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2023-03-31-accounts

Annual Report

Sir Harold Hillier Gardens

1 April 2022 to 31 March 2023

Reference and administrative details:

The Sir Harold Hillier Gardens and Arboretum, Jermyns Lane, Ampfield, Romsey, Hampshire. SO51 0QA

Tel: 01794 368787

www.hants.gov.uk/hilliergardens

Legal and administrative information:

The Sir Harold Hillier Gardens and Arboretum is a Registered Charity (Reg. No 274737)

Sole trustee:

Solicitor:

Hampshire County Council

Hampshire Legal Services, Hampshire County Council, The Castle, Winchester, Hampshire. SO23 8UB

Registered Address:

Director of Culture, Communities and Business Services, Hampshire County Council, Three Minsters House, Banker: 76 High Street, Winchester, Hampshire. SO23 8UL

National Westminster Bank 105 High Street Winchester Hampshire

Auditor:

Fiander Tovell Limited, For externally raised development Stag Gates House, funds: 63/64 The Avenue, CAF Bank Ltd, Southampton, 25 Kings Hill Ave, SO17 1XS Kings Hill, West Malling, Kent. ME19 4JQ

Day-to-day responsibility for the Gardens is delegated by the sole trustee to the Director of Universal Services and the Director of the Sir Harold Hillier Gardens.

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Report of the trustees for the year ending 31 March 2023

The trustees present their annual report and financial statements of the charity for the year ending 31 March 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 2 to the accounts and the Charities Act 2011 and 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).

Objectives and Public Benefit

The object of the charity is to provide for the public benefit an Arboretum and Botanic Garden known as the ‘Sir Harold Hillier Gardens’ as a public facility to be enjoyed by people of all ages and, in particular but not exclusively, as a means to promote:

1. the conservation, protection, and improvement of the collection of plant species and cultivars of the temperate world for the public benefit by the cultivation and maintenance of such plants.

2. the education of the public about the cultivation, preservation, propagation and conservation of such plants and their impact upon biodiversity and the conservation of the physical and natural environment.

When reviewing the objectives and planning the activities and future development of the Sir Harold Hillier Gardens (SHHG), the trustees have had due regard to the Charity Commission’s guidance on public benefit.

SHHG levies an entry charge, which, together with commercial activities (income from shop, concessions, catering, and the hire of meeting rooms), donations and the support of the sole trustee allows the charity to carry out its charitable aims. Day entry prices are discounted for senior citizens, job seekers, service men and women, full time students and disabled visitors. The Gardens has recently started to charge for children, although entry is free for children attending with an adult member. A carer accompanying a disabled visitor is admitted without charge. In pre-pandemic times, the SHHG’s Education Programme catered for over 15,000 annual users, most of these are primary and secondary school groups, visiting for a full educational day guided by the Gardens’ education staff and volunteers. Thankfully, numbers have now returned to that of pre-2020, and the department is showing signs of good recovery.

Educating all our visitors and users, especially the young, about the value of the plant collection and biodiversity is one of the most important aspects of our charitable work. SHHG contributes to the training of the next generation of professional horticulturists by offering work placements, allowing the student to put the college acquired knowledge into practice and learn many of the practical skills required to look after such an outstanding plant collection.

The SHHG continues to conserve and educate by growing over 12,500 diverse types of plants, including over 250 rare taxa, over 600 champion trees (the largest number recorded in a single garden in the British Isles) and maintains 14 National Collections of plants, the largest number of any single UK plant collection. The Gardens also distribute plant material to other botanic gardens and plant collections and facilitates the use of its plant collection for scientific study in the UK and abroad.

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The Gardens maintain an herbarium collection, which is almost exclusively maintained by volunteers. This represents a permanent record of the plant collection. A database of both the living and herbarium collection is available to the public and any interested party via the Gardens’ website. The herbarium currently holds over 8,000 specimens.

Achievements and Performance 2022/23

The benefits of the Trust’s work are the conservation of the Gardens’ existing collection whilst continuing to develop the site to include new taxa and make the collection more accessible to visitors, making the collection accessible to researchers around the world through collaborations on site or online through digital cataloguing, increasing awareness of the natural world by attracting and engaging with greater numbers of visitors alongside running more formal educational programmes suitable for all age groups. The trustees are pleased that the achievements and performance of the Trust, as set out below, demonstrate great progress in pursuing its charitable objectives.

Horticultural and Facility Developments

The year 2022/23 has continued to be exceptional due to the on-going effects of the global pandemic, the rising cost of living, external world pressures and events. These combined with extreme weather conditions, most notably Storms Eunice & Franklin in February and March of 2022, followed by excessive heat during the summer of 2022, a wet autumn and extremely cold winter, have impacted the Gardens botanically, operationally, and financially. Despite the challenges, the Gardens have achieved the following:

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Building on the success of this first year, the Gardens again worked with Light Up on a trail for Christmas 2023, where visitor numbers grew to just over 71,000.

The Plant Collection

Despite the pandemic and severe weather, the many volunteers have been active and have now measured well over 8,000 trees and shrubs in the Gardens. The Tree Register now lists over 600 of the Gardens’ trees as UK Champions, more than any other collection in the country.

The herbarium volunteers have added specimens to the collection, with the total being around 8,500. All specimens have been photographed, allowing us to make the images easily available to any researcher worldwide. There are over 17,000 images in our database, most of them taken by volunteers. The importance and relevance of the collection cannot be underestimated, especially in relation to climate change.

The verification of the collection continues to increase the total number now being over 3,000.

Collaboration and Support of External Science and Research Projects

Besides continuing to grow and conserve one of the most diverse collection of plants, the Gardens continues to support other projects and institutions with its plant collection, such as Ghent Botanic Gardens and University in Belgium, the Royal Botanic Gardens, Kew, Royal Horticultural Society, Wisley, BGCI and Butterfly Conservation, Hampshire and Isle of Wight Branch, Plant Heritage, Westonbirt, Dendrology Society, Mediterranean Society, The American Oak Society, University of Southampton, Royal Forestry Society.

Education

The SHHG aims to share knowledge and promote a greater awareness of the fundamental importance of the natural world to all its visitors. An active and tailor-made education programme engages with visitors to the SHHG, whatever their age and level of knowledge, providing lively interpretation of the Collection through teaching programmes, tours and hands-on workshops. The diverse collection of plants provides the Education Service with a unique and inspirational outdoor classroom space reinforced by the purpose-built educational facilities in the Visitor Centre and the Children Education Garden. This garden continues to evolve with the help of the educational team and volunteers.

