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2021-12-31-accounts

REGISTERED CHARITY NUMBER: 519693

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

THE PICTON CASTLE TRUST

Llewelyn Davies Chartered Accountants / Statutory Auditors Yelverton House St John Street Whitland Carmarthenshire SA34 0AW

THE PICTON CASTLE TRUST

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Page Page Page
Report of the Trustees 1 to 6
Report of the Independent Auditors 7 to 9
Statement of Financial Activities 10
Balance Sheet 11
Cash Flow Statement 12
Notes to the Cash Flow Statement 13
Notes to the Financial Statements 14 to 22
Detailed Statement of Financial Activities 23 to 25

THE PICTON CASTLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees present their report with the financial statements of the charity for the year ended 31 December 2021. 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

1 To preserve the whole of Picton or such parts as are of national, scenic, historical, architectural, aesthetic, scientific or artistic importance.

2 To protect and improve its amenities for the public benefit.

4 To facilitate and encourage access to, and the study and appreciation of, Picton and its chattels by the public.

5 Such other charitable purposes as the trustees shall determine.

The key purposes of the trust are to conserve and protect Picton Castle, its collection and gardens for the benefit of the public, providing access and supporting associated educational activities. The public benefit is met by providing access to the castle and gardens and providing educational support and volunteering opportunities. The trustees have had the benefit of considering the Charity Commission's guidance on public benefit.

Significant activities

The activities undertaken in support of our charitable purposes during 2021 were shaped by the on-going covid restrictions. In Wales indoor and outdoor venues were prohibited from opening from January to March. The re-opening of the site was staggered in the following manner (in compliance with the law): - 31 March - gardens re-open

There were still restrictions on large scale outdoor events until July which meant that we only hosted small scale events and activities through the summer.

During this period a number of staff were on furlough. Staff were brought back into work in successive waves as the various restrictions were lifted over the course of the year. Successful grant applications for support during covid were made to the Welsh Cultural Recovery Fund, the Economic Resilience Fund, Pembrokeshire County Council and covid support was also received from the Wolfson Foundation. This meant that there were no redundancies due to the pandemic.

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THE PICTON CASTLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

OBJECTIVES AND ACTIVITIES

Significant activities (continued)

During 2021 further progress was made in promoting the objectives of the trust, in the following manner.

Objectives 1, 2 & 3

The project to restore the walled garden was completed

The restoration of the walled garden was completed, with the certificate of practical completion issued on 26 July 2021. As part of this restoration project a new heritage centre, with a dedicated room for educational and community use was created. A small museum dedicated to exploring the history of the gardens and outdoor interpretation in the gardens was installed in November. The toilet facilities for visitors were refurbished and extended. There was extensive investment in upgrading existing paths and expanding the path network to improve access for less abled visitors.

The trust took the decision to invest in staff to ensure the long-term delivery of the charitable objectives and resilience of the organisation. These appoints were assistant head gardener, gardener, assistant director and heritage learning officer, accounts manager, events and marketing co-ordinator, assistant caretaker. To off-set some of these investment costs, four external contractors were terminated. Thus, roles critical to the successful operation of the trust and its charitable purposes were brought directly within the control of the trust.

Objective 4 Education

Heritage and Learning Officer was appointed 1 January 2021. This began a new strategy of engagement with schools. This included outreach with schools, development of education packs linked to educational key stages and providing free access to schools within the local counties of Pembrokeshire, Carmarthenshire and Ceredigion.

Two new horticulture apprenticeships posts were created. These allowed students to train in horticulture at Picton Castle Gardens whilst studying for an RHS level 2 qualification in horticulture through a recognised local college. This provides local employment and educational opportunities. The costs for these posts are partly met by the Welsh Government apprenticeship scheme.

From October 2021 we worked with Career Wales to provide a long-term work-experience placement for a school student who was unable to attend mainstream school and to help develop her work placement skills.

Objective 5

The Picton Library Project - due to ongoing covid restrictions the library project remained on hold. However, re-training was booked to commence in Spring 2022 when it was hoped restrictions would have ended.

