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2022-03-31-accounts

REGISTERED COMPANY NUMBER: 01672106 (England and Wales) REGISTERED CHARITY NUMBER: 295154

REPORT OF THE TRUSTEES AND AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

FOR

THE KELMARSH TRUST

Mark J Rees LLP Chartered Accountants and Statutory Auditors Granville Hall Granville Road Leicester Leicestershire LE1 7RU

THE KELMARSH TRUST

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Page
Report of the Trustees 1 to 12
Report of the Independent Auditors 13 to 15
Consolidated Statement of Financial Activities 16 to 17
Consolidated Balance Sheet 18 to 19
Company Balance Sheet 20 to 21
Consolidated Cash Flow Statement 22
Notes to the Cash Flow Statement 23
Notes to the Financial Statements 24 to 45

THE KELMARSH TRUST

REPORT OF THE TRUSTEES AND DIRECTORS FOR THE YEAR ENDED 31 MARCH 2022

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 01672106 (England and Wales)

Registered Charity number 295154

Registered office Kelmarsh Hall Kelmarsh Northampton Northamptonshire NN6 9LY

Trustees

Mr R G Flenley (Chairman) Mr CL Greville- Heygate Mr JD Lancaster Mrs C Brocklehurst Mr R King Mr OC Brookshaw

Company Secretary Mrs L A Denton

Senior Statutory Auditor

Mr P Bott FCA

Auditors

Mark J Rees LLP Chartered Accountants and Statutory Auditors Granville Hall Granville Road Leicester Leicestershire LE1 7RU

Bankers

HSBC 15 High Street Market Harborough Leicestershire LE16 7NN

Page 1

THE KELMARSH TRUST

REPORT OF THE TRUSTEES AND DIRECTORS FOR THE YEAR ENDED 31 MARCH 2022

REFERENCE AND ADMINISTRATIVE DETAILS Solicitors

HCR Legal LLP Elgin House Billing Road Northampton NN1 5AU

Investment Managers

M & G Securities Limited PO Box 9038 Chelmsford CM99 2XF

Page 2

THE KELMARSH TRUST

REPORT OF THE TRUSTEES AND DIRECTORS FOR THE YEAR ENDED 31 MARCH 2022

The Trustees of The Kelmarsh Trust (“The Trust”), who are also Directors of the charitable company for the purposes of the Companies Act 2006, present their report and the financial statements of the charity and its subsidiary, Kelmarsh (Events) Limited (“Kelmarsh Events”), for the year ended 31 March 2022. The Trustees have adopted the provisions of 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).

OVERVIEW

Although our financial year 2021-22 started with continuing uncertainty of operational constraints, affecting visitors and events, we were able to achieve a reasonably successful summer season for garden visitors and, after July 2021, with a positive return to weddings and some lesser corporate events. We have operated with a more streamlined management team, and made short term deferrals of some maintenance operations. We are particularly grateful for grant support which has helped us to keep going and putting us in a positive position for the new season of 2022-23.

OBJECTIVES AND ACTIVITIES

Main objectives and aims

The objects of the Trust are:

1.To preserve for the benefit of the nation monuments and buildings of national historic or architectural or artistic interest and importance and to protect and improve the amenities of such buildings and their surroundings;

2.To preserve for the benefit of the nation and as an adjunct to any such buildings as aforesaid pictures and other chattels of national historic or artistic interest;

3.To facilitate the access to and the study and appreciation of such buildings (and their surroundings) furniture, pictures and chattels as aforesaid by the general public

Significant activities and related information

Kelmarsh Hall is listed as Grade 1 in the statutory lists of buildings of architectural and historic interest and the adjoining land is also designated as Scheduled Ancient Monument (SAM) essential for the protection of the character and amenities of Kelmarsh Hall. The Gardens are also included in English Heritage’s Register of Parks and Gardens of Special Historic as Grade II*.

The Trust is responsible for the maintenance and preservation of Kelmarsh Hall and for promoting education about the Hall and the Kelmarsh Hall Estate and its natural history. It also manages an in-house farm and surrounding woodlands located on the Estate.

Kelmarsh Hall is considered key to the Trust and also takes first priority on funds. It is maintained in good order externally and internally in accordance with the agreed Management and Maintenance Plan which has been updated in line with the Quinquennial Buildings Inspection of February 2018 and with full regard to the Conservation Management Plan produced in 2014.

Beyond its importance as a heritage asset the estate is a traditional Northamptonshire mixed arable and pasture agricultural estate. The Estate is largely tenanted supporting farming families some of which are third generation tenants.

The Trustees employ professional farm and property management agents to oversee maintenance and ensure the best returns from farm and let property rents. Let properties are currently being improved to bring them up to the Government’s Energy and Performance Certificate (EPC) under a schedule of improvements commissioned in 2017. The Estate fortunately has a limited turnover of tenants but as properties, which are below the EPC guidelines become vacant, all necessary work is carried out.

Page 3

THE KELMARSH TRUST

REPORT OF THE TRUSTEES AND DIRECTORS FOR THE YEAR ENDED 31 MARCH 2022

The income of the Trust arises from the following significant activities and sources:

Public Benefit

The Trustees are aware of the of the guidance given by the Charity Commission regarding public benefit.

The vision of the Trust is to increase its charitable purpose for the benefit of the public and to work towards greater inclusion of the local community, supporting volunteering and other forms of participation, improving access by extending opening times and widening the diversity of our audiences. Our intention is to enhance the visitor experience and to improve the quality of our facilities so that the Heritage we care for is in a better condition. Our aim is to bring life to the Hall and gardens and wider estate as much more than a static museum, interpreting it as a multi-layered historic story providing greater educational opportunities.

Volunteers

The Trust encourages volunteers from all walks of life (mainly from the local community) to assist in as many activities as possible but particularly to support the Trust in visitor services (as tour guides), in gardening and garden maintenance and in research and cataloguing. Our volunteers support the paid staff in tasks such as visitor meet and greet, school visits, tearoom duties and archiving.

During the 2021 open season when there remained restrictions relating to the pandemic we consulted and took the decision not to invite our garden volunteers back and this also applied to our Hall stewards and archive volunteers, as the Hall was not open to the public. We did have several outside ‘get-togethers’ and can report that everyone is back for the 2022 season and we are all happy to be together again.

The Trustees are extremely grateful for the time and effort given to the Trust by its many dedicated volunteers.

Page 4

THE KELMARSH TRUST

REPORT OF THE TRUSTEES AND DIRECTORS FOR THE YEAR ENDED 31 MARCH 2022

ACHIEVEMENTS AND PERFORMANCE

Maintenance, repair and preservation of the Hall and Estate Buildings

The programme of restoration and maintenance of the Hall and surrounding buildings is ongoing. Despite restrictive periods due to COVID, with grant funding support from the Culture Recovery Fund we were able to prioritise some of the essential repairs and maintenance scheduled in our Quinquennial Survey. These repairs included significant work to the historic Vinery in the Walled Garden and Orangery which overlooks part of our Scheduled Ancient Monument parkland. We have also upgraded our CCTV and outside lighting which, along with better security, provides safer access to and from the Hall for visitors and staff.

Chattels

During 2021 we reassessed some of our room displays, repositioning several of our chattels, carrying out repairs to two large picture frames, replacing two carpets and the Dining Room curtains. The original curtains have been conserved in line with the AIM collections development policy.

