## **The Mothecombe Preservation Trust** **Accounts Year Ended 5 April 2021 Charity number: 0276622** ## **The Mothecombe Preservation Trust** ## **Accounts** ## **Year Ended 5 April 2021** **Contents** Page Legal and Administrative Details Trustees’ Report Report of the Independent Examiner Statement of Financial Activities Balance Sheet Notes and Accounting Policies Notes to the Accounts ## **The Mothecombe Preservation Trust** ## **Accounts** ## **Year Ended 5 April 2021** ## **Legal and Administrative Details** ## **1 Status** The Mothecombe Preservation Trust is a charity constituted by a deed dated 26 September 1978. It is registered with the Charity Commissioners under reference 0276622. ## **2 Trustees and Principal Officers** Trustees: Sir Edward Cazalet Lord St Levan Mr H C W Robinson Mr A J B Mildmay-White ## **3 Registered Office** The Flete Estate Haye Farm Holbeton Plymouth Devon PL8 1JZ ## **4 Professional Advisors** Bankers: Accountants: Lloyds Bank plc 8 Royal Parade Plymouth Devon PL1 1HB Francis Clark LLP Chartered Accountants North Quay House Sutton Harbour Plymouth Devon PL4 0RA 1 ## **The Mothecombe Preservation Trust** ## **Trustees’ Report** ## **Year Ended 5 April 2021** The Trustees present their annual report for the year ended 5 April 2021. The accounts have been drawn up in accordance with the appropriate statutory regulations, the charity’s governing document and the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). ## **Structure and principal activity** The Mothecombe Preservation Trust is a registered charity whose principal aim is to restore and preserve for the benefit of the public buildings in Holbeton or Devon, which are of particular beauty or of particular architectural or historic interest. Also, to acquire and preserve land and acquire, convert, furnish and maintain buildings in Mothecombe or Devon for occupation at low or nominal rents for impoverished inhabitants. ## **Financial review** All cottages were let this year. The cottages are kept in a good state of repair for letting purposes. ## **Organisational structure and decision making policy** New Trustees are elected by the Board of Trustees and serve until retirement. ## **Risk management** The Trustees confirm that the major risks to which the charity is exposed as identified by the Trustees have been reviewed and systems are established to mitigate those risks. ## **Results** Net loss for the year amounted to £3,280 and when added to the accumulated surplus brought forward the unrestricted funds decreased to £218,659. ## **Reserves** The Trustees aim to maintain free reserves at a level which equates to approximately six months’ worth of charitable expenditure including support and governance costs. The Trustees consider that rental income is sufficient to cover this. At the period end the unrestricted fund stood at £221,939. ## **Public Benefit** The 2011 Charities Act introduced the requirement for charities to show they provided public benefit. The Trustees have reviewed the objects, goals, services and objectives of the charity in the light of this requirement and can confirm that The Mothecombe Preservation Trust continues to further public benefit. The Trustees' annual report clearly evidences how the charity strives to meet need. 2 ## **The Mothecombe Preservation Trust** ## **Trustees’ Report** ## **Year Ended 5 April 2021** ## **Going Concern** The Trustees are in the process of rethatching the trusts properties and as a result repair costs are significantly higher than usual. Once this process is completed it is expected that the trust will resume profitable trading. The Covid-19 pandemic has impacted many areas of society. Should the pandemic continue long term and impact on rent receivable, costs associated with any ongoing repair programme will be reviewed to ensure the Trust can continue to operate. ## **Statement of Trustees’ Responsibilities** The Trustees are responsible for preparing the Trustees' Annual 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: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - 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 applicable Charities (Accounts and Reports) Regulations, 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. Approved by the Trustees of the Charity on 18 October 2021 and signed on its behalf by: A J B Mildmay-White Trustee 3 ## **The Mothecombe Preservation Trust** ## **Report of the Independent Examiner** ## **Year Ended 5 April 2021** I report to the Trustees on my examination of the accounts of Mothecombe Preservation Trust (the Trust) for the year ended 5 April 2021. ## **Responsibilities and basis of report** As the Trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). You are satisfied that the accounts of the Trust are not required by charity law to be audited and have chosen instead to have an independent examination. I report in respect of my examination of the accounts. I have carried out my examination under section 145 of the 2011 Act. