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2022-03-31-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 2022

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 - 9
Independent Auditors' Report on the Financial Statements 10 - 15
Statement of Financial Activities 16
Balance Sheet 17
Statement of Cash Flows 18
Notes to the Financial Statements 19 - 39

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 2022

Trustees Lady Willoughby de Eresby
Mrs C A Butler (appointed 9 July 2021)
Mr R I Calvocoressi CBE
Mr F J F M Dymoke
Mr N Harries (appointed 9 July 2021)
Sir M Jones
Mr H P Matheson
Lt Col. S St. M Miller
Mrs S Troughton DStJ
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 2022

The Trustees present their annual report together with the audited financial statements of the Charity for the 1 April 2021 to 31 March 2022. 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.

c. Staff

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.

Page 2

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

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

Objectives and activities (continued)

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.

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

A flat roof with covers a large proportion of the West elevation of Grimsthorpe Castle has been re-covered, and insulated. The North facing side of the South Collywestern Roof and associated dormer windows, has been relayed and repaired. A new fire alarm system has been installed in the Castle, which has been hard wired on the second floor and in part of the ground floor, allowing radio signal to be used for the alarms in the State rooms (which is non-intrusive).

The opportunity was taken to capitalise on the extensive scaffolding required to replace the west roof, and an extensive programme of masonry, predominately on the west elevation were carried out. This working included chimneys, window surrounds and associated lead works.

Grimsthorpe Castle – Collection

The Porcelain Ewer with ormolu mounts on one of the pair of ewers in the State Dining Room were cleaned last year.

A pair of matched George II Giltwood Mirror has been restored

Loans

Benjamin by Francisco de Zurbaràn (Inv. 201) is currently on loan to the Auckland Project’s Spanish Gallery. It is due to return to Grimsthorpe at the end of March 2023.

Long Term Loans

The Gwydyr Chair 1665-1680 (CADW No GU08)

Loaned to Mr and Mrs Peter Welford, Gwydyr Castle. Previous valuation for May 2005 – June 2010 £2,500. Renewed 21 September 2018 for ten years.

Two Fencing Masks, mid-19th century

Two fencing masks loaned to the Royal Armouries, Leeds. The loan is currently being renewed for a further three years.

Page 3

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

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

Strategic report (continued)

Achievements and performance (continued)

Evening, Oil on canvas, British School after Richard Wilson R.A.

Loaned to the Judges’ Lodgings, Lincoln by the Earl of Ancaster in September 1956. Lincolnshire County Council have agreed the sale of the Judges’ Lodgings and requested the removal of the painting from the premises. The painting is currently in storage in the Chapel Gallery whilst a permanent home for it is found.

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

Grimsthorpe Castle – Gardens

Cultural control has been put in place to successfully control box blight, which has reduced the reliance on chemical applications to tackle the disease. A programme to rejuvenate the Rose Parterre has commenced, removing old diseased rose plants and exhausted soil and replacing with modern variety that are repeat flowering and have better resilience to pests and disease. Areas within the garden are being managed as wildflower meadows to encourage increased biodiversity, which has already resulted in a growing population of orchids.

Grimsthorpe Park

The decline of Ash trees continue to force a programme of felling and restocking works within the park. Work to restore an ornate bridge within the historic ‘Vaudey Valley’ has been undertaken, replacing the Oak upstands and replacing the limestone on both elevations. A section of Grimsthorpe Lake have been dredged as part of a two year project, with the second phase due to commence in October 2022 in accordance with the wildlife licencing prescriptions.

Public Access

Grimsthorpe reopened to visitors in late May 2021, and emerged from the pandemic with visitor numbers almost back to pre-Covid levels. Online ticket sales from Grimsthorpe’s website increased and this, along with a new EPoS till system, helped to reduce queues as well as contact on site and made for a more streamlined experience. The castle, park, gardens and children’s playground continue to be popular choice for visitors both nationally and internationally.

Drummond Castle

At Drummond, routine conservation and maintenance work to the Castle has continued with a particular focus on the external stonework.

Dry rot monitoring continues and following the completion of the majority of roof and masonry repairs, the spread of Dry rot has stabilised.

