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2022-03-31-accounts

Charity registration number 504347

Company registration number 1208214 (England and Wales)

HOWICK TRUSTEES LIMITED

(A CHARITABLE COMPANY LIMITED BY GUARANTEE) GOVERNORS' ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

HOWICK TRUSTEES LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Governors Dr David E.C. Baring
Mark G.O. Bridgeman
Sir Walter J.B. Riddell Bt
Matthew G. Darby
Victoria J. Baring
David G. Knott
Secretary Mrs J.A. Woodford (Retired 31 May 2021)
Mrs D. Spark (Retired 31 December 2021)
Mrs C.B. Coley (Appointed 1 October 2021)
Charity number 504347
Company number 1208214
Registered office Howick Estate Office
Howick
Alnwick
Northumberland
NE66 3LB
Auditor Greaves West & Ayre
17 Walkergate
Berwick-upon-Tweed
Northumberland
TD15 1DJ
Bankers Barclays Bank P.L.C.
20 Bondgate Within
Alnwick
Northumberland
NE66 1TD
Land Agents GSC Grays
5F Linnet Court
Cawledge Business Park
Alnwick
Northumberland
NE66 2GD
Independent Financial AdvisorsCharles Stanley & Co. Limited
55 Bishopsgate
London
EC2N 3AS

HOWICK TRUSTEES LIMITED

CONTENTS

Page
Chairman's Report 1 - 2
Governors' report 3 - 8
Independent auditor's report 9 - 12
Statement of financial activities 13 - 14
Balance sheet 15
Statement of cash flows 16
Notes to the financial statements 17 - 33

HOWICK TRUSTEES LIMITED

CHAIRMAN'S REPORT FOR THE YEAR ENDED 31 MARCH 2022

CHAIRMAN'S REPORT 2021 / 2022

The Covid tail and lockdowns continued to have an impact on the world and our operations but with an ever lessening extent. This has meant we have been able to adapt to a more normal working pattern. Overall the visitor numbers have continued to increase, the holiday lets have benefited from the relative difficulties of foreign travel and the let residential market has been stable. The significant disruption we have suffered is from the storms of December 2021 which created a mess in the arboretum and garden which will take time to clear up and significant damage to the let farm buildings and various residential properties. This is taking some time to get sorted.

The gardens and arboretum had a delayed opening due to the winter lockdown in 2020 which extended into March 2021 - thereafter, visitor numbers have remained strong. The number of visitors for season 2022 have remained ahead of season 2021 due to the head start (as there were local restrictions in the equivalent period at the start of 2021) but did tail off later in the summer and into autumn. This is likely to be due to increasing confidence in foreign travel and the cost of living issues resulting in cut backs in family expenditure. Despite this we will have over 40,000 visitors Season 2022 and an increased income from garden visitors with the “grey pound” increasing its share of the income stream (as the youth head off for the sunshine?).

In the gardens and arboretum, the whole team has pulled together to deal with the mess Arwen has made. The physical disruption has been unprecedented and access to certain areas had to be limited while things are made safe. The tidying up will be an ongoing issue into 2023. A number of good trees were lost unfortunately but much of the damage was done to conifer shelter belts and once cleared these will provide some revenue to pay for clear up as well as some interesting planting opportunities. The visitors have been understanding of the disruption with no negative comments and much sympathy.

The volunteers remain central to helping keep the visitor experience going and numbers remain good providing a whole range of activities (tours, gardening, visitor centre, photography to name but a few). We are as ever extremely grateful for all their assistance. Work in the arboretum continues and the Garden and Arboretum Committee is now well established, meeting twice a year. We remain closely connected with the team at Royal Botanic Gardens Edinburgh and Kew, and will plan with them when trips become a realistic possibility.

The two holiday lets remain popular, and a third property has now come on line with excellent initial feedback. We have a large historic property portfolio, the preservation of which remains one of our charitable objectives. The costs associated with the maintenance of these properties is considerable and using selected properties from the portfolio for holiday lets will increase the income available for property maintenance along with providing local job opportunities. The uninsured costs of the effects of Arwen on the property portfolio along with the compliance work on sewage systems are going to be a significant drain on our resources. We have a variety of viable options for funding this including selling some of our share reserves, borrowing or selling peripheral property that is not central to our charitable objectives – these will be considered by the Trustees at the appropriate time depending on the market conditions as and when funds are required.

This year saw the retirement of Di Spark who had been Lord Howick’s secretary along with working for the Trustees for many years and we are extremely grateful for all her efforts. Graham Waller who had previously worked with Caroline Coley has joined the team. He has a strong business background both in the holiday let world but also in events management and this will help as we develop new offerings at Howick. John Hutchison who had joined the team less than full time has moved on having been offered full time work elsewhere and we wish him well and thanks for helping with the property side of things. Graham and the team are coping with the ongoing property issues using Sullivan Associates as required for bigger projects. GSC Grays continue to support our endeavours. Full fibre broadband has come to Howick, and this has allowed better remote access and provided opportunities for future remote visitor events.

Arwen had a major effect on the coastline properties. All the let farms had significant damage with Seahouses being the worst hit. There has been some discussion with the loss adjustors as what would be covered and consideration has had to be made regarding what is appropriate to repair for modern farming needs. Contractor and material availability has been an issue and it has all taken somewhat longer to fix than we would have liked. We have been able to get the sewerage works done on all the Trustees properties apart from the main Hall (planned for winter 2022) and Peep-o-Sea which will follow thereafter.

HOWICK TRUSTEES LIMITED

CHAIRMAN'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

The New Rooms have proved popular with visitors and a number of events have been held. The team are continuing to develop the offering and exploring what we can effectively do in house and bringing outside teams as appropriate. Revenue is starting to build and it is anticipated this will continue in the coming years mindful of the good reputation we have for not being overly commercial. This activity and that of the Holidays lets will be under the auspices of Howick Hall Ltd from April 2022 – a trading subsidiary of the charity and all its profits will then be passed onto the charity.

The tea rooms continue to run under the auspices of KAM catering and details of their new lease are being organised.