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently I express no opinion as to whether the accounts present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement. ## **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: 1. accounting records with respect to the Trust were not kept as required by section 130 of the 2011 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the applicable 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. 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). I confirm that there are no other matters to which your attention should be drawn to enable a proper understanding of the accounts to be reached. D Leslie ACA Francis Clark LLP Chartered Accountants North Quay House Sutton Harbour Plymouth PL4 0RA Date: 1 November 2021 4 ## **The Mothecombe Preservation Trust** ## **Income and Expenditure Account (Incorporating Statement of Financial Activities)** ## **Year Ended 5 April 2021** ||**Unrestricted Funds**|**Unrestricted Funds**|Unrestricted Funds|Unrestricted Funds| |---|---|---|---|---| |||**2021**||2020| ||**£**|**£**|£|£| |**Income and endowments from:**||||| |Charitable activities||||| |Rents receivable||**112,202**||111,786| |Other trading activities||||| |Wayleaves||**5**||5| |||**–––––––**||–––––––| |**Total**||**112,207**||111,791| |||**–––––––**||–––––––| |**Expenditure on:**||||| |Charitable activities||||| |Repairs and maintenance||74,367||56,440| |Rates and water||(80)||398| |Light, heat and power||205||43| |Management fees||16,241||16,241| |Insurance||20,207||13,577| |Independent examiner’s fee||1,860||1,860| |Software costs||265||648| |Arrangement fees||800||800| |Bank charges||241||224| |Bank interest||1,381||1,733| |||**–––––––**||–––––––| |**Total**||**115,487**||91,964| |||**–––––––**||–––––––| |**Net (expenditure)/surplus**||**(3,280)**||19,827| |**Total funds brought forward**||**221,939**||202,112| |||**–––––––**||–––––––| |**Total funds carried forward**||**218,659**||221,939| |||══════||**══════**| 5 ## **The Mothecombe Preservation Trust** ## **Balance Sheet** ## **5 April 2021** ||||**2021**||2020| |---|---|---|---|---|---| ||**Notes**|**£**|**£**|£|£| |**Fixed assets**|||||| |Heritage assets|5||**343,835**||343,835| |**Current assets**|||||| |Debtors and prepayments|6|**3,115**||8,207|| |Cash at bank||**512**||511|| |||**–––––––**||–––––––|| |||**3,626**||8,718|| |**Creditors:**Amounts|||||| |Falling due within one year|7|**(113,719)**||(115,531)|| |||––––——||––––——|| |**Net current liabilities**|||**(110,093)**||(106,813)| ||||**–––––––**||–––––––| |**Total net assets**|||**233,742**||237,022| ||||**══════**||══════| |**The funds of the charity**|||||| |Unrestricted Funds|||||| |Trust capital|||**15,083**||15,083| |Accumulated surplus|||**218,659**||221,939| ||||**–––––––**||–––––––| |**Total unrestricted funds**|||**233,742**||237,022| ||||**══════**||══════| |Signed on behalf of the Trustees|||||| A J B Mildmay-White Date: 1 November 2021 6 ## **The Mothecombe Preservation Trust** ## **Notes to the Accounts** ## **Year Ended 5 April 2021** ## **1 Accounting Policies** The following principal accounting policies have been applied: ## **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)), and the Charities Act 2011. ## **Basis of preparation** The Mothecombe Preservation Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. ## **Exemption from preparing a cash flow statement** The Charity has taken advantage of small charity exemptions and have therefore not included a cash flow statement in these financial statements. ## **Going concern** The Trustees are in the process of rethatching the trusts properties and as a result repair costs are significantly higher than usual. Once this process is completed it is expected that the trust will resume profitable trading. The Covid-19 pandemic has impacted many areas of society. Should the pandemic continue long term and impact on rent receivable, costs associated with any ongoing repair programme will be reviewed to ensure the Trust can continue to operate. ## **Judgements and key sources of estimation uncertainty** In the application of the