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2023-03-31-accounts

REGISTERED COMPANY NUMBER: 01180515 (England and Wales) REGISTERED CHARITY NUMBER: 508849

Report of the Trustees and

Financial Statements for the Year Ended 31 March 2023

for

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Bennett Brooks & Co Ltd Chartered Accountants & Statutory Auditors

19 Trinity Square Llandudno CONWY LL30 2RD

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Contents of the Financial Statements for the year ended 31 March 2023

Page
Report of the Trustees 1 to 6
Report of the Independent Auditors 7 to 8
Statement of Financial Activities 9
Statement of Financial Position 10
Statement of Cash Flows 11
Notes to the Statement of Cash Flows 12
Notes to the Financial Statements 13 to 23
Detailed Statement of Financial Activities 24 to 25

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Report of the Trustees for the year ended 31 March 2023

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The aims and remit of the Gwynedd Archaeological Trust are to record, interpret and disseminate historical and archaeological information concerning the historic environment and built heritage of North West Wales. The objective for which the Trust was formed is to 'advance the education of the public in archaeology'. This is achieved through the work undertaken by the Trust, as outlined in the activities report below.

Public benefit

The Trustees have complied with the duty in section 4 of the Charities Act 2011 to have due regard to public guidance published by the Charity Commission.

The Trust works closely with national, regional and local bodies to help record, research, interpret and protect all aspects of the historic environment for the benefit of the public.

Page 1

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Report of the Trustees for the year ended 31 March 2023

STRATEGIC REPORT

Achievement and performance

The following is a summary to demonstrate how the trust achieved its aims and objectives during the financial year.

Our heritage management services continued to offer advice to the public, to local authorities and to the Welsh Government. This included making available the Historic Environment Record to the public on behalf of the Welsh Ministers, who have a statutory obligation to do this. The Trust also provided advice on mitigating the impact of new developments on the historic environment. Work for commercial clients continued using professional staff working to standards set by the Chartered Institute for Archaeologists.

Planning service

The Trust advised the local planning authorities on archaeological implications. During the year, 3,535 applications were checked, and full details were requested for 1,326. Of these, 143 were considered to have an impact on the historic environment. In addition, 63 predetermination assessments were initiated during the year, and 112 post-determination recommendations were initiated, including survey, building recording, watching brief and photographic records. During the year 38 project designs were approved, and 38 archaeological reports produced through the planning process. In the year the planning service advised on 18 new schemes outside the planning process, requiring archaeological work in 13 cases.

Historic Environment Record

The Gwynedd Archaeological Trust maintains the regional Historic Environment Record (HER).This is a database of around 63,000 records relating to the archaeological landscape in north-west Wales. Enquiries can be made by telephone or email, and by visiting the HER office and our library and records directly. The record is available on-line for public access through 'Archwilio'. Use of Archwilio and the HER are free of charge to the public. An additional 3754 core records were added within the year, and 353 event records. An additional 4376 core-event linking records were created. 12,323 core records were updated during the year. A number of other tasks were undertaken, including improving the recording and usage functions.

Heritage Management

Information and advice was supplied to a wide variety of organisations and institutions, including local history organisations and societies and national archaeological organisations and societies (for example Cambrian Archaeological Association; 20C Society; Research Framework Wales). The Trust provides archaeological advice to the regional Planning Authorities, to Welsh Government and to Natural Resources Wales. Advice is also given to Bangor Diocese. A total of 213 enquiries from the general public were responded to.

Education and outreach

GAT attended or organized various events throughout the year, including the CBA Festival of Archaeology, an open day at Dinas Dinlle with the National Trust, Bryn Celli Ddu open day,

and a family day in connection with our Landscape of Neolithic Axes project.

In addition the Trust organised a return to in-person lectures, where staff presented lectures on GAT projects, guest speakers also contributed talks. Attendance was excellent. A series of guided walks included Maen y Bardd and Clynnog Fawr.

We added more information to our website, and increased our social media presence, reaching over 50,000 viewers on Facebook. Support of the Young Archaeologists Club continued, and we now have approximately 50 members.

The Trust worked with over 132 school pupils last year and received a great deal of positive feedback from the pupils, teachers and parents.

