which provides facilities for primary and infant school children from a wide area, but mostly from the Birmingham Education Authority, to visit a working farm with a range of livestock. Visits are arranged daily throughout the school year and are conducted by the Head of Centre. The Centre is open to other groups by arrangement.
Public benefit
The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Financial review
Due to the nature of the operations of the charity, whilst Covid 19 has caused some delays and increased costs of daily activities, the trustees are comfortable that Covid 19 has not had a significant financial impact on the accounts for the year.
Revaluation of Properties
The land and properties held by the Trust were revalued in November 2022 on an open market value basis in accordance with guidelines issued by the Royal Institution of Chartered Surveyors; the valuations have been compiled by suitably knowledgeable Trustees, on an open market value basis. Mount Pleasant School Farm Study Centre was built on land leased from the Bournville Village Trust and has been transferred to Leasehold Property; it will be depreciated over the remaining 37 years of the lease.
Reserves Policy
The balance of unrestricted funds represents funds arising from past surpluses. It is being used for the programme of repairs to buildings and land maintenance. As the need to renovate large properties at the same time has depleted the Trust reserves, Trustees took the decision to borrow the necessary finance using a long-term loan which has been procured from the AMC. This continues to be repaid.
Page 2
The Worgan Trust
Trustees' Report (continued)
Achievements and performance
The Wyre Forest Woodlands are leased to Natural England who is responsible for management and harvesting; however, our agents are consulted so our interests are being preserved and the woods will be managed very much as they were under the old Woodland Grant Scheme. The lease includes Coopers Mill Cottage which is located deep in the Wyre Forest on the Worcestershire/Shropshire border. It is now being run by The ContinU Plus Academy who will market the Mill as a residential venue for visiting school and voluntary groups at weekends and during school holidays.
Other woodland is being actively managed by our agents with less income as following some felling there has been a replanting programme.
Mount Pleasant School Farm is now run independently as a C.I.O. The Charity number is 1159485 and it has a website www.mountpleasantschoolfarm.com
Walton and Moorhall Farmland is now let in two parts on five-year Farm Business Tenancies. The policy of renovation has continued as properties have become vacant. Moorhall Farmhouse, Walton Farmhouse and four cottages have been renovated and are let on Assured Shorthold tenancies. Another cottage is being renovated during 2022 and will be let in Spring 2023. The remaining cottages all have long term tenants.
Income continues to be generated from the horse livery, horse grazing and lockup units in the farm buildings. They all help to generate income from the Clent properties which is our main income stream.
Structure, governance and management
Nature of governing document
The charity is controlled by its governing document, a deed of trust, and constitutes an unincorporated charity.
Recruitment and appointment of trustees
New trustees are recruited and appointed at the discretion of the existing trustees.
Organisational structure
The Trust is run by the trustees and an administrator. They meet in committee two to five times a year. Day to day running is handled by the chairman in direct consultation with the trustees as necessary.
Risk Management
The trustees have a duty to identify and review the risk to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. Regular meetings are held with the Forestry and Estate advisors during which risks to the charity and its work are assessed and action is taken when necessary.
Page 3
The Worgan Trust
Trustees' Report (continued)
03 Apr 2023
The annual report was approved by the trustees of the charity on ~~....................~~ and signed on its behalf by:
~~.........................................~~ Mrs C H Compton Trustee
Page 4
The Worgan Trust
Statement of Trustees' Responsibilities
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that 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 Charities (Accounts and Reports) Regulations 2008, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
03 Apr 2023
Approved by the trustees of the charity on ~~....................~~ and signed on its behalf by:
~~.........................................~~
Mrs C H Compton Trustee
Page 5
The Worgan Trust
Independent Examiner's Report to the trustees of The Worgan Trust
I report to the trustees on my examination of the accounts of The Worgan Trust for the year ended 31 December 2022.
Responsibilities and basis of report
As the charity trustees of The Worgan Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the The Worgan Trust's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of The Worgan Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
...................................... Mark Skellum FCA
11c Kingswood Road Hampton Lovett Droitwich Worcestershire WR9 0QH
Date:..... 19 April 2023 ........................
Page 6
The Worgan Trust
Statement of Financial Activities for the Year Ended 31 December 2022
| Note Income and Endowments from: Donations and legacies Investment income 3 Total Income Expenditure on: Raising funds Charitable activities Total Expenditure Net (expenditure)/income Other recognised gains and losses Gains/(losses) on revaluation of fixed assets Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 10 |
Total Unrestricted funds 2022 £ - 189,835 189,835 (203,531) (28,129) (231,660) (41,825) 3,785,000 3,743,175 7,385,745 11,128,920 |
Total Unrestricted funds 2021 £ 30,000 182,286 |
|---|---|---|
| 212,286 | ||
| (144,621) (28,868) |
||
| (173,489) | ||
| 38,797 - |
||
| 38,797 7,346,948 |
||
| 7,385,745 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 10.
