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2021-03-31-accounts

Registered number: 01356661 Charity numbers: 507478 & SC039364

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 8
Independent Auditors' Report on the Financial Statements 9 - 13
Statement of Financial Activities 14 - 15
Balance Sheet 16
Statement of Cash Flows 17
Notes to the Financial Statements 18 - 38

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees Lady Willoughby de Eresby
Mr F J F M Dymoke
Mr R I Calvocoressi
Sir Mark Jones
Mr H Matheson
Lt Col. S St. M Miller
Mrs Sarah Troughton (appointed 11 March 2021)
Company registered
number
01356661
Charity registered
numbers
507478 and SC039364
Registered office
Grimsthorpe Estate Office
Grimsthorpe
Bourne
PE10 0LY
Company secretary
Mr F J F M Dymoke
Managing Director
Lt. Col S St. M Miller
Independent auditor
Streets Audit LLP
Chartered Accountants and Statutory Auditor
Lucy Tower Street
Lincoln
Lincolnshire
LN1 1XW
Bankers
Bank of Scotland
1 Galvelmore Street
Crieff
Perthshire
PH7 4DN
Solicitors
Taylor Vinters
Merlin Place
Milton Road
Cambridge
Cambridgeshire
CB4 0DP
Investment Managers
Ruffer LLP
31 Charlotte Square
Edinburgh, EH2 4ET
Investment Managers
CCLA Investment Management Limited
85 Queen Victoria Street
London, EC4V 4ET

Page 1

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report together with the audited financial statements of the Charity for the 1 April 2020 to 31 March 2021. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Objectives and activities

a. Policies and objectives

The objectives of the charity are:

The Grimsthorpe Estate, South Lincolnshire, is centred on a Grade 1 listed mansion of great architectural and historical importance and its important 17th century designed parkland which includes two hundred acres of Sites of Special Scientific Interest of outstanding entomological and botanical interest, and is listed as Grade 1 within the National Register of Parks and Gardens. The Estate includes over two hundred dwelling houses and other buildings (many of which are listed) grouped in three villages, with over twelve thousand acres of farmland and woodland. The Directors of the Trust give equal weight, on the one hand to offering the public the opportunity to visit the house with its historic collection and the surrounding parkland and, on the other, to preserving Grimsthorpe as a traditional Lincolnshire estate.

At Drummond Castle, Perthshire, the aspect of the greatest public interest is the nineteenth century formal parterre, which forms part of a ten acre terraced garden, dating back to the 17th century. The gardens are of international importance and are listed Category A. The Keep and mansion are of historic importance in their own right and form part of the architectural structure of the garden. The Drummond collection is now all stored or housed in the mansion. The part in store is available for research purposes while that which is housed is available to specialist groups by arrangement. Both the formal and kitchen gardens are open to visitors daily during the summer.

Income from the property, the Investment Fund and other investments is used to preserve and improve Grimsthorpe and Drummond Castles, their contents and surroundings for the public benefit.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

b. Strategies for achieving objectives

The charity’s main objectives for the year once again centred on the maintenance and conservation of the two Castles, their collections and surroundings. Work identified in the Park Management Plan to further enhance and conserve both natural and built features in Grimsthorpe Park was planned and executed.

At Drummond, routine conservation and maintenance work to the Castle has continued. A significant proportion of the West facing slate roof was repaired, along with the associated lead work to the crows steps. The Queen’s dressing room, maids quarters and the Charles X bedroom was reinstated following the completion of the dry rot remedial work.

Dry rot monitoring equipment has been installed to provide on–going monitoring for water ingress and further dry rot outbreaks.

Page 2

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Objectives and activities (continued)

c. Staff

A Castle Manger was appointed for Drummond Castle and Visitor/Marketing Lead appointments where filled at Grimsthorpe in preparation for the 2021 Public Access open season.

Health and safety issues at both Estates are kept under review by outside consultants and through a programme of regular meetings with staff. The minutes of these meetings are reviewed by the Trustees. By this means the Trust aims to comply with current legislation throughout the whole range of activities on both estates and in accordance with the Trust’s policy.

d. Main activities undertaken to further the Charity's purposes for the public benefit

In planning the Trust’s activities the Trustees take into account the Charity Commission’s general guidance on public benefit and feel that through the conservation work carried out throughout both estates, the ongoing enhancement of public access facilities and by loans to exhibitions, the Trust's obligations are met. However due to the government restrictions imposed as a result of the Covid-19 Pandemic, both Castles and Gardens remained closed through the reporting period.