Community engagement - A new strategy was developed of working with local community groups to provide Picton Castle Gardens as a location for them to use for their activities. The intention was to enable other groups to use our facilities to enhance what they offer for their constituent groups. For example, Scout and Guide groups, carers groups, Women's Institute, local community groups, art and craft groups.

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THE PICTON CASTLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

ACHIEVEMENT AND PERFORMANCE

Charitable activities

Throughout 2021 activities were affected by the covid-19 restrictions in Wales. Never-the-less, the performance of the trust was strong with our highest number of visitors and the successful completion of a major restoration project. The work of the trust was focussed on conserving the heritage of Picton Castle Gardens, improving access opportunities, and establishing the site as an important provider of educational engagement. There was some success in expanding Picton Castle Gardens role as a provider of suitable location for community activities.

Particular achievements for the year include:

Other successes

New small scale pop-up events compliant with covid restrictions were introduced: such as Head Gardener's tours, Fairy Door Trails and Twilight at Picton open evenings. The Welsh Owl Garden introduced a schedule of daily activities, which proved popular with visitors. A new Christmas experience was established, 'Christmas in the Castle', allowing free flow to the castle was successfully introduced for the first time.

Adverse Impacts

The number of coach group and cruise ship bookings remained low. Large scale events that had been planned for the summer had to be abandoned, such as jousting. The planned winter events had to be restricted in terms of numbers and event planning, to ensure we were compliant with covid-rules. Similarly, the previously successful Magical Family Christmas and the Halloween Ghost Tours in the Castle were cancelled, due to covid restrictions.

Funding

The trust's activities were funded in 2021 by three main sources of income: donations and admissions; commercial activities and grant funding.

Grant funding (both covid related and specifically for the restoration project) were largest element of our 2021 income but it must be noted that these were one-off support and are not part of our annual income plans. Donations and admissions were the largest portion of our regular income and rose significantly in 2021, in-line with the rise in visitor numbers. Other commercial activities, such as gift shop income and holiday rental remain an important and reliable source of income, if highly seasonal.

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THE PICTON CASTLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

ACHIEVEMENT AND PERFORMANCE

Financial performance

The trust's incoming resources for the year amounted to £1,002,290 (2020 - £863,033) the analysis being shown in the accompanying statement of financial activities. All sources of income showed an increase on the previous year.

The net income was £194,954 (2020 - net expenditure £212,257). The policy to carry investments at market value resulted in gains of £138,780 on investment assets (2020 - losses of £53,596) and so there was a net surplus of £333,734 (2020 - deficit of £265,853) transferred to funds. £92,399 was transferred from general fund to cover the contribution to the walled garden repairs. The balance on the general fund at 31 December 2021 was £4,354,506.

Capital expenditure for the year to 31 December 2021 totalled £9,315, a breakdown of which is shown in the notes to the financial statements.

During the year there was some trading in investments. The investments at 31 December 2021 are shown in the accounts at a market value of £1,331,484 (2020 - £1,170,403).

FINANCIAL REVIEW

Investment policy and objectives

In accordance with the trust deed, the trustees have the power to invest in such stocks, shares, investments and property as they see fit. During the year the trustees engaged Rathbones as investment managers. The policy is to adopt a medium risk investment strategy based on maximising income.

Reserves policy

It is the policy of the trust to ensure that a suitable income stream is generated from the fund assets to finance the ongoing work of the charity and to cover management and administration and support costs. The funds are represented by a portfolio of investments which are managed by investment managers who have been given discretionary power to acquire and dispose of investments within the policy set by the trustees. The fund also holds the tangible fixed assets, which include the castle buildings, grounds and exhibits.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The trust is governed by its trust deed of 24 November 1987. It is a registered charity.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the trust, and are satisfied that systems are in place to mitigate our exposure to the major risks.

