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2022-12-31-accounts

REGISTERED CHARITY NUMBER: 519693

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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 2022

Page Page Page
Report of the Trustees 1 to 5
Report of the Independent Auditors 6 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 23
Detailed Statement of Financial Activities 24 to 26

THE PICTON CASTLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees present their report with the financial statements of the charity for the year ended 31 December 2022. 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 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.

Purposes of the charity as set out in its Trust Deed are:

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.

3 To preserve its chattels.

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.

Significant activities

During 2022 the Board of Trustees began a wide-ranging review of activities including two strategic development days. Strategic importance was placed on expanding schools engagement and capital investment in the conservation of the castle and the collection. Both received significant financial support from the Trust in 2022.

During 2022 progress was made in promoting the objectives of the trust, in the following manner.

Objective 1

The trust secured an extension to the National Heritage Lottery Fund (NHLF) grant award for the activities element of the award. The programme of capital works was completed in 2021 but the associated activities (with schools and communities) was unable to commence on time due to the covid-19 pandemic. These began in earnest in 2022. A NHLF review of the works in Sept 2022 was highly successful and the quality of the work was praised by the assessors.

The preservation of the castle and collection was furthered by a significant investment in capital projects for the castle and associated listed buildings in the care of the trust (roofing, windows and wall repairs). Planning for future conservation work on the castle was commenced with professional advice engaged on the structural condition of the castle and associated buildings (a quinquennial report).

In October, the trust secured a £10,000 grant for an archaeological survey to be undertaken on the medieval structure of the castle. This work is due to be carried out in 2023.

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THE PICTON CASTLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

OBJECTIVES AND ACTIVITIES

Significant activities (continued)

Objective 2

In May 2022 the trust hosted a formal opening to celebrate the completion of the main restoration works on the walled garden. This was delayed from 2021 due to the covid pandemic. Invitees included a wide range of community groups and representatives to showcase and encourage access to the heritage within the Trust's care.

A range of important capital investments were made to amenities for the public benefit including, in re-surfacing a public access road, fencing and other for public safety measures and amenities. Planning permission was successfully secured for upgrading and expanding the lavatory facilities which is required to secure ongoing appropriate amenities for our significantly increased visitor numbers.

Objective 3

In March 2022, the trust arranged for 20 volunteers to participate in formal training in cataloguing and conserving antique books with a professional conservator. This enabled the volunteers to begin the cataloguing and restoration of the library collection. This is an ongoing long-term project. Other individual chattels have been restored during the year, including a 200-year-old chandelier.

Objective 4

A new Heritage and Learning Officer was appointed 30 January 2022. Deepening our engagement with schools is critical part of the trust's strategy for development. This role has developed a programme of educational activities that intersect with the new Welsh curriculum, providing educational opportunities directly related to our heritage but cover topics that are challenging to deliver within the school context. This includes a bi-weekly programme with a local secondary school, that develops free access to schools within the local counties of Pembrokeshire, Carmarthenshire and Ceredigion. This has been a successful programme. Prior to its introduction we had no recorded school visits, and 460 pupils visit in 2022.

The trust further supported the educational aspects of its charitable objectives by establishing a programme of public tours and talks on different aspects of the history of the site and its collection. These began in March 2022 and are now an annual programme stretching over the autumn and winter.

Objective 5

A continuation of the strategy of working with local community groups for Picton Castle Gardens to be used as a location for community activities. The activities have included art and photography classes and gardening groups. We have also hosted art and sculpture exhibitions for local community groups, local schools and a tertiary level college.

-2-

THE PICTON CASTLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The work of the trust continued to be focussed on conserving the heritage of Picton Castle Gardens, improving access and establishing the site as an important provider of educational opportunities. We only narrowly missed our target number of 55,000 visitors, despite the lifting of restrictions on international travel having an adverse impact on holidays numbers in the region generally.