In partnership with OKA Interiors we completed the restoration of Nancy Lancaster’s bedroom and bathroom both of which opened to visitors at Easter 2022.

Public Access to the Hall, Gardens and Estate

Whilst following Government guidelines and stringent Health & Safety rules we reopened the gardens, tearoom and shop to the public from Easter Sunday, the 4[th] April 2021 for four days a week. We saw a huge increase in visitors wanting to spend time in the open air and enjoy the gardens. We also opened a new walk around our lake encouraging dog owners to visit plus a Fairy Walk and children’s area which saw a significant increase in family visits.

We had 9,693 visitors to the gardens, sold 214 garden season tickets and hosted 13 private group visits attracting a good cross section of the general public.

Whilst organisers were reluctant to put on large outdoor events, two of our loyal clients did return; Morris Minor Owners Club held a ‘spares day’ and Shambala hosted three camping weekends, both of which had good turnouts.

We hosted 28 weddings during the year. We also had 10 corporate events and 3 photoshoots. These events allowed a further 2,260 people to experience the Hall and Gardens.

Our one in-house event was the restoration of the Christmas Fair which was enjoyed by 1,702 visitors.

The feedback we received last season and continuing into this year has been amazingly positive. This could only be achieved by the support received from the Culture Recovery Fund and the commitment of the management team during a very challenging period.

Page 5

THE KELMARSH TRUST

REPORT OF THE TRUSTEES AND DIRECTORS FOR THE YEAR ENDED 31 MARCH 2022

Kelmarsh Hall Gardens and Estate

During the year significant new planting in the gardens together with renewal of path surfaces and edging to improve accessibility.

Hedgerows were improved by laying sections and replanting some areas where there were gaps. Hedge cutting is in line with countryside care allowing for food for birds during the winter months and safe nesting in the spring. We have installed 2 tawny owl boxes and 3 barn owl boxes; also following an Osprey sighting we are in talks with the Osprey specialist at Rutland Water to reinstate our nesting tower. Bird feeding stations are in place all winter and bird ringing is carried out, including with the help of volunteers, to monitor species.

Trees were selected to grow on to replace hedgerow trees affected with ash dieback. Improvements to timber loading bays in one of our woodlands have been carried out and a programme of woodland improvement began.

Fundraising

Grants and funding are an important and essential part of the preservation of the wider estate, supporting the Trusts objectives. Given the limited income streams, we will continue to fundraise and seek support for larger capital projects, specifically those relating to work on Heritage Assets which have been deferred as a result of the pandemic.

We have received essential support from the Department for Digital, Culture, Media & Sport via the Culture Recovery Fund. This funding has supported our staff positions and contributed towards key overheads during a challenging period. As a result, we are now in a position to re-open fully with an improved offer from April 2022, welcoming back both volunteers and visitors to the Hall. This would not have been possible without the support of the Culture Recovery Fund.

Education

Whilst we could not host school visits due to the pandemic we did invite several pre-school groups to enjoy the outside space and the fairy walk within the woodland and surrounding areas of the Hall. This was met with appreciation and enjoyment for children, their parents and teachers. We continued to hold our fortnightly art classes and held two evening garden tours, all in line with safety guidelines.

A new choir was formed by the Kelmarsh community during 2021 and they practise every Monday evening in our learning suite. The choir has proved to be popular, attending and performing at several local events including the Christmas Fair.

Page 6

THE KELMARSH TRUST

REPORT OF THE TRUSTEES AND DIRECTORS FOR THE YEAR ENDED 31 MARCH 2022

Plans for future periods

The Trustees are of the view that going forward, we are anticipating a considerably stronger season through 2022 and on into 2023. We have a very capable management team at the core, well supported by our close consultants and also by our returning teams of volunteers. We have a good order book of events and weddings. We still need to be appropriately cautious of, and reactive to, the sorts of uncertainties which have characterised the last two and a half years; and we are determined to press on with our key roles in preserving heritage and enhancing visitor access, understanding and enjoyment. We shall also start our internal processes to recognise wider responsibilities and potential as we work towards the target of Net Zero by 2050.

Development priorities for the Kelmarsh Trust

The Trustees and the Management Team are committed to preserving, improving and enhancing the Hall, Gardens and Estate, improving the EPC rating of the let properties, continuing the good relationship with our tenant farmers and working through the maintenance priority list. The following work is scheduled for 2022-23.

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THE KELMARSH TRUST

REPORT OF THE TRUSTEES AND DIRECTORS FOR THE YEAR ENDED 31 MARCH 2022

FINANCIAL REVIEW

Against a backdrop of uncertainty and concern over the volatility of income streams, and the ability of the subsidiary events company to perform at a level required to support the continuing obligations of the Trust, it has been difficult to plan for every eventuality resulting from the pandemic.

Nevertheless, through sound financial management, planning and supervision, along with the support of grant funding and the commitment of key management, we have achieved a positive outcome for the year with an overall net increase in funds.

Throughout this period, we have taken a prudent and low risk approach to budgeting and risk management to ensure sustainability and future viability.

Financial performance and position

The total income for the year increased to £1,212,437 from £1,133,386 in the previous year which, after deducting expenditure of £1,013,088 (2021: £849,828) generated net incoming resources of £199,349 a reduction over the 2021 results of £283,558. These results include exceptional grant funding of £274,700 (2021: £445,290) relating to the pandemic, without this funding the Trust would have operated at a net loss of £75,351 this year (2021: £161,732 loss).

The Trust’s subsidiary, Kelmarsh Events made a net profit of £126,161, an increase on the 2021 profit generated of £2,252. Annual profits from Kelmarsh Events are gift-aided to the Trust and these are incorporated in the above results on a line by line basis.

Total net assets of the Trust and Kelmarsh Events at 31 March 2022 increased by £672,420 from £27,405,169 to £28,077,589. This is mainly represented by fixed assets of £27,508,606 (2021: £27,049,423) as shown in the Balance Sheets on pages 18 to 21.

Investment performance

The income from listed investments achieved was £40,604 this is an increase on last year’s income of £35,475 and was in line with expectations and objectives set.

There were no realised investment gains or losses during the year. The managed listed investments achieved unrealised investment gains of £53,071 for the year (2021: £145,199).

Investment properties were revalued in the year resulting in revaluation gains of £420,000. Last year’s revaluation increase was £370,000 which solely related to investment properties.

Gross income from investment properties increased to £459,388 from £467,502 which after management and maintenance costs contributed net income for the year of £247,859, a reduction over last year’s net income of £313,104 as a result of increased spending.

No additions or disposals of investment properties took place during the year.

Principal Funding Sources

The principal funding sources comprise rental income from the freehold investment properties and farm tenancies, admissions income, income from other investments including the portfolios of listed investments and in recent years additional grant funding.

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THE KELMARSH TRUST

REPORT OF THE TRUSTEES AND DIRECTORS FOR THE YEAR ENDED 31 MARCH 2022

The income from these sources supports the primary aims and objectives of the Trust. These funding sources have faced a higher level of uncertainty in the past couple of years as a result of the pandemic with a loss of admissions and events income and challenges on rental incomes.

Investment Policy

Listed investments

We pursue a policy that provides a reasonable income for our current purposes and enhances income and capital growth over the longer term, thereby enabling us to meet our current and future objectives. It is the Trustees' policy to use the income derived from these investments and not to dispose of these assets which generate an income for the Trust.