Strategic report

Achievements and performance

a. Main achievements of the Charity and review of activities

During the year the charity furthered its objectives to preserve and improve the Grimsthorpe and Drummond Castle Estates and to enhance the public benefits which they provide, by the following means:

Grimsthorpe Castle – Maintenance

Modernisation of the electrical circuit boards continues inside the Castle. A full roofing report has been produced and identified a schedule of required works which will be implemented in due course. A comprehensive refurbishment of fragile stonework has been implemented and is progressing well. The Castle Manager has provided a strategy to reduce insect life within the Castle as well as reduce winter vermin encroachments.

Grimsthorpe Castle – Collection

Temple Studios carried out conservation work on various items both at their workshop and in situ at the Castle, including two ormolu-mounted Boulle clocks, a gilded stand, two gilded side tables and an ormolu-mounted porcelain ewer.

Texterity continued conservation work on the textile collection including a collection of Palestinian headdresses. Caroline Bain conserved various books in the Library, including the bindings of leather photo albums and clothbacked books.

Hannah Weston-Smith made new loose covers for the pair of Howard chairs in the Vanburgh Hall. A painting of the Rev. Charles Bertie was conserved by the Hamilton Kerr Institute.

There were no loans or purchases during the year.

Page 3

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Strategic report (continued)

Achievements and performance (continued)

b. Main achievements of the Charity and review of activities (continued)

Grimsthorpe Castle – Gardens

A conservation management plan has been submitted to Historic England as part of the on-going repair work to the Old Walled Garden walls which are eroded by ivy and poor foundations. Box blight is an ongoing problem and a vigorous spraying programme is in place. The Statues have been assessed, and a programme of refurbishment has commenced including the provision of protective winter covers.

Grimsthorpe Park

A programme of Ash tree felling commenced as a result of the Ash Die Back disease, which will continue going forward reacting where necessary. A section of Grimsthorpe Lake has been dredged as part of a two year project, with the second phase due to commence in April 2022 in according with the wildlife licencing prescriptions.

Public Access

The government restriction imposed as a result of the Covid-19 Pandemic meant that both Castles and Gardens remained closed through the reporting period.

Drummond Castle

Drummond Castle Repairs have been predominately driven by the need to eradicate and monitor any outbreaks of dry rot and water ingress. The West facing roof works have been completed and whilst the garden were closed to the public the opportunity to repair the garden steps and statues. Major works to repair the Warrior Statute are planned during the 2021/22 financial year.

Drummond Castle Gardens

The gardens are constantly being treated for box blight and progress is being made to halt its spread. Investment has been made into Robotic Mowers during the pandemic to increase garden efficiency and enable labour to be redistributed elsewhere.

The gardens were closed during the reporting period due to Covid 19 restrictions.

c. Investment policy and performance

Under the Memorandum and Articles of Association, the charity has the power to invest in any way that the Trustees see fit. The policy of the Trustees is to preserve the real value of the investment portfolio, after allowing for the annual withdrawal of income and capital if justified by investment returns and approved by the Trustees. Sufficient liquidity is maintained so that, together with assured income, funds are available for the cash requirements for the Estates for at least one year.

Most of the Trust’s financial assets are held in funds managed by investment managers and no constraints are imposed on the managers to take account of social, environmental or ethical considerations.

Page 4

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Strategic report (continued)

Achievements and performance (continued)

Financial review

a. Going concern

During the year and subsequent to the year end, the UK has experienced a pandemic of the coronavirus. The potential effects to the charity and its future prospects cannot be fully quantified but the Trustees remain committed to the protection of the charity. This is being regularly reviewed by the directors. In addition the directors are mindful of the significant ongoing support being offered by the Government. Accordingly the financial statements have been prepared on a going concern basis.

b. Reserves policy

It is the Trustees’ intention in the short term to use all income from the charity’s investments and activities to further the aim of the charity. A sufficient proportion of the investment fund is maintained in a liquid form so that it is available to meet any shortfall in income that may result from short term economic factors.

The total reserves of the charity at 31 March 2021 amounted to £41,747,084 (2020 £38,535,492).Of the reserves, £3,521,852 were considered free reserves in the general fund account of the charity (2020 £786,023). The nature of the charity's assets and actlvities means that future spending is difficult to antlcipate and a notional figure of £100,000 has been agreed as the minimum Ievel of free reserves of the charity on the basis that would enable the charity to continue with all essential costs in the case of a short term emergency. The charity has substantial assets,and the trustees have the power to convert the expendable endowment of £2,464,966 to unrestricted income as they see fit for the continued operation of the charity. In addition, the trust holds a large collectlon of Iand, property and art which is belng used by the trustees and management to generate income for the ongolng operation of the charity.The trustees consider the current level of reserves held by the charity to be sufficient for its continued operatlon.

c. Principal funding

Total incoming resources amounted to £2,556,591 (2020: £2,941,578) while total resources expended were £2,823,789 (2020: £3,412,857). This resulted in an overall deficit before investment gains/losses of £267,198 (2020: £471,379 deficit). Included within total incoming resources were profits on the disposal of assets totalling £2,000 (2020: £750).

