**CHARITY REGISTRATION NUMBER: 518440**
## **The Nostell Trust Unaudited Financial Statements 5 April 2024**
**HARRISON HOLT**
Chartered Accountants High Park Farm Kirkbymoorside York YO62 7HS
## **The Nostell Trust**
## **Financial Statements**
## **Year ended 5 April 2024**
||**Page**|
|---|---|
|Trustees' annual report|**1**|
|Independent examiner's report to the trustees|**8**|
|Statement of financial activities|**9**|
|Statement of financial position|**10**|
|Notes to the financial statements|**11**|
## **The Nostell Trust**
## **Trustees' Annual Report**
## **Year ended 5 April 2024**
The trustees present their report and the unaudited financial statements of the charity for the year ended 5 April 2024.
The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" in preparing the annual report and financial statements of the charity.
The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity's governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.
## **Reference and administrative details**
|**Reference and administrative**|**details**|
|---|---|
|**Registered charity name**|The Nostell Trust|
|**Charity registration number**|518440|
|**Principal office**|The Estate Office|
||East Newton Hall Farm|
||Oswaldkirk|
||York|
||YO62 5YE|
|**The trustees**|Mr G G Winn-Darley|
||Mrs M F Black|
||Mr T A H Scott|
||Mr D E Smart|
|**Investment managers**|Ruffer LLP|
||80 Victoria Street|
||London|
||SW1E 5JL|
|**Company secretary**|Mrs H Copley|
|**Independent examiner**|Philip Holt FCA FCIE|
||High Park Farm|
||Kirkbymoorside|
||York|
||YO62 7HS|
**- 1 -**
## **The Nostell Trust**
## **Trustees' Annual Report** _**(continued)**_
## **Year ended 5 April 2024**
## **Structure, governance and management**
The Nostell Trust (the Charity) is a charitable trust and was registered under the Charities Act 1960, number 518440, on 6 February 1987. It is governed by the trust deed dated 24 June 1986.
The Nostell Trust was created by the Right Hon. 6th Baron St. Oswald (under his then name of the Honourable Charles Rowland Andrew Winn) on 24 June 1986 when cash of £100 was settled. On 3 July 1986 he assigned to the Charity a 99-year lease of the Stable Block at Nostell and made a further gift to the Charity of £1,200,000. On 20 December 2002, the Trustees transferred this lease to the National Trust for nil consideration.
The Charity consists of two separate funds, the Priory Fund and the Heritage Properties Fund.
On 5 July 2023, the Trustees executed a deed of appointment amending the trust deed to modernise the Trustees' investment powers and the provisions relating to the examination of the Charity's annual report and financial statements.
## **New trustees**
The power to appoint new Trustees is as follows:
- The power to appoint the successors to Mr G G Winn Darley and Mr T A H Scott and their successors is vested in the person entitled to the Barony of St Oswald.
- The power to appoint the successor to Mr D E Smart and his successors is vested in the National Trust with the consent of the person entitled to the Barony of St Oswald.
- The power to appoint the successor to Mrs M F Black and her successors is vested in the person entitled to the Barony of St Oswald and in the National Trust jointly.
New Trustees receive induction material and training and throughout their appointment receive additional training as appropriate. The new trustee has received suitable induction material.
The Trustees meet annually with additional meetings held to discuss issues as they arise.
There are no employees of the Charity. Administration services are provided by the Nostell Estate. These comprise maintaining the routine day to day accounting records of the Charity and secretarial services for the meetings of the Trustees. A fee of £500 (2023 - £500) was charged for these services.
## **Risk management**
The Trustees have examined the major strategic, business and operational risks which the Charity faces and confirm that a system is in place for regular reports to be produced so that the necessary steps can be taken to lessen these risks.
The Trustees consider the potential variability of investment returns from the investment portfolio to constitute the Charity's major risk. They have employed the services of professional investment managers to advise them in an effort to mitigate the risk.