Usually, the Education Service welcomes around 15,000 users for formal education activities in the SHHG from the Foundation Stage, Primary, Secondary and Tertiary years to some adult classes.

The informal learning activities and family events are popular with young children who particularly enjoy the seasonal craft workshops and family trails.

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Visitor numbers

r numbers
2018/19 2019/20 2020/21* 2021/22 2022/23
Day Entry 62,761 61,847 19,257 31,195 30,558
Groups 3,059 2,283 35 638 1,482
Children 53,117 52,699 7,958 18,070 44,196
Members 101,622 91,803 141,785 153,556 161,530
Education 15,565 14,005 913 8,996 15,860
Events 13,643 21,565 29 3,836 45,234
Total 249,767 244,202 169,977 216,291 298,860

*Please note that due to challenges recording diverse types of visitors during the pandemic reopening in 2020/21 the split by types of visitors is not completely accurate.

This year visitor numbers have grown, largely due to a positive Events Programme throughout the year, together with the introduction of a Christmas Light Trail for the first time in the Gardens’ history. In the region of 40,000 visitors attended the trail. Day-entry and group visitor numbers still remain lower than that of pre-pandemic but Membership has steadily grown across the year, and accounts for the majority of footfall.

Private and Corporate Functions held at the Gardens

During the autumn of 2022 and early 2023, conferences and private hires continued to regain strength, indicating consumer confidence for the future. New IT equipment was installed in 2021/22 to ensure that the conference facilities continue to meet the professional needs of diverse attendees.

Volunteers

The volunteer and student programme continues to function well, growing to over 200 volunteers. The primary volunteer activities are:

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Student Programme

During 2022/23, 4 local students attended the Student Programme. The programme affords a solid grounding in horticulture and is often the catalyst for successful careers for participants both in the UK and around the world. One volunteer overseas student from China was able to participate in the programme, the first since the pandemic.

Donations and Bursaries

The Gardens rely upon an increasing range of organisations and individuals in order to carry out its programmes and developments. The development of the Gardens in the past decade would not have been possible without the generosity of the following:

The Geoff and Fiona Squire Foundation Mr Hady Wakefield
The Veolia Environmental Foundation The Linbury Trust
The Equitable Charitable Trust The Hillier Family
The Henry Smith Charity The Monument Trust
Sir Jeremiah Coleman Trust Mrs Jenny Grundy
Mr Christopher Palmer-Tomkinson Taylors Bulbs
The G M Morrison Charitable Trust Help the Aged
The Ernest Cook Trust The HDH Wills 1965 Charitable Trust
Aiming High for Disabled Children Veolia Pro Grow
Romsey Arts Festival Hillier Nursery Ltd.
Hampshire County Council Landscape
Team		 Hampshire County Council Ecology
Team
RHS Suzan Pearson Bursary Historic and Botanic Garden Bursary
Scheme
Graham High Group Dulverton Trust
Elvetham Trust Hampshire Gardens Trust
Rupert Nabarro Elizabeth Creak Charitable Trust
The Finnis Scott Trust
The Stanley Smith (UK) Horticultural
Trust		 Test Valley Borough Council
Mr Giles Coode-Adams
Mr Victor Bryant
Mr Andrew Spokes
Mr & Mrs Bernays
Mrs Rita Ring
The Julia and Hans Rausing Trust

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Key outcomes for the year 2022/23

Outcome 2019/20 2020/21 2021/22 2022/23
Income from admissions
and secondary income1		 £1,660,861
(+1.6%)		 £2,323,758
(+39.9%)		 £1,596,374
(-31.1%)		 £1,803,185
(13%)
Operating costs2 £1,495,059
(+3.9%)		 £1,684,558
(+12.7%)		 £1,655,000
(-1.8%)		 £1,908,325
(15.3%)
Total annual visitor
numbers		 244,202 visits
(-2.2%)		 169,977 visits
(-30.4%)
216,291 visits
(27.2%)		 298,860 visits
(38.2%)
Membership numbers Est. 23,872
(+4.4%)		 Est. 24,861
(+4.1%)		 Est. 26,159
(+5.2%)		 Est. 25,706
(-1.7%)
Retail income £121,608
(+2.5%)		 £113,225
(-6.9%)
£123,057
(8.7%)		 £137,258
(11.5%)
Catering income3 £87,011
(+1.2%)		 £0
(-100%)		 n/a n/a
Corporate & private hire
income		 £10,083
(-57.4%)		 £0
(-100%)
£10,951		 £100,939
(821.7%)
Events and exhibition
income		 £95,440
(-16.3%)		 £0
(-100%)
£85,741		 £98,993
(15.5%)
Education, schools &
events		 £121,282
(-3.2%)		 £21,440
(-82.3%)
£58,533
(173%)		 £86,508
(47.8%)

Note:

1. secondary income refers to all other unrestricted income received during the year, excluding the budgeted contribution received from Hampshire County Council and any gains resulting from the sale of fixed assets.

2. excludes capital charges such as depreciation and impairments and Local Authority managed repair & maintenance and governance.

3. In 2021/22 and 2022/23 the cost of catering exceeded the income generated.

Plans for the Future

The Gardens plan to develop the Propagation Unit for both immediate and long-term benefit. It is anticipated that work will commence during early 2024, with a completion date of summer 2024.

The Gardens will also commence fundraising for a new feature garden, and development of the east end of the Garden. The feature garden will explore the impact of climate change on plant-life, together with encouraging greater footfall, Membership, and visitor growth.

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The Gardens’ review of Staffing Structure: Working in conjunction with Hampshire County Council’s Business Strategy & Improvement Team, during 2022/23 the Gardens commenced a review of its staffing structure, to ensure that it is best placed for growth and development over the years ahead.

Alongside the Gardens’ restructure, and following the wider reorganisation at Hampshire County Council in January 2023, the catering operation transfers to the Gardens’ structure from January 2024, moving from the previous provider HC3S. Significant work has already taken place to facilitate a smooth transition and continuity of service.