Particular achievements for the year include:

Funding

The trust's activities were funded in 2022 by three main sources of income: admissions and donations; commercial activities and grant funding. Admissions and admissions were the largest portion of our income. Admission price rises meant that this source of income was maintained despite a small decrease in visitor numbers.

There was a significant drop in grant funding from the previous year with the end of the governments covid support funding grants. However, the trust did have continued support from the NHLF for outstanding costs from with the capital works and the agreed programme of activities. There was also additional government grant support for the apprenticeships and small grants to support specific projects. The final Covid Economic Resilience Fund Grant was received.

Other commercial activities, such as gift shop income and holiday rental remain an important and reliable source of income, if highly seasonal. There was a drop in this income on the previous year. Although there is some uncertainty about the cause, the cost of living pressures in 2022 might have had an adverse impact on visitors secondary spend.

Adverse Impacts

There were continuing adverse impacts caused by the covid-19 pandemic in that the number of coach group and cruise ship bookings remained lower than pre-pandemic levels (although they had improved on 2021 figures). No large-scale events were organised for summer 2022 due to the uncertainties prevalent in autumn/ winter 2021/2 when planning would normally begin. There were significant and unexpected increases in two key areas of expenditure: insurance and marketing costs. This appears to be in line with the experiences of other similar sites.

Financial performance

The trust's incoming resources for the year amounted to £607,056 (2021 - £1,002,290) the analysis being shown in the accompanying statement of financial activities. The fall in the year was mainly due to reduced grant income.

The net expenditure was £149,210 (2021 - net income £194,954). The policy to carry investments at market value resulted in losses of £143,208 on investment assets (2021 - gains of £138,780) and so there was a net deficit of £292,418 (2021 - surplus of £333,734) transferred to funds. £1,684 was transferred from general fund to cover the contribution to the walled garden repairs. The balance on the general fund at 31 December 2022 was £4,060,768.

Capital expenditure for the year to 31 December 2022 totalled £1,888, 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 2022 are shown in the accounts at a market value of £1,144,963 (2021 - £1,331,484).

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THE PICTON CASTLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

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.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

519693

Principal address

Picton Castle Rhos Haverfordwest Pembrokeshire SA62 4AS

Trustees

Mr D Ellis Miss N J Philipps Mr T Arthur Mr C W M Carter Ms C M Shand Mr C L Atherton

Auditors

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

Bankers

National Westminster High Street Haverfordwest Pembrokeshire

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THE PICTON CASTLE TRUST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Solicitors

Lowless Commercial 30 Hamilton Terrace Milford Haven Pembrokeshire SA73 3JJ

Investment Advisers

Rathbones 1 Curzon Street London W1J 5FB

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 27 October 2023 and signed on its behalf by:

Mr D Ellis - Trustee

-5-

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 2022 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.

-6-

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

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:

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.

-7-

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

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.

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.

-8-

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

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: 27 October 2023

-9-

THE PICTON CASTLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
5
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
£
£
51,733
62,893
278,729
-
58,871
-
143,115
-
11,715
-
544,163
62,893
80,882
-
612,127
63,257
693,009
63,257
(143,208)
-
(292,054)
(364)
(1,684)
1,684
(293,738)
1,320
4,354,506
23,660
4,060,768
24,980		 2022

Total
funds
£
114,626
278,729
58,871
143,115
11,715
607,056
80,882
675,384
756,266
(143,208)
(292,418)
-
(292,418)
4,378,166
4,085,748		 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

The notes form part of these financial statements

-10-

THE PICTON CASTLE TRUST

BALANCE SHEET 31 DECEMBER 2022

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
£
£
625,878
23,660
2,087,230
-
1,144,963
-
3,858,071
23,660
9,271
-
58,477
-
194,391
6,039
262,139
6,039
(57,431)
(4,719)
204,708
1,320
4,062,779
24,980
(2,011)
-
4,060,768
24,980		 2022