Looking back at the last 18 months I am very grateful to all the team for helping to keep things running and developing what we do as a charity. This is now my third chairman’s report and each year has had its tribulations (to say the least – Brexit, Covid, Arwen etc). The cost of living and world events will be factors that play a part in how we go forward – we have no control over these but by maintaining our quality and with appropriate considered development I believe our position remains strong and robust as a charity in our ability to deliver our objectives.

Dr David E C Baring Chairman

Date: 14 November 2022

HOWICK TRUSTEES LIMITED

GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

The Governors present their annual report and financial statements of Howick Trustees Limited ("HT") for the year ended 31 March 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the HT's Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The objectives for which HT is established are:

The principle activity of HT is to maintain and develop the garden and arboretum at Howick, with its surrounding countryside; if there are spare funds available after that, they are spent on other objectives. It also intends to restore the ground floor of Howick Hall and open it to the public in conjunction with the garden.

Public Benefit

The Governors have regard to the guidance on public benefit issued by the Charity Commission and consider that HT fulfils its obligations to comply with charitable status by:

In the opinion of the Governors, HT contributes to three of the Charity Commission’s tests for public benefit:-

  1. the advancement of the arts, culture, heritage or science.

  2. the advancement of environmental protection or improvement.

  3. the advancement of education.

HT contributes to heritage by protecting the property in its ownership, which has high heritage value and making most of it open to the public.

The arboretum has scientific value since it is entirely planted with trees and shrubs grown from seed collected in the wild under duly authorised permits where relevant, fully documented, mapped and with a computerised data base, some of which is now on HT’s website.

HT’s policy is to manage the land it owns to enhance its environmental value for the natural world where possible; of particular interest at the moment is the battle to prevent the encroachment of the grey squirrel in order to preserve the native red squirrel at Howick.

HT wishes to increase its educational role, particularly for children, in all aspects of nature but recognises that it can only do so within the constraints of funds available to it. The licence to the North-East branch of the National Autistic Society to create a Sensory Garden outside of the south wall of the old walled garden has been renewed for a further 12 months.

HOWICK TRUSTEES LIMITED

GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Fixed Assets

HT owns the freehold of approximately 1,215 acres of land in Northumberland, nearly all of which was received by gift from Lord Howick in 1977 and later years. About 1,182 acres are within an Area of Outstanding Natural Beauty and includes nearly 2 miles of shoreline which is a Site of Special Scientific Interest, and part of the Northumberland Coast Special Protection Area. It has also been designated a Special Area of Conservation by the European Commission.

The main parts of the Estate are three farms tenanted at normal commercial rates with farm buildings and houses amounting to about 820 acres; about 230 acres of mainly broadleaf woodlands; 30 houses either occupied by HT’s employees and pensioners, or let at normal market rents; and the centre part, the east quadrant, and the east wing of Howick Hall, all Grade 2* listed buildings and the historic home of the Earls Grey, with its surrounding gardens and policies. Lord Howick retains the freehold of the west quadrant and west wing with its garden. The land and buildings within the Area of Outstanding Natural Beauty are treated by the Governors as functional property and are held as part of the objects of HT’s charitable objectives. Outside the AONB, on the other side of the boundary road, HT owns the freehold of about 6 acres of broadleaf woodlands.

HT also owns the freehold of a nearby commercial property given to it in 1979 by Lord Howick of about 22 acres let on normal commercial terms to Tarmac Trading Ltd and used by their underlessee to manufacture concrete pipes; the site also contains a mobile telephone mast let on normal commercial terms to EE Ltd. The Governors treat these assets as investment properties.

Summary of Policies to Achieve Objectives

Howick Hall was the home of the Earls Grey, the most distinguished of whom was the 2[nd] Earl who was Prime Minister responsible for the Great Reform Bill of 1832, and for whom Earl Grey tea was created. The centre part of Howick Hall was burnt down in 1926 and lost all of its original Georgian interiors and much of its contents. The house was rebuilt to quite different internal designs by Sir Herbert Baker in 1928, and further alterations were made in 1970.

The Governors have resolved to maintain the overall style of gardening in the natural and informal manner established by 5[th] Earl and Countess Grey in 1920, and continued by their elder daughter, Lady Mary Howick, for which the gardens are well known. Howick is best known for its collection of inter-war daffodils and other spring bulbs, its woodland garden started in 1930 where many tender shrubs succeed in thriving together with many woodland herbaceous plants, its more formal borders and rockery around the Hall, its arboretum planted solely with trees and shrubs from the temperate world grown from wild seed collected on expeditions, and its bog garden which shows all the wild origin herbaceous plants collected on expeditions for the arboretum. A new Hydrangea Garden was started in the winter of 2015 in the south west corner of the garden and has established well. They have also resolved to continue to concentrate on English hardwoods in the woods at the expense of commercial conifers to improve their amenity value and habitat for wild life.

Because of the 1926 fire, the Governors have always felt that there is greater public benefit in developing and maintaining the gardens, arboretum and surrounding land than there is in the Hall, although the preservation of its exteriors are essential as the centre piece to the garden.

The arboretum was started in 1988 and is based upon trees and shrubs grown from seed collected in the wild in their natural habitats from numerous expeditions, particularly to Sichuan in China and to Japan and more recently to North America and Russia. The Asiatic expeditions were mainly undertaken in co-operation with Quarryhill Botanical Garden in California under the leadership of the Royal Botanic Gardens at Kew while those to Japan, Russia and North America in recent years have been under the leadership of Royal Botanic Garden Edinburgh. Other countries visited include India, New Zealand, Tasmania and a number in Europe. The field data on all collections has been recorded on a Microsoft database, much of which is now accessible on HT’s website. The arboretum has been professionally mapped. There are currently about 12,500 trees and shrubs representing about 1,800 taxa, some of which are classified as endangered in their natural habitats. This represents a considerable resource in North East England, which will offer educational opportunities in the future as well as contributing to ex situ aspects of species conservation.

The garden has an outstanding collection of early 20[th] century daffodil hybrids, many of which are no longer available. HT’s policy is to conserve this collection and not to introduce more recent hybrids into the garden area.