Drummond Castle Gardens

Some of the box hedge has been replaced with new stock, where losses have occurred due to blight. The introduction of all-terrain robotic mowers has proved successful, especially on the terrace banks. Storm Arwen damaged one of the stautes which has gone for restorative work.

Page 4

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED

(A Company Limited by Guarantee)

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

Strategic report (continued)

Achievements and performance (continued)

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.

Financial review

a. Going concern

Throughout the year, 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.

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 2022 amounted to £42,634,736 (2021: £41,747,084).Of the reserves, £5,120,107 were considered free reserves in the general fund account of the charity (2021: £3,521,852).

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 such assets 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.

Page 5

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

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

c. Principal funding

Total incoming resources amounted to £3,038,260 (2021: £2,556,591) while total resources expended were £4,067,913 (2021: £2,823,789). This resulted in an overall deficit before investment gains/losses of £1,029,653 (2021: £267,198 deficit). Included within total incoming resources were profits on the disposal of assets totalling £Nil (2021: £2,000).

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 £1,917,305 (2021: £3,478,790). 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 £42,634,736 (2021: £41,747,084).

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 9 March 1978, but subsequently modified on 14 December 2005.

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:

Page 6

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

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

Structure, governance and management (continued)

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 Mrs C A Butler Mr R I Calvocoressi Mr F J F M Dymoke Mr N Harries Sir M Jones Mr H P Matheson Lt. Col. S St. M Miller Mrs S H Troughton Mr J Bevan Trustees appointment Mr C Cator Trustees appointment Mr D Knott The Royal Botanic Garden, Edinburgh Mrs E Miller Trustees appointment 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. 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.

f. 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.

Page 7

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

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

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 construct an Art Gallery, ticket office, Café and gift shop will continue.

Page 8

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

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

Plans for future periods (continued)

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 EresbySir Mark Jones (Chair of Trustees)(Chair of Trustees) Date: Date: 7 December 2022

Page 9

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 2022 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 10

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 other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees 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.

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:

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)

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 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.

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)

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:

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

Page 13

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:

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 14

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

Date: 20/12/2022

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

Page 15

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 2022

Note
Income and
endowments from:
Donations and legacies
3
Charitable activities
4
Investments
5
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)/income
Transfers between
funds
17
Net movement in
funds
Reconciliation of
funds:
Total funds brought
forward
Net movement in funds
Total funds carried
forward		 Unrestricted
funds
2022
£
9,772
3,010,630
-
3,020,402
-
3,916,601
3,916,601
(896,199)
-
(896,199)
2,494,454
1,598,255
3,521,852
1,598,255
5,120,107		 Restricted
funds
2022
£
-
-
17,858
17,858
128,071
23,241
151,312
(133,454)
1,894,692
1,761,238
(6,875)
1,754,363
14,152,724
1,754,363
15,907,087		 Endowment
funds
2022
£
-
-
-
-
-
-
-
-
22,613
22,613
(2,487,579)
(2,464,966)
24,072,508
(2,464,966)
21,607,542		 Total
funds
2022
£
9,772
3,010,630
17,858
3,038,260
128,071
3,939,842
4,067,913
(1,029,653)
1,917,305
887,652
-
887,652
41,747,084
887,652
42,634,736		 Total
funds
2021
£
145,739
2,396,777
14,075
2,556,591
146,692
2,677,097
2,823,789
(267,198)
3,478,790
3,211,592
-
3,211,592
38,535,492
3,211,592
41,747,084

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

The notes on pages 19 to 39 form part of these financial statements.

Page 16

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

BALANCE SHEET AS AT 31 MARCH 2022

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		 22,695
973,817
13,785,939
14,782,451
(1,049,473)		 2022
£
28,270,347
631,411
28,901,758
13,732,978
42,634,736
42,634,736
42,634,736
21,607,542
15,907,087
5,120,107
42,634,736		 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

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 _______ and signed on their behalf by:

Sir Mark JonesLady Willoughby de Eresby (Chair of Trustees)(Chair of Trustees)

The notes on pages 19 to 39 form part of these financial statements.

Page 17

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

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

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
The notes on pages 19 to 39 form part of these financial statements		 2022
£
620,385
17,858
-
(5,110,944)
16,612,456
(9,993)
11,509,377
-
12,129,762
1,656,177
13,785,939		 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

Page 18

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

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

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 19

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

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

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.