A specialist UK investment manager oversees the listed investment portfolios. The Trustees require the investment manager to pay attention to the standard investment criteria, namely the suitability of the class of investment and the need for diversification insofar as it is appropriate to the circumstances of the Trust. Our approach to responsible investments, extends to the Environmental, Social and Governance (ESG) specifications adopted by the investment manager with specific exclusions.

The Trustees monitor these investments by receiving quarterly statements from the investment manager showing the movement in capital value and the income received from investments under management as well as an annual update from the investment manager.

Investment properties

The management of the investment properties is passed to external land agents who are required to maximise the income from these properties whilst ensuring they are maintained in a reasonable state of repair. It is the Trustees' policy not to dispose of these assets.

Several of the Trust’s let properties are below the Energy Performance Certificate requirements. We are aware of this and have undertaken conditional surveys which are being acted upon in a prioritised programme as and when property vacancies occur in accordance with compliance so as to phase the works and minimise terminations.

Reserves Policy

The policy of the Trustees is to maintain a level of reserves which will provide a stable base for the Trust’s continuing activities and enable the Trust to adjust to any significant change in resources through both known and unplanned events, whilst ensuring that excessive funds are not accumulated.

At 31 March 2022 the total funds held by the Trust are £28,077,589 (2021: £27,405,169). This includes endowment funds of £15,110,907 (2021: £15,260,907), restricted funds of £1,225,051 (2021: £1,237,626) and unrestricted funds of £11,741,631 (2021: £10,906,636) of which £361,140 has been designated for specific projects or purposes.

The total funds include £27,508,606 (2021: £27,049,423) which can only be realised by way of disposing of fixed assets (Page 18).

As a result of the pandemic and availability of specialist trades there has been an increase in identified works which have been planned and unfortunately deferred. We have therefore identified and designated funds amounting to £361,140 towards specific projects, including the ongoing EPC requirements on let properties and maintenance of Heritage Assets within the next 12-24 months.

Page 9

THE KELMARSH TRUST

REPORT OF THE TRUSTEES AND DIRECTORS FOR THE YEAR ENDED 31 MARCH 2022

The amount of unrestricted reserves remaining after taking into account designated funds and those held in fixed assets amounts to £207,843 (2021: £355,746).

The nature of the assets of the Trust are such that high levels of expenditure can be incurred in both the short term and long term which necessitates having access to liquid funds to cover eventualities. We consider it reasonable to hold this level of reserves in order to meet operational commitments which equates to between three and six months unrestricted expenditure, in order to provide sufficient funds to finance expenditure on charitable activities and governance costs.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Kelmarsh Trust is a charitable company limited by guarantee which was incorporated on 15 October 1982. It is governed by its Memorandum and Articles of Association.

The members of the Trust are the Trustees who are named on page 1. They are also the directors of the Trust for company law purposes.

In the event of the Trust being wound up, the liability in respect of the guarantee is limited to £1 per member.

Subsidiary Company

The Trust’s wholly owned subsidiary, Kelmarsh Events is a trading company that organises commercial and corporate events held at Kelmarsh. Under a formal agreement the profits of this company are donated under Gift Aid arrangements to the Trust. Kelmarsh Events has its own Board of Directors and operates under a collaboration agreement with the Trust which is under review.

Organisational Structure and Decision Making

The Articles of Association provide for a minimum of three and, up to a maximum of, twelve trustees. The Trustees normally meet four times a year (more recently by Zoom) at which major decisions are made but visits also occur throughout the year. Decisions are then given to the General Manager for implementation.

The General Manager may make decisions on day-to-day matters but is in regular contact, at least weekly, with the Chairman whilst updating all trustees on significant matters. The Trustees also periodically walk around the Hall and Gardens during the year and make an annual tour of the Estate including woodlands, farms and properties.

In addition the trustees have established two committees both of which are chaired by a Trustee and which report to the Trustees.

Recruitment, Appointment, Induction and Training of Trustees

The Trustees continually consider the need for new trustees, both to allow for the natural rotation of Trustees’ terms and to respond to any skills gaps or opportunities for candidates with particular skills to offer. The Trustees take account of Charity Commission guidelines and the Charity Governance Code in considering trustee recruitment and seek to have a proper diversity of trustees who will improve continually the Trust’s governance as well as working towards the objectives and activities shown on page 3.

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THE KELMARSH TRUST

REPORT OF THE TRUSTEES AND DIRECTORS FOR THE YEAR ENDED 31 MARCH 2022

Trustees are encouraged to introduce potential new Trustees, particularly those who live locally to the Hall and Gardens. If appropriate, candidates will be invited to attend a Trustees’ meeting and formal interview. Following these procedures, the formal appointment of new trustees is made at a subsequent meeting.

The induction of new Trustees is provided by the existing Trustees and General Manager. They receive a Trustee manual and induction pack which includes constitution documents and current accounts and other financial information. Training is provided both to new and current Trustees as appropriate.

In accordance with the Articles of Association trustees serve for up to two terms of three years each. They are then not eligible for re-election within a period of one year.

At the date of this Report there are 6 Trustees offering a wide variety of expertise and skills.

Related Parties

Details of related parties, including Trustees, and transactions with them are set out in note 36 to the financial statements.

Staff Remuneration

The remuneration of key staff is regularly reviewed and agreed by the Trustees after, where appropriate, discussions with the General Manager.

Risk Management

The Trustees regularly identify and review the major risks to which the Trust could be exposed and procedures have been established to manage those risks. In particular the Trustees have adopted a risk management policy, which addresses the major governance, operational, financial, reputational, legal and regulatory risks which might impact upon the core purposes and key objectives of the Trust. This builds on and complements existing risk management procedures in many aspects of the Trust’s work in such areas as financial management, health and safety, fire and security and disaster planning arrangements to protect both property and people.

More specifically there is a formal contract with the NFU to provide advice (including regular visits) on health and safety issues covering the Hall, Gardens and wider Estate. There are also maintenance/service contracts covering not only plant and machinery but also fire extinguishers, fire and intruder alarms. Where necessary staff are updated on these issues and reports made to the Trustees by the General Manager.

The Trustees are conscious of the need to keep up to date on Charity Commission and other legal and regulatory developments and changes in order to protect the Trust.

In order to formalise and document risk management matters there is a formal risk register which is reviewed regularly by the Management Team and on an annual basis by the Trustees.

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THE KELMARSH TRUST

REPORT OF THE TRUSTEES AND DIRECTORS FOR THE YEAR ENDED 31 MARCH 2022

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also the directors of The Kelmarsh Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and the group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Report of the Trustees approved by order of the board of Trustees, as company directors, on 6 October 2022 and signed on behalf of the Trustees by:

RG Flenley - Chairman

Page 12

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE KELMARSH TRUST

Opinion

We have audited the financial statements of The Kelmarsh Trust (the 'parent charitable company') and its subsidiaries (the ‘group’) for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, Company Balance Sheet, the Consolidated Cash Flow Statement and notes to the financial statements, 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 (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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE KELMARSH TRUST

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and of the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they 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 group’s and parent charitable company'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 charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

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 a Report of the Independent Auditors 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISA’s (UK).

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We obtained an understanding of the legal and regulatory frameworks applicable to the group and to the parent charitable company and the sector in which it operates through our general commercial experience and existing knowledge of the charitable sector. We determined that the following laws and regulations were most significant: Charities SORP (FRS 102), FRS 102, Companies Act 2006 and the relevant tax compliance regulations in the UK. In addition, we concluded that there are certain laws and regulations that may have an impact in the determination of the amounts and disclosures in the financial statements such as health and safety and employee related matters.