Structure, governance, and management

Sir Harold Hillier Gardens and Arboretum (SHHG) were left by Sir Harold under the sole trusteeship of Hampshire County Council during 1977 and were registered as a charity on 12 January 1978 (number 274737). The County Council’s Leader and Executive Member for Hampshire 2050 and Corporate Services, Councillor Rob Humby is responsible for approving the strategic decision-making for the Trust. The Leader delegates day-to-day responsibility for the Gardens to the Director of Universal Services, Patrick Blogg and the Director of the SHHG, Clare Goddard.

The Trust is governed by the Arboretum Trust Board (acting as the Executive) which comprises the Leader, the Chairman of the Advisory Committee and Director of Universal Services. The Trust Board and the SHHG are supported by an eminent group of advisers mostly with interest and expertise in the field of horticulture, gardens, plant collections and the charitable sector. All support the SHHG with their time and expertise, providing valuable guidance and advice. Membership of the Advisory Committee as in March 2023:

The Advisory Committee is supported by a specialist Gardens Panel, comprising:

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President

Her Majesty The Queen Consort

Patrons

Roy Lancaster VMH, CBE: Former Curator of the Gardens, Roy Lancaster has been an ardent supporter and Patron of the Gardens for many years.

The sole trustee, Hampshire County Council, has provided a significant level of financial support to the SHHG since 1977. This enabled the size of the Garden to increase to 180 acres and included the completion of a range of capital projects. This has also enabled the potential of the collection to be maximised for education, recreation, and conservation purposes. What started as a private plant collection with a few hundred visitors has been made accessible to a wide range of visitors from all over the world.

Today it provides an excellent facility which normally attracts around 240,000 annual visitors, usually including over 15,000 formal education visits. The SHHG and plant collection has also grown, now boasting some 42,000 plants of over 12,500 taxa and 14 national plant collections set in a complementary mixture of formal and informal landscapes and feature gardens such as one of Europe’s largest winter gardens. The significance of the collection is recognised by a Grade II listing in English Heritage’s Register of Parks and Gardens of Special Historic Interest.

Related parties and co-operation with other organisations

The County Council, as sole trustee, is a key related party to SHHG and is responsible for the control, administration, and financial management of the SHHG. As a Local Authority, the County Council has in place control frameworks for risk management, internal control and governance, the adequacy and effectiveness of which are subject to annual evaluation by both external and internal audit. As the sole trustee, the County Council allows SHHG to benefit from the use of these control frameworks, including the use of support services including internal audit, banking, financial reporting, and employment practice advice, for which an annual charge is made, details of which can be found in note 7.

Through the Gardens’ pursuit of achieving its charitable objective of “ the conservation, protection and improvement of the collection of plant species and cultivars of the temperate world for the public benefit by the cultivation and maintenance of such plants” , SHHG supports other projects and institutions with access to its plant collection and knowledge.

Pay policy for senior staff

All staff are employed by Hampshire County Council on behalf of the Trust and therefore they follow all terms and conditions and policies as set by Hampshire County Council.

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As employees of Hampshire County Council, staff salary levels are set in accordance with the Employment in Hampshire County Council (EHCC) 2007 Agreement. There are 11 pay grades within the EHCC pay framework, with roles matched to the appropriate grade following an evaluation using the Hay methodology.

The Trust considers the key management personnel to be the trustees and the Director of the Gardens and details of the employment benefits and expenses paid are disclosed in note 5 to the accounts.

Risk management

SHHG understands risk management as an essential part of the business, in its delivery of a unique botanical plant collection, outstanding gardens and arboretum with core educational and conservation activities as well as its supporting function to include conference and hire facilities.

An established risk management policy is in place, in support of which:

The SHHG Internal Management Team, chaired by the Director:

Trustees of larger charities are required to publish their assessment of the risks the charity faces and how they are managing them in their annual report.

Financial risks

The charity is exposed to two categories of financial risks:

The assessment and mitigation of financial risks is considered alongside the Medium Term Financial Plan and the Reserves Policy in a co-ordinated approach to strategic and financial planning.

In the event of any risk arising, and in the absence of any external financial support, the impact will be offset initially out of any annual surplus, then from any development funds

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and/or the reserve fund, limited by any restrictions on the use of funds and/or contractual commitments against funds not yet spent. Any combination of the below scenarios would draw more heavily on those sources.

Risk Mitigation
E1 Economic recession impacting income
and funding		 Reserves policy, marketing strategy and
plan for income growth, robust financial
management
E2 A period of high inflation resulting in
cost pressures that cannot be matched
with increased income		 Robust financial management, ongoing
efforts to deliver efficiencies, vacancy
management, temporary reduction in
focus of expenditure
E3 A reduction in support from Hampshire
County Council		 Reserves policy and income growth
strategy; regular forward planning with
Hampshire County Council
E4 A long period of closure resulting from
an external shock		 Potential external support (e.g. as
received during covid closures),
reserves policy; memberships smooth
income as not as variable as day visits
E5 The impact of storms/ floods/ disease/
extreme heat		 Reserves policy, regular review of
changes and development of
appropriate mitigations
I1 Unsuccessful integration and delivery
of catering provision		 Business plan for catering provision,
robust financial management,
promotional activity to encourage take-
up
I2 Unsuccessful implementation of action
plan to deliver income growth		 Marketing strategy to promote the
Gardens and the benefits to
members/visitors/corporate users,
engagement with users, pricing strategy,
understanding customers
I3 Unsuccessful recruitment and retention
into key roles related to delivery of the
MTFP		 Marketing of roles, staff development
and benefits including non-financial
benefits
I4 Inadequate funding set aside to meet
asset repair and replacement		 Asset management plan, assessment of
likely expenditure, ongoing monitoring of
asset condition and requirements;
potential for external funding

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- Non financial risks

The charity is also exposed to non-financial risks which include the following:

N1 Climate Change impact on operations,
the built and natural environment		 Losses to the collection are minimised
through strategic propagation
programmes. Repairs to damage to the
built environment are typically funded
via the Gardens’ reserves, a plan is in
place to grow these reserves over the
next 5 years to ensure funding is
available.
N2 Reduction in number of volunteers
reduces the level and reach of the
work the Gardens can undertake.		 The Gardens’ volunteer coordinator runs
annual recruitment drives to attract new
volunteers. Existing volunteers are
invited to many informal activities at the
Gardens to increase retention rates.
N3 Reputational damage caused by
losses to the collection.		 Reputational damage, like losses to the
collection, are minimised through the
strategic propagation programme.
Where required, PR activities will be
sought from the County Council’s
specialist PR colleagues.
N4 Major accident or incident resulting in
the Gardens’ temporary closure		 Very low risk; policies and procedures in
place that seek to ensure the health and
safety of all people on site, both visitors
and staff; appropriate staff are fully
trained to manage unexpected
incidents, accidents and health-related
emergencies.