**- 2 -**
## **The Nostell Trust**
## **Trustees' Annual Report** _**(continued)**_
## **Year ended 5 April 2024**
## **Objectives and activities**
The main objects of the Charity are the preservation of Nostell Priory and its surrounding land, lakes and buildings, the protection of the ecological environment there and the education of the public in the architectural and historic merit of the buildings and the artistic merit of the contents.
The capital and income of the Priory Fund are, inter alia, to be utilised for the maintenance and enhancement of Nostell Priory and full details are set out in the trust deed. The capital and income of the Heritage Properties Fund may be appointed for the upkeep, maintenance and preservation of buildings designated as Nostell Heritage Properties. However, by unanimous decision, the Trustees may apply the Priory Fund for the purposes of the Heritage Properties Fund and vice versa.
The Charity carries out its objects by making grants to the National Trust, which owns Nostell Priory and its surrounding land, lakes and buildings. The Charity receives from the National Trust applications for assistance in meeting the costs of maintaining Nostell Priory and of opening it to the public and for funding of projects at or within the area surrounding Nostell Priory. These applications are usually received annually, but can be more frequent. Applications are for both capital and revenue expenditure. The Trustees consider applications and approve those that they consider meet the Charity's objectives, for which funds are available, and (save in exceptional circumstances) do not unduly inhibit the Trustees' ability to approve future applications.
## **Public Benefit**
The Trustees confirm that they have paid due regard to the Charity Commission's guidance on public benefit in making distributions from the Charity.
The following summary demonstrates the benefit to the wider public from the grants made by the Trustees to the National Trust.
Nostell Priory and its surrounding area is opened to the general public by the National Trust throughout the year. The house was built in the mid 18th century to plans modified by James Paine, who was employed there for over 30 years from 1736, who was also responsible for some of the interiors. Robert Adam was commissioned to complete the interior, and he also designed part of the Stable Block, the lodges in the park and one wing of the house. Much of the furniture within the Priory was specifically designed for the property by Thomas Chippendale.
This remarkable property and its contents are owned by the National Trust which preserves and maintains it, and admits the public to it. It is clearly for the benefit of the wider public to preserve this historic building and its surrounding landscape, and to encourage public admission to it for the purposes of appreciation and education.
The Trustees of the Charity believe that the objects of the Charity can best be achieved by making grants to the National Trust to assist it in maintaining the property and to support the National Trust's property opening operation at Nostell.
## **Reserves policy**
Trustees have a reserves policy which aims to maintain unrestricted funds, which are the free reserves of the Charity, at a minimum level. This is to allow sufficient funds to be available for necessary governance and support costs and to honour existing commitments to provide for grants to the National Trust. The level of free unrestricted reserves, being the current assets less the current liabilities at 5 April 2024, stood at a surplus of £50,512 (2023 - £148,275) which represented around 21 months (2023 - 78 months) of governance and support costs.
**- 3 -**
## **The Nostell Trust**
## **Trustees' Annual Report** _**(continued)**_
## **Year ended 5 April 2024**
## **Achievements and performance**
The charitable activities consist of the payment of grants to The National Trust. The grants paid and payable to The National Trust for the year were £122,000 (2023 - £130,000)
The Trustees met in June 2023 and received reports from the team at the National Trust who requested grant funding in the year to 5 April 2024 of £122,000.
## **Investment policy and performance**
The investment strategy is set by the Trustees for a period of five years and takes account of recent demand for funds. The Trustees approved and signed a new Investment Policy with Ruffer LLP, the investment managers, on 22 February 2018.
The Trustees have concluded that the objects of the Nostell Trust can best be achieved by a policy aimed at preserving the real (i.e. adjusted for inflation) value of the trust fund in the longer term. They have taken advice from their investment managers and have decided to adopt the policy of making available for distribution each year 2% to 3% of the value of the trust fund, to be drawn from income and capital as the trustees think fit.