Total
funds
£
649,538
2,087,230
1,144,963
3,881,731
9,271
58,477
200,430
268,178
(62,150)
206,028
4,087,759
(2,011)
4,085,748
4,060,768
24,980
4,085,748		 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

The financial statements were approved by the Board of Trustees and authorised for issue on 27 October 2023 and were signed on its behalf by:

Mr D Ellis - Trustee

The notes form part of these financial statements

-11-

THE PICTON CASTLE TRUST

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Interest element of hire purchase
payments paid
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Purchase of heritage assets
Purchase of fixed asset investments
Sale of fixed asset investments
Interest received
Net cash provided by/(used in) investing activities
Cash flows from financing activities
New loans in year
Capital repayments in year
Net cash (used in)/provided by 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		 2022
£
(161,816)
(169)
(268)
(162,253)
(1,758)
(130)
(276,492)
319,805
617
42,042
-
(3,222)
(3,222)
(123,433)
323,863
200,430		 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

The notes form part of these financial statements

-12-

THE PICTON CASTLE TRUST

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022

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

Net (expenditure)/income for the reporting period (as per
the Statement of Financial Activities)
Adjustments for:
Depreciation charges
Losses/(gain) on investments
Interest received
Interest paid
Interest element of hire purchase and finance lease rental
payments
Decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash (used in)/provided by operations		 2022
£
(292,418)
3,287
143,208
(617)
169
268
1,737
(17,795)
345
(161,816)		 2021
£
333,734
8,765
(138,780)
(471)
-
459
2,396
30,955
(87,961)
149,097

2. ANALYSIS OF CHANGES IN NET FUNDS

Net cash
Cash at bank and in hand
Debt
Finance leases
Debts falling due within 1 year
Total		 At 1.1.22
Cash flow
At 31.12.22
£
£
£
323,863
(123,433)
200,430
323,863
(123,433)
200,430
(8,581)
3,222
(5,359)
(4,720)
-
(4,720)
(13,301)
3,222
(10,079)
310,562
(120,211)
190,351

The notes form part of these financial statements

-13-

THE PICTON CASTLE TRUST

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

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.

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.

-14-

THE PICTON CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

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:
Pembrokeshire County Council
Pembrokeshire Association of Voluntary Services
Heritage Lottery Fund
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		 2022
£
1,398
37,392
75,836
114,626
2022
£
4,000
4,570
58,266
-
7,000
2,000
75,836
2022
£
58,871
2022
£
113,641
28,857
617
143,115		 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
2022
£
263,754
8,303
6,672
278,729

-15-

THE PICTON CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

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
CHARITABLE ACTIVITIES COSTS
Castle and grounds		 Direct
Costs
£
653,047		 2022
£
8,029
36,054
(7,374)
28,736
373
6,074
71,892
2022
£
8,989
-
1
8,990
80,882
Support
costs (see
note 8)
£
22,337		 2021
£
9,371
23,470
(8,029)
24,927
354
5,233
55,326
2021
£
8,745
50
(24)
8,771
64,097
Totals
£
675,384

7. CHARITABLE ACTIVITIES COSTS

8. SUPPORT COSTS

Management
£
Castle and grounds
9,259		 Governance
Finance
costs
£
£
9,428
3,650		 Totals
£
22,337

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021.

-16-

THE PICTON CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

10.
STAFF COSTS
2022
£
Wages and salaries
389,512
Social security costs
23,804
Other pension costs
7,900
421,216
The average monthly number of employees during the year was as follows:
2022
Full time equivalents
24		 2021
£
288,420
15,646
5,871
309,937
2021
19