Charity's accounting policies, which are described in this note, the Trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historically known factors and experience. Therefore, the Trustees do not perceive there to be critical areas of judgement or key sources of estimation uncertainty in the formulation of the financial statements. ## **Income** All rents are recognised on a receivable basis. Rent received in advance of the period to which it relates is deferred and included in creditors. ## **Expenditure** Expenditure is charged on an accruals basis, inclusive of irrecoverable VAT. Charitable expenditure comprises those costs directly incurred in the pursuance of the charity’s charitable 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. ## **Heritage Assets** Heritage assets acquired by way of donation are included at deemed cost, plus improvements less grants. 7 ## **The Mothecombe Preservation Trust** ## **Notes to the Accounts** ## **Year Ended 5 April 2021** No depreciation is provided, as in the opinion of the Trustees, the assets have an indefinite life and the market value would be in excess of the balance sheet value. ## **Fund accounting** Unrestricted funds are those funds which can be used in accordance with the charitable objects at the discretion of the Trustees. ## **Financial instruments** ## _**Classification**_ The charity holds the following financial instruments: - Short term trade and other debtors and creditors; and - Cash and bank balances All financial instruments are classified as basic. ## _**Recognition and measurement**_ The charity has chosen to apply the recognition and measurement principles in FRS102. Financial instruments are recognised when the charity becomes party to the contractual provisions of the instrument and de-recognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the charity's obligations are discharged, expire or are cancelled. These instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the un-discounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments. ## **2 Trustees’ Remuneration** No remuneration for Trustee duties nor reimbursement of expenses was paid to the Trustees during the year. ## **3 Related Party Transactions** Management fees and other services totalling £24,463 (2020 - £22,100) were charged and rent of £15,240 (2020 - £15,840) was paid to the charity by The Flete Estate Resettlement Trust. Mr A J B Mildmay-White, Trustee, is a beneficiary of this Trust. Amounts owing to the Flete Estate at the balance sheet date amounted to £41,170 (2020 - £45,141). Amounts owing to Mr A J B MildmayWhite at the balance sheet date amounted to £11,223 (2020 - £9,423) ## **4 Trust Capital** The Mothecombe Preservation Trust was constituted by a Deed dated 26 September 1978 and the Founder, Mr A J B Mildmay-White, paid a sum of £100 to the Trustees. Properties comprising Mothecombe Village were assigned to the Mothecombe Preservation Trust by Mr A J B Mildmay-White by a Deed dated 27 September 1978. The value of the Trust Fund on appointment, comprising the value of the properties less the liability at that date for improvement work done on the properties since 1977, was £14,983. These two sums, total £15,083, comprise the Trust capital. 8 ## **The Mothecombe Preservation Trust** ## **Notes to the Accounts** ## **Year Ended 5 April 2021** |**5**|**Heritage Assets**|**2021**|2020| |---|---|---|---| |||**£**|£| ||Balance at 6 April 2020|**343,835**|343,835| |||–––––––|–––––––| ||**Balance at 5 April 2021**|**343,835**|343,835| |||══════|══════| The valuation used in the balance sheet for Mothecombe Village and Ermington Wood is the valuation agreed with the Inland Revenue as at 26 September 1978 of £27,500 with the addition of acquisition expenses and subsequent improvements to three of the cottages at cost less grants received. In addition to this a car park was built costing £24,846 during the year ended 5 April 1999 and the purchase of a lease at Flete Western Lodge for £195,000 in 2011. |**6**|**Debtors and Prepayments**|**2021**|2020| |---|---|---|---| |||**£**|£| ||Rents|**3,115**|8,207| |||–––––––|–––––––| |||**3,115**|8,207| |||══════|══════| |**7**|**Creditors and Accruals**|**2021**|2020| |||**£**|£| ||Bank overdraft|**53,355**|50,362| ||Trade creditors|**13,159**|12,261| ||Accountancy|**1,860**|1,860| ||Other creditors|**40,315**|45,141| ||Rent received in advance|**5,030**|5,907| |||–––––––|–––––––| |||**113,719**|115,531| |||══════|══════| The bank overdraft is secured on freehold property owned by The Flete Estate Resettlement Trust. 9