The Trustees hope that such an approach will enable them to maintain distributions averaging in the region of £100,000 to £140,000 annually.
The Trustees review the sustainability of distributions at this level annually with their investment advisers. If markets rise this may lead to incremental increases in the amount available for distribution to the National Trust. Likewise, if markets fall back, then the level of distributions may be slightly lower. If there is a substantial recession or bear market, the Trustees may reconsider whether to make any distributions from capital until markets recover.
The Trustees recognise that, whilst it is in the best interests of all concerned that they should formulate a policy for future distributions, they nevertheless retain all the discretions given to them by the Trust Deed. Accordingly, they will consider any proposals for funding that the National Trust put to them, and may deviate from their policy if in their absolute discretion they decide this is merited. The Trustees would consider with very great care any request to distribute additional capital, and would weigh up the benefits of the works to be funded by such a distribution against the loss of future income and potential capital growth which would result from it.
During the prior year, the Trustees, with the aim of reducing the complexity of the charity records (and keeping governance costs down) resolved, on advice from the Investment Manager that their investment strategy was closely aligned with that of the Ruffer Total Return C Income Fund, to place all the charity investments within that fund.
During the current year, the Investment Advisers changed this to the Charity Asset Trust C Income Fund.
## **Investment report**
Ruffer LLP started managing (on a discretionary basis) the Charity's main portfolio in August 2012. For the period from 1 April 2023 to 31 March 2024, the portfolio produced a total annualised positive return of 4.3% (2023 - total positive return of 0.1%) with a cumulative total return (allowing for withdrawals) since August 2012 of +64.1% (2023 +78.2%).
The total value of the Charity's investment assets, including cash, held by Ruffer was £4,960,331 (2023: £5,404,913) as at 5 April 2024.
**- 4 -**
## **The Nostell Trust**
## **Trustees' Annual Report** _**(continued)**_
## **Year ended 5 April 2024**
## **Achievements and performance** _**(continued)**_
The Investment Managers' report to the Trustees on the managed discretionary portfolio was as follows:
_"For the 12-month period ending 5 April 2024, the total return of the portfolio was -6.8% (2023: +0.5%)(net of all fees) made up from income returns of 1.8% (2023: 3.2%) less 8.6% (2023: less 2.7%) reduction in the capital value of the portfolio._
_Our aim at Ruffer is to preserve the value of portfolios, while over time delivering returns meaningfully ahead of cash. We are very aware that the negative return over the period is disappointing, and we are sorry we have failed to meet our investment objectives._
_Uncertainty was largely the theme at the start of 2023, with market sentiment swinging from optimism to fear in a matter of months. We believed that the sharp rise in interest rates would uncover cracks in a financial system that had come to rely on low rates for over a decade. In March this pressure told, with first Silicon Valley Bank and then Credit Suisse at the forefront of the worst banking crisis since 2008. Before equity markets could fall far enough for our protective positions to kick in, policymakers reacted quickly to ease the pressure in the banking sector. This gave the market confidence that the 'Fed put' was very much in play (the belief that any market crash would be met by ever looser monetary policy) leading to a 12% rally in the S&P 500 in the second quarter. The drag from our portfolio protection was accompanied by pain in our long-dated inflation-linked and conventional bond positions as the Federal Reserve continued to talk tough on keeping interest rates at a higher sustained level to keep inflation under control._
_In the portfolio we had anticipated that any positivity in markets would be the result of improving global growth prospects, which would then benefit the portfolio's economically sensitive commodity and China- exposed equity positions. That did not come to pass. Instead, commodities were one of the few areas of the market actively pricing in a recession in 2023, and China's much vaunted post-covid recovery turned out to be lacklustre. Growth seemed to be limited to the United States and its consumers' capacity to keep spending, and the frenzy around Artificial Intelligence, meaning that the re-risking in asset prices was a largely an American experience that we had little exposure to._