Treasury management

SHHG operates under the Treasury Management Policy approved by its sole trustee, Hampshire County Council. That policy adheres to the principles of best practice including the adoption of the Treasury Management in the Public Services: Code of Practice produced by the Chartered Institute of Public Finance and Accountancy (CIPFA).

In accordance with Section 5 of the Code, SHHG maintains, as the cornerstones for effective treasury management:

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The Trust defines its treasury management activities as:

“The management of the organisation’s investments, cash flows and banking; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks.”

Whilst the Trust Board assumes full responsibility for the implementation and monitoring of its treasury management policies and practices, it delegates the execution and administration of treasury management decisions to the Director of Corporate Operations of Hampshire County Council, who will act in accordance with the organisation’s policy statement, CIPFA’s Standard of Professional Practice on Treasury Management and maintain TMPs covering the activities carried out for SHHG.

Reserves

The SHHG’s reserves policy indicates the level of reserves the SHHG needs to operate effectively in accordance with its aims, needs and objectives taking into account potential risks and contingencies that may arise from time to time, and in the context of a separate risk management policy.

In the short term, this involves maintaining reserves at a level that enables SHHG to manage financial risk and income volatility. In the longer term, reserves help to ensure the ongoing delivery of SHHG’s charitable objectives.

To establish an appropriate level of reserves the SHHG has reviewed the following factors:

As such, SHHG holds unrestricted funds in two reserves:

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do so in a sustainable way that balances a desire to increase reserves with the need to continue to invest in the Gardens and deliver the charitable objectives.

Further details on reserves and the restricted funds of the SHHG are included within the Finances section that follows.

Fundraising Statement

Sir Harold Hillier Gardens complies with the Fundraising Regulators Code of Fundraising Practice and the Trustees have regard to national guidance in overseeing the fundraising activities of the Charity.

During 2022/23 no complaints were received in relation to SHHG fundraising activity.

We make every effort to ensure that our fundraising activity never feels unreasonably intrusive, persistent, or pressurised. This applies to our written communications and any fundraising activity at the gardens.

We respect the wishes of supporters who do not wish to receive fundraising communications and try to limit the number of communications a supporter might receive.

Finances

The statement of financial activities (SOFA) reports a net deficit for the year ended 31 March 2023 of £206,225.

The net deficit has increased by £95,180 compared to the deficit of £111,045 reported for the period 2021/22. This is the result of several factors affecting both income and expenditure as set out below.

Income

Overall income has increased by £105,781 compared with the previous year. This is primarily due to the following:

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Expenditure

Overall expenditure has increased by £298,873, primarily due to the following:

Gains/losses on investments

The £133,569 gain on investment assets in 2022/23 is higher than the gain of £35,657 in 2021/22. This is based on annual valuations of the investment property and therefore the value can fluctuate depending on the assessment of market conditions at the time of the valuation.

Unrestricted funds

Unrestricted funds are split between the development fund and the designated reserve fund. At 31 March 2023, the total balance of unrestricted funds was £760,261.

The SOFA for the financial year ended 31 March 2023 reflects an overall decrease in unrestricted funds of £62,969. This is due to costs exceeding unrestricted income in 202223 by £321,582, offset by a transfer from applied contributions of £258,613 (see note 15c).

The development fund accounts for £660,261 of the total unrestricted funds and can be used at the trustees’ discretion to further the charitable objectives of the Gardens. As explained above, this balance has reduced by £62,969 from the previous year.

The remaining balance of unrestricted funds of £100,000 comprises the Trust’s designated reserve fund, held in line with the reverses policy detailed in the Reserves section above. There has been no movement on this fund during 2022/23.

Restricted funds

Six restricted funds were held as at 31 March 2023, totalling £421,059. These funds can only be applied to specific purposes, as follows:

The Hillier's expedition fund is used to fund botanical and horticultural expeditions and plant collection work.

The 50-year development fund is to be used in line with the 50-year plan to fund major projects that continue to develop and enhance the Gardens.

The Hillier bursary fund is intended to fund training and development of permanent staff at the gardens that cannot be funded by the employer from core funds. The long-term intention for the fund is to accumulate sufficient capital that the interest earned can be used to fund such training. However, the achievement of the longterm aim of the fund is not intended to prevent current permanent staff benefiting

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and it can be accessed in the meantime to fund appropriate training and development opportunities.

This fund represents grants received from the Elizabeth Creak Charitable Trust. These grants are retained in a restricted reserve and used to fund the training of students as these costs are incurred. Note 15b presents the grant income received in year and the expenditure incurred in year.

The Propagation Unit Fund is used for the development and construction of a modern, comprehensive Propagation Nursery Unit, to propagate and grow a wide range of plant material for conservation, heritage and educational purposes. This will help the Gardens with their carbon reduction goals.

Other restricted grants and donations reserve is used to hold restricted grants or donations which have been received for a restricted purpose and have not yet been spent. As at 31 March 2023 the balance on this reserve relates to the Waste Prevention Community Grant Fund which was received from Hampshire County Council during 2022/23.

Balance sheet

The balance sheet shows the total funds of the charity at about £13.1 million. Of this total, just under £12 million represents the value of fixed assets owned by the charity, with the remainder the useable funds detailed above (£0.76m unrestricted funds plus £0.42m restricted funds).

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Going concern consideration

A detailed exercise to forecast income and expenditure and prepare a Medium-Term Financial Plan (MTFP) has recently been completed. This plan was approved by the Arboretum Trust Board in November 2023 and covers the period to March 2027. The MTFP includes the forecast impact of plans to bring catering arrangements in-house as well as proposed changes to the staff structure. It is anticipated that in 2024-25 and 202526 the gardens will need to draw from unrestricted reserves as expenditure is forecasted to exceed income. This is largely due to challenging economic conditions and inflationary pressures impacting on expenditure. Although a draw from reserve is forecasted, unrestricted reserve balances are expected to remain at a sufficient level. A strategy to steadily increase income means that by 2026-2027 a surplus position is forecasted.

The in-year position will be closely monitored, and the trust board will receive regular reports on progress against the plan including the mitigations put in place to address identified risks as set out in the MTFP. The MTFP will be updated and reported to the Board annually (or more frequently if required) and will include the resultant impact on reserve balances.