HOWICK TRUSTEES LIMITED

GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Summary of Policies to Achieve Objectives continued

As one of the few remaining places in England where the native red squirrel is still to be seen, HT will do it’s best to prevent grey squirrels from establishing themselves and will co-operate with all interested parties to keep them at bay. It has to be said that this will not be easy and the number of grey squirrels controlled is increasing each year.

The garden and arboretum are open daily from early spring to late autumn; all details are shown on HT’s website.

Financial review

The Governors consider that HT has adequate liquidity to meet its liabilities. Its principal sources of income are investments, property rents and garden entrance fees. While investment income and property rents are relatively stable and easy to calculate, the Governors recognise that garden entrance income can be affected by economic conditions and the weather. However, since the actual garden income is known by early November each year, it is possible to adjust expenditure accordingly.

It is certain that substantial funds will have to be raised to fund the sewage treatment works across the Estate as mentioned above and the amount required is still being assessed; the Governors will review the options available to raise these funds from the sale of investments or by borrowing or sale of peripheral property.

Further details of income and expenditure are set out in the Statement of Financial Activities on pages 13 to 14 together with related notes.

Reserves

It is not HT’s normal policy to hold revenue reserves which derive from an excess of normal income over normal expenditure; the Governors intend to spend the income available to them annually on HT’s objectives. The reason for this is that the Governors consider that HT has sufficient liquidity to meet unforeseen liabilities; however, they are conscious that HT’s assets should try to generate sufficient income to meet its day to day liabilities, all of which are vulnerable to inflation. The Governors may also accumulate some revenue reserves if they know that there is major expenditure of either a capital or revenue nature in the foreseeable future or if they wish to repay capital reserves previously drawn down.

The Governors are prepared to draw down on capital reserves to further HT’s objectives if in their opinion, HT’s overall financial position justifies it.

Investments

The Articles of Association confers on HT powers to ‘invest funds of the foundation not immediately required for its purposes in or upon such investments, securities or property as it may think fit.’

The Governors have established a policy to invest for the long term for capital growth on a medium risk basis.

All investments have been acquired in accordance with the powers conferred by the Articles of Association and conform to the policy set by the Governors. The investment portfolio is managed to maintain a balance between capital growth and income, with the risk spread widely and this is achieved by concentrating on Common Investment Funds, Fixed Interest Unit Trusts and one International Investment Trust purchased in consultation with HT’s financial advisors, Charles Stanley & Co. Limited; since these are all mixed funds with a wide range of underlying holdings, the Governors consider that the question of an ethical policy for investments does not arise.

The Governors have delegated the overseeing of the portfolio to an Investment Committee consisting of Dr David E C Baring, Mr Mark Bridgeman and Sir Walter Riddell, all of whom have substantial financial experience, under a written policy.

The Governors collectively review the investment performance of each fund formally against the relevant indices annually and the office monitors performance informally throughout the year. The value of HT’s portfolio increased from £2,587,310 at 31 March 2021 to £2,667,567 at 31 March 2022.

HOWICK TRUSTEES LIMITED

GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Risk assessment

The Governors have developed a number of policies on risk management which are reviewed annually.

They consider the major risks facing HT are Public Liability and Employers Liability, Health and Safety, and Financial Management, and the following steps have been taken to mitigate those risks:

Financial Risk Management

The Governors have considered the financial risks HT faces. They consider liquidity to be the key risk. This is monitored through the regular review of a range of financial information, including annual budgets of income and expenditure.

Plans for future periods

HT’s future plans have been materially affected by the events (political and pandemic related) of the last 3 years. The Governors consider that a substantial part of HT’s income may be adversely affected due to the disruption. The visitor business and holiday let were affected by lockdowns. The stock portfolio initially saw a substantial reduction in valuation which has now recovered. There remains ongoing uncertainty and as such future planning will have to be contingent on these variables. The internal work on the ground floor is now complete, however the facilities created are now open for visitor use however some development is required to expand the opportunities for income generation to recoup the expenditure on the redevelopment. Following recent legislation on sewage treatment, the Governors are reviewing all current systems on HT’s estate and foresee that substantial expenditure will be required, mainly to separate the foul material from the rainwater. A programme of works is being undertaken as all the necessary consents are obtained.

For the time being, therefore, the Governors will continue to manage the garden and arboretum as at present.

Share Capital

HT is a company limited by guarantee, and therefore does not have share capital. The guarantee is provided by the Governors of HT and in the event of winding up the Governors have each undertaken to contribute to payment of liabilities such amount as may be required not exceeding a total of £1.

Structure, governance and management

HT is governed by its Articles of Association, which were reviewed in 2015 and subsequently altered by written resolution on 23[rd] October 2015. This review takes place every five years, the next being due in 2025.

The Governors are responsible for setting the strategy for HT and establishing and monitoring the methods by which the aims of that strategy are achieved. The Governors are also responsible for all financial matters, including establishing and monitoring internal financial controls, an annual budget including capital transactions, managing HT's investments, health and safety procedures and risk management. All day to day management is delegated by the Governors to Dr David E C Baring under written terms of reference which are reviewed annually. HT works closely with a neighbouring farm owned by Dr David E C Baring, resulting in some shared services. These are disclosed in full in note 10.

HT does not employ a Director or Financial Director; its employees are paid according to national standards in horticulture, woods and estate work.

HOWICK TRUSTEES LIMITED

GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

The Governors, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Dr David E.C. Baring Charles M. Erskine Mark G.O. Bridgeman Sir Walter J.B. Riddell Bt Matthew G. Darby Victoria J. Baring David G. Knott

(Resigned 13 September 2021)

Appointment of Governors

The Governors fall within the meaning of Trustees as defined in the Charities Act and within the meaning of Directors as defined in the Companies Act. They are appointed by the board with the consent of the founder, Lord Howick who passed these powers onto Dr David E C Baring. There is no fixed term of appointment and Governors retire and are appointed according to the requirements of HT.