_The third quarter and into the fourth was more encouraging from a portfolio balance perspective. Equity and bond markets began to stutter into September and October as stubborn inflation, a more robust than expected US economy, and unexpectedly high debt issuance from the US Treasury pushed long-dated bond yields higher. This gave us an opportunity to put the portfolio's large cash position to work, adding to long-dated US conventional and inflation-protected bonds at positive real yields. November saw a sharp turnaround with both equity and bond markets rallying sharply on softer inflation prints and hopes that the Federal Reserve would be able to begin cutting interest rates early in 2024. We benefitted from this before trimming the large exposure that we had built up in long-dated bonds in November and December, mindful of how far and fast interest rate expectations had moved._
_At the start of 2024, stickier inflation data, less dovish central bank comments and robust US economic data drove the market to question whether interest rates would be cut as quickly as had been expected. This pushed interest rate expectations higher once again, driving weakness in our remaining long-dated UK inflation-protected bonds and our Japanese yen positions. Pleasingly, a better portfolio balance meant our equity and commodity exposure provided some offset. Commodities performed particularly well in the reflation at the beginning of 2024, with gold, silver, copper and oil all contributing to the portfolio's performance._
**- 5 -**
## **The Nostell Trust**
## **Trustees' Annual Report** _**(continued)**_
## **Year ended 5 April 2024**
## **Achievements and performance** _**(continued)**_
_Our firm belief is that stock markets are expensive, extended and vulnerable. In the near term, we see a range of factors that could lead to a rapid reduction in the amount of money in financial markets (liquidity). These include US tax payments and the end of the Fed's special stimulus arrangements, originally launched in response to the regional banking crisis. This could drive asset prices sharply lower. Alternatively, a 'no landing' scenario - in which US inflation never really slows down and global growth picks up - is entirely plausible, especially if central banks are committed to easing. If rates do come down prematurely, inflation could become more of a problem. But if rates remain elevated, there is a greater chance that they start to break things. That is not to mention the panoply of geopolitical risks - from Ukraine to the South China Sea via the Middle East - which could yet deliver shocks to markets priced for perfection. With investor sentiment bullish and positioning in US equities extended, any sign of market weakness could be quickly magnified._
_Consequently, we continue to hold powerful protective assets. Somewhat counterintuitively, protection is usually cheapest when one needs it most, because markets have become complacent about risks. We believe this is one of those periods. Alongside the suite of derivatives which are held to profit from higher volatility in equity and credit markets, we maintain exposure to the Japanese yen, through holding both Japanese government bonds and yen call options. We have strong conviction that these assets will be highly protective should we see a serious market correction or recession. Any material pullback will then give us an opportunity to deploy the c. 50% of the fund in short-dated government bonds to buy attractively priced assets which will drive the next leg of returns, as we have done many times over the past three decades._
_If economies and markets remain buoyant with better-than-expected liquidity and growth, the roughly one third of the portfolio currently invested in equities and commodities should help us make positive progress, especially if the more 'reflationary' dynamic persists._
_Beyond any short-term risks, we remain focused on the big picture. Our core view is that we are entering into an era of higher and more volatile inflation. The US government is currently adding c $1 trillion of debt every 100 days. The US Congressional Budget Office forecasts - conservatively - that net interest costs will represent 19% of government revenue next year, and 35% by 2054. Investors are rightly refocusing on central banks' unofficial - but central - role: keeping government debt markets functioning and interest costs under control. If forced to choose between allowing more inflation or compromising financial stability, central banks will elect for the former, actively suppressing rates below the level of inflation. With powerful positions ranging from precious metals and other commodities to inflation-protected bonds and derivatives, the portfolio is well positioned for a rapidly changing world._
_RUFFER LLP May 2024"_
## **Financial review**
The funds of the Charity at 5 April 2024 amounted to £5,010,843 (2023 - £5,554,187). These funds generate income and capital gains which are used to meet the objects of the Charity.