The notes on pages 9 to 15 form an integral part of these financial statements. Page 7
The Worgan Trust
(Registration number: 252062) Balance Sheet as at 31 December 2022
| Note Fixed assets Tangible assets 6 Current assets Debtors 7 Cash a t bank and i n hand Creditors: A m ounts falling due within one year 8 Net current assets Total assets less current liabilities Creditors: A m ounts falling due after more than one year 9 Net assets Funds o f the charity : Unrestricted income funds Unrestricted funds Total funds 1 0 |
2022 | 2021 £ 7,390,780 15,293 231,642 |
|---|---|---|
| £ | ||
| 11,164,615 4,912 197,565 202,477 |
||
| 246,935 |
||
| (44,609) | (38,465) | |
| 157,868 11,322,483 |
208,470 | |
| 7,599,250 |
||
| (193,563) | (213,505) | |
| 11,128,920 11,128,920 11,128,920 |
7,385,745 | |
| 7,385,745 | ||
| 7,385,745 |
The financial statements on pages 7 to 15 were approved by the trustees, and authorised for issue on ~~03 .................... Apr 202~~ 3 and signed on their behalf by:
~~.........................................~~
Mrs C H Compton Trustee
The notes on pages 9 to 15 form an integral part of these financial statements. Page 8
The Worgan Trust
Notes to the Financial Statements for the Year Ended 31 December 2022
1 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
The Worgan Trust meets the definition of a public benefit entity under FRS 102. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Income and endowments
All income is recognised once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Donations and legacies
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Raising funds
These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Page 9
The Worgan Trust
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
Support costs
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade creditors
are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity. The property revalution reserve comprises the surplus on the revaluation of the charity's properties.
Page 10
The Worgan Trust
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
2 Income from donations and legacies
| Total for 2022 Total for 2021 3 Investment income Interest receivable and similar income; Interest receivable on bank deposits Other investment income Income from rents |
Unrestricted funds General £ 993 8,500 180,342 189,835 |
Unrestricted funds General £ - 30,000 Total 2022 £ 993 8,500 180,342 189,835 |
Total funds £ - |
|---|---|---|---|
| 30,000 | |||
| Total 2021 £ 12 8,500 173,774 |
|||
| 182,286 |
Page 11
The Worgan Trust
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
4 Expenditure on raising funds
Investment management costs
| Other investment management costs; Property repairs Maintenance charges Allocated support costs |
Unrestricted General £ 154,312 26,960 22,259 203,531 |
Total 2022 £ 154,312 26,960 22,259 203,531 |
Total 2021 £ 103,846 32,266 8,509 |
|---|---|---|---|
| 144,621 |
5 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
The amount of expenses reimbursed to the trustees during the year totalled £639 (2021 - £1,593).
Page 12
The Worgan Trust
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
6 Tangible fixed assets
| 6 Tangible fixed assets |
||
|---|---|---|
| Cost At 1 January 2022 Revaluations At 31 December 2022 Depreciation At 1 January 2022 Charge for the year At 31 December 2022 Net book value At 31 December 2022 At 31 December 2021 |
Land and buildings £ 7,502,430 3,785,000 11,287,430 111,650 11,165 122,815 11,164,615 7,390,780 |
Total £ 7,502,430 3,785,000 |
| 11,287,430 | ||
| 111,650 11,165 |
||
| 122,815 | ||
| 11,164,615 | ||
| 7,390,780 |
Included within the net book value of land and buildings above is £10,785,000 (2021 - £7,000,000) in respect of freehold land and buildings and £379,615 (2021 - £390,780) in respect of leaseholds.
In accordance with the provisions of FRS102, the land and properties held by the Trust were revalued by suitably knowledgeable trustees in December 2022 on an open market value basis in accordance with guidelines issued by the Royal Institution of Chartered Surveyors. Mount Pleasant Study Centre was built on land leased from the Bournville Village Trust and is valued at its cost of £502,430; it is being depreciated over the 37 years of the lease from 2012.