We enquired of management concerning the group’s and parent charitable company’s policies and procedures relating to:

Page 14

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE KELMARSH TRUST

We communicated relevant laws and regulations and potential areas of fraud to all audit team members including the potential for fraud in revenue recognition. We remained alert to any indications of fraud or non compliance with laws and regulations throughout the audit.

We have determined that the principal risk areas where material irregularities could occur were related to posting manual journal entries to manipulate financial performance, revenue recognition and significant one – off or unusual transactions.

Our audit procedures were designed to respond in particular to these identified risks (including non-compliance with laws and regulations and fraud).

Our audit procedures included but were not limited to:

We did not identify any matters during the course of our work that indicated non compliance with laws and regulations or relating to fraud.

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 Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr P Bott FCA (Senior Statutory Auditor) for and on behalf of Mark J Rees LLP Chartered Accountants, Statutory Auditor Granville Hall Granville Road Leicester Leicestershire LE1 7RU

Date: 26 October 2022

Page 15

THE KELMARSH TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted
funds
Notes
£
INCOMING RESOURCES
Voluntary Income 2
10,400
Charitable activities
Preservation
Commercial trading operations
4
6
87,157
230,840
Investment income
3
500,002
Other income 5
98,707
Total
927,106
EXPENDITURE ON
Raising funds
Commercial trading activities
104,679
Investment management costs
7
179,029
Charitable activities
Preservation
8
412,341
Governance costs
9
19,133
Total
715,182
Incoming resources less expenditure
211,924
Net gains/(losses) on investments 10
623,071
NET
INCOME/(EXPENDITURE)
834,995
Transfers between funds
-
Net movement in funds
834,995
RECONCILIATION OF
FUNDS
Total funds brought forward
10,906,636
TOTAL FUNDS CARRIED
FORWARD
11,741,631
Restricted
funds
£
285,331
-
-
-
-
285,331
-
32,500
265,406
-
297,906
(12,575)
-
(12,575)
-
(12,575)
1,237,626
1,225,051
Endowment
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
(150,000)
(150,000)
-
(150,000)
15,260,907
15,110,907		 2022

Total
funds
£
295,731
87,157
230,840
500,002
98,707
1,212,437
104,679
211,529
677,747
19,133
1,013,088
199,349
473,071
672,420
-
672,420
27,405,169
28,077,589		 2021
Total
funds
£
456,407
50,614
20,821
502,983
102,561
1,133,386
29,216
154,398
650,992
15,222
849,828
283,558
515,199
798,758
-
798,757
26,606,412
27,405,169

The notes form part of these financial statements

Page 16

THE KELMARSH TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED)

CONTINUING OPERATIONS

The consolidated Statement of Financial Activities includes all gains and losses recognised in the year and previous years. All incoming resources and resources expended derive from continuing activities.

The notes form part of these financial statements

Page 17

THE KELMARSH TRUST

CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
16
166,493
Heritage assets
17
1,322,045
Investments
Listed investments
18
894,110
Investment properties
19
8,790,000
11,172,648
CURRENT ASSETS
Stocks
20
21,543
Debtors: amounts falling due
within one year
22
147,134
Cash at bank and in hand
799,613
968,290
CREDITORS
Amounts falling due within
one year
24
(392,886)
NET CURRENT ASSETS
575,404
TOTAL ASSETS LESS
CURRENT LIABILITIES
11,748,052
CREDITORS
Amounts falling due after 25
(6,421)
more than one year
NET ASSETS
11,741,631
FUNDS
32
Unrestricted general funds
Unrestricted fair value reserve
Designated funds
3,758,653
7,621,838
361,140
Restricted funds
Endowment funds
Endowment fair value reserve
TOTAL FUNDS
11,741,631		 Restricted
funds
Endowment
funds
£
£
142,096
-
1,082,955
760,907
-
-
-
14,350,000
1,225,051
15,110,907
-
-
-
-
-
-
-
-
-
-
-
-
1,225,051
15,110,907
- -
1,225,051
15,110,907
1,225,051
1,751,783
13,359,124
1,225,051
15,110,907		 2022
Total
funds
£
308,509
3,165,907
894,110
23,140,000
27,508,606
21,543
147,134
799,613
968,290
(392,886)
575,404
28,084,010
(6,421)
28,077,589
3,758,653
7,621,838
361,140
1,225,051
1,751,783
13,359,124
28,077,589
 2021
Total
funds
£
322,477
3,165,907
841,039
22,720,000
27,049,423
15,314
147,249
576,615
739,178
(323,957)
415,221
27,464,644
(59,475)
27,405,169
3,907,869
6,998,767
-
1,237,626
1,751,783
13,509,124
27,405,169

The notes form part of these financial statements

Page 18

THE KELMARSH TRUST

CONSOLIDATED BALANCE SHEET (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies.

The financial statements were approved by the Board of Trustees on 6 October 2022 and were signed on its behalf by:

Mr RG Flenley – Trustee

The notes form part of these financial statements

Page 19

THE KELMARSH TRUST

COMPANY BALANCE SHEET 31 MARCH 2022

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
16
166,493
Heritage assets
17
1,322,045
Investments
18
895,110
Investment properties
19
8,790,000
11,173,648
CURRENT ASSETS
Stocks
21
16,566
Debtors: amounts falling due
within one year
23
274,189
Cash at bank and in hand
570,437
861,192
CREDITORS
Amounts falling due within one
year
26
(293,638)
NET CURRENT ASSETS
567,554
TOTAL ASSETS LESS
CURRENT LIABILITIES
11,741,202
CREDITORS
Amounts falling due after more
than one year
27
(6,421)
NET ASSETS
11,734,781
Restricted
funds
£
142,096
1,082,955
-
-
1,225,051
-
-
-
-
-
-
1,225,051
-
1,225,051
Endowment
funds
£
-
760,907
-
14,350,000
15,110,907
-
-
-
-
-
-
15,110,907
-
15,110,907		 2022

Total
funds
£
308,589
3,165,907
895,110
23,140,000
27,509,606
16,566
274,189
570,437
861,192
(293,638)
567,554
28,077,160
(6,421)
28,070,739		 2021
Total
funds
£
322,477
3,165,907
842,039
22,720,000
27,050,423
11,018
134,099
469,875
614,992
(255,537)
359,455
27,398,319
(11,559)
27,398,319

The notes form part of these financial statements

Page 20

THE KELMARSH TRUST

COMPANY BALANCE SHEET (CONTINUED) 31 MARCH 2022

T
h
e
Charitable company’s surplus
(deficit) for the financial year
FUNDS
Unrestricted general fund
Unrestricted fair value reserve
Designated fund
Restricted fund
Endowment fund
Endowment fair value reserve
TOTAL FUNDS		 Unrestricted
funds
£
3,751,803
7,621,838
361,140
-
-
-
11,734,781		 Restricted
funds
£
-
-
-
1,225,051
-
-
1,225,051		 Endowment
funds
£
-
-
-
-
1,751,783
13,359,124
15,110,907		 2022
Total
funds
£
672,420
3,751,803
7,621,838
361,140
1,225,051
1,751,783
13,359,124
28,070,739		 2021
Total
funds
£
3,901,019
6,998,767
-
1,327,626
1,751,783
13,509,124
798,757
27,398,319

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies.