Page 20

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

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

2. Accounting policies (continued)

2.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £5,000 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.

Assets in the course of construction are included at costs incurred to date. Depreciation on these assets is not charged until they are brought into use.

At each reporting date the Charity assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The Collection of Art and Furniture donated to the Charity is shown at values adopted by the Trustees based on original insurance values, additions being included at cost, or where donated deemed value.

No depreciation has been charged in respect of these assets as it is the Trustees' opinion that given the charity's policy of regular maintenance and restoration of the properties, and the economic and technological obsolescence of the Heritage Buildings, Art Collection and Furtniture is unlikely, these assets have very long useful lives. It is therefore considered that any periodic depreciation charge would be immaterial. In the few instances where disposals of similar assets have taken place in recent years, the disposal proceeds have not been less than their carrying values.

The Trustees are of the opinion that the values of both the Land and Buildings and the Collection are significantly in excess of their carrying values.

The cost of improvements to the structure of existing buildings, where no change in use has occurred, is charged to the Statement of Financial Activities in the period in which the expenditure is incurred. The cost of development of any new dwelling is capitalised subject to any indications of impairment.

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 21

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

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

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.

2.14 Operating leases

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the lease term.

Page 22

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

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

2. Accounting policies (continued)

2.15 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.

2.16 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.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

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

Unrestricted
funds
2022
£
Donations
2,450
Government grants
7,322
Total 2022
9,772
Total 2021
145,739		 Total
funds
2022
£
2,450
7,322
9,772
145,739		 Total
funds
2021
£
728
145,011
145,739

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.

Page 23

(A Company Limited by Guarantee)

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED

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

4. Income from charitable activities

Unrestricted
funds
2022
£
Income from charitable activities - Grimsthorpe
2,774,867
Income from charitable activities - Drummond
235,763
Total 2022
3,010,630		 Total
funds
2022
£
2,774,867
235,763
3,010,630		 Total
funds
2021
£
2,305,836
90,941
2,396,777

5. Investment income

Unrestricted
funds
2022
£
Income from investments
-
Interest
-
Total 2022
-
Total 2021
1,435		 Restricted
funds
2022
£
-
17,858
17,858
12,640		 Total
funds
2022
£
-
17,858
17,858
14,075		 Total
funds
2021
£
1,435
12,640
14,075

6. Investment management costs

Restricted Total Total
funds funds funds
2022 2022 2021
£ £ £
Investment management fees 128,071 128,071 146,692

Page 24

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

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

7. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2022
£
Grimsthorpe
3,270,502
Drummond
614,341
Governance
31,758
Total 2022
3,916,601
Total 2021
2,658,122		 Restricted
funds
2022
£
23,241
-
-
23,241
18,975		 Total
funds
2022
£
3,293,743
614,341
31,758
3,939,842
2,677,097		 Total
funds
2021
£
2,089,684
557,577
29,836
2,677,097

8. Analysis of expenditure by activities

Grimsthorpe
Drummond
Governance
Total 2022
Total 2021		 Activities
undertaken
directly
2022
£
2,989,227
588,170
-
3,577,397
2,338,148		 Support
costs
2022
£
304,516
26,171
31,758
362,445
338,949		 Total
funds
2022
£
3,293,743
614,341
31,758
3,939,842
2,677,097		 Total
funds
2021
£
2,089,684
557,577
29,836
2,677,097

Page 25

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

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

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
Office Expenses
Management Expenses
Total 2022
Total 2021
Analysis of support costs		 Grimsthorpe
2022
£
271,284
828,262
788,076
20,075
189,428
211,947
522,008
1,318
156,829
2,989,227
1,802,398		 Drummond
2022
£
41,074
376,050
88,166
-
-
-
82,880
-
-
588,170
535,750		 Total
funds
2022
£
312,358
1,204,312
876,242
20,075
189,428
211,947
604,888
1,318
156,829
3,577,397
2,338,148		 Total
funds
2021
£
155,198
1,095,242
518,250
18,975
120,275
167,446
142,405
1,509
118,848
2,338,148
Grimsthorpe
2022
£
Staff costs
256,319
Audit Fees
-
Professional Fees
4,552
Property Upkeep
9,419
Office Expenses
1,424
Management Costs
21,093
Bad Debts
11,709
Total 2022
304,516
Total 2021
287,286		 Drummond
2022
Governance
2022
£
£
-
11,016
-
11,250
-
-
-
-
-
3,086
26,171
6,406
-
-
26,171
31,758
21,827
29,836		 Total
funds
2022
£
267,335
11,250
4,552
9,419
4,510
53,670
11,709
362,445
338,949		 Total
funds
2021
£
187,151
11,250
4,878
13,666
12,407
99,731
9,866
338,949