Fieldwork Projects

Two community-based projects were undertaken within the year. At Dinas Dinlle, a hillfort threatened by coastal erosion, excavations were undertaken close to the eroding edge. In the one trench a 13.6m diameter roundhouse with walls 2.7m thick was partially excavated. In the second trench another round house was excavated, and pottery of Roman date was recovered. The work was undertaken in conjunction with RCAHMW, AONB, National Trust, Bangor University and local volunteers. The round house is to be consolidated by the National Trust and left open to view.

A project concerning the Landscape of Neolithic Axes was continued from the previous year. Two very successful phases of work were undertaken by volunteers under the supervision of GAT and National Park staff. Two guided walks were held, and the project was accompanied by a schools programme, where pupils could excavate and recover finds.

Staff at the Trust continued to contribute to the recently designated Slate Landscapes World Heritage Site by undertaking quarry surveys, and in particular a survey of the remains at Dinorwic Quarry.

A significant number of field projects were undertaken on behalf of clients, resulting in an output of over fifty reports.

Page 2

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Report of the Trustees for the year ended 31 March 2023

STRATEGIC REPORT Financial review

Principal funding sources

Grant aid from Cadw for undertaking a regional historic environment service was £352,869 (2022: £378,478). Other restricted grants received amounted to £8,250 (2022: £27,750). Project income for undertaking archaeological field services amounted to £414,632 (2022: £511,574). A total income of £781,475 (2022: £1,002,575) provided the Trust with sufficient resources to fulfil its primary objective and aims.

Reserves policy

The Trust maintains a level of reserves that enables the Charity to meet its ongoing commitments, to fund any short-term falls in income and to maintain sufficient funds to cover future liabilities to staff in case of redundancy. The accounts for 2022/2023 show a net surplus of funds for the year of £19,521. Total funds carried forward as at 31 March 2023 amounted to £819,125. Net current assets amounted to £498,716.

Going concern

The Trust has significant cash resources at 31 March 2023. Cash flow forecasts have been prepared that take into account the pension contributions noted above and show that should the merger referred to in this report not take place, the Trust would have adequate cash reserves in order to continue operations for the foreseeable future. In the event that the merger is agreed and does take place, the Trust's operations, assets and liabilities, will be transferred to the single all-Wales trust as a going concern. The Trustees have therefore prepared these financial statements on a going concern basis.

Post balance sheet date events and future plans

During the year, the Trust participated in discussions with the three other Welsh Archaeological Trusts concerning a proposed merger, forming a single all-Wales Trust. If these plans were to be agreed, it would entail this Trust being wound up and its assets, liabilities and business being transferred into the new organisation, which would be a charity with similar objects. Discussions continue, and no final decision has been taken.

Risk management

The Trustees of the Gwynedd Archaeological Trust have considered the major risks to which Gwynedd Archaeological Trust is exposed. Procedures have been established in order to mitigate these risks in the following categories.

For all funds, the charity's assets are available and adequate to fulfil its obligations. The Trust fulfils its charitable functions through the project work of its salaried staff. In this respect the financial priorities are in securing sufficient grant aided and commissioned work to meet those costs.

Future funding

The Trust has received a grant offer of £327,444 for 2023-24, and an offer of an additional £16,666 towards maintenance of the Historic Environment Record. This amount is comparable to 2022-3, but does not take into account inflation and any increase in salary cost.

Commissions from consultants and developers are anticipated at the same level, or a little more, as 2022-23. The Trust expects to maintain a staffing level of 18 full time equivalent staff during 2023-24, which includes a part time Administrator and Finance Officer. Other temporary staff will be taken on to meet any increased commercial work.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Page 3

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Report of the Trustees for the year ended 31 March 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

Gwynedd Archaeological Trust Limited is a charitable Trust and a company limited by guarantee and not having a share capital. It is governed by Memorandum and Articles of Association dated 13 May 1974, updated at the Annual General Meeting (AGM) in August 2014.

The objective of the Trust is to advance the education of the public in archaeology. This is undertaken by means of the provision of a Historical Environment service, undertaking archaeological excavation and survey, encouraging community involvement and the dissemination of the results of such work through reports, publications, lectures, field excursions and similar means. There have been no material changes in policy since the last Trustees' report.