The financial statements were approved by the Board of Trustees on 6 October 2022 and were signed on its behalf by:

Mr RG Flenley – Trustee

The notes form part of these financial statements

Page 21

THE KELMARSH TRUST

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest element of hire purchase payments
paid
Tax paid
Finance costs paid
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Purchase of heritage assets
Sale of tangible fixed assets
Sale of fixed asset investments
Interest received
Dividends received
Net cash provided by investing activities
Cash flows from financing activities
Capital repayments in year
Bounce back loan
Net cash provided by/(used in) financing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning
of the reporting period
Cash and cash equivalents at the end of the
reporting period		 2022
£
260,350
(668)
(650)
259,032
(21,511)
-
-
-
10
40,604
19,103
(5,137)
(50,000)
(55,137)
222,998
576,615
799,613		 2021
£
306,734
(1,047)
(864)
304,823
(37,354)
-
5,462
-
6
35,475
3,589
(10,323)
50,000
39,677
348,090
228,525
576,615

The notes form part of these financial statements

Page 22

THE KELMARSH TRUST

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2022

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES OPERATING ACTIVITIES
2022 2021
£ £
Net income for the reporting period (as per the Statement of Financial
Activities) 672,420 798,757
Adjustments for:
Depreciation charges 35,399 36,196
Taxation
Gain on investments (473,071) (515,199)
Profit on disposal of fixed assets - (2,605)
Interest received (10) (6)
Interest element of hire purchase and finance lease rental payments 668 1,047
Finance costs 650 864
Dividends received (40,604) (35,475)
(Increase)/decrease in stocks (6,229) (4,883)
(Increase)/decrease in debtors 115 (14,238)
Increase/(decrease) in creditors 71,012 42,276
Net cash provided by/(used in) operations 260,350 306,734

2. ANALYSIS OF CHANGES IN NET FUNDS

Other
non-cash
At 1.4.21 Cash flow changes At 31.03.22
£ £ £ £
Net cash
Cash at bank 576,615 222,998 799,613
576,615 222,998 799,613
Debt
Hire purchase (16,696) 5,137 - (11,559)
Loan – Miss Lancaster’s 1994 Charitable Trust (86,420) (1,369) - (87,789)
Bounce Back Loan (50,000) 50,000 - -
(153,116) 53,768 - (99,348)
Total 423,499 276,766 - 700,265

The notes form part of these financial statements

Page 23

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the group and charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', the Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

Status of company

The Trust is a company limited by guarantee and does not have any share capital (Company registered number 01672106, charity registered number 295154). The liability of the members is limited but shall not exceed £1.

Significant judgements and estimates

There were no areas in which the preparation of the financial statements required management to make significant judgements or estimates.

Basis of consolidation

The consolidated accounts incorporate the results for the year ended 31 March 2022 of the Trust and Kelmarsh Events, its wholly owned subsidiary, which have been included on a line by line basis. As permitted by Section 408 of the Companies Act 2006, the Trust has not presented its own income and expenditure account in addition to the consolidated income and expenditure account.

Income

All income is recognised in the Statement of Financial Activities once the Trust has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

The following specific policies are applied to particular categories of income:

Voluntary income is received by way of donations and gifts and is included in full in the Statement of Financial Activities when receivable.

Investment income from rents relating to investment property is included on an accruals basis. Rental income arising from the rental of the Hall is included on an accruals basis under preservation income. Listed investment income is included when receivable and interest receivable is accounted for on an accruals basis.

Grant income is credited in the period to which it relates. Grant income is included as incoming resources from charitable activities when these amount to a contract for services, but as voluntary income where they have been given with greater freedom of use.

Incoming resources from activities for generating funds and charitable trading activities are accounted for when earned and stated net of value added tax.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Trust to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

continued...

Page 24

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES - continued

Expenditure - Continued

Costs of activities to generate funds comprise those costs directly attributable to investment management activities and the costs of Kelmarsh Events.

Investment management costs comprise those costs directly attributable to managing the fixed asset investment portfolio.

Charitable expenditure comprises those costs incurred by the Trust in the delivery of its objectives. It includes those costs which can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Trust and include the audit fees and cost linked to the strategic management of the charity.

Allocation and apportionment of costs

All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, other costs are apportioned on the basis of the proportion of direct expenditure.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Drainage works - 5% on reducing balance
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance
Office equipment - 25% on reducing balance

All tangible fixed assets costing £1,000 or more are capitalised and included at cost.

Fixed assets are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable or as otherwise required by relevant accounting standards.

Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of fair value less costs to sell and value-in-use, are recognised as impairment losses. Impairments of revalued assets are treated as a revaluation decrease. All other impairment losses are recognised in the income statement.

Heritage assets

Freehold land and buildings included in heritage assets comprise Kelmarsh Hall which is listed as Grade 1 in the statutory lists of buildings of architectural and historic interest, together with adjoining land which is also essential for the protection of the character and amenities of Kelmarsh Hall. Heritage assets are included at cost, with the exception of freehold land and buildings transferred to the Trust by the Executors of Colonel CG Lancaster and by the Executors of Miss CV Lancaster, which are included at probate values at the dates of transfer. No depreciation is charged on these assets as they are considered to have an indefinitely long useful life. Expenditure on the conservation and preservation of Kelmarsh Hall is charged to unrestricted funds when it is incurred.

continued...

Page 25

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES - continued

Fixed asset investments

Investment properties are shown at most recent valuation. Any aggregate surplus or deficit arising from changes in market value is transferred to a fair value reserve.

Listed investments quoted on a recognised stock exchange are stated at market value at the year end. Their original cost is shown as a note.

Freehold investment properties are valued at least every five years and included at market value at the date of valuation. Their original cost is shown as a note. All gains and losses on revaluations and disposals are taken to the Income and Expenditure account.

Other investments are shown at cost less amounts written off. All gains and losses on revaluations and disposals are taken to the Income and Expenditure account.

Stocks

Stocks comprise farm stocks and have been valued at the lower of cost and net realisable value. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted and designated funds can be used in accordance with the charitable objectives at the discretion of the trustees. They include a revaluation reserve representing the restatement of investment assets at market rates.

The permanent endowment fund is represented by freehold land and buildings and investment properties transferred to the charity by the Executors of Colonel CG Lancaster on the direction of Miss CV Lancaster, the benefactress at the commencement of The Kelmarsh Trust, less the value of the land lost in respect of the compulsory purchase by the Department of Transport of land relating to the A14 Link Road.

Restricted funds can only be used for particular restricted purposes within the objects of the Trust. 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 notes to the financial statements.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their useful lives or the lease term, whichever is shorter.

The interest element of these obligations is charged to the statement of financial activities over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the Trust’s pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

continued...

Page 26

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES - continued

Going concern

The COVID-19 pandemic had a significant impact on our operations over the past couple of years. With restrictions on tourism and hospitality venues, weddings and other events in place across the country now released, sales have started to return to normal levels during the year. In accordance with the government guidance, we re-commenced our events activities in Summer 2021.

The Trustees have undertaken a number of measures to mitigate costs and reduce expenditure, taking advantage of the Government's Job Retention scheme and other Government support available, including the Bounce Back Loan.

The Trustees therefore continue to adopt the going concern basis in preparing the consolidated financial statements.