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

11.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
fund
funds
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
374,331
120,065
Charitable activities
Castle and grounds
281,955
-
Other trading activities
70,538
-
Investment income
146,453
-
Other income
8,948
-
Total
882,225
120,065
EXPENDITURE ON
Raising funds
64,097
-
Charitable activities
Castle and grounds
529,908
213,331
Total
594,005
213,331
Net gains on investments
138,780
-
NET INCOME/(EXPENDITURE)
427,000
(93,266)
Transfers between funds
(92,399)
92,399
Net movement in funds
334,601
(867)
RECONCILIATION OF FUNDS
Total funds brought forward
4,019,905
24,527
TOTAL FUNDS CARRIED FORWARD
4,354,506
23,660		 11.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
fund
funds
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
374,331
120,065
Charitable activities
Castle and grounds
281,955
-
Other trading activities
70,538
-
Investment income
146,453
-
Other income
8,948
-
Total
882,225
120,065
EXPENDITURE ON
Raising funds
64,097
-
Charitable activities
Castle and grounds
529,908
213,331
Total
594,005
213,331
Net gains on investments
138,780
-
NET INCOME/(EXPENDITURE)
427,000
(93,266)
Transfers between funds
(92,399)
92,399
Net movement in funds
334,601
(867)
RECONCILIATION OF FUNDS
Total funds brought forward
4,019,905
24,527
TOTAL FUNDS CARRIED FORWARD
4,354,506
23,660		 11.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
fund
funds
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
374,331
120,065
Charitable activities
Castle and grounds
281,955
-
Other trading activities
70,538
-
Investment income
146,453
-
Other income
8,948
-
Total
882,225
120,065
EXPENDITURE ON
Raising funds
64,097
-
Charitable activities
Castle and grounds
529,908
213,331
Total
594,005
213,331
Net gains on investments
138,780
-
NET INCOME/(EXPENDITURE)
427,000
(93,266)
Transfers between funds
(92,399)
92,399
Net movement in funds
334,601
(867)
RECONCILIATION OF FUNDS
Total funds brought forward
4,019,905
24,527
TOTAL FUNDS CARRIED FORWARD
4,354,506
23,660
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
-
334,601
4,019,905
4,354,506		 (867)
24,527
23,660		 333,734
4,044,432
4,378,166

-17-

THE PICTON CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

12. TANGIBLE FIXED ASSETS

COST
At 1 January 2022
Additions
At 31 December 2022
DEPRECIATION
At 1 January 2022
Charge for year
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021		 Freehold
property
£
639,786
-
639,786
-
-
-
639,786
639,786		 Plant and
machinery
£
69,751
308
70,059
66,919
581
67,500
2,559
2,832		 Fixtures
and
fittings
£
73,305
1,450
74,755
64,856
2,706
67,562
7,193
8,449		 Totals
£
782,842
1,758
784,600
131,775
3,287
135,062
649,538
651,067

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

COST
At 1 January 2022 and
31 December 2022
DEPRECIATION
At 1 January 2022 and
31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021		 Plant and
machinery
£
23,800
23,800
-
-

-18-

THE PICTON CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

13. HERITAGE ASSETS

MARKET VALUE
At 1 January 2022
Additions
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021		 Total
£
2,087,100
130
2,087,230
2,087,230
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
14.
FIXED ASSET INVESTMENTS
MARKET VALUE
At 1 January 2022
Additions
Disposals
Revaluations
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021
There were no investment assets outside the UK.
15.
STOCKS
Stocks		 2022
£
9,271		 £
2,324,904
911,694
1,413,210
Listed
investments
£
1,331,484
276,492
(355,964)
(107,049)
1,144,963
1,144,963
1,331,484
2021
£
11,008

-19-

THE PICTON CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

16.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022
£
Other debtors
2,653
VAT
7,790
Prepayments and accrued income
48,034
58,477
17.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022
£
Hire purchase (see note 20)
3,348
Taxation and social security
6,535
Other creditors
52,267
62,150
18.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2022
£
Hire purchase (see note 20)
2,011
19.
LOANS
An analysis of the maturity of loans is given below:
2022
£
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:
2022
£
Net obligations repayable:
Within one year
3,348
Between one and five years
2,011
5,359		 2021
£
17,449
15,578
7,655		 2021
£
17,449
15,578
7,655
40,682
2021
£
3,222
5,899
52,558
61,679
2021
£
5,359
2021
£
4,720
2021
£
3,222
5,359
8,581