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THE PICTON CASTLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Charity number 519693

Principal address

Picton Castle Rhos Haverfordwest Pembrokeshire SA62 4AS

Trustees

Mrs S Philipps (resigned 20/2/2021) Mr D Ellis Miss N J Philipps (appointed 20/2/2021) Mr T Arthur Mr C W M Carter Ms C M Shand (appointed 20/2/2021) Mr C L Atherton (appointed 4/3/2021)

Auditors

Llewelyn Davies Chartered Accountants / Statutory Auditors Yelverton House St John Street Whitland Carmarthenshire SA34 0AW

Bankers

National Westminster High Street Haverfordwest Pembrokeshire

Solicitors

Lowless Commercial 30 Hamilton Terrace Milford Haven Pembrokeshire SA73 3JJ

Investment Advisers

Rathbones 1 Curzon Street London W1J 5FB

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THE PICTON CASTLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees 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).

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charity 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 charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the board of trustees on 26 October 2022 and signed on its behalf by:

Mr D Ellis - Trustee

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE PICTON CASTLE TRUST

Opinion

We have audited the financial statements of The Picton Castle Trust (the 'charity') for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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).

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 charity 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 charity'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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE PICTON CASTLE TRUST

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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:

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud. In particular, we looked at where management made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of this discussion we identified the internal controls established to mitigate risks related to fraud or noncompliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing of manual journals and key estimates and judgements made by management.

We gained an understanding of the legal and regulatory framework applicable to the charity and the sector in which it operates, drawing on our broad sector experience, and considered the risk of acts by the charity that were contrary to these laws and regulations, including fraud.

We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Charities Act 2011 and UK tax legislation.

We made enquiries of management with regards to compliance with the above laws and regulations and corroborated any necessary evidence to relevant information, for example, minutes of meetings held and correspondence between the company and its solicitors.

Our tests included agreeing the financial statements disclosures to underlying supporting documentation and enquiries with management.

We did not identify any key audit matters relating to irregularities, including fraud. As in all of our audits, we also addressed the risk of management override of internal controls including testing journals and evaluation whether there was evidence of bias by management that represented a risk of material misstatement due to fraud.

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE PICTON CASTLE TRUST

Our responsibilities for the audit of the financial statements

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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 charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Llewelyn Davies Chartered Accountants / Statutory Auditors Yelverton House St John Street Whitland Carmarthenshire SA34 0AW

Date: 26 October 2022

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THE PICTON CASTLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
Castle and grounds
Other trading activities
3
Investment income
4
Other income
Total
EXPENDITURE ON
Raising funds
6
Charitable activities
7
Castle and grounds
Total
Net gains/(losses) on investments
NET INCOME/(EXPENDITURE)
Transfers between funds
21
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Restricted
fund
funds
£
£
374,331
120,065
281,955
-
70,538
-
146,453
-
8,948
-
882,225
120,065
64,097
-
529,908
213,331
594,005
213,331
138,780
-
427,000
(93,266)
(92,399)
92,399
334,601
(867)
4,019,905
24,527
4,354,506
23,660		 2021

Total
funds
£
494,396
281,955
70,538
146,453
8,948
1,002,290
64,097
743,239
807,336
138,780
333,734
-
333,734
4,044,432
4,378,166		 2020
Total
funds
£
650,257
98,723
16,798
97,255
-
863,033
45,862
1,029,428
1,075,290
(53,596)
(265,853)
-
(265,853)
4,310,285
4,044,432

The notes form part of these financial statements

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THE PICTON CASTLE TRUST

BALANCE SHEET 31 DECEMBER 2021

Notes
FIXED ASSETS
Tangible assets
12
Heritage assets
13
Investments
14
CURRENT ASSETS
Stocks
15
Debtors
16
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
17
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one
year
18
NET ASSETS
FUNDS
21
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
Restricted
fund
funds
£
£
627,407
23,660
2,087,100
-
1,331,484
-
4,045,991
23,660
11,008
-
40,682
-
319,143
4,720
370,833
4,720
(56,959)
(4,720)
313,874
-
4,359,865
23,660
(5,359)
-
4,354,506
23,660		 2021