A net gain on disposal of investments during the year and revaluation of the remaining portfolio as at the year end amounted to a gain of £3,478,790 (2020: £150,001). This left an overall positive net movement on funds which is reflected in the increased total net assets of the balance sheet at the year end; being £41,747,084 (2020: £38,535,492).

Structure, governance and management

a. Constitution

Grimsthorpe & Drummond Castle Trust Limited is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association dated 09/03/1978, but subsequently modified on 14 December 2005.

Page 5

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

The principal objects of the Charity are the preservation and enhancement, for the public benefit, of Grimsthorpe Castle in Lincolnshire and Drummond Castle in Perthshire and their gardens and parkland together with the collections of art, furniture and the family and estate archives associated with the properties.

Following an application to the Office of the Scottish Charity Regulator it has been confirmed that the company complies with Scottish Charity legislation. On 1 March 2008 notification was received that the charity would be entered on the Scottish Charity Register with the Charity No. SC039364. The company continues to be registered as a charity with the Charity Commission of England and Wales, registration number 507478.

b. Methods of appointment or election of Trustees

There shall be not less than five and not more than nine Trustees and shall consist of the following:

c. Organisational structure and decision-making policies

The Board of Trustees are responsible for the management and finances of the Charity. They are assisted by the Council, previously called the Advisory Committee, who provide general and technical guidance on matters of relevance to the Charity.

The Board of Trustees administers the Charity. The Board meets quarterly.

The Managing Director is appointed by the Trustees to manage day to day operations of the Charity. He has delegated authority in line with policies established by the Trustees for operational matters including finance, property management and employment issues.

COUNCIL

The following were members of the Council during the year: Lady Willoughby de Eresby Mr R I Calvocoressi Mr F J F M Dymoke Sir Mark Jones Mr D Laird Sir John Lucas Tooth Mr H Matheson Lt. Col. S St. M Miller Mrs S Troughton Mr N H Baring Trustees appointment Mr J Bevan Trustees appointment Mr C Cator Trustees appointment Mr D Knott The Royal Botanic Garden, Edinburgh

Page 6

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

Mr T Knox Trustees appointment Mrs E Miller Trustees appointment Mr D Sheppard The Lincolnshire Wildlife Trust Dr J Tate The National Museums of Scotland

d. Policies adopted for the induction and training of Trustees

Trustees are selected on the basis of their specialist skills and knowledge of relevance to the Trust’s broad activities. New Trustees are briefed on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the charity structure and decision making processes, recent activities and financial performance and future plans.

e. Pay policy for key management personnel

A job evaluation and standardisation process was completed in the year. As a result of this review pay and responsibilities were reviewed by the Managing Director and Doard of Trustees. Decisions made regarding the pay of the key management personnel are made independently by the Board of Trustees and minuted as such.

f. Related party relationships

The charity operates independently and does not collaborate to a significant degree with other charities or bodies. Appropriate disclosures of transactions with charities and organisations have been incorporated into these financial statements.

g. Financial risk management

The Trustees have identified the risks to which the charity is exposed and reviews these annually. The most significant risks predominantly relate to staff issues, fire, health and safety and food hygiene. Because of the level and diversity of the company’s capital resources the potential for financial risk is limited.

Plans for future periods

The Trustees will continue to seek to further the Trust’s objectives to preserve and improve the Grimsthorpe and Drummond Castle Estates. At Grimsthorpe Castle the programme of stonework conservation, electrical upgrading and the implementation of the roof maintenance programme will continue. Work is ongoing in the Old Walled Garden at Grimsthorpe in order to stabilise the walls. A new car park has been constructed at Grimsthorpe as part of a phased approach to reinvigorate the visitor experience offering. Works to contrast an Art Gallery, new ticket office, Café and gift shop are planned to commence during 2021.

Work to construction a new West flat roof and refurbishment of the South Collyweston roof are due to commence as a major project during 2021. This project will ensure the the fabric of the building is preserved and curtails the ingress of water.

Page 7

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' Report including the Strategic 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 Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

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

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Auditors

The auditors, Streets Audit LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

_________ Lady Willoughby de Eresby (Chair of Trustees) Date: 9 July 2021

Page 8

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED

Opinion

We have audited the financial statements of Grimsthorpe & Drummond Castle Trust Limited (the 'charity') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 charitable company'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.

Page 9

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (CONTINUED)

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 Auditors' Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, 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 charitable company's

Page 10

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (CONTINUED)

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.