-20-

THE PICTON CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

21. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Restricted funds
Assets fund
Repair fund
TOTAL FUNDS		 At 1.1.22
£
4,354,506
23,660
-
23,660
4,378,166		 Net
movement

in funds
£
(292,054)
-
(364)
(364)
(292,418)		 Transfers

between

funds
£
(1,684)
-
1,684
1,684
-
At
31.12.22
£
4,060,768
23,660
1,320
24,980
4,085,748

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Repair fund
Memorial Bench fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
Restricted funds
Assets fund
Repair fund
Memorial Bench fund
TOTAL FUNDS		 Incoming
resources
£
544,163
62,337
556
62,893
607,056

At 1.1.21
£
4,019,905
23,660
-
867
24,527
4,044,432

Resources
expended
£
(693,009)
(62,701)
(556)
(63,257)
(756,266)
Net
movement
in funds
£
427,000
-
(92,399)
(867)
(93,266)
333,734


Gains and
losses
£
(143,208)
-
-
-
(143,208)
Transfers
between
funds
£
(92,399)
-
92,399
-
92,399
-
Movement
in funds
£
(292,054)
(364)
-
(364)
(292,418)

At
31.12.21
£
4,354,506
23,660
-
-
23,660
4,378,166

-21-

THE PICTON CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

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
£
882,225
120,065
-
120,065
1,002,290
Resources

expended
£
(594,005)
(212,464)
(867)
(213,331)
(807,336)
Gains and

losses
£
138,780
-
-
-
138,780
Movement
in funds
£
427,000
(92,399)
(867)
(93,266)
333,734

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
Memorial Bench fund
TOTAL FUNDS		 At 1.1.21
£
4,019,905
23,660
-
867
24,527
4,044,432		 Net
movement

in funds
£
134,946
-
(92,763)
(867)
(93,630)
41,316		 Transfers

between

funds
£
(94,083)
-
94,083
-
94,083
-
At
31.12.22
£
4,060,768
23,660
1,320
-
24,980
4,085,748

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
£
1,426,388
182,402
556
182,958
1,609,346
Resources

expended
£
(1,287,014)
(275,165)
(1,423)
(276,588)
(1,563,602)
Gains and

losses
£
(4,428)
-
-
-
(4,428)
Movement
in funds
£
134,946
(92,763)
(867)
(93,630)
41,316

-22-

THE PICTON CASTLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2022

22. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2022.

-23-

THE PICTON CASTLE TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

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		 2022
£
1,398
37,392
75,836
114,626
58,871
113,641
28,857
617
143,115
263,754
8,303
6,672
278,729
11,715
607,056
8,029
36,054
27,310
1,373
53
373
6,074
(7,374)
71,892
8,989
-
1
8,990		 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

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 2022

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
IT and software support
Depreciation of plant and machinery
Depreciation of fixtures and fittings
Bank interest
Bank loan interest
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
Total resources expended		 2022
£
362,202
22,431
7,847
8,286
3,527
1,472
37,195
19,932
24,671
5,558
5,899
103,008
1,081
6,519
12,773
600
20,017
625
71
1,640
2,955
1,014
581
2,706
46
123
268
653,047
2,917
4,126
1,076
1,140
-
9,259
3,660
5,227
408
133
9,428
3,650
756,266		 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
807,336

This page does not form part of the statutory financial statements

-25-

THE PICTON CASTLE TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

Net (expenditure)/income before
gains and losses
Realised recognised gains and losses
Realised gains/(losses) on fixed asset
investments
Net (expenditure)/income		 2022
£
(149,210)
(143,208)
(292,418)		 2021
£
194,954
138,780
333,734

This page does not form part of the statutory financial statements

-26-