Total
funds
£
651,067
2,087,100
1,331,484
4,069,651
11,008
40,682
323,863
375,553
(61,679)
313,874
4,383,525
(5,359)
4,378,166
4,354,506
23,660
4,378,166		 2020
Total
funds
£
650,517
2,087,100
1,170,403
3,908,020
13,404
71,637
205,635
290,676
(145,683)
144,993
4,053,013
(8,581)
4,044,432
4,019,905
24,527
4,044,432

The financial statements were approved by the Board of Trustees and authorised for issue on 26 October 2022 and were signed on its behalf by:

Mr D Ellis - Trustee

The notes form part of these financial statements

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THE PICTON CASTLE TRUST

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Interest element of hire purchase
payments paid
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Purchase of fixed asset investments
Sale of fixed asset investments
Interest received
Net cash (used in)/provided by investing activities
Cash flows from financing activities
New loans in year
Capital repayments in year
Net cash provided by/(used in) financing 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		 2021
£
149,097
-
(459)
148,638
(9,315)
(163,620)
141,319
471
(31,145)
4,720
(3,985)
735
118,228
205,635
323,863		 2020
£
(117,716)
(6)
(691)
(118,413)
(1,365)
(116,493)
337,406
1,055
220,603
-
(4,162)
(4,162)
98,028
107,607
205,635

The notes form part of these financial statements

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THE PICTON CASTLE TRUST

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

OPERATING ACTIVITIES
2021 2020
£ £
Net income/(expenditure) for the reporting period (as per
the Statement of Financial Activities) 333,734 (265,853)
Adjustments for:
Depreciation charges 8,765 7,862
(Gain)/losses on investments (138,780) 53,596
Interest received (471) (1,055)
Interest paid - 6
Interest element of hire purchase and finance lease rental
payments 459 691
Decrease in stocks 2,396 100
Decrease/(increase) in debtors 30,955 (31,921)
(Decrease)/increase in creditors (87,961) 118,858
Net cash provided by/(used in) operations 149,097 (117,716)
ANALYSIS OF CHANGES IN NET FUNDS
At 1.1.21 Cash flow At 31.12.21
£ £ £
Net cash
Cash at bank and in hand 205,635 118,228 323,863
205,635 118,228 323,863
Debt
Finance leases (12,566) 3,985 (8,581)
Debts falling due within 1 year - (4,720) (4,720)
(12,566) (735) (13,301)
Total 193,069 117,493 310,562
  1. ANALYSIS OF CHANGES IN NET FUNDS

The notes form part of these financial statements

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THE PICTON CASTLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, 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 Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

Income

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.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost 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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property - not provided Plant and machinery - 20% on cost Fixtures and fittings - 15% to 25% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from 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

Assets obtained under hire purchase contracts or finance leases are capitalised in the Balance Sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is shorter.

The interest element of these obligations is charged to the Statement of Financial Activities over the relevant period. The capital element of the future payments is treated as a liability.

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THE PICTON CASTLE TRUST NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES - continued

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 charity operates a defined contribution pension scheme and contributes to employees' personal pension schemes. Contributions payable are charged to the Statement of Financial Activities in the period to which they relate.

2. DONATIONS AND LEGACIES

Donations
Gift aid
Grants
Grants received, included in the above, are as follows:
Heritage Lottery Fund
Millenium Stadium Charitable Trust
Job Retention Scheme
Welsh Government Resilience Fund
Coleg Sir Gar
3.
OTHER TRADING ACTIVITIES
Shop income
4.
INVESTMENT INCOME
Rents received
Dividends receivable
Interest receivable
5.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Admissions
Castle and grounds
Sale of garden produce
Castle and grounds
Gallery and booklet sales Castle and grounds		 2021
£
28,651
21,637
444,108
494,396
2021
£
93,453
-
35,638
313,017
2,000
444,108
2021
£
70,538
2021
£
114,952
31,030
471
146,453
2021
£
270,549
4,649
6,757
281,955		 2020
£
118,063
25,886
506,308
650,257
2020
£
420,580
2,500
55,728
27,500
-
506,308
2020
£
16,798
2020
£
59,842
36,358
1,055
97,255
2020
£
87,144
9,724
1,855
98,723		 2020
£
118,063
25,886
506,308
650,257
2020
£
420,580
2,500
55,728
27,500
-
506,308
2020
£
16,798
2020
£
59,842
36,358
1,055
97,255
2020
£
87,144
9,724
1,855
98,723
2020
£
59,842
36,358
1,055
97,255
2020
£
87,144
9,724
1,855
98,723