With management plans, including a strategy to steadily increase income, plans to restructure and bring catering arrangements in house and a close review of all investment decisions the Trustees remain assured that the Gardens will continue as a going concern.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

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Trustees’ responsibilities in relation to the financial statements

The charity trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires charity trustees to prepare financial statements for each 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 the financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements. Approved by the trustee and signed on their behalf by:

Councillor Rob Humby

Chairman of the Arboretum Trust Board

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Independent Auditor’s Report to the trustee of Sir Harold Hillier Gardens

Opinion

We have audited the financial statements of Sir Harold Hillier Gardens and Arboretum (the ‘charity’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cashflows 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).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. 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 form of assurance conclusion thereon.

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

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

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As explained more fully in the trustees’ responsibilities statement set out on page 19, the trustees are responsible for the preparation of 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 statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

22

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

Audit response to risks identified

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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 directors and other management and the inspection of regulatory and legal correspondence, if any.

23

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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s 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 charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Mark Gregory ACA (Senior Statutory Auditor) Fiander Tovell Limited

Chartered Accountants and Registered Auditors Stag Gates House 63/64 The Avenue Southampton SO17 1XS

Date:

24

Sir Harold Hiller Gardens and Arboretum

Statement of Financial Activities for the year ending 31 March 2023

2022/23 2022/23 2022/23 2022/23 2021/22
Unrestricted Restricted Endowment Prior period
funds funds Funds Total funds total funds
£ £ £ £ £
Income
Donations and legacies:
Donations 38,334 25,260 - 63,594 90,788
Grant Income 48,730 3,500 - 52,230 150,000
Charitable activities:
Use of Gardens and Facilities 1,493,255 - - 1,493,255 1,354,821
Education 86,508 - - 86,508 58,533
Investments:
Rents 136,358 - - 136,358 122,232
Interest - bank - 447 - 447 -
Other:
Local Authority contribution 175,155 - - 175,155 125,392
Gain on disposal of fixed asset - - - - -
Total income 1,978,340 29,207 - 2,007,547 1,901,766
Expenditure
Charitable activities:
Management of Gardens and
facilities 2,157,776 520 - 2,158,296 1,917,004
Development of Gardens 38,000 - - 38,000 -
Education 104,146 46,899 - 151,045 131,464
Total expenditure 4 2,299,922 47,419 - 2,347,341 2,048,468
Net gains/(losses) on investments 133,569 133,569 35,657
Net income/(expenditure) (321,582) (18,212) 133,569 (206,225) (111,045)
Transfer between funds 258,613 - (258,613) - -
Gains/(losses) on the revaluation
of fixed assets - - 50,000 50,000 -
Actuarial gains/(losses)on defined
benefit pension scheme - -
Other gains/(losses) - -
Net movement in funds (62,969) (18,212) (75,044) (156,225) (111,045)
Reconciliation of funds
Balances brought forward at 1
April 15 823,230 439,271 11,976,236 13,238,737 13,349,782
Funds balances carried forward
at 31 March		 760,261 421,059 11,901,192 13,082,512 13,238,737

25

Sir Harold Hiller Gardens and Arboretum Balance Sheet as at 31 March 2023

Note
Fixed assets
Tangible fixed assets
11
Heritage assets
12
Current assets
Debtors
13
Cash at bank and held by Hampshire County Council
18
Liabilities
Creditors: Amounts falling due within one year
14
Net current assets
Total assets less current liabilities
Long term creditors
Net assets
Funds
Unrestricted
15a
Restricted
15b
Applied contributions
15c
Endowment
15c
Revaluation reserve
15c
The notes at pages 28 to 42 form part of these accounts.
Approved by the sole trustee and signed on
their behalf by:		 2022/23
2021/22
£
£
11,699,660
11,774,704
201,532
201,532
11,901,192
11,976,236
29,411
55,392
1,282,188
1,251,060
1,311,599
1,306,452
(130,279)
(43,951)
1,181,320
1,262,501
13,082,512
13,238,737
nil
nil
13,082,512
13,238,737
760,261
823,230
421,059
439,271
4,271,463
4,530,076
826,602
826,602
6,803,127
6,619,558
13,082,512
13,238,737

Councillor Rob Humby, R Carr, Chairman of the Arboretum Trust Board Director of Corporate Operations, Hampshire County Council

26

Sir Harold Hiller Gardens and Arboretum Statement of Cash Flows for the year ending 31 March 2023

Note

Net cash provided by (used in) operating activities
17

Cash flows from investing activities:
Interest and rents from investments
Purchase of property, plant and equipment
Net cash provided by (used in) investing activities

Change in cash and cash equivalents in the year

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year		 2022/23
2021/22
£
£
(100,260)
36,470
136,805
122,232
(5,417)
(301,663)
131,388
(179,431)
31,128
(142,961)
1,251,060
1,394,021
1,282,188
1,251,060

27

Sir Harold Hiller Gardens and Arboretum Notes to the accounts for the year ending 31 March 2023

Basis of preparation and assessment of going concern

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) and the Charities Act 2011.

The Sir Harold Hillier Gardens and Arboretum (SHHG) meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). The address of the registered office and registered charity number are included in the legal and administrative information provided on page 2 of the annual report.

The trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

Accounting policies

a. Income recognition & donations

Income is credited to the Statement of Financial Activities in the year to which it relates. Income is deferred only when conditions have to be fulfilled before becoming entitled to it or where the donor has specified that income is to be expended in the future period.

In accordance with the Charities SORP (FRS 102), no amount is recorded in the financial statements for volunteer time. Details of the activities undertaken by volunteers can be found in the trustees’ annual report.

Donated professional services and / or facilities are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably, and the charity has control over the item. On receipt, donated professional services and facilities are recognised based on the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. No donated professional services or facilities were received during 2022/23 (2021/22 nil).

Membership income is included in the year of receipt as this generally equates to a full year of income in each year over time.

Rental income is credited to the Statement of Financial Activities in the year to which it relates.