The Board of Trustees is responsible for overseeing the work of the Trust and monitors activities through a management committee and a finance sub-committee that has responsibility for overseeing the financial management of the Trust. The number of full-time employees during the year ended 31 March 2022 was 14 and there were 6 part time employees and 2 temporary members of staff. The Chief Archaeologist is responsible for the overall day to day management of the Trust.

The Trustees may from time to time, and at any time, appoint a Trustee, either to fill a casual vacancy or by way of addition to the Board of Trustees, provided that the prescribed maximum be not thereby exceeded. Any member so appointed shall retain his/her office only until the next AGM, but he/she shall then be eligible for re-election.

No person shall, unless recommended by the Trustees for election, be eligible for election as a Trustee at any General Meeting, unless within the prescribed time before the day appointed for the meeting there shall have been given to the Secretary notice in writing, by some member duly qualified to be present and vote at the meeting for which such notice is given, of his/her intention to propose such person for election, and also notice in writing, signed by the person to be proposed, of his/her willingness to be elected. The prescribed time above mentioned shall be such that, between the date when the notice is serviced or deemed to be served, and the day appointed for the meeting there shall be no less than four, nor more than twenty-eight intervening days.

Prior to appointment, new Trustees are provided with a job description and information packs detailing Trust constitution, structure, key current objectives, and copies of recent Annual Reports and Accounts, as well as literature on the responsibilities of being Charity Trustees. Each new Trustee is required to make a signed declaration of commitment and qualification for Trusteeship. An induction includes a review of company/charity history, structure and organisation, role of the trustees, trust business cycles, staffing, policies, financial management and control practices, forward strategies, current operations plan, and the purpose and function of the GAT HER Charitable Trust. Trustees are made aware of the wide range of guidance available from the Charity Commission in both hard copy and digital forms.

The Trustees are empowered to invest the monies of the Trust not immediately required for its purposes in or upon such investment securities or property as may be determined from time to time subject to the condition that such investments are calculated to further the objects of the Trust as defined in the governing instrument, being the Memorandum and Articles of Association of the Gwynedd Archaeological Trust.

No Trustee has an interest in the company which is limited by guarantee.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

01180515 (England and Wales)

Registered Charity number

508849

Registered office

Craig Beuno Garth Road Bangor LL57 2RT

Page 4

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Report of the Trustees for the year ended 31 March 2023

Trustees

Dr F A Richardson Mrs F E Gale Dr G Robinson Dr D M Roberts D G Elis-Williams Mrs F L Llewellyn Mr John Ratcliffe Mr Hywl Lloyd Davies (appointed 8 March 2023) Mr Huw John Pritchard (appointed 8 March 2023) Company Secretary A F Davidson

Auditors Bennett Brooks & Co Ltd Chartered Accountants & Statutory Auditors 19 Trinity Square Llandudno CONWY LL30 2RD Bankers National Westminster Bank plc Menai Business Centre Menai Bridge Anglesey LL59 5WY Solicitors Parry Davies Clwyd-Jones 123 High Street Bangor LL57 1NT

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Gwynedd Archaeological Trust Ltd A company limited by guarantee for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

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

Page 5

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Report of the Trustees for the year ended 31 March 2023

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

In so far as the trustees are aware:

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on ............................................. and signed on the board's behalf by:

..............................................................................

D G Elis-Williams - Trustee

Page 6

Report of the Independent Auditors to the Members of Gwynedd Archaeological Trust Ltd A company limited by guarantee

Opinion

We have audited the financial statements of Gwynedd Archaeological Trust Ltd A company limited by guarantee (the 'charitable company') for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the 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 Report of the Trustees.

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

Page 7

Report of the Independent Auditors to the Members of Gwynedd Archaeological Trust Ltd A company limited by guarantee

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to UK tax legislation and regulations which govern the preparation of financial statements, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue, through management bias in manipulation of accounting estimates or accounting for significant transactions outside the normal course of business. Audit procedures performed included:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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 Report of the Independent Auditors.

Use of our report

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

Jason Leach FCA (Senior Statutory Auditor) for and on behalf of Bennett Brooks & Co Ltd Chartered Accountants & Statutory Auditors 19 Trinity Square Llandudno CONWY LL30 2RD

Date: .............................................