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 Auditors' 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:

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

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company and sector in which it operates;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

Page 11

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (CONTINUED)

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

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

•agreeing financial statement disclosures to underlying supporting documentation;

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

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 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 Auditors' 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, and to the charitable company's trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and Trustees 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Page 12

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (CONTINUED)

Linda Lord (Senior Statutory Auditor)

for and on behalf of Streets Audit LLP

Chartered Accountants and Statutory Auditor

Lucy Tower Street

Lincoln

Lincolnshire LN1 1XW

6 December 2021

Streets Audit LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 13

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Note
Income and
endowments from:
Donations and
legacies
3
Charitable activities
4
Investments
5
Other income
Total income and
endowments
Expenditure on:
Raising funds
6
Charitable activities
7
Total expenditure
Net expenditure
before net gains on
investments
Net gains on
investments
Net
(expenditure)/incom
e
Transfers between
funds
17
Net movement in
funds		 Unrestricted
funds
2021
£
145,011
2,397,505
1,435
-
2,543,951
-
2,658,122
2,658,122
(114,171)
-
(114,171)
2,850,000
2,735,829		 Restricted
funds
2021
£
-
-
12,640
-
12,640
146,692
18,975
165,667
(153,027)
2,810,715
2,657,688
-
2,657,688		 Endowment
funds
2021
£
-
-
-
-
-
-
-
-
-
668,075
668,075
(2,850,000)
(2,181,925)		 Total
funds
2021
£
145,011
2,397,505
14,075
-
2,556,591
146,692
2,677,097
2,823,789
(267,198)
3,478,790
3,211,592
-
3,211,592		 Total
funds
2020
£
-
2,701,419
239,409
750
2,941,578
155,808
3,257,049
3,412,857
(471,279)
150,001
(321,278)
-
(321,278)

Page 14

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Note
Reconciliation of
funds:
Total funds brought
forward
Net movement in
funds
Total funds carried
forward		 Unrestricted
funds
2021
£
786,023
2,735,829
3,521,852		 Restricted
funds
2021
£
11,495,036
2,657,688
14,152,724		 Endowment
funds
2021
£
26,254,433
(2,181,925)
24,072,508		 Total
funds
2021
£
38,535,492
3,211,592
41,747,084		 Total
funds
2020
£
38,856,770
(321,278)
38,535,492

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 18 to 38 form part of these financial statements.

Page 15

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 01356661

BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
12
Investments
13
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current assets
Total assets less current liabilities
Net assets excluding pension asset
Total net assets
Charity funds
Endowment funds
17
Restricted funds
17
Unrestricted funds
17
Total funds		 11,837
2,015,562
1,656,177
3,683,576
(451,467)		 2021
£
23,198,406
15,316,569
38,514,975
3,232,109
41,747,084
41,747,084
41,747,084
24,072,508
14,152,724
3,521,852
41,747,084		 21,341
1,194,322
191,726
1,407,389
(586,067)		 2020
£
21,692,291
16,021,879
37,714,170
821,322
38,535,492
38,535,492
38,535,492
26,254,433
11,495,036
786,023
38,535,492

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees on 09 July 2021 and signed on their behalf by:

Lady Willoughby de Eresby

(Chair of Trustees)

The notes on pages 18 to 38 form part of these financial statements.

Page 16

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
Net cash provided by investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£
(1,231,171)
14,075
2,000
(1,504,553)
4,195,047
(10,947)
2,695,622
-
1,464,451
191,726
1,656,177		 2020
£
(996,382)
239,409
750
(195,710)
19,397,268
(18,336,302)
1,105,415
-
109,033
82,693
191,726

The notes on pages 18 to 38 form part of these financial statements

Page 17

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. General information

As set out in the Trustee's report, Grimsthorpe & Drummond Castle Trust Limited is an incorporated registered charlty in England & Wales.The prlncipal offlce of the charity ls Grimsthorpe Estate Office, Grimsthorpe, Bourne, PE10 0LY.

The principal objective of the charity is set out in the Trustees' report.

These financial statements have been prepared in sterling, which is the functional currency of the charity.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements 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 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Grimsthorpe & Drummond Castle Trust Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

During the year and subsequent to the year end, the UK has experienced a pandemic of the Coronavirus. The potential effects to the charity and its future prospects cannot be fully quantified but the trustees remain committed to the protection of the charity. This is being regularly reviewed by the trustees. In addition the trustees are mindful of the significant ongoing support offered by the UK Government. Accordingly the financial statements have been prepared on a going concern basis.

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Page 18

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of Financial Activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of Financial Activities as the related expenditure is incurred.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following bases:

Land & Buildings - Nil - Plant, vehicles & equipment 5% or 20% Straight line Collection of Art & Furniture - Nil

Page 19

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.8 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.

Investments in subsidiaries are valued at cost less provision for impairment.