-15-

THE PICTON CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

6. RAISING FUNDS

Other trading activities
Opening stock
Purchases
Closing stock
Staff costs
Stationery and packaging
Credit card charges and rental
Investment management costs
Stock-brokers' fees
Letting agents' fees
Bad debts
Aggregate amounts
7.
CHARITABLE ACTIVITIES COSTS
Castle and grounds
8.
SUPPORT COSTS
Management
£
Castle and grounds
22,550		 Direct
Costs
£
708,191
Finance
£
8,973		 2021
£
9,371
23,470
(8,029)
24,927
354
5,233
55,326
2021
£
8,745
50
(24)
8,771
64,097
Support
costs (see
note 8)
£
35,048
Governance
costs
£
3,525		 2020
£
9,190
12,306
(9,371)
21,534
62
2,415
36,136
2020
£
9,017
336
373
9,726
45,862
Totals
£
743,239
Totals
£
35,048

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2021 nor for the year ended 31 December 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2021 nor for the year ended 31 December 2020.

-16-

THE PICTON CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

10.
STAFF COSTS
2021
£
Wages and salaries
288,420
Social security costs
15,646
Other pension costs
5,871
309,937
The average monthly number of employees during the year was as follows:
2021
Full time equivalents
19
No employees received emoluments in excess of £60,000.		 2020
£
220,391
9,640
4,477
234,508
2020
17

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Castle and grounds
Other trading activities
Investment income
Total
EXPENDITURE ON
Raising funds
Charitable activities
Castle and grounds
Total
Net gains/(losses) on investments
NET INCOME/(EXPENDITURE)
Transfers between funds
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Restricted
fund
funds
£
£
165,564
484,693
98,723
-
16,798
-
97,255
-
378,340
484,693
45,862
-
384,489
644,939
430,351
644,939
(53,596)
-
(105,607)
(160,246)
(118,210)
118,210
(223,817)
(42,036)
4,243,722
66,563
4,019,905
24,527
Total
funds
£
650,257
98,723
16,798
97,255
863,033
45,862
1,029,428
1,075,290
(53,596)
(265,853)
-
(265,853)
4,310,285
4,044,432

-17-

THE PICTON CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

12. TANGIBLE FIXED ASSETS

COST
At 1 January 2021
Additions
At 31 December 2021
DEPRECIATION
At 1 January 2021
Charge for year
At 31 December 2021
NET BOOK VALUE
At 31 December 2021
At 31 December 2020		 Freehold
property
£
639,786
-
639,786
-
-
-
639,786
639,786		 Plant and
machinery
£
68,060
1,691
69,751
61,640
5,279
66,919
2,832
6,420		 Fixtures
and
fittings
£
65,681
7,624
73,305
61,370
3,486
64,856
8,449
4,311		 Totals
£
773,527
9,315
782,842
123,010
8,765
131,775
651,067
650,517

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

COST
At 1 January 2021
Transfer to ownership
At 31 December 2021
DEPRECIATION
At 1 January 2021
Charge for year
Transfer to ownership
At 31 December 2021
NET BOOK VALUE
At 31 December 2021
At 31 December 2020		 Plant and
machinery
£
28,695
(4,895)
23,800
23,936
4,759
(4,895)
23,800
-
4,759

-18-

THE PICTON CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

13. HERITAGE ASSETS

MARKET VALUE
At 1 January 2021 and
31 December 2021
NET BOOK VALUE
At 31 December 2021
At 31 December 2020		 Total
£
2,087,100
2,087,100
2,087,100

Heritage assets are shown in the accounts at the valuation placed on them by Sotheby's in 2003.