Page 8

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the year ended 31 March 2023

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
185
Charitable activities
5
414,632
Investment income
4
2,439
Other income
1,141
Total
418,397
EXPENDITURE ON
Raising funds
6
-
Charitable activities
7
516,393
Total
516,393
NET INCOME/(EXPENDITURE)
(97,996)
Transfers between funds
16
117,517
Other recognised gains/(losses)
Actuarial gains on defined benefit schemes
368,000
Net movement in funds
387,521
RECONCILIATION OF FUNDS
Total funds brought forward
421,604
TOTAL FUNDS CARRIED FORWARD
809,125		 Restricted
funds
£
1,795
361,283
-
-
363,078
-
245,561
245,561
117,517
(117,517)
-
-
10,000
10,000		 2023
Total
funds
£
1,980
775,915
2,439
1,141
781,475
-
761,954
761,954
19,521
-
368,000
387,521
431,604
819,125		 2022
Total
funds
£
52
1,000,849
437
1,237
1,002,575
-
893,348
893,348
109,227
-
256,000
365,227
66,377
431,604

The notes form part of these financial statements

Page 9

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Statement of Financial Position 31 March 2023

Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets
13
320,409
CURRENT ASSETS
Debtors
14
121,879
Cash at bank and in hand
411,387
533,266
CREDITORS
Amounts falling due within one year
15
(44,550)
NET CURRENT ASSETS
488,716
TOTAL ASSETS LESS CURRENT LIABILITIES
809,125
PENSION LIABILITY
17
-
NET ASSETS
809,125
FUNDS
16
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Restricted
funds
£
-
-
10,000
10,000
-
10,000
10,000
-
10,000		 2023
Total
funds
£
320,409
121,879
421,387
543,266
(44,550)
498,716
819,125
-
819,125
809,125
10,000
819,125		 2022
Total
funds
£
298,267
178,618
530,657
709,275
(59,938)
649,337
947,604
(516,000)
431,604
421,604
10,000
431,604

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

............................................. D G Elis-Williams - Trustee

The notes form part of these financial statements

Page 10

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Statement of Cash Flows for the year ended 31 March 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period		 2023
£
(70,785)
(701)
(71,486)
(40,223)
2,439
(37,784)
(109,270)
530,657
421,387		 2022
£
131,928
(728)
131,200
(590)
437
(153)
131,047
399,610
530,657

The notes form part of these financial statements

Page 11

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Notes to the Statement of Cash Flows for the year ended 31 March 2023

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Interest received
Interest paid
Decrease in debtors
(Decrease)/increase in creditors
Difference between pension charge and cash contributions
Net cash (used in)/provided by operations		 2023
£
19,521
18,081
(2,439)
701
56,739
(15,388)
(148,000)
(70,785)		 2022
£
109,227
9,199
(437)
728
10,292
15,919
(13,000)
131,928

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.22 Cash flow At 31.3.23
£ £ £
Net cash
Cash at bank and in hand 530,657 (109,270) 421,387
530,657 (109,270) 421,387
Total 530,657 (109,270) 421,387

The notes form part of these financial statements

Page 12

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Notes to the Financial Statements for the year ended 31 March 2023

1. GENERAL INFORMATION

The Trust is a private company limited by guarantee and a charity registered in England and Wales.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The directors/trustees have reviewed the cash resources of the Trust for the foreseeable future, and considering any potential adverse impact to the charitable company's income, consider that the accounts being prepared on a Going Concern basis is appropriate.

Critical accounting judgements and key sources of estimation uncertainty

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

i. Defined benefit pension scheme

The company has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends. For details of assumptions adopted, see note 17. Judgement is also applied to determine the level of recognition of any pension surplus. Due to uncertainty over the Trust's ability to benefit from the surplus in the long term, management judged that it should not be recognised at this stage.

Incoming resources

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

Income from charitable activities includes grant funding and income under contract.

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate costs related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

Charitable activities include expenditure associated with archaeological projects and include the direct costs and support costs relating to those activities.

Governance costs are costs associated with the general running of the charity.

Allocation and apportionment of costs

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

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use.

The cost of minor additions or those costing below £1,000 are not capitalised.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Freehold property 50 years
Motor vehicles 5 years
Equipment 3 - 5 years

continued...

Page 13

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Notes to the Financial Statements - continued for the year ended 31 March 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets

On transtition to FRS102 the previously revalued freehold property became the deemed cost.