2.9 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.10 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.11 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.12 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.13 Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Page 20

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.14 Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

2.15 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Income from donations and legacies

Government grants
Total 2020		 Unrestricted
funds
2021
£
145,011
-		 Total
funds
2021
£
145,011
-		 Total
funds
2020
£
-

Government grants comprise amounts received under the coronavirus job retention scheme as well as sundry business support grants in the wake of the Covid-19 pandemic.

4. Income from charitable activities

Income from charitable activities - Grimsthorpe
Income from charitable activities - Drummond
Total 2021		 Unrestricted
funds
2021
£
2,306,564
90,941
2,397,505		 Total
funds
2021
£
2,306,564
90,941
2,397,505

Page 21

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

4. Income from charitable activities (continued)

Income from charitable activities - Grimsthorpe
Income from charitable activities - Drummond
Total 2020		 Unrestricted
funds
2020
£
2,471,877
229,542
2,701,419		 Total
funds
2020
£
2,471,877
229,542
2,701,419

5. Investment income

Unrestricted
funds
2021
£
Income from investments
1,435
Interest
-
Total 2021
1,435
Restricted
funds
2020
£
Income from local listed investments
200,335
Interest
23
Total 2020
200,358		 Restricted
funds
2021
£
-
12,640
12,640
Endowment
funds
2020
£
39,051
-
39,051		 Total
funds
2021
£
1,435
12,640
14,075
Total
funds
2020
£
239,386
23
239,409

Page 22

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6. Investment management costs

Investment management fees
Restricted
funds
2020
£
Investment management fees
106,391		 Restricted
funds
2021
£
146,692
Endowment
funds
2020
£
49,417		 Total
funds
2021
£
146,692
Total
funds
2020
£
155,808

7. Analysis of expenditure on charitable activities

Summary by fund type

Grimsthorpe
Drummond
Governance
Total 2021
Grimsthorpe
Drummond
Governance
Total 2020		 Unrestricted
funds
2021
£
2,062,723
557,577
37,822
2,658,122
Unrestricted
funds
2020
£
2,485,403
685,761
48,525
3,219,689		 Restricted
funds
2021
£
18,975
-
-
18,975
Restricted
funds
2020
£
37,360
-
-
37,360		 Total
funds
2021
£
2,081,698
557,577
37,822
2,677,097
Total
funds
2020
£
2,522,763
685,761
48,525
3,257,049

Page 23

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

7. Analysis of expenditure on charitable activities (continued)

Summary by fund type (continued)

8. Analysis of expenditure by activities

Grimsthorpe
Drummond
Governance
Total 2021
Grimsthorpe
Drummond
Governance
Total 2020		 Activities
undertaken
directly
2021
£
1,682,041
535,750
-
2,217,791
Activities
undertaken
directly
2020
£
2,131,371
658,924
-
2,790,295		 Support
costs
2021
£
399,657
21,827
37,822
459,306
Support
costs
2020
£
391,392
26,837
48,525
466,754		 Total
funds
2021
£
2,081,698
557,577
37,822
2,677,097
Total
funds
2020
£
2,522,763
685,761
48,525
3,257,049

Page 24

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8. Analysis of expenditure by activities (continued)

Analysis of direct costs

Public Access Expenditure
Castle & grounds upkeep
Other property upkeep
Conservation of collection
Security
Forestry
Major Restoration and Improvement
Total 2021
Public Access Expenditure
Castle & grounds upkeep
Other property upkeep
Conservation of collection
Secuity
Forestry
Major Restoration and Improvement
Total 2020		 Grimsthorp
e
2021
£
131,737
658,550
489,108
18,975
113,473
167,446
102,752
1,682,041
Grimsthorpe
2020
£
295,821
761,833
652,386
37,413
133,775
71,845
178,298
2,131,371		 Drummond
2021
£
23,461
436,692
29,142
-
6,802
-
39,653
535,750
Drummond
2020
£
47,446
404,734
23,632
-
97,267
-
85,845
658,924		 Total
funds
2021
£
155,198
1,095,242
518,250
18,975
120,275
167,446
142,405
2,217,791
Total
funds
2020
£
343,267
1,166,567
676,018
37,413
231,042
71,845
264,143
2,790,295

Page 25

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Audit Fees
Professional Fees
Property Upkeep
Office Expenses
Management Costs
Bad Debts
Total 2021
Staff costs
Audit Fees
Legal and Professional Fees
Property Upkeep
Office Expenses
Management Costs
Bad Debts
Total 2020		 Grimsthorp
e
2021
£
169,786
-
30,389
13,666
30,335
145,615
9,866
399,657
Grimsthorpe
2020
£
162,911
-
44,100
23,778
37,140
118,123
5,340
391,392		 Drummond
2021
£
-
-
-
-
-
21,827
-
21,827
Drummond
2020
£
-
-
-
-
-
26,837
-
26,837		 Governance
2021
£
17,365
11,250
4,878
-
3,093
1,236
-
37,822
Governance
2020
£
16,611
11,250
10,407
-
3,663
6,594
-
48,525		 Total
funds
2021
£
187,151
11,250
35,267
13,666
33,428
168,678
9,866
459,306
Total
funds
2020
£
179,522
11,250
54,507
23,778
40,803
151,554
5,340
466,754

9. Auditors' remuneration

- The auditors' remuneration amounts to an auditor fee of £6,500 (2020 £6,500) , and fees in connection with accountancy and other professional services in the period of of £11,750 ( 2020 - £11,000 ).