New Governors are given a copy of the Articles of Association, the latest report and accounts, and all of HT’s documents covering policies and governance. Subject to their experience and expertise, they are also given documents issued by the Charity Commission explaining the duties of trustees of charities and offered training in any area of their duties which they think they would like to strengthen.

The present Governors have considerable knowledge and expertise in finance, horticultural matters and the management of country estates.

Statement of Governors' responsibilities

The Governors, who are also the directors of Howick Trustees Limited for the purpose of company law, are responsible for preparing the Governors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the HT and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Governors are required to:

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

Auditor

In accordance with the company's articles, a resolution proposing that Greaves West & Ayre be reappointed as auditor of the company will be put at a General Meeting.

HOWICK TRUSTEES LIMITED

GOVERNORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Disclosure of information to auditor

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

The Governors' report was approved by the Board of Governors.

Dr David E.C. Baring

Governor

14 November 2022

HOWICK TRUSTEES LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS OF HOWICK TRUSTEES LIMITED

Opinion

We have audited the financial statements of Howick Trustees Limited (‘HT’) for the year ended 31 March 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the HT 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 the provisions available for small entities, in the circumstances set out in note 27 to the financial statements, 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 Governors' 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 HT’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 Governors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Governors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to 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.

HOWICK TRUSTEES LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE GOVERNORS OF HOWICK TRUSTEES LIMITED

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the HT and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the Governors' report.

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

Responsibilities of Governors

As explained more fully in the statement of Governors' responsibilities, the Governors, who are also the directors of the HT for the purpose 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 Governors 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 Governors are responsible for assessing the HT’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 Governors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

HOWICK TRUSTEES LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE GOVERNORS OF HOWICK TRUSTEES LIMITED

The Extent to which the Audit was considered capable of Detecting Irregularities, including Fraud

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

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

To address the risk of fraud through management bias and override of controls, including any fraud associated with revenue recognition, we:

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

HOWICK TRUSTEES LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE GOVERNORS OF HOWICK TRUSTEES LIMITED

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Governors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the 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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 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.

Stuart Allister CA (Senior Statutory Auditor) for and on behalf of Greaves West & Ayre

30 November 2022

Chartered Accountants Statutory Auditor

17 Walkergate Berwick-upon-Tweed Northumberland TD15 1DJ

HOWICK TRUSTEES LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022

Current financial year
Unrestricted Unrestricted
Restricted
funds
funds
funds
Revenue
Capital
2022
2022
2022
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
66,043
-
139
Charitable activities
4
272,800
-
-
Other trading activities
5
392,678
-
-
Investments
6
65,201
-
-
Other income
7
18,515
3,582
-
Total income
815,237
3,582
139
Expenditure on:
Charitable activities
8
856,109
73,362
139
Net gains/(losses) on investments
12
-
130,313
-
Net (outgoing)/incoming resources before
transfers
(40,872)
60,533
-
Gross transfers between funds
32,936
(32,936)
-
Net movement in funds
(7,936)
27,597
-
Fund balances at 1 April 2021
(15,494)
4,227,860
-
Fund balances at 31 March 2022
(23,430)
4,255,457
-		 Total
2022
£
66,182
272,800
392,678
65,201
22,097
818,958
929,610
130,313
19,661
-
19,661
4,212,366
4,232,027		 Total
2021
£
121,197
154,854
354,273
63,697
3,369
697,390
740,896
568,198
524,692
-
524,692
3,687,674
4,212,366

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

HOWICK TRUSTEES LIMITED

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

Prior financial year
Unrestricted Unrestricted
Restricted
funds
funds
funds
Revenue
Capital
2021
2021
2021
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
75,810
-
45,387
Charitable activities
4
154,854
-
-
Other trading activities
5
354,273
-
-
Investments
6
63,697
-
-
Other income
7
2,513
856
-
Total income
651,147
856
45,387
Expenditure on:
Charitable activities
8
617,728
77,781
45,387
Net gains/(losses) on investments
12
-
568,198
-
Net (outgoing)/incoming resources before transfers
33,419
491,273
-
Gross transfers between funds
(58,379)
58,379
-
Net movement in funds
(24,960)
549,652
-
Fund balances at 1 April 2020
9,466
3,678,208
-
Fund balances at 31 March 2021
(15,494)
4,227,860
-		 Total
2021
£
121,197
154,854
354,273
63,697
3,369
697,390
740,896
568,198
524,692
-
524,692
3,687,674
4,212,366

HOWICK TRUSTEES LIMITED

BALANCE SHEET

AS AT 31 MARCH 2022

Notes
Fixed assets
Tangible assets
14
Heritage assets
15
Investment properties
16
Investments
17
Current assets
Debtors
20
Cash at bank and in hand
Creditors: amounts falling due within
one year
21
Net current liabilities
Total assets less current liabilities
Income funds
Unrestricted funds - Capital
Unrestricted funds - Revenue		 2022
£
£
1,100,690
212,199
275,000
2,667,568
4,255,457
113,924
54,072
167,996
(191,426)
(23,430)
4,232,027
4,255,457
(23,430)
4,232,027		 2021
£
£
1,153,719
211,831
275,000
2,587,310
4,227,860
75,984
35,452
111,436
(126,930)
(15,494)
4,212,366
4,227,860
(15,494)
4,212,366

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

The financial statements were approved by the Governors on 14 November 2022 and were signed on their behalf by:

Dr David E.C. Baring Mark G.O. Bridgeman Governor Governor Company registration number 1208214

HOWICK TRUSTEES LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2022

Notes
Cash flows from operating activities
Cash absorbed by operations
25
Investing activities
Purchase of tangible fixed assets
Proceeds from disposal of tangible fixed
assets
Purchase of heritage assets
Purchase of subsidiaries
Proceeds from disposal of other investments
Investment income received
Net cash generated from investing
activities
Financing activities
Proceeds from borrowings
Net cash generated from/(used in)
financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Relating to:
Cash at bank and in hand		 2022
£
£
(129,516)
(20,751)
4,000
(368)
(1)
50,055
65,201
98,136
50,000
50,000
18,620
35,452
54,072
54,072		 2021
£
(61,128)
2,750
-
-
-
63,697
-		 £
(8,132)
5,319
-
(2,813)
38,265
35,452
35,452

HOWICK TRUSTEES LIMITED

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

1 Accounting policies

Charity information

Howick Trustees Limited ("HT") is a private company limited by guarantee, incorporated in England and Wales and is registered with the Charity Commission under number 504347. The registered office is Howick Estate Office, Alnwick, Northumberland, NE66 3LB.