Taxation

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

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The company operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The cost of providing benefits under the defined benefit plan is determined using the projected unit method,which attributes entitlement to benefits to the current period (to determine current service cost) and to the current and prior periods (to determine the present value of defined benefit obligations) and is based on actuarial advice. Past service costs are recognised in statement of financial activities on a straight-line basis over the vesting period or immediately if the benefits have vested. When a settlement or a curtailment occurs the change in the present value of the scheme liabilities and the fair value of the plan assets reflects the gain or loss which is recognised in the statement of financial activities. Losses are measured at the date that the employer becomes demonstrably committed to the transaction and gains when all parties whose consent is required are irrevocably committed to the transaction.

The interest element of the defined benefit cost represents the change in present value of scheme obligations relating from the passage of time and is determined by applying the discount rate to the opening present value of the benefit obligation, taking into account material changes in the obligation during the year. The expected return on plan assets is based on an assessment made at the beginning of the year of long-term market returns on scheme assets, adjusted for the effect on the fair value of plan assets of contributions received and benefits paid during the year. The difference between the expected return on plan assets and the interest cost is recognised in the statement of financial activities as other finance income or expense. Actuarial gains and losses are recognised in full in the statement of financial activities in the period in which they occur.

The defined benefit pension asset or liability in the statement of financial position comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds that have been rated at AA or equivalent status), less any past service cost not yet recognised and less the fair-value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

continued...

Page 14

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Notes to the Financial Statements - continued for the year ended 31 March 2023

3.
DONATIONS AND LEGACIES
Legacies
4.
INVESTMENT INCOME
Deposit account interest
5.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Grants from Cadw
Other grants
Private archaeological projects
Subscriptions/friends income
6.
RAISING FUNDS
Raising donations and legacies
7.
CHARITABLE ACTIVITIES COSTS
Direct
Costs
£
575,796		 2023
£
1,980
2023
£
2,439
2023
£
352,869
8,250
414,632
164
775,915
2023
£
Support
costs (see
note 8)
£
186,158		 2022
£
52
2022
£
437
2022
£
378,478
30,000
591,192
1,179		 2022
£
52
2022
£
437
1,000,849
2022
£
Totals
£
761,954		 2022
£

Page 15

continued...

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Notes to the Financial Statements - continued for the year ended 31 March 2023

8. SUPPORT COSTS

Governance
Management Other costs Totals
£ £ £ £
143,707 4,022 38,429 186,158

9. NET INCOME/(EXPENDITURE)

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

2023 2022
£ £
Auditors' remuneration 4,500 5,860
Auditors' remuneration for non audit work 1,700 -
Depreciation - owned assets 18,081 9,199
Other operating leases 3,844 3,985

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.

11. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Chief Executive
Heritage management
Archaeological projects
Administration and support		 2023
£
509,955
46,820
9,591
566,366
2023
1
6
9
2
18		 2022
£
575,446
47,304
55,304
678,054
2022
1
6
11
2
20

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

Page 16

continued...

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Notes to the Financial Statements - continued for the year ended 31 March 2023

12.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
54
Charitable activities
593,454
Investment income
437
Other income
1,237
Total
595,182
EXPENDITURE ON
Raising funds
-
Charitable activities
485,955
Total
485,955
NET INCOME
109,227
Transfers between funds
(10,000)
Other recognised gains/(losses)
Actuarial gains on defined benefit schemes
256,000
Net movement in funds
355,227
RECONCILIATION OF FUNDS
Total funds brought forward
66,377
TOTAL FUNDS CARRIED FORWARD
421,604
13.
TANGIBLE FIXED ASSETS
Freehold
property
Equipment
£
£
COST
At 1 April 2022
350,000
134,564
Additions
-
40,223
At 31 March 2023
350,000
174,787
DEPRECIATION
At 1 April 2022
54,603
131,694
Charge for year
2,000
16,081
At 31 March 2023
56,603
147,775
NET BOOK VALUE
At 31 March 2023
293,397
27,012
At 31 March 2022
295,397
2,870		 Restricted
funds
£
(2)
407,395
-
-
407,393
-
407,393
407,393
-
10,000
-
10,000
-
10,000
Motor
vehicles
£
20,941
-
20,941
20,941
-
20,941
-
-		 Total
funds
£
52
1,000,849
437
1,237
1,002,575
-
893,348
893,348
109,227
-
256,000
365,227
66,377
431,604
Totals
£
505,505
40,223
545,728
207,238
18,081
225,319
320,409
298,267

continued...