In addition to the assets shown above the trust also owns Picton Castle and its grounds, but no valuation has been placed upon these assets for the purpose of these accounts.

Carrying value at 31 December 2003 - at 2003 valuation
Carrying value at 31 December 2003 - at 1996 valuation
Net gain on revaluation		 £
2,324,904
911,694
1,413,210

14. FIXED ASSET INVESTMENTS

MARKET VALUE
At 1 January 2021
Additions
Disposals
Revaluations
At 31 December 2021
NET BOOK VALUE
At 31 December 2021
At 31 December 2020
There were no investment assets outside the UK.
15.
STOCKS
Stocks		 2021
£
11,008		 Listed
investments
£
1,170,403
163,620
(130,118)
127,579
1,331,484
1,331,484
1,170,403
2020
£
13,404

-19-

THE PICTON CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

16.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021
£
Other debtors
17,449
VAT
15,578
Prepayments and accrued income
7,655
40,682
17.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021
£
Hire purchase (see note 20)
3,222
Taxation and social security
5,899
Other creditors
52,558
61,679
18.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2021
£
Hire purchase (see note 20)
5,359
19.
LOANS
An analysis of the maturity of loans is given below:
2021
£
Amounts falling due within one year on demand:
Other loans
4,720
20.
LEASING AGREEMENTS
Minimum lease payments under hire purchase fall due as follows:
2021
£
Net obligations repayable:
Within one year
3,222
Between one and five years
5,359
8,581		 2020
£
9,787
48,964
12,886
71,637
2020
£
3,985
3,295
138,403
145,683
2020
£
8,581
2020
£
-
2020
£
3,985
8,581
12,566		 2020
£
9,787
48,964
12,886
71,637

-20-

THE PICTON CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

21. MOVEMENT IN FUNDS

Net
movement
At 1.1.21
in funds
£
£
Unrestricted funds
General fund
4,019,905
427,000
Restricted funds
Assets fund
23,660
-
Repair fund
-
(92,399)
Memorial Bench fund
867
(867)
24,527
(93,266)
TOTAL FUNDS
4,044,432
333,734
Net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
Unrestricted funds
General fund
882,225
(594,005)
Restricted funds
Repair fund
120,065
(212,464)
Memorial Bench fund
-
(867)
120,065
(213,331)
TOTAL FUNDS
1,002,290
(807,336)
Comparatives for movement in funds
Net
movement
At 1.1.20
in funds
£
£
Unrestricted funds
General fund
4,243,722
(105,607)
Restricted funds
Assets fund
23,660
-
Repair fund
42,903
(161,113)
Memorial Bench fund
-
867
66,563
(160,246)
TOTAL FUNDS
4,310,285
(265,853)		 Transfers

between

funds
£
(92,399)
-
92,399
-
92,399
-

Gains and

losses
£
138,780
-
-
-
138,780
Transfers

between

funds
£
(118,210)
-
118,210
-
118,210
-
At
31.12.21
£
4,354,506
23,660
-
-
23,660
4,378,166

Movement
in funds
£
427,000
(92,399)
(867)
(93,266)
333,734

At
31.12.20
£
4,019,905
23,660
-
867
24,527
4,044,432

-21-

THE PICTON CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021

21. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Repair fund
Memorial Bench fund
TOTAL FUNDS		 Incoming
resources
£
378,340
483,826
867
484,693
863,033
Resources

expended
£
(430,351)
(644,939)
-
(644,939)
(1,075,290)
Gains and

losses
£
(53,596)
-
-
-
(53,596)
Movement
in funds
£
(105,607)
(161,113)
867
(160,246)
(265,853)