28

b. Expenditure recognition

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

c. Basis of allocation of charitable expenditure

Charitable expenditure includes direct and indirect costs that are allocated in relation to underlying activity levels established by the use of a number of indicators, for example accommodation costs by floor space occupied and human resources costs by average staff numbers throughout the financial year. The Charity does not receive any services for which it is not charged, and all costs are included in the Statement of Financial Activity.

d. Pensions

Pension contributions are paid to a multi-employer, local government defined benefit pension scheme in accordance with the recommendations of the actuary. Full details of the Hampshire Pension Fund are available in the County Council's Statement of Accounts. The contribution rate is determined by the Pension Fund's actuary (Aon Hewitt), set in relation to the current service period only. Therefore, in accordance with recommended practice for charities, pension costs are accounted for in line with defined contribution schemes. In 2022/23 the current service contribution rate was 18.4% of pensionable pay (18.4% in 2021/22). The current service contribution for pensions included in the Statement of Financial Activity is £156,237 (£147,357 in 2021/22). SHHG is under no obligation to make any extra payments, irrespective of how the pension fund performs.

e. Tangible fixed assets

Fixed Assets are valued and held in the accounts on the basis described in the Accounting and Reporting by Charities Statement of Recommended Practice (SORP) 2019.

Expenditure on the acquisition, creation or enhancement of assets is capitalised on an accrual basis, provided that it benefits the Gardens and the services it provides are for more than one financial year.

Fixed Assets are categorised as follows:

Freehold interest in land and buildings

Assets in this category are revalued on a rolling programme and at least every five years. Asset revaluations are carried out by RICS qualified valuers from Hampshire County Council's Property Services. Assets are valued in the accounts on either a depreciated replacement cost basis or an existing use basis dependant on if comparable evidence exists in the market. Deprecation is charged on all fixed assets excluding land in accordance with Financial Reporting Standard (FRS) 102. Depreciation is charged on a

29

straight-line basis, over the estimated remaining useful life. At the last valuation these were assessed as follows:

One piece of land previously donated to the Gardens is classified as investment property as this land is leased out to Hillier Nurseries to generate income. This asset will be revalued on an annual basis and is shown in the accounts at market value.

Depreciation is not charged on investment properties. Investment properties for which fair value can be measured reliably without undue cost or effort are measured at fair value at each reporting date with changes in fair value recognised in “net gains / (losses) on investments” in the Statement of Financial Activity.

Furniture and equipment (including garden infrastructure)

Furniture and equipment, including garden infrastructure, are valued at depreciated historic cost. They are depreciated over the expected useful life of the asset, as follows:

Plants and trees at the Gardens and Arboretum are regarded as inalienable and historic and they are therefore not included as an asset in the Balance Sheet. Details of the collection are available at the Centre and a summary is provided in the Annual Report.

Assets under construction

Assets under construction are valued at cost. They are not depreciated until brought into use.

Research and development

Research and development costs are written off as incurred.

f. Heritage Assets

Heritage assets are held in pursuit of preservation and/or conservation objectives. The heritage assets include the land on which the arboretum sits as well as the separately acquired Ampfield Woods, an additional strip of land and the Centenary Border. This land is used for the conservation, cultivation, protection and improvement of a collection of plant

30

species and cultivars of the temperate world for the public benefit and educational purposes.

A register of the heritage assets held by the charity is available and they are accessible to the public as visitors to SHHG since they represent the land on which the Gardens and Arboretum collection sits.

Heritage assets are capitalised at cost and shown at depreciated historic cost.

Depreciation is charged on heritage assets excluding land, over the asset’s useful life.

g. Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

h. Provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably established.

i. Funds accounting

Funds held by the charity are:

Other charitable funds

These are unrestricted general funds that can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds

These are funds set aside by the trustees out of other charitable funds for specific future purposes or projects.

Restricted funds

These are funds that can only be used for particular restricted purposes within the objectives of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the relevant note to the accounts.

Endowment funds

These are funds that represent those assets that must be held permanently by the charity, principally the land on which the gardens and arboretum sit. Income arising on the endowment funds can be used in accordance with the objectives of the charity and is included as unrestricted income.

j. Critical judgements in applying accounting policies

In applying the accounting policies set out in note 2, the trustees have made the following critical judgement:

31

The trustees have made judgements on the classification of the tangible fixed assets held. These judgements determine the valuation and depreciation method to be used and are based on the main reason that the SHHG is holding that asset.

k. Post balance sheet events

As at 24 January 2024 when the accounts were signed by the Trust Board, there were no post balance sheet events requiring disclosure.

32

Comparative year information for figures reported in Statement of Financial Activities

Note
Income
Donations and legacies:
Donations
Grant Income
Charitable activities:
Use of Gardens and Facilities
Education
Investments:
Rents
Interest - bank
Other:
Local Authority contribution
Gain on disposal of fixed asset
Total income
Expenditure
Charitable activities:
Management of Gardens and
facilities
Development of Gardens
Education
Total expenditure
4
Net gains/(losses) on
investments
Net income/(expenditure)
Transfer between funds
Gains/(losses) on the
revaluation of fixed assets
Actuarial gains/(losses)on
defined benefit pension scheme
Other gains/(losses)
Net movement in funds
Reconciliation of funds
Balances brought forward
at 1 April
15
Funds balances carried
forward at 31 March		 2021/22
2021/22
2021/22
2021/22
2020/21
Unrestricted
funds
Restricted
funds
Endowment
Funds
Total funds
Prior
period total
funds
£
£
£
£
£
60,788
30,000
-
90,788
256,690
-
150,000
-
150,000
925,000
1,354,821
-
-
1,354,821
1,057,370
58,533
-
-
58,533
21,440
122,232
-
-
122,232
113,258
-
-
-
-
-
125,392
-
-
125,392
353,034
-
-
-
-
-
1,721,766
180,000
0
1,901,766
2,726,792
1,917,004
-
-
1,917,004
2,053,261
-
-
-
-
-
90,175
41,289
-
131,464
132,876
2,007,179
41,289
0
2,048,468
2,186,137
35,657
35,657
56,834
(285,413)
138,711
35,657
(111,045)
597,489
(33,588)
-
33,588
-
-
-
-
-
-
2,480,039
-
-
-
-
(319,001)
138,711
69,245
(111,045)
3,077,528
1,142,231
300,560
11,906,991
13,349,782
10,272,253
823,230
439,271
11,976,236
13,238,737
13,349,782