Page 17

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Notes to the Financial Statements - continued for the year ended 31 March 2023

13. TANGIBLE FIXED ASSETS - continued

In March 2022, the freehold property was valued at £300,000 (market value) which is not materially different to the carrying value in the financial statements.

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Other debtors
Prepayments and accrued income
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Social security and other taxes
VAT
Other creditors
Accruals and deferred income		 2023
£
46,212
69,717
5,950
121,879
2023
£
9,983
-
29,467
-
5,100
44,550		 2022
£
104,325
67,931
6,362		 2022
£
104,325
67,931
6,362
178,618
2022
£
15,121
3,036
33,367
3,314
5,100
59,938

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

16. MOVEMENT IN FUNDS

MOVEMENT IN FUNDS
Net Transfers
movement between
At 1.4.22 in funds funds At 31.3.23
£ £ £ £
Unrestricted funds
General fund 421,604 270,004 117,517 809,125
Restricted funds
Restricted fund - 117,517 (117,517) -
TA Roberts legacy 10,000 - - 10,000
10,000 117,517 (117,517) 10,000
TOTAL FUNDS 431,604 387,521 - 819,125
Net movement in funds, included in the above are as follows:
Incoming Resources Gains and Movement
resources expended losses in funds
£ £ £ £
Unrestricted funds
General fund 418,397 (516,393) 368,000 270,004
Restricted funds
Restricted fund 363,078 (245,561) - 117,517
TOTAL FUNDS 781,475 (761,954) 368,000 387,521

continued...

Page 18

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Notes to the Financial Statements - continued for the year ended 31 March 2023

16. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

At 1.4.21
£
Unrestricted funds
General fund
66,377
Restricted funds
TA Roberts legacy
-
TOTAL FUNDS
66,377
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
595,182
Restricted funds
Restricted fund
407,393
TOTAL FUNDS
1,002,575		 Net
movement
in funds
£
365,227
-
365,227
Resources
expended
£
(485,955)
(407,393)
(893,348)		 Transfers
between
funds
£
(10,000)
10,000
-
Gains and
losses
£
256,000
-
256,000		 At 31.3.22
£
421,604
10,000
431,604
Movement
in funds
£
365,227
-
365,227
A current year 12 months and prior year 12 months combined position is as follows:
Net
movement
At 1.4.21
in funds
£
£
Unrestricted funds
General fund
66,377
635,231
Restricted funds
Restricted fund
-
117,517
TA Roberts legacy
-
-
-
117,517
TOTAL FUNDS
66,377
752,748		 Transfers
between
funds
At 31.3.23
£
£
107,517
809,125
(117,517)
-
10,000
10,000
(107,517)
10,000
-
819,125		 Transfers
between
funds
At 31.3.23
£
£
107,517
809,125
(117,517)
-
10,000
10,000
(107,517)
10,000
-
819,125
10,000
819,125

continued...

Page 19

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Notes to the Financial Statements - continued for the year ended 31 March 2023

16. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming Resources Gains and Movement
resources expended losses in funds
£ £ £ £
Unrestricted funds
General fund 1,013,579 (1,002,348 ) 624,000 635,231
Restricted funds
Restricted fund 770,471 (652,954) - 117,517
TOTAL FUNDS 1,784,050 (1,655,302 ) 624,000 752,748

The restricted funds set out above principally relate to CADW projects with the restriction being that these funds should be spent in accordance with the grant application.

TA Roberts Legacy

The TA Roberts legacy represents the proceeds of a legacy provided to further archeological research on Anglesey. None of these funds have been spent at the year end.

The pension provisions are held in the unrestricted fund. Through the apportionment of overheads, restricted activities make a contribution to the deficit reduction, but it is not possible to calculate what portion of the provision or liability would be attributable to the restricted fund in the Statement of Financial Activities.

17.