7 Debtors
| 7 Debtors |
||
|---|---|---|
| Prepayments Other debtors |
2022 £ 4,912 - 4,912 |
2021 £ 8,213 7,080 |
| 15,293 |
8 Creditors: amounts falling due within one year
| 8 Creditors: amounts falling due within one year |
||
|---|---|---|
| Bank loans Trade creditors Other creditors Accruals |
2022 £ 19,839 19,570 2,300 2,900 44,609 |
2021 £ 19,839 9,005 6,821 2,800 |
| 38,465 |
Page 13
The Worgan Trust
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
9 Creditors: amounts falling due after one year
| 9 Creditors: amounts falling due after one year |
||
|---|---|---|
| 2022 £ 2021 £ Bank loans 193,563 213,505 10 Funds Balance at 1 January 2022 £ Incoming resources £ Resources expended £ Other recognised gains/(losses) £ Balance at 31 December 2022 £ Unrestricted funds General General 401,275 189,835 (231,660) - 359,450 Property Revaluation Reserve 6,984,470 - - 3,785,000 10,769,470 7,385,745 189,835 (231,660) 3,785,000 11,128,920 Balance at 1 January 2021 £ Incoming resources £ Resources expended £ Balance at 31 December 2021 £ Unrestricted funds General General 362,478 212,286 (173,489) 401,275 Property Revaluation Reserve 6,984,470 - - 6,984,470 7,346,948 212,286 (173,489) 7,385,745 |
2021 £ 213,505 |
|
| Balance at 31 December 2022 £ 359,450 10,769,470 |
||
| 11,128,920 | ||
| 7,385,745 |
Page 14
The Worgan Trust
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
11 Analysis of net assets between funds
| 11 Analysis of net assets between funds | ||
|---|---|---|
| Tangible fixed assets Current assets Current liabilities Creditors over 1 year Total net assets |
Unrestricted funds General £ 11,164,615 202,477 (44,609) (193,563) 11,128,920 |
Total funds at 31 December 2022 £ 11,164,615 202,477 (44,609) (193,563) |
| 11,128,920 |
12 Analysis of net funds
| Cash at bank and in hand Net debt Cash at bank and in hand Net debt |
At 1 January 2022 £ 231,642 231,642 At 1 January 2021 £ 183,484 183,484 |
Financing cash flows £ (34,077) (34,077) Financing cash flows £ 48,158 48,158 |
At 31 December 2022 £ 197,565 197,565 At 31 December 2021 £ 231,642 231,642 |
|---|---|---|---|
13 Related party transactions
There were no related party transactions in the year.
Page 15
The Worgan Trust
Detailed Statement of Financial Activities for the Year Ended 31 December 2022
| Income and Endowments from: Donations and legacies (analysed below) Investment income (analysed below) Total income Expenditure on: Raising funds (analysed below) Charitable activities (analysed below) Total expenditure Net (expenditure)/income Other recognised gains and losses Gains/losses on revaluation of fixed assets for charity's own use (analysed below) Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward |
Total 2022 £ - 189,835 189,835 (203,531) (28,129) (231,660) (41,825) 3,785,000 3,743,175 7,385,745 11,128,920 |
Total 2021 £ 30,000 182,286 |
|---|---|---|
| 212,286 | ||
| (144,621) (28,868) |
||
| (173,489) | ||
| 38,797 - |
||
| 38,797 7,346,948 |
||
| 7,385,745 |
This page does not form part of the statutory financial statements. Page 16
The Worgan Trust
Detailed Statement of Financial Activities for the Year Ended 31 December 2022 (continued)
| Donations and legacies Legacies and bequests Investment income Rental income Bank interest receivable Natural England lease Raising funds Property letting and operating costs Property repairs Trustees expenses Bad debts written off Bank charges Loan interest Charitable activities Accountancy fees Administration Depreciation of long leasehold property Chapman's Hill Farm rent Professional fees Gains/losses on revaluation of fixed assets for charity's own use Gains/losses on revalaution of fixed assets |
Total 2022 £ - - 180,342 993 8,500 189,835 (26,960) (154,312) (639) (14,517) (66) (7,037) (203,531) (3,016) (4,511) (11,165) (3,650) (5,787) (28,129) 3,785,000 |
Total 2021 £ 30,000 |
|---|---|---|
| 30,000 | ||
| 173,774 12 8,500 |
||
| 182,286 | ||
| (32,266) (103,846) (1,593) - (18) (6,898) |
||
| (144,621) | ||
| (2,878) (4,270) (11,165) (3,650) (6,905) |
||
| (28,868) | ||
| - |
This page does not form part of the statutory financial statements. Page 17
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