Net expenditure before investment gains and losses amounted to £98,762 (2023 - £12). Realised and unrealised gains on the investments amounted to £444,582 (2023 - £146,122). The funds of the Charity reduced by £543,344 (2023 - reduced by £146,110) over the year.
**- 6 -**
## **The Nostell Trust**
**Trustees' Annual Report** _**(continued)**_
## **Year ended 5 April 2024**
## **Plans for future periods**
The charity will continue to hold an annual meeting to review the performance of the portfolio and to consider what funds may be made available to The National Trust for the preservation of Nostell Priory and its contents and to support their operation at that property.
The trustees' annual report was approved on 24 June 2024 and signed on behalf of the board of trustees by:
## **MR G G WINN-DARLEY**
Trustee
## **MR D E SMART**
Trustee
**- 7 -**
## **The Nostell Trust**
## **Independent Examiner's Report to the Trustees of The Nostell Trust**
## **Year ended 5 April 2024**
I report to the trustees on my examination of the financial statements of The Nostell Trust ('the charity') for the year ended 5 April 2024.
## **Responsibilities and basis of report**
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or
2. the financial statements do not accord with those records; or
3. the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## **PHILIP HOLT FCA FCIE**
Independent Examiner
High Park Farm Kirkbymoorside York YO62 7HS
24 June 2024
**- 8 -**
## **The Nostell Trust**
## **Statement of Financial Activities**
## **Year ended 5 April 2024**
|||**2024**|**2024**|2023|
|---|---|---|---|---|
|||Unrestricted|||
|||funds|**Total funds**|Total funds|
||**Note**|**£**|**£**|£|
|**Income and endowments**|||||
|Investment income|**4**|52,700|**52,700**|153,106|
|||----------------------------|----------------------------|--------------------------------|
|**Total income**||52,700|**52,700**|153,106|
|||============================|============================|================================|
|**Expenditure**|||||
|Expenditure on charitable activities|**5**|(151,462)|**(151,462)**|(153,094)|
|||--------------------------------|--------------------------------|--------------------------------|
|**Total expenditure**||(151,462)|**(151,462)**|(153,094)|
|||================================|================================|================================|
|Net losses on investments|**8**|(444,582)|**(444,582)**|(146,122)|
|||--------------------------------|--------------------------------|--------------------------------|
|**Net expenditure and net movement in funds**||(543,344)|**(543,344)**|(146,110)|
|||================================|================================|================================|
|**Reconciliation of funds**|||||
|Total funds brought forward||5,554,187|**5,554,187**|5,700,297|
|||-----------------------------------------|-----------------------------------------|-----------------------------------------|
|**Total funds carried forward**||5,010,843
=========================================|**5,010,843**
=========================================|5,554,187
=========================================|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
**The notes on pages 11 to 18 form part of these financial statements.**
**- 9 -**
## **The Nostell Trust**
## **Statement of Financial Position**
## **5 April 2024**
|||**2024**||2023|
|---|---|---|---|---|
||**Note**|**£**|**£**|£|
|**Fixed assets**|||||
|Investments|**12**||**4,960,331**|5,404,913|
|**Current assets**|||||
|Debtors|**13**|**–**||70,908|
|Cash at bank and in hand||**53,762**||91,366|
|||----------------------------||--------------------------------|
|||**53,762**||162,274|
|**Creditors: amounts falling due within one year**|**14**|**(3,250)**||(13,000)|
|||----------------------------||--------------------------------|
|**Net current assets**|||**50,512**|149,274|
||||-----------------------------------------|-----------------------------------------|
|**Total assets less current liabilities**|||**5,010,843**|5,554,187|
||||-----------------------------------------|-----------------------------------------|
|**Net assets**|||**5,010,843**|5,554,187|
||||=========================================|=========================================|
|**Funds of the charity**|||||
|Unrestricted funds|||**5,010,843**|5,554,187|
||||-----------------------------------------|-----------------------------------------|
|**Total charity funds**|**15**||**5,010,843**
=========================================|5,554,187
=========================================|
These financial statements were approved by the board of trustees and authorised for issue on 24 June 2024, and are signed on behalf of the board by:
**MR G G WINN-DARLEY** Trustee
**MR D E SMART** Trustee
**The notes on pages 11 to 18 form part of these financial statements.**
**- 10 -**
## **The Nostell Trust**
## **Notes to the Financial Statements**
## **Year ended 5 April 2024**
## **1. General information**
The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is The Estate Office, East Newton Hall Farm, Oswaldkirk, York, YO62 5YE.