Page 26

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

10. Staff costs

Wages and salaries
Social security costs
Pension		 2021
£
795,552
58,513
48,871
902,936		 2020
£
916,955
62,810
51,144
1,030,909

During the year a job evaluation plan was finalised and as a result the charity made one redundancy. The total amount of the severance payment was £16,140.

The average number of persons employed by the Charity during the year was as follows:

Grimsthorpe
Drummond		 2021
No.
35
8
43		 2020
No.
75
24
99

No employee received remuneration amounting to more than £60,000 in either year.

The key management personnel of the charity comprise the Trustees. The total employee benefits paid to 1 member of key management personnel (lncluding employer's national insurance) (2019-1 member) of the chaity were £64,060 (2020: £64,042).

11. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £54,197) .

During the year ended 31 March 2021, expenses totalling £ 1,187 were reimbursed or paid directly to 3 Trustees (2020 - £5,256 to 6 Trustees) . Expenses related to travel and meeting costs.

Page 27

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

12. Tangible fixed assets

Cost or valuation
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
On disposals
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Freehold
property
£
18,200,652
1,551,698
-
19,752,350
-
-
-
-
19,752,350
18,200,652		 Plant and
machinery
£
633,243
4,495
(31,150)
606,588
453,424
50,078
(31,150)
472,352
134,236
179,819		 Other fixed
assets
£
3,311,820
-
-
3,311,820
-
-
-
-
3,311,820
3,311,820		 Total
£
22,145,715
1,556,193
(31,150)
23,670,758
453,424
50,078
(31,150)
472,352
23,198,406
21,692,291

Fixed assets includes £823,923 in respect of assets in the course of construction. These costs relate to the construction of the new car park.

Page 28

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

13. Fixed asset investments

Cost or valuation
At 1 April 2020
Additions
Disposals
Revaluations
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Investments
in
subsidiary
companies
£
1
-
-
-
1
1
1		 Listed
investments
£
16,019,021
10,947
(4,026,700)
3,313,300
15,316,568
15,316,568
16,019,021		 Total
£
16,019,022
10,947
(4,026,700)
3,313,300
15,316,569
15,316,569
16,019,022

Principal subsidiaries

The following was a subsidiary undertaking of the Charity:

Name Company Registered office or principal Principal activity
number place of business
Grimsthorpe & Drummond 12261095 Estate Office, Grimsthorpe, Dormant
Castle Enterprises Limited Bourne
Class of Holding Included in
shares consolidation
Ordinary 100% Yes

The financial results of the subsidiary for the year were:

Name Net assets
£
Grimsthorpe & Drummond Castle Enterprises Limited 1

Page 29

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

13. Fixed asset investments (continued)

The subsidiary was incorporated on 14th October 2019 and has remained dormant throughout the current and prior period.

14. Stocks

2021 2020
£ £
Raw materials and consumables 11,837 21,341

15. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 2021
£
669,102
24,234
1,322,226
2,015,562		 2020
£
617,377
27,451
549,494
1,194,322

Prepayments and accrued income includes a balance of £1,196,968 (2020: £421,454) in respect of costs incurred in the initial stages of the development of the Grimsthorpe Gallery. It is anticipated that these costs will form part of the final asset and in due course will be transferred. Costs to date include architectual fees and planning work. At this stage it is not known exactly which costs will form part of the final gallery and as a result the costs have been prepaid.

16. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2021
£
357,402
13,989
6,177
73,899
451,467		 2020
£
495,499
28,031
7,123
55,414
586,067

Page 30

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Creditors: Amounts falling due within one year (continued)

Deferred Income Summary: In Advance of Public Access Opening
Deferred income at 1 April 2020
Resources deferred during the year
Amounts released from previous periods
Total		 2021
£
2021
£
1,837
1,643
(1,837)
1,643		 2020
£
2020
£
6,176
1,837
(6,176)
1,837