Page 26

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

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

9. Auditors' remuneration

- The auditors' remuneration amounts to an auditor fee of £6,500 (2021 £6,500) , and fees in connection with accountancy and other professional services in the period of of £11,750 ( 2021 - £11,750 ).

10. Staff costs

Wages and Salaries
Contribution to defined contribution pension schemes
Pension		 2022
£
966,390
75,391
58,371
1,100,152		 2021
£
-
795,552
58,513
48,871
902,936

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

Grimsthorpe
Drummond		 2022
No.
49
8
57		 2021
No.
35
8
43

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2022 2021
No. No.
In the band £60,001 - £70,000 1 -
In the band £70,001 - £80,000 1 -

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) (2021-1 member) of the chaity were £85,547 (2021: £64,060).

11. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .

Page 27

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED

(A Company Limited by Guarantee)

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

11. Trustees' remuneration and expenses (continued)

During the year ended 31 March 2022, expenses totalling £ 3,086 were reimbursed or paid directly to 4 Trustees (2021 - £1,187 to 3 Trustees) . Expenses related to travel and meeting costs.

12. Tangible fixed assets

Cost or valuation
At 1 April 2021
Additions
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Freehold
property
£
19,752,350
5,104,069
24,856,419
-
-
-
24,856,419
19,752,350		 Plant and
machinery
£
606,588
-
606,588
472,352
39,003
511,355
95,233
134,236		 Other fixed
assets
£
3,311,820
6,875
3,318,695
-
-
-
3,318,695
3,311,820		 Total
£
23,670,758
5,110,944
28,781,702
472,352
39,003
511,355
28,270,347
23,198,406

Fixed asset additions include £4,193,755 in respect of assets in the course of construction. These costs relate to the construction of the Gallery, the Estate services centre and Featherwell Barns Development.

Page 28

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

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

13. Fixed asset investments

Investments

Cost or valuation
At 1 April 2021
Additions
Disposals
Revaluations
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 in
subsidiary
companies
£
1
-
-
-
1
1
1		 Listed
investments
£
15,316,568
9,993
(16,011,955)
1,316,804
631,410
631,410
15,316,568		 Total
£
15,316,569
9,993
(16,011,955)
1,316,804
631,411
631,411
15,316,569

Page 29

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

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

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 Castle 12261095 Estate Office, Grimsthorpe, Dormant 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

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

14. Stocks

2022 2021
£ £
Raw materials and consumables 22,695 11,837

Page 30

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

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

15. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 2022
£
677,591
167,570
128,656
973,817		 2021
£
669,102
24,234
1,322,226
2,015,562

Prepayments and accrued income in 2021 includes a balance of £1,196,968 in respect of costs incurred in the initial stages of the development of the Grimsthorpe Gallery. These costs formed part of the final asset and therefore have been included within Fixed asset additions as assets under the course of construction.

16. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred Income Summary: In Advance of Public Access Opening
Deferred income at 1 April 2021
Resources deferred during the year
Amounts released from previous periods
Total		 2022
£
783,097
19,592
6,673
240,111
1,049,473
2022
£
1,643
11,788
(1,643)
11,788		 2021
£
357,402
13,989
6,177
73,899
451,467
2021
£
1,837
1,643
(1,837)
1,643

Page 31

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

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

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 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		 Income
£
3,020,402
-
-
-
445
17,413
-
-
17,858
3,038,260		 Expenditure
£
(3,916,601)
-
-
-
(19,945)
(128,071)
-
(3,296)
(151,312)
(4,067,913)		 Transfers
in/out
£
2,494,454
-
(2,487,579)
(2,487,579)
12,476
(2,686,215)
2,666,864
-
(6,875)
-		 Gains/
(Losses)
£
-
-
22,613
22,613
66,678
1,828,014
-
-
1,894,692
1,917,305		 Balance at
31 March
2022
£
5,120,107
21,607,542
-
21,607,542
631,332
10,588,000
4,687,755
-
15,907,087
42,634,736

Page 32

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

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

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
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 33

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

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

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.