## **2. Statement of compliance**
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following the 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 issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## **3. Accounting policies**
## **Basis of preparation**
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain financial assets and liabilities and investment portfolios measured at fair value through income or expenditure.
The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £1.
## **Going concern**
The trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern.
With respect to the next reporting period, the most significant areas of uncertainty that affect the carrying values of assets held by the Trust are the level of investment return and the performance of investment markets (see the investment policy and performance section of the trustees’ annual report and the Fair value of assets and liabilities Note 19 for more information).
**- 11 -**
## **The Nostell Trust**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 5 April 2024**
## **3. Accounting policies** _**(continued)**_
## **Judgements and key sources of estimation uncertainty**
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions which carry the most significant risk of causing a material adjustment to the carrying amounts of assets and liabilities, within the next financial year, are those regarding the level of investment return and the performance of investment markets.
## **Income tax**
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
## **Fund accounting**
Unrestricted funds 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 cost 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.
## **Incoming resources**
All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
- income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
- Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity's right to receive payment is established.
## **Resources expended**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
**- 12 -**
## **The Nostell Trust**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 5 April 2024**
## **3. Accounting policies** _**(continued)**_
## **Resources expended** _**(continued)**_
- expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
- expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
- other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities to which they relate on a reasonable, justifiable and consistent basis.
## **Investments**
Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.
Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.
## **Financial instruments**
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
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 amortised cost with the exception of fixed assets investments which are subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.
## **4. Investment income**
|**Investment income**|||||
|---|---|---|---|---|
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
||Funds|**2024**|Funds|2023|
||£|**£**|£|£|
|Income from listed investments|52,491|**52,491**|153,103|153,103|
|Bank interest receivable|209|**209**|–|–|
|(Losses)/gains on currency|||||
|movements|–|**–**|3|3|
||----------------------------|----------------------------|--------------------------------|--------------------------------|
||52,700|**52,700**|153,106|153,106|
||============================|============================|================================|================================|
**- 13 -**
## **The Nostell Trust**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 5 April 2024**
## **5. Expenditure on charitable activities by activity type**
||Grant funding|Support|**Total funds**|Total fund|
|---|---|---|---|---|
||of activities|costs|**2024**|2023|
||£|£|**£**|£|
|Grants to National Trust|122,000|–|**122,000**|130,000|
|Governance costs|–|29,462|**29,462**|23,094|
||--------------------------------|----------------------------|--------------------------------|--------------------------------|
||122,000|29,462|**151,462**|153,094|
||================================|============================|================================|================================|
## **6. Analysis of support costs**
In the current and previous year, all the support costs were analysed as governance costs as follows:
|
follows:|||
|---|---|---|
||**2024**|2023|
||**£**|£|
|Administration fees|500|500|
|Independent Examiners' fees|2,750|2,500|
|Legal and other professional fees|25,896|20,088|
|Trustees' reimbursed expenses|243|–|
|Other costs of trustees' meetings|65|–|
|Bank charges|8|6|
||----------------------------|----------------------------|
||29,462|23,094|
||============================|============================|
## **7. Analysis of grants**
During the year, a grant of £122,000 was paid to the National Trust (2023 - A grant of £120,000 was paid and a further grant of £10,000 was committed and accrued).