Page 31

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

17. Statement of funds Statement of funds - current year

Unrestricted
funds
General Funds
Endowment
funds
Endowment
(Permanent)
Endowment
Fund
(Expendable)
Restricted
funds
Collection
Management
Reserve 2005
Collection
Management
Reserve
Gallery
Construction
Forestry
Machinery
Total of funds		 Balance at 1
April 2020
£
786,023
21,607,542
4,646,891
26,254,433
459,391
11,032,349
-
3,296
11,495,036
38,535,492		 Income
£
2,543,951
-
-
-
390
12,250
-
-
12,640
2,556,591		 Expenditure
£
(2,658,122)
-
-
-
(5,815)
(159,852)
-
-
(165,667)
(2,823,789)		 Transfers
in/out
£
2,850,000
-
(2,850,000)
(2,850,000)
-
(2,020,891)
2,020,891
-
-
-		 Gains/
(Losses)
£
-
-
668,075
668,075
117,712
2,693,003
-
-
2,810,715
3,478,790		 Balance at
31 March
2021
£
3,521,852
21,607,542
2,464,966
24,072,508
571,678
11,556,859
2,020,891
3,296
14,152,724
41,747,084

Page 32

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

17. Statement of funds (continued) Statement of funds - prior year

Unrestricted
funds
General Funds
Endowment
funds
Endowment
(Permanent)
Endowment
Fund
(Expendable)
Restricted
funds
Collection
Management
Reserve 2005
Collection
Management
Reserve
Forestry
Machinery
Total of funds		 Balance at
1 April 2019
£
255,601
21,604,543
5,019,218
26,623,761
500,000
11,470,816
6,592
11,977,408
38,856,770		 Income
£
2,702,192
-
39,051
39,051
169
200,166
-
200,335
2,941,578		 Expenditure
£
(3,219,689)
-
(49,417)
(49,417)
(36,192)
(104,263)
(3,296)
(143,751)
(3,412,857)		 Transfers
in/out
£
1,047,919
3,000
(550,919)
(547,919)
36,192
(536,192)
-
(500,000)
-		 Gains/
(Losses)
£
-
-
188,957
188,957
(40,778)
1,822
-
(38,956)
150,001		 Balance at
31 March
2020
£
786,023
21,607,543
4,646,890
26,254,433
459,391
11,032,349
3,296
11,495,036
38,535,492

Page 33

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

17. Statement of funds (continued)

Unrestricted funds

General Funds- The unrestricted reserves of the charity.

Endowment funds

Endowment (Permanent)- funds held indefinitely by the charity for the purpose of generating income.

Investment (Expendable)- funds held in the investment portfolio by the charity for the purpose of generating income which can be converted into income at the discretion of the charity trustees.

Restricted funds

Collection Management Reserve 2005- being funds held specifcially for the future management of the collection. This was originally represented by 350,308.61 treasury stock units in addition to accumulated income from these units. The original donor, Lady Willoughby, requested that the proceeds of the sale of a painting be held initially to generate income and preserve the collection. During the year ended 31 March 2019, it became clear that the restriction of a specific number of units was an innappropriate way to designate funds, and with the agreement of the original donor and the current board of trustees an amount of £500,000 was transferred to a separate investment holding, restricted as an original cost rather than tied to unit numbers.

Collection Management Reserve- The reserve also now includes funds generated from the sale of the Lucian Freud painting, "Night Portrait" which are to be used for the preservation and development of the Grimsthorpe Estate. Costs in relation to the upkeep of the castle artworks have been transferred from this fund in the year, in addition to costs relating to the North Avenue Gates and in development of the Grimsthorpe Gallery.

Gallery Construction- The reserve has been created to reflect the value of expenditure undertaken to date in constructing the Gallery and Car Park. These costs for the gallery are currently prepaid on the basis that the project was in the early stages of development at the year end. The costs for the car park are included in fixed assets additions. In due course the costs will form part of the capital asset of the gallery which will be treated as restricted and part of the Collection Management Reserve.

Public Access Passenger Vehicle- the restricted asset; lift safe passenger vehicle with the annual depreciation charges allocated to reduce the funds in line with the reduction of the net book value of the vehicle. This reached a nil value at 31 March 2019.

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GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18. Summary of funds

Summary of funds - current year

Balance at
Balance at 1 Transfers Gains/ 31 March
April 2020 Income Expenditure in/out (Losses) 2021
£ £ £ £ £ £
General funds 786,023 2,543,951 (2,658,122) 2,850,000 - 3,521,852
Endowment
funds 26,254,433 - - (2,850,000) 668,075 24,072,508
Restricted
funds 11,495,036 12,640 (165,667) - 2,810,715 14,152,724
38,535,492 2,556,591 (2,823,789) - 3,478,790 41,747,084
Summary of funds - prior year
Balance at
Balance at Transfers Gains/ 31 March
1 April 2019 Income Expenditure in/out (Losses) 2020
£ £ £ £ £ £
General funds 255,601 2,702,192 (3,219,689) 1,047,919 - 786,023
Endowment
funds 26,623,761 39,051 (49,417) (547,919) 188,957 26,254,433
Restricted
funds 11,977,408 200,335 (143,751) (500,000) (38,956) 11,495,036
38,856,770 2,941,578 (3,412,857) - 150,001 38,535,492