2. VOLUNTARY INCOME – GROUP AND COMPANY

Unrestricted
Restricted
Endowment
funds
funds
funds
£
£
£
Donations
10,400
-
-
Grants
-
285,331
-
10,400
285,331
-
Donations received, and included in the above, are as follows:
Donations


Miss CV Lancaster’s 1994 Charitable Trust
Other
Grants received, and included in the above, are as follows:
Renewable Heating Incentive
Heritage Fund
Daventry District Council
Coronavirus Job Retention Scheme
Cultural Recovery Fund for Heritage		 2022
Total
funds
£
10,400
285,331
295,731
2022
£
10,000
400
10,400		 2021
Total
funds
£
-
456,407
456,407
2021
£
-
1,425
1,425
2021
£
11,117
102,400
35,000
44,290
263,600
456,407
2022
£
10,631
-
-
-
274,700
285,331

continued...

Page 27

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

3. INVESTMENT INCOME – GROUP AND COMPANY

2022 2021
Unrestricted Restricted Endowment
Total		 Total
funds funds funds funds funds
£ £ £ £ £
Rent receivable 459,388 - - 459,388 467,502
Listed investment income 40,604 - - 40,604 35,475
Interest receivable 10 - - 10 6
500,002 - - 500,002 502,983
4. INCOME FROM CHARITABLE ACTIVITIES – GROUP AND COMPANY
2022 2021
Preservation Preservation
£ £
Rent receivable 30,700 29,600
Visitor admissions, teas and sundry sales 37,962 1,089
Livestock and farm sales 1,516 2,796
Agricultural grants and subsidies 15,255 15,372
Wayleaves and compensation 1,724 1,757
87,157 50,614
5. OTHER INCOME – GROUP AND COMPANY
2022 2021
£ £
Windfarm rent, compensation and 98,707 102,561
contribution to costs
98,707 102,561
6. KELMARSH EVENTS INCOME – GROUP AND COMPANY
2022 2021
£ £
Kelmarsh Events 230,840 20,821
230,840 20,821

continued...

Page 28

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

7. INVESTMENT MANAGEMENT COSTS

Unrestricted
funds
£
Agents letting fees
67,156
Repairs, maintenance and
let property project costs
111,873
179,029
CHARITABLE ACTIVITIES COSTS
Preservation
Governance costs (see note 9)
GOVERNANCE COSTS
Travelling and Trustees expenses
Auditors' remuneration (charity only)
Legal and professional
Interest payable and similar charges		 Restricted
Endowment
funds
funds
£
£
-
-
32,500
-
32,500
-
 2022
Total
funds
£
67,156
144,373
211,529
2022
£
677,747
19,133
696,880
2022
£
4,421
14,062
-
650
1 19,133		 2021
Total
funds
£
55,778
98,620
154,398
2021
£
650,992
15,222
666,214
2021
£
907
13,951
-
364
15,222

8. CHARITABLE ACTIVITIES COSTS

9. GOVERNANCE COSTS

continued...

Page 29

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

10. NET GAINS/(LOSSES) ON INVESTMENTS

Gains/(losses) on revaluation of investments
Gains on revaluation of investment properties		 2022
£
53,071

420,000
473,071		 2021
£
145,199
370,000
515,199

11. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Auditors' remuneration (Group)
Depreciation - owned assets
Depreciation - assets on hire purchase contracts and finance leases
Surplus on disposal of fixed assets
Hire purchase interest and finance lease charges		 2022
£
18,132
34,091
1,308
-
668		 2021
£
17,872
34,452
1,744
(2,605)
1,047

12. TRUSTEES' REMUNERATION, BENEFITS AND EXPENSES

There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.

Trustees' expenses

Trustees' expenses
The above consist of travel and subsistence expenses reimbursed for Trustees.
STAFF COSTS
Wages and salaries
Social security costs
Other pension costs		 2022
£
4,421
2022
£
180,199
10,353
31,453
222,005		 2021
£
907
2021
£
207,546
13,372
27,364
248,282

13. STAFF COSTS

continued...

Page 30

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

13. STAFF COSTS- continued

The average number of employees during the year was 11 (2021: 9).

No employees received emoluments in excess of £60,000 in either year.

The charity currently employs casual seasonal staff as guides during the months the Hall and Gardens are open to visitors. Staff are also employed on a casual basis for the activities of Kelmarsh Events. The full-time equivalent is included in the staff numbers above.

The permanent staff are spread across a number of departments which reflect the diverse activities of a historic house and its estate.

Remuneration to key management personnel, including employer’s national insurance and pension contributions, amounted to £60,476 (2021: £60,456).

continued...

Page 31

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

14. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

INCOMING RESOURCES
Voluntary income
Charitable activities
Preservation
Commercial trading operations
Investment income
Other income
Total
EXPENDITURE ON
Raising funds
Other trading activities
Investment management costs
Charitable activities
Preservation
Governance costs
Total
Incoming resources less expenditure
Net gains on investments
NET INCOME/(EXPENDITURE)
Transfers between funds
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
35,000
50,614
20,821
502,983
102,561
711,979
29,216
82,746
296,055
7,222
415,239
296,740
515,199
811,939
(21,498)
790,441
10,116,195
10,906,636
Restricted
funds
£
421,407
-
-
-
421,407
-
71,652
354,937
8,000
434,589
(13,182)
-
(13,182)
21,498
8,316
1,229,310
1,237,626
Endowment
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15,260,907
15,260,907
Total
funds
£
456,407
50,614
20,821
502,983
102,561
1,133,386
29,216
154,398
15,222
283,558
849,828
283,558
515,199
798,757
-
798,757
26,606,412
27,405,169

continued...

Page 32

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

15. NET INCOME FOR THE FINANCIAL YEAR

As permitted by Section 408 of the Companies Act 2006 the parent charity's Statement of Financial Activities has not been included in these financial statements. The parent charity's total incoming resources for the year were £1,107,758 (2021: £1,104,172) and total resources expended were £908,409 (2021: £820,612) resulting in net incoming resources for the year of £199,349 (2021:£283,558) which included a donation of £126,161 (2021: £2,252) from Kelmarsh Events. The consolidated net surplus for the year for the Trust was £672,420 (2021: £798,757) after other recognised gains and losses.

16. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
COST
At 1 April 2021
Additions
Disposals
At 31 March 2022
DEPRECIATION
At 1 April 2021
Charge for year
Eliminated on disposal
At 31 March 2022
NET BOOK VALUE
At 31 March 2022
At 31 March 2021		 Drainage
works
£
94,033
-
-
94,033		 Plant and
machinery
£
374,419
19,009
-
393,428		 Fixtures
and
fittings
£
142,463
347
-
142,810
116,805
6,415
-
123,220
19,590
25,658
53,773
2,013
-
55,786
38,247
40,260		 179,033
19,035
-
198,068
195,360
195,386

continued...