Endowment (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.

Forestry Machinery - the restricted assets; forestry machinery with the annual depreciation charges allocated to reduce the funds in line with the reduction of the net book value of the vehicle.

Page 34

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

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

17. Statement of funds (continued)

18. Summary of funds

Summary of funds - current year

General funds
Endowment
funds
Restricted funds		 Balance at 1
April 2021
£
3,521,852
24,072,508
14,152,724
41,747,084		 Income
£
3,020,402
-
17,858
3,038,260		 Expenditure
£
(3,916,601)
-
(151,312)
(4,067,913)		 Transfers
in/out
£
2,494,454
(2,487,579)
(6,875)
-		 Gains/
(Losses)
£
-
22,613
1,894,692
1,917,305		 Balance at
31 March
2022
£
5,120,107
21,607,542
15,907,087
42,634,736

Summary of funds - prior year

General funds
Endowment
funds
Restricted funds		 Balance at
1 April 2020
£
786,023
26,254,433
11,495,036
38,535,492		 Income
£
2,543,951
-
12,640
2,556,591		 Expenditure
£
(2,658,122)
-
(165,667)
(2,823,789)		 Transfers
in/out
£
2,850,000
(2,850,000)
-
-		 Gains/
(Losses)
£
-
668,075
2,810,715
3,478,790		 Balance at
31 March
2021
£
3,521,852
24,072,508
14,152,724
41,747,084

Page 35

(A Company Limited by Guarantee)

GRIMSTHORPE & DRUMMOND CASTLE TRUST LIMITED

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

19. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2022
£
Tangible fixed assets
1,975,050
Fixed asset investments
78
Current assets
4,194,452
Creditors due within one year
(1,049,473)
Total
5,120,107		 Restricted
funds
2022
£
4,687,755
631,333
10,587,999
-
15,907,087		 Endowment
funds
2022
£
21,607,542
-
-
-
21,607,542		 Total
funds
2022
£
28,270,347
631,411
14,782,451
(1,049,473)
42,634,736

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2021
£
1,587,566
80
2,385,673
(451,467)
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

Page 36

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

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

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

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Gains on investments
Dividends, interests and rents from investments
Loss/(profit) on the sale of fixed assets
Decrease/(increase) in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash provided by/(used in) operating activities
21.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
22.
Analysis of changes in net debt
At 1 April
2021
£
Cash at bank and in hand
1,656,177
1,656,177		 2022
£
887,652
39,003
(1,917,305)
(17,858)
-
(10,858)
1,041,745
598,006
620,385
2022
£
13,785,939
13,785,939
Cash flows
£
12,129,762
12,129,762		 2021
£
3,211,592
50,078
(3,478,790)
(14,075)
(2,000)
9,504
(872,880)
(134,600)
(1,231,171)
2021
£
1,656,177
1,656,177
At 31 March
2022
£
13,785,939
13,785,939

Page 37

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

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

23. Capital commitments

Contracted for but not provided in these financial statements
Construction of the Gallery Car Park
Development of Featherwell Barns
Construction of Estate Services Centre		 2022
£
-
769,578
260,600
1,030,178		 2021
£
614,325
-
-
614,325

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.

Page 38

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

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

25. Operating lease commitments

At 31 March 2022 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:

2022 2021
£ £
Not later than 1 year 148 148

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 (2021: £208,200) and £7,500 in respect of Drummond Castle Policy Park (2021: £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 (2021: £2,910).

Lt. Col S St. M Miller was employed by the Trust as managing director for the year ended 31 March 2022. 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 £30,000-£35,000 (2021: £20,000£25,000). Ms H Miller was remunerated for her role as an employee of the Trust and was paid within the banding £20,000-£25,000 (2021: £10,000-£15,000).

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 £107,475 (2021: debtors of £111,303) and creditors of £Nil (2021: £1,677). Drummond Estates- debtors of £1,195 (2021: debtors of £500) and creditors of £32,715 (2021: £18,669)

Page 39