## **8. Net losses on investments**
|**8.**|**Net losses on investments**|||||
|---|---|---|---|---|---|
|||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|||Funds|**2024**|Funds|2023|
|||£|**£**|£|£|
||Gains/(losses) on listed investments|(444,582)|
**(444,582)**|(146,122)|(146,122)|
|||================================|================================|================================|================================|
|**9.**|**Independent examination fees**|||||
|||||**2024**|2023|
|||||**£**|£|
||Fees payable to the independent examiner for:|||||
||Independent examination of the financial|statements||**2,750**
=======================|2,500
=======================|
## **10. Staff costs**
There are no employees of the Charity. Administration services are provided by Nostell Estate. These comprise maintaining the accounting records of the Charity and secretarial services for meetings of the Trustees. A fee of £500 (2023 - £500) was charged for these services.
**- 14 -**
## **The Nostell Trust**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 5 April 2024**
## **11. Trustee remuneration and expenses**
The Trustees did not receive, and were not entitled to receive, any remuneration in the current or previous year. During the year, two trustees were reimbursed travel expenses amounting to £243 (2023 - none of the Trustees were reimbursed for any travel expenses).
## **12. Investments**
|**Investments**||
|---|---|
||**Listed**|
||**investments**|
||**£**|
|**Cost or valuation**||
|At 6 April 2023|**5,404,913**|
|Additions|**4,860,158**|
|Disposals|**(5,404,913)**|
|Fair value movements|**100,173**|
||-----------------------------------------|
|**At 5 April 2024**|**4,960,331**|
||=========================================|
|**Carrying amount**||
|**At 5 April 2024**|**4,960,331**|
||=========================================|
|At 5 April 2023|5,404,913
=========================================|
All investments shown above are held at valuation.
## **Listed investments**
The aggregate market value of listed investments is £4,960,331 (2023: £5,404,913).
## **Financial assets held at fair value**
## Valuation
All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open ended investment companies are at the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).
The significance of financial instruments to the ongoing financial sustainability of the charity is considered in the financial review and investment policy and performance sections of the Trustees' Annual Report.
At the year end, the following investments represented more than 5% of the value of the investment portfolio:
||**2024**|2024|
|---|---|---|
||**£**|%|
|Charity Assets Trust C Income Fund|4,960,331|100%|
||==============|==============|
The investments are allocated between the Priory Fund and the Heritage Properties Fund in the ratio of 3:1.
Unrealised and realised gains on investments are apportioned between the Priory Fund and the Heritage Properties Fund in the ratio 3:1.
**- 15 -**
## **The Nostell Trust**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 5 April 2024**
## **13. Debtors**
|**13.**|**Debtors**|||
|---|---|---|---|
|||**2024**|2023|
|||**£**|£|
||Prepayments and accrued income|**–**|70,908|
|||==============|============================|
|**14.**|**Creditors:** **amounts falling due within one year**|||
|||**2024**|2023|
|||**£**|£|
||Accruals and deferred income|**3,250**|13,000|
|||=======================|============================|
## **15. Analysis of charitable funds**
## **Unrestricted funds**
|**Unrestricted funds**||||||
|---|---|---|---|---|---|
||At|||Gains and|**At**|
||6 April 2023|Income|Expenditure|losses|**5 April 2024**|
||£|£|£|£|**£**|
|Heritage Property Fund|1,388,545|13,175|(37,866)|(111,145)|
**1,252,709**|
|Priory Fund|4,165,642|39,525|(113,596)|(333,437)|
**3,758,134**|
||-----------------------------------------|----------------------------|--------------------------------|--------------------------------|-----------------------------------------|
||5,554,187|52,700|(151,462)|(444,582)|
**5,010,843**|
||=========================================|============================|================================|================================|=========================================|
||At|||Gains and|At|
||6 April 2022|Income|Expenditure|losses|5 April 2023|
||£|£|£|£|£|
|Heritage Property Fund|1,425,073|38,277|(38,274)|(36,531)|
1,388,545|
|Priory Fund|4,275,224|114,829|(114,820)|(109,591)|
4,165,642|
||-----------------------------------------|--------------------------------|--------------------------------|--------------------------------|-----------------------------------------|
||5,700,297|153,106|(153,094)|(146,122)|
5,554,187|
||=========================================|================================|================================|================================|=========================================|
The Heritage Property Fund and the Priory Fund are Designated Funds. The capital and income of the Priory Fund are, inter alia, to be utilised for the maintenance and enhancement of Nostell Priory and full details are set out in the trust deed. The capital and income of the Heritage Properties Fund may be appointed for the upkeep, maintenance and preservation of buildings designated as Nostell Heritage Properties. However, by unanimous decision, the Trustees may apply the Priory Fund for the purposes of the Heritage Properties Fund and vice versa.