Page 33

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

16. TANGIBLE FIXED ASSETS - continued

COST
At 1 April 2021
Additions
Disposals
At 31 March 2022
DEPRECIATION
At 1 April 2021
Charge for year
Eliminated on disposal
At 31 March 2022
NET BOOK VALUE
At 31 March 2022
At 31 March 2021		 Motor
vehicles
£
83,612
-
-
83,612
34,134
4,869
-
39,003
44,609
49,478		 Office
equipment
£
39,048
2,155
-
41,203
27,353
3,067
-
30,420
10,783
11,695		 Totals
£
733,575
21,511
-
755,086
411,098
35,399
-
446,497
308,589
322,477

Fixed assets included in the above, which are held under hire purchase contracts, are as follows:

Plant and
machinery
£
COST
At 1 April 2021
22,400
Disposals/Transfer to ownership
-
22,400
DEPRECIATION
At 1 April 2021
7,169
Charge for year
1,308
At 31 March 2022
8,477
NET BOOK VALUE
At 31 March 2022
13,923
At 31 March 2021
15,231		 Totals
£
22,400
-
22,400
7,169
1,308
8,477
13,923
15,231

continued...

Page 34

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

17. HERITAGE ASSETS – GROUP AND COMPANY

MARKET VALUE
At 1 April 2021 and 31 March 2022
NET BOOK VALUE
At 31 March 2022
At 31 March 2021		 Total
£
3,165,907
3,165,907
3,165,907

The Heritage assets consist of Kelmarsh Hall together with amenity lands, gardens and woodlands and Home Farm.

Freehold land and buildings are made up as follows;

Transfer to the Trust during the year ended 31 March 1988 by the executors of
Colonel CG Lancaster at probate value
Transfers to the Trust during the year ended 31 March 1997 by the executors
of Miss CV Lancaster at probate value
Acquisitions at cost comprising improvements carried out in accordance with
the Trust’s development plan
Acquisitions at cost during 2017- 2019 relating to the Heritage Lottery Fund
project		 £
760,907
310,000
735,211
1,359,789
3,165,907

The transactions relating to the heritage assets for this reporting period and for each of the previous four reporting periods are summarised as follows;

Cost brought forward
Additions
Donations
Cost carried forward
Charge for impairment
Disposals
Proceeds		 2022
£
3,165,907
-
-
3,165,907
-
-
-		 2021
£
3,165,907
-
-
3,165,907
-
-
-		 2020
£
3,165,907
-
-
3,165,907
-
-
-		 2019
£
3,133,896
32,011
-
3,165,907
-
-
-		 2018
£
2,331,006
802,890
-
3,133,896
-
-
-

continued...

Page 35

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

18. FIXED ASSET INVESTMENTS - GROUP

Listed
investments
£
MARKET VALUE
At 1 April 2021
841,039
Revaluations
53,071
At 31 March 2022
894,110
NET BOOK VALUE
At 31 March 2022
894,110
At 31 March 2021
841,039		 Totals
£
841,039
53,071
894,110
894,110
841,039

There were no investment assets outside the UK.

The original cost of listed investments (all of which are quoted on a recognised stock exchange) was £1,440,642 before disposals of £670,400 during the years ended 31 March 2017 to 31 March 2022. They are held in portfolios managed by M & G Securities Limited.

COMPANY
Shares in
group
undertakings
Listed
investments
£
£
MARKET VALUE
At 1 April 2021
1,000
841,039
Disposals
-
-
Unrealised gains /(losses)
-
53,071
At 31 March 2022
1,000
894,110
NET BOOK VALUE
At 31 March 2022
1,000
894,110
At 31 March 2021
1,000
841,039		 Totals
£
842,039
-
53,071
895,110
895,110
842,039

There were no investment assets outside the UK.

continued...

Page 36

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

18. FIXED ASSET INVESTMENTS - continued

The company's investments at the balance sheet date in the share capital of companies include the following: Kelmarsh (Events) Limited

Nature of business: Organisation of events

%
Class of share:
holding
£1 Ordinary
100
INVESTMENT PROPERTY – GROUP AND COMPANY
FAIR VALUE
At 1 April 2021
Additions
Revaluation
At 31 March 2022
NET BOOK VALUE
At 31 March 2022
At 31 March 2021		 £
22,720,000
-
420,000
23,140,000
23,140,000
22,720,000

19. INVESTMENT PROPERTY – GROUP AND COMPANY

Freehold investment properties were valued at 31 March 2022 by Howkins & Harrison, Chartered Surveyors and Valuers. The basis of valuation for residential properties was at fair value with an appropriate discount to take account of the likelihood of gaining vacant possession within a period of time, and for farm properties on an investment basis ignoring sitting tenants’ bids which would be at higher levels.

The original cost of freehold investment properties was £2,100,945 (2021: £2,100,945). This is made up as follows:

Transfers to the Trust during the year ended 31 March 1988 by the executors
of Colonel CG Lancaster, at probate value
Less: land lost upon compulsory purchase by the Department of Transport
relating to the A14 Link Road
Transfers to the Trust during the year ended 31 March 1997 by the executors
of Miss CV Lancaster, at probate value
Other acquisitions at cost		 £
1,090,876
(100,000)
990,876
1,048,450
61,619
2,100,945

continued...

Page 37

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

20.
STOCKS - GROUP
Farm Stocks
Other stocks
21.
STOCKS – COMPANY
Farm stocks
22.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR – GROUP
Trade debtors
VAT
Prepayments
23.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR – COMPANY
Trade debtors
Amounts owed by group undertakings
VAT
Prepayments
24.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR – GROUP
Hire purchase (see note 30)
Trade creditors
Social security and other taxes
Other creditors
Other loans (see note 28)
VAT
Accruals and deferred income

continued...

Page 38

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS – continued FOR THE YEAR ENDED 31 MARCH 2022

24. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR – GROUP – continued

Hire purchase creditors are secured on the assets concerned. Deferred income includes deposits received for events held after the year end.

25. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR – GROUP

Hire purchase (see note 30)
Other loans (see note 28)
26.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR – COMPANY
Hire purchase (see note 30)
Trade creditors
Amounts owed to group undertakings
Social security and other taxes
Other creditors
Other loans (see note 29)
VAT
Accruals and deferred income		 2022
£
6,421
-
6,421
2022
£
5,138
118,165
-
4,268
3,757
87,789
-
74,521
293,638		 2021
£
11,559
47,916
59,475
2021
£
5,137
38,300
16,124
3,213
3,757
86,420
-
102,585
255,536

Hire purchase creditors are secured on the assets concerned. Deferred income includes deposits received for events held after the year end.

27. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR – COMPANY

Hire purchase (see note 30)
Hire purchase creditors are secured on the assets concerned.		 2022
£
6,421
6,421		 2021
£
11,559
11,559

continued...

Page 39

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

28. LOANS – GROUP

An analysis of the maturity of loan is given below:
Amounts falling due within one year on demand:
Loan from Miss CV Lancaster’s 1994 Charitable Trust
Bounce Back Loan
Amounts falling due after more than one year:
Bounce Back Loan
29.
LOANS – COMPANY
An analysis of the maturity of loans is given below:
Amount falling due within one year on demand:
Loan from Miss CV Lancaster’s 1994 Charitable Trust
30.
LEASING AGREEMENTS – GROUP AND COMPANY
Minimum lease payments under hire purchase fall due as follows:
Net obligations repayable:
Within one year
Between one and five years		 2022
£
87,789
-
87,789
2022
£
-
2022
£
87,789
2022
£
5,138
6,421
11,559		 2021
£
86,420
2,084
88,504
2021
£
47,916
2021
£
86,420
2021
£
5,137
11,559
16,696

continued...