33

Expenditure

a. Analysis of total expenditure

Unrestricted funds
Charitable activities
Management of Gardens and facilities
Development of Gardens
Other projects
Education
Total unrestricted expenditure
Restricted funds
Charitable expenditure
Management of Gardens and facilities
Development of Gardens
Other projects
Education
Total restricted expenditure
Total expenditure		 2022/23
2022/23
2022/23
2022/23
2021/22
Staff costs
Support and
governance
costs
Other
direct
costs
Total
funds
Prior
period
total
funds
£
£
£
£
£
849,647
422,737 885,392 2,157,776 1,917,004
-
-
38,000
38,000
-
-
-
-
-
-
103,307
839
104,146
90,175
952,954
422,737 924,231 2,299,922 2,007,179
-
520
-
520
-
-
-
-
-
-
-
-
-
-
-
46,899
46,899
41,289
46,899
520
-
47,419
41,289
999,853
423,257 924,231 2,347,341 2,048,468

b. Analysis of support and governance costs

Employees
Communications and IT
Postages
Finance costs
Governance costs
Other
Depreciation
Total costs		 2022/23
2021/22
Management
of Gardens
and facilities
Prior
period
£
£
125,470
111,665
70,016
91,134
9,066
14,892
5,832
3,934
62,477
55,367
50,065
25,021
100,331
101,868
423,257
403,881

34

c. Analysis of governance costs

. Analysis of governance costs
Local Authority support functions
Audit Fee		 2022/23
2021/22
£
£
55,477
49,367
7,000
6,000
62,477
55,367

Governance costs are made up of the support functions provided by the Local Authority including internal audit, banking, financial reporting, employment practice advice and other strategic support, together with the cost of the external audit.

Analysis of staff costs, trustee remuneration and expenses, and key management personnel

a. Employee information

. Employee information
2022/23 2021/22
£ £
Salaries 890,188 814,196
Social security 71,663 59,780
Pension 154,732 147,357
Training 4,879 2,679
Recruitment and relocation 0 0
Other 3,341 3,190
1,124,803 1,027,202 1

No remuneration was paid to trustees in 2022/23, nor were any benefits provided by the charity in return for their role (2021/22: nil). No expenses were paid to the trustees during 2022/23 (2021/22: nil).

The Trust considers the key management personnel to be the trustees and the Director of the Gardens. For 2022/23, total employment benefits including employer pension contributions for key management personnel were £74,163 (2021/22 £67,916).

In 2022/23 one employee received total employee benefits (excluding employer pension costs) within the band of £60,000-£70,000 (2021/22: none). In 2022/23 no employees received total employee benefits (excluding employer pension costs) of £70,000 or over (2021/22: none).

b. Employee numbers

The average number of employees during the year was:

2022/23 2021/22
(Restated)
Headcount 47 46
Full time equivalent 31.53 32.66

35

The employee numbers for 2021/22 have been restated (previously; headcount 50 and FTE 36.2). This is due to an error being identified with the 2021/22 data where a small number of employees were counted more than once.

Auditors remuneration

The fee charged by the auditors, Fiander Tovell Limited, for the audit of the 2022/23 annual accounts is accrued at £7,000. For 2021/22, the auditors were Fiander Tovell Limited and the fee was £6,000.

Government grants received

Government grants received
Hampshire County Council Climate Change Funding
Hampshire County Council Replacement Till Project
Hampshire County Council Waste Prevention Community Grant
Fund
Coronavirus Job Retention Scheme (furlough)		 2022/23
2021/22
£
£
14,000
150,000
24,730
3,500
2,247
42,230
152,247

Related party transactions

Hampshire County Council is a related party of the charitable trust as sole trustee. The Council provided a contribution of £175,154 in the year 2022/23 (2021/22 £125,392).

Hampshire County Council charges SHHG annually for the provision of support functions including internal audit, banking, financial reporting, employment practice advice and other strategic support. The charge for 2022/23 is £55,242 (2021/22 is £49,367).

As a result of the shared banking facilities provided by the County Council, as at 31 March 2023 the cash held by Hampshire County Council on behalf of SHHG was £963,901 (31 March 2022 £932,786).

There were no related-party transactions involving members or Chief Officers of the County Council responsible for the affairs of the trust.

Gift aid

The total value of Gift Aid included within the Statement of Financial Activity for 2022/23 is £175,247. For 2021/22 the figure was £154,524.

Leasing costs

No costs relating to non-cancellable lease arrangements were incurred in either 2022/23 or 2021/22.

36

Tangible fixed assets

Freehold
land &
Buildings		 Investment
Assets		 Furniture and
Equipment
(including
garden
infrastructure)		 Assets
under
construction		 Total
Asset cost, valuation or
revalued amount
Bought forward 1 April 2022
Additions
Disposals
Reclassifications
Revaluation (to RR)
Transfers		 10,165,269
1,606
-
-
50,000
-		 969,431

-

-
-

133,569

-		 1,110,830

3,811

-

-
-

-		 10,356
-

-

-

-

-		 12,255,886
5,417

-
-

183,569

-
Balance carried forward
31 March 2023		 10,216,875 1,103,000 1,114,641 10,356 12,444,872
Accumulated depreciation
& impairment provisions
Less Accumulated
depreciation brought
forward 1 April 2022
Disposals
Depreciation Charges for
the year
Revaluation (to RR)
Impairment charges
Transfers		 (207,491)
-
(203,162)
-
-
-
-

-
-

-

-

-
(273,691)

-

(60,868)

-

-

-		 -

-
-

-

-

-
(481,182)

-

(264,030)

-

-

-
Balance carried forward
31 March 2023		 (410,653) - (334,559) - (745,212)
Net Book Value
Brought forward 1 April
2022		 9,806,222
9,957,778		 1,103,000
969,431		 780,082
837,139		 10,356
10,356		 11,699,660
11,774,704
Carried forward 31 March
2023		 9,806,222 1,103,000 780,082 10,356 11,699,660

37

a. Tangible fixed assets held at valuation

The historic cost equivalent of land and buildings included at valuation are as follows:

Cost
Accumulated depreciation
Net book value		 2022/23
2021/22
Freehold land
& buildings
Investment
assets
Freehold land
& buildings
Investment
assets
£
£
£
£
3,059,762
329,000
3,059,762
329,000
(1,220,251)
-
(1,161,013)
-
1,839,511
329,000
1,898,749
329,000

Freehold land and buildings and investment assets were subject to an independent, professional valuation at 31 March 2021, in line with the Trust’s revaluation accounting policy. Asset revaluations are carried out by RICS qualified valuers from Hampshire County Council's Property Services. For freehold land and buildings the valuation is on either a depreciated replacement cost (DRC) basis or an existing use valuation (EUV) basis; investments assets are valued on a market value basis.