EMPLOYEE BENEFIT OBLIGATIONS

The Trust is a member of a multi-employer defined benefit pension scheme for the benefit of the employees of a number of archaeological organisations, the Archaeological Organisations Pension Scheme (AOPS). The scheme is shared by three other charities and requires contributions to be made to a separately administered pension fund. The assets of the scheme are invested and managed independently of the finances of the Trust. The latest triennial actuarial valuation using the Projected Unit Method was undertaken by an independent qualified Actuary, Aviva, as at 5 April 2021.

The company has 7 employees in the AOPS (2022 - 7). At 6 April the scheme had a total 22 members still in employment and 52 members with preserved benefits.

The Trust has ceased contributions to the scheme for enrolled members as at 31 July 2018, this was after a consultation between the four Welsh Archaeological Trusts to cease the defined benefit contribution scheme from 1 August 2018.

The pension scheme triennial valuation as at 5 April 2021, updated to June 2022, shows a deficit of £6,600,000. There is a recovery plan in place to seek to eliminate the deficit and it was agreed that the Trusts will contribute a combined one off lump sum payment of £400,000 by 1 July 2022 alongside annual contributions of £163,417 per annum, from 6 April 2022 to 5 April 2042 inclusive, increasing by 3% pa effective from 6 April 2023. Gwynedd Archeological Trust's share of these amounts is £125,000 towards the lump sum and £35,356 per annum towards the annual contributions.

Payment of the above rate (plus members' contributions and the premiums required for the insurance of death in service benefits) will ensure that the benefits promised under the Scheme can be provided as they fall due. If the assumptions are borne out in practice. The contribution rates are based on the assumption that all members who joined before 6 April 2000 exercise their right to retire at the age of 60 (or their next birth date if over the age of 60 at the valuation date).

Members of the AOPS accrue an indexed linked pension of 1/60th of final pensionable salary for each year in the scheme up to 6 April 2008 and 1/80th for each year since.

The Archaeological Organisations Pension Scheme has embarked on a review of the scheme rules, which includes reviewing the validity of past decisions. A potential ambiguity is under discussion with the scheme's lawyers. The likelihood and quantum of any liability on the employers is unclear.

The latest triennial actuarial valuation was undertaken by an independent qualified actuary. The update valuation as at 5 April 2021 showed:

£

£

continued...

Page 20

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Notes to the Financial Statements - continued for the year ended 31 March 2023

17. EMPLOYEE BENEFIT OBLIGATIONS - continued

Value of assets 12,900,000
Active members 7,000,000
Members with preserved benefits 8,800,000
Pensioners paid from the fund 1,600,000
Guaranteed Minimum Pensions (GMP) equalization 100,000
17,500,000
Deficit 4,600,000

A valuation has been obtained at 31 March 2023 to ascertain the proportion of the defined benefit scheme assets, liabilities, income and costs attributable to the Trust.

2023 2022
Amounts recognised in the Statement of Financial Activities £ £
Past service cost - -
Non investment expenses 7,000 11,000
Expected return on plan assets (73,000) (53,000)
Interest cost 85,000 68,000
Total charged to charitable expenditure 19,000 26,000
2023 2022
Amounts taken to other comprehensive income £ £
Return on assets excluding amounts included in net interest (376,000) (20,000)
Actuarial changes related to obligations 971,000 276,000
Actuarial gain/(loss) recognised in other gains/(losses) 595,000 256,000
Restriction of pension surplus (227,000) -
Total recognised in other gains/(losses) 368,000 256,000

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

The amounts included in the balance sheet arising from the company's obligations in
follows:		 respect of defined benefit plans are
2023 2022
£ £
Present value of defined benefit obligations (2,236,000 ) (3,189,000 )
Fair value of plan assets 2,463,000 2,673,000
Restriction of pension surplus (227,000) -
Surplus / (Deficit) in scheme - (516,000)

The Trust has not recognised the surplus due to the uncertainty as to whether it would be returned to the Trust.

2023 2022
£ £
Movements in the present value of defined benefit obligations
Opening defined benefit obligation 3,189,000 3,452,000
Past service cost - -
Interest cost 85,000 68,000
Actuarial losses/(gains) (971,000) (276,000)
Benefits paid (67,000) (55,000)

continued...