19. Analysis of net assets between funds Analysis of net assets between funds - current year

Unrestricted
funds
2021
£
Tangible fixed assets
1,587,566
Fixed asset investments
80
Current assets
2,385,673
Creditors due within one year
(451,467)
Total
3,521,852		 Restricted
funds
2021
£
3,296
12,851,525
1,297,903
-
14,152,724		 Endowment
funds
2021
£
21,607,544
2,464,964
-
-
24,072,508		 Total
funds
2021
£
23,198,406
15,316,569
3,683,576
(451,467)
41,747,084

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GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

19. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2020
£
81,453
78
1,290,559
(586,067)
786,023		 Restricted
funds
2020
£
3,296
11,374,910
116,830
-
11,495,036		 Endowment
funds
2020
£
21,607,542
4,646,891
-
-
26,254,433		 Total
funds
2020
£
21,692,291
16,021,879
1,407,389
(586,067)
38,535,492

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

Net income/expenditure for the year (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Gains on investments
Dividends, interests and rents from investments
Profit on the sale of fixed assets
Decrease/(increase) in stocks
Increase in debtors
Increase/(decrease) in creditors
Net cash used in operating activities		 2021
£
3,211,592
50,078
(3,478,790)
(14,075)
(2,000)
9,504
(872,880)
(134,600)
(1,231,171)		 2020
£
(321,278)
59,052
(150,001)
(239,409)
(750)
(1,850)
(534,196)
192,050
(996,382)

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GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

21. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 2021
£
1,656,177
1,656,177		 2020
£
191,726
191,726

22. Analysis of changes in net debt

At 1 April
2020
£
Cash at bank and in hand
191,726
191,726
23.
Capital commitments
Contracted for but not provided in these financial statements
Construction of the Gallery Car Park
Development of Pillarwood Farm Buildings		 Cash flows
£
1,464,451
1,464,451
2021
£
614,325
-
614,325		 At 31 March
2021
£
1,656,177
1,656,177
2020
£
-
357,264
357,264		 At 31 March
2021
£
1,656,177
1,656,177
2020
£
-
357,264
357,264
357,264

24. Pension commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund.

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GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

25. Operating lease commitments

At 31 March 2021 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:

2021 2020
£ £
Not later than 1 year 148 210

26. Related party transactions

Trustees may from time to time make donations to the charity. Normally no conditions are attached to these gifts.

Lady Willoughby de Eresby is a Director of Ancaster Estates, a Company which is a tenant of Grimsthorpe & Drummond Castle Trust Limited. All transactions between the Landlord and Tenant are carried out on a normal arms-length commercial basis, Independent Valuers and Agents being used where appropriate. In addition at Drummond, Drummond Estates (Lady Willoughby de Eresby trading as) has been contracted to carry out a small amount of maintenance work and provide services to the Company, all such work being charged on a commercial basis. This was immaterial during the year. The rents charged to Ancaster Estates in the year were £208,200 in respect of Grimsthorpe Castle Farm Rent (2020: £208,200) and £8,250 in respect of Drummond Castle Policy Park (2020: £8,250). Lady Willoughby de Eresby (trading as Drummond Estates) was also a tenant of Grimsthorpe & Drummond Castle Trust Limited in respect of cottages and shooting in Drummond Park, the annual rent being £2,910 (2020: £2,910).

Lt. Col S St. M Miller was employed by the Trust as managing director for the year ended 31 March 2021. Full disclosure has been made in the staff costs section of the financial statements. In addition, the wife and daughter of Lt. Col S St M Miller were employed by the Trust. Mrs E Miller was remunerated for her role as archivist for the Trust and was paid within the banding of £20,000-£25,000 (2020: £20,000£25,000). Ms H Miller was remunerated for her role as an employee of the Trust and was paid within the banding £10,000-£15,000 (2020: £0-£5,000).

Harry Coups, a land agent from Savills who is responsible for the management of many of the charity's properties and tenancies, has an interest in the Clay Pigeon Shooting Clubhouse. Harry Coups has had no involvement with the management of this tenancy or with any transactions the charity has with the property (which are all conducted on an arms length basis). This is as discussed by the trustees prior to the commencement of his engagement with the trust.

At the end of the year the following amounts were owed to/(from) Grimsthorpe & Drummond Castle Trust Limited, all of which were subsequently settled:

Ancaster Estates- debtors of £111,303 (2020: debtors of £112,959) and creditors of £1,677 (2020: £375). Drummond Estates- debtors of £500 (2020: debtors of £1,386) and creditors of £18,669 (2020: £35,789)

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