The DRC valuations of freehold land and buildings are subject to the prospect and viability of the continued occupation and use and cannot be relied upon as an indication of the amount that could be recovered if the service was discontinued and the asset retired. Properties valued using the DRC basis are of a specialised nature and the value derived is not based upon evidence of sales of similar assets in the market.

The market value of the investment assets is determined by the RICS qualified valuers based upon the annual rental income they generate.

Heritage assets

The charity holds heritage assets as described in note 2f.

a. Analysis of movements in heritage assets during the year

There has been no movement in the overall value of heritage assets during 2022/23. The balance carried forward at 31 March 2023 therefore remains at £201,532.

b. Analysis of heritage assets transactions over the last 5 years

2022/23 2021/22 2020/21 2019/20 2018/19
£ £ £ £ £
Additions - - - - 57,500
Revaluation - - - - (57,500)
Debtors
2022/23 2021/22
£ £
Other debtors 29,411 55,392

38

Of the other debtors, £14,738 relates to Gift Aid yet to be received for 2022/23 (2021/22 £18,287).

Liabilities: Amounts falling due within one year

Trade creditors
Receipts in advance		 2022/23
2021/22
£
£
(95,271)
(43,951)
(35,008)
-
(130,279)
(43,951)

Of the trade creditors, £7,000 relates to an accrual for Fiander Tovell Limited’s external audit fee for 2022/23.

Analysis of charitable funds

a. Analysis of movements in unrestricted funds

Hillier's development fund
Reserves fund		 Balance at
31 March
2022
Movement in resources
Balance at
31 March
2023
Incoming
Outgoing
Transfers
£
£
£
£
£
723,230
1,978,340
(2,299,922)
258,613
660,261
100,000
-
-
-
100,000
823,230
1,978,340
(2,299,922)
258,613
760,261

The Hillier’s development fund represents the free reserves of the Trust, which may be applied at the discretion of the trustees to further any of the Trust’s charitable objectives.

Since 2003/4 the Trustee has set aside funds to a designated fund which may be used for the general future development of the gardens.

In accordance with the legal requirement of the Charity Commission and the Sir Harold Hillier Garden and Arboretum's reserves policy, a Reserve Fund was established during 2007/08. The value of the Reserve Fund is reviewed annually by the Trust Board, taking into account the potential risks that SHHG may face.

39

b. Analysis of movements in restricted funds

Hillier’s Expedition fund
50 year development fund
Hillier’s Bursary fund
Propagation Unit Fund
Other restricted grants and donations
Elizabeth Creak Trust Training Fund		 Balance at
31 March
2022
Movement in resources
Balance
at 31
March
2023
Incoming Outgoing Transfers
£
£
£
£
£
8,945
-
-
-
8,945
186,432
382
-
-
186,814
41,840
325
(520)
-
41,645
155,000
-
-
-
155,000
-
3,500
-
-
3,500
47,054
25,000
(46,899)
-
25,155
439,271
29,206
(47,419)
-
421,059

The Hillier's expedition fund is used to fund botanical and horticultural expeditions and plant collection work.

The 50 year development fund is used to fund projects in line with the Gardens’ 50 year plan. The 50 year plan is currently being updated so whilst there are no immediate plans to utilise the funds, they are being retained for this specific purpose.

The Propagation Unit Fund is used for the development and construction of a modern, comprehensive Propagation Nursery Unit, to propagate and grow a wide range of plant material for conservation, heritage and educational purposes.

Hillier's bursary fund is used to fund training and development activities for permanent members of the Garden's staff.

Other restricted grants and donations is used to hold restricted grants or donations which have been received for a restricted purpose and have not yet been spent.

The Elizabeth Creak Trust Training Fund is used to fund the training of students. This is a restricted grant.

c. Analysis of movement in the endowment funds

Endowment fund
Applied contributions
Revaluation reserve		 Balance
at 31
March
2022
Movement in resources
Balance at
31 March
2023
Incoming Outgoing
Gains/(losses)
on revaluation of
investment
assets
Transfers
£
£
£
£
£
£
826,602
-
-
-
-
826,602
4,530,076
-
-
-
(258,613)
4,271,463
6,619,558
-
-
183,569
-
6,803,127
11,976,236
-
-
183,569
(258,613)
11,901,192

40

The Endowment fund was established in 1977 to provide an Arboretum and Botanic Garden for the use and benefit of the public.

The applied contributions account shows how much of the contributions have been spent on improvements to buildings and the gardens.

The transfer of £258,613 is the sum of capital expenditure in year of £5,417 less depreciation charges for the year of £264,030.

Analysis of net assets between funds

Note
Restricted Funds:
Hillier's expedition
15b
50 year development fund
15b
Hillier's bursary fund
15b
Propagation unit
15b
Other restricted grants and
donations
15b
Elizabeth Creak Trust
Training Fund
15b
Restricted funds subtotal
Unrestricted funds
15a
Applied contributions
15c
Endowment fund
15c
Revaluation reserve
15c		 Tangible
fixed assets
Investments
Net current
assets
Total
£
£
£
£
-
-
8,945
8,945
-
-
186,814
186,814
-
-
41,645
41,645
-
-
155,000
155,000
-
-
3,500
3,500
-
-
25,155
25,155
-
-
421,059
421,059
-
-
760,261
760,261
4,271,463
-
-
4,271,463
826,602
-
-
826,602
6,803,127
-
-
6,803,127
11,901,192
-
1,181,320
13,082,512

Reconciliation of net movement in funds to net cash flow from operating activities

Net movement in funds
Adjustments for:
Depreciation charges
(Gains) / losses on investments
Dividends, interest and rents from investments
(Profit) / loss on the sale of fixed assets
(Gains) / losses on revaluation of fixed assets
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash provided by (used in) operating activities		 2022/23
2021/22
£
£
(156,225)
(111,045)
264,030
268,075
(133,569)
(35,657)
(136,805)
(122,232)
-
-
(50,000)
-
25,981
88,883
86,328
(51,554)
(100,260)
36,470

41

Cash and cash equivalents

Cash and cash equivalents
Cash held on behalf of SHHG by Hampshire County
Council
Cash at bank
Cash and cash equivalents as at 31 March		 2022/23
2021/22
£
£
963,901
932,786
318,287
318,274
1,282,188
1,251,060

42