**- 16 -**
## **The Nostell Trust**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 5 April 2024**
## **16. Analysis of net assets between funds**
||Unrestricted|**Total Funds**|
|---|---|---|
||Funds|**2024**|
||£|**£**|
|Investments|4,960,331|**4,960,331**|
|Current assets|53,762|**53,762**|
|Creditors less than 1 year|(3,250)|
**(3,250)**|
||-----------------------------------------|-----------------------------------------|
|**Net assets**|5,010,843|**5,010,843**|
||=========================================|=========================================|
||Unrestricted|Total Funds|
||Funds|2023|
||£|£|
|Investments|5,404,913|5,404,913|
|Current assets|162,274|162,274|
|Creditors less than 1 year|(13,000)|
(13,000)|
||-----------------------------------------|-----------------------------------------|
|**Net assets**|5,554,187|5,554,187|
||=========================================|=========================================|
## **17. Fair value of assets and liabilities**
## Exposure to liquidity risk
The liquidity risk exposure of the charity not being able to meet short term financial demands is mitigated by the Charity Secretary receiving, checking and reconciling monthly bank statements for the charity's main bank account and also checking the amount and timing of any pending liabilities.
## Exposure to credit risk
The main debtor of the charity is the accrued investment income on the portfolio assets held by the Charity. The risk of loss arising from the investment manager failing to pay over the income generated by the investment portfolio is considered low as the investment manager is a regulated institution and the income is paid periodically to the charity's bank account.
## Exposure to market risk
Investments represent the majority of the charity's net assets. The risk of a financial loss arising from an investment due to changes in the market are mitigated by the active management of the investment portfolio by a professional investment manager and the diversification of the investment portfolio based on an investment policy approved by the trustees.
Changes in fair values of debtors, creditors & investments due to credit risk There have been no changes in the fair values of basic financial instruments (debtors, creditors and investments) attributable to changes in credit risk.
## **18. Financial instruments**
The carrying amount for each category of financial instrument is as follows:
||**2024**|2023|
|---|---|---|
||**£**|£|
|**Financial assets measured at fair value through income and expenditure**|||
|Financial assets measured at fair value through income and|||
|expenditure|**4,960,331**|5,404,913|
||=========================================|=========================================|
**- 17 -**
## **The Nostell Trust**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 5 April 2024**
## **18. Financial instruments** _**(continued)**_
Financial assets measured at fair value through income and expenditure comprise fixed assets investments.
## **19. Related parties**
During the year, The Nostell Trust paid legal and professional fees to Currey & Co. LLP amounting to £25,896 (2023 - £20,088). Mrs M F Black, a Trustee, is an equity partner in Currey & Co. LLP. There were no balances due to Currey & Co. LLP at 5 April 2024 or 2023. The power to make these payments is contained in the Trust Deed.
Nostell Estate provides administration services to the charity and a charge of £500 (inclusive of VAT) was accrued by the Charity for the current year (2023 - £500). Lord St Oswald, the settlor of the Charity and an individual who has the power to appoint trustees, is sole principal of Nostell Estate. The accrued balance due to Nostell Estate at 5 April 2024 was £500 (2023 - £500).
**- 18 -**