1.1 Accounting convention

The financial statements have been prepared in accordance with HT's Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 HT is a Public Benefit Entity as defined by FRS 102.

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

The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Governors have a reasonable expectation that HT has adequate resources to continue in operational existence for the foreseeable future. Thus the Governors continue to adopt the going concern basis of accounting in preparing the financial statements. HT has substantial net assets and continually manages cash reserves. Despite the uncertain economic outlook and the financial uncertainty around the willingness of the public to purchase admission tickets, visitor numbers continue to be strong and the Governors consider the going concern basis is appropriate.

1.3 Charitable funds

The revenue fund represents the income and expenditure incurred in the day to day running of HT.

The capital fund represents the value of the estate and investments held by HT which are separately identified in the accounts. Both of these funds are considered by the Governors to be unrestricted.

The designated fund represents unrestricted funds that have been set aside by the Governors for particular purposes. The purposes and uses of the designated funds are set out in the notes to the accounts.

The restricted fund represents funds received which are to be used in accordance with specific restrictions imposed by the donors. The purpose and uses of the restricted funds are set out in the notes to the accounts.

1.4 Income

Income is recognised and included in the accounts when all of the following criteria are met:

Cash donations are recognised on receipt. Other donations are recognised once HT has been notified of the donation, unless performance conditions require deferral of the amount.

HOWICK TRUSTEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

All grants are used for charitable expenditure and capital items and are recognised in full in the year in which they are receivable, or when the conditions for receipt have been met.

Investment income comprises dividends receivable during the year on listed investments held within the investment portfolio as well as interest receivable.

1.5 Expenditure

Expenditure is recognised when there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure includes any VAT which cannot be recovered and it reported as part of the expenditure to which it relates. Where costs are attributable to more than one activity, they are allocated on a reasonable and consistent basis, based on usage. Governance costs are those incurred in the governance of the charity and are primarily associated with constitutional and statutory requirements.

1.6 Tangible fixed assets

Tangible fixed assets are capitalised and included at cost where the purchase price generally exceeds £500.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land Nil Buildings 2% of original cost Car Park 4% of original cost Biomass 4% of original cost Visitor Centre and Artwork 3.33% of original cost and 10% of original cost Hall 20% straight line Plant and machinery 15% reducing balance Tractors 25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

All assets are reviewed for impairment and written down to their recoverable amount, where necessary.

The land and buildings let under tenancy are treated by the governors as functional property and are held as part of the objects of HT’s charitable objectives and therefore, in line with FRS102, these land and buildings are held at cost less any depreciation and impairment rather than market value.

1.7 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in statement of financial activities. Depreciation is not charged on investment properties.

HOWICK TRUSTEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

1.8 Heritage assets

Heritage assets consist of a number of paintings, prints, sculptures and other pieces which the Governors have deemed to be of historical and artistic importance that are held and maintained principally for their contribution to knowledge and culture.

Purchased heritage assets are valued at cost. Donated heritage assets are valued by the Governors based on their knowledge and experience and treated as deemed cost.

The heritage assets held are considered to have indefinite lives and are therefore not depreciated; as such their value is reviewed on an annual basis at the balance sheet date for impairment.

Expenditure which, in the Governors view, is required to preserve or clearly prevent further deterioration of individual collection items is recognised in the income and expenditure account when it is incurred.

1.9 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the HT. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10 Impairment of fixed assets

At each reporting end date, HT reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.11 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12 Financial instruments

HT has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in HT's balance sheet when HT becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

HOWICK TRUSTEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the HT transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when HT’s contractual obligations expire or are discharged or cancelled.

1.13 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when HT is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

HOWICK TRUSTEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

2 Critical accounting estimates and judgements

In the application of HT’s accounting policies, the Governors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Investment Property Valuation

Investment property is measured at fair value at each reporting date with changes in fair value recognised in Statement of Financial Activities. The Board of Governors determine the fair value of investment property using the assistance of an independent expert, Wardell Armstrong. Wardell Armstrong is an independent consultancy firm of registered valuers and property experts. Their valuation is prepared in accordance with RICS Global Valuations Standards. The valuation methodology considers the property lease terms and conditions, cash inflow stream and discount rate in order to derive the Fair Value of the subject property. The governors have considered the market valuations of the property at 30 March 2022 and have deemed there to be no material changes to the property's fair value of £275,000 at the year end.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
Revenue
2022
2022
£
£
Donations and gifts
37,610
-
Grants
28,433
139
66,043
139
Grants receivable for core activities
COVID-19 Business
support
-
-
COVID-19 Local
restriction support
-
-
HMRC Job retention
-
-
Other
28,433
139
28,433
139		 Total Unrestricted
Restricted
funds
funds
Revenue
2022
2021
2021
£
£
£
37,610
23,804
-
28,572
52,006
45,387
66,182
75,810
45,387
-
30,000
-
-
22,006
-
-
-
45,387
28,572
-
-
28,572
52,006
45,387		 Total
2021
£
23,804
97,393
121,197
30,000
22,006
45,387
-
97,393

HOWICK TRUSTEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

4 Charitable activities

Garden and Woods Total Garden and Woods Total
arboretum arboretum 2021
2022 2022 2022 2021 2021
£ £ £ £ £ £
Income within charitable
activities 272,116 684 272,800 154,682 172 154,854

5 Other trading activities

**Unrestricted ** Unrestricted
funds funds
Revenue Revenue
2022 2021
£ £
Rents from houses and land 360,690 308,739
Biomass income 31,988 45,534
Other trading activities 392,678 354,273