Page 21

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Notes to the Financial Statements - continued for the year ended 31 March 2023

17. EMPLOYEE BENEFIT OBLIGATIONS - continued

2,236,000 3,189,000
2023 2022
Movements in the fair value of plan assets £ £
Opening fair value of scheme assets 2,673,000 2,667,000
Contributions by employer 167,000 39,000
Non investment expenses (7,000) (11,000)
Expected return 73,000 53,000
Actuarial gains/(losses) (376,000) (20,000)
Benefits paid (67,000) (55,000)
2,463,000 2,673,000

The actual return on scheme assets was a loss of £449,000.

2023 2022
Composition of plan assets: £ £
Equities 965,000 1,017,000
Bonds 636,000 559,000
Alternatives 418,000 710,000
Annuities 118,000 144,000
Cash 246,000 243,000
Property 80,000 -
2,463,000 2,673,000

Principal actuarial assumptions at the Statement of Financial Position date (expressed as weighted averages):

2023 2022
Discount rate 4.70% 2.70%
Price inflation (RPI) 3.50% 3.70%
Price inflation (CPI) 2.90% 3.00%
Deferred revaluation 2.90% 3.00%
Pension increases - RPI up to 5% 3.40% 3.50%
Mortality - pre retirement Nil Nil
S3PA tables based on year of S3PA tables based on year of
birth, allowing for CMI 2020 birth, allowing for CMI 2020
improvements with a 1.25% pa improvements with a1.25% pa
Mortality - post retirement long term trend rate long term trend rate
Cash commutation 90% of maximum available 90% of maximum available
Life expectancy:
Current pensioners age 65 - males 22.0 22.0
Current pensioners age 65 - females 24.4 24.3
Future pensioners age 65 (currently age 45) - males 23.3 24.3
Future pensioners age 65 (currently age 45) - females 25.8 25.8

continued...

Page 22

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Notes to the Financial Statements - continued for the year ended 31 March 2023

18. CONTINGENT LIABILITIES

As noted in note 17 the Trust is party to the defined benefit AOPS.

19. RELATED PARTY DISCLOSURES

During the year the Trust was invoiced £100 (2022: £nil) by a Trustee for reporting services. The balance remained outstanding at the year end.

Page 23

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Detailed Statement of Financial Activities for the year ended 31 March 2023

INCOME AND ENDOWMENTS
Donations and legacies
Legacies
Investment income
Deposit account interest
Charitable activities
Grants from Cadw
Other grants
Private archaeological projects
Subscriptions/friends income
Other income
Other income resources
Furlough income
Total incoming resources
EXPENDITURE
Charitable activities
Wages and salaries
Employer's NIC
Pensions
Motor and travel costs
Project on costs
Training
Meetings and conferences
Materials
Defined benefit plan costs
Depreciation of tangible fixed assets
Support costs
Management
Wages and salaries
Employer's NIC
Pensions
Other operating leases
Premises and rental
Insurance
Repairs and maintenance
Telephone
Stationery, postage and sundries
Advertising
Depreciation of tangible and heritage assets		 2023
£
1,980
2,439
352,869
8,250
414,632
164
775,915
1,141
-
1,141
781,475
437,368
39,883
6,790
43,992
9,790
1,420
695
777
19,000
16,081
575,796
72,587
6,937
2,801
3,844
17,281
12,341
6,037
8,411
11,440
28
2,000
143,707		 2022
£
52
437
378,478
30,000
591,192
1,179
1,000,849
262
975
1,237
1,002,575
487,851
43,469
41,499
18,996
115,423
1,240
55
4,706
(13,000)
7,199
707,438
87,595
3,835
13,805
3,985
11,319
10,037
9,858
8,515
8,705
-
2,000
159,654

This page does not form part of the statutory financial statements

Page 24

Gwynedd Archaeological Trust Ltd A company limited by guarantee

Detailed Statement of Financial Activities for the year ended 31 March 2023

Detailed Statement of Financial Activities
for the year ended 31 March 2023
Management
Other
Library and subscriptions
Bank charges & interest
Governance costs
Auditors' remuneration
Auditors' remuneration for non audit work
Legal & professional fees
Total resources expended
Net income		 2023
£
3,321
701
4,022
4,500
1,700
32,229
38,429
761,954
19,521		 2022
£
1,245
728
1,973
5,860
-
18,423
24,283
893,348
109,227

This page does not form part of the statutory financial statements

Page 25