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Restricted funds
Assets fund
Repair fund
TOTAL FUNDS		 At 1.1.20
£
4,243,722
23,660
42,903
66,563
4,310,285		 Net
movement

in funds
£
321,393
-
(253,512)
(253,512)
67,881		 Transfers

between

funds
£
(210,609)
-
210,609
210,609
-
At
31.12.21
£
4,354,506
23,660
-
23,660
4,378,166

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

Unrestricted funds
General fund
Restricted funds
Repair fund
Memorial Bench fund
TOTAL FUNDS		 Incoming
resources
£
1,260,565
603,891
867
604,758
1,865,323
Resources

expended
£
(1,024,356)
(857,403)
(867)
(858,270)
(1,882,626)
Gains and

losses
£
85,184
-
-
-
85,184
Movement
in funds
£
321,393
(253,512)
-
(253,512)
67,881

22. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2021.

-22-

THE PICTON CASTLE TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Gift aid
Grants
Other trading activities
Shop income
Investment income
Rents received
Dividends receivable
Interest receivable
Charitable activities
Admissions
Sale of garden produce
Gallery and booklet sales
Other income
Insurance claims
Total incoming resources
EXPENDITURE
Other trading activities
Opening stock
Purchases
Wages
Social security
Pensions
Stationery and packaging
Credit card charges and rental
Closing stock
Investment management costs
Stock-brokers' fees
Letting agents' fees
Bad debts		 2021
£
28,651
21,637
444,108
494,396
70,538
114,952
31,030
471
146,453
270,549
4,649
6,757
281,955
8,948
1,002,290
9,371
23,470
23,737
1,166
24
354
5,233
(8,029)
55,326
8,745
50
(24)
8,771		 2020
£
118,063
25,886
506,308
650,257
16,798
59,842
36,358
1,055
97,255
87,144
9,724
1,855
98,723
-
863,033
9,190
12,306
20,680
848
6
62
2,415
(9,371)
36,136
9,017
336
373
9,726

This page does not form part of the statutory financial statements

-23-

THE PICTON CASTLE TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Investment management costs
Charitable activities
Wages
Social security
Pensions
Hire of equipment and event expenses
Other operating leases
Rates and water
Insurance
Light and heat
Advertising
Garden expenses
Machinery expenses
Repairs to property
Castle booklets
Cleaning and maintenance
Consultancy fees
Donations
Sub-contractors
Training
Recruitment costs
Subscriptions and licences
Volunteer programme expenses
Depreciation of plant and machinery
Depreciation of fixtures and fittings
Interest on overdue tax
Hire purchase interest
Support costs
Management
Telephone
Postage and stationery
Travelling and subsistence
Accountancy
Book-keeping
Finance
Bank charges
Credit card charges
Paypal fees
Finance charges
Governance costs
Auditors' remuneration
Legal and professional fees
Total resources expended		 2021
£
264,683
14,480
5,847
7,913
4,636
3,075
27,739
20,499
15,315
19,784
4,398
257,138
1,055
5,723
25,803
5,867
11,314
555
106
1,577
1,460
5,279
3,486
-
459
708,191
3,868
4,308
944
1,950
11,480
22,550
3,031
4,909
673
360
8,973
3,525
-
3,525
807,336		 2020
£
199,711
8,792
4,471
5,988
2,413
1,052
28,669
10,993
12,050
6,733
4,448
655,123
281
2,222
19,182
576
18,219
-
-
1,125
774
6,997
865
6
691
991,381
4,808
3,060
339
1,393
19,281
28,881
2,688
2,283
92
13
5,076
3,425
665
4,090
1,075,290

This page does not form part of the statutory financial statements

-24-

THE PICTON CASTLE TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Net income/(expenditure) before
gains and losses
Realised recognised gains and losses
Realised gains/(losses) on fixed asset
investments
Net income/(expenditure)		 2021
£
194,954
138,780
333,734		 2020
£
(212,257)
(53,596)
(265,853)

This page does not form part of the statutory financial statements

-25-