6 Investments

**Unrestricted ** Unrestricted
funds funds
Revenue Revenue
2022 2021
£ £
Income from listed investments 65,198 63,690
Interest receivable 3 7
65,201 63,697

7 Other income

Unrestricted Unrestricted
funds
funds
Revenue
Capital
2022
2022
£
£
Net gain on disposal of
tangible fixed assets
-
3,582
Other income
18,515
-
18,515
3,582		 Total Unrestricted Unrestricted
funds
funds
Revenue
Capital
2022
2021
2021
£
£
£
3,582
-
856
18,515
2,513
-
22,097
2,513
856		 Total
2021
£
856
2,513
3,369

HOWICK TRUSTEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

8 Charitable activities

Charitable activities
Direct
Charitable
Expenditure
Property
Repairs and
Renewals
Overhead
Expenses
2022
2022
2022
£
£
£
Staff costs
311,678
-
-
Depreciation and impairment
73,362
-
-
Woodlands and sawmill
30,150
-
-
Garden and arboretum
79,603
-
-
Rates and insurances
-
-
31,609
Property repairs and renewals: Howick Hall
-
17,036
-
Property repairs and renewals: Bathing House and Old
School House
-
28,120
-
Property repairs and renewals: Others
-
156,567
-
Vehicles and equipment expenses
7,208
-
-
Sundry and office expenses
-
-
48,168
Non-recoverable VAT
-
-
35,837
502,001
201,723
115,614
Share of governance costs (see note 9)
-
-
110,272
502,001
201,723
225,886
Analysis by fund
Unrestricted funds - Revenue
428,500
201,723
225,886
Unrestricted funds - Capital
73,362
-
-
Restricted funds
139
-
-
502,001
201,723
225,886		 Total
2022
Direct
Charitable
Expenditure
Property
Repairs and
Renewals
Overhead
Expenses
2021
2021
2021
£
£
£
£
311,678
287,464
-
-
73,362
77,781
-
-
30,150
23,650
-
-
79,603
59,495
-
-
31,609
-
-
36,491
17,036
-
14,556
-
28,120
-
3,699
-
156,567
-
88,155
-
7,208
4,559
-
-
48,168
-
-
27,635
35,837
-
-
30,749
819,338
452,949
106,410
94,875
110,272
-
-
86,662
929,610
452,949
106,410
181,537
856,109
329,781
106,410
181,537
73,362
77,781
-
-
139
45,387
-
-
929,610
452,949
106,410
181,537		 Total
2021
£
287,464
77,781
23,650
59,495
36,491
14,556
3,699
88,155
4,559
27,635
30,749
654,234
86,662
740,896
617,728
77,781
45,387
740,896

HOWICK TRUSTEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

9
Governance costs
Audit and accountancy
Professional fees
Analysed between
Charitable activities		 2022
£
14,000
96,272
110,272
110,272		 2021
£
12,650
74,012
86,662
86,662

Governance costs includes payments to the auditors of £9,500 (2021: £8,500) for audit fees.

HOWICK TRUSTEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

10 Transactions with Governors

No Governors (or any persons connected with them) received or were entitled to receive any remuneration or benefits for their services to the Charitable Company during the year (2021: None).

HT rents 3 houses (2021: 3) from Lord Howick and 1 from Hon. David E.C. Baring (2021: 1) for employees and pensioners. Rent paid totals £20,196 (2021: £20,196) and £4,266 (2021: £4,266) respectively, which is materially lower than the rents advised as reasonable by HT's estate agents.

During the year, Hon. David E.C. Baring's employees performed work at cost on behalf of HT of £Nil (2021:

£223).

Lord Howick contributed £Nil (2021: £Nil) towards the cost of maintaining the party yew hedge between HT's garden and the West Wing garden. During the year, Lord Howick made a donation payment to HT in order to cover the purchase cost of Heritage Asset purchased by HT of £368 (2021: £Nil). In addition to this, Lord Howick made an ad-hoc purchase from HT of £343 (2021: £Nil) for a number of bags of logs from fallen trees at a fair open market value.

HT employs two office staff and two woodmen part-time; they also work part-time for Howick Estate on separate contracts.

As at 31 March 2022, £7,579 (2021: £2,414) remained due to HT from transactions with the Governors.

During the year, HT obtained an unsecured loan of £50,000 from Howick Farm Estate which is repayable on demand. The full amount of the loan £50,000 (2021: £Nil) was due to Howick Farm Estate by HT as at 31 March 2022.

Lord Howick is deemed to be a related party, due to him being a former Governor (until his retirement in 2019) and father of current Chair of Governors Hon. David E.C. Baring.

Office Expenses

HT shares the estate office with Howick Estate and Howick Farm Estate and therefore shares the associated costs. During the year 31 March 2022, Howick Estate paid £3,914 (2021: £3,028) in office expenses, Howick Farm and Estate paid £3,9,14 (2021: £3,160), a division to HT's advantage.

Electricity Expenses

In order to maximise better electricity tariffs with its suppliers, HT moved to the direct debit method of payment in order to settle its outstanding liabilities. In doing so, Lord Howick reimbursed HT £5,288 (2021: £6,785) for his related electricity expense for the year ended 31 March 2022. On the other hand, Lord Howick received his share from a compensation payment made to HT by the electricity provider following Storm Arwen of £342 (2021: £Nil) during the year.

Biomass Expenses

Following completion and commissioning of the Biomass Boiler System, HT is able to recharge Lord Howick his proportion of metered KW heat usage. During the year, Lord Howick reimbursed HT £5,983 (2021: £6,789) for biomass energy.

Governors Expenses

During the year, no expenses were reimbursed to Governors (2021: £Nil).

HOWICK TRUSTEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

11 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2022
2021
Number
Number
Restated
23
22
2022
2021
£
£
276,562
253,612
12,840
10,737
22,276
23,115
311,678
287,464		 2022
2021
Number
Number
Restated
23
22
2022
2021
£
£
276,562
253,612
12,840
10,737
22,276
23,115
311,678
287,464
2021
£
253,612
10,737
23,115
287,464

Remuneration of Key Management Personnel

Key management has been determined to be the Governors and the 5 members (2021: 3) of the senior management team. Governors receive no remuneration or benefits. The total remuneration of the senior management team excluding employers National Insurance costs £71,162 (2021: £68,610).