Page 40

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

31. SECURED DEBTS – GROUP AND COMPANY

The following secured debts are included within creditors:

Hire purchase contracts
Hire purchase creditors are secured on the assets concerned.		 2022
£
11,559		 2021
£
16,697

32. MOVEMENT IN FUNDS

Unrestricted funds
General fund
General fair value reserve
Designated fund – Hall & Gardens
Designated fund – Let Property
Restricted funds
Contribution to heating system
Obtaining museum accreditation
Heritage Lottery Fund
Endowment funds
Permanent endowment fund
Endowment fair value reserve
TOTAL FUNDS		 At 1.4.21
Net
movement in
funds
£
£
3,907,869
211,924
6,998,767
-
-
623,071
-
-
10,906,636
834,995
147,370
(10,750)
7,301
(1,825)
1,082,955
-
1,237,626
(12,575)
1,751,783
13,509,124
-
(150,000)
15,260,907
(150,000)
27,405,169
672,420		 Transfers
between
funds
£
(361,140)
-
175,290
185,850
-
-
-
-
-
-
-
-
-		 At 31.3.22
£
3,758,653
7,621,838
175,290
185,850
11,741,631
136,620
5,476
1,082,955
1,225,051
1,751,783
13,359,124
15,110,907
28,077,589

continued...

Page 41

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

32. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above
Unrestricted funds
General fund
General fair value reserve
Restricted funds
Renewable heating incentive
Heritage fund
Coronavirus job retention scheme
Cultural recovery fund for heritage
Contribution to heating system
Obtaining museum accreditation
Endowment funds
Permanent endowment fund
Endowment fair value reserve
TOTAL FUNDS		 a re as follows:
Incoming
resources
£
927,106
-
927,106
10,631
-
-
274,700
-
-
285,331
-
-
1,212,437		 Resources
expended
£
715,182
-
715,182
10,631
-
-
274,700
10,750
1,825
297,906
-
-
-
1,013,088		 Gains and
losses
Movement in
funds
£
£
-
211,924
623,071
623,071
623,071
834,995
-
-
-
-
-
-
-
-
-
(10,750)
-
(1,825)
-
(12,575)
-
-
(150,000)
(150,000)
(150,000)
(150,000)
473,071
672,420		 Gains and
losses
Movement in
funds
£
£
-
211,924
623,071
623,071
623,071
834,995
-
-
-
-
-
-
-
-
-
(10,750)
-
(1,825)
-
(12,575)
-
-
(150,000)
(150,000)
(150,000)
(150,000)
473,071
672,420		 Gains and
losses
Movement in
funds
£
£
-
211,924
623,071
623,071
623,071
834,995
-
-
-
-
-
-
-
-
-
(10,750)
-
(1,825)
-
(12,575)
-
-
(150,000)
(150,000)
(150,000)
(150,000)
473,071
672,420
834,995
-
-
-
-
(10,750)
(1,825)
(12,575)
-
(150,000)
(150,000)
672,420

continued...

Page 42

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

33. MOVEMENT IN FUNDS – 31 MARCH 2021

Unrestricted funds
General fund
General fair value reserve
Restricted funds
Contribution to heating system
Obtaining museum accreditation
Heritage Lottery Fund
Endowment funds
Permanent endowment fund
Endowment fair value reserve
TOTAL FUNDS		 At 1.4.20
Net
movement in
funds
£
£
3,487,428
441,939
6,628,767
370,000
10,116,195
811,939
136,622
(10,750)
9,733
(2,432)
1,082,955
-
1,229,310
(13,182)
1,751,783
13,509,124
-
-
26,606,412
798,757		 Transfers
between
funds
£
(21,498)
-
(21,498)
21,498
-
-
21,498
-
-
-		 At 31.3.21
£
3,907,869
6,998,767
10,906,636
147,370
7,301
1,082,955
1,237,626
1,751,783
13,509,124
27,405,169

continued...

Page 43

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

33. MOVEMENT IN FUNDS – 31 MARCH 2021 - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
General fair value reserve
Restricted funds
Heritage fund
Coronavirus job retention scheme
Cultural recovery fund for heritage
Contribution to heating system
Obtaining museum accreditation
Endowment funds
Permanent endowment fund
Endowment fair value reserve
TOTAL FUNDS		 Incoming
resources
£
711,979
-
711,979
102,400
44,290
263,600
-
-
421,407
-
-
-
1,133,386		 Resources
expended
£
(415,239)
-
(415,239)
(102,400)
(44,290)
(263,600)
(10,750)
(2,432)
(434,589)
-
-
-
(849,828)		 Gains and
losses
Movement in
funds
£
£
145,199
441,939
370,000
370,000
515,199
811,939
-
-
-
-
-
-
-
(10,750)
-
(2,432)
-
(13,182)
-
-
-
-
-
-
515,199
798,757		 Gains and
losses
Movement in
funds
£
£
145,199
441,939
370,000
370,000
515,199
811,939
-
-
-
-
-
-
-
(10,750)
-
(2,432)
-
(13,182)
-
-
-
-
-
-
515,199
798,757		 Gains and
losses
Movement in
funds
£
£
145,199
441,939
370,000
370,000
515,199
811,939
-
-
-
-
-
-
-
(10,750)
-
(2,432)
-
(13,182)
-
-
-
-
-
-
515,199
798,757
811,939
-
-
-
(10,750)
(2,432)
(13,182)
-
-
-
798,757

continued...

Page 44

THE KELMARSH TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

34. MOVEMENT IN FUNDS

RESTRICTED FUNDS

Contribution to the heating system

In the year ended 31 March 2013, £215,000 was received as a contribution towards the heating system. At 1 April 2021, the balance was £147,370. During the year £10,750 was released to the Statement of Financial Activities as depreciation. The balance at 31 March 2022 was £136,620.

Heritage Lottery Fund

During the year no additional funds were received towards the “Heritage Lottery Fund” funded project. At 31 March 2022 the balance was £1,082,955.

Museum Accreditation

Monies received in order to obtain museum accreditation. During the year £1,825 was released to the Statement of Financial Activities as depreciation At 31 March 2022 the balance of the fund was £5,476.

Renewable Heating Incentive

During the year £10,631 was received as a result of the energy generated through the renewable heating system. At 31 March 2022 the balance was £Nil, due to utilisation in the year.

Cultural Recovery Fund for Heritage

In the year £274,700 was received from the Department for Digital, Culture, Media & Sport through the Heritage Fund as a grant to support the day-to-day running costs of the charity due to the pandemic. The full amount received was utilised to cover expenditure during the year.

DESIGNATED FUNDS

Hall and Gardens

During the year, funds amounting to £175,290 of unrestricted funds were designated to specific projects relating to scheduled works and improvements to the Hall and Gardens. At 31 March 2022, the balance of the fund was £175,290.

Let Property

During the year, funds amounting to £185,850 were designated to specific projects relating to the refurbishment of let properties, including work on the EPC requirements. At 31 March 2022, the balance of the fund was £185,850.

35. PENSION COMMITMENTS

The charity has contributed to personal pension schemes in respect of certain employees. The total contributions paid in the year were £31,453 (2021: £27,364).

36. RELATED PARTY DISCLOSURES

Mr CL Greville-Heygate, Mr JD Lancaster and Mr R King are Trustees of Miss Lancaster’s 1994 Charitable Trust. At the balance sheet date the charity owes Miss Lancaster’s 1994 Charitable Trust £87,789 (2021: £86,420). There is no fixed date for repayment and amounts are repayable on demand.

The Trust has taken advantage of the exemption under Section 33 of FRS102 not to disclose transactions with group companies.

Page 45