There were no employees whose annual remuneration was more than £60,000 (2021: None).

12 Net gains/(losses) on investments

**Unrestricted ** Unrestricted
funds funds
Capital Capital
2022 2021
£ £
Revaluation of investments 128,858 568,198
Gain/(loss) on sale of investments 1,455 -
130,313 568,198

13 Taxation

HT, being a registered charity, is not liable to UK income tax, coporation tax or capital gains tax as long as the income it receives is applied to charitable purposes. There are therefore no tax charges in the accounts.

HOWICK TRUSTEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

14
Tangible fixed assets
Cost
At 1 April 2021
Additions
Disposals
At 31 March 2022
Depreciation and impairment
At 1 April 2021
Depreciation charged in the year
Eliminated in respect of disposals
At 31 March 2022
Carrying amount
At 31 March 2022
At 31 March 2021		 Land
£
929,029
-
-
929,029
283,533
16,907
-
300,440
628,589
645,496		 Biomass
£
804,494
751
-
805,245
329,152
45,394
-
374,546
430,699
475,342		 Plant and
machinery
£
170,396
20,000
(10,800)
179,596
137,515
11,061
(10,382)
138,194
41,402
32,881		 Total
£
1,903,919
20,751
(10,800)
1,913,870
750,200
73,362
(10,382)
813,180
1,100,690
1,153,719

The Governors consider that current open market value of freehold land and buildings to be £12,200,000, all of which is treated as functional property.

HOWICK TRUSTEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

15 Heritage assets

At 1 April 2021
Purchases
At 31 March 2022		 Total
£
211,831
368
212,199

HT has been left a legacy of historical papers known as the Grey Archive, currently on permanent loan to the University of Durham. The Governors have brought these into the accounts at a nominal valuation of £1 since no purpose would be served by incurring the expense of getting a professional valuation as the papers are unique and irreplaceable and are held as part of HT's objects.

The Governors have not insured the Grey Archive since no purpose would be served by incurring the cost of the premium for these papers. the Governors have been informed that the Grey Archive is partly covered by Durham University's insurance policy.

Summary Analysis of Heritage Asset Transactions
2022
£
Purchases and additions
368
Donations
-
Total additions
368
Charge for impairment
-
Total charge for impairment
-
Disposals
-
Total disposals
-
Proceeds from disposals
-
Total sales proceeds
-
16
Investment property
Fair value
At 1 April 2021 and 31 March 2022		 2021
£
-
-
-
-
-
-
-
-
-		 2020
£
-
-
-
-
-
-
-
-
-		 2019
£
3,600
-
3,600
-
-
-
-
-
-		 2018
£
2,780
-
2,780
-
-
-
-
-
-
2022
£
275,000

HOWICK TRUSTEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

16 Investment property

(Continued)

The investment property relates to Howick Pipeworks. This commercial property was given to HT in 1979 by Lord Howick and was independently valued on an open market basis by Wardell Armstrong who have considerable experience in this area, on 20 August 2020. The area of about 22 acres is let on normal commercial rates to Tarmac; the site also contains a mobile telephone mast let on normal commercial terms to EE Ltd with T-Mobile and Vodafone as subtenants.

The governors have considered the market valuations of the property at 30 March 2022 and have deemed there to be no material changes to the property's fair value at the year end.

All real estate is held in the United Kingdom.

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:

2022 2021
£ £
Cost 29,600 29,600

17 Fixed asset investments

Listed
investments
Other
investments
£
Cost or valuation
At 1 April 2021
2,587,310
-
Additions
-
1
Valuation changes
128,857
-
Disposals
(48,600)
-
At 31 March 2022
2,667,567
1
Carrying amount
At 31 March 2022
2,667,567
1
At 31 March 2021
2,587,310
-
2022
Other investments comprise:
Notes
£
Investments in subsidiaries
18
1		 Total
£
2,587,310
1
128,857
(48,600)
2,667,568
2,667,568
2,587,310
2021
£
-

HOWICK TRUSTEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Fixed asset investments
Investments at fair value comprise:
Blackrock Fund Managers Ltd BLK Charities UK Equity A
RIT Capital Partners Ordinary £1
M&G Charifund Income Units
Legg Mason Investment Funds - Global Multi Strategy Bond
Schroder Oriental Income Fund Ordinary £0.01
Aviva Investors UK SCVS Ltd Strategic Bond		 (Continued)
2022
2021
£
£
534,040
496,146
1,417,163
1,382,400
364,137
339,404
129,079
138,267
140,242
144,641
82,906
86,452
2,667,567
2,587,310		 (Continued)
2022
2021
£
£
534,040
496,146
1,417,163
1,382,400
364,137
339,404
129,079
138,267
140,242
144,641
82,906
86,452
2,667,567
2,587,310
2,587,310

17 Fixed asset investments

Fixed asset investments revalued

The quoted investments, which are listed above, are held through authorised Common Investment Funds, Unit Trusts and Investment Trusts.

All quoted investments are held in the United Kingdom. They are included above at market value. The historic cost of the investment portfolio is £1,180,924 (2021 £1,199,896).

18 Subsidiaries

Name of undertaking Registered Nature of business Class of % Held
office shares held Direct Indirect
Howick Hall Ltd Howick Estate Dormant Ordinary 100.00
Office, Howick,
Alnwick,
Northumberland,
United Kingdom,
NE66 3LB

The investment in subsidiaries are all stated at cost.

19
Financial instruments
Carrying amount of financial assets
Debt instruments measured at amortised cost
Instruments measured at fair value through profit or loss
Carrying amount of financial liabilities
Measured at amortised cost		 2022
£
98,051
2,667,567
191,426		 2021
£
64,586
2,587,310
126,930

HOWICK TRUSTEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

20
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
21
Creditors: amounts falling due within one year
Loans and overdrafts
Payments received on account
Trade creditors
Other creditors
Accruals and deferred income
22
Loans and overdrafts
Loans from related parties
Payable within one year		 2022
£
61,797
46,395
5,732
113,924
2022
£
50,000
54,590
51,171
559
35,106
191,426
2022
£
50,000
50,000		 2021
£
56,498
14,036
5,450
75,984
2021
£
-
76,467
21,965
475
28,023
126,930
2021
£
-
-

Loan from related parties is an interest free unsecured loan which is repayable in demand as noted in Note 10.

HOWICK TRUSTEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

23 Analysis of net assets between funds

Unrestricted
funds -
Revenue
Unrestricted
funds -
Capital
Restricted
funds
2022
2022
2022
£
£
£
Fund balances at 31 March 2022 are represented
by:
Tangible assets
-
1,100,690
-
Heritage assets
-
212,199
-
Investment properties
-
275,000
-
Investments
-
2,667,568
-
Current assets/(liabilities)
(23,430)
-
-
(23,430)
4,255,457
-		 Total Unrestricted
funds -
Revenue
Unrestricted
funds -
Capital
Restricted
funds
2022
2021
2021
2021
£
£
£
£
1,100,690
-
1,153,719
-
212,199
-
211,831
-
275,000
-
275,000
-
2,667,568
-
2,587,310
-
(23,430)
(15,494)
-
-
4,232,027
(15,494)
4,227,860
-		 Total
2021
£
1,153,719
211,831
275,000
2,587,310
(15,494)
4,212,366

Unrestricted Revenue Fund

The Unrestricted Revenue Fund represents the free funds which are available for use at the discretion of the Governors in furtherance of the general objectives of HT.

Unrestricted Capital Fund

The Unrestricted Capital Fund represents the value of the estate and investments held by HT which are separately identified in the accounts.

Restricted Fund

The restricted fund is used by the Governors to classify correctly and record those funds subject to specific restricted conditions imposed by the donor.

Transfers between Funds

Transfers between funds are discussed and approved by the Governors. A full description of the purposes of each fund held is given above.

A transfer of £32,936 from the Unrestricted Capital Fund to the Unrestricted Revenue Fund has been carried out in order to realign the Capital Fund with the actual present value of the fixed assets that it represents as shown in the current year Statement of Financial Activities (2021 £58,379 transferred from the Unrestricted Revenue Fund to Unrestricted Capital Fund).

HOWICK TRUSTEES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

24 Events after the reporting date

The trading activity of holiday lets was transferred to the subsidiary company, Howick Hall Ltd in September 2022. The total income relating to holiday lets in 2022 was £102,243 and is included within rental income. However, as a trading subsidiary, Howick Hall Ltd is expected to return all future profits generated from the trading activities back to Howick Trustees Ltd by means of a donation.

As a consequence of the political and economic uncertainty in the UK and the wider world, the investment portfolio has declined in value since the balance sheet date. Whilst this is not unexpected in the current turmoil, it may be a factor that affects the ongoing financial decisions of the governors.

25 Cash generated from operations 2022 2021
£ £
Surplus for the year 19,661 524,692
Adjustments for:
Investment income recognised in statement of financial activities (65,201) (63,697)
Gain on disposal of tangible fixed assets (3,582) (856)
Gain on disposal of investments (1,455) -
Fair value gains and losses on investments (128,858) (568,198)
Depreciation and impairment of tangible fixed assets 73,362 77,781
Movements in working capital:
(Increase) in debtors (37,940) (13,267)
Increase in creditors 14,497 35,413
Cash absorbed by operations (129,516) (8,132)
26 Analysis of changes in net funds
At 1 April 2021 Cash flowsAt 31 March 2022
£ £ £
Cash at bank and in hand 35,452 18,620 54,072
Loans falling due within one year - (50,000) (50,000)
35,452 (31,380) 4,072

27 Non-audit services provided by auditor

In common with many businesses of our size and nature we use our auditor to assist with the preparation of the charitable company financial statements.

In common with many other businesses of our size and nature we use our auditor to obtain payroll services and ad-hoc business advice.

HOWICK TRUSTEES LIMITED

DETAILED INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2022

Donations and legacies
Donations
Grants
Grants (Restricted)
Activities for generating funds
Rents from houses and land
Biomass income
Investment income
Investment income
Interest
Incoming resources from charitable activities
Garden and arboretum
Woods
Other incoming resources
Other income
Gain on disposal of tangible fixed assets
Total incoming resources
Balance Carried Forward		 £
37,610
28,433
139
360,690
31,988
65,198
3
272,116
684
18,515
3,582		 2022
£
66,182
392,678
65,201
272,800
22,097
818,958
818,958		 £
23,804
52,006
45,387
308,739
45,534
63,690
7
154,682
172
2,513
856		 2021
£
121,197
354,273
63,697
154,854
3,369
697,390
697,390

HOWICK TRUSTEES LIMITED

DETAILED INCOME AND EXPENDITURE ACCOUNT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Balance Brought Forward
Resources expended
Charitable activities
Direct Charitable Expenditure
Wages and salaries
Social security costs
Staff pension costs
Woodlands and sawmill
Garden and arboretum
Vehicles and equipment expenses
Depreciation
Wages and salaries (Restricted)
Property Repairs and Renewals
Howick Hall
Bathing House and Old School House
Other
Overhead Expenses
Rates and insurances
Sundry and office expenses
Non-recoverable VAT
Governance costs
Audit and accountancy
Professional fees
Net movement on investments
Revaluation of investments
Gain or loss on sale of investments
Surplus for the Year		 2022
£
£
818,958
276,423
12,840
22,276
30,150
79,603
7,208
73,362
139
(502,001)
17,036
28,120
156,567
(201,723)
31,609
48,168
35,837
(115,614)
14,000
96,272
(110,272)
128,858
1,455
130,313
19,661		 2021
£
£
697,390
208,225
10,737
23,115
23,650
59,495
4,559
77,781
45,387
(452,949)
14,556
3,699
88,155
(106,410)
36,491
27,635
30,749
(94,875)
12,650
74,012
(86,662)
568,198